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CASE STUDY

PROJECT DEVELOPMENT AND PREPARATION

OF PROJECT DOCUMENTATION FOR SMALL

HYDROELECTRIC PLANT "RIBARE"

Žagubica municipality – Serbia

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CONTENT

1. INFORMATION ON AUTHORS ................................................................................................................... 3

2. EXECUTIVE SUMMARY .............................................................................................................................. 4

3. PROBLEM IDENTIFICATION AND ANALYSIS ............................................................................................... 5

3.1. Project description ............................................................................................................................. 5

3.2. Problem division ................................................................................................................................ 9

3.3. Legal and administrative section of the project ................................................................................ 9

3.4. Technical section of the project ....................................................................................................... 10

3.5. Economic and managerial section of the project ............................................................................ 10

4. SUMMARY OF THE MOST IMPORTANT PROBLEMS ................................................................................ 12

4.1. Legal and administrative section of the project .............................................................................. 12

4.2. Technically section of the project .................................................................................................... 12

4.3. Economic and managerial section of the project ............................................................................ 13

4.4. List of the most important problems ............................................................................................... 13

5. GENERALIZATION AND EVALUATION OF POSSIBLE SOLUTIONS ............................................................. 14

5.1. Obtaining the location permit.......................................................................................................... 14

5.2. Hydrological analysis of the watercourse ........................................................................................ 15

5.3. General project of the small hydroelectric plant ............................................................................. 16

5.4. Geological study of the site where the small hydroelectric facilities will be built .......................... 17

5.5. Investment risk analysis ................................................................................................................... 19

6. RECOMMENDATIONS .............................................................................................................................. 21

6.1. Obtaining the location permit.......................................................................................................... 21

6.2. Hydrological analysis of the watercourse ........................................................................................ 21

6.3. General small hydroelectric plant project ....................................................................................... 21

6.4. Geological study in the field where the small hydroelectric facilities will be built ......................... 22

6.5. Investment risk analysis ................................................................................................................... 22

7. IMPLEMENTATION OF THE PROJECT OF THE DEVELOPMENT OF SHP "RIBARE".................................... 23

8. BIBLIOGRAPHY ........................................................................................................................................ 26

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1. INFORMATION ON AUTHORS

Prof. Dr. Branimir Jovanović was born in 1955 in Belgrade. He graduated from the Faculty of Mechanical Engineering in Belgrade, completed his Master's studies at the Faculty of Philosophy in Zagreb, and he completed his Doctorate studies at the Faculty of Mechanical Engineering in Belgrade. For many years he worked in the “Nikola Tesla Museum” in Belgrade, where he was its director in one term. Currently he is the director of "Energonova" company in Belgrade dealing with consulting in the field of energy efficiency and renewable energy sources. He is also the founder and director of the “Tesla Center” and assistant professor at the Faculty of Applied Ecology "Futura" in Belgrade. He is the author of several papers on energy efficiency and renewable energy sources.

Msc Miroslav Parović was born in 1984 in Zrenjanin. He graduated from the Faculty of Technical Sciences in Novi Sad in electrical engineering major. Currently he is employed as assistant director of "Energonova" company in Belgrade dealing with consulting in the field of energy efficiency and renewable energy sources. He is also a consultant at the “Tesla Centre”. He is the author of several papers on energy efficiency and renewable energy sources.

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2. EXECUTIVE SUMMARY

For the purpose of the case study we have chosen a small hydroelectric plant "Ribare" which is listed under number 76 in the "Cadastre of small hydroelectric plants on the territory of Serbia, outside AP". The assumption that is introduced in this study is that there might be interest of investors for this site, because it is a flow hydroelectric plant of about 500 kW, and the practice so far has shown that just such hydroelectric plants are most interesting for investors. The other assumption is that this project is technically feasible and economically justified.

Bearing in mind that the implementation project of the small hydroelectric plant is multi-disciplinary, the whole project should be preferably divided into functional sections, as follows:

• Legal and administrative section of the project;

• Technical section of the project;

• Economic and managerial section of the project;

Each of these sections entails a number of problems that must be addressed during project development. It is important to note that these are not mutually independent sections but there is a strong interaction and temporal coincidence in the implementation among them, but for the purpose of easier analysis it can be assumed that the problems are separate at least in the timeframe given for finding their solution.

