study on the potential and utilization of renewable energy ... · part i: study on the potential...

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European Union

Project: “Towards the future"

Ref. No. 2007CB16IPO007-2012-3-086

- IPA CROSS-BORDER

PROGRAMME CCI Number 2007CB16IPO007

Study on the potential and utilization of renewable energy sources in the cross-border region

(South-East region in the Republic of Macedonia and South-West region in the Republic of Bulgaria)

December, 2014

Strumica

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Study on the potential and utilization of renewable energy sources in the cross-border region

December, 2014

Strumica

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Disclaimer: The contents of this report are the sole responsibility of Ekspo Scenario LLC – Skopje, Republic of Macedonia and EnEfect – Consult LLC – Sofia, Republic of Bulgaria and can in no way be

taken to reflect the views of the European Union or the Macedonian and Bulgarian authorities.

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Contents Contents........................................................................................................................................................... 4

Part I: Study on the potential and utilization of renewable energy sources in the South-East region in the Republic of Macedonia ..................................................................................................................................... 7

Expert team which prepared the study: ........................................................................................................... 7

Executive summary .......................................................................................................................................... 8

1. Introduction ............................................................................................................................................... 12

2. Objectives of the study ............................................................................................................................... 13

3. Research methodology ............................................................................................................................... 13

4. Data on the potential of renewable energy sources in the Southeast planning region ............................... 14

4.1. General information about the region ....................................................................................... 14

4.2. Municipality of Bogdanci ............................................................................................................ 15

4.3. Municipality of Bosilovo ............................................................................................................. 20

4.4. Municipality of Valandovo ......................................................................................................... 24

4.5. Municipality of Vasilevo ............................................................................................................. 28

4.6. Municipality of Gevgelija ............................................................................................................ 32

4.7. Municipality of Dojran ................................................................................................................ 37

4.8. Municipality of Konche ............................................................................................................... 41

4.9. Municipality of Novo Selo .......................................................................................................... 44

4.10. Municipality of Radovish .......................................................................................................... 48

4.11. Municipality of Strumica .......................................................................................................... 52

5. Summary of the data for the relevant RES in the Southeast planning region and potential for decreasing the CO2 emissions .......................................................................................................................................... 56

6. Review of Technologies for Utilising RES .................................................................................................... 60

6.1. Technology for Utilising Hydro Energy ....................................................................................... 60

6.2. Technology for Biomass Use ...................................................................................................... 65

6.3. Application of Geothermal Energy ............................................................................................. 73

6.4. Technology for the Utilization of Solar Energy ........................................................................... 76

6.5. Wind Energy: Technologies of Use ............................................................................................. 79

7. Analysis of the Potential for Use of RES ...................................................................................................... 82

7.1. Hydropower Potential ................................................................................................................ 82

7.2. Biomass Potential ....................................................................................................................... 86

7.3. Review on the Potential of Geothermal Energy ......................................................................... 95

7.4. Review on the Potential of Solar Energy .................................................................................... 99

7.5. Review on the Potential of Wind Energy ................................................................................. 101

8. Main barriers to the implementation of projects utilising RES ................................................................. 104

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9. Project proposals for utilising RES and mechanisms for financing projects in this area in the Republic of Macedonia ................................................................................................................................................... 106

9.1. Project proposals and analysis of their economic viability ...................................................... 107

9.2. Possibilities for financing energy efficiency and renewable energy sources projects in the Republic of Macedonia .................................................................................................................... 128

10. Conclusions ............................................................................................................................................ 132

11.Recommendations .................................................................................................................................. 135

11.1. Recommendations for overcoming potential barriers for utilising RES ................................. 135

11.2. Steps for adoption and implementation of projects for utilising RES in the municipalities in the Southeast planning region of the Republic of Macedonia........................................................ 136

References ................................................................................................................................................... 141

Graphic appendixes ...................................................................................................................................... 144

Part II: Study on the potential and utilization of renewable energy sources in the South-West region in the Republic of Bulgaria ..................................................................................................................................... 148

Expert team which prepared the study: ....................................................................................................... 148

1. Introduction ............................................................................................................................................. 149

2. General information about RES in the targeted municipalities ................................................................. 150

2.1 Bansko ....................................................................................................................................... 151

2.2 Belitsa ........................................................................................................................................ 153

2.3 Blagoevgrad ............................................................................................................................... 154

2.4 Boboshevo ................................................................................................................................. 156

2.5 Gotse Delchev ............................................................................................................................ 158

2.6 Garmen ...................................................................................................................................... 160

2.7 Kocherinovo............................................................................................................................... 162

2.8 Kresna ........................................................................................................................................ 164

2.9 Petrich ....................................................................................................................................... 166

2.10 Razlog ...................................................................................................................................... 169

2.11 Rila ........................................................................................................................................... 170

2.12 Sandanski ................................................................................................................................. 172

2.13 Satovcha .................................................................................................................................. 176

2.14 Simitli ....................................................................................................................................... 177

2.15 Strumyani ................................................................................................................................ 179

2.16 Treklyano ................................................................................................................................. 181

2.17 Hadzhidimovo .......................................................................................................................... 182

2.18 Summary of the data for available RES ................................................................................... 184

3. Technologies for utilizing RES ................................................................................................................... 190

3.1 Geothermal power .................................................................................................................... 190

3.2 Solar power ............................................................................................................................... 194

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3.3 Wind power ............................................................................................................................... 199

3.4 Hydropower ............................................................................................................................... 203

3.5 Biomass ..................................................................................................................................... 208

3.6 Biogas ........................................................................................................................................ 210

4. Major obstacles hindering the implementation of RES projects ............................................................... 215

5. Funding mechanisms ................................................................................................................................ 216

5.1 Personal funds ........................................................................................................................... 217

5.2 Loans.......................................................................................................................................... 217

5.3 Energy Efficiency and Renewable Sources Fund ....................................................................... 217

5.4 National Trust Eco Fund ............................................................................................................ 218

5.5 European Energy Efficiency Fund .............................................................................................. 220

5.6 BG04 Energy Efficiency and Renewable Energy Programme .................................................... 220

5.7 Rural Development Programme 2014–2020 ............................................................................. 222

5.8 Operational Programmes 2014–2020 ....................................................................................... 223

5.9 Energy Efficiency Programme of the European Investment Bank and Kozlodui International Fund ................................................................................................................................................. 225

5.10 Cross-Border Cooperation Programmes ................................................................................. 226

5.11 LIFE Programme ...................................................................................................................... 226

5.12 Guaranteed Result Contracts (ESCO contracts) ...................................................................... 227

5.13 Energetics and Energy Savings Fund ....................................................................................... 228

5.14 Public-Private Partnerships (PPP) ............................................................................................ 228

6. Conclusions .............................................................................................................................................. 229

7. Recommendations ................................................................................................................................... 231

7.1 Main steps for the implementation of a project for RES utilization ......................................... 231

7.2 Role of the municipality for the full utilization of free RES resources ...................................... 233

Sources ........................................................................................................................................................ 236

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Part I: Study on the potential and utilization of renewable energy sources in the South-East region in the Republic of Macedonia

This part of the Study is prepared by EKSPO SCENARIO LLC - Skopje, for the Center for development of South-East planning region – Strumica.

Expert team which prepared the study:

1. Assoc. Prof. Dr Vladimir Mijakovski, Doctor of Technical Sciences, Technical Faculty - Bitola, University "St. Kliment Ohridski ", Team leader - Expert in the field of energetics and renewable energy; 2. Assoc. Prof. Dr Vangelce Mitrevski, Doctor of Technical Sciences, Technical Faculty - Bitola, University "St. Kliment Ohridski ", Expert in the field of energetics and environmental protection; 3. Full Prof. Dr Tale Geramitcioski, Doctor of Technical Sciences, Technical Faculty - Bitola, University "St. Kliment Ohridski ", Expert for assessment of the environmental impact.

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Executive summary

Life on Earth originated and survived millions of years as a result of the favorable climatic conditions. The climate can be considered as a renewable resource whose energy component is comprised from the solar energy, while the material component represents oceans as water tanks. The solar energy stimulates circulation of water on Earth and thus enables life on it. The places without water have low quality of life (e.g. the deserts). Climate changes on Earth reached such a level of impact that we can already discuss about the climate crisis. If this approach tends to continue in the future, it can lead to further serious climate changes, which will threaten the life of plants and animal species sensitive to climate. The idea how to avoid the situation is very simple and it suggests returning to less harmful energy sources.To avoid such future of the Earth, some countries intensively started to promote programmes for saving energy and to orient towards "clean" energy sources.

Renewable energy sources can be divided into two main categories: traditional renewable energy sources such as biomass and large hydropower plants and the so called "new renewable energy sources" such as the solar energy, wind energy, geothermal energy, etc. The renewable energy sources development (especially the one from wind, water, sun and biomass) is important for several reasons:

Renewable energy sources play very important role in reducing emissions of carbon dioxide (CO2) in the atmosphere. Reducing emissions of CO2 in the atmosphere is a policy of the European Union (EU), so it should be expected that Macedonia as a country - candidate for EU membership, will have to accept that policy;

Growth of the share of renewable energy sources increases the energy sustainability of the systems. It also helps in improving the security of energy supply in a way that it reduces dependence on imported energy raw materials and electrical energy.

In medium and long term, renewable energy sources will become competitive with the conventional energy sources from economic point of view.

The main goal of the study is to analyse possibilities of using the potentials of renewable energy sources (RES), which naturally belong to the areas of the ten municipalities located in the Southeast planning region of the Republic of Macedonia. It is achieved by defining the existing potentials of RES in the region, the state of their current usage, balance and categorization based on quality, energy value, energy resources, etc. Analysis are also covered in the study, quantification and evaluation of the environmental benefits of the substitution of fossil fuels with energy generated from renewable sources through reduction of CO2 emissions. In the Executive summary, a short summary overview of all types of RES at the level of Southeast planning region is given.

Hydro energy

The hydro power potential of the whole region is relatively limited. A part from the project for Vardar Valley which includes construction of 10 hydropower plants along the river Vardar from Veles to Gevgelija, 4 of which are with larger installed capacity and belong to the municipalities of the Southeast region, there are no other significant potentials for using hydro power to obtain electricity.

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Biomass

Biomass as energy source can be used only for heating households, but is not sufficient to produce significant amounts of electricity. There is a considerable potential of waste from wood biomass, but they are used individually and without any organized strategy.

Biogas

According to the number of inhabitants of the whole Southeast planning region and based on the recommendations given in the literature, in order to have positive economic effect from processing the solid municipal waste with the purpose to get electricity through using biogas (methane) as a by-product, the optimal number of people in the surrounding where the plant for processing waste into electricity would be placed is considered and should be at least 250,000 inhabitants. Therefore, it can be concluded that utilization of this type of RES for energy purposes cannot be justified from economic point of view. Despite the availability of anaerobic digestion as a proven technology for commercial purposes, the digesters are still at a level of technical and commercial development. It is possible to use this resource in relatively small capacities.

Geothermal energy

Close attention should be focused on exploitation of geothermal energy potential in the municipalities of Gevgelija and Strumica where this potential is used exclusively for balneology purposes and to the lesser extent for low temperature heating of greenhouses for early vegetables due to low temperature gradient. In the municipalities of Dojran and Radovish there are also boreholes with geothermal waters with weak temperature gradient which are not fully explored.

Solar energy

The lack of electricity production from photovoltaic power plant (PVPP) is evident in all ten municipalities. A lot of finished or under construction PVPPs operate at the territory of Valandovo, Strumica, Radovish. Novo Selo and Konce. Except for the PVPP in Valandovo, all the other PVPPs operate with very low capacity, i.e. they have an installed single power less than 50 kW. At the time of writing of this study, it was not possible to gain the status of a preferential producer of electricity from photovoltaic power plants as a consequence of reaching the maximum allowed installed capacity in the Republic of Macedonia. On the other hand, the continuous decline of the price of the solar energy systems (both for production of thermal energy and production of electricity) should contribute to wider use of smaller systems of this kind in the near future.

Wind energy

In municipality of Bogdanci the wind energy is already exploited. Good conditions for using wind energy exist in Gevgelija, determined by the nature and the geostrategic coordinates of the municipality in the area of mountain Kozhuf and near the village of Davidovo. In the remaining municipalities, the potential of wind energy is insignificant. A handicap for greater use of renewable energy sources in the near future is the limitation of the total installed capacity of wind power which up to December 31, 2016 should be 65 MW. An increasing use of wind energy is possible by applying hybrid systems - small wind aggregates in combination with other renewable energy sources (e.g. Photovoltaic panels or geothermal heat pump), especially in households or small public objects.

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Summary of the potential of RES by municipalities

Based on the analysis of the thoroughly processed data for the potential and the current level of utilisation of the renewable energy sources (RES) in the Southeast region, the current level of utilization and assessment of the potential for further exploitation of the renewable energy sources for production of electricity, according to the type of energy resource, and for each municipality in the Southeast region are shown in the Table 1.

Table 1. Current status and potential for production of electricity from renewable energy sources for all

municipalities in the Southeast region Name of

the municipality

Annual production of electricity (in GWh)

SHPP (existing)

SHPP (potential)

Wind (existing)

Wind (potential)

Photovoltaic (existing)

Photovoltaic (potential)

Biogas (existing)

Biogas (potential)

Bogdanci 0 0 90 150 0 - 0 0,14

Bosilovo 0 2,44 0 0 0,02 - 0 0,90

Valandovo 0 0,77 0 0 2,78 - 0 0,29

Vasilevo 6,18 8,78 0 0 0 - 0 0,48

Gevgelija 0 3,53 0 120 0 - 0 0,25

Dojran 1,50 1,50 0 0 0 - 0 0,18

Konche 0 0 0 0 0,07 - 0 0,36

Novo Selo 0 2,47 0 0 0,61 - 0 0,48

Radovish 0,71 6,43 0 0 0,07 - 0 0,81

Strumica 0,64 4,28 0 0 0 - 0 0,74

SE Region 9,03 30,20 90 270 3,55 - 0 4,63

* The production of electricity from the existing photovoltaic power plants is calculated according the Strategy1 for average

annual number of sunny hours of 1.400. The existing PVP, and PVP under construction are taken into consideration.

** Due to the fulfillment of the upper limits set in the Decision of the Government2, it is not possible to estimate the annual

production of electricity from photovoltaic power plants because the potential of this energy resource is practically inexhaustible and its use is conditioned only by the reception capacity of the electricity system.

Table 2. shows the current state and the potential for production of thermal energy from renewable

energy sources according to the type of energy resource, and for each municipality in the Southeast

region.

Table 2. Current state and potential for production of thermal energy from renewable energy sources for each municipality in the Southeast region

Name of municipality


Biomass (existing)

*

Biomass (potential)

**

Solar (existing)

***

Solar (potential)

Geothermal (existing)

Geothermal (potential)

Bogdanci - 1,84 - 0,86 0,00 0,00

Bosilovo - 2,91 - 1,24 0,00 5,26

1 Decision for the total installed capacity of the authorized producers of electricity generated from each

renewable energy source separately (“Official Gazette of the Republic of Macedonia”, no. 56/13). 2 Strategy for utilisation of the renewable energy sources in the Republic of Macedonia, Macedonian Academy

of Arts and Sciences (MANU), Skopje, June 2010.

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Valandovo - 4,91 - 1,17 0,00 0,00

Vasilevo - 6,41 - 1,1 0,00 0,00

Gevgelija - 6,86 - 2,38 131,40 432,66

Dojran - 1,24 - 0,34 0,00 10,25

Konche - 2,59 - 0,35 0,00 0,00

Novo Selo - 2,47 - 1,07 0,00 0,00

Radovish - 8,12 - 2,73 0,00 1,93

Strumica - 4,87 - 5,25 65,70 170,91

SE Region - 42,22 - 16,49 197,10 621,00

* The current production of thermal energy from biomass waste is not possible to be determined due to lack of data as a result of the unorganized collection and use of biomass waste (waste from logging and wood processing and waste from agriculture). ** The estimated production of thermal energy from biomass waste includes waste from logging and processing of wood and waste from agriculture (pruning of vineyards). *** Due to lack of data it is not possible to calculate the annual production of thermal energy from solar thermal systems.

The non-technical overview of the potential for utilisation of the RES in the Southeast region, ranked

in five categories, is given in the Table 3.

Table 3. Potential for using RES in a region ranked by categories

Name of

municipality

Type of Renewable Energy Source

Hydro energy Biomass Geothermal

energy Solar energy

Wind energy

Bogdanci Insignificant Insignificant Insignificant Very big Very big

Bosilovo Average Average Big Very big Insignificant

Valandovo Small Big Insignificant Very big Insignificant

Vasilevo Very big Very big Insignificant Very big Insignificant

Gevgelija Big Very big Very big Very big Very big

Dojran Small Insignificant Big Very big Average

Konche Insignificant Small Insignificant Very big Insignificant

Novo Selo Average Small Insignificant Very big Insignificant

Radovish Very big Very big Average Very big Insignificant

Strumica Big Big Very big Very big Insignificant

* The potential for utilisation of the RES is ranked in five categories: insignificant (red colour), small (rose), average (yellow), big (light green) and very big (green)

The categorization in Table 3 was done on the basis of the participation of a particular municipality

in the potential for energy production for every RES in the total potential for energy production of

the same source at regional level: participation greater than 25% - very high potential; participation

from 20 to 25% - great potential; participation from 15 to 20% - average potential; participation from

8 to 15% - small potential and participation less than 8% - insignificant potential.

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All ten municipalities have energy potential from renewable energy sources ranging in size and for each renewable energy source the possible technologies for their utilisation are presented in the study.

As a general conclusion it can be stressed the fact that the existing potential of renewable energy sources cannot significantly increase the amount of domestic production of electricity from renewable sources. However their increased use can drastically improve the living standards of the population in the region, as well as to provide strong stimulation for the local socio-economic development of municipalities and the region as a whole.

Republic of Macedonia, as a country - candidate for EU membership is up to date with the trends at European level and constantly harmonizes its legislation with the European one. The main regulation which regulates the RES market is already adopted, as well as the feed-in tariffs and other subsidies for the future investors in this sector.

The municipalities as local authorities are free to invest and to attract investors who will expand the use of renewable energy sources in their local communities.

However, despite all these development activities, there are still many barriers that prevent full expansion in utilising RES. Those obstacles as well as the recommendations to overcome them are given in the Study.

1. Introduction

The use of renewable energy sources is not new at all. In the history of mankind, renewable sources of energy had long been a unique opportunity for energy production. This situation changed with the industrial revolution when lignite and brown coal became increasingly important. Later, the significance of crude oil also increased. With the advantages like easy transportation and use as material for further processing, crude oil became one of the main energy of present time. Natural gas used for heating of premises and electricity generation also became an important energy source because of its wide availability and low investment costs in terms of facilities for conversion of energy. With the growing use of fossil fuels for energy production, the use of renewable energies became smaller in absolute and relative terms. Apart from a few exceptions, renewable energy is second in terms of overall energy production.

However, the use of fossil energy carriers includes a series of undesirable side effects that are less and less tolerated in industrialized societies because of the possible environmental and climatic effects of the early 21st century. This is why the search for environmental, climatic and socially acceptable alternatives is more and more intense. Also, in terms of rising prices of fossil fuels globally, additional efforts have been made to find acceptable options for the utilization of renewable energy sources.

According to the European Directive 2001/77/EC3, the share of renewable energy in the total energy consumption by 2020 should be 20%, and by 2040 as much as 40%. The share of renewable energy in primary energy consumption in the EU in 2012was more than 14.1%4. In the same direction is the EU

3 Directive 2001/77/EC is replaced by Directive 2009/28/EC, by which Member States and candidate countries

for EU membership are imposed with a specific percentage and deadline to 2020 to substitute the usable energy from classical sources - fossil fuels with energy from renewable sources. 4Web site of Eurostat (Statistical Office of EU)

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=t2020_31, last accessed on the 23.09.2014.

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=t2020_31

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Directive on full replacement of old string lights with new, energy-saving compact fluorescent ones by 20125, which should achieve great savings on electricity and consequently, reduced CO2 emissions in the atmosphere.

2. Objectives of the study

The main goal is to design a comprehensive study on the possibilities of using the potential of renewable energy sources (RES), which naturally belong to the areas of the ten municipalities located in the Southeast planning region of the Republic of Macedonia and the municipalities that constitute the Southwest region of the Republic of Bulgaria. This is accomplished by defining the existing potentials of RES in the region, the situation with their current usage, balance and categorization of quality, energy value, energy resources, etc. In the study are also covered analysis, quantification and evaluation of the environmental benefits of the substitution of fossil fuels with energy generated from renewable sources through reduction ofCO2 emissions.

The study also contains proposed solutions from technical and technological aspect that will allow replacement of the used energy from fossil fuels by utilizing renewable energy, categorized according energy resource.

The specific objectives of the study are related to support local and regional development of the settlements in the Southeast planning region, with particular reference to the ten municipalities.

3. Research methodology

Goals set in the study directly derive from the national and European policy for intensive use of natural resources of the regions/ countries in the exploitation of renewable energy sources, also incorporated in the European Directive on the use of renewable energy sources 2009/28/EC, the Law on Energetics of the Republic of Macedonia, the National Strategy for Energetics Development of the Republic of Macedonia to 2030, the National Strategy for RES to 2020, regulations for Energy Efficiency (EE) of buildings, regulations for energy control and so on. From the viewpoint of hierarchy, the European Directive 2009/28/EC imposes on Member States and candidate countries for EU membership a specific percentage and deadline to substitute the usable energy from classical sources - fossil fuels with energy generated from renewable sources until 2020. These regulations are incorporated into national laws, strategic documents, regulations, norms and standards in the field of energetics, i.e. energy derived from renewable sources. According to these guidelines, the first implementers are users/ owners of public buildings, such as the state bodies and institutions, public enterprises and municipalities with all their infrastructure potential in the field of public buildings used for administrative and technical activities of the municipalities, public buildings in the educational network, social welfare, culture and sports.

The methodology of the research is based on the following steps:

5Directive 2009/125/EC and EU Regulation No. 1194/2012

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Collecting information and the necessary data from the existing locations of all identified renewable energy sources, defining their potential, the degree of involvement in the current process of energy supply to facilities/ municipalities included in the study as a target group;

Analysis of the whole documentation, existing designs, elaborates, studies in the field of energy efficiency at the municipal level from all municipalities in the Southeast planning region included in the study;

Review and analysis of existing databases in the agencies and institutions at state level which keep documentation for energy potential of renewable energy sources, related to the Southeast region with the ten municipalities which are target group of the research;

Analysis of the collected data through systematization, sorting according the relevance and energy potentials, sorting according the probability of actual use of the existing energy resources, deriving appropriate conclusions and possible proposals for solutions for particular municipalities, parts of municipalities or important buildings which are large energy consumers;

Search, analysis and extraction of possible technical and technological solutions for the application of the potential renewable energy resources separately or in combination with one another;

Assembling the results of the research in a logical sequence with a defined degree of applicability and efficiency in terms of energy savings by including energy potential of renewable energy sources;

Preparation of the study with accompanying graphics for the region as a whole and for the municipalities in the region separately;

Preparation of an effective presentation of the research results, proposed technical and technological solutions and other indicators that determine the extent of applicability concerning the financial aspect;

Introducing the results and proposed solutions to the target groups: representatives of municipalities in the region, the management staff of public institutions, experts, businessmen and other stakeholders.

