Mihajlovic with the EIB: Energy Transition and Various Gas Suppliers are Crucial for the Development and Security of Serbia and the Region

07.10.2022

excavators-iskopavanja-rudnik — Foto-ilustracija: Pixabay

Photo: The Government of the Republic of Serbia

Deputy Prime Minister and Minister of Mining and Energy, prof. Zorana Mihajlovic, Ph.D, met with Matteo Rivellini, Head of the Western Balkans Division at the European Investment Bank (EIB), and discussed with him the continuation of cooperation in the mining and energy sector, ongoing and potential new projects, the energy crisis in Europe and plans for improving energy security in Serbia and the region.

Mihajlovic pointed out that the EIB is a very important partner for Serbia, recalling that since 2001 this bank has provided funds in the amount of 4.9 billion euros for projects in Serbia.

“Your support and help are highly significant for us, we achieved a lot together in the previous ministry, in the field of transport infrastructure, and I believe that we can be even more successful in the energy and mining sector.”

“In addition to current projects, such as the construction of the Serbia-Bulgaria Gas Interconnector, connectivity in the gas sector is one of our priorities. Not only with Bulgaria, but also with other countries, North Macedonia, Albania, Croatia, Romania. We want to have various gas suppliers in the future, because that is the only way to be safe, stable and secure. We are doing everything in our power to ensure sufficient amounts of energy and energy sources for the upcoming winter season, and at the same time we are working to ensure long-term energy stability and security, not only for Serbia, but for the entire region. We created the foundation by changing the legislative framework, which represents the basis for investments, primarily in capacities for the generation of power from RES,” said the Deputy Prime Minister.

During the meeting, in which the representatives of “Elektroprivreda Srbije”, “Elektrodistribucija Srbije” and “Srbijagas” also took part, it was also talked about gas supply, storage capacities, recommendations of the Ministry for reducing consumption, projects implemented in the field of improving energy efficiency, as well as about the current energy crisis.

“It is always easy to discuss specific projects with you, as shown by the many projects we implemented together, despite all the obstacles we encountered. Owing to your responsibility and dedication we managed to be efficient.” I am sure that, besides the construction of the Serbia-Bulgaria Interconnector, we are otherwise proud to finance that project, which is especially important today, considering the situation in the whole of Europe, there are other projects and long-term plans we can work on, such as the modernization of the distribution and transmission networks, improving energy efficiency, the green agenda, but also to cooperate more closely and work together to overcome all the challenges imposed by the energy crisis,” said Matteo Rivellini, Head of the Division for the Western Balkans.

Source: Ministry of Mining and Energy

Germany and Spain Stick to Plan to Build New Gas Pipeline

06.10.2022

gasovod_Turski_tok — Foto-ilustracija: Pixabay

Germany and Spain are sticking to their plan to build a new gas pipeline across the Pyrenees in defiance of French opposition, a joint action plan showed.

The meeting between German Chancellor Olaf Scholz and Spanish Prime Minister Pedro Sanchez came as their governments disagreed on other possible measures to tackle Europe’s energy crisis.

This is relevant for both electricity and gas interconnections, the document adds, referring to the development of a “hydrogen corridor across the Pyrenees, identified by the RepowerEU Plan, to supply gas to Central Europe, and which in the future will have to carry renewable hydrogen”.

“The construction of a sufficiently big hydrogen-ready gas pipeline across the Pyrenees to be operative by 2025 is of paramount importance in order to achieve a truly robust internal energy market within the EU, accelerate the green transition and reinforce EU’s strategic autonomy.”

The World Must Halt Deforestation and Use Forests Sustainably, FAO Director-General says

06.10.2022

logs-gc9806d821_1920 — Foto-Ilustracija: Pixabay (marijana1)

The world must halt deforestation, plant trees to make the planet greener and restore productive capacities, and use forests and trees sustainably, QU Dongyu, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), today told the opening of the 26th Session of the Committee on Forestry (COFO).

COFO26 is being held in hybrid format from 3 to 7 October at FAO’s Rome headquarters and will provide a platform for exchange and dialogue among participants and provide suggestions for FAO’s work in forestry.

Princess Basma Bint Ali of Jordan, FAO’s Goodwill Ambassador for Near East and North Africa, Cécile Ndjebet, Founder of the African Women’s Network for Community Management of Forests and the winner of the Wangari Maathai Forest Champions Award 2022, and Analí Bustos, World Forestry Congress Youth Forest Change-makers winner also spoke at the opening.

Part of the solution

Forests cover 31 percent of the world’s land surface, store an estimated 296 gigatonnes of carbon and are home to the majority of the world’s terrestrial biodiversity. They are a source of fibre, fuel, food and fodder, and they provide livelihoods for millions of people, including many of the world’s poorest. Forests help mitigate and adapt to climate change and improve soil, air and water quality. If sustainably managed, forests are also a source of renewable raw materials.

In his opening remarks at COFO26, Qu said the impacts of the climate crisis and humanitarian emergencies are being felt more than ever around the world, hitting the most vulnerable the hardest. He pointed to droughts, floods, fires and storms of increasing frequency and intensity. At the same time, he said there are overlapping crises from the global pandemic, economic downturns, and price increases of food, feed, fuel and fertilizer. Hunger continues to rise, reflecting growing inequalities.

“Deforestation and land degradation, together with biodiversity loss, are devastating our ecosystems. This must change and stop,” Qu said. “As set out in the Seoul Declaration, forests and trees must be considered a key part of the solution.”

Qu pointed out that there are only seven more years to reach the 2030 Agenda and the Sustainable Development Goals.

The know-how and the tools are available, he said. “Now, we need to implement, scale-up and accelerate action – and, above all, we need political will and a package of solutions.”

He said FAO’s flagship publication, the State of the World’s Forests 2022, which will be discussed during the Session, offers three concrete, interconnected solutions.

Firstly, Qu said halting deforestation is “key to tackling the climate crisis by both cutting greenhouse gas emissions by 14 percent and safeguarding more than half the Earth’s terrestrial biodiversity.”

In addition, another solution is planting trees, restoring productive capacities, and improving ecosystem resilience. The Director-General pointed out that “1.5 billion hectares of degraded land can be restored. Increasing tree cover could raise economic sustainability, which is essential to boost productivity to meet growing demands.”