Having in mind the overall project of developing the small hydroelectric plant "Ribare" the following problems are the most essential to solve:

• Obtaining the location permit;

• Hydrological analysis of the watercourse;

• General project of the small hydroelectric plant;

• Geological study of the field where the small hydroelectric facilities will be built;

• Investment risk analysis;

Further study analyzes each of the above key issues and provides recommendations for the most effective solution to these problems. It also shows an action plan for the implementation of the overall project of SHP "Ribare."

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3. PROBLEM IDENTIFICATION AND ANALYSIS

3.1. Project description

For the purpose of the case study we have chosen the small hydroelectric plant "Ribare", which is listed in the document "Cadastre of small hydroelectric plants on the territory of Serbia, outside AP”, and which is presented on the official website of the Ministry of Mining and Energy. The small hydroelectric plant "Ribare" is registered in the Cadastre under number 76.

The location for the construction of SHP "Ribare" is on the Mlava river, upstream from the town of Ribare, downstream from the bridge in the village of Izvarica (location indicated by a downward arrow on the map shown below).

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Figure 3.1: Location of the site for the construction of SHP "Ribare"

Partition site is located at about 1,1 km downstream from the bridge in the village of Izvarica. The intersection is made of overflow concrete threshold about 3,5 m high with the sedimentation basin on the right bank where the embedded supply pipeline begins. The watercourse is on the site provided for raising the concrete threshold about 16 meters wide. The terrain is sandy and the slopes are of rocky debris, and the left side slope inclination is about 45 ° - 50 °, while on the right side at a height of about 4m above the watercourse the river terrace is about 2 m wide.

WATERCOURSE: MLAVA R. LONGITUDINAL PROFILE WITH PROPOSED SOLUTIONS

R = 1:100 / 100000

Figure 3.2: Longitudinal profile

From the sedimentation basin along the right river bank there is a supply gravity pipeline with a diameter of 2,5 m and length of about 1.550m to the water chamber. The pipeline in the initial part of the route leads across the river terrace, and from there goes to a hillside above the river terrace. From the water chamber a steel pipeline continues with a diameter of 1,6 m and length of 30m to the machine building located in the settlement.

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Figure 3.3: Topographic map of the site SHP "Ribare" with marked positions of hydro facilities

Specifications that are proposed in this study are mainly based on the solution that is proposed in the cadastre of small hydroelectric plants in Serbia.

On the basis of flow duration curve, the value for the installed flow was agreed:

Qi = 6.44 m3/s

The value of the biological minimum was agreed on the basis of the recommendations, and in the later stages of planning a more detailed analysis of the impact on the environment has to be done:

Qec ≈ 0.4 m3/s

Gross fall in the anticipated area is about 11 m. When the losses that occur are deducted from the fall, useful (net) fall is obtained:

Hn = 10 m

In view of the installed flow and net fall, and assuming the efficiency of about 85%, we obtain the installed plant power of:

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P = 495 kW

Assuming that cosφ = 0.8, we obtain apparent plant power of:

S = 620 kVA

Based on the topography of the terrain and technical data a schematic view of SHP "Ribare" can be adopted as shown in Figure 3.4.

Figure 3. 4: Diagram of the SHP

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3.2. Problem division

The problem of the implementation of the small hydroelectric plant project is multidisciplinary, and therefore requires involvement of experts from various fields and their integration into a single team and the whole project. In the development of small hydroelectric plant projects the following sections can be located:

• Legal and the administrative section of the project;

• Technical section of the project;

• Economic and managerial section of the project;

3.3. Legal and administrative section of the project

The task of this section of the project is to obtain and prepare all necessary documentation in order to obtain three key permits:

• Location permit;

• Construction permit;

• Inspection certificate;

Problems arising from the implementation of this section of the project are:

• Bad and sketchy legal framework for the construction of energy facilities;

• Unresolved urban and regulation plans in the municipalities in Serbia;

• Unresolved water management plans;

• Lack of procedures for issuing the necessary documents for the construction of energy facilities;

• Large number of institutions at different levels of government that should be referred for the acquisition of documents (local government, the Republic Hydrometeorological Institute of Serbia, relevant power distribution companies, relevant water management companies, etc.);

• Low level of the expertise of the personnel employed in the institutions responsible for issuing certain documents for the implementation of the small hydroelectric plant project;

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3.4. Technical section of the project

The task of this part of the project is the development of the technical section of project documentation that is required by legislation in the Republic of Serbia. According to the currently valid Law on planning and construction, the technical section of the project documentation includes:

• General project;

• Preliminary project;

• Main project with revision;

• As-built project;

Technical documentation has a double purpose, the key purpose is that it is used for building the facility, and the other purpose is to serve as a basis for obtaining the necessary permits for construction, as well as bank guarantees for raising loans or any other form of financial support for the project. For these reasons, the preparation of technical documentation is to be approached very seriously.