4. Data on the potential of renewable energy sources in the Southeast planning region

4.1. General information about the region

The Southeast Region is situated in the far southeast of the Republic of Macedonia and covers the area of Strumica - Radoviš Valley as well as Gevgelija - Valandovo Valley, that is the lower flow of the river Vardar. According the data for 2013, 8,4% of the total population in the Republic of Macedonia live in this region. It covers 10,9% of the total area of the state, with a population density of 63,3 inhabitants per km2.

The rich hydro graphic network, the large number of sunny days, the climate, and the favourable pedological conditions characterize the region as mostly agricultural. The quality and

extensive production of early crops, fresh vegetables and fruits, as well as industrial crops, enable the development of processing industry of agricultural products which characterises this region. In recent

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years there has been an upward trend in the tourism industry, represented by the increase in the number of accommodation facilities, tourists and overnight stays in the region. This is mostly due to the revitalization and use of Dojran Lake as tourist potential.

Typical for the region is that in 2013 the rate of activity and the employment rate were the highest compared with other regions and reached 69,9% and 56,8% respectively, while the unemployment rate, compared with the other regions was the lowest one reaching 18,8%.

The municipalities which are subject of this study will be reviewed in a detail in the section that follows. For each municipality the potentials of RES will be reviewed separately.

4.2. Municipality of Bogdanci

General data

The territory of the Municipality of Bogdanci occupies an area in the southern part of the country on the left side of the river Vardar. From morphological point of view, the municipality is in general very flat area with very good classification of the land, so it is considered as one of the best agricultural areas, especially for production of early vegetables. It borders with the municipalities of Dojran, Valandovo and Gevgelija, as well as in the wider area with the state border line with Greece. The municipality is consisted of only four settlements, whereas Bogdanci is a central place and a municipal seat. Other settlements in the municipality are: Stojakovo, Selemli and Gjavato. All settlements are at low altitudes, below 100 m.

Area: 114 km2

Population: 8,707

Settlements: 4

Main industries: Agriculture; Transport.

Number of business entities: 206

Key priorities for local economic development:

Development of agriculture primarily through strengthening the capacities for processing of agricultural products; Establishment of new small and medium enterprises, reactivation and employment of the educated workforce.

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Figure 4.2.1.Map of the Municipality of Bogdanci with its settlements

Hydro energy

The Municipality of Bogdanci is poor with streams and springs. Area which is richer in waters is the alluvium of the river Vardar, where wells for water supply and irrigation of arable land have been built. Near the settlement Gjavato, wells for water supply of the population of Bogdanci and Gjavato are built and wells as part of the project "Save the Dojran Lake" for supply of additional quantities of water in the Dojran Lake.

The potential for construction of small hydro power plants (SHPP) is defined in the "Study on hydropower potential of small hydro-power plants" prepared in 19826. In the aforementioned study, there is not any location in the region of the Municipality of Bogdanci which was identified as potential for construction of SHPP.

Biomass

Deforestation waste: Forests cover an area of 2.720 ha of the Municipality of Bogdanci. The climatic features, distribution of precipitation and high temperatures do not provide opportunities for the development of highly productive forests. The felled amounts of timber from private forests are very small and are only used for heating (firewood). The possible annual logging, i.e. the total possible annual felled timber is just over 1.600 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Kozhuf" - Gevgelija, on the territory of the Municipality of Bogdanci is about 1.270 m3, with estimated normative waste of 9,09% or about 115 m3. Assuming that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ / kg, that is an energy potential of:

115 m3 x 650 kg/m3 x 14,5 MJ/kg = 0,75x106 MJ/year

which is 211 MWh/year or approximately 19 toe (tons of oil equivalent) per year.

6 Study of possible mini and small hydropower plants in SR Macedonia, Republic Committee for Energy SR

Macedonia 1982.

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Agricultural waste: The total available area of agricultural land in the municipality is 3.402 ha, while the area of used agricultural land in the municipality is 3.305 ha. The distribution of agricultural land by crops is given in the Table 4.2.1.

Table 4.2.1. Used agricultural land in the municipality Bogdanci by crops [in ha]7

Total land used

Arable land and gardens Orchards Vineyards Meadows Pastures

3.305 2.650 70 453 132 97

Most of the areas with arable land, gardens and home gardens are used for production of cereals (wheat and barley) and vegetables (cabbage, tomatoes, onions and potatoes). They cover over 90% of the arable areas. The most represented from the other crops are industrial plants, and the production of tobacco is the most dominant.

With an average annual production of 3 tons of vine canes per hectare obtained by vine pruning, about 1.359 tons of waste biomass is obtained from the total area of 453 ha of vineyards. The practical availability of vine canes is estimated at 510 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total potential of energy contained in them is:

510.000 kg/year x 11,5 MJ/kg = 5,860⋅106 MJ/year

or approximately 1.628 MWh/year or 140 toe (tons of oil equivalent) per year.

With production of at least one ton of orchard pruning waste per hectare, at least 70 tons of waste biomass is obtained annually.

Livestock breeding residues: The mass of waste contained in livestock manure is used for energy needs primarily through biogas which is produced with anaerobic fermentation. The livestock bred in the municipality area consists of sheep, goats, pigs and poultry. Their number is given in the Table 4.2.2.

Table 4.2.2. Number of cattle, horses, sheep, pigs and poultry raised in the Municipality of Bogdanci8

Cattle Horses Sheep Pigs Poultry

Total 335 744 1,542 774 4,122

Stall barn livestock 235 521 386 387 2,885

The following table presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Bogdanci.

7Statistical review: Agriculture, "Agriculture, orchards and vineyards 2013", State Statistical Office of the

Republic of Macedonia, Skopje, May 2014. 8 Census of Agriculture 2007, Book I, II and III, State Statistical Office of the Republic of Macedonia, Skopje,

2007.

- 18 -

Table 4.2.3. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Bogdanci

Type of livestock Livestock breeding residues

Mass, kg/day Theoretical t/year Technical t/year Economic t/year

Cattle 32,6 2.790 1.953 1.563

Horses 28 5.323 1.331 931

Pigs 2,4 338 169 51

Sheep 6,5 918 643 514

Poultry 0,15 158 111 66

TOTAL 9.527 4.206 3.125

In the Municipality of Bogdanci, waste mass of stall barn breeding livestock and poultry is estimated at about 3.125 tons per year from which a total of about 80 m3 biogas can be obtained per year with a total energy of about 0,54 GWh or 47,5 toe (tons of oil equivalent) per year (for comparison: for heating of the premises of the Technical Faculty in Bitola with usable area of approximately 6.000 m2, about 45 tons of extra light household oil per year are needed9).

Geothermal energy

Significant sources of geothermal energy are not identified on the territory of the Municipality of Bogdanci, i.e. hydrothermal potentials are insignificant.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Bogdanci which is 2.597 is taken into account and in the long run10 it can be assumed that 25% of them (645) will have the opportunity to install domestic solar systems for heating of hot water. The annual delivered energy according these assumptions is about 0,86 GWh (645 × 2,2 m2 × 600 kWh/m2).

Currently on the territory of the Municipality of Bogdanci there is no registered producer of electricity from renewable sources - photovoltaic plant.

Wind energy

Until now, several studies have been prepared in Macedonia to determine the most suitable locations for construction of a wind power plant (WPP) and assessment of the wind energy on the appropriate locations. Based on the study prepared by AWS Truewind, Atlas of wind energy potential in Macedonia was defined. Result of the Atlas were 20 potential locations identified throughout the country, with the potential for installing wind power plants (WPP) with a capacity of 25 MW to 33 MW. One of the two most suitable locations for the construction of WPP is located in the

9 Report on conducted energy audits of the facility Technical Faculty - Bitola, University "St. Kliment Ohridski ",

Bitola, Faculty of Technical Sciences, May 2014. 10

Strategy for the use of renewable energy sources in the Republic of Macedonia, MASA (Macedonian Academy of Sciences and Arts), Skopje, June 2010.

- 19 -

Municipality of Bogdanci. Table 4.1.4.provides basic data about that location Ranavec in the Municipality of Bogdanci11.

Table 4.2.4 Data for the construction site of WPP in the Municipality of Bogdanci

Ref. no. Elevation

(m) Wind speed of

80 m (m/s)

P

(MW)

Lowest estimate of costs for connection to the electricity system

(Million €)

10 (Ranavec) 408 7,04 25 1,39

Construction activities of the Wind Power Plant Park (WPPP) “Bogdanci” started at the location Ranavec in May, 2013. The construction of the wind power plant park "Bogdanci" was completed in February 2014, the first such facility in the Republic of Macedonia which will use the wind as the driving force for the production of electricity. At the end of March 2014, a coordinated operation of three energy companies ELEM, MEPSO and EVN Macedonia was carried out to connect the wind power plant park with the electricity grid through the substation in Valandovo. Through this intervention the necessary preconditions were created to start the testing of the complete equipment through trial production of electricity which began in early April 2014 when the first kilowatt-hours were delivered to the power system of the Republic of Macedonia.

The wind power plant park will be implemented in two stages: the first one with 36,8 MW and net annual production of 90 GWh and the second one with the remaining 13,8 MW and additional net production of 33 GWh.

The scheme of the wind park is consisted of 22 wind turbines that are arranged in a line up to the top of the ridge.

In the first stage 16 wind turbines are set up. The layout of the wind park with the set-up of the wind turbines is shown on Figure 4.2.2.

The turbines are product of Siemens - Denmark and they are considered among the best in their class. The installed capacity of each wind turbine is 2,3 MW, the height of the pole is 80 meters and the diameter of the propellers is 93 meters. The WPPP “Bogdanci” is expected to deliver at least 120 GWh of sustainable energy, which is sufficient to supply more than 18,500 households in the country on annual basis.

11

Wind Energy Resource Atlas and Site Screening of the Republic of Macedonia, AWSTruewind LLC, USA, June 2005.

- 20 -

Figure 4.2.2. Layout of WPPP "Bogdanci" (turbines installed in the first stage are marked with red colour)12

During the preparation of this study, the first stage of the WPPP “Bogdanci” was completed and Wind Power Plant put into operation.

4.3. Municipality of Bosilovo

General data

The Municipality of Bosilovo is located in the middle part of the fertile Strumica field, between the mountains of Ograzhden and Belasica. Тhe rivers Strumica and Turija flow through its central part, into the river Struma in Bulgaria. Municipality of Bosilovo borders the neighbouring municipalities of Vasilevo, Novo Selo and Strumica and together with them creates the Strumica micro-region, as well as with Berovo.

Area: 140 km2

Population: 14.260

Settlements: 16

Main industries: Agriculture; Livestock Breeding.

Business entities: 175


Development of modern agricultural production of healthy food; Development of eco-tourism; Environmental protection; Support for development of small and medium enterprises.

12

Wind Power Plant Park - Pilot Project, JSC “Macedonian Power Plants”, Skopje 2012.

- 21 -

Figure 4.3.1. Map of the Municipality of Bosilovo with its settlements

Hydro energy

The Municipality of Bosilovo has rich hydrography composed of several rivers, watercourses and micro accumulations.

As already mentioned, the rivers Strumica and Turija flow through the central part of the municipal territory. Apart from those two rivers, the rivers Shtuka, Jazga, Ilovica and Vodochnica (Monospitovo Channel) also flow through its territory. There are two micro accumulations: Ilovica and Drvoshka.

From all SHPPs identified in the study13, a total of eight (8) are located on the territory of the Municipality of Bosilovo. Their characteristics are given in the Table 4.3.1.

Table 4.3.1.SHPP in the Municipality of Bosilovo defined in the study for possible small and mini hydro power plants (HPP) in Macedonia

Ref. no Watercourse or name

ofHPP

Net fall

Hn [m]

Installed flow

qvi [m3/s]

Installed power

Pi [kW]

Generated energy

E [MWh/year]

276 Barlenski s. 237 0.120 227 877

287 Stuchka 181 0.082 119 460

288 Jazga 79 0,115 72 285

289 Jazga 80 0,172 110 425

290 Jazga 79 0,196 124 479

291 Chaushica 94 0,084 63 243

13

Study on possible mini and small hydro power plants in the SR of Macedonia, Republic Committee for Energy, SR of Macedonia 1982.

- 22 -

292 Chaushica 82 0,084 55 212

293 Leshnika 179 0,105 157 588

Total 927 3.569

If all SHPPs included in the study are built, the total annual production of electricity will be around 3,6 GWh.

Biomass

Deforestation waste: Forests cover about 5.000 ha, or approximately 36% of the territory of the municipality. Most of these areas (over 96%) are state-owned forests. The felled amounts of wood from private forests are very small and are used exclusively for private purposes (firewood). Possible annual logging, i.e. the total possible annual felled timber is just over 9.000 m3. The planned gross annual logging of Branch Forest Enterprise (BFE) “Belasica” - Strumica, on the territory of the Municipality of Bosilovo is about 6.000 m3, with estimated normative waste of 11,06% or about 680 m3. Assuming that the volume of such waste mass is about 650 kg/m3, and that the thermal power has a value of 14.5 MJ / kg, that is an energy potential of:

680 x 650 x 14,5 = 6,41x106 MJ/year,

which is 960 MWh /year or 84,5 toe (tons of oil equivalent) per year.

Agriculture waste: The total available area of agricultural land in the municipality is approximately 7.360 ha, while the used agricultural land in the municipality is about 7.268 ha. The distribution of the used agricultural land by crops is given in Table 4.3.2.

Table 4.3.2. Used agricultural land in the municipality Bosilovo by crops [in ha]14

Total land used Arable land and

gardens Orchards Vineyards Meadows Pastures

7.268 6.303 133 543 289 92

Most of the areas with arable land, gardens and home gardens are used for the production of cereals (wheat and maize), vegetables (peppers, melons, potatoes, cabbage, cucumbers and tomatoes) and fodder crops (alfalfa and clover). They cover 90% of the arable areas. The most represented from the other crops are industrial plants, and the production of tobacco is the most dominant.

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, about 1.629 tons of waste biomass is obtained. The practical availability of vine canes is estimated at 611 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential contained in them is:

611.000 kg/year x 11,5 MJ/kg = 7,025⋅106 MJ/year

or approximately 1.951 MWh/year or 168 toe (tons of oil equivalent) per year.

14

Statistical review: Agriculture, “Agriculture, orchards and vineyards in 2013”, State Statistical Office of the Republic of Macedonia, Skopje, May 2014.

- 23 -

With production of at least one ton of waste per hectare from the pruning of orchards, at least 133 tons of waste biomass is obtained annually.

Livestock breeding residues: The mass of waste contained in livestock manure is used for energy needs primarily through the biogas produced by anaerobic fermentation. Cattle, sheep, goats, pigs and poultry are bred on the territory of the municipality. Their number is given in Table 4.3.3.

Table 4.3.3. Number of cattle, horses, pigs, sheep and poultry raised in the Municipality of Bosilovo15


Total 5.083 1.710 4.361 4.227 53.730

Manure 3.558 1.197 2.181 1.057 37.611

The following table presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Bosilovo.

Table 4.3.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Bosilovo


Mass, kg/day Theory t/year Technical t/year Economic, t/year

Cattle 32,6 42.338 29.636 23.709

Horses 28,0 12.233 3.058 16.596

Pigs 6,5 926 463 139

Sheep 2,4 5.173 3.621 2.897

Poultry 0,15 2.059 1.441 865

TOTAL 62.729 38.220 29.751

In the Municipality of Bosilovo, the waste mass of stall barn breeding livestock and poultry is estimated at about 30 thousand tons annually from which total of about 756 m3 of biogas can be obtained per year with a total energy of about 5,1 GWh or about 450 toe (tons of oil equivalent) per year.

Geothermal energy

The Municipality of Bosilovo lies in Strumica valley, one of the main hydrothermal fields in the Republic of Macedonia. Two sources (boreholes), of the proven reserves of the hydrothermal system in the Strumica Valley, are located on the territory of the Municipality of Bosilovo. Their characteristics are shown in the Table 4.3.516.

15

Census of Agriculture 2007, Book I, II and III, State Statistical Office of the Republic of Macedonia, Skopje, 2007 16

Creating preconditions for use of geothermal potential in Bregalnica- Strumica region, Association of citizens “Regional economic development in Bregalnica- Strumica region”, Skopje, November 2006.

- 24 -

Table 4.3.5. Characteristics of geothermal resources in the Municipality of Bosilovo

Locality Temperture

(C)

Quantity

(l/sec)

Reserves

(l/sec)

Thermal power

(MWt)

Staro Baldovdci,

Borehole 29 5 5 0,60

v. Saraj, Borehole 19 0,5 - -

Total 5,5 5 0,60

The hydrothermal system of the Municipality of Bosilovo, as one of the most promising localities in Strumica Valley, is not sufficiently explored. In the future, detailed projects for further exploration in this area should be prepared to explore this geothermal resource for the Municipality of Bosilovo.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Bosilovo which is 3.744 is taken into account and in the long run it is assumed that 25% of them (936) will have the opportunity to install domestic solar systems for heating of hot water. The annual delivered energy according these assumptions is about 1,24 GWh (936 × 2,2 m2 × 600 kWh/m2).

Since 2011, one photovoltaic power plant (PVPP) PHOTON 1 with installed capacity of 11,5 kW has been an operational in the Municipality of Bosilovo.

Wind energy

According the existing data, but also according the Preliminary Wind Atlas for the Republic of Macedonia, there is not any potential location suitable for use of wind energy on the territory of the Municipality of Bosilovo.

4.4. Municipality of Valandovo

General data

Valandovo is a rural municipality located in the southeast part of the country. When comparing the absolute altitude, it is one of the lowest municipalities in the country, with an average altitude of 226 m. The settlements are located along the river Vardar, on its left side, and at the foot of Plavush Mountain. The main competitive advantages of the municipality are: its excellent climate conditions, favourable geographical location (on the crossroad to the border with the Republic of Greece and the Republic of Bulgaria) as well as archaeological sites.

Area: 331 km2

Population: 11.890

Settlements: 19

Main industries: Agriculture, textile industry, food processing industry (canned vegetables).


- 25 -

Key priorities for local economic development: Development of agricultural production; Construction of an industrial zone for small businesses.

Figure 4.4.1.Map of the Municipality of Valandovo with its settlements

Hydro energy

The River Anska, which is a distributary of the River Bashiboska, flows through the territory of the Municipality of Valandovo. Beside these two, there are three more rivers that flow through its territory: Chamadashi, Demirdere, Elajzdere.

From all SHPPs identified in the study17, a total of three (3) are located on the territory of the Municipality of Valandovo. Their characteristics are given in the Table 4.4.1.

Table 4.4.1.SHPP in the Municipality of Valandovo defined in the study for possible small and mini hydro power plants (HPP) in Macedonia

Ref.

no.

Watercourse name of HPP

Net fall

Hn[m]

Installed flow

qvi [m3/s]

Installed power

Pi [kW]

Generated energy

E [MWh/year]

269 Barlenski s. 63 0.225 150 580

270 Demirdere 51 0.183 74 288

271 Еlajzdere 68 0.126 68 264

TOTAL 292 1.132

17

Study on possible mini and small hydro power plants in the SR of Macedonia, Republic Committee for Energy, SR of Macedonia, 1982.

- 26 -

If all SHPPs which are planned in the study are being built, the total annual production of electricity will be around 1,13 GWh.

Biomass

Deforestation waste: Forests cover about 21.000 ha, or approximately 63% of the territory of the municipality. Most of these areas (over 99%) are state-owned forests. The felled amounts of wood from private forests are very small and are exclusively used for private purposes (firewood). Possible annual logging, i.e. the total possible annual felled timber is just over 14.000 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Salandzak" – Valandovo, on the territory of the Municipality of Valandovo is around 11.070 m3, with estimated normative waste of 10,31% or about 1.140 m3. Assuming that the volume of such waste mass is about 650 kg/m3, and that the thermal power has a value of 14.5 MJ/kg, that is an energy potential of:

1.140 x 650 x 14,5 = 7,53x106 MJ/year,

which is 2.100 MWh/year or 187 toe (tons of oil equivalent) per year.

Agriculture waste: The total available area of agricultural land in the municipality is around 8.449 ha, while the used agricultural land in the municipality is around 3.424 ha. The distribution of the used agricultural land by crops is given in the Table 4.4.2.

Table 4.4.2. Used agricultural land in the Municipality of Valandovo by crops [in ha]18



3.424 2.359 244 781 40 5.075

Most of the areas with arable land, gardens and home gardens are used for the production of cereals (wheat, corn and barley), vegetables (watermelon, cabbage, potatoes, peppers, tomatoes, onions and beans), forage crops (alfalfa and clover) and industrial plants (tobacco). They account for 90% of the arable areas.

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, about 2.343 tons of waste biomass is obtained from the total area of vineyards of 781 ha. The practical availability of vine canes is estimated at 879 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential contained in them is:

879.000 kg/year x 11,5 MJ/kg = 10,104⋅106 MJ/year,

which is about 2.807 MWh/year or 241 toe (tons of oil equivalent) per year.

With production of at least one ton of waste per hectare from the pruning of orchards, at least 244 tons of waste biomass is obtained annually.

18


- 27 -

Livestock breeding residues: The waste mass contained in livestock manure is used for energy needs primarily through the biogas produced by anaerobic fermentation. Cattle, sheep, goats, pigs and poultry are bred on the territory of the municipality. Their number is given in the Table 4.4.3.

Table 4.4.3. Number of cattle, sheep, goats, pigs and poultry raised in the Municipality Valandovo19

Cattle Horses Pigs Sheep Poultry

Total 1.837 286 1.268 3.891 8.903

Manure 1.286 200 634 973 6.232

Table 4.4.4. presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Valandovo.

Table 4.4.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Valandovo


Mass, kg/day Theoretical t/year Technical, t/year Economic, t/year

Cattle 32,6 15.301 10.711 8.569

Horses 28,0 2.046 512 358

Pigs 6,5 1.504 1.053 842

Sheep 2,4 852 426 128

Poultry 0,15 341 239 143

Total 20.044 12.940 10.040

In the Municipality of Valandovo, the waste mass of stall barn livestock and poultry breeding is estimated at 10 thousand tons per year from which a total of about 258 m3 biogas can be obtained per year with a total energy of about 1.72 GWh or about 150 toe (tons of oil equivalent) per year.

Geothermal energy

There is no data or evidence about existing sources of geothermal waters on the territory of the Municipality of Valandovo.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Valandovo which is 3.545 is taken into account and in the long run it is assumed that 25% of them (in total 886) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 1,17 GWh (886 × 2,2 m2 × 600 kWh/m2).

On the territory of the Municipality of Valandovo, i.e. in the Village of Rabrovo, there is a registered legal entity Total Solar Ltd from Skopje with a status of preferential electricity producer from RES –

19

Census of Agriculture 2007, Book I, II and III, State Statistical Office of the Republic of Macedonia, Skopje, 2007.

- 28 -

photovoltaic power plant. In its possession are two photovoltaic power plants (PVPP) with installed power of ≤50 kW (PVPP TOTAL SOLAR and PVPP TOP SOLAR) with a total installed power of 2 x 49,98 kW = 99,96 kW. In the village of Rabrovo two photovoltaic power plants are operational with installed capacity of > 50 kW or equal to 1 MW (PVPP Energy Systems), owned by the preferential producer Solar Energy Systems Ltd from Valandovo. The first one has installed power of 962, 36 kW (3.928 panels are installed, 245 W each), and the second one has installed power of 926,10 kW (3.780 panels are installed, 245 W each).

The total installed capacity of the registered photovoltaic power plants on the territory of the Municipality of Valandovo is 1.988,42 kW.

Wind energy

According the existing data, but also according the Preliminary Wind Atlas for the Republic of Macedonia, there is not any potential location suitable for use of wind energy on the territory of the Municipality of Valandovo.

