Energy 2017

Energy

Serbia 2017

Trends  Sustainability  Perspective MIRJANA FILIPOVIĆ, State Secretary At The Ministry Of Mining And Energy

BRANIMIR MIJAILOVIĆ, Director, Energotehnika Južna Bačka

Energy Safety Is Serbia’s Priority

Every Day A New Challenge

NIKOLA RAJAKOVIĆ, Professor At The University Of Belgrade School Of Electrical Engineering

BALZ BAUR, MS Of Environmental Science, ETH Zurich, BASNA

In The Shadow Of Technological Innovation

How To Invert Climate-Change

NEDA LAZENDIĆ, WINDVISION, Country Manager Serbia

LJUBOMIR NOVKOVIĆ, General Manager, Alfa-gas Term

Serbia Is A Reliable Partner

A Serbian Dream That Came True JASMINA POPOVIĆ, Director, DNP Inženjering Novi Sad

Ready For All Professional Challenges

INTERVIEW

Energy Safety Is SERBIA’S PRIORITY

Energy sector reforms, increasing the share of the renewable energy sources, and improving energy efficiency are key points in the Serbian Energy Sector Development Strategy in the next decade.

The EU Directives pertaining to energy sector are already implemented in the Energy Law

MIRJANA FILIPOVIĆ State Secretary at the Ministry of Mining and Energy

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he Ministry of Mining and Energy defined the activities aimed at providing Serbia with the sufficient energy products and regulate fully the energy market both in the next five years and in the long-term. Mirjana Filipović, State Secretary at the ministry, points out that our country, currently in the process of association with the EU, has been endeavouring to achieve the linking up in the energy segment on the regional markets, primarily via gas projects and transmission long-distance power line electro systems, and the inclusion in the common EU energy market. The goal is to achieve that the Serbian power, gas, and heating energy market should operate exclusively on economic principles, and at the same time provide for the greatest possible competition and the protection of the indigent population from high prices of energy and its products.

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Intensive activities are underway to solve the problems in connection with the energy polluters by applying European environmental standards in thermal power plants and coal mines. The Ministry of Mining and Energy is endeavouring to fulfil the requirements that our country must meet within Chapter 15 in regulating the energy sphere according to EU standards.

• What are the short-term and the longterm priorities of the Serbian energy sector?

The first priority of the Government and the Ministry is to provide for secure, reliable, and quality supply of energy and its products.

Long-term priorities – improving energy safety, developing energy market, increasing energy efficiency, increasing the use of the RES, and the application of the environmental protection measures in the operation of the

energy sector, are defined by the Energy Sector Development Strategy of the Republic of Serbia by 2025 with projections until 2030, which was adopted in the Assembly in 2015.

The Ministry prepared a proposal of a regulation setting out the Programme for the implementation of the Energy Sector Development Strategy for the period 2017-2023.

This regulation is quite complex, because it represents a set of measures, projects, and activities in the coming period in all energy spheres: electric power, thermal energy, coal, oil, gas, renewable energy sources, energy efficiency, including the aspects of the environmental protection.

• In the process of EU association, Serbia has a lot of obligations that it has to fulfil relative to Chapter 15, which pertains to energy sector. How close are we to the EU

PRIORITY

HOUSEHOLDS

PIPELINE

The first priority of the Government and the Ministry is to provide for secure, reliable, and quality supply of energy and its products

The total number of households who are enjoying the right to reduction of their electric power or natural gas bills, according to the latest data from June 2017, has been 70,260.

One of the priority projects providing the connection of the Serbia’s pipeline system to the neighbouring countries is the construction of Niš-Dimitrovgrad pipeline

• Directives in that area and what are the major obstacles?

The Law from 2014 fully transmits the provisions of the European legislation, that is, the third parcel of regulations has been implemented pertaining to the internal energy market. This has provided a basis for the development of the market, competition on the market, linking up of the market at the regional level, as well as to the common EU electric power market.

Adopted law introduced many changes in the energy sector. Since the day the Law has gone in effect, all end buyers of the electric power have a right to choose their supplier on the electric power market freely. In addition, foreign legal entities are enabled to perform energy activities – wholesale supplying of electric power without having to be founded or registered in the RS. Also, the Law provided a basis for the establishing of the organised electric power market in Serbia, that is, SEEPEX ad was formed. One of the objectives is the merging of the markets between Serbia and Montenegro within the WB6 initiative and the implementation of the so-called “soft measures”, as well as the accession of the Serbian day-ahead market to the closest neighbouring EU initiative for the linking up of the markets, that is, the initiative known as 4M Market Coupling (4MMC), which comprises the Hungarian, Romanian, Czech, and Slovak markets.

When it comes to oil and gas, it is necessary to implement two key activities in order to open Chapter 15 – Energy. These include establishing mandatory reserves of oil and reorganization of PE Srbijagas.

In case of mandatory reserves, this practically means that, pursuant to Directive 119/2009/ EC, it is necessary to establish reserves equalling 90 days of net import, or 61 days of average daily consumption, depending on which amount is greater.

For Serbia, this obligation amounts to 460

thousand tons of oil and oil derivatives, which must be kept as reserves.

The Energy Law from 2014 provided for the establishing of the Department of Energy Products Reserves, as administration body

The Ministry of Mining and Energy prepared a proposal of the regulation setting out the Implementation Program of the Energy Sector Development Strategy for the period 2017-2023.