Problems arising from the implementation of this part of the project are:

• Lack of adequate professional staff;

• Failure to comply with the law regarding the form and level of project documentation that is necessary to prepare;

• The unwillingness of investors to allocate sufficient resources for a complete development of the small hydroelectric plant project, which is particularly reflected in the inadequate level of hydrological studies (measurements are most often not performed on the watercourse) and the inadequate level of geological site research;

3.5. Economic and managerial section of the project

Within this segment of the project different models of financing the project, as well as analysis of various risk factors that may affect the quality of the adopted solution, should be analyzed. This segment of the project activities is in close connection with the preparation of technical documentation and generally follows the completion of each level of the project (or is parallel), and consists of making the following studies:

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• Cost-effectiveness study that follows the development of general project;

• Study on risk assessment that can be done either after the general project or after the preliminary project;

• Feasibility study which is mainly performed within the preliminary project;

Problems arising from the implementation of this segment of the project are:

• Lack of legal obligation to perform this segment of the documentation;

• Terminology problems caused by use of inadequate names (mostly English) for certain segments of project documentation. For example, the term feasibility study is often used as a synonym for the preliminary project, which leads to the confusion about the term feasibility study related to the purely economic study, and so on.

• Lack of adequate professional staff;

• The tendency of investors to engage engineers, already engaged to create technical documentation, to also create economic and managerial segment, which often leads to poor performance of this section of the project;

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4. SUMMARY OF THE MOST IMPORTANT PROBLEMS

Bearing in mind the multidisciplinary nature of small hydroelectric plant projects in section 3.2. a division of problems was created in developing this type of project. It is important to note that among these problems there is a strong interaction and temporal overlap, but for the purpose of easier analysis the problems can be assumed to be separate at least in the timeframe given.

4.1. Legal and administrative section of the project

This part of the project addresses the problems of obtaining various permits among which the most important are location permit, construction permit and inspection certificate, while all other permits are practically the basis for issuing the three key permits. All problems related to this section of the project have their cause in the lack of adequate legal framework at all levels of government in the Republic of Serbia, as well as low-level knowledge of relevant institutions.

With that in mind, we can say that the most important problem to be solved in the legal and administrative section of the project is obtaining the location permit. In fact, this is the first in a series of permits to be obtained, so that it is kind of a proving ground for developing cooperation and trust between the investor and the competent authorities, and also paves way for cooperation on preparing other documents, which facilitates obtaining other permits.

4.2. Technically section of the project

Technical section of the project is to provide technically and economically the most optimal solution for the construction of the small hydroelectric plant. In order for this part of the project to be adequately performed, it is necessary to provide a good foundation for completing the preliminary and the main project. Key foundations that need to be developed are:

• General project;

• Hydrological analysis of watercourse;

• Geological study of the site where the small hydroelectric plant facilities will be built;

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It should be noted that these are not the only bases that need to be completed in the process of preparing technical documentation, but they are crucial for the quality of the adopted solution. Preparation of these foundations also represents the most significant problems in the technical section of the project.

4.3. Economic and managerial section of the project

Economic and managerial section of the project is virtually performed during the entire period of the project development. However, in the early stages of the project there are too many unknown factors, and therefore the economic assessment of the project is very unreliable. What is most important in this section of the project, and also represents the most significant problem, is the analysis and quantification of risk investment.

4.4. List of the most important problems

The following key issues need to be solved in order for the small hydroelectric plant project to be properly done:

1. Obtaining the location permit;

2. Hydrological analysis of the watercourse;

3. General small hydroelectric plant project;

4. Geological study of the terrain where the small hydroelectric plant facilities will be built;

5. Investment risk analysis;

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5. GENERALIZATION AND EVALUATION OF POSSIBLE SOLUTIONS

In the previous section of the study a list of the major problems that need to be resolved was given in order for the small hydroelectric plant project to be adequately prepared. The task of this section is to present the possibilities of solutions to these problems, and to point out the advantages and disadvantages of proposed solutions.

