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Balkan Green Energy News November 201503
Johannes Elle
Sector Fund Manager
(outgoing)
ORF-EE
INTERVIEW
Speed of returns defines energy efficiency measures
Two-day conference ‘Energy. Development. Democracy’, held at the end of September in Podgorica, Montenegro,
focused on policy dialogue in the context of the partnership established between the GIZ Open Regional Fund for
South-East Europe – Energy Efficiency (GIZ ORF-EE) and the Network of Schools for Political Studies in South-
East Europe. Johannes Elle, the outgoing sector fund manager of ORF-EE, told Balkan Green Energy News the aim
is to support parliaments, in particular the committees responsible for sustainable energy policy. “Initially, in 2009,
parliamentary energy committees in the Western Balkan countries barely held meetings at all. Especially not on
the topic of energy efficiency. Other stakeholders such as chambers of commerce, businesses and academia
also didn’t have contact with their parliament on energy issues,” he said and stressed there is a lot of room for
improvement of the work of the lawmakers’ groups.
How do you imagine the situation to develop, now that the mechanism is established?
Personally, I would like to see more selfish policy concerning energy efficiency and sustainable energy in these
countries. When I say selfish, I mean tailor-made, with various positive effects for the particular country. It is not
enough to just copy and paste European guidelines, as they only represent the framework to be interpreted and
adapted for the benefit of individual countries. For this, substantial discussion of relevant stakeholders is necessary.
It is not enough to just copy and paste European guidelines, as they only represent the
framework to be interpreted and adapted for the benefit of individual countries.
Which other entities are involved in the project?
There is the Network of Energy Efficient Capital Cities of Southeastern Europe. The cities of the network have
joined the Covenant of Mayors, a movement for climate protection and sustainable energy, gathering thousands of
municipalities in Europe and beyond. Most of the capital cities have made significant progress in climate protection
policy development and implementation of energy efficiency measures. They have benefited from the international
and regional exchange. Unfortunately, Belgrade and Prishtina aren’t part of the aforementioned network, but they are
in bilateral contact with other capital cities in the region.
Furthermore, the project is also cooperating fruitfully with the Energy Efficiency Coordination Group of the Energy
Community in Vienna. Responsible ministries are supported in the creation of evidence-based policies.

How did awareness of the issue of energy efficiency evolve in the Western Balkans?
In most countries, the awareness on general positive effects of the efficient use of energy has increased among
decision makers and ordinary citizens. Energy efficiency is now perceived as a positive topic in general. However,
very often the subject still has an image of something extraordinary, something only a wealthy country or a
household can afford. Understanding that energy efficiency ideally should start with simple and relatively cheap
measures saving energy and money still has to grow in the region. An efficiency measure should financially pay off
through energy savings made through the measure itself. And the best energy efficiency measure is the one with
the shortest payback time. Thus, I see energy efficiency as an important topic, especially when someone is not
wealthy.
Do any of the countries in question have the resources to equally participate in the
development of the related industry, rather than just import the technology?
The question points out a very important issue for political decision making when it comes to energy efficiency –
additional positive effects on domestic economy and job creation. Some of the biggest energy efficiency potentials
in all Western Balkan countries are in the building sector. Construction industry is typically dominated by domestic
companies and craftspeople. Installation of energy efficient windows and insulation of façades accounts for many
jobs. Furthermore, there are already companies in the Western Balkans producing or assembling energy efficient
equipment related to housing – and ready to expand production. And there are more of them than one would expect.
Some of the biggest energy efficiency potentials in all Western Balkan countries are in the
building sector.
How are professional skills picking up and are educational systems in the region adapting to
the demand for trained workforce in the energy efficiency sector?
Unfortunately, this challenge is not very visible as a problem, as the existing demand is still relatively modest.
While stimulating energy efficiency in the building sector successfully, Croatia is now facing the need for state-
of-the-art skills. However, craftspeople and companies in a broader manner are motivated to upgrade skills of the
workforce only when there is an established market. However, especially educational institutions in the Western
Balkan countries should already focus on the impending needs to equip the new generations of engineers, planners,
craftspersons, bankers... By the way, this would ideally also include the skills of professionals to cooperate in a
multidisciplinary way. When a person is willing to invest in energy efficiency in her or his house, then he or she
does not only need advice about what is technically relevant and fantastic, but also on how to finance the intended
activity or product.
Did partners from countries brought together by ORF-EE learn from one another, and what
forms of assistance were arranged?
Yes. We can see sharing and taking over of approaches and of know-how from one another in all the regional
networks we have supported. I think mutual learning from experiences between the Western Balkan countries,
which are very comparable, will thus grow even further. Actually, this kind of cross-border learning is one of the
principles of the success of the European Union.
What are the typical problems for projects in the public sector?
From my experience, projects are realized when there is a persistent will to implement them. There are so many
exciting, successful and highly cost-efficient project approaches in the Western Balkans – the heat and power facility
in the Clinical Center of Serbia in Belgrade comes spontaneously to my mind; a biomass district heating system
in Livno, Herzegovina; refurbished kindergartens and public lighting in many municipalities. Looking especially
to the municipal sector, I would like to highlight that through political will, own functional capacities, cooperation
of relevant stakeholders, and a good understanding of projects easy to realize, many things can be done. These

ingredients are, however, often in an early development stage. Of course, investment money is also needed and
many actors are complaining over the lack of own resources. Yet, expensive and ambitious projects should ideally be
implemented on the basis of concrete experiences gained on smaller scale. When I look at this from a countrywide
policy perspective towards the Western Balkan countries, I would like to see more national energy efficiency funds
offering cheap credits for public projects or providing co-financing opportunities. Here, the Croatian Environmental
Protection and Energy Efficiency Fund may be a source of inspiration.
Are you satisfied with media coverage and support for energy efficiency?
Luckily, this topic is covered by the media now more than some years ago. Still, I would be more satisfied to see
a larger number of reports about successful examples on the practical level and more attention given to political
decision making.
The Croatian Environmental Protection and Energy Efficiency Fund may be a source of
inspiration.
What challenges remain to meet goals for the year 2020?
Systemic progress is never easy. Many steps are needed and each step is crucial. I think the main challenge is
still to get a breakthrough in the consciousness of stakeholders. More decision makers and people in the Western
Balkan countries have to recognize that energy efficiency is their real interest and that, within their own scope of
responsibility, many things can be done by them independently, as well as in cooperation with others. I think there is
much truth to the saying “Help yourself, and God will help you” – more people have to start to act on their own and
recognize their power to help themselves. When it comes to implementation, more attention should be on doing
things systemically. One should be aware of the fact that a stand-alone project, under which 10 schools in one
country are refurbished, is only a start. The question is rather how an efficient system in a country should look like
in order to secure the refurbishment of all the schools. I am pretty sure that European partners will provide support
towards the establishment and application of systemic approaches driven by the Western Balkan countries.

Josué Tanaka
EBRD’s Managing Director for
Operational Strategy and Planning,
Energy Efficiency and Climate
Change.
FEATURES
One thousand projects are just the start
The European Bank for Reconstruction and Development is looking ahead to an ambitious future and back at the
achievements of the recent past as we boost our contribution to global efforts to combat climate change. We have
just announced the adoption of a Green Economy Transition approach which will increase the level of our financing
in the sphere of sustainable resources to some EUR 18 billion over the next five years.
The new approach is in part our response to this year’s appeal by G7 leaders for multilateral development banks
such as ourselves to ‘use to the fullest extent possible their balance sheets’ to deliver climate finance and speed up
the transition to low carbon economies. The announcement also comes at a key moment in the broader movement
to counter climate change: the run-up to the crucial COP21 meeting in Paris at the end of this year which will seek
to secure a legally binding and universal agreement in this area.
But our new approach was not conceived overnight. It builds on years of experience of successful investment
in energy efficiency and renewable energy. Just as we reveal the scale of our plans for this field for the years to
come, we have also passed an important milestone in our history. The recent signing of a deal with Turkey’s Ege
Profil was the 1000th
project within our Sustainable Resource Initiative (SRI), and we are particularly proud that we
shared this with a key donor, the Clean Technology Fund.
What started life in 2006 as the Sustainable Energy Initiative (SEI) with an investment volume of €748 million in
its first year has developed into the leading climate finance initiative in the EBRD’s many regions. Last year annual
investment volume reached EUR 3 billion, more than a third of the EBRD’s total investment for 2014. Investments are
diverse and range from the construction of the first large-scale wind farm in Kazakhstan to the first alternative fuel
project in the cement industry in Egypt.
They also encompass everything from a light rail project in Turkey to several district heating rehabilitations
in Ukraine and Central Asia. The business model at the core of the SRI is now tried and tested. We provide finance
for clients to invest in sustainable resource projects, including energy efficiency, renewable energy, water efficiency
and waste minimisation projects.
When required, we also arrange technical support. This can include the provision of resource efficiency audits to
support clients in identifying the technically optimal investment solution or training clients in energy management.
In addition, the EBRD engages with governments in the countries where it works to assist in developing policies and
regulations to scale up investment.

Authors are members of Serbian National Association SERBIO:
Vojislav Milijić, president
Tomislav Micović, vice-president
Over the years the SRI has remained close to the market, recognising business dynamics and trends and developing
innovative responses. In 2009 we started piloting climate change adaptation projects. Investments include
making hydropower rehabilitations in Tajikistan more climate resilient. The EBRD is now the largest provider of
private sector adaptation finance among the multilateral development banks.
In 2012 we began promoting efficiency and innovation in two more areas, water and materials. The introduction of
these new spheres – which turned the Sustainable Energy Initiative into the Sustainable Resource Initiative – was a
response to rapidly increasing demand coupled with volatile prices and growing environmental concerns.
Besides expanding the scope of our activities, the SRI has also consolidated ties with climate finance partners
such as the Climate Investment Funds (CIF), the Global Environment Facility (GEF) and the EU. They all provide
concessional finance and technical assistance when market barriers remain high. Our investments have contributed
to carbon emission reductions totalling 72 million tonnes, equivalent to the combined emissions of Azerbaijan and
the Slovak Republic.
Renewable energy projects under the SRI have generated 60 million MWh, which is equivalent to the annual electricity
production of Romania. SRI projects also help to create markets. For instance, the introduction of the Turkish
Sustainable Energy Financing Facility (TurSEFF) created an opportunity for Turkish financial institutions to pilot and
scale up energy efficiency finance products.
Most are now offering various financial products ranging from project finance for renewable energy to household
loans for home improvements. In fact, last month seven of Turkey’s largest banks were amongst financial institutions
which endorsed a joint declaration pledging to further incorporate energy efficiency finance into their businesses.
Overall, since we launched the SEI in 2006, our investments have amounted to more than EUR 18 billion. That is, of
course, the same figure we are aiming to hit in the next five years alone (in the process raising our green financing to
around 40% of total annual investments).
It’s an ambitious target but one that I am sure we will reach.

Energy Cities Project Serbia
Donor: Swiss State Secretariat for Economic Affairs (SECO)
Country of implementation: Serbia
Project manager: Priska Depnering – Nydegger, Program Manager
Duration: 2015–2020
Project status: Approved at SECO
Partner project agreements to be signed
Project implementation from 2016
Partners:
Ministry of Energy and Mining
Government Office for Reconstruction and Flood Relief
Municipality of Vrbas, Municipality of Paraćin, City of Užice, City of Kruševac
Energy City Project Serbia follows the Swiss Cooperation Strategy 2014-2017 with Serbia which, under its
priority domain Energy Efficiency and Renewable Energy, defines: “Switzerland will start building the capacities
of selected towns and municipalities to implement sustainable energy action planning in order to reduce their
energy consumption and meet energy targets.” This project is the first of its kind in Serbia and, if successful,
could at a later stage be expanded to other cities. Similar projects are being implemented by SECO in the Ukraine,
and being planned in Tunisia.
The project will support four selected municipalities in the implementation of good energy management practice,
by introducing the European Energy Award (EEA) system to Serbia, which will at the same time facilitate
implementation of the national requirements in the energy domain.
PROJECTS

Overall goal
The objectives of this project are a more sustainable energy management at the municipal level through the
introduction of the European Energy Award, and improved energy efficiency of public buildings (mostly schools) in
Kruševac, Paraćin, Užice and Vrbas. In addition, and responding to the Swiss pledge made to Serbia after the 2014
floods, the project will also include some investments in disaster risk reduction measures in the cities of Paracin
and Uzice.
Capacity building will support the implementation of the identified infrastructure priority interventions and ensure
the sustainability of the project. The component foresees a series of trainings, which will raise awareness, know-how
and capabilities of the local teams taking care for the implementation of the project.
Beneficiaries
The direct beneficiaries are Serbian municipalities Kruševac, Paraćin, Užice and Vrbas with a total of about 300,000
inhabitants, and more specifically, it’s the energy staff of local self-governments, the pupils and teaching staff of
schools and kindergartens.
Vidoje Drndarević, Deputy Mayor of the city of Užice:
We are glad that the city of Užice has been chosen to participate in the project „Energy
Cities“ among 45 municipalities and cities across Serbia. Through the implementation
of „European Energy Award“ component and capacity building component, concept of
sustainable energy management system will be introduced in our local self-governance.
Through the implementation of infrastructural component, substantial savings will be
achieved in energy consumption within the public buildings to be reconstructed. Money saved
may be used for energy efficiency improvements in the public buildings that have not been
chosen for reconstruction within this project.
Dragi Nestorović, Mayor of Kruševac:
Participation in the project will contribute to establishing energy management system,
keeping record of energy consumption in public buildings and implementation of Energy
efficiency program of the city of Krusevac (2015-2018) through implementation of energy
consumption reduction with a purpose of achieving savings in the city budget.
Picture 1: Consultants visiting schools during feasibility
study phase of the project

Component Subprojects Kruševac Vrbas Paraćin Užice
1. EEA Energy X X X X
2. EE investment Energy X X X X
3. DRR investment DRR X X
4. Capacity building Energy/DRR X X X X
Table 1: Overview of the components of the Energy City Project
1. European Energy Award
Equivalent to Energiestadt (‘Energy City’) in Switzerland, it is awarded to municipalities
which exemplify and implement a sustainable communal energy policy. Energiestadt,
originally a Swiss approach and deeply linked to the country’s expertise and know-how, is
a certification system for sustainable management in municipalities. Implementation of
the related controlling process favours optimal allocation of resources to energy relevant
projects. Therefore, ‘energy cities’ advocate renewable energy sources, environmentally
friendly transport systems and efficient use of resources. The actions are implemented
during a sustainable, long-term effective process with the goal of a continuous improvement. Up to now, EEA was
successfully implemented in more than 1,300 municipalities in 11 countries.
EEA translates national goals related to energy effectively into local policy recommendations. These provide
guidance for municipalities in allocating their resources to achieve optimum efficiency to implement energy and
climate protection policies. In the case of Serbia, EEA will be suitable to support the municipalities in implementing
the new Serbian law on energy efficiency.
2. Energy efficiency investment
The component will finance rehabilitation measures in ca.25 public buildings (preschools, kindergartens and
elementary schools, as well as a hospital building in Užice) in selected municipalities. The prioritization and selection
of measures were set according to evaluation criteria: abatement cost for carbon dioxide, feasibility and visibility.
Technical measures to be realized are manifold. They include insulation of walls, roofs and basement ceilings,
replacement of windows, sun protection, insulation of heating pipes, different rehabilitation measures in boiler
rooms, replacement of outdated boilers and rehabilitation of lighting systems through LED lighting. To the extent
possible, it is foreseen to use biomass and particularly wood as alternative energy source to replace old fossil fired
boilers.
Picture 3: Psychiatry Ward in General Hospital Užice to be
reconstructed within the project

3. Disaster risk reduction investment
The project will also implement DRR measures in the municipalities of Paraćin and Užice – both hit hard by last
year’s floods. In Užice, the project envisages installation of an early warning system, while in Paraćin it will support
a number of measures which will be precisely defined in the initial phase of the project.
4. Capacity building
Technical assistance focuses on building management capacity at the institutional level in relevant departments
of the municipality (flood prevention and energy). The capacity building component foresees a series of trainings
for the municipal staff, the facility managers and also for the teachers in schools that are to be rehabilitated. The
implementation of the capacity building program will raise awareness, know-how and capabilities of the local teams
taking care of investment activities.
More information about the Energy Cities Project Serbia can be obtained by contacting project office at:
Ana Pajkovic, National Programm Officer, Energy and Public Finance Management
Swiss Cooperation Office Serbia
Embassy of Switzerland
Tel: +381 11 728 70 22
E-mail: ana.pajkovic@eda.admin.ch

SERBIA
Industry invests in energy efficiency
measures
September 29
Reduction of energy consumption in manufacturing
through investments in new technologies and
products was one of the most important topics of a
conference organized by the Delegation of German
Economy (AHK) in Serbia and the Federal Ministry of
Economic Affairs and Energy.
Professionals from business areas and responsible
institutions in Serbia and Germany presented
examples,potentialsandpossibilitiesforimprovement
for project financing. Among other subjects, attention
was given to energy management and its benefits.
The audience heard representatives of German
companies: Econ Tech Theiss, Pewo Energietechnik,
Arena Innovation, Viessmann, Kaeser and Bluberries.
Innovative products and services were presented
from the field of energy efficiency, including heating
and cooling systems.
Martin Knapp, head of the German organization,
stressedhowSerbian enterprises havetheopportunity
to learn about new activities in technological renewal
and important guidelines for the improvement of
energy efficiency, especially in relation to the national
law which entered into force in 2013.
Serbia’s climate talks – on the way to
Paris
October 6
The conference ‘Dialogue on Climate Change in
Serbia: Climate-smart Partnerships Ahead of Paris
COP21’ was held in Belgrade on October 5 and
October 6. The event was organized by the Ministry
of Agriculture and Environmental Protection and the
United Nations Development Programme (UNDP),
with the co-operation of the Embassy of the Republic
of France in Serbia and financial support from the
Global Environmental Fund.
In the opening session, Snežana Bogosavljević
Bošković, minister for agriculture and environmental
protection, addressed the audience. Irena Vojáčková-
Sollorano, UNDP’s resident representative, Michael
Davenport, head of the EU Delegation, Axel Dittmann,
ambassador of Germany, and Christine Moro,
ambassador of France in Serbia, all followed with
remarks.
Presentations showed the latest global developments
in climate change policy and the preparations for the
forthcomingconferenceinParis.RegardingCOP21,the
experts from UNDP and the European Commission’s
Climate Change Directorate were able to clarify the
main content which will be under negotiation, and the
expectations for the new global climate agreement.
This agreement should secure further mandatory
reduction in greenhouse gas emissions, as well as
adaption measures to new climate conditions beyond
2020.
The agreement in Paris should secure
further mandatory reduction in greenhouse
gas emissions, as well as adaption measures
to new climate conditions beyond 2020.
State secretary Stana Božović presented Serbia’s
efforts in combating climate change regarding the
implementation of international obligations, but also
in relation to the harmonization with EU legislation.
In addition, particular attention was given to local
self-governing authorities and possible measures for
initiating innovative development which contributes
to the reduction of emissions (so-called low carbon
development). Also presented were the views and
activities of civil society organizations in this area.
During the second day, the focus of the conference
was directed towards examining the scientific facts,
data and projections in the field of climate change, as
the basis for decision making and planning measures
of mitigation and adaptation to changed climate
conditions. The participants had the opportunity to
get better acquainted with the Global Framework
for Climate Services, managed by the World
Meteorological Organization.