This regulation is quite complex, because it represents a set of measures, projects, and activities in the coming period in all energy spheres within the Ministry competent for energy affairs, which has implemented to date a whole range of activities related to the provision, forming, and maintaining of the mandatory reserves, while at the same time, through the implementation of our plans in the coming years, we strive to fulfil the international obligations we have undertaken through the end of 2022. The development of the Action Plan to Establish the Mandatory Reserves is

underway, which is one of the criteria for the opening of Chapter 15 – Energy.

I’d say that RES are among the greatest obstacles to full implementation of the Directive, due to the fact that Serbia has been quite late in promoting the use of renewable energy sources, resulting in its having to take a cautious and careful approach in adopting European regulations and standards, which are based on European experience of many years. In addition, achieving binding targets in the area of RES is mostly contingent upon the activities of the private sector.

The state’s impact is reflected only in regulatory mechanisms and it may not have a direct influence on introducing investments in this area.

• The EU insists on the protection of the indigent population from expensive energy and its products. How many indigent households in Serbia managed to achieve the benefits in paying the bills, in other words, how many of them get free power and gas? What are the effects of the social energy cards?

The total number of households who are enjoying the right to reduction of their electric power or natural gas bills, according to the latest data from June 2017, has been 70,260.

For this purpose, a total of about 95 million Dinars (95,637,843.00) has been earmarked in the Budget at the monthly level.

The households may submit requests to acquire the status of indigent end buyer during the entire course of the year in the local selfgovernment units, while the status is acquired upon meeting the requirements set forth in the Regulation on Indigent Energy End Buyer.

One of the requirements for complete deregulation of the electric power market in RS is the achieved level of the protection of the indigent end buyers. At the moment, that level is not high enough, as compared to the potentially energy indigent households. I would like to take this opportunity to appeal, once again, to all households to get information from their ENERGY 2017

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respective local self-governments about the requirements for obtaining the status of the indigent end buyer. The information is also available on the Ministry’s website.

• The Government, as well as the IMF and the World Bank, request that energy companies, EPS, Srbijagas, and Resavica accelerate the reforms. What is the current status of their reorganisations?

The reforms that the Government, the IMF, and the World Bank request are being successfully implemented.

In cooperation with the World Bank, and in in accordance with the obligations to the IMF undertaken by Serbia, a Financial Consolidation Plan of the PE EPS was brought, defining the guidelines and measures for resolving problems, aimed at enhancing the profitability of the enterprises, which will be able to live up to market challenges in both quantity and price via rationalisation of their business operations, new investments, and solving their financial problems.

In 2016, the process of reorganisation of the PE EPS has continued, reflecting in two status changes: in January 2016 it was the status change of separating a part of the property and liabilities from the ODS and merging to the PE EPS, and on 1 June 2016 there was a status change of merging the subsidiary company for the electric power supply to the end buyers “EPS Snabdevanje” d.o.o. Belgrade to the Public Enterprise “Elektroprivreda Srbije”.

One of the objectives set out in the Plan is the optimising of the number of employees.

Beside the aforementioned, resolving the property rights pertaining to the real estate of both PE EPS and their subsidiary company ODS EPS Distribucija, which is also included in the Plan, regarding which the Government has passed several conclusions, and further activities pertaining to resolving property rights regarding real estate not comprised in passed conclusions are underway.

Also, in PE EPS the assessment of the value of the property and the capital is underway.

Finally, the purpose of fulfilling all of the aforementioned is to change the legal form of the PE EPS to joint-stock company In the sphere of gas, a number of steps have been undertaken to reduce registering loss by the PE Srbijagas, such as passing the Financial Consolidation Plan for this public enterprise, as well as reduction of financial risks for the delivered natural gas by raising

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the level of securing payments from all companies, including the enterprises undergoing restructuring.

The focus of these reforms has also been on the investment program implemented by the PE Srbijagas, which is being assessed from both standpoint of financial feasibility and standpoint of total contribution of this program to life and work of the population and economy in the RS. The Government is putting considerable efforts in creating conditions for the privatisation of the strategically important companies which are key consumers of the natural gas,

Renewable energy sources are among the greatest obstacles to full implementation of the EU Directive, due to the fact that Serbia has been quite late in promoting the use of renewable energy sources in which PE Srbijagas has ownership share based on its claims.

The privatisation of these companies would help direct the focus of the operations of the PE Srbijagas exclusively toward the provision of the conditions for a secure supply of natural gas to the market of Serbia.

The good direction in the implementation of the reforms has been confirmed by several revi-

sions of the Precautionary Arrangements with the IMF, which received favourable assessments.

• Serbia plans to connect to the Turkish Stream pipeline. Also, the EU insists on constructing gas interconnection to Bulgaria, NIŠ – Sofia pipeline. Can you tell us about the current status of these projects?

One of the priority projects providing the connection of the Serbia’s pipeline system to the neighbouring countries is the construction of Niš-Dimitrovgrad pipeline. The planned capacity of the pipeline is 1.8 billion m3, which would practically satisfy the current Serbian needs for this energy product.

Memorandum of Implementation of the Priority Projects for the Region, signed by all ministries of energy of the regional countries, including the European Commission, on 10 July 2015 in Dubrovnik recognized gas interconnection Serbia – Bulgaria as one of the six priority projects for the EU and the region.

This interconnection is at the second place on the list of priority projects.

There’s permanent coordination between the line ministries and the system operators JP Srbijagas and BULGARTRANSGAZ. The Government of the Republic of Bulgaria earmarked €60 million from the non-repayable European funds for the implementation of the Bulgarian section.

The Memorandum of Understanding for the Construction of the Gas Interconnector Bulgaria – Serbia Project between the Government of the Republic of Serbia and the Government of the Republic of Bulgaria was signed on 19 January 2017 in Sofia.

