Mihajlovic: With Discounts, we Want to Encourage People to Save, we are Struggling to Have Enough Electricity

13.09.2022

electricity-struja — Foto-ilustracija: Pixabay

Deputy Prime Minister and Minister of Mining and Energy, prof. Zorana Mihajlovic, Ph.D., said that the recommendations for reducing consumption proposed by the Ministry can bring savings of 15 percent and at the same time that the state financially stimulates with additional discounts all those who reduce consumption.

“The recommendations we proposed apply to both households and the state administration, local self-governments, and public companies. Additional discounts are for households, because they make up 42 percent of the total structure of daily consumption, and this is where the most savings can be made, if only a little care is taken in how we use electrical devices. These are normal things that will not make our functioning difficult, will not endanger anyone, and will lead us to reduce consumption. Pessimistic EPS estimates are that the reduction will be eight percent, our estimates are that it is possible to reduce it by 15 percent,” she said.

Mihajlovic stated that Serbia has decided to provide additional financial stimulation to citizens who save, and that in other countries in Europe, high penalties are prescribed for non-compliance with savings measures.

“We want to encourage people to save and earn, and this will be measured according to the energy consumed in the same month of the previous year.” EPS proposal is that households that reduce consumption by more than 10 to 20 percent will receive a 10 percent discount. Households that reduce consumption by more than 20 percent, even up to 30 percent, will receive a 20 percent discount, and everyone who spends 30 percent or more less will receive a 30 percent discount. For EPS, this means that it will have costs of around four billion dinars until the end of March, but if we look at the electricity prices on the market, we will save at least half a billion euros. That’s when we’re only talking about households. Public companies, state administration, cities and municipalities should submit their energy saving plans by the 15th. They know best how to reduce, and they will have groups of people who control it. State administration and local governments as well. There are owners of buildings in all facilities and we are waiting for proposals,” said Mihajlovic.

She reiterated that the state does not make any plans for electricity restrictions, but that it strives every day to provide sufficient amounts of electricity, gas and energy for the economy and households.

“We are not planning any restrictions.” There are a million things we do to avoid them, but we pay a huge amount of money to import electricity, so it would be good if we all realized together how important it is to start saving. Today, a megawatt-hour is 450 euros, in August it was 750, and last year between 50 and 70 euros. During August, we gave more than 100 million euros for the import of electricity, and it is impossible to predict what the prices will be on the market in the coming period, and the recommendations are an attempt to reduce the money we give,” said Mihajlovic.

Source: Ministry of Mining and Energy

Global Energy Employment Rises Above Pre-Covid Levels, Driven by Clean Energy and Efforts to Strengthen Supply Chains

11.09.2022

wind_park_vetropark_wind_mills_vetrenjače_clean_energy_čista_energija_obnovljivi_izvori_renewables — Photo-illustration: Pixabay

Global employment in the energy sector has risen above its pre-pandemic levels, led by increased hiring in clean energy, according to a new IEA report that offers the first worldwide benchmark for employment across energy industries.

The inaugural edition of the World Energy Employment Report, which will be published annually, maps energy sector employment by technology and value chain segment. The report provides a data-rich foundation for policy makers and industry decision makers to understand the labour-related impacts of clean energy transitions and shifts in energy supply chains following Russia’s invasion of Ukraine.

The amount of energy jobs worldwide has recovered from disruptions due to Covid-19, increasing above its pre-pandemic level of over 65 million people, or around 2 percent of the total labour force. The growth has been driven by hiring in clean energy sectors. The oil and gas sector, meanwhile, saw some of the largest declines in employment at the start of the pandemic and has yet to fully recover.

With the recent rebound, clean energy surpassed the 50 percent mark for its share of total energy employment, with nearly two-thirds of workers involved in building new projects and manufacturing clean energy technologies. At the same time, the oil and gas sector is also experiencing an upswing in employment, with new projects under development, notably new liquefied natural gas (LNG) infrastructure.

The energy sector is set to see its fastest employment growth in recent years in 2022, however high input costs and inflationary pressures are adding to hiring and supply chain challenges already present in some regions and subsectors, such as solar, wind, oil, and gas. Policy responses to the pandemic and Russia’s invasion of Ukraine, including the US Inflation Reduction Act, will continue to add to new hiring demand and to shifting the status-quo of global energy supply chains.

Energy jobs counted in this report span the value chain, with around a third of workers in energy fuel supply (coal, oil, gas and bioenergy), a third in the power sector (generation, transmission, distribution and storage), and a third in key energy end uses (vehicle manufacturing and energy efficiency). More than half of energy employment is in the Asia-Pacific region. This reflects rapidly expanding energy infrastructure in the region and access to lower-cost labour that has enabled the emergence of manufacturing hubs that serve both local and export markets, notably for solar, electric vehicles and batteries. China alone accounts for 30 percent of the global energy workforce.

In all IEA scenarios, clean energy employment is set to grow, outweighing declines in fossil fuels jobs. In the Net Zero Emissions by 2050 Scenario, 14 million new clean energy jobs are created by 2030, while another 16 million workers switch to new roles related to clean energy. New energy jobs may not always be in the same location nor require the same skills as the jobs they replace, requiring policy makers to focus on job training and capacity building to ensure that energy transitions benefit as many people as possible.

“Countries around the world are responding to the current crisis by seeking to accelerate the growth of homegrown clean energy industries. The regions that make this move will see huge growth in jobs,” said IEA Executive Director Fatih Birol. “Seizing this opportunity requires skilled workers. Governments, companies, labour representatives and educators must come together to develop the programmes and accreditations needed to cultivate this workforce and ensure the jobs created are quality jobs that can attract a diverse workforce.”

Around 45 percent of the world’s energy workers are in high-skilled occupations, compared with about 25 percent for the wider economy. Some fossil fuel companies are retraining workers internally for positions in low-carbon areas to retain talent or to maintain flexibility as needs arise. However, this is not an option everywhere, and ensuring a people-centred and just transition for affected workers must remain a focus for policy makers, especially in the coal sector where employment has been declining consistently for several years.

