ENERGY 2021

MINISTRY OF MINING AND ENERGY

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INTERVIEW

ENERGY 2021

ENERGY 2021

INTERVIEW

Today, Elektrovat is a company highly ranked in the market regarding power systems, production process control, and automation, as well as stage lighting and mechanics for theater, television, and film studios as its field of expertise.

This is a result of the founder’s constant aspiration to establish a company with professional, expert, and trained staff which guarantees simultaneous implementation of a great number of demanding projects while using the state-of-the-art equipment of renowned manufacturers. Absolute commitment and meeting with the diverse and most delicate technical and business requests of the investors is the greatest advantage regarding competition and this was recognized by the clients.

Elektrovat is classified as a medium-sized enterprise, with 108 full-time employees, while complete production chains include a respective number of reliable subcontractors regarding the electric power and engineering area. Thus Elektrovat possesses quite an enviable capacity regarding production and implementation and it represents a large family employing more than 100 employees during the implementation process of major projects.

Elektrovat is an entirely private limited company and it possesses state of art equipped offices and manufacturing facilities in Belgrade and Čačak (3.400m2) occupying an area of 11.500m2. We are proud of our production facilities, organized and equipped according to the highest European standards.

www.elektrovat.net

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ENERGY 2021

CONTENTS

06 THE SHIFT IS ON WE HAVE 08 THOUGHTFULLY EMBARKED ON DEEP COMMENT

EPS DRIVES 16 MODERN SERBIA’S ECONOMY

ELECTRIC POWER INDUSTRY OF SERBIA (EPS)

TO GREATER 30 ROAD ENERGY SECURITY

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REFORMS

FOCUSED ON ALIBUNAR

NEDA LAZENDIĆ, COUNTRY MANAGER, WV-INTERNATIONAL NBT

ZORANA MIHAJLOVIĆ PH.D., DEPUTY PRIME MINISTER AND MINISTER OF ENERGY AND MINING

NIŠ-SOFIA GAS PIPELINE

GREEN KWH 32 EVERY MATTERS

MILENKO JOVANOVIĆ, TECHNICAL MANAGER AND OWNER AT M&D UNIT D.O.O. BEOGRAD

20 A RELIABLE SUPPLIER LUKA PETROVIĆ, DIRECTOR, ELEKTROPRIVREDA REPUBLIKE SRPSKE

SAVE BUDGET 28 PPPS FUNDS

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WE’RE INCREASINGLY READY FOR ENERGY TRANSITION

NIKOLA RAJAKOVIĆ PH.D., PROFESSOR OF THE UNIVERSITY OF BELGRADE FACULTY OF ELECTRICAL ENERGY, PRESIDENT OF THE ASSOCIATION OF ENERGY SECTOR SPECIALISTS

JELENA TADIĆ, EXECUTIVE DIRECTOR, PPP INVESTMENT

JASMINA POPOVIĆ, MANAGING DIRECTOR OF DNP INŽENJERING

FUTURE BELONGS 22 THE TO GREEN ENERGY

MILUTIN ĐUKANOVIĆ, PRESIDENT OF THE BOARD AT ELEKTROPRIVREDA C. GORE

SAVING MONEY 29 WE’RE AND ENERGY OBRAD TADIĆ, CEO AT SMART ENERGY INVESTMENT KFT, SEI BEOGRAD BRANCH

BRINGS 15 DEDICATION SUCCESS

DRAŽEN PJERANOVIĆ, ELEKTROMONTAŽA KRALJEVO CEO

AT HOME 33 COMPETITIVE AND ABROAD

POWER 24 SOLAR PLANTS - A HOT TOPIC

SYNONYM FOR 34 ENVIRONMENTAL SOLUTIONS

BRANIMIR STOJČEVIĆ, GENERAL MANAGER, BURDOCK CONSULTANCY D.O.O.

CWP GLOBAL

36 NEWS 4

ENERGY 2021

IMPRESSUM ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

PROJECT MANAGERS Biljana Dević b.devic@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

PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica ENERGY 2021 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 Fascimile: +(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 29 ISSN: 2560-4465 All rights reserved alliance international media 2021 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media

THIS PUBLICATION IS FREE OF CHARGE

INTERVIEW

EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs

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ENERGY 2021

COMMENT

THE SHIFT IS ON After many years of fatigue, it seems that the National Plan for Energy and Climate, as well as the forthcoming Energy Development Strategy, signal a more profound shift towards effective energy transition of the EU energy acquis has been below expectations, despite the nudges of the EU and the Energy Community.

It now seems, however, that we are finally moving in the right direction, with the drafting of an integrated approach to national climate and energy goals. Serbia’s new legislative initiative comes after the EU completed a comprehensive update of

Experts note that the ongoing energy transition brings challenges related to the security of supply, employment and energy affordability, but also brings many rewards if properly executed

E

xperts have spent years debating whether Serbia has the potential to leapfrog the energy transition process. Among the “pluses” they’ve noted the availability of renewable energy sources, the potential for regional cooperation in the energy sector and under-utilised human capital. On the other hand, there are also significant obstacles, such as persisting with the policy choice of preserving low energy prices, combined with high energy intensity, the prioritising of energy security, the inadequacy of the utilising of renewable sources, a lack of policy coherence and dependency on external funding.

At least some of these obstacles were recently lifted through the introduction of

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a set of laws aimed at putting the energy transition in motion. They are inspired by the EU, which is considered a global leader in energy transition thanks to it having seized the economic and industrial opportunities offered by this global transformation and developed its own approach to energy competitiveness and security.

This is a significant change, given that Serbia, for many years, exhibited little ambition to tackle climate challenges and devise energy policies that would drive energy transition forward, in line with the Paris Agreement and the EU Clean Energy Package. Several European Commission reports on Serbia noted that the transposition and implementation

its energy policy framework to facilitate the transition away from fossil fuels and towards cleaner energy and delivering on its Paris Agreement commitments to reduce greenhouse gas emissions.

It is important to note that this comprehensive process is not only about the mix of energy resources, digital transformation or emissions. Rather it is a process that envisages deep changes within society.

The toughest part for countries like Serbia is moving away from dependence on lignite. This is a task that analysts describe as “difficult and incomparable to any recently executed reform or transformation by Serbian society”. As noted in the interview with Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović, deciding on the future of lignite is probably the most important decision facing Serbian society, and the whole process will take several decades to complete.

ENERGY 2021

COMMENT

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ENERGY 2021

INTERVIEW

ZORANA MIHAJLOVIĆ PH.D. DEPUTY PRIME MINISTER AND MINISTER OF ENERGY AND MINING

WE HAVE THOUGHTFULLY

EMBARKED ON DEEP REFORMS

The major changes we’ve instigated in the energy sector are connected deeply, and in multiple ways, with overall economic development, while they have a challenging social dimension and impact markedly on international relations and integration processes. These changes are extending beyond the energy sector, and for a country delving into them from a position like ours, they could be considered a national project to a certain extent.

A

ccording to the opinions of experts, abandoning lignite and turning towards cleaner energy sources is a more complex task than any of the reforms we’ve so far gone through. We asked Serbian Deputy Prime Minister and Minister of Energy and Mining, Zorana Mihajlović Ph.D., whether we have the strength for that, given that the structure of our energy sector is largely based on this fuel source?

Energy has been “sleeping” in Serbia for a long time, failing to change fast enough, and those who fail to change and advance in today’s world are left behind. We are only just entering the energy transition process, in the true sense of the word, in 2021 - starting from the legal framework, through the development of strategic documents to the adapting of the investment plan to the kind of energy sector we should have in the 21st century,

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DECARBONISATION

Just as in any country that has a high share of coal in the production of electricity like Serbia does - at about 67% - replacing it is a process that will take decades.

which should be marked by environmental and climate neutrality.

During the past six months we’ve laid the foundations for the fundamental changes that await us. Laws have been adopted on energy efficiency and the use of renewable energy sources, while the Law on Energy was amended, which - together with the previously adopted Law on Climate Change - provided a new legal framework that’s more favourable to both citizens and investors, harmonised with relevant EU regulations and the Paris Climate Agreement.

At the level of planning and strategic concerns, we’ve begun drafting the Integrated National Energy and Climate Plan, which will, coupled with the new energy development strategy, determine the goals and dynamics of change over the next three decades, until 2050. Apart from this, work is underway on a new investment plan that will reflect changes in energy policy, because it is precisely through new investments that we need to achieve this and ensure we have enough energy and more green energy in total production, while the stability of the system will be achieved with the building gas power plants, as opposed to coal-fired ones.

It is undeniable that these changes will lead, like in the rest of the world, to a gradual reduction in the use of coal and its replacement with low-carbon, green technologies and energy sources.

Major investments have been announced in renewable sources, natural gas and improving energy efficiency. What are we awaited in this package?

The new investment plan that the Ministry is preparing, and which is linked directly to Serbia’s energy transition, encompasses projects in all areas of the sector, worth close to 16 billion euros. In the field of electricity, planned investments amount to around 6.6 billion euros, while RES proejcts - primarily in solar power plants and wind farms - are valued at around 4.4 billion euros.

RESPONSIBILITY

COOPERATION

It has been shown that market mechanisms in the energy sector are insufficient and that the state must have a significantly greater role and responsibility, and we will act in accordance with that.

We want energy efficiency to become a national project that includes the joint participation of the state, local governments and citizens.

With the gradual reduction of energy production from coal, it is particularly important for energy security over the coming decades to construct new large and mediumsized hydropower and gas power plants, and to make greater use of renewable energy sources. Plans include, among other things,

When it comes to natural gas, the focal point is the diversification of suppliers, which is essential for gas stability, but also regional connectivity. The goal is for Serbia to be the energy hub of the region in gas, as well as in the electricity sector, where we are building the Trans-Balkan Corridor, and

In order to find ourselves among the winners of transition, to manage its costs and avoid transition risks, we are preparing to act thoughtfully, in a timely and measured manner, adapted to the conditions and potential that we have

for the country to be well connected with all neighbouring states.

We will soon have all the planned projects in oneplace,intheprojectbook,whereallinterested investors will be able to see what our priorities are, what public investments we’re planning and where we expect the active participation of the private sector. With the total value of projects standing at close to 16 billion euros, the participation of public and private investments is almost equal, though the state will be represented more in the sectors of electricity, gas and energy efficiency, while the private sector is expected to have greater participation in mining and renewable sources of energy. One of the goals of the adopting of new laws in these areas was to create a more favourable environment for new investments, in order to utilise the potential that exists in these areas.

the building of new hydropower plants and the revitalising of existing ones, with a total capacity of 3.5 GW, which includes the construction of reversible hydropower plants (RHPP) Đerdap, on the Danube, and RHPP Bistrica, as well as new medium capacity HPPs on the Drina, Ibar and Morava rivers.

