Energy Efficiency 2020 by CorD Magazine

ENERGY EFFICIENCY EXPLORING THE ENORMOUS OPPORTUNITIES TO IMPROVE EVERY SECTOR OF THE ECONOMY, WHETHER BUILDINGS, TRANSPORTATION, INDUSTRY OR ENERGY GENERATION

Stevica Deđanski, State Secretary, Ministry of Mining and Energy ● Miloš Banjac, Ph.D. ME, Assistant Minister, Department for Energy Efficiency and Renewable Energy ● Dejan Marković, General Manager Schneider Electric doo ● Dragoljub Zbiljić, President of company Energotehnika – Južna Bačka ● Dušan Durković, Country Manager for Serbia & Export, Grundfos ● Dragan Azdejković, Director, JKP “Toplana” Krusevac ● Lidija Carević, Coordinator of the Biogas Association of Serbia ● Rade Milekić, co-owner of Elektrovat d.o.o. (Ltd.) Belgrade ● Milan Krunić, Bojan Terzić, Co-Founders, GamaSmart D.O.O. ● Marko Ilić, Owner and CEO of Green Energy Solutions (GES)

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ENERGY EFFICIENCY

CONTENTS

EXPLORING THE ENORMOUS OPPORTUNITIES TO IMPROVE EVERY SECTOR OF THE ECONOMY, WHETHER BUILDINGS, TRANSPORTATION, INDUSTRY OR ENERGY GENERATION

ENORMOUS OPPORTUNITIES TO IMPROVE EFFICIENCY

COMMENT

INSULATED BUILDINGS SAVE UP TO 50% OF ENERGY

STEVICA DEĐANSKI, STATE SECRETARY AT THE MINISTRY OF MINING & ENERGY

14 15

EPS INVESTMENTS IN MODERN ENERGY

EPS IMPROVES CAPACITIES

GREEN IS GOOD FOR BUSINESS

DEJAN MARKOVIĆ, GENERAL MANAGER, SCHNEIDER ELECTRIC D.O.O. (LTD.)

25 SUSTAINABILITY IS OUR ESSENCE

DUŠAN DURKOVIĆ, COUNTRY MANAGER FOR SERBIA & EXPORT, GRUNDFOS

ENERGY

WHAT ARE DIFFERENT SOURCES OF ENERGY?

LIDIJA CAREVIĆ, COORDINATOR OF THE BIOGAS ASSOCIATION OF SERBIA

WE FIGHT FOR THE TRUTH ABOUT SHPS

RADE MILEKIĆ, CO-OWNER OF ELEKTROVAT D.O.O. (LTD.) BELGRADE

DIGITALIZATION IS REVOLUTIONIZING THE RENEWABLE ENERGY SECTOR

BUREAUCRACY HAMPERS DEVELOPMENT

MARKO ILIĆ, OWNER AND CEO OF GREEN ENERGY SOLUTIONS (GES)

NEW ENERGY TECHNOLOGIES TO LOOK OUT FOR IN 2020 TECHNOLOGIES

MILAN KRUNIĆ, BOJAN TERZIĆ, CO-FOUNDERS, GAMASMART D.O.O.

LED BULBS SAVE UP TO 80% OF ENERGY

PH.D. ME, ASSISTANT MINISTER, DEPARTMENT FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY

IMPROVED ENERGY EFFICIENCY OF SCHOOLS AND PRE-SCHOOLS

BIOGAS - ENERGY OF THE FUTURE

EU ENERGY EFFICIENCY TARGETS 2020

EUROPEAN ENVIRONMENT AGENCY

FINALLY – ALL BOILERS WORKING

DRAGAN AZDEJKOVIĆ, CEO, PUBLIC UTILITY COMPANY TOPLANA, KRUŠEVAC

GIZ SERBIA

BUSINESSMEN ARE OBLIGED TO EMPLOY

DRAGOLJUB ZBILJIĆ, PRESIDENT OF COMPANY ENERGOTEHNIKA – JUŽNA BAČKA

Supported by the Serbian Ministry of Mining and Energy EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGNER: Jasmina Laković j.lakovic@aim.rs EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović

COPY EDITOR: Mark Pullen SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs

DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com

ENERGY EFFICIENCY

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THIS PUBLICATION IS FREE OF CHARGE The views expressed in this publication are those of the presenter; they do not

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COMMENT

Enormous Opportunities

TO IMPROVE EFFICIENCY

Energy efficiency simply means using less energy to perform the same task – that is, eliminating energy wastage

Neighbourhoods that are designed with mixed use nergy efficiency brings a variety of benefits: reducing developments and safe, accessible options for walking, greenhouse gas emissions, reducing demand for cycling and public transportation are crucial to reducing energy imports and lowering our costs, at housethe need to travel using personal vehicles. hold and economy-wide levels. While renewable Vehicles with greater energy efficient require less energy technologies also help accomplish these objectives, fuel to cover a given distance. This reduces emissions and improving energy efficiency is the cheapest and often also makes such vehicles significantly cheaper to operate. most immediate way to reduce the use of fossil fuels. Plug-in hybrids and fully electric vehicles are particularly There are enormous opportunities to improve efficiency fuel efficient. in every sector of the economy, whether that’s buildings, Freight can be transported more efficiently by improvtransportation, industry or energy generation. Building designers are looking to optimise the effiing the efficiency of rail and road transportation and by shifting long-distance freight transport from road to rail. ciency of their buildings and then incorporate renewable The four strategies above improve energy efficiency energy technologies, leading to the creation of zero-energy primarily through technology and design. However, the way buildings. Changes in existing buildings that can also people use these technologies influence their effectiveness reduce energy usage and costs may include small steps significantly. What impact can a highly like choosing LED light bulbs and Research has shown that efficient technology have if households energy efficient appliances, or larger efforts, such as upgrading insulation 30 per cent of the potential and businesses are not motivated to buy, install, and/or activate it? How and weatherising structures. energy savings of high does driving behaviour and unnecesCombined heat and power systems capture the “waste” heat from sary idling impact on fuel consumpefficiency technologies is power plants and use it to provide tion? How many people will use public lost due to a variety of social, transport if there is a cultural stigma heating, cooling, and/or hot water to nearby buildings and facilities. cultural and economic factors. against it? Research has shown that This increases the energy efficiency Addressing these factors is 30 per cent of the potential energy of power generation from approxisavings of high efficiency technologies mately 33 per cent to up to 80 per also an important component is lost due to a variety of social, cultural and economic factors. Addressing cent. The smart grid is another system of the drive to make our these factors is also an important that will improve the efficiency of economy more energy component of the drive to make our electric generation, distribution, and economy more energy efficient. consumption. efficient

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STEVICA DEĐANSKI, STATE SECRETARY AT THE MINISTRY OF MINING & ENERGY

INTERVIEW

Insulated Buildings Save

UP TO 50% OF ENERGY

All newly constructed buildings must comply with the requirements of energy efficiency, which means that they have to consume less than 65 kilowatt hours of energy per square metre annually

n order to encourage improvements in energy efficiency in this sector, it is necessary to set up an Energy Efficiency Improvement Fund that would enable the implementation of energy efficiency improvement programmes for residential buildings, which will result in major savings in energy that is currently wasted significantly more in Serbia than in EU countries, says Stevica Deđanski Ph.D., State Secretary at the Ministry of Energy. 7

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it is assumed that there are no major changes in improving energy efficiency within the existing stock of buildings. In order to encourage improvements in energy efficiency in this sector, it is necessary to establish an Energy Efficiency Improvement Fund that would enable the implementation of the energy efficiency improvement programme for residential buildings. Energy efficiency has long been identified with public financing in private buildings. Is this true, and precisely how much energy can households save? There has been mention of a third action plan that envisages savings of up to 58 per cent of energy consumed by households and occupants of buildings. - The third action plan actually envisages that, of the nine per cent of final energy savings (0.7524 Mtoe) When it comes to energy efficienenvisaged as being realised in the Provided the fund is set up cy, one always considers how much period from 2010 to 2018, about 58 by the end of the year, Serbia per cent should be achieved in the savings this brings to consumers and should receive around four sector of households and public and how much bills are reduced. You have warned repeatedly about the fact that million euros from IPA funds commercial activities. The household 300,000 homes in Serbia lack thersector is projected to realise about for the initial phase of works 36.9% per cent of 0.2776 Mtoe (million mal insulation and consume four to five times more energy than homes tonnes of oil equivalent). According to in the EU. Is that situation changing? preliminary estimates in the household sector as of year’s - The situation is certainly changing when it comes to end 2018, about 32.75 per cent of the total target was newly constructed buildings, because the regulation achieved. These savings were largely achieved through prescribing the energy efficiency requirements of new the implementation of new building regulations and buildings stipulates that all new buildings must be conthrough the application of energy efficiency labelling for structed in such a way as to be classified in energy class appliances that impact on energy consumption. C, which means that they consume less than 65 kilowatt When it comes to the effects of implementing energy hours of energy per square metre annually. Considering efficiency measures at the level of individual households, that around 2.2 million square metres of new buildings savings of up to 50 per cent can be achieved depending are being constructed annually in Serbia, the result of on the types of measures implemented. However, conconstructing buildings in accordance with this regulasidering the economic situation and the fact that energy tion is the avoiding of additional energy consumption of efficiency measures pay off after some 10 to 15 years, it is about 207 million kilowatt hours per year compared to essential for the state to secure incentives for citizens. the average consumption of existing buildings in Serbia. This is also a practise in EU countries. Some preliminary When it comes to existing buildings, our statistics do not analyses estimate that incentives should provide funds at monitor data regarding the rehabilitation of buildings, but the level of about 40 per cent of the value of investments. 8

