ENERGY AGENCY OF THE REPUBLIC OF SERBIA Contents Recent Energy Sector Development z Introduction and z Recent energy sector development AERS Responsibilities z Development and investment plan Ljiljana Hadžibabić z AERS* responsibilities Head of the Energy Department z Final remarks/ Conclusion NARUC’ Energy Regulatory Partnership Program AERS – PA PUC 3rd Partnership Activity 1 2 Belgrade, September 15 – 19, 2008 * - Energy Agency of the Republic of Serbia Introduction Introduction 7th century - first Serbian states Serbia 11th century - first kingdom z Serbia 1345 - Serbian empire 1389 - the first battle with Ottoman z Historical and geographical basic data empire, at Kosovo field 1540 -1867 – without independence 1918-1990 (’06) - Yugoslavia z Beginning of electrification and gasification since 2006 - Republic of Serbia z More than 100 years of electricity usage Land Area - 88,361 sq km (34,116 sq miles) z About 60 years of natural gas usage Population 7.5 Million (without K&M*) The main religion - Christian orthodox Estimated GDP 2008 – US$10, 985 pc (IMF) Capital – Belgrade, - Latitude 44° N 3 - Longitude 21° E 4 - population 1.6 Million * -K&M – Kosovo & Metohija First Power Plant based on AC Tesla’s principles – 1900 ! First gas well - 1949 z 1949 - the first gas well was activated z Source of domestic gas – northern Serbia HPP Vuce, 1903 (HPP Niagara 1895) 1893 - first public power station, Belgrade 1900 – first HPP based on AC Tesla’s principles, 1903 – first, 17km long-distance power line 1900-1911 –the oldest four HPPs, still in operation5 6 1 Recent Energy Sector Development Historical milestones z Recent trends z Electricity z Natural gas 10 000 z 1949 – 1979 development based on domestic z Production capacities and demands MW 8 000 sources z Problems in the period 1990-2000 z 1951 - construction of the gas transmission 6 000 system z Reconstruction and key achievement z 1979 - Gas demand based on domestic 4 000 sources reached 1 bcm z 1979 - conection with Hungarian net and the 2 000 HP network development started z Current situation 0 z 2005 - commencement of works on 1970 1980 1990 2004 2005 2006 the Underground Gas Storage Banatski Dvor z Primary energy demand TPP CHP HPP z Dependence on import z Balances z 1947 – commencement of HV networks, HHPs, open-pit mines and TPPs constructing z 1975 – 1985 intensive investment activities z 1990 – 25% surplus of electricity 7 8 z After 1990 – lack of investment, no new generation facilities Demand trends (1) Demand trends (2) Electricity Consumption Natural gas consumption 34 Milion Cu m TWh 3500 32 3000 30 2500 28 2000 26 1500 24 1000 22 500 20 0 9 10 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '01 '02 '03 '04 '05 '06 '07 '90. '92. '94. '96. '98. '00 '02 '04 '06 2000 Demand trends (3) Problems in the period 1990-2000 Final energy consumption in industrial branches 4500 z International economic sanctions 4000 z Lack of liquid fuels and natural gas z Lack of money for sustainable development 3500 z Lack of financial means and spare parts for maintenance 3000 z Low electricity price 2500 z Deteriorated equipment 2000 1000 toe1000 z TPPs and open-pit mines 1500 z Electricity consumption for household heating 1000 z Damage from NATO AIR STRIKES in 1999 500 z Transmission network and TPPs; 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Iron and Steel Non-ferrous materials Construction materials Chemicals Non-metallic industry Textiles industry Wood industry Food industry Engineering 11 12 Paper industry Energy sector Other industries 2 Problems in the period 1990-2000 (2) Balance of electricity 1990 - 2007 45 mil.USD Annual Maintenance in Electric Power Industry TWh 350 40 35 300 30 250 25 200 20 150 15 10 100 5 50 0 0 '90. '92. '94. '96. '98. '00 '02 '04 '06 TPP TPP-HP HPP Gross Consumption '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '0713 14 International Community Assistance Reconstruction of capacities Since 2000 450 mil € donations - mostly from EU through EAR z Transmission network - after bombing Main areas of assistance: z Electricity imports z TPPs after period of lack of maintenances And bombing z Fuel for heating z Open-pit mines z Spare parts and equipment for PP’s and open-pit mines z Overhauls of TPP’s z District heating systems of Belgrade, Novi Sad and Niš z Reforms, capacity building and technical assistance 15 16 Results achieved 2000 2007/ ’08 Curent situation Insufficient production •Increased production of coal Low efficiency of PP’s and electricity z Primary energy demand Damaged transmission network •Repaired and renewed transmission network z Dependence on import During winter season 2000/01 z Electricity 55 days of power cuts Since winter season 2002/2003 z Structure of Power Generation despite International