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ENERGY 2021

INTERVIEW 10

To what extent is the legislative framework aligned with this desired change?

The four new laws in the field of mining and energy, which were adopted by the National Assembly in April, actually represent the first step in Serbia’s new energy policy.

All four of these laws are aimed primarily at citizens, but they also represent an important incentive for investors, given that they ensure a stable and predictable legal framework for investors, with more efficient administrative procedures and digitalisation in issuing permits and solutions. The share of mining and energy in GDP currently totals about five per cent, but we believe that the contribution of these sectors to GDP could increase to up to 10 per cent with the more dynamic development of these sectors and new investments.

The main goal of the new Law on the Use of RES is to increase the share of renewables in total energy production. The new law introduces, among other things, market premiums instead of the current feed-in tariffs, which are only to be retained for small plants and demonstration projects, in accordance with the EU’s state aid rules. The new incentive system will expose producers to the influence of the market and competition, while reducing costs for citizens and the economy. The new law, as an important innovation, provides for the greater involvement of citizens in the energy transition by introducing the buyerproducer institute. This means that buyers of electricity can install solar panels on the roofs of buildings to produce electricity for their own needs and thus reduce their electricity bills. This law also introduces a ban on the construction of hydropower plants of any type and power in protected areas.

The new Law on Energy Efficiency and Rational Use of Energy is especially important, because we want to raise this area to the level of a national project. This means that we will give citizens the opportunity to become active participants in the energy transition, enabling them to reduce irrational energy consumption in their homes, with the support of the state. Specifically, the state will provide citizens with the opportunity to more easily access subsidies for the replacement of windows, doors, insulation facades and heating systems. The Directorate for Financing and Encouraging Energy Efficiency will be formed

within the scope of the Ministry during June, in order for us also to have budget funds in one place, and these funds will be increased significantly, as will the funds of international financial institutions. The administration and local government units will finance up to 50 per cent of the costs or replacing doors and windows in family houses and apartments, with citizens financing the remaining 50 per cent of those costs. Incentive funds will be allocated through public calls to citizens, in cooperation with local governments. State

Serbia’s ability to follow the EU’s energy and climate goals, and the EU Green Deal, will also depend on the availability of financial support from the EU that’s commensurate with that of EU members that have a high share of coal and a similar level of economic development support will also encompass the installing of efficient biomass furnaces and boilers and gas boilers, which are important for reducing pollution from individual combustion plants which represent - after the transport sector and thermal power plants - the third most significant source of air pollution.

Amendments to the Law on Energy are important due to additional harmonisation with the EU’s acquis communautaire, the security of supplying energy and energy sources, and the introduction of new participants to the energy market. These amendments to the law also introduce energy-endangered customers for heating energy, alongside the existing categories of endangered customers of electricity and gas. Our expectations are that the current total of 70,000 endangered electricity buyers will increase to around 200,000, while that number could reach around 20,000 in the field of heating energy.

When it comes to mining, the value of confirmed mineral reserves in Serbia totals around 200 billion dollars. Amendments to the Law on Mining and Geological Research should enable the efficient and sustainable use of these resources, which implies the highest environmental protection standards.

We want to show that in Serbia we can have not only the world’s largest mining companies, but also the best world practice, in terms of sustainable and green mining. This means that all mining activities, in addition to contributing to economic growth, must comply fully with domestic regulations in the field of environmental protection, as well as with the highest European and world standards.

The plan related to energy efficiency also applies to every household in Serbia and relies on the coordination of national and local authorities. How prepared are local governments to take on their part of the task?

Local governments have an important role to play, not only in financing energy efficiency measures, but also in setting priorities and managing projects, because it is actually local governments that will determine which measures they will seek support for, because they can also encompass the replacing of window frames, the insulating of facades and the installing of biomass or gas boilers.

They will also use their documents to determine the conditions for citizens to apply, and to announce public calls for citizens, but also for companies that deal with energy rehabilitation.

We are taking the first step towards citizens this year, through a pilot project in which we expect the first applications to

come from cities and municipalities that have already envisaged funding to increase energy efficiency. I believe that, following the successful implementation of the pilot project, other local governments will also recognise their interest, allocate funds in their budgets for these purposes for the next year and be much more active in this area. Our plan is for the average annual investment in the field of energy efficiency to be around 150 million euros from next year, with greater support from international financial institutions.

If we know that Serbia today consumes about four times as much energy for the production of the same unit of product, that houses and apartments without adequate insulation consume up to four times more energy, and that citizens thus pay higher bills, and that all of this has a negative impact on the environment and climate change, then it’s clear why we want energy efficiency to become a national project in which we will participate jointly, as the state, local governments and citizens.

What are the most important goals related to the restructuring of public enterprises in this domain?

In order to be able to implement the new investment, it is especially important to reform the largest public companies, EPS and Srbijagas, which should carry the large projects that are backed by the state.The Government of Serbia has adopted reorganisation plans, but for now this process has progressed further within EPS. The distribution system operator, Elektrodistribucija Srbije, is beginning to function essentially - and not only formally - separate from EPS, while Srbijagas still has a lot of work to do to separate the Transportagas and Distribucijagas Srbija enterprises from the Srbijagas framework.

However, given that implementing reforms in Srbijagas remains one of the important preconditions for opening of EU accession negotiation Chapter 15, I expect us to make more tangible progress in the coming period, with the support of the Government.

What challenges do we face when it comes to diversifying the gas supply area?

Serbia finally receives another direction of gas supplies this year, but it is important for the energy security of our country, as well

Key goals of the energy transition process must be met: ensuring energy security and a secure energy supply, and the full coverage of Serbia’s electricity needs with its own production as the region, to also have diversification of suppliers. Our goal is to have gas connectivity with all neighbours and for Serbia also to be the energy hub of the region in this sector.

Funding has been secured for construction of the Niš-Dimitrovgrad gas interconnection, and selection of a contractor for works that will begin this year is underway, so this gas pipeline will become operational in 2023.

The gas interconnection with Bulgaria will provide the possibility of supplying Serbia

with natural gas from LNG terminals in Greece, as well as from the TAP and TANAP gas pipelines that form part of the Southern Gas Corridor that transports gas from the Caspian and Middle East regions.

Likewise, Serbia is involved - together with representatives of Israel, Greece, Cyprus, Bulgaria, North Macedonia, Hungary and Romania - in the work of the ad hoc working group for improving energy cooperation and exploring the possibilities of the East-Med pipeline, which also sent a joint letter to the EU Energy Commissioner with the aim of gaining support for financing the project. The realisation of this project would enable gas from gas fields in the eastern Mediterranean to reach Serbia, via Cyprus, Crete, Greece and Bulgaria, which would be very important for the long-term energy security not only of Serbia, but also of the region.

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ENERGY 2021

NIKOLA RAJAKOVIĆ PH.D., PROFESSOR OF THE UNIVERSITY OF BELGRADE FACULTY OF ELECTRICAL ENERGY, PRESIDENT OF THE ASSOCIATION OF ENERGY SECTOR SPECIALISTS

INTERVIEW

WE'RE INCREASINGLY READY FOR ENERGY TRANSITION The key factor in the success of implementing energy policies and plans is the accepting of the paradigm shift in the development of the energy sector among key social actors - policymakers and political decision makers. Joining the EU Green Deal enables the region’s countries to develop a modern, environmentally friendly, competitive and regionally integrated energy system, and to attract foreign direct investment in industrial production, especially production intended for export.

T

he countries of the Western Balkans lag behind in energy transition, and now - with the establishing of the European Green Plan - the European Union has set them the new challenge of harmonising their own national energy and climate plans.

How ready is Serbia for that challenge at this juncture?

Serbia is, in my opinion, increasingly more ready for the challenges imposed by the objective situation in an electricity sector that’s dependent on lignite, on the one hand, and, on the other, more ready to the activities arising from the Green Deal, which should result in a new National Energy and Climate Plan.

The reasons for this mild optimism are primarily in the domain of changing prevailing attitudes and considerations in both professional circles and the wider social sphere. Until just a few years ago, only isolated individuals were speaking about the necessity of decarbonisation (abandoning fossil fuels, primarily meaning lignite in our country), or the need to switch to Renewables. This is no longer an individual opinion , but rather, I would say, the dominant reasoning. Shifting consciousness in the

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energy sector is an imperative due to the poor quality of air in cities and revelations about the negative impact of the operations of thermal power plants on the health of the population and on the environment as a whole. An additional reason for optimism is provided by the regulatory framework, as

a set of new laws in the energy sector has put a meaninhgful limit on future contours in this sector. And finally, the last reason is the growing interest in constructing renewable sources among investors.

And in spite of declarative commitments in international forums, energy transition still hasn’t been broadly accepted as the backbone of the energy strategy in Serbia. The results of the 2020 survey of the World Economic Forum, in which the Energy Transition Index (ETI) ranks the readiness of countries to implement the decarbonisation process, indicate a low level of readiness to implement this complex process among the countries of the region. Of the 115 countries ranked, Serbia is in 100th place, and it can thus be seen that the decarbonisation process isn’t recognised as a development opportunity.

The key factor in the success of implementing energy policies and plans is the accepting of the paradigm shift in the development of the energy sector among key social actors - policymakers and political decision makers. Joining the EU Green Deal enables the region’s countries to develop a modern, environmentally friendly, competitive and regionally integrated energy system. The construction of this kind of energy infra-

structure will quickly lead to the initiating of essential investments in the modernisation of energy and enable the attracting foreign direct investment in industrial production, especially production intended for export.

Strong dependence on fossil fuels, low energy efficiency, outdated infrastructure and problematic environmental protection - how accurate a description of Serbia today is this?

This is an almost completely accurate description of the energy sector in Serbia.

Specifically, it is common knowledge that the energy sector is certainly among the most important economic branches in Serbia.

The concept of today’s energy was, until recently, based on the economic paradigm of the 1970s, which is characterised by the energy-intensive and inefficient use of energy in the heating and transport sectors, and among the end users of electricity. In the generating of electricity Serbia relies predominantly on low-efficiency thermal power plants fuelled by local lignite. That’s why the energy sector is such a major polluter of air, water and land at the local and regional levels, and why it endangers the environment and human health. The energy sector in the region also has a dominant impact on emissions of greenhouse gases (GHG), with a share in total emissions exceeding 70%. Alongside all of this is the fact that some of the thermal power plants are more than 60 years old, and that Kostolac B2 (as the youngest unit) has been in operation for over 30 years, that some substations are over 50 years old and the age structure situation is similar with many transmission lines. This leads to the conclusion that equipment is outdated and that the extremely old infrastructure is difficult and expensive to maintain. So, the situation must change and we must embark on the energy transition journey!