4.5. Municipality of Vasilevo

General data

The Municipality of Vasilevo covers the central part of Strumica - Radoviš valley or the northwest part of Strumica field. The municipality borders with the municipalities of Bosilovo, Berovo, Radovish, a narrow part of Konche and Strumica. The main competitive advantages of the municipality are: possibility for development of rural tourism, food production, utilizing the potential of the dam Turija, and organization and management of the regional landfill Dobroshinci.

Area: 221 km2

Population: 12,122

Settlements: 18

Main industries: Agriculture; Viticulture; Fruit cultivation; Livestock breeding; Wood industry; Textile industry.



Further development of the industrial zone in the village of Vasilevo; Preparation of technical documentation for the industrial zones in the other settlements; Opening wholesale market for agricultural products; Development of Public Enterprise Turija in the field of water supply and collection of waste waters.

- 29 -

Figure 4.5.1. Map of the Municipality of Vasilevo with its settlements

Hydro energy

The rivers Strumica, Turija and Vodochnica flow through the territory of the Municipality of Vasilevo. Apart from these rivers, the accumulation Turija is on the territory of the municipality as part of the Hydro Melioration System Turija. With the accumulation Turija, which has gross volume of 50.350.000 m3, multiannuallevelingof the waters of the river Turija is enabled. Besides its main purpose (water supply to Strumica, industry and irrigation of part of Strumica field) with an area of 10.500 ha, on the inlet steel pipeline Hydro Power Plant Turija has been built, with installed power of 2,2 MW.

From all SHPPs identified in the study20, a total of five (5) are located on the territory of the Municipality of Vasilevo. Their characteristics are given in the Table 4.5.1.

Table 4.5.1.SHPPs in the Municipality of Vasilevo identifiedin the study for possible small and mini hydro power plants (HPPs) in Macedonia

Ref. no

Watercourse or name of HPP

Net

Fall

Hn[m]

Installed flow

qvi [m3/s]

Installed output

Pi [kW]

Generated energy

E [MWh/year]

296 Bela Voda 70 0,093 52 200

297 Bezgashtevska 47 0,543 204 787

298 Nivichanska 205 1,770 2.903 11.188

299 Gelezen Deresi 107 0,075 64 247

300 Leva Reka 88 0,220 155 598

TOTAL 3.337 13.020

20


- 30 -

If all SHPPs which are planned in the study are being built, the total annual electricity production will be around 13 GWh.

Besides the potential SHPP in the Municipality of Vasilevo, the SHPP “Mini Turija” with installed power of 150 kW has been operational since 2013.

Biomass

Deforestation waste: Forests cover 7.516 ha, or approximately 34% of the territory of the municipality i.e. 46,7% of the total agricultural land. The felled amounts of wood from private forests are very small and are exclusively used for heating (firewood). The amount of waste wood biomass is also very small to be considered as potential energy source. Possible annual logging, i.e. the total possible annual felled timber is around 10.400 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) “Belasica” - Strumica,onthe territory of the Municipality of Vasilevo, is about 6.000 m3, with estimated normative waste of 11,06% or about 1.150 m3. Assuming that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is anenergy potential of:

1.150 x 650 x 14,5 = 10,81x106 MJ/year,


Agriculture waste: The total available area of agricultural land in the municipality is approximately 3.243 ha, while the used agricultural land in the municipality is estimated at around 3.080 ha. The distribution of the used agricultural land by crops is given in the Table 4.5.2.

Table 4.5.2. Used agricultural land by crops in the Municipality of Vasilevo by crops[in ha]21



6.324 5.201 133 948 42 200

Most of the areas with arableland, gardens and home gardens are used for the production of cereals (wheat, corn and barley), industrial plants (tobacco), vegetables (peppers, watermelons, tomatoes, cabbage, cucumbers and potatoes) and forage plants (alfalfa and clover on a smaller scale). They account for 90% of the arable land.

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, it is about 2.844 tons of waste biomass. The practical availability of vine canes is estimated at 1.067 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:

1.067.000 kg/year x 11,5 MJ/kg = 12,264⋅106 MJ/year,


21


- 31 -

With production of at least one ton of waste per hectare from pruning of orchards, at least 133 tons of waste biomass is obtained annually.

Livestock breeding residues: The waste mass contained in the livestock manure could be used for energy needs primarily through the biogas produced by anaerobic fermentation. Cattle, sheep, goats, pigs and poultry are bred on the territory of the municipality. Their number is given in the Table 4.5.3.

Table 4.5.3. Number of cattle, horses, sheep, pigs and poultry raised in the Municipality of Vasilevo22


Total 2.296 1.426 4.187 2.089 14.442

Manure 1.607 998 1.047 1.045 10.109

The following table presents the average theoretical, technical and economic potential of waste biomass obtained from stall barn growing livestockin the Municipality of Vasilevo.

Table 4.5.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Vasilevo



Cattle 32,6 19.124 13.387 10.709

Horses 28,0 10.202 2.550 1.785

Pigs 6,5 917 458 138

Sheep 2,4 2.478 1.735 1.388

Poultry 0,15 553 387 232

Total 33.274 18.518 14.252

In the Municipality of Vasilevo, the waste mass of stall barn livestock and poultry breeding is estimated at 14,3 thousand tons annually from which a total of about 366 m3 biogas it can be obtained per year with a total energy of about 2,44 GWh or about 215 toe (tons of oil equivalent) per year.

Geothermal

Despite the fact that the Municipality of Vasilevo is located in Strumica Valley, which is one of the best known sources of hydrothermal waters in the country, there are notsources of thermal waters on its territory.

22


- 32 -

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Vasilevo which is 3.306is taken into account, and in the long run it is assumed that 25% of them (827) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 1,1 GWh (827 × 2,2 m2 × 600 kWh/m2).

Currently, on the territory of the Municipality of Vasilevo there are no registered producers of electricity from RES - photovoltaic plants.

Wind energy

According the existing data, but also according the Preliminary Wind Atlas for the Republic of Macedonia, there is not any potential location suitable for use of wind energy on the territory of the Municipality of Vasilevo.

4.6. Municipality of Gevgelija

General data

The Municipality of Gevgelija is located in the most southern part of the Republic of Macedonia, on the border with the Republic of Greece, at an altitude of 64 m. Through the territory of the Municipality of Gevgelija passes the primary axis of development, part of the corridor X, which stretches along the Vardar valley in the direction of north-south. Its bordering position with Greece is highly important, as well as the possibilities for locating economic facilities that require transport of raw materials and finished products for which the proximity to the port of Thessaloniki is an important comparative advantage.

The newly planned, future “horizontal” connection from Bitola through Mariovo to Gevgelija should have a favourable impact as a traffic route linking the eastern and western parts of the Republic of Macedonia, at the same time integrating the most important tourist areas.

Area: 485 km2

Population: 22.988

Settlements: 17

Main industries: Textile industry, Food industry, Metalworking industry and Electrical industry, Processing of plastics.



Production of ecological food; Tourism development (transit, spa and mountain); Implementation of the project "Free Economic Zone".

- 33 -

Figure 4.6.1. Map of the Municipality of Gevgelija with its settlements

Hydro energy

The area of the Municipality of Gevgelija stretches over the lower part of the basin of the river Vardar, which is the most important watercourse that drains surface and ground waters. The larger streams flowing into the river Vardar are: Suva, Konjska, Mrzenska, Kovanska, Zuica, Petrushka and Javorica river. The tributaries of Vardar have little water flows, and because of that some of them drain during summer. The territory of the municipality shows scarcity of spring watersas well as of groundwaters. The average yield of the sources varies from 1 to 3 l/sec, whereas springs with greater yield are not recorded. The hydrographic structureincludes the reservoirs in: Bogorodica, Toplec, Dos, Kalica and other.

From all SHPPs identified in the study23, a total of eleven (11) are located on the territory of the Municipality of Gevgelija. Their characteristics are given in the Table 4.6.1.

Table 4.6.1.SHPPs in the Municipality of Gevgelija identifiedin the study for possible small and mini hydro power plants (HPPs) in Macedonia

Ref. no.

Watercourse or name of HPP

Net fall

Hn[m]

Installed flow

qvi [m3/s]

Installed output

Pi [kW]

Generated energy

E [MWh/year]

180 Sarabdanska 116 0,099 92 370

181 Sarabdanska 87 0,123 86 345

182 Sarabdanska 92 0,151 111 449

183 Konska R. 113 0,205 185 748

184 Konska R. 113 0,307 275 1.120

185 Belica 93 0,084 62 252

23


- 34 -

186 Sereninska 90 0,235 196 746

187 Drtna 141 0,111 125 504

188 Drtna 91 0,111 91 325

189 Drtna 71 0,111 63 254

190 Drtna 62 0,111 55 222

TOTAL 1.341 5.335

If all SHPPs which are planned in the study are being built, the total annual electricity production will be around 5,3 GWh.

Biomass

Deforestation waste: Forests cover about 28.000 ha, or about 58% of the territory of the municipality. The forests in the municipality are mostly state-owned. The felled amounts of wood from private forests are small and used for private purposes (firewood). The possible annual logging is around 34.000 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Kozhuf" - Gevgelija, on the territory of the Municipality of Gevgelija is around 26.300 m3, withan estimated normative waste of 9,09% or in total 2.393 m3of waste wood. Assuming that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is an energy potential of:

2.393 x 650 x 14,5 = 15,787x106 MJ/year,


Agriculture waste: The total available area of agricultural land in the municipality is 8.287 ha, while the used agricultural land in the municipality is estimated at around 4.494 ha. The distribution of the used agricultural land by crops is given in the Table 4.6.2.

Table 4.6.2. Used agricultural land in the municipality of Gevgelija by crops [in ha]24



4.494 3.454 162 688 190 3.793

Most of the areas with arable land, gardens and home gardens areused for production of cereals (wheat, barley and corn) and vegetables (cabbage, watermelons and tomatoes).

Withan average annual production of 3 tons of vine canes per hectare obtained from vine pruning, it is about 2.064 tons of waste biomass. The practical availability of vine canes is estimated at 774 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:

24

Statistical review: Agriculture, “Agriculture, orchards and vineyards in 2013”, State Statistical Office of the Republic of Macedonia, Skopje, May 2014

- 35 -

774.000 kg/year x 11,5 MJ/kg = 8,901 x 106 MJ/year,


With production of at least one ton of waste per hectare from the orchards pruning, at least 162 tons of waste biomass can be obtained annually.

Livestock breeding residues: The waste mass contained in the livestock manure could be used for energy needs primarily through abiogas produced by anaerobic fermentation. Cattle, sheep, horses, pigs and poultry are bred on the territory of the municipality. Their number is given in the Table 4.6.3.

Table 4.6.3. Number of cattle, horses, sheep, pigs and poultry raised in the municipality of Gevgelija25


Total 411 988 7.189 1.478 10.065

Manure 288 692 1.797 739 7.046

The following table presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Gevgelija.

Table 4.6.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Gevgelija

Type of livestock Livestockbreeding residues

Mass, kg/day Theoretical, t/year Technical, t/year Economic, t/year

Cattle 32,6 3.423 2.396 1.917

Horses 28,0 7.068 1.767 1.237

Pigs 6,5 4.408 2.204 661

Sheep 2,4 2.455 1.718 1.375

Poultry 0,15 386 270 162

Total 17.740 8.356 5.352

In the municipality of Gevgelija, the waste mass of stall barn breeding livestock and poultry is estimated at 5.352 tons per year from which a total of about 138 m3 biogas can be obtained per year with a total energy of nearly 0,92 GWh or about 81 toe (tons of oil equivalent) per year.

Geothermal energy

The hydrothermal system in Gevgelija Valley consists of two independent geothermal fields: Negorski Banji and the locality Smokvica. These two geothermal fields are located on a distance of a few kilometers, however there is no hydraulic connection between both of them. The temperatures of

25


- 36 -

the geothermal water in Smokvica are 45 - 68oC, while in Negorski Banji is 32 - 54°C. Their characteristics are shown in the Table 4.6.5.26

Table 4.6.5. Characteristics of the geothermal resources in the Municipality of Gevgelija

Locality Temperature (C) Quantity

(l/sec)

Reserves

(l/sec)

Thermal power

(MWt)

Negorci 50 100 80 16,74

Smokvica 65 180 120 32,65

Total 280 200 49,39

The geothermal system Smokvica is one of the largest geothermal systems in Macedonia for heating the greenhouse complex of 22,5 ha, supplied with geothermal water from the site Smokvica, with installed capacity of 15 MW, put into operation some 30 years ago (1983/ 1984). Besides the greenhouse complex there are about 10 ha of polytunnels which are out of use at the moment.

The system Negorski Banji, which is part of Gevgelija geothermal system, and where geothermal water is used to heat the premises of the hotel and the balneological complex in the spa, is fully reconstructed and meets its needs for geothermal energy.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Gevgelija which is 7.218, is taken into account, and in the long run it can be assumed that 25% of them (in total 1.804) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 2,38 GWh (1.804 × 2,2 m2 × 600 kWh/m2).

Currently, on the territory of the Municipality of Gevgelija there are no registered producers of electricity from RES - photovoltaic plants.

Wind energy

According the existing study, Preliminary Wind Atlas for the Republic of Macedonia is prepared by AWS Truewind. Approximately 20 sites throughout the country, with potential for installing wind power plants (WPP) with a capacity of 25 MW to 33 MW were the result of the Atlas. One of the most convenient locations which is categorized in the first group for building a WPP is located in the Municipality of Gevgelija (Flora – Kozhuf). The municipality has identified another location that is located in the second priority group for implementation (Gradec). Table 4.6.6. presents the basic values of the location Flora on the Mountain of Kozhuf and the location Gradec in the Municipality of Gevgelija27.

Table 4.6.6 Data sites for WPP construction in the Municipality of Gevgelija

26

Creating pre-conditions for use of geothermal potential in Bregalnica- Strumica region, Association “Regional economic development in Bregalnica- Strumica region’, Skopje, November 2006. 27

Wind Energy Resource Atlas and Site Screening of the Republic of Macedonia, AWS Truewind LLC, USA, June 2005.

- 37 -

Ref. no. Elevation

(ma) Wind speed of

80 m (m/s)

P

(MW)

Lowest estimate of costs for connection to the electricity system

(Million Euro)

7 (Flora) 1.453 7,45 25,4 2,14

3 (Gradec) 566 7,35 24,9 1,35

The location Flora is one of the four locations where measurements of wind speed, direction, and other meteorological parameters have been continuously recorded since 2006. According the wind map, and according the measured values on the location, the estimated installed power would be 20 to 30 MW.

Measurement has not been conducted for the second potential location for construction of WPP - Gradec, in the area of the village of Davidovo. For that reason measuring stations should be installed in order to get the expected production. However, this location has similar configuration with the locations where measured values exist or withother location nearby, so the expectation is that its production would be in the same range with the measured location of the first group (Flora).

In order to take decision for a single turbine, the number of turbines and their placement at every location, additional tests of the configuration of the very locationare needed, taking into account the investors’ potential. For both locations additional tests on the ground, the infrastructure of the area, possibilities for connection to the power system are required.

4.7. Municipality of Dojran

General data

The Municipality of Dojran is located in the far southeast part of Macedonia, next to the Dojran Lake, at an altitude of 146 m, immediately next to the border with Greece. The area of the municipality is mostly hilly. On the western shore of the lake is the height Kalatepe with an altitude of 691 m. Asanlisko Field slightly rises to the Northwest, which through the Village of Nikolikj stretches in a fertile valley. To the north-west, over Asanlisko Field, rises the hill Boska with an altitude of 720 m as well as Belasica Mountain, and to the East are the slopes of Krusha Mountain which descend very slightly towards the lake, and creating avery fertile soil. The lowest part of the valley is on the South, in the settlement of Kara-Dojran in Greece.

Area: 132 km2

Population: 3,426

Settlements: 14

Main industries: Tourism, Industry, Agriculture.



Tourism: summer, sports, transit; Plots for small industrial facilities; Development of viticulture and early vegetable production.

- 38 -

Figure 4.7.1. Map of the Municipality of Dojran with its settlements

Hydro energy

There are several small streams of small rivers (brooks) on the territory of the municipality and they are usually dry during the summer months. It can be noticed that the municipality has no real possibility of setting up micro or small hydro power plants. Despite the fact that there were neither locations which were identified for possible construction of SHPPs on the territory of the municipality during the preparation of the study28, nor were any mapped, however in the registry of preferential electricity producers from RES the SHPP Toplec is registered with installed capacity of 200 kW and planned annual electricity generation of 1.500.000 kWh.

Biomass

Deforestation waste: Forests cover about 6.200 ha, or about 47% of the territory of the municipality. Most of the forests in the municipality are state-owned. The felled amounts of wood from private forests are small and used for private purposes (firewood). Possible annual logging is about 5.100 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Kozhuf" - Gevgelija, on the territory of the Municipality of Dojran, is around 3.950 m3, with estimated normative waste of 9.09% or in total 359 m3of waste wood. Assuming that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is anenergy potential of:

359 x 650 x 14,5 = 2,365 x 106 MJ/year,

whichis, 657 MWh/year or 56 toe (tons of oil equivalent) per year.

Agriculture waste: The total available area of agricultural land in the municipality is 1.780 ha, while the used agricultural land in the municipality is estimated at around 1.580 ha. The distribution of agricultural land by crops is given in the Table 4.7.1.

28


- 39 -

Table 4.7.1. Used agricultural land in the municipality of Dojran by crops [in ha]29



1.580 1.334 51 163 32 200

Most of the areas with arable land, gardens and home gardens are used for the production of cereals (wheat, barley and corn) and vegetables (cabbage, watermelons and tomatoes).

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, it is about 489 tons of waste biomass. The practical availability of vine canes is estimated at 183 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:


which is about 586 MWh/year or 50 toe (tons of oil equivalent) per year.


Livestock breeding residues: The waste mass contained in the livestock manure could be used for energy needs primarily through a biogas produced by anaerobic fermentation. Cattle, sheep, goats, pigs and poultry are bred on the territory of the municipality. Their number is given in the Table 4.7.2.

Table 4.7.2. Number of cattle, sheep, goats, pigs and poultry are raised in the Municipality of Dojran30


Total 50 1.112 16.316 240 3.196

Manure 35 778 4.079 120 2.237

The following table presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Dojran.

Table 4.7.3. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Dojran



29

Statistical review: Agriculture, "Agriculture, orchards and vineyards in 2013", State Statistical Office of the Republic of Macedonia, Skopje, May 2014. 30


- 40 -

Cattle 32,6 416 292 233

Horses 28,0 7.955 1.989 1.392

Pigs 6,5 3.573 1.787 536

Sheep 2,4 285 199 159

Poultry 0,15 122 86 51

Total 12.352 4.352 2.372

In the municipality of Dojran, the mass of waste of barn breeding livestock and poultry is estimated at 2.372 tons per year from which it can be obtained a total of about 61 m3 biogas per year with a total energy of nearly 0,41 GWh or about 36 toe (tons of oil equivalent) per year.

Geothermal energy

The hydro potential of Dojran and its wider environment are mainly associated with the increased water temperatures registered in the locality of Toplec in the immediate vicinity of New Dojran and the locality of Deribash (Old Dojran). From the proven reserves of hydrothermal system in Dojran, until now one source (borehole) has been partially explored. Its characteristics are shown in the Table 4.7.431.

Table 4.7.4.Characteristics of the geothermal resourcesin the Municipality of Dojran


(l/sec)

Reserves

(l/sec)

Thermal power

(MWt)

Toplec 28 28 10 1,17

Because the locality of Toplec has not yet been sufficiently explored, there is a need to conduct anadditional exploration with 2 - 3 exploration boreholes with an estimated depth of 250 - 300 m and geophysical electrical measurements with orientationtotal length of 3.000 m.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Dojran which is 1.020, is taken into account and in the long run it can be assumed that 25% of them (in total 255) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 0,34 GWh (255 × 2,2 m2 × 600 kWh/m2).

Currently, on the territory of the Municipality of Dojran there are no registered producers of electricity from RES - photovoltaic plants.

31

Creating preconditions for use of geothermal potential in Bregalnica- Strumica region, Association “Regional economic development in Bregalnica- Strumica region”, Skopje, November 2006.

- 41 -

Wind energy

The wind energy potential in the community is very limited. Precise multi - annual measurements do not exist, but it is traditionally known that there are only occasional appearances of strong winds that happen several times per year.

4.8. Municipality of Konche

General data

The Municipality of Konche is a typically rural municipality located in the central - eastern part of the Republic of Macedonia surrounded by Konechka Mountain and Smrdeshnik, i.e. the municipalities of Shtip, Negotino, Demir Kapija, Valandovo, Strumica, Vasilevo and Radovish. Based on its morphological characteristics, it is a separate natural geographical environment. This municipality known for its agricultural and livestock breeding has three artificial reservoirs.

Area: 237 km2

Population: 3.536

Settlements: 14

Main industries: Agriculture, Livestock breeding, Fruit growing.



Opening new business facilities, Construction of infrastructure which will improve the communication between the Municipality of Konche and other municipalities.

- 42 -

Figure 4.8.1. Map of the Municipality of Konche with its settlements

Hydro energy

Apart from the accumulation Mantovo, there are noother significant water courses from energetic point of view in the municipality. It can be concluded that there are not concrete possibilities in the municipality for setting up micro or small hydro power plants.

Biomass

Deforestation waste: Forests cover about 9.400 ha, or about 38% of the territory of the municipality. Private forests are estimated at about 12%. The felled amounts of wood from private forests are significant (approximately 6.000 m3/year). Possible annual logging from the state owned forests is about 8.000 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Plachkovica" – Radovish on the territory of the Municipality of Konche is around 6.300 m3, with estimated normative waste of 9,9% or in total 624 m3 of waste wood. Assuming that the same estimated normative waste is produced from the logging of private forests, additional 601 m3 of wood waste will be obtained. If we consider that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is an energy potential of:

1225 x 650 x 14,5 = 8,084 x 106 MJ/year,

which is, 2.246 MWh/year or 193 toe (tons of oil equivalent) per year, from the total forest area in the Municipality of Konche.

Agriculture waste: The total available area of agricultural land in the municipality is 8.652 ha, while the used agricultural land in the municipality is estimated at around 4.367 ha. The distribution of agricultural land by crops is given in the Table 4.8.1.

Table 4.8.1. Used agricultural land in the Municipality of Konche by crops [in ha]32



4.367 3.967 99 96 205 4.883

Most of the area of arable land, gardens and home gardens are used for the production of cereals (wheat, corn, barley and a small amount of rice), vegetables (peppers, beans, potatoes, watermelons, tomatoes and onions), fodder crops (alfalfa and clover) and industrial plants (tobacco and sunflower). They cover 90% of the arable areas. From the other crops, the most represented are the industrial plants, where the most frequent is the production of tobacco.

With an average annual production of vine canes of 3 tons per hectare obtained from vine pruning, it is about 288 tons of waste biomass obtained from 96 ha of vineyards. The practical availability of vine canes is estimated at 108 tons a year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:

32


- 43 -


which is about 345 MWh/year or 30 toe (tons of oil equivalent) per year.



Table 4.8.2. Number of cattle, sheep, goats, pigs and poultry raised in the Municipality of Konche33


Total 2.530 297 651 5.603 5.194

Manure 1.771 208 326 1.401 3.636

The Table 4.8.3.presents the average theoretical, technical and economic potential of waste biomass obtained from stall barn growing livestock in the Municipality of Konche.

