December,December 2011 , 2012 Washington,Washington, DC DC 1 Table of Contents This report was made possible with funding from the Government of Austria and is part of a larger effort to assess Executive Summary/1 sustainable development challenges and opportunities in Southeastern Europe. The activity is jointly undertaken by the Background/4 Europe and Central Asia Sustainable Cities Initiative (ECA SCI) National Energy Efficiency Strategy/5 and the World Bank Institute Urban unit (WBI UR). Urban Growth and Energy Challenges in Belgrade/6 The TRACE diagnostic is part of the toolkit of the ECA SCI, which Sustainable Belgrade/10 aims to promote sustainable development in ECA cities. Work on Public Transport/10 the report was done under the guidance of Stephen Karam (ECA Private Vehicles/14 Urban Sector Leader) and Sabine Palmreuther (Senior Water and Wastewater/17 Operations Officer), with a team comprised of Marcel Ionescu- Solid Waste/18 Heroiu (Extended Term Consultant), Ranjan Bose (Senior Energy Municipal Buildings/21 Specialist), Jelena Nesic (Short Term Consultant), Milan Popovic Public Lighting/23 (Operations Officer), and Desanka Stanic (Program Assistant). District Heating/24 Throughout the process of collecting data and writing the Power/27 report, the team has enjoyed an excellent collaboration with local authorities in Belgrade. Energy Efficiency Recommendations/27 EE Strategy and Action Plan/28 Cover design: George Maier ([email protected]) District Heating/30 Urban Transport/32 Municipal Buildings/36 Water and Wastewater/38 Solid Waste/39 http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/0,, Street Lighting/40 contentMDK:23050220~pagePK:146736~piPK:146830~theSitePK:2585 99,00.html Annexes/42 2 Executive Summary in Belgrade’s street lighting systems, although the City is charged not on Around the time of the fall of the Berlin wall, Serbia was one of the most actual consumption, but on installed capacity. Ambitious plans to developed countries in Central and Eastern Europe. A decade of revamp the solid waste management system in the city, may make transition and conflict however, has taken a heavy toll on the country Belgrade a best-practice study case for other cities in the region – and and its cities. For example, public transport ridership in Belgrade has beyond. On-going audits of the district heating system and of the built fallen from around 800 million passengers in 1990 to just above 400 stock in Belgrade will open the door for ambitious energy efficiency million in 2000; city streets have become increasingly congested with projects in the future. private vehicles; water and wastewater infrastructure has deteriorated; Belgrade is already considered to be one of the most livable cities in recycling networks have disappeared and waste generation has Europe. It can and should build on that existing foundation to become increased with a growth in consumption; buildings, largely built after even greater. The following report, drawing on the results of the 1945 have received little work, continuing to deteriorate throughout implementation of the TRACE tool, hopes to offer some answers to how much of the transition years. that can be done. At the same time, while some of Serbia’s neighbors have pushed TRACE (Tool for Rapid Assessment of City Energy) is a simple and ahead on a reform path immediately after 1989. Serbia has yet to resolve quick diagnostic tool that is used to assess a city’s energy performance in a number of issues. For example, land still is predominantly in public six service areas (urban transport, municipal buildings, water and ownership, and urban land markets are tightly controlled by local wastewater, solid waste management, public lighting, and power and authorities. This has helped Serbian cities maintain a compact urban heat), and to provide recommendations for improving energy efficiency. form, but they have also undermined the cities’ growth potential. In each of the six service areas TRACE uses a benchmarking algorithm to Electricity tariffs are controlled by the central government and are assess energy cost savings potential, and factoring in the level of kept at artificially low levels. With the peak load demand during winter influence of local authorities, it prioritizes interventions according to months due to electricity use for heating, Serbia finds it difficult to where local authorities can achieve the biggest savings. manage their existing power system. As a result, electricity demand The TRACE analysis was carried out under the umbrella of the during peak load is often met by higher imports. This often puts Europe and Central Asia Sustainable Cities Initiative (ECA SCI), and is just electricity distributors in the tough position of importing electricity at one of the components used to assess the potential of promoting market prices from neighboring countries, and selling it to end-users in sustainable development in ECA. (More on the ECA SCI can be found at: Serbia at lower prices. Similarly, the low imposed tariffs hamper the http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/0,,co