Publication ‘The Heating Up of Crops – How to Answer’
was presented as a good example of scientifically
based recommendations for action. It was prepared as
part of ongoing projects of the Ministry of Agriculture
and Environmental Protection and UNDP.
Over 200 participants attended the event, ahead of
the historical 21st
Conference of Parties of the United
Nations Framework Convention on Climate Change
(UNFCCC), which will be held in Paris from November
30 to December 11. The main slogan of the Belgrade
conference was ‘Time for Action’.
EBRD continues procurement for EPS
Metering project
October 9
ElectricPowerCompanyofSerbia(EPS)saiditselected
Tcom d. o. o. from Belgrade for the manual metering
application for mobile phones and equipment. The
deal worth RSD 240 million (EUR 2 million) without
value-added tax, marked JN-1000-0378-2015, was
arranged in a negotiated procurement, after an
invitation to the now hired contractor, as the company
had previously won the pilot project contract together
with Asseco SE d. o. o., the documentation said.
EPS needed to implement a uniform system in the
whole territory of Serbia, after it was introduced in
several branches by Tcom, the sole owner of the VSS
Optical Reading Device application, according to the
procurement information published on September 25.
The aim is to accurately measure
power consumption and monitor if 700,000
meters are working properly and to track the
activity of operators in the field at 100,000
measuring devices.
The aim is to accurately measure power consumption
and monitor if 700,000 meters are working properly
and to track the activity of operators in the field at
100,000 measuring devices. The project includes
hardware: servers, 1,480 smartphones with 3G
services contracts, ADSL communication equipment,
500 automatic electronic locks with 3G contracts. The
deadline for the service is 180 days.
The company will use an EUR 80 million loan from the
European Bank for Reconstruction and Development
and the European Investment Bank for a procurement
through its second contract within the EPS Metering
project. EBRD said in September that tendering for on-
site installation of medium- and low-voltage devices
is expected to commence in the fourth quarter of this
year.
The contract for information technology (IT)
infrastructure and security (hardware, software),
concentrators, metering equipment, installation
and integration of IT environment was awarded
in September to a consortium headed by French
companies Atos WorldGrid SAS and Sagemcom
Energy & Telecom. In a procurement financed by a
loan from the European Bank for Reconstruction and
Development and the European Investment Bank, EUR
31.9 million was saved, according to chief executive
officer of EPS Aleksandar Obradović. The first delivery
in the project’s first phase is planned for November 5
this year, and the last one for September 7, 2017.
HPP Zvornik enters EUR 70 million
overhaul
October 12
One of the oldest hydropower plants (HPPs) on the
Drina river is being refurbished in a project worth EUR
70 million. The 96 MW Zvornik facility of four units has
a dam holding a 25 kilometre long artificial lake, and
the four-year project will extend its working life by 40
years, according to Electric Power Industry of Serbia,
the government-controlled utility.
Minister of energy and mining Aleksandar Antić
said the works are financed from a loan from the
German development bank KfW. He stressed the
HPPs capacity would be increased by 30% and that
the production would shoot up 15% or 70 million KWh
a year, translating into three to five million euros per
year.
Voith Hydro will take 12 months for the refurbishment
of each of the units. Antić said domestic companies
are hired for works equivalent to EUR 17 million. KfW
had already financed the overhaul of the nearby HPP
Bajina Bašta, said Arne Gooss, the bank’s head for
Serbia.

Capital addition for Brodarevo HPP with
talks on sale
October 13
Reservoir Capital Corp. said it intends to undertake a
private placement to raise CAD 1 million (EUR 680,000)
through the issue of two million units at EUR 0.34
each. The Canadian renewable energy company is
engaged in the development of a 59.1 MW
hydroelectric project at Brodarevo on the River Lim in
southern Serbia. On October 8 it said it signed a letter
of intent with with Milan-based utility A2A SpA to
initiate exclusive negotiations and due diligence on
the project.
The company seeks a partner to support the
development and the construction of the Brodarevo
HPP. Reservoir said it entered into more detailed
negotiations with A2A, which invested EUR 436 million
in 2009 to acquire 43.7% of Montenegro’s utility EPCG,
operating various hydroelectric projects that lie in
close proximity to Brodarevo.
In the private placement, each unit shall comprise of
one common share in the capital of Reservoir and one
half of one common share purchase warrant. Each
whole warrant entitles the holder to purchase one
common share at a price of 375 euro cents per share
for a period of five years.
Eleven offers for Belgrade landfill PPP
October 15
Offers for the selection of an operator for the Vinča
landfill as part of a private–public partnership (PPP)
have been opened in the City Council building of
Belgrade, and mayor Siniša Mali said there were
eleven bidders. „I am very satisfied with the response
by investors, confirming that this is currently the
biggest project of its kind in Europe. The City of
Belgrade is exceptionally dedicated to the resolution
of the problem of the landfill in Vinča, lasting
several decades, as well as to attract investment in
infrastructure through PPP,” he stated.
Goran Vesić, the city manager, had said
on April 1 that the company that will manage
the landfill would be selected by the end of
the year.
Mali underscored a commission would rank the
offers within 25 days, after which a second phase of
the process will start for qualified bidders, and in the
following months another invitation will be placed.
„Depending on the number of qualified offerers, we
expect the contract to be signed in the second half of
next year,” the mayor said.
Goran Vesić, the city manager, had said on April 1 that
the company that will manage the landfill would be
selected by the end of the year.
The City of Belgrade said offers were received from
Feom Ciro Frisoli & C.Sas (Italy), WTE Wassertechnik
/ Jessen (Germany), Suez Environnement (France),
Valoriza / Terna Energy (Greece), Urbaser (Spain),
Helector (Greece), Innovative Design Bureau
Ecological Technologies (Russia), Veolia (France),
C. I. S. A. (Italy), Beootpad d. o. o. (Serbia), Vinci
Environnment (France).
The endeavour involves construction, operation and
maintenance of a municipal waste treatment facility.
The plan foresees the construction of a mechanical
biological treatment (MBT) plant with refuse-derived
fuel (RDF) production, coupled with an RDF-fired CHP
plant.
Study underway for Kostolac wind
power plant
October 16
National power producer EPS published an invitation
on October 12 for offers for a feasibility study with
concept design for a future wind power plant at the
coal mining complex of Kostolac, 90 kilometres east
of Belgrade.
The public procurement project JN 1000-0041-2015 is
for a wind park study for possible locations of Drmno,
Petka, Ćirikovac and Klenovik, covering from to 1.5 to
10 square kilometres. A preliminary study showed 20
turbines of total capacity between 50 MW and 60 MW
can be installed to operate for 20 or 25 years. The soil
was geotechnically researched. The current invitation
for investment and technical documentation expires
on November 13. The bidding process JN 12-15 DOIE

for a consultant on a feasibility study and the project’s
concept design was cancelled on September 3 after
three offers, two deadline extensions and a complaint,
as EPS cited conditions for selection haven’t been
met.
An invitation was also placed on October 12 for offers
for professional oversight during geological and
geotechnical research for a future 9.9 MW solar power
plant at the Petka slag pond, and for subsequent
technical control of results. The procedure is filed as
JNMV 01-15 and the selection is due by the end of
October. Project 1000-0342-2015 for investment and
technical paperwork for the extension of the planned
facility was awarded to a consortium on October 16.
Energy efficiency enables sustainable
development
October 16
Compared to the countries in the region, Serbia
is ranked the second regarding the consumption
of electricity per capita, and the first regarding
the emission of carbon dioxide, according to Arne
Gooss, director of KfW bank in Serbia. Speaking at an
international conference on energy efficiency in public
and private sector on October 15, he stressed that
40% of energy in the country is used by buildings, 32%
by industry and 28% by transport. The main reason
for high consumption is old infrastructure, Gooss
stressed. In his words, KfW provides support to the
projects which will save at least 20% of energy, and
individual loans that can go up to EUR 3 million – for
projects such as the development of energy efficiency
in thermal power plants and schools.
The development bank’s energy efficiency programme
for Serbia already has 12.000 final beneficiaries, he
said. The measures account for the reduction in the
emission of carbon dioxide of 84.000 tonnes a year,
Gooss added. The programme will be extended next
year by the Eco-Loan Program with EUR 107 million
in funding.
Ambassador of Denmark Michael Borg-Hansen said
his country has been recording growth for decades
without increasing energy consumption. Since 1990,
Denmark has increased its gross domestic product by
nearly 40%, cutting energy consumption by 7%, and
reducing emissions by nearly 30%, he said. Thanks
to energy efficiency, the public sector achieved
significant savings and developed the entire industry
of materials for smart buildings, Borg-Hansen said.
Between 2006 and 2014, the European Bank for
Reconstruction and Development invested EUR 16.4
billion in 926 projects under its Sustainable Energy
Initiative, said Daniel Berg, the international financial
institution’s director in Serbia. He added Southeastern
Europe accounted for EUR 3.1 billion in the period.
Berg underscored 36 projects were signed in Serbia
through2014andthatEUR636millionintotalfinancing
was committed for energy efficiency and renewable
energy projects. He added that the investments are
expected to lead to savings of one million tonnes of
carbon dioxide per annum in the country.
Brnabić: energy efficiency will be
recognized as an energy source in Serbia’s
new national strategy, helping to reach 27%
of consumption from renewable sources by
2020.
The conference was organized by the Belgrade
Fair and the National Alliance for Local Economic
Development (Naled). The event was held within the
11th International Energy Fair and 12th International
Fair of Environment Protection and Natural Resources
(EcoFair), under the auspices of the Ministry of
Mining and Energy and Ministry of Agriculture and
Environmental Protection. Participants discussed the
significance of energy savings aimed at achieving
sustainable development, environment protection,
strengthening the competitiveness of businesses and
improving the standard and quality of living of Serbia’s
citizens, Naled said. Ana Brnabić, the organization’s
vice president, stressed energy efficiency would be
recognized as an energy source in the new national
strategy, helping to reach 27% of consumption from
renewable sources by 2020. She stated energy
efficiency may help in the fulfillment of long-term
goals: energy stability, more energy independence and
less imports.
Luka Komazec, head of consortium GGE from
Slovenia, said most of its agreements were with the
private sector, which understands best how every
euro is used. Still, in his words, it also cooperated
with the public sector through ESCO contracts, which
became a standard in Slovenia. Most public buildings
nowadays use renewable energy sources such as
biomass, Komazec said. GGE’s members are Gorenje,
Geoplin and Energetika Ljubljana.
Nataša Đereg from Cekor (Center for Ecology and
Sustainable Development) said the countries in the
region aim to improve their energy efficiency by 8-9%
by 2018, while the members of the European Union
have a more ambitious goal – 27% by 2030. „If we
do not think about the ways of achieving this right
now, we will face a problem, as it is expected that all
countries in the region will become EU members by
2030,” she said.

MK-Fintel’s wind turbines arrive in Kula
October 18
After they were unloaded from barges in Apatin
shipyard on the Danube in Serbia’s northwest, parts of
three wind generators were transported 40 kilometres
further to the construction site in the municipality
of Kula, Večernje novosti newspaper’s portal said.
Preparation works have been finished, according to
MK-Fintel Wind a. d., the venture company which is
running the project, and the country’s first turbines
will be the highest in the region at 178 metres.
The wind turbines, Serbia’s first, will be
the highest in the region at 178 metres.
The equipment was driven through the town’s streets,
some of which were widened for the transport, while
traffic lights were taken down for the heavy trucks
to pass. The company, founded in 2007 by Serbian
MK Group and Italian Fintel Energia Group SpA, said
the 9.9 MW facility may connect to the grid by the
end of the year. The generators, produced by Vestas
Wind Systems A/S from Denmark, will supply power
equivalent to the consumption of 8,000 households,
and the project is worth EUR 15 million, MK-Fintel said.
InJuly,MK-Fintelsignedatermsheetwithaconsortium
formed by international partners to finance, build and
operate a wind farm of up to 128.7 MW in Vršac. The
power plant project in Kula is financed by Erste bank.
Power purchase agreements finally on
the table
October 19
Ministry of Mining and Energy of Serbia organized a
public consultation process on proposed directives
for incentives for the production of energy from
renewable sources and highly efficient cogeneration.
The documents include the conditions for achieving
the status of a privileged producer, temporarily
privileged producer and of a producer from renewable
energy sources. Another directive concerns incentives
for generating power from renewables and efficient
cogeneration, while the third paper is for standard
models of power purchase agreements, the ministry
said on its website.
Energy minister Aleksandar Antić said on October
14 that Serbia will get its first wind power plant,
with the capacity of 10 MW, by the end of the year.
He announced the adoption of secondary legislation
within weeks, and added this is necessary for bigger
investments in renewables. Antić stressed he expects
other wind power projects to pick up after the model
for the power purchase agreement is agreed on.
Two-day forum with experts on
sustainable energy
October 22
EEL Events gathered players from the energy industry
at the 8th Balkan Energy Finance Forum (BEFF 2015)
to discuss the future of the sector in Southeastern
Europe. Main topics were the bankability of projects of
energy and green energy projects in relation to risks.
Case studies were presented about endeavours in
several branches, with views on sustainable strategies.
The first day of the event included a panel and
presentation on untapped potential of hydropower
and opportunities for general and small projects in
the sector. On the second day, discussions focused
on energy efficiency solutions, power exchanges and
coupling in the region, and financing energy production
from renewable sources. Speakers covered the
development of biomass and biogas projects and of
energy storage solutions. BEFF 2015 included topics
of national policy, incentives and legal certainty for
investors.
Participants’ impressions
Thomas Mitschke,
project development
component leader
GIZ–Developmentofa
SustainableBioenergy
MarketinSerbia
The introduction of biogas plants on the mid-sized
farms in Serbia would generate additional income.
Small biogas plants at farms involve the introduction
of technology that uses raw material already at the
disposal of farms that comes at no price. It can be
used to produce heat energy for the farm itself but
also to produce electrical energy that can be sold
at privileged prices. The amount of earnings from
the sale of electricity generated from biogas greatly
depends on the size of the farm and number of
animals.
By using the electric energy from renewable sources
Serbia is approaching the environmental standards
of the European Union. Revenues are increasing

