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WHY IS IT IMPORTANT TO IMPROVE ENERGY EFFICIENCY IN AFRICA?

Photo-illustration: Freepik (wirestock)
Photo-illustration: Freepik (BiZkettE1)

Africa’s population is growing faster than any other region worldwide, with electricity demand expected to increase by 75 per cent by 2030. To ensure that Africa is sustainable, the continent must have universal access to modern energy services by 2030. More precisely, current progress must be expedited at least threefold, according to the International Energy Agency (IEA).

To this end, the IEA held a training week in Nairobi on energy efficiency policies in developing African countries, supported by the Kenyan Ministry of Energy and Petroleum, as well as the African Development Bank (AfDB). The event brought together close to 200 policymakers and energy experts from across the continent. On the occasion, it was pointed out that energy efficiency still played a key role in improving living standards worldwide while at the same time contributing significantly to the accomplishment of climate goals.

Kenya has made significant progress in developing renewable energy and facilitating access to electricity, with RES accounting for nearly 90 per cent of the energy produced and consumed in 2021. Access to electricity has doubled from 2013 to 2022, i.e. from 37 to 75 per cent. Precisely because of this increase, the implementation of energy efficiency is very important.

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The training week is part of the IEA Energy Efficiency in Emerging Economies Programme. Through this programme, the IEA cooperates with six of the world’s largest developing economies to improve energy efficiency. The data shows that Brazil, China, India, Indonesia, Mexico, and South Africa together consume about one-third of the world’s energy, and predictions are that this will rise to 40 per cent.

This cooperation has five key implementation ways. Support for policy development involves focusing on the daily needs of officials responsible for implementing energy efficiency policies. There are also thematic workshops that bring together officials and experts from multiple countries to explore specific topics. There are also group training sessions for officials and future leaders and webinars that provide access to numerous experts. Finally, online training focusing on learning about energy efficiency indicators is available, too.

Energy Portal

Indoor Landscaping – Life of Plants in Artificial Conditions

Photo-illustration: Freepik (vecstock)
Photo-illustration: Unsplash (Liubov Ilchuk)

March is the time when we celebrate wild species, water, forests, and the living world, with the common thread being let’s preserve our nature. Spatial planning, agriculture, and other human activities are degrading daily and reducing the natural expanses that are home to biodiversity.

While we penetrate every part of nature, destroying it and replacing it with concrete walls, we are also aware that we cannot live without it. That’s why people find different ways to get a fraction of nature into their living space.

We must admit that nothing can embellish and give life to concrete walls like plants can. Today, I would like to write about an innovative solution designed by scientists, which allows landscaping of underground spaces that are notoriously difficult to grow plants.

In this specific case, we are talking about the lobby of a Prague subway line. Architectural solutions never cease to amaze us, so this time, the scientists of the University Centre for Energy Efficiency of Buildings (UCEEB) of the Czech Technical University designed a terrarium as an aesthetic experience for subway passengers.

The subway is a very unfavorable environment for plants, which causes numerous challenges for engineers. The terrarium is made of hardly flammable material and is operated by a smart system that takes care of the plants’ needs. Installed sensors monitor different values based on which they control irrigation, i.e. soil and air humidity. Special artificial lighting will replace the sunlight and will also regulate the temperature. The smart system simultaneously monitors the CO2 level inside and outside the installation.

 

 
 
 
 
 
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Bringing a piece of nature into your home is very simple and affordable today. There are ways you can make a closed terrarium yourself and create a small ecosystem in it. You don’t need smart systems to self-regulate the living conditions inside the terrarium. Special lamps for plants replace sunlight and provide the necessary heat simultaneously, which you can adjust yourself.

What is interesting about closed terrariums, and what additionally contributes to the feeling that you have a piece of nature in your home, is the natural water cycle. Regardless of the light in the terrarium (natural or artificial light created by plant lamps), you don’t have to water the plants. If everything is installed correctly, it is enough to sufficiently water the plants in the beginning. Then, this closed system and the heat from the sun or plant lamps will regulate water circulation through evaporation and rewetting of the soil.

Such possibilities should by no means trump the preservation of plants in their natural habitat, but they are wonderful ideas for how we can care for them in closed spaces while making our lives more fulfilling.

Katarina Vuinac

Slovenia passes a regulation to boost the use of wind energy in municipalities

Foto: pixabay
Photo-illustration: Pixabay (Pexels)

Slovenia has passed a regulation that stipulates the development of wind energy. The regulation aims to promote wind energy production facilities through a system of one-time financial compensations intended for municipalities, considering that such projects received less support among local communities. By offering municipalities a financial incentive, the government aims to support them in opening wind farms and implementing other energy projects, with the view of increasing the total number of wind farms in the country.

