INFORSE-Europe Sustainable Energy Seminar August 21-24, 2017 Nordic Folkecenter for Renewable Energy, Denmark

Transition Towards Sustainable Energy – by Nikola Perusic; August 21, 2017 CEKOR

See the Program and the Proceedings at: http://www.inforse.org/europe/seminar_17_DK.htm a)Dr Ilija Batas Bjeli ć, nau čni saradnik, Univerzitet u Beogradu, Elektrotehnicki fakultet, Bulevar kralja Aleksandra 73, 11120 Beograd, 011 3370 165, [email protected] b) Kalmar Zvezdan, cordinator for energy CEKOR 1. Intro

2. Overview of scenarios

3. Results • a. (BASE) • b. (OPTIMAL) • c. (CO2CAP) • d. (PRICEINC) • e. (MINRES) • f. (MINEE) 4. Literature ° Subotica is the most northern city of the Republic of Serbia ° Geographic position is determined with 46º 5' 5'' N and 19º 39' 47'' E. It borders with Hungary and with 4 local self-governments: , Ba čka , Senta and Kanjiža. ° Census 2011, the total population on the territory of the ° City of Subotica is 140,358 citizens living in 19 settlements organized in 37 local communities ° Pollution: City of Subotica has one of most polluted atmosphere in whole Serbia especially in the winter due to individual heating and traffic ° Our goal was to develope number of scenarios for development of sustainable energy future of Subotica with aim to reduce energy poverty in City, pollution comming from heating and also to diversify sources of energy with reduction of overall price and emissions from energz sector in City ° we have based our work on the available energy ballance of city of Subotica including public consumption, supply with the heat from district heating plant in Subotica ° We have used HOMER model for simulation of the future production and also prices and emissions in different scenarios. ° We have used most recent price s for the investment costs of our scenarios ° Subotica is exposed to serious demographically problems, emigration of population and high levels of poverty ° Most of houses are constructed before 1980ties thus rather inefficient ° Subotica lacks detailed census of it s energy consumption ° Subotica lacks detailed estimation of its Renevable Energy Sources potentials ° BAZNI – present day status of energy sistem. ° OPTIMAL Least cost OPTIMAL scenario. ° CO2CAP – Cap (maximal allowed) on annually GHG emissions. MINSEE CO2CAP ° PRICEINC – prices from nacional electricity grid BASE increased. sc. ° MINRES decision about the level of Renevable energy sources (RES) in energy mix ° MINEE Decision about the PRICEINC MINRES minimal energz savings (EE) of primary energy(gas, wood, bio mas, coal) Cash Flow Summary 30,000,000 Capital ° LCOE 0.045 c€/kWh (price of el) Replacement Operating ° 1,622,000 kWhel/dan (consumpt/day) 25,000,000 Fuel Salvage ° 592,029,696 kWhel/god (electricity consumpt/year) 20,000,000

° 77,014,800 kWhth/god (heat consumption per15,000,000 year) ° 30,501,630 M€/god (yearly spent for energy)10,000,000 AnnualizedCost ($/yr) ° 551,513,088 tCO2/god (CO2 equivalent emitted annually) 5,000,000

0 Grid Boiler

Monthly Average Electric Production 100,000 Grid Cash Flows 80,000 0 Grid Boiler 60,000

40,000 Power (kW) -5,000,000

20,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -10,000,000

-15,000,000

-20,000,000 Monthly Average Thermal Production 25,000

Boiler ($) Flow Cash Nominal

20,000 -25,000,000 15,000

10,000 Thermal (kW) -30,000,000 5,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -35,000,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 3 0 Year Num ber ° We see cost of ° We also see monthlz annually spent consumption of electricity from electricity and of the national grid andalso heat from city heating of heating from GAS boilers boiler in district ° Also we see how heating in Subotica much subotica spends on fuel and buying from national network Cash Flow Summary 25,000,000 Biomass CHP Grid Boiler ° LCOE 0.043 c€/kWh (price stays 20,000,000

same) 15,000,000

° 470,192,320 tCO2/god 10,000,000 Annualized Cost($/yr) ° 518,847,776 kWh/god 5,000,000

0 ° CHP (20MW): BMCHP Grid Boiler ° 73,181,928 kWhel/god (12%),

Cash Flows 40,000,000 ° 65,645,424 kWhth/god (83%) Biomass CHP Grid Monthly Average Electric Production Boiler 100,000 Biomass CHP Grid 80,000

20,000,000 60,000

40,000 Power (kW)

20,000

0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-20,000,000 Nominal Cash Flow ($)

Monthly Average Thermal Production 25,000 Biomass CHP Boiler 20,000

-40,000,000 15,000

10,000 Thermal (kW)

5,000

-60,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 260 27 28 29 3 Year Number ° We see that Base ° In same time important scenario is no this scenario increases economically optimal local economy and ° In his scenario we rduces significantly introduce bio mas pollution and also cogeneration increases income from ° We see over the period electricity that is selled of 30 years reduction to the national grid. of almost 16mEUR for ° Investment will pay energy back in 8 years Maksimalna Smanjenje •Covenant of majors envisions reduction of emisija emisije CO2 emissions for 40% [tCO2/god.] [%] •LCOE 0.059 €/kWh (+0.014 €/kWh electricity 551,513,088 0 price increased for BASE) Levelized Cost of Energy vs. Max. CO2 Emissions 496,361,779 10 0.10 441,210,470 20 0.09 386,059,162 30 0.08 330,907,853 40

275,756,544 50 0.07 220,605,235 60 0.06 165,453,926 70 Levelized Cost of Energy ($/kWh) Energy of Cost Levelized 110,302,618 80 0.05

