Supporting Bulgaria’s Renewable Energy Transition

22.11.2024

solar , panel , novo — Photo-illustration: Pixabay (atimedia)

The European Bank for Reconstruction and Development (EBRD) is lending up to 50 million euros to Tenevo Solar Technologies EAD to build and operate a fully merchant solar photo-voltaic plant in southeastern Bulgaria. The Tenevo plant is expected to generate more than 300 GWh of electricity a year and save 250,000 tonnes of carbon emissions annually. A parallel financing facility of 53 million euros will be provided by Raiffeisen Bank International, making the total finance package 103 million euros.

The project will be supported by first loss risk cover deployed under the EBRD’s InvestEU Framework for Sustainable Transition, which aims to foster sustainable investment and convergence to EU norms, and will contribute to the Bulgarian green energy transition. This is the first use of the InvestEU guarantee by the EBRD in Bulgaria.

The Tenevo plant will add 238 MW of solar generation capacity to the Bulgarian national energy system, with a long-term plan to add on a 250MW capacity of behind-the-meter energy storage. This is an important project to advance towards Bulgaria’s ambitious net-zero greenhouse gas emissions target by 2050 and reduce reliance on coal generation, which still dominates in the power system.

The project will be the first renewable energy plant over 100 MW that will sell all its output in the market without a support scheme or a corporate power purchase agreement in Bulgaria. The project is designated as Gender SMART as the Sponsors and the Company committed to sign the UN Women’s Empowerment Principles to promote gender equality across the male-dominated energy sector in Bulgaria.

It will also strengthen the private sector presence in the renewable energy sector in Bulgaria. Tenevo Solar Technologies EAD is a joint stock company incorporated in Bulgaria to construct and operate this plant. It is equally owned by two partners. One is Renalfa IPP, an Austrian joint venture between Renalfa Solarpro Group, a Vienna-based clean energy and e-mobility company, and RGreen Invest, a French renewables infrastructure fund. The second is Eurowind Energy, a Danish renewable energy developer and independent power producer.

“We are delighted to finance this sizeable merchant solar project, which highlights the Bank’s continued support for Bulgaria’s green transition, in today’s context of concerns over regional energy security in light of Russia’s war on Ukraine as well as to support Bulgaria’s ambitious renewables and decarbonisation targets,” said Grzegorz Zielinski, Head of Energy Europe in the EBRD’s Sustainable Infrastructure Group.

“We are excited to partner with the EBRD and Raiffeisen Bank International on this ground-breaking project, which reflects our shared vision for a more sustainable future in Bulgaria. This collaboration represents a key landmark for the renewable energy investment community in the region, and we look forward to working together to bring our plans to reality,” said Kalina Pelovska, executive director for Tenevo Solar Technologies EAD.

Renewable energy is expected to play a critical role in the decarbonisation of the economy of Bulgaria. The country is aiming for renewables to make up 34.7 per cent of its electricity consumption by 2030, more than double its 2020 target of 16 per cent. This rising ambition is driving renewed interest in the sector, seeing about 1.3 GW of additional solar PV capacity being built over the past two years. In addition, this month Bulgaria’s decarbonisation efforts have taken an important leap forward with the conclusion of the country’s first renewable energy with co-located battery energy storage systems tender, which awarded grants to over 3 GW of new solar PV projects. This is part of Bulgaria’s Recovery and Resilience Plan targets, which is also supported by EBRD, and aim for commissioning of at least another 3.5 GW of renewable capacity by 2026.

The EBRD is a leading Implementing Partner for the EU’s InvestEU Programme, which supports sustainable investment, innovation and job creation in the European Union. It aims to trigger more than 372 billion euros in additional investment between 2021 and 2027. Between 2022 and 2027 InvestEU guarantees worth 635 million euros will be leveraged by the EBRD to finance investments of up to 2.7 billion euros in eligible sectors. Through the programme the EBRD supports EU members states where the Bank invests, namely Bulgaria, Croatia, Czechia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, the Slovak Republic and Slovenia.

The EBRD, a leader in climate finance, is a major institutional investor in Bulgaria. To date it has financed 297 projects in the country for over 4.5 billion euros.

Source: EBRD

EU: Decline in Sales of Electric and Diesel Vehicles in 2024

22.11.2024

punjač , električni automobil — Photo-illustration: Unsplash (Andrew Roberts)

The European Union’s automotive market saw a modest but encouraging growth of 1.1 percent in new car sales in October 2024, according to data from the European Automobile Manufacturers’ Association (ACEA).

As reported by the Serbian Association of Vehicle and Parts Importers, Spain led the way with a strong 7.2 percent increase, while Germany, the EU’s largest car market, also recorded significant growth of 6.0 percent after three consecutive months of declining sales. However, France experienced a sharp drop in sales by 11.1 percent, while Italy saw a 9.1 percent decline.

In October 2024, a total of 866,397 new passenger vehicles were sold, compared to 856,762 in October 2023. Over the first ten months of 2024, sales of 8.9 million vehicles were reported, showing stable performance compared to the same period last year.

