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What Changes in the Energy Law Bring for the Renewable Energy Sector

Photo-illustration: Freepik (freepik)

The draft amendments to Serbia’s Energy Law introduce significant changes regarding the connection of power plants to the distribution system, especially for plants utilizing renewable energy sources.

It is prescribed that the connection procedure begins with the submission of a request to the distribution system operator for the preparation of a connection study. However, a connection study is not required for power plants with an installed capacity of less than 50 kW.

The connection study must also include temporary power restrictions during the operation of the power plant, for which the distribution system operator is not obligated to pay financial compensation to the producer. This applies if the study shows that the connection of the power plant at certain times could result in the transfer of total active power to the transmission system, exceeding the legally prescribed limits governing the use of renewable energy sources.

It is also prescribed that the distribution system operator and the applicant regulate rights and obligations in detail through a contract on the preparation of the connection study.

Additionally, the applicant is required to provide a bank guarantee for power plants with an installed capacity above 400 kW within the specified period, ensuring that the plant will be constructed within the defined timeframe. If, after the deadline for providing the bank guarantee, the total required capacity for power plants is reduced, the distribution system operator is obliged to update the connection study ex officio.

The distribution system operator is required to issue the conditions for design and connection within 15 days of receiving the application, provided that the applicant has secured a planning document and developed a conceptual solution. Furthermore, the operator must create and publish a connection procedure on its website.

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Regarding the construction of a connection to the distribution system, it is specified that the distribution system operator is the investor in the construction of the connection. At the request of the entity with the connection study and location conditions, the operator is required to conclude a connection agreement, authorizing the entity to construct the connection on behalf of the distribution system operator.

The distribution system operator is obliged to enable priority access for power plants using renewable energy sources with an installed capacity of less than 400 kW, as well as those with an installed capacity of less than 200 kW that begin operation after January 1, 2026. Priority access is also granted to plants with demonstration project status, limited to the necessary period and scope required to achieve the purpose of the project. It is specified when the Agency may, at the operator’s request, grant an exemption from priority access, with the obligation to inform the Energy Community Secretariat.

Photo-illustration: Freepik (freepik)

The draft law also regulates the certification of installers for facilities utilizing renewable energy sources. The introduction of certification for installers of renewable energy facilities will bring numerous benefits to Serbian citizens, including increased safety and security, installation quality that ensures optimal efficiency and system longevity, better protection, and consumer trust from professionally executed installations that prevent potential losses and system issues.

“Standards and guidelines for installation will be established, helping to achieve consistency across the industry, thereby contributing to market order. This, in turn, can facilitate the quicker adoption of renewable energy as part of the energy mix and promote sustainable energy technologies,” the document states.

In the section on energy permits, the draft law stipulates that an energy permit is not required for the construction of facilities built under the law on the use of renewable energy sources and for energy storage.

Energy portal

Furniture and Wood – The Driving Force of Bosnia and Herzegovina’s Wood Industry

Photo: Courtesy of Dinko Mujkić

The Furniture and Wood (Namještaj i Drvo) Wood Cluster Association from Sarajevo is a key organization that brings together around 80 companies from the wood industry and furniture manufacturing sectors, as well as research and educational institutions across Bosnia and Herzegovina. The cluster is dedicated to improving collaboration among its members, developing sustainable production, increasing exports, and educating the workforce.

The cluster actively promotes domestic products through numerous projects and initiatives, boosts market competitiveness, and implements innovations and new technologies. Their activities encompass development and innovation, promotion and marketing, networking, education, and sustainable development. Additionally, through partnerships with similar organizations in the region, the cluster successfully collaborates at the international level, further contributing to strengthening the wood industry in Bosnia and Herzegovina.

Photo: Courtesy of Dinko Mujkić

Dinko Mujkić, president of Furniture and Wood, told the Energy Portal Magazine that illegal logging poses a major problem in Bosnia and Herzegovina, with significant negative consequences for the wood sector.

“The Furniture and Wood Association emphasizes the importance of passing a Forest Law, which would regulate this area and enable more efficient control. We believe that curbing illegal activities requires enhanced inspections, introducing digital forest monitoring systems, raising public awareness, and stronger regional and international cooperation,” Mr Mujkić adds.

On the other hand, the cluster members believe that the government’s approach to the wood sector in Bosnia and Herzegovina is not at a satisfactory level. Issues such as insufficient law enforcement, lack of political will, and corruption further complicate the situation, threatening the sustainable development of this sector.

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The Importance of Trade Fairs for the Wood Industry in Bosnia and Herzegovina

Participation in trade fairs is of exceptional importance for furniture manufacturers from Bosnia and Herzegovina. Mr Mujkić highlights that trade fairs provide an opportunity to increase visibility and recognition in the global market, network with key industry players, keep up with the latest trends and innovations and expand markets and exports. Additionally, direct contact with customers at fairs allows manufacturers to receive feedback and adjust their products to market needs. He particularly highlights the importance of collective appearances at fairs such as MOW in Germany, IMM Cologne, Salone del Mobile in Milan, and others, as this helps strengthen Bosnia and Herzegovina’s image as a country with a high-quality wood industry.