Table 4.8.3. Average theoretical, technical and economic potential of biomass waste from livestock in the Municipality of Konche



Cattle 32,6 21.073 14.751 11.801

Horses 28,0 2.125 531 372

Pigs 6,5 772 541 432

Sheep 2,4 1.227 614 184

Poultry 0,15 199 139 84

Total 25.396 16.576 12.873

In the Municipality of Konche, the waste mass of stall barn breeding livestock and poultry is estimated at 13.000 tons annually from which a total of about 331 m3 biogas can be obtained per year with a total energy of nearly 2,21 GWh or about 190 toe (tons of oil equivalent) per year.

33


- 44 -

Geothermal energy

There are is no evidence about potential sources of thermal waters on the territory of the Municipality of Konche.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Konche which is 1.057, is taken into account, and in the long term it can be assumed that 25% of them (in total 264) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 0,35 GWh (264 × 2,2 m2 × 600 kWh/m2).

On the territory of the Municipality of Konche, there is a registered legal entity MAL INZHENERING Ltd with a status of producer with a provisional decision for obtaining a status of preferential producer of electricity from RES - photovoltaic power plant (PVPP) with installed capacity of ≤50 kW, who also owns a photovoltaic power plant (PVPP-KO Konche) with a total installed capacity of 49,115 kW (209 panels are installed, each of them with an output of 235 W).

Wind energy

According the existing data from measurements and according the Preliminary Wind Atlas for the Republic of Macedonia, there are not any potential locations identified which would be suitable for use of the wind energy on the territory of the Municipality of Konche.

4.9. Municipality of Novo Selo

General data

The Municipality of Novo Selo is located in the far southeast part of the country. In the north, the territory of the municipality rises up to the crest of Ograzhden Mountain, in the central part of the territory is the wide plane of the river Strumica, while in the south, the territory rises up to the crest of Belasica Mountain. It borders with the municipalities of Berovo, Bosilovo and Strumica. The municipality is unique and different from the others, because it is the only municipality in the country that borders with two EU member states (Bulgaria and Greece), it has the highest waterfall in the country and many other natural, historical and cultural treasures.

Area: 252 km2

Population: 11.966

Settlements: 16

Main industries: Agriculture, Wood Industry, Textile Industry, Food Industry, Construction, Tourism and Catering.



- 45 -

Improving the quality of life of its residents, creating conditions for faster development and support for development of small and medium enterprises.

Figure 4.9.1. Map of the Municipality of Novo Selo with its settlements

Hydro energy

The Municipality of Novo Selo is characterized with an extremely rich hydrography which includes many rivers and springs. Mokrino springs, and Smolare and Koleshino waterfalls are especially important as tourist attractions.

From all SHPPs identified in the Study34, a total of nine (9) are located on the territory of the Municipality of Novo Selo. Their characteristics are given in the Table 4.9.1.

Table 4.9.1. SHPPs in the Municipality of Novo Selo identified in the study for possible small and mini hydro power plants (HPPs) in Macedonia

Ref.no.

Watercourse or name of HHP

Net fall

Hn[m]

Installed flow

qvi [m3/s]

Installed output

Pi [kW]

Generated energy

E [MWh/year]

275 Waterfall 266 0,054 115 443

278 Mokrievo 174 0,159 221 853

279 Staro Konjarevo 264 0,054 114 440

280 Trkavalishte 42 0,187 63 243

282 Bajkovica 120 0,080 77 294

283 Bajkovica 88 0,080 56 216

34

Study on possible mini and small hydropower plants in the SR of Macedonia, Republic Committee for Energy, SR of Macedonia, 1982.

- 46 -

284 Vasilica 91 0,141 103 395

285 Vasilica 90 0,141 101 391

286 Vasilica 80 0,141 90 348

Total 940 3.623


Biomass

Deforestation waste: Forests cover about 12.000 ha, or approximately 48% of the territory of the municipality. The felled amounts of wood from private forests are mostly used for their own purposes (firewood). The possible annual logging is around 11.200 m3. The planned gross annual loggingof the Branch Forest Enterprise (BFE) “Belasica” - Strumica, on the territory of the Municipality of Novo Selo is approximately 7.400 m3, with estimated normative waste of 11,06% or in total 819 m3 of waste wood. Assuming that the volume of such waste mass is about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is an energy potential of:

819 x 650 x 14,5 = 7,72 x 106 MJ/year,

which is 2.145 MWh/year or 184 toe (ton equivalent of oil) per year.

Agriculture waste: The total available area of agricultural land in the municipality is about 8.652 ha, whilethe used agricultural land in the municipality is estimated at around 6.092 ha. The distribution of the used agricultural land by crops is given in the Table 4.9.2.

Table 4.9.2. Used agricultural land in the municipality of Novo Selo by crops [in ha]35

Total used land Arable land and


6.092 5.462 93 89 448 2.555

Most of the areas with arable land, gardens and home gardens are used for vegetable production (watermelons, peppers and potatoes), cereals (maize and wheat), forage crops (alfalfa and clover on a smaller scale) and industrial plants (tobacco).

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, it is about 267 tons of waste biomass. The practical availability of vine canes is estimated at 100 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:


which is approximately 320 MWh/year or 28 toe (tons equivalent of oil) per year.

35

Statistical review: Agriculture, “Agronomy, orchards and vineyards in 2013”, State Statistical Office of the Republic of Macedonia, Skopje, May 2014.

- 47 -


Livestock breeding residues:The waste mass contained in the livestock manure could be used for energy needs primarily through a biogas produced by an anaerobic fermentation. Cattle, sheep, goats, pigs and poultry are bred on the territory of the municipality. Their number is given in the Table 4.9.3.

Table 4.9.3. Number of cattle, sheep, goats, pigs and poultry which raised in the Municipality of Novo Selo36

cattle horses pigs sheep poultry

Total 2.215 1.089 10.478 3.578 26.132

Manure 1.551 762 2.620 1.789 18.292

The following table presents the average theoretical, technical and economic potential of waste biomass from stall barn growing livestock in the Municipality of Novo Selo.

Table 4.9.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Novo Selo

Type of livestock

Livestock breeding residues


cattle 32,6 18.449 12.915 10.332

horses 28,0 7.791 1.948 1.363

pigs 6,5 2.295 1.147 344

sheep 2,4 4.244 2.971 2.377

poultry 0,15 1.002 701 421

TOTAL 33.781 19.682 14.837

In the Municipality of Novo Selo, the waste biomass from stall barn breeding livestock and poultry is estimated at around 15.000 tons per yearfrom which a total of about 382 m3 biogas can be obtained per year with a total energy of nearly 2,54 GWh or about 224 toe (tons of oil equivalent) per year.

Geothermal energy

Despite the fact that the municipality is located in the Strumica valley, which is one of the most famous sources of geothermal waters, on its territory there are not identified sources of geothermal waters.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Novo Selo which is 3.244, is taken into account, and in the long run it can be assumed that 25% of them (in total 811) will have the opportunity to install domestic solar systems for heating 36

Census of Agriculture 2007, Book I, II and III, State Statistical Office of Republic of Macedonia, Skopje, 2007.

- 48 -

of hot water. Annual delivered energy according these assumptions is about 1,07 GWh (827 × 2,2 m2 × 600 kWh/m2).

At the moment, there are nine registered producers with a status of authorized electricity producers from RES - photovoltaic plantson the territory of the Municipality of Novo Selo. From those, eight (8) photovoltaic power plants have installed power of 49,75 kW (each of them has 199 photo voltaic panels with power of 250 W per panel) and one photovoltaic power plant with installed power of 39 kW (with installed 156 panels with power of 250 W per panel).

The total installed capacity of the registered photovoltaic power plants on the territory of the Municipality of Novo Selo is 437 kW.

Wind energy

According the existing data from measurements, as well as the Preliminary Wind Atlas for the Republic of Macedonia, there are not identified potential locations suitable for utilisation of the wind energyon the territory of the Municipality of Novo Selo.

4.10. Municipality of Radovish

General data

The Municipality of Radovish is located in the southeast of the country, and occupies the northwest part of the spacious Radovish - Strumica valley, that is the upper river basin area of the River Radovishka. The main competitive advantages of the municipality are: its location, production of healthy eco food and favorable conditions for development and investments.

Area: 608 km2

Population: 28.244

Settlements: 20

Main industries: Agriculture, Textile industry.


Key priorities of the local economic development:

Economic Development: Capacities, Employment, Infrastructure.

- 49 -

Figure 4.10.1. Map of the Municipality of Radovish with its settlements

Hydro energy

The Municipality of Radovish is characterized with a good hydrography which includes several rivers and springs. The rivers Plavaja, Sirava and Oraovichka consist the river basin of Oraovichka river.

From all SHPPs identified in the study37, a total of five (5) are located on the territory of the Municipality of Radovish. Their characteristics are given in the Table 4.10.1.

Table 4.10.1. SHPPs in the Municipality of Radovish identified in the study for possible small and mini hydro power plants (HPPs) in Macedonia

Ref. no. Watercourse or name

of HPP

Net fall

Hn [m]

Installed flow

qvi [m3/s]

Installed output

Pi [kW]

Generated energy

E [MWh/year]

301 Plavaja 214 1.215 1880 8.017

302 Sirava 91 0.187 136 526

303 Sirava 98 0.277 217 838

304 Oraovicka 128 0.264 270 1.042

305 Radoviska 132 0.201 212 818

TOTAL 2.715 11.241


The SHPP Oraovichka River (Ref. no. 304) was built by EMK Ltd, Small hydropower plants, Skopje.

During the preparation of this study, all the remaining potential locations (in total 4) were included in the 6th international tender for granting concessions for constructing SHPP.

37

Study of possible mini and small hydropower plants in the SR of Macedonia, Republic Committee for Energy, SR of Macedonia, 1982.

- 50 -

Biomass

Deforestation waste: Forests cover around 21.000 ha, or approximately 35% of the territory of the municipality. The felled amounts of wood from private forests are significant (around 6.700 m3/year) and most of them (90%) are primarily usedfor private purposes (firewood). The possible logging from forests in public ownership is around 32.600 m3. The planned annual logging of the Branch Forest Enterprise (BFE) "Plachkovica" - Radovish, on the territory of the Municipality of Radovish is around 25.500 m3, with estimated normative waste of 9,9% or in total 2.522 m3 of waste wood. Assuming that the same estimated normative waste is produced from logging private forests, an additional 663 m3 wood waste would be obtained. Assuming that the volumeof such waste mass is about 650 kg/m3, and the thermal power has a value of 14,5 MJ/kg, that is an energy potential of:

3.185 x 650 x 14,5 = 21,015 x 106 MJ/year,

which is 5.838 MWh/year or 502 toe (tons equivalent of oil) per year, from the forest area in the Municipality of Radovish.

Agriculture waste: The total available area of agricultural land in the municipality is 42.155 ha, while the used agricultural land in the municipality is estimated at around 10.434ha. The distribution of the used agricultural land by crops is given in the Table 4.10.2.

Table 4.10.2. Used agricultural land in the municipality Radoviš by crops [in ha]38


gardens Orchards

Wine yards

Meadows Pastures

10.434 9.060 365 635 374 31.720

Most of the areas with arable land, gardens and home gardens are used for production of vegetables (peppers, tomatoes, potatoes, melons and beans), cereals (corn, wheat and barley), forage crops (alfalfa and clover) and industrial plants (tobacco and sugar beet).

With an average annual production of 3 tons of vine canes per hectare obtained from vine pruning, it is about 1.905 tons of waste biomass from a total area of 635 ha planted with vine. The practical availability of vine canes is estimated at 714 tons per year. Assuming that the thermal power of the canes is about 11,5 MJ/kg, the total energy potential they contain is:


which is approximately 2.282 MWh/year or 196 toe (tons of oil equivalent) per year.


Livestock breeding residues: The waste mass contained in the livestock manure could be used for energy needs primarily through a biogas produced by anaerobic fermentation. Cattle, sheep, goats, pigs and poultryare bred on the territory of the municipality. Their number is given in the Table 4.10.3.

38

Statistical review: Agriculture, “Agronomy, orchards and vineyards in 2013”, State Statistical Office of the Republic of Macedonia, Skopje, May 2014.

- 51 -

Table 4.10.3. Number of cattle, sheep, goats, pigs and poultry which raised in the Municipality of Radovish39


Total 4.148 1.934 2.294 21.101 18.137

Manure 2.904 1.354 1.147 5.275 12.696

In table 4.10.4 the average theoretical, technical and economic potential of the waste biomass from stall barn growing livestock in the Municipality of Radovish is presented.

Table 4.9.4. Average theoretical, technical and economic potential of biomass waste from livestock breeding in the Municipality of Radovish

Type of livestock



cattle 32,6 34.550 24.185 19.348

horses 28,0 13.836 3.459 2.421

pigs 6,5 2.721 1.905 1.524

sheep 2,4 4.621 2.311 693

poultry 0,15 695 487 292

TOTAL 56.423 32.346 24.278

In the Municipality of Radovish, the waste biomass of stall barn breeding livestock and poultry is estimated at around 24.000 tons per year from which a total of about 624 m3 biogas can be obtained per year with a total energy of nearly 4,16 GWh or about 358 toe (tons of oil equivalent) per year.

Geothermal energy

From the already established reserves of the hydro geothermal system of the Municipality of Radovish, there is only one source (borehole) which is located in the village of Raklish. The characteristics of the geothermal source are shown in the Table 4.10.5.40

Table 4.10.5. Characteristics of the geothermal resources in the Municipality of Radovish

Locality Temperature

(C)

Quantity

(l/sec)

Reserves

(l/sec)

Thermal power

(MWt)

The village of Raklish borehole

26 5 2 0,22

39

Census of Agriculture 2007, Book I, II and III, State Statistical Office of the Republic of Macedonia, Skopje, 2007. 40

Creating preconditions for use ofgeothermal potential in Bregalnica- Strumica region, Association “Regional economic development in Bregalnica-Strumica region”, Skopje, November 2006.

- 52 -

According the available data from the measurements, it is forecasted that the temperature in the tank could reach 50 - 80°C. However the hydro geothermal system in the village of Raklish is not sufficiently explored and therefore detailed projects have to be prepared for further exploration of this area as a significant geothermal resource in the Municipality of Radovish.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of of Radovish, which is 8.270, is taken into account, and in the long run it can be assumed that 25% of them (2.068) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 2,73 GWh (2.068 × 2,2 m2 × 600 kWh/m2).

At the moment, there is only one legal entity with a status of an authorized producer of electricity from RES - photovoltaic plant on the territory of the Municipality of Radovish, with an installed

power of 50 kW, ALFA INZENERING Ltd from Radovish (PVP ALFA PARK) with installed power of the photovoltaic plant of 49,725 kW.

Wind energy

According the existing data from measurements, as well as according the Preliminary Wind Atlas for the Republic of Macedonia, there are not any potential locations identified which would be suitable for use of the wind energy on the territory of the Municipality of Radovish.

4.11. Municipality of Strumica

General data

The fertile Strumica valley is situated in the southeast end of Republic of Macedonia, just near the triangle of the state borders with Bulgaria and Greece. In its western part Municipality of Strumica is located. This municipality borders with the municipality of Bosilovo on the East, the municipality of Konche on the West, the municipality of Vasilevo on the North, the municipality of Novo Selo on the Southeast and the municipality of Valandovo on the Southwest.

Area: 322 km2

Population: 54.676

Settlements: 25

Main industries: Agriculture and livestock breeding, Food industry, Wood industry, Mining industry, Metalworking industry, Electrical industry, Textile industry (heavy and light clothing).

Business entities: 6.669


Modernization of the existing production facilities and opening new ones, Development of modern agricultural production of healthy food, Regional center for joint offer of early vegetables; Alternative, cultural and rural tourism; Balneology and spa tourism.

- 53 -

Figure 4.11.1. Map of Municipality of the Strumica and its settlements

Hydroenergy

The hydrographic network in Strumica region is rather rich and interwoven with many springs, rivers and their tributaries.

The main recipient in Strumica Valley is the river Strumica with regulated river bed of 31 km. The left tributary of the river Strumica is the river Turija with a 22 km long river bed, from the dam Turija to its estuary in the river Strumica, with total of 8 km regulated river bed.

The right tributary of the river Strumica is Monospitovo channel with 14,1 km long river bed. The river Vodočnica with 15 km of regulated watercourses flows in it. The right tributary of Monospitovo channel is the river Trkajna with total of 6 km regulated riverbed.

From all SHPPs identified in the study41, a total of four (4) are located on the territory of the Municipality of Strumica. Their characteristics are given in the Table 4.11.1.

Table 4.11.1. SHPPs in the Municipality of Strumica identified in the study for possible small and mini hydro power plants (HPPs) in Macedonia

Ref. no. Watercourse or name

of HPP

Net fall

Hn [m]

Installed flow

qvi [m3/s]

Installed output

Pi [kW]

Generated energy

E [MWh/year]

273 Vodocha 84 2,200 1.480 3.931

274 Gradska 134 0,088 94 366

277 Vodenishnica 240 0,126 242 932

281 Gradska 50 0,129 52 199

TOTAL 1.868 11.241

41


- 54 -


During the preparation of the study, the Energy Regulatory Committee issued a temporary decision to the company HEP 277 LLC Skopje to gain a status of an authorized producer of electricity from RES, in order to build the SHPP Vodenishnica (Ref. no. 277).

Biomass

Deforestation waste: Forests cover about 18.860 ha, or approximately 58% of the territory of the municipality. The felled amounts of wood from private forests are significant (around 3.700 m3/year) and they are mostly used for their private purposes (firewood). The possible annual logging from forests in state property is around 17.000 m3. The planned gross annual logging of the Branch Forest Enterprise (BFE) "Belasica" - Strumica, on the territory of the Municipality of Strumica is around 11.380 m3, with an estimated normative waste from 11,06% or around 1.259 m3 of waste wood. Assuming that the same normative waste will be also produced from logging from the private forests, additional 409 m3of waste wood could be produced. The volumeof such waste mass would be about 650 kg/m3, and the thermal power has a value of 14.5 MJ/kg, that is an energy potential of:

1.520 x 650 x 14,5 = 15,430 x 106 MJ/year,

which is 4.286 MWh/year or 369 toe (tons of oil equivalent) per yearfrom all forest areas in the Municipality of Strumica.

Agriculture waste: The total available area of agricultural land in the municipality is about 24.067 ha, while the used agricultural land in the municipality is estimated at around 8.650 ha. The distribution of the used agricultural land by crops is given in the Table 4.11.2.

Table 4.11.2. Used agricultural land in the municipality of Strumica by crops [in ha]42



8.650 8.040 157 161 292 15.417

Most of the arable area i.e. Arable land, gardens and home gardens is used for vegetable production (peppers, watermelons, tomatoes and cabbage), cereals (maize and wheat) and in a smaller percentage forage crops (bur clover and clover) and industrial plants (tobacco dominates).

With an average annual production of 3 tons of vine canes per hectare obtained in vine pruning, for a total area of 161 ha vineyard, about 483 tons of waste biomass are produced. The practical availability of vine canes is estimated at 181 tons yearly. Assuming that the thermal power of the canes is about 11,5 MJ / kg, the total energy potential in them is:

181.000 kg/year x 11,5 MJ/kg = 2,083 x 106 MJ/year

42

Statistical review: Agriculture, “Agronomy, orchards and vineyards in 2013”, State Statistical Office of Republic of Macedonia, Skopje, May 2014.

- 55 -

or approximately 579 MWh/year or 50 toe (tons equivalent of oil) per year.

During the production of at least one ton of waste per hectare from orchard pruning, at least 157 tons of waste biomass is produced annually.


Table 4.9.3. Number of cattle, sheep, goats, pigs and poultry which raised in the Municipality of Strumica43


Total 3.220 2.564 3.698 3.997 29.281

Manure 2.254 1.795 925 1.999 20.497

The table 4.11.4 presents the average theoretical, technical and economic potential of the waste biomass from stall barn growing livestock in the Municipality of Strumica.

Table 4.11.4. Average theoretical, technical and economic potential of the waste biomass from farming in the Municipality of Strumica

Type of livestock


Mass, kg/day Theoretical, t/year Technical, t/year Economic, t/year

Cattle 32,6 26.820 18.774 15.019

Horses 28,0 18.343 4.586 3.210

Pigs 6,5 810 405 121

Sheep 2,4 4.741 3.319 2.655

Poultry 0,15 1.122 786 471

TOTAL 51.837 27.869 21.477

In the Municipality of Strumica, the waste mass of stall barn breeding livestock and poultry is estimated at 21.500 tons per year from which a total of about 552 m3 biogas can be obtained per year with a total energy of nearly 3,68 GWh or about 324 toe (tons of oil equivalent) per year.

Geothermal energy

The Municipality of Strumica is one of the few municipalities in Republic of Macedonia, which has a great potential of geothermal water, but its quality and quantity is insufficiently explored. The tank of this system is drained by a group of several natural springs with different temperatures from 60 to

73C. The explored exploitation holes B-1 in the village of Bansko has a yield of 50 l/sec and a

temperature of 70C, while D-2 on the locality Drvosh - Baldovci has a temperature of 29C and yield of 5 l/sec.

43

Census of Agriculture 2007, Book I, II and III, State Statistical Office of Republic of Macedonia, Skopje, 2007.

- 56 -

The balance of the already proven reserves of the hydro geothermal system in the Strumica valley, with the characteristics of the springs and holes which belong to the Municipality of Strumica are shown in the Table 4.11.544.

Table 4.11.5. Characteristics of the geothermal resources in the Municipality of Strumica


(l/sec)

Reserves

(l/sec)

Thermal power

(MWt)

Bansko B-1 70 55 50 14,64

Bansko GTD-1 28,3 2 1 0,12

Hole GTD-2 22 6 4 0,37

Bansko Spring 40 20 15 2,5

Bansko private holes

45 20 10 1,88

TOTAL 103 80 19,51

The utilisation of the geothermal energy from the hydro geothermal system Bansko - Strumica is based on the following thermal potential: max. continuous capacity of 50 l/sec, max. short-term capacity (up to 12 hours) of 55 l/sec, max. capacity (up to 3 hours) 75 l/ ec, the renewable capacity of the geothermal reservoir is 30 l/sec.

Solar energy

The usable potential in the domestic sector can be estimated if the number of households in the Municipality of Strumica, which is 15.896, is taken into account, and in the long run it can be assumed that 25% of them (in total 3.974) will have the opportunity to install domestic solar systems for heating of hot water. Annual delivered energy according these assumptions is about 5,25 GWh (3.974 × 2,2 m2 × 600 kWh/m2).

Currently, on the territory of the Municipality of Strumica there are no registered producers of electricity from RES - photovoltaic plants.

Wind energy

According the existing data from measurements and according the Preliminary Wind Atlas for the Republic of Macedonia, there are not any potential locations identified which would be suitable for use of the wind energy on the territory of the Municipality of Strumica.

5. Summary of the data for the relevant RES in the Southeast planning region and potential for decreasing the CO2 emissions

44

Creating preconditions for use of the geothermal potential in Bregalnica - Strumica region, Association”Regional economic development in Bregalnica- Strumica region”, Skopje, November 2006.

- 57 -

Summary of the observations for each type of RES in the Southeast planning region are given next in the part that follows.

Summary of the potential of RES by municipalities

Based on the analysis of the thoroughly processed data for the potential and the current level of utilisation of the renewable energy sources (RES) in the Southeast region, the current level of utilization and assessment of the potential for further exploitation of the renewable energy sources for production of electricity, according the type of energy resource, and for each municipality in the Southeast region are shown in the Table 5.1.