Vehicle Sales by Powertrain Type

Fully Electric Vehicles – The market share of fully electric cars in October remained unchanged at 14.4 percent. However, sales volume dropped by 4.9 percent compared to the same month last year. The market share for January–October 2024 also decreased to 13.2 percent, down from 14 percent in 2023.

Electric vehicle registrations in the EU increased by 2.4 percent in October 2024, with 124,907 units sold compared to 121,989 in October 2023. The decline in market share over the ten-month period was largely attributed to a sharp 26.6 percent sales drop in Germany, the EU’s largest car market, which surprised even the most pessimistic forecasts.

From January to October 2024, 1,172,737 electric vehicles were sold, compared to 1,232,937 during the same period in 2023.

Photo-illustration: Unsplash (markus-spiske)

Plug-In Hybrid Vehicles – Plug-in hybrid sales dropped by 7.2 percent in October, with their market share declining to 7.7 percent from 8.4 percent in October 2023. France recorded the largest decrease, at 26.9 percent, followed by Italy with a 24.9 percent drop.

In October 2024, EU buyers purchased 66,964 plug-in hybrids, down from 72,154 units in October 2023. Over the ten-month period, 617,409 plug-in hybrids were sold in 2024, compared to 670,530 in 2023.

Conventional Hybrid Vehicles – Sales of conventional hybrids rose by 17.5 percent in October 2024, with their market share increasing from 28.6 percent in October 2023 to 33.3 percent. A total of 288,160 hybrid vehicles were sold in October 2024, compared to 245,308 in October 2023.

This marks the second consecutive month in which hybrid vehicle sales surpassed those of petrol-powered vehicles in the EU market. From January to October 2024, 2,692,726 hybrid vehicles were registered, compared to 2,247,298 in the same period of the previous year.

Petrol-Powered Vehicles – Sales of petrol-powered cars dropped by 6.8 percent in October 2024, though Germany bucked the trend with a 3.7 percent increase in market share. Petrol vehicles accounted for 30.8 percent of the market in October 2024, down from 33.4 percent in October 2023. A total of 266,498 petrol cars were registered in October 2024, compared to 285,845 in the same month last year.

Over the ten-month period, 3,011,926 petrol vehicles were sold in 2024, compared to 3,159,823 in 2023.

Diesel Vehicles – Diesel cars continued to lose market share in the EU, with a 7.6 percent drop in sales in October 2024, reducing their share to 10.9 percent. In October 2024, 94,587 diesel vehicles were sold, compared to 102,414 in October 2023. From January to October 2024, 1,087,459 diesel cars were sold, down from 1,219,014 in the same period last year.

Energy portal

Trump’s Return and the End of American Climate Ambitions?

21.11.2024

american-flag-usa — Photo-illustration: Unsplash (Lukas Juhas)

While Democratic Party supporters express their disappointment on social media and the media delve into “who’s to blame” for Kamala Harris’ debacle, Donald Trump is gearing up for his grand return to the political stage as President of the United States.

The controversial businessman and multimillionaire has once again captured the majority of votes, relying on his recognizable “down-to-earth” approach and openly conservative, anti-globalist views. His vision promises an America that will once again be “the most powerful nation in the world.” While some celebrate the return to former glory, others see it as a dangerous step backward. Either way, the days until the inauguration are counting down quickly, with the eyes of the world fixed on Donald Trump and his plans for America’s future.

There is no doubt that the next four years will be just as eventful as the election itself. But let’s turn now to the issue of climate change and what the return of Republicans means for the planet’s future.

Climate scientists warn that Trump’s policies favor fossil fuels and downplay the importance of environmental regulations, posing a serious challenge to the global fight against climate change.

His first term is remembered for the United States’ withdrawal from the Paris Climate Agreement and the rollback of hundreds of environmental protection regulations. He has already announced similar measures for his upcoming term. There are also concerns that the U.S. will reduce its investments in innovation and clean energy, given that the newly elected president is known for his skepticism of the scientific consensus on climate change.

It’s clear that Trump remains steadfast in his anti-climate stance, as nothing during his four-year hiatus has convinced him of the seriousness of climate change, which he has repeatedly described as a “hoax” by globalists.

For this reason, many climate and political analysts see Trump’s victory as a looming disaster, at least when it comes to the climate crisis. However, perhaps they haven’t been entirely fair to this Republican when reaching such alarming conclusions.

Foto-ilustracija: Unsplash (Callum Shaw)

To get a sense of what the next four years in the U.S. might look like, we must reflect on his term from 2017 to 2021. During that time, there was no climate catastrophe as predicted. In fact, greenhouse gas emissions declined—partly due to a shift from coal to natural gas and renewable energy, and partly due to the COVID-19 pandemic.

Now that it’s evident his first term did not plunge the world into a climate disaster, there’s no reason to panic before we see how things unfold once he takes office.

