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Long Term Outlook of Energy Sector in Serbia

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Long Term Outlook of Energy Sector in Serbia EUROPA, HRVATSKA I REGIJA 2030. GODINE / EUROPE, REGION AND CROATIA IN 2030 CURRICULUM VITAE Nenad J. Đajić (1941), emeritus Professor of the Faculty of Mining and Geology in Belgrade. He graduated from the Department of Thermal Engineering, Faculty of Mechanical Engineering in 1965; obtained his M.Sc. degree from the Faculty of Technology and Metallurgy in 1974 and Ph.D. degree from the Faculty of Mining and Geology in 1976, all belonging to the University of Belgrade. He is full member and Secretary General of Academy of the Engineering Sciences of Serbia, Chairman of the National Committee of Serbia the World Energy Council and Editor-in-Chief of the journal “Energy”. He is author or co-author of three university textbooks: “Heat Engines”, “The Machines and Equipment for Drilling and Oil Production” and “Energy Sources and Plants” Nenad J. Đajić and four monographs: “Energy for Sustainable World”, “The Distribution of Natural Gas“, “The Measurement and Regulation of Natural Gas” and WEC “The Production and Utilization of Geothermal Serbia Energy”. He has published more than 450 papers (66 of them in the international journals and proceedings of international meetings), either as author or co author, reviewed 17 university books and monographs and more than 130 studies and projects related to energy management and thermal engineering. In his professional work has directed and/or participated in production of more than 190 studies and projects in the area of energetics and thermotechnics. Dr. Miodrag Mesarović, secretary general of the Serbian WEC Member Committee, is special advisor to Energoprojekt Consulting Engineers Co. in Belgrade, Serbia. He graduated from the Electrical Engineering faculty, and took his doctors degree in engineering sciences from the Mechanical Engineering faculty of the University of Belgrade. His fi elds of activity are energy and environment with projects at home and in foreign countries. He published over two hundred professional and scientifi c papers, and was invited lecturer at several universities of the Miodrag Mesarović former Yugoslavia. Dr Mesarović was elected member of the Serbian Academy of Engineering Sciences and director of the Residential energy effi ciency program in the Serbian Ministry of Science and Technology. 77 17. FORUM - Dan energije u Hrvatskoj / Energy Day in Croatia Nenad Đajić, Chair Miodrag Mesarović, Secretary Serbian WEC Member Committee LONG TERM OUTLOOK OF ENERGY SECTOR IN SERBIA Abstract Major Serbian energy policy goals set up by the new Energy Law (2004) emerge from the purpose to establish qualitatively new working and development conditions inside the energy production and consumption sectors under the new circumstances in the country and in the region of South Eastern Europe. This is expected to give a new impetus to the economic development of the Republic of Serbia by increasing energy effi ciency, intensifying the use of renewable energy sources and reducing harmful emissions from energy production and consumption sectors, as well as to ease integration into regional and European energy markets. The above has also been defi ned by the “Strategy of Serbian Energy Sector Development by the Year 2015“ (adopted by the Serbian Parliament in 2005) and in more details by the “Programme of the Implementation of the Strategy by the Year 2012“ (adopted by the Serbian Government in 2007). Based on these strategic and other documents, which were drawn up with participation of the Serbian WEC MC as well, this paper presents a vision of the Serbian energy sector development during the period up to the year 2030. DUGOROČNA VIZIJA SITUACIJE ENERGETSKOG SEKTORA U SRBIJI Sažetak Osnovni ciljevi energetske politike prikazani u Zakonu o energetici Republike Srbije (2004.), proizašli su iz namjere da se, u novim okolnostima u zemlji i okruženju, uspostave novi uvjeti rada, poslovanja i razvoja proizvodnih sektora i sektora potrošnje. To će dati novi poticaj ekonomskom razvoju Republike Srbije, povećanju energetske učinkovitosti, intenzivnijem korištenju obnovljivih izvora energije i smanjenju intenziteta štetnih emisija iz proizvodnih energetskih izvora i sektora potrošnje, kao i integraciji u regionalno i europsko energetsko tržište. To je i defi nirano usvojenom „Strategijom dugoročnog razvoja energetike Srbije do 2015. godine“ (2005.) i „Programom ostvarenja Strategije do 2012. godine“ (2007.) gdje su navedeni osnovni strateški ciljevi, koji će biti na snazi do 2030. godine. Na temelju tih strateških i drugih dokumenata, u čijoj su izradi sudjelovali i članovi Srpskog komiteta WEC-a, u radu je dana vizija dugoročnog razvoja energetike Srbije za razdoblje do 2030. godine. 