The energy structure of Serbia today cannot satisfy the requirements of sustainable development in the 21st century. These are also the reasons why Serbia is lagging behind in the energy transition.

How well does the Low Carbon Strategy of the Republic of Serbia respond to the challenges of decarbonisation; and what is necessary to ensure its implementation?

An important characteristic of the energy transition over the last few years has been the speed of change... A MWh produced today at a solar power plant in our region is significantly cheaper than a MWh produced at a coal-fired thermal power plant!

The strategy was adopted in 2017, and given that technological changes have come very fast in recent years and implementation hasn’t progressed very far, it is certain that we will have to amend this document. Already during the course of 2021, all countries of the region should draft several strategic documents for sustainable, low-emission development. We can thus expect the adoption of the Strategy for Adaptation to Climate Change and Low-Emission Development, with a proposal to innovate the goals vis-à-vis the Paris Agreement and the National Energy and Climate Plan (NECP), in accordance with the decisions of the Energy Community.

Where should efforts start when it comes to reducing carbon dioxide emissions, from

individual combustion boilers of citizens or major producers of energy (and pollutants)?

It is necessary to launch the process of reducing carbon dioxide emissions on all fronts simultaneously. It is also important to stress that the electrification of the transport and heating sectors can and must contribute significantly to the decarbonisation process. The transition to electric vehicles, or to transport with green hydrogen as a fuel, are processes that must be encouraged and controlled .Total decarbonisation implies transitioning to an energy system with 100% renewable sources (zero emissions) and no longer represents an energy dream, but rather has been confirmed practically with many examples. It is undeniable that realising this goal globally will not be a simple task, but it can be led successfully with modern technological solutions around system flexibility and the variability of production from wind farms, solar power plants and hydropower plants. We still have to point out here the special importance of energy storage under circumstances where a high share of production comes from Renewables. Storage with the help of pumped hydro storage , with the help of conversion of electricity into heat (through underground heat storage), with the help of conversions of excess electricity into green hydrogen, 13

ENERGY 2021

INTERVIEW

widespread use of utility scale batteries at the systemic level and the use of electric car batteries as a power source (according to the requirements of system operators) provide large technological and technical possibilities for the optimal operation of energy systems.

The demand response , as the cheapest source of flexibility, stands as a particularly important option, while the widespread use of heat pumps enables the almost complete electrification of the heating sector.

In which ways are requirements in the energy sector harmonised with requirements related to the environment?

emission energy systems, environmental aspects are reduced to minimising the impact of wind farms and other power plants on the environment. These new jobs opportunities are of one order of magnitude higher than job losses caused by the thermal energy sector reduction. The economy and citizens must certainly adapt to energy transition processes through more energy efficient use of Renewables in a low-carbon economy, as well as through changing habits to include the intensive use of electric cars, heat pumps etc.

An important characteristic of the energy transition over the last few years has been the speed of change, which is reflected

to data available from the Business Registers Agency - was founded back in 1919. It has gone through several development stages in the process of numerous institutional and organisational changes, only to remain today as an independent professional organisation, and a platform where all parts of the energy sector come together and complement each other in one place, with the task of formulating common objectives.

Serbia has the required academic and applied knowhow in the energy sector. This knowhow has been verified through papers published in recognized world journals and through real practical projects. The successful management of our energy system also confirms that knowhow.

At the traditional 36th ENERGETIKA2021 conference, to be held on Zlatibor mountain from 22nd to 25th June 2021 under the title

Equipment in the electrical energy sector is outdated and infrastructure is extremely old and difficult and expensive to maintain. So, the situation must change and we must embark on the energy transition journey!

MEETING THE GREEN RECOVERY, we will endeavour - through panel discussions and works - to highlight the optimal trajectories of energy transition.

Energy transition implies the process of abandoning fossil fuels and switching to renewable energy sources. The list of Renewables is dominated by the sun and wind, but there are also important hydro potentials, as well as the potential of biomass and geothermal energy. This transition is not a process that ends in a few years, rather it will last a few decades and in essence it is essential to enable a gradual transition of the working population from the fossil fuel sector to the sector of low carbon economy, dominated by Renewables, through the creation of jobs, i.e. through the developing of a sustainable circular economy. In zero14

specifically in the reduction of prices of technologies based on solar and wind energy.

The fact is that a MWh produced today at a solar power plant in our region is significantly cheaper than a MWh produced at a coal-fired thermal power plant!

You recently commemorated the centenary of the work of the Association of Energy Sector Specialists, as a professional organisation in Serbia. How much knowhow does Serbia have in this domain?

The Association of Energy Sector Specialists is one of the oldest, if not the oldest, professional organisation, which - according

How important is digital transformation for this sector?

Digitalisation, or the broader concept of introducing smart grids or smart infrastructure, is a conditio sine qua non of energy transition. The first link in the digitalisation of networks was the smart meter, and today, downstream from the meter, there are smart devices and home appliances equipped with IP addresses that participate in the regulating of consumption (an extended version of the Internet of Things), and upstream from the meter, at the level of substations and plants, are concentrators, sensors etc., all with the task of monitoring and optimal operation of the electricity network, and with maintaining operational safety.

BUSINESS

DEDICATION BRINGS SUCCESS

ENERGY 2021

DRAŽEN PJERANOVIĆ, ELEKTROMONTAŽA KRALJEVO CEO

Energotehnika Južna Bačka took over the majority package of shares of Elektromontaža Kraljevo last year, thereby creating the conditions for a bolder and more aggressive approach to the market beyond the borders of Serbia, both in the region and across the EU Serbia and one of the leaders of the region.The greatest development potential at present is reflected in this acquisition, because by complementing each other, with both the human and technical resources of the two companies,

We cover all areas in the electricity sector for voltage levels from 0.4 to 400 kV, i.e. for all voltage levels used in this part of the world

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t this Kraljevo-based company they are proud of all of their projects, and particularly the recently completed electrification and management of the Lipak and Železnik tunnels on the Belgrade Bypass, as well as the adaptation of the power supply and control system at the HPP Đerdap 1 shipping locks...

You took over the position of CEO of Elektromontaža in January this year. Where and in which areas do you see the company’s greatest development potential at the moment?

At the end of last year, Elektromontaža became part of the Maneks group, which also includes Energotehnika Južna Bačka in its composition. This group thereby became the absolute leader in the field of electricity in

we have strengthened the ambition to make a bolder and more aggressive approach to the market beyond the borders of Serbia, both in the region and across the EU. Elektromontaža is included in the largest current projects in the region. Do you cover all areas?

The company has so far also participated in numerous projects for the construction and reconstruction of electrical power facilities, such as transmission lines and substations with voltage levels of up to 400 kW, hydropower plants, thermal power plants and connecting renewable energy sources (wind farms, solar power plants, small hydropower plants) to the distribution and transmission network. The company is capable of implementing all of these projects according to the turnkey principle.

In addition to that, we also specialise in works related to securing the power supply,

control and monitoring of complex industrial and other infrastructure systems. One example of this is the recently completed electrificitation and control of the Lipak and Železnik tunnels on the Belgrade Bypass, then the adaptation of the power supply and control system at the HPP Đerdap 1 shipping locks etc. We can thus say that we cover all areas in the electricity sector for voltage levels from 0.4 to 400 kV, i.e. for all voltage levels that are used in this part of the world.

You have very ambitious plans for the company’s further development. What are you counting on in particular - the expertise and commitment of employees, experience of the most demanding projects or something else?

Elektromontaža and Južna Bačka represent examples of successful privatisation, and given that I actually come from the Južna Bačka system, it is certain that applying this company’s recipe for success will bring additional value. Moreover, Elektromontaža is a company that has existed on the market for 58 years, which has resulted in numerous references in the electricity sector. This many decades of experience also represents the knowledge accumulated in the company, which enables the development of young professionals through new, more challenging projects. By combining the knowhow, experience and dedication of all employees, I’m convinced that we have new and even greater successes ahead of us.

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NEW POWER PLANT CONSTRUCTION PROJECTS PROGRESSING

MODERN EPS DRIVES SERBIA'S ECONOMY The key to improving the complex system of public enterprise Electric Power Industry of Serbia (EPS) is represented by investments in the modernisation of capacity and new projects. EPS investments reached almost half a billion euros in 2020 alone, while its development projects over the last five years were worth approximately two billion euros

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series of EPS investments that were previously launched continued to be implemented in 2021, while completely new projects are set to commence soon. EPS’s focus also includes hydro projects, thereby addressing obligations to increase the share of renewable energy sources in the country’s energy mix.

On 17th May in Bosnia’s Republika Srpska, near Foča, a new foundation stone was laid for the Buk Bijela Hydro Power Plant on the River Drina, which represents an example of EPS’s new investment projects.

“Together with Electric Power Industry of Republika Srpska (ERS), after decades of waiting for this project, EPS is participating in the construction of three new HPPs, with a capacity of 211 megawatts, as a foreign investor with 51 per cent ownership of company HES Gornja Drina. This investment of 520 million euros will bring green kilowatt-hours and increase the energy security of both Serbia and Republika Srpska,” say EPS officials. “The project has been prepared thoroughly, with respect for legal and technical procedures, domestic laws and international standards.

The idea that has been discussed for more than 40 years is now finally being put into motion. The plan is for HPP Buk Bijela to generate power of between 93.5 and 114.5 MW, with projected annual production of up to 355 million kilowatt-hours. The laying of the foundation stone marked the start of preparatory works on the construction of this hydro power plant, in which EPS and ERS will jointly invest around 250 million

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euros, proportionate to their respective ownership stakes of 51 and 49 per cent in HES Gornja Drina.

According to the assessment of Serbian Prime Minister Ana Brnabić, “Construction of HPP Buk Bijela on the Drina represents a fresh start for the relations between Serbia and Republika Srpska but also for the entire region and shows how to work together in the interest of future generations for whom borders will not affect jobs, capital, projects nor survival. This is a project that opens many doors and creates many possibilities. The construction of HPPs Buk Bijela, Foča and Paunci contributes to sustainable economic growth, social development and environmental protection”.