Source: IEA

Five Cities Tackling Air Pollution

10.09.2022

peking zagađenje — Foto: Tviter skrinšot

Photo-illustration: Pixabay (Maruf_Rahman)

Air pollution has been called the most-pressing environmental health crisis of our time, responsible for an estimated 7 million premature deaths every year. Approximately nine in 10 people around the world breathe unclean air, which increases the risk of asthma, heart disease and lung cancer.

City dwellers, especially the poor, often suffer the most from air pollution, which along with imperilling lives, feeds climate change. Realizing those dangers, several municipalities are taking action to combat airborne contaminants.

Ahead of the International Day of Clean Air for blue skies on 7 September, an annual event that stresses the urgent need to improve air quality, we look at five of those cities.

Bogota, Colombia

Bogota is one of Latin America’s leaders in reducing air pollution. The city is electrifying its public bus network and aims to completely electrify the metro system, part of an ambitious plan to reduce its air pollution by 10 per cent by 2024. Bogota’s mayor, Claudia López Hernández, has also highlighted the importance of bikes.

“We now have more than 1 million trips on a daily basis by bike,” she said in 2020. While much of Bogotá’s pollution comes from transport, forest fires in neighbouring regions and countries have also added to the toll.

Warsaw, Poland

Poland is home to 36 of the European Union’s 50 most-polluted cities, with air pollution responsible for 47,500 premature deaths every year. It is now fighting back, having signed the C40 Clean Air Cities Declaration in 2019. Earlier this year, it launched Breathe Warsaw, a partnership with Clean Air Fund and Bloomberg Philanthropies to improve air quality. Warsaw now has 165 air sensors across the city, the largest network in Europe, and Breathe Warsaw will use them to develop an air quality database, allowing officials to better understand pollution sources. The initiative will also provide technical assistance to support the phase-out of coal heating, set up a low-emission zone by 2024 and connect local leaders to share best practices.

Seoul, South Korea

With 26 million people living in Greater Seoul, it is no surprise the city is facing an air quality crisis. Indeed, the mean exposure of Koreans to a toxic particle known as PM2.5 is the highest of any state in the Organization of Economic Cooperation and Development. PM2.5 levels in Seoul are about twice those of other major cities in developed countries. In 2020, the city announced it would ban diesel cars from all public sector and mass transit fleets by 2025. Meanwhile, a partnership with the United Nations Environment Programme (UNEP) will explore the lessons learned over the past 15 years on improving air quality and help share these experiences with other cities in the region.

Accra, Ghana

Accra was the first African city to join the BreatheLife campaign and is considered a leader among cities on the continent aiming to tackle air pollution. According to the World Health Organization (WHO), more than 28,000 people die prematurely every year as a result of air pollution, while the Ghanaian capital’s average air pollution levels are five times WHO guidelines. The city has started a campaign to educate people about the health dangers of indoor cookstoves and to discourage locals from burning their waste. A joint effort between the WHO and the Climate and Clean Air Coalition is supporting a city-wide assessment of the health benefits of switching to more sustainable transport, waste and household energy systems.

Bangkok, Thailand

Given Bangkok’s traffic is some of the worst in the world, it is no surprise the city often labours under a layer of pollution. In 2020, hundreds of schools were forced to close as the levels of fine particulate matter – or PM2.5 – in the air reached unsafe levels. The city has launched a number of initiatives to tackle both air pollution and carbon emissions. The Green Bangkok 2030 project, launched in 2019, aims to increase the ratio of green space in the city to 10sqm per person, have trees covering 30 per cent of the city’s total area, and ensure footpaths meet international standards. Eleven parks are set to open during the project’s first phase, as well as a 15km greenway, all with the aim of encouraging less reliance on private transportation, thereby reducing pollution.

Source: UNEP

BMW Group to Use Innovative Round BMW Battery Cells in NEUE KLASSE from 2025

09.09.2022

P90477502_highRes_innovative-round-bmw — Photo: BMW Group

The BMW Group is convinced that powerful, innovative, sustainably-produced battery cells will be key to the success of individual electromobility in the future. The company is set to launch a new era of e-mobility from 2025 with the models of its NEUE KLASSE – using newly-developed round battery cells optimised for the new architecture for the first time.

“The newly-developed sixth generation of our lithium-ion cells will bring a huge leap in technology that will increase energy density by more than 20 percent, improve charging speed by up to 30 percent and enhance range by up to 30 percent,” according to Frank Weber, member of the Board of Management of BMW AG responsible for Development. “We are also reducing CO2 emissions from cell production by up to 60 percent. These are big steps for sustainability and customer benefits.”

“To meet our long-term needs, we will be building battery cell factories with our partners, each with an annual capacity of up to 20 GWh, at six locations in key markets for us: two in China, two in Europe and two in USMCA,” added Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “We have also reached agreement with our partners that they will use a percentage of secondary material for the raw materials lithium, cobalt and nickel, as well as utilising green power for production, to ensure CO2-reduced manufacturing.”

The BMW Group has already awarded contracts in the two-digit billion-euro range for production of the new BMW battery cells. By leveraging the comprehensive in-house expertise of the company’s own Battery Cell Competence Centre, the team from development, production and purchasing has been able to significantly reduce costs for the high-voltage battery, thanks to the new battery cell and new integration concept for battery technology developed by BMW. Based on current market assumptions, costs can be reduced by up to 50 percent, compared to the current fifth generation. The BMW Group has set itself the goal of bringing manufacturing costs for fully-electric models down to the same level as vehicles with state-of-the-art combustion-engine technology.

Technological advances: new cell format and enhanced cell chemistry

The battery cell is responsible for electric vehicles’ core properties of range, driving performance and charging time. For the sixth generation of BMW eDrive technology used in the NEUE KLASSE, the company has fundamentally refined the cell format and cell chemistry. With the new BMW round cell specially designed for the electric architecture of the NEUE KLASSE models, it will be possible to significantly increase the range of the highest-range model by up to 30 percent (according to WLTP).

The new BMW round cells come with a standard diameter of 46 millimetres and two different heights. Compared to the prismatic cells of the fifth BMW battery cell generation, the nickel content in the sixth-generation BMW round cells is higher on the cathode side, while the cobalt content is reduced. On the anode side, the silicon content will be increased. As a result, the cell’s volumetric energy density will improve by more than 20 percent.