Thirdly, he stressed the importance of using forests and trees sustainably and building green value chains. “Wood and bushes are a very valuable renewable resource, and an important source of carbon-neutral and even carbon-positive materials. Wild-harvested forest foods improve food security and the nutrition of people living nearby and beyond,” Qu said.

Qu also stressed the importance of smallholders, local communities and Indigenous Peoples, who own or manage nearly 1 billion hectares of the world’s forest and farm land. He said they must be at the center of efforts towards sustainable agrifood systems, of which forests and trees are an integral part.

This COFO Session will advance the global forest agenda on climate change, sustainable production and consumption, restoration, biodiversity, and finance and provide technical recommendations on emerging forestry and policy issues, Qu added.

Taking into consideration both FAO’s flagship report, The State of the World’s Forests 2022: Forest pathways for green recovery and building inclusive resilient and sustainable economies, and the outcomes of the XV World Forestry Congress held in May 2022 in the Republic of Korea, the Committee will review FAO’s forestry work under FAO’s Strategic Framework 2022-2031. Ongoing work by FAO on resilient and sustainable economies, the linkages between agriculture and forestry, and forest solutions for combating climate change will also be on the agenda. In this regard, Qu highlighted that for the first time agriculture and forestry were being discussed as a joint agenda item, which is an important step to identify and scale-up win-win solutions for food security and nutrition that protect forests and trees.

Two key reports will be released during the session: the Global forest sector outlook 2050: Assessing future demand and sources of timber for a sustainable economy and Mainstreaming biodiversity in forestry.

FAO’s work on forestry

FAO carries out a broad range of activities concerning the forestry sector.

FAO, together with United Nations Development Programme (UNDP) and United Nations Environment Programme (UNEP), has been supporting over 60 countries in reducing deforestation and forest degradation, through the UN-REDD programme. The Organization’s work on forest law enforcement, governance and trade help countries combat illegal logging and promote trade in timber, which is sustainably produced by small-scale enterprises.

FAO’s Sustainable Wildlife Management Programme is spearheading efforts to ensure optimal health for people, animals and the environment as part of a One Health approach, while strengthening wildlife management and enhancing food security of local communities.

Improving forest-based livelihoods, prosperity and human well-being is the aim of the Forest and Farm Facility. More than 25 million people in 30 countries have directly or indirectly benefitted from this initiative, including during the current COVID-19 pandemic.

FAO’s Action Against Desertification in support of Africa’s Great Green Wall Initiative has helped to restore the productivity of degraded lands and the livelihoods of local communities in the Sahel. Its support in ten countries has resulted in over 56 000 hectares of land being restored.

FAO, together with UNEP and the Secretariat of the UN Convention to Combat Desertification, supports governments committed to restore 100 million hectares of degraded lands, sequester 250 million tons of CO2 and create 10 million green jobs under Africa’s Great Green Wall Initiative.

Held on the margins of the Committee on Forestry, the 8th World Forest Week, from 29 September to 7 October, is a series of special events that bring FAO Members, partner organizations, leaders, scientists, women and youth to discuss forestry’s most pressing issues. The theme of this year’s World Forest Week is Growing a better planet.

Source: FAO

Serbia on the Path of Green Transition

05.10.2022

srbija — Foto-ilustracija: Unsplash (Ivan Aleksić)

The most important step that lies ahead for Serbia in order to become a European Union member is the transfer of the regulations of this political and economic community to the national legal system, and their subsequent adequate application at all levels. On this path, the adoption of environmental policies contained in Chapter 27, whose goal is better health of the population, preservation of natural resources, competitive economy, a better quality of life, as well as the fight against climate change at the global level is one of the most demanding tasks.

In addition to harmonizing legislation and passing numerous laws, we need to reach all standards that ensure successful environmental protection, an adequate fight against climate change, as well as efficient waste management and control of greenhouse gas emissions.

Although we are no longer at the very beginning, we still have a long transition road ahead of us. The Green Agenda for the Western Balkans and the European Green Deal are of great importance both for Serbia and the countries that are currently in front of “the gates” of the European Union and are moving towards fulfilling the goal of making Europe climate neutral by 2050. We spoke with Sandra Dokić, Assistant Minister for Environmental Protection, about the changes that await us regarding environmental protection, waste management and conservation of natural resources.

In focus:

EP: The negotiating position for Chapter 27 was adopted in January 2020. How is the accomplishment of set goals going?

Sandra Dokić: Considering that more than one-third of the EU’s acquis communautaire relates to the environment, apart from the harmonization, fulfilling the set standards requires extremely large investments in the coming period which, according to estimates for some environmental sectors such as water, waste and air, amount to around 12 billion euros. Because of all this, we can say with certainty that this is one of the accession chapters for which we will need a lot of time, commitment, and the active participation of the public and private sectors, as well as the citizens themselves, in order to reach the set standards.

For the sake of complete transposition of EU directives into our legal system, we need to pass around 80 different regulations (laws and by-laws), but we must be aware that EU regulations are constantly changing too and that requirements and standards are being improved, so we are in a process of constant monitoring of changes and harmonization.

A very topical segment, such as climate change, is a great challenge for us and we have to fulfil a multitude of obligations that we are facing for the first time. In March of last year, the Republic of Serbia made a big step in this direction by adopting the Law on Climate Change, and we are currently working hard on preparing relevant by-laws.

The Law on Climate Change establishes certain obligations for the industry and energy sectors in the shape of a system for monitoring, reporting and verification (MRV) of greenhouse gas emissions (GHG) in industrial and energy facilities and the air transport sector. This specifically means that we will have information on national GHG emissions not only at the sectoral level but also in industrial and energy facilities, such as EPS, NIS, ironworks, cement plants, heating plants (above a certain capacity) and others. Plants above a certain capacity will have the obligation to submit an application for obtaining a greenhouse gas emissions permit and a monitoring plan, i.e. to calculate emissions (according to established methodologies), as well as to submit emission reports verified by an independent verification body recognized by the Accreditation Body of Serbia. Permits for GHG emissions, for all existing as well as new plants, will be issued by the Ministry. Establishing this system is a prerequisite for entering the EU Emissions Trading System.