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You once stated well that the ministry has recognised a new source of energy in energy efficiency. Are you exerting great efforts in order to accelerate its advancement? - Yes, the ministry is exerting great efforts in order to create the conditions to improve energy efficiency. This implies constant work on improving energy efficiency policies and regulations and their harmonisation with EU policies and regulations, which change frequently, but also work on applying regulations and implementing and monitoring the implementation of energy efficiency policies. Apart from that, a large number of investment and technical assistance projects are being implemented in the Ministry, and incentives for energy efficiency are secured from budgetary funds. Resources of the budget fund, which actually only represents a budgetary line, have to date been allocated to local self-government units, primarily because until 2018 the resources of the fund were very modest, but also due to the small number of employees working on these issues in the ministry. Following the introduction of the tax for energy efficiency as of 1st July this year, work is underway on the creation of the Energy Efficiency Fund. region have specially established inWill this work be completed by the The Ministry of Energy end of the year? stitutions with developed procedures is exerting great efforts to - Within the scope of the project and trained staff. create the conditions “Strengthening the capacities of the Ministry of Mining and Energy in the to improve energy efficiency Is it too late for Serbia to direct the implementation of financial lines for attention of citizens towards the improving energy efficiency”, which is financed from IPA benefits of energy efficiency? Are we lagging behind funds and conducted by this ministry, analysis has been the countries of the EU a lot? conducted on possible options for establishing an energy - The EU works very hard on the topic of energy efficiency and efficiency improvement fund as a separate institution. it is increasingly gaining importance in light of the struggle Further steps depend on the Ministry of Finance, which against climate change. In this sense, policies and regulahas formed a working group that should overview the tions in the EU are changing constantly with the intention possibilities of setting up funds for energy efficiency of identifying better and more efficient mechanisms to and the environment. We expect a solution to be found encourage improvements in energy efficiency. We try to by the end of the year. keep track of all these changes, but - given our economic Provided the fund is established by the end of the year, situation - the dynamics of implementation are different in as planned, it is expected that we will receive around 4 milour country. In the story of energy efficiency, this is certainly lion euros from IPA funds for the initial phase of the fund’s a very important segment for raising citizens’ awareness work, while in the period ahead we can expect far greater and securing financial incentives. In order to properly deal resources provided the fund is set up properly and shows with the topic of raising public awareness, the ministry is good results. EU member states from our neighbourhood part of this IPA project, the realisation of which envisaged receive anything from hundreds of millions of euros to over the development of a five-year strategy for raising awarea billion euros from EU funds for energy efficiency. In order ness on energy efficiency. Through the same project, part of to spend such funds effectively, almost all countries in the the activities included in the strategy will be implemented. 9

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ENERGY EFFICIENCY GLOBAL

ENERGY EFFICIENCY PROGRESS SLOWS Energy efficiency has tremendous potential to boost economic growth and avoid greenhouse gas emissions, but the global rate of progress is slowing – a trend that has major implications for consumers, businesses and the environment, according to a new report by the International Energy Agency (IEA).

Global primary energy intensity – an important indicator of how heavily the world’s economic activity uses energy – improved by just 1.2% in 2018, the slowest rate since the start of this decade, according to Energy Efficiency 2019, the IEA’s annual report on energy efficiency. The rate of improvement has now declined for three years in a row, leaving it well below 3%. If the rate had reached 3% over that period, the world could have generated a further $2.6 trillion of economic output – close to the size of the entire French economy – for the same amount of energy.

SPAIN

SOLVE IMBALANCE BETWEEN THE ELECTRICITY SYSTEM’S REGULATED COSTS

OXFAM STUDY

POOR NATIONS PAY PRICE AS MILLIONS FLEE 'CLIMATE CHAOS'

Fiercer weather and worsening wildfires drove more than 20 million people a year from their homes over the last decade - a problem set to worsen unless leaders act swiftly to head off surging climate threats, antipoverty charity Oxfam said. Much of the displacement caused by cyclones, floods and fires appeared temporary and in some cases due to better efforts to evacuate people ahead of danger. The Oxfam study, examined the numbers of people displaced inside their home countries by climate-fuelled disasters between 2008 and 2018, based on government and international agency data, as well as media reports. People were three times more likely to be displaced by cyclones, floods or fires than by conflicts, it found.

LABOUR PLANS TO MAKE 27M HOMES ENERGY EFFICIENT The UK Labour Party has drawn up plans for what it claims would be the biggest overhaul of housing since the second world war, with a plan to install loft insulation, double glazing and renewable technologies in almost all of the UK’s 27m homes. The party says that the Warm Homes for All scheme will create 450,000 jobs over the next decade. Under the plans, low-income households would be able to apply for a grant, paying no upfront costs. They would keep most of the savings on their bills, though part would be used to pay for a proportion of the work. Wealthier households would be able to claim interest-free loans for the work, with the loans claimed back through their bills.

ENTREPRENEURS

TRANSFORMING VISION INTO REALITY

In the electricity sector, Spain has built a large, diverse and reliable power generation fleet. After several years of efforts, the government has now also managed to solve the massive imbalance between the electricity system’s regulated costs and revenues. The broad and deep electricity market reform has fundamentally changed the remuneration scheme for renewable energy. Spain must now maintain its strong and long-term commitment to a financially sustainable electricity system. To improve investor confidence, it should also closely follow the principles of transparency, predictability and certainty when revising policies and regulations. 10

Many of the young stars who comprise our Forbes 30 Under 30 in the Energy sector — share a drive to abandon fossil fuels, reduce carbon emissions, and improve efficiency in the world all around us. They know our homes, cars and workplaces suck up a lot of energy — but they don’t have to. At least not if these finalists can make their visions into reality. Zachary Smith, 29, founded Zauben, a design firm specialising in green, sustainable, energy efficient designs that interact with ZACHARY SMITH nature. In particular, they are designing buildings with green roofs and living walls, which can reduce stormwater runoff by 80%, and extend roof life by 50 years, while improving insulation and reducing HVAC costs. Smith: “As the concrete jungle sprawls around us, so does our need to be close to nature.”

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ENERGY STORAGE

NANOMATERIALS ARE KEY TO ENERGY STORAGE A report published in Science magazine by a team of scientists claims nanomaterials are the key to widespread, affordable energy storage. “Most of the biggest problems facing the push for sustainability can all be tied back to the need for better energy storage,” says Professor Yury Gogotsi of Drexel University and lead author of the paper. According to Drexel University, the main thrust of battery research is finding better energy materials and combining them to store more electrons. Using a process called nanostructuring, researchers introduce particles, tubes, flakes, and stacks of nanoscale materials into the components of batteries, capacitors, and supercapacitors. Their shape and atomic structure can speed the flow of electrons — the heartbeat of electrical energy. Their enhanced surface area provides more resting places for the charged particles. The effectiveness of nanomaterials allows scientists to rethink the basic design of batteries.

U.S.

CHINA

Washington State Ferries, which runs the second-largest ferry system in the world, is switching from diesel to batteries amid a growing trend toward electrification in shipping. The move would cut the cost and pollution caused by the current annual consumption of almost 20 million gallons of diesel across a fleet of 22 vessels ferrying 25 million people a year. Washington State Ferries had looked at using hybrid or liquefied natural gas-powered vessels as far back as around 2012, but found the technology wasn’t mature enough. Now, improvements in battery technology coming out of the automotive sector are prompting a second look.

China has been one of the driving forces behind energy efficiency gains in E4 countries, representing 80% of the efficiency gains between 2000 to 2017 across the six economies. It can keep its leading role between today and 2040 representing 50% of potential savings under Efficient World Strategy. Without the energy efficiency improvements that have been made since 2000, China would have used 12% more energy in 2017. Moreover, the evolution of China’s economy away from energy intensive sectors – mainly in industry – and the development of its services sector, created structural changes that also helped diminish energy demand. Nearly 80% of these savings was due to the industry and service sectors where increases in output have more than quadrupled the gross value added since 2000. This has also had significant impacts beyond energy savings: GHG emissions of nearly 1.2 Gt CO2-eq, equivalent to almost half those of the U.S., were prevented, and 10% fewer fossil fuel imports were required by China’s economy.

WORLD’S SECOND-LARGEST FERRY SWITCHING TO BATTERIES

ENERGY EFFICIENCY IN CHINA

LACK OF A CALCULATION OF TRANSPORT DECARBONISATION COSTS The EU risks missing its target to decarbonise transport by 2030, as in the current draft plans of member states there is no cost-effectiveness calculation of the different proposed measures, a study has found. As part of the implementation of the new Renewable Energy Directive (RED II), EU member states are currently drafting 10-year National Energy and Climate Plans (NECPs). These plans describe the precise mixture of renewable energies set to be used to meet climate objectives in transport. The deadline to submit the plans is by the end of the year. According to the study, only three member states (Finland, Italy and Spain) have a robust transport decarbonisation plan while just seven (Czechia, Finland, France, Greece, Hungary, Italy and Slovenia) have considered all options “realistically”. In addition, a public consultation on NECPs took place in only nine countries.

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GIZ SERBIA

IMPROVED ENERGY EFFICIENCY

Of Schools And Pre-Schools

A ceremony in Belgrade in December has marked the completion of the GermanSerbian Development Cooperation project Energy Efficiency in Public Buildings, which was implemented with the support of the German Organization for International Cooperation GIZ, with the aim of improving the energy efficiency of buildings and reducing carbon dioxide emissions in schools and pre-schools in Serbia

he results achieved during the last four years were presented and the importance of investing in public sector energy efficiency was highlighted in the presence of representatives of the Embassy of the Federal Republic of Germany, the Ministry of Mining and Energy, the Ministry of Construction, Transport and Infrastructure, local governments, schools, pre-schools and partners on the project. The focus was on public sector building stock, which is seen as needing to be an example of good practice in this area. “The focus of our cooperation on this project was on the

building sector, which may be said to be the most demanding for implementing energy efficiency policies. The potential for savings in this sector is very high, as it consumes 40% of final energy, and potential savings can be up to 50%. The results of this project have made it possible to implement the Energy Efficiency Directive together with many educational activities, which we consider very important for further improvement in energy savings in the whole of society”, said Prof. Stevica Deđanski, PhD, State Secretary at the Ministry of Mining and Energy of the Republic of Serbia.