The battery system plays a key role in the body structure of the NEUE KLASSE. Depending on the model, it can be flexibly integrated into the installation space to save space (“pack to open body”). The cell module level is thus eliminated.

The battery, drive train and charging technology in the NEUE KLASSE will also have a higher voltage of 800 volts. Among other things, this will optimise how energy is supplied to direct current high-power charging stations, which can achieve a much higher charging capacity with a current of up to 500 amperes – thus reducing the time it takes to charge the vehicle from 10 to 80 percent by up to 30 percent.

Battery cell factories in China, Europe and USMCA – each with total capacity of up to 20 GWh per year

To supply the battery cells needed for the NEUE KLASSE, the BMW Group has already awarded contracts in the two-digit billion-euro range for construction of battery cell factories to CATL and EVE Energy. Both partners will build two gigafactories in China and Europe. Each of the battery cell factories will have a total annual capacity of up to 20 GWh. Plans call for two more battery cell factories to be built in the North American free trade zone,

USMCA, for which the partners have not yet been nominated.

The three regions where the battery cell factories will be built will also benefit economically from the creation of new supply chains, new networks for subcontractors and new jobs.

CO2-reduced production using green power and secondary material

The BMW Group is particularly focused on keeping the carbon footprint and consumption of resources for production as low as possible, starting in the supply chain. Cell manufacturers will use cobalt, lithium and nickel that include a percentage of secondary material, i.e. raw materials that are not newly mined, but already in the loop, in production of battery cells. Combined with the commitment to use only green power from renewable energies for production of battery cells, the BMW Group will reduce the carbon footprint of battery cell production by up to 60 percent, compared to the current generation of battery cells.

Reuse of raw materials will be one of the success factors for e-mobility in the future. Circular loops reduce the need for new raw materials, lower the risk of infringing environmental and social standards in the supply chain and generally result in significantly lower CO2 emissions. That is why the long-term goal of the BMW Group is to use fully recyclable battery cells. In China, the company is currently creating a closed loop for reuse of the raw materials nickel, lithium and cobalt from high-voltage batteries, thus laying the cornerstone of a ground-breaking material cycle.

The cobalt and lithium used as raw materials for the new generation of BMW battery cells will be sourced from certified mines. This means the company retains full transparency over extraction methods and, in this way, can ensure responsible mining. The sourcing of both raw materials from certified mines takes place either directly through the BMW Group or via the battery cell manufacturer.

The BMW Group has been actively involved for many years in initiatives to develop standards for responsible raw material extraction and promote compliance with environmental and social standards for raw material extraction through certification of mines. In this way, the company is also making itself less technologically, geographically and geopolitically dependent on individual resources and suppliers.

Development of future BMW battery cells at in-house competence centres

The BMW Group is constantly working to further develop energy storage systems. For instance, its sixth-generation battery technology also offers the option of using cathodes made of lithium iron phosphate (LFP) for the first time. This means the critical raw materials cobalt and nickel can then be avoided entirely in the cathode material. In parallel, the BMW Group is also pushing forward with development of all-solid-state batteries (ASSBs). The company aims to have high-voltage batteries of this type ready for series introduction by the end of the decade. The BMW Group will present a demonstrator vehicle with this technology on board well before 2025.

The BMW Group has been systematically building expertise in the field of battery cell technology since 2008. Since 2019, this know-how has been concentrated at the BMW Group’s Battery Cell Competence Centre (BCCC) in Munich. The BCCC spans the entire value chain – from research and development to battery cell design to manufacturability.

To ensure innovations in battery cell technology are put into practice quickly and efficiently, the BMW Group relies on a network of around 300 partners, with cooperation between established companies, startups and colleges, among others.

The knowledge gained in this way will be validated at the new Cell Manufacturing Competence Centre (CMCC) in Parsdorf, near Munich, which will begin commissioning near-standard production of samples in late 2022 for the future BMW battery cell generation to be used in the NEUE KLASSE from 2025 onwards.

The pilot line at the competence centre will make it possible to analyse and fully understand the cell production process under near-standard conditions. This will help enable future suppliers produce cells to specifications and according to their own expertise – thus further optimising battery cell production with regard to quality, output and costs.

NEUE KLASSE will make major contribution to sales volumes

With a fast-growing product lineup and high demand, the BMW Group aims to have more than two million fully-electric vehicles on the roads by the end of 2025.

The all-electric NEUE KLASSE will make a significant contribution to BMW Group sales volumes from mid-decade. The NEUE KLASSE has the potential to further accelerate the market penetration of e-mobility: This means 50 percent of the BMW Group’s global sales could already come from fully-electric vehicles before 2030.

The MINI brand will have an exclusively all-electric product range by the early 2030s, while Rolls-Royce will also be an all-electric brand from 2030. All future new models from BMW Motorrad in the field of urban mobility will likewise be fully electric.

Source: BMW Group

We are Looking Forward to New RES Projects

08.09.2022

Reducing support for the fossil fuel industry and, on the other hand, understanding and supporting those sectors of the economy that have a significant impact on reducing pollution and climate change enable the financial sector to make a decisive impact in the energy transition. Erste Bank Serbia has so far financed more than 60 projects in the renewable energy industry (RES). Thanks to their credit support, 400 megawatts of capacity have been built that produce clean green energy from wind, water, solar, biomass and biogas. We talked about the market situation, projects and plans with Aleksandar Savić, Head of public sector and specialized lending department of ERSTE Bank.

EP: Tell us more about RES financing projects in Serbia. What did the new law bring? How do you approach the selection of projects, and which projects do you finance?

Aleksandar Savic: When the first regulation on incentives for RES projects was adopted in December 2009, Erste Bank was practically a pioneer in their financing. The first project was financed in April 2010, and in accordance with its name (Erste, German, first – editor’s note), we financed the first biogas plant and the first wind farm in Serbia.

