LAW ONEFFICIENT USE OF ENERGY

Conference on Energy efficiency in Industry Belgrade, 28. may 2013.

Republic of Serbia        Ministry of Energy, Development and Environmentаl Protection

Energy in Serbia

• Energy intensity in Serbia: 2-3 times higher than in the EU • Large dependency on the imported energy: 30% • Large GHG emissions in the energy sector: 76% • The commitment of the Republic of Serbia - Sustainable Development • International obligations

- Energy Community: the application of the Directive in the field of energy efficiency

- Association to EU: Energy-climate package (20/20/20) - 20% energy savings by 2020.

Energy efficiency is an important element of the Energy efficiency is an important element of the energy policy of the Republic of Serbiaenergy policy of the Republic of Serbia

Source: MEDEP-RS Energy Balance in 2011.

<1%Геотер,ен

4% Пр.гас69%Угаљ

7% Хидро

10%Нафта

9%Биомаса

Structure of energy production

Primary energy 20011

16%

7%

12%5%

<1% <1%

6%

53%

Нафта/ Crude oil

Нафтни деривати /Oil derivates

Гас/ Natural gas

Хидропотенцијал/ Hydro

Електрична енергија/Electric energy

Геотермална енергија/ Geothermal energy

Биомаса/ Biomass

Угаљ/ Coal

Structure of energy consumption

  Primary energy 20011

- Total PE production: 11,163 Mtoe- Total PE consumption: 16,192 Mtoe- Import dependence ~ 30%- Import: NG 24%, Oil 52%, coal 14%

Source: MEDEP-RS Energy Balance in 2011.

Primary Energy PE

29%

22%

35%

1%

13%

Индустрија/Industry

Саобраћај/ Transport

Домаћинства/ Households

Пољопривреда/ Agriculture

Остало/ Other

Share of final energy consumptionBy sector

Energy structurein final energy

consumption

14%

30%

10%

9%

<1%

11%

26%

Угаљ/ Coal

Нафта/ Oil derivates

Гас/ Natural gas

Топлотна енергија/Heat energy

Геотермална енергија/ Geothermal energy

Биомаса/ Biomass

Електрична енергија/Electric energy

- Total FE* consumption - 10,042 Mtoe

Source: MEDEP-RS Energy Balance in 2011.

Final Energy FE

* Final energy (or energy used by "end" users)

Energy Policy and Energy Efficiency

• Energy Law:- One of the aims of energy policy, "ensuring the conditions for the improvement of EE in energy activities and energy consumption"

• Energy Development Strategy for RS until 2015. year: - The second - directed Priority: rational use of quality fuels and increase EE

in production, distribution and end eser`s sector• Strategy Implementation Programme 2006-2012:

- Barriers: - unrealistic parity energy prices and their variability- for decades energy was assumed to be a social category

Necessary measures:• adoption of legislation on efficient use of energy (EE Law)• establishment of energy management system• funds / institutions for financing EE• subsidies, tax relief for projects in EE• introduction of energy efficiency criteria in public procurement• raising public awareness of the importance of rational use of energy and EE

Obligations of RS toward Energy Community (1)

Implementation:

- Directive 2006/32/EC on Energy Efficiency in Final Energy Consumption and Energy Services

- Directive 2010/30/EU on the Labeling of Energy and other Resources for Products that Affect Energy Consumption

- Directive 2010/31/EU on the Energy Performance of Buildings

Obligations of RS toward Energy Community (2)

- prepared On the basis of the request:• Directive 2006/32/ES European Parliament and of the Councilon the energy effecient use of final energy

Acording to the recommended model developed by the:

•Working Group on Energy Efficiency established in the Energy Community Secretariat

- adopted: •29 July 2010. by the Government of the Republic of Serbia

-objective: • savings of 1.5% of FE in the period of 2 years, 2010-2012 - (0,1254 Mtoe) (based on FE consumption in 2008)

Note: Savings of at least 9% of FE consumption in 9. year of application, 0.7524 Mtoe, (2010 – 2018)

First National Energy Efficiency Action Plan 2010-2012

Obligations of RS toward Energy Community (3)

- Share of final energy savings by sector till 2012.

• Industry (0,057 Mtoe) 44%• Transportation (road and rail) (0,045 Mtoe) 35%• Other (0,026 Mtoe) 21%

• Households• Public and commercial activities• Agriculture

Second National Energy Efficiency Action Plan

• Under preparation

• Covers period 2013-2015.