Generating green energy is a part of a century-long tradition of EPS, and green energy is today generated at 15 hydro-

electric power plants with a capacity of 3,015 megawatts, which is 38 per cent of EPS’s energy potential. The modernisation of existing hydro capacities is continuing.

With the generation unit revitalization, the power generated by the largest hydro power plant in Serbia, Đerdap 1, will be increased by approximately 10 per cent, whilst also extending its lifetime for 40 years. The plan is for works on the final, sixth phase to commence this year. Following completion of the revitalisation of the last generator, EPS’s pearl on the Danube will produce clean, “green” electricity with a capacity of 1,140 megawatts. Total investments in this project will exceed 180 million euros. The next job will be the revitalisation of all 10 generators at HPP Đerdap 2, which will increase the power output by around 50 megawatts.

The modernization of the navigation lock

at Đerdap 1 HPP is currently ongoing, while preparations have also commenced for the renovation of the lock at HPP Đerdap 2. Both projects are being implemented with the help of the EU and have a combined value of 60 million euros.

EPS also isn’t lagging behind when it comes to projects related to wind and solar energy. Preparations are underway for the construction of the first EPS wind farm, with a capacity of 66 megawatts, in Kostolac.

The project is worth around 100 million euros, with a total of 20 wind generators to be mounted on the closed cast mines and damp sites of Kostolac TPPs-OCMs. This wind farm is expected to produce about 150 million kilowatt-hours annually, which is sufficient to supply about 30,000 households.

There is also a plan to build a 9.95 MW solar power plant covering an area of about 15 hectares on the landfill site of the former Ćirikovac Mine, near the settlement of Petka.

The project has an estimated value of around 11 million euros, while the completed photovoltaic power plant will produce around 12.9 million kilowatt-hours of electricity annually. Also ongoing is development of the project to construct a larger solar power plant, with a capacity of 97.2 megawatts, on the existing ash and slag dump of Srednje Kostlačko Ostrvo.

EPS is also considering other new projects, such as the possibility of building solar power plants on the ash dumps of TPPs Morava and Kolubara. The company

has announced a tender for analysing conditions for the construction of these two solar power plants with a capacity of 9.9 megawatts each.

Ever more development and strategic projects represent good news, not only for the largest energy company in Serbia, but also for the domestic economy and the large number of Serbian companies that are engaged in the implementation of these EPS investment projects. Domestic companies are participating in the implementation of works worth 120 million euros just on the single project to construct the desulphurisation plant at TPP Nikola Tesla B, which is worth 210 million euros.

“EPS doesn’t only strengthen the national economy with its revenue generated and payments made to the state budget, but is also the country’s largest employer, not only in terms of the number of employees, but also because it engages the whole of the Serbian mechanical engineering sector and supporting companies that work on overhauls and provide spare parts,” says Jelica Putniković, analyst and editor of the Energija Balkana portal. “Without EPS, or without coal mines, thermal power plants

and hydro power plants, most of these companies would be left without work. The idea of shutting down thermal power plants and mines would have the direct consequence of around 17,000 EPS employees losing their jobs, while many more would be indirectly left jobless, because about 45,000 people are engaged annually through construction companies.”

According to EPS statistics, around 150 domestic companies from the mechanical engineering, electrical and construction sectors work for EPS’s thermal and mining sector, with about 200 million euros a year going to those companies. Local companies participate in all EPS projects. This is very important for the growth of the domestic economy, because EPS has a direct impact on GDP growth totalling three percent at the annual level, while contributing another three per cent indirectly, through the construction sector and other branches.

Thanks to the production of electricity from all resources and the implementation of environmental protection projects, EPS is creating a sustainable energy balance that ensures the significant competitiveness of the Serbian economy.

ZelEPS FOR THOSE WHO ACT RESPONSIBLY TOWARDS THE ENVIRONMENT Environmental protection and increasing the share of renewable energy sources in the electricity generation mix are important parts of the EPS strategy. Two years ago, EPS started its pioneering sales of “green” energy to customers on the free market. That is the energy generated at the hydro power plants of EPS,, with every kilowatt-hour from the ZelEPS package having a guarantee of origin. “Green” energy sold in 2020 with a guarantee of origin was ten times higher than the amount sold in 2019.

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INTERVIEW

ENERGY 2021

ENERGY 2021

INTERVIEW

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LUKA PETROVIĆ, DIRECTOR, ELEKTROPRIVREDA REPUBLIKE SRPSKE

A RELIABLE SUPPLIER ERS, Elektroprivreda Republike Srpske, is the backbone of the country’s economic and social development and, as such, has a serious approach to the community, its owner, the government and consumers

Elektroprivreda Republike Srpske has the lowest electricity price in the region, and this unrealistically low price has to be compensated by exports. However, the social sensitivity of this arrangement impacts the investment cycle because the company’s revenues are so low due to the massive subsidy to households that the amount that remains for investment in new projects is insufficient.

Our challenge is to finally start treating electricity as a commodity, and to invest the revenue from sales in the construction of new facilities using renewable energy sources. While our concern for consumers remains, and the price of electricity in Republika Srpska will continue to be much lower than the market price, we must move towards European principles and adopt regular standards.

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esides increasing production from renewable sources and improving energy efficiency, our business priorities include regular supplies to consumers, development of the energy sector, environmental protection, and reform and reorganisation of production.

For a quarter of a century, ERS has been playing an exceptionally important role in the development of Republika Srpska.

Elektroprivreda carries great responsibility and an obligation to provide all customers with a reliable, continuous and high quality electricity supply, respecting the principles of business competitiveness and meeting the prescribed standards. Our social responsibility is enormous and some-

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Elektroprivreda Republike Srpske has the lowest electricity price in the region and we compensate for this unrealistically low price through export times a special ballast, because it requires long-term success, serious strategy and planning. We must balance two extremes to enable the successful operation of the company: on the one hand a free market and competitive principles, and on the other hand the customer, who is the centre of our attention with his budget, which at present assumes a standard adjusted price of electricity that is far below its market value.

All companies in the region have problems with losses in distribution. Are there any solutions for this?

Distribution losses are an important issue to which distribution companies and the system as a whole have paid close attention. We have managed to reduce network losses by about six percent in a few years by implementing measures under the Unified Operational Plan for Reducing Distribution Losses, which is an important result overall.

This reduction was realised primarily in commercial losses, which are usually due to unauthorised consumption of electricity.

All electricity distribution companies, have reduced their losses to a level approved by the national energy regulator, except for Elektro Krajina, where the average annual losses are still above the approved level.

In the coming period, we need to work on reducing technical network losses, which requires considerable investment in renovating, constructing and modernizing the distribution network. The best example of success in reducing distribution losses to technically permissible limits is Elektro Doboj, which has reduced losses to the level of 5% by systematic measuring and continuous investment in the network.

ERS plans to invest 386 million KM in rehabilitating the distribution network over the next ten years. We expect that in all companies losses will be at the level of those in countries of the European Union, i.e. between 4.5% and 6%.

What are your strategic goals for the coming period? Can you tell us more about that?

At the beginning of the year, the Republika Srpska adopted the Law on Electricity and a law to regulate the gas market. This is a law that is rightly seen as a reform because, due to the high degree of harmonisation with the legislation of the European Union and directives related to the energy sector, it has made the changes binding. Our strategic goals fit with the given guidelines, i.e. to switch to green energy and eliminate coal from electricity production by 2050. We must get used to producing electricity without thermal power plants, and that is the process that awaits us over the next decade.

Elektroprivreda Republike Srpske has developed several projects based on renewable energy sources. We are already building some of them and others are being prepared; these are projects on which the growth and development of the energy sector will be based.

What exactly do you have in mind when you talk about 1.5 billion KM of investment?

ERS’ priority is to build facilities that use renewable energy sources, and this is planned in the energy sector development strategy, but also in the company’s ten-year development plan. The three-year business plan envisages investments worth 1.5 billion KM. EPRS is currently engaged in five capital projects: Dabar

Hydroelectric Power Plant, Gornja Drina hydropower system, Bistrica Hydroelectric Power Plants, Hrgud wind farm and Trebinje solar power plant.

The emphasis is on continuing construction and completion of HPP Dabar with an installed capacity of 160 megawatts. We have completed preparatory works and the main works are underway. This will

behind this project, and after 60 years of planning, talking and looking for investors, this project has been successfully launched and will certainly be successfully completed.

The third important hydropower facility is at Bistrica. ERS has signed a works contract worth 102 million euros with the well-known Chinese company AVIK, and the power plants will be built on a turnkey

We have to get used to producing electricity without thermal power plants and that is what awaits us in the next decade

basis. ERS is also determined to invest in wind farms, and in that regard a project is ready for the Hrgud wind farm with an installed capacity of 50 megawatts. KFW Bank has provided 64 million euros for this, the money is at our disposal and at the end of this year we expect the selection of contractors.

The project for the Trebinje I solar power plant is also important. With a capacity of 73 megawatts, it will produce 100,000 megawatt hours of electricity per year for the system. This will be the largest solar park in the Balkans and of interest to a large number of investors.

This is a project that required an enormous preparation, which Elektroprivreda has successfully completed.

make a large contribution to increasing production.

For Elektroprivreda Republike Srpske, the construction of the Gornja Drina hydropower system is of exceptional importance.

This will be owned 51% by Elektroprivreda Srbije and 49% by Elektroprivreda Srpske.

In mid-May an official start was made on preparatory works and delegations from Serbia and Srpska attended a ceremony of laying the foundation stone. Two governments and two power companies are

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MILUTIN ĐUKANOVIĆ, PRESIDENT OF THE BOARD AT EPCG

THE FUTURE BELONGS TO GREEN ENERGY Besides guaranteeing a stable production and supply of electricity for households and industry, EPCG has had a leading role in the economic development of Montenegro for almost a quarter of a century.

jects, such as HPP Komarnica, installation of an eighth unit at HPP Perućica, the Gvozd wind farm on the Krnovo plateau and a solar installation on Briska Gora above Bar. We cannot give up any thermal energy source that gives stability to our electricity system, but through the ecological reconstruction of TPP Pljevlja, which should start soon, we will make sure that strict European standards are met by reducing pollution and the negative impact on the environment.

With fruitful and constructive cooperation with surrounding complementary systems, this is what, will enable EPCG to maintain its leading position and enable more intensive economic development, to the satisfaction of our customers and all the people of Montenegro.

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o future project will be possible without comprehensive analysis, public debate and high quality solutions based on environmental protection. There is no need to doubt that for a moment, and we will confirm it by rapid action, announces Mr Đukanović.

Do you manage to meet all the demands and needs of your customers?