All these projects are financed on the basis of feed-in tariffs adopted by regulations, and the legislative framework is defined within the Law on Energy. In April 2021, the first law dealing exclusively with the use of RES was passed (the Law on Rational Use of Energy and the Law on Energy Efficiency were passed in parallel), and solutions were implemented in most Western European countries. The most significant change is certainly the transition from feed-in tariffs to the auction mechanism. For banks, the auction mechanism with a bilateral premium represents a similar level of price risk mitigation. Still, the achieved price at the auction is crucial for the successful implementation of projects.

So far, no auction has been held, but the first auction for wind farms was announced in November last year. The proposed starting price was 55.7 euros per MWh, and having in mind not only the current circumstances on the electricity market but also the expected trends, as well as the situation on the equipment market and the current level of investment, the offered maximum price was not adequate.

Another big novelty is the introduction of the producer-consumer institution, the so-called prosumer, into the legal framework. This has greatly opened up the tremendous potential for building new solar photovoltaic capacities. When it comes to project selection, the process is quite complex. So far, we have financed over 60 projects of all types of RES available in Serbia, except geothermal ones.

In focus:

EP: How important is the support of KFW, the World Bank or the EBRD through funds, and how important is the support of our country?

Aleksandar Savić: The support of international financial institutions is of great importance. Most of these projects were implemented using the credit lines of these institutions, and in a large number of cases, these lines also carried a significant part of the grant component (grants). As for the support of our state, it is the most important in the legal security of investment and simplified and expeditious administration.

When it comes to subsidies, it is necessary to take a more serious approach and look in the right way at what constitutes their most rational use. Otherwise, we may find ourselves in absurd situations such as the fact that as a state, we subsidize the purchase of electric vehicles in the amount of 5,000 euros in a situation where they pollute significantly more than EURO 6 petrol and diesel vehicles due to the current energy mix.

EP: What is the significance of the green energy sector and other forms of sustainable development for the banking se- ctor in Serbia? What is new in this field in the bank’s business policy? Does Erste Bank plan to provide additional capital to finance sustainable development in Serbia?

Aleksandar Savić: For most of the leading banks in Serbia, this sector is already very important and given the current circumstances and future expectations, I am sure that it will (if not already) become the most important because the issue of energy transition and sustainable development becomes the most important social issue. This trend must also be reflected in the way banks view the environment in which they operate, which inevitably results in changes or the introduction of new business practices and policies.

Clients will increasingly receive questions from banks that were not there before and may seem “non-banking” at first glance. For example, a natural person seeking a housing loan may be asked which energy class the property he is buying belongs to. The legal entity may receive questions regarding the amount of waste produced annually, fuel consumption, water and the like. I am sure that such issues in the future will determine not only the price of borrowing, but in certain cases, the possibility of the same. That speaks a lot about the significance.

EP: What are the world trends regarding RES financing, and is Serbia on the right track? Can you single out some examples of good practice from Europe that we could copy in our country as well?

Aleksandar Savić: It may be hard to believe, but Serbia used to be a leading country in using RES. The first hydropower plant in Europe was built in Serbia (only 19 years after the first hydroelectric power plant in the world, near Niagara). It is the SHPP “Pod Gradom” near Užice, which was put into operation in 1900, and is still in operation. We should not forget the hydro-capacities that were built during the last century. Unfortunately, due to various circumstances and factors, we are currently one of the least developed countries in terms of using RES in Europe. We still mostly (70 percent) produce electricity by burning low-calorie lignite. We do not use the potentials we have in the field of RES. For example, in the Czech Republic, which according to almost all data, is comparable to Serbia (agricultural production, arable land, generated organic waste), over 330 MW of biogas plants are currently installed (by 2030, the plan is to reach 485 MW). In Serbia, it is about 30 MW – 11 times less.

I believe the market has already resolved the issue of return on investment. In this area, state support is not crucial (although the actual production price of electricity produced from coal and the price at which scarce electricity is procured are far higher than those at which adequate capacity from RES can be obtained). Still, efficient, cheap, and fast administration is certainly the part where the biggest progress can be made.

Interviewed by: Milica Marković

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

Solar Energy for Secure Supply

08.09.2022

solar-panel-solarni-paneli — Photo-illustration: Pixabay (Zsuzska321)

Solar energy, green hydrogen, the hydropower sector and decarbonization are the topics of discussion on the second day of the Conference Energy Week Western Balkans organized by the British company Invest In Network, with the support of the Montenegrin Investment Agency and the Department for International Trade of the United Kingdom.

The participants of yesterday’s panels are eminent regional names in the energy field and representatives of large European investment funds.

At a time when of a major energy crisis and a severe electricity shortage, the panel on “Solar energy and batteries for energy storage” attracted a lot of attention from the participants.

Evan Rice, UGT Renewables, is an expert in energy storage systems. In his presentation, he paid special attention to energy storage systems, their potential and how much they will be used in the future.

Dimitris Galanos, Sungrow, spoke about solving the challenges investors face when building solar power plants in the Balkans.

Nemanja Mikać, ElevenES, spoke about LFP batteries, which will be produced in the factory in Subotica, the first large factory of its kind in Europe. He spoke about the advantages of using these batteries and how far the process of making them is progressing, and that it is necessary for everyone to cooperate when it comes to progress in this field.

Fabian Kuhn, Fichtner, talked about solar projects and energy storage batteries. As he pointed out, more and more energy will require more and more storage space.

Till Barmeier, GIZ, spoke about the concept of the prosumer in Serbia. He also mentioned the Law on the Use of Renewable Energy Sources, which was adopted last year. Thanks to the new legislative framework, households and industries can now produce electricity for their own needs and deliver the surplus to the grid.

The Potential of the Region is Substantial, We Must Act Swiftly Right Now

Miloš Kostić, MT-KOMEX, spoke about the future of photovoltaic systems in Serbia. As he pointed out, he realized a long time ago that the price of electricity will increase year after year and that we should become energy independent as soon as possible. In addition to gaining independence from electricity suppliers, using solar energy reduces carbon dioxide emissions and contributes to raising environmental protection awareness.

“Green energy must be the future,” Kostić noted.

He added that the European Union aims to reach 400 GW of solar energy by 2025 and almost 740 GW by 2030. The plan is for the EU to obtain at least 45 percent of its energy from renewable sources by 2030.

