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WHEN WE SAVE FOOD, WE SAVE HUMANITY

Photo: Bambi
Photo: Bambi

Did you know that nearly one-third of grown and produced food on the planet is thrown away or wasted? It means that almost 1.3 billion tonnes of food are never consumed. To reduce the volume of food waste in the European Union (EU), its members have been measuring food waste volumes in all phases of the food supply chain since 2020. This October, Eurostat announced the first statistical monitoring results regarding food waste volumes in the European Union per sector in 2020.

According to the data, in 2020, the first year of the COVID-19 pandemic, nearly 57 million tonnes of food waste was generated in the EU, or around 127 kilogrammes per inhabitant. Household food waste is twice the size of the waste generated by the sectors with strategies for food waste reduction, including primary food production and processing, food retail, distribution, etc. According to Eurostat, households in the EU generate 55 per cent of food waste, accounting for 70 kg per inhabitant. 

The remaining 45 per cent is waste generated upwards in the food supply chain. The United Nations Environment Programme estimates that 2 million kilogrammes of food are wasted daily in Serbia. On the other hand, according to the latest data, 446,000 individuals cannot meet basic living needs. It is necessary to encourage cross-sectoral cooperation to additionally promote the reduction of waste food volumes and increase donated food, in addition to the improvement of the tax treatment of food donations. To that aim, the Coalition for Giving, including the Ana and Vlade Divac Foundation, Trag Foundation, Smart Kolektiv, Catalyst Balkans, Serbian Philanthropic Forum, CSR Forum and Chamber of Commerce and Industry of Serbia, supported by USAID, launched the “Save food, save humanity” campaign, marking the National Day of Giving in 2021. 

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The campaign’s relevance has been recognized by numerous individuals and 50+ organizations, companies, and media outlets. The campaign has been highly successfully presented this year, with 112,047 kg of food collected for the most vulnerable individuals across the country in both cycles, thanks to a synergy of civil society organizations, companies, citizens, and media, with the campaign continuing until end-November.

Photo: Bambi

“In the year of celebrating our 55th anniversary of operation, we have helped the most socially vulnerable individuals through donations to the Food Banks Belgrade, Vojvodina and Niš, within the “Save food, save humanity” campaign. In addition to donating our food, we have also provided media space to support the campaign and raise public awareness regarding the issue of excessive food waste in the most effective manner“, said Ivan Jovanović, Corporate Communications Manager in Bambi.

He added that he was particularly glad that, as a member of the Coca-Cola Hellenic Group, we have approached this project together, expressing solidarity in donated volumes of food and drinks. Through a range of activities, such as crowdfunding campaigns, food donations by producers, donation boxes in stores of the largest retail chains, zero banking fees for donations for purchasing staples for the vulnerable, the “Save food, save humanity” campaign has managed to demonstrate the relevance of joint and synergy action, focusing public attention on the necessity to tackle both issues – insufficient food donations and need for preventing food waste. In promoting this charitable campaign, the media have proven to be much-appreciated allies. 

The speed and intensity of messages and ideas for rational food consumption reaching every individual in our country largely depend on their understanding and support. There is a saying in our country that time is money, but we are not sufficiently aware of the value of the food we waste, as it can be directed to the most vulnerable social groups while still safe for consumption. Therefore, it is important to be constantly reminded that food must not be wasted, that we should help one another, and that any food waste is a waste of resources and money. Furthermore, it is important to note that food with a short expiration date is burned, causing additional carbon dioxide emissions and affecting the environment. From that perspective, rational food management also confirms sustainable and responsible treatment of nature.

Therefore, we invite you to join us in the mission of increasing food donations and against food waste in Serbia at www.spasimohranu.rs.

Prepared by: Milica Radičević

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

FAREWELL TO LASER PRINTERS

Photo: EPSON
Photo: EPSON

Epson’s new products bring static printhead technology to the mid-range market, simplifying the sales process and ensuring end users have the best product in line with the Sustainable Development Goals.

Unlike laser technology, inkjet technology requires less energy, and thanks to its simple design, it curbs the resources used during production and delivery. These printers are smaller, easily fit into offices and save space. Thanks to high-capacity cartridges, there is no need for frequent replacement of consumables, nor additional transport, storage and waste disposal costs. The mentioned products are a significant shift in Epson’s printing strategy and support the company’s commitment to sustainability.

The launch of the new products also coincides with the company’s decision to transition entirely to inkjet technology and to end global sales and distribution of laser printers by 2026. This comes a year after Epson announced an investment of more than 693 million euros in innovation in sustainable development.

This investment move was due to the inability to make a significant change in laser technology so that less heat and, therefore, less energy is used. With fewer moving and spare parts to replace over the printer’s life compared to laser ones, the need for Epson inkjet service and maintenance is reduced, as is the number of printer downtimes, thus improving productivity and user satisfaction. Ana Bajagić, marketing manager for the Balkans at Epson Serbia, says that the company’s current portfolio of business inkjet printers is completed with the new WorkForce Enterprise AM series.

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“We can respond to every customer request, whether from small work environments or large organizations that require fast systems. Whatever the function or printing demand, we have the right product. With a full range of support, through Managed Print Services, Workflow and Remote Service solutions, these products are easy to maintain, are of top quality and reliable, and, above all, make a sustainable printing system,” Ana adds.

More about the new product range

  • The most practical storage solution and significantly reduced weight
  • Improved reliability and reduced paper jams, thanks to the C-shaped paper inlet
  • 10.1-inch interface panel – simpler and smarter with eco-printing settings
  • Simple and easy to use with automatic paper size detection and soft close paper trays 
  • Easy loading, compact, high-capacity cartridges 
  • Space with a large paper capacity – up to 5,150 sheets of paper
  • Reduced printer downtime – designed for easy internal access, quick and efficient maintenance 
  • Ability to scan 60 pages/120 images per minute
  • Internal finisher – compact and space-saving for collating and joining documents, also available with the hole-punching option 
  • Attachable outer booklet finisher – for stapling, hole punching, envelope printing, and a variety of folding options

Interviewed by: Milena Maglovski

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

Association RES Serbia is a New Member of SolarPower Europe

Foto-ilustracija: Pixabay (
Photo: RES Serbia

Association Renewable Energy Sources of Serbia joined the membership of the European association SolarPower Europe.

SolarPower Europe is a European association for solar energy that brings together more than 280 different companies and organizations from the solar energy sector, which since its establishment has successfully advocated solar energy solutions, leads communication with European policy makers and helps in creating an environment that enables maximizing the growth of solar energy in Europe.

InfluenceMap ranked SolarPower Europe as the second leading association in the European Union for engagement in EU energy and climate policy. SolarPower Europe has a mission to ensure that solar energy becomes the leading energy source in Europe by 2030, while working intensively to lead its members to make solar energy the core of a sustainable, secure and inclusive energy system in order to achieve climate neutrality in the EU much before 2050.