After all, although the other side loudly advocates for fighting climate change, we cannot say that Kamala Harris’ campaign stayed consistent with these principles. Numerous public figures took turns at the podium generously supporting the “blue” side, while offstage, they traveled in their private jets, which, according to the International Energy Agency (IEA), emit as much greenhouse gas in just two hours as the average person does in an entire year.

So, let’s not rush to conclusions. Trump might surprise us all by leaving behind not only a stronger society that many Americans hope for but also a healthier planet.

Milena Maglovski

Strengthening Energy Ties – Romanian Section of the Power Line to Serbia Commissioned

21.11.2024

NOVO struja , električna energija novo — Photo-illustration: Pixabay (Thomas)

Photo-illustration: Unsplash (Matthew T Rader)

At the beginning of the year, a meeting was held in Athens between the energy ministers of Romania and Serbia to discuss opportunities for enhancing cooperation in the energy sector. The discussions emphasized the importance of regional connectivity in the gas sector and the significance of the gas interconnection between Serbia and Bulgaria, which enables diversification of sources, including gas from LNG terminals in Greece and Azerbaijan. Plans for further connections with neighboring countries were also highlighted, with Romania and North Macedonia being among the first priorities, as reported on the Serbian Government’s website at the time.

In mid-November this year, the Romanian section of the 400 kV high-voltage interconnection power line connecting Reșița in Romania to the Serbian border was commissioned. This power line is not only a key energy bridge between the two countries but also a vital part of the Trans-Balkan Corridor for electricity transmission, directly linking the transformer stations TS Pančevo 2 and TS Reșița, according to the Elektromreža Srbije (EMS) website

One of the two systems, specifically one of the two power lines connecting TS Pančevo 2 and TS Reșița, has been commissioned, while the commissioning of the second system is scheduled for the first quarter of next year.

The Romanian section of the power line consists of 206 towers and spans a length of 62 kilometers.

Interconnection power lines refer to power infrastructure that links the electrical grids of two or more countries, allowing for cross-border electricity transmission. Through these lines, countries can exchange electricity, optimizing production capacities. For example, one country with a surplus of hydroelectric power can export it to a neighboring country experiencing a deficit. In general, connecting energy systems ensures greater energy stability for the countries involved.

To recall, EMS commissioned its section of the power line, which runs from Pančevo to the Romanian border, back in December 2017. The Serbian segment, 68 kilometers long with 203 steel lattice towers, has been crucial for electricity supply in eastern Serbia. It was initially commissioned as a dual-system power line.

The commissioning of this key segment of the Trans-Balkan Corridor strengthens the cooperation of energy networks in Southeast Europe, thereby enhancing the regional energy infrastructure that is much needed in this part of Europe.

Energy portal

Montenegro – Construction of the “Gvozd” Wind Farm Begins

21.11.2024

vetar — Photo-illustration: Unsplash (Levan Badzgaradze)

The construction of the “Gvozd” wind farm has officially started in Montenegro, marking the first major production facility that Elektroprivreda Crne Gore (EPCG) is building after more than 40 years.

The project, initiated in 2019, is valued at 82 million euros, and the wind farm is expected to be connected to the country’s power grid by the end of next year.

The installed capacity of the wind farm will be 54.6 MW, with an anticipated annual electricity production of approximately 150 GWh.

The construction will be carried out in phases and will include eight wind turbines with accompanying infrastructure, the construction of a 33/110 kV “Gvozd” transformer station (TS) at the project site, a 110 kV single-circuit transmission line between TS Gvozd and TS Krnovo, 3,125 meters in length, and another 110 kV single-circuit transmission line between TS Gvozd and TS Nikšić, 14,730 meters long. The project also entails the reconstruction of TS 33/110 kV “Krnovo” and TS 35/110 kV “Nikšić.”

According to Milutin Đukanović, President of the EPCG Board of Directors, a parallel project, “Gvozd II,” is being developed, with an installed capacity of 20 MW. Together, these projects will meet the energy needs of approximately 25,000 households. Moreover, the project is expected to reduce greenhouse gas emissions by about 104,000 tons, equivalent to the emissions of 62,000 cars.

“The construction of the ‘Gvozd’ wind farm and the necessary power infrastructure for grid connection will be entirely financed through loans. With an appropriate grace period during the construction phase, the project will essentially pay for itself,” EPCG stated on its official website.

The German company Nordex SE & Co. KG has been selected as the partner for the construction of the wind farm.

Đukanović emphasized that EPCG’s business philosophy is “produce where you consume,” a principle that is key to the green transition. He also noted that with the completion of the “Solar 5000+” project by July 1 next year, Montenegro will have 100 MW of solar rooftop installations.

Energy portal

Diversification of Energy Sources: North Macedonia Turns to Azerbaijan

20.11.2024

gas — Photo-illustration: Unsplash (sebastian-morelli-peyton)

North Macedonia has signed an agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR) to enhance its energy security. The partnership, formalized through a Memorandum of Understanding on cooperation in the energy sector, focuses on diversifying natural gas supplies and exploring innovative energy project solutions such as gas cogeneration.