Kostić pointed out that the company MT-KOMEX is the leader when it comes to the construction of solar power plants in Serbia. They built the first privately owned ground-mounted solar power plant and started constructing the largest privately owned ground-mounted bifacial solar power plant in Serbia.

The conference Energy Week Western Balkans is held on the Montenegrin coast and lasts from September 6 to 8, 2022.

Energy Portal

The Potential of the Region is Substantial, We Must Act Swiftly Right Now

07.09.2022

vetrogenerator_vetar_vetroelektrana — Foto-ilustracija: Unsplash (Andrew Schultz)

The Energy Week Western Balkans conference organized by the British company Invest In Network is underway in Montenegro.

The first panel discussed the potential of clean energy sources in the Western Balkans. The participants were Rigela Gegprifti, from the company Statkraft from Albania, Mladen Grgić, Director of the Montenegrin Investment Agency, then Francesco Corbo, representing the European Bank for Reconstruction and Development (EBRD) and Eric Scotto, President, and co-founder of Akuo Energy. The panel moderator was Artur Lorkowski, director of the Energy Community Secretariat.

The participants discussed the potential of the Western Balkans in terms of clean and renewable energy sources, what is particularly interesting for investors in the region, and the transition of the energy mix to RES. All the speakers highlighted the region’s great potential. They mentioned the most important projects that have already been implemented, as well as those that are planned.

Mladen Grgić underlined the great importance that lies in the connection between our countries because we share rivers and lakes, and most of the Western Balkans countries were one country in the past. As he pointed out, establishing cooperation beyond individual countries’ borders is very important since we all have the same goal, and investors see the region as a whole, not as separate countries.

The participants agree that what represents a challenge, despite the great interest of the private sector, is the insufficiently structured approach of the governments of our countries, as well as the absence of regulations and laws.

Francesco Corbo pointed out that the 72 MW Krnovo wind farm project, the first wind farm in Montenegro and one of the largest in the region, is the first EBRD project in our region after almost 30 years.

Eric Scotto mentioned that Montenegro, where Akuo Energy established this project, was supposed to be the first country in Europe to use 100 percent renewable energy sources.

They especially mentioned that Montenegro is a country where all households will have the opportunity to save significant funds thanks to the large capacity of renewable energy sources and the great potential for energy export. Scotto referred particularly to electricity storage, which is of great importance and one of the key elements in the energy transition.

“In the past, people resisted using renewable energy sources, but today there is no alternative; even energy prices give us a signal that it’s time to speed up,” he pointed out.

The panel participants said that everyone present certainly knows what needs to be done, and if they act, we will all create a better future for all of us and our children. They emphasize that “we need to act swiftly right now”.

Energy Week Western Balkans

Project financing

The second panel on the first day of the conference was about the financing of clean energy projects, the transition from feed-in tariffs to the auction system, and funding risks and how to minimize them. The moderator of the panel was Petar Mitrović, partner and lawyer at Karanović & Partners, while the panelists were Guido Cleri, representing the European Investment Bank (EIB), Matti Piiparinen, from the Green for Growth Fund (GGF), Duško Krsmanović representing UKEF, Milica Sredanović, Head for Infrastructure at International Financial Corporation and Maja Turković Senior Vice President SVP Development Europe.

Guido Cleri spoke about the EIB’s investments in renewable energy sources, and everyone was interested in the position of investing in projects involving the private sector and how much they are willing to risk in order to reach the targets for reducing GHG emissions by 2030.

Matti Piiparinen from GGF (Green for Growth Fund) spoke about the organization’s activities and projects within Finance in Motion that advise GGF on harnessing the power of green finance and investments that reduce CO2 emissions in 19 markets across Europe, the Middle East, and North Africa.

As he explained, they are working on six Sustainable Development Goals (SDG): Clean Water and Sanitation (SDG 6), Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), Responsible consumption and production (SDG 12) and Climate Action (SDG 13).

Duško Krsmanović is the UKEF manager in charge of the Western Balkans, Central and Eastern Europe; in his presentation, he talked about the projects they are working on and how UK Export Financing works.

Milica Sredanović emphasized the importance of IFC financing in the region and underlined that 54 per cent of their energy portfolio is in renewable energy sources.

The presentation of Maja Turković related to projects in the sector of renewable energy sources but also the challenges they face due to the current situation on the market.

The conference Energy Week Western Balkans is held on the Montenegrin coast and lasts from September 6 to 8, 2022.

Energy Portal

EBRD Loans USD 100 Million to Boost Renewables in Turkey

06.09.2022

cape-ortegal-vetar-vetroelektrana — Photo-illustration: Pixabay (makunin)

The European Bank for Reconstruction and Development (EBRD) is extending up to USD 100 million in financing to Adnan Polat Enerji Yatirimi A.S. (APEY) as part of a financing package jointly provided by Turkiye Is Bankasi, Turkiye Sinai Kalkinma Bankasi (TSKB) and Garanti BBVA.

The new EBRD loan will help APEY to develop further 203 MW in renewable energy capacity in the next three years. The investment aims to provide a fresh boost to the renewable energy sector in Turkey.

APEY is one of the sector’s prominent players in Turkey with a total installed capacity of 695MW under two subsidiaries Erguvan RES (110MW) and Polat Enerji (585MW). Maxis, an Is Group private equity investment fund, shares ownership in APEY with Polat Holding.

The expansion includes 53 MW in wind and 150 MW in solar capacities, which will prevent the emission of approximately 154,000 tonnes of CO2 each year from the Turkish power system by generating 438,000 GWh of electricity per year.

Aida Sitdikova, EBRD Director of Energy Eurasia MEA, said: “We are delighted to work with a renowned and experienced renewable energy investor to speed up the transition to clean energy in Turkey. Turkey has an immense potential in renewable resources, and the EBRD continues to support the country in advancing its green agenda and meeting its commitments under the Paris Agreement.“

A joint statement from Polat Holding and Maxis highlighted their common goal of supporting the country’s transition to clean energy: “We established a joint partnership in APEY last year to contribute to the renewable energy sector in Turkey and to the country’s economic growth. Through this loan, APEY will further strengthen its position in the clean energy sector, lower carbon emissions and play a more active role in securing sustainable energy resources for our country.”