Decline in Exports of Bosnia and Herzegovina’s Wood Industry

The wood industry of Bosnia and Herzegovina has faced a decline in exports in recent years, which significantly affects this sector. The value of wood industry exports in 2023 amounted to 1,592,465,387 BAM, a decrease of 12.3 percent compared to the previous year. The decline in exports mainly affects the furniture sector, which accounted for 43 percent of total exports last year, with a 3.9 percent decrease compared to 2022. This trend negatively impacts wood processors, reducing revenues and making business operations more difficult. Our source highlights the need for government support to increase exports by strengthening legal regulations and improving the business climate in the country.

Prepared by Milica Radičević

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

Proposed Law on Amendments to the Energy Law: What Changes are Being Introduced?

Photo-illustration: Freepik (pvproductions )

Since the Energy Community Treaty came into effect in 2006, an agreement between the European Community, Serbia, and other regional countries, Serbia has been obligated to align its national legislation in the energy sector with the European Union’s legal standards. To advance the reform process in the energy sector, Serbia adopted the Energy Law in 2014, which aims to establish conditions for the development and efficient operation of all entities conducting energy-related activities according to market principles, while also harmonizing this law with EU regulations.

As part of this ongoing process, the Energy Law Amendment Acts of 2021 and 2023 were adopted.

Following decisions by the Energy Community in 2022 that required Serbia to incorporate certain EU regulations from the Third and Fourth Energy Packages, a deadline for alignment was set for December 31, 2023. However, additional obligations in December 2023 extended the deadline for incorporating EU Regulation 869/2022, concerning trans-European infrastructure guidelines, to December 31, 2024.

The draft law on amendments to the Energy Law, adopted by the Government of Serbia, specifically addresses fulfilling this obligation, allowing for the incorporation of regulations from both packages, so Serbia can meet its commitments to the Energy Community.

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Key Provisions Introduced in the Draft Law

Below are some important changes included in the draft law on amendments to the Energy Law.

The draft law introduces new terms and their definitions, including the concept of “energy poverty.”

It provides for the adoption of a Hydrogen Development and Usage Program, as well as a Program for the Development and Use of Thermal Energy. These programs aim to define the directions and public policies for production and utilization in these sectors. For hydrogen, additional provisions cover its transportation and storage.

In terms of supply security, there is a requirement to establish a Special Working Group for Energy and Energy Supply Security to monitor the supply to the domestic market. Additionally, the Ministry is required, on the Agency’s recommendation, to set system reliability standards in a Supply Security Report.

Photo-illustration: Unsplash (Dina Lydia)

The draft law mandates the appointment of a competent authority in Serbia responsible for planning and managing risks in the electricity sector, identifying scenarios for energy crises, and developing and implementing a readiness plan. A Risk Readiness Plan, based on crisis scenarios, will be adopted at the Ministry’s proposal and updated every four years.

Regarding energy activities, a new activity, “aggregation as a market activity,” is introduced. New conditions are specified for when an energy permit is not required for constructing energy facilities, and new requirements for issuing energy permits are also specified. The scope of electricity production has been expanded to include power plants using two or more electricity generation technologies, including facilities for storage integrated into a single production system.

The capacity assurance mechanism is also addressed, including when the Government can implement this mechanism to eliminate deficiencies in electricity production and transmission systems. From July 2025, generation capacities emitting more than the permitted CO2 level will not be eligible for this mechanism. The transmission system operator will be responsible for procuring necessary capacities.

Responsibilities have been increased for both transmission and distribution system operators.

For connecting power plants to the distribution system, the process will begin by submitting a request to the distribution system operator to prepare a connection study. The connection study is not required for power plants with an installed capacity of less than 50 kW.

Concerning advanced metering systems, it specifies the cases in which end-users are entitled to an advanced meter.

Provisions related to nuclear energy have also been added, defining phases in the development of a civil nuclear energy program. It states that the Ministry will perform expert and executive tasks related to assessing the justification of adopting a nuclear energy program, its jurisdiction, and sources of funding for activities within the stages of assessing the justification of nuclear energy development. Additionally, on the day this law comes into effect, the Law on the Ban of Nuclear Power Plants in the Federal Republic of Yugoslavia will be repealed.

Katarina Vuinac

Successfully Lowered Rotor in the Bajina Bašta Reversible Hydropower Plant

Foto-ilustracija: Pixabay

The revitalization of the first unit of the Bajina Bašta reversible hydropower plant represents a crucial investment for “Elektroprivreda Srbije.” The project is in its final stages following the successful lowering of the 450-ton rotor into the generator stator.