The incentive is awarded to municipalities after issuing a building permit for a wind farm or individual wind generator and is directly proportionate to the plant’s installed capacity. For plants with a 1-megawatt (MW) capacity or more, the incentive is 200,000 euros per MW. Plants with a capacity of less than 1MW are not eligible for this incentive. The amount that will be allocated is proportional to the installed power, which is determined in detail by the regulation, says the Slovenian government.

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Money for this initiative was provided by specialized funds intended to support renewable energy sources. This further encourages the transition to green energy, with wind being the energy of choice in this case.

In cases where wind farms or other installations spread across the territories of several municipalities, which is often the case with large wind farms, especially in countries divided into a large number of municipalities, each municipality has the right to a part of the incentive proportional to the capacity of installed generators within the borders of each municipality.

Current RES trends in Slovenia follow the country’s geography. Considering that Slovenia has a great hydro potential, the country primarily relies on water as a renewable resource. This is followed by solar energy, which is becoming increasingly popular, especially when rooftop panels are in question, something that appeals to individual users the most. At the same time, wind farms are poorly represented. They are a relatively recent phenomenon in the country’s energy mix for several reasons, including lack of space, planning and assessment impact, which all cumulatively hinder the progress in developing wind farms. Energy Portal

Energy portal

DESALINATION SOLVES THE PROBLEM OF WATER SHORTAGE BUT REQUIRES THE USE OF A LARGE QUANTITY OF ENERGY

Photo-illustration: Freepik (aleksandarlittlewolf)
Photo-illustration: Unsplash (Janosch Lino)

The UN Environmental Protection Program (UNEP) has noted that drought is becoming a worldwide problem, which is why a state of emergency has been declared in some countries. According to relevant reports, at least 50 per cent of the world’s population faces water shortages for at least one month of the year. Water shortages are predicted to increase in many regions due to climate change and increasing demand for water, fueled by population growth and economic development.

Water and energy are interdependent and both are critical resources. Namely, water is used in energy production, so the energy sector accounts for about 10 per cent of the total use of fresh water, according to the International Energy Agency (IEA).

In contrast, energy is also needed for water supply, which is mostly extracted from lakes, rivers and oceans, transported through pipes and canals, then filtered and finally delivered to the end user.

At a time when water scarcity is becoming a daily occurrence around the world, alternative ways to supply it are being investigated. One very common method is desalination, that is, the separation of salt from seawater to obtain drinking water. This process is energy intensive, often requiring using over 1kWh of power per cubic metre of filtered water. IEA data shows that global demand for energy used for desalination has almost doubled since 2010 and based on current trends, it can be expected to double again by 2030.

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According to reports, about 21,000 desalination plants are currently active in close to 150 countries, with half of them located in the Middle East and North Africa. More specifically, desalination covers most of the daily water needs in many countries such as Qatar, Kuwait and Saudi Arabia. It is interesting to note that Saudi Arabia plans to build a completely new city that will house nine million people by 2045 and that will depend on desalinated water from the Red Sea and the Gulf of Aqaba to supply the city’s population.

The problem is even greater because, for example, in the Middle East more than 90 per cent of the energy used for these purposes comes from fossil fuels. Precisely for this reason, as one of the solutions for the preservation of these two critical resources, the transition from fossil fuels to renewable energy sources that reduce energy needs related to water is frequently mentioned.

Energy portal

GREEN ENERGY AND THE PAST AND FUTURE OF EPS

Photo: EPS
Photo: EPS

Energy from renewable sources is founded in the history of the Electric Power Industry of Serbia (EPS). The Pod Gradom on Đetinja hydropower plant in Užice was commissioned in 1900 and was the first power plant in Serbia that operated in line with Tesla’s principles of polyphase currents. The first electricity transmission in Serbia was carried out from the small hydropower plant Vučje to Leskovac via a 17-kilometre-long transmission line. The power plant was commissioned in 1903 to supply electricity and lighting to the weaving mills of Serbian Manchester, as Leskovac was called. Both HPPs, more than a century old, still produce green energy today.

“EPS’ hydro-sector is the pride of the Serbian electric power industry, and it is committed to improving the operation of hydropower plants, extending their working life and increasing efficiency,” EPS says.

EPS strives and bases its plans on boosting capacities that use renewable sources. The priorities include projects related to constructing wind farms and solar power plants.

The Kostolac wind farm is a pilot project implemented by EPS, with a 66-megawatt capacity, and it will be implemented in locations of Drmno, Petka, Ćirikovac and Klenovnik, at the site of depleted surface mines and landfills of the thermal power plant and the Kostolac mines. Twenty wind turbines will be installed, each with a power of 3.3 megawatts. The planned annual electricity production in the Kostolac wind farm is about 184 million kilowatt-hours, and the wind farm is expected to be finished in late 2024. This project is financed by a loan from KfW Bank and is implemented by the strategic goals of the Republic of Serbia related to renewable energy sources. EPS was also granted additional funds for 30 million euros from WBIF.