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SolarPower Europe, together with its members, works to create and improve the regulatory and business environment for raising the use of solar energy to the next level, and how the Association RES Serbia, together with its members, strives to improve the business environment in the field of renewable energy sources and, in the service of preserving the environment, encourages the production and use of electricity from renewable sources, access to this recognized European association was a logical sequence of activities.

Association RES Serbia has been a member of the European wind energy association WindEurope since July 2021, and now, less than two years later, following the growing trend of interest in solar energy, the Association is intensifying its activity in monitoring the developments of this segment of the renewable energy sector. By becoming a member of WindEurope and SolarPower Europe, Association RES Serbia will strive to contribute to the improvement of the sector of renewable energy sources in Serbia, but also to facilitate and adapt to the energy transition in which the entire region is located.

Source: RES Serbia

SERBIA CANNOT AFFORD TO GIVE UP ON THE GREEN TRANSITION

Photo-illustration: Unsplash (Timon Studler)
Photo: ) Courtesy of Petar Mitrović

Renewable energy sources (RES) have long been a prerequisite for energy, economic, and thus national stability, while the ongoing energy crisis has further highlighted the need for green investments. However, as the transformation of the energy sector is much more than just switching from fossil fuels to renewable energy sources, it is necessary to adjust the regulatory framework so that complicated procedures are avoided and potential investors can easily decide to build RES power plants in the future.

We talked with Peter Mitrović, a lawyer who heads the regional industrial group Energy and Natural Resources at the Karanović & Partners Law Firm, about how the legal framework regulating renewable energy sources can be improved in order to expedite and promote Serbia’s energy transition. 

EP: You have been helping your clients to develop, implement and finance new energy projects with an emphasis on renewable energy sources. Since the green sector is still developing, what challenges do you face? 

Petar Mitrović: At the moment, the key challenge is the unfinished regulatory framework for developing projects that use renewable energy sources. Experience from the previous period tells us that one of the critical factors for the implementation of such projects is adequate regulation, which is the result of a compromise of all key factors – those who make strategic directions and political decisions, system operators (first and foremost, transmission system operators), then investors and financiers. As of recent, this kind of compromise has been lacking. The conceptual divergence of the Ministry of Mining and Energy, as the creator of the Renewable Energy Sources Law, and the EMS resulted in the fact that, from April 2021 to date, we do not have a rounded regulatory framework for the development of renewable energy projects. And so, from a solid law, that everybody expected a lot from, we fell into a period of stagnation, and every stagnation is actually a regression. We still don’t know what the balancing system will look like.

The law provided some frameworks, but the by-laws that were supposed to be elaborated on were not adopted. Now, admittedly, we are increasingly hearing announcements that the law will be changed to prescribe that, even before the establishment of a liquid intraday market, producers of electricity from renewable sources will be fully responsible for the balance. Another unknown is how and under what circumstances new projects will be connected to the transmission system. The basic prerequisites for announcing an auction for awarding premiums to solar and other power plants, except for wind firms, have not been created. As for wind farms, the maximum “incentive” price is set but this is an incentive only for EPS, which certainly could not be the basic idea. The state has no influence over many circumstances, such as the war in Ukraine, overall inflation, rising financing costs and disruptions in the supply chain. However, if the key stakeholders agree on the strategic directions for the development of our power sector, and I think they are obliged to do so, then this challenge, arising from an incomplete regulatory framework, can be overcome.

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EP: If the unfinished regulatory framework is the main challenge or the main obstacle, how can you and your clients overcome it?

Foto-ilustracija: Pixabay

Petar Mitrović: The circle of opportunities has been narrowed down to constant appeals for the activities on this topic to finally start. Along with that, or perhaps better said within that, we have been making constructive suggestions through various professional associations regarding the direction that these activities should take. As far as other challenges go, by default, they differ from project to project. These include a lack of planning documentation, issues of environmental impact assessment, complicated and unresolved legal issues regarding ownership, delay in issuing various permits, unfounded requests and inconsistent practice of authorities. Yet, while the challenges are different, the answer is often the same – let’s find a compromise solution. Experience from previous projects, as well as experience from the region and Europe, helps a lot in this. But the key prerequisite is to listen to each other.

EP: Are you optimistic about the further development of RES projects in Serbia and the region, or do you think that because of the energy crisis we are slowly reverting to fossil fuels? 

Petar Mitrović: I would say that the crisis did something completely opposite – that in the long term, it gave additional wind to the sails of the green transition. As never before, energy security has become an unquestionable prerequisite for national security. As a limited and short-term response to the crisis, decisions are occasionally made that could be interpreted as Europe reverting to fossil fuels, but I think that such an interpretation is deeply flawed and often extremely malicious. Relevant sources say that energy security in Europe can be ensured in the long run only through greater integration of renewable energy sources. And Europe will certainly not give up on that. We can see that the pace of activities in this segment is picking up.  I would say that the same relates to Serbia. This does not mean that coal-fired power plants should be shut down tomorrow. But in the long run, there is no doubt that abandoning the green transition would cost us dearly, in terms of security, health and economics. Because of this, I am confident that a framework will be created in this country to foster the development of renewable energy projects on a larger scale than ever before. 

Interviewed by: Milena Maglovski

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

BANKS CAN CHANGE BOTH THE WORLD AND AWARENESS

Photo: ProCredit bank
Photo: ProCredit Bank

The current climate situation requires reduced emissions of harmful gases to stop the increase in the average global temperature above 1.5 degrees Celsius compared to the pre-industrial level. To find a straightforward solution to the challenges we are facing, we need to go back to the beginning and understand the cause that led us to the problem we are fighting against.

What is the carbon footprint? 

Every human activity leaves a carbon footprint. Put simply, the total amount of greenhouse gas emissions produced directly or indirectly by people, organizations, events and companies is a carbon footprint. Its quantity measures our impact on the environment and climate change. Carbon footprint represents the sum of all emissions of carbon dioxide and other gases that retain heat in the atmosphere, causing global warming, and which humans cause by their actions over a certain period. As a guideline for the fight against these adverse effects, the European Union has set an ambitious goal – carbon neutrality by 2050. To reach the set goal, the Fit for 55 set of regulations and measures was adopted to accomplish the goal of a 55 per cent net reduction in greenhouse gas emissions by 2030.

Everyone can reduce their carbon footprint by changing their lifestyle and consumption habits, such as reducing the use of cars that run on fossil fuel, using renewable energy sources, consuming more sustainable products, and making smarter use of living and working space. And that’s just a small part of the changes we can implement. Companies, institutions, governments and large organizations are the ones that should make the greatest effort but also show others by example how positive changes can occur. That is why many of them strive to do responsible business, which puts environmental protection and the reduction of greenhouse gas emissions in the foreground.

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Responsible business as a choice 

ProCredit Bank gives a good example of this practice. The Bank contributed at the Group level by reducing its share of carbon dioxide by 56 per cent between 2018 and 2021. This was achieved by using solar energy, monitoring electricity and heat consumption, banning single-use plastics in business premises, and purchasing electric and plug-in hybrid vehicles, with the goal that all vehicles in the Bank’s fleet will emit zero CO2 by the end of 2022. The Bank has been doing business responsibly for decades because it takes responsibility for assessing the environmental impact of not only its own but also the activities of its clients on the environment and society. Thanks to dedicated work, ProCredit Bank is recognized as a green transition leader in Serbia.