Energy is essentially a strong support for the development of the economy and society as a whole. If we start from that, then I can say with satisfaction that EPCG, the Electric Power Industry of Montenegro, inherited a leading position, from the very beginning in 1910 with the first diesel power plant in Cetinje.

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Through the environmentally friendly reconstruction of TPP Pljevlja, which should start soon, pollution and the negative impact on the environment will be reduced However, today as a company we are at a turning point. We have built no new energy sources since 1982, so it is time to seriously increase our installed capacity and base our future growth and development on the development of so-called green energy.

I’ll take this opportunity then to announce the imminent start of several important pro-

Your focus is on constantly improving your business while respecting and applying the highest professional and ethical standards.

Is this possible without a negative impact on the environment?

Preservation of the environment or the synergetic relationship between our energy needs and environmental demands is our first priority. So in addition to the project of environmentally friendly reconstruction of the first block of TPP Pljevlja, which involves the application of modern technological innovations and respect for all directives of the Energy Community, and which should begin soon, no future project of Elektroprivreda Crne Gore will be possible without comprehensive analysis and high-quality solutions based on environmental protection.

Your goal is to achieve competitiveness on the European market and actively participate in new market challenges. How will you get there?

Being competitive on the European market and ready for all market challenges means constant investment in people, in modern technologies, and in new energy sources based on so-called green energy. I am deeply convinced that this is a recipe for long-term stability and raising the level of our business references. And that’s what we’ll do. At the same time, we will pay special attention improving our personnel structure and the quality of our staff, because it is known that people are, after all, the greatest resource of any company and the overall basis for creating conditions for development.

We know you always want more and better, but we can’t help but ask if you’re happy with the company’s current level of digital transformation?

Digitalisation is an important aspect of business. EPCG has recently been paying great attention to digitalisation and in that sense, some important projects such as our billing and smart metering system have been introduced.

Communication and security equipment has been developed, customer service has been launched, etc. I am generally satisfied, but as a person for whom information technology is a professional, narrower speciality, I am aware of how fast everything is changing, so we have to follow modern trends and introduce new solutions in that area as well. Without it, business processes are much slower, and that is what we least need.

We must provide quality IT support for organising our work, implementing projects, good communication between staff and with management, a more active flow of ideas and so on.

Montenegro is on its way to the EU, which has very strict criteria and standards. Do you think you can satisfy them?

EPCG has been certified for ISO 9001-Quality Management Systems for some time; ISO

14001 – Environmental Management Systems and ISO 45001 – Occupational safety and health management systems, have been awarded to us by one of the world’s most prestigious certification companies, SGS based in Geneva.

This ranks EPCG among modern European companies that base their business on the application of international standards. As a company, we have fully complied with all criteria and standards in the field of business quality, safety and health at work and environmental protection and socially responsible business.

Do you think that the electricity systems of Serbia and Montenegro are compatible and that they would develop even faster if they improved cooperation?

I recently spent several days on a working visit to Belgrade, and this was the main topic of conversation with senior officials of the Government of the Republic of Serbia and with the EPS management. There is a common and unequivocal assessment that the cooperation of electric power systems in the region is the way to faster development and achieving full energy security.

The electricity systems of Serbia and Montenegro are definitely complementary and compatible systems and I am sure that joint investment and cooperation in new projects, especially in the field of green energy are the way to full exploitation of huge energy potentials, especially the rivers of the Black

We have complied with all criteria and standards in the field of business quality, safety and health at work, environmental protection and socially responsible business Sea basin, Komarnica, Piva and Drina. I am pleased that a willingness to cooperate is present on the other side too.

How do you assess the situation in the region, which faces similar challenges in the energy transition?

I think that a submarine cable between Italy and Montenegro is a great chance for the development of a region that is rich in renewable energy resources. Energy security is essential for everyone in the region and that is why we must base our development on green energy, which is particularly interesting and to which the future belongs. This is, I would say, the fastest and best way to overcome energy poverty, which the countries of Southeast Europe are especially prone to.

It seems to me that everyone in the region is aware of that and that they are planning their energy development in a long-term direction of switching to renewable energy sources. We simply must not miss modern trends in energy, we must meet energy needs, but also respect strict environmental standards.

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MAJA TURKOVIĆ, VICE-PRESIDENT FOR SERBIA; NIKOLA STAMENOV, DEVELOPMENT DIRECTOR; VLADAN RANKOV, COMMERCIAL DIRECTOR FOR CWP GLOBAL

TEAM FOR A CLEANER FUTURE CWP Global is one of the largest investors in wind farms in Serbia, and known worldwide for large and innovative renewable energy projects.

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erbia has the potential to develop over 4 GW of green projects in the next ten years. Faster than we imagined, we will see a large proportion of green energy in our energy mix Can you briefly introduce us to your company?

Maja Turković: CWP Global was established in 2007 as a result of our passion for

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alternative energy and the opportunities that have emerged in Southeast Europe for renewable energy projects. In a short time, we have become the most successful developer in the region and recognizable for the development of the largest wind farms in Serbia and Romania. In Serbia, we have developed the largest wind farm Chibuk 1, with an installed capacity of 158 MW, which started operating in 2018 and is now owned

by the consortium Masdar, Taaleri and Deg. The 600 MW Fantanella project in Romania, which became the property of CEZ, was put into operation in 2012, but is still considered the largest onshore wind farm in Europe.

We have also been working since 2008 in Australia, where we have successfully built 2 GW projects and today we are the largest independent producer of electricity from renewable sources. Thanks to the innova-

tion of our team, we were among the first to introduce successful business models of cooperation for our projects such as corporate power purchase agreements (PPAs) and strategies for direct sale of electricity on the market. In addition to the unique Sapphire hybrid project (270 MW wind, 165 MW solar and 35 MWh of batteries), our company is globally recognized by the AREH (Asian Renewables Energy Hub) project. With an area of 6.5 thousand kilometres in the uninhabited part of Western Australia and an estimated investment value of USD 36 billion, this hybrid project of 26 GW of wind and sun, which will be used to produce green hydrogen, is considered the largest energy project in the world.

In Southeast Europe, in Serbia, Bulgaria and Romania, we are today developing a portfolio of projects with a total capacity of 1.4 GW, of which a total of 500 MW is in Serbia. Our team in Belgrade is constantly growing and today we have 14 highly educated and motivated employees who work hard to realise our projects.

Serbia has a law on renewable energy sources, it has investors and a serious capacity of renewable energy in various stages of development. Are we missing anything to take a major step forward?

Maja Turković: The new Law on Renewable Energy Sources is the best signal to investors to invest in the development and construction of power plants that use renewables.

The law gives a clear signal that Serbia is ready for a radical energy transition, and that faster than we had imagined we will see a large proportion of green energy in our energy mix. According to our estimates, Serbia has the potential to develop over 4 GW of green projects in the next ten years.

Regulations are being drafted to enable the implementation of this law, which we expect in the near future. This will complete the regulatory package that will enable investment and integration of a large capacity from renewable sources into our electrical system and on the electricity markets.

What has changed is that technological development and the declining trend in the cost of wind turbines and photovoltaic systems have led to a large drop in production costs. The profitability of a wind or solar

Maja Turković

Besides Vetrozelena, we expect to launch a couple of large wind farm projects in Serbia and the region in the coming period power plant today no longer depends on subsidies or incentives from the state. The future of renewable energy is the market. And our company is ready for market competition.

The key to integrating large renewable capacity is to increase the transmission and interconnection capacity of the grid, to avoid congestions, given the high pressure on the transmission system operator with many connection demands. Equally important is market coupling into single prices zone which would enable development of a liquid intraday electricity market.

CWP Global is one of the largest investors in wind farms in Serbia. What projects are you currently working on?

Nikola Stamenov: Since 2019, we have started a second cycle of constructing wind

farms in Serbia. After the successful completion of the Chibuk 1 project, we are today in full swing developing the 300 MW Vetrozelena project. This wind farm in Pancevo is worth over EUR 300 million, and when the project is put into operation at the end of 2024, the energy produced here will be enough to supply over 200,000 households. In addition to Vetrozelena, we expect to launch a couple more large wind farm projects in the country and the region in the coming period.

CWP Global in Serbia has recently been developing solar (PV) power plant projects Nikola Stamenov: Solar power plants are currently one of the most interesting energy topics in Serbia. One of the reasons is that we as a country have not been able to open our solar potential so far, and the share of about 10 MW of solar in the energy mix of the country is almost negligible. For example, countries in our region such as Bulgaria and Romania have over 1 GW of solar, both large projects and small ‘on the roof’ projects. But thanks to recently adopted regulations, we expect a big boom in Solar in the country, and 25

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unrealistic it may sound. This is the question of all questions, a question of survival, and that is why we at CWP Global have a sense of great responsibility but also of pride in being part of this great and most important revolution - the green revolution.

How does business sustainability policy affect a company’s value?

Vladan Rankov: ESG policy defines the criteria for a company’s sustainable business and has a major effect on the company’s value. When deciding on the price of capital and the value of a company, financiers and investors quantify and monitor the effects of ESG through so-called ratings or scoring. These assessments examine how the company addresses challenges related to

Nikola Stamenov

We at CWP Global have a sense of great responsibility but also pride in being part of this great and most important revolution - the green revolution

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in our view Serbia will receive over 1,000 MW of solar projects in the next few years.

This is great news, both for the economy and energy, as well as for the environment, which is probably the most important thing.

As for our company, in addition to extensive experience in the development of solar power plants in Southeast Europe and especially in Australia, we are currently developing two large solar parks in Serbia with a total capacity of 200 MW. The expected investment value for these two projects is around EUR 145 million. The total energy produced in these solar parks will be enough to supply 80,000 households with clean energy. We expect these plants to start operating at the beginning of 2024.

The profitability of a wind or solar power plant today no longer depends on subsidies or incentives from the state

Serbia has an important task ahead of it for improving the environment. How do you see the role of your company on that path?

Nikola Stamenov: You are absolutely right. Like the rest of Europe and the world, Serbia has very little time to stop the devastating climate change that our civilization has unequivocally caused, basing its development and prosperity in the last 100

years on cheap and available fossil fuels.

Our company and the entire renewable energy industry have the task of offering governments, corporations, industry and the population an alternative to fossil fuels as soon as possible, and to help Serbia to be a carbon free society by 2050 like the rest of the world. There is no alternative to this, however ambitious and perhaps

Vladan Rankov environmental pollution, greenhouse gas emissions, climate change, human capital management, the health of its staff, the working environment, etc. Inadequate management causes additional costs for the company in the form of pollution taxes, higher financing costs, loss of productivity, etc. It is estimated that in our industry, 35% of the total value of the company may be called into question by inadequate ESG. This assessment was made by the globally recognized consulting firm McKinsey in its quarterly report in November 2019. CWP Global therefore pays special attention to such issues and addresses these challenges with its own management policy.