First National Energy Efficiency Action Plan 2010-2012

Law on Efficient Use of Energy

The basic principles:- energy security implementation of EE measures in production, transmission, distribution and energy consumption

- competitiveness of products and services reducing the cost of production / service

- sustainable use of energy reducing of energy consumption, higher efficiency, eco-design requirements, use of EE technologies, sustainability in terms of environmental impact

- energy management system integrated approach to reduce primary energy consumption and environmental impact

- cost-effectiveness of energy efficiency measures- minimum energy efficiency requirements for new and reconstructed plants in generation, transmission and distribution of energy

Sectors:- Production, transmission and distribution of energy - generation, transmission and distribution of electricity - production and distribution of thermal energy - transportation and distribution of natural gas

- Energy consumption sectors - industry

- services sector - public sector - households

- transportation

- Manufacturers, importers and sellers of products that affect energy consumption- Owners of heating systems and boilers over 20kW- Owners of air conditioning systems over 12kW

Law on Efficient Use of Energy

Introduced mechanisms:

- Energy management system- Energy audits- EE level designation and establishment of minimum requirements for products that significantly affect energy consumption and buildings

- eco-design requirements- Minimum EE requirements in generation, transmission and distribution of electricity and thermal energy and natural gas - measurement and consumption based billing

- control of boilers, heating and air-conditioning systems- Energy efficiency as a criteria in public procurement- Development of the Energy Efficiency Services Market (ESCO)- Development of Programmes of public transport system enhancement - Development of Programmes of public transport system enhancement for cities with cities with more than 20,000 inhabitants more than 20,000 inhabitants - Incentives for rational and efficient use of energy - Budgetary Fund for Energy Efficiency

Law on Efficient Use of Energy

Energy Management System introduction is mandatory for:

- Companies with the main activities in Companies with the main activities in productionproduction sectorsector – industrial plantsindustrial plants – if they consume more energy than set as threshold

- Companies with the main activities in Companies with the main activities in trade and servicestrade and services sectorsector - objectsobjects - if they consume more energy than set as threshold bodies - Cities/ Municipalities- Cities/ Municipalities – number of inhabitants higher then – number of inhabitants higher then 20 00020 000

- Public buildings and other objectsPublic buildings and other objects – State Governance

Energy Management System will cover about Energy Management System will cover about

70% of primary energy consumption70% of primary energy consumption

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Energy Management System

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Periodical Reports

Inspection of poor energy management

EnergyAudit/report

Ministry of Energy, Development and Environmental Protection (MEDEP)

• Law and regulations• Policy making• Registration and checking Periodical Reports and making database• Issuing license of Energy Manager and Accredited Energy Auditor • Inspection

Authorized Training OrganizationOrganizing training for:- EM energy managers- Certified energy auditors Accredited Energy Auditor

- external audit

Designated Organisation of EMS (industry, buildings, municipalities ...)  - appointment of energy managers  - collection and analysis of energy consumption data, proposing measures and activities for EE improvement  - preparation and submission of plans and programs for efficient use of energy   - implementation of the proposed EE measures and activities  - preparation and submission of periodic reports   - implementation of mandatory periodical energy audits

Energy manager

Inspection- Random check- Advices- Issuing penalties

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Designation Organisation for Training

Dispatching candidatesof Energy Manager

Certificate

Energy Manager: person appointed by the DO, which has a license for the performance of EM

Duties of EM:- collect and analyze data on energy consumption- prepare plans and programs for EE to MEDEP

- propose EE measures - prepare and submit periodical reports to MEDEP

Training / Qualification for EM - requirements :- BSc in technical sciences + training for EM + passed exam for EM or- MSc in the field of mechanical engineering, electrical engineering or technology + passed exam for EM

License for EM - requirements :- passed exam for EM - 3 years of work experience and- submit application for issuing license to MEDEP

Energy Manager EM

Acredited Energy Auditor: a person authorized to perform energy audit which has a license

Duties of Acredited Energy Auditor:- perform energy audit :

- energy balance of the building, production processes and services,- Assess the current level of energy consumption    - proposal of EE measures with the evaluation of E, ↓ CO2 and investment cost

- prepare and sign a report on conducted energy audit

- report to MEDEP on completed energy audit Training / Qualifications - requirements:

- passed the exam for EM- minimum of 3 years experience in energy audits / design / technical inspection / field testing - completed training for AEA and- passed the exam for AEA

License - Requirements:- Passed the exam for AEA- MSc - master in the field of technical sciences and minimum three years of professional experience and- submit application for issuing license to MEDEP

Acredited Energy Auditor AEA

Energy audit: a systematic procedure for obtaining necessary data and information on the current status of generation, transmission, distribution and use of energy in building, process, service by which are identified and

quantified opportunities for economically viable and efficient use of energy

- EA is performed by Acredited Energy Auditor:- Individual - the license- for DO: a legal entity - with at least 2 Acredited Energy Auditor

- Who is obliged to perform:- DO - once in 5 years- DO for buildings over 500 m2 - once in 10 years

  - Buildings / parts of buildings in case of change of use, of owners or if for rent

- Those who apply for Budget Fund for EE

Energy Audit EA

Products that affect energy consumption must:- be appropriately labeled with EE designation- have a technical documentation- special requirements when advertising and selling on distance- meet the requirements of Ecodesign

 

EE Designation:- data on the energy consumption- visually indicates the EE class- other important characteristics data

Products that affect energy consumption

-Energy distributors - apply the tariff system:

- one of the elements are measured, delivered amount of energy - price of tariff elements - limited by maximum losses

- per month, with a bill inform the customer of its energy consumption, the current price of energy, EE measures…

- report to Ministry annual statistical data on energy delivered to customers: the dynamics of energy consumption, load profiles ...