at the local level and the farms are becoming
energy independent, which can play a big role in
doing business and planning. Local farmers show
great interest in the new technologies that we, as
organization, are promoting and we hope that in the
years to come we will have an opportunity to talk with
the Serbian farmers about the improved wellbeing that
biogas brings.
Petr Machej, commercial and
business development
director
Abengoa
As an EPC contractor
focused on energy, water and
environmental sector, Abengoa
sees the Balkan region as a
big and perspective market.
During the conference it was
discussed how many power plants constructed in the
seventies should be shut down in the near future and
replaced by new and modern facilities. Banks should
understand and resolve the challenge of financing of
those projects, especially in the situation when prices
of energy all around Europe are extremely low. They
are the lowest in the Balkans. Besides that, long-term
contracts are becoming rare, because they are being
substituted with online trading in fuels and energy.
Renewable energy’s share in the energy mix of the
Balkan region is also growing, so I believe that there
will be a perspective market for energy storage, not
only for electrical energy, but also for district heating.
Andreas Chollet, head of
international project
development
WPD Europe
For the last 10 years, WPD has
been quite successful in the
region with three wind farms
operating in Croatia and a fourth
installation upcoming next
year. In all these years, we have
been observing wind power markets in neighboring
countries such as Serbia and Bosnia and Herzegovina.
But as there were no installations we have never felt
encouraged to go pioneering ourselves. During the
conference, I have learnt that two wind power projects
are under construction in Serbia – though of smaller
scale (6.6 MW and 10 MW) but with international
financing schemes. I see this as a very positive
sign that the Serbian wind market has finally been
launched, and we will explore new opportunities for
investment in this country with much more attention.
Borko Raičević, energy
efficiency expert
Energy Community
Secretariat
Among a number of measures
to enhance security of energy
supply in the Energy Community,
I presented the importance of
energy efficiency as the most
accessible and affordable fuel.
To tap significant efficiency potential, the Energy
Community is strengthening regulatory framework
in this area, including recent adoption of the Energy
Efficiency Directive by the Ministerial Council. Strong
regional cooperation and coordination will contribute
to the utilization of donor support, and to the creation
of harmonised ESCO market in the region.
Carrie Walczak, project
finance team manager
Finance in Motion
Investment advisor
Green for Growth Fund,
Southeast Europe
The Green for Growth Fund,
Southeast Europe (GGF) is a
public–private partnership fund
initiated by the European Investment Bank and KfW,
dedicated to supporting renewable energy and energy
efficiency developments in the Western Balkans,
Turkey, and the Caucasus. The fund carries out its
mission through providing financing to local financial
institutions for on-lending to worthy projects and
through direct financing. For direct financing, the fund
can provide senior debt, mezzanine financing, and
equity financing to support renewable energy projects,
targeting specifically small- to medium-size projects.
GGF views the concept of sustainable investment, in
its wider meaning, as critical to the development of
renewable energy projects in the region. They should
be in line with the host country’s energy frameworks
and planning, as well as their international obligations,
including toward the Energy Community. They
should be based on sound resource assessments
and strong contractual frameworks. Finally, they
should be constructed and operated in a way that
is environmentally and socially sustainable. When

Finance in Motion GmbH, the investment advisor
to the fund, evaluates projects on its behalf, each
of these aspects are taken into consideration in the
assessment of prospective projects’ bankability.
Đorđe Popović, senior
attorney
Petrikić & Partneri AOD in
cooperation with CMS Reich-
Rohrwig Hainz
We appreciate the efforts
of all stakeholders involved
in the BEFF to underline the
gaps in the current regulatory
framework applicable to energy projects, especially
the lack of comprehensive and coherent set of rules
in the renewable sector, and to outline the major steps
needed to make the projects ultimately financeable.
Based on our extensive experience as legal advisors
in this sector to date, we believe that the imminent
challenge for the Government of Serbia will be
to adopt a bankable power purchase agreement
model as soon as practicable, together with a
complementing set of decrees to regulate obtainment
of the (preliminary) privileged power producer status
and incentive schemes’ application in a clear and
concordant manner.
Specific attention in this regard needs to be paid to
full implementation of the rules adopted in the new
Energy Law, careful drafting of the force majeure and
change-in-law clauses and to feasibility of a phased
commissioning of large-scale projects and step-in
rights of the lenders.
Once finally adopted, it is of equal importance
that these specific rules are well understood and
consistently applied by all authorities involved.
Goran Matović, head
of EE&RES
department
South East Europe
Consultants (SEEC)
Ltd.
Serbia intensively started its support in 2009 with the
adoption of feed-in tariffs for electricity production
from renewable energy sources and efficient
combined heat and production (CHP). Up to now, a
smaller part of action plans and energy strategies
has been realized. However, many pioneer steps
have been done; some obstacles and barriers in
procedures, administration and legislation solved
but still there is space for improvement. In addition,
Serbia has obligation to increase the participation
of renewable energy sources in final consumption
from 21% to 27% until 2020. It needs to improve the
efficiency of thermal power plants on the other hand,
and according to the Energy Development Strategy,
to close some thermal power blocks using coal.
All this implies the necessity and expectations for
serious development in the energy sector in the next
decade, including a significant increase of projects
for renewable energy sources, but also more efficient
conventional power plants.
Neil Budd, director of renewable energy
Shakespeare Marineau
We have extensive experience in the legal work
involved in developing and financing renewable
energy projects. The Balkans region provides great
opportunities for renewable energy development
with its abundant natural resources. But there are
significant challenges too. Low wholesale power
prices prevail across the region. Renewable energy
technologies need to bring their costs down in order
to achieve grid parity and thereby avoid reliance
on government subsidy mechanisms such as
feed-in tariffs and green certificates. Experience
across Europe has demonstrated that governments
frequently remain unwilling to commit to these
mechanisms in the long term. In addition to
government support, other fundamental requirements
such as creditworthy offtakers are of key importance.
For renewable energy developers and investors,
the Balkans remain an interesting region but it is
important to treat each country as a separate market,
with its own opportunities and challenges.
Nenad Stefanović, senior
expert for electricity
Energy Agency of the
Republic of Serbia (AERS)
Serbia lately made major steps
in the process of opening the
electricity market, adopting the
new Energy Law, harmonized
with the Third Energy Legislation
Package and thus defining
clear regulatory framework. In line with the European
Union’s integral market project and according to the
South East Europe Regional Action Plan, the South
Eastern European Power Exchange (Seepex) was

established and will start operating by the end of
this year. Seepex was fully supported by the Ministry
of Energy and by the regulatory authority in order to
enhance electricity market liberalization in Serbia and
the regional electricity market.
Despite the fact that Seepex followed the model
of merchant – non-regulated power exchanges
(PXs), those in France, Germany and Austria, it will
have close cooperation with the national regulatory
authority. PX monitoring should be constant due to
the possibility that the PX gets monopoly or dominant
position, on a national level or through cartelization
between several powerful PXs. Although the European
Commission fully supports creation of PXs in the
EU, with no regulated guidelines, there is a common
opinion that PXs’ tasks should be regulated by the
EU. PXs shall have a major role in defining regional
electricity prices, performing the public service role
and supporting efficient cross-border trade. Due
to political and national motives, each contracting
party of the Energy Community is planning its own
PX, without justification and regardless of the fact
that the power systems are too small to form a liquid
exchange. Therefore, the Serbian PX gave a clear
message that it is prepared to offer its platform for the
market services to all neighboring bidding zones.
Nikola Ćatović, associate
engineer for renewable and
energy efficiency finance
MACS
The energy finance market in
Serbia seems not to be lacking
in financing opportunities in
energy efficiency, renewable
energy and ESCO projects.
The interest of foreign and
domestic investors is present, and some obstacles
that have been identified in the previous years seems
to be on a good path to be overcome. However, the
unavailability of representatives of the ministry in
charge of energy and the Electric Power Company
of Serbia left outstanding the questions regarding
the new power purchase agreeements for renewable
energy projects, implementation of the public–private
partnership contracts for ESCOs and results of the
energy efficiency strategy.
Shane Woodroffe, partner
EnerCap Capital Partners
Countries across Europe have all
implemented their own individual
regulatory support schemes
in an effort to create attractive
investment environments, and
there have been many lessons
learnt, both positive and negative.
The Balkan region can learn
from the successes and failures from a wide range of
previous policy approaches.
Experience has shown that support schemes for clean
energy have been amended as governments, new and
old, adjust the level of support (often downwards)
to take into consideration the pace of market
evolvement, lower costs of technology and financing
and end-user sentiment – the voters!
The challenge for the Balkans is therefore to create a
long-term, future-proof environment to facilitate the
required investment. Short-term politics and long-term
energy infrastructure investments are incompatible.
Svetlana Cerović,
senior expert for
corporate structured
finance
UniCredit Bank
UniCredit Group is a
leading project finance advisor and manager for power
and infrastructure in Central and Eastern Europe,
and enjoys a leading market position and excellent
track record in the advisory, structuring and financing
of complex transactions. Based on the group’s
international expertise and after the establishment
of the new regulatory framework for development
projects in the renewable energy sector in 2012,
UniCredit Bank Serbia managed to finance a number
of projects, such as the construction of the first solar
plant of 2 MW in 2013 and several mini hydropower
plants since, while at the moment we are financing
one of the first small wind parks. In the last few years,
if we look at the number of projects applying for
preliminary status of a privileged producer, comparing
to total available quota, we can conclude that Serbia
has managed to create a favorable environment which
shoud enable us to attract new investments in the
energy sector. Improvement of regulatory framework
will additionally increase the growth of this sector.

Elicio appoints new manager for Serbia
October 23
Company Elicio, owner of Electrawinds S, which
develops and plans the construction of Alibunar (42
MW) and Malibuna 8 MW) wind parks in Serbia’s north
appointed Chrstophe Bols as a new manager for Serbia,
according to company’s statement. Bols, being an expert
with many years of experience in developing renewable
energy projects in Romania and France, was appointed
with a task to complete the mentioned projects and wind
parks construction.
Bols says the company is pleased with the cooperation
with all state institutions in Serbia, and that adoption
of secondary legislation is necessary for the
implementation of the project and for the construction,
in accordance with the Energy Law, which entered into
force this year. He underscored the draft regulation is a
step in the right direction compared to current rules. “We
are pleased with the proposed directives, but we have
given suggestions within the public dialogue in order to
get quality regulation, with a bankable power purchase
agreement as the most important issue. We hope that
the Ministry of Energy will soon put in a proposition for
the adoption of these documents, as it promised,” Bols
said.
Pirot upgrades energy efficiency
assisted by GIZ
October 26
First step towards the improvement of energy
efficiency is the analysis of the residential buildings
and defining which measures are needed. Head
of the Municipality of Pirot Vladan Vasić signed
a memorandum of understanding with Renate
Schindlbeck, team leader of GIZ’s project Energy
Efficiency in Buildings. The document marked the
beginning of cooperation towards the development of
a local action plan.
Pirot joined the first municipalities in Serbia – Vrbas,
Ivanjica and Sokobanja, which will have a register
of residential facilities and will be able to make
serious plans for rehabilitation, GIZ said. Local action
plans will be a good basis for the development of
rehabilitation programmes, but also for applications
with available donor and national funds, Schindlbeck
said. She stressed the memorandum predicts
experts will be hired, and that GIZ will cooperate
with local professionals. The plan is to complete the
municipality’s action plan by May of next year.
KOSOVO*
Transmission operator connects to
Continental Europe
October 2
Kostt, the operator of Kosovo’s power system, signed
a connection agreement on October 1 with the 29
transmission system operators of the Continental
Europe regional group of the European Network of
Transmission System Operators for Electricity
(Entso-E).
As in the case of Teiaş and OST, the
connection agreement does not make Kostt
a member of Entso-E.
Teiaş and OST sh. a., respectively the Turkish and
Albanian transmission system operators, which
have recently reached similar agreements with the
Continental Europe Synchronous Area, are also
signatories of the document with Kostt, Entso-E
said. Connection increases system security as more
operators can offer help to a power system operator
in difficulty, according to the press release. They also
drive electricity costs down as more power reserves
used to maintain a balance between generation and
demand can be shared. „This connection agreement
is thus a win-win situation for the electricity customers
of all signatories“, commented Peder Andreasen,
President of Entso-E. The document is based on in-
depth testing and technical checks. It also needs to
be seen in the context of the conclusions of the EU
facilitator on the implementation of the 2013 Energy
Agreement between the prime ministers of Kosovo
and Serbia. Southeastern Europe is high on Entso-E’s
interoperability and market integration agenda, and
all operators contribute to the operational, planning
and market progress pushed forward with Entso-
e’s work products“, stated Konstantin Staschus, the
organization’s secretary general.

As in the case of Teiaş and OST, the connection
agreement does not make Kostt a member of Entso-E.
It agrees to apply the specific and detailed operational
rules as all other continental European counterparts.
The signed agreement is neutral to Kosovo’s status in
relation to its declaration of independence.
In March, Kostt launched a project worth EUR 36
million using a loan from the European Bank for
Reconstruction to achieve compliance with the N-1
electricity transmission grid security criteria.
First photovoltaic plant commissioned
on local market
October 21
In the village of Gjurgjevik i Madh / Veliki Đurđević in
Klina municipality, the Ministry of Economic
Development (MED), Kosovo Energy Distribution
Services (KEDS), Energy Regulatory Office (ERO) and
Slovenian company Rudis d. o. o. Trbovlje have
commissioned the first electrical plant that generates
energy from the solar panels.
The investment was made by Rudis, with the support
of KEDS, especially for the adaptation. The system
has a capacity of 102 kW, which began generation
in March. The investor’s aim is to triple the capacity
very fast.
Stavileci: Our goal is to have 25% of
power generation from renewable energy by
2020.
„Such foreign investment is good news for Kosova.
It shows also our commitment to have alternative
electrical energy. A lot of work is done before
reaching up to this day by all stakeholders involved,
such as MED, KEDS, ERO and Rudis. All the accords
have been found and the time came when it is being
commissioned,” said George Karagutoff, general
director of KEDS.
„Our goal is to have 25% of power generation from
renewable energy by 2020. Part of it is also this solar
park. This sight is very rarely seen in our region,”
said the minister of economic development Blerand
Stavileci.
Kostt choosing consultant firm for lines,
substations
October 23
The deadline expired for expressions of interest in the
selection of implementation consultant for a project
by Kostt (Transmission, System and Market Operator
Jsc) in Prishtina/Priština. The company intends using
the proceeds of a loan from the European Bank for
Reconstruction and Development for financing.
The proposed project has a total estimated cost
of about EUR 36 million to be financed by the bank
and the company, and will require the procurement
of six gas-insulated switchgear (GIS) substations,
four power transformers, five transmission lines
and cables, and consultancy services for project
preparation, for capacity building and for project
implementation. The consultancy services will mainly
focus on contracts management supervision, project
monitoring, evaluation and reporting. Maximum
budget for the particular assignment is EUR 1.3
million, exclusive of value-added tax, EBRD said. The
assignment is expected to take place from March
2016 and last for approximately two years, plus defect
liability period of one year.
The consultant will assist Kostt with assistance in
site supervision, monitoring and reporting; testing,
commissioning and operational acceptance; and the
environmental and social action plan. The selected
firm should ensure that there is a knowledge transfer
to client in all aspects of oversight and management.

MONTENEGRO
Alstom joins submarine cable project
September 24
Installation of undersea interconnection between
Montenegro and Italy will include Alstom, according
to an article by Dnevne novine. Portal CdM reported
the French company was hired by Toshiba T&D
Europe, which is responsible of constructing two
conversion stations in Pescara in Italy and Kotor in
Montenegro. Alstom will design and install its high
voltagedirectcurrent(HVDC)transmissiontechnology
produced in Italy and the United States, the article
said.
„This project is the first electricity bridge connecting
the Balkan countries, allowing more green energy
to be introduced to the grid. This is well in line with
Alstom’s goal to incorporate more clean energy
towards a reliable and resilient European electrical
grid,” said Patrick Palas, senior vice president of
Alstom Grid.
The cable project is implemented by Terna, Italian
electricity transmission system operator, and the
Montenegrin Electric Power Transmission System
(CGES).
Abu Dhabi mulls funding pellet
production
September 24
FactoryVektraJakić,locatedinPljevljainMontenegro’s
north, is a potential user of loans from the Abu Dhabi
Fund for Development. Owner Dragan Brković said
credit support would enable the launch of pellet
production, completing the primary cycle in a lumber
system, according to a statement by the Ministry of
Agriculture and Rural Development.
„There would be 30 new jobs with the planned
investment, and the increase and upgrade in
production will open additional possibilities for
forest exploitation’s expansion in the area of wood
assortment which so far had no market valorization...
With the launch of a pellet facility we will increase
exports too, because there is a lot of interest for pellet
in European Union countries, especially Germany and
Italy. I believe we can sell our production five years in
advance in those markets,“ he said during the visit of
Hafsa Al-Ulama, the ambassador of the United Arab
Emirates. She underscored there is strong demand for
wood products in her country too and that it can be a
hub for shipments to other parts of the world.
Brković added the investment, which will complete
the needed infrastructure, enables a second phase of
development, towards the production of several final
products and openings for 180 positions for work in
sophisticated technology.
Public dialogue towards sustainability
and climate protection
September 30
The third International Conference ‘Energy.
Development. Democracy.’ was held in Podgorica,
Montenegro, under the title ‘How successful policy
dialogue can ensure sustainable use of energy and
climate protection in South-East Europe’. Members of
parliaments from countries of Southeastern Europe
(SEE), civil society leaders, experts in the field of
energy, governmental institutions and representatives
of the private sector participated at the two-day event.
Preparing for integration
The objective of the conference was the exchange
of information and ideas aimed at improving the
understanding of the dynamics and the direction of
the European Union as regards sustainable energy and
climate protection goals, yet also the understanding of
specific challenges facing each of the SEE countries
individually and as a region. Further focus was on
sharing of examples of successful development
and implementation of policies, conducted with the
support generated through public dialogue processes,
which should help the region prepare to fully integrate
into the European energy space.