At the end of 2016, the Spatial Plan of the Special Purpose Area of the Infrastructure Corridor of the Main Pipeline Niš-Dimitrovgrad was adopted, with elements of detailed regulation.

For the purpose of the implementation of the project, as proposed by the Ministry of Mining and Energy, the Law on the Budget of the Republic of Serbia for 2017 has provided the funds for the expropriation of land.

The financing of the Serbia-Bulgaria Gas Interconnection Project from IPA 2017 has been proposed, with expected non-repayable aid amounting to €49.6 million. The total investment value of the project is circa €85.5 million.

PE Srbijagas developed a Dynamic Plan for the Implementation of the Project, which is being updated and which would be applicable if the necessary financial means are provided by the EU for the implementation of the project. ■

CORPORATE BRANIMIR MIJAILOVIĆ, DIRECTOR, ENERGOTEHNIKA JUŽNA BAČKA

Every Day A New Challenge “Without a development component and long-term planning, there is no certainty when it comes to the future of business,” says Branimir Mijailović, General Manager of Energotehnika Južna Bačka

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eneral Manager Branimir Mija­ilo­vić, a former student of Belgrade University and today an experienced engineer, has been running Energotehnika Južna Bačka for two years. In their everyday work, he and his 400 staff face on the one hand the company’s 60-year tradition, and on the other the ever changing reality of today’s energy sector. In an interview for CORD he recalled that, by signing the Energy Community Treaty, Serbia has accepted the obligation to fully implement EU directives in the field of renewable and alternative energy sources, under the agencies responsible for energy.

- Serbia has an obligation to reach a 20% RES share in gross final consumption by 2020. This is certainly not an easy task, but our country has adapted the legislative framework and incentives in this field. I expect this goal to be achieved.

Given these facts and how we judge our technical possibilities, I am sure that we can greatly reduce the use of fossil fuels and in this way directly improve the environment. At Energotehnika-Južna Bačka we see this as a serious obligation, but also as a great development opportunity.

As one of the leading companies in the field of energy, it our duty to participate in creating a positive environment to realize these goals. At the same time, we see a chance to take part in building the most

complex projects in the field of RES with our staff and technical capacities.

• Where is your company on environmental protection, nature conservation and climate, since these issues are one of the priorities of sustainable development on a global scale?

Energotehnika-Južna Bačka is determined to take care of environmental impacts through its daily work and to permanently improve environmental management in accordance with the standards and regulations governing the field.

On this subject are always trying to go a

We are fully aware that without a healthy environment there is no sustainable growth and development of a company, and in the end, it makes no sense to do business at all step further whenever possible.

I am quite confident that we are setting an example in promoting this type of business and that there is indeed a clear determination of the management and owners to accelerate all of our work related to environmental protection by concrete initiatives and activities. This commitment is primarily reflected in defining the goals and budget available in our business plans.

• On the company’s website, we can read not only that you have a respectable team of experts, but also that you cooperate with universities. To what extent do you rely on scientific arguments, analysis and projections in your everyday work?

Previous references and successful projects give us the right to say without false modesty that we have a very professional staff in our area of business.

However, at the same time we are aware that without a development component and long-term planning there is no certainty when it comes to the future of the business. For this reason, we rely heavily on cooperation with scientific and educational institutions, among which is the Faculty of Technical Sciences in Novi Sad. At the beginning of this year, a Memorandum of Understanding was signed between the Faculty of Technical Sciences and the Energotehnika - Južna Bačka company on various forms of cooperation in development projects.

In addition, the Memorandum defines the implementation of the Scholarship Programme for students who achieve special success in their studies, and provides material conditions for achieving top results in international competitions. ■ ENERGY 2017

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CORPORATE EPS, The majority of Serbian citizens want to save energy

EPS Encourages Energy Efficiency Energy efficiency isn’t the same as saving, because saving always implies giving up something, and efficiency doesn’t

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rotecting the environment through increased energy efficiency is one of the priorities within the framework of the responsible and sustainable operations of “Elektroprivreda Srbije”. Research into the habits of the Serbian population and energy efficiency, conducted jointly by EPS and agency Ninamedia, has shown that Serbian citizens are increasingly aware of the importance of energy efficiency.

One of the results of the survey is that as many as half of Serbia’s citizens are ready to change their habits in order to reduce electricity consumption. This is encouraging news in a country where 2.5 million households use almost five times more electricity than the European average. The survey on a representative sample of 1,800 Serbian citizens showed that 81 per cent of respondents save

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electricity, and 86 per cent of them state reducing monthly bills as the main motive, while seven per cent cite environmental protection.

According to principles of energy efficiency, small changes in the habits of citizens could reduce electricity consumption in households by as much as 20 per cent and fulfil their basic goal of having lower bills, but at the same time being responsible towards the environment According to principles of energy efficiency, small changes in the habits of citizens could reduce electricity consumption in households by as much as 20 per cent and fulfil their basic

goal of having lower bills, but at the same time being responsible towards the environment.

According to survey results, some citizens already understand the fundamentals of energy efficiency that imply using less energy to do the same job without compromising on comfort.

Of those who save energy, 22 per cent state that they do so via saving light bulbs, while 16.2 per cent consume less energy due to thermal insulation in their homes. Serbian citizens are aware of the impacts of irrational energy use and 30.8 per cent of survey participants estimate that the biggest consequence of excessive electricity consumption at the global level is insecurity in electricity supply, while 29.6 per cent see climate change as the biggest consequence and 25.6 per cent of citizens cite pollution of

the environment. The remaining 13 per cent did not respond to this question.