We have demonstrated our commitment to this segment and our ambition to contribute to the reduction of global warming on a realistic basis by the fact that in August, the Government, following the Ministry’s proposal, adopted the National Determined Contribution (NDC), which stipulates the reduction of GHG emissions by 33.3 percent by 2030 in compared to 1990.

EP: With the help of UNDP, you also created a circular economy roadmap for Serbia. What does this document stipulate?

Sandra Dokić: The Ministry of Environmental Protection is the umbrella institution for defining the strategic circular economy framework, which is why in 2020, as part of the UNDP project “Circular Economy Platform for Sustainable Development in Serbia”, it created the Circular Economy Roadmap for the Republic of Serbia. This is the first document of its kind in the region and it was modelled after developed EU countries. The document provides guidelines for the development of a modern, resource- and energy-efficient circular economy in our country.

In 2020, an Ex-ante analysis of the effects of the circular economy was drafted. The analysis concluded that the circular economy, as a multi-sector topic, needs a separate public policy document to define the relevant strategic framework. Following this conclusion, a proposal for the Circular Economy Development Programme in the Republic of Serbia for the period from 2022 to 2024 with an Action Plan was prepared.

This public policy document has been submitted to public discussion and we expect its adoption after the formation of the new government. The programme’s overall goal is to create a stimulating environment for the development of the circular economy to support the green transition. The measures and activities that are defined through five special goals will secure support to the economic sector in the transformation to a circular business model and local governments in the creation of circular communities, while the waste management system and the use of green public procurements and voluntary instruments will be improved. There will also be special emphasis on raising the awareness of the interested public and educational institutions about the circular economy concept. All this will contribute to establishing the foundation for the transition to the circular economy.

EP: You actively participated in the implementation of the Circular Economy – Nordic Experiences project. How applicable are the experiences of developed countries in our circumstances?

Photo-illustration: Pexels (Nikola Igić)

Sandra Dokić: The goal of the Circular Economy – Nordic Experiences project, which was implemented by Finland, Sweden, Norway and Denmark, was to convey experiences and examples of good practice to the experts in Serbia by organizing a series of conferences in which experts from the Nordic countries. This was also an opportunity to highlight the benefits of the circular economy, as well as the challenges that these countries faced in the previous period. The circular economy is considered a great opportunity for a green transition, because the application of this concept saves resources, encourages innovation, reduces pollution, creates new jobs and increases competitiveness. Waste management was one of the areas that got the most attention at the mentioned conferences.

There is no universal way to transition to the circular economy, as each country has its own idiosyncrasies and needs to find its own model that will be efficient and sustainable. Nevertheless, it was good to hear from Scandinavian experts that achieving circularity at their level requires time, significant investments, great patience and commitment. The result is a healthier environment and that waste can be turned into both a resource and money.

Despite the long transition process, it is encouraging to know that there are good practice examples in our country too, both in the economic sector and local communities. These circular economy pioneers have recognized this concept as a way to save resources and energy, and at the same time, contribute to reducing their carbon footprint, which is a very positive effect from the perspective of climate change.

Interviewed by: Milica Radičević

Natural Gas Markets Expected to Remain Tight Into 2023 as Russia Further Reduces Supplies to Europe

05.10.2022

gas — Foto-ilustracija: Pixabay (piviso)

Photo-illustration: Unsplash (Quinten de Graaf)

Russia’s continued curtailment of natural gas flows to Europe has pushed international prices to painful new highs, disrupted trade flows and led to acute fuel shortages in some emerging and developing economies, with the market tightness expected to continue well into 2023, according to the IEA’s latest quarterly Gas Market Report.

Natural gas markets worldwide have been tightening since 2021, and global gas consumption is expected to decline by 0.8 percent in 2022 as result of a record 10 percent contraction in Europe and unchanged demand in the Asia Pacific region. Global gas consumption is forecast to grow by only 0.4 percent next year, but the outlook is subject to a high level of uncertainty, particularly in terms of Russia’s future actions and the economic impacts of sustained high energy prices.

Russia has largely cut off gas supplies to Europe in retaliation against sanctions imposed on it following its invasion of Ukraine. This has deepened market tensions and uncertainty ahead of the coming winter, not just for Europe but also for all markets that rely on the same supply pool of liquefied natural gas (LNG).

“Russia’s invasion of Ukraine and sharp reductions in natural gas supplies to Europe are causing significant harm to consumers, businesses and entire economies – not just in Europe but also in emerging and developing economies,” said Keisuke Sadamori, the IEA’s Director of Energy Markets and Security. “The outlook for gas markets remains clouded, not least because of Russia’s reckless and unpredictable conduct, which has shattered its reputation as a reliable supplier. But all the signs point to markets remaining very tight well into 2023.”

The current gas crisis also casts longer-term uncertainty on the prospects for natural gas, especially in developing markets where its use was expected to rise at least in the medium term as it replaced other higher-emission fossil fuels.

European natural gas prices and Asian spot LNG prices spiked to record highs in the third quarter of 2022. This reduced gas demand and incentivised switching to other fuels such as coal and oil for power generation. In some emerging and developing economies, the price spikes triggered shortages and power cuts. Europe’s gas consumption declined by more than 10 percent in the first eight months of this year compared with the same period in 2021, driven by a 15 percent drop in the industrial sector as factories curtailed production.

Natural gas demand in China and Japan was almost unchanged in that same period, while it contracted in India and Korea. Chinese gas demand is forecast to increase by less than 2 percent this year, its lowest annual growth rate since the early 1990s. Meanwhile, natural gas prices in the United States hit their highest summer levels since 2008, yet North America was one of the few regions of the world where demand increased, supported by demand from power generation.

Photo-illustration: Pixabay (PublicDomainPictures)

Europe has offset the sharp falls in Russian gas supplies through LNG imports, as well as alternative pipeline supplies from Norway and elsewhere. Europe’s surging demand for LNG – up 65 percent in the first eight months of 2022 from a year earlier – has drawn supply away from traditional buyers in the Asia-Pacific region, where demand dropped by 7 percent in the same period as a result of high prices, mild weather and continued Covid lockdowns in China.

The IEA forecasts that Europe’s LNG imports will increase by over 60 billion cubic metres (bcm) this year, or more than double the amount of global LNG export capacity additions, keeping international LNG trade under strong pressure for the short- to medium-term. This implies that Asia’s LNG imports will remain lower than last year for the rest of 2022. However, China’s LNG imports could rise next year under a series of new contracts concluded since the beginning of 2021, while a colder-than-average winter would also result in additional demand from northeast Asia, further adding to market tightness.

