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Review of the Current Energy Policy in the Republic of Serbia with the Development Perspectives

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Review of the Current Energy Policy in the Republic of Serbia with the Development Perspectives 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. I N T R O D U C T I O N • By its position on the Balkan Peninsula, Southeastern Europe, Serbia is known 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 Strategy June, 2011. C U R R E N T E N E R G Y P O L I C Y O F S E R B I A SERBIAN 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 the participation in strategic (regional/ Pan‐European) energy infrastructure projects. June, 2011. E N E R G Y P O L I C Y I N S T R U M E N T S 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 more energy efficient technologies as well in connection with energy production as end-use sectors. Development of improved strategies in connection with change of behavior might also be within the scope of research 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 of potentials for energy savings. June, 2011. E N E R G Y S U P P L Y ENERGY 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 T Production of primary energy 10 8 Renewables 6 Gas toe M 4 Oil Coal & lignite 2 0 2002 2003 2004 2005 2006 2007 2008 2009 Energy import 8 6 electricity Gas toe 4 M Oil 2 Coal & lignite 0 2002 2003 2004 2005 2006 2007 2008 2009 June, 2011. E N E R G Y P R O D U C T I O N C A P A C I T I E S Net Output Capacity Power Plant (MW), 2008 TPP Nikola Tesla A 1.502 TPP Nikola Tesla B 1.160 TPP Kolubara 245 TPP Morava 108 TPP Kostolac A 281 TPP Kostolac B 640 TPP Kosovo A 617 TPP Kosovo B 618 Thermal Power Plants 5.171 TPP-HP Novi Sad 208 TPP-HP Zrenjanin 100 TPP-HP Sremska Mitrovica 45 Thermal Power Plants – Heating 353 Plants HPP Djerdap I 1058 HPP Djerdap II 270 HPP Vlasina 129 HPP Pirot 80 HPP Bajina Basta 364 PUMPED-STORAGE PP Bajina 614 Basta HPP Zvornik 92 HPP Elektromorava 13 HPP Limske 211 Hydro-Power Plants 2.831 Power Plants Owned by EPS 8.355 Other Power Plants 377 Geographical distribution of existing power plants in Serbia Total 8.736 June, 2011. NEW PRODUCTION FACILITIES AND REHABILITATION OF EXISTING FACILITIES CONSTRUCTION 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 started activities) • 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) from environmental and operation costs reasons, after 2012. June, 2011. PRIMARY ENERGY CONSUMPTION BY FUEL 18 Oil 16 28% 14 Gas 12% 12 10 Coal & lignite Renewables Mtoe 8 53% 7% 6 4 2 0 1990 1994 1998 2002 2003 2004 2005 2006 2007 2008 2009 Primary energy consumption by fuel Coal & lignite Oil Gas Renewables Renewables Gas Oil Coal & lignite -30 -20 -10 0 10 2009-1990 2009-2008 Average annual growth rates for different fuels June, 2011. RENEWABLE PRIMARY ENERGY CONSUMPTION AND POTENTIALS of RES Oil Gas Firewood 28% 12% 24% geothermal 1% Coal & Renewables lignite 7% biodisel 53% 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; Hydro; 14% 63% June, 2011. 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 R 10 Shares in 2009 8 Households, Agriculture, Service 6 Households Industry toe Transport Agriculture М Services 34% 4 Industry 41% 2 Transport 0 25% 1990 1994 1998 2002 2003 2004 2005 2006 2007 2008 2009 Households, Agriculture, Public and commercial activities are presented as aggregated. 110 100 90 Industrial production Energy consumption Total energy consumption and renew able energy 20 80 15 70 10 60 Total energy consumption 5 Renew able energy - hydro index 1990=100 index 50 m illio n to e 40 0 30 1990 1994 1998 2002 2003 2004 2005 2006 1990 1994 1998 2002 2003 2004 2005 2006 2007 2008 2009 Final energy consumption in the industry sector June, 2011. TOTALTotalPRIMARY primary energyENERGY intensityINTENSITY 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. 150 140 130 120 110 100 index 2002=100 index 90 80 2002 2003 2004 2005 2006 2007 2008 Total energy consumption Real GDP Total energy intensity Trends in total energy intensity, gross domestic product and 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 BI A • High energy consumption in buildings with large share of use of electricity for heating • 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 improve energy 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 BI A LIMITATIONS: • Economic limitation due to slow recovery of industrial branches • Economic/energy limitation due to inadequate prices of power and thermal energy • Energy/sector limitation due to uncoordinated development of the whole energy system • Sector/environmental , in the sense of the need to establish the legislative and institutional frameworks • Technological/developmental limitations the consequences of irreparable delay in science and technology June, 2011. THANK YOU FOR ATTENTION Contact : [email protected].
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