Energy efficiency isn’t the same as saving, because saving always implies giving up something, and efficiency doesn’t. Through energy efficiency we don’t undermine the quality of life or work, but we do reduce costs and preserve the environment. By using energy saving light bulbs, eco regulation of electrical appliances, as well as thermal insulation on buildings, we can significantly reduce electricity consumption. When purchasing electrical appliances, consumers should take into account energy class, because class A is the most efficient, while G is the least efficient, and the difference in costs can be as much as twice as high.

The survey also showed that awareness is increasing of the benefits of energy efficiency, with 38 per cent of citizens having replaced window frames, and an increasing number of them buying energy-efficient devices with components tailored to use as little energy as possible.

Heat insulation is one of the best ways to prevent heat dissipation in the winter and ease cooling during the summer. Improving heat insulation, which involves replacing window frames, fixing windows and doors or roof insulation, is planned by almost half of survey respondents (49 per cent) in the next few years. An apartment or house with a high level of energy efficiency allows a family to live comfortably and save money through reduced bills. The key to achieving savings is to see your home as a single energy system with mutually dependent parts. For example, a heating system is not just a stove – it is a complete heat transfer system, which starts from the stove and transmits heat through pipes and ventilation holes. Even the highest quality stove, with a high degree of energy efficiency, will burn a lot of fuel if ventilation ducts and openings, walls, ceilings, windows or doors allow air to escape.

Internal insulation can also be a solution, because it is cheaper than external, primarily because it uses thinner materials. The negative side

of internal insulation is the creation of moisture or damp in places where an insulated wall comes into contact with an non-insulated wall or surface.

The cheapest method is to improve home insulation by closing the places, holes and cracks through which air escapes.

EFFICIENT AIR CONDITIONING FOR TROPICAL WAVES Energy efficiency is especially relevant during tropical days, when air conditioning units work day and night

Serbia has committed itself to reducing total energy consumption via energy efficiency by nine per cent by 2018. And every inhabitant of Serbia can contribute to achieving this goal and at the same time reduce their electricity bills if they apply some of the recommendations for raising energy efficiency in urban areas. Air conditioning units need not necessarily be large consumers, provided they are used efficiently and rationally. It is also important to use a device with the highest possible

energy class, and the best carry the ‘A’ mark. Experts also highlight the great importance of choosing adequate air conditioning and that the quality of the device is a very important factor in consumption. Devices with the same cooling capacity, but of different energy classes, do not use the same amount of energy. For example, air conditioners with the energy class “A” use up to 25 per cent less electricity than “D” class devices.

Serbia has been marked by a series of heat waves during summer 2017 and record consumption of electricity during that period. Almost the whole of July was hot, with air temperatures exceeding 40 degrees Celsius, while tropical temperatures and higher use of air conditioning during the day increased electricity consumption. On individual days in Belgrade those increases were recorded as being up to 20 per cent higher at the day level compared to the July average. EPS customers consumed 89 million kilowatt-hours on 11th July, which is record-breaking summer daily energy consumption. During the summer in Serbia, any change in the maximum daily temperature by 1°C causes a change in consumption by 820,000 kilowatt-hours on a daily basis.

Serbia has committed itself to reducing total energy consumption via energy efficiency by nine per cent by 2018. And every inhabitant of Serbia can contribute to achieving this goal and at the same time reduce their electricity bills if they apply some of the recommendations for raising energy efficiency.

GAUGING HOME EFFICIENCY Professional energy experts use special equipment to identify places where air escapes, places where insulation is lacking and devices that do not work properly. An expert analyses how well your energy systems work in combination and compares this analysis with your utility bills. This is followed by a recommendation to improve energy efficiency, for greater comfort and security, in accordance with your budget.

Some auditors will also calculate how quickly your investment will pay off. ■ ENERGY 2017

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SERBIAN ENERGY MIX

In The Shadow Of Technological

Innovation Renewable energy, energy efficiency through the applying of contemporary environmentally friendly technologies – a business opportunity for the development of Serbia's industry and green economy

NIKOLA RAJAKOVIĆ Professor at the University of Belgrade School of Electrical Engineering

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he transition of Serbia’s energy towards renewable sources demands a strategy of gradually moving away from coal by the end of this century and introducing new energy technology solutions in all segments of production, distribution and energy management. And in Serbian energy companies they have to place their profession ahead of politics, says Nikola Rajaković, professor at the University of Belgrade’s School of Electrical Engineering.

• The development of the energy sector is conditioned by the application of new technologies. How much has technology advanced in that area in the last decade, and in which segment is the technological revolution most evident?

New energy technologies are undeniably crucial to the development of the energy sector, and their advancement in the last decade is evident, although we cannot talk about

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revolutionary advances. Progress can be felt in the development of technologies for renewable energy sources, in energy efficiency technologies, environmentally friendly technologies, but also in conventional technologies and energy storage technologies, and, finally, as the synthesis of all of these steps, stands smart grid technology.

When I say that there’s been no revolutionary shift, I’m primarily thinking in terms of the energy fusion possibilities that were expected to enter into wider industrial applications. Unfortunately, the uncontrollability of these technologies still renders them uncertain when it comes to satisfying energy needs. Renewable energy sources will be mentioned further below, so it should be noted here that progress in energy efficiency technologies (better thermal insulation in buildings thanks to new materials, LED technology in lighting, more efficient electric motors, reduced losses in iron en-

ergy devices, again thanks to new materials etc.) has reduced demand for energy significantly. Likewise, environmentally-friendly technologies, primarily in thermal power plants, contribute significantly to gradually withdrawing fossil fuel technologies from use without dramatic cuts.