NBT AS (NBT) has partnered up with WV International to develop an 800MW portfolio of wind projects in Serbia. The company, which now operates under the name WV-International NBT, has announced that its two Alibunar projects, with a total capacity of 168MW, will come online as early as 2023.

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International, on wind projects in Serbia.

The joint company, which now operates under the name WV-International NBT, has announced that its two Alibunar projects, with a total capacity of 168 MW, will come

V-International NBT has announced its preparations for the first Serbian auctions for premiums, which is set to be held by the end of 2021, as disclosed by the Serbian Ministry of Mining and Energy, says WV-International NBT Country Manager for Serbia, Nada Lazendić You met recently with Serbian Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović. What was the reason? What did you discuss?

Renewable energy company WV-International NBT informed Serbian Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović about the development of its renewable energy investment portfolio in Serbia. She told us that Serbia wants to attract high-quality investments in the energy sector and added that Serbia needs projects to be implemented efficiently, because the renewable energy sector is very important to the country.

Our delegation comprised Norwegian Ambassador Jørn Gjelstad, NBT AS Vice President Magnus Johansen and me, as Country Manager of WV-International NBT. NBT AS Vice President Johansen said that the company wants to contribute to energy transition in Serbia following its extensive experience in wind farm project development in Norway, Ukraine and China, while he added that NBT is very interested in investing in Serbia, which is why the company joined the wind farm projects launched by Windvision (now WV-International).

BUSINESS

FOCUSED ON ALIBUNAR

ENERGY 2021

NEDA LAZENDIĆ, COUNTRY MANAGER, WV-INTERNATIONAL NBT

The two Alibunar projects, with a total capacity of 168 MW, will come online as early as 2023

From our impressive 800 MW portfolio, our current focus is on the Alibunar wind projects, for which the company has just finalised the alternation of the construction permits and aligned the project with the new generation of wind turbines to be installed. We have knowhow and experience, because we has a strong partner - NBT AS (NBT). This Oslo-based wind power developer has partnered with us, WV

online as early as 2023.

By the way, WV-International NBT has also announced that it is preparing for the first Serbian auctions for premiums, planned to be held by the end of 2021, as disclosed by the Serbian Ministry of Mining and Energy. The Government has introduced this supporting mechanism as part of the new set of energy laws that were recently adopted.The alternations are part of the process in which the company is preparing to achieve the most competitive price at the first-ever auction of this kind in Serbia.

What is in your focus now? What is your most important project in Serbia?

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JELENA TADIĆ, EXECUTIVE DIRECTOR, PPP INVESTMENT

PPPs SAVE BUDGET FUNDS PPP Investment is a company that was founded with the aim of applying knowledge and experience from the public sector to the development of public-private partnership models, because many burning issues of citizens at the local level can be solved thanks to such partnerships with support during the entire process of selecting a private partner, i.e. up to the signing of a long-term public contract. We can today boast of a large number of projects prepared according to the public-private partnership model and satisfied clients, with whom cooperation is renewed from project to project.

Also testifying to our success is the fact that we are recognised by the Institute of European Regions (IRE), which is a very influential international organisation based in Salzburg and headed by professor Franz Schausberger, a former governor of the Salzburg Region and an advisor to EU Commissioner Johannes Hahn. This organisation brings together European regions, cities and municipalities, but also very influential companies like Palfinger, ERSTE Bank, Canon and others. They honour us in a special way by appointing little me to the Economic Board of this organisation, and we are proud to sit side-by-side with greats of world and European business.

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he advantage of public-private partnerships over the traditional procurement model is that initial reductions in the costs of construction or equipment with the traditional model can lead to higher costs in the usage phase, about which taxpayers have no information.

Is PPP Investment one of the pioneers in the line of work that you do?

Preparations for some of the first projects in the area of energy efficiency, which are still being implemented successfully today, were actually carried out by the PPP Investment team. We provide our clients

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Your work has a major impact on communities. What improves the quality of citizens’ lives?

Many of our small projects have solved numerous communal problems throughout Serbia. When I say “small projects” I’m referring to their financial value, but their economic value to the local population is incomparably higher. Here I’m primarily thinking of the dozens of public lighting projects, projects for the production of heating energy from renewable energy sources and natural gas, urban and suburban passenger transport and municipal waste management projects, the maintenance of streets and roads and many others. The implementation of these projects improves

the quality of life of the local population, and all that without additional costs to the public body, with all the money invested exclusively by a private partner.

When it comes to public investments, taxpayers don’t only pay the price of construction or equipment, but rather such projects cost as much as they will pay for them in their entire lifetime.

Could you give us positive examples of public-private partnerships in practise?

The people of Pančevo today have the most modern passenger transport in the region. This is a project that makes PPP Investment particularly proud One of the shining examples is improved urban and suburban passenger transport services in Pančevo. A serious problem that threatened to leave Pančevo residents without public transport was overcome through the hiring of a private partner, a consortium of domestic operators, which invested in 60 new ecological buses and is obliged to build a new bus station in the near future. The people of Pančevo today have the most modern passenger transport in the region. This is a project that makes PPP Investment particularly proud.

And in the coming period, given the immeasurable importance of energy efficiency, particularly for countries like Serbia, we would like to participate in preparations for an even larger number of projects aimed at improving energy efficiency, along with the ever increasing use of renewable energy sources.

BUSINESS

WE'RE SAVING MONEY AND ENERGY

ENERGY 2021

OBRAD TADIĆ, CEO AT SMART ENERGY INVESTMENT KFT, SEI BEOGRAD BRANCH

Since the launch of its operations in Serbia, one of the main goals of the SEI Beograd branch of company Smart Energy Investment Kft has been to reduce energy consumption and harmful emissions through the reconstruction of public lighting

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quality and precision. We are witnessing the advance of technology and its possibilities, though I believe that no final solution exists beyond each of us individually. The solution must be within us and must start from us.

round 15 million euros has been invested in the implementation of our projects in Serbia to date, with all funds coming from our own or commercial sources”, notes Smart Enenrgy Investment Kft CEO Obrad Tadić.

Are the people aware of how negatively the use and production of energy impacts on the environment? How can we learn to use energy efficiently?

We are aware of the negative impact of energy exploitation, but on the other hand we mustn’t overlook the positive effects of energy. We consider the emergence of fire as one of mankind’s most significant advances.

The most important thing is to strike a balance between energy exploitation and the health of humans and the environment. This is a challenge that we must not fail to address.

We must first dispel the notion that the problem of “energy & pollution” is something we can’t influence and that all our individual efforts are insufficient. Since the launch of our operations in Serbia, one of our main goals has been to reduce energy consumption and emissions of harmful substances through the reconstruction of public lighting. We were assured that this didn’t make sense, asked whether we are “aware of how negligible that is compared to the overall consumption of electricity, i.e. coal production in Serbia?”

That didn’t stop us, as we believed that our projects could achieve energy savings of more than 75%, and that’s how we created our slogan “LET’S /SEIυ/ TOGETHER”, in which we intentionally equate the acronym of our

One of our main goals is to reduce energy consumption and emissions of harmful substances through the reconstruction of public lighting company name (SEI) with the word “save”.

So, our advice is “LET’S /SEIυ/ TOGETHER”!

Which projects is SEI currently involved in? Do you think an effective and affordable solution exists to the problem of air pollution?

The implementation of a project in Zaječar, which we are implementing successfully with Slovenian partner company Petrol, is currently underway. We are participating successfully in 13 projects in Serbia, because the contracts are long-term and we conduct maintenance on them, guaranteeing the realising of savings,

You’ve had precious assistance from Hungarian funds that donated projects to you. Can you tell us more about that?

We are currently preparing a study on the reconstruction of the public lighting system in Valjevo, for which we secured the City of Valjevo with around €87,000 from the Government of Hungary, or from its Western Balkan Fund, and we want to use that to promote energy efficiency and cooperation between Hungary and Serbia.

Hungary supports economic cooperation and also invests huge resources through the Hungarian Export Promotion Agency (HEPA), which has its regional headquarters in Belgrade, while Hungarian diplomacy, led by H.E. Ambassador Pinter, is doing a great job.

How do your projects look in figures?

This relates to millions of saved kilowatts of electricity and reductions of hundreds of thousands of tons in CO2 production.

The quality of lighting is about 200% better, energy savings exceed 80%, while CO2 emissions have been reduced by about 155,000 tons, or about 14,000 tons of CO2 annually. If we consider that a single hectare of forest that has reached maturity (about 40 years old) absorbs 180 tons of CO2 per year, it is not difficult to calculate that “LET’S / SEIυ/ TOGETHER” is the right way.

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ENERGY 2021

NIŠ-SOFIA GAS PIPELINE

ROAD TO GREATER ENERGY SECURITY The new Niš-Sofia gas pipeline is a key part of Serbia’s broader strategy to complete the ongoing liberalisation of the gas sector, but also an important element of Serbia’s progress on accession negotiations with the EU. The new gas interconnector will contribute considerably to energy security and a cleaner environment in Serbia.

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erbia is finally set to tackle the security of its gas supply and the diversification of supply routes and suppliers. This change comes with the construction of the Serbian section of the 171-kilometre natural gas interconnector between Serbia and Bulgaria. When it becomes operational in 2023, this new development will handle about two billion cubic metres of gas per year, thus contributing to the diversification of energy sources for Serbia and the region. Furthermore, it will ensure a stable energy supply that respects the environment and encourage the liberalisation of the market and investments.

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The Niš-Sofia gas pipeline will contribute to the diversification of energy sources in Serbia and the Western Balkan region, as well as reducing dependency on a single dominant supplier The project is considered a priority project for the European Union and the Central and South-Eastern Europe Energy Connectivity (CESEC) initiative. The EU Delegation to Serbia is actively facilitating progress on this priority project, in close contact with

the Serbian authorities.

Indeed, Bulgaria and Serbia already linked their gas networks at the end of 2020, with the idea of securing supplies of Russian gas from the TurkStream pipeline as of 2021.

The 170km Bulgaria-Serbia interconnector, construction of which is set to start during 2021, is a separate project that provides Serbia with a non-Russian supply option.

It will therefore contribute to diversifying energy sources in Serbia and the Western Balkan region, while reducing dependency on a single dominant supplier.