ProCredit Bank’s every activity must be verified as sustainable, which is why the Bank works on planning and optimizing procedures to save resources almost daily. The fact that all the Bank’s operations must not have an impact on the environment, which is why the Bank will never lend to someone whose activities negatively affect the environment, regardless of the profitability the business brings, demonstrates just how committed the Bank is to achieving the set goals. Thanks to a careful and prudent approach to credit risk analysis and avoiding making compromises for the sake of profit, ProCredit Bank has a stable and strong loan portfolio. The constant education of employees about sustainable and responsible business and environmental protection ensures additional stability and security. The Bank works every day to transfer everything they apply to their clients and train them how to make their business sustainable. 

Prepared by: Milica Radičević

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

THERE IS NO PROFIT IF THERE IS NO CONSUMER TRUST

Photo: Courtesy of Milica Milanović

By launching initiatives aimed at achieving a net zero emission rate by 2050 in the countries in which it operates, Nestlé has been actively fighting climate change. In 2010, the company pledged to fight against deforestation. Thanks to their socially responsible and educational campaigns, such as the 2020 campaign called “Nestlé Saves Nature”, they have been drawing the public’s attention to the importance of responsible water and plastic use and waste management, with a special focus on the proper management of food surpluses. We spoke with Milica Milanović, Corporate Affairs Manager at Nestlé Adriatic, about the support that this company provides in the preservation of natural resources. 

EP: Estimates show that two million kilogrammes of food are thrown away in Serbia every day, and it is currently more profitable to destroy expired food instead of donating it because you don’t have to pay VAT if the food is destroyed. In 2021 and 2022, Nestlé donated more than 70 million dinars worth of its products to vulnerable groups throughout Serbia through various charity activities and campaigns. Does social responsibility come before profit?

Milica Milanović: They are inseparable. Today, no brand can be profitable if it doesn’t win over consumer trust, and the trust is built by investing in the preservation of the community. The quantity of wasted and destroyed food is huge, which directly impacts CO₂ emissions, while about half a million people in our country live on the edge of poverty. Something is not right. As part of the general circular business model, we have established a system that manages excess products. In cooperation with food banks and other organizations throughout Serbia, we regularly donate our products to vulnerable groups. However, the paradox is that charity has become expensive, so small producers, despite empathy, cannot afford to give gifts but instead have to destroy their products. On VAT on donations, we have been working with our industry peers – the Responsible Business Forum and the Chamber of Commerce and Industry of Serbia. Recently, the Ministry of Agriculture, Forestry and Water Management organized a panel discussion where we talked about this important topic. Everyone is aware that a change in regulation is necessary, and I believe that it will happen in the coming period. 

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EP: Nestlé supports 500,000 farmers worldwide in implementing regenerative agriculture. In Serbia, in 2021 and 2022, Nestlé invested 140,000 Swiss francs in local production processes carried out in line with the regenerative agriculture principles. How does this work, and what exactly is regenerative agriculture?

Photo: Nestlé

Milica Milanović: Regenerative agriculture practices, which, among other things, include afforestation, reduced tillage and planting of cover crops, have recently been implemented in our country, thanks to the programme that Nestlé implements globally with its suppliers. The companies Telek Paprika and Geneza from Kanjiža, the largest suppliers of vegetables used in our famous Začin C (Spice C), have been using organic fertilizer instead of artificial one since last year, thus protecting the soil from erosion with rows of trees and planting different crops to get better yields and healthier vegetables, but also to preserve natural resources for future generations. Soil rich in organic carbon is more fertile, has greater biodiversity and is a better water filter, improving surface and groundwater quality. Regenerative agriculture practices simultaneously bring positive economic effects, resilience to climate instability, and prosperity to agricultural communities. Globally speaking, by 2025, Nestlé will have invested 1.2 billion Swiss francs in implementing regenerative agriculture to reach zero greenhouse emissions by the same year. It is interesting to note that, despite people initially thinking that production is responsible for most of our emissions, close to 70 per cent of greenhouse gas emissions come from agricultural activities of our suppliers, i.e. before a raw material even reaches Nestlé. Nevertheless, we assess our influence through the entire supply chain. By recognizing agriculture as a key segment, we decided to invest in our suppliers so that they can continue to apply regenerative agriculture independently over time. 

EP: Your new plant-based food factory in Surčin will adhere to the latest environmental standards in the industry, will use renewable energy produced by hydro-power plants, will not generate municipal waste and will treat wastewater immediately in its own wastewater treatment facility. When is the factory going to be commissioned?

Milica Milanović: The factory’s construction is going according to plan, and we are nearing its end. We expect the start of production in the first half of next year. The same standards of sustainability that you mentioned earlier and that we apply in our existing plant in Surčin will also apply to this factory. Nestlé is the first food company to reach the goal of producing zero waste for landfills, which means that it does not send a single ounce of waste to landfills, but rather recycles it or uses it for other practical purposes, such as the production of fertilizers, biofuel or eco-insulation boards. The new plant will produce meals from the Nestlé Garden Gourmet range, which are an adequate substitute for meat in terms of their nutritional value.

Interviewed by: Milica Marković 

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

IT IS NECESSARY TO INTRODUCE MORE ENERGY-EFFICIENT TECHNOLOGIES

Photo: A1
Photo: ) Courtesy of Dejan Turk

To contribute to the reduction of the carbon footprint by using energy from renewable sources, the company A1 Serbia installed more than 3000 solar panels. It became the first telecommunications company on our market whose network infrastructure relies on this technology. Sustainability, along with the quality of the A1 network, which has been declared the fastest mobile network in Serbia for the second year in a row, will be imperative to preserve both the top user experience and the environment.

EP: The Austrian group A1 Telekom, the owner of the company A1 Serbia, has committed to achieving carbon neutrality by 2030 through a gradual transition to renewable energy sources, reducing the carbon footprint and increasing energy efficiency. Why is it important for Internet service providers to turn to green energy? 

Dejan Turk: The telecommunications industry is not a big polluter. It is responsible for only 3.7 per cent of global CO₂ emissions. However, it is a large consumer of electricity, being a provider of the Internet and solutions based on its use. Not surprisingly, this 3.7 per cent is predicted to double in the next three years. The need for connectivity at all levels are growing. To meet these needs, it is necessary to introduce new technologies, such as 5G, which are more energy efficient. Preservation of the environment has not been a matter of choice for a long time. I believe that everyone, both industry and individuals, can contribute to efforts to make the world a healthier place to live today and for future generations. With this in mind, we have set ourselves a new quality parameter related to sustainability. We are building a sustainable network whose quality is internet access speed, reliability and coverage, and the careful use of natural resources. This approach enables the further expansion of our infrastructure while at the same time achieving higher energy efficiency and lower energy consumption, increasing efficiency and the possibility for optimization. 

