1. Importance of
Municipal Energy Planning
Workshop on Municipal District Heating Options
Obrenovac 14.11.2012.
Bojan Gajić
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2. Importance of
Municipal Energy Planning
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• Energy development and Serbian energy policy
• Municipal energy planning by Energy law
• Current Status
• What to do?
• Steps for making local energy plans
• Challenges of implementation
3. Energy development in Serbia
Energy development in Serbia is:
• One of main preconditions of development of Republic of
Serbia
• Closely related to the rest of economy development
• Is achieved by long-term energy policy defined by:
• Serbian Energy Law
• Serbian Energy Development Strategy until the year 2015
• Implementation Plan of Serbian Energy Development Strategy
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4. Serbian energy policy
Serbian energy policy aims:
• Improvement of energy efficiency in order to reduce
energy consumption, and therefore import dependence,
impact on the environment, increase industry
competitiveness and standard of living
• Safety and security of energy supply
• Encouraging the use of renewables
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5. Municipal Planning by Energy law
Energy law (2011):
• Article 10: “…municipalities are obliged to plan their
energy needs on its territory as well as terms and
conditions of securing necessary energy capacities in their
development plans, in line with Energy Development
Strategy and Implementation Plan.“
Energy law (2004):
• Article 7: “…municipalities adopt energy development
plans which determines energy needs on its territory as
well as terms and conditions of securing necessary energy
capacities in line with Energy Development Strategy and
Implementation Plan.“
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6. Is there any difference?
• 2011 - energy development is not regarded
adequately in municipal development plans and
strategies in preparation and adaptation stages, and
even less in implementation stage – lack of political
support
• 2004 – energy development plans as independent
were almost nowhere adopted (few bright
exceptions – usually with help of foreign partners) –
lack of political support
Effectively – no difference
lack of political support
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7. Current status
• A number of city districts not connected to district
heating (using electricity or other fuel for heating)
• Problems with electricity supply in winter
• Poor condition of district heating networks – huge
network losses, old equipment at heating plants
• Light bulbs with high consumption of energy in
public lightning, problems of shared network with
consumers
• Public buildings with low level of energy efficiency
• The use of renewables almost nonexistent…
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8. Municipalities in Serbia need to:
• Get a political support
• Build the administrative capacities for planning
• Bring together all the stakeholders (energy
companies, planning bureaus, directorates for city
construction, universities, institutes, city
administration and decision makers…)
• Find financial support
In order to prepare the most appropriate
Energy development plans
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9. Steps for making local energy plans
• Define goal
• Define geographic system boundary
• Define technical system boundary
• Survey current energy demand
• Survey potential for energy savings
• Survey energy resources
• Design system with optimal mix of supply and
demand
• (Implementation)
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10. Steps for making local energy plans
Define goal
• CO2 reduction
• Fuel independence
• Economic costs
• Job creation
Define geographic system boundary
• Urban area
• Rural area
• Fuel availability
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11. Steps for making local energy plans
Decide technical system boundary
• incl/excl transportation
• incl/excl industry
• incl/excl particular large industries
• incl/excl the area’s share of external transportation (air,
train, water)
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12. Steps for making local energy plans
Survey current energy demand
• Heating
• Cooling
• Electricity
• Industry
• Transportation
• All data as annual data
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13. Steps for making local energy plans
Survey fuel resources
• Wind
• Solar (both for heat and electricity generation)
• Hydro power
• Biomass (wood, agriculture etc)
• Biogas (landfill and sewage)
• Waste
• Waste energy from industry
• Geothermal
• etc
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14. Steps for making local energy plans
Design optimal mix of supply and demand
• Design one or more systems that combines energy savings,
energy resources and energy technologies to cover the
energy demands
• Evaluate according to chosen criteria
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15. Implementation
• Get the political support from the start of making (if
possible even from opposition leaders)
• Commit in providing financial support for the
implementation:
• International/national programs/funds/partnerships
• ESCO model
• Public Private Partnership (PPP)
• Own budget…
• Build administrative capacities for monitoring
• Raise awareness and involve stakeholders and public
• Monitor the implementation
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Hello to everyone, my name is Bojan Gajic and I have a task to say a few words on a municipal energy planning from the view of local authorities in Serbia as a representative of SCTM
During my short presentation I will mention several topics related with Municipal energy planning:
Something about importance of energy development in Serbia, and legal framework for energy development;
How does a Serbian energy law deals with municipal energy planning;
What looks like energy picture at municipal level,
What do we have to do to improve it;
What should municipal planning address to;
And what are the main challenges of implementation of energy plans?
A few obvious things about Serbian energy development:
Energy development in Serbia is one of main preconditions of development of Republic of Serbia.
At the same time energy development is closely related to the rest of economy development.
So! How to carry out our energy development?
Serbian energy development is defined in a national legal framework through:
Serbian Energy Law
Serbian Energy Development Strategy until the year 2015
Implementation Plan of Serbian Energy Development Strategy
Serbian energy policy is defined in 3 main goals:
Improvement of energy efficiency
Safety and security of energy supply
Encouraging the use of renewables
Municipal energy planning in the Serbian energy law is based in 1 Article, and we can see how was Municipal energy planning defined in the currently valid energy law compared to a previous Energy law .