The conference was opened by Ranko Krivokapić,
speaker of the Assembly of Montenegro, who stressed
the central role of parliament in public dialogue on
sustainable use of energy. The gathering led to a rather
consensual conclusion that energy is not luxury, but
the basis for development and prosperity of society,
and needs to be discussed in larger circles, with
special emphasis on SEE parliaments, civil society
organizations and the broader public, as highlighted
by Gudrun Steinacker, ambassador of Germany in
Montenegro, and Janez Kopač, director of the Energy
Community Secretariat.
Model for parliamentary hearings
The η (eta) Award 2015 was given to Aleksandar
Damjanović, chair of Montenegro’s parliamentary
Committee on Economy, Finance and Budget. The
award is granted by the Network of Schools for
Political Studies in South-East Europe, in coordination
with the Deutsche Gesellschaft für Internationalle
Zusammenarbeit (GIZ). The idea behind it is to
foster improvement of the public dialogue on
sustainable use of energy in SEE and pay tribute to
individuals for their efforts as promotors of energy
efficiency and environmental protection. Damjanović
largely contributed to the organization of the first
parliamentary hearing on energy efficiency and
sustainable use of energy in Montenegro. It served
as the model for parliamentary hearings in other
countries. In his speech at the conference, he
emphasized that true democracy cannot exist if the
voices of the citizens are not heard in decision-making
processes.
The Conference was organized as part of the regional
initiative ‘Public Dialogue on the Sustainable Use
of Energy in South-East Europe’, conducted by
the Network of the Schools of Political Studies in
South-East Europe (operating under the auspices
of the Council of Europe) with the support of the
GIZ – Open Regional Fund for South-East Europe –
Energy Efficiency, which is supported by the Federal
Ministry for Economic Cooperation and Development
(BMZ), and with the support of the German Federal
Environmental Foundation (DBU). Additional support
was provided by the Regional Cooperation Council
(RCC), Southeast Europe Association from Munich,
the Energy Community Secretariat and the Chamber
of Economy of Montenegro.
Participants’ impressions
Janez Kopač, director
of the Energy
Community
Secretariat
The Energy Community
works to develop
secure, sustainable and competitive energy markets,
and this requires strong cooperation and coordination
on different levels. The conference did just that – it
brought together a wide range of stakeholders.
This approach is necessary to transform the energy
sector in the region. The successful implementation
of energy reforms in practice requires a strong
sense of ownership of the process by all the relevant
stakeholders. I would like to especially welcome
the participation of members of parliament as their
support is absolutely essential in terms of adopting
energy reforms.
Gudrun Steinacker,
Ambassador of
Germany to
Montenegro
Energy is an important
if not crucial topic in
Southeastern Europe, and linking it with development
and democracy like in this conference seems to me of
utmost importance in view of growing authoritarian
tendencies in the region.
Dialogue on energy issues in a democracy must
include in the first place a comprehensive dialogue
with all stakeholders, parliament, government,
business, civil society and academia. In times of
economic stagnation and climate change sustainable
solutions to energy issues are of vital significance.
This dialogue is often cumbersome. The agenda of
governments in the Western Balkans regarding energy
policy is often rather driven by economic interest of
particular groups than by an analysis of public need.
Civil society is often regarded as a main impediment
to the realization of questionable and mostly not
sustainable energy projects. Non-governmental
organizations, particularly those who fight for the
protection of environment and nature, are treated as
enemies and not as partners in finding adequate and,
once again sustainable solutions. These conflicts can
only be overcome by dialogue, by sincere dialogue.
Parliaments as the most important political institution
in a democracy are the best suited place for this
dialogue.

AleksandarDamjanović,
memberoftheAssembly
ofMontenegro,chairman
oftheCommitteefor
Economy,Financeand
Budget
The award is an encouragement for me to add even
more focus and stress dilemmas concerning key
energy challenges Montenegro will face, namely the
construction of facilities by the state and the private
sector, and the adoption and full and non-selective
implementation of regulation, first and foremost the
new energy bill which the parliament still needs to
decide on.
The engagement of the assembly and the responsible
committee includes constant attention to the ongoing
investments, such as in the case of the submarine
power cable between Italy and Montenegro. Of course,
constant cooperation and a kind of coordination of
the Assembly of Montenegro with the civil society,
namely relevant non-governmental organizations
for this complex field, is necessary. In other words,
it is the condition for the aforementioned decisions
to be brought exclusively based on expert opinions
and public interest, and not based on current political
interest or preferences of individual interested
parties, whether they are in Montenegro or outside of
Montenegro.
Gazmend Turdiu,
deputy secretary
general of the Regional
Cooperation Council
Exchanging information
and ideas to improve
better understanding of dynamics and direction of
the EU and global sustainable energy and climate
protection targets are major challenges for our region.
The Regional Cooperation Council has been active in
this area, mainly through implementation of the SEE
2020 Strategy, recognizing that the greatest incentive
for regional cooperation in SEE is the prospect of
EU accession, regionalization and creation of larger
markets for attractive investing opportunities and, at
the same time, the lowest possible prices. The recent
milestone achievement in the field of energy – the
adoption of the Energy Union Strategy from February
2015 – calls for greater cooperation between the
EU and its closest neighbors, thus opening more
opportunities for cooperation with Southeastern
Europe. In spite of somewhat troubled circumstances,
Energy Union per se and its extension to SEE, is
a feasible project as long as there is sufficient
political will on all sides. Security, competitiveness
and sustainability remain the three pillars on
which Southeast European security and economic
perspectives rest.
Jasna Sekulović,
project manager of
Open Regional Fund
for South East Europe
– Energy Efficiency
Each ‘Energy.
Development. Democracy.’ conference, and this one in
Podgorica is third in the row, brings new energy into
the dialogue process on sustainable use of energy
and energy efficiency. Strongly supported by the GIZ
Open Regional Fund for SEE – Energy Efficiency,
the conferences represent a unique opportunity
for an array of SEE stakeholders (members of
parliaments, governmental officials, non-governmental
organizations, businesses, local level representatives
and experts) to gather, share experience and best
practices thus bringing new perspectives and views.
The topic of sustainable use of energy reached the
next level of perception by not being considered as
purely technical, but rather as the topic that needs
contribution of each stakeholder group with the aim
of reaching the joint welfare, both on national and
regional level.
Ksenija Petovar,
University of Belgrade
One of neglected issues is
the damage that producing
energy from fossil fuels
causes to the health of
the citizens and to the environment – the polution of
land, water and air. It is quantified and is measured
in billions of euros. The damage and losses aren’t
calculated in the price of energy coming from the
utilization of fossil fuels, so this way it still appears
that energy from fossil fuels is cheaper from the
energy from renewable sources. Another issue is that
no one will ever be held responsible for the damage,
but the expenses are borne by citizens. They pay
with their money, their health, their ill offspring, their
destroyed and worthless property, polluted soil, water
and air.
The scope and risks of energy poverty are also a
crucial subject in energy policy. Spreading out the
knowledge on the economic and technical availability
of alternative ways of heating and cooling for
residential, public and business facilities is the key
step in the engagement of citizens.

Boris Raonić, president
of Civic Alliance from
Montenegro
The conference showed
the importance of a
quality and long-term
dialogue on energy efficiency, renewable sources,
and sustainable energy use. It is exactly what we,
as a political school, of course with other schools
in the region, have been stressing intensively for
several years exactly through the project we are
implementing, including the conference that was held.
All SEE countries need expert help in this area as,
even with strong will, which is questionable, executive
authorities aren’t capable to meet all requirements
necessary for sustainable energy use and climate
change. Exactly in this context, active participation
of the civil society is necessary in the process of
creation, as well as in the field of implementation
of energy policy and environmental policy. The
conference that we organized gathered over 130
participants from more than 10 European countries:
parliamentarians, non-governmental organizations,
representatives of ministries and local authorities as
well as experts, so this was an ideal opportunity for an
exchange of opinion and ideas on the topic, but also
for getting to know examples of good practice.
Lidija Živčić, senior
expert, Reach project
from Slovenia
Even though the European Union is one of the most
developed areas in the world, it is estimated that
about 20% to 25% of its citizens suffer from energy
poverty. The situation is even more serious in the
region of SEE, where more than 30% of households
have this problem. Energy poverty is a situation where
a household struggles to, or even has no possibility
to meet basic energy needs. Most of them are of
pensioneers, the unemployed, or those who depend on
welfare. Their bad economic situation is most oftenly
paired with their homes’ weak energy efficiency.
The conference set this important subject in a visible
position and enabled the exchange of opinion through
panel discussions, to see how the problem can be
solved through cooperation of different parties.
Borko Raičević, energy
efficiency expert,
Energy Community
Secretariat
Strong promotion of
energy efficiency and
renewable energy policies is a key component of
sustainable energy future of Southeastern Europe and
the Energy Community. The third regional conference
organized in Podgorica was a good opportunity to
present the progress that’s been achieved, but also
to tackle challenging issues through the open policy
dialogue. This will support our efforts to create
adequate policy and legal framework, and further
promote harmonized approach in implementation of
existing and design of new support initiatives in this
field.
Roland Jobstl, Policy
Officer for Climate
Change European
Environmental Bureau
When we talk about
Energy, Development and
Democracy in the Western Balkan region, we must
talk about change and alternatives to the business-as-
usual. NGOs have the ability and mission to have this
structured dialogue and, if necessary, put up strong
opposition to the business-as-usual. We point at the
mistakes, we show and warn about the associated
risks. We amplify the voices of reason and translate
and repeat this message for people, politicians and
everybody beyond. If talking doesn’t help, we chose
to make it public and are ready to take legal action
in court. While we might disagree with businesses
on content, the rule of law is something where the
interest of NGOs and businesses matches. If there
is no rule of law both will fail to do their job for the
society.
Interest-free loans programme for
heating systems
October 7
Ministry of Economy of Montenegro said it received a
grant from the Government of Norway in the amount
of EUR 240.000 with the aim of implementing project
Energy Wood II, which will provide interest-free loans
for purchase and installation of modern biomass
heating systems for pellet and briquettes.
Loans are facilitated by Atlas Bank, Hipotekarna
banka, Hypo Alpe-Adria-Bank, NLB Montenegrobanka
and Prva banka. Individuals can receive up to EUR
3,500 for households, with a maximum repayment
period of five years, the ministry’s Directorate for
Energy Efficiency said.
The government granted the status of qualified
distributor and mounting agent to ten entities: Denikoo
(Podgorica), Elektrovod (Podgorica), Ening (Nikšić),
Home Systems (Podgorica), consortium of Tedeko

Solar Energy and Mazor (Tivat), M-energo inženjering
(Podgorica), consortium of Matino Company and
Grijanje (Bijelo Polje), Mikromont (Bijelo Polje),
Plam inženjering (Podgorica) and Veneta plamen
(Podgorica).
Government and A2A agree to prolong
partnership
October 15
Minister of Economy Vladimir Kavarić said the
Government of Montenegro and Italian-based
company A2A have reached an agreement on the
basic elements of future cooperation and the
extension of cooperation for five years once the
shareholders’ agreement in the Electric Power
Industry of Montenegro (EPCG) gets signed towards
the end of the year. Meanwhile, the interim agreement,
which was extended at a cabinet session by endorsing
the interim agreement annex, will be in force, he said
at a press conference.
Both sides agreed on the obligations, dynamics, and
financial framework for the construction of the block
2 of the Thermal Power Plant Pljevlja. Kavarić added
that the drafting of a business plan has also been
arranged, which will be a backbone for measuring the
EPCG’s future performance.
The Economy Minister pointed out that the
Government and A2A have also agreed on a put option
for A2A’s investment worth EUR 430 million at the
time of entering the EPCG in 2009. A2A is eligible to
initiate this option in certain specific circumstances,
and in that case Montenegro would be ready to pay
EUR 250 million in seven annual instalments for the
A2A shares in the EPCG, Minister Kavarić noted.
The deadline for agreement officially expired earlier
this year, and it was postponed four times.
Chinese firm seen for construction of
large HPPs
October 23
EconomyministerofMontenegroVladimirKavarićand
vice chairman of Norinco International Corporation
Ltd from China Wang Xinging signed a memorandum
of understanding as the basis for cooperation in the
field of energy, the ministry said. Both sides agreed
on the interest in projects of large hydropower plants
(HPPs) on the rivers of Morača and Komarnica.
The government published the draft memorandum
on cooperation with Norinco on October 8. The
document defines preconditions for the construction
of the facilities, Vijesti newspaper’s portal reported.
However, the draft document, debated on at a cabinet
session, says the memorandum can be publicized
only under provisions by law or regulation, or in a
court or arbitrary process.
The projects would be „implemented in accordance
with the existing bilateral agreement on economy and
trade... including the new bilateral agreement which
may be concluded,“ the draft says. The agreement
envisages the development of a project proposal,
with the possibility for cooperation to expand
to construction of HPPs. Norinco would assist
Montenegro financing from China and its banks.
The agreement envisages the
development of a project proposal, with
the possibility for cooperation to expand to
construction of HPPs.
Non-governmental organization Green Home said the
memorandum proposal openly violates postulates
of transparency and public interest. The government
is ignoring independent studies which showed the
projects are inadequate and not cost effective, the
press release said, portal CdM reported.
Earlier this year, an initiative was launched for a
trilateral memorandum of understanding between
Ministry of Foreign Affairs of Slovenia, Ministry of
Economy of Montenegro and Ministry of Forestry and
Water Management of Turkey, for the chain of HPPs
on Morača. The signing, announced for September 1,
was postponed.

CROATIA
Up to third of company’s demand
covered by solar
September 22
Croatia Control Ltd (CCL) said it installed a 345 kW
photovoltaic facility on the roof of its parking lot in
September. In the summer months the company will
supply one-third of daily power consumption at its
headquarters in Velika Gorica from the solar panels.
The project is worth EUR 350.000, the press release
said.
The air navigation service provider said it is one of
the first in its branch in Europe to use the renewable
energy source generating this much electric power
for its business operations. Peak load varies from
500 kW in winter to 800 kW in summer because of
more electrical load in the summer months due to the
stringent air-conditioning regime applied to technical
and operational facilities, Croatia Control said.
Flamtron d. o. o. from Kutina was hired for the overall
project, with EMGD d. o. o. from the same town as the
subcontractor.
RP Global erects its second wind power
plant
September 27
Wind power plant at Lisačke Rudine near Croatian
coastal city of Dubrovnik was completed. Slobodna
Dalmacija newspaper’s portal said the EUR 42.5
million worth system of 12 turbines is finished
on September 5. In the words of Bojan Reščec, the
head of the facility and of RP Global projekti d. o. o.,
the technical review is being prepared. The works
started in September of last year in cooperation with
Adria Wind Power d. o. o. from Sesvete. Construction
was the responsibility of Kamgrad d. o. o., which had
participated in the Velika glava wind power project
near Šibenik by the same investor.
General Electric’s turbines are 85 metres high and
have blades of 51.5 metres. The contract includes 15
years of maintenance. The power plant’s capacity is
34.2 MW and planned yearly generation is 85 GWh.
The location permit had been obtained in 2009 and
the delay came in relation to quota to be awarded by
the national transmission operator, the article said.
The International Finance Corporation provided a
EUR 18.9 million loan to the local project company,
which is majority owned by RP Global Holding from
Austria. IFC mobilized an additional EUR 23.6 million
from UniCredit Bank Austria through a syndicated
loan, while the announcement from September of last
year said the estimated value of the project is EUR 53
million.
New guide out for public policy on
energy efficiency
October 21
Society for Sustainable Development Design (DOOR),
based in Zagreb, said a guidebook called ’How to
Participate Efficiently’ has been published, covering
the creation of public policy on energy efficiency.
The document brings a concise digest of ideas,
recommendations, methods and experiences of
organizations active in public policy on energy
efficiency. It is devised as a series of advices on how
to incite and organize public dialogue, with chapters
for state administration, local authorities and civil
society organizations.
DOOR assists local and state authorities in sustainable
energy politics and solutions, with the involvement
of the interested public. The non-governmental
organization said it supports social and business
initiatives and partnerships in the field, ones which
could be a trigger for social, economic and ecological
development, and poverty reduction.
The document in English can be downloaded as a
regular version, or for tablet devices.