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EP: What concrete steps have you taken in implementing the ESG strategy on the Serbian market? 

Dejan Turk: Since July of last year, we have been using 100 per cent green electricity to power the mobile network, devices, and infrastructure. Thanks to this, we reduced CO₂ emissions by 19 per cent in 2021. This year we went one step further. We have started installing solar panels at all our base stations where there are conditions for it. We currently have close to 3 000 solar panels, and the plan is to install more than 2 500 new panels by the end of next year. We are also planning to install solar panels at our Data Center in Kragujevac because radio base stations and Data Centers have the greatest impact on the total electricity consumption. I am proud that we are pioneers among operators in this field, because currently we are the only ones in Serbia using solar panels to supply part of the network infrastructure with electricity. Bearing all this in mind, we expect significantly better results this year than the previous one. 

EP: What does A1 Serbia’s socially responsible strategy look like in accordance with ESG goals in the field of environmental protection? Dejan Turk: Contribution to solving the problem of air pollution, and protection of natural resources and biodiversity are imperative in our business. I will mention only some of the projects that contribute to the preservation of the environment, whose development and implementation we supported through our social responsibility platform ”The World You Want” – the association “Bašta može svasta” launched the first organic garden. The Internet Society of Serbia launched a project for the development of devices for air quality measurement “Klimerko”, there is also a project of a sanatorium for protected species of wild birds in the environment of Bačka Topola Agricultural School, which the school initiated, and the action “Serbia without illegal landfills” which is dedicated to the reduction of illegal landfills in Serbia.

Interviewed by: Milena Maglovski

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

Italy’s Progress on Energy Efficiency Provides Foundation for Meeting Broader Energy and Climate Goals

Foto-ilustracija: Unsplash (sasa damjanovic)
Photo-illustration: Pixabay

Italy is on track to meet its national emissions reduction and energy efficiency targets for 2030, according to a new in-depth policy review by the IEA, which highlights that cutting red tape further to speed up deployment of renewables should be a priority as Italy prepares to pursue more ambitious EU climate goals and reduce reliance on Russian energy supplies.

Since the last IEA review in 2016, Italy has increased its climate ambitions by endorsing the EU-wide goal of reaching climate neutrality by 2050, as set out in the European Green Deal. While Italy has made progress in a number of areas around energy efficiency and lowering emissions under its national strategy, it will need to make additional efforts to meet the EU’s more ambitious Fit for 55 package, which is yet to be agreed but will include new targets for 2030.

Despite vast natural resources suited to renewables and an industrial base that can drive the phase out of fossil fuels, Italy’s deployment of clean energy technologies has remained relatively slow over the last decade. Electricity generation from renewables more than doubled between 2005 and 2020, but most of this growth occurred in a five-year period (2010-2014), bolstered by generous incentives for solar PV. Since then, lengthy permitting procedures, high administrative costs, availability of land and local opposition have hampered new installations. Reforms made during 2022 and the planned adoption of a new regulatory framework are already addressing these bottlenecks, the IEA policy review notes.

Italy has made important strides in energy efficiency, helping to improve its resilience to shocks like the global energy crisis and also to advance its strategy for reducing emissions,” said IEA Executive Director Faith Birol. “Accelerating the deployment of renewables and other clean technologies while strengthening energy efficiency further will be essential for making greater progress on energy security and decarbonisation at the same time.”

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Today, Italy is heavily reliant on natural gas for both heating and power, with imports making up the lion’s share of its demand. In response to Russia’s invasion of Ukraine, the Italian government has committed to phasing out gas imports from Russia, its single largest supplier, by 2025. Thanks to investments made over the last decade to diversify gas supply routes, including through the Middle East and North Africa, Italy was able to quickly transition away from Russia. This is a delicate balancing act, with Italian gas demand expected to remain strong and likely to increase further in the short term as new gas-fired plants for electricity production come online.

Italy’s commitment to improving energy efficiency has helped it to achieve a decline in energy demand in the buildings sector. The energy demand reduction from buildings is the result of various policy measures, especially the super bonus scheme that offers tax reductions for expenses incurred improving the energy efficiency of buildings. While the scheme has been successful in delivering energy savings, not all socio-economic groups have been able to benefit from it to the same degree. The IEA report therefore recommends that Italy consider implementing tailor-made energy efficiency policies and instruments that successfully address the energy needs of the most vulnerable segments of the population.

Reducing energy poverty is a key policy concern in Italy, and that focus has intensified in the current era of high energy prices. Italy is implementing several policy measures to improve affordability across the board, but there is scope for more targeted interventions. In parallel, raising consumer awareness of the relationship between energy consumption and costs is needed and could be achieved through increased deployment of smart meters and a greater focus on system flexibility – two areas where Italy has already made substantial progress.

“Italy’s international leadership on power system modernisation is commendable,” said Dr Birol. “I hope this report will provide some valuable insights into how Italy can build on its current successes and deliver a sustainable, secure and affordable energy transition. I am also looking forward to working closely with Italy under its G7 Presidency in 2024 to support these priorities within the international community.”

Source: IEA

A PROFITABLE AND SAFE INVESTMENT IN THE CONSTRUCTION OF A SOLAR POWER PLANT

Photo-illustration: Unsplash (Andreas Gücklhorn)
Photo: Courtesy of Miroslav Lutovac

The new Law on Renewable Energy Sources (RES), and state subsidies for the purchase of solar power plant equipment created the prerequisites for a real market boom. Both individuals and companies have shown great interest i, so the jump in sales of solar panels and construction of solar power plants is almost expected. According to the data collated by the Ministry of Mining and Energy, the prosumer status has been approved for about 5MW of new solar power plants, while almost a hundred megawatts are in the process of obtaining this status. We spoke with Miroslav Lutovac, the energy adviser to the president of the Chamber of Commerce and Industry of Serbia, about financial benefits for companies with prosumer status and whether the RES Community model is more profitable.

EP: With the passing of a new energy&mining law and bylaws, the prerequisites for companies to build solar power plants as prosumers to cut their business costs have been met. How willing are companies in our country to make such changes?

Miroslav Lutovac: There are two basic reasons why companies and households in Serbia decide to invest in constructing a solar power plant to meet their own needs – financial and environmental benefits. Of course, financial well-being is a decisive factor including an acceptable return on investment period of 5 to 6 years and minimal operating costs, i.e. maintenance costs. All this makes the investment very attractive. Practically, this means that you can fulfil your electricity needs for about 25 years, which is the estimated lifetime of the power plant, by paying in advance the total energy spent during this period at a price that is four times lower than the current price.

A less favourable methodology applies to legal entities, that is, companies. It means that the price of surplus electricity delivered to the power grid is lower than the company originally paid for. Despite this, the interest is high, and it will certainly be even greater as the market price of electricity increases.

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Foto-ilustracija: Pixabay

EP: The law, for now, allows the establishment of associations or Communities, enabling small producers to organize and offer surplus electricity generated from renewable sources to the market. What are previous experiences with these communities? 