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In order to fulfil the obligations under the Energy Community Agreement for SEE and with the support of GIZ, the Ministry of Mining and Energy and the Ministry of Construction, Transport and Infrastructure have continued to work on a suitable regulatory framework. “The Ministry of Construction, Transport and Infrastructure is actively working to amend and improve the existing energy efficiency regulations for buildings, which will enable the calculation and certification of buildings based on all the energy they consume, i.e. energy for heating, cooling, air conditioning, ventilation, hot water and lighting, taking into account renewable energy sources. In order to improve these rules, a cost-optimization analysis was developed with the support of GIZ, with recommendations for minimum energy performance

academia and the non-governmental sector in further progress in order to achieve the goals of sustainable development in implementing reforms conducted by the government. These goals include achieving energy efficiency, upgrading infrastructure and energy technologies. Energy-efficient buildings are the driver of development in construction, and construction investment is a very important aspect of economic development”, explained Leoni Reimers, Head of Development Cooperation at the Embassy of the Federal Republic of Germany. The guests were also greeted by the Head of the project “Energy Efficiency in Public Buildings” Dr. Stefan Hajek. “GIZ believes that the subject of energy efficiency is key to achieving sustainable development. I would like to thank the Ministry of Mining and Energy, the Ministry of Construction, Transport and

of non-residential buildings. Also, in cooperation with GIZ, by preparing Terms of Reference, a precondition was created for the development of a Long-term strategy for encouraging investment in the reconstruction of the national building stock”, said Jelena Vukanović, Advisor at the Ministry of Construction, Transport and Infrastructure of the Republic of Serbia. In connection with this, the project has created typologies for both the National Schools and National Kindergartens, with a tool for estimating the cost of investing in energy efficiency measures in schools. Most school and pre-school buildings were built in the 1970s and 1980s and are an energy-inefficient part of the building stock. In view of the great potential for savings in schools and kindergartens, and the significant impact on carbon dioxide emissions and environmental protection, the German-Serbian Development Cooperation project was also focused on raising awareness through training and information campaigns in educational institutions. “Serbia has received a great deal of support from the German government on its path towards the EU over the last twenty years, and the country needs the assistance of citizens,

Infrastructure, local governments, academia, our partners and associates for their cooperation and dedicated work during this project.” During the project, priority lists were defined for the reconstruction of school facilities in the towns and municipalities with which GIZ signed memorandum of cooperation, namely: Priboj, Bajina Bašta, Apatin, Niš, Užice and Kraljevo. From 320 schools, 320 janitors, 177 headmasters and expert associates from 104 schools in 15 local government units were trained in energy efficiency for school and kindergarten staff. An Energy Efficiency Knowledge Platform was also established, the main holders of which are the Faculty of Architecture at the University of Belgrade as an academic leader in this field, and the Standing Conference of Towns and Municipalities, which supports capacity building of local government units. The project “Energy efficiency in public buildings” was implemented from October 2015 to December 2019 in partnership with the Ministry of Mining and Energy of the Government of the Republic of Serbia, in cooperation with the Ministry of Construction, Transport and Infrastructure. 13

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BUSINESS

EPS IMPROVES CAPACITIES

EPS INVESTMENTS

In Modern Energy

The major investment cycle of electric utility power company EPS (Electric Power Industry of Serbia) is continuing with increasing intensity throughout Serbia, with the aim of modernising all parts of the system and improving operations

he wheel of investment has been untethered over the last three and a half years, due to a lot of effort being exerted by the management and experts of EPS to relaunch inherited projects that were stuck in a deadlock or lacked proper documentation and permits. EPS is thereby fulfilling its obligation to preserve and modernise constructed capacities, but also to secure Serbia’s energy security with the building of new capacities. Among the most significant projects is the construction of a new unit with power of 350 MW in Kostolac, costing 613 million U.S. dollars. After a break of almost three decades, EPS is building a modern, efficient unit that will satisfy all domestic and European environmental standards. The huge work on the construction of the Kostolac B3 unit has been divided into 14 phases and is progressing well in cooperation with Chinese partners. A significant share of this investment cycle is dedicated to projects for increasing the use of renewable energy sources. Among them, the largest new capacity belongs to a 66 megawatt wind farm that is set to be built in Kostolac. This project, which was inherited without a single permit, is now in the phase of selecting a works contractor according to international criteria. The project has a value of around 100 million euros and will see a total of 20 wind turbines erected on the closed mining pits and landfill sites of the branch of TE-KO Kostolac. The project is expected to result in annual production of around 150 million kilowatt-hours of electricity, which is enough to supply about 30,000 households. The largest hydroelectric power plant in Serbia, HPP Đerdap 1, will have its power output increased by about 10 per cent and its service life extended by 40 years through the revitalising of generators. The commissioning of the renewed A2 generator unit in the second half of November 2019 marked the completion of the fifth phase of revitalisation and resulted in a 30MW increase in power output. The final,

sixth phase of revitalisation will follow in 2020, after which HPP Đerdap will have a total power output 180 MW more than before the project. According to plans, the restoration of Đerdap’s first hydroelectric power plant will be followed by the revitalisation of all 10 generators of HPP Đerdap 2, with which will EPS will gain 50 new megawatts of power for generating electricity on the Danube. Within the scope of investments totalling around 63 million euros, the final renovation works are underway on the renewal of the last generator unit in the revitalisation of HPP Zvornik. With the completion of these works, HPP Zvornik’s power out will reach 125.6 MW, marking an increase of 30 per cent. Complete technical documentation has also been prepared for the revitalisations of HPP Bistrica, HPP Vlasinska, HPP Potpeć and HPP Bajina Bašta. EPS is investing around 33 million euros in the reconstruction of 13 existing small hydro power plants and the construction of two new ones on existing dams. This reconstruction project also encompasses the oldest small hydro power plants in Serbia, some of which have existed for more than a century and represent parts of the country’s valuable industrial heritage. EPS has years of development ahead of it, during which it will continue the implementation of large investment projects that have already commenced, while new ones will also be launched in order to secure the future of the company and the development of the Serbian economy. THE ENVIRONMENT COMES FIRST Every EPS investment project encompasses measures for improving environmental protection, as part of the company’s responsible and sustainable operations. EPS has to date invested around 400 million euros in projects that improve the quality of air, water and land, thereby taking a leadership position in Serbia.

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DEJAN MARKOVIĆ, GENERAL MANAGER, SCHNEIDER ELECTRIC D.O.O. (LTD.)

BUSINESS

GREEN IS GOOD

For Business Focusing on environmental initiatives leads to growth and savings

chneider Electric has decided to set an example for many of the world’s companies and dedicate its work to saving the future of our planet. But it is not just another empty pledge aimed at promoting the company – it is in fact a sound business decision, says Dejan Marković, General Manager of Schneider Electric for Serbia and Montenegro.

the importance of those changes and, as a result, we have sound economic reasons for decarbonising. Companies that follow green policies in more developed countries can boost customer loyalty and brand image, attract top employees, reduce operating costs and increase shareholder value. The latest World Economic Forum (WEF) research reveals that companies which focus on environmental initiatives have been growing by an annual rate of 15%. Additionally, based on nearly 80,000 emission-reducing projects reported by 190 Fortune companies in 2016, almost $3.7 billion was returned in savings. That is one reason why mitigating climate change is an increasingly important corporate strategy.

What will be the milestones you tend to reach in the future and what will change in your agenda in line with the new direction of business development? - Schneider Electric is set to take three new actions in the years to come – we will accelerate the 2030 goal of carbon neutrality in its extended ecosystem by five years to 2025, How much can a company save through digitalisation set net-zero operational emissions by 2030 as part of valiand usage of our solutions? dated Sustainability target, and achieve a net-zero supply - We offer our clients a unique opporchain by 2050. We have to keep in mind tunity to be more profitable in the long that every 0.5 ˚C rise in temperature In Finland, merchandising increases the risk of extreme and lifechain Lidl runs on 100 per cent run. Results from Schneider Electric customers indicate that these savthreatening weather patterns, water shortages, coastal floods and other renewable energy through a new ings can be substantial — up to 50% harmful environmental effects. By distribution centre that draws reductions in investment costs, with an 2030, global net human-caused emison IoT-enabled microgrid and average savings of 23%. At Schneider, we have more than 80 Smart Factosions of carbon dioxide (CO2) would need to fall by about 45% from 2010 building solutions from Schneider ries which have been built or refitted to achieve efficiency gains for our levels, reaching “net zero” by around Electric. This is the largest supply chain. We’ve seen a 15% reduc2050. That means that we need to make totally renewable industrial tion in energy consumption through transitions in land, energy, industry, microgrid in Finland, which in- power, automation, and software, buildings, transport, and cities. cludes an advanced building au- thanks to the implementation of our The cost of such profound change tomation system and covers an own EcoStruxure™-backed solutions. These are improvements all industrial must be extremely high? area equivalent to the size of companies could make to save money - The cost of not doing that will be much and the future of our planet. higher. The world economy recognises 10 football pitches 15

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GREEN CHINA

FIRST NUCLEAR COGENERATION PROJECT LAUNCHED China has started up its first commercial nuclear cogeneration system, using two newly operational AP1000 reactors at the Haiyang Nuclear Power Plant to heat 700,000 square meters of housing. The Haiyang project is important for two reasons: It leverages energy from newly constructed third-generation

reactors—some of the first AP1000s completed to date; and its success will serve as a blueprint for nuclear energy diversification and a “clean” heat expansion in China, which has 45.6 GW of installed nuclear capacity and has another 11 GW under construction. The project is providing heat to the nuclear plant’s employee dormitory and some residential areas in Haiyang, a coastal city in Shandong province, eastern China, that has a population of about 658,000. No timeline is provided, but SDNPC says a later stage will involve modifications to Units 1 and 2 to expand the heating capacity to 30 million square meters.