EBRD awards nine sustainable energy
projects
October 22
The European Bank for Reconstruction and
Development (EBRD) promoted energy efficiency and
renewable energy in Croatia’s capital Zagreb by
recognising nine outstanding projects financed under
the Western Balkans Sustainable Energy Finance
Facility II (WeBSEFF II).
The 2015 Sustainable Energy Excellence Awards
ceremony hosted by the EBRD took place at the
Esplanade hotel. Outstanding investments promoting
energy efficiency and low-carbon technologies in the
commercial, residential and municipal sectors were
recognised at the event, attended by local authorities,
international institutions, the diplomatic community
as well as EBRD’s partner banks and local companies.
Company Brod-plin was awarded in the category of
energy efficiency in the public sector. Its project was
financed through WeBSEFF by Zagrebačka banka,
Croatia.
IEE from Bosnia and Herzegovina was awarded for
successful use of renewable energy in the public
sector, and the company’s endeavour was financed
by UniCredit Bank, Bosnia and Herzegovina. For
utilization of advanced technology in the production
process for the improvement of energy efficiency,
company Krupa-kabine from Bosnia and Herzegovina
was awarded for a project financed through WeBSEFF
by Raiffeisen Bank’s branch in the country.
Kiro Dandaro from FYR Macedonia received
recognition for the improvement of energy efficiency
in the production process for the better protection of
the environment, financed by Ohridska banka. In the
category of improvement of the production process
to enable energy savings and scrap reduction, the
awarded project was by FMB from Serbia. The project
was financed through WeBSEFF by Banca Intesa.
Farm of Miodrag Radanov from Serbia had the best
improvement of energy efficiency in agricultural
production. The project was financed by Komercijalna
banka.
For the energy efficiency refurbishment of business
buildings, the award went to Alkaloid, for a project
financed by NLB Tutunska banka in Macedonia.
Privredna banka Zagreb financed company Komuščak
for the awarded project of energy efficiency
refurbishment of a residential building.
Sense Esco from Croatia received recognition for its
ESCO project, financed through WeBSEFF by Erste
Bank.
EBRD said it also awarded Sustainable Energy
Excellence Awards to all nine partner banks, in
recognition of their work in bringing sustainable
energy financing opportunities to their customers.
WeBSEFF II is a EUR 92 million
framework providing longer-term financing
to local banks in Bosnia and Herzegovina,
Croatia, Macedonia and Serbia to on-lend
for eligible projects and is complemented by
technical assistance and investment grants
funded by the European Union.
Under WeBSEFF II, the bank is supporting a regional
approach to sustainable use and conservation of
energy. The EUR 92 million framework is providing
longer-term financing to local banks in Bosnia and
Herzegovina, Croatia, Macedonia and Serbia to on-
lend for eligible projects and is complemented by
technical assistance and investment grants funded
by the European Union. So far, banks have on-lent EUR
42.27 million to 162 companies for financing energy
efficiency improvements with a combined value of
about EUR 52.27 million. These projects led to annual
total equivalent primary energy savings of 386.7 GWh
per year and of 205,028 tonnes of carbon dioxide per
year. These are equivalent of the energy consumption
of the buildings of a city of about 25,000 inhabitants
for an entire year, and the equivalent of taking 30,000
passenger cars off the roads in the period.
EBRD said it recently adopted a new approach to scale
up its financing to tackle the climate change over the
next four years ahead the COP21 in Paris. Under the
new Green Economy Transition approach, the bank is
aiming to step up its green financing to around EUR 18
billion or 40% of its total annual investment by 2020.

SLOVENIA
Renewables’ share in consumption cut
by mild winter
October 9
Final energy consumption fell by 4.4% last year to
4.67 millions of tonnes of oil equivalent, Statistical
Office of the Republic of Slovenia said. The decrease
was caused by a warmer winter, as the two sharpest
decreases were those of district heat (by 16%) and
of fuel wood consumption (by 19%). There was
an overall 11% fall in consumption of energy from
renewable sources, which had a share of 13.7% last
year. There was a smaller decrease of consumption
of energy natural gas and petroleum and of solid fuels,
but heating oil had a steep drop of 21% on the year.
In Slovenia almost half of final energy in 2014 was
consumed in the form of petroleum products, namely
47.4%., and the second highest share was that of
electricity (23.1%). Renewables are followed by natural
gas (11.3%), heat (3.3%) and solid fuels (1.1%).
Most of the energy in households was consumed
for space heating (61%). Total energy consumption
decreased by 14% from 2013. Wood fuels prevailed
among consumed energy sources with a 42% share
of the overall 43,558 terajoules in total. Solar energy
contributed 455 terajoules, mostly for water heating,
while the 703 terajoules from ambient heat, captured
by heat pumps, were split between space and water
heating. Both categories had an increase by 4%.
Gross production of power rose from 16.1 TWh to
17.4 TWh year on year, with hydro facilities recording
a rise of over 1.4 TWh to 6.6 TWh.
Last year Slovenia met a record 56% of domestic
energy demand with its own resources, due to a
favourable hydrological situation. Hydroelectric
generation was at a record high; 32% higher than in
2013 and twice as high as in the drought-stricken
2003, the report said. Renewables contributed with
19% in the total energy supply.
There was an increase in total use of industrial
waste, a non-renewable source, from 1,453 to 1,809
terajoules, while the use of wood overall and other
solid waste fell from 26,302 to 23,441 terajoules from
2013. The use of biodiesel was cut by more than 30%
to 329 terajoules.
Electric surge protector makers sold to
Greek group
October 15
Otmar Zorn, one of the richest Slovenians, said he sold
IskraZaščited.o.o.andVarsid.o.o.toRaycapGmbH,
and that this will allow its further growth through
a better sales network. Two Slovenian companies
producing electric surge protector components were
taken over by the German and Greek group, which
makes protector systems, business daily Finance
said.
Details were not revealed, according to an article
published by Slovenia Times. The owner believes
that many synergies can be created; together the
companies have a lot of intellectual capital and
patents. The strategic acquisition of surge protection
manufacturer and innovator Iskra Zaščite expands
Raycap’s offering in state-of-the-art surge protection
technology, bringing a whole new suite of products
and solutions to customers worldwide,” said Kostas
Samaras, chief executive of Raycap.
The investor secures facilities like wind
power plants, airport radars, and railways.
Varsi, metal oxide varistor (MOV) developer and largest
European manufacturer, will grow and will be invested
in to strengthen its position as an independent
supplier to the surge protection industry, he stated.
The investor secures facilities like wind power plants,
airport radars, and railways, Samaras added.
No major staffing changes are planned. Iskra Zaščite
and Varsi have a total of 250 employees, while Raycap
has 450 in Greece, Germany, the United States and
Romania. “Our goal in Ljubljana is growth,” Samaras
said. Raycap, founded in 1987, is owned by Kostas
Apostolidis. Last year it generated EUR 160 million in
revenue; combined with the Slovenian companies the
figure stands at EUR 200 million, the article said.
Electric surge protectors are used in large systems,
mainly produced by big global players such as ABB,
General Eletric and Siemens, for which it is easiest to
buy the entire surge protector system from a single
producer, Finance also said.

BOSNIA AND
HERZEGOVINA
Energy efficiency certificate for new
housing project
September 21
Enova,anindependentcertifyingagencyforresidential
buldings, issued an energy certificate for Miljacka
project, which is being built in Sarajevo, developing
company MS&Wood d. d. said. From 2013 the
certificate is obligatory for all new objects and old
public buildings.
Units in Miljacka quarter, named after Sarajevo’s main
river, have façade insulation 15 centimetres thick,
as well as thermal insulation between apartments
and towards corridors. Windows with PVC frames
have three glass layers, which is one of the first such
applications in Bosnia and Herzegovina. Flats have
individual calorimeters and water metres. Sarajevo
needs a revolution when it comes to solving the
greatest causes of air pollution, the biggest one being
energy inefficient apartments, said Hrusto Tupeković,
head of Miljacka project. When BiH joins the European
Union, it won’t be possible to sell flats and houses
without the certificate, he underscored.
Concession signed for Hrgud wind
power plant
September 28
Petar Đokić, minister of industry, energy and mining
of the Republic of Srpska, and Branislava Milekić,
general manager of the state-controlled power
utility Elektroprivreda Republike Srpske (ERS),
signed a concession agreement for the construction
and operation of wind plant Hrgud in Berkovići
municipality. The value of the project located in Bosnia
and Herzegovina’s south amounts to BAM 127 million
(EUR 64.9 million), the entity’s government said.
Đokić said the plant will have installed capacity of 48
MW with 16 turbines. He added it would be financed
by German development bank KfW with a EUR 60
million loan, while ERS would provide EUR 4.28 million
for implementation. The government completed the
negotiating procedure and awarded the concession
to ERS, the minister stated. He recalled that a
detailed research had been performed in the region
of Herzegovina, revealing the location. This will be the
first facility of this type in BiH, Đokić said.
The concession has been granted for a period of 50
years. He said he expected for the concrete works on
the construction of that facility to be done in 2017.
Milekić said the signing of the concession was a
starting point towards the conclusion of an agreement
with KfW.
World Bank backs energy efficiency
project
September 28
The environment ministry of the Republic of Srpska
said it signed a memorandum of understanding with
the entity’s health and education ministries and
representatives of 11 municipalities, within an energy
efficiency project funded with World Bank’s loans,
SeeNews reports.
Srpska has been allocated USD 12.8 million (EUR 11.6
million). Project activities include improvements of
energy efficiency in approximately 35 public buildings

throughout the entity and the development of scalable
financing models, the ministry said in a press release.
A total of 11 tenders have already been granted under
this project – three in the field of health and eight in
education and culture. The World Bank’s board of
executive directors approved a credit in the amount
of EUR 29.04 million for the Bosnia and Herzegovina
Energy Efficiency Project in 2014. BiH is made up of
two autonomous entities, the The Federation of BiH
Serb and the Republic of Srpska.
Italian investor starting pellet
production in Srbac
October 5
Geo. Pellet d. o. o., registered in Banja Luka and run by
investors from Padua and Trieste, is planning to open
a pellet factory in the municipality of Srbac, located at
Bosnia and Herzegovina’s northern border. Glas
Srpske newspaper’s portal said the facilities of G&A
Koligas d. o. o., former Greek investment in the village
of Sitneši, will be equipped by the end of 2015.
The first machines could be put to work
in November, while the plan is to get full
capacity going in January.
Municipality chief Drago Ćirić said the company will
employ 25 people and that it will have a revenue of
BAM 5 million (EUR 2.56 million) a year. Ten workers
are already hired for construction and installation of a
power substation and the silos, he said, adding local
firms supply the material. The first machines could be
put to work in November, while the plan is to get full
capacity going in January, Glas Srpske added.
According to media reports, the owners bought the
buildings from Sberbank as Koligas’s mortgage, and
the factory is planned for 15,000 tonnes of pellet a
year, mostly for the Italian market. The demand for
the factory’s planned capacity is 45,000 cubic metres
of wood per year, where 30% would be supplied by
the public forest enterprise of the Republic of Srpska
entity and 30% from neighbouring Croatia, while the
rest would come from local suppliers.
The Srbac village of Pribiljevci has had a pellet factory
for a decade now, manufacturing from sawdust and
waste wood. Ensa BH d. o. o. employs 40 people,
Glas Srpske said, adding the company was bought
from Slovenian owners two years ago by five workers,
saving the factory from bankruptcy.
After a return visit of a Luxembourg-based investment
fund’s representatives to Srbac, financial support
was announced from the Grand Duchy to start two
enterprises, one of which would produce electricity
and heat, and the other one vegetables in greenhouses,
Radio Srbac said in June.
Eol prvi seeks extention for wind project
deadline
October 5
A holder of a 30-year concession for the construction
of a 51 MW wind park in the Republic of Srpska, worth
BAM 150 million (EUR 76.7 million), has asked for an
extension of the deadline for the project’s completion,
according to news daily Nezavisne novine, SeeNews
reports.
The project is funded by Kermas Limited,
headed by Darko Končar and based in Britain.
Concession company Eol prvi d. o. o. from Nevesinje
is late in performing the construction works for wind
park at Trusina mountain near the town in Bosnia and
Herzegovina’s southeast. The project is funded by
Kermas Limited, headed by Darko Končar and based
in Britain, according to the schedule set out in the
agreement with the government.
Local media earlier reported that the construction of
the Trusina wind park should have been completed
last year. However, 2018 is now considered as the
most probable completion date for the technical
works, Srpska’s energy authorities say.

According to Zlatko Mandžuka, who heads Eol prvi, the
company is late in signing a grid connection contract
with Elektroprenos-Elektroprijenos BiH a. d. Banja
Luka, the national transmission utility, due to damage
from the past war and the disagreements between
that company and Elektroprivreda RS, Srpska’s power
utility, on how to add the power plant. He reminded
the entity’s government gave the goahead for Kermas
to become the owner of 87% of the concession and
finance the project with the help of a bank.
Once completed, the wind farm is expected to
produce 160 GWh per year, enough to power 40,000
households.
Young inventor’s LED lamps save up to
70% of energy
October 12
Zlatan Imamović from Lukavac and his father decided
to start a business of the future – production of LED
lamps which cost down to half the market price.
The idea appeared after his father, who had a small
audio and video repair service business, lost his job
after 24 years because of rapid progress of technology,
portal Klix.ba said. Imamović is only 25, however he
has a high quality product on the market, created and
designed in the northeast of Bosnia and Herzegovina,
in LED Vision d. o. o., Sarajevo Times reported.
LED Vision has over 15 products and
owns EXP certificate for operation in places
with dangerous material.
Together with his father Alija, he produced the first
and highest quality LED lamps in BiH, recognizable
in so many ways, the report said. Imamović, now
the company chief, emphasized they have been
developing the idea for three years. They contacted
renowned producers and got coolers, aluminium and
LED diodes – components for their final product.
According to Imamović, they are cooperating with the
strongest companies, such as Osram, Meanwell and
BAG.
LED television sets consume three times less
electricity than LCDs, which use neon, he said and
added the idea started from there. LED Vision has over
15 products and owns EXP certificate for operation
in places with dangerous material. Imamović says
the best client is the Hifa Petrol station, and that
companies from Switzerland and Belgium have called
about orders.
Germany writes off EUR 20 million from
debt of BiH
October 12
After it met the relevant prerequisite by investing EUR
4 million in the rehabilitation of hydropower plants of
Trebinje and Rama, Bosnia and Herzegovina had EUR
20 million of its debt written off by Germany.
There is still potential in renewable
energy sources, which are very significant for
development, according to the embassy.
The government in Berlin had pledged to the move if
BiH invests a set amount in the advancement of its
renewables sector, the country’s embassy in Sarajevo
said in a statement made available to SeeNews.
Ambassador Christian Hellbach welcomed the
strengthening of financial cooperation between the
two countries and said that by encouraging Bosnia
and Herzegovina to invest in its renewable energy
sector, Germany has „indirectly contributed to
climate protection,” the press release adds. There is
still potential in the field, which is very significant for
development, according to the embassy.
So far, Germany has made EUR 750 million available
to BiH within the financial cooperation programme,
the embassy said.
Paper producer Natron-Hayat starts
CHP project
October 13
The energy ministry of the Federation of Bosnia and
Herzegovina said local paper mill operator Natron-
Hayat d. o. o. from Maglaj has applied for an energy
permit for a biomass-fired combined heat and
power (CHP) plant, SeeNews reports. The company,
subsidiary of a member of Hayat Holding Group
from Turkey, plans to build a facility with heat energy
capacity of 35 MW and electric output of 8.1 MW,

with an estimated annual production of 30 GW of
heating energy and 64.2 GW of electricity, the ministry
said in a statement.
The document revealed energy permit applications
were also filed by EKO-REM d. o. o. from Sarajevo for
a small hydropower plant of 380 kW, named Kosova,
and by developers of nine solar facilities from 23 kW
to 150 kW.
The Federation of BiH is one of the two autonomous
entities that make up the country. The other one is the
Republic of Srpska.
Damages of EUR 23.5 million claimed
for hydro project
October 21
Lawyer firm Baroš, representing concessionaire
HES Vrbas a. d., said its claim for damages from the
Government of the Republic of Srpska is legitimate
and that its initiatives for the resolvement of the
dispute have been ignored by the authorities, Buka
portal reported. The government in Banja Luka
received no official claim for damages related to the
contract for the construction of two hydropower
plants on the Vrbas river, the entity’s energy ministry
said earlier, adding the conditions to terminate the
contract are „very complicated”. HES Vrbas had said
it sent its statement on the termination on September
29, while the damages claim for BAM 46 million (EUR
23.5 million) was reportedly filed on October 19.
The agreement on the construction of the
48.5 MW Krupa hydropower plant and the
37.2 Banja Luka – niska facility was signed
in November 2004, and valued at EUR 164.7
million.
The agreement on the construction of the 48.5
MW Krupa hydropower plant and the 37.2 Banja
Luka – niska facility was signed in November 2004,
and valued at EUR 164.7 million. The concession
period was supposed to be 25 years, after four and
a half years of construction. Under the pressure of a
subsequent public campaign by a coalition of over 30
non-governmental organizations, and almost 20,000
signatures in a petition, the Banja Luka City Assembly
adopted a resolution in 2005 to oppose the project,
which made it unfeasable, according to the Center
for Environment (CZŽS), an environmentalist group.
It issued a statement in early October, praising the
termination of the contract. Center for Environment
claims the community had been excluded from the
concession granting process 11 years ago and that
several entity laws were broken at the time.
The company, registered in Krupa na Vrbasu, claims it
fulfilled all its obligations from the contract, and that
one fifth from the damages claim relates to what it
invested, while the rest is for revenue lost in the last
five years when the power plants were supposed to be
active. The lawyers, asked by Buka’s reporters on the
issue concerning the environment, said the Republic’s
interest is above local interest.
An international arbitrage will probably resolve the
dispute, even though HES Vrbas is still ready to
negotiate, Al Jazeera agency’s portal reported, adding
the company is owned by investors from Slovenia,
Serbia and Germany. The government granted a
concession to Hidroelektrane na Vrbasu a. d. from
the town of Mrkonjić Grad to build the Bočac 2 hydro
power plant, which interferes with the concession,
accordingtolawyerPredragBaroš.Heunderscoredthe
other contract places the burden of a damages claim
from HES Vrbas on that operator, and that this means
Srpska’s government recognizes its responsibility.
The energy ministry denies it is in breach of contract,
stressing HES Vrbas failed to respond to many of its
objections. The company was never able to close
the financial construction for the project, the energy
ministry said, according to Al Jazeera, which added
details of the contract are still unknown.
Miodrag Dakić from the Center for Environment said
Srpska was entitled to about EUR 7.67 million, but that
the sum is negligible in comparison to the investor’s
profit. Furthermore, there was an issue of the effect
on the quality of Banja Luka’s drinking water, but now
Vrbas river canyon is saved, he said. However, Dakić
admits the same cannot be said of the entity’s budget,
and adds there are hundreds of concessions for
hydropower projects which were never launched.