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The Petka solar power plant is the first photovoltaic plant in the EPS division Thermal Power Plants and Kostolac Mines, which will be built on the external landfill of the Petka open-pit mine. It will have an installed capacity of 9.75 megawatts and a planned annual production of 15.6 gigawatt-hours of electricity. The solar panels will span 11.6 hectares. The scheduled value of the investment is 1.36 billion dinars and is financed by EPS. SE Petka is expected to be commissioned in late 2024.

Photo: EPS

The revitalization of Đerdap 1, our largest hydropower plant, which produces 5.5 billion kilowatt-hours of electricity annually, was recently completed. Now Đerdap 1 has greater power and reliability and a longer working life for the next 30 to 40 years. The nominal active power of the unit after the revitalization is 190MW, and before, it was 171MW, which means that, once the plant was revitalized, EPS virtually got a new 100MW power plant. Đerdap 1’s total power now stands at 1,140MW.

EPS plans to continue revitalizing and modernizing existing power facilities and boost aggregates’ power while constructing new hydropower plants. Several projects are underway as EPS focuses on renewable sources. The most significant projects are the modernization of the Bistrica, Potpeć, Đerdap 2 and Vlasin hydropower plants. The importance of the revitalization of EPS hydropower plants was also recognized by the European Union, which, via its Western Balkan Investments Framework (WBIF) programme, gave EPS a 49-million-euro grant to finance four renewable energy projects. 16.1 million euros are intended to revitalize the Vlasina hydropower plants. Also, the Bajina Bašta reversible hydropower plant, with a capacity of 614 megawatts, will have been restored by the end of 2024.

The plan also includes the construction of the Bistrica reversible hydropower plant, with a capacity of 656 megawatts. This is a key project that will enable the integration of planned variable renewable energy sources, as well as one of the strategic projects of both EPS and the Serbian government. The new capacities are definitely needed to balance out and stabilize the power system, not only in Serbia but also in the region. With the construction of RHPP Bistrica, Serbia would get flexible capacity in the heart of the electric power system for our country and the entire region.

EPS

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS

FRANCE REDEFINES GREEN INDUSTRY WITH LAW AND CREDITS

Photo-illustration: Unsplash (markus-winkler)
Photo-illustration: Unsplash (anne-nygard)

The Green Industry Law, adopted in France, is a crucial step in the development of the green industrial revolution in Europe, as it combines environmental sustainability and economy. Drafted following a long consultation with civil society and elected officials, the legislation was enacted as a response to climate challenges and as a competing response to the US Inflation Reduction Act of 2022.

Thanks to this law, reindustrialization will be expedited and a regulatory framework for the development of green technologies will be developed, in response to American incentives for the green economy. The Inflation Reduction Act did accelerate the passing of the French law, to ensure leadership in the green industry on the European continent.

The law would help France to position itself at the forefront of environmental transformation.

The law focuses on three main areas – financing green industry, facilitating industrial facilities and promoting environmentally responsible public procurement. Key initiatives include the drafting of a climate future savings plan for under-21s, designed to encourage investments in the environmental transition through tax breaks and exemptions from social contributions, according to the Ministry of Economy, Finance and Industrial Sovereignty.

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Furthermore, the law promotes the use of life insurance and retirement savings to finance the decarbonization of SMEs.

Special emphasis was placed on the adoption of environmental criteria in public procurement processes.

The new measure – the C3IV tax credit – is also one of the law’s novelties, which came into effect on March 14, 2024. C3IV is designed to encourage investments in vital sectors of the energy transition, such as battery technologies, wind power, solar panels and heat pumps. This should lead to the creation of 40,000 new jobs by 2030. C3IV is a key tool in achieving France’s ambitions to reduce CO2 emissions and promote sustainable industry, according to the French government’s press release.

Energy portal

SUPPORT FOR FARMERS: COUNCIL ENDORSES TARGETED REVIEW OF THE COMMON AGRICULTURAL POLICY

Photo-illustration: Unsplash (Dan Meyers)
Photo-illustration: Pixabay (hpgruesen)

Today member states’ representatives in the Special Committee on Agriculture endorsed a targeted review of certain basic acts of the common agricultural policy (CAP) proposed by the European Commission as a response to the concerns voiced by farmers.

This review addresses issues encountered, for instance, with the implementation of the CAP strategic plans and aims to deliver simplification, reduce the administrative burden, and provide greater flexibility for complying with certain environmental conditionalities.

Ensuring a targeted response

The review addresses certain elements of the CAP strategic plans regulation and the regulation on the financing, management and monitoring of the common agricultural policy (the so-called ‘horizontal regulation’).