5.1. Obtaining the location permit

According to the currently valid Law on planning and construction a location permit requires:

• existence of a general plan and a plan for detailed regulation for a particular location;

• an act or statement on the urban environment;

• resolving property-legal relations in the area for which permission is sought;

• proof of ownership (or lease) in the cadastre or land registry;

The small hydroelectric plant "Ribare" is located in the municipality of Žagubica. The main problems that will be confronted by investors in an effort to obtain location permit are:

• lack of a general plan and a plan for detailed regulation for the entire territory of Žagubica municipality;

• large number of plot owners on the site provided for the construction of small hydroelectric plants facilities;

In principle, for the potential investor for the construction of SHP "Ribare", there are two possible ways for obtaining the location permit.

First solution:

Žagubica municipality shall as soon as possible prepare all necessary plans to regulate construction in the municipality. With this in mind the potential investor could begin to solve the property-legal relations in the area envisaged for the construction of the small hydroelectric plant under the assumption that the municipality Žagubica will in due course make the necessary plans. Settlement of property-legal relations would be in this case performed by direct negotiation

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between the investors and each individual owner of land at the site provided for the construction of the small hydro power plant.

The advantage of this solution is that this is a systematic approach to solving the problem.

The main drawback of this solution is uncertainty when and in what form the general plan and the plan for detailed regulation of Žagubica municipality will be adopted.

Other solution:

Signing the agreement on cooperation in the implementation of the project of the small hydroelectric plant "Ribare" between Žagubica municipality and the investor. This will create the necessary legal conditions for the partnership of the municipality and the investor. The contract would have to specify that the municipality of Žagubica, on the basis of submitted general solutions to the SHP "Ribare" and resolved property-legal relations, shall bring the necessary regulatory and urban plans for the site of the small hydroelectric plant. Also, the municipalities would participate as a mediator in resolving property-legal relations. The investor would commit to completing and putting in work the small hydroelectric plant within the specified time.

The advantage of this solution is that in this way the problem of obtaining the location permit is solved faster than in case of waiting for the adoption of the general plan by the municipality.

The main disadvantage of this solution is that it implies an unsystematic approach and a direct agreement between the municipal authorities and the investor, which opens doubts regarding possible illegal actions in the process of obtaining the location permit.

5.2. Hydrological analysis of the watercourse

Hydrological analysis of the watercourse is perhaps the most important base for the proper preparation of technical documentation. Namely, on the basis of this foundation the sizing of electrical machinery and hydro facility system is performed. On the other hand, the results of this analysis are input to the calculation of electricity generation, and thus for the calculation of cash flows during the exploitation of hydroelectric power.

First solution:

Performance of standardized measurement of flow in the place intended for the construction of the small hydroelectric plant water intake. This includes the construction

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of a measuring station at the site and continuous measuring for at least one hydrological year.

The advantage of this solution is that in this way the safest watercourse and flow trends data in the course of one year are obtained.

The disadvantages of this solution are that it is a costly and time-consuming process.

Other solution:

Evaluation of the hydrologic condition of the watercourse on the basis of measurement which is performed at the measurement station of Hydrometeorological Service of Serbia which is located in Žagubica and rain-measuring stations that are located in the vicinity of the sites. Based on these data and data on the type and quality of land in the basin of Młava, as well as the density and type of vegetation in the basin, a hydrological assessment of the condition of the Mlava watercourse in the section provided for constructing the small hydroelectric plant water intake can be done. Bearing in mind that it is an estimated flow value it is necessary to perform indication flow measurements in several typical periods of the year, in order to determine the possible large deviations of the estimated values.

The advantages of this solution are that this approach provides a faster and cheaper evaluation of the hydrologic condition of the watercourse.

The main disadvantage of the solution is that it is the assessment of flow, and thus it means an increased risk that the estimated data could much deviate from the real ones.