This complex operation, lasting several hours, required precise work with cranes, hoists, and special cables, as well as an experienced team and favorable weather conditions.

“All conditions were met, and the task was completed flawlessly,” stated Slobodan Spasojević, head of the Mechanical Maintenance Department at the Bajina Bašta Hydropower Plant.

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The project is being executed by the Japanese company “Toshiba,” with support from subcontractors “Goša Montaža,” “Elektromontaža,” and “Elektroremont,” while oversight and crane operations are handled by the Bajina Bašta Hydropower Plant team, as stated in EPS’s announcement.

The next steps include connecting the rotor with the shaft, assembling the upper cross of the generator, and the upper guide bearing of the generator. The revitalization of the first unit is expected to be completed this year, with the second unit scheduled for 2025 as planned.

Upon completion of this revitalization project, taking place 42 years after the plant’s commissioning and 20 years since the last major overhaul in 2004, the long-term operation of this vital facility for “Elektroprivreda Srbije” will be secured. The revitalization ensures that the Bajina Bašta Hydropower Plant continues to provide reliable energy supply.

Energetski portal

Tree Planting in the Arctic Could Accelerate Global Warming, Scientists Warn

Foto-illsutration: Unsplash (John-o-Nolan)

Tree planting is widely promoted as a cost-effective way to reduce global warming due to trees’ ability to store large amounts of carbon from the atmosphere. However, an international group of scientists argues that planting trees in northern regions may actually accelerate, rather than slow down, planetary warming.

As stated in their study published in the journal Nature Geoscience, the possibilities for tree planting are shifting further north due to global warming, leading many governments and corporations to propose large-scale afforestation projects in the Arctic as a means of mitigating climate change. However, planting trees in unsuitable locations, such as tundras, wetlands, or vast sections of boreal forests with sparse canopies, may actually worsen the problem.

Associate Professor Jeppe Kristensen from Aarhus University in Denmark explains that the specific characteristics of Arctic and sub-Arctic ecosystems make them unfavorable for afforestation as a climate change mitigation strategy.

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Kristensen explains that Arctic soils store more carbon than all the vegetation on the planet, but they are extremely sensitive to changes. Activities such as land preparation for forestry or agriculture, as well as the penetration of tree roots, can disturb this carbon in the soil. Additionally, during spring and early summer, when snow still covers the ground, the region experiences semi-continuous daylight, further affecting the Arctic’s energy balance. Since snow reflects sunlight, the white snow surface helps deflect heat. However, the presence of trees, which are darker (green and brown), reduces the ground’s reflectivity and allows for more heat absorption, contributing to the region’s warming.

The researchers note that while carbon storage is important for the overall energy balance, in northern regions, the focus should be on how much sunlight is reflected back into space without being converted into heat (known as the albedo effect).

Additionally, regions surrounding the North Pole in North America, Asia, and Scandinavia are prone to natural disturbances—such as wildfires and droughts—that destroy vegetation.

They therefore call for a holistic view of ecosystems to identify truly significant nature-based solutions that do not jeopardize the overall goal of slowing climate change.

Milena Maglovski

COP29: Key Climate Negotiations Begin in Baku

Foto-ilustracija: Pixabay

The United Nations Climate Change Conference, known as COP29, begins today in Azerbaijan’s capital, Baku, and will run until November 22. Undoubtedly the most significant event shaping the future of the global fight against climate change, this year’s conference brings together world leaders, scientists, and activists to achieve new agreements and strategies.

On the first day of the conference, a formal opening and the start of key negotiations are scheduled, with a focus on defining financial mechanisms to support developing countries in reducing emissions and adapting to climate change.

The main goal of COP29 will be to maintain ambition to limit global warming to 1.5°C, in line with the latest scientific findings. An agreement on long-term strategies for achieving climate resilience is also expected, with particular emphasis on funding climate actions. One of the key objectives will be an agreement on a new, joint, and ambitious financial framework to enable effective resource mobilization for climate action support worldwide.

Photo-illustration: Pixabay (DragonDash)

In addition to setting targets, the conference aims to secure significant financial investments needed to reduce emissions, protect vulnerable communities, and support adaptation to new climate conditions. Through this approach, COP29 aspires to achieve balanced outcomes, facilitating international cooperation that will contribute to the long-term protection of the planet and the global population from the impacts of climate change.

Alongside Serbia, other Western Balkan countries are expected to participate in COP29, including Croatia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania. All these countries are signatories of the United Nations Framework Convention on Climate Change (UNFCCC) and regularly attend the annual conferences.

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Discrepancy Between Climate Goals and Energy Policies

After COP28, held in Dubai in 2023, many criticized the host country selection, given that it is one of the largest oil producers. Similar criticisms accompany this year’s COP29, as despite Azerbaijan’s plans to reduce emissions and increase the share of green energy in its energy mix, challenges remain in aligning these goals with an economy based on oil and gas extraction.