In addition to diversifying supply, the European Union and its member states have taken other steps to increase gas security, such as setting minimum storage obligations and implementing energy saving measures for the coming winter. EU storage facilities were close to 90 percent full as of the end of September, though the absence of Russian supply presents challenges for refilling them next year. Both Japan and Korea have instituted policies to reduce reliance on imported LNG for power generation and have developed contingency plans for possible LNG supply disruptions.

For the new report, the IEA conducted a resilience analysis of the EU’s gas market in the case of a complete Russian supply shutdown starting from 1 November 2022. The analysis shows that without demand reductions in place and if Russian pipeline supply is completely cut, EU gas storage would be less than 20 percent full in February, assuming a high level of LNG supply – and close to 5 percent full, assuming low LNG supply. Storage falling to these levels would increase the risk of supply disruptions in the event of a late cold spell. A reduction in EU gas demand through the winter period of 9 percent from the average level of the past five years would be necessary to maintain gas storage levels above 25 percent in the case of lower LNG inflows. And a reduction in demand of 13 percent from the 5-year average would be necessary through the winter period to sustain storage levels above 33 percent in the case of low LNG inflows. Therefore, gas saving measures will be crucial to minimise storage withdrawals and keep inventories at adequate levels until the end of the heating season.

Source: IEA

EBRD and Sparkasse Bank Makedonija Support Small Businesses in North Macedonia

04.10.2022

novac-banka-pare-zelena-ekonomija — Foto ilustracija: Unsplash (Micheile Henderson)

The European Bank for Reconstruction and Development (EBRD) is supporting the green economy in North Macedonia by providing a EUR 23 million loan to Sparkasse Bank Makedonija (SMB) for on-lending to local micro, small and medium-sized enterprises (MSMEs).

The loan will enable SMB to expand its MSME lending with a focus on regional and rural enterprises. 30 percent of the credit line will go to investments that can help small businesses improve their energy efficiency, or generate and shift to renewable energy.

MSMEs account for more than 90 percent of all enterprises in North Macedonia, and are key not only to the country’s economic growth, but to its transition to a green economy. Providing them with access to finance is thus key to unlock this transition and growth.

Andi Aranitasi, EBRD Head of North Macedonia, said: “We are very pleased that, together with our longstanding partner Sparkasse Bank Makedonija, we can provide additional support to SMEs to invest in the competitiveness of their businesses as well as measures that will improve their energy efficiency and lower their carbon footprint.

Strengthening the SME sector and investing in the green economy are some of our key priorities in North Macedonia and this new financing will help us in reaching both of these objectives.”

Sanel Kusturica, SBM’s Chief Executive Officer, said: “Today, SBM strengthened even further its long-standing partnership with EBRD, signing an agreement for long-term financing in the amount of EUR 23 million. With this credit line, SBM will enhance the support to micro and small and medium-sized enterprises in financing sustainable projects and investments related to renewable energy. We maintain strong support of the Macedonian economy, and together with our customers, we are dedicated to overcoming and minimizing the negative effects of the energy crisis.”

Sparkasse Bank Makedonija AD Skopje (“SBM”) is a universal commercial bank and the 4th largest bank in North Macedonia, with 11.4 percent market share by total assets. It is considered a systemically important bank domestically, as per the criteria of the National Bank of North Macedonia.

The EBRD is one of the leading institutional investors in North Macedonia. To date, it has invested nearly EUR 2.5 billion in 165 projects in various sectors of the economy.

Source: EBRD

Elnos Group: Future is now

03.10.2022

Intervju - Branko Torbica-en — Photo: OIE Srbija

Dreaming big in business and making those dreams come true requires a lot of courage and hard work in real, everyday life. Every success story has a unique formula. However, those coming from modern electrical engineering in recent years are, in their essence, always in connection with renewable energy sources and use of modern technologies.

We discussed development path of Elnos Group, a successful international electrical engineering company which made significant results in the area of sustainable energy sources, with its Vice President, Branko Torbica.

Elnos Group has positioned itself as a regional leader in electrical engineering while, at the same time, the company participates in very interesting and challenging projects in European markets. Where does Elnos Group work today, in which countries and projects?

Branko Torbica: Today, we are a company that operates on 16 different markets and employs approximately 630 people. Apart from countries of former Yugoslavia, the Group actively works in: Sweden, Iceland, Germany, Norway, Spain, Portugal and the Netherlands. During the last two years, we have made large steps into the markets of Great Britain and Denmark. This year, we also established a new member of our Group – Elnos Poland.

It would be tedious for the readers to talk about all projects we are actively working on. However, I would like to point out that, considering number of ongoing projects, this year is going to be a record year for our Group, since we will be active on more than 130 projects on 11 different markets.

Is it difficult for a local company to be a successful bidder and work on strict and demanding projects in EU countries?

Branko Torbica: An attitude has long been formed in the public that stepping into foreign markets is a highly complex and risky business move for a local company. Elnos Group as a company continuously proves this attitude wrong. We have opened doors to many markets because we employed highly professional staff and were strict in keeping up with trends in technological development.

We, at Elnos Group, realized that future is what is happening to us at this moment and that we can become an important part of modern trends in electrical engineering. Taking this road requires proactive behaviour, patience, knowledge and a lot of energy. Nevertheless, the results are more than rewarding.

Which RES projects are you most proud of?

Branko Torbica: A RES project one can never forget is most certainly participation in construction of NordLink- a HDVC European interconnection that enables share and trade of electrical power, obtained exclusively from renewable sources, between power transmission systems of Germany and Norway.

Also, there is the large project of construction of power plant Burfell 2 (100 MW) on Iceland which we constructed one hundred meters below volcanic soil, or design of solar power plant Morgavel (48.96/44 MW AC) in Portugal, construction of wind park Čibuk 1 (158 MW) in Serbia, revitalization of hydro power plant Zvornik (124 MW) and reconstruction and construction of many small and mini hydro power plants and many other projects.

Which RES projects are you currently actively working on?