Community no power cuts Assistance z Transmission infrastructure z Balances New Tariff System & Average final all consumers From August 2008 z Natural gas 0.8 ¢$/KWh 5.5 ¢€ /KWh z Transmission infrastructure z Demand – gas and electricity TPP’s EFOR 34% TPP’s EFOR 12,6% 17 18 3 Primary energy demand – 2007 (1) Primary energy demand – 2007 (2) Total demand 14,824 M teo Mtoe 9,000 2007 6% 8,000 Imported: 41% Import 13% 7,000 z Oil: 87% dependence increases Coal 6,000 z Gas: 92% Oil Gas 5,000 Hydro z Coal: 11% 4,000 54% Domestic z Electricity: 1.9% of 4 months’ consumption in winter season; 3,000 27% Import exporter on yearly level 2,000 1,000 Import Domestic Domestic 0,000 Coal Oil Gas Hydro 19 20 Structure of Power Generation Transmission Infrastructure (without K&M) www.ems.rs 7155 MW (+ 1200 MW at K&M) MVA TRANSMISSION NETWORK, Dec 31, 2006 km 8 000 7 000 7 450 TPP 5 833 7 000 55,5% 6 000 Pumped- 6 000 5 882 storage PP 5 000 8,6% 5 000 4 000 4 050 4 000 3 000 3 000 2 170 1 650 2 000 2 000 HPPs vith 1 000 1 000 reservoir 5,2% 0 0 400 / x 220 / x 110 / x 400 kV 220 kV 110 kV Transformers Lines Lignite 2007: Input: 47,884 GWh Withdrawal from Run-of-river HPPs www.eps.rs Output : 46,597 GWh the neighboring systems: 8,905 GWh 25,8% TPP-HP 21 Injection into 22 4,9% Losses rate: 2,69% the neighboring systems: 8,658 GWh Electricity Balance 2007 (1) Electricity Balance 2007 (1) (without K&M) (without K&M) GWh 2007: 3 500 z Generation 34.4 TWh z Gross consumption 32.9 TWh 2 700 z Import 1.8 TWh 1 900 z Export 1.8 TWh 1 100 z Lignite production 36,5 mill t 300 z Number of consumers 3.3 mil Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -500 TPP TPP-HP HPP Import Consump. Cons. + Export Exp-Imp 23 24 4 Transit of electricity in 2007 Natural gas – basic infrastructure z One input point – from Hungary z Operating pressure in input point 43 bar z Natural gas storage - Installed capacity: z I phase 400 mcm z II phase 800 mcm z Transmission lines, total length 2200 km z Compressor station near Belgrade 4400 kW z Distribution pipeline - total lenght 10500km z Number of the main regulatory measurement stations - 152 25 26 Monthly Natural Gas Demand in 2007(1)7 Structure of Natural Gas Demand 2007 (2) mcm 350 4% 1% 7% 300 250 12% 39% 200 Industrial 150 District heating Raw material 100 Residential 17% 50 Commercial Power generation 0 Storage injection Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 27 28 20% Development and investment plan Development and investment plan - Legal framework - z Government - for Serbia z Legal framework z Energy Law, adopted 2004 z Regional approach and key studies z Energy Strategy until 2015, adopted 2005 z Program of Strategy implementation, adopted z Most important issues 2005 z Industry - for itself z 5 years Development plan - public utilities obligation z Yearly program of investments – obligation for all companies 29 30 5 Development and Investments Development and Investments - Key studies - - Resource (1) - z Regional and national approaches z Studies: z z REBIS:GIS – Regional Balkans Infrastructure Study and Domestic resources Generation Investment Study 2005 - 2020 z Lignite z List Cost Investment Plan for Serbia z South East Europe: Regional Gasification Study with z Hydro potential regard to analysis of storage facilities z South East Europe: Regional Gasification Study z Renewable sources z Recommendations for electricity sector: z SEE region will require z Imported resource z 12,700 MW of new capacity z 9,400 MW of rehabilitated capacity - to extend life time z Natural Gas z Serbia will require min z 640 MW of new capacities z 2,800 MW of rehabilitated capacities - to extend life time (mostly accomplished) 31 32 Development and Investments Development and Investments - Resource (2) - - Resource (3) - Lignite Hydro potential Serbia will have a supply of coal for the next Kovin 50 years (excluding K&M). basin Danube Kostolac basin Morava Kolubara Drina basin Lim Smal HPP, P < 10 MW Kosovo Reserve: 13.4 Bill.tons basin Total 17300 GWh/year Activated Drim Nonactivated 7100 GWh/year Metohija 7100 basin Development and Investments Development and Investments - Resource (4) - - Electricity until 2015 - (1) Renewable sources - Potential Assessment z Electricity demand forecast: 0.9% annually, by Electric Power Industry of Serbia, Development plan 2008 – 2015 z Small Hydro PP z Investment plan, rehabilitation and modernization of z 850 Sites, 450 MW, 1 500 GWh/year existing and construction of new capacities – 9.5 billions € z CADASTRE of Small PP’s (’87) z HPP – 1 056 millions € z Biomass z TPP and environmental protection – 3 840 millions € z Open-pit mines – 2 095 millions € z Wind power plants - farms z Transmission system – 400 millions € z Waste incineration… z Distribution system –