Table 5.1. Current status and potential for production of electricity from renewable energy sources for all

municipalities in the Southeast region Name of

the municipality


SHPP (existing)

SHPP (potential)

Wind (existing)

Wind (potential)

Photovoltaic (existing)

Photovoltaic (potential)

Biogas (existing)

Biogas (potential)

Bogdanci 0 0 90 150 0 - 0 0,14

Bosilovo 0 2,44 0 0 0,02 - 0 0,90

Valandovo 0 0,77 0 0 2,78 - 0 0,29

Vasilevo 6,18 8,78 0 0 0 - 0 0,48

Gevgelija 0 3,53 0 120 0 - 0 0,25

Dojran 1,50 1,50 0 0 0 - 0 0,18

Konche 0 0 0 0 0,07 - 0 0,36

Novo Selo 0 2,47 0 0 0,61 - 0 0,48

Radovish 0,71 6,43 0 0 0,07 - 0 0,81

Strumica 0,64 4,28 0 0 0 - 0 0,74

SE Region 9,03 30,20 90 270 3,55 - 0 4,63

* The production of electricity from the existing photovoltaic power plants is calculated according the Strategy45

for average annual number of sunny hours of 1.400. The existing PVP, and PVP under construction are taken into consideration.

** Due to the fulfillment of the upper limits set in the Decision of the Government46

, it is not possible to estimate the annual production of electricity from photovoltaic power plants because the potential of this energy resource is practically inexhaustible and its use is conditioned only by the reception capacity of the electricity system.

Table 5.2. shows the current state and the potential for production of thermal energy from

renewable energy sources according the type of energy resource, and for each municipality in the

Southeast region.

Table 5.2. Current state and potential for production of thermal energy from renewable energy sources for each municipality in the Southeast region



Biomass Biomass Solar Solar Geothermal Geothermal

45

Decision for the total installed capacity of the authorized producers of electricity generated from each renewable energy source separately (“Official Gazette of the Republic of Macedonia”, no. 56/13). 46

Strategy for utilisation of the renewable energy sources in the Republic of Macedonia, Macedonian Academy of Arts and Sciences (MANU), Skopje, June 2010.

- 58 -

(existing)* (potential)

** (existing)

*** (potential) (existing) (potential)

Bogdanci - 1,84 - 0,86 0,00 0,00

Bosilovo - 2,91 - 1,24 0,00 5,26

Valandovo - 4,91 - 1,17 0,00 0,00

Vasilevo - 6,41 - 1,1 0,00 0,00

Gevgelija - 6,86 - 2,38 131,40 432,66

Dojran - 1,24 - 0,34 0,00 10,25

Konche - 2,59 - 0,35 0,00 0,00

Novo Selo - 2,47 - 1,07 0,00 0,00

Radovish - 8,12 - 2,73 0,00 1,93

Strumica - 4,87 - 5,25 65,70 170,91

SE Region - 42,22 - 16,49 197,10 621,00

* The current production of thermal energy from biomass waste is not possible to be determined due to lack of data as a result of the unorganized collection and use of biomass waste (waste from logging and wood processing and waste from agriculture). ** The estimated production of thermal energy from biomass waste includes waste from logging and processing of wood and waste from agriculture (pruning of vineyards). *** Due to lack of data it is not possible to calculate the annual production of thermal energy from solar thermal systems.

The non-technical overview of the potential for utilisation of the RES in the Southeast region,ranked

in five categories, is given in the Table 5.3.

Table 5.3. Potential for using RES in a region ranked by categories

Name of

municipality

Type of Renewable Energy Source

Hydro energy Biomass Geothermal

energy Solar energy

Windenergy

Bogdanci Insignificant Insignificant Insignificant Very big Very big

Bosilovo Average Average Big Very big Insignificant

Valandovo Small Big Insignificant Very big Insignificant

Vasilevo Very big Very big Insignificant Very big Insignificant

Gevgelija Big Very big Very big Very big Very big

Dojran Small Insignificant Big Very big Average

Konche Insignificant Small Insignificant Very big Insignificant

Novo Selo Average Small Insignificant Very big Insignificant

Radovish Very big Very big Average Very big Insignificant

Strumica Big Big Very big Very big Insignificant

* The potential for utilisation of the RES is ranked in five categories: insignificant (red colour), small (rose), average (yellow), big (light rose) and very big (green)

- 59 -

The categorization in the Table 5.3 was made based on the participation of the particular

municipality in the potential for energy production for every RES in the total potential for energy

production of the same source at regional level: participation greater than 25% - very high potential;

participation from 20 to 25% - great potential; participation from 15 to 20% - average potential;

participation from 8 to 15% - small potential and participation less than 8% - insignificant potential.

Potential for reducing CO2 emissions

The possible potential for reducing CO2 emissions through utilisation of RES will be calculated and shown as an amount of CO2 which would not be emitted in the atmosphere in the case ofproduction of electricity with renewable energy sources compared with the production of electricity in thermal power plants using lignite. In the second case, the potential for reducing emissions CO2 will be calculated and shown as an amount of CO2 which would not be emitted in the atmosphere in the case of production of thermal energy from renewable energy sources compared with the production of thermal energy in boilers fuelled by extra light household oil. The calculations are done according to conversion factors for different types of fossil fuels47.

Table 5.4. shows the potential for reducing emissions CO2in the case ofproduction of thermal energy and electricity from renewable energy sources compared with their production from fossil fuels (lignite for electricity and extra light household oil for thermal energy).

Table 5.4. Potential for reducing CO2emissions of through utilisation of RES

Production of electricity

Type of RES Annual production

(GWh)

Reducing CO2

emissions(thousand tonnes per year)

SSHP 36,23 38,80

Wind 360,00 385,56

PVP 3,55 3,80

Biogas 4,63 4,96

Total for electricity

404,41 433,12

Production of thermal energy

Type of RES Annual production

(GWh) Reducing CO2 emission

(thousand tonnes per year)

Biomass 42,22 12,26

Solar thermal 16,49 4,79

Geothermal 621,00 180,34

Total for thermal energy

679,71 197,39

ALL TOTAL 1.084,12 630,51

In the region with a potential for annual production of about 1.085 GWh energy from renewable energy sources, the overall reduction of the CO2 emissions would be about 630 thousand tons,

47

Regulations on Energy Control ("Official Gazette of the Republic of Macedonia", no. 94/2013).

- 60 -

compared to the case when the same amount of energy would be generated from fossil fuels (lignite for electricity and extra light household oil for thermal energy).

By investing in alternative energy sources, in addition to the preserving the quality of the environment, the import dependence for electricity of the Republic of Macedonia could be reduced. On the other hand, as a candidate country for EU membership, the Republic of Macedonia has an obligation towards the European Union to fulfill the Directive48 for promoting and using energy from renewable energy sources, in accordance with the objectives of the so-called group "20-20-20" that encourages achieving the following objectives until 2020:

- 20% reduction of greenhouse gas emissions in the EU compared to the level in 1990.

- Increasing the consumption of energy in the EU produced from renewable energy sources up to 20%.

- 20% improvement of the energy efficiency in the EU.

Hierarchically speaking, the European Directive 2009/28/EC is imposed tothe EU member states and the candidate countries for EU membership with a specific percentage and deadlines until 2020 in order to substitute the used energy from classical sources (fossil fuels) with energy generated from renewable energy sources. This Directive is incorporated in the national laws, strategic documents, regulations, norms and standards in the field of energy, i.e. energy obtained from renewable energy sources. According these directives, the first implementers are users/ owners of public buildings, such as: state authorities and institutions, public enterprises, public buildings in the educational network, social welfare, and culture as well as the municipalities with their complete infrastructure potential of public facilities which are used for administrative and technical activities and which are responsibility of the municipalities.

6. Review of Technologies for Utilising RES

6.1. Technology for Utilising Hydro Energy

Technology of Small Hydroelectric Power Plants

Hydroelectric energy is produced by utilising the water, i.e. with the movement of water. It can be perceived as a kind of solar energy as the sun moves the hydrological cycle in which the country is supplied with water. In the hydrologic cycle, atmospheric water falls on the surface of the earth as precipitation. Part of this water evaporates, but most of it infiltrates the soil or flows on the surface. Precipitation and melting snow eventually flow into lakes, reservoirs, or oceans where there is constant evaporation.

48

Directive2009/28/EC of the European Parliament and of the Council from 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.

- 61 -

Figure 6.1.1. Hydrological water cycle

The hydropower plants (HPP) are facilities for production of electric power that belong to the group of environmentally friendly technologies. The use of water, as a resource for producing electricity, puts the hydro power plants in the group of renewable energy sources.

The hydropower facilities are divided into large and small HPPs according to the size of the installed capacity. The division is not defined strictly, but in our circumstances large HPPs are those with installed capacity of 10 MW, and all other HPPs, with capacity below 10 MW are classified into the group of small HPPs.

The major component of a small hydroelectric plant is the hydro turbine. All such turbines convert the energy from falling water into rotating power in the outflow. The decision about what kind of turbine to use depends on the characteristics of the site, especially the water drop and the water flow, as well as the desired working speed of the generator, and whether the turbine will operate at reduced flow.

There are two main types of turbines, impulse and reaction ones. Impulse turbines convert the potential energy of water into kinetic energy with water jet exiting the nozzle which is directed to the blades or the fins that spin. Reaction turbines use pressure, as well as the speed, of the water to generate power. The rotor is completely submerged and this reduces the pressure and the speed of the intake to the outflow.

In comparison, the impulse turbine rotor runs in the air, and is powered by water jets. There are three main types of impulse turbines: Pelton, Turgo and cross-flow turbines (or Banki - Michell). The two main types of reaction turbines are the propeller (with the Kaplan version) and the Francis turbines. The table 6.1.1 presents an approximate classification of water turbines, by type and level of the water drop for which they are used. This classification is approximate and depends on the exact design of each producer.

Table 6.1.1. Classification of hydropower turbines

Type of turbine Classification of water drop

High (> 50m) Medium (10-50) Small (<10m)

- 62 -

Impulse Pelton, Turgo,

Multi-Jet Pelton

Cross-Flow, Turgo, Multi-Jet Pelton

Cross-Flow

Reaction Francis (spiral) Francis (open-flume),

propellers, Kaplan

Most of the existing turbines can be divided into three categories:

• Kaplan and propeller turbines

• Francis turbines

• Pelton and other impulse turbines

Kaplan and propeller turbines are reaction turbines with axial water flow. The most widely used are the reaction turbines with axial flow, mainly used for small water drops (usually less than 16 m). Kaplan turbine blades are flexible but do not necessarily have flexible direction fins. If moving blades or direction fins are flexible then it is "double - regulated" one. If direction fins are fixed then it is "single - regulated" one.

In the conventional version, a Kaplan turbine has a regulator (steel or reinforced cast concrete); the flow enters in radial manner and makes a turn at a right angle before entering the rotor in the axial direction. When a rotor has a fixed turbine blades the turbine is called a propeller turbine. A propeller turbine can have rotating or fixed direction fins. Unadjusted propeller turbines are only used when the water flow and water drop are constant.

Head-shaped and cylindrical parts originate from the propeller and the Kaplan turbines, where the water flows in and out with minor changes. The amplifier and the turbine generator are placed in the head of the head-shaped part which is submerged in the water flow. Cylindrical turbines allow certain deployments, i.e. flows at a right angle, Staflo turbines with S pipes, belt-driven generators, etc. Flows at a right angle are quite an interesting solution but they are produced for a capacity of up to 2 MW.

The Francis turbines are reaction turbines with radial flow, fixed moving blades and flexible direction fins used for medium water drops. The regulator is made of complex bows. The Francis turbine is made of cast iron, or factory-made controller for water distribution along the whole perimeter of the rotor, and several rows of fins to direct and regulate the water flow in the rotor. The Figure 6.1.2 presents a schematic presentation of this type of turbine.

The Pelton turbines are impulse turbines with one or more jets, each exiting a needle valve orifice for controlling the flow. They are used for medium and large waterfalls. The orifice axes are placed in the base of the rotor. Figure 6.1.2 shows the scheme of the vertical Pelton turbine and the orifice axes which are in the same draft as the rotor. Some manufacturers have created special types of machines of limited release and capacity, which can be more advantageous in certain circumstances.

The Cross-flow turbines, also known as Ossberger turbines, are named after the company that has produced them in the last 50 years, or the Michell turbines used for a wide range of water drops, are similar to the Kaplan, Francis, and the Pelton turbines. They are especially designed for high speed flows with a small drop.

The Turgo turbines can operate with water drops from 30 - 300 m. Similarly to the Pelton turbines, they are also impulse ones, but their blades have different shape and the water jets strikes the base of the rotor at an angle of 20°. The water enters the rotor from one side of the rotor disc and exits from the other. Due to its smaller diameter, it allows direct coupling of the turbine and the

- 63 -

generator, compared to the other types. The Turgo turbines are more suitable for medium water drops, whereas the Francis turbines can be used also for other purposes. Unlike the Pelton turbines, the water passes through the rotor creating axial force, where there is a need for installation of thrust that is connected to the tunnel.

PELTON

TURGO

FRANCIS WITH OPEN PIPE

FRANCIS WITH SPIRAL

WITH CROSS-FLOW

- 64 -

WITH PROPELLER

Figure 6.1.2. Scheme of the main types of turbines

The type, geometry and the dimensions of the turbine are conditioned by the following criteria:

• Clean water drop

• Volume of flow through the turbine

• Rotating speed

• Cavitation problems

• Costs.

Fig. 6.1.3 presents the operation models of different types of turbines according to the water drop and the flow volume. The clean water drop is the primary criterion taken into consideration when deciding on the type of turbine to build.

Figure 6.1.3. Scope of operation of various types of turbines

Table 6.1.2 presents the relevant water drops for optimal operation of various types of turbines.

- 65 -

Table6.1.2. Water drop for optimal operation of various types of turbines

Types of turbines Values of water drop in meters

Kaplan and propeller 2 < H < 15

Francis 4 < H < 100 Pelton 30 < H < 1000 Cross-flow 1 < H < 150 Turgo 50 < H < 250

Some turbines are more difficult to manufacture than others, for the same water drop,and therefore more expensive. For example, the the propeller turbine is cheaper than the Kaplan one, although they are both designed for the same, small water drops flow value. Among the turbines for average water drop, the cross-flow turbine is less expensive than the Francis one whose "runner" is more complex, although its efficiency is higher. It must be underlined that in regards to the water flow, that turbines cannot operate from zero to the nominal flow.

The investment costs for construction of SHPP vary significantly depending on its installed capacity, the building terrain, and the distance to the nearest point of connection to electrical grid. On average, the specific investment costs are about 2.000 Euro/KW installed capacity. The costs are distributed as following, 70% are spent on the construction works, 20% on mechanical equipment, and the remaining 10% are spent on electrical equipment.

6.2. Technology for Biomass Use

Plants for the Transformation of Biomass into Heat and Electricity

The biomass is an organic material that can be effectively used as local energy source. Also, it is a renewable source of energy. The processes and the technologies for the transformation of the energy contained in biomass into energy at a higher temperature level, in fuel (solid, liquid, or gas) as well as raw materials for chemical industry can be classified in three groups:

• thermo chemical (combustion, gasification, pyrolysis, and methanol production);

• biochemical (anaerobic digestion for production of biogas, and aerobic fermentation for ethanol production) and

• Chemical (production of biodiesel, and lubrication oil).

This study, discusses thoroughly the thermo-chemical processes, and explains partially the biochemical process of anaerobic digestion for biogas production.

The basic technologies and processes for transformation of biomass into heat or in different types of fuel materials are given in Table 6.2.1.

Table 6.2.1. Technology for the conversion of biomass into fuel material

Origin of biomass Conversion process Technology Final product

Wood, agricultural waste, urban solid waste

Thermochemical Direct combustion Heat, water/steam, electricity

Wood, agricultural waste, Thermochemical Gasification Gas with relatively low and

- 66 -

urban solid waste medium thermal power


Thermochemical Pyrolisis Synthetic liquid fuel, tar


Thermochemical Production of

methanol Methanol

Manure, agricultural waste, landfill, wastewater

Biochemical-anaerobic

Anaerobic fermentation

Gas of medium thermal power (methane)

Plantations for sugar and starch production, waste wood, sludge waste, grass clippings

Biochemical-anaerobic

Production of ethanol Ethanol

Beet seed, legume waste, vegetable oil waste, animal fat

Chemical Production of

biodiesel Biodiesel

Combustion of biomass from organic material. The oldest, and still the most common process for the use of vegetable biomass for energy purposes is its direct combustion.

The biomass of plant origin is naturally solid fuel with a high content of volatile substances, which makes it highly inflammable. Diverse types of biomass may have a very similar composition, but very different assortment, humidity and thermal power, which affects the conception and performance of the devices in which it burns. During the combustion of the plant biomass that are other thermophysical and chemical processes taking place simultaneously, among which the basic ones are: drying (at 60 ÷ 100°C), separation of volatile substances (devalotalization) (mainly 300 ÷ 400°C), ignition of volatile substances, burning coke residue (400 ÷ 600°C) and combustion of coke residue (700 ÷ 1.500°C). What is typical for different types of waste fuels, including wood waste, is the dynamics of their creation, which in most cases does not match the dynamics of heat energy needs. In addition, due to the small bulk density they require a large storage space, and there is a constant danger of fire. Despite this the biomass is a fuel that can successfully replace, especially in agro complex, a significant amount of liquid fuel. For the combustion of biomass, depending on its shape, type and humidity, classical technologies for grid combustion (fixed, mobile, oblique and stepped) and combustion in flight (space) and advanced technology for combustion in a fluidized bed are used.

Below are briefly presented some possibilities and technical solutions for utilizing the biomass of plant and animal origin for energy needs in order to give a contribution to making the right decisions for the optimal use of biomass.

Figure 6.2.1 shows the scheme of a standard complete plant for wood waste burning, with its basic elements: a silo storage of biomass with the accompanying equipment, a combustion boiler on oblique grid and a gas purifier, produced by EMO Celje.

1. Silo

2. Milling machine-dosing device

3. Irreversible valve

4. Transport fan

8. Oblique grid

9. Dosing device

10. Gas valves

11. Gas Filter

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Figure 6.2.1. Plant for wood waste burning

Figure 6.2.2. presents a scheme of a boiler produced by Slovenian manufacturer, specially designed for biomass combustion with fore-firebox and frontal load of fuel.

Figure 6.2.2. Scheme of a biomass boiler with fore - firebox of Slovenian manufacturer (EMO, Celje)

Figure 6.2.3 shows the scheme of a hot water boiler of a modern design produced by Italian manufacturer for efficient combustion of wood waste with side load of fuel. This type of boilers is manufactured with thermal capacity in the range of several hundreds of KW to several MW.

Figure 6.2.3. Scheme of a biomass boiler BI-COMB 5000 (Ferolli),

1 - primary air; 2 - secondary air; 3 - hot water outflow; 4 – heat modifying surfaces; 5 – feed-water inflow; 6 - measuring probe 7 – gas emission fan; 8 - gas emission channel; 9 - worm ash conveyor; 10 – fuel grid (biomass); 11 - worm fuel conveyor (biomass)

Briquetting and pelletizing. The production of pellets and briquettes from waste wood (wood chips), and certain waste from agricultural production, is a potential source of energy with environmental aspect for this region.

The process of briquetting and pelletizing involves compacting the biomass at high pressure, during which the biomass particles and the pieces are compressed in molds in order to obtain pellets or briquettes. These products have significantly smaller volume compared to the original form of the biomass and therefore have more concentrated energy potential (higher energy content per unit volume), which makes them more compact energy sources. This also facilitates the transport and storage compared to the biomass in the natural state, allowing for its efficient combustion.

In addition, the illustration in Figure 6.2.4 presents a schematic view of the production process of pellets from wood waste. Figure 6.2.5 presents a plant for production of pellets with its basic elements, while Figure 6.2.6 shows the structures of small capacity boilers for combustion of pellets.

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Figure 6.2.4. Schematic presentation of the production process of pellets (system: Turenki, Finland)

Figure 6.2.5. Plant for the production of pellets (Holz-Energie-Zentrum); Loading of raw material (wood waste); Second pressing cylinder; 3. Electric motor for propulsion; 4. Contact area of wood chips; 5. Pellets which are not cut; 6. Transfer components; 8. Extrusion mold; 9. Cutting device

Figure 6.2.6. Principle scheme of boilers with low capacity for combustion of pellets; 1. Grid; 2. Combustion chamber; 3. Space for ash; 4. Heat exchange surface; 6. Fan; 7. Isolation; 8. Control device; 9. Electrical igniter;

10. Helical pellet conveyor; 11. Motor and transmitter; 12. Safety device

Using biomass hot water boiler in combination with solar collectors. Figure 6.2.7 shows the principle scheme of a system for obtaining energy from waste biomass combined with a solar collector. There is a built-in heat battery in the system, allowing flexibility in supplying consumers with thermal energy for heating and sanitation. This combined system can be very convenient in the areas of Macedonia where there are many sunny days a year.

Raw material storage

Intermediate storage

Pelletization

Cooling Pellet storage Grinding and drying

Screening

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Figure 6.2.7. Principle scheme of hot water boiler system on biomass with a heat battery and solar collectors

Production and utilization of biogas from livestock breeding. One way of utilizing biomass of animal origin is the production of biogas through the process of anaerobic fermentation of organic waste from farms. The anaerobic fermentation is a biochemical process where specific type of bacteria digests the biomass in the absence of oxygen. The dissolution of complex organic waste takes place simultaneously, by the action of several different types of bacteria and water.

The anaerobic fermentation allows efficient conversion of waste from agriculture, households and food industry (fruit and milk processing), and farm manure (cattle, pigs, and poultry) in:

- Biogas (rich in methane) which can be used for production of heat or electricity;

- Fiber material, which can be used as a food (soil fertilizer), and

- Liquid that can be used as fluid fertilizer.

The process of controlled anaerobic fermentation (artificially) takes place in a closed vessel, so called digester, with insufficient quantity of air, which creates ideal conditions for the bacteria to perform digestion of the organic material. It is necessary to maintain a temperature of at least 20°C in the digester and to stir the raw material in order to obtain the ideal conditions in which the bacteria converts the organic material into biogas (a mixture of methane, CO2 and small amounts of other gases), and to accelerate the action of bacteria . The duration of the process is reduced by applying higher temperatures (up to 65°C), which increases the capacity of the digester, and its fuel consumption to maintain this temperature.

A principle scheme of a plant for the production of biogas from animal waste, from a pig farm is shown in Figure 6.2.8. Four plants that use the biogas as waste fuel are under construction. Three of them are in the Pelagonia Region, and one is in Polog. The total installed capacity of the four plants is 6 MW49.

49

Review of electricity producers from renewable energy sources - thermo power plants on biogas, Energy Regulatory Commission, Skopje, August 2014

Hot water consumers

Solar collector

Hea

t ex

chan

ger

Hea

t b

atte

ry

To c

on

sum

ers

For

hea

tin

g

Expansion vessel

Expansion vessel

Biomass boiler

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Figure 6.2.8. Plant for processing waste from a pig farm into biogas by the anaerobic fermentation method

Available Technologies for the Utilization of Waste as Energy Potential

In order to define which technology is the most appropriate for a particular region one needs to consider many factors, including local methods of collection, processing and disposal of municipal solid waste, and local regulations regarding the environment. According the Study for awarding a concession forregional integrated solid waste management in Southeastern Macedonia50, and some additional analyzes51, the procedures for energy valorization of municipal solid waste available for application in practice, the use of incineration and landfill gas are considered as the most promising in Macedonia and therefore they will be further discussed and explained below. The waste in the form of energy can be used in:

Incineration (burning) – is a process of controlled combustion of municipal solid waste, in order to reduce the volume, and produce heat energy. The costs for construction of an incineration plant, as well as the operating costs, are high. One of the main problems for conducting incineration is the lack of homogeneous waste. The composition of solid waste changes constantly over time, so it is difficult to achieve balanced work process. The amount of moisture and non-combustible substances in the waste are factors that are most difficult to adjust to the combustion process. Additional problem is the air pollution which this process causes, which cannot be avoided completely even with the most sophisticated facilities.