The text strikes a careful balance between the need to maintain the high level of environment and climate ambition in the current CAP and ensuring that farmers’ concerns are addressed.

Adapting conditionalities

The Special Committee on Agriculture today endorsed the changes to the Good agricultural and environmental conditions (GAEC) standards proposed by the European Commission.

GAECs are a set of nine standards beneficial to the environment and the climate that apply to farmers who receive support under the CAP. These standards are also referred to as conditionalities, given the link between respecting these requirements and the support provided to farmers.

One of the main changes is that a general provision is introduced allowing member states to grant temporary and targeted derogations from certain conditionality requirements in the event of unforeseen climate conditions that prevent farmers from complying with them. Once per year, member states will have to inform the Commission about such derogations.

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On top of that, specific exemptions from certain GAEC standards are introduced, such as:

  • for GAEC 6 on soil cover during sensitive periods: member states will have more flexibility to decide which soils to protect and in which season, based on national and regional specificities
  • for GAEC 7 on crop rotation: crop rotation will remain the main practice, but member states will be able to use crop diversification as an alternative; this is less demanding for farmers, especially in areas subject to drought or high rainfall
  • for GAEC 8: farmers will only be obliged to maintain existing landscape features and will from now on be encouraged, on a voluntary basis, to keep land fallow or to create new landscape features through eco-schemes.

The endorsed revision also exempts small farms of under 10 hectares from controls and penalties related to compliance with conditionality requirements under the CAP.

Since this concerns 65 percent of CAP beneficiaries but only accounts for around 10 percent of agricultural land, it will significantly reduce the administrative burden related to controls for farmers and national administrations alike, while maintaining the environmental goals.

Photo-illustration: Unsplash (Jordan Opel)

More flexibility for member states and farmers

In line with member states’ previous demands, the review will ensure that EU countries can now amend their CAP strategic plans twice each year on a permanent basis, as opposed to once, as it currently stands.

This will provide member states with greater flexibility to address changing conditions. On top of this, it will still be possible to have three additional requests for changes over the whole programming period.

Next steps

The chair of the Special Committee on Agriculture will now send the offer letter to the European Parliament.

The European Parliament’s Committee for agriculture decided to use the urgent procedure for this proposal. The Parliament’s position at first reading is expected to be adopted at their plenary on 22-25 April 2024.

The regulation is then to be formally adopted by the Council, signed by the representatives of the Council and the European Parliament and published in the Official Journal. If all goes as planned, the regulation will enter into force by the end of this spring.

Given the extremely short time between the adoption of the proposal by the Commission (15 March 2024) and its envisaged entry into force, this shows the commitment of the three institutions to rapidly address the current situation of European farmers.

Source: European Council

DESALINATION AND SMALL NUCLEAR REACTORS – THE FUTURE OF IRAQ?

Photo-illustration Pixabay (distelAPPArath)
Photo-illustration: Pixabay

Together with the International Atomic Energy Agency, Iraq has been actively working on reforming its nuclear programme with the goal of achieving peaceful energy security for the country.

Iraq is exploring the use of nuclear technology not only to improve its energy security but also for water desalination projects, given its population of over 40 million and water shortages.

Desalination is the process of removing salt and other minerals from water to make it suitable for human consumption, irrigation or industrial use. Taking into account the sparse water resources and the size of its population, the country has already built desalination factories, but further development is planned.

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Iraq wants to pursue research of small modular reactors, which are advanced nuclear reactors with a power generation capacity of up to 300 megawatts, roughly a third of the capacity of traditional nuclear reactors.

They are significantly smaller which allows systems and components to be manufactured in a factory and transported to the installation site.

As for the other regional countries, Iran already has the Bushehr nuclear power plant, with the second block of this power plant under construction. The United Arab Emirates also commissioned the first nuclear power plant unit in 2020, becoming the second country in the region to use nuclear power for electricity generation. Jordan plans to install a two-block nuclear power plant. Turkey and Saudi Arabia are also developing their nuclear programmes too, with plans to build nuclear reactors in Turkey and the first Saudi nuclear power plant.

Energy portal

SolarEdge – Solution for the safety of PV systems at fuel deposit

Photo: SolarEdge
Photo-illustration: Unsplash (Asia Chang Yr)

Renewable energy sources are developing daily. With the increasing use of solar energy, the responsibility for securing these systems also increases, considering that most activities take place under high voltage, which is why you need to be especially alert when it comes to fires. Precisely because of this, locations such as industrial plants and warehouses of various materials, chemicals, fuel, and the like must make safety a priority.