ROMANIA
Heat allocators save EUR 17 million
September 21
A study by Ista Romania, a company specialized in
providing individual metering systems, shows that
residents with heat allocators in their homes saved
over EUR 17 million, Business Review’s website
reported. Calculations were based on data from
heating agent distributor Radet Bucharest, measured
between October 2014 and April 2015. The cost is
31.4% lower than the ones of unmetered apartments,
the article said. According to Ista Romania, if all
apartments in Bucharest would have heat allocators,
savings would be at least EUR 36.2 million.
Although the law requires thermal meters to be
installed by December 2016, only 47 percent of
households in Romania’s capital have them. Allocators
can be amortized in approximately two heating
seasons,” said Marian Sisu, head of Ista Romania.
Romania has one of the lowest levels of metering in
Europe, only 41%, Business Review reported. Over 1.3
million apartments are connected to central heating.
Embezzlement probe at wind power
operators
September 24
Prosecutors from the National Anticorruption
Directorate (DNA) Suceava conducted a search at
headquarters of two companies in Bacău county
for suspicion that European funds of EUR 2 million
were embezzled, Romanian news agency Act Media
reported. The exact amount will be established
following evaluations on materials found, said DNA
spokesperson Livia Săplăcan. The beneficiary of
European funds for wind parks had carried out
activities through intermediate firms, the authorities
said. In the purchase of wind turbines from Aida Srl,
part of the transaction was from Electro Metal, at
the price of RON 43,400 (EUR 9,834), says an invoice
issued by Kokotas Nicol Srl, investigators added.
Some of the goods were bought by Electro Metal from
Alternative Pure Energy, thre report adds.
Electro Metal delivered electric equipment worth EUR
35,350 from Alternative Pure Energy and Electrovolt
to Kokotas Nicol. The goods were not sold again
and there were no documents proving the debt was
recovered, a fact creating doubts about the reality of
thosecommercialrelations,thearticlesaid.Alternative
Pure Energy carried out direct commercial relations
with Aida Srl, while Electro Metal and Kokotas Nicol
were used as screen companies.
Hidroelectrica throws discount in sale
of SHPPs
October 5
Hydro facilities with a total installed power of 25.7 MW
are set to be sold at auctions from November 23 to
26, Hidroelectrica SA said. The biggest state-owned
power producer announced the small hydropower
plants (SHPPs) will be priced with a reduction of RON
13 million (EUR 2.94 million) or 20% in comparison to
previous auctions, where they were offered for a total
of EUR 18.85 million.
So far 28 SHPPs were sold for a total of EUR 18
million, according to an article in Business Review.
The assets are divided in 22 packages and are located
in the counties of Valcea, Suceava, Bacău, Neamţ,
Hunedoara, Braşov, Arad, Sibiu, Argeş, Buzău, Vrancea,
Maramureş and Timiş. The deadline for applications
is November 13. The value of the tender guarantee
is 10% of the start price. A purchaser is required to
assume any existing program of investments for
environmental protection.
Hidroelectrica SA, insolvent for the second time, took
RON 1.7 million (EUR 380,000) for the one of only two
small hydro facilities it sold from the 34 that were put
on sale by auction in July.
Exemptions for green certificates for 19
companies
October 15
The Ministry of Economy, Commerce and Tourism has
granted 19 energy intensive companies agreements
for exemption from a part of the number of green
certificates in the mandatory quota, Business Review
magazine reported. Some get exemptions between
40% and 85% in order to keep their competitiveness.
Earlier, renewable energy association Patres said
the green certificate market is collapsing, with no
registered transactions in May and June, affecting
especially small and medium producers.

Maricel Popa, secretary of state in the Ministry of
Economy, expressed hope that operators supported
by exemption will keep their employees, invest in
modernization and refurbishment, support young
workforce and increase energy efficiency, reducing the
technology gap with the competition in the European
Union. He added the exemption is valid for 10 years,
but that it will be monitored annually. Companies in
question operate in the fields of chemical fertilizers
production, recycling, steel industry, cement, paper
and cardboard.
Patres said there is a major reduction in the annual
mandatory quota of electricity produced from
renewable energy versus the values set out in law:
to 11.1% from 15% in 2014, and to 11.9% compared
to 16% for this year. According to energy and gas
market regulator ANRE, in late 2014 the total number
of green certificates issued through the support
scheme was 12.7 million fewer than the quota
estimated by the institution at the beginning of the
year – 17.6 million, the article adds. Zoltán Nagy-Bege,
member of the regulatory committee, said suppliers’
mandatory quota is 10.89 million certificates, which
led to an oversupply of 1.75 million. Some 4.6 million
certificates are left unsold from last year.
OMV Petrom selling wind farm in
Dobruja?
October 16
OMV Petrom SA plans to sell the 45 MW wind power
plant it holds in Dobruja, as part of a larger plan to
optimize business following the global drops in oil
price, Mediafax announced. The report, published by
Business Review magazine, adds the facility was built
in 2011 from an investment of EUR 90 million.
Recent measures halved the number of green
certificates, compelling investors to look for other
options and to cut expenses. Monsson Group said
in August it is taking down its 27 MW wind farm in
Târgușor in Constanța county. Electrica SA revealed
it is considering outsourcing both of its wind power
projects due to adverse changes in the renewable
sources regime.
BULGARIA
IBEX power market starts in December?
September 29
The Bulgarian energy exchange, a basis for the full
liberalization of the country’s market, may be launched
in early December. Most of all, this is strengthening
competition between producers and traders, said
Ivan Ivanov, chairperson of the Energy and Water
Regulatory Commission (EWRC). „In the second place,
this is the free choice of the consumers, the industrial
consumers in particular, but also of the household
consumers. The third thing is the price,” the official
explained at a conference, according to Focus
Information Agency.
The Independent Bulgarian Energy Exchange (IBEX)
is a subsidiary of the state-owned Bulgarian Energy
Holding. It aims to operate a market in the power
engineering field with energy products, using the
Euphemia algorithm. The delay in planned launch
was due to the government’s stance to protect power
generating companies and the local market, according
to Radio Bulgaria. The exchange would, depending
on the outcome of ongoing talks, initially trade
power from Kozloduy nuclear power plant, Maritsa
Iztok 2 thermal power plant and the hydropower
plants. Registered dealers will be able to buy and
resell energy one day in advance, the report said.
Households would have access to the market from
March. The market will provide a referential price, said
Konstantin Konstantinov, the executive director of
IBEX. Distribution companies still need to be obliged
by EWRC to buy the so-called grid losses through the
platform, he added. Price coupling of regions and
multiregional coupling are planned for the time after
the establishment of intraday trading, Konstantinov
said.
Martin Vladimirov from the Center for the Study
of Democracy suggested that businesses were
benefitting from „artificially low prices, which could

increase,“ Novinite agency reported. Upon the opening
of the electricity exchange the Bulgarian and Greek
exchanges will gradually link up, thereby freeing up
electricityflowsinbothdirectionsandpossiblycausing
the price of electricity for businesses in Bulgaria to
increase, he stated. Anton Ivanov from the Bulgarian
Energy and Mining Forum argued that the opening of
the market would not necessarily lead to price hikes.
„The electricity exchange provides an opportunity for
a union with neighboring markets. However, this union
will not start functioning automatically. It is subject to
special regimes of specification of the volumes of
electricity traded on the respective exchange. Why
talk about a Greek market and a Greek exchange? A
union may be sought with markets up north, where
energy costs less. That is to say, this will be a matter
of choice,” he noted.
Energy Minister Temenuzhka Petkova said the status
of the National Electric Company (NEK), which was a
public supplier, the only buyer of generated electricity,
would be changed by the end of the year.
IBEX said in April it signed a cooperation agreement
with power market Nord Pool Spot aimed at setting
up and running the exchange.
Solarpro Holding turns to consolidated
net profit
September 29
Bulgarian provider of products and services for
the solar industry Solarpro Holding reported a
consolidated net profit of BGN 831,000 (EUR 425,000)
in the first three months of 2015, compared to a net
loss of EUR 660,000 million a year earlier, SeeNews
said.
The company’s sales revenues more than halved to
EUR 840,000 in the first quarter, compared to EUR
1.84 million from the same period of last year, it said
in a financial report filed with the Bulgarian Stock
Exchange. Expenditures shrank to EUR 970,000 in
the period under review, from EUR 2.86 million in the
corresponding three months of 2014.
Bulgarian industrial and financial group Alfa Finance
Holding holds a 45.5% stake in Solarpro Holding,
which also operates in Romania and Macedonia.
MACEDONIA
Analysis for efficient heating of
households
September 22
USAID Clean Energy Investment Project and the
air conditioning, heating, cooling and ventilation
group within the Chamber of Commerce organized
a presentation of the Analysis for Efficient Biomass
CombustionandHeatingofHouseholds.Theaudience
were local producers of different types of biomass
stoves and other heating devices, representatives
from the academia and other subject area experts.
The analysis, produced with technical assistance
from the USAID project, has a goal to offer measures
to address the needs for heating of residential areas,
specifically households, while improving energy
efficiency and reducing greenhouse gas emissions,
both locally and globally. The main focus of the
analysis is on biomass stoves, which currently in
Macedonia are 17 years old on average, according
to a World Bank assessment. Although biomass
is a renewable source of energy, it can’t be used in
indefinite quantities without any cautionary measures.
The main focus of the analysis are
biomass stoves, which currently in
Macedonia are 17 years old on average,
according to a World Bank assessment.
The analysis emphasizes the fact that Macedonia
should strive towards attaining highest possible
efficiency in biomass consumption. In addition to
elaborating the households’ energy consumption in
Macedonia, the analysis also includes a case study
on average household’s heating energy needs, and
an assessment of the economic and social aspects
of the replacement of old, inefficient stoves. It also
provides info on the available technologies on the
Macedonian market in this respect.
The overall goal for Macedonia is to improve
energy efficiency, to increase the appropriate use
of renewables, to promote the use of new efficient
technologies, to raise public awareness in this
respect, to consider introducing stimulative measures
to replace stoves with new, more efficient ones, and
to stimulate the local production of efficient biomass
stoves. All of these proposed activities should result in
enhanced quality of living for householders and ability
to heat larger quantities of residential areas with lower
quantities of biomass.

Power link to Albania to be financed by
EBRD
September 23
Development published a project summary document
in which it states it is considering to extend a senior
corporate loan of up to EUR 40 million to MEPSO,
Electricity Transmission System Operator of
Macedonia, to fund the country’s part of the
transmission line with Albania.
The project entails the construction of electricity
transmission infrastructure from Bitola to the
Albanian border, with a substation at Ohrid and the
introduction of smart grid components. This is the
missing link in the initiative to establish a corridor
between Bulgaria, Macedonia, Albania, Montenegro
and Italy, the document said. The section between
Bulgaria and Macedonia has been completed. Albania
and Montenegro are connected by a new 400 kV line
and the construction of a submarine cable between
Italy and Montenegro is underway, supported in
Montenegro by the Lastva–Pljevlja line project, EBRD
stated. The project is a key link for the integration of
Europe’s electricity markets, the paper adds.
The Macedonia–Albania transmission line is one of
European Union’s priority projects, expected to receive
an investment grant from the IPA 2015 programming
exercise amounting to EUR 12 million, EBRD added.
This includes EUR 6 million for MEPSO’s equity
commitment and EUR 3 million to finance smart grid
components.
Sixth renewable energy stakeholders’
forum
October 9
USAID Clean Energy Investment Project, Renewable
Energy Association within the Chamber of Commerce
and the International Finance Corporation’s (IFC)
Balkan Renewable Energy Program organized the 6th
Renewable Energy Stakeholders’ Forum in Skopje.
The forums represent a new mechanism for public
private dialogue in the field. They gather stakeholders
in the area, including project developers, investors,
representatives of relevant ministries, agencies,
academia, non-governmental organizations and
international donors.
Within the first panel, called ‘Financing and
insuring renewable energy projects’, experiences
and opportunities for financing and insuring the
construction and operation of small power plants
in Macedonia and in the region were presented.
Representative of the local NLB Tutunska banka
stressed positive experiences in financing renewable
energy projects, which was decisive for the decision
to continue allocating own or funds from the
for this type of projects. Representatives of Intesa
Sanpaolo Bank Albania and the IFC gave the regional
financing perspectives, emphasizing the uncertain or
incomplete legal framework in the energy sector and
the investors’ overestimation of project’s return on
investment (ROI) as biggest risks for the creditors.
A local insurance expert explained why and what
investors should insure.
Second panel, ‘Investments in biogas and biomass
as alternative energy sources – potentials and
experiences’, focused on the current state of affairs
and the potentials of biogas and biomass as
alternative energy sources in Macedonia. The initial
presentation provided general statistical data and
forecast for investments and electricity production.
A representative of Elektro Sharri, the first biogas
power plant in Macedonia, presented their experience
and plans for the future, while a professor from the
Forestry Faculty gave an overview of the biomass
sector and technology, as well as the issues potential
investors have to deal with to enter this market.
Presentations and discussions, as was the case
with the previous forums, might lead to taking
specific initiatives to improve the legal and regulatory
framework for investments in this area.

GREECE
Public Power Corporation won’t be
privatized further
September 28
There are no plans for the state’s share in Public Power
Corporation (PPC) to diminish, according to Panos
Skourletis, minister for productive reconstruction,
energy and environment, Greek Reporter portal said.
He addressed the future of the government-controlled
utility and the future of energy in Greece during an
interview with RealFM 97.8 radio station.
The state currently owns 51%, and the remainer is
controlled by private holders. Skourletis noted that
PPC, or DEI in the Greek acronym, produces 80%
of national power output, according to the Hellenic
Republic Asset Development Fund (Taiped), which
owns 17% of the 51% state share. The previous Syriza-
Anel government had halted plans for PPC’s further
privatization.
Greece’s Independent Power Transmission Operator
(Admie) is also a matter of concern in the third
memorandum with the creditors, the article said.
Admie is owned by PPC. A privatization process of
Admie had begun in 2013 and four final candidates had
been shortlisted for a 66% stake takeover. However,
the government had stopped negotiations following
its ascent to power in January 2015. The new Greek
bailout arrangement calls for the resumption of the
privatization process.
A new energy utility company should be constructed,
but it should also remain state-owned, Skourletis said.
The minister had denied the possibility of Admie’s
privatization back in July 2015.
New venture Metka EGN expands solar
portfolio
October 6
Mytilineos group member Metka SA announced the
establishment of a new subsidiary firm, Metka EGN,
through a joint venture with the Egnatia Group, with
the aim of bolstering its portfolio, including in the
solar energy market. The international engineering,
procurement and construction contractor (EPC) and
industrial manufacturing group, active within the
energy, infrastructure and defense sectors, holds a
50.1% stake in the new venture.
Metka EGN will seek to combine Egnatia’s experience
in EPC projects for photovoltaic systems and related
projects with Metka’s overall energy sector know-how,
geographical presence, and organizational strength,
the press release said.
Metka EGN will focus on major clients, especially in
Europe, the Middle East, Africa, and Latin America.
Subsidiary firms fully controlled by Metka EGN have
been formed in the United Kingdom and Cyprus. The
portfolio may reach a total installed capacity of up to
500 MW in the first quarter of 2016, Metka said.
Renewables bring deficit of EUR 17.37
million
October 15
The deficit at the special account for renewable
energy sources at Lagie, the electricity market
operator, increased by EUR 11 million in August, from
EUR 66.25 million to EUR 77.21 million, its latest
report shows, Energy Press said.
The special account had begun the year with a deficit
of EUR 101.88 million and is forecast to end it at EUR
17.37 million, after falling sharply in November and
December, by 30 million euros and 48 million euros
respectively. Surplus figures for the account are
forecast for the first five months of 2016. A surplus of
EUR 19.13 million is in the plan for January and EUR
7.57 million for May.
However, the account is expected to fall back into
deficit territory from June onwards, with the deficit
rising to EUR 55.98 million by December next year. In
2017, the year is forecast to begin with a deficit of EUR
27.63 million, rebound temporarily in February and
March, and then recede again in April to a deficit of
EUR 22.11 million, before rising to EUR 87.54 million
in August.

