Transcript Document
Serbia Enhancing Energy Efficiency and use of Renewable Energy Sources “Energy Crisis and Climate Change – Challenges for Politics and Business in South East Europe” Evangelische Akademie Tutzing, 28 March 2009. Republic of Serbia - Ministry of Mining and Energy Dejan Stojadinovic, Assistant Minister Legal Framework • Energy Law (OJ RS 84/04) provides the overall foundation for development of renewable energy sources and energy efficiency • Energy Law has established Serbian Energy Efficiency Agency, with the mission to promote and enhance rational use of energy and use of renewable energy sources - in order to ensure sustainable energy development through promotion and information dissemination, technical advices and demonstration projects • Energy Sector Development Strategy of Republic of Serbia by 2015. (2005) emphasize importance of utilization of renewable energy sources for distributed heat and power generation and recognize Serbian Energy Efficiency Agency, Energy Efficiency Fund and introduction of support schemes as the main instruments for the achievement of these goals • Programme for Implementation of Energy Sector Development Strategy 2007-2012 (2007) elaborate Strategy in more details and define priorities for utilization of renewable energy sources. Programme is updated every two year, and next update will be prepared for the period 2009-2011 • Regulation on technical and other requirements of liquid biofuels (OJ S&M 23/06) defines technical requirements for biodiesel and biofuels 2 Institutional Stakeholders – EE & RES MINISTRY OF MINING AND ENERGY Renewable energy and energy efficiency policy development and implementation MINISTRY OF SCIENCE AND TECHNOLOGY National Programme for Energy Efficiency – technology dissemination and demonstration facilities MINISTRY OF ENVIRONMENT AND SPATIAL PLANNING Building standards Some energy efficiency provisions ENVIRONMENTAL PROTECTION FUND ENERGY EFFICIENCY AGENCY REGIONAL ENERGY EFFICIENCY CENTRES Financing some energy efficiency and renewable energy programs Sectoral energy efficiency programs Training and public awareness campaigns Belgrade, Novi Sad, Nis, Kragujevac, Kraljevo NO INSTITUTIONAL MECHANISM TO COORDINATE POLICIES WITH FOCUS ON ENERGY EFFICIENCY AND RENEWABLES 3 Energy production and consumption 10% THERMAL ENERGY PLANNED PRIMARY ENERGY SUPPLY IN 2009. – 17.794 M toe 13% SOLID FUELS 55% PRODUCTION 40% LIQUID FUELS 45% IMPORT PLANNED FINAL ENERGY SUPPLY IN 2009. - 8.915 M toe 11% GASEOUS FUELS 26% ELECTRICITY Energy intensity 2005. (est.) 0.41 toe per thousand USD of GDP 2.7 times higher than average for OECD Europe FINAL ENERGY SUPPLY IN 2009. 4.0 3.5 Technical potential for energy efficiency – 30% Economic potential for energy efficiency – 20% 3.0 M toe 2.5 2.0 1.5 Regulation under preparation 1.0 Law on Rational Use of Energy 0.5 Secondary legislation 0.0 COAL OIL INDUSTRY GAS HOUSEHOLDS ELECTRICITY HEAT Introduction of Energy Management OTHERS 4 Energy Balance 2009 2007. 2008. 2009. Primary energy supply per capita (toe/capita) 2.228 2.395 2.416 Electricity supply per capita (toe/capita) (kWh/capita) 0.295 3,429 0.309 3,589 0.314 3,654 Share of RES-E in total electricity generation 28% 27% 28% Share of RE in final energy supply 13% 12% 11% Production (toe) Geothermal energy 4,700 Serbia 2009 Large Hydro 923,000 Planned Production of Renewable Energy Small Hydro 4,300 Biodiesel Fuel wood TOTAL 300 163,000 1,095,300 5 RES Technical Potential Serbia’s endowment of renewable energy resources is substantial - realization of these potentials