Recently, the company All Energy & Architecture turned to SolarEdge for these very reasons to install a photovoltaic system with the best equipment at its fuel storage facility in Italy – the Alkion terminal. On that occasion, a 440 kW system with 16 SolarEdge (SE27.6K) three-phase inverters and 785 SolarEdge (P600) power optimizers was recommended.

This project requires the placement of high voltage in addition to a large amount of flammable fuel, so these photovoltaic systems must have the highest level of safety. Therefore, SolarEdge is the right choice for associates because its systems have two built-in features: SafeDC and arc fault detection.

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Two special features

SafeDC is designed to protect installers and maintenance personnel from electrocution by reducing DC voltage to a touch-safe 1V per module when AC power is off.

Arc fault detection concerns the interruption of the photovoltaic system’s operation if an electric arc occurs. Considering that electric arcs can easily lead to fires, this detection system is necessary for photovoltaic systems installed near flammable materials. The All Energy & Architecture company claims that this system enables their work to be carried out in complete peace.

As the PV industry expands, stricter safety standards and regulations are becoming more commonplace. That’s why, in addition to SafeDC and arc fault detection and interruption, SolarEdge has yet another product designed to protect firefighters. Called the SolarEdge Firefighter Gateway, this product provides automatic system shutdown and real-time voltage reading, which is useful in emergencies.

Differences between traditional and SolarEdge technology 

Photo-illustration: Pixabay

The SolarEdge system, as we have stated, has advanced safety features from the very beginning, while traditional systems, although efficient when it comes to energy conversion, still require additional improvement in safety standards.

The SolarEdge system takes care of the safety of employees, the environment and, finally, the equipment itself thanks to the aforementioned SafeDC function, which is active at all times. In particular, if there is a need to turn off the system manually or when it automatically turns off, the voltage drops very low – one volt per module. Low voltage is not dangerous to people if contact occurs, which means that electric shock will be avoided. In addition, SolarEdge inverters have the ability to detect problems such as arcing – a major cause of fires in electrical systems. When they detect such a fault, they shut down to prevent any damage, according to a specific safety standard known as UL1699B.

In traditional inverter systems, if a shutdown occurs, it does not mean that all parts are safe to touch because high voltage may still be present in the wires to which the panels are connected. Special equipment is often needed, which requires additional financial resources, for a traditional system to meet the standard provided by the SolarEdge system.

Although safety is number one, SolarEdge technology has another good side: the possibility of energy savings worth up to 79,500 euros per year and annual energy yields of up to 560,000 kWh, ensuring the offered performances precisely.

Milica Vučković

CONTINUED DROP IN EU IMPORTS OF ENERGY PRODUCTS

Foto-ilustracija: Pixabay
Foto-ilustracija: Pixabay (piviso)

In the fourth quarter of 2023, the EU imported 111.3 billion euros worth of energy products amounting to a total of 187.9 million tonnes. Compared with the same quarter of 2022, imports decreased both in value (-34.2 percent) and in net mass (-11.7 percent).

When comparing 2023 with 2022, the value of energy products dropped by 35.0 percent, while the volume dropped by 9.4 percent. The change in the value of imports was largely driven by declining prices.

In 2023, the value of imported natural gas decreased by 52.2 percent compared with 2022, while the volume decreased by 16.1 percent. This decline in natural gas prices followed a price surge in 2022 when a 200.4 percent increase in value was recorded alongside a 0.7 percent decrease in imported volume.

The volume decrease should be seen in the context of the EU reduction plan, where EU countries committed to reduce their gas consumption by at least 15 percent. This plan initially covered the period from 1 August 2022 to 31 March 2023 but was extended to 31 March 2024.

The decrease in petroleum oils prices led to a 17.2 percent decrease in value imported in 2023 alongside a 2.8 percent decrease in volume. Petroleum oils also experienced rising prices in 2022, with the EU importing 71.2 percent more in value for a 7.7 percent increase in volume compared to 2021.

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Norway and the United States – key energy suppliers

Most of the EU imports of petroleum oils in the fourth quarter of 2023 came from the United States (17.0 percent), followed by Norway (13.1 percent) and Kazakhstan (9.2 percent).

More than half of the natural gas in gaseous state came from Norway (53.4 percent). Algeria followed with 15.9 percent, ahead of Russia (12.7 percent).

The United States provided almost half of the imported liquified natural gas (49.4 percent), ahead of Russia (13.0 percent) and Algeria (11.1 percent).

Source: Eurostat

SLOVENIA – FORMATION OF CONSORTIUM FOR THE DEVELOPMENT OF HYDROGEN ECOSYSTEM FROM LOW-CARBON SOURCES

Photo-illustration: Freepik (freepik)
Photo-illustration: Freepik (freepik)

Eighteen Slovenian companies, organizations and municipalities have signed a consortium agreement stipulating the formation of a consortium that will deal with the development of a hydrogen ecosystem from low-carbon sources.