The country’s installed renewable energy capacity
remained stagnant at 5 GW in August, according to
Lagie’s report. Non-renewables sub-sector managed
to increase its installed capacity.
Developers ask for deadlines to be
postponed
October 20
Forced to operate amid stifling conditions prompted
by capital controls imposed in Greece in the summer,
entrepreneurs in the renewable energy sources
sector, presently unable to make progress on new
investments and facing permit deadlines, have asked
thegovernmenttostoptheclockandresumethecount
once the currently abnormal banking restrictions have
ended, portal Energy Press said.
Investors are troubled by major liquidity problems,
making it impossible for them to import equipment
needed to either start or continue developing projects,
the article adds. Wind energy projects have been
granted two-year permits for completion. Under the
current regulations, these permits would cease being
valid if projects are not finalized within the allotted
time periods. In addition, if permits are nullified, their
owners will not have the right to reapply for renewals.
In some cases, especially in the wind
energy sub-sector, projects have been
completed and connected to the grid
but their investors have neither received
subsidies nor had guarantees returned.
A large number of investors currently find themselves
trapped. The capacity of projects affected is estimated
to amount to 1 GW. On another front, officials in
the sector, as previously reported by Energy Press,
have called for an acceleration of inspections by
state authorities on projects either completed or in
progress in an effort to swiften highly delayed subsidy
payments, even if just partial. The subsidies were
promised through an older development law.
In some cases, especially in the wind energy sub-
sector, projects have been completed and connected
to the grid but their investors have neither received
subsidies nor had guarantees returned, the article
adds.Elsewhere,workonsomeprojectshadbegunbut
was then abandoned as a result of the state’s failure
to provide the subsidies investors had anticipated,
according to Energy Press.
CYPRUS
Oil belongs in the soil,
environmentalists say
September 27
Friends of the Earth (FoE) Cyprus organised an event
in Nicosia to highlight the upcoming Climate Summit
in Paris by symbolically burying fossil fuels and saying:
‘Oil must be kept in the soil’, Cyprus Mail reported.
Europe has the potential and the
responsibility to do more to speed up the
energy transition.
Members of the public who took part wrote down
solutions and actions to tackle climate change, and
buildacleanandsafe100%renewablefuture,FoEsaid.
At the Imagine the Roads festival in Aglantzia district
of Nikosia, the organisation called the Government of
Cyprus, as well as the governments of the member
states of the European Union, to stop favouring fossil
fuels, and instead promote clean energy sources.
“The EU and member states must cut greenhouse gas
emissions and establish radical measures in order to
achieve the reduction of emissions. Europe has the
potential and the responsibility to do more to speed
up the energy transition, and increase its efforts to
tackle climate change for the benefit of the climate
and citizens across the world,” it said, adding that the
summit in Paris could help end reliance on fossil fuels
and reshape the energy system.

Energy savings target for 2020 set at
14.5%
September 29
The government has set an energy savings target of
14.5% for the year 2020, a senior energy ministry
official told the members of parliament, Cyprus Mail’s
portal reported. Every percentage point in energy
savings currently corresponds to EUR 10 million, said
Stelios Chimonas, permanent secretary of the Ministry
of Energy, Commerce, Industry and Tourism of
Cyprus.
The state will set aside EUR 32 million for two Save
and Upgrade schemes targeted at households and
businesses for the period from 2014 to 2020. The
first has already been launched, with EUR 14 million
allocated, involving government grants to homes and
business premises. The second scheme involves
bank loans.
The government hopes to achieve the
energy savings targets based on projections
of a slowdown in energy consumption.
Chimonas said the intent is to hire people from the
private sector to assist in processing applications, as
at present the four ministry employees working on
this cannot handle the workload, slowing down the
process. According to the official, from 2004 to 2013
some EUR 47 million was diverted from the Renewable
Energy Sources (RES) Fund to finance energy savings
projects. The government hopes to achieve the energy
savings targets based on projections of a slowdown
in energy consumption – chiefly due to the financial
squeeze. According to the same forecasts, energy
consumption will rebound to pre-2013 levels no
earlier than 2018. The projections are also based on
expectations of a higher penetration of renewables in
the energy mix. Cyprus must transpose into national
law three EU directives relating to energy efficiency
and renewable energy.
The parliament approved a ‘temporary green tax’ in
July, deemed necessary by the government to ensure
the viability of the Renewable Energy Sources Fund.
Scientific research facility Proteas
inaugurated
October 3
The new Solar Energy and Desalination Field
Laboratory is the latest of Cyprus’s many contributions
to European research in water management and solar
energy, Carlos Moedas, European commissioner for
research, science and innovation, said at the
inauguration of the facility. “Our resources, our
responses, will be put under increasing strain in the
years to come. There is more and more demand for
safe drinking water, for food, healthcare and energy,”
he said at the Proteas in Pentakomo, according to a
report on the website of the Cyprus Institute.
Nicos Anastasiades, president of Cyprus and
honorary chairman of the institute’s Board of
Trustees, stated the innovative laboratory for solar
applications is infrastructure of European and
regional interest. Proteas will contribute greatly to the
further implementation of the vision and objectives
of the institute: to become an international center of
excellence in the field of solar thermal energy and
desalination, he said at the event.
Andreas Pittas, head of the Cyprus Institute’s
Executive Committee, reffered to the scheme to
‘Adopt a heliostat’ – at present there are 50 pieces,
and 35 are waiting for sponsors. The sponsorship is a
meaningfulwaytocontributetowardscorporatesocial
responsibility goals and will help advance research in
renewable energy sources and their environmental
impact, the article said.
A team from the Csiro, Australia’s national science
agency, took five weeks to construct a solar thermal
field containing 50 heliostats – large mirrors that
reflect the power of the sun – at Pentakomo, located
in the south of the country.

ALBANIA
Energy efficiency bill presented to
stakeholders
October 6
The Kuvendi, parliament of Albania, continued the
procedure for the adoption of the new legislation on
energy efficiency. The Committee of Productive
Activities, Trade and Environment met with
stakeholders in order to get recommendations and
focus on innovation. The hearing was organized
together with the Academy for political studies from
Tirana with support of the GIZ Open Regional Fund for
South East Europe – Energy Efficiency, as part of
regional project Public Dialogue on Sustainable Use of
Energy in South East Europe. The hearing gathered
representatives of non-governmental organizations,
of the government and local level, and other
stakeholders. Lawmakers discussed the plan for the
establishment of the Naional Energy Efficiency Fund
and Energy Efficiency Agency. The previous law hadn’t
been implemented, Albanian Daily News said, and the
topic of energy efficiency was discussed for the first
time.
The bill was drafted with the assistance
of the Energy Community and the
contribution of energy experts from the
European Union.
A plan has been developed for the increase in energy
efficiency and reduction of energy consumption,
minister of energy and industry Damian Gjiknuri told
the committee, Albanian Telegraphic Agency said in
a report.
While presenting the draft law on energy efficiency
before the body, he said that the plan provides for
the launch of specific projects, initially with the
implementation of a pilot project at university
campuses in the outskirts of capital Tirana, while it
would continue in buildings of public institutions,
according to the article published by portal
Albeconomy.info. The previous law hadn’t been
implemented, Albanian Daily News said, and the topic
of energy efficiency was discussed for the first time.
The bill was drafted with the assistance of the
Energy Community and the contribution of energy
experts from the European Union, the report said. The
committee approved the draft law. It includes energy
conservation guides for all electricity consumers,
including public administration, big companies and
citizens.
Energy Community adopts 20% target
on efficiency
October 16
The 13th Energy Community Ministerial Council took
place in Tirana under the Albanian presidency in office
of the Energy Community.
European commissioner for climate action and energy
Miguel Arias Cañete, representing the European
Union at the meeting, said: “The Energy Community
is the most efficient instrument in ensuring effective
implementation of the EU’s energy, environment
and competition acquis in the European Union’s
neighbourhood. Today’s Ministerial Council once
again took key steps to achieve closer integration of
the EU and Energy Community energy markets in a
sustainable way. Today’s adoption of a 20% energy
efficiency target puts the contracting parties on par
with EU member states. Moreover, the adoption of the
TEN-E regulation lays down the foundations for a truly
pan-European energy infrastructure system.”
Albanian Energy Minister Damian Gjiknuri said: “I
am delighted that Albania was able to deliver on its
presidency priorities in terms of adoption of new laws
and the implementation of the Third Package, building
the new pan-European Energy Union. Today we have
also adopted concrete reforms and a roadmap for
the future in line with the recommendations of Jerzy
Buzek’s High Level Reflection Group. The Energy
Community needs reform in order to tap its full
potential, and I am very satisfied that this process has
begun.”
Directive 2012/27/EU on Energy Efficiency adopted by
the council establishes a framework of measures for

the promotion of energy efficiency within the Energy
Community, setting a 20% target by 2020, and paving
the way for further improvements beyond.
For the first time, the Ministerial Council adopted
sanctions – against Bosnia and Herzegovina, for its
failure to adopt the Second Energy Package in the gas
sector. The measures will be applicable for a period of
one year.
Former head of ČEZ probed after
political law suits
October 21
The state prosecution has launched an investigation
to determine the role of Arben Seferi, former chief
executive of ČEZ Albania sh. a., Czech state-run
company which used to control power distribution
in Albania from 2009 to 2012, and two other people.
Portal Albeu reported the Supreme State Audit (KLSH)
had earlier filed a law suit against the three for abuse
of office in 2014 and 2013, resulting in financial
damage of EUR 32.04 million suffered by electricity
distribution network operator Oshee sh. a., and EUR
5.63 million of state income.
Prime minister Edi Rama pledged to request
international expertise on the events that led to the
termination of the contract with ČEZ. On October 8 he
stated that the government asked the United States
Federal Bureau of Investigation for help in the ČEZ
affair. The opposition Democratic Party of Albania
demanded from the national parliament to start an
international inquiry, claiming the government is
„trying to hide EUR 600 million.”
On October 14, KLSH said it filed a suit against
energy minister Damian Gjiknuri and state attorney
Alma Hicka. The auditors stated that an amicable
agreement the two officials made in June of last year
with the Czech Republic has caused a EUR 479 million
damage, while they should have pursued international
arbitration. Fee for the negotiation of the agreement
was EUR 95 million, financial liability coming from
mismanagement timeframe is EUR 352 million, and
there is EUR 32 million from the depreciation of 24%
of state’s shares, the report said. Gjiknuri denied
the allegations as politically inspired, stressing
the alternative would have been to block foreign
investment. The government claims it managed to
avoid even greater expences with the move.
TURKEY
Green credit line approved for TSKB
September 21
International Finance Corporation, a member of the
World Bank Group, said it was providing a USD 75
million (EUR 66.28 million) loan to the Industrial
Development Bank of Turkey (TSKB), the country’s
largest private investment and development bank, to
boost lending for renewable energy and resource
efficiency projects.
The loan is expected to help develop sustainable
finance and energy investment projects across
all sectors in the country, and cut greenhouse
gas emissions. It will also help reduce Turkey’s
dependence on fossil fuel and natural gas imports,
IFC’s press release said.
Total TSKB’s loan volume for sustainable
projects in Turkey reached EUR 556.8 million
last year..
With the line from IFC, total TSKB’s loan volume for
sustainable projects in Turkey reached EUR 556.8
million last year, said Özcan Türkakın, board member
and chief executive. With this project, IFC’s climate
change–related finance through financial institutions
in Turkey, including mobilization, surpasses EUR 880
million, the statement said. IFC has supported private
sector development in Turkey for 50 years. With a
portfolio of EUR 3.8 billion, Turkey is its third-largest
country exposure, the press release adds.
EBRD invests in energy efficiency at
Ege Profil PVC
September 22
A financing package will be used for the construction
of a PVC profile manufacturing plant in Menemen,
a district of Izmir province. The European Bank for
Reconstruction and Development (EBRD) and the

Clean Technology Fund made an agreement with Ege
Profil Ticaret ve Sanayi AŞ, the second largest PVC
profile maker in Turkey, to facilitate the move of its
production from Çiğli to a more specialised industrial
zone in Menemen, aiming to increase operational
efficiency.
Ege Profil manufactures plastic goods under two main
brand names – Egepen Deceuninck and Winsa. It also
operates another plant in Kocaeli, 120 kilometres
east of Istanbul. The combined total capacity of both
plants is 85,000 tonnes per year. The package consists
of a EUR 25 million loan from the EBRD and EUR 1
million in parallel financing from the Clean Technology
Fund, EBRD said. The upgrade includes photovoltaic
panels, wastewater treatment and a combined
cooling, heat and power (trigeneration) plant as well
as the infrastructure required to expand Ege Profil’s
PVC recycling activities, according to the article. The
Spanish government has financed an audit to identify
energy and resource efficiency opportunities.
The company will save the equivalent of
the cost of about 1.7 million litres of gasoline
each year
The project aims to bring Ege Profil’s PVC recycling
rate to about 15%, compared to the country’s rate
of below 10%, EBRD said. The amount is expected
to increase by at least 800 tonnes per year. EBRD’s
loan is the first investment under its Near-Zero Waste
programme launched in July, set to drive a profound
transformation of waste management in the country.
„Once these efficiency measures are put in place, we
estimate that the company will save the equivalent of
the cost of about 1.7 million litres of gasoline each
year – enough for a car to travel for over 20 million
kilometres,” said Frederic Lucenet, EBRD’s director for
manufacturing and services.
EBRD’s lending and investments in Turkey are
expected to reach a record EUR 1.75 billion for the
year, in comparison to EUR 1.4 billion in 2014, the
country director Jean-Patrick Marquet said in August.
Antalya football arena will generate
green power
September 24
In Turkey, the Süper Lig is growing and TOKI, the
governmental agency for housing, is building a
stadium in Antalya in cooperation with the Ministry of
Youth and Sports. Total cost is almost TRY 80 million
(EUR 25 million), and 5% is for a 1,4 MW solar plant
project, which will take almost six years to return the
investment. Omron Corporation from Kyoto, Japan,
said it will supply 124 string inverters KP100L.
The sports facility has a capacity of nearly 33.000
covered seats. Designed by Azaksu Architects, it
includes a solar plant on its 10.000 square metres
rooftop area, to help general profitability selling energy
to the grid. The project of the plant has been carried
by Seiso, one of the leading suppliers in the Turkish
photovoltaic market, the press release said.
The plant, with 5,600 JA Solar’s mono-crystalline
modules, has one of the highest capacities of solar
power generation in stadiums, aiming to apply
for Guinness Records, Omron said. Annual yield
expectation is 2.15 GWh, and it will be connected on
grid to sell electricity as two times 700 kW of non-
licenced application for 10 years over feed-in tariffs,
Omron added.
The plant, with 5,600 JA Solar’s mono-
crystalline modules, has one of the highest
capacities of solar power generation in
stadiums, aiming to apply for Guinness
Records.
Because of the full cylindric form of the stadium,
each panel line is exposed to sunlight from a different
angle. In order to obtain maximum performance, the
system is made of small pieces, each one with a 10
kW inverter. Omron Corporation supplies products
and services for industrial automation, electronic and
healthcare.
CIS thin-film solar plant goes online in
Kayseri
September 25
Turkey saw its first utility-scale photovoltaic facility in
the technology of copper, indium and selenide (CIS)
commissioned in August, industry sources reported.
The Ege Sarıoğlan GES system in Kayseri province in
the central part of the country was mounted with thin
film–based panels in three months.