Photo-illustration: Unsplash (tatjana-dimovska)

Fossil fuels, supplemented by limited hydropower, form the backbone of the country’s energy mix. Due to its heavy reliance on imported energy, North Macedonia has been significantly impacted by the energy crisis, making diversification of sources a logical next step. The majority of the natural gas consumed in the country comes from Russia, with a smaller share from Greece. This dependence on a single primary source, coupled with fluctuating energy prices, has repeatedly strained the energy sector.

SOCAR, with access to vast gas resources from the Caspian Sea region, not only manages extensive reserves but also operates key pipelines such as the Trans-Anatolian Natural Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP), which connect directly to Europe. By joining forces with SOCAR, North Macedonia aims to achieve a more stable gas supply and better control over energy prices, although it is not the only country in the region sourcing gas from Azerbaijan.

Serbia, for instance, has also recently started importing gas from Azerbaijan. Last year, Srbijagas and SOCAR signed an agreement for the delivery of up to 400 million cubic meters of gas annually until 2026, with projections to increase these volumes to one billion cubic meters thereafter. Azerbaijani gas reaches Serbia through a new pipeline to Bulgaria, partially financed by the European Union (EU), which commenced trial operations in December 2023. This project also aimed to diversify Serbia’s sources, reducing its reliance on Russian gas given the high demand.

As for North Macedonia, its plan includes a €1 billion investment in a gas cogeneration system. This technology simultaneously produces electricity and heat from a single source—natural gas. It is an efficient method of energy utilization, as heat that would otherwise be wasted in conventional power plants is used for heating during the winter. By employing natural gas in a more efficient system like cogeneration, overall carbon dioxide emissions are reduced compared to less efficient systems.

From an economic standpoint, stable gas prices can lead to lower energy costs. However, the country must carefully transition to renewable energy. Despite the advantages of natural gas compared to some other energy sources, it is crucial for North Macedonia to increase its use of renewables to enhance economic competitiveness and reduce dependence on fossil fuels, which currently dominate the energy mix.

Milica Vučković

Sustainable Banking for a Secure Future

20.11.2024

For over two decades, ProCredit Bank has been working diligently to reduce its direct and indirect impact on the environment. Their commitment to achieving zero carbon emissions is reflected in their investments in renewable energy sources and the incentives they offer clients to do the same.

Miloš Stepandić, Head of Business at ProCredit Bank, discusses how they are achieving their goals and their plans for the future.

Q: What does sustainable banking mean for ProCredit Bank?

A: Our focus has been on sustainable banking from the beginning. This means that we have adapted all our work processes to sustainable practices: from online banking to strictly controlled energy consumption and other resources in our daily operations, to regular measurement of carbon emissions, the use of a low-emission vehicle fleet, and the development of a network of chargers for electric vehicles. We also conduct energy audits of the bank’s office buildings to find solutions for optimal energy management and increase the energy efficiency of our operations.

Considering that 90 percent of our portfolio consists of micro, small, and medium-sized enterprises, entrepreneurs, and farmers, it is clear how much responsibility and opportunity we have in promoting sustainability. Individually, these factors may not seem like key elements needed for an ecological transition, but collectively, they can have a significant environmental impact due to the diversity of their activities. This diversity includes different industries, production processes, and resource usage, meaning a comprehensive approach to sustainability can reduce the overall environmental footprint. Our business model is focused on providing financial services to innovative companies with a high degree of digitalization. Through collective efforts to reduce resource consumption and transition to sustainable practices, micro, small, and medium-sized enterprises can significantly contribute to global environmental protection and sustainable development goals.

Q: How can sustainable banking be improved?

A: There are many opportunities for improvement. So far, we have successfully allocated over 400 million euros in green investments, contributing to the modernization of infrastructure through the use of new technologies for the production, storage, and distribution of energy from renewable sources. The energy transition is not only a social and technological challenge but also an economic one, where the role of financial institutions becomes crucial.

IN FOCUS:

Q: How do you analyze clients during the financing approval process? How do you encourage clients to operate more sustainably?

A: Our impact starts with a thorough financial analysis. An essential contribution in the financing segment comes from the support of our colleagues in the Department for Sustainable Development, and we are the first bank in Serbia to establish a dedicated department for energy efficiency. We carefully analyze all aspects of our client’s operations, including the location of their activities, their impact on natural resources, the materials used, and the processes and equipment involved in their production. Through well-established procedures, we jointly identify and classify the impact of companies’ activities on the environment and workplace. These procedures help us establish standard methods for identifying and assessing environmental impacts and potential risks.

If we finance businesses engaged in environmentally risky activities, we explore whether more sustainable alternatives are available in the market that could replace current materials and processes and offer solutions to improve those processes. When deciding on loan approvals, we carefully assess whether the client’s activities meet the criteria outlined in ProCredit Bank’s Exclusion List of Activities. The ultimate goal is to replace harmful practices with better options and provide financial support to those striving for progress and recognizing the potential and importance of sustainable operations.

Q: How do you support the green transition?