Miroslav Lutovac: Members of a Renewable Energy Sources Community (Community, for short) can be natural or legal persons (provided that the production of energy from renewable sources is not their main or predominant activity), local self-governments or other types of local governments. The main goal of forming the Community is using renewable energy sources to meet the needs of its members. By uniting a number of smaller renewable energy sources, the Community can become a relevant participant in the electricity market, directly or through an intermediary. In this way, the Community members have better financial benefits. 

As far as I know, two Communities have been formed so far, but there are initiatives by various companies to create several more such associations. It is too early to talk about the achieved effects, but we expect the Community model to be more profitable than the prosumer model.

EP: Lack of rain this summer reduced electricity production in Serbia’s hydroelectric power plants. Is the operation of thermal power plants jeopardized by these unfavourable circumstances? 

Miroslav Lutovac:  Hydropower plants account for about 30 per cent of the annual electricity production in the country. The operations of hydroelectric power plants directly depend on precipitation. In this sense, in addition to precipitation, it is also of great importance that the inflow is not extreme (periods of heavy precipitation and periods of severe droughts). This year was quite dry, although the situation improved considerably in November. We can expect with great certainty that, this year, hydropower plants will generate electricity whose quantity is significantly below the multi-year average. In addition to the reduced production from hydroelectric power plants directly contributing to the increase in the average electricity generation price, low inflow greatly affects the flexibility of the power system and to some extent, its stability and reliability.

Photo: Pixabay

EP: How can low water flow threaten thermal power plants, and what is the current situation with water flow? 

Miroslav Lutovac: Large amounts of water are needed for the normal operation of thermal power plants. Our largest thermal power plants, in Obrenovac and Kostolac, use water from the Sava and Danube rivers. Water from rivers is pumped in by special water supply systems, which have suction baskets lowered into rivers at the entry end. When the river level is very low, i.e. close to or at the level of the suction baskets, the operation of the water supply system must be stopped to prevent damage. It causes a thermal power plant to suspend its operations.  The current hydrological situation is such that the river level does not threaten to the safe operation of thermal power plants. With the drop in temperature, inflow will also decrease in the following period, but critically dangerous river levels that could threaten the operation of thermal power plants are not expected.

Interviewed by: Katarina Vuinac

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

AMBITIOUS GOALS ACCOMPANY BIG CHANGES

Foto-ilustracija: Pixabay
Photo: Schneider Electric

The requirement to move to a sustainable business only a few years ago did not have the same value and importance as it does today. During the height of the energy crisis and with clear indications that more stable solutions must be sought, the transition to sustainable business becomes a true imperative.

Schneider Electric has been on this path for many years, and that’s why we are talking to Ksenija Karić, director of Schneider Electric for Serbia and Montenegro, about whether the transition to sustainable business can be accelerated and to what extent such a transformation can affect the near future.

EP: Given that time plays a key role, in which segments/industries would it be most rational to switch to sustainable processes?

Ksenija Karić: If you consider that buildings and industries are the biggest consumers of energy, the fastest progress can be achieved with digital efficiency, both in buildings, by introducing sensors and systems for monitoring and control and in the industry with energy management systems. As the biggest consumers of energy, buildings and industry could save incredible amounts of energy, up to 30 per cent, with a quick return on investment of around 5 years. The installation of energy-efficient solutions in office buildings should also not be a matter of long deliberation because all technologies are already available and can be implemented quickly. According to the data we have for the retail establishments that already use such solutions in Europe, the savings were 23 per cent, and the return on investment was 2—4 years.

IN FOCUS:

EP: Sustainable business has long become a measurable category. How do you measure performance in that field?

Ksenija Karić: According to the SSI program 2021—2025, we committed ourselves to action, divided into six segments which are followed by adequate metrics. Since sustainable business cannot be viewed in an isolated context but must refer to all spectrums: social, environmental, corporate and financial, we have divided the operation into six segments. These segments include: acting for a climate-positive world — by continuously investing in and developing innovative solutions that deliver immediate and lasting decarbonization in line with our carbon pledge; developing resource efficiency by acting responsibly and making the most of digital technology to preserve our planet; affirmation of living following our principles of trust by supporting all around us for high social, management and ethical standards; creating equal opportunities, ensuring that all employees are uniquely valued and work in an inclusive environment in order to develop and give their best; harnessing the power of all generations by encouraging the learning, improvement and development of each generation, paving the way for the next generation and empowering the local community by promoting local initiatives and enabling individuals and partners to make sustainability a reality for all.

EP: Is this enough, and does the timing work for us?

Photo: Schneider Electric

Ksenija Karić: Although we are extremely proud of being a recognized leader in sustainable development, these last years have been a reminder that none of this is enough. The goal of reaching zero emission of harmful gases by 2030 is a race against time. According to our company’s research, as a basis for staying on track and limiting global temperature rise below 1.5°C, carbon dioxide emissions must be reduced by 30 to 50 per cent in this decade compared to current levels. Without such engagement, it becomes almost impossible to limit global temperature rise below 1.5°C, as presented by the Intergovernmental Panel on Climate Change (IPCC).

The only realistic path to success is the application of proven digital technologies with increased electrification as the fastest way to decarbonize buildings, transport and industry. The advantage of this approach over others is that it buys time to deal with sectors where these changes are more difficult to introduce. All other strategies would overburden consumers and not have a positive effect in an adequate period.

Despite the importance of the current moment in which the importance of sustainability is recognized and the fact that an increasing number of companies are adopting ambitious goals in terms of combating climate change, the need for acceleration is more than clear. At Schneider, we strive to be part of the solution and to support organizations in their pursuit of gradual decarbonization and the fulfilment of climate change strategies. We are accelerating the expansion of our consulting services globally to respond to the growing need for significant progress in the energy transition and climate change goals. We have made big changes with our wide network of partners and this experience tells us that many companies are ready for new industries and positive changes. However, they need a trusted partner who combines strategic planning and goal setting in accordance with proven results in the implementation of solutions to achieve faster and more visible results.

Interviewed by: Milica Marković

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

THE TOWN OF CAPITAL GREEN INVESTMENTS

Photo: Office of the Kragujevac Mayor
Photo: courtesy of Nikola Dašić

To know who we are today, we need to know who we were throughout history. To quote a man who made his mark on humanity: “History is the witness that testifies to the passing of time; it illumines reality, vitalizes memory, provides guidance in daily life and brings us tidings of antiquities.” (Cicero)

Throughout its history, the town of Kragujevac has deservedly been called “the first”. Three years after Ottoman rule ended, Kragujevac was declared the capital of the autonomous principality of Serbia. Novine Srbske, the first national newspaper whose editor was Dimitrije Davidović, was also published in this city. Today, resting on its tradition, Kragujevac won the competition for the number one eco-municipality in the Energy Efficiency category. To earn the title of eco-municipality, at a time when ecology represents the most important issue for future survival, was not an easy feat. Just before another successful year for this city ends, we spoke with the Kragujevac Mayor, Nikola Dašić, about the town’s impressive successes.