The EBRD is a leading institutional investor in Turkey. It has invested more than EUR 16.5 billion in 378 projects in the country since 2009, with the overwhelming majority of those projects being in the private sector.

Source: EBRD

“Open Balkans” Important for Economic Future of the Region

05.09.2022

gol7901-1200x0 — Foto: Predsedništvo Srbije / Dimitrije Goll

President of the Republic of Serbia Aleksandar Vucic said, opening the Summit of Leaders within the “Open Balkan” initiative, that the success of this project depends on the extent to which member countries of this initiative will manage to ensure their good economic future, but also to consolidate peace and stability in the region.

Vucic voiced the hope that this initiative will contribute to further economic strengthening and connection, but also provide the opportunity for us all to speak with one voice when it comes to key issues of interest for all countries of the region.

He pointed out that the establishment of a green corridor for the transportation of foodstuffs at border crossings led to a 17 percent increase in trade in this sector, and said that the competent authorities will continue their efforts to reduce waiting times for goods and passengers at border crossings.

The President also expressed hope that the implementation of the agreed documents will be even more successful, stating that the documents that will be signed today are the result of our determination to reach an even higher level of cooperation.

Vucic voiced his satisfaction that the three countries organised the International Wine Fair, which showed that they can hold such an important event at the world level, bringing most of their wine companies and promoting the capital cities and our countries.

Albanian Prime Minister Edi Rama announced that the leaders of the “Open Balkans” member countries will seriously consider inviting other countries important for our region, such as Greece, Italy, Turkey and Hungary, to this regional initiative.

With this initiative, we sent out a clear message to everyone that the first choice of all of us is peace, to work for our peoples. Of course, it doesn’t solve all our problems, it doesn’t make the issues we disagree on any different, but this is the right way, Rama concluded.

Prime Minister of North Macedonia Dimitar Kovacevski assessed that with the aforementioned initiative, North Macedonia, Albania and Serbia took a key step at a key time.

We have gathered to promote regional cooperation on the way to the European Union. Together, we are committed to facilitating the free movement of people, goods, and services. We have built neighbourly relations and trust between friendly countries, he underlined.

Source: The Government of the Republic of Serbia

Germany’s EUR 9 Transit Ticket Cuts 1.8 Million Tonnes of CO2

04.09.2022

fernzug-voz-lokomotiva — Foto-ilustracija: Pixabay

For three months, Germany has been offering ultracheap monthly tickets for all local trains, metros, trams and buses. The scheme was introduced in an effort to encourage the use of public transportation and ease the burden of inflation and high energy costs.

The plan appears to have been a success. Over 52 million people have bought the EUR 9 tickets and the reduction in car use has cut carbon dioxide emissions by 1.8 million tonnes, according to VDV, the leading public-transport organisation in Germany.

“The 9-euro ticket not only relieved citizens financially but also had a clearly positive effect on the climate,” said Oliver Wolff, VDV’s CEO.

The impact of Germany’s 9-euro tickets

Notable improvements to air quality in metropolitan areas have also been documented. Researchers at the University of Potsdam found that air pollution levels fell by up to 7 percent in response to the introduction of the low-cost ticket.

“Our results may have important policy and health implications: they show that subsidizing public transportation might be a viable option to reduce air pollution particularly in cities, thereby contributing to the UN’s sustainability goal of creating more resilient, safer and healthier urban agglomerations,” the University of Potsdam’s report states.

The study echoes the World Economic Forum’s recent Sustainable Road Transport and Pricing report, which called for affordable public transportation to “further encourage adoption and reduce the financial burden for current users.”

Deutsche Bahn, Germany’s national rail authority, said it alone sold 26 million of the 9-euro tickets and saw a 10 percent increase in ridership over the summer months. Evelyn Palla, a Deutsche Bahn board member, called the 9-euro ticket experiment a “complete success.”

The discounted ticket constituted a major price reduction. Normally, monthly tickets for local transportation in Berlin cost EUR 107. Among new purchasers of monthly public transportation tickets since June, over half said the low price was the leading incentive, VDV surveys found.

The 9-euro ticket scheme is set to expire at the end of August, but many advocates are pushing for an extension.

“All responsible actors should therefore now decide quickly on the continuation and further development of such an offer,” Wolff added. “If we take the traffic turnaround and climate change seriously, then we have to act now.”

The decision comes as Germany continues to face high inflation, which nearly hit 8 percent in August. The uptick reversed a slight downward trend that was recorded in the months prior.

Source: World Economic Forum

“Open Balkan” is an opportunity for all countries to be more energy secure

03.09.2022

Elektricna-energija- — Foto-ilustracija: Pixabay

Deputy Prime Minister and Minister of Mining and Energy, prof. Zorana Mihajlovic, Ph.D., stated that the “Open Balkan” initiative represents an opportunity for Serbia, Albania and North Macedonia to jointly implement projects in the field of energy, primarily when it comes to new capacities and strengthening energy security.

“Open Balkan” initiative is an excellent opportunity for connection and cooperation, for the flow of people, goods and capital, as well as for joint projects. The presidents of the governments of Albania and North Macedonia are coming today, and several agreements will be signed”, said Mihajlovic.

“We also have a joint energy crisis group, which we talked about recently in Tirana. We have several projects with North Macedonia that we plan to do. One is a gas pipeline that will cost around 20 million euros, with a capacity of 1.4 billion cubic meters of gas. We are also discussing the possibility of building a joint solar power plant. When it comes to cooperation with Albania and the construction of a new LNG terminal, we are discussing the possibility of Serbia being part of that project. That terminal, which should be operational in two years, will have a capacity of five billion cubic meters of gas, and it would be very important if we had the possibility of supply, said Minister of Mining and Energy.

“What is important for all three states and what we also discussed is the joint balancing of electricity, given that we all have capacities that use RES and the plan is to increase them,” said the Deputy Prime Minister.

Source: Ministry of Mining and Energy

Mihajlovic: We need solidarity, recommendations can bring savings of 15 percent

02.09.2022

Lampa_sijalica_struja — Foto: Bulb photo created by dashu83 - www.freepik.com

Deputy Prime Minister and Minister of Mining and Energy, prof. Zorana Mihajlovic, Ph.D said that the recommendations proposed by the Ministry to reduce the consumption of electricity and heat can provide savings of 15 percent, and that households that have a lower bill compared to the same month of the previous year will be stimulated with additional discounts.