78 EUROPA, HRVATSKA I REGIJA 2030. GODINE / EUROPE, REGION AND CROATIA IN 2030 1. INTRODUCTION Energy sector is one of the largest sectors of Serbia’s economy comprising: power system; coal production; district heating system; oil, oil products and gas, production and import. It accounts for more than 10% of GDP. The current energy sector policy follows a framework for the long-term development of the overall energy sector based on the new Serbian Energy Law and Energy Sector Development Strategy in Serbia by the year 2015. This sector is undergoing a transition from the vertically integrated monopoly to the market based operation, as already seen in the Central and Eastern European Countries with the generic energy-economic problems. However, there are many differences originating from Serbia’s specifi c issues, both political and economic ones. The Serbian energy system is still characterised by a reduced operational availability and low effi ciency of the existing infrastructure including generation, transmission/transportation and distribution of energy carriers. On the other side, a relatively high dependency on energy imports continues to increase. In order to overcome the institutional, technical, structural and economic diffi culties in the Serbian energy system and to implement an effi cient and sustainable reform, the objectives to be addressed by the relevant ministries and other state bodies, include a rehabilitation, modernisation and up-grading of the existing energy infrastructure (power, district heat, oil and gas) in order to adjust supply to a well-managed energy demand. Energy sector reforms are continuing through restructuring and unbundling the state-owned, vertically integrated companies in order to establish fi nancially sustainable energy service companies. Measures to substitute environmentally inadequate energy carriers need to be fi nancially supported and reinforced by municipalities (by attracting new consumers to district heating and natural gas for space heating purposes in the residential and public/commercial service sectors). Also, energy sector is being adapted in order to favour the future integration of Serbia into the European Union through the liberalization of the energy markets (electricity, natural gas, oil products and district heat) and opening them to the national, regional and international competition, in parallel to corporatization and commercialisation of the state owned energy supply enterprises by opening them to private sector participation. Fossil energy resources in Serbia include lignite, oil and natural gas resources The volume and structure of energy reserves and resources of Serbia are unfavourable, because the reserves of quality energy products, such as oil and natural gas, are small and constitute less than 1% in the total balance reserves of Serbia, while the remaining 99% of energy reserves consist of various types of coal, predominantly (over 92%) of low-quality lignite. This particularly relates to the lignite extracted in open pit mines, which with the total extraction reserves of about 13,350 million tons represents the most important domestic energy resource of the Republic of Serbia. However, the largest part of the lignite reserves in the Republic of Serbia (over 76%) are located in the Province of Kosovo and Metohija, which is under the UNMIK administration in accordance with the UNSC Resolution 1244 from 1999 and presently without the possibility to be exploited by the power system of Serbia. The most important renewable energy resource of Serbia is its hydropower potential (around 17000 GWh), about 10000 GWh of which has been used until today, fi gure 1. The greatest part of the remaining potential is in the Drina and the Morava Rivers watersheds. The total remaining technically usable hydro power potential in Serbia including the Drina amounts to around 6,500 GWh per annum. Taking into account the estimate that around 79 17. FORUM - Dan energije u Hrvatskoj / Energy Day in Croatia 1,700 GWh per annum can be used in small hydro power plants below 10 MW, we get an amount of 8,200 GWh per annum as total technically usable potential. In determination of the possibilities for utilization of the largest part of remaining technical hydropower potential, one should take into account the decisive effect of non-energy criteria related to multipurpose utilization of waters and the political agreements on sharing of the hydropower potential with the neighbouring countries. The potentials of other new and renewable energy sources are considerable, but their use is still not cost-effective in many fi elds of application. Hydropower potential structure 12000 10000 8000 Used potential 6000 GWh Technically usable 4000 potential of large rivers Tehnically usable 2000 potential of small hydropower plants 0 Figure 1: Hydropower potential in Serbia Serbia currently
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