SPAIN

INVESTING IN SHARED POWER GENERATION RENEWABLE ENERGY SCHEMES

WIND TURBINE

PRICES TO RECOVER 5% IN NEXT 2 YEARS After several years of steady decline in onshore wind turbine prices globally, projects which are expected to be completed in 2021-2022 are set to drive some modest price increases into the global market. The global market has seen a weighted average 6.41% per year reduction in prices over the past five-year period, but IntelStor’s Wind Turbine Price Index indicates the weighted average wind turbine price will increase 1.7% in 2020 to €1 mllion per MW and another 3.15% in 2021. There is potential for another increase of 10% leading towards 2022, but many projects scheduled for completion that year have yet to be confirmed and reach their final investment decision (FID).

UKRAINE

POWER GENERATION SURGES 83% Ukrainian renewables company DTEK RES reported a 83.3% year-onyear increase in green power produced in the nine months to September to THE PRYMORSKA WIND 874.8 GWh. FARM IN UKRAINE The strong performance was a result of the commissioning of two new solar and three new wind farms in the period. These include the 200-MW Nikopolska Solar Farm, the 200-MW Prymorska Wind Farm and the 240-MW Pokrovska Solar Farm. Meanwhile, the company said it has completed the environmental assessment for its 565-MW Tylihulska Wind Farm project located in the Mykolaiv region and is expected to produce about 2,000 GWh a year, saving over 2 million tonnes of carbon dioxide (CO2) emissions. The new smaller projects are planned for 2020-2022.

ESTONIA

GRID OPERATORS LOOK TO POOL EUROPEAN ENERGY DATA

Spanish non-profit cooperative Som Energia SCCL held the opening in December, at its 1.5-MW La Florida solar photovoltaic (PV) park, a project it financed through voluntary contributions from more than 1,600 members. Two years ago, the group raised €5 million through a crowdfunded share issue and invested €1.025 million. The remaining sum was distributed between the 2-MW La Matallana PV park, in operation since September 2018, and the 841-kW Tahal scheme, which is still awaiting connection. La Florida has been operating since early November, generating enough electricity to power up some 1,000 households. 16

Integration of the fragmented retail and services markets is necessary for Europe to achieve its energy and climate goals. If the market is integrated, energy retail, efficiency and flexibility solutions would be easily spread across Europe. The energy data alliance initiative, led by Estonian electricity and gas system operator Elering, has the potential to help integrate the retail market in practice if it proves successful. With the energy data integrated, energy companies will be able to access it and operate in any country in Europe. In addition to Elering, the letter of intent was signed by Red Electrica de Espana from Spain, Reseau de Transport d’Electricite from France, PSE from Poland, Fingrid from Finland, Denmark’s Energinet, TenneT from the Netherlands and ESO from Lithuania.

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STORING, NOT WASTING, EXCESS RENEWABLE ENERGY Colorado and California are already using technology that converts renewable energy into storable gas, and Maine hopes to be next. The technology could save Maine 75,000 megawatt hours of renewable power each year. Maine,US could be a prime location for a pilot project that converts surplus electricity from wind farms and other renewable generators into a gas that can be stored in underground pipelines. Plants that demonstrate these technologies are running in Colorado, and in California, which already produces more solar power than its grid can handle. And in Europe, where electricity is more expensive, plants like this are starting to be built at commercial scale. “The conclusion they came to,” Adams said, “is that this technology is where solar was in 2005 or so. The cost is starting to come down, the technology is becoming commercial, and its role in the energy mix is becoming clearer,” said Kurt Adams, president and chief executive at Summit Natural Gas.

WORLD

US - BIOMASS

The International Energy Agency (IEA) suggests that if countries pursue currently stated policies, the combined generation share of wind and solar photovoltaic could surge from 7% today to 24% in 2040. This very steep ramp-up of variable renewables will undoubtedly require an emphatic focus on flexibility—the ability of power systems to respond in a timely way to changes in electricity supply and demand. So far, flexibility has mostly been maintained by conventional sources, including thermal and hydropower plants. Retrofitted coal plants, new gas turbine plants, and hydropower plants will continue to provide the bulk of the world’s flexibility through 2040, but batteries, demand response, and sector coupling are also poised to play pivotal roles in future systems. “Sustainable Development” scenario (SDS) is fully aligned with the Paris Agreement and has an objective of “holding the increase in the global average temperature to well below 2°C above preindustrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels. Source: IEA, World

The holidays are upon us. In the United States, most Americans will sit down to a feast with friends and family and immediately following that celebration, Christmas and Hanukah lights will begin to dot houses across the counKOMPOGAS PLANT IN SAN LUIS try in anticipation of December festivities. In Europe, the holiday season begins on November 1. The one-and-only food waste-to-energy plant in the U.S. is called the Kompogas plant located in San Luis Obispo, California. The plant can process up to 36,500t of green waste and biowaste per year to generate around 2,900,000 Nm3 of biogas and ca. 20,100t of high-grade compost and another 1,700t of liquid fertiliser per year. The biogas is converted into electricity, delivering more than 6 million kilowatt-hours (kWh) per year, according to the company. That’s equivalent to the electricity consumption of about 600 U.S. homes. By 2030, according to the WBA, there needs to be at least 1 million large scale waste-toenergy facilities, plus millions of small-scale digesters, to achieve the emissions reductions targets. The sector will need to invest some $5 trillion to design, build and operate those plants.

THE NEED FOR POWER FLEXIBILITY

Energy Outlook, 2019 edition

INVESTMENT OF $5 TRILLION

JAPAN

NEW BIOMASS PLANTS Japanese renewable energy firm SB Energy Corp announced it will build, together with Marubeni Corp and Chubu Electric Power Co Inc, a 50-MW biomass power plant in Aichi prefecture. The Aichi Gamagori Biomass Power Plant will be based in Gamagori city. It will use wood pellets and palm coconut shells as fuel, the unit of Japanese conglomerate SoftBank Group Corp (TYO:9984) said. Construction is scheduled to start in April 2021 and operation is planned to commence in August 2023. Aichi Gamagori would BIOMASS POWER PLANTS IN JAPAN generate some 340 million kWh of clean energy per year, enough to meet the demand of 110,000 local homes. Currently, the scheme is being developed through Aichi Gamagori Biomass Power Generation LLC, a joint venture (JV) formed between the three project partners. Chubu and Marubeni each control 48.5%, with SB holding the remaining 3%.

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INTERVIEW

MILOŠ BANJAC, PH.D. ME, ASSISTANT MINISTER, DEPARTMENT FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY

LED BULBS SAVE

Up To 80% Of Energy Regulations governing the labelling of classifications of energy efficiency have the aim of informing customers on consumption and drawing attention to the fact that purchasing efficient appliances pays off

oney from all taxpayers is invested in the Energy Efficiency Fund, through payments of bills for electricity, gas and fuel. The aim is to provide money that will help citizens reduce their energy consumption. Savings of more than 80 per cent are achieved just by replacing classic lights bulbs with LED bulbs, says Assistant Energy Minister Miloš Banjac It was three years ago that the Ministry of Energy published the Rulebook on Minimum Criteria for Energy Efficiency in Public Procurement Processes. What does it encompass and what does it prescribe; to whom does it all apply? - The Rulebook in question relates to public procurements that are carried out by public enterprises, state administration and local governments. Providing the basis for the Rulebook is the Law on Energy Efficiency, and the point is

for the public sector to set a good example in society when it comes to creating conditions for improving energy efficiency and reducing energy consumption. You’ve stated repeatedly that the public sector should serve as an example of efficient energy use. Do the law and rulebook provide the legal basis for harmonisation with European directives and how close have we come to satisfying EU regulations when it comes to energy efficiency? - The Rulebook is just one of the acts through which we are harmonising with EU regulations and which can be said to have been harmonised to a certain extent. With it we regulate the minimum criteria for devices in terms of energy consumption that must be met in order for a device to qualify as being efficient and as being subject to public procurement. With this we essentially prescribe the obliga-

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tion for the public sector to improve energy efficiency and reduce energy consumption. The Rulebook was created as a result of the work of the Ministry of Energy and the expert team from the EBRD’s Regional Energy Efficiency Programme (REEP). Is it true that energy efficiency labelling has also been regulated for refrigerators, air conditioners and lighting? - There is an obligation to label the appliances that you mention, as well as another seven types of products (washing machines, dishwashers, televisions, ovens and extractor fan hoods, tumble dryers, water heaters and space heaters). The regulations that govern the labelling of classifications of energy efficiency are intended to inform customers about the energy consumption of a device, to give them the opportunity to view the category in which a device is classified in terms of energy consumption and to generally draw the attention of customers to the fact that purchasing efficient appliances pays off . It is also common knowledge that incandescent lightbulbs that consumed five times as much energy as neon lamps, and as much as 10 times more than LED bulbs, were consigned to history precisely due to them not being energy efficient. - According to our estimates, replacing a classic bulb with an LED one results in savings of more than 80 per cent. According to the statistics of a survey conducted in 2014, about five per cent of total household energy use (including heating, cooling and household appliances) goes on lighting. According to the same survey, about 10 per cent of the total number of household light bulbs were efficient. Replacing bulbs with efficient LED bulbs at the household level alone achieves savings of four per cent in total energy consumption. In order to achieve such savings, it is not only necessary to make adequate replacements, but rather habits regarding the use of lighting should remain the same or be improved. It shouldn’t happen that the purchase of a more efficient light bulb results in lighting being used much more when that’s unnecessary. It is also important to emphasise here that this replacement is also very cost-effective in terms of product life, with new LED bulbs having a lifespan that’s more than 15 times longer than conventional bulbs (provided they are used properly, of course).