Azerbaijan’s oil industry encompasses large reserves in the Caspian Sea, and the country has significant natural gas reserves, raising questions about how the host of a climate summit can simultaneously advance ecological goals while developing fossil resources.

Criticism has also been directed at future hosts, such as Brazil, which also plans to increase fossil fuel production. The disconnect between the host countries’ energy strategies and global climate goals undermines trust in the negotiation process and its effectiveness in achieving long-term climate solutions.

Energetski portal

A New Guide Reveals the Benefits of Agrisolar for Farmers

Photo-illustration: Unsplash (Mariana Proença)

To enable additional benefits for agriculture and the energy sector, SolarPower Europe has published a guide on agrisolar, showing through examples how farmers and landowners can benefit from implementing agrisolar projects on their farms.

The guide states that agrisolar can particularly benefit rural communities and economies by creating jobs, generating community revenue, and, for instance, improving energy security. By using their own renewable energy, farmers can reduce energy costs.

It also helps reduce water consumption through irrigation. Specific examples include lower temperatures under solar panels, as well as reduced evapotranspiration—the process by which water evaporates from soil into the atmosphere. Panels installed above crops lower temperatures, which leads to less water evaporation from the soil.

This becomes increasingly important with rising temperatures and extreme weather events caused by climate change, as it helps improve crop resilience.

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Farmers who use agrisolar systems have access to modern renewable energy technologies, such as smart irrigation systems and precision farming, as the solar panels allow them to use their own energy to power these advanced tools. These technologies optimize resource use, reduce costs, and increase productivity, making agriculture more efficient and sustainable, the guide states.

In terms of crops, solar panels protect them from extreme weather conditions such as droughts, intense sunlight, floods, or hail. Panels installed above the ground create shade, reducing direct sunlight and moisture loss, allowing for the growth of plants that might not survive under intense sun. In this way, agrisolar systems help increase plant diversity and improve conditions for other biodiversity species, such as bees and birds. Additionally, the shade provided by the panels creates more comfortable and safer conditions for animals grazing in the fields.

More specific data shows that agrisolar models can contribute up to 60 percent higher yields, increase pollinator presence by 60 percent, and improve soil temperature by 7°C. For more information and specific examples, you can access the guide here.

Katarina Vuinac

WWF Adria Supports Innovative Environmental Projects

Foto-ilustracija: Unsplash (Dejan Zakic)

New projects by citizen associations and non-governmental organizations across Serbia will receive support from WWF Adria. WWF Adria will support 15 new projects from citizen associations and non-governmental organizations throughout Serbia. Financial support of up to 18,000 euros per project has been allocated for 15 initiatives focused on protected species and habitats, water conservation, freshwater systems, and climate change.

This is the third and final call under the auspices of Serbia’s Actions in Environment, Nature, and Climate – Safe Nature and Climate project. Through this project, WWF Adria aims to boost the capacities of local associations and organizations and support initiatives in their communities that will improve the quality of life.

Protected Species and Habitats

Ecosparek manages the protected area Ada and Slopes near Slankamen, where it is implementing a project to protect the Spotted Flycatcher, a species in decline. The project includes pasture revitalization and creating conditions for recovering this endangered species. The work will involve removing invasive species, cleaning silt from canals, maintaining water systems, controlling grazing, and installing protective fences.

IN FOCUS:

Water Conservation and Freshwater Ecosystems

Protection of Freshwater Ecosystems in the Velika Morava Valley – Join In is a project aimed at building knowled ge about freshwater ecosystems in the Pomoravlje region and assessing existing harmful impacts. The project plans to research, identify, and map the status of freshwater ecosystems (rivers, ponds, and wetlands) by assessing biodiversity and the distribution of certain wild species. It will also analyze current policies related to water management, wastewater, and gravel extraction in selected ecosystems.

Blue Oases of Southeast Serbia – UG Vision is a project that will identify endangered species and assess their condition at the sites of Krupačko Blato, Smilovska Lakes, and Dag Banjica. After identifying and analyzing pressures on biodiversity at these locations, at least one mitigation measure will be developed for each site, along with management plan recommendations.

Freshwater Protected Areas as a New Model for Conservation of Freshwater Ecosystems in Serbia – Ekomar is focused on increasing knowledge about the potential application of the Freshwater Protected Area (FPA) concept in Serbia to protect freshwater species and ecosystems. Initially, an assessment will be made of the current state of existing “special fish habitats” in Serbia, followed by a systematic analysis of current legislative solutions related to the FPA concept and an assessment of gaps. Finally, recommendations will be developed for new legislative solutions and the introduction of freshwater-protected areas.