development of alternative sources of energy (e.g. solar and wind), or ntentMDK:23050220~pagePK:146736~piPK:146830~theSitePK:258599,0 even the development of more efficient ways of generating energy from 0.html) As such, the analysis and recommendations made in this report fossil fuels – e.g. combined heat and power plants. do not only focus on energy efficiency per se, but on sustainability in Nonetheless, much has been done in the new millennium to redress general. For our purposes, sustainable cities can be understood as the situation and improve city performance and quality of life. Public resilient cities that can more readily adapt to, mitigate, and promote transport ridership has gone back up to pre-1990 levels, with the city economic, social, and environmental change. The focus is on triple- investing aggressively in existing infrastructure, and with the bottom line outcomes, with an eye to how urban development can introduction of private-bus operators on certain lines. A number of address economic/fiscal, social, and environmental issues. ambitious infrastructure projects (e.g. the new Ada Bridge) have gone a To complete data collection and to get a more rounded long way towards addressing congestion issues in the city. Investments understanding of issues in the city, a World Bank work trip was organized in the replacement of inefficient light bulbs have reduced consumption in January 2012. Work in Belgrade was carried out in close collaboration with local authorities, who were consulted on all the critical steps in the 1 process. At the end of this quantitative and qualitative analysis, several Traffic Flow Optimization recommendations were drawn out. These are summarized below. Belgrade has an old city grid, with relatively small width streets, it is divided by two large rivers (Sava and the Danube), and the country’s Energy Efficiency Strategy and Action Plan largest highway (E-70) cuts right through its middle. This cocktail of One of the first recommendations suggested by local authorities in circumstances, combined with the fact that private vehicle ownership Belgrade was the development of a proper energy efficiency strategy has grown dramatically (from around 300,000 in 1990, to 470,000 in and action plan. These are critical before embarking on an ambitious 2010), often leads to traffic bottlenecks and city congestion. Several project to improve energy efficiency in the city. The strategy and the large projects have been undertaken to improve traffic flow (e.g. a new action plan can lay out vision and objectives for such work, and provide a bridge over the Sava – the Ada Bridge, and a city beltway to diver heavy list of activities that would help the city achieve those objectives. highway traffic). However, more can be done in improving access over the rivers of pedestrians and bicyclists, and by doing an integrated traffic District Heating Maintenance and Upgrade management study. Having one of the most extensive district heating systems in Europe, Belgrade also has a challenge of maintaining and upgrading this system. Public Transport Development Since most of the heat is generated in a few large district heating plants, Belgrade already has a well developed public transportation system, and heat distribution is reliant on a long system of pipes. Over time this a testimony to this reality is the fact that over 52% of people in Belgrade network of over 1,300 km has deteriorated, leading to heat losses in the use public transit for their daily commutes. Local authorities plan to system that are among the highest of any city with relevant data in the continually invest in the efficiency of the existent system, by acquiring TRACE database. Revamping this network is one of the key priorities of more natural gas powered buses, by buying new trams, and by local authorities, and a key step was taken in this direction by preparing continually expanding the system. One ambitious project that is an aerial thermal mapping of the entire system. This allows the considered it the development of a metro system in the city. The metro identification of the areas in the city with the highest heat losses. would help decongest streets and improve public transport by offering people a reliable and high capacity means of getting around. District Cogeneration Thermal Network The district heating system in Belgrade is the largest single consumer of Municipal Buildings Audit and Retrofit energy, and it is responsible for 25% of total natural gas consumption in Belgrade owns and manages an impressive stock of buildings. A large Serbia. However, all of the used fossil fuel goes to heat generation, majority of these buildings were developed after 1945 and have a poor leaving a huge untapped potential of generating both power and heat. thermal performance. With other stringent needs filling the agendas of Combined heat and power (CHP) plants, are a key way of generating local policy makers, many of these buildings have not seen any rehab or energy in an efficient way, and national authorities are poised to upgrade work in the transition years.