Improvements in battery production technologies that enable a transfer to electrical transport with increased storage capacity are a very influential factor in the introduction of renewable sources.

And, at the end of this small overview, it is important to note that smart grid technologies (the superposition of communication and information infrastructure on the conventional energy network) not only allow the integration of renewable sources, but also automation in energy networks, with unheard of effects in managing consumption. I think the advancement of technology is most evident in this segment.

• The world is struggling to secure as many renewable energy sources as possible. Which countries are prevailing in its production and which renewable energy is utilised the most today?

The world is definitely turning increasingly towards renewable energy sources. Solar power plants for the production of electric energy, as well as panels for the preparation of technological hot water, are certainly among the most important technologies for renewable sources. However, wind farms (both onshore and offshore) are of huge importance. The estimates differ regarding the energy mix that the world will have in 2050, but it is certain that the participation of these two renewable energy technologies in the total contribution of renewables will be dominant. In parallel with this and biomass application technologies, heat pump technology, cogeneration, and other aspects, applying renewables already have a strong impact that will become even greater over time.

Technologically developed countries dominate in the application of renewable sources. The countries of Western Europe set

themselves apart here, but also the United States and China, as the two most powerful economies, are also accelerating their share in the global use of renewable sources.

• Where is Serbia on the list of countries using renewable energy sources?

Serbia occupies a very modest place on the list of countries that use renewable energy sources. We are far behind countries from our own neighbourhood (Greece,

The world is definitely turning increasingly towards renewable energy sources.

Solar power plants for the production of electric energy, as well as panels for the preparation of technological hot water, are certainly among the most important technologies for renewable sources Romania etc.), and even further behind developed countries. There are multiple reasons, but our traditional conservatism towards technological innovations has contributed to this outcome. Instead of

seeing the use of renewables as a business opportunity for our industry, it is followed by numerous obstacles.

• What should be done for Serbia to gain large solar parks and more small hydroelectric plants, to use biomass, geothermal sources and other sources that Serbia has in abundance?

It is primarily necessary to change the attitude towards technological innovations, which is very difficult. On the other hand, it is possible to significantly strengthen institutions by simplifying procedures for obtaining permits. And, ultimately, it is necessary to build a framework to maximise the economic advantages of applying renewable sources.

Incentive prices for renewable sources as a mechanism have already been overcome in developed countries, and in our country we expect them to give some more odd good result. Moreover, the price of a kWh produced from solar power plants in many countries is competitive with the price for energy from conventional power plants. I hope we will have a similar situation in our country. ■

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INTERVIEW • How strong are the links between science and the holders of state functions when it comes to the development of the country's energy?

This link certainly exists, but it also needs to be even stronger and more productive.

One of our problems in energy is the lack of continuity in the management of the energy sector, which requires decisions made over a span of 20 to 50 years, while politics logically only counts from election to election.

If experts and responsible professionals continuously managed the energy sector with the minimal influence of daily politics, the results would be incomparably better.

• What should be done for the proposals of experts to have more practical implementation, primarily in the development of Serbian energy enterprises?

We have enough quality proposals from the profession, though they are very often on the side of preserving the status quo. Namely, this energy transition towards renewable sources must also carry elements of the break with the previous situation. What needs to be done is to apply experts’ proposals, and that is very difficult in circumstances when politics are placed ahead of the profession in Serbian energy companies.

• Serbia produces 70% of its electricity from coal? What are our prospects like with that resource in the future; how rich are the reserves?

Serbia has coal for the next 50 at the current rate of use, perhaps a decade or so longer.

Serbia’s energy strategy must project a vision for the decades without coal, and they are at the end of this century. In energy terms, that’s not such a distant horizon, although from the human perspective it’s really far away. So, the real question in this context is what the energy mix in Serbia is like without coal.

• The European Union is seeking that the countries of the region decommission at least 13 obsolete coal-fired power plants by 2023. Serbia needs to decommission as many as five old thermal blocks? How realistic is that and where will this shortfall of power be compensated for?

We really have old capacities in thermoblocks (Kolubara A, TENT A1 and A2, Kostolac A1 and A2, TE Morava etc.), and this is something that is our reality. The profession introduced the concept of RE-

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PLACEMENT CAPACITY and the Kostolac B3 block, with 350 MW of power, built by Chinese companies, is seen as such. It is certain that it would have been even better to start building a larger power block of about 700 MW over a decade ago, with a better degree of exploitation, but back then politics made the bad decision not to launch such a project. Afterwards the circumstances in Europe also changed in relation to the use of coal, so there simply wasn’t a strategic partner to implement such a project. Thus, this less-bad decision to construct the Kostolac B3 unit was made and from this block part of the lacking energy will be accounted for. The remaining expected energy shortfalls

Serbia occupies a very modest place on the list of countries that use renewable energy sources. We are far behind countries from our own neighbourhood (Greece, Romania etc.), and even further behind developed countries should be produced from renewable sources, according to my reasoning.

• European countries are determined to replace fossil fuels with cleaner energy, but some EU members, such as Germany, are still building coal-fired power plants. Considering that Europe has confirmed coal reserves for an entire century, can we abandon use of that resource in the near future?

When it comes to the future of coal, it will remain influential in the coming decades, even in Europe until 2050, but its relative significance is decreasing and the transition to cleaner technologies than coal are becoming a priority. It is in this context

that the further use of coal in European energy needs to be considered.

• Many countries have also announced the closure of nuclear power plants, but none of them have progressed beyond pure announcements? What is the perspective for the development of nuclear energy worldwide?

