Training and dialogue program Energy Policy (B)

IEEJ : June 2011

REVIEW OF THE CURRENT ENERGY POLICY IN
THE REPUBLIC OF SERBIA WITH THE
DEVELOPMENT PERSPECTIVES

Author: Mirjana Laković, PhD
Faculty of Mechanical Engineering,
University of Nis
Republic of Serbia

June, 2011.

INTRODUCTION•By its position on the Balkan Peninsula, Southeastern Europe, Serbia isknown as the crossroads of the Europe, but also as the crossroads
between the two continents ‐ Europe and Asia.

The country of Serbia is characterized by an energy deficit, which
continues to grow.
• Total dependence of around 40%.
• Energy intensity is 0.33 ktoe/US$•

June, 2011.

L A W S and S T R A T E G I E S
THE MOST IMPORTANT DOCUMENTS WHICH REGULATE ENERGY ISSUES:•

Energy Law (2004)•

Law on Environmental Protection (2004)•Amendments to Annex B of the Kyoto Protocol (2007)•Different by-laws on renewable electricity•The Strategy of Long-Term Energy Development by 2015 (2005)•

Program for implementing The Strategy of Long-Term Energy Development•

National Program for Environmental Protection•

National Program for Integration of Serbia into the EU•

Sustainable Development Strategy•

Introducing Cleaner Production StrategyJune, 2011.

CURRENT ENERGY POLICY OF SERBIASERBIAN ENERGY POLICY SETS OUT THREE CRUCIAL ELEMENTS OF SUSTAINABLE
DEVELOPMENT :•Competitive energy markets•

Environment protection•Energy efficiency and use of renewable

SERBIAN ENERGY POLICY PRIORITIES ::•Programs of continuous technology modernization of energy factories/resources in oil,gas and coal sector•Programs for rational use of energy and energy efficiency•Programs of selective use of new renewable energy sources and efficient production
technologies and appliances•

Program for exceptional investments into new electro energetic and heat sources•

Programs of intensive capital investments into new sources/objects and theparticipation in strategic (regional/ Pan‐European) energy infrastructure projects.
June, 2011.

ENERGY POLICY INSTRUMENTS
THERE ARE FIVE DIFFERENT TYPES OF POLICY INSTRUMENTS:•

Legislation/regulation: laws, by-laws, standards, codes;•Economic measures: taxes, subsidies, tariffs;• Research and development: targeted efforts to develop moreenergy efficient technologies as well in connection with energy
production as end-use sectors. Development of improved strategies inconnection with change of behavior might also be within the scope ofresearch and development activities;• Information and education: information and education of energy
users on how to use energy more efficiently;• Data and statistics: energy data and energy statistics to develop
strategies and to monitor the development including estimation ofpotentials for energy savings.

June, 2011.

ENERGY SUPPLYENERGY SUPPLY SECTOR:•Coal extraction,•Oil and gas production,•Imports of crude oil, oil products and gas,

•Coal and hydro electricity generation,•District heating systems and industrial energy systems.

EXISTING CAPACITIES FOR ELECTRICITY PRODUCTION INCLUDE:•Hydro power plants,•

Thermal power plants (coal, heating oil, natural gas),•

Combined heat and power plants,•Small hydropower plants,•Industrial power plants and district heating.
June, 2011.

P R O D U C T I O N OF E N E R G Y AND E N E R G Y I M P O R TProduction of primary energy
10M toe

8Renewables

6Gas

4OilCoal & lignite

202002 2003 2004 2005 2006 2007 2008 2009

Energy import
8M toe6electricityGas

4Oil
2

Coal & lignite

02002 2003 2004 2005 2006 2007 2008 2009

June, 2011.

ENERGY PRODUCTION CAPACITIESPower Plant
TPP Nikola Tesla A
TPP Nikola Tesla B

Geographical distribution of existing power plants in Serbia

June, 2011.

TPP Kolubara
TPP Morava
TPP Kostolac A
TPP Kostolac B
TPP Kosovo A
TPP Kosovo B
Thermal Power Plants
TPP-HP Novi Sad
TPP-HP Zrenjanin
TPP-HP Sremska Mitrovica
Thermal Power Plants – HeatingPlants
HPP Djerdap I
HPP Djerdap II
HPP Vlasina
HPP Pirot
HPP Bajina Basta
PUMPED-STORAGE PP Bajina
Basta
HPP Zvornik
HPP Elektromorava
HPP Limske
Hydro-Power Plants
Power Plants Owned by EPS
Other Power Plants
Total

Net Output Capacity(MW), 2008
1.502
1.160
245
108
281
640
617
618
5.171
208
100
45353
1058
270
129
80364
614
92
13211
2.831
8.355
3778.736

NEW PRODUCTION FACILITIES AND REHABILITATION OF EXISTING FACILITIESCONSTRUCTION OF NEW THERMAL POWER PLANTS IS IN PROGRESS:•TPP Kolubara B (2 x 350 MW),

•TPP Nikola Tesla B3 (new 744 MW unit in existing TPP Nikola Tesla B)•TPP that will use low caloric lignite with circulating fluidized bed boilers.