EP: Five half-century-old coal-fired boilers were replaced with new gas-fired boilers in the Energetika heating plant in Kragujevac. How much has the carbon dioxide emission been reduced and what are the plans for the rehabilitation of the ash dump?

Nikola Dašić: The reconstruction and changing energy-generating products in the city’s heating plant is one of the most important large-scale projects in Kragujevac. With the installation of new gas boilers, 50-year-old coal-fired boilers, which were serious pollutants, were decommissioned, and this will greatly improve the air quality in the city area. Everything was done according to the relevant global standards and the district heating system in Kragujevac can now compete with heating systems in any European city. The benefits of this were felt when the heating season started. The emission of carbon into the atmosphere was reduced by more than 70 per cent. The next project phase is the rehabilitation of the ash dump that is located on the heating plant premises, which also pollutes the environment as the ash was being scattered all around. We found the best solution in consultations with EBRD experts. The ash will be used as construction material for the construction of 15km of local roads in Kragujevac at the beginning of the next construction season.

IN FOCUS:

EP: The plan is also to reconstruct a part of the hot water pipeline that supplies consumers in the Kragujevac neighbourhoods of Erdoglija, Lepenica and Centar. Did you manage to put that into practice?

Nikola Dašić: As part of the preparations for this heating season, we completed the overhaul of the main heating pipe, going all the way to the city centre. A total of 3.6km of pipes were replaced, which significantly improved the distribution of thermal energy to the neighbourhoods of Lepenica, Centar and Erdoglija.

EP: So far, 14 unregulated landfills have been removed. In what way will waste be managed in the future so that no new unregulated landfills are created?

Photo: Office of the Kragujevac Mayor

Nikola Dašić: Due to the negligent disposal of municipal and construction waste, every once in a while, an unregulated landfill is created in various neighbourhoods in Kragujevac. The teams from the Šumadija public utility company remove such waste exclusively by order of the communal inspection. In June, under the auspices of a project implemented by the Ministry of Environmental Protection called “Joint Forces Against Unregulated Landfills in Kragujevac”, as many as 14 of the largest unregulated dumps were removed. The line ministry allocated more than one million dinars for this purpose.

The workers of the Šumadija public utility company visit the most critical locations in the city every day, where, even after cleaning, municipal waste is dumped again in the same place. The citizens themselves can help a lot with this. Anyone who notices accumulated municipal or bulky, construction waste, can submit a report with the exact location of the dump to the local inspection, which, after the inspection, issues an order to the utility company to clean the location. In order to remove bulky waste faster and more efficiently, the Šumadija public utility company organizes free pick-up of old furniture, doors, windows, and the like, every first and third Saturday of the month, as well as on weekdays, by citizens’ invitation.

On the other hand, it is still impossible to completely prevent the emergence of unregulated landfills, and in this sense, we need to educate the citizens on the one hand, but also sanction those individuals who treat nature irresponsibly.

Interviewed by: Katarina Vuinac

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

THE FORMULA FOR GREATER ENERGY SECURITY IN INVESTMENTS, SAVINGS AND RESPONSIBILITY

Photo: Ministry of Mining and Energy
Photo: Ministry of Mining and Energy

As long as the energy crisis lasts, maintaining stable energy production while providing enough energy for the domestic market remain the key to securing supply in the coming months. We spoke with Minister Dubravka Đedović, who helms the strategically important Ministry of Mining and Energy, about the extent to which citizens have listened to the Ministry’s recommendations regarding energy saving, the Ministry’s support for energy-vulnerable households and long-term plans in the energy sector that should help us in the transition to green energy.

EP: We have had quite warm weather in the past period ,which is why the heating season started a bit later than usual. Should we still be optimistic about the energy supply?

Dubravka Đedović: Both people and businesses in Serbia have a safe and stable supply of electricity and gas, which is the most important thing. We are importing certain quantities of electricity that we lack, which costs us a lot, in addition to importing coal. In terms of gas, we have a stable supply via the Balkan Stream gas pipeline. In addition to the natural gas storage in Banatski Dvor, we have more available quantities of gas stored in storage in Hungary. Also, the country’s crude oil and oil derivatives reserves have increased.

Because the weather in October was somewhat better than usual, we did not have to import electricity, for the most part, that month.

The Ministry’s recommendations on how to save energy during this winter in state and public institutions, local self-governments, businesses and households have already yielded the first results in October. We hope that the same will happen in the coming months. According to the data collated by EPS Snabdevanje, the total consumption of electricity in October was 11 per cent lower compared to the same month of the previous year. Out of 3.37 million households, as many as 45 per cent of them reduced their electricity consumption in October, thus making the largest number of households, around 700,000, eligible for a 30 per cent discount on their electricity bills.

Electricity prices on the market rose significantly in November. We are closely following market developments to react promptly and ensure safe supply at the lowest price for both individuals and businesses. Also, the state must take care of socially vulnerable citizens who are more affected than others by fluctuations in electricity and gas prices. We will pass a new regulation on energy-endangered customers quite soon, which will ensure discounts for as three times as many citizens as before.

IN FOCUS:

EP: Your Ministry is also drafting strategic plans that, when implemented, will boost the share of renewable energy sources (RES) in the energy mix. Do you think your goals are ambitious?

Photo-illustration: Pixabay (mrganso)

Dubravka Đedović: We are currently developing the Integrated National Climate and Energy Plan and the new Energy Development Strategy, which will set goals related to the share of RES in total energy production, reduction of harmful gas emissions and energy efficiency. It is important that these goals are realistic and sustainable and that they are an incentive for the development the energy sector and the entire economy, which will align with the green economy principles.

The construction of new facilities that use renewable sources should be coordinated with the development of the electricity transmission and distribution grid so that the development of the energy sector is sustainable, efficient, and economical and leads to a higher degree of energy security and safety. Currently, our RES capacities are around 500MW, not including hydropower plants. In the next few years, we will generate an additional 400MW, primarily from wind energy. We are also working on improving the existing regulation so that, in the medium term, our system can accommodate eight times higher capacity. We want the energy produced from renewable sources to remain in Serbia, to be used by our citizens, and to export only the surplus. We are working on finding a model that is in the best interest of citizens, and at the same time, sustainable for investors.

EP: Today, RES makes up 26 per cent of Serbia’s energy mix, and the plan is to almost double the number of so-called green megawatts. Will our electricity distribution and transmission grid be able to support this?

Dubravka Đedović: Increasing the share of Serbia’s energy mix cannot take place at the wanted pace if we do not have a network that can support it. The transmission system is the backbone of the power grid. The construction of the Trans-Balkan Corridor should ensure greater safety and stability of the high-voltage grid, enable new green energy production facilities to connect to the grid, and have a better connection with neighbouring countries. I will continue to work on modernizing the electricity distribution grid, which is the bloodline of our energy system. The total losses in the distribution and transmission grid stand at around 12 per cent annually, which means that investing in the grid’s modernization can significantly contribute to improving energy security, i.e. reducing imports.