Nuclear technology accounts for, and will continue to account for, a significant share in the production of electricity in Europe and elsewhere in the world, and that will continue in the decades ahead. Reducing this share, while increasing the share of renewables and reducing the share of fossil fuels, is the job of transitioning energy. Progress in nuclear technologies mean the nuclear option remains very influential, so at some point over the next 30 years Serbia will also have to decide whether to build a nuclear power plant or to rely exclusively on renewable energy in the coal-free situation. In my view, the development of technologies for the accelerated development of smart grids will make the option of exclusively renewable sources very realistic.

• Serbia has a Moratorium that prohibits the construction of nuclear power plants, while on the other hand it is surrounded by around dozens of nuclear reactors in the neighbourhood, at distance of 50 to 400 kilometres.

Does Serbia need nuclear power?

This answer is not necessary at this juncture. Serbia is in a favourable position because it can wait another three decades, while we are still successfully using our coal, before it has to give that answer.

• When we look at energy from the planetary perspective, technologically and in production terms, which of the world's energy trends are applicable in Serbia today?

Primarily solar technology, but also conventional hydro and thermo technologies, has a wide range of possible applications in Serbia. In addition to them, wind utilisation technology, biomass and heat pumps have good prospects in our country. ■

INTERVIEW BALZ BAUR, MS OF ENVIRONMENTAL SCIENCE, ETH ZURICH, BASNA

How To Invert ClimateChange

Company BASNA, in its mission to protect the environment, produces Energy and Biochar from biomass. With this new concept they are claiming to have more effect on the environmental protection than any other energy project based on CHP

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estern Serbia has huge wood biomass potential. It is there where company BASNA has utilized this natural gift to harmonize with nature, using the most efficient methods to transform wood into Biochar, which is in increasing demand, says BASNA owner Balz Baur. It is this unique concept of producing Biochar and at the same time renewable energy that sets BASNA apart from other companies in the field.

Their product is not intended for burning, but has far more widespread applications – such as soil improver in agricultural land, and increasingly in livestock feed. That way it can contribute not only to reduce the greenhouse effect, but has the potential to contribute solving many other challenges we face as a civilization.

• You claim to have a greater impact on reducing the Greenhouse effect than conventional biomass cogeneration plants.

How so?

Our technology is no better than anyone else's, especially when it comes to converting from heat to electricity. You must look at our concept as a whole to understand what differentiates BASNA from others.

• So “producing charcoal” does the trick?

Unfortunately, it is not that simple. During the production of charcoal many hazardous gases emerge from the biomass. Most of these gases have an even higher impact on global warming than CO2. In traditional coal kilns, these gases are released into the atmosphere. We carry out cogeneration from these gases, with an efficiency of around 20 per cent.

50 per cent of the energy content is stored in the charcoal, while we have a total exploitation rate of 70 per cent on the biomass energy content yearround. This is far better than any biomass CHP.

• But when you burn the charcoal you are back to only 20% efficiency?

That depends on how the charcoal is used, and this is precisely where our concept stands out among other renewable energy projects. Our high temperature charcoal is crystalline. The intended use of our charcoal is not to burn it, but to apply it in agriculture (= Biochar). All Biochar will eventually end up in the ground and will not decay for centuries.

The farmer gets more and longer lasting fertile manure, as well as carbon sequestration and humus restoring effects, for free During the growth of a tree, CO2 is assimilated from the atmosphere and O2 is released. Later we convert the tree into charcoal. There the C-atom from the CO2 becomes embedded in a stable carbon-grid. By applying charcoal in agriculture, you isolate CO2 from the air and place it in the ground, whereby it acts like a carbon sink. And you can simultaneously exploit the gases’ heat energy during the carbonisation process.

I always say: “By heating your swimming pool in wintertime, you are actually doing more good for the environment than if you weren’t heating it”.

• Why should we apply charcoal in agriculture?

As an additive to livestock fodder! Recent studies show that applying Biochar in animal husbandry has almost countless positive effects.

The fact is that charcoal has the capacity to absorb toxins from the body and toxins in animal fodder are well known (mycotoxins. bacterial toxins and environmental pollutants like pesticides and heavy metals).

Even more interesting is the observation of increased fodder efficiency. In a piglet farm in Germany, for instance, instead of 2.8kg of fodder per kilo of weight gain, only 2.2kg were needed.

The piglets also finished 14 days earlier than the control group. We are repeating this trial in Serbia right now.

The most interesting fact to me is that the use of preventative and acute antibiotics can thereby be avoided. Moreover, the hygienic conditions (due to reduced diarrhoea), animal health and tendency towards aggressive behaviour have clearly improved.

Similar observations were made in cattle husbandry, where meat quality and milk production also improved. And, as an extra bonus, after feeding Biochar to your animal, you will find the charcoal in the manure is charged with plant available nutrients. The farmer gets more and longer lasting fertile manure, as well as carbon sequestration and humus restoring effects, for free.

In the end, the farmer can increase profitability due to lower feeding costs, lower veterinary costs and more fertile land, with reduced expenses on fertilisers and irrigation. Everybody is happy, including the animal. And that’s how you get electricity and heat energy, extract CO2 from the atmosphere and place carbon in the ground! ■ ENERGY 2017

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ELECTRICITY

Serbian EMS Certified As Electricity Transmission System Operator Serbian state-owned company, Elektromreža Srbija (EMS), has obtained certification as an electricity transmission system operator (TSO). The certification opens the way for EMS to obtain a license to operate transmission system and to transmit electricity

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he Council of the Energy Agency of Serbia (AERS) issued the certificate to EMS in early August, after several conditions were resolved, in line with the Energy Community opinion.