The specific costs for investment and operation decline with the increase of the plant’s capacity. The operation of a plant requires highly qualified and skilled workforce, working continuously in three shifts. Therefore, it is not recommendable that the plant is constructed in small towns. On the other hand, if a plant serves a greater area, the costs of solid waste transportation increase.

50

Study on the award of regional integrated solid waste management concession in Southeast Macedonia, Ministry of Environment and Physical Planning, Skopje, February 2010 51

S. Armenski, K. Dimitrov, K. Davkova, D. Tashevski and O. Dimitrov; "Municipal waste as an energy source in the country," Scientific-research projects funded by the Ministry of Education and Science of the Republic of Macedonia, Skopje, September 2004

Digester Absorber Sprayer Gas tank

Separator

To aeration

Boiler

Collecting ditch

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The incineration of waste involves high investment costs, and high operation and maintenance costs. The net value of the costs of the waste processed with incineration is higher compared to other options (usually landfills).

Depending on the actual costs (which depend on the plant size) and the revenue from the sold energy, the net costs per ton of processed waste are 25 -100 USD (1998), or an average of 50 USD. At the same time, the costs of waste disposal in the landfill range from 10-40 USD per ton.

According the recommendations of the World Bank52, the key criteria for the use of waste as fuel in incinerators are:

• The average minimal thermal power must be at least 6 MJ/kg in all seasons;

• The average minimal thermal power per year must not be below 7 MJ/kg;

• The assessment of waste generation and composition must be based on the examination of the waste in areas where the same is collected, and areas where the incineration plant is envisaged to be constructed;

• The annual amount of waste incineration must not be below 50.000 t, and weekly variations in supply cannot be larger than 20%.

The incineration technology, which does not involve pre-sorting or pre-processing, is the most widespread and tested technology for incineration of municipal solid waste.

Therefore, the unit costs of waste treated in an incineration plant is significantly higher in comparison to the costs of treating waste with classical methods (sanitary landfills). Based on the data provided by the World Bank53, a conclusion may be drawn that the costs of treating municipal solid waste by incineration are two times higher than the costs of disposal in sanitary landfills.

What is important for the developing countries when making the assessment of costs and profits is that it is necessary to prepare a cost-benefit study in order to justify the use of incineration. When estimating the costs, one should pay attention to:

• the distance and the routes for waste transportation;

• the need to use and re-cultivate the land;

• the impact on tourism and city development

• the short and long-term impact on the environment;

• the capacity of the local labour market and

• the sustainability of the process for production of energy from waste.

If the assessment of costs and profits are negative, then the disposal of waste in sanitary landfills is economically the most sustainable decision with continuous improvement of the capacity and quality of the existing landfills.

Combustion – the coefficient of excess air is above one. The thermochemical conversion takes place as a result of the chemical energy release of the fuel. It is used in fuels with limited moisture content and higher calorific power, which in a municipal solid waste is usually between 10 and 13 MJ/kg.

52

Peter Quaak, Harrie Knoef, Hubert Stassen: “Energy from Biomass: A review of Combustion and Gasification Technologies”, World Bank Technical Paper No. 422, 1999 53 Peter Quaak, Harrie Knoef, Hubert Stassen: “Energy from Biomass: A review of Combustion and Gasification

Technologies”, World Bank Technical Paper No. 422, 1999.

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Pyrolysis – The process of thermal decomposition in which the material is heated by an external source of heat in the absence of air, and as a result, a mixture of solid, liquid, and gaseous fuel is obtained. One part of the resulting fuel is used as a source of thermal energy for pyrolysis.

Gasification - The process of thermal decomposition takes place in the same way as in combustion, only with a coefficient of excess air over one. The material is converted into gas mainly consisting of carbon monoxide, hydrogen and methane.

Plasma process - Municipal solid waste is heated up to a high temperature of 3.000-10.000°C using a plasma arc. The energy releases by an electric discharge in an inert atmosphere. In this way, the organic waste converts into gas that is rich in hydrogen, while the inorganic waste converts into inert glass residue.

Anaerobic digestion – is a process of microbiological decomposition in the absence of air. The organic material processed is highly moisturized. During the process of decomposition is obtained gas that consists primarily of methane and carbon monoxide.

Landfill gas - Most of the landfill gas is formed by the decomposition of bacteria present in the waste and the land that covers the landfill. Unlike in the case of anaerobic digestion, the microbiological degradation is not controlled and partly anaerobic digestion takes place. The primary gas obtained in this manner contains methane and carbon monoxide.

Today, it is of great importance to control and manage the emissions of anthropogenic origin, including emissions from landfill gases from the landfills for solid waste. Methane and carbon dioxide are the main components of the landfill gas. Carbon dioxide is a gas that creates the greenhouse effect, and the impact of methane is 23 times higher. The use of landfill gas (LFG) is one method for managing emissions from landfills. The landfill gas mainly consists of 50-60% of methane and 40-50% of carbon dioxide and other gases in traces. The heat power of this gas is approximately half of the natural gas. The share of methane must be at least 35% for its use to be profitable.

The emission of methane from landfills into the atmosphere is reduced by its collection. Landfills are major anthropogenic sources of methane making about 40 [%] of the total methane emissions that come from landfills. The collection of gas from landfills reduces the unpleasant odors, harmful effects of the landfill on the environment, the danger of fires and can be a good source of income. The collection of landfill gas is one of the most widespread forms of utilizing waste for energy purposes.

The number of power plants for this purpose has increased significantly in the recent years. The procedure for using landfill gas is rather simpler compared to other procedures. Moreover, it is also economically most favorable way to use the energy potential of the waste, if sufficient land for landfills is available, and if leachate water is treated in a proper way.

The level of investments depends on the amount of energy generated and the distance to which this energy has to be delivered. As already stated, the system for use of landfill gas consists of parts for collection and parts for evacuation of the landfill gas.

• The collection system of landfill gas consists of vertical (which are set after waste disposal) and horizontal boreholes (placed during waste disposal). The average investment costs for horizontal and vertical boreholes are the same. The investment costs for a landfill with an average depth of 10 meters, is 20.000-40.000 USD per hectare.

• The system for evacuation of landfill gas consists of vacuum pumps, and equipment for control and management. The investments depend on the sophistication of the control and management system, and the volume of the landfill gas that is to be evacuated. The investments in the evacuation system are 100-450 USD per m3 evacuated landfill gas per hour. The necessary investment for a system to evacuate landfill gas, from an average landfill

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depth of 10 m, ranges between 10.000 and 45.000 USD per hectare. Simpler systems that are used in developing countries range from 10.000 - 15.000 USD per hectare.

The gas is commonly used as a fuel in plants that produce electricity. The price of the device ranges between 850 and 1.250 USD per KWe, and depends on how contemporary is the equipment54.

Depending on the solution brought forth, the cost of the investment is in the range of 1.550-2.250 USD per KWe.

Each of the above mentioned technologies require different amounts of raw materials, emit different amounts of carbon monoxide, have different impacts and different output efficiencies.

6.3. Application of Geothermal Energy

The geothermal energy is defined as natural heat that comes from inside the earth, and is used to produce electricity, heating or industrial steam. It can be found everywhere under the surface of the earth, although the sources with the highest temperatures, which are the most exploited, are located in areas of geologically active volcanoes.

The economic aspects of the use of hot waters limit their larger use in the energy sector. The economic benefits come from their long-term use over the years with little cost in the initial investment which can be significant.

The most important factor in the use of this type of energy is the temperature of geothermal waters on which depends whether the geothermal energy is to be used for heating, or for production of electricity.

The production of electricity is the most important form of utilization of high temperature geothermal resources (>150°C). Sources with medium - to low temperature (<150°C) can be used for various needs. The standard Lindal diagram55 shows the possible uses of geothermal liquids with different temperatures (Figure 6.3.1), and the possibilities to generate electricity from binary systems). The liquids with temperatures below 20°C are used rarely, and in specific situations, or for making heat pumps.

54 Landfill gas recovery and use throughout South East Europe, Final technical report, EnEfect, Sofia, July 2013 55

Lindal, B., 1973. “Industrial and Other Applications of Geothermal Energy”, Geothermal Energy, (ed. H. C. H. Armstead), Earth Science, v. 12, UNESCO, Paris, p.135-148.

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Figure 6.3.1. Possibilities for the use of geothermal energy by temperature level

Due to the low temperatures of geothermal waters in the country, they cannot be used for production of electricity.

In systems with temperatures lower than 120°C, the geothermal waters can be directly used rather than being converted into electricity. The best way to use them is by heating up the facility with water air conditioners or floor heating. As such, they can be used in agriculture, aquaculture and as water for industrial use. In cases where the water temperature is below 40°C, heat pumps are used for heating and cooling of facilities. If there is no groundwater, heat pumps can be combined with heat exchangers to the ground.

The heat pump (Figure 6.3.2) is a thermal machine through which the heat can be exploited from the ground or with other appliances from greater depths (a dozen or a hundred meters) with a lower temperature and is transferred at a higher temperature from the place where it is heated. The advantage of the heat pumps is that for each unit of consumed energy, additional three units of energy are used in the form of heat using geothermal water.

Upon cooling, the heat is taken from the area and is discharged into the ground, and when heating, the heat is taken from the earth and is discharged into the air.

A heat pump is limited by the second law of thermodynamics, and like any other heat pump (any energy transformation involves loss of part of energy in the form of heat at a lower temperature, which is no longer usable) and thus we can calculate the maximum efficiency by the Carnot cycle. Heat pumps are characterized by a coefficient of performance - COP, which is obtained from the ratio of the number of units of energy obtained from the hot tank per work unit.

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Figure 6.3.2. Geothermal heat pumps

Finding a geothermal reservoir is a complex operation that involves several stages, and it starts with surface investigations on a specific location. This consists of initial assessments of existing geothermal features (hot water springs, fumaroles, water currents, geysers, etc.), followed by geological, geochemical, geophysical investigations and drilling of test wells (depth up to several hundreds of meters) to measure the temperature (geothermal gradient) as well as to estimate the movement of heat through the ground.

Depending on the temperature of the hot water, it can be applied a multilevel or so called cascaded use of geothermal energy. Figure 6.3.3 shows the system of using geothermal hot water in Bansko, Strumica.

Figure 6.3.3. Scheme of a plant for multi-level use of geothermal energy in Bansko; 1- geothermal source; 2-pump station; 3-greenhouse; 4-polytunnels; 5-heat exchanger; 6-fossil fuel boiler; 7- " The Tsar Samuil" hotel 8-

heating of the hotel; 9-sanitary hot water; 10-swimming pool; 11-polytunnels connected to geothermal fresh water; 12-polytunnels connected to used geothermal water; 13-outdoor swimming pool-distribution of

geothermal water.

After the pump station 2, part of the hot water is directly carried to the greenhouse with cca 3 ha area for its heating, from where it is then carried to heat the polytunnels. The second part of the hot water from the pump station 2 is carried to the hotel Tsar Samuil for central heating and preparation of sanitary hot water (in separate heat exchangers). The cooled water from the greenhouse 3, 4 the polytunnels and the heat exchangers 5, is carried to the swimming and therapeutic treatment pool

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10. The third part of the hot water from the pump station is carried to the outdoor pool 13 (concrete), from where it is carried to heat the polytunnels in its immediate surroundings.

6.4. Technology for the Utilization of Solar Energy

Since ancient times, people have understood the benefits and importance of the sun and its energy.

System Using Solar Energy for Water Heating

The simplest application of solar energy is in the solar collectors for hot water. In this way we do not get energy, but the water is heated by passing through the collector. Panels work by a simple principle. They consist of pipes (or a long tube) placed in the body. The air is extracted from the case, as there is a vacuum created in it, in order not to prevent losing the heat gathered inside (there is no air, and no heat transfer). The case is also well insulated. On the upper side, the collector is closed by glass so that the sunlight can pass through. The tubes are coated with black paint for better absorption of solar energy, and the base of the casing with white or it is made of metal, i.e. a reflective material is used for more efficient directing of the sunlight to the pipes. The reason for this is that the collector uses the infrared part of the spectrum of the sun rays to heat up, rather than the visible light. The collectors can also be used in the winter or when it is cloudy, in reduced sunlight because the infrared light passes easily through obstacles in the atmosphere. Usually, the collector is set with the azimuth of 15° from the South to the West, and the slope is equal to the latitude of the place of setting. At this inclination angle, the surface will be perpendicular to the solar radiation at noon only twice during the year. At other times of the year the sun will fall at an angle which is greater, or smaller than the latitude of the place of setting.

Figure 6.4.1. Way of setting up a collector

The collectors are one of the most important parts of the solar systems for heating water. There are different models of solar collectors, based on different principles of physics, ranging from integrated systems, systems with parabolic mirrors and many others, still the most used collectors in our country are the flat plate and the vacuum tube collectors.

WEST

EAST

INCLINATION ANGLE

NORTH

SOUTH

AZIMUTH

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Each system that uses solar energy for water heating consists of a collector and a hot water tank. Thermal energy transfers through liquid in the solar heating system can be divided according to the way of water circulation in two ways, namely: circulation with a pump (active system) or through the difference of water thickness at different temperatures (thermosyphon or passive system). Each method of circulation has certain advantages and consequently their application should be appropriate to the installation.

Figure 6.4.2. Pump and thermosyphon system for heating up water

The pump system, also known as active or “split system”, uses a pump for water circulation between the collector and the water tank. In split systems, or pump systems, the water flow is controlled by an automatic controller that manages the pump. Considering that between the collector and the tank there is an active pump, this system is very flexible. The control panel and the pump together provide an enhanced system that offers much more control over the maximum and minimum temperatures and includes features such as protection against freezing and overheating. This system is under pressure and even though it has a pump and a controller it requires additional elements such as an expansion tank, one-way valves, etc.

The thermosyphon system, also known as passive system does not require a pump to circulate the water, instead it relies on the thickness of the water at different temperatures, where the hotter water rises to the highest point. For this system to operate, the tank must be mounted above the collector, in relation to the horizontal. The system works when the water in the collector is heated up. The heated up water becomes less dense, rises within the system, and accumulates at the highest point in the system, which is in the tank. The cold water in the tank, due to its higher density, is falling in the lower parts of the system, i.e. to the collector. Since this system is based on the principles of physics, there is no direct control over the circulation of water; hence the control over the temperature of the water in the tank is limited. A typical thermosyphon system, is recommendable to have a thermostatic valve to avoid a very high temperature of the hot water.

Solar Plants for Getting electricity

The production of electricity from solar energy is done in two ways: indirectly, by heating up a liquid where the thermal energy from the liquid is directly converted into mechanical or electrical, or using a thermodynamic cycle (Rankin, Brighton Stirling and other.); or directly by using photovoltaic systems.

controller

tank

Thermosyphon System

tank

pump

pump system

collector

hot water

hei

ght

dif

fere

nce

cold water

tank

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In photovoltaic systems, electricity is directly obtained from the solar energy. The operation principle is based on the well-known photoelectric effect (sometimes referred to as photo effect).

Figure 6.4.3. Photoelectric effect

The photoelectric effect is a physical phenomenon in which the action of electromagnetic radiation with a sufficiently short wave length, e.g. visible or ultraviolet light (light is also electromagnetic radiation), causes outbreak of electrons from bright material (metal, in recent times called semiconductors). The effect of light on the electrical properties of materials was discovered by Becquerel back in 1839, when he revealed the photovoltaic effect - a similar but not the same as the photoelectric effect. The photovoltaic effect is an event during which one can observe creation of a voltage or an electric current in a material, upon its exposure to the light. Although this effect is closely related to the photoelectric effect, they are still different processes. In the photoelectric effect, the electrons are emitted from the surface of the material when exposed to radiation with sufficiently large energy. In the photovoltaic effect, the emitted electrons are transferred from one area to another (from the valence to conduction areas in the very material, during which voltage accumulates between two electrodes).

However, not everything is perfect when it comes to photovoltaic plants. First, the initial investment is very high because of the expensive manufacturing of photovoltaic cells (lately it has recorded a significant decline56). Due to the very small capacity factor (ranging between 13% and 19%), the price of the generated electricity is very high. This means that without subsidies from the government, through preferential tariffs, the electricity generated in these plants would be expensive on the open market. We have already mentioned that the solar cells produce direct current, which has to be converted into alternating in order to be useful. There is loss of 4 ÷ 12%. The electricity is not produced at night, and the production is additionally reduced when it is cloudy or during winter, because it requires direct sunlight, unlike the systems with indirect electricity generator. In recent years, there have been attempts to develop solar cells that operate in the range of the infrared light.

56

According to the German portal: http://www.photovoltaik-guide.de/pv-preisindex, the cost of a photovoltaic system with installed capacity of 100 kW, on a "turnkey" in August 2014, in Germany, amounted to 1.310 EUR / installed kW.

Photons Free electrons

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6.5. Wind Energy: Technologies of Use

Modern Wind Turbines Generating Electricity

The wind turbines are used to convert the kinetic energy of the wind into electricity. The use of wind power for electricity generation dates back to the late XIX century, with the wind turbine of 12 kW DC generator designed by Brush in the US and LaCour’s research in Denmark. However, in the first half of the XX century there was little interest in the use of wind turbines for electricity generation, except for charging of batteries in remote settlements, but these systems were quickly abandoned, as soon as the distribution network of electricity became available. This situation, with few exceptions, persisted until after the World War II.

The unexpected, dramatic increase in the price of oil in 1973 was a turning point in the development, and the use of wind turbines. The developed countries begun to stimulate the development of the wind turbines and their growing application for generation of electricity. Figure 6.5.1. shows the tendency of increase in size of wind turbines in recent years.

Figure 6.5.1. The growth in the size of modern commercial wind turbines - past and future

Today, wind turbines need to be efficient in order to be highly competitive with other energy sources. They have to meet all the requirements to produce energy with minimal cost per unit of generated electricity. The performance characteristics such as the output energy in terms of speed of wind or in terms of the angular speed of the rotor must be optimized in order to be competitive with other energy sources. The annual production of electricity and its variation with the annual wind statistics must be also well known. The moment of the axis must be known, and it should be dimensioned with adequate strength and the load of the turbine should be well calculated.

Past and present wind turbines Future wind

turbines?

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The composition of modern wind power plants generally includes the following elements (Figure 6.5.2.):

- Tower (A): towers currently reach heights of 30 to over 100 m. They are made of different materials and different designs. The most frequent ones have the form of steel poles that rise up with mild conical shape. The diameter of the foundation of towers may range from 3 to 7 m, and higher towers have larger diameters of their foundation.

- Nacelle (B): the nacelle contains key mechanical components of the wind power plant including the generator and the transmission gear. The so-called Yaw mechanism is used for rotating the cabin, to direct the rotor with the turbine blades opposite to the direction of the wind.

- Blades (C): the turbine blades, which absorb the wind and are driven by it, are usually made of composite materials, but they can be also made of aluminum and steel. The modern turbines usually have three blades. This optimal number of blades has been reached with long-term research and experiments. The modern wind turbines have a rotor diameter of 35 up to 164 m in the largest currently manufactured wind turbine (installed capacity of 8 MW, product of Vestas - Denmark).

- Transformer (D): the transformer is a device which changes the size of the voltage of the alternating electricity. The wind turbine generator usually generates voltage lower than 1.000 V, and the transformer converts the voltage according to the size of the grid voltage of the local transmission system. It can be placed in or next to the tower.

Figure 6.5.2. Basic elements of a modern wind turbine

The generation of large quantities of electricity requires installation of more turbines. The economic benefits are higher if the wind turbines are installed in groups, called wind parks (WP), or wind farms.

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In other words, if more wind turbines are installed in one area, the installation, maintenance, operation and distribution of electricity can be much more efficient. Larger amounts of concentrated power can be more easily transformed into high voltage condition, and as such can be distributed to the grid.

The wind turbines are typically installed in rows perpendicular to the prevailing wind direction at the selected location. The space between them can be at least two to four diameters of the rotor of the turbine if the wind blows almost always perpendicular to the row. If the wind striking the second turbine in a row has not previously been normalized by the blow in the one in front of it, if it does not blow at the row at a right angle, the generation of energy from the second turbine will be significantly lower compared with that which has no obstacle in front of it. This reduction is due to the short variations of wind speed and direction, wind turbulence, turbulence created by the wind turbines and the configuration of the terrain. The reduction in energy can be between 5-10%, for distances of 10 diameters between the wind turbines and the rotor in the direction of the wind. A larger distance between the turbines will contribute to increased energy production, at the cost of more land, roads, and transmission lines.

The total project costs of a wind park depend on its size. The bigger the park, the lower some of the expenses, hence the price of electricity would be more competitive. The costs can be divided into: development costs, capital costs, operating, and maintenance costs. The development costs include costs for planning, wind measurements, management, administrative and project costs, as well as costs for the preparation of a project assessment of the impact on the environment.

The main item of the capital costs are those of making wind turbines. The size of a windmill park, and the number of wind turbines that will be installed in a park directly affect the price. Most wind turbines of the same type would be significantly cheaper because of more effective design, procurement of materials, use of production equipment, and labor. This includes the costs of connecting it to the electricity grid, which would be much lower if the high-voltage grid connection is performed for more wind turbines.

The increased number of wind turbines in a park will not reduce significantly the operating costs, but the maintenance costs will take advantage of it. If we consider that a place has large number of wind turbines of the same or similar type installed in one place, the storage types and quantity of spare parts would be more economical, and the reaction time and interruption of the wind turbines for maintenance would be significantly reduced as well. Table 6.5.1. presents the values of savings under the previous criteria for WP, divided into four groups: 2-5 MW; 5-20 MW; 20-50 MW and over 50 MW. The information relates to the recent projects for WPs installed in the UK between 2009 and 201057.

Table 6.5.1. Costs according to the size of a windmill park

Group 2 – 5 MW 5 – 20 MW 20 – 50 MW > 50 MW

Development costs in EUR/MW

88.100 82.500 51.600 43.500

Capital costs in EUR/MW

1.690.000 1.680.000 1.460.000 1.300.000

Maintenance and operating costs in EUR/MW

59.700 55.500 55.300 56.700

57

GL Garrad Hassan, UK Onshore Wind – The True Cost Now and in the Future, presentation, Germany, 2011

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7. Analysis of the Potential for Use of RES

7.1. Hydropower Potential

According to the geographical configuration and relief, Macedonia is a landlocked country mainly dominated by highlands. The best sites for construction of facilities for production of hydropower are located in the Western part of the country, on the right side of the Vardar River.

Small hydropower plants. According to what has been said already, the small hydro power plants (SHPPs) are production facilities with a capacity of 10 MW. SHPPs are among the most cost-effective and reliable energy technologies that allow production of clean electricity.

The hydropower is considered a renewable source of energy when it is used to produce electricity from small hydropower plants with installed capacity of 10 MW. Most of the existing SHPPs are owned by the EVN company in Macedonia, and only few are owned by the water management organizations. One of the existing SHPPs owned by EVN Macedonia is located in the Southeast region. It is the SHPP Turija whose main characteristics are given in Table 7.1.1.