Photo-illustration: Pexels (Sathish kumar Periyasamy)

Kraljevac Special Nature Reserve – A Best Practice Example of Reducing Negative Impacts on Freshwater Ecosystems in Vojvodina – Institute for Regional Development will be an excellent example of freshwater system conservation in the Kraljevac Special Nature Reserve. The project will map freshwater wetland ecosystems, including specific ecosystems and species. Additionally, an analysis of the presence of microplastics in wetland ecosystems will be conducted to demonstrate human impact, and scientifically based recommendations for the protection of wetland ecosystems will be provided.

Forgotten Urban Oases – Nature’s Survival – This project aims to initiate efforts to protect the former meander of the Danube, located in the Klisa neighborhood of Novi Sad. Today, the meander forms a lake with surrounding wetland areas home to numerous protected and strictly protected species. The plan includes a campaign to raise awareness about preserving this location.

WWF

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

Citizen Participation in the Energy Transition: Towards a Fair and Inclusive Society

Photo-illustration: Unsplash (Chang Duong)
Photo: courtesy of Maja Pupovac

Climate change affects everyone on the planet, but those most vulnerable are often the least responsible for causing it. These vulnerable and marginalized groups, including the economically and socially disadvantaged, usually lack the resources and capacity to cope with the consequences of climate change. This double injustice—where the most vulnerable are both the least responsible and the least equipped to adapt—can become a triple injustice if the costs of the energy transition disproportionately burden low-income groups and vulnerable communities. Therefore, it is crucial to ensure that the transition to renewable energy does not deepen existing inequalities but rather becomes an opportunity to create a fair and inclusive society where everyone benefits from sustainable development.

Focusing on justice and equality distinguishes a just transition from a simple energy transition. While the energy transition is primarily concerned with the technical and economic aspects of shifting from fossil fuels to renewable energy sources, a just transition adds a social justice dimension, emphasizing the need for an inclusive and equitable process. Recognizing that different communities are unequally affected by climate change and changes in the energy sector, a just transition aims to reduce greenhouse gas emissions and ensure that no one is left behind during this process. This includes workers in the fossil fuel industry, entire regions and communities dependent on this industry, and particularly vulnerable and marginalized groups such as the poor, energy-poor, elderly, women, and ethnic minorities.

Justice in the energy transition process is primarily ensured through the fair distribution of benefits and costs (distributive justice). The benefits of transitioning to green energy—such as new jobs, improved quality of life, and environmental gains like clean air, water, healthy soil, and green spaces—must be accessible to all. In contrast, the costs of the transition should not disproportionately burden vulnerable and marginalized groups. The gradual shift to renewable energy should also be accompanied by rectifying injustices and harm caused by economic and social transformations (restorative justice). This includes a range of policies and activities aimed at supporting workers from declining industries—such as miners and employees of thermal power plants— and providing support to regions and local communities most reliant on fossil fuel exploitation. Support for workers could include financial compensation for job losses, retraining, new skills development, and educational programs to provide social security during the transition period. Affected communities should be offered economic revitalization through infrastructure investments, the development of new industries, and support for local entrepreneurship.

It is essential to recognize and respect the cultural, historical, social, and economic specificities of different communities and groups, ensuring that their identity, experiences, rights, and needs are taken into account (recognition justice). Finally, the energy transition becomes just only when the process is transparent, participatory, and inclusive (procedural justice), which is a fundamental prerequisite for achieving all other forms of justice. The decision-making process must be open and clear, allowing the public to monitor and evaluate the outcomes. All relevant actors, including vulnerable and marginalized groups, must have equal access to information and the opportunity to actively participate in decisions that directly affect them.

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Citizen Participation

Involving citizens in the process of a just energy transition offers numerous benefits for policymakers and decision-makers. First, citizen participation improves the quality of adopted policies and measures. Utilizing local knowledge and perspectives leads to decisions better suited to real circumstances and needs, increasing their effectiveness and sustainability. Citizen participation also enhances the legitimacy of the decisions made. When the transition results from joint work and consensus, citizens feel ownership of the process, contributing to greater support and acceptance of new policies and measures. Furthermore, transparent processes in which citizens are continuously informed and consulted build trust between the community and decision-makers, reducing the risk of conflict and resistance to changes. This is particularly important in the context of Serbia, where research shows that citizens harbor deep distrust in institutions, perceiving them, among other things, as insufficiently interested in the real needs of ordinary people. Lastly, considering that inclusiveness is one of the core principles of a just transition, involving different voices and perspectives—especially those of vulnerable and marginalized groups—ensures that the transition is truly fair and that no one is left behind.