Branko Torbica: Our Group is in the process of achieving one of its most important results of the year precisely in within the scope of renewable energy sources where we are performing projects in areas of wind, hydro and solar power.

Regarding wind power, this year, our teams have been engaged on construction of two wind parks in the region. The first one is wind park Bogoslovec (36 MW) in N. Macedonia, which has recently been completed, and the second one is construction of wind park Krivača (103 MW) in Serbia, where works are currently being executed in full swing.

This year, we will add a third green energy HDVC project to our reference list. We will participate in construction of new HDVC interconnection DolWin 5 in Germany, for an offshore wind park that is also a part of the same project.

Concerning hydro power, we are in the phase of intensive preparations for participation in project HPP Dabar and, in relation to solar power, we also made a new step forward through commencement of works on construction of solar power plant Bukovica in Croatia.

It has recently been announced that you are a contractor on wind park Krivača. When can completion of this project be expected?

Branko Torbica: Works on construction of wind park Krivača (103 MW) are being executed in accordance with time schedule. This is a very dynamic project and requires a high engagement of our company’s resources.

Within this project, our task is to execute works on construction of electrical power facilities by which wind park Krivača will be connected to 110 kV electrical power network. This implies construction of two 110 kV transmission lines, 33/110 kV transformation facility WPP Krivača, and expansion of two existing 110/35 kV substations Veliko Gradište i Neresnica.

After Čibuk 1 (158 MW), this is the second wind park we are building in Serbia. Our engagement in construction of wind park Krivača is another great opportunity for us to confirm our competence to work in accordance with the highest engineering standards applicable to renewable energy resources.

Does current energy and security crisis has an impact on business operations of your company and, if yes, in which way?

Branko Torbica: It was not easy for any company to accept the fact that not long “after“ Covid-19 pandemic, it has to adapt its business activities to conditions of a new crisis on a global level. Under current circumstances, it is important to quickly bring adequate decisions and work in a way which will make your company resilient to new and ever changing conditions. Elnos Group is engaging large efforts in implementation of a wide range of activities and processes aimed to establish a unique balance on the Group level. It is thanks to this specific balance that we have managed to stay immune to the crisis so far.

In which way does Elnos Group contribute to implementation of sustainable development principles?

Branko Torbica: In Elnos Group, sustainable development has always been a goal with no alternative. As a company, we are an active participant in projects that have been changing green map of the region and Europe. We perform projects that imply taking proper care of the resources. Our activities are directed towards providing cutting-edge technologies and equipment to reduce emissions of harmful substances. We use water and energy sources carefully and invest in education and training of our employees to raise awareness on importance of environmental protection.

We are very pleased that this year our efforts in the area were recognized by UNDP which classified us as one of companies with the highest degree of engagement to achieve sustainable development.

RES are our distinguishing characteristic

Transition in production of electrical power towards renewable energy sources is one of the greatest challenges of today’s world. Mr. Milan Kukobat, Director of Elnos Serbia said that this company recignized the trend and had been making bold steps precisely in area of renewable energy sources during last two years.

“Through realizaiton of projects belonging to different scopes of RES, we managed to position ourselves, in a relatively short period of time, as a most competent company in this area. Our teams cooperated with leading world companies and played an important role in green projects. Thus, we significantly contributed to introduction of state-of-the-art technical solutions and innovation in Serbia“, Kukobat pointed out.

Some of the RES projects hold a special place on Elnos Serbia reference list, says Kukobat.

“In domain of hydro power, Elnos Serbia performed a capital project which implied modernization of HPP Zvornik. Thanks to sucessful completion of this project, more than six decades old hydro power plant begun scoring new recods in production. We are also proud of revitalization of seven small hydro power plants in West Serbia. Production plants in these facilities are true perls of electrification in Serbia and we managed to upgrade them entirely by installing new modern equipment“, said Mr. Kukobat.

“However, a crown of our work in RES area is participation in construction of the largest wind park in Balkans, Čibuk 1, with installed power of 158 MW”, he emphasized.

“Through construction of electrical engineering facilities within this plant, we significantly expanded boundaries of our project management capacities at the time, in quantitative terms. As a partner of USA Company General Electric on this project, Elnos Serbia was entrusted with construction of 35/400 kV substation and 400kV double-circuit transmission line”, Mr. Kukobat concluded.

We are currently participating in realization of several RES projects. The most important is construction of WPP Krivača, connection of which to the electrical power network is expected by the end of following year.

Source: OIE Srbija

Energy Crisis Forces More Ambition in EU Green Buildings Law

03.10.2022

architect-arhitekta-house-izgradnja-gradnja — Foto-ilustracija: Pixabay

Soaring energy prices are mounting pressure on Europe to renovate its ageing, inefficient buildings as governments scramble to protect citizens from rising utility bills.

Europe’s buildings are responsible for 40 per cent of its energy consumption and many are in desperate need of better insulation in order to decrease the EU’s reliance on imported fossil fuels.

Buildings are a key sector when it comes to addressing high energy prices and security of supply concerns, said Paula Rey Garcia from the European Commission’s energy department, who spoke at a Brussels event in September.

In light of the energy crisis and the war in Ukraine, there needs to be an “ambitious” revision of the EU’s energy performance of buildings directive (EPBD), added Martin Pejřimovský, energy attaché at the EU representation of the Czech Republic, which currently holds the bloc’s six-month rotating presidency.

As the EU presidency holder, Czechia aims to find a common position among the EU’s 27 member states before handing over the reins to Sweden on 1 January to finalise negotiations on the bill with the European Parliament.

While not a short-term solution to the energy crisis, updating the buildings law must be part of the EU’s answer, said Pejřimovský, who believes the current version is no longer fit for purpose.

“It’s not enough for the challenges that we will be facing tomorrow and in the decades after, especially considering everything that’s going on with the war in Ukraine and the complete revision of a lot of truths and beliefs that were connected to the way we are running our economy,” the Czech attaché told attendees at the event.

Source: EURACTIV.com

What You Need to Know About Combatting Food Loss and Waste

03.10.2022

soup_hrana_kuhinja_supa — Foto-ilustracija: Pixabay

As the world searches for ways to counter the climate crisis, experts are turning to food systems for solutions. Research from the IPCC shows that food loss and waste is responsible for a staggering eight-10 per cent of global greenhouse emissions.

So, where does this food loss come from?