When it comes to the Energy Efficiency Fund, which will be financed with money from a fee charged on every litre of fuel sold, every cubic metre of gas used and every kilowatt of electricity consumed, does that mean that a budget fund will exist in parallel with that, or is that set to be abolished? - The fee that’s collected is revenue for the budget of the Republic of Serbia. Following the establishment of the Energy Efficiency Fund, this revenue will be redirected towards that fund and the budget fund will cease operating. With the amendment

to the rulebook in early 2019, as many as three new mechanisms were introduced that enable citizens to increase energy efficiency, which are covered by grants and vouchers. The implementation of these mechanisms will be enabled by the establishment of the Energy Efficiency Fund.

Only about 10 per cent of the total number of household light bulbs are efficient

When it comes to the budget fund, it remains unclear whether it is intended only for citizens or also for the economy. Will citizens be able to obtain favourable loans or grants from this fund for the implementation of energy efficiency measures? - According to the Law on Energy Efficiency, the financial resources of the budget fund can be utilised by private individuals and legal entities from Serbia. When it comes to legal entities, to date the resources of the fund have only co-financed local self-government units, while a mechanism for stimulating the economy has yet to be developed. As a first step, it is expected that subsidised energy reviews will be secured for the economy once the regulations governing these reviews have been adopted. 19

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BUSINESS

DRAGOLJUB ZBILJIĆ, PRESIDENT OF COMPANY ENERGOTEHNIKA – JUŽNA BAČKA

BUSINESSMEN

Are Obliged To Employ It is an obligation of every business leader in Serbia to employ the Serbian workforce

he business philosophy that the value of a company is comprised of its personnel, that there is no business without the creation of new value, and especially that the absence of dynamic expansion and constant seeking of new work results in deadlock and setbacks, has guided Dragoljub Zbiljić, president of company ‘Energotehnika – Južna Bačka’ (EJB) in all of his business activities - positioning EJB as one of Serbia’s most successful companies.

To what extent has the company that you head changed over the last year? - If we were to compare the situation at EJB over the last 12 months, the company’s strength and our capabilities have – without exaggeration – advanced in every respect. We’re entering new spheres of business in the energy sector, and it’s with great enthusiasm that we are awaiting works for Serbian Railways, because it is clear that – apart from the works on the Belgrade-Budapest railway – it is also necessary to renew the network in other vital directions. Electrification is our speciality, and in that area we have no competition, thus it is to be expected that EJB will also be engaged in these works. We have formed a new sector called “Eko Južna Bačka” [Eco South Bačka], which is dealing with preparing our participation in all tenders related to the environment – from water treatment to other installations in that area. We are following a cycle of public investment that will become increasingly substantial, due – among other things – to the commitments to the EU that we have taken on as a country.

run the risk of stagnating and disappearing. That is the harsh logic of capital and business operations. If you want to survive, you must expand your business. The state is the largest investor at present, though we are also quite heavily engaged in works that are led by a significant number of foreign investors. We are currently fighting to get a job for Chinese company Linglong, and it would be really impressive for us to work for them. This relates to the tyre factory in Zrenjanin that is also among the biggest investments in Serbia, worth 800 million euros. We closely monitor every business opportunity that emerges on the Serbian market. How would you assess the work of the Government of Serbia and the head of state when it comes to improving the business climate and initiating economic potential? - The state leadership, led by Aleksandar Vučić, is more than partially taking all the necessary steps, and here I’m not only referring to the regular agenda of the European Union. Growth of four per cent, which is also rare among EU countries, shows that a capable and responsible leader – the likes of which we’ve unfortunately lacked many of in our past – can initiate economic development in Serbia in all fields.

It’s with great enthusiasm that we are awaiting works for Serbian Railways, because it is clear that – apart from the works on the Belgrade-Budapest railway – it is also necessary to renew the Your Company has clearly announced its innetwork in other vital directions tentions and plans to participate in foreign

EJB doesn’t satisfy itself with its previous achievements and constantly persists with new challenges and business prospects? - One of the most important rules of contemporary business is that if you stop even for an instant, lulled into an acquired position, you 20

markets on multiple occasions. - Given that the Serbian market has “exploded”, we’ve slightly delayed our expansion beyond the home market. We were practically fully occupied with our participation in a large number of domestic investments. I am also delighted to see that our competition is also engaged in many projects. The large number of tenders we participate in limits us when it comes to stepping boldly onto foreign markets, especially the Russian one, where we believe we can prove successful. That’s why we’re focused on our neighbourhood and the former Yugoslav republics.

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DUŠAN DURKOVIĆ, COUNTRY MANAGER FOR SERBIA & EXPORT, GRUNDFOS

BUSINESS

SUSTAINABILITY Is Our Essence Grundfos invests major funds each year in research and development of new products, which are then, one by one, thoroughly tested and just then released on the market, because our customers confidence has been a priority for years

drives, control units and units for protection, measurement and communication? - Innovation is what Grundfos is and what ensures that we are different. We understand the needs of the market and we meet these needs. Under the name “Grundfos iSOLUTIONS” is everything that’s essential for the optimal system functioning, including pump system control, monitoring, data transfer, communication, control and diagnostics. Growing digitalisation is setting the requirements that we are responding to successfully and implementing new technological solutions, Without your products we can’t imagine life in villages with so that our pumps can be monitored in remote locations via a few dozen households or in big cities, because Grundfos GSM, GPRS and the internet. We have pumps are inevitable wherever water needs to be “managed”. What are the An unbelievable statistic is that a successfully tested a pump that orders applications in which they can be used? fifth of worlds electricity is used to its own spare parts for replacement. These kinds of digital solutions reduce - In Grundfos long-term strategy, we run pumps and that replacing of operating costs and downtime, but are dedicated to address the challenges linked to climate changes and existing pumps and implementing Grundfos additionally offers various drinking water shortages worldwide. energy efficient solutions, that service solutions to clients with the aim of providing preventative and urgent Our worldwide presence, as well as we can offer, could save almost maintenance. our knowhow in different applications, certainly represents great experience, 5% of the total consumption of Preparations for the start of producbut also an obligation for our products electricity worldwide tion in Serbia began 10 years ago, when to function flawlessly. We also want Grundfos purchased construction land in Inđija, and the facto create future development trends to meet our strategic tory opened in December 2012. Four groups of products are commitment to energy efficiency and sustainable use of currently produced there. Are they intended exclusively for water resources. Grundfos pumps secure drinking water the domestic market, or is part of production exported? for households, regional water supplies, hot radiators in - We are very proud of our factory, which is one of the most residential buildings and households; they are the best option modern, while four groups of pumps imply around a hundred for flood protection and extremely essential for irrigation different products and over 4.2 million produced pieces, out applications. Highly indispensable in sewage systems, and of which 220 million euros is exported, which ranks us as the furthermore used to heat and cool airports and shopping country’s 8th largest exporter. Over 60 million euros has centres, they are part of industry processes, and they are been invested to date, while the latest investment is Biothe heart of fire protection systems etc. booster – a facility that fully treats wastewater to the level of drinking water, in accordance with our ambition regarding Do you deal only with individual components or do you have the sustainable use of water resources. solutions for complete systems that encompass pumps, he challenges presented to us by the modern way of doing business, as well as ambitions in terms of environmental protection, require that socially responsible companies have a new approach to doing business and new business solutions. We don’t see this as a problem, because innovation and sustainability are part of our DNA ~ says Dušan Durković, Grundfos Country Manager for Serbia & Export.

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ENERGY

What Are

DIFFERENT SOURCES OF ENERGY?

There are 10 main different sources of energy that are used in the world to generate power. While there are other sources being discovered all the time, none of them has reached the stage where they can be used to provide the power to help modern life go

ll of these different sources of energy are used primarily to produce electricity. The world runs on a series of electrical reactions – whether you are talking about the car you are driving or the light you are turning on. All of these different sources of energy add to the store of electrical power that is then sent out to different locations via high powered lines. Here is an overview of each of the different sources of energy that are in use, and what’s the potential issue for each of them. 1. SOLAR ENERGY Solar power harvests the energy of the sun through using collector panels to create conditions that can then be turned into a kind of power. Large solar panel fields are often used in desert to gather enough power to charge small substations, and many homes use solar systems to provide for hot water, cooling and supplement their electricity. The issue with solar is that while there is plentiful amounts of sun available, only certain geographical ranges of the world get enough of the direct power of the sun for long enough to generate usable power from this source.

2. WIND ENERGY Wind power is becoming more and more common. The new innovations that are allowing wind farms to appear are making them a more common sight. By using large turbines to take available wind as the power to turn, the turbine can then turn a generator to produce electricity. While this seemed like an ideal solution to many, the reality of the wind farms is starting to reveal an unforeseen ecological impact that may not make it an ideal choice. 3. GEOTHERMAL ENERGY Geothermal energy is the energy that is produced from beneath the earth. It is clean, sustainable and environment friendly. High temperatures are produced continuously inside the earth’s crust by the slow delay of radioactive particles. Hot rocks present below the earth heats up the water that produces steam. The steam is then captured that helps to move turbines. The rotating turbines then power the generators. Geothermal energy can be used by a residential unit or on a large scale by a industrial application. It was used during ancient times for bathing and space heating. The biggest disadvantage with geothermal energy is that it can only be