“The state is working all the time to ensure that there are enough energy and energy sources for both the economy and households, but the question is how much money we give for that, and that’s why we appeal to everyone to start saving.” So, the question is not whether we will be able to produce and import, but whether we should pay such a high price for electricity? Let’s try to reduce spending so that the state has more money. Many countries in Europe, in addition to punitive measures, also announce restrictions, France, which also has nuclear power plants, as announced, will certainly have restrictions. We want to fight for every household to have sufficient amounts of electricity,” Mihajlovic said in a guest appearance on TV Happy.

She explained that the Ministry made recommendations, not only for households, but also for cities and municipalities, for state administration, public companies that should make their own plans to reduce consumption.

“Recommendations are not only for households, but also for the economy.” The biggest consumption is in heating plants, water supply systems in EPS. All public companies should make a plan to reduce spending by 15 percent compared to last year and designate people who will control the implementation of all measures, and I hope they will be mandatory. Some local governments have already started implementing the recommendations, reducing public lighting. It won’t compromise security, but it will help us give out less money. Projections say that by the end of the heating season, we will need 3.5 or 4 billion euros to have electricity, gas, and fuel oil. “Yesterday we had a meeting with mayors and presidents of municipalities and directors of heating plants, and we need to secure another 30 million euros for the fuel oil they lack,” she said.

The Deputy Prime Minister requested all the media in Serbia to contribute to raising awareness about the importance of saving energy in the conditions of the energy crisis.

“Unfortunately, we waste electricity not only because it is cheap, but because we are used to it, we don’t have a culture of saving electricity. EPS cannot produce enough quantities and the crisis is huge and prices change on a daily basis. Today, a megawatt-hour costs 630 euros, three days ago it cost 730, who knows what the price will be in December, and if we know that in August we spent almost 100 million euros to import electricity, why should we give half a billion during the winter. Savings are very important, and we have been talking about it for two years. And about energy efficiency, and more rational use of energy, and about solar panels. We decided to save, in addition to helping EPS to produce more energy and to reduce imports. In many European countries, there are no incentive measures, but high fines are prescribed. In France, the fine is 750 euros for shops if the doors are open and the air conditioning is on, there is talk of million fines in Spain, Italy also prescribes fines from 500 to 3,000 euros. We opted for recommendations, to say where and how it is possible to save and to help households whose bills will be lower compared to the same month last year,” said Mihajlovic.

Source: Ministry of Mining and Energy

Support for Fossil Fuels Almost Doubled in 2021, Slowing Progress Toward International Climate Goals, According to New Analysis From OECD and IEA

01.09.2022

emissions-elektrane-ugalj — Foto-ilustracija: Pixabay

Major economies sharply increased support for the production and consumption of coal, oil and natural gas, with many countries struggling to balance long standing pledges to phase out inefficient fossil fuel subsidies with efforts to protect households from surging energy prices, according to analysis released today by the Organisation for Economic Co-operation and Development and the International Energy Agency.

New OECD and IEA data show that overall government support for fossil fuels in 51 countries worldwide almost doubled to 697.2 USD billion in 2021, from 362.4 USD billion in 2020, as energy prices rose with the rebound of the global economy. In addition, consumption subsidies are anticipated to rise even further in 2022 due to higher fuel prices and energy use.

“Russia’s war of aggression against Ukraine has caused sharp increases in energy prices and undermined energy security. Significant increases in fossil fuel subsidies encourage wasteful consumption though, while not necessarily reaching low-income households,” OECD Secretary-General Mathias Cormann said. “We need to adopt measures which protect consumers from the extreme impacts of shifting market and geopolitical forces in a way that helps keep us on track to carbon neutrality as well as energy security and affordability.”

“Fossil fuel subsidies are a roadblock to a more sustainable future, but the difficulty that governments face in removing them is underscored at times of high and volatile fuel prices. A surge in investment in clean energy technologies and infrastructure is the only lasting solution to today’s global energy crisis and the best way to reduce the exposure of consumers to high fuel costs.” IEA Executive Director Fatih Birol said.

The OECD and IEA produce complementary databases that provide estimates of different forms of government support for fossil fuels. The current OECD-IEA combined estimates cover 51 major economies, spanning the OECD, G20 and 33 other major energy producing and consuming economies representing around 85 percent of the world’s total energy supply.

OECD analysis of budgetary transfers and tax breaks linked to the production and use of coal, oil, gas and other petroleum products in G20 economies showed total fossil fuel support rose to USD 190 billion in 2021 from USD 147 billion in 2020. Support for producers reached levels not previously seen in OECD tracking efforts, at USD 64 billion in 2021 – up by almost 50 percent year-on-year, and 17 percent above 2019 levels. Those subsidies have partly offset producer losses from domestic price controls as global energy prices surged in late 2021. The estimate of consumer support reached USD 115 billion, up from USD 93 billion in 2020.

The IEA produces estimates of fossil fuel subsidies by comparing prices on international markets and prices paid by domestic consumers that are kept artificially low using measures like direct price regulation, pricing formulas, border controls or taxes, and domestic purchase or supply mandates. Covering 42 economies, the IEA finds that consumer support increased to USD 531 billion in 2021, more than triple their 2020 level, driven by the surge in energy prices.

The OECD and IEA have consistently called for the phasing out of inefficient fossil fuel support and re-direction of public funding toward the development of low-carbon alternatives alongside improvements in energy security and energy efficiency. Subsidies intended to support low-income households often tend to favour wealthier households that use more fuel and energy and should therefore be replaced with more targeted forms of support.

Source: IEA

Municipality on the Path to Green Transformation and Economic Development

31.08.2022

Opština Lapovo (2) — Foto: Opština Lapovo

In the central part of Serbia, there is a settlement of medieval origin – Lapovo. By royal decree, once a large Serbian village, in 1896, it was declared a small town. Today, it is divided into two parts, the Upper, through which the Constantinople Road passes, and the Lower, through which the Svilajnac Road and the BelgradeNiš-Skopje-Athens railway.