Energy security and supply reliability are imperatives for EU Member States and

pipeline will thus significantly increase the energy security of Serbia, but also the region.

The final step in this project was the recent signing of the Agreement on the loan from the European Investment Bank (EIB) in May. The EIB loan of 25 million euros secured an initial €49.6 million of EU IPA grant funds to the Serbian side of the Niš-Sofia gas pipeline. In short, the financial foundations for construction are now set. The head of the EU Delegation to Serbia, Ambassador Sem Fabrizi, confirmed that the loan for the Niš -Dimitrovgrad pipeline was a “big

from the coronavirus pandemic.

Energy transition is part of the EIB portfolio around the world. Serbia’s project is one of a few gas projects to be supported under the EIB energy lending policy agreed in 2019, before the bank shifted its focus to renewable only sources of energy from 2021. The EU previously supported the energy sector in Serbia with more than €830 million. From 2000 to date, the EIB has invested over €672 million in the energy sector of the Western Balkans. In combination with EU funds, this EU bank provides strong and long-term

renewables and security of supply.

The pipeline will serve this task. It will have a capacity of 1.8 bcm/year downstream along the Bulgaria-Serbia route, with the possibility of also reversing the flow, and will run for around 62 km in Bulgaria and 108 km in Serbia. It will provide an additional 80% capacity increase relative to Serbia’s current gas needs. Furthermore, once completed, it should open the doors for a number of suppliers, such as LNG terminals in Greece, TAP and TANAP gas pipelines and possibly the Eastern Mediterranean gas pipeline, with gas sourced from Cyprus and Israel. The construction of the Niš-Dimitrovgrad gas

The pipeline will allow easy gas access for citizens and businesses of Bela Palanka, Pirot and Dimitrovgrad – three towns that previously lacked access to gas

financial support to the countries of the region and facilitates a shift to more energy efficient and diverse resources.

The energy sector is in the focus of the EU because it has a great impact on all other sectors in society. The projects that the EU is implementing in the energy sector aim to reduce dependency on fossil fuels, increase the use of renewables and increase energy efficiency. Serbia is the country with the highest percentage of coal of low calorific value (lignite) in electricity production, at about 65%. Some 21% of electricity produced in Serbia is currently generated from renewables.

step forward” towards the realisation of the project.

As noted by Serbian Finance Minister Siniša Mali, investments in infrastructure are of great importance to Serbia, as they contribute to higher economic growth, which is particularly important amid the fallout

ENERGY 2021

represent an important issue for Western Balkan countries. In order to reach the level of economic development attained by EU Member States, the countries of the region, Serbia included, will need to maintain their own energy security and reliability of supply by securing energy supplies from different directions and sources. By gradually harmonising its energy strategy with the strategy and directives of the EU, Serbia has a chance to turn its energy sector into a driver of economic development that relies on decarbonisation, green economy,

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ENERGY 2021

INTERVIEW

MILENKO JOVANOVIĆ, TECHNICAL MANAGER AND OWNER AT M&D UNIT D.O.O. BEOGRAD

EVERY GREEN kWh MATTERS M&D Unit was founded in 2008 with the idea of becoming part of new technological solutions. And it brought new dynamism with its expertise in an entire array of solutions in the fields of electricity quality and energy efficiency

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onditions are being created for the construction of new wind farms.

M&D Unit strives to pass on its positive experiences to new investors, while considering additional advances and new opportunities with those with which it already cooperates.

The Alibunar and Malibunar wind farms, which have an impressive look and power capacity, are among the first projects of this type to be realised in Serbia. Is this our future?

It certainly is. There is no alternative to green energy. These projects have paved the way for the arrival of wind power technology in our country, primarily in the sense of adequate connections to Serbia’s energy distribution and transmission system.

The energy sector is extremely dynamic and demands the constant monitoring of trends and new technological advances.

Does this also apply to substations? To the transmitting of electricity? Are we keeping pace with the rest of the world?

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M&D Unit was founded in 2008 with the idea of becoming part of these new technological solutions. We are experts in an entire array of solutions in the fields of electricity quality and energy efficiency. It is precisely these areas that have brought new dynamics to traditionally conservative systems, such as electrical substations and electricity distribution and transmission.

There is an abundance of new technical and technological solutions, and it is our to select and implement the best ones for a certain project. And the best solution is one that provides added value to a project and enables the investor to be competitive in the future. And that’s the point: we’re building for the future. In that sense, we aren’t only keeping pace with the rest of the world, but also have to predict where that world will head. Longstanding cooperation with our clients provides confirmation that we have been successful to date.

Successfully completed projects and lists of satisfied clients are the most important references in every job, including yours. What

are you particularly proud of accomplishing and are you currently working on something that will give you a sense of pride?

I’m particularly proud of our contribution to the success of our clients.These are usually the details that make a difference. For example, wind parks were a new arrival in Serbia, but not for the investors who brought them. However, we proposed - and they recognised and accepted - technical solutions that they had not previously used. We thus created a completely new system for forecasting production and management production at wind farms. The forecasted data are automatically forwarded for unified analysis of the production plan at Serbia’s national level. Good forecasting and quality planning definitely make a difference.

We’ve successfully completed the construction and made operational a new steel rolling mill for company Metalfer in Sremska Mitrovica. Steel mills are very demanding systems in almost all aspects of electricity quality - higher harmonics, flickers, asymmetries, voltage dips etc. Given that they are large consumers of electricity, energy efficiency must be at a high level. It is very satisfying to connect all those dots to create an extremely functional and efficient whole.

We’ve also completed the construction of three solar power plants and commissioned them since the beginning of this year, while we are working on the development of several new ones. The installed power capacity is incomparably less than that of wind farms, but every green kWh counts, bringing benefits to both the investor and all of us. We are also actively engaged in the process of expanding the network of fast chargers for electric vehicles.

BUSINESS

COMPETITIVE AT HOME AND ABROAD

ENERGY 2021

JASMINA POPOVIĆ, MANAGING DIRECTOR OF DNP INŽENJERING NOVI SAD

Company DNP Inženjering [Engineering] is proud of all the electrical power facilities it has designed in Serbia and abroad, and especially of its team, comprising young people who are ready to learn and develop in every way needed to meet all the demands that the profession places on them. within the scope of the World Bank project, TS Priboj, due to the difficult configuration of the terrain, and the elaboration of the idea of concentration plant PRP Vladimirovac 2, as a 400kW plant with a large number of fields.

We use the latest design programmes and send our employees for professional training whenever the opportunity arises

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nvestors recognise us as a serious company that’s ready to respond to every challenge, and that’s why we concluded seven more contracts for wind farms and a very important framework agreement with Elektrodistribucija Srbije during the previous year, points out managing director Jasmina Popović with pride.

You’ve designed electrical power facilities of all voltage levels in Serbia and abroad. Could you single out some of the projects that make you feel particularly proud?

Each project is a challenge in itself, and that’s what makes this job especially beautiful and creative. There have been many challenges, and among the more unusual ones are RP Trebješnica, due to its specificity, TS Gornji Milanovac, as the only facility created

There are also TS Šipovo in Republika Srpska, which was the first substation we projected from start to finish.

Alongside the aforementioned substation, I would also highlight the projects of 110 kW cable lines installed in Belgrade, due to the specifics of installing them in the city’s urban zone and over Ada Bridge. We have been engaged in the design of substations and switch yards for many wind farms, which we implemented successfully and for which building permits were obtained.

You are known as a company that places a lot of effort into employee training, monitoring trends, introducing state-of-the-art technologies etc. Does that mean we aren’t lagging behind the rest of the world and that you can handle all challenges?

I don’t think we’re lagging behind at all in the domain of design, in some aspects we’re actually even ahead of similar companies elsewhere in the world. We use the latest design programmes and send our employees for pro-

fessional training whenever the opportunity arises. In the previous period we managed to increase our number of employees, to provide everyone with adequate design programmes and adequate training, both in the domain of software and in professional training in the field of electrical energy and construction.

Our team comprises young people who are ready to learn and develop in every way needed to meet all the demands that the profession places on us. Also enabling the company’s good and efficient working performance is the application of ISO quality, which is enabled by the certificate we’ve obtained from an internationally acknowledged certification company.

You can boast of your cooperation with renowned domestic suppliers and the world’s largest manufacturers of equipment. Does that also allow you to advance and maintain the highest level of project quality?

Yes. Good cooperation with representatives of equipment manufacturers of all world brands certainly contributes to high-quality design. We have exceptional cooperation with most representative offices of these companies in Serbia and the region. It is also important that we cooperate with renowned construction companies represented in our country. Fortunately, our colleagues who work in such companies have an ear and good will for good cooperation. The facility ultimately built represents a symbiosis of good design, execution and high-quality equipment, and only the harmonising of all components ensures quality, which is the end goal of all project participants.

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ENERGY 2021

INTERVIEW

BRANIMIR STOJČEVIĆ, GENERAL MANAGER, BURDOCK CONSULTANCY D.O.O.

SYNONYM FOR ENVIRONMENTAL SOLUTIONS Burdock is a company that provides services in the domain of complete project management, engineering, preparations and the supervision of major turnarounds and construction projects worldwide. This company, which was founded in the Netherlands, has a clear intention and goal to develop its business in Serbia over the long run

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iscussing Burdock’s plans here is the company’s general manager, Branimir Stojčević, who decided to share his wealth broad experience of knowledge in Serbia after having spent many years working abroad for renowned world companies, side-by-side with top experts.

Burdock Consultancy Belgrade is the seventh full member of the Burdock Group.

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What prompted your arrival in Serbia? What are your goals?

I was more than pleasantly surprised at the beginning of 2017 when I received an offer to support the establishment and further development of our organisation in Serbia.The direct reason for that, and the first prestigious project on which our staff were engaged, was the implementation of construction works on the Delayed Coker Unit (DCU) plant, for

deep oil refining, at the Pančevo refinery that’s owned by our client NIS. We want to create an essential stable structure between technology, clients and contractors, establishing the uniformity of works and total transparency of all activities and cases. We want to provide our workers with the maximum space for further development, for them to gain serious experience that can subsequently be passed on to future generations for decades.

As a company, we have the clear intention and goal of developing our business in Serbia over the long run. In accordance with that, we held very constructive meetings with representatives of the Ministry of Energy and Mining, after which we also expressed our clear intention to establish strategic and long-term cooperation.

As for me personally, after many years spent working abroad with renowned world companies, side-by-side with top experts, I realised that I should share the wealth of knowledge I’ve gained in Serbia.