A: ProCredit Bank has financed over 100 solar power plants for personal or commercial purposes. Renewable energy sources are a key part of the green transition we want to support, but other types of investments should not be overlooked, as they are equally important. With this in mind, about 60 percent of our green portfolio is dedicated to energy efficiency investments. We believe that we can only transition to a more sustainable model and improve our economy through a holistic approach.

ProCredit Bank

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

Energy Initiatives at COP29 – What Can We Expect?

19.11.2024

NOVO vetar — Photo-illustration: Pixabay (distelAPPArath)

The 2024 United Nations Climate Change Conference (COP29) places significant focus on energy as one of the key sectors in combating climate change.

In light of this, the COP29 Presidency has officially launched three energy initiatives, inviting stakeholders to lend their support. These initiatives demonstrate the presidency’s efforts to enhance outcomes from the first Global Stocktake on renewable energy and hydrogen progress.

The Global Energy Storage and Grids Agreement at COP29 marks the first initiative under which signatories commit to a collective goal of deploying 1,500 GW of energy storage capacity by 2030. This represents a sixfold increase compared to the capacity available in 2022. Furthermore, it includes a commitment to add or upgrade 25 million kilometers of grid infrastructure by 2030, recognizing the need for an additional 65 million kilometers by 2040.

The Green Energy Zones and Corridors Agreement commits signatories to promoting green energy zones and corridors to connect renewable energy sources with the most vulnerable communities. This involves the development of larger intersectoral and interregional power grid connections to enable cost-effective and secure electricity transmission over long distances.

The COP29 Hydrogen Declaration focuses on increasing the production of renewable, clean, and low-emission hydrogen, a commitment made by the signatories. It also aims to accelerate the decarbonization of existing hydrogen production from fossil fuels. The goal is to significantly boost green hydrogen production from the current one million tons per year while reducing the 96 million tons of hydrogen currently derived from fossil fuels.

Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), emphasized the global target of tripling renewable energy capacity by 2030, a goal set at last year’s COP28. According to him, achieving this target requires more than just increasing renewable energy production—it also demands overcoming challenges related to connecting renewable sources to power grids. He highlighted energy storage, grid expansion, and significant investments as crucial factors.

Further support for renewable hydrogen development comes from the commitment of international and national development financial institutions to back the 10 GW Lighthouse Initiative. This initiative aims to foster the development of renewable hydrogen projects with capacities ranging from 100 MW to 1 GW in developing and emerging economies, advancing them to the final investment decision (FID) stage by 2030, according to the official COP29 website.

Additionally, IRENA and Azerbaijan’s Ministry of Energy officially launched the Accelerated Renewable Energy Partnership for Central Asia (APRECA) to accelerate investments and enhance interregional connectivity. This initiative aims to boost renewable energy deployment, foster green industrialization, and maximize socioeconomic benefits in the region.

The European Bank for Reconstruction and Development (EBRD), alongside the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), announced a major investment in solar projects in Azerbaijan. Each of these banks will invest 160 million dollars to construct two solar power plants with a combined capacity of 760 MW.

Katarina Vuinac

The Energy Sector Rated Highest According to the White Book of the Foreign Investors Council

19.11.2024

electricity_pylon_energy_grid_energetska_mreža — Foto-ilustracija: Pixabay

According to progress in implementing recommendations from the White Book by the Foreign Investors Council, the energy sector has emerged as the leading sector. Out of a total of eight recommendations for the energy sector, significant progress has been achieved on five, and some progress on the remaining three, according to a statement by the Ministry of Mining and Energy of the Republic of Serbia.

Specifically, in the recently published annual report by the Foreign Investors Council, the energy sector ranked first in the overall rating for 2024 with an index of 2.63 out of a maximum of three, significantly higher than the 2023 index of 2.30.

“These recommendations provide a solid platform for dialogue with investors on how we can improve the business environment in Serbia and achieve greater success in reforms,” explained Dubravka Đedović Handanović, Minister of Mining and Energy.

“The energy sector is rated the highest in the White Book of the Foreign Investors Council. The sector is undergoing a profound transformation marked by significant improvements in the regulatory framework, enhanced supply stability, and accelerated public investments, creating a predictable framework for private sector investments. The positive ratings of reforms in the energy sector are a recognition of the work accomplished so far, while the recommendations guide us on where further improvements can be made,” the minister stated.

The White Book also highlights progress in the transformation of “Elektroprivreda Srbije” (EPS) from a public company into a joint-stock company.

According to the minister, changes in the EPS governance structure have been implemented, including the appointment of a new Supervisory Board, representing key steps towards the professionalization of EPS management.

She also noted that the implementation of the EPS transformation plan has commenced, aimed at increasing efficiency and introducing management changes with annual goals and greater accountability for managers. “This sets an example for the reforms to come in other energy companies,” she added.

Amendments to the Energy Law have enhanced the regulatory framework in line with the EU’s Third Energy Package and created conditions for integration with the EU market.