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produced at selected sites throughout the world. The largest group of geothermal power plants in the world is located at The Geysers, a geothermal field in California, United States. 4. HYDROGEN ENERGY Hydrogen is available with water (H2O) and is most common element available on earth. Water contains two-thirds of hydrogen and can be found in combination with other elements. Once it is separated, it can be used as a fuel for generating electricity. Hydrogen is a tremendous source of energy and can be used as a source of fuel to power ships, vehicles, homes, industries and rockets. It is completely renewable, can be produced on demand and does not leave any toxic emissions in the atmosphere. 5. TIDAL ENERGY Tidal energy uses rise and fall of tides to convert kinetic energy of incoming and outgoing tides into electrical energy. The generation of energy through tidal power is mostly prevalent in coastal areas. Huge investment and limited availability of sites are few of the drawbacks of tidal energy. When there is increased height of water levels in the ocean, tides are produced which rush back and forth in the ocean. Tidal energy is one of the renewable source of energy and produce large energy even when the tides are at low speed. 6. WAVE ENERGY Wave energy is produced from the waves that are produced in the oceans. Wave energy is renewable, environment friendly and causes no harm to atmosphere. It can be harnessed along coastal regions of many countries and can help a country to reduce its dependance on foreign countries for fuel. Producing wave energy can damage marine ecosystem and can also be a source of disturbance to private and commercial vessels. It is highly dependent on wavelength and can also be a source of visual and noise pollution. 7. HYDROELECTRIC ENERGY What many people are not aware of is that most of the cities and towns in the world rely on hydropower, and have for the past century. Every time you see a major dam, it is providing hydropower to an electrical station somewhere. The power of the water is used to turn generators to produce the electricity that is then used. The problems faced with hydropower right now have to do with the aging of the dams. Many of them need major restoration work to remain functional and safe, and that costs enormous sums of money. The drain on the world’s drinkable water supply is also causing issues as townships may wind up needing to consume the water that provides them power too. 8. BIOMASS ENERGY Biomass energy is produced from organic material and is commonly used throughout the world. Chlorophyll present in

plants captures the sun’s energy by converting carbon dioxide from the air and water from the ground into carbohydrates through the process of photosynthesis. When the plants are burned, the water and carbon dioxide is again released back into the atmosphere. Biomass generally include crops, plants, trees, yard clippings, wood chips and animal wastes. Biomass energy is used for heating and cooking in homes and as a fuel in industrial production. This type of energy produces large amount of carbon dioxide into the atmosphere.

9. NUCLEAR POWER While nuclear power remains a great subject of debate as to how safe it is to use, and whether or not it is really energy efficient when you take into account the waste it produces – the fact is it remains one of the major renewable sources of energy available to the world. The energy is created through a specific nuclear reaction, which is then collected and used to power generators. While almost every country has nuclear generators, there are moratoriums on their use or construction as scientists try to resolve safety and disposal issues for waste. 10. FOSSIL FUELS (COAL, OIL AND NATURAL GAS) When most people talk about the different sources of energy they list natural gas, coal and oil as the options – these are all considered to be just one source of energy from fossil fuels. Fossil fuels provide the power for most of the world, primarily using coal and oil. Oil is converted into many products, the most used of which is gasoline. Natural gas is starting to become more common, but is used mostly for heating applications although there are more and more natural gas powered vehicles appearing on the streets. The issue with fossil fuels is twofold. To get to the fossil fuel and convert it to use there has to be a heavy destruction and pollution of the environment. The fossil fuel reserves are also limited, expecting to last only another 100 years given are basic rate of consumption. It isn’t easy to determine which of these different sources of energy is best to use. All of them have their good and bad points. While advocates of each power type tout theirs as the best, the truth is that they are all flawed. What needs to happen is a concerted effort to change how we consume energy and to create a balance between which of these sources we draw from. 23

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BUSINESS

DRAGAN AZDEJKOVIĆ, CEO, PUBLIC UTILITY COMPANY TOPLANA, KRUŠEVAC

FINALLY

– All Boilers Working Following frequent interruptions in heating last year due to worn-out system components, Toplana received four million euros from the Government of Serbia for the reconstruction of four boilers, so now the problem is solved

or the first time, the people of Kruševac have gas heating, which has many good aspects, but we are not giving up on coal either. The Toplana management does not want to depend on imported energy, which must be paid immediately.

7,000 apartments and almost all municipal institutions and establishments, and I think there is no reason for anyone to complain about the price of heating. For example, heating a 50 square meter apartment costs 4,200 dinars without VAT. In our municipality we charge for most of the heating by the square meter, and a smaller amount by consumption in order to give citizens enough time to invest money in the replacement of facades, in additional insulation, to change the windows. There is a huge difference in the cost of heating buildings that are energy efficient and buildings that are 30-40 years old, and there are many in our city. We hope that in the coming period the Municipality will find a way to help the housing communities to apply for funds intended to improve energy efficiency.

Toplana had problems until this winter in delivering heat to consumers, but you rebuilt the boilers before the beginning of the heating season. What is the situation now? - The heating season started on time and all our customers have warm radiators. We have completed the reconstruction of both gas boilers, which have not worked since 2006 when they were purchased, and one coal boiler. Parts for the reconstruction of the second coal boiler have also arrived. When all boilers start running at full capacity, we will have more As you promised before the start of the than 90 megawatts of energy, which is season, you did not change the price of sufficient not only for existing, but also When the reconstruction heating. What energy sources do you for new customers. I must emphasize of the fourth boiler is complete, use? Is coal cheaper or more expensive that we could not have completed this great work without the assistance of the the heating plant will have more than gas and what is the collection rate? Government of the Republic of Serbia, than 90 megawatts of installed - The price of heating has not changed for five years and I think it is among which, after the arrival of President Alekpower, which is sufficient the lowest, if not the lowest in Serbia. sandar Vucic, allocated four million euros for future users Despite this, we have a problem with from the budget for these purposes. outstanding claims, but the situation A combined operation of coal and gas is slowly improving. We are lacking about 140 million dinars boilers achieves stability in the supply of thermal energy and from households and we are constantly calling on debtors for considerable savings, while reducing environmental pollution. an agreement. We offer them reprogramming and payment in installments, because that is better and cheaper both for The city’s heating plant has more than 8,500 users, but us and for them than paying through an executor. The rate of supplies 5,000 consumers. What about the others? Do you collection is far higher in buildings that have built-in meters charge for heating per square metre or by consumption? because we can cut off individual debtors in them, which is - The number of our users has already exceeded 9,000, not feasible in old buildings. The monthly collection of claims because as many as 90 percent of investors have signed a is currently 75 percent, and with the debts that the citizens contract for the connection of new facilities to the Toplana are paying, we get as much as 100 percent of the collection. system with its central heat source. We are currently heating 24

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LIDIJA CAREVIĆ, COORDINATOR OF THE BIOGAS ASSOCIATION OF SERBIA

BUSINESS

BIOGAS

- Energy of the Future

The basic mission of the Biogas Association is to encourage the production and use of energy that is environmentally friendly. The Association actively advocates for both the production and use of biogas for energy production, and for the most efficient use of energy

he Biogas Association of Serbia was established in March 2012 with the aim of developing and encouraging the production of electricity from biogas. A non-governmental and not-for-profit association that today brings together around 40 members that own 14 biogas power plants, but also other institutions and companies that are directly or indirectly associated with this technology, or which plan to build biogas plants. The Biogas Association is an active partner of the German association Fachverband Biogas e.V., with which it signed a partnership agreement in June 2019, and also a member of the European Biogas Association - EBA.

What are the benefits of producing energy from biogas? - Although generating electricity is the primary objective and purpose of biogas power plants, their positive environmental impact is no less significant. Biogas power plants solve many environmental problems by taking care of biological and organic waste in an environmentally efficient manner, in which that waste receives new economic value, both in the form of electricity and heating energy, and in the form of organic fertiliser. Biogas power plants shouldn’t only be seen as producers of electricity, because their role is much greater.

How does the use of biogas contribute to increasing energy efficiency? How is the current situation in Serbia’s biogas sector? - Given that biogas technology enables the storage of energy - A lot has been achieved in a short period of time in the in the form of biogas and electricity probiogas sector in Serbia and a favourable business climate has been created for Biogas power plants solve many duction on-demand, biogas is the perfect solution for situations where electricity investors. With the advocacy of the environmental problems generation is decentralised. Additionally, Biogas Association and the support of by taking care of biological biogas production increases the security the Ministry of Mining and Energy of the of the energy supply while simultaneously Republic of Serbia, which is dedicated to and organic waste in an reducing dependence on imported energy. meeting the goals of the energy commuenvironmentally efficient way, When it comes to the problem of the nity, significant steps have been taken in which that waste receives excessive accumulation and disposal of towards strengthening and stabilising the biogas sector. new economic value, both in the organic waste, it is exceptionally important to emphasise that biogas power In its activities to date, the Biogas form of electricity and heating plants not only deal with organic waste Association has proved to be a proacenergy, and in the form of effectively, but also the process of protive partner in the process of drafting ducing electricity at biogas plants yields new legislation in the field of renewable organic fertiliser high-quality organic fertiliser, which is energy sources, which resulted in the further used in agriculture and improves the quality of land adoption of new incentive tariffs for the repurchasing of itself and reduced the need to use artificial fertilisers. electricity. In cooperation with international institutions If we look at the bigger picture, it is also worth mentioning and organizations, the Association participates actively in the creation of jobs at biogas plants and increasing income projects and processes that are in the area of interest and in rural areas. support of members. 25

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BUSINESS

RADE MILEKIĆ, CO-OWNER OF ELEKTROVAT D.O.O. (LTD.) BELGRADE

WE FIGHT FOR

The Truth About SHPs Elektrovat is a local Serbian company that is commemorating three decades of successful operations and 10 years of continuous investment in the production of electricity from renewable sources. It has constructed two small hydro-power plants and one solar power plant, which enables them to contribute more than nine gigawatt hours of electricity to the system annually