Maja Pupovac, PhD

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

Sweden Closes the Baltic Sea to Offshore Wind Farms – 13 Projects Cancelled

Foto-ilustracija: Pixabay
Photo-illustration: Pixabay

The Swedish government recently canceled 13 offshore wind farm projects, citing military concerns as the reason. This decision has shaken the energy sector, particularly due to the closure of a large part of the Baltic Sea to wind energy development. The suddenly halted projects had a capacity of nearly 32 GW. Besides having a major impact on investors, this decision significantly affects Sweden’s energy sector and its ability to meet climate goals. Unlike Sweden, other Baltic Sea countries have sought to reconcile concerns by fostering collaboration between the military and the wind industry, while Sweden has taken a different approach for security reasons.

Countries like Poland view offshore wind farms as strategic assets that can enhance military surveillance capabilities by integrating radar systems, thereby strengthening their defense operations, as mentioned on the website.

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While Sweden reassesses its strategies, the broader European community continues to monitor and establish a balance between national security and sustainable energy development.

The canceled projects were expected to potentially double the current electricity generation capacity in this Scandinavian country. Although most projects were still in the early stages of development, their cancellation means a loss in renewable energy capacity and private investments that could have increased by several tens of billions of euros.

Sweden’s wind energy sector lags despite its extensive coastline along the Baltic Sea, with offshore wind capacities amounting to only 0.2 GW, whereas Denmark, a much smaller country, has 2.6 GW. This starkly highlights Sweden’s slow adoption of wind energy, which could be a crucial component of its energy sector given its climatic conditions, as noted on WindEurope’s website.

Energy portal

EBRD and EU Launch SME Go Green Programme in Serbia

Foto-ilustracija: Unsplash (Micheile Henderson)

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are stepping up their support for green economy investments in Serbia.

The EBRD, with the support of the EU, is launching a new credit line to local financial institutions for on-lending to small and medium-sized enterprises (SMEs) under the SME Go Green programme.

In its initial phase, the programme will provide 120 million euros of targeted SME financing in the Western Balkans region, including Serbia. The expectation is that the programme will reach 400 million euros in overall size over the next few years

The programme is regional and supported by grants from the EU via the Instrument for Pre-accession Assistance under the Western Balkans Investment Framework (WBIF). The EU is providing 24.94 million euros (split into 19.45 million euros for investment incentives for SMEs and 4.9 million euros for technical assistance) to support 120 million euros of EBRD credit lines.

The programme will encourage the competitiveness of SMEs by helping eligible Serbian businesses to access finance for investments that meet EU and international standards.

The funding will be fully dedicated to green economy investments, including energy efficiency, resource efficiency and renewable energy investments, and will help to reduce greenhouse gases in the country.

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SME Go Green aims to help the agribusiness sector in Serbia reduce its environmental impact and become more sustainable and resilient to the risks of climate change. It further aims for 100 per cent of the proceeds of the programme to be used to finance green technologies.

Another key aspect of the programme is empowering women in business through dedicated funds to support women-led SMEs.

Photo-illustration: Freepik (freepik)

On successful completion of their investment projects, SMEs will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain.

SME Go Green builds on the success of the Serbia SME Competitiveness Support Programme, which delivered a total of 50 million euros in EBRD funding, complemented by 9.54 million euros in EU funds.

The SME Go Green programme was launched at an event dedicated to the EBRD’s and EU’s support for SMEs in Serbia. Matteo Colangeli, EBRD Regional Director for the Western Balkans, attended, along with Nicola Bertolini, Head of Cooperation, Delegation of the European Union to Serbia, and Katarina Obradović Jovanović, Serbia’s Assistant Minister of Economy, Sector for Development of Small and Medium Enterprises and Entrepreneurship.

During the event, a 5 million euros loan agreement was signed with NLB Komercijalna banka under the SME Go Green Programme.

The EBRD is a leading institutional investor in Serbia and has invested more than 9.3 billion euros through 364 projects to date, the majority of which have supported the private sector. The Bank’s focus in Serbia is on boosting private-sector competitiveness, the green energy transition and sustainable infrastructure.

Source: EBRD

EU Innovation Fund Supports Technology Development in Wind Energy Sector

Photo-illustration: Freepik (kjpargeter)

The European Commission recently announced the results of a new call from the EU Innovation Fund, which, for the first time, focused solely on clean energy production. This call aims to support projects that will contribute to decarbonization and the development of new technologies in renewable energy. To advance the development of wind energy, out of a total of 85 projects, six were selected in this field, with at least four specifically related to offshore wind energy.

The allocated funds will contribute to building production capacities for key components of wind turbines. These projects include the production of next-generation drive trains, XXL towers for offshore wind farms, as well as new rotor designs and small to medium-sized wind energy systems.

Successful project locations are planned in Denmark, Germany, Poland, and Spain, further strengthening the competitiveness of the European Union’s industry in the global renewable energy market.

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For a total of 85 innovative projects aimed at achieving net zero emissions, 4.8 billion euros has been allocated. It is planned that these projects will be implemented and become operational before 2030. During the first ten years of operation, they are expected to reduce CO₂ equivalent emissions by approximately 476 million tons.