5.3. General project of the small hydroelectric plant

General project provides a solution framework on the basis of which the preliminary and the main project will be performed, and therefore it represents a very important document. The main problems in making this project (and the whole technical documentation) lie in the reluctance of investors to invest enough money in the project development and preparation of technical documentation, as well as the lack of clear regulations regarding the necessary level of project documentation.

First solution:

General development of the project by a team of licensed professionals, that is electrical engineers, mechanical engineers and hydro-constructional engineers. One of the necessary input data for this project is previously conducted hydrological analysis of the

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watercourse. General project will have to contain several alternative solutions and ultimately selected the most suitable solution including all factors of importance. Also, this project must include preliminary measurement of necessary works and rough estimate of final investment.

The advantages of this project are that this approach selects the most suitable solution and provides a good basis for making preliminary and final design later.

The disadvantage of this project is the cost of its development (but this cannot count as a disadvantage but an expense required if we want a quality project of the small hydroelectric plant).

Another solution:

Development of the general project as part of another document (eg, techno-economic analysis) and the reduced number of experts working on it (eg, only electrical engineer with a license). Such a project is, as a rule, much less developed in the technical than the economic section, and on the other hand the technical section is often conditioned by the economic parameters and adjusted to meet the economic factors (such as return on investment period).

The advantage of this approach is the reduced cost of development of technical documentation.

The disadvantages of this approach to the development of general project are the insufficient levels of development of all variations of the solutions, as well as the quality of the proposed solution which is usually measured only by a factor of the height of the investment, which largely forces the designers of the technical solutions to reduce some of the details, often without the adequate analysis of the risk that such a reduction entails.

5.4. Geological study of the site where the small hydroelectric facilities will be built

On the basis of geological field study, the possibilities of certain parts of the ground to withstand the stresses that it will be subjected to when the small hydroelectric plant facilities are built are evaluated. On the basis of this study hydro facilities are measured (water intake, overflow concrete threshold, derivative canal, machine hall, discharge, etc.) and insurance is kept in all parts which the geological studies prove to be problematic for any reason. The main problem with carrying out the geological research

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in the field is that this is very expensive testing, and investors tend to avoid them (especially in the early stages of planning), or at least reduce them (for those parts of the project where such research is required by the law).

First solution:

Preparation of a detailed geological study of the entire site intended for the construction of the small hydroelectric plant. This would imply that the geological field testing should be carried out as follows:

• before the preparation of the general project visual inspection of the entire site is performed by an engaged professional in geology;

• preparation of geological foundation for the preparation of the preliminary project, which includes geologic field tests in all key sites (in the site provided for water intake, some sites on the route of the derivative canal, the site intended for the machine hall etc.);

• preparation of a detailed geological study for the main project, which involves detailed field testing throughout the area intended for the construction of the small hydroelectric plant;

The advantage of this approach is that it provides the whole picture of the geological features of the site, continually in the process of document preparation, which from the very beginning directs the project into the right direction.

The main disadvantages of such solution are high costs and a relatively long period of implementation.

Other solution:

Preparation of reduced geological study, which practically means:

• visual inspection with low-level ground testing for the preparation of the preliminary project;

• preparation of geological foundation for the main design, which includes geologic field testing at all key sites (at the site intended for water intake, some parts of the route of the derivative channel, the site planned for the machine hall, etc.).

The advantages of such solution are a lower level of investment and a shorter period for the implementation of this step.

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The disadvantages of this solution are that at the level of the general and preliminary design there are virtually no valid geological data, and therefore in these parts of the project properly routing solution cannot be performed, but it is left to be resolved in the main project, so a big deviation between the preliminary and the final design can occur. On the other hand, the level of the geological research is lower, and therefore

this increases the risk that during the exploitation some unforeseen damage due to the unstable terrain will occur (eg, leaking pipeline due to landslide, etc.).

5.5. Investment risk analysis

Investment risk analysis should serve investors as an indication of the most important parameters that must be taken into account so that at the end the investment would be in line with expectations. On the other hand, this analysis should provide a clear quantification of risk factors by which factor ranking will be carried out, and thus enable the optimization of the entire investment by paying the high-risk factors greater attention. The main problems with the development of this study lies in the reluctance of investors to invest enough money during the period of project development and preparation of project documentation, and a lack of managers who are sufficiently trained to assess risk in this type of project.

