Serbia

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• Serbia
• Renewable
• Energy
• Sources

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RES Technical Potential
Serbias endowment of renewable energy resources
is substantial - realization of these potentials
require Government action
Potentials (Mtoe)
Biomass 2.70
Hydro 0.60
Solar 0.64
Geothermal 0.20
Wind 0.19
TOTAL 4.33
Clear technical potential of renewable energy -
insufficient information about the economic
potential
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Biomass
Forest biomass Forest biomass
Fuel Wood 7 million m³ unofficial -------------------- 1.6 million m³ official (55 from State forest)
Wood residues 5 million m³
TOTAL 12 million m³
Fruit growing residues Fruit growing residues
Biomass residues (1,000 tones)
Plum 393.5
Apple 36.2
Cherries 55.0
Pear 14.0
Peach 35.1
Apricot 15.5
Walnuts 55.0
Grapes 515.0
TOTAL 1,119.3
Crop farming residues 1/3 available for Energy Use Crop farming residues 1/3 available for Energy Use Crop farming residues 1/3 available for Energy Use
Total residues (1,000 tones) Residues for Energy Use (1,000 tones)
Wheat 2,905 1,365
Barley 295 180
Rye 15.5 4.4
Corn 5,310 1,140
Sunflower 705 240
Soybean 320 130
Rapeseed 7.8 1.6
TOTAL 9,560 3,060

• Most promising utilization options for biomass
• Space heating in households and buildings using
  biomass pellets or briquettes
• Co-firing or total replacement in district
  heating plants firing heavy oil or coal in south
  Serbia, where natural gas is not available yet
• Production of electricity utilizing agricultural
  and wood wastes

Wood biomass 1 Mtoe
Agriculture biomass 1.4 Mtoe
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Small Hydro Power Plants
SHPP Cadastre (1987) 856 locations 500 MW
gt5 MW 9 locations 2-5MW 30 locations (average 3
MW) lt1 MW largest number of locations 1,500
GWh/year Number of SHPP in Serbia 60 (50 out
of operation) Revitalization Construction
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Solar

• Most promisin utilization options
• Sanitary water heating
• Space heating
• If each housing unit (2.65 million units) would
  install average 4 m² of collectors
• Equivalent to some saving potential of
• 7,420 GWh

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Geothermal
Average geothermal flow density in Serbia is
higher than 60 mW/m³ There are 160 natural
resources of geothermal waters (excluding
Panonian basin) with temperature above
15ºC Highest temperatures recorded Vranjska spa
- 96ºC Jošanicka spa - 78ºC Sijarinska spa -
72ºC Total flow rate of geothermal water
resources is 4000 l/sec 60 locations are in the
water reservoirs up to 3000 m depth
Use of geothermal potential is mainly for
balneological purposes, sports and
recreation Prospects for expanding geothermal
energy for agricultural heat and water heating
are reasonably good Potential for larger scale
geothermal electricity is limited - requires
water temperatures above 100C.
Installed thermal power (MWt) Produced heat (TJ/year)
Residential and commercial areas 18.5 575
Spas and recreation 36.0 1,150
Gain drying 0.7 22
Greenhouses 8.4 256
Fishing and cattle breeding 6.4 211
Industrial processes 3.9 121
Heat pump heating 12.0 80
Total 86.0 2,415
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Wind
Wind data based on 10 metre heights
extrapolated to 50 metre heights 2,300 GWh
1,300 MW of capacity at sites with minimal
average wind speeds of 5 m/s
Best locations in Serbia (extrapolated) Best locations in Serbia (extrapolated)
Midzor 7.66 m/s
Suva Mt. 6.46 m/s
Vrsacki breg 6.27 m/s
Tupiznica 6.25 m/s
Krepoljin 6.18 m/s
Deli Jovan 6.13 m/s
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Barriers for wider use of RES

• Institutional barriers
• Lack of experience
• Need for the experience of how a private sector
  renewable energy project can work in Serbia
• Absence of first set of projects
• Transition Issues
• Many industrial companies are in transition
  both with regard to structure and ownership, and
  managements are not yet ready to consider
  measures to rationalize energy activities

• Financial barriers
• Debt Financing support
• Difficulty to secure long term loans appropriate
  for small renewable energy projects
• Electricity tariff
• Low electricity tariff does not stipulate
  domestic, commercial and industrial consumers to
  use renewable energy - current average price is
  under 5 cents/kWh

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Barriers for wider use of RES