- New and reconstructed plant for generation, transmission and distribution of energy: power, heat and gas  - minimum requirements regarding EE  - EE study - requirement for construction/energy permit

(feasibility study for CHP)

Sectors: Generation, transmission and distribution of energy

Heat energy

New buildings• Define conditionsDefine conditions for the technical documentation preparationfor the technical documentation preparation which requires

installation of the metering equipment of the heating energy supplied for each part of the building representing an independent entity (apartments, commercial units etc.)

Existing buildings• Provide offer to install metering equipment on the heating installation in order

to measure the delivered heating energy• In the case that other companies installed heating energy metering equipment,

to examine the installed equipment and, if the installed equipment provides correct data related to the real heating energy supplied and provides possibility of notifying the time of energy transfer for each part of the building representing an independent entity (apartments, commercial units etc.), to accept the installed equipment.

Public and other companies in charge of distribution of heat energy are obliged to:

Transportation sector

• Cities with more than 2Cities with more than 20.000 0.000 inhabitants are oblige to adopt inhabitants are oblige to adopt programs for promotion and improvement of the public programs for promotion and improvement of the public transportation systems and report to the Ministry on the realisationtransportation systems and report to the Ministry on the realisation

• Local self-government units are obliged to provideLocal self-government units are obliged to provide, , where ever it is where ever it is technically feasible and economically justifiedtechnically feasible and economically justified, , separate lines for the separate lines for the public transportation vehiclespublic transportation vehicles

• Define and monitor energy consumption in the road transport by Define and monitor energy consumption in the road transport by Road Safety Agency Road Safety Agency

Control of boilers and heating systems: The owners of the boilers with nominal heating capacity more than 20KW

- regular control of combustion process - determination of coeficient of efficiency - undertake measures in order to achieve the nominal values - control of the heating system - when the boiler is an integral part of the heating system - authorized persons

Control of the air conditioning system: The owners of the building with AC system nominal cooling capacity more than 12 kW - authorized persons

Control of boilers, heating and ACsystems

Activities financed:

- for the implementation of technical measures- to encourage the development of EMS for entities not obliged by Law- to promote and implement energy audits of facilities, production processes and services- to construct a CHP plant, when investor produced thermal energy and power use for its own purposes- to encourage the development of energy services- to encourage use of RES for power and heat production for own use - and others.

Financing, incentives and other measures

Budgetary fund for the improvement of energy efficiency: 

- managed by Minister- RS Government adoptes annual funding program of activities and

measures to improve EE- funds are awarded through open competition and are availableto - legal and

- individuals- requirement for investment projects - energy audit or feasibility study on

EE- 12 months after the implementation of the project - a review of energy

audit

Budgetary fund

Public Procurement- take into account the EE of goods and services- endeavor to supply with such products belonging to the highest EE class- The Minister shall prescribe the minimum criteria in terms of EE in the public procurement

Other incentives

• VAT decreasing for the energy efficient equipmentVAT decreasing for the energy efficient equipment, , materialsmaterials, , appliances and technologiesappliances and technologies

• Income tax decreasing for the part of the investment related Income tax decreasing for the part of the investment related to the energy efficient equipmentto the energy efficient equipment, , materialsmaterials, , appliances and appliances and technologiestechnologies, , as well as energy efficiency projectsas well as energy efficiency projects

TaxTax, , customs and other incentivescustoms and other incentives

Energy Services Market

Energy ServicesEnergy Services - service, technology, managing system, appliances or other - service, technology, managing system, appliances or other goods used in any part of the process of energy use, provided in accordance to goods used in any part of the process of energy use, provided in accordance to the contract and which can contribute to the increase of energy efficiency and the contract and which can contribute to the increase of energy efficiency and energy savingsenergy savings

ESCOs (Energy Service Companies)ESCOs (Energy Service Companies) - - company, or other legal body company, or other legal body that undertakes energy services which can contribute to the increasing of the that undertakes energy services which can contribute to the increasing of the energy efficiency of the objects, technological processes and services, and energy efficiency of the objects, technological processes and services, and which accepts financial risk for the undertaken services, since their services which accepts financial risk for the undertaken services, since their services are paid, fully or partially, through the savings, arising from the implemented are paid, fully or partially, through the savings, arising from the implemented measuresmeasures

Inspection of the provisions of the Law are related to:

- energy management system,- performance of energy audits,- energy efficiency labeling- and complying with the minimum requirements of EE

 Inspection is performed by:  - MEDEP through:  - electrical inspector

- inspector of boilers- Market inspectors

Inspection

www.merz.gov.rs

Republic of Serbia Ministry of Energy, Development and

Environmental Protection

Thank you for your attention!Thank you for your attention!