Your portfolio is exceptional… What are all the sectors of industry and services that you cover? What is your core business?

Burdock was founded 27 years ago in the Netherlands and provides services in the domain of complete project management, engineering, preparations and the supervision of major overhauls and projects worldwide.

With a broad multinational and multidisciplinary network of people comprising more than 400 highly skilled experts, we cover a wide array of industries, such as refineries, petrochemicals, food, pharmaceuticals and civil and infrastructure facilities.

The turnkey concept is what characterises Burdock Consultancy Belgrade specifically, and that’s why it differs from other companies.

We have a more than conscious approach to temporarily taking over project management and ensuring the continuous justification of quality, budgets, delivery deadlines, health and safety at work etc. Here there is simply no room for any kind of compromise that destabilises fundamental principles and processes.

What are the goals of the Eco Solutions consortium that you’ve formed with your Netherlands-based partners Energo Group and Afmitech?

This is about a combination of Dutch technology and highly qualified international and local professionals, as the key to achieving our goal of becoming synonymous with ecological solutions. Our extensive international experience, coupled with our strong business practises, is aimed at providing project solutions that will help Serbia on the path to resolving its ecological issues.

When it comes to technology, our partner is Afmitech Friesland, and when it comes to fabricating equipment, construction and installation, there are Energo Group Netherlands and DAM projects Priboj. I will give the floor to our associate, Afmitech representative Bojana Vlassak, M.Sc. Ing. What sets Afmitech’s technical wastewater treatment solutions apart from the rest? What are their specificities?

Afmitech Friesland is a Dutch company specialising in decentralised wastewater treatment that has amassed more than 45 years of experience. Its wastewater treatment systems are patented and satisfy CE standards in terms of quality and performance. The product range encompasses the pre-treatment of wastewater (rotating aerators) and final treatment that enables the reuse of water in, for example, the agroindustrial sector. There is no use of materials that are subject to clogging (filters and membranes) and thus maintenance is simple and accompanied by much lower costs compared

to conventional systems. Furthermore, these systems automatically adapt to changes in the load and composition of wastewater, are characterised by high flexibility and are able to withstand an increase in nominal hydraulic loads of up to 200%.

Like all other professional companies, my personal view is a given. We monitor the business climate in Serbia and we must point out that we are very satisfied with the way the entire business environment has improved over the last few years. This

Where are the aforementioned technical solutions applicable in Serbia?

It is known that the problems of municipal wastewater are being resolved in our major cities, which is commendable in every sense, because we know that our natural resources and natural wealth are not inexhaustible.

Apart from the pollution of our rivers and lands, we must also pay great attention to the polluting of our rural areas, hamlets,

is especially so if we take into account the impact of the COVID-19 pandemic.

Here I’m primarily referring to Gross Domestic Product (GDP) growth, which the European Central Bank this year confirmed as being at the level of 5.6%, with low inflation of 1.5% annually, a low share of public debt in GDP, at 58.6%, further general business activity of both banks and companies, extremely dynamic investment activity, particularly in the field of infrastructure and construction projects to build processing plants, as well as everything else in economic terms that has happened in Serbia in the past. That’s precisely why Burdock believes in the Serbian economy, its vitality and growth, and we therefore want to be active participants in this process.

As a company, Burdock is very satisfied with the way the entire business environment in Serbia has improved over the last few years villages and smaller settlements. Afmitech’s solutions are tailored to municipal wastewater for the broad spectrum of individual households, floating facilities, cruise ships, hotels, resorts, spas, hamlets, villages and settlements of up to 15,000 inhabitants.

In order to avoid overloading the existing infrastructure in overcrowded cities, our systems provide investors with a solution to the problem of wastewater in new residential facilities. In terms of industrial wastewater, we have references in the dairy and meat processing industries, breweries etc.

How does the Burdock Group, and you personally, view the investment climate in Serbia?

You are currently active on a public tender for the technical supervision of the installation for a 110 km cross-country gas pipeline between Serbia and Bulgaria. What are your expectations?

How can we stay reserved without stressing our genuine expectations? It would really be a great pleasure for us, not to mention a privilege, to show what we know and are capable of as a company, to contribute maximally to the successful implementation of this exceptional project. As mentioned, we as an organization have the clear intention and goal to develop our activities in Serbia in the long term in order to make a positive contribution to the overall Serbian interest.

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ENERGY 2021

LOCAL NEWS

WE ARE TURNING TO GREEN ENERGY Although at first glance you would not think that a global coronavirus pandemic had any good sides, in fact they do exist. Corona has led us to look at our relationship with the world and the planet and to realise how badly we have been affecting the environment and the climate. Unfortunately, we have not changed much so far, but there are signs of positive change, both in our country and in the developed world, which is increasingly turning to clean, green energy. Let’s make it happen.

BEOGRADSKE ELEKTRANE PROVIDES HEAT AND ELECTRICITY In addition to thermal energy, Beogradske Elektrane has recently begun to produce electricity. After 18 years, a plant worth about 6.5 million euros has started operating at the Voždovac heating plant, which now combines both types of energy. It can produce 10 megawatts of electricity and 10 megawatts of heat.

“The electricity produced is delivered to the distribution system of EPS at a subsidized tariff like green energy, while the heat produced is used for heating and domestic hot water. Outside the heating season, only the cogeneration plant produces heat, which is used for hot water for consumers in the areas of the Voždovac and Medaković heating plants”, explains Beogradske Elektrane.

SERBIA SUSPENDS CONSTRUCTION OF KOLUBARA B COAL-FIRED POWER PLANT Serbia has decided to halt construction of the Kolubara B thermal power plant, which may be seen as the first serious step in the decarbonisation of the energy sector and a start on the energy transition. According to the Trade Union of the Kolubara Mining Basin, the Ministry of Mining and Energy has written to the Electric Power Industry of Serbia, EPS, asking it to suspend all activities on the construction of the Kolubara B thermal power plant, following which the trade union organized a meeting of workers at the construction site near Kalenić.

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SERBIA AND REPUBLIKA SRPSKA BUILD BUK BIJELA HPP In the municipality of Foča, the respective prime ministers of Republika Srpska and Serbia, Radovan Višković and Ana Brnabić, have laid the foundation stone for the construction of the 93-megawatt Buk Bijela hydroelectric power plant, which should be completed in four years. Elektroprivreda Srbije and Elektroprivreda Republike Srpske will jointly invest around 220 million euros in its construction. In the joint venture Hidroenergetski sistem Gornja Drina, EPS has a majority share of 51 per cent, and ERS 49 per cent. The hydropower project on the upper course of the Drina envisages the construction of three HPP:, Buk Bijela, Foča (44 MW) and Paunci (43 MW).

OUR WIND FARMS HAVE A CAPACITY OF 500 MW In the last few years, Serbia has developed wind farms with a capacity of 500 megawatts, but it still produces two thirds of its electricity in 4GW coal-fired power plants. With the adoption of the first Law on Renewable Energy Sources, the new Ministry of Mining and Energy, headed by Minister Zorana Mihajlović, has galvanized the energy transition from its doldrums and created the conditions to increase the production of green energy, but the real challenge is reducing production at coal-fired power plants.

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ENERGY 2021

WORLD NEWS

IN NORTH MACEDONIA ELECTRICITY PRICES ARE RISING Electricity is becoming more expensive due to green energy.

“The costs of installing photovoltaic plants, wind farms and gas power plants means an increase in electricity bills. In developing the energy sector, the Government of North Macedonia will establish a renewable energy fund. We want green energy - the price of electricity will go up”, said Prime Minister of North Macedonia, Zoran Zaev.

Zaev attributed the impending increase in electricity bills to investment in solar plants, wind farms and gas power plants, and said that people should be told that they cost money.

He added that foreign policy, changes to the constitution and other activities are aimed at raising living standards, investment, job creation and opportunities for Macedonians.

ELECTRICITY CAN ALSO BE GENERATED ON MARS Electricity on Mars can be produced with the help of kites Scientists from the University of Technology in Delft in the Netherlands claim that electricity on Mars can be produced by large kites that will rotate in flight and move a stationary turbine. The first human crew will already set off for the red planet in 2035. If the mission is successful, it is likely that small settlements will be established. To survive on Mars, a large amount of energy is needed, and the possibility of transporting power plants and fuel from Earth is currently very limited.

The solar potential on the red planet is very weak. It can be used to power research robots, but much more is needed for human survival.

The atmosphere is too rare for conventional wind turbines. Dutch scientists claim that huge kites can be constructed tied to spools or spindles on the surface of Mars, which would drive a turbine by rotating.

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IDRIJA SMARTENING UP The small town of Idrija will be among the first towns in Slovenia to install batteries for storing electricity locally and to achieve flexibility in electricity consumption with the help of a public infrastructure management system. Idrija is involved in the national NEDO project with Japanese partners. Kolektor Sisteh is installing a battery storage system in a small hydroelectric power plant in Idrija as part of a three-year project for smart grids. The main partners are the Japanese Organisation for New Energy and Industrial Technology Development (NEDO), its authorised contractor Hitachi and ELES. Completion of installation of the equipment and handover for use are scheduled for June, after which a six-month trial should follow as part of the transformation of Idrija into a smart town. balkangreenenergynews.com VIENNA GETS NEW “GIANT COOKER” The city of Vienna has started construction of a new Power-to-Heat plant next to the Spittelau incinerator, which, like a giant cooker, will convert excess green electricity from the grid into thermal energy. The goal is to use all available energy, to increase the share of renewables in heating energy and to enhance the stability of the electricity network. Operations at the plant are planned to begin in the spring of 2022, announced the representative office of the City of Vienna.

On the roof of the plant there will be space for rest and gardening for the staff, where in the future they will be able to plant tomatoes, peppers and spices together.

The greening of the space will add to the fight against heat islands in the city, says the announcement.

B92 GAS DEMAND EXPECTED TO GROW Global gas demand is expected to rise by 3.2% in 2021, erasing losses in 2020 and moving demand to 1.3% above 2019 levels. This recovery in gas demand has been driven mainly by fast-growing markets – primarily in Asia and to a lesser extent in the Middle East – but subject to uncertainty about industrial recovery and fuel price competitiveness.

Demand in the European Union is expected to recover to the level of 2019. Growth in the United States is more gradual, and demand is not expected to return to 2019 levels. Low temperatures in the first months of 2021 and winter storms also led to some extreme tensions in demand and price fluctuations, first in January in north-east Asia, and then in February in North America, especially in Texas, and this trend is expected to continue.

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INTERVIEW

ENERGY 2021