• Technical barriers
• Absence of technical standards
• Despite the existence of manufacturers of heating
  equipment and biomass fuel (briquettes and
  pellets), production standards are not regulated
• Equipment for biomass energy utilization need
  clear information about technical specification
  and performance characteristics
• Barriers to biomass utilization
• Low electricity price, which decrease motivation
  to install biomass firing boilers
• No developed market for biomass fuel and biomass
  utilisation facilities
• Absence of a renewable energy resources inventory
• Update and development of Small Hydro Cadastre
• Wind monitoring programme with wind speed
  measurements at 50 metres needed

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Legal RegulationDecree on conditions for
acquiring status of Privileged Power Producer
Monitoring

• SHPP up to 10 MW

Feed-in tarriff

• Power plants that use at least 90 renewables
  except biomass

Ministry of Mining and Energy Minister

• Request for status of privileged power producer

• Power plants that use comunal waste

Privileged Power Producer

• Power plants that use at least 80 of biomass

• Cogeneration up to 10 MW

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Market Model for RES-E
Feed-in tarriff
Cost of RES-E Cost of balancing
Power Purchase Agreement
Electric Power Industry of Serbia (EPS)
Supplier for Tariff consumers
Regulatory Energy Agency
Privileged Power Produces
Payment for RES-E
Electricity
Price of electricity for tariff consumer
Consumer
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Feed-in tariffs adopted in Decembre 2009
Power Plant Type Installed Capacity (kW) Feed-in tariff (c/kWh)
Small Hydro Power Plants (up to 10 MW)
1.1 Up to 500 kW 9,7
1.2 500 kW - 2 MW 10,316 1,233?
1.3 More than 2 MW 7,85
1.4 Existing infrastructure Up to 2 MW 7,35
1.5 2 MW 10 MW 5,9
Biomass Power Plants
2.1 Up to 500 kW 13,6
2.2 500 kW - 5 MW 13,845 0,489?
2.3 More than 5 MW 11,4
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Feed-in tariffs
Power Plant Type Installed Capacity (kW) Feed-in tariff (c/kWh)
Biogas Power Plant
3.1 Up to 200 kW 16,0
3.2 200 kW - 2 MW 16,444 2,222?
3.3 More than 2 MW 12,0
Power plants that use landfill and sewage gas 6,7

Wind 9,5
Limit for total installed wind energy 450 MW Limit for total installed wind energy 450 MW
Solar Photovoltaics 23
Limit for total installed solar PV 5 MW Limit for total installed solar PV 5 MW
Geothermal energy 7,5
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Feed-in tariffs
Power Plant Type Installed Capacity (kW) Feed-in tariff (c/kWh)
CHP on fossil fuels
1.1 Up to 0,2 MW 10,4
1.2 0,2 MW to 2 MW 10,667 1,333?
1.3 2 MW to 10 MW 8,2
1.4 Existing infrastructure Up to 10 MW 7,6
Power plants that use communal waste
2.1 Up to 1 MW 9,2
2.2 1 MW to 10 MW 8,5
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Investment incentives applicable to RES projects
INVESTMENT INCENTIVES In case of investments in
production facility, Government approve grant
between 2000 and 5000 euros per new job creation,
minimal investment value is within the range of 1
and 3 million euros, whereas the minimal number
of new jobs is 50 An investor that invests in
fixed assets, i.e. in whose fixed assets other
entity invests over 600 million RSD (6.8 million
EUR), and uses these assets for conducting
business in Serba and during the investment
period additionally recruit at least 100 people -
shall be exempted from corporate profit tax
payments for the period of 10 years
proportionally with the investment made TAX
CREDITS A tax payer that made profit in newly
established business unit in an underdeveloped
area will receive a corporate profit tax
reduction in the duration of two years,
proportional to the share of such made profit in
total profit of the company ACCELERATED
DEPRECIATION OF FIXED ASSETS This incentive is
provided for fixed assets that are used for the
prevention of air pollution, water and soil
pollution, noise reduction, energy savings,
forestation, and collection and utilization of
waste for industrial raw materials and
fuels FOREIGN INVESTMENTS INCENTIVES The law on
foreign investments stipulates free import of
goods that are the foreign investors nominal
capital (founding capital) providing it fulfils
acts regulating environment protection. Import of
equipment as the founding capital of a foreign
investor, except for passenger motor vehicles and
game gambling machines, is free from customs
and other duties. Besides, a foreign investor and
a company with foreign founding capital are
entitled to tax and customs related deductions in
line with the law