First solution:

Engagement of experienced consultants who will make assessment of investment risk in all segments of project development. This includes:

• risk analysis of doing business in the Serbian market with reference to operating in the energy sector prior to any project activities;

• risk analysis after the completion of the general project;

• risk analysis after the completion of the preliminary design;

• risk analysis after the completion of the main project;

The advantage of this approach is that in all phases of project development there is a clear picture about where attention should be paid in the next stage, making the entire project team better coordinate towards the least risky solution.

The main drawback of the solution is the high investment needed for hiring consultants of this type.

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Other solution:

Engagement of consultants with experience in the development of risk assessment study for small hydropower plant projects that will do a study on the investment risk assessment after completing the preliminary project. This will reduce costs for this purpose, yet it leaves room to minimize the main risk factors in the preparation of the main design.

The advantages of this solution are lower costs (and still enough room to react to improve the final solution).

The disadvantage of this solution is that there is a serious risk analysis only in the upper levels of the project, which leaves room that some parameters can no more be corrected.

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6. RECOMMENDATIONS

Based on the analysis made in the previous section, the most appropriate solutions to the key problems in the development of the project of the small hydroelectric plant "Ribare" will be selected in this chapter.

6.1. Obtaining the location permit

Based on the analysis of the possible solutions to this problem it is recommended to adopt the second solution, ie. to sign the contract of partnership with the municipality of Žagubica. This would most efficiently solve the problem of obtaining the location permit, and also prevent any future problems that could arise in the process of obtaining the following necessary permits (construction permits, building permits, inspection certificates, etc.).

6.2. Hydrological analysis of the watercourse

Based on the analysis of the possible solutions to this problem it is recommended to adopt the second solution, ie. to make assessment of the hydrological situation in the watercourse. This solution is reasonable to be applied to the Mlava watercourse bearing in mind that this is a medium watercourse, which is well covered by measuring stations of the Republic Hydrometeorological Service of Serbia. The closest hydrological station is located in Žagubica, and given the fact that, up to the water intake of the small hydroelectric plant "Ribare", there are no significant tributaries, the data measured at the measurement station Žagubica represent reliable data on the hydrological situation.

6.3. General small hydroelectric plant project

Based on the analysis of the possible solutions to this problem it is recommended to adopt the first solution, ie. that the general project should be created as a separate document by a properly selected team of licensed professionals. This approach to the implementation of the general project provides a good basis for all other phases of design, which from the very beginning properly directs the project. It would be good to have an economic analysis in the general project (but an economic analysis of the adopted solution that best meets the technical terms!).

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6.4. Geological study in the field where the small hydroelectric facilities will be built

Based on the analysis of the possible solutions to this problem it is recommended to adopt the first solution, ie. to make a detailed geological study. This solution was chosen because of major defects that may occur during operation due to inadequate assessment of the area condition.

In practice, there have been times when the major damage occurred due to inadequate geological assessment (eg. cracking pipes, collapse of the water intake, etc.). This type of damage later requires large investments in rehabilitation, with a very long period in which the small hydroelectric plant is out of service, and in extreme cases it can happen that the damage cannot be repaired.

6.5. Investment risk analysis

Based on the analysis of the possible solutions to this problem it is recommended to adopt the second solution, ie. to develop the risk assessment study after the preliminary design of the small hydro power plant "Ribare." This solution was adopted for economic reasons, because the first solution would entail a large investment. On the other hand, the adoption of this decision still leaves enough room to minimize the main risk factors during the project design. It is advisable to develop risk assessment in some other stages of the project if needed on the ground, ie. if a difficult decision should be made.

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7. IMPLEMENTATION OF THE PROJECT OF THE DEVELOPMENT OF SHP "RIBARE"

The purpose of this chapter is to define an action plan of the project of the development of the small hydroelectric plant "Ribare." This will be done on the basis of previous analyses of the key elements of the project, as well as key issues and adopted solutions. Also, the proposed action plan takes into account the time schedule of tasks to be performed. It is important that certain steps in the proposed action plan partly or fully overlap, and it is necessary to properly conduct the project in order to fit a variety of activities.

1. Signing the agreement on the cooperation on the implementation of the project of the small hydroelectric plant "Ribare" between Žagubica municipality and the investor. For this step the municipal authorities and the investor management are in charge.