Various criteria show that this is the strongest consortium ever founded in this country in terms of competence.

The official website of the municipality of Ajdovščina, which is part of the consortium, states that the Slovenian-Japanese Business Council, the Engineering Academy of Slovenia and ELES are forming a consortium of stakeholders to expedite the wider use of hydrogen as a sustainable fuel of the future. The consortium gathers more than 6,500 experts from electrical engineering, transportation, environment, oil and gas industry, automotive industry, mechanical engineering and other branches.

Some of the consortium’s main goals are setting up the first hydrogen production facilities, testing technologies for the storage, transfer and distribution of hydrogen, using hydrogen in industrial processes, using hydrogen in the production of heat or electricity and logistics and public transport.

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The consortium will initially determine a set of potential projects that can be implemented in an appropriately coordinated manner in a technological partnership, which will lay the foundation of an integrated low-carbon hydrogen ecosystem in Slovenia.

This intersectoral integration is also supported by the government ministries in Slovenia, namely the Ministry of Foreign and European Affairs, the Ministry of Environment, Climate and Energy, the Ministry of Economy, Tourism and Sport and the Ministry of Higher Education, Science and Innovation.

Energy portal

FUNDAMENTAL BUSINESS STRATEGIES TO A FASTER SUSTAINABLE DEVELOPMENT

Photo-illustration: Unsplash (claudel-rheault)
Photo-illustration: Unsplash (arteum-ro)

Sustainable business is a relatively new, very sensitive and changing topic. Different companies throughout the supply chain and in different fields have different views of what is sustainable for them and what is not. In Serbia, sustainable business is sometimes accepted as a fad, while other companies sincerely believe in it. In general, sustainability is an integral part of the company’s culture, guiding it in decision-making and long-term investments to create lasting value.

Business strategies are based on the basic principles of creating and sharing value with various stakeholders – consumers, customers, communities, employees and shareholders- which determines how the company will be run. Their commitments regarding business sustainability arise from the connection with various issues that are important to them, as well as strategic priorities.

The strategic goals of sustainability include mitigating negative impacts on the environment, promoting health and contributing to the development of the local community. Sustainable development meets the needs of the current population and does not jeopardize meeting the needs of future generations. Sustainability implies that we consume only a few resources and save them for future generations; that is, we do not exploit the resources that are quite expendable to the maximum.

According to a recent study on ESG (Environmental/Social/Governance) principles, which includes various domestic, foreign, smaller and larger companies in Serbia and the region, the surveyed companies think differently about investments in sustainable development and implementing ESG principles. Some companies need to be more mature to understand how much these principles will be valued in the future. Large, developed companies take it seriously and write ESG annual reports. In contrast, smaller ones think that if they put more modern light bulbs on their business premises, they will save a significant amount of energy, and that’s all they invest in sustainability.

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A small share of RES in the total energy consumption

Photo-illustration: Pixabay (mrganso)

Changes are taking place worldwide, and different sustainable business concepts orient and focus on other sources. This is especially true for energy. We can either rely on what we thought was sustainable development before the coronavirus pandemic and the Russian-Ukrainian war, or we can redefine the goals of sustainable development and business because they will still be implemented more slowly due to the restructuring of the world.

The best examples of sustainable development are found in the energy sector. Still, unfortunately, the development of renewable energy sources (RES) and the share that RES have in total consumption in Serbia are inadequate and need to be improved. This is one of the development tasks in the coming period. There is still a dominant, traditional philosophy about coal-fired power plants, and we keep that resource at the planned rate.

The developed countries of the European Union have a more significant share of RES, but in general, I am not optimistic about the deadlines set even in those countries. Let’s take Germany, for example, where RES’s share in gross electricity consumption will reach 80 per cent by 2030. This requires changes in thinking and living, using energy and resources, and investing in sustainable development instead of boosting a consumer mentality.

Renewable energy sources have many advantages. However, we should remember that the global economy has achieved exceptional growth thanks to fossil fuels and that RES cannot replace them quickly. However, steady growth is only possible if the economy relies on limited resources.

Photo-illustration: Unsplash (roger-starnes)

The level of awareness among company owners, including those in real estate, in Serbia could be a lot higher. It all hinges on the company’s power. If the company’s financial strength is excellent, the investments in sustainable development are also more significant. Companies that understand that marketing is an investment, not an expense, look at sustainable business principles similarly and accordingly need an investment budget. On the other hand, smaller domestic companies do not invest enough in sustainable business. Some of them have launched engaging campaigns focusing on sustainable business. However, if comprehensive research was carried out, I am not sure what it would show; that is how much business owners understand and earnestly believe in sustainable development.