“By the end of the year, the formation of the first regional electricity exchange in the region will be completed, involving Serbia, along with two EU member states—Hungary and Slovenia. This will positively impact the investment environment,” said Minister Đedović Handanović.

The annual report of the Foreign Investors Council also recognizes achievements in “greening” the energy portfolio.

As the minister emphasized, the introduction of auctions for granting market premiums for renewable energy sources has opened opportunities for a new investment cycle in this sector, enabling competitive electricity purchase prices.

Photo-illustration: Unsplash (Jason Mavrommatis)

The second round of auctions will be announced by the end of November, the minister said, highlighting the success of the first round last year, which included nine solar and wind projects and over one billion euros in investments.

“With the first green production capacities of EPS, such as the solar and wind park in Kostolac, and strategic partnerships for one gigawatt of solar power plants, we are moving closer to achieving the strategic goal of having every second megawatt-hour come from clean sources by 2030,” the minister noted.

As stated in the White Book, the inflow of foreign direct investments increasingly depends on the availability, predictability, and structure of certified green energy supply. Issues such as the percentage of renewable energy available on the grid, further development of renewable energy power plants, and the ability to guarantee green energy supply through corporate power purchase agreements are gaining importance and becoming decisive factors for investor decisions in Serbia.

In the field of energy efficiency, the White Book notes that a significant number of local governments have started implementing energy performance contracting projects for public lighting.

Energetski portal

Green Financing: Erste Bank as a Leader in Sustainable Investments and Energy Efficiency Support

18.11.2024

Zeleni krediti_Erste Banka — Photo: Erste Bank

By investing in more than 70 green projects so far, Erste Bank has significantly contributed to the reduction of harmful gas emissions, the increase of electricity production from renewable sources and the positive impact on local communities. These projects represent concrete steps towards the development of ESG principles and a sustainable future. Commitment to these goals continues through constant support for initiatives in the field of green energy, not only in Serbia, but also in the wider region. As a leader in this field, Erste Bank continues to contribute to the process of green transformation, working on projects that help achieve the long-term goals of energy stability and environmental protection.

ESG Principles as the Key for Sustainable Business Development

By supporting sustainable initiatives and promoting the ESG agenda, Erste Bank plays a key role in the energy transition. Recently, at the SEE Energy 2024 conference, which was organized by the National Association for Biomass SERBIO, Jelena Simić Jarić, Director of the Department for Large Legal Entities, Public Sector and Corporate Financing at Erste Bank, participated in a panel entitled “ESG Principles in the Energy Transition: Innovations, Challenges and Opportunities”.

During the panel, she highlighted the key role of ESG strategies in the energy transition, stressing that it is crucial for companies to recognize the need to invest in green technologies and implement sustainable business practices. She underlined how companies that recognize the challenges of the energy transition in time and start the necessary investments can maintain competitiveness and achieve long-term sustainable development.

Investments in Serbia’s Green Future

Erste Bank has recognized the enormous opportunities for investments in renewable energy sources and the green future of Serbia, and one of the most recent projects in that area is Čibuk 2 wind farm, the sixth wind farm financed by the Bank in Serbia. This project plays a key role in achieving Serbia’s goal that by 2030, 41 percent of electricity will be produced from renewable sources. Čibuk 2 is the continuation of the existing Čibuk 1 wind farm, which already produces enough electricity to supply around 113,000 households, making it the largest operational wind farm in the country. In addition to a significant reduction in carbon dioxide emissions, this project contributed to Serbia’s energy stability, opening new perspectives for the further development of the green economy.

EBRD and Erste Approve Financing for new Windfarm in Serbia

Supporting Energy Efficiency Through Green Loans

Environmental sustainability and reducing the negative impact on the environment are becoming key topics for building a sustainable future. Initiatives that encourage environmentally responsible behavior have become necessary in order to create a better world for future generations.

That is why Erste Bank develops products aimed at improving energy efficiency, reducing energy consumption and emissions of harmful gases. Green loans are one of the key steps in encouraging environmentally conscious financial decisions, enabling citizens and entrepreneurs to invest in technologies that will contribute to the preservation of the environment and the reduction of energy costs.

In recent years, an increasing number of Serbian citizens have been using green loans to make their homes more energy efficient and reduce energy costs. As a leader in the field of green financing in Serbia, the Bank recognized the importance of this topic and, through a pilot project that was implemented in cooperation with the European Bank for Reconstruction and Development (EBRD), within the Green Economy Financing Program (GEFF) for the Western Balkans a year ago approved the first loan to a residential community in Serbia. Three buildings in Svilajnac received a loan in the amount of 10 million dinars for the replacement of outdated fuel oil boilers with modern gas heating systems.

These projects are not only economically profitable, but also have long-term benefits for the environment, reducing the emission of harmful gases and improving the quality of life of citizens.

Commitment to Sustainable Development

Committed to sustainable business and responsible investments, Erste Bank believes that the green transition is the key to a better future – not only for Serbia, but also for the whole world. Through investments in renewable energy sources, green projects and support for ESG principles, Erste Bank creates long-term values for the society, the economy and the environment, remaining committed to the mission of creating a sustainable future and setting high standards for sustainable business and a positive impact on climate change.