After obtaining the certificate, EMS will be able to apply for a license to operate a transmission system and transmit electricity, the AERS told Balkan Green Energy News portal.

The main purpose of issuing of the certification is to confirm that TSO is independent of its network users, or market stakeholder, such as electricity producers and traders, as well as mostly large buyers, AERS officials said.

EMS submitted a request for certification in October 2016, and the AERS issued a preliminary decision to issue the certificate early of 2017. The decision was submitted to the Energy Community for an opinion.

The Energy Community Secretariat issued a negative opinion in June, stating that EMS was not unbundled in line with the ownership unbundling model as required by Article 9 of

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the Electricity Directive. It said that EMS was still controlled directly by the Government, the representative of state ownership in both EMS and state electric power company Elektroprivreda Srbije (EPS).

Prior to the final decision, it was necessary to ensure the independence of the operator by

Prior to the final decision, it was necessary to ensure the independence of the operator by separating competences over EMS and public enterprises that are engaged in production and supplying of electricity separating competences over EMS and public enterprises that are engaged in the production and supply of electricity.

Since one ministry was in charge for both the

EMS and EPS, the Law on Ministries had to be changed which was done in June 2017. The competencies over public companies which produce or supply electricity were transferred from the Ministry of Economy to the Ministry of Mining and Energy. These competencies concern activities on the appointment of management bodies, as well as other acts relating to the operations of these companies.

The AERS officials said that the EMS has also fulfilled other conditions related to the other Energy Community remarks.

In November 2016, EMS announced that it had started operating as a joint-stock company.

The new name of the company is EMS AD. It operates as a non-public joint-stock company with 100 per cent state ownership, without the possibility of purchase of shares by other legal entities or individuals.

In January, the Serbian Government appointed Jelena Matejić as the new acting director of EMS. ▪

Source: balkangreenenergynews.com

CORPORATE NEDA LAZENDIĆ, WINDVISION, COUNTRY MANAGER SERBIA

Serbia Is A Reliable Partner “Besides the Alibunar wind farm, WindVision is open to developing other projects in Serbia”, says Neda Lazendić, Country Manager of the Serbian branch of the Dutch-Belgian company in this interview for CORD

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e are inspired to go further” is the motto of this company that, with a focus on producing ‘green energy’, has already gone so far that it could be said that it has already left a legacy of an environmentally clean future.

Founded as a Dutch-Belgian company, WindVision works on two continents and in eight countries, among them Serbia.

It is dedicated to clean, safe energy. In Serbia it became known already in 2010 as the investor of the wind farm Alibunar.

Neda Lazendić manages WindVision’s Serbian branch.

In this interview for CORD she says that the company’s management recognises our country as a reliable partner, primarily owing to the project in Alibunar. Asked if she finds Serbia ready and open for business in the renewable energy field besides formal regulations, she mentions that “basic national legislation is established through the existing Energy Law with accompanying bylaws and other relevant laws”.

“But we should not ignore the importance of harmonising them with the legislation of the Energy Community in this field and increasing the production of energy precisely from renewable sources to 27% by 2020. Besides this, the model of the Contract for Purchase of Electrical Energy

must be adapted to the conditions of the international financial institutions that will provide funds for implementing such projects. The first wind farms in our country have only just been built in recent years, with a total installed capacity of 25MW. But following European trends, Serbia has given the green light to build some large wind farms, and their potential is expected to be realised in the coming year.”

We think that, as a future member of the European Union, Serbia can reach its electricity production targets, fulfil its international obligations and provide a better energy future • Beside the Alibunar wind farm project that you have been focused on, are you planning further projects in Serbia?

“Since WindVision regards Serbia as a business environment with a future, ready

to adapt to large investments, we remain open to partnership also in future projects, though our current priority is building the Alibunar wind farm.”

• WindVision works in several countries on two continents. As the sustainable development of the planet, including of course ‘green energy’, is one of the most important global subjects, which of WindVision’s countries is most sensitive to the necessity of the ‘energy transition’?

“We think that ’green energy’ is the present reality rather than an alternative.

According to research by the International Renewable Energy Agency IRENA, wind as a renewable source should be able to produce a quarter of the European Union’s electricity supply, which would increase the security of the European energy system considerably. About 11% is currently generated from this source. When you know that during last year a full 44% of all new electricity plants in European countries utilise wind power to generate electricity, it’s clear that this energy source is becoming dominant.

“In this context, I would name Belgium and France as characteristic ‘WindVision countries’, where we have projects on the drawing board and being built.” ▪ ENERGY 2017

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INTERVIEW LJUBOMIR NOVKOVIĆ, GENERAL MANAGER, ALFA-GAS TERM

A Serbian Dream That Came True Alfa-gas Term in Kula is an example of a successful family vision of developing renewable energy

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wenty-five years ago, Ljubomir Novković and his family recognised the advantages of renewable energy and started investing in new technology. Today, Alfa-gas Term is recognised as the best supplier of thermal energy plants providing clean energy, and is in demand both in Serbian and on the region’s markets. Family ideas are successfully realised with the state assistance, in cooperation with the experts of the School of Technical Sciences of the University of Novi Sad and foreign partners, and their work and clientele keep growing.

• Your company mainly deals in building building thermal energy plants and planning gas and water supply layouts. How competitive do you think the Serbian market is locally and compared with global trends?

It was back in 1992 that I set out on a journey into the uncertainty and beauty of entrepreneurship, with boundless support from my family – wife Irina, daughter Maja and son Dejan. Having done the market research, we realised that renewable energy is a field lacking in research, applicability and power plant supply.