“Food loss and waste occurs at every stage of the supply chain but is concentrated on the farm and in the home,” says Clementine O’Connor, a food systems expert with the United Nations Environment Programme (UNEP). “The middle of the supply chain generates comparatively small volumes of food waste but has resounding influence over how food is grown, purchased and eaten.”

O’Connor’s comments came just ahead of the International Day of Awareness of Food Loss and Waste, which falls on 29 September. The day is designed to push governments, businesses and consumers to address a prime shortcoming of the world’s food systems, which UN Secretary-General António Guterres said are “putting historic pressure on our natural resources, climate and natural environment.”

Reforming food systems

The UNEP Food Waste Index Report 2021 revealed that around 931 million tonnes of food waste was generated in 2019, 61 per cent of which came from households, 26 per cent from food service and 13 per cent from retail.

Experts say there are some simple ways to stem those losses.

Consumers can help reduce the amount of food lost in transport by buying locally grown produce, including at places like farmers’ markets. Supporting local farms also fosters food security and can help domestic agriculturalists adapt to climate change,O’Connor says.

Growing your own food can help you enjoy produce at peak ripeness, but systemic changes, at country and city-level, are needed to dramatically reduce food waste, O’Connor added.

Urban solutions

About 70 per cent of food consumption occurs at the urban level. Experts say city governments can help create circular food systems by raising awareness about food loss, promoting urban agriculture, providing free food waste recycling services, and banning organic waste from landfills.

With food prices 34 per cent higher than this time last year, consumers also have a powerful incentive to reduce food waste. Yet new research from Unilever and the non-governmental organization Wrap shows that food waste costs families with children 780 pounds sterling per year in the United Kingdom and 1,900 US dollars per year in the United States. “Alongside reducing energy and water usage and rethinking transportation, cutting food waste is an important way we can all cut our costs,” O’Connor says.

An estimated 3.1 billion people worldwide do not have a healthy diet, and some 828 million people go hungry. Since 2019, the number of people experiencing hunger as a result of the pandemic has increased by more than 100 million. All of this means there is an urgent need to accelerate action to reduce food loss and waste.

Source: UNEP

Biogas – Reliable Energy for a Stable Future

01.10.2022

Considering the available energy sources and agricultural potential in Serbia, a total of 500 MW obtained from biogas can be achieved without any problems. Biogas power plants operate 24 hours a day, 7 days a week, providing energy stability and balance to the entire system. We talked with Lidija Carević from the Serbian Biogas Association about the current situation in our country regarding biogas, development potential, new technologies, and future plans.

EP: When was the Serbian Biogas Association founded?

Lidija Carević: The Serbian Biogas Association is a non-governmental and non-profit association founded in March 2012, when the three owners of the first biogas plants got together in an attempt to achieve the best possible business conditions in this sector. Today, the Association is a representative association that gathers about 50 members, biogas plants, and other institutions: equipment producers, a new line of investors in the biogas industry, universities, insurance companies, and consulting companies. In cooperation with domestic and international institutions, the Association is working intensively on the professional development of its members regarding using renewable energy sources and managing biogas plants. A special honor, but also an additional responsibility, was shown to us in 2020 when the Association got the approval from the Government to add the name of the Republic of Serbia to its name. Since August 2020, the Biogas Association has been called the Serbian Biogas Association.

In focus:

EP: What is biogas, and what is its potential in Serbia? Is biogas exploited enough?

Lidija Carević: Biogas represents a mixture of gases formed by the decomposition of organic matter in conditions without the presence of oxygen (anaerobic conditions). The formed mixture of gases mainly consists of methane (50-75 vol%) and carbon dioxide (25-50 vol%). In addition, biogas contains small amounts of hydrogen, hydrogen sulfide, ammonia, and other gases in traces. The process of biogas formation is similar to the process of digestion in the stomach of ruminants, and this process is called anaerobic digestion. Biogas is generated from liquid and solid animal manure, organic waste and/or energy crops in a technological process in a hermetically sealed tank. Biogas is produced efficiently under controlled conditions in plants called biogas power plants. Biogas can be used to produce electricity and heat (cooling) energy within the cogeneration plant (CHP), for combustion, i.e., heat production, as well as for the production of pure methane (enriched biogas).

As a notable fact, it is good to know that in the Republic of Serbia there is still no legislation for the production of pure methane from biogas. As part of the fermentation end process, a high-quality fertilizer was obtained, which is allowed in organic agriculture, so we can say this is a complete process. Serbia’s potential in biogas production is huge. Considering that Serbia is an agricultural country and as much as 65 per cent of the Serbian surface is arable land, we are talking about a large amount of waste from farms, i.e., raw materials used to obtain biogas. Annual biogas production in Serbia is about 256 GWh/g. Currently, as many as 34 biogas power plants are fully operational in Serbia. Given that we are a young market, this is an impressive figure. An indicator that the market is developing in the right direction is that we currently have as many as 81 plants in temporary status, which means that the sector will grow significantly in the next two to three years.

EP: How much are the citizens in Serbia aware of the biogas potential? What is the situation in terms of education?

Lidija Carević: We work on educating the decision-makers, farmers, future investors, and the general public. Our primary goal is to promote biogas and create an image of biogas as a form of green energy that is most benevolent to the environment and attract new investments in this sector. We in the Association have provided a whole set of educational materials, such as professional brochures, a film about biogas, education materials, and a guide for investors. All materials are published on our website, and we are happy to share all the necessary information with those interested. We are also actively promoting the construction of small biogas plants. Our message is that every village should have its biogas plant, primarily for environmental reasons. Our emphasis is on the fact that of all renewable energy sources, biogas has the most positive impact on the environment.

Interview by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES.

The Importance of Battery Energy Storage Systems in the Energy Transition

30.09.2022

Battery storage (1) — Foto: Shutterstock

The increasing demand of consumers to be supplied at all times with electrical energy to satisfy all their needs is one the basic causes for the complexity of an energy system. The growing consumption of electricity, as compared to the generation thereof, threatens the stability and operation of the overall system, resulting in voltage and frequency deviating from their nominal values.