Interviewed by: Nevena Đukić

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

AN INNOVATIVE SOLUTION FOR A WEED-FREE LIFE

Photo: courtesy of Miloš Stanković
Photo: courtesy of Miloš Stanković

For some, the first days of July bring the long-awaited signal to start getting ready for the annual vacation, while others are heralding the fight against ragweed pollen. This annual weed produces pollen from early July until the first frost. One stalk of ragweed produces millions of pollen grains and tens of thousands of seeds, which cause a lot of problems for humans.

Almost all of us know at least one person who is allergic to ragweed. People who strongly react to ragweed pollen often complain of a compromised quality of life caused by the allergy in the summer months. Thanks to Professor Miloš Stanković, PhD, a scientist and inventor, they could soon forget about their troubles and start breathing without hindrance. He invented the Ambrozer, a device that uses radio frequency and electricity to recognize and destroy this plant at the root.

“My brother has had a problem with ragweed since he was a small child, as have many people from my environment. I wanted to help them, so I started developing the device. Even the famous Nikola Tesla was trying to make an electric device that would destroy weed. Since then, many people have produced various devices, but they needed to meet numerous safety requirements in the EU and the rest of the world. I succeeded in that”, explains Dr Stanković, who is an electrical engineer by profession.

IN FOCUS:

Photo: courtesy of Miloš Stanković

The device that destroys ragweed consists of electronic components and electrodes. With the help of a certain frequency and current, the weed is destroyed at the root without the use of chemical compounds and pesticides. In this environmentally friendly way, the weed not only disappears but no longer grows at all during the season.

“By regulating the frequency, weed or a specific part of the plant is destroyed. The frequency used to eliminate weed is adjusted to the specific weed type. During the physical contact between the electrodes (on the device) and the weed that is being treated, biochemical and biophysical processes occurring in the weed, due to which it instantly withers. The device should be used while the weed is small, due to less electricity consumption”, explains Dr Stanković.

The device can be set to destroy a group of weeds or to be more selective. According to the inventor, ragweed is the easiest to destroy. As everything is treated physically and selectively, there is no impact on other agricultural crops, useful plants and microorganisms.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine Waste Management.

More action needed in the EU to reduce the impacts of chemical pesticides

Photo-illustration: Pixabay (wuzefe)
Photo-illustration: Pixabay (schauhi)

Widespread pesticide use is major source of pollution — contaminating water, soil and air, driving biodiversity loss and leading to pest resistance. Human exposure to chemical pesticides is linked to chronic illnesses, such as cancer, and heart, respiratory and neurological diseases.

The new EEA briefing ‘How pesticides impact human health and ecosystems in Europe’ summarises the latest knowledge on how chemical pesticides impact our health and the environment and presents good practices to reduce their use and risk across Europe. It showcases good practices for how to reduce pesticide use and manage the associated risks without jeopardizing food supply.

Pesticide use and impacts: what we know

Europe’s agriculture sector still relies on using high volumes of chemical pesticides to maintain crop yields, with the volume of pesticides sales having remained stable over the past decade. Pesticides are also used in forestry, and along roads and railways, as well as in public parks, playgrounds or gardens widely used by the public — particularly by children, pregnant women and the elderly, groups more vulnerable to pesticides.

From 2011 to 2020, pesticide sales in the EU-27 Member States remained relatively stable at around 350,000 tonnes per year.

More:

In 2020, one or more pesticides were detected above thresholds of concern (a risk to human health) at 22 percent of all monitoring sites in rivers and lakes across Europe. In terms of soil pollution, 83 percent of agricultural soils tested in a 2019 study contained pesticide residues.

Foto-ilustracija: Pixabay

Pesticide pollution is one of the key drivers of biodiversity loss in Europe. In particular, pesticide use has caused significant declines in insect populations, threatening the critical roles they play in food production, in particular the pollination of most fruit and vegetable crops.

People are mainly exposed to pesticides through diet, including food and drinking water, as well as by spending time in areas where pesticides are applied and, for agricultural workers, at the workplace. A large-scale human biomonitoring study conducted between 2014 and 2021 across five European countries found at least two pesticides present in the bodies of 84 percent of survey participants.

Pesticide levels were consistently higher in children than in adults, with children being particularly sensitive to the negative health impacts of chemicals. Human exposure to chemical pesticides is linked to a range of serious chronic diseases, such as cancer, and heart, respiratory and neurological diseases, as well as developmental delays in children.

Meeting the targets — reducing pesticide use

In 2020, the European Commission’s Farm to Fork Strategy introduced two pesticide reduction targets: a 50 percent reduction in the use and risk of chemical pesticides and a 50 percent reduction in the use of more hazardous pesticides. The Strategy is a key part of the European Green Deal and aims to make Europe’s food systems fair, healthy and sustainable. Achieving the targets will require more work by EU policymakers and Member States, the briefing notes.

The European Commission recently proposed a new regulation on the sustainable use of pesticides, which would require countries to set their own national reduction targets, ensure that all farmers and other professional pesticide users adopt environmentally friendly systems of pest control, and restrict the use of pesticides in sensitive areas such as urban green areas and protected areas. Other measures discussed in the briefing include training professional users and advisors, incentivizing the transition to organic and precision farming, and taxing the most hazardous pesticides.

To reduce dependency on chemical pesticides and maintain food security, it will also be critical to promote the shift to alternative models of agriculture that apply ecological concepts and principles to agricultural production, the EEA briefing suggests.

Source: EEA

GIVING OLD TOYS A NEW LIFE

Photo: Ivan Kocić
Photo: Ivan Kocić

Ivan Kocić graduated from the Faculty of Applied Arts in Belgrade, and for years he has been exploring the nuances of his artistic expression in numerous painting techniques and styles. However, today he is best known for his assemblages in which he illustrates female portraits using colorful plastic toys.

“I got the idea seven years ago while working on a larger classic mosaic. I thought it would be interesting to play with a mosaic using different materials instead of the usual stone, glass paste or ceramic. So, the choice fell on used toys that were brightly colored, which made the work easier, and of different shapes and sizes, which at the same time made it difficult to create portraits,” says Kocić and adds that from the beginning, his idea was to emphasize recycling in order to give his work a special social note.

“Today, after several years of work on the series I called ‘Recycling of play‘, it is obvious that the audience has accepted these ideas. Even the audience has become a part of this artistic action, considering that among them, I have a strong base of those who are happy to collect and donate old toys,” explains the artist.

Until now, Ivan has exhibited several times in Belgrade, as well as throughout Serbia and the region. Some works have traveled to distant gallery destinations, even to Mexico. The audience’s reactions are very positive, and the portraits leave no one indifferent.

“I think my works even inspire people to express their artistic ideas through some forms of recycling. That is one of the ideas woven into my works,” explains Kocić.

The youngest are the most active audience

Our interlocutor actively runs workshops for children that give the youngest a unique opportunity to transform their old toys into something new. Kocić explains that children are the most active audience; they are honest and straightforward in their question but also in their reactions to Ivan’s work.