Table 7.1.1. Main features of the existing SHPPs at the territory of the Southeast Region

Name of a SPP Qinst, (m3/s) Pinst, (MW) Wgod, (GWh)

Turija 2 × 2,3 2,2 5,20

A study of 198258, identified about 400 potential sites for projects for small hydropower plants with installed capacity from 45 kW to 5.000 kW, (etc. 7.1.1.). According to this exhaustive list, the total identified potential is in the group of 255 MW, with capacity of 1.100 GWh regarding the annual energy generation, which is 10% of the current need for electricity. In the meantime, some of these locations have been further explored through studies and preliminary projects on the basis of which the Ministry of Economy gradually puts out the best and the most promising locations to public construction tenders. So far, the Government of the Republic of Macedonia has announced six tenders for concession of small hydropower plants.

58

Study on possible mini and small hydro in SR Macedonia, Republic Committee for Energy of SR Macedonia 1982

- 83 -

Figure 7.1.1. Candidates for construction of mini and small HPPs defined according to1

The engagement of HPPs in the electricity power system (EPS) is calculated with the factor59:

This factor, in the amount of 0.3 (30%), is used as an indicator to determine the planned production of SHPPs in Macedonia.

According to the available data, in the territory of the Southeast Region, besides SHPP “Turija” at the moment there are three more small hydro power plants which are under construction and have acquired the status of preferential producers of electricity from renewable energy sources. Their total installed capacity is approximately 660 kW with total annual energy generation of about 1.750 MWh.

If all SHPPs envisaged with the Study on hydropower potential of small hydropower plants were built in the territory of the Southeast Region, the total annual electricity generation would be around 47.200 MWh. If this is calculated by the factor CF (the coefficient of capacity or the factor that shows the amount of 30% proposed by the Study2 of MASA), the total annual electricity generation from the planned SHPPs would be around 28.700 MWh.

Table 7.1.2. presents the main features of the existing and planned SHPPs in the Southeast Region.

59

Strategy for the use of renewable energy sources in the Republic of Macedonia, Macedonian Academy of Science and Art (MANU), Skopje, June 2010

REPUBLIC OF MACEDONIA

Ratio 1 : 750 000

mini and small HPPs

Legend:

- 84 -

Table 7.1.2. Main features of the existing and planned SHPP by municipalities


Existing HPPs Planned HPPs

Installed capacity in kW

Generation of EP in MWh/yr

Installed capacity in kW

Generation of EP in MWh/yr

Bogdanci 0 0 0 0

Bosilovo 0 0 927 2.438

Valandovo 0 0 292 768

Vasilevo 2.350 6.180,5 3.337 8.776

Gevgelija 0 0 1.341 3.527

Dojran 0 0 0 0

Konche 0 0 0 0

Novo Selo 0 0 940 2.472

Radovish 270 710,1 2.445 6.430

Strumica 242 636,46 1.626 4.276

Total 2.862 7.527 10.908 28.688

With an average price of about 2.000 Euro/kW installed capacity, the total investment costs for the construction of the planned SHPPs would amount to about 22 million Euro.

Despite the aforementioned hydropower potential, during the preparation of this study, only 8 of the above proposed locations were covered with the 6 already conducted international tenders for granting concessions for the construction of SHPPs.

However, before approaching the granting of concessions, it is necessary to conduct further tests and measurements of the water flows, as well as a more detailed assessment of the potential of each provided location.

According to the Decree60 passed by the Government, a hydropower plant can acquire the status of a preferential producer if the installed capacity of the plant is lower or equal to 10 MW. The preferential tariffs for electricity generated and delivered by a HPP within a calendar month are:

Table7.1.3. Preferential tariffs for electricity generated and delivered by a hydropower plant, depending on the amount of electricity delivered

Block Quantity of delivered EP by blocks

(kWh)

Preferential tariff

(Euro cents/kWh)

I ≤ 85.000 12,00

II > 85.000 and ≤ 170.000 8,00

III > 170.000 and ≤ 350.000 6,00

IV > 350.000 and ≤ 700.000 5,00

V > 700.000 4,50

60

Decree on preferential tariffs for electricity (Official Gazette No. 56/13)

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A preferential producer has the right to use preferential tariffs for electricity generated by hydroelectric power plants in a period of 20 years.

Large hydropower plants. According to what has already been presented, although the hydropower plants with installed capacity greater than 10 MW are not subject to this analysis, because of the energy and economic importance for the Southeast region, in this part only the basic features of the “Vardar Valley” project will be given.

As potential candidates for the construction of large HPPs in Macedonia are taken only those facilities that have the technical documentation and the hydrological bases. The Vardar Valley project will be implemented along the Vardar River, stretching from Skopje to the border with Greece with total length of 200 km, 12 hydropower plants are to be built of which higher cascades are: HPP Veles with a dam height of 59 m and HPP Gradec with a dam height of 30 m in the canyon of the river. The remaining 10 smaller hydropower plants are cascaded along the river with small drops of 8.20 ÷ 12.0 m and they are expected to be built in the plains of Vardar Valley with installed “bulb” turbines or so called pipe turbines.

Four of the planned HPPs belong to the municipalities in the Southeast region, including: HPP Gradec, HPP Miletkovo, HPP Ġavato, and HPP Gevgelija (Figure 7.1.2.).

Figure 7.1.2. Locations of HPPs on the River Vardar

At project level, the hydropower plant Gradec in the Southeast region by its installed capacity and production is specially treated and sorted in the group of candidates for construction of large HPPs.

Table 7.1.4. presents the features of the four hydroelectric plants that are planned by an integrated regulation of the River Vardar, and belong to the Southeast Region. All but HPP Gradec are with unified installed capacity of 17 MW.

The total installed capacity of the four HPPs is about 106 MW, with average annual production of about 501 GWh. The total investment planned for these hydro facilities, including the displacement of the railway, is about 320 million Euro.

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Table 7.1.4. Candidates for construction of HPPs on the River Vardar which belong to the Southeast region

Name of

HPP Pinst, (MW) Wgod, (GWh)

Investment in

million €

Gradec 54,6 252,0 157,00

Miletkovo 17,0 80,3 53,89

Gjavato 17,0 83,2 60,66

Gevgelija 17,0 85,1 48,50

Total 105,6 500,6 320,05

The hydropower plants Veles and Gradec located on the Vardar River are facilities which require higher investments and additional construction works, such as, displacement of the railroad which should be performed as an integral part of the Vardar Valley along with 10 other smaller HPPs along the Vardar River.

7.2. Biomass Potential

General Data

The biomass has a significant place in the energy balance of the Republic of Macedonia. It accounts for 190 ktoe (2.209 GWh; 7.957 TJ), which is 12.5% of the total energy produced in the country (2012)61, or 6,4% of the total primary energy consumed, and 10% of the final energy consumed. According to the energy balance of the Republic of Macedonia62 for the period of 2013 – 2017, in 2012, the combustion biomass was represented by 62,5% in the use of renewable energy sources in Macedonia.

The biomass is especially present in households meeting around 30 - 33% of total energy needs. Around 430.000 households (76%) use biomass for heating.

It is estimated that there is an unidentified consumption of combustion biomass in the amount of 25 -35% of the registered one.

The types and the regional distribution of sources of biomass in Macedonia depend on the characteristics of each region. The biomass is most widespread in the agricultural and forest regions of the country. Wood and charcoal account for 80% of the total biomass used for energy purposes. Vine canes, rice hulls and branches of fruit trees are also used for energy purposes in Macedonia, but much of the straw is used for fertilization, forage and cellulose. Therefore, it is not available for energy purposes.

Forests: The total area under forests in Macedonia is nearly 987,5 thousand hectares (as measured on 31.12.2013). The Southeast Region accounts for about 14,3% or nearly 141,2 thousand hectares of the total number.

The state owned forests, at the level of the Southeast Region represents 94,87% of the total area. Private forests account for 5,13% (7.235 ha) of the total forest area. The private forests are a

61

© OECD/IEA, *2012+, IEA Online Database: Energy Balances of Non-OECD and OECD Countries and Energy Statistics of Non-OECD and OECD Countries 62

Energy balance of the Republic of Macedonia in the period from 2013 to 2017, Official Gazette no. 170/2012

- 87 -

relatively small area, less than 1 ha, scattered as individual or group lots which represent enclaves within the state forest. Out of the total surface under forest, and forest land around 8% is not regulated (without commercial bases).

Figure 7.2.1. Forests by type of cultivation

About 71% of the area consists of low-stem and degraded forests, which is only 37% of the wood mass. Another important feature of Macedonia are the large areas with low forests and barren land, as well as land without forest cover suitable for forestation. Taking into consideration that by the type of cultivation 71% are low forests that have no technical mass, it is logical to use them for firewood production. Out of the total forest products, firewood accounts for 70 - 75%, but that information cannot be considered accurate as most of the population is supplied with wood from illegal logging that cannot be registered. The total wood cut in Macedonia is shown in Table 7.2.1, while the cut gross - timber by assortments for 2013 is shown in Table 7.2.2.

Table7.2.1. Forest cutting in the Republic of Macedonia63

Year 2009 2010 2011 2012 2013

Total gross weight in thousand m3 906 871 857 779 691

State forests 683 662 658 621 566

63

Statistical Yearbook of the Republic of Macedonia, State Office of Statistics, 2014

Legend:

high forests

low forests

degraded forests and shrubs

forest crops over 50 ha

forest crops to 50 ha

forestation area

plant nursery

State border

River

Lake Ratio

- 88 -

Private forests 223 209 199 158 125

Technical wood 138 123 143 127 114

Firewood 666 675 636 579 536

Waste 102 73 78 73 41

Table7.2.2. Cut gross-timber in m3, by assortments for 2013

64

Technical wood Firewood Waste

Republic of Macedonia 114.135 536.424 41.412

State forests 103.210 428.031 35.384

Private forests 10.925 108.393 6.028

Southeast Region 23.929 73.429 8.858

Biomass Waste: Waste biomass includes:

- deforestation waste,

- wood processing waste,

- agriculture waste,

- livestock breeding residues,

- industrial waste

- municipal solid waste There are a number of assessment studies of the waste biomass in the Republic of Macedonia65 have been prepare, among which there are some quite comprehensive and good quality ones66, but still it can be said that there is still lack of reliable data assessing the economic cost-effective potential, nor there is sufficient experience in the performance of specific plants.

Potential Biomass Waste from Wood and Agriculture

Macedonia has experience in the use of biomass waste from deforestation, wood processing, and agriculture, especially in using it for production of heat. However, this kind of biomass waste is suitable to use only in plants for combined production of heat and electricity.

Deforestation waste. During planned deforestation, forest tree pruning, forest tree cutting for road construction and cutting of burned and diseased trees produce waste in the form of branches, parts of trees, barks, roots, woodchips etc. According to table 7.2.1., the waste from woodcutting is on average about 70 thousand m3 per year which on average covers 9.5% of the total cut67. Some studies68 have estimated that the residue from the cutting of forests in Macedonia amounts to about 14% of the total cutting or about 120 thousand m3. They also point out that it is a result of obsolete

64

Statistical Review "Forestry 2013", State Office of Statistics, 2014 65

Biomass availability study for Macedonia, A.B. van der Hem, SENTER project PSO99/MA/2/2, February 2001 66

Energy from biomass Slave Armenski, Skopje, 2009 67

Statistical Yearbook of the Republic of Macedonia, 2014 68

Biomass availability study for Macedonia, A.B. van der Hem, SENTER project PSO99/MA/2/2, February 2001

- 89 -

machinery used for cutting and deliberately leaving bigger waste for further unrecorded use and that, by using more modern techniques of cutting, waste should normally not exceed 7% of the total cut or about 60 thousand m3 per year. This makes it 39 thousand tons per year. A very small part of this waste, 40 - 100 m3 annually, is used by forest companies to heat the premises while the rest is left in the woods. Even in more developed European countries, where companies that perform the cutting are legally obliged to fully remove the waste, it is not completely complied with, due to the high costs of waste removal in the hardly accessible mountainous areas. Assuming that in Macedonia around 40% of the forest waste can be used in smaller plants for combined production of heat and power that would be set in the nearest location with heat consumption. This would result with 24 thousand m3 per year, i.e. nearly 15,6 thousand tons per year.

In 2013, the waste level of the Southeast Region, had a share of 8,3% of the total wood cutting or 8.858 m3. Under the same assumptions, it is possible to use about 40% of forest waste into smaller plants for combined heat and power production that would be set in the nearest location with heat consumption. In such case, on regional level this would make 3.543 m3 per year, or near 2,3 thousand tons per year.

Wood processing waste. In Macedonia, about 130 thousand m3 of industrial wood is processed per year (Table 5.2.2). There are over 100 companies dealing with wood processing. Most of them are small sawmills. A number of major companies deal only with production of carpentry, furniture; and a certain number of companies deal with primary and secondary wood processing. The waste generated during wood processing consists of woodchips, sawdust, bark, cut-outs from log ends, splinters, fine wood dust etc.

It is estimated69 that larger companies, dealing with primary and secondary wood processing, process about 40 thousand m3 technical wood annually. Consequently, they produce about 15 thousand m3 of wood waste. Most of it is used in their own boilers to produce steam and for heating up the premises. Some of the dust is used for production of briquettes and pallets. This quantity of biomass has already been included in the statistics of consumption of biomass combustion. However, some of the boilers are very old and can be expected to be replaced with new plants for combined heat and power. Assuming this percentage amounts to 40%, the available biomass for this purpose is around 6 thousand m3 of wood waste per year.

Smaller companies, most of them sawmills, process about 90 thousand m3 technical wood and produce about 45 thousand m3 of wood waste per year. This wood waste is not used generally. The problem is that these companies mostly do not need heat. If 30% of this waste was used in small plants, it would make 13 thousand m3 of wood waste per year.

The total potential of wood processing waste that could economically be used for combined generation of heat and electricity is estimated at 19 thousand m3 or about 12,4 thousand tons of wood waste per year.

Under the same assumptions, in 2013, in the Southeast Region 23.929 m3 technical wood was processed with wood waste of about 12 thousand tons. Under the assumption of using 30% of this waste in small plants, it makes 3.600 m3 or about 2.340 tons of wood waste per year.

69

Biomass availability study for Macedonia, A.B. van der Hem, SENTER project PSO99/MA/2/2, February 2001

- 90 -

Agricultural waste. The agricultural waste in Macedonia is important for combined generation of heat and electricity: vine canes, branches of fruit trees, cereal and industrial crops, and waste from food processing. Some of is used for heat production.

Vineyards cover an area of about 4.600 ha in the Southeast Region. With an average annual production of 3 tons of vine canes per hectare70 obtained in vine pruning, it makes about 14 thousand tons of waste biomass. The practical availability of vine canes is estimated at around 5,5 thousand tons per year.

The total area under fruit crops in the Southeast Region is estimated at 5,5 thousand hectares. With the production of at least one ton of waste per hectare, it is makes at least 6 thousand tons of waste biomass, annually. Part of this biomass is used, and can potentially be used in plants for cogeneration of heat and electricity in the amount of 1,5 thousand tons per year.

In Macedonia there is significant production of cereal straw (about 350 thousand tons per year), but it is economically more cost-effective to use it as a fertilizer, animal feed and cellulose and therefore it is not available for energy purposes. According to the statistical data71, the total production of straw is used for agricultural purposes.

The total biomass waste from agriculture that can economically be used for cogeneration of electricity and heat in the Southeast Region is estimated at nearly 7 thousand tons per year.

Summary. On the basis of the presented facts we can conclude that in the Southeast Region, only a very small amount of biomass waste is used. Most commonly used is the one received mainly by wood processing, and the forest waste. However, there is a very large portion of unused biomass waste from forest-cutting, wood processing and agriculture. When you collect the unused biomass whose use can be economically feasible for cogeneration of heat and power, you get the data presented in Table 7.2.3.

Table7.2.3. Waste biomass from deforestation, wood processing and agriculture that can economically be used for cogeneration of electricity and heat in the Southeast Region

Type of waste biomass thousand tons per year

Deforestation waste 2.3

Wood processing waste 2.3

Agriculture waste 7.0

Total 11.6

The total biomass waste of 12 thousand tons received from deforestation, wood processing and agriculture, in plants for cogeneration of heat and electricity can generate around 9-13 GWh of

70

The data of 5-6 t/ha used for Macedonia is considered unrealistic by a large number of experts (Biomass availability study for Macedonia, AB van der Hem, SENTER project PSO99/MA/2/2, February 2001) 71

Statistical Review: agriculture, farming, orchards and vineyards in 2013, State Office of Statistics of the Republic of Macedonia, Skopje, May 2014

- 91 -

electricity and 22-33 GWh of heat, depending on the needs and the available consumption of thermal energy.

According to the Decree72 passed by the Government, the thermoelectric plants using biomass as fuel can acquire the status of preferential producer if its installed power capacity is lower or equal to 3 MW. The highest percentage of participation of fossil fuels in the total energy value of the fuel consumed is 30%. Preferential tariffs for electricity generated by thermoelectric plants using biomass depend on the installed capacity of the power plant and the participation of fossil fuels in the total energy value of the fuel, such as:

• If the share of fossil fuels of the total energy value of fuel is less than or equal to 15%, preferential tariffs for electricity generated by thermo plants using biomass is 15 €/kWh;

• If the percentage share of the fossil fuels in the total energy value of the fuel consumed is greater than 15% and lower or equal to 30%, the reduced preferential tariffs are calculated according to the following formula:

PT = PT0 × (1,15 - p × 0,01) × 0,01

where:

- PT is reduced preferential tariff

- PT0 is the tariff in the preceding paragraph (15 Euro cents), depending on the installed capacity of the power plant,

- p is designated percentage of participation of fossil fuels, determined by the Ministry of Economy.

The preferential producer has the right to use preferential tariffs for electricity produced by power plants using biomass as engine fuel in a period of 15 years.

The total installed capacity of the preferential producers of electricity using biomass as engine fuel is limited by a Decision taken by the Government of the Republic of Macedonia73 to the total installed capacity of 10 MW.

The potential of biomass waste is significant and it can optimally be used in two ways: by direct combustion or by pelletizing and briquetting. Due to the large number of factors affecting the economic viability of the use of energy from different sources, it is difficult to give an accurate assessment of which energy source is best in certain conditions. It must be emphasized that in the Republic of Macedonia there has been some previous experience of using specific types of biomass for energy needs through its combustion in boilers of several industrial capacities: wood and wood waste, rice paddy (“Zhito-Oriz” - Kochani) and vine canes (“Lozar” - Veles) which have not been operational for quite some time.

Potential of Livestock Breeding Residues

Livestock breeding residues. The waste mass contained in livestock manure is used for energy needs primarily through biogas produced by anaerobic fermentation. The biogas consists of methane and carbon dioxide in a ratio 2:1, and small amounts of NH3 and H2S. In the Southeast Region, the total waste mass of barn breeding livestock and poultry is estimated at 323 thousand tons per year. It can make a total of about 8,3 thousand m3 biogas per year with a total energy of about 55 GWh.

72

Decree on preferential tariffs for electricity (Official Gazette no. 56/13) 73

Decision on the total installed capacity of preferential producers of electricity generated from each renewable source of energy (Official Gazette no. 56/13)

- 92 -

However, the experience with the economically viable use of biogas in the region is quite modest and the real usable potential does not exceed 25% of the total potential. It is estimated that it can generate less than 5 GWh of electricity at maximum.

According to the Decree74 passed by the Government, the thermoelectric plants using biogas as engine fuel, have highest percentage of participation of fossil fuels in the total energy value of the consumed fuel of 30%. The preferential tariffs for electricity generated and delivered by thermoelectric plants using biogas as engine fuel depend on the installed capacity of the power plant and the participation of fossil fuels in the total energy value of the fuel, as follows:

• If the percentage share of fossil fuels in the total energy value of the fuel is lower or equal to 10%, the preferential tariffs for electricity generated and delivered by thermoelectric plants using biogas is 18 Euro cents/kWh;

• If the percentage share of fossil fuels in the total energy value of the fuel consumed is greater than 10% and lower or equal to 20%, the preferential reduced tariffs are calculated according to the following formula:

PT = PT0 × (1,10 - p × 0,01) × 0,01

where:

- PT is reduced preferential tariff

- PT0 is the tariff in the preceding paragraph (18 Euro cents), depending on the installed capacity of the power plant,

- P is designated percentage of participation of fossil fuels, established by the Ministry of Economy.

The preferential producer has the right to use preferential tariffs for electricity produced by power plants that use biogas as engine fuel for a period of 15 years.

The total installed capacity of the preferential producers of electricity using biogas as engine fuel is limited by a Decision passed by the Government of the Republic of Macedonia75 to the total installed capacity of 6 MW.

Due to the relatively high investment costs for the construction of plants for anaerobic fermentation of livestock breeding residues, particularly with small family farms, and because of the large diversification of livestock, the energy potential of livestock breeding residues is considered insignificant.

Municipal Solid Waste Potential

Municipal solid waste. The term municipal solid waste implies waste collected from households, along with the maintenance of public hygiene and collection of park waste, commercial and institutional waste, construction and industrial waste that is similar to household waste. Municipal solid waste (MSW) can be treated as an energy resource if it contains organic substances.

The solid waste is deposited in many landfills in Macedonia. Among them, only Drisla, serving the Skopje Region is well managed. Regional integrated management of municipal solid waste is planned

74


Decision on the total installed capacity of preferential producers of electricity generated from each renewable source of energy (Official Gazette no. 56/13)

- 93 -

to be established in the upcoming period. Seven regional landfills76 are planned for the territory of Macedonia. In the territory of the Municipality of Vasilevo, in Dobrashinci, a regional landfill is planned to serve all 10 municipalities in the Southeast Region77. The total amount of municipal solid waste in Macedonia reaches 700 thousand tons per year, of whicharound 200 thousand tons belong to the regional landfill Drisla, and the other regional landfills make 50 - 100 thousand tons. The lower calorific power of municipal waste in Macedonia is estimated at 7.860 kJ/kg78. In the estimated value, paper and plastic participate in the total waste weight with 24% and 6% respectively. Depending on the variant of recycling that will be realized, the potential of municipal solid waste in Macedonia is 500 - 1.500 GWh per year. If it is used only to produce electricity that would mean production of 200 - 500 GWh per year, supposedly the full potential is used in Macedonia. According to the optimistic scenario, up to 20 GWh of electricity, generated from municipal solid waste in Macedonia can be planned per year by 2020. Landfills are away from heat consumption, and if plants are constructed near cities, it would be subject to extremely high costs for environmental protection. Due to the small amounts of solid waste collected by the municipalities, in energy terms, the analysis below shows the energy potential of MSW for the entire Southeast Region.

According to the aforementioned Study79, the average amount of municipal waste generated in the region in total, is 348 kg per capita per year, where the average for urban settlements is 449, and for rural ones 218 kg per capita, per year. These figures are higher than the national average statistics of 300 kg per capita, per year for urban and 200 kg per capita of rural settlements80; the reason for this is considered to be the imprecision in the monitoring of the waste accumulation, i.e. waste collection. The total amount of municipal solid waste collected in the region is 25.954 tons per year. Table 7.2.4. shows the annual volume and unit rates of municipal solid waste collection (MSW) in the Southeast region in 2007.