The issue is additionally complicated by implementation of renewable energy sources and their growing share in the distribution grid. Taking into account their variable nature, specifically, the fluctuation in the electrical energy generation from these sources, the issue of voltage and frequency in the distribution grid is further complicated. Namely, the initiated energy transition and putting an end to thermal power plants, that is, giving up combustion of fossil fuels for generation of electricity, is aimed to reduce greenhouse gas emissions, first of all, of CO2.

At the same time, the entire energy system is encountering a big challenge of stability and continuity of electrical energy supply. It is generally known that thermal power plants are the pillars of stability of any energy system, whereas renewable sources are unstable factors of the same. In order to ensure a stable and sustainable transition of the electrical energy generation system from thermal power plants to renewable energy sources, the expert community agrees that the construction of optimal systems for energy storage needs to be included, along with the continued increase in the installed power of wind turbines and solar panels. Several technological solutions for electrical energy storage are nowadays used, such as: battery energy storage systems, compressed air, flywheel-operated hydro pumps (reversible hydro power plants).

In focus:

Taking into account the advantages resulting from the use of a specific technology, the battery energy storage systems are distinguished as front-runners, compared to other technological solutions. What makes the battery systems specific is their flexibility in operation, efficient construction (implementation), efficient cost-effective solution and, as the most important of all, quick responsiveness measured in milliseconds. The battery energy storage systems are globally already present, with the installed power of more than 20 GW, while last month in our region a battery energy storage system of the installed power of 10 MW has been put into operation. The reason for connection of a growing number of such types of battery energy storage solutions include economic, environmental and technical benefits they provide.

These benefits directly include the improvement of the quality of electricity, mitigation of voltage deviations, frequency regulation, load transfers, load levelling and peak decrease. They facilitate the integration of renewable energy sources, grid expansion and overall cutting down of costs of operational reserves and reduction of greenhouse gas emissions. One of the positive examples in the region is the interest of the thermal power plant “Gacko” in the installation of the battery energy storage system. The thermal power plant “Gacko”, in cooperation with the company Lidac, a domestic leader in the field of battery management, design and maintenance of battery systems, has developed a preliminary design for the battery energy storage system of the designed installed power of 30MW. Thus, the thermal power plant would reduce the amount of coal combusted for generating electricity during on-peak hours. The battery energy storage system, positioned with conventional producers of electrical energy, would support the transition toward complete abandoning of fossil fuels for electrical energy generation. It is necessary to bear in mind that any erroneous assessment and designing could result in errors of misuse or incorrect position of a battery energy storage system, that could result in worsening the quality of electrical power in distribution grids, decrease in reliability and load control, and could also adversely affect the voltage and frequency regulation. The need for energy storage systems, in particular battery energy storage systems, does exist. However, we should be maximally cautious when developing their designs and positioning so as to avoid worsening of the existing situation of the energy system and gain maximum positive features and opportunities provided by such battery energy storage systems.

Prepared by: Nevena Đukić

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES.

Five Cross-cutting Barriers to Bioenergy Deployment and How to Address Them

29.09.2022

Bioenergy – solid biofuels, biogas, biomethane and liquid biofuels – already makes a significant contribution to the world’s energy supply, but half of the deployment currently takes the form of traditional uses of bioenergy for cooking and heating, mainly in developing countries. The situation needs to change. Inefficient applications of biomass must be replaced by modern and clean energy solutions, since they harm people’s health, damage the environment and reduce social well-being.

Modern forms of bioenergy are increasingly being used to generate electricity, for heat in buildings and industry, for transport fuels and as an industrial feedstock. For example, biomass-based aviation fuel is the most promising renewable option in the near and medium term.

However, increasing bioenergy deployment and realising its wider socio-economic benefits presents its own difficulties. Five major challenges across all end-uses that urgently need to be addressed:

Policy uncertainty and complex institutional structures are major barriers to most renewables, including bioenergy. Currently, bioenergy development is not receiving enough policy attention. Bioenergy policy making usually involves various government departments and cross-sectoral actors. Governments should set a long-term bioenergy strategy, with clearly defined targets and cross-sectoral co-ordination, to build confidence for investors and project developers. Mandates for bioenergy consumption and a ban on fossil fuel use can also be used to increase market demand.

Financial and economic barriers include fossil fuel subsidies, high costs and lack of access to affordable finance. Without measures accounting for the negative impacts of fossil fuel burning, most bioenergy options have a higher cost than fossil fuels. Financial and fiscal support measures can ensure that the production and use of bioenergy are profitable for enterprises and affordable for final consumers. Measures include the phase-out of fossil fuel subsidies and the introduction of carbon pricing policies to fix energy market distortion, a lower tax burden or grants and subsidies to raise its competitiveness, and measures to facilitate affordable financing.

A low level of technology readiness remains another major barrier to novel bioenergy technologies, such as biomass-based aviation fuels and biomass for high-temperature industrial processes. A lack of infrastructure adds to the challenge, such as the need for onsite biomass storage and the ability of natural gas grids to accommodate biomethane. Policy support for innovation through research, development and demonstration can raise technology readiness and accelerate commercialisation.

Weak supply chains are one of the most dominant barriers. These include unstable feedstock supply, lack of qualified workers and sustainability risks. Regulations on quality control and standardisation can improve product quality and operational efficiency. Training, education and capacity building can improve workers’ skills in the design, installation, operation and maintenance of bioenergy systems. Most importantly, a context-based sustainability policy framework, containing appropriate measures, is urgently needed to ensure sustainable good practices.

A lack of awareness of bioenergy products and their benefits can also affect the engagement of stakeholders. Public campaigns and information-sharing activities raise public and business awareness. Accessible information on the availability and location of bioenergy resources (e.g. agricultural and forestry residues, organic waste) and infrastructure can also help project developers identify bioenergy feedstocks and the best project locations.

Increasing the deployment of bioenergy is an essential component of an energy transition that aligns with the 1.5°C Scenario. Bioenergy needs to make a greater contribution towards meeting the demand for energy in all end uses in the coming decades. While all stakeholders have a role to play here, policy makers have a particular opportunity to effect this change: the right mix of policies can increase the supply and use of bioenergy, improve its sustainability and minimise any negative impacts.