55,151,309 90 0.04 100,000,000 200,000,000 300,000,000 400,000,000 500,000 ,000 - 100 Max. CO2 Emissions (kg/yr) ° We are introducing reduction of emissions according to obligations of Serbia ° Also this reduction is in line with covenant of majors for 40% ° We have accepted this number a optimal ballance between more expensive and more radical reduction scenarios and also between less ambitious scenarios that are mostly prevailing in Serbia Cash Flow Summary 30,000,000 PV Biomass CHP ° Price increased in national network accorixng to Grid 25,000,000 Boiler demands of IMF and WB[100-118%] 20,000,000 ° LCOE 0.087 c€/kWh (93%) 15,000,000 ° We envision RES SOLAR investment in Photo 10,000,000 voltaic 260M€ (200MW), share of RES 51% Annualized Cost($/yr) 5,000,000 ° City would sell annually 72,585,168 kWh/god 0 PV BMCHP Grid Boiler ° City will take from national grid 352,225,760 kWh/god Cash Flows 50,000,000 PV Biomass CHP Grid Boiler

0

-50,000,000 Monthly Average Electric Production 100,000 PV Biomass CHP 80,000 Grid

60,000 -100,000,000

40,000 Power (kW)

20,000 -150,000,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nominal Cash Flow ($)

Monthly Average Thermal Production 25,000 -200,000,000 Biomass CHP Boiler 20,000

15,000 -250,000,000 10,000 Thermal(kW)

5,000

0 -300,000,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 250 26 27 28 29 3 Year Number ° Prices will increase in national networks due to pressure from IFIs ° In same time we have envisioned significant increase in own production of city ° After 15 years we envision major reconstruction of PV Cash Flow Summary 14,000,000 •LCOE 0.043-0.108 €/kWh PV WindTurbine Biomass CHP 12,000,000 Grid Boiler •51% udeo RES, LCOE 0.065 10,000,000 €/kWh 8,000,000 6,000,000

•Prodato 33,929,068 kWh/god AnnualizedCost ($/yr) 4,000,000

2,000,000

•Preuzeto 324,903,104 kWh/god 0 PV WT BMCHP Grid Boiler

Levelized Cost of Energy vs. Min. Ren. Fraction 0.11

Monthly Average Electric Production 100,000 PV 0.10 Wind 80,000 Biomass CHP Grid

60,000 0.09

40,000 Power (kW)

20,000 0.08

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.07 Monthly Average Thermal Production 25,000 Biomass CHP Boiler 20,000 0.06

15,000 LevelizedCost of($/kWh) Energy 10,000 Thermal (kW) 0.05

5,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.04 0 10 20 30 40 50 60 70 Min. Ren. Fraction (%) ° We establish minimal level of renewable sources ° We envision between 0- 70% of electricity produced from RES ° This scenario provides most demaning mix, but also envisions much better situation with regards to diversification, reduction of CO2 emsiison, local jobs ° It introduces also wind, Solar and bio mas as most important part of the energz mix 120,000 AC Primary Load PV Pow er 90,000 WindTurbine Biomass CHP Pow er Grid Purchases 60,000 Grid Sales Power (kW) Power 30,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

35,000 Thermal Load 30,000 Biomass CHP Thermal Boiler Output 25,000

20,000

15,000 Power (kW) Power 10,000

5,000

0 ° Referent : what value ° Etael=40%, (electricity in boiler) Share of RES 0.227 ° Etath=75% (heath in boiler) ° Technically measures on demand Saving of primary 39.2 % side: energy Primary energy for ° Reducing consumption for 164,356 MWh/god electricity for 10% 30 godina, bio mas CHP ° investment 3M€. Electricity produced 73,182 MWh/god ° Saving: 37,785,504 € in CHP ° Technical measures on production Production of heat 65,645 MWh/god side (change of fuel): Co CHP generation (CHP) on bio mass Energy Efficiency of 44.5 % ° 39.2% saving in primary energy. CHP Thermal efficidncy ° Financial saving: 16,566,775 €. 39.9 % of CHP ° Beside introduction of rES in sustainable energy sistems we introduce also Energy Efficiency measures that are saving significant primary energy ° We introduce at least 0-9% of saving PV Output kW 24 100,000

90,000

80,000

18 70,000

60,000

50,000

12 40,000

30,000 Hour of Day of Hour

20,000

6 10,000

0

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ° *** (2016). PROGRAM ENERGETSKE EFIKASNOSTI GRADA SUBOTICE. ° Batas Bjelic, I. and R. M. Ciric (2014). "Optimal distributed generation planning at a local level – A review of Serbian renewable energy development." Renewable and Sustainable Energy Reviews 39 : 79-86. ° IRENA (2017). Cost-competitive renewable power generation: Potential across South East Europe. ° Lambert, T., P. Gilman, et al. (2006). Micropower System Modeling with Homer. Integration of Alternative Sources of Energy, John Wiley & Sons, Inc. : 379-418. ° Smajlovi ć, E. (2009). HOMER SOFTVER - OPTIMIZACIJA MIKROENERGETSKIH SISTEMA SA OBNOVIVIM IZVORIMA ENERGIJE. Tuzla WindTurbine Output kW 24 80,000

72,000

64,000

18 56,000

48,000

40,000

12 32,000

24,000 Hour of Day of Hour

16,000

6 8,000

0

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Biomass CHP Output kW 24 20,000

18,000

16,000

18 14,000

12,000

10,000

12 8,000

6,000 Hour of Day of Hour

4,000

6 2,000

0

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Boiler Output kW 24 16,000

14,400

12,800

18 11,200

9,600

8,000

12 6,400

4,800 Hour of Day of Hour

3,200

6 1,600

0

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec