"Official Gazette of the Republic of Serbia", No. 98/2013 Pursuant to Article 8, paragraph 3 Law on Efficient Use of Energy ("Official Gazette of the Republic of Serbia", No. 25/13) and Article 43, paragraph 3 of the Law on Government ("Official Gazette of RS", No. 55/05, 71/05 corrigendum, 101/07, 65/08, 16/11, 68/12 - US and 72/12), at the proposal of the Ministry of Energy, Development and Environmental Protection The Government shall adopt the CONCLUSION 1) The Second Energy Efficiency Action Plan of the Republic of Serbia for the period from 2013 to 2015 shall be adopted, enclosed in hard copy to this Conclusion as its integral part. 2) The Ministry of Energy, Development and Environmental Protection shall submit the Second Energy Efficiency Action Plan of the Republic of Serbia for the period 2013 - 2015, referred to in Section 1 of this Conclusion (translated into English), to the Energy Community Secretariat of South East Europe. 3) This Conclusion shall be published in the "Official Gazette of the Republic of Serbia”. 05 No. 312-8611/2013 In Belgrade, 21 October 2013 Government Prime Minister, Ivica Dačić, in person THE SECOND ENERGY EFFICIENCY ACTION PLAN OF THE REPUBLIC OF SERBIA FOR THE PERIOD FROM 2013 TO 2015 LIST OF ABBREVIATIONS ECMT European Conference of Ministers of Transport EAR European Agency for Reconstruction EBRD European Bank for Reconstruction and Development EC European Commission Evaluation and Monitoring for the EU Directive on Energy End-Use Efficiency EMEEES and Energy Services EPBD Directive 2010/31/EU on the energy performance of buildings ESCO Energy Service Company EURO 1-6 European regulations on exhaust emissions of motor vehicles EWBJF European Western Balkans Joint Fund German Society for International Cooperation (Deutsche Gesellschaft für GTZ/GIZ Technische Zusammenarbeit /Deutsche Gesellschaft für Technische Zusammenarbeit since 2011) IDA International Development Association JICA Japan International Cooperation Agency KfW Reconstruction Credit Institute (Kreditanstalt für Wiederaufbau) LCC Life-cycle cost ORG Open Regional Fund GTZ/GIZ SEE South-East Europe UNECE United Nations Economic Commission for Europe UNDP United Nations Development Programme WB World Bank WBIF Western Balkans Investment Framework RTSA Road Traffic Safety Agency EEARS Energy Efficiency Agency of the Republic of Serbia EEAP Energy Efficiency Action Plan GDP Gross domestic product DH District heating DEEC Directive 2006/32/EC on energy end-use efficiency and energy services Information system for energy consumption monitoring and issuance of permits in DMS the building sector (Data Management System) Directive 2003/87/EC establishing a scheme for greenhouse gas emission ETD allowance trading EE Energy efficiency EC Energy Community EPS Electric Power Industry of Serbia EU European Union Law on EUЕ Law on Efficient Use of Energy SCE Serbian Chamber of Engineers SEE South-East Europe PC Public and Commercial sector HVAC Heating, ventilation, and air conditioning systems MV Monitoring and Verification 2 MVE Monitoring, Verification, and Evaluation SIEEN Serbian Industrial Energy Efficiency Network - SIEEN MEDEP Ministry of Energy, Development and Environmental Protection ME Ministry of Economy SME Small and medium enterprise MF Ministry of Finance IFI International financial institutions NGO Non-governmental organisations RES Renewable energy sources BU Bottom-up TD Top-down PE Primary energy SEEP Serbian Energy Efficiency Project SCC Serbian Chamber of Commerce IPESDS Implementation programme of the Energy Sector Development Strategy PSEMR Provincial Secretariat for Energy and Mineral Resources FEC Final energy consumption TF Task Force SORS Statistical Office of the Republic of Serbia RS Republic of Serbia REEC Regional Energy Efficiency Centres DHS District heating system OG RS Official Gazette of the Republic of Serbia EMS Energy Management System SCTM Standing Conference of Towns and Municipalities EEI Energy Efficiency Improvement PPO Public Procurement Office FE Final energy 3 1. INTRODUCTION The Second Energy Efficiency Action Plan of the Republic of Serbia for the period from 2013 to 2015 (hereinafter referred to as: the Second EEAP) has been prepared at the request of DEEC, and in accordance with the model developed by the Working Group on Energy Efficiency established in the Energy Community Secretariat. In October 2013, a new Directive 2012/27/EU on energy efficiency was adopted, which replaces DEEC but it is not binding yet on the Parties to the EC Treaty. The reporting period for the achievement of the national indicative target for the EU Member States is 2008-2016, in accordance with DEEC. The main goal is that all Member States achieve the planned savings of 9% of the average final energy consumption for the period 2001-2005 in the ninth year of application of this Directive. The above objective is not related to energy consumers covered by the Directive 