Source: IRENA

Electric BMW iX1 – Orders Available from November

28.09.2022

Fabian Kirchbauer Photography — Foto: BMW Group

The entry model into the world of BMW X is now more appealing than ever. In its third model generation, the new BMW X1 boasts a more prominent design, superior spaciousness, advanced digitalization – and, for the first time, an all-electric drive system. In the new BMW iX1, meanwhile, instantly accessible driving pleasure and modern versatility are brought together with locally emission-free mobility. A new control/operation system with BMW Operating System 8 and BMW Curved Display plus a far wider selection of automated driving and parking systems also help to define the forward-looking character of this Sports Activity Vehicle (SAV) for the premium compact segment.

With its robust appearance and functional versatility, the new BMW X1 embodies an authentic experience of freedom and independence in day-to-day driving and on longer journeys. The interior’s progressive design and sophisticated ambience, and the much broader selection of standard equipment compared to the outgoing model, serve to underline its deeply embedded premium character.

There will initially be a choice of two petrol and two diesel engines. These will link up with a seven-speed Steptronic transmission with double clutch as standard, and their drive power will be channeled to the road via either the front wheels or the BMW xDrive intelligent all-wheel-drive system, depending on the model. This starting quartet will immediately be followed by the all-electric BMW iX1 xDrive30 (electric power consumption, combined in the WLTP cycle: 18.4 – 17.3 kWh/100 km; CO2 emissions: 0 g/km; figures in NEDC cycle: –; estimates based on the car’s current development stage) as well as by a pair of plug-in hybrid models and another two conventionally powered variants with 48V mild hybrid technology. The new BMW X1 will be built at BMW Group Plant Regensburg, where models with combustion engines, plug-in hybrid systems and all-electric drive will all roll off a single assembly line for the first time.

The upright front end of the new BMW X1 gives it a much greater sense of presence, with slim LED headlights, a large, almost square BMW kidney grille, X-shaped lines radiating out to the sides and eye-catching chrome strips in the lower air intake serving as its defining elements. Adaptive LED headlights with matrix high beam, pulsating turn indicators and variable light distribution are available as an option.

Expressively sculpted surfaces and a long roofline are the distinguishing features of the new model’s dynamically stretched silhouette. When viewed from the rear, the slim tailgate window, horizontal lines, striking LED lights and flared wheel arches produce the typical SAV look.

The robust aura of the new BMW X1 can be intensified to great effect with the specific design elements of the xLine model, which include stylistic underride protection. The M Sport model also offered as an alternative to base specification places the focus firmly on dynamic driving pleasure with features such as its large cooling air inlets.

All model variants come as standard with 17-inch light-alloy wheels. 18-inch light-alloy wheels are fitted on xLine and M Sport cars, although these models are also available with 19-inch and – in a first for the BMW X1 – 20‑inch wheels. Customers can choose from two solid and ten metallic shades for the exterior paint finish – including a Frozen paint option from BMW Individual for the first time.

However, the most interesting information to our editorial board, is that the fully electric version of this model, the BMW iX1, will be available for configuration in November, and the price for our market will then officially be formed. The first deliveries on our market are expected at the beginning of next year. The BMW iX1 will bring the experience of locally emission-free driving pleasure to a vehicle segment enjoying worldwide growth, making it accessible to a very wide target audience. The compact SAV powered by the latest BMW eDrive technology will therefore give a major boost to the accelerated ramp-up of electric mobility. The improvements in sustainability compared to the predecessor model can be partly attributed not just to the wide-ranging electrification measures, but also the increased use of green energy, both for production and in the supply chain, and the greater quantities of secondary raw materials and natural materials used.

The BMW iX1 xDrive30 is the first all-wheel-drive electric car introduced by the brand in the premium compact segment. Two highly integrated drive units at the front and rear axles deliver a combined output of 230 kW/313 hp (taking the temporary boost effect into account), and post overall torque of 494 Nm (364 lb-ft). The electric all-wheel-drive system ensures supreme traction and directional stability in all situations. The BMW iX1 xDrive30 completes the 0 to 100 km/h (62 mph) sprint in 5.7 seconds. The fully electric model will be available for configuration in November, and the first lug-in hybrid models with increased electric range, petrol and diesel engines with 48V mild hybrid technology.

Source: BMW Group Press

Heat Pumps – A Safe Solution for Savings

28.09.2022

living-room-modern-tv-g886da51d4_1920 — Foto-ilustracija: Pixabay

Whether you heat your home with electricity, wood, or gas, or you have central heating, the market situation is so uncertain that you can’t even assume how much heating will cost you next winter. That is why many have already started preparing for cold days now when the tropical heat begins. Many are looking for a long-term solution so that they can calmly welcome the winter without fear of imminent price increases.

Heat pumps are a great option for users who want to save money and the environment from negative impact. For starters, don’t let the name “heat” fool you. It is used for heating but also for cooling. It works on the principle of transferring thermal energy from one space to another. This means it cools the rooms of your home in the summer and heats them in the winter. In addition, it can be used throughout the year to heat domestic hot water, which further increases savings.

Heat pumps use energy from air, groundwater, or earth. Therefore, they have a minimal impact on environmental pollution. They only need a minimum amount of electricity when they need to start the pump compressor. For 1 kWh consumed, the heat pump produces 2-6 kWh of energy for heating or cooling.

For example, for a 40-square-meter apartment heated by a heat pump with a geothermal water supply, the monthly electricity bill would be 1,000 dinars. The bill for central heating of the same apartment would amount to around 5,000 to 6,000 dinars per month and is paid throughout the year. Electric and gas heating is even more expensive, and it is especially worrying that it is not known how much these energy sources will cost.

In focus:

Tests of the land on which the construction of the building is planned are being done more often, showing the potential of heat pumps. First, it is checked whether there are geothermal waters and possibilities for installing heat pumps. Also, heat pumps are very suitable for houses with a well. The test determines whether there is groundwater and if it turns out there is, then it makes perfect sense to install this system because despite the initial high costs, the return on investment will be realized in two to three years.

ProCredit Bank pays special attention to renewable energy sources and energy efficiency investments. Environmental protection is one of the main priorities both for the bank and its clients. ProCredit Bank’s energy efficiency loan is designed so that citizens can get a return on investment of up to 20 percent.

Funds in the amount of up to 600,000 dinars can be used for the installation of heat pumps. You can apply for energy efficiency loans online; ProCredit Bank experts are there for all questions, while additional information can be found on the bank’s website.

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES.

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