•TPP Novi Sad: construction of natural gas fired CHP plant is foreseen.

FOLLOWING REHABILITATION AND MODERNIZATION ACTIVITIES ARE FORESEEN BY
2012:• Rehabilitation and modernization of TPP Nikola Tesla A6 (continuation of startedactivities)• Rehabilitation and modernization of TPP Kostolac B (largely completed in 2010)• Non-standard repairs on TPP Nikola Tesla B2, TPP Kolubara A3, TPP Kolubara A5,TPP Nikola Tesla A3-A5 and TPP Kostolac A
The oldest TPPs will be removed from normal operation (Kolubara A1, A2 and A4) fromenvironmental and operation costs reasons, after 2012.
June, 2011.

P R I M A R Y E N E R G Y C O N S U M P T I O N BY F U E L
18
Oil
28%

1614Gas12%
Renewables
7%

Mtoe

Coal & lignite
53%

1210864
20Primary energy consumption by fuel1990 1994 1998 2002 2003 2004 2005 2006 2007 2008 2009
Coal & lignite

Oil

Gas

Renewables
Gas
Oil
Coal & lignite-30-20-102009-1990

0102009-2008

Average annual growth rates for different fuels
June, 2011.

Renewables

RENEWABLE PRIMARY ENERGY CONSUMPTION AND POTENTIALS of RES
Oil
28%

Coal &lignite
53%

Gas
12%

Firewood
24%

Renewables
7%geothermal
1%biodisel
2%
hydro
73%

Total primary energy consumption by energy source in 2009

Solar; 14%
Wind; 5%
Geothermal; 4%The potentials of RES
Biomass and w aste;
63%

June, 2011.

Hydro; 14%

F I N A L E N E R G Y C O N S U M P T O N BY S E C T O RShares in 2009108МtoeHouseholds, Agriculture, Service
6Households
Agriculture
ServicesTransport
4Industry
34%41%

Industry
2

Transport25%

2009

2008

2007

2006

2005

2004

2003

2002

1998

1994

1990

0Households, Agriculture, Public and commercial activities are presented as aggregated.
110
Industrial production

90

Energy consumption

80

m illio n to eindex 1990=100

100

70
60
50
40

20
15
10
50

Total energy consumption and renew able energy

Total energy consumption
Renew able energy - hydro1990 1994 1998 2002 2003 2004 2005 2006

301990

1994

1998

2002

2003

2004

2005

2006

2007

2008

2009

Final energy consumption in the industry sector

June, 2011.

T O T Total
A L P Rprimary
I M A R Y energy
E N E R G Yintensity
INTENSITY
The Western Balkan region is characterized by relatively high energy intensities: levels range up to 2.5
times higher than the average for OECD Europe (which is 0.15 toe per thousand USD of GDP).
According to the Energy in the Western Balkans study, there are three main factors:•the degraded state of the energy infrastructure;•high energy losses in transformation, transmission and distribution; and•inefficiency in the end-use sector.
150index 2002=1001401301201101009080200220032004Total energy consumption

2005

2006

Real GDP

2007

2008

Total energy intensity

Trends in total energy intensity, gross domestic productand total energy consumption

June, 2011.

C U R R E N T E N E R G Y C H A L L E N G E S IN S E R B I A•High energy consumption in buildings with large share of use of electricity forheating•

Low energy efficiency in industry with out-dated energy-intensive
manufacturing technologies•

Technically deteriorated, energy inefficient and polluting municipal energy
supply services•Low exploitation of the available potential of renewable energy sources•

Unsustainable financial operation of energy supply companies due to energy
prices not reflecting actual production costs•

Need for large investments in the energy sector to improve and modernize
energy infrastructure•

Need to develop and implement a comprehensive policy designed to improveenergy efficiency and the utilization of renewable energy sources

June, 2011.

C U R R E N T E N E R G Y C H A L L E N G E S IN S E R B I A

LIMITATIONS:•Economic limitation due to slow recovery of industrial branches•

Economic/energy limitation due to inadequate prices of power andthermal energy•

Energy/sector limitation due to uncoordinated development of the wholeenergy system•

Sector/environmental , in the sense of the need to establish thelegislative and institutional frameworks•

Technological/developmental limitations the consequences ofirreparable delay in science and technology

June, 2011.

THANK YOU FOR ATTENTION
Contact : report@tky.ieej.or.jp