The thematic areas within this call relate to five main topics, from the general decarbonization of large, medium, and small systems to the production of clean technology focused on renewable energy components, energy storage, heat pumps, and hydrogen production. Also included are projects related to deep decarbonization, aiming to achieve a reduction in greenhouse gas emissions by at least 75 percent compared to the reference scenario.

The EU Innovation Fund is one of the world’s largest programs for financing the demonstration of low-carbon technologies. By 2030, the Fund plans to allocate approximately 40 billion euros in total funding.

Katarina Vuinac

Spain Between Droughts and Floods – A Mirror of Climate Change

Foto ilustracija: Unsplash ( Easton Mok)

Unfortunately, troubling news is coming from Spain – the country has experienced one of the worst floods in recent history, with at least 95 fatalities, dozens missing, and massive material damage. Images of cars scattered like plastic toys raise the question in my mind: what kind of force swept through Valencia and entirely transformed the face of this vibrant area?

This relentless force manifested in the form of 400mm of rain per square meter in just one day, which is more than the typical monthly rainfall. Survivors report water levels reaching up to two meters high, and numerous videos on social media show torrents sweeping everything in their path.

To make the situation even more bizarre, only a few months earlier, Spain faced another crisis caused by drought, which threatened water supplies and agriculture. In Catalonia, for instance, a state of emergency was declared in February of this year when water reserves fell below 16 percent, resulting in strict restrictions. Fruit production, including grapes, suffered losses between 30 percent and 70 percent, and wine production fell short due to the years-long drought.

Moreover, new studies indicate that Spain is rapidly shifting from a temperate Mediterranean to a desert climate and that by 2050, rainfall levels could decrease by as much as 20 percent compared to current levels.

Photo-illustration: Pixabay

There is no doubt that Spain has become a true “battlefield” of climate contrasts in recent years. However, for those not at the heart of these events, it may be difficult to connect these dramatic scenes with the everyday news about climate change. Drought and flood in the same country in such a short time? It seems paradoxical, but this pattern aligns with the climate scenario that many climatologists have predicted for decades.

Spain is at a critical point of climate change, situated on the border between the subtropical and Mediterranean climate zones. Climate change is causing more extreme temperatures, reducing snowfall in the mountains, and accelerating water evaporation from the soil. This contributes to summer droughts, and when rain finally falls, the dry ground cannot absorb the water. This phenomenon leads to rapid water runoff, resulting in floods.

Meteorologists and climate experts emphasize that without swift action and infrastructure adaptation, the consequences could worsen. Spain must take decisive steps to become more resilient to extreme weather conditions and reduce its carbon footprint. Strengthening infrastructure, improving irrigation systems, reforesting, and protecting existing ecosystems are just some of the ways to address these issues.

The responsibility, of course, lies with all of us, as Spain, although a European leader in new renewable energy capacities and noted for numerous efforts to protect nature and reduce pollution, cannot mitigate the climate crisis alone if other countries do not take their roles seriously.

Climate change is our global enemy and requires global action, and the natural disasters the world faces today are a call to understand the nature that surrounds us and the responsibility we all share.

Milena Maglovski

UN: Climate Change Leads to Glacier Retreat in the Caucasus

Foto-ilustracija: Unsplash (Daniel Leone)

Climate change has left serious consequences in six Caucasus countries, causing glacier retreat and reduction in river flows, according to a new report from the United Nations Environment Program (UNEP) published ahead of the COP29 conference.

The report, titled Caucasus Environment Outlook (CEO-2), focuses on the Caucasus region, covering Armenia, Azerbaijan, Georgia, as well as parts of Iran, Russia, and Turkey.

This document reveals that glaciers have, on average, receded by 600 meters over the past century, and since 2000, more than 11 billion tons of freshwater, previously stored in ice, have been lost. Water is becoming an increasingly unevenly distributed resource in the Caucasus countries; for example, groundwater withdrawal in Armenia has doubled since 2000, while in Azerbaijan it has increased by as much as 400 percent.

The report also predicts that by the end of the century, river flows in this region could decrease by about 20 percent. Furthermore, between 2000 and 2020, the annual flow of the Kura River, which flows through Turkey, Georgia, and Azerbaijan, decreased by 20 percent. With diminished snow and glacier coverage in mountainous areas, the report foresees further declines in freshwater supply and calls for cross-border data exchange and innovative solutions to mitigate the impacts.

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Additionally, according to estimates from the Intergovernmental Panel on Climate Change (IPCC), average temperatures in the region could rise by about 3.6°C by the end of the century compared to the baseline from 1970-2000. The Caucasus region is facing intensified heat waves, with a significant increase in the number of extremely hot days in Azerbaijan. In Baku, between 1991 and 2020, 365 days with temperatures above 35°C were recorded, compared to 86 days during the period from 1960 to 1990.