With selfless expert help from Professor Dušan Gvozdenac and his associates from the School of Technical Sciences in Novi Sad, we’ve been tirelessly perfecting and applying our knowledge in this area. Not only do we install thermal energy plants but we also design them. With major government support, the Serbian market has great prospect.

Our country has an excellent geographical position and is rich in waters and geothermal energy. With its favourable climate, the country has an amazing potential to save and substitute oil, coal, wood and gas as primary energy sources.

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The benefits of renewable energy are cleaner environment, unpolluted air and soil, and as well as a considerable financial savings.

Compared with global trends, we are moving up, and we’re doing it with our own brainpower.

• You are a co-founder of the Renewable Energy Society. Is Serbia dedicated to energy awareness and renewable energy?

It was back in 1992 that I set out on a journey into the uncertainty and beauty of entrepreneurship with boundless support from my family – wife Irina, daughter Maja and son Dejan Compared to 1992, Serbia is now an important factor when it comes to using new, clean technologies.

The Renewable Energy Society wants to affirm the use of renewable energy and to educate people

about it. We organise lectures for the general public and industry, focusing in particular on the installation of heat pumps, sanitary hot water solar heaters and photovoltaic panels. We have performed well in the industrial application of renewable energy systems, making considerable financial savings. We expect to raise public awareness significantly if helped financially by the government.

We have established successful cooperation with foreign partners such as Viessmann, Vaillant etc. Our current activities include the substitution of a mazut-fired boiler room with a gas-fired containerised boiler plant.

We get great support from the local government, led by the Mayor of Kula Perica Videkanjić and his team, Mr Milojičić, Mr Miljanić, Mr Kostić and Mr Trifunović. They recognise the importance of renewable energy and its benefits.

• Your career started in a workshop set up during the war and hyperinflation, and you are now running a respectable company. Does this prove that a Serbian dream can come true or is this simply a Novković reality?

It’s true, starting a business under those conditions wasn’t easy. But if you have faith in your family, yourself and the people around you, and if you have a vision, it’s much easier.

Years of hard work and commited staff have helped our business grow and the quality of our work improve.

Of course, it was possible for me to realise the “Serbian dream” ‒ or the “Novković reality” ‒ because in addition to great associates and good people behind me, I had the greatest treasure of all, my grandchildren Leda, Stefana, Bodin and Nikodin. ▪

INTERVIEW JASMINA POPOVIĆ, DIRECTOR, DNP INŽENJERING NOVI SAD

Ready For All Professional Challenges

DNP-Inženjering d.o.o. (Ltd.) was founded on 3rd November 2014, with the main activity of designing electrical power facilities of all voltage levels. Headquartered are in Novi Sad, the company’s founder and director is Jasmina Popović

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he company was established with a staff of three electrical engineers, but after two years and 10 months of operations that figure had grown to 12 employees.

As a company, we have major permits in the Republic of Serbia: P050E1, P061E1, P062E1 and P190E1, while in Republic of Srpska we also have licenses for designing the constructive phase and electro phase - high power and electrical power plants. In 2015 the company introduced standard certifications ISO 9001, ISO 14001 and OHSAS 18001, and in 2017 it also added ISO/IEC 27001.

• Which projects do you consider as being the company’s best references?

In the previous period, we applied ourselves to achieve a high position on the domestic market and in the region, with additional activities of designing electrical power facilities of various types: TS Pančevo 3, Zrenjanin 3, Sombor 2, Šipovo, Kotor Varoš and Nevesinje, VE Vladimirovac, Bela Anta and Nikine Vode, HET-HE Trebinje 1, EVP Trebješica and the Minel Dinamo Test Station, as well as many other diverse tasks that were challenges

We are ready to deal with all the challenges we face, in both designing the reconstruction of existing facilities and designing the construction of new ones

• Which parts of the company would you single out as being the carriers of its development?

The leading role in the company belongs to engineers, who have enviable experience in designing electrical power facilities in both Serbia and abroad. Based on their experience and the application of the latest programmes used in this field of design, we as a company are not lagging behind the rest of the world in the field of globalisation. What's more, we are ready to deal with all the challenges we face, in both designing the reconstruction of existing facilities and designing the construction of new ones.

which our designers managed to implement successfully. Of all the projects we have done to date, we are most proud of the project TS and PRP wind farm Vladimirovac, for investors WindVision, which was also an inclusive project for the founding of the company. In addition to this project, we would particularly highlight the project of the new substation, TS Šipovo in Bosnia’s Republika Srpska, as well as the project to reconstruct EVP Trebješica in Montenegro.

The company has a trend to constantly

develop and improve all employees in the field of design, in order to be as competitive as possible on the domestic and world markets. Cooperation with renowned contractors in Serbia (Energotehnika Južna Bačka Novi Sad, Energomontaza Beograd and Elektromontaza Kraljevo), as well as with equipment manufacturers (Siemens Belgrade, Schrack Novi Sad, Schneider Belgrade and Eaton Belgrade), enables us to constantly advance and improve the quality of our projects at the highest level.

• When it comes to designing electrical energy facilities, how competitive are we with global achievements in that domain?

Bearing in mind the constant changes in the electricity market, the increase in consumption and new sources of energy, it is very important to respond effectively to the demands of this market. Our market is global, but we also appreciate the specificities of the regional and local markets where we operate. In this sense, we meet the following requirements: • continuous improvement of professional skills in knowledge, • trained and responsible associates, • access to relevant information, • ability to adapt to different regional and local market specifics; and • efficient organisation ■ ENERGY 2017

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