Photo: Ivan Kocić

“Little ones like to touch, to get close. After a short initial shyness, they relax easily because the toys are familiar and close to them as objects. In this way, they become interested and learn about recycling and contemporary art, represented by the portraits. From time to time, in addition to exhibiting works, I also organize workshops where everyone is welcome – from age 7 to age 77. Then, on a practical example, you can see the creation of an assemblage,” Kocić points out.

When it comes to collecting art materials, all old toys are acceptable. Ivan gets them exclusively through donations from children and parents, so they become collaborators in creating works of art.

“Most toys have a part missing. The consequences of their use, such as scratches and deformations, are visible. Quite often, I get new, unwrapped toys, and I give them to some less fortunate children who don’t have so many toys. In any case, the idea is to make assemblages from used objects, so I follow that idea,” adds our interlocutor.

Prepared by: Milena Maglovski

Read the story in the new issue of the Energy portal Magazine Waste Management

Heavy Industry’s Transition to Clean Energy

Photo: SolarEdge
Photo: Christian Carraro, SolarEdge 

With governmental pressure in most countries ramping up and bold deadlines to phase out fossil fuel within the upcoming decades, many companies and industries are adapting to the large-scale transition to clean energy. For traditional heavy industries such as manufacturing and logistics, the shift is a big one, and identifying how to achieve that objective can seem like a very complex challenge. Here, Christian Carraro, General Manager South Europe at SolarEdge Technologies, a global leader in smart energy technology, shares his insights on the key issues that manufacturing and logistics companies need to consider to achieve their sustainability goals, and the business opportunities they can bring.

In Europe, there are some 300 industries – many of them international – that have set due-dates to significantly reduce carbon emissions. The years commonly range from 2025 to 2035, and for some, 2050, depending on the country. Promises have been made by companies to shareholders and communities, and pledges posted on websites. While genuine commitment to ‘play their part’ is a key factor, action is also spurred by incentives from regional utilities to encourage adoption of renewable energy – as well as the incoming carbon taxes on industries that do not meet legislated emissions levels.

Among the companies leading the cause are the heavy industries historically perceived as major polluters, such as oil and gas, chemical and automotive, logistics and large-scale industrial manufacturing. I have been working closely with companies in these industries for over a decade, helping them to transition to renewable energy, specifically solar. These operators typically have large premises and potentially acres of empty roof space, and solar modules provides a very visible demonstration of their commitment to sustainability. At the same time, the flexible nature of solar means it does not typically require planning permission, and, thanks to improvements in solar technology and fluctuating energy prices, the ROI period for solar projects is becoming ever more attractive.

For organisations whose business has never been power generation, making the transition to solar can present a challenge, and certainly there are several considerations that need to be taken into account. For example, there may be variations in national or even regional regulations that dictate the maximum size allowed for a PV system. Sometimes, the buildings used by companies may not have suitable rooftops, or the buildings may only be leased or rented making the landlord’s commitment to installations problematic. Landlords are often reluctant to allow a solar installation with a return on investment (ROI) of less than the occupier’s lease.

Within large industrial corporations there can also often be complexity in the decision-making process. This may involve corporate-level management, investors, regional management, plant managers, risk assessment officers, energy managers, sustainability managers, insurance officers, local officials (including fire departments), and often risk, insurance and energy consultants. The challenge here is to ensure all stakeholders in the decision-making process understand what the end-goal is and that they can work together to achieve it.

Addressing concerns before taking the road to transition

Once a company is aligned internally, the next step is to find competent partners who can help it navigate the transition and minimise risk. These are likely to include a mix of companies, from consultants and EPCs to technology providers who can provide expertise based on decades of installing solar systems. These providers could be either local or global depending on the needs of the company, though many companies that have made the transition often find that the involvement of local partners who know the regulatory and operational conditions is very important.

In a recent meeting with a large chemical company, I was asked in jest, ‘if our tree has always been fruitful, why take it down and grow a new one?!’. Referencing their long standing use of traditional energy supply, they knew the answer to the analogy, but it does exemplify a wider industry consensus that while the transition to solar is needed, it comes with a lack of understanding of its value and how to best implement it.

The transition to solar requires a solid understanding of the requirements and risk factors involved. First, the financial case needs to be considered. Solar provides a very attractive ROI over the total lifetime of a system, having saved many of our longsta nding customers millions. However, companies will have to bear the majority of the cost up front as CAPEX. The next step is the process of putting solar panels on the roof of buildings and achieving the promised energy supply, which is a relatively simple and low risk exercise.

Safety and Risk Management

With chemical, oil and gas, and automotive companies, the main concerns are around safety and risk. These concerns come from a variety of sources, from risk and safety officers, to building managers (and owners), local councils and fire departments, and the companies’ insurance managers. The insurance element is, itself, complex as it includes building insurance, insurance of the solar system, business insurance and general liability.

As the solar industry matures and the number of installations increase, stricter safety standards and regulations are now commonplace. These safety standards often outline that should maintenance on the roof be necessary, or in case of an emergency, the solar inverter must be able to reduce the DC current produced by solar panels to a touch-safe voltage within a specified amount of time.

Overcoming fear of risk takes time and requires the right experts to provide credible data-backed input and proper due diligence. We work with Marsh LLC, who are global experts in risk management and insurance-focused brokerage. Our partnership with such a highly-respected company with a long track record provides a lot of reassurance for enterprises that are considering investing in solar.  

Cross-industry collaboration is key

Once the first PV installation has been successfully completed, we find that companies quickly move on to the next one, often accompanied by the question ‘why didn’t we do this sooner?!’. The completion of each successful solar project becomes the model for the next, albeit local adjustments may need to be made. For example, in some countries excess solar energy cannot be fed into the grid. However, we can help implement energy storage systems so that excess energy can be managed and used to further reduce the dependency on the grid.

It’s important to recognize that every industry has its own unique set of challenges which must be taken also be taken into account to ensure a smooth transition away from fossil fuels. One of the ways we do this is to bring together different companies from within the same industry, for example chemicals, to discuss their requirements and concerns. This helps us to better understand the specific needs of each industry and best guide them on what steps are required to effectively make the transition. You’d be surprised at the level of cooperation these often-competing companies can achieve in order to find the best sustainable energy solution to power their business.

Transitioning to a brighter future

While COP27 certainly shone a spotlight on the need to accelerate change, the reality is that the dial is slower than most of us would like. For heavy industries, the introduction of solar energy requires a shift in mindset on many levels. For example, it requires greater collaboration between separate departments and responsibilities. It also requires stakeholders to move away from thinking about risk reduction centred around initial CAPEX, to recognizing the opportunities to future-proof businesses, especially against the recent energy pricing volatility we’ve seen in many countries. I’ve spoken to many companies who now view solar as a valuable asset that not only helps meet corporate sustainability goals, but can also be turned into a revenue stream. When that suddenly clicks and the mindset changes, it really is a magical thing to see.

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Source: Solar Edge