Source: Erste Bank

How Plants Clean the Environment from Harmful Substances

17.11.2024

Automatizovana-vertikalna-bašta-za-gajenje-biljaka-na-Hemijskom-fakultetu,-Univerziteta-u-Beogradu — Photo: Science Fund of the Republic of Serbia

The story of per- and polyfluoroalkyl substances (PFAS) begins with something not uncommon in science but requires a keen and careful eye. Namely, while working on the synthesis of new compounds in the 1940s, chemists at the DuPont Company did not achieve what they had planned, but they noticed that some compounds exhibited repellence to both water and oil. Humanity was introduced to a new patent commercially known as Teflon, a compound that nature had neither synthesized before nor since. Over the years, thousands of these compounds have found applications in numerous industries – for impregnating rain-resistant jackets and shoes, as an additive in firefighting foams, as coatings on the inner sides of fresh food packaging, in cosmetics, medicine, the automotive industry, and telecommunications devices.

Harmful Effects

However, PFAS contain one of the strongest covalent bonds in nature (carbon-fluorine), making them highly resistant to biodegradation, and their removal from the environment presents a significant challenge. By the end of the last century, scientists had detected the presence of PFAS compounds in water, plants, food, blood, and breast milk. Pandora’s box was opened, and in recent years, they have been found in water, soil, and numerous organisms. Their presence near factories that produced them is not surprising, but PFAS have also been detected in very remote areas, such as the Arctic and Antarctica. Furthermore, some studies suggest that exposure to PFAS compounds is associated with harmful health effects, including a reduced immune system response, elevated cholesterol levels, thyroid hormone disruption, reduced birth weight, and more.

Photo: Science Fund of the Republic of Serbia

Due to all the aforementioned, the use of these compounds is increasingly restricted, and maximum allowable concentrations in food and water are being regulated. PFAS compounds are a global challenge, highlighted by the Hollywood film Dark Waters, which depicts the ongoing battle of lawyer Robert Bilott against the DuPont Company.

Given the significant concern surrounding this environmental issue, a group of scientists from Serbia has gathered to develop innovative strategies to address the presence of PFAS compounds in the environment. The PhytoPFAS project team, funded by the Science Fund of the Republic of Serbia, is multidisciplinary and consists of fifteen researchers from the fields of chemical, biochemical, and physicochemical sciences from four scientific and educational institutions of the University of Belgrade – the Faculty of Chemistry, the Institute of Chemistry, Technology, and Metallurgy (ICTM), the Faculty of Physical Chemistry, and the Faculty of Medicine.

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Application of New Technology

The main goal of the PhytoPFAS project, funded under the Green Program for Science and Industry Cooperation, is to develop the use of plants (phytoremediation) for cleaning polluted environments and establishing a solid foundation for applying this technology in collaboration with industry. The PhytoPFAS team will explore the possibility of PFAS compound uptake using different plants in soil and hydroponics.

After selecting the most efficient species, the plants will be tested at both the laboratory level and pilot scales. The next step involves the commercial application of the developed technology. Phytoremediation can be used to remediate existing pollution and prevent new contamination. The primary beneficiaries will be the broader population and industry, as the application of phytoremediation will contribute to a cleaner and healthier environment, more efficient use of natural resources, and reduced waste.

Researchers from the Faculty of Chemistry and the Institute of Chemistry, Technology, and Metallurgy at the University of Belgrade also coordinate another significant project related to PFAS compounds, PFAStwin, funded by the European Executive Agency for Research. This project is strengthening Serbia’s capacity for PFAS compound analysis and bioremediation.

The PhytoPFAS Project Team

The story was published in the new issue of the Energy portal Magazine ENERGY TRANSITION

Hungary’s green progress

16.11.2024

Unsplash-(Andrii-Bondarenko) — Photo-illustration: Unsplash (Andrii-Bondarenko)

In recent years, countries around the world have set ambitious environmental goals. For some, these goals pose challenges that are not easily overcome, while others face failure. However, Hungary stands out as a country taking ecology seriously, prioritizing the development of solar energy, energy storage, and electric vehicles. Following its success in 2023, Hungary continues its intense efforts to advance environmental progress in 2024.

Hungary has exceeded its initial goals outlined in its National Energy and Climate Plan (NECP), which aims to reach 6.5 GW of solar energy capacity by 2030. This goal was already achieved by 2024, prompting a revision that increased the target to 12 GW. Last year alone, Hungary’s solar capacity grew by a record 1,632 MW.

Investments in Renewable Energy

Photo-illustration: Unsplash (Daniele-La-Rosa-Messina)

At the beginning of 2024, Hungary expanded its Napenergia Plusz program, offering subsidies of five million forints (about 13,000 euros) for the installation of solar panels and energy storage systems. The program provided a budget of 75 billion forints (about 197 million euros) to help households reduce electricity costs and become more energy-inde pendent. In the first month of the year, more than 400 contractors were registered, and over 21,500 households applied for subsidies. Due to high demand, the program’s budget was increased by 30 billion forints (about 79 million euros), enabling subsidies for more than 25,000 households.