In the production segment, manufacturers will always try to create a production line that will save energy and thus cut production costs. From a long-term perspective, Serbia has a relatively low price of electricity, which is one of the reasons why we have attracted large-scale investments and appeal to investors in doing business with us. For large European manufacturers, the price of electricity, which in Serbia is the lowest in Europe, can bring significant savings. The low electricity price is a factor that investors definitely consider; on the other hand, it is a limiting factor for RES development. The energy sector requires long-term planning for making changes, and it takes a lot of time to accomplish results. Industry uses the energy that is most profitable for it. Suppose the electricity price is low in Serbia compared to the EU. In that case, it is unlikely that they will switch to using RES because industrialists are enormous consumers, and it is simply not worth it to them now. Sustainability in business depends on how much traditional business costs in total.

Dr Slobodan Aćimović

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS

Launching the Wind Energy Initiative

Photo-illustration: Freepik (freepik)
Photo-illustration: Unsplash (NIcholas Doherty)

The annual onshore and offshore wind event organized by WindEurope brought together over 10,000 participants and features dozens of conference sessions, hundreds of speakers and over 500 exhibitors from the field. Held in the Spanish city of Bilbao, the event saw the signing of the Spanish Wind Charter which aims to identify activities to expedite the expansion of wind energy in this country, as well as to maximize its social and economic benefits. It determined six directions of action for the development of the wind energy sector and specified the tools for implementing these directions, according to the WindEurope website.

Greater visibility and robustness in wind energy planning, as well as improved wind energy auction design, are the first two courses of action. The third is better coordination between wind energy companies, which entails better predictability and promotion of long-term agreements. The fourth direction includes monitoring international trade practices in order to eliminate unfair competition and finally, thus boosting the wind energy production capacity in Spain.

Global business sustainability assessment platform EcoVadis, WindEurope and five leading organizations in the wind energy industry have announced the launch of the Wind Energy Initiative, which goal is to accelerate the adoption of sustainable practices by fostering strong cooperation between trading partners, as well as facilitating a more positive influence in their value chains.

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The Initiative’s strategic goals include increasing the wind industry’s contribution to global efforts in the fight against climate change by prioritizing reduced carbon emissions. There is also the continued promotion of the welfare and fair treatment of all individuals involved in the wind energy supply chain. The third strategic goal implies promoting the preservation of biodiversity for the sake of ecosystem protection in terms of the negative impact of activities related to the wind energy sector. Finally, significant membership growth should be encouraged too.

Photo-illustration: Unsplash (Omkar Jadhav)

To achieve these goals, the Initiative will apply the EcoVadis sustainability assessment methodology, as a voluntary standard for evaluating its suppliers, and will also support suppliers on their path to sustainability by providing a clear strategy for improving performance regarding ESG criteria.

In terms of investments in wind energy in Europe, they doubled last year compared to 2022. In 2023, Europe approved significantly more permits for new onshore wind farms than in previous years, largely due to European Union rules on permits for renewable energy sources.

As stated on the WindEurope website, estimates show that the European Union will install an average of 29GW per year in the period from 2024 to 2030, which will bring the installed capacity in the European Union to 393GW by 2030.

The timely expansion of European onshore and offshore power grids remains the biggest challenge to the accelerated development of wind energy.  

Energy portal

WHAT IS THE FORMULA FOR FINANCIAL SUSTAINABILITY?

Photo-illustration: Pixabay
Photo: ProCredit Bank

At the end of what many called a “challenging” year, we spoke with Igor Anić, Chairman of the Executive Board of ProCredit Bank, about what can really ensure business sustainability in times of high inflation, rising interest rates and global political risks.

Q: At the end of the year 2023, in which the whole world was faced with existential threats, a growing gap between social classes and a general crisis of democracy, dealing with issues of sustainability, i.e. the “survival” of large and small businesses, is justified for many reasons. Do we even know what it means to remain sustainable? Does sustainability mean only short-term tactics to preserve the company’s liquidity, or does sustainability mean a more complex set of knowledge, projections and visions, which are, first and foremost, firmly based on business strategy?

A: At a time when, as many people think, the world is perhaps at the most dangerous point in human history, not giving up on business strategy is a formula for sustainability. Starting in 2009, and for the next ten years, we witnessed an era of low interest rates, which led to the “pumping” of money into the financial and real sectors. The cost of borrowed capital was really low. In such an atmosphere, companies easily managed working capital and investment optimism was high. However, that period was followed by growing inflation and, consequently, an increase in interest rates. With the growing macro and geopolitical risks, this climate has affected both banks and companies – working capital management became a priority. Nevertheless, what we saw was that short-term strategies or tactics aimed at now and immediately visible results were not a sustainable solution. This approach has led to the deviation from the primarily defined goals and has slowed down their accomplishment.