require Government action Wind 5% Geothermal 5% Potentials (Mtoe) Biomass 2.40 SHPP 0.40 Solar 0.64 Geothermal 0.20 Wind 0.19 TOTAL 3.83 Solar 17% SHPP 10% Biomass 63% Clear technical potential of renewable energy - insufficient information about the economic potential 6 Biomass Crop farming residues 1/3 available for Energy Use Total residues (1,000 tones) Fruit growing residues Residues for Energy Use (1,000 tones) Wheat 2,905 1,365 Barley 295 180 Rye 15.5 4.4 Corn 5,310 1,140 Sunflower 705 240 Soybean 320 130 Rapeseed 7.8 1.6 9,560 3,060 TOTAL Forest biomass Biomass residues (1,000 tones) Plum 393.5 Apple 36.2 Cherries 55.0 Pear 14.0 Peach 35.1 Apricot 15.5 Walnuts 55.0 Grapes 515.0 TOTAL 1,119.3 Wood Agriculture biomass biomass 1 Mtoe 1.4 Mtoe Fuel Wood 7 million m³ unofficial -------------------1.6 million m³ official (55% from State forest) Wood residues 5 million m³ TOTAL 12 million m³ Most promising utilization options for biomass: •Space heating in households and buildings using biomass pellets or briquettes •Co-firing or total replacement in district heating plants firing heavy oil or coal in south Serbia, where natural gas is not available yet •Production of electricity utilizing agricultural and wood wastes 7 Small Hydro Power Plants SHPP Cadastre (1987) 856 locations 500 MW >5 MW: 9 locations 2-5MW: 30 locations (average 3 MW) <1 MW :largest number of locations 1,500 GWh/year Number of SHPP in Serbia – 60 (50% out of operation) Revitalization Construction 8 Small Hydro Power Plants No of Potential power SHPP installed (kW) locations Potential Annual Generation (MWh) Municipality No of SHPP locations Potential power Potential Annual installed (kW) Generation (MWh) Municipality 64 34,300 121,203 Ivanjica 19 8,625 32,877 Čajetina 35 33,284 109,692 Raška 17 8,320 29,720 Leskovac 40 25,925 94,026 Pirot 21 8,310 36,832 Nova Varoš 40 23,458 78,394 Kraljevo 27 8,170 32,543 Surdulica 47 18,800 73,971 Prijepolje 13 7,990 28,262 Vlasotince 9 17,576 60,210 Zaječar 19 7,640 27,395 Bajina Bašta 22 17,045 72,212 Crna Trava 12 7,070 27,500 Niš 20 15,825 55,100 Novi Pazar 8 6,740 20,050 Boljevac 8 15,690 58,850 Bela Palanka 12 5,346 17,928 Užice 8 11,216 25,850 Despotovac 15 5,325 19,862 Ljubovija 30 10,974 45,391 Brus 7 4,730 10,230 Negotin 19 10,706 30,180 Đa 11 4,690 16,578 Vladičin Han 32 10,185 38,438 Vranje 6 4,655 20,283 Arilje 22 10,141 38,985 Kuršumlija 14 4,515 19,459 Babušnica 16 9,875 35,318 Priboj 1 3,000 13,700 Novi Sad 30 9,800 36,099 Trgovište 1 850 4,700 Vrbas 13 9,785 30,937 Valjevo 1 620 2,270 Bečej 10 9,305 27,419 Tutin 1 1,220 8,190 Bela Crkva 16 8,945 24,380 Žagubica 17 8,675 34,553 Bosilegrad 9 Solar AVERAGE DAILY SOLAR IRRADIANCE ON HORIZONTAL SURFACE IN kWh/m² MONTH I II III IV V VI VII VIII IX X XI XII Total Year Beograd 1.40 2.20 3.35 4.85 6.00 6.45 6.75 6.00 4.65 3.05 1.60 1.15 1,446.80 3.96 Vršac 1.00 2.00 3.35 4.40 6.00 6.40 6.55 6.85 4.60 3.00 1.55 1.00 1,424.75 3.90 Palić 1.30 2.10 3.45 5.00 6.15 6.25 6.35 5.85 4.30 2.85 1.40 1.15 1,407.40 3.80 Novi Sad 1.45 2.35 3.20 4.65 5.80 6.20 6.35 5.75 4.40 2.90 1.45 1.20 1,392.65 3.82 Niš 1.75 2.60 3.45 5.00 6.10 6.35 6.70 6.15 5.35 3.45 1.85 1.50 1,531.40 4.20 Kuršumlija 2.15 3.00 3.60 5.05 5.85 6.05 6.55 6.10 5.30 3.50 2.00 1.75 1,550.50 4.25 Peć 1.85 2.95 3.70 4.85 5.95 6.15 6.75 6.15 4.90 3.65 2.25 1.60 1,546.25 4.24 Priština 1.85 2.90 3.70 5.25 6.30 6.60 6.95 6.30 5.10 3.35 1.90 1.60 1,578.25 4.32 Vranje 1.70 2.70 3.65 5.15 6.15 6.40 6.50 6.35 5.25 3.45 1.85 1.50 1,543.40 4.23 Loznica 1.50 2.30 3.05 4.35 5.30 5.75 6.15 5.60 4.30 2.80 1.45 1.20 1,333.50 3.65 