2. Development of hydrological assessment of the Młava river of interest for the construction of SHP "Ribare." For this step the investor should hire a licensed hydrologist. The engaged hydrologist will be responsible for the quality of the study performed.

3 Development of the general project SHP "Ribare." For this step, the investor has to hire a consulting agency with experience in the development of such projects. The engaged consulting agency will be responsible for the quality of the project.

4 Settlement of property-legal relations in the area intended for the construction of SHP "Ribare." In this step, the investor has to reach an agreement with each individual landowner in the area of interest to solve the property-legal relations. In this task Žagubica municipality should be the intermediary between the investor and the individual owners in order to eventually reach a satisfactory agreement for both parties.

5 Adoption of the general plan and the detailed regulation plan for the site intended for the construction of SHP "Ribare." For this step the municipality of Žagubica is in charge and it should implemented such an act on the basis of previous steps.

6. Issuance of the location permit. For this step the municipality of Žagubica is in charge and it should implemented such an act on the basis of previous steps.

7. Making all the necessary foundations for the development of the preliminary project. The design base to be performed in this phase are:

• Geological assessment of the field;

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• Assessing the impact on the environment;

To create the necessary design base the investor needs to hire licensed professionals who will be responsible for the project quality. It is common for the preparation of these studies to involve the same company that has realized the general project and will realize the preliminary and the main design.

8. Preparation of the preliminary design. For this step, the investor has to hire a consulting agency with experience in the development of such projects. Engaged consulting agency will be responsible for the quality of the project.

9. Obtaining approval for the construction. Based on the preliminary design the competent authority of Žagubica municipality issues this document.

10. development of the main project. For this step, the investor has to hire a consulting agency with experience in the development of such projects. Engaged consulting agency will be responsible for the quality of the project.

11. Revision of the main project. Under the applicable laws and regulations, the investor is obliged to hire an independent audit firm to check the main project.

12. Issuance of building permits. For this step the municipality of Žagubica is in charge and it should implement such an act on the basis of previous steps.

13. Construction of the small hydroelectric plant "Ribare." Based on the main project and the issued building permit the construction of SHP "Ribare" is performed. For this step, the investor has to hire a contractor with experience in the development of such projects. The engaged contractor will be responsible for the quality of the constructed facility.

14 As-built project development. For this step, the investor has to hire a consulting agency with experience in the development of such projects. The engaged consulting agency will be responsible for the quality of the project.

15. Technical acceptance of the facility. For this step are in charge:

• the municipal authorities of Žagubica who have issued the building permit;

• the electric power distribution company in charge;

• the water management company in charge;

16. Acquiring the status of privileged producer of electricity. According to the Regulation on the measures of incentives for the production of electricity using renewable energy

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and combined production of electricity and thermal energy (hereinafter Ordinance), in accordance with Article 3 of this Regulation, SHP

"Ribare" can be registered as a privileged producer of electricity. This registration is performed by the competent authorities, at the request of the investor.

17. The contract with the responsible company to purchase generated electricity. According to Article 6 of the Regulation, SHP "Ribare" as a privileged producer of electricity signs with the relevant electric power company (customer) contract on rights and obligations in matters of trade in electricity. Consent to this agreement must also be given by the Ministry of Mining and Energy.

NOTE: The proposed action plan defines the main steps in the implementation of the project. It should be borne in mind that there are many intermediate steps which are difficult to define in advance due to the absence of a clear legal framework in this area, as well as the low level of experience of those responsible for the implementation of the project of this type.

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8. BIBLIOGRAPHY

[1] Small hydroelectric plants, Milosav Mihailović, 1995, Belgrade, Serbia

[2] Land Registry of small hydroelectric plants in Serbia, Energoprojekt-Hidroinženjering, 1991, Belgrade, Serbia

[3] The use of water power, water management institute Jaroslav Cherni, 1990, Belgrade, Serbia

[4] RENEWABLE ENERGY IN SERBIA, recommendations, resources and criteria, Editor: Nataša Ðereg; Authors: Nataša Đereg, Zvezdan Kalmar Kranjska Jovic, Iomut Apostle, December 2008. Subotica

[5] Law on Planning and Construction, The Official. Gazette RS, no. 72/2009

[6] Decree on measures of incentives for the production of electricity using renewable energy and combined production of electricity and thermal energy, Fig. Gazette RS, no. 84/04