The temperature increase will most severely affect mountainous areas, where glacier melt already poses a serious risk of flooding. The impacts of climate change were felt in August 2023 when a devastating mudflow, triggered by heavy rains and melting ice, claimed at least 24 lives in Georgia.

Photo-illustration: Pixabay

In addition, soil erosion, exacerbated by heavy rainfall and unsustainable practices, is reducing arable land, especially in Turkey, where 71 percent of agricultural land and 59 percent of pastures are affected.

Despite the challenges, the UNEP report highlights the potential for progress through renewable energy sources and the expansion of protected areas. Azerbaijan now protects over nine percent of its territory, while the protected area in Georgia has increased to nearly 11 percent.

The report’s authors add that climate change adaptation measures should be integrated into policies and legislation, requiring strong political support. Urban planning should also take environmental factors into greater consideration, and cross-border watershed management plans should be developed.

Energetski portal

Stricter EU Regulations for Wastewater Treatment

Foto-ilustracija: PIxabay

The European Council has officially approved the revised European Union directive on wastewater treatment, introducing new regulations as part of the EU’s Zero Pollution Action Plan.

The updates include extending the rules to smaller settlements, meaning that member states will now need to collect and treat wastewater from all settlements with a population equivalent of over 1,000. Previously, the threshold was 2,000. Population equivalent (PE) is a measure used to assess pollution levels in urban waters. By 2035, all such settlements will need to have wastewater collection systems connected to all sources of domestic wastewater.

Additionally, removing biodegradable organic matter before discharge into the environment will be mandatory. By 2039, facilities treating wastewater for populations equivalent to over 150,000 will be required to remove nitrogen and phosphorus. Finally, by 2045, these facilities will have to apply additional treatment to remove micropollutants.

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The revised directive will cover a broader range of pollutants, with pharmaceutical and cosmetic manufacturers being the primary sources of micropollutants in urban wastewater. Consequently, these producers will be required to cover at least 80 percent of the additional treatment costs through a special financial scheme based on extended producer responsibility, aligned with the “polluter pays” principle.

The third update requires wastewater treatment plants to use more energy from renewable sources to achieve energy neutrality. By 2045, plants with a capacity of 10,000 PE or more must operate using energy from renewable sources.

Once in effect, member states will have 31 months to align their national legislation with the new rules.

Energy portal

Youth Innovations – Eco-Friendly Solar Heating Stove

Photo: Courtesy of Daris Filović and Hadžera Đug

Young people worldwide are increasingly recognizing the importance of environmental conservation. Their passion and innovative approaches often result in creative solutions for reducing waste, preserving natural resources, and combating climate change. Through innovative projects and various ideas, they demonstrate their commitment and contribute to preserving our environment while inspiring others with their actions. Although it may sometimes seem that their efforts go unnoticed or misunderstood, the opposite often occurs—they become pioneers and drivers of significant change. A testament to how well-conceived projects can gain recognition and attract attention is the invention by Daris Filović and Hadžera Đug from Bihać, fourth-year students in the mathematics and informatics department at the Richmond Park School.

Photo: Courtesy of Daris Filović and Hadžera Đug

These two talented young researchers have developed a project that ensures completely free central heating for households with no negative impact on the environment. The development of their patent began in 2023, and after numerous challenges and obstacles, they completed and successfully tested their invention in just under three months.

“The idea came to us from applying transformers, which overheat due to eddy currents. We thought about how to harness this physical force to generate thermal energy. Our patent works on the principle of electromagnetic induction and eddy currents that release thermal energy. If the alternating motor is powered by solar energy, we get completely free heating that is eco-friendly, as it does not produce any pollution in the form of smoke or harmful gases,” explain Daris and Hadžera.

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Medals at Prestigious International Competitions

They are proud that their invention has generated great interest and enthusiasm. Over the summer, these two young innovators participated in the prestigious Chinese Adolescents Science and Technology Innovation Contest (CASTIC) in Tianjin, China, where they won the gold medal. CASTIC, which has been held for 38 years, is one of the world’s largest and most prestigious competitions, bringing together representatives from 20 countries with over 500 projects.

In addition, Daris and Hadžera are two-time champions of the Bosnian-Herzegovinian Science Olympiad (BOSEPO), where they won gold medals within a single year, marking a first in the history of this prestigious competition for high school students. They proudly carry the award in the field of engineering, and in December 2023, they were also recognized for their short feature film.

They also had the opportunity to present their project at the Genius Olympiad in New York, the largest global competition for high school scientific innovations. In an exceptionally tough competition, they managed to secure third place, impressing the judges of this prestigious event. This success earned them partial scholarships to RIT University, one of the most prestigious in the world.

Prepared by Jasna Dragojević

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