The project was spearheaded by Istanbul-based
Smart Energy Group, which operates in four more
Southeast European countries. Financing for the 1
MW facility was provided by Yapı ve Kredi Bankası,
while Smart Solar from Bulgaria was responsible
for the engineering, procurement and construction
services. The system was commissioned by Tedaş –
Turkish Electricity Distribution Company, and Kcetaş
– Vicinity Electricity Turkish Inc.
The panels were supplied by Japanese company Solar
Frontier KK. The plant on two hectares features 6,768
modules and two 500 kW central inverters. Smart
Energy Group will provide operating and maintenance.
CIS modules were selected for their good performance
in high temperatures, and expected generation at the
ground-mounted system is 1.9 GWh per year.
Schletter completes 5 MW solar park in
Niğde
October 1
The construction works for a solar farm have been
finished after 45 days of installation, said Schletter AŞ,
subsidiary of Schletter GmbH from Germany. The
company said it completed the procurement of
structures to one of the biggest solar projects in the
Niğde area in Central Anatolia, in a partnership with
Tegnatia regarding T-Dinamik’s solar investments in
Turkey. Tegnatia is a joint venture between Turkey’s
T-Dinamik AŞ and Egnatia Group from Greece.
Schletter develops and produces solar mounting
systems and sustainable products from aluminium
and high-grade steel.
The solar farm in the Turkish provincial capital has
a capacity of 5 MW, with Schletter Solar Mounting
System FS 2V Duo Combi, a modular two-support
system made of hot deep galvanized steel sections.
TegnatiaEnerjiAŞisanEPC(engineering,procurement,
construction) company established in Turkey in 2013
aiming to provide turn-key solar projects in Turkey, the
press release said. T-Dinamik Enerji, member of Aktaş
Grup, was founded in 2011 to investment in projects
for renewable energy with a focus on the Turkish
solar market. Schletter was awarded the contract
due to its conformity to the quality and engineering
restrictions of Tedaş (Turkish Electricity Distribution
Company) and a very competitive price based on local
production, the statement adds.
Nadeau: Green energy still has
competitive edge
October 2
Renewables are still competitive despite low oil prices,
and they can be key for access to electricity in poor
areas, Marie-José Nadeau, chairwoman of the World
Energy Council, told Anadolu Agency’s Energy
Terminal on the first day of October.
The drop in prices of crude has caused some minor
energy companies to halt their investments in
renewables and continue the use of oil. Speaking
to Anadolu Agency on the sidelines of G20 Energy
Ministers Meeting in Istanbul, Nadeau said that
renewables have become an increasingly acceptable
alternative energy source which can compete against
conventional fuels like gas given that the cost of solar
and wind energy has come down.
Electricity generated by solar panels, with
prices that are now more attractive, can be
added to centralized mini grids along with
power from wind turbines..
She added that the key solution for access to
modern electricity for almost 1.1 billion people, the
majority of which reside in Africa, is in renewables.
She explained that electricity generated by solar
panels, with prices that are now more attractive, can
be added to centralized mini grids along with power
from wind turbines. Another solution could be through
the introduction of a strong regulatory system to
allow for the extension of grids from one country to
another providing regular predictable electricity flow,

she said. Additionally, hydroelectric resources could
be developed but this would need huge investments
backed up by very strong regulatory regimes.
Nadaeu also said the upcoming 23rd
World Energy
Congress, which will be held in Istanbul next year, will
provide an opportunity to address the implementation
of the decisions that will be taken in the Paris, COP 21
in December.
EBRD seeks consultant firm for line
MidSEFF III
October 2
By providing up to EUR 500 million for lending to mid-
sized investments (EUR 5 million to EUR 50 million) in
renewable energy and resource efficiency, the
is building its credit line MidSEFF III on the
achievements of the previous phases. The bank
published a procurement notice for engagement of a
consultant company for implementation of the project
also aiming at reduction of greenhouse gas
emissions and the country’s dependence on imported
energy supplies.
The invitation for expressions of interest closes on
October 30. The assignment is expected to start in
January 2016 and has an estimated overall duration of
24 months. Cost estimate for the assignment is EUR
1.9 million, exclusive of value-added tax. It is expected
that the assignment will be implemented with funding
provided by the European Union under the EBRD–EU
Energy Efficiency and Renewable Energy Programme
for Turkey, the bank said. Responsibilities include
infrastructure to ensure coordination, monitoring
and reporting, maintenance of the facility’s website
and ensuring donor visibility, and assisting the
participating financial institutions to adapt the
procedures, information and process workflows.
Alstom equipping world’s largest
floating power plant
October 6
A contract has been signed with Karadeniz Energy
Group (Karpowership) from Turkey by Alstom SA to
supply transformers for the Karadeniz Powership
Osman Khan (KPS12) power plant. At 486 MW, it will
be the world’s largest floating power plant. The
delivery is planned to be completed in early 2016.
Powerships are converted from bulk carriers, heavy
lift vessels and barges.
Alstom will design, manufacture and deliver 200 MVA
power transformers, inclusive of commissioning, field
tests and respective spare parts, the press release
said. The equipment will be produced in Alstom Grid’s
manufacturing site in Gebze, Turkey. „The ability
to help countries meet short-term energy demand
quickly and in a cost efficient manner is an important
step to providing more people access to sustainable
and reliable electricity”, said Tunç Tezel, Alstom Grid’s
commercial director for power transformers.
Powerships are converted from bulk
carriers, heavy lift vessels and barges.
Karadeniz is designing and producing powerships
since 2007. In 2010, the group established the first
fleet in the world, the statement said. Constructed
on-board large vessels, these floating power plants
supply electricity to the countries within the scope
of the commercial agreements signed under the
Power of Friendship project. Deployed quickly to
countries in need, powerships are able to connect
into the electricity grid immediately upon berthing,
Alstom said. The group continues to expand its fleet
of Powerships, and it targets to increase the installed
power, from 1500 MW with 9 energy ships, to over
5000 MW by the end of 2017.

Carbon report envisions 20% cut in
emissions
October 7
New research says long-term green policies will pay
off after initial economic pain. Turkey could cut
greenhouse gas emissions by 20% in 15 years by
increasing the use of renewable energy sources –
including solar, wind and geothermal power –
according to a report, Anadoulu Agency’s Energy
Terminal said.
Environmentally friendly policies – which may hurt
energy-dependent Turkey’s finances at first – would
pay off in the long run, the authors claim. The 100-
page document, prepared by the World Wide Fund
for Nature (WWF) and the Istanbul Policy Center, an
independent research institute, was introduced at a
press conference in Karakoy in Istanbul. The report
comes ahead of United Nations climate change talks
to be held in Paris in December, aimed at setting a
new global climate change plan.
ErinçYeldan,reportauthorandprofessorofeconomics
at Istanbul’s Bilkent University, said renewable energy
sources including solar, wind, hydro and geothermal
energy should account for around 40% of electricity
production by 2030 in Turkey. Over 20% of decrease
in our carbon emissions could be achieved, he said.
As of 2010, Turkey’s per capita aggregate carbon
dioxide emissions stand at 4.13 tonnes. They score
significantly below the OECD average of 10.12 tonnes,
according to the report. However, Turkey’s greenhouse
gas emission rate as carbon dioxide equivalent has
increased in 2013 by 110.4% compared to 1990,
according to figures from the Turkish Statistics
Institute.
The report also says applying green policies will
cause some losses in the national income at first,
adding however: “After 2025, this loss will disappear...
If we are patient, a new employment field through
renewable energy will be created and Turkey will grow
much more thanks to these policies,” Yeldan noted.
Erdemir group’s loan from EBRD
pending signing
October 16
Development said its board approved a long-term
loan of up to EUR 75 million (or equivalent in dollars)
to Ereğli Demir ve Çelik Fabrikaları TAŞ (Erdemir) and
İskenderun Demir ve Çelik AŞ (İsdemir). The group
was incorporated in Turkey in 1960 and runs steel
production facilities in Ereğli and İskenderun.
The proceeds will be used to support implementation
of a series of energy efficiency measures at their
production facilities located in Ereğli, in the Black Sea
region, and İskenderun, in the country’s southeast. The
improvements are part of the borrowers’ investment
programme which will lead to significant savings
in terms of greenhouse gas emissions and energy
costs, EBRD said.
The deal is part of EBRD’s policy effort
with the Ministry of Energy and Natural
Resources for the development of a National
Energy Efficiency Action Plan.
The expected transition impact of the project will be
achievedthroughthedemonstrationeffectofErdemir’s
integrated approach to industrial competitiveness on
other Turkish steel producers and industrial players,
and the contribution in defining strategic priorities
for energy efficiency in the iron and steel sector, the
project summary document adds. The deal is part of
EBRD’s policy effort with the Ministry of Energy and
Natural Resources for the development of a National
Energy Efficiency Action Plan.
Erdemir group is the largest integrated steel producer
in Turkey, EBRD said. With a total production of 8.5
million tonnes of crude steel in 2014, it accounted
for approximately 25% of the country’s crude steel
production.

REGION/EU
EBRD steps up financing green
economy transition
September 30
Development pledged to scale up its contribution to
the global fight against climate change with a sharp
increase in green financing over the next five years.
The announcement came two months before the
United Nations Conference on Climate Change
(COP21) in Paris, set to seal an international climate
agreement and define an agenda of specific actions
to combat climate change.
Since the launch of its Sustainable Energy Initiative
in 2006 the EBRD has invested over EUR 18 billion in
over a thousand projects with a total value of EUR
97 billion, the press release said. „The international
community has a unique chance this year to deliver a
decisive set of measures to combat climate change.
With its long experience as a leader in climate finance,
the EBRD is making an important contribution to this
collective stand through its Green Economy Transition
approach,” said Suma Chakrabarti, EBRD’s president.
With the new approach, endorsed by the board, the
bank is aiming for green financing to be doubled
to EUR 18 billion over the next five years, it said on
its website. The bank is aiming to increase green
financing to around 40% of total annual investments
by 2020 compared with a target share of 25% over
the previous five. In 2014, the EBRD dedicated 34% of
its total EUR 8.9 billion in investments to sustainable
energy and resource finance.
Investing in a wide variety of projects ranging from
solar plants in Jordan and Kazakhstan and wind farms
in Turkey and Mongolia to energy efficiency projects
in factories and commercial and residential buildings,
led to a reduction of carbon emissions of over 72
million tonnes a year, EBRD said. The investments
generated almost 60 million MWh a year in renewable
energy, equivalent to the electricity production in
Romania in 2013, and led to annual energy savings of
over 26.3 million tonnes of oil equivalent, exceeding
the total energy demand in Greece in 2013, the article
underscores.
In areas like renewable energy project finance, district
heating rehabilitation and the Sustainable Energy
FinanceFacilities,activitiesareplannedtobescaledup.
The bank said it would step up its work to transfer the
most advanced climate technology into the countries
where it invests and develop new approaches for
increased energy efficiency in various industries, such
as in financing building rehabilitation. The EBRD will
intensify its efforts to work with authorities at all levels
to support the introduction of related regulation and
legislation, as well as investment planning.
Pleas to EU to abolish duty on solar
panels
October 6
Members of the European Parliament representing
all major political groups called on the European
Commission to end the minimum import price,
antidumping and anti-subsidy duties on solar panels
and modules from China, according to SolarPower
Europe. „Free trade and the environment go hand in
hand. With the EU’s very ambitious climate targets,
EU trade policy should do everything it can to help
reach those goals,” said Christofer Fjellner, a member
of the assembly coming from Sweden, who organized
the drafting of the letter. „But by restricting free trade
and imposing a high minimum import price on solar
panels, we are making it more difficult for ordinary
citizens and businesses to do their part in reducing
carbon emissions. That’s why I hope the Commission
will keep its promise to abolish anti-dumping duties
and the minimum import price in December.“
The European Commission also received a request on
September 22 from 21 solar associations representing
19 European Union member states to abolish the
measure. The anti-dumping and anti-subsidy wall has
been in place from the end of 2013, and installations
have since halved, according to the organization,
formerly known as European Photovoltaic Industry
Association. The result for 2014 in Europe was just 7
GW of new capacity, it said.
The signatories represent more than 80% of the solar
sector in Europe, sending a clear message that the

minimum import price and duties must be brought
to an end as planned this year, said James Watson,
head of SolarPower Europe. „We need to move beyond
duties and ensure that the highest quality solar
products are promoted in the EU,” he underscored.
The call included national associations from Greece,
Bulgaria, Cyprus, Croatia, Romania and Slovenia.
SolarPower Europe had also addressed responsible
European Commission’s officials in a joint letter with
other renewable energy industry associations, about
the issue of drastic retroactive changes in support
mechanisms in several EU member states. Regulatory
changes undermine economic viability of existing
projects and weren’t verified for compliance with EU’s
state aid rules, according to the plea by solar thermal,
geothermal, bioenergy, wind, solar and equipment
supranational organizations. Renewable energy
investments in Europe have halved in just four years
– dropping from USD 120 billion (EUR 107.05 billion)
to EUR 57.98 billion from 2011 to 2014, the letter said,
adding there was consistent growth in China to last
year’s more than USD 71.36 billion.
Food-processing residues to be utilized
as biofuel
October 21
Development closed the process of applying for the
selection of a consultant to conduct a study that will
be aimed to identify the potential for investments in
food and beverage manufacturing industry in the
Western Balkans. The selected consultant is expected
to review the type and volume of the major residues
generated in the food-processing sectors, their
current prevailing uses and the relevant commercial
and regulatory drivers in place in the region. The
selected firm should analyze all the most significant
possible uses of the residues beyond those currently
in place, such as conversion into biofuels, production
of insulation materials, or fertilizers before and
after anaerobic digestion, or bioplastics, or other
intermediate products suitable for use as feedstock in
other sectors. Some case studies related to selected
companies should be developed, EBRD said.
The assignment is expected to start in the fourth
quarter of this year and has an estimated overall
duration of four months. Cost estimate is EUR
150,000, exclusive of value-added tax. The funding
source is the Central European Initiative (CEI) fund.
Eligibility for assignments in CEI member countries
is restricted to individual consultants of Italian
nationality, and consultancy firms registered in
Italy using their employees of any nationality and
non-employees of Italian nationality. These firms
can, however, subcontract, associate with or hire
external experts or consulting firms from other CEI
member countries: Albania, Austria, Belarus, Bosnia
and Herzegovina, Bulgaria, Croatia, Czech Republic,
Hungary, Macedonia, Moldova, Poland, Romania,
Serbia, Montenegro, Slovak Republic, Slovenia,
Ukraine up to a maximum of 30% of the individual
contract amount.
Biofuels await regulation in all EC
member countries
October 21
The Energy Community Secretariat published a study
on progress in renewable energy in 2013 and 2014
and assessment of renewable energy action plans.
Three contracting parties (Bosnia and Herzegovina,
Former Yugoslav Republic of Macedonia and Albania)
have not adopted an action plan yet. The analysis
identified inconsistencies in the data reported with
official energy statistics, mostly related to biomass
consumption in some contracting parties. A revision
of energy statistics based on energy consumption
surveys is needed, the organization’s press release
said. Biofuels sustainability criteria and establishment
of certification schemes have not been adopted in any
contracting party, the statement said.
The heating and cooling and transport sectors are
severely lagging behind. All parties except Montenegro
are at least slightly below the trajectory for meeting
the 2020 renewable energy targets in 2020, but the
lack of progress in Moldova, Serbia and Kosovo is
most critical. In certain countries a revision of the
renewable energy policies is urgently needed, the
Energy Community said.
Apart from introducing attractive support measures,
the legislative framework is still not conducive to
investments in renewable energy, which is reflected
among others in the improper formulation of power
purchase agreements.

CLIMATE
CHANGE
Belgrade adopts plan for adaptation to
climate change
October 23
The assembly of Serbia’s capital city approved the
Assessment of Vulnerability to Climate Change
and the Action Plan for Adaptation. Nataša Đokić,
assistant to the environment secretary of Belgrade,
said the document is strategic, and a first step for the
establishment of a system for future events, the city’s
official website reported.
„Climate change is one of the greatest challenges
we face. Belgrade must be aware of that in order to
prepare in time for the adaptation to new conditions.
The rise in temperature, extreme weather conditions,
flods and storms will have a negative impact on the
quality of life in Serbia, and these are the challenges
we must face. Our cities must be prepared for the
consequences of climate change, because they are
especially sensitive as built structures and urban living
environment,” she said. At the same time, cities which
function successfully are one of the most important
preconditions for sustainable economic development,
according to Nataša Đokić.
„We are aware that even a document drafted like this
still needs to be worked on, first and foremost through
coordinating the sectors, as the climate change issue
is not just a question of the responsible secretariat,
but the overall preparedness of the city’s infrastructure
to respond to challenges,” she concluded.
The assessment and action plan were developed
within the regional project Climate Change Adaptation
in the Western Balkans, implemented by the German
Society for International Cooperation (GIZ). Podgorica
and Tirana are two other capital cities for which
recommendations are to be integrated into urban
planning and development. The document in Serbian
can be downloaded from the official website of the
City of Belgrade.

UPCOMING EVENTS
November 4-5, 2015
RENEXPO BIH
Sarajevo, Bosnia and Herzegovina
November 17-18, 2015
EII 2015 – Energy & Infrastructure Investment Conference
Zagreb, Croatia
November 18-20, 2015
RENEXPO SOUTH-EAST EUROPE
Bucharest, Romania
December 1-3, 2015
GeoPower Global Congress
Istanbul, Turkey
December 9-10, 2015
South Eastern European Power Summit 2015
Bucharest, Romania
April 5-7, 2016
South-East European Exhibition on Energy Efficiency and
Renewable Energy
Sofia, Bulgaria

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BGEN-2015-11

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