According to the official website of the Hungarian Ministry of Energy, data from the transmission system operator MAVIR shows that, by July 2024, Hungary had installed 6,712 MW of solar power capacity. Of this total, the largest portion—3,678 MW—came from industrial facilities, meaning that nearly 90 percent of systems with capacities greater than 50 kW were operational during peak energy de – mand periods. Additionally, MAVIR noted that if this growth trend con – tinues, Hungary’s solar energy capa – city could increase by more than 1 GW in 2024, consistent with the growth seen in the past two years. Regarding households, around 270,000 solar systems are currently in operation, three-quarters of which are rooftop installations, marking a thirtyfold increase in the last decade.

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Photo-illustration: Unsplash (Maxim-Hopman)

Due to the significant rise in so – lar capacity and the growing use of other renewable energy sources, the Hungarian government has laun – ched several important programs to support the development of this sector. These include initiatives aimed at improving energy storage infrastructure, which ensures a stable energy supply and the integration of renewable sources into the power grid.

The first program was launched in January 2024 with a budget of 62 billion forints (163 million euros). The goal was to help businesses build energy storage capacities in the industrial sector, aiming to increase storage capacity twentyfold from the current 20 MW by the summer of 2026. According to the Ministry of Energy, current capacities could be increased fiftyfold by 2030.

In June, Zsófia Koncz, State Secretary at the Ministry of Energy, stated that 2024 is crucial for modernizing Hungary’s electricity grid. The government supported these investments with 160 billion forints (around 421 million euros), including constructing new substations and expanding existing transmission lines. These measures are important for improving the supply security of Budapest and Eastern Hungary.

Nuclear Energy – Key to the Future

Hungary also emphasizes the importance of nuclear energy, with the Paks 1 and Paks 2 power plants expected to produce half of the country’s energy needs by the 2030s. With the full operation of the total solar and nuclear energy capacity, the country can fully supply itself with technologies that produce zero carbon emissions. However, due to unstable weather conditions, which affect the full capacity of solar energy, nuclear energy remains crucial for Hungary. This was confirmed by State Secretary Zsófia Koncz, who stated that extending the operational life of Paks 1 and completing the construction of Paks 2 is essential.

Another energy source that Hungary is focusing on is geothermal energy. For years, the country has ranked among the top five in Europe for direct use of geothermal energy, and there are plans for a significant increase in its use by 2030. The current usage of around 6.4 petajoules is expected to increase to 12–13 petajoules, raising the share of geothermal energy in heat production from 6.5 percent to 25–30 percent. The state will provide 165 billion forints (about 434 million euros) for geothermal investments, including 34 billion forints (around 89 million euros) to reduce geological and financial risks.

Prepared by Katarina Vuinac

The story was published in the new issue of the Energy portal Magazine ENERGY TRANSITION

Mechanisms to Combat Energy Price Volatility – France’s Plan

16.11.2024

struja, električna energija, dalekovod — Photo-illustration: Unsplash (ehmitrich)

The French government recently proposed a new mechanism known as the Rendez-vous Clause, designed to adjust electricity taxes in line with market fluctuations in energy prices. The plan is expected to be part of the 2025 budget, aiming to reduce electricity costs by approximately 9 percent by February 2025 for about 80 percent of households.

Photo-illustration: Unsplash (riccardo-annandale)

In response to global crises and the energy transition, which has caused significant volatility in electricity prices, the proposed clause seeks to align taxes with current market rates to prevent high financial burdens on citizens when paying their bills. Households on regulated tariffs or with contracts indexed to market prices—covering around 76 percent of French households—will directly benefit from this adjustment.

While the concept of aligning household bills with market prices is relatively new in France, similar mechanisms have been implemented globally and have proven effective in maintaining financial stability for consumers during periods of high energy price volatility.

For example, the United Kingdom has an energy price cap mechanism that is regularly adjusted to reflect market conditions. Although the cap is not directly tied to market prices, it protects consumers from sudden and excessive price hikes. The cap covers around 28 million households and is updated every three months. For the period from October 1 to December 31, the price of gas is capped at 6.24 pence per kilowatt-hour (approximately €7.50), while electricity is capped at 24.50 pence per kilowatt-hour (slightly over €29).

In Serbia, there is currently no system directly linking electricity prices for consumers with market price fluctuations, as France plans with its clause. Electricity prices for households in Serbia are primarily regulated and set by the government, though there are variations in tariffs depending on the time of day, allowing citizens to save money by using energy during off-peak hours. However, these tariffs are not directly tied to current market energy prices. Instead, prices paid by consumers are typically reviewed annually or as needed, based on general economic conditions at the time, without mirroring direct changes in the global energy market.

Countries worldwide are exploring various ways to adapt to current energy dynamics, given the fluctuating prices, sudden spikes, and the pressure of climate goals on an already increasing demand for electricity.

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