Kragujevac 1.50 2.40 3.35 4.80 5.85 6.10 6.45 5.90 4.85 3.30 1.70 1.30 1,447.85 3.97 Negotin 1.35 2.05 3.25 4.85 6.05 6.60 6.95 6.25 4.75 2.90 1.45 1.20 1,453.35 3.98 Zlatibor 1.50 2.30 3.10 4.35 5.10 5.85 5.90 5.35 4.30 2.75 1.60 1.30 1,316.40 3.61 Average yearly insolation in Serbia about 1,400 kWh/m² Average Daily Average daily value about 3.8 kWh/m² 10 Solar Most promisin utilization options •Sanitary water heating •Space heating If each housing unit (2.65 million units) would install average 4 m² of collectors Equivalent to some saving potential of 7,420 GWh 11 Geothermal Average geothermal flow density in Serbia is higher than 60 mW/m³ There are 160 natural resources of geothermal waters (excluding Panonian basin) with temperature above 15ºC Highest temperatures recorded Vranjska spa - 96ºC Jošanička spa - 78ºC Sijarinska spa - 72ºC Total flow rate of geothermal water resources is 4000 l/sec 60 locations are in the water reservoirs up to 3000 m depth Residential and commercial areas Spas and recreation Gain drying Greenhouses Fishing and cattle breeding Industrial processes Heat pump heating Total Installed thermal power (MWt) 18.5 36.0 0.7 8.4 6.4 3.9 12.0 86.0 Produced heat (TJ/year) 575 1,150 22 256 211 121 80 2,415 Use of geothermal potential is mainly for balneological purposes, sports and recreation Prospects for expanding geothermal energy for agricultural heat and water heating are reasonably good Potential for larger scale geothermal electricity is limited - requires water temperatures above 100°C. 12 Wind Wind data based on 10 metre heights extrapolated to 50 metre heights 2,300 GWh 1,300 MW of capacity at sites with minimal average wind speeds of 5 m/s Best locations in Serbia (extrapolated) Midzor 7.66 m/s Suva Mt. 6.46 m/s Vrsacki breg 6.27 m/s Tupiznica 6.25 m/s Krepoljin 6.18 m/s Deli Jovan 6.13 m/s 13 Wind Case Study: Popadija wind farm 14 Barriers for wider use of RES Institutional barriers •Lack of experience Need for the experience of how a private sector renewable energy project can work in Serbia Absence of “first set” of projects •Transition Issues Many industrial companies are in transition – both with regard to structure and ownership, and managements are not yet ready to consider measures to rationalize energy activities Financial barriers •Absence of a price support mechanism Renewable energy projects are not bankable without a price support mechanism RES cannot compete with fossil electricity generation based on lignite (whose price does not reflect their environmental damage costs) •Debt Financing support Difficulty to secure long term loans appropriate for small renewable energy projects •Electricity tariff Low electricity tariff does not stipulate domestic, commercial and industrial consumers to use renewable energy - current average price is under 5 €cents/kWh 15 Barriers for wider use of RES Technical barriers •Absence of technical standards Despite the existence of manufacturers of heating equipment and biomass fuel (briquettes and pellets), production standards are not regulated Equipment for biomass energy utilization need clear information about technical specification and performance characteristics •Barriers to biomass utilization Low electricity price, which decrease motivation to install biomass firing boilers No developed market for biomass fuel and biomass utilisation facilities •Absence of a renewable energy resources inventory Update and development of Small Hydro Cadastre Wind monitoring programe with wind speed measurements at 50 meters needed 16 Legal regulation under preparation