What’s actually the truth about generating electricity from hydro potential and other renewables? - Electricity cannot be produced without consequences for the environment. That’s why we have to compromise and find a way to get as much electricity as we need and for that to have the least possible consequences for nature. In this sense, small hydro-power plants are certainly not enough, but they are the most acceptable part of the overall solution. The year that’s coming to a close has been marked by tumulCountries like Germany, Switzerland, Austria and Slovenia tuous public debates, clashes and incidents in villages where have used more than 90 per cent of their available hydro-power small hydro-power plants are being built. How do you view all potential for the construction of SHPs, but nobody there thinks of this? Where are the relevant authorities in this whole story? that the construction of hydroelectric power plants will ruin - The field of renewable energy is one of the few in which a rivers and lead to ecological catastrophe. If our country was strategy has been adopted at the national level and a whole ready to implement its energy development strategy and set of laws and by-laws governing its implementation has take care of environmental protection, there would be none been adopted. And instead of this field being improved and of this. Unscrupulous investors would be subjected to the implemented in a legal way, a fierce depenalties they deserved, government structive campaign of manipulating the Our institutions don’t protect officials would suffer the consequences truth is underway. A grain of truth is used if they violated the rules of service and acts that they have themselves ecological issues would not be raised in to develop a bombastic populist tale with vile and hidden objectives that are hidden the wrong way and in the wrong place. enacted, rather they leave to most of the public. The government “rebellious people” and the does not advertise itself, as though it’s What are your future plans for generating builders of small power plants electricity? ashamed of its energy development strategies, adopted laws and regulations. - We began dealing more seriously with to come to blows Implementing the construction of the use of renewable energy in 2008. The SHPs is, in practise, left to the mercy and mercilessness of current general atmosphere, which is created by the Government, local self-governments, public enterprises and inspection institutions and especially by public companies tasked with bodies who do not want to properly understand the strategy constructing SHPs, is unacceptably bad and chaotic, so investing of the state, or rather the importance of constructing SHPs for under such circumstances is extremely risky and unthinkable. the whole society, including themselves. They only see SHPs If conditions are fixed, we will continue activities in this area. as additional work, as the looting of the state’s resources by The aspect of rational consumption and reducing electricity individuals or interest groups, and something in which they do losses is actually also important to us, and is something we are not see themselves. That’s why most of them try to prevent the working on intensively. With the building and reconstructing of our construction of SHPs, or at least to make the work as difficult business facilities, we have proven to ourselves and others how as possible. And the Government remains silent on that. energy efficiency is an exact thing and what benefits it provides. he energy and money that have been meaninglessly wasted disputing the construction of small hydropower plants (SHPs) and additionally agitating the public could be utilised beneficially to promote the idea of energy efficiency through a positive campaign. The benefit would be disproportionately greater for all of us ~ Rade Milekić.

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MILAN KRUNIĆ, BOJAN TERZIĆ, CO-FOUNDERS, GAMASMART D.O.O.

BUSINESS

DIGITALIZATION IS REVOLUTIONIZING

The Renewable Energy Sector

GamaSmart is a young IT company that has succeeded, in a short period, in acquiring clients from Western European, including Denmark's Siemens Gamesa. It is currently working on a major project in the renewable energy sector with this company

he IT solutions that GamaSmart engineers work on are based on the collection, analysis and statistical processing of data with the aim of reducing costs and increasing the productivity of energy systems

will increasingly work for foreign markets? - Our current operations are based 100% on cooperation with foreign companies. The underdevelopment of the domestic market and lack of interest among leading energy companies led us to this situation. Insufficient investment in the R&D sector places domestic companies in the background. The IT solutions that we work on are based on the collection and AI processing of data with aim to accumulate knowledge of asset conditions, predict failures and increase productivity of renewable energy systems.We would like to establish cooperation with companies on the domestic market in the near future. Our desire is to utilise the knowledge we’ve acquired and to enable domestic companies to recognise the importance and take full advantage of the potential of their data.

GamaSmart is a young company that has quickly positioned itself on the IT services market and even established collaboration with Danish company Siemens Gamesa. How did that come about? - There is an entire array of companies on the market that are today providing various services in the IT sector, and we have distinguished ourselves among them due to our professionalism and consistency in the quality of the IT services we provide. This is precisely what the Danes, or company Siemens Gamesa, recognised during our collaboration. The IT solutions that we work Do you believe that objectives are most easily achieved through collaboration This collaboration came on the recon are based on the collection, and the sharing of knowledge and ommendation of a shared colleague who analysis and AI worked on a project at Siemens. Siemens experience, through the establishing Gamesa is a serious and large company partnerships with clients? processing of data with with more than 5,000 employees and - Exactly. We strive to learn something the aim of reducing costs, clearly defined procedures and standfrom every project we work on. The i.e. increasing the productivity knowhow that we’ve acquired by workards of quality. In order for our cooperation to endure, we had to harmonise our ing with Siemens Gamesa is invaluable, of energy systems way of working and procedures with the especially as it relates to a renewable standards of Siemens, which are at the EU level. energy project, and that - you will agree – is still a young After just a few months, Siemens Gamesa recognised branch of industry around the world. our complete commitment, professionalism and the quality Our work is characterised by a proactive approach. On of the services we provide, and duly doubled the number of the projects that we work on, we strive to actively enageg in people engaged on the project. After just a year, this number solving every problem, whether of a technical or a business tripled, so now more than 15 IT engineers from Serbia are nature. Our team comprising young and energetic engineers working on the project. who are ready to get to grips with the most challenging issues and to apply their knowhow in various sectors of information You have entered the energy sector – renewable energy, systems in energy. wind farms, electricity transmission – all of which is insufwww.gamasmart.io ficiently developed in our country. Does this mean that you info@gamasmart.io 27

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EUROPEAN ENVIRONMENT AGENCY

EU ENERGY EFFICIENCY Targets 2020

The Energy Efficiency Directive (EED) defines the EU energy efficiency target for 2020, which can be expressed in terms of either primary energy consumption or final energy consumption

eeting both targets will require a reduction in primary and final energy consumption by 20 % compared with levels projected for 2020 in the European Commission’s Energy Baseline Scenario. This analysis tracks progress towards the energy efficiency target by considering an indicative linear trajectory between primary energy consumption levels in 2005 and the 2020 target level, and by comparing the levels of primary energy consumption in the assessment year with this linear trajectory. The EU is considered to be on track towards meeting its 2020 target if its primary energy consumption is on or below its linear trajectory. Conversely, if the EU’s primary energy consumption level is above the linear trajectory, it will need

to reduce or limit its energy consumption at a faster pace to meet the 2020 objective. The EU target can also be expressed in terms of final energy consumption. While the EEA’s methodology to track progress focuses on primary energy consumption, developments concerning final energy consumption complement the analysis in relation to the 2020 target, but they do not count in the present assessment of progress. In 2015, the EU was on track to achieve its target of improving energy efficiency by 20 % by 2020. Recent statistics show, however, that both primary and final energy consumption levels have been increasing since 2014. According to preliminary estimates from the EEA, the

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EU’s primary and final energy consumption increased again in 2016 (by 1.0 % and 1.8 %, respectively, compared with 2015). This slight increase in energy consumption followed an observed modest boost in economic growth, while other factors may have also played a role, as discussed below. The EU’s 2020 target expressed in terms of primary energy consumption is equivalent to a 13.4 % reduction from 2005 levels. In 2015, the EU’s primary energy consumption was 10.7 % lower than in 2005, decreasing at an annual average rate of 1.07 %, slightly faster than the minimum rate required to achieve the 2020 target (0.9 % per year). In 2015, it was still below the indicative linear trajectory drawn between the actual consumption level in 2005 and the targeted level for 2020, although not by as much as in 2014 (see Figure 6.1). The preliminary EEA estimates show that, following a 1 % increase compared with 2015, the EU’s primary energy consumption in 2016 was above the indicative trajectory to 2020. This means that Member States will need to step up their efforts to keep the EU on track towards its 2020 targets. Early estimates from an analysis under development by the European Commission show that the overall decrease in primary energy consumption between 2005 and 2015 was driven largely by a decrease in primary energy intensity (which led to a 19 % decrease in primary energy) and improvements in the efficiency of energy transformation (leading to a 2 % drop in primary energy consumption). The EU’s 2020 target for final energy consumption corresponds to an 8.9 % reduction from 2005 levels. In 2015, final energy consumption in the EU was 1 084 Mtoe, 9 % less than 2005 levels, and 2 Mtoe below the 2020 target. This gap was significantly narrower than in 2014, when final energy consumption was 24 Mtoe below the 2020 target (see Figure 6.1). The decrease in final energy consumption between 2005 and 2015 was influenced by a number of factors, such as: ○ structural changes towards less energy-intensive industrial sectors;

○ improvements in end-use efficiency (especially in the residential sector); ○ lower energy consumption in the transport sector (although an increase in energy consumption has been observed in this sector since 2014); ○ the economic recession. Overall, final energy consumption results from a mix of various elements, and the energy savings throughout this period are partially offset by the effects of activity, demographics and lifestyles. Preliminary results from the analysis conducted by the European Commission in 2017 provide some further details on the reductions in final energy consumption in various sectors between 2005 and 2015: ○ Energy consumption in the commercial sector dropped by 11 %, due mainly to energy intensity gains and, to a lesser extent, structural shifts. Increased activity over the period (measured through the gross value added of products and services) led to an overall increase in final energy consumption, despite the economic recession between 2008 and 2012. All commercial sectors, except ‘wood, paper and construction’, achieved energy intensity improvements. ‘Transport equipment’, ‘textile and leather’, ‘metals and machinery’, ‘non-metallic minerals’ and ‘other manufacturing’ sectors stood out with the highest improvements. ○ Residential sector energy consumption dropped by 11 % (- 34 Mtoe) due to improvements in energy intensity. Warmer winters also contributed to lower energy demand for heating; ○ Energy consumption in the transport sector decreased by 2.8 % (- 10.6 Mtoe) due to structural changes and intensity improvements. These improvements were partially offset by higher activity (e.g. increase in transport demand) in recent years. The 2020 EU target represents energy savings of 20 % from levels projected for 2020 in the Commission’s Energy Baseline Scenario. The indicative 2030 energy efficiency target represents an improved energy efficiency of at least 30 % compared with 2030 projections in the same Energy Baseline Scenario.