The municipality of Lapovo, formerly known as Hlapovo valley, is located between three rivers, the Great Morava, Rača and Lepenica, and at the crossroads connecting Central Europe and the Middle East. It has an exceptional geographical position, making it a dynamic economic development scene. However, as we cannot talk about development today without adding the adjective “sustainable”, we were interested in how the municipality of Lapovo harmonizes the large influx of domestic and foreign investors with measures for environmental protection. We talked about this with the mayor of Lapovo, Boban Miličić.

EP: Environmental protection is recognized as a priority worldwide, so investments in renewable energy sources, afforestation and the fight against pollution are increasing. How important is this issue for the Municipality of Lapovo?

Boban Miličić: The issue of environmental protection is of great importance everywhere in the world and, therefore, in the municipality of Lapovo. The transition to the use of renewable energy sources and a responsible attitude towards the environment, in general, is very important, both for us and the generations to come. The energies of the sun and wind are inexhaustible and should definitely be used according to the budget possibilities. One of the ideas that our municipality is guided by is the afforestation of locations where it is feasible.

EP: Air pollution is undoubtedly the biggest environmental problem in Serbia, especially in the winter months when the concentration of suspended particles is several times higher than it is allowed. How is the Municipality of Lapovo dealing with this problem? Are there plans to replace fossil fuel furnaces with those that use environmentally friendly energy sources?

Boban Miličić: Air pollution is a big environmental problem, especially in winter. One measurement conducted on the municipality’s territory showed that in the winter months, the use of fossil fuels leads to increased air pollution, especially in the center of Lapovo. As there is no continuous monitoring of air quality in the municipality of Lapovo, the first and necessary step that needs to be implemented to determine air quality is its monitoring. To influence the environmental awareness of citizens, this year, the municipality of Lapovo signed an agreement with the Ministry of Mining and Energy on co-financing the program of energy remediation of residential buildings, family houses and apartments, which will enable citizens to directly contribute to preserving the quality of the environment with own funds, state, and municipal subsidies. Implementing the planned energy efficiency measures will contribute to reducing the waste of existing energy and obtaining it from renewable energy sources.

In focus:

EP: More green areas guarantee healthier air and the restoration of biodiversity. How much is the Municipality of Lapovo dedicated to afforestation, and what can you tell us about the recent actions or those that await you?

Boban Miličić: On the territory of the municipality of Lapovo, with the help of socially responsible companies, afforestation action was carried out at several locations last year, and this trend is planned to continue in the future. The preschool and school institutions were also involved in the afforestation action, all to raise the awareness of young people about the importance of preserving the environment. Also, the municipality of Lapovo has repeatedly responded to the call of the NGO Green Development Center, which through the action “Plant your shade” gives free seedlings to citizens and thus conducted an organized distribution of seedlings to a large number of interested citizens.

EP: Wild landfills “at every step” not only spoils the appearance of our country but also represents a serious environmental problem whose solution requires the engagement of all actors in the society. Are there any illegal landfills on the territory of the municipality of Lapovo, and how is this problem solved?

Boban Miličić: The municipality is aware of the problem of the existence of illegal landfills. In accordance with that, it is taking appropriate measures to solve this problem. Every year, certain budget funds are allocated for cleaning existing landfills. Last year, the largest of them was partially rehabilitated, and the works continued this year. In cooperation with the company FCC EKO Ltd., which deals with waste management on the territory of the municipality, spring and autumn cleaning is being carried out. In certain locations, large containers are set up to collect larger and bulky waste to make it easier for citizens to dispose of it and reduce the possibility of its disposal in unauthorized locations. Also, the municipality regularly fulfills its annual obligation to submit records of illegal landfills on its territory to the Environmental Protection Agency. A significant contribution to the reduction of environmental pollution in this way is the donation of the Ministry of Environmental Protection in the form of 13 plastic containers with a volume of 1,100 liters and 490 garbage cans with a volume of 240 liters, whose use will also reduce illegal waste disposal.

Interviewed by: Milena Maglovski

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

Limit on Prices of Petroleum Products, Basic Foodstuffs Extended

31.08.2022

The Serbian government adopted the Decree on Limitation of Prices of Petroleum Products, which refers to Euro-Diesel and Euro-Premium BMB 95, which is extended for the next 30 days.

The government made this decision taking into account the current situation with the price of crude oil on the world market, which negatively affects macroeconomic stability of the country, and with the aim of regularly supplying the market with petroleum products, preserving the living standards of citizens, as well as preserving economic stability.

An amended Regulation on the mandatory production and sale of bread was adopted, which limits the price of bread made from T-500 flour and the margin on other types of this foodstuff.

Bearing in mind that the market is still unstable, it was necessary to extend the period of validity of price restrictions by another 30 days in order to prevent major disturbances and preserve the living standards of the population.

An amended Regulation on limiting the price of basic foodstuffs – UHT milk with 2.8 percent milk fat in a one-litre package and the producer and retail price of white crystal sugar, which will be valid until 30 September this year was adopted.

The maximum retail price of UHT milk with 2.8 percent milk fat in a one-litre package must not exceed RSD 119.99, and the previous price was RSD 113.99.

The maximum retail price of white crystal sugar, in all packages, must not exceed RSD 102.99 per kilogram.

The maximum producer price of white crystal sugar in packages of one kilogram, five and 10 kilograms must not exceed RSD 85.11 per kilogram, while the maximum producer price of white crystal sugar for all other packages must not exceed RSD 93.63 per kilogram.

The Serbian government adopted this Regulation in order to protect the market, that is, to prevent deformations in the formation of the prices of the above-mentioned goods, which are extremely important for the supply of consumers, especially the underprivileged.

The correction of the price of milk and white crystal sugar was necessary considering that there was an increase in the prices of raw materials, which will not affect the traders of these foods, since the margins remained at the same level, and when it comes to consumers, the increase in prices will not significantly affect their standard of living.

A bigger problem at the moment would be the shortage of basic foodstuffs, which would happen if prices were to remain at a level that does not cover business costs.

Source: The Government of the Republic of Serbia

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