Purpose: to promote investments in renewable energy projects Amendments to the Energy Law drafting •Production, transporting, storaging and trading of biofules is recognized as energy activity •Definition of renewable energy sources is amplified and contains biofuels, biogas, landfill gas, sewage gas •Definition of biomass reffer to biodegradable material developed in agriculture, forestry and accompanying industry for energy purposes •Definition of privileged power producers includes all RES producers except hydro-power plants and biomass power plants larger than 10 MW Regulation on privileged power producers will be the definition of what types of renewable energy producers qualify for privileged status Deadline for adoption: 1 July 2009. Feed-in tariffs as the price support mechanism Deadline for adoption: 1 July 2009. •Guaranteed grid access to a privileged power producers - through obligation of local distribution company to purchase all the electricity produced from RES 17 Assumptions for development of Feed-in tarriffs a purchase price, expressed in c€/kWh, is guaranteed and fixed during the 12-year period. The level of a purchase price is set to provide invested capital returned in 12 years, with covering all operating costs incurred during the same period; in case of power plants that have been in operation before the application of feed-in tariffs – proposed feed-in tariffs are valid for the shortened period of time feed-in tariffs for old power plants that have been out of commission for at least five years are separately defined, in order to encourage revitalisation and re-entering in operation of these plants; additional criteria for setting the feed-in tariff is to have the internal rate of return at least 14%, i.e. not below this percentage 18 Investment incentives applicable to RES projects INVESTMENT INCENTIVES In case of investments in production facility, Government approve grant between 2000 and 5000 euros per new job creation, minimal investment value is within the range of 1 and 3 million euros, whereas the minimal number of new jobs is 50 An investor that invests in fixed assets, i.e. in whose fixed assets other entity invests over 600 million RSD (6.8 million EUR), and uses these assets for conducting business in Serba and during the investment period additionally recruit at least 100 people - shall be exempted from corporate profit tax payments for the period of 10 years proportionally with the investment made TAX CREDITS A tax payer that made profit in newly established business unit in an underdeveloped area will receive a corporate profit tax reduction in the duration of two years, proportional to the share of such made profit in total profit of the company ACCELERATED DEPRECIATION OF FIXED ASSETS This incentive is provided for fixed assets that are used for the prevention of air pollution, water and soil pollution, noise reduction, energy savings, forestation, and collection and utilization of waste for industrial raw materials and fuels FOREIGN INVESTMENTS INCENTIVES The law on foreign investments stipulates free import of goods that are the foreign investor’s nominal capital (founding capital) – providing it fulfils acts regulating environment protection. Import of equipment as the founding capital of a foreign investor, except for passenger motor vehicles and game & gambling machines, is free from customs and other duties. Besides, a foreign investor and a company with foreign founding capital are entitled to tax and customs related deductions in line with the law 19 THANK YOU FOR YOUR ATTENTION! 20