The 2020 EU target represents energy savings of 20 % from levels projected for 2020 in the Commission’s Energy Baseline Scenario. The indicative 2030 energy efficiency target represents an improved energy efficiency of at least 30 % compared with 2030 projections in the same Energy Baseline Scenario

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more effort has to be made at Member No mechanism currently State level in implementing and further requires Member States developing current policy frameworks. to regularly report projections 2030 TARGETS of their energy consumption THE ON ENERGY EFFICIENCY levels in a scenario reflecting In November 2016, the European Comreleased the ‘Clean Energy for existing policies and measures. mission All Europeans’ package, also known as Assessing and aggregating to the ‘Winter Package’. It comprises legEU level the projected progress islative proposals on energy efficiency, renewable energy, electricity market of Member States towards design, security of electricity supply PROJECTED EU’S 2020 ENERGY EFFICIENCY TARGET their energy efficiency targets and governance aspects. One of its main is to ‘put energy efficiency first’, No mechanism currently requires based on currently reported goals which makes explicit the relevance of Member States to regularly report information is thus energy efficiency for the clean energy projections of their energy consumption transition. levels in a scenario reflecting existing not possible Therefore, assessment the target is expressed as a relative change compared to 2005 levels of EU primary energy consumption, to show the required reduction in primary energy consumption over time. The year 2005 was chosen because it is used as a base year for GHG (in the EU ETS and under the ESD) and for renewable energy targets. It also corresponds to a peak in energy consumption in the EU.

policies and measures. Assessing and aggregating to EU level the projected progress of Member States towards their energy efficiency targets based on currently reported information is thus not possible. Therefore, only an assessment based on past trends can be provided. The EU will achieve its 2020 target for energy efficiency expressed as primary and final energy consumption if the average annual decreases observed between 2005 and 2015 are maintained until 2020 for both. This, however, may prove to be challenging due to the effects of the observed economic recovery and the fact that the energy efficiency targets of Member States aggregated to EU level remain higher than the target set for the EU as a whole For the primary and final energy targets to be fulfilled, 30

In this context, the Commission proposed an update to the EED, including a new 30 % energy efficiency target for 2030 and an extension beyond 2020 of the energy efficiency obligation (which requires energy companies to achieve yearly energy savings of 1.5 % of annual sales to final consumers). In June 2017, the Council endorsed a 30 % energy efficiency target. Negotiations between the co-legislators on the Commission proposal to amend the EED were still ongoing at the time of writing this report. The 30 % energy efficiency target for 2030 is still set in comparison with the 2007 Energy Baseline Scenario of the European Commission (European Council, 2014). It corresponds to a 23 % and a 17 % reduction in primary and final energy consumption, respectively, relative to 2005 levels.

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MARKO ILIĆ, OWNER AND CEO OF GREEN ENERGY SOLUTIONS (GES)

BUSINESS

Bureaucracy Hampers

DEVELOPMENT

Green Energy Solutions is a company that spent years providing comprehensive energy efficiency consulting services according to the highest global standards, because customer satisfaction is of paramount importance to GES

part from its numerous services, this Niš-based comGES offers standard, solid, flexible and camouflaged, i.e. pany also offers a wide range of products. It represents “invisible”, panels according to the needs of customers. EU brands – ASOL for solar panels, SILESIA for heat “And when it comes to these panels, I would like to note that pumps, ECO for axial wind turbines, and when it comes we are at the start of a project in Africa that differs completely to photovoltaic solar panels it has standard, solid, flexible and from everything we’ve done so far. In largely uninhabited areas camouflaged varieties. where there are only small communities of people who take care of “The world’s needs for high-quality energy are increasing due reservations and fight against poaching, systems will be installed to the rapid development of technology, but simultaneously the with camouflaged panels for producing electricity,” says Ilić, adding that this is the future of energy combining with aesthetics. need for humankind to protect the environment is also growing, He adds that GES experts are also installing a 210kW onwhich is why companies like ours find themselves confronted grid solar power plant on the roof of a cold storage facility in by huge challenges,” explains Marko Ilić, director and owner of Macedonia. He explains that such facilities Green Energy Solutions (GES). around the world but are uncommon This Niš-based company offers comThe personnel of this Niš-based exist prehensive consulting services on energy for our region, and especially for Serbia. company - mechanical and efficiency to the highest standards, because “Actually, Serbia is still far behind counit is of paramount importance to GES that electrical engineers - have vast tries that have energy efficient systems countries that have turned largely the client is satisfied and the system is experience in air conditioning, and towards renewables. In our country, eveefficient and sustainable, with a minimal heating and cooling, but also in rything is stopped by bureaucracy and impact on the environment. Its business the state’s lack of readiness to implemodel is based on holistic, interdisciplinary the energy sector generally ment strategies, laws, by-laws and other considerations, international experience measures that it has brought itself, so it is illusory to expect and expertise in the field of cooling, geothermal energy exploitation, familiarity with solar and hydraulic systems, as well as state subsidies for the replacing of windows and the purchasing connectivity between economic, market, technical and energy of insulation and other building materials, increasing quotas for factors at the micro and macro levels. feed-in tariffs and modern energy technologies that save energy GES’s experts have to date designed and implemented and reduce consumption. complete heating, cooling, air conditioning, solar and gas systems “We don’t even take advantage of the availability of certain for all types of facilities, with the maximum utilisation of renewEU funds for energy efficiency, which at one point helped Poland able energy sources. All of their projects based on heat pumps, to make huge strides,” concludes GES’s boss, expressing his hope solar technology and biomass have been working to maximum that Serbia will advance with major steps in the period ahead. efficacy and efficiency for years. www.greenenergysolution.org 31

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TECHNOLOGIES

NEW ENERGY TECHNOLOGIES

To Look Out For In 2020

The year 2019 will likely be remembered as a period of technology consolidation rather than breakthrough innovation in the energy industry. Emerging industries, such as offshore wind and lithium-ion battery storage, have gone from strength to strength

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eanwhile, more novel technologies, such as next frontier, but there are still challenges to overcome energy blockchains and flow batteries, have within the inland floating solar arena,” said Molly Cox, been relatively quiet this year. a research associate at Wood Mackenzie Power & In some respects, this is not a bad thing. Renewables. “This needs to be addressed before the It signals that many low-carbon grid technologies are market develops offshore,” she said. maturing and achieving the scale needed to compete with fossil-fuel generation. And there is still plenty of scope STATIC COMPENSATORS for innovation in maturing sectors. While they may not have garIn the battery market, for examnered much mainstream attention Beyond the debate over ple, “the supply chain is constantly to date, static compensators are the extent to which battling disruptions resulting from a technology to watch as grids atlimited mineral supplies,” said Lindtempt to integrate growing amounts nuclear qualifies as a clean say Gorrill, CEO of energy storage of renewable energy, according to energy source, the sector’s firm Kore Power. “My prediction for U.K. energy analysis firm Cornwall 2020 is that the battery development Insight. traditional approach faces and manufacturing supply chain will Their job is to mimic the action of ongoing problems in the U.S. rotating improve to meet explosive market masses formerly supplied and Europe, and alternatives by thermal turbines, thus helping demand for residential, industrial and utility-scale operations,” he said. to maintain a constant frequency such as fusion and small At the same time, though, more across the electricity network. modular reactors remain radical breakthroughs might be Renewable-heavy grids may lack needed to solve longer-term grid this natural frequency-response frustratingly far from decarbonisation challenges, such mechanism, requiring compensators commercialisation as how to deal with intermittency instead. Equipment manufacturand seasonal weather variations in ers are starting to wake up to the regions with very high penetrations of renewables. As a potential of this market. GE, for example, trumpeted result of this, it will still be important to keep an eye on contract wins from Brazil to the U.S. earlier this year. emerging technologies as we enter a new decade. Here are five that have been highlighted by industry insiders. DYNAMIC EXPORT CABLES Equinor’s October decision to go ahead with the MARINE SOLAR 88-megawatt Hywind Tampen project was big news Following the growing popularity of floating solar for floating offshore wind, a nascent technology that arrays on freshwater bodies, 2019 saw a spate of anexperts believe could end up dwarfing today’s bottomnouncements regarding sea-based PV projects. Whether fixed market. But floating wind poses a challenge: How this concept will go mainstream remains open to doubt, do you connect a floating platform to a static cable on however. the seabed? The answer is to use “dynamic export cables” “Offshore floating solar has the potential to be the that carry high voltages and also move with the platform.

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“Whilst some high-voltage cables above 66 kilovolts have been used in offshore oil and gas projects, dynamic export cables at 220 or 275 kilovolts don’t exist on the market,” said James Young, CTO at JDR, one of several firms now working to solve the issue. MOLTEN SALT REACTORS Naming nuclear an energy technology to watch is fraught for several reasons. Beyond the debate over the extent to which nuclear qualifies as a clean energy source, the sector’s traditional approach faces ongoing problems in the U.S. and Europe, and alternatives like fusion and small modular reactors remain frustratingly far from commercialisation. Nevertheless, advocates say one emerging technology, the molten salt reactor, could provide carbon-free electricity with fewer radiation risks. And the concept seems to be gaining fans: Moltex Energy, a UK 34

developer, managed to pull in $7.7 million through a crowdfunding event in September. GREEN HYDROGEN

In the battery market, for example, “the supply chain is constantly battling disruptions resulting from limited mineral supply,” said Lindsay Gorrill, CEO at the energy storage firm Kore Power. “My prediction for 2020 is that the battery development and manufacturing supply chain will improve to meet explosive market demand for residential, industrial and utility-scale operations”

Renewably produced hydrogen is fast moving from the category “emerging” to “established.” At least 10 countries are already jostling for leadership positions in what some see as the next big thing in energy. “In theory this industry could reach the scale of oil and gas, but with very low emissions and significant value for electricity grids [by] helping to integrate variable renewable energy,” said Paul Ebert, group vice president of new energy and networks at consultancy Worley. In addition to its use as a source of energy for the grid, green hydrogen has ample potential to help decarbonise industrial processes, gas heating and heavy transport.

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