2003/87/EC, as well as end consumers whose energy consumption falls into sectors of air and river transport. In the case of the Republic of Serbia, and in accordance with the Decision 2009/05/MC-EnC of 18 December 2009 adopted by the Ministerial Council of the Energy Community, the First Energy Efficiency Action Plan of the Republic of Serbia for the period from 2010 to 2012 (hereinafter referred to as: the First EEAP) covered the period from 2010 to 2012, and defined an average indicative target for this period at the level of 1.5% of the final domestic energy consumption in 2008 (0.1254 Mtoe), i.e. the total target of at least 9% of the final energy consumption in the ninth year of application, calculated with regard to the final energy consumption in 2008 (0.7524 Mtoe). An absolute amount of the indicative target that should be confirmed by the state as the sum of energy savings over a period of nine years was determined in the First EEAP on the basis of data on the final energy consumption in 2008, since these data were the most reliable at that time in terms of energy consumption in the Republic of Serbia. The Second EEAP covers the period from 2013 to 2015, and it defines average indicative target of savings in final energy consumption for this period, report on the degree of fulfillment of the indicative target for the first reporting period, and the problems that followed the implementation of the First EEAP. The average indicative target for the coming period from 2013 to 2015 was defined at the level of 3.5% of the final domestic energy consumption in 2008 (0.2952 Mtoe), so that in the period from 2010 to 2015 the overall savings of 0.3975 Mtoe (4.7%) are achieved, i.e. the total target of at least 9% of the final energy consumption in the ninth year of application, 0.7524 Мtoe. The aim of the final energy savings over a period 2013-2015, of 3.5% (0.2952 Mtoe), will be achieved by the implementation of EEI measures in the following sectors: household 0.0693 Mtoe (approx. 23.4%), PC sector 0.0499 Mtoe (approx. 16.8%), industry 0.081 Mtoe (approx. 27.7%) and transport 0.095 Mtoe (approx. 32.1%). A new distribution of the targets was presented in accordance with the current implementation dynamics of the First EEAP and it is in accordance with the revised estimates of savings opportunities of individual measures. The development, implementation, control and reporting on the Action Plan for Energy Efficiency are regulated by the Law on Efficient Use of Energy ("Official Gazette of the RS", No. 25/13) and are comprised within the scope of work of the ministry in charge of energy, i.e. the Ministry of Energy, Development and Environmental Protection. The First EEAP defined that in the implementation process a part of the responsibility for the implementation is attributed to the Energy Efficiency Agency of the Republic of Serbia, but it ceased to exist on the date of entry into force of the Law on Amendments and Supplements to the Law on Energy ("Official Gazette of the RS", No. 93/12) so its operations were taken over by MEDEP. In accordance with the Law on EUE, the Government adopts the Action Plan for the period of three years, and MEDEP annually submits a Report on the implementation of the Action Plan. MEDEP also provides a methodology for monitoring, verification and evaluation of the effects of implementation of the Action Plan. For the implementation of the Action Plan, in addition to MEDEP, the responsibility is also attributed to state authorities, provincial or local governments, within their respective jurisdictions. 4 The Second EEAP is a strategic document which defines, in the area of improving energy efficiency in the Republic of Serbia, specific quantitative targets for energy savings in line with the general objectives of other policy documents in this area. The Second EEAP includes: 1) Analysis and performance evaluation of the implementation of the First EEAP, and key parameters of the Second EEAP; 2) Proposed measures to increase energy efficiency, i.e. measures to reduce the final energy consumption and set indicative targets for the second reporting period 2013-2015; 3) A review of horizontal measures, as well as institutional and financial framework for the implementation of EEI measures aimed to improve the implementation, monitoring and evaluation of achieved savings. In respect of the First EEAP, in the Second EEAP the measures are defined somewhat differently. Each old measure is comprised within a new measure, and in some cases the new measure includes a number of old ones, while the old measures that in the First EEAP related to the establishment of funds and credit lines, in the Second EEAP are presented as financing mechanisms. Measures that are related to multiple sectors are shown as horizontal measures, i.e. measures that contribute to the implementation, monitoring and evaluation of achieved savings, namely energy consumption monitoring.