IN FOCUS:

Q: In practice, we saw many examples of ad-hoc projects that are not aligned with defined strategies. Sometimes it is completely justified to take advantage of good opportunities that appear “on the fly”. Should we be cautious so that acceptable business risks do not exceed the chances of business survival?

A: Companies should never ignore the basic financial rules for liquidity management in order to make quick profits. It happens often that payment terms that suppliers give to companies are not respected or working capital is reduced below the minimum, in order to finance projects that should bring quick profit. Just as a ship can never reach port without following the set course indicated by navigation, companies must also not stray too far from their defined strategy. Skillfully combining strategy and new business opportunities is a challenge imposed on us by the new era. It is time to demonstrate knowledge and business skills, but also have the courage to remain consistent with defined goals. In business, as in life, a rule of thumb is that the only sure thing is our ability to adapt to changes.

Q: What awaits us in the financial year 2024? Is next year going to be another one that we have to survive, or will there be opportunities for business growth?

A: The capital market in Serbia is still very shallow. I see an opportunity in the fact that there is still a lot of space both on the stock market side and on the side of debt securities that have not yet been properly utilized. The answer to this question also depends on the way the state will regulate the capital market. What I would advise companies is to invest wisely and to try to use the opportunities that every crisis year brings, but to always respect the basic rules of financing and maintain their “fitness” to fac new potential challenges. One thing is certain – it is not yet time to relax.

ProCredit Bank

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS

WORLD WATER DAY – WATER FOR PEACE

Photo-illustration: Unsplash (Jon Flobrant)
Photo-illustration: Unsplash (Ezra Jeffrey-Comeau)

World Water Day is marked every March 22 and this year’s theme is “Water for Peace”. More specifically, the theme aims to highlight the key role of transborder water cooperation in fostering peace and sustainable development.

Data show that transborder waters account for 60 percent of the world’s total freshwater. Fostering the development of such cooperation is important because of the 153 countries that share transborder waters, only 24 have cooperation agreements.

In celebration of World Water Day, events are taking place worldwide, with the central event to be held at the UNESCO headquarters in Paris, with live online transmission – available here. The UN Report on the development of water in 2024 titled “Water for Prosperity and Peace” will be presented at the event. The report provides a comprehensive assessment of the overall status, use and management of the world’s freshwater resources. It aims to provide tools for decision-makers so they can better formulate and implement sustainable policies.

More:

As with other basic natural resources that are essential to the living world, pollution, scarcity or poor access to water can cause unrest in the world. Various environmental problems, such as pollution, climate change and global warming, as well as the growth of the world’s population further exacerbate the aforementioned problems, which is why urgent joint action is needed.

According to relevant reports, over two billion people do not have access to safe water.

Next year, on World Water Day, the plan is to focus on glaciers. The 2023 theme of World Water Day was „Accelerating Change”, while the year before the focus was groundwater. The day dedicated to water has been officially celebrated since 1993 by the United Nations and the first theme, marked in 1994, was “Water Resources is Everybody’s Business”.

Energy portal

By Marking Trees, Montenegro Prevents the Illegal Cutting of Forests

Photo-illustration: Unsplash (Appolinary Kalashnikova)
Photo-illustration: Unsplash (Mika Korhonen)

With innovative equipment for digitizing the monitoring of forest areas, Montenegro will prevent illegal logging.

The Near Field Communication (NFC) is a technology that enables communication between devices located close to each other and has a wide application. In Montenegro, the NFC technology is used to mark and track trees, in order to improve the management of protected areas, according to the Government of Montenegro’s official website.

All trees will be marked with a tag and will be given a unique ID that will contain all the necessary information such as the type of tree, its age, girth, photos and more.

The Montenegrin Ministry of Tourism, Environment, Sustainable Development and Development of the North of Montenegro and the National Parks of Montenegro public company signed an agreement stipulating the purchase of this equipment, worth over 50,000 euros.

This decision is made under the auspices of the Integrating Biodiversity into Sectoral Policies and Practices and Improving the Protection of Key Areas of Biodiversity in Montenegro project.

More:

The project also stipulates the purchase of pheromone traps that ought to solve the problem of the overpopulation of bark beetles in the Prokletije National Park, which is a consequence of climate change. In 2023, the beetles caused the drying out of numerous trees, which is why the decision was made to catch these insects.

Pheromone traps are devices used to attract and trap harmful insects, thus preserving crops and other plants. They use artificially produced pheromones, i.e. chemical scents that insects use in nature to communicate with each other.

On March 22nd to 23rd, the Montenegrin National Parks Days event will take place in Montenegro, organized by the National Parks of Montenegro public company, to disseminate information about the natural attractions of the protected areas in this country, but also to educate the youngest population about the importance of such areas.

Energy portal

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