The Article 10 of the new law sais that municipalities are obliged to plan their energy needs on its territory as well as terms and conditions of securing necessary energy capacities in their development plans, in line with Energy Development Strategy and Implementation Plan. The law doesn’t insist on adopting separate energy development plans, but municipalities have to deal with energy development whenever preparing any of development plans. Is it possible otherwise?
Compared to this Article, the previous law said in it’s Article 7 that municipalities adopt energy development plans which determines energy needs on its territory etc.
Was this a better solution?
We can see that if we compare how was municipal energy planning carried before and how is it now?
So is there any difference?
Regarding the new energy law with obligation of planning energy needs in development plans, not insisting on adopting concrete energy plans, energy development is not regarded adequately in municipal development plans and strategies in both, preparation and adaptation stages, and even less in implementation stage. The biggest reason for this is lack of political support.
If we look at the previous period with obligation of municipalities to adopt energy development plans, we notice that there were only a few of bright examples where municipalities adopted their energy development plans and usually with help of foreign partners. The reason for the failure of fulfillment of this obligations is again lack of political support.
So, we can say that effectively there is no difference!
Why the lack of political support?
Mostly because of insufficient political awareness and undefined financial framework. The second one comes from both, the poor municipal budgets, and undeveloped secondary financial mechanisms.
How does a lack of energy planning reflects on energy picture in municipalities?
The usual scenarios in Serbian municipalities are telling us that there are:
A number of city districts not connected to district heating and using electricity or other fuel for heating
Problems with electricity supply in winter because of the high peaks of electricity consumption in some of the municipal areas
Huge losses in district heating network, number of malfunctions because of old equipment at heating plants
Light bulbs with high consumption of energy in public lightning, problems of shared network with consumers which leads to a very demanding maintenance
Public buildings with low level of energy efficiency
The use of renewables almost nonexistent
What do municipalities need to do to improve the current status?
They need to:
- Get a political support
- Build the administrative capacities for planning
- Bring together all the stakeholders (energy companies, planning bureaus, directorates for city construction, universities, institutes, city administration and decision makers…)
Find financial support
All in order to prepare the most appropriate Energy development plans
And preparing a plan means that municipalities need to:
-Define goal
-Define geographic system boundary
-Define technical system boundary
-Survey current energy demand
-Survey potential for energy savings
-Survey energy resources
-Design system with optimal mix of supply and demand
-and to carry out the Implementation of the plan
For the first step of defining a goal, municipality can choose to set a goal related to a:
CO2 emission,
Fuel independence
Economic costs related to energy,
Creation of jobs through implementation of the plan etc
Then, a geographic system boundary could be set by the:
Urban area,
Rural area,
Area of Fuel availability
Technical system boundary could be defined by:
Including or excluding transportation from the plan,
Including or excluding industry,
If excluding industry overall, maybe to include or exclude particular large industries,
Including or excluding the area’s share of external transportation, such as air, train, water transport or else etc
Survey of current energy demand should cover the demands in sectors of:
Heating,
Cooling,
Electricity,
Industry,
Transportation
And the survey should gather the annual data of energy demand
Survey of fuel resources should primately cover the data from the sectors of renewable resources, such as:
Wind,
Solar (both for heat and electricity generation),
Hydro power,
Biomass (wood, agriculture etc),
Biogas (landfill and sewage),
Waste,
Waste energy from industry,
Geothermal etc
And finally municipalities should the optimal systems that are combining energy efficiency, use of renewables and the best technoligies in order to cover defined energy demands.
All solutions should be evaluated according to chosen criteria.
With a same level of importance after all comes the implementation.
And for the implementation in a right way the Municipalities must from the start work on getting the political support for the plan realization. If it is possible to get the support from the political opposition leaders would be very favourable.
Decision makers must commit themselves in providing financial support for the implementation either by:
International or national programs, funds or partnerships, or
Using ESCO model,
Or Public Private Partnership (PPP)
Or at the end the least popular, Own budget
Municipalities must work on building administrative capacities for monitoring, raising the awareness of stakeholders and public, and involve all of them in the implementation, and at the end monitor the implementation of plans.
At the end I just want to follow up on Milena’s presentation, and to add a few words on a Covenant of Mayors initiative!
SCTM is also registered as a supporting structure of Covenant of Mayors, as we recognized the importance of preparing SEAPs which is an obligation for the signatories that should be carried out in a timeframe of 1 year after signing.
At the moment there are 7 signatories coming from Serbia, but none of them have prepared their SEAP.
Faced with a failure the Serbian signatories have formed the Serbian Covenant of Mayors club with a support of SCTM.
As the lack of european support for the signatories from the western Balkans is also recognized by members of Serbian Covenant of Mayors club, the initiative for creating a CoM office for the SEE was sent to the EC parrallel with the NALAS’ one.
That’s all from me, thank you for your attention!