Table 7.2.4. Annual volume and individual rates of solid waste collection for the Southeast Region

Municipality Serviced population Waste (t/year) t/capita/year кg/capita/year

Southeast Region 74.635 25.954 0,348 0,953

Bogdanci 5.700 1.150 0,202 0,553

Vasilevo 1.761 300 0,170 0,467

Valandovo 3.522 1.000 0,284 0,778

Vasilevo 2.079 416 0,200 0,548

Gevgelija 13.466 6.440 0,478 1,310

Dojran 1.742 538 0,309 0,846

Konche 375 100 0,267 0,731

Novo Selo 4.248 850 0,200 0,548

76

National strategy for environmental investments (2009-2013), Ministry of Environment and Physical Planning of the Republic of Macedonia, March 2009 77

Study on the award of regional integrated solid waste management concession in South East Macedonia, Ministry of Environment and Physical Planning, Skopje, February 2010 78

Slave Armenski, Energy from urban solid waste (in renewable energy sources in Macedonia, K. Popovski and others) MAGA, Skopje, 2006 79

Study on the award of regional integrated solid waste management concession in South East Macedonia, Ministry of Environment and Physical Planning, Skopje, February 2010 80

Calculated as an average based on the information from a variety of studies on other regions of the country

- 94 -

Strumica 29.264 12.260 0,419 1,148

Radovish 12.479 2.900 0,232 0,637

RURAL SETTLEMENTS Average 0,218 0,598

URBAN SETTLEMENTS Average 0,449 1,229

The first step will be the collection of landfill gas. The setting of the system for collection of landfill gas as well as the efficiency of its use varies depending on the location. For this type of analysis, an important factor is the efficiency of the system for collection of landfill gas. According to the US EPA (United States Environment Protection Agency) the efficiency of a system for collection of landfill gas is 50 - 90%, and by applying good technology it achieves 75 - 85%. For this analysis the adopted efficiency is 80%. The thermal power of landfill gas varies within 4.1-6.2 kWh/m3 depending on the source. It is adopted 4.7 kWh/m3. The collection efficiency of 80 %, thermal power of 4.7 kWh/m3 of one kilogram MSW should generate 0.18 m3 of landfill gas (0.23 m3 x 0.80 = 0.18 m3) or 0.85 kWh (0.14 m3 x 4.7 kWh/m3) during the decomposition of municipal solid waste (20 - 25 years). The value of the theoretical maximum would be 0.3 m3 of landfill gas from kilogram waste (0.38 m3 x 0.80 = 0.3 m3 or 1.4 kWh (0.3 m3 x 4.7 kWh/m3 = 1.4 kWh) during the biological decomposition of the waste.81

The use of landfill gas as a fuel for internal combustion engines is a widespread procedure for its energy valorization. When the gas flow is expressed in m3/day, the energy content is expressed in kWh/m3, lower thermal power in kWh, using the aforementioned data this can be shown as:

If we accept that the amount of landfill gas generated during the decomposition of waste for a period of 20 years, 0.23 m3/kg and we assume that the waste collection system of landfill gas has an efficiency of 80%, we get that 1 kg enerated waste:

0.23 m3/kg x 0.80 = 0.184 m3/kg for 20 years

that is a ton of MSW over 20 years will generate:

0.184 m3/kg x 1.000 kg = 184 m3 landfill gas

If we count with the amount of 42.207 t MSW that would be deposited in the regional landfill Dobrashinci annually (projection for 202082), of which 10% is the amount of waste that will not generate landfill gas, we get that 20 years of waste disposal would have the potential to generate landfill gas of:

184 m3 x 42.207 t x 0.90 x 20 year = 139.789.584 m3 for 20 years.

If through quality control of the gas for internal combustion engines they get available 80%, the amount obtained will be:

139.789.584 m3 x 0.80 = 111.831.667 m3

within a period of 20 years, whose energy potential, if it is considered the heat value of landfill gas of 4.7 kWh/m3, is as follows:

111.831.667 m3 x 4.7 kWh/m3 = 525.608.835 kWh

81

Kostovski H., potential for use of municipal solid waste for energy production in the Bitola region, master's thesis, Technical Faculty - Bitola March 2012 82

Pre-feasibility assess of the options for establishing an integrated system of solid waste management in the Southeast Region of Macedonia, final report, Regional Environmental Center, October 2008

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which is the total energy potential of the deposited waste for a period of 20 years.

The quantity of potentially generated landfill gas for one hour is:

111.831.667 m3/20 years/ 365 days/24 h = 638 m3/h of landfill gas

which can be used as fuel for internal combustion engines.

If we consider the degree of utilization of the engine of 0,40 and thermal value of landfill gas of 4,7 kW/m3 we get that the potential capacity of a power plant would be:

638 m3/h x 0.40 x 4.7 kWh/m3 = 1.200 kW.

With an assumed load factor of 2.000 h/year83, the production of electricity from landfill gas would be 2.400 MWh/yr. According to the electricity balance in 201284, it is enough to cover the annual electricity consumption of 370 households.

Industrial waste. Beside the waste of wood processing industry, and the waste disposed as municipal solid waste, which are previously being processed separately, as well as the waste recycled in the process of industrial production, there is another waste suitable for energy production. In most cases, municipal public enterprises perform only collection and transport of waste produced by industrial facilities that is compact and a "solvable task" for them. The bulky industrial solid waste is deposited in special landfills (e.g. mining waste from the Buchim mine, near Radovish), or it is collected, transported and disposed in special municipal or micro regional "industrial landfills" or common industrial landfills by individual industrial capacities. In the region there are two large "industrial landfills", one near Strumica and the other near Gevgelija; the two landfills are operated by competent public companies and are used for the disposal of construction debris85.

This potential has not been explored thoroughly, but it is estimated that it can contribute significantly to the total energy production from biomass.

7.3. Review on the Potential of Geothermal Energy

The geothermal energy as a renewable energy source has a long tradition in the energy sector of Macedonia. Macedonia was one of the leading countries in geothermal energy in the second half of the last century. However, today with the lack of new investments in the sector, the use of geothermal energy for electricity production is limited and is mainly concentrated on heating in agriculture, greenhouses, and spas.

In recent years there have not been investments in any research or development of new projects. As a result, the utilization of geothermal energy has significantly declined in the last few years. The 21 ktoe per year in 2001 were reduced to 9 ktoe (400 TJ; 110 GWh) in 2012. In the total use of primary energy, the geothermal energy accounts for approximately 0.4%, and in the final energy consumption by 0.5%. There is significant use of geothermal energy for balneology.

The territory of the Republic of Macedonia belongs to the Alpine-Himalayan zone, with subzones with no present volcanic activity. For now, there are 18 known geothermal fields, with more than 50

83

Strategy for the use of renewable energy sources in the Republic of Macedonia, MANU, Skopje, June 2010 84

Electricity Balance, by months, 2012, State Statistical Office of the Republic of Macedonia, November 2013 85

Study on the award of regional integrated solid waste management concession in South East Macedonia, Ministry of Environment and Physical Planning, Skopje, February 2010

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geothermal springs and boreholes. The total outflow is about 1000 l/sec, with temperature of 20 -78°C. The warm waters are mainly of hydrocarbon nature, considering their dominant anionic and mixed structure with equal presence of sodium, calcium and magnesium. The dissolved minerals are in the range of 0,5 to 3,7 g/l.

The locations of the main geothermal fields in Eastern and Southeast Macedonia and their hydrothermal systems that are in use are shown in Figure 7.3.1.

Figure 7.3.1. Main geothermal fields in the East and Southeast region

Strumica Valley. Summing up the results of the available data, so far, it can be concluded that the research process has not been fully completed in Strumica Valley. Thereby, the energy potential of the available hydrothermal resources has not been fully evaluated.

So far, in the whole Strumica Valley, it has been proven, but not fully exploited, a total of 108,5 l/sec, while, at the moment, the real exploitation in the area of Bansko is 80,0 l/sec, and 5,0 l/sec in the area of Hamzali (Staro Baldovci). The total estimated reserves, with the preparation of detailed research projects, are expected to reach up to 135 l/sec in future.

The maximum needs for heating of the current users is about 7,5 MW and almost 91% are supplied with geothermal water from the geothermal system Bansko. The theoretically maximum available geothermal power of the hydro geothermal system Bansko at this time is 10,3 MW, whereas the needs of other potential users is about 22 MW. Additional investments in research, are expected to discover additional capacities. It is projected recovery (reinjection) of part of the used geothermal water through existing wells in the Bansko Spa, preceded by elimination of the colloidal materials accumulated in the water. There are also private initiatives for new wells.

The aforementioned facts impose necessary planning of new testing and exploitation of wells in the central part of Strumica Valley, near Monospitovo or in the immediate area of the foothills of Belasica, i.e. the area of Kuklish-Konjarevo-Bansko, which have hydrothermal features of the terrain.

L E G E N D :

Geothermal fields in use

Geothermal fields for further researcfh

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Gevgelija Valley. The hydro geothermal system in Gevgelija Valley consists of two geothermal fields: Negorski Spa and the locality Smokvica. These two geothermal fields are located at a distance of a few kilometers, but there is no hydraulic connection between them. The temperatures of the geothermal water in Smokvica are 45 - 68°C, while in Negorski Spa 32 - 54°C. According to the chemical composition of the water of both spas in this geothermal system, and based on the calculated geo-thermometers, the expected temperatures can range from 75 - 100oC in the hydro geothermal tank.

In the terrain of the wider area of Gevgelija Valley, there is an increased number of thermal water occurrences. They occur in the vicinity of Gorničet Village with a water temperature of 21,7 to 25,5°C. Negorski Spa has hyper thermal springs with water temperatures of 41,6 to 42,7°C. There are also hyper thermal springs near the Smokvica Village with water temperature of 67°C. In the area of the Smokvica Village, near Vardar River, at a distance of about 300 - 500 m in the alluvial terrace there are multiple sources detected, which appear on the surface of the ground with a temperature of 46 to 50°C, when the groundwater level is quite high and almost reaches the surface of the ground. The thermo mineral waters which occur between the Smokvica and Grchishte villages, can be observed as three separate localities.

The geothermal system Smokvica is one of the largest geothermal systems in Macedonia for heating a greenhouse complex of 22,5 ha, with geothermal water from the Smokvica site with installed capacity of 15 MW, put into operation 30 years ago (1983/84). Beside the greenhouse complex, there are about 10 ha under polytunnels that are now out of use. The unsuccessful privatization lead to deterioration of the complex, and also to cease of operation of the large exploitation wells. The initial idea that this system should directly connect the source with the heating installation in the greenhouses without any prior preparation of the geothermal water caused intense corrosion and depositing of sediments in the pipes which lead to complete destruction of the heating installation formed of steel registers. This problem with the pipeline in the length of 6 km to the greenhouse complex has not been resolved yet. The system Negorski Spa as part of the geothermal system of Gevgelija, where geothermal water is used to heat the premises of the hotel, and the balneal complex is fully reconstructed and meets the needs of the geothermal energy.

Hydro-geothermal system Raklesh – Radovish. The hydro geothermal system in the Village of Raklesh near Radovish has a reservoir represented by Paleozoic marbles whose expansion is estimated at 5 km2, and thickness of 50 m. The system discharge is executed through an investigation borehole with a yield of 2 l/sec and water temperature of 25°C.

The hydro-geothermal system is not sufficiently explored in the future and therefore it is necessary to make detailed projects for further exploration of this area as a significant geothermal resource of this region in the Municipality of Radovish.

Hydro-geothermal system Toplec - Asansko Pole – Dojran. The hydro-geothermal potential of Dojran and its wider area is mainly associated with increased water temperatures registered in the localities of Toplec in the immediate area of Nov Dojran and the locality of Deribash near Star Dojran.

The hydro geothermal system Toplec, located in the immediate vicinity of Dojran and Dojran lake, is drained through the natural source Toplec and the several hydro-geological and investigation boreholes made in the period of 1986-1997, as well as the exploitation well Deribash near Star Dojran.

The surface occurrence of thermal water in the region of Nov Dojran has been registered in the natural source which is located approximately 2 to 2,5 km from Nov Dojran, on the right side of the

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Valandovo-Dojran road. It is a source of vuggy-cavernous character. Due to the warm water of this spring, the locality in which it occurs is called Toplec. The water temperature in the Toplec source is 25°C.

The karst type of wells is connected to a marble series where the groundwater registered in them is with increased temperatures ranging from 18 - 20°C in the investigative-exploitation borehole HIB-1 and in the hydro geological investigative borehole HIB-2 25 - 28,2°C. The yield, i.e. the capacity of the warm waters of the investigative-exploitation borehole HIB-2 is Q = 16 - 18 l/sec. Since Toplec locality has not been sufficiently explored yet, a further investigation is required thorough 2 - 3 investigative boreholes with estimated depth of 250 - 300 m and geophysical electrical measurements with orientation of total length of 3.000 m.

Summary. The total balance of the geothermal exploitation reserves in the Southeast Macedonia (as of 2006) is 395 l/sec, registered on 5 major sites (Table No. 7.3.1.). The amount of geothermal energy contained in hydro geothermal systems is determined by a number of methods used for determining the geothermal potential, by taking into consideration a number of hydrological, geological and geothermal parameters, more or less defined or taken with certain approximations.

Table7.3.1. Balance of hydro geothermal resources in Southeast Macedonia

№ Hydro geothermal

system Locality

Tempe-rature

(C)

Flow

(l/sec)

Exploatition reserves (l/sec)

Thermal power (MWt)

1 Strumica Valley Bansko 70 82 50 19.51

2 Strumica Valley

Staro Baldovci

29 5 5 0.60

3 Gevgelija Valley Negorci 50 100 80 16.74

4 Gevgelija Valley Smokvica 65 180 120 32.65

5 Dojran Toplec 28 28 10 1.17

6 Radovish Raklesh 26 5 2 0.22

Вкупно 400 267 70.89

*Note: (Situation in 2006)

The Table 7.3.1. presents the valorization of the available heating power of all exploitation geothermal resources in Southeast Macedonia. The total obtained maximum available power was 70,89 MW, or an annual production capacity of 621 GWh/year.

The use of thermal waters in the country consists of several geothermal projects and a number of spas. All of them have been completed and have been operational since the 1980s.

The utilization of this potential sources for energy needs is at a local level. Having in mind the relatively low temperature (the highest is 78°C in Kochani Region) is the energy is used exclusively to meet the heating needs. It is also predominantly used to heat the greenhouse complexes. A minimal amount of energy is used to heat up facilities of the hotel complex “Tsar Samuil”, with lodging facilities in the surrounding area of Bansko Village, near Strumica, and the facilities of Negorski Spa near Gevgelija.

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The so far, explored geothermal potential shows that Macedonia has no sources that provide for the production of electricity. In order for the project to be economically viable there needs to be a temperature of geothermal water at 120°C. Some studies indicate that in depths of about 5.000 m it can be found steam with temperatures higher than 100°C. However, the cost of drilling deep boreholes is over a million dollars per hole. This amount cannot be covered by the existing prices of electricity produced from a potential power plant.

The potential use of geothermal energy for heating up the greenhouses should be in correlation with the development of agriculture and the need for greenhouses. To achieve this goal, apart from the already conducted activities, additional activities are necessary by the Local Self-Government and by the Government.

The effective valorization of a geothermal resource is possible only if you have data for the composition of its users. Each resource requires particular temperature range and possibilities for composing a cascade chain for optimal use of the available temperature level.

7.4. Review on the Potential of Solar Energy

The geographical position and climate in the Republic of Macedonia offer a very good prospect for the use of solar energy. According to the radiation measurements of the Hydro-meteorological Service, the annual average daily radiation varies between 3,4 kWh/m2 in the Northern part of the country (Skopje) and 4,2 kWh/m2 in the Southwest (Bitola). The total annual solar radiation varies from a minimum of 1.250 kWh/m2 in the North up to 1.530 kWh/m2 in the Southwest leading to an average annual solar radiation of 1.385 kWh/m2 (Figure 7.4.1).

Figure 7.4.1. Annual global solar radiation in Macedonia on optimally sloped photovoltaic panels

Annual amount of global insolation in kW/m2

Annual generation of electricity of a 1kW system

with EC (efficiency coefficient) of 0,75 kWh/kW

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Climate characteristics - the high intensity of solar radiation and its duration, the temperature, the humidity, provide favorable conditions for a successful development of solar energy. The continental climate with hot and dry summers makes Macedonia a country with high potential for use of solar energy, which is higher than the average European countries.

Thermal solar systems: Solar energy is used at a symbolic level for water heating in households. The total number of installed small solar thermal systems in Macedonia is estimated at 8 to 10 thousand. If we assume that in the Southeast Region, which has 173 thousand inhabitants and about 50 thousand households, in the long term 25% of them would install solar thermal systems with an area of 2,2 m2 and 600 kWh/m2, the annual generation of energy from the installed systems in local conditions86 would have the following value:

(12.500 systems) x (2,2 m2) x (600 kWh/m2) = 16.5 GWh

It is estimated that 25% of the household electricity is consumed for water heating. The implementation of solar heating systems could significantly reduce the consumption of electricity, thus reducing the emission of greenhouse gases.

Due to the low cost of electricity, the period of return on investment in solar thermal systems is very long (around 10 years) and therefore it is unattractive to households. Thanks to several activities for providing subsidies to cover part of the expenses for the installment of solar thermal systems, organized by the Ministry of Economy, the number of installed systems has increased significantly. Nevertheless, since there is no Registry of Installed Solar Thermal Systems, it is not possible to determine their number. Also, without a greater governmental involvement in providing subsidies for the installment of such systems, we cannot expect that the number of installed solar thermal systems will increase.

Photovoltaic systems: Despite the advantages of the solar energy which Macedonia has, as a country in the South of Europe, with poor domestic energy resources, but with a long tradition of theoretical and experimental research in the field of photovoltaic systems, the practical application of these systems took off only in the recent years.

In the territory of the Southeast Region, a total of 14 preferential electricity producers from RES - photovoltaic power plants (PPP) are registered with a total installed capacity of 2.535,76 kW. Of these, two PPPs with a total installed capacity of 1.988,42 kW belong to the group of plants with capacity > 50 kW a ≤ 1 MW, the remaining 12 PVPPs belong to the group of plants with capacity ≤ 50 kW.

According to the Decree87 passed by the Government, a photovoltaic power plant can acquire the status of a preferential producer if the installed capacity of the plant is lower or equal to 1 MW. The preferential tariffs for electricity generated and delivered by a PVPP, depending on the installed capacity, are:

86

Investment Options in the Energy Sector, Component 6, Part D: Report on solar energy, biomass and wind energy, Phare Programme, January 2003 87

Decree on preferential tariffs for electricity (Official Gazette no. 56/13)

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Table 7.4.1. Preferential tariffs for electricity generated and delivered by a PVPP, depending on the installed capacity

Installed capacity of a PVPP Preferential tariff (Euro cents/kWh)

≤ 50 kW 16

> 50 kW 12

A preferential producer can use preferential tariffs for electricity generated from photovoltaic power plants over a period of 15 years.

The total installed capacity of preferential electricity producers from photovoltaic power plants is limited by a governmental decision88 as follows:

- the total installed capacity to which preferential tariffs for purchasing electricity generated by photovoltaic power plants with installed capacity of lower or equal to 50 kW will apply, should be 4 MW,

- the total installed capacity to which preferential tariffs for purchasing electricity generated from photovoltaic power plants with installed capacity greater than 50 kW but less than or equal to 1 MW will apply, should not exceed 14 MW.

At the time of preparation of this study, the upper limits of the above mentioned decision had already been met; therefore installations of this type are not expected to happen in near future.

7.5. Review on the Potential of Wind Energy

The wind energy has had the highest growth rate of all renewable sources in the world in the last two decades. The construction of wind turbines or wind power plants (WPP) in near future would have positive implications for the electricity sector in Macedonia, as well as for the local economy. In 2005, at the initiative of the JSC "Power Plants of Macedonia", a Preliminary Wind Atlas of the Republic of Macedonia89 was prepared.

The Atlas was prepared by the US company, AWS Truewind LLC, using a MesoMap system, a numerical weather report model. The main goal was to identify, select and choose regions and locations that possess sufficient energy potential where measuring stations will be placed to determine the real possibilities for the implementation of projects. The Atlas identified that the best wind resources in Macedonia are in the mountain ridges, whereas the plains and the valleys have significantly lower average wind speed. However, there is a proof that even the lower altitude have potential on the hills along the Vardar River, the area between Kavadarci and Gevgelija, in the Southeast Macedonia, where the assumed average wind speed reaches 7 - 7,5 m/s of 500 - 800 m. altitude. The Atlas identified 20 potential locations throughout the country, with the potential for installing plants with a capacity of 25 MW to 33 MW, shown in Figure 7.5.1. Out of these 20 sites, only 3 are at an altitude of 1.000 meters, and the rest are located in the mountainous parts of the

88

Decision on the total installed capacity of preferential producers of electricity generated from each renewable source of energy (Official Gazette no. 56/13) 89

Wind Energy Resource Atlas and Site Screening of the Republic of Macedonia, AWSTruewind LLC, USA, june 2005

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country, of which 6 locations are at an altitude of over 2000 meters, which is certainly not favorable for WPP construction.

Figure 7.5.1. Map of the most suitable locations for WPP construction identified by the Preliminary Wind Atlas for the Republic of Macedonia

90

Following the Atlas, the most suitable locations for WPP construction were selected. Out of these, at four selected locations91 (two of them are at the territory of the Southeast Region) there have been undergoing measurements of wind speed, direction, and other meteorological parameters since 2006. Preparations for conducting measurements of additional five locations are in progress.

The selected locations, where the measuring stations are installed, are shown in Figure 7.5.2 .:

- Ranavec (Bogdanci) at the alt of 472 m;

- Shashavarlija (Shtip) at the alt of 857 m;

- Bogoslovec (Sveti Nikole) at the alt of 733 m and

- Flora (Kozhuf) at the alt of 1.453 m

90

Wind Energy Resource Atlas and Site Screening of the Republic of Macedonia, AWS Truewind LLC, USA, June 2005 91

Wind Farm – pilot project, JSC “Power Plants of Macedonia”, Skopje 2012

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Figure7.5.2. Map of 4 locations with installed measuring devices

The Southeast Region is the most favourable part of Macedonia for electricity generation by harnessing wind energy. Beside the already completed Wind Park - WP “Bogdanci” at Ranavec (currently the first phase of the project has been completed) with installed capacity of 36,8 MW and a projected annual electricity generation of 90 GWh (after the implementation of the second phase a total of 50.6 MW, and an annual production of around 120 GWh), as one of the most promising locations according to the Study92. Another favourable location according to the measurements of the parameters of the wind, is also the location of Flora at Kozhuf Mountain (ref. no. 12 in Figure 7.5.1). The projected installed capacity of this location is within 20 MW to 30 MW.

In Gevgelija, in the vicinity of the Davidovo Village, another potential location for the construction of WPPs is identified (ref. No. 7 in Figure 5.5.3), also with a projected installed capacity of 20 MW to 30 MW. Since this site belongs to the second group of priority locations, it is necessary to install a measurement station to determine its real energy potential.

The great potential of this part of the region has recently been recognized by the Turkish company “NeSa Energy”. The company is interested in investing in energy facility of this kind in the municipalities of Bogdanci and Dojran, for which a Notice of Intention to carry out the project93 has already been submitted to the local governments. The installed capacity of the WP “Vardar Project” is 50 MW and the latter is planned to be built at a location in the Northeast of Bogdanci, over the artificial accumulation “Paljurci”. It is expected that this wind park will have annual electricity generation in the range of 120 GWh.

92

Wind Energy Resource Atlas and Site Screening of the Republic of Macedonia, AWS Truewind LLC, USA, June 2005 93

Notice of intention to carry out a project of Wind Park “Vardar Project” with the power of 50 MW in the territory of the Municipality Bogdanci and Dojran, NeSa Energy, January 2013

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According to the Decree94 passed by the Government of the Republic of Macedonia, a wind power plant can acquire the status of a preferential producer if its installed capacity is lower or equal to 50 MW. The preferential tariffs for electricity generated by a WPP is 8,9 Euro cents/kWh.

A preferential producer has the right to use preferential tariffs for electricity generated by wind power over a period of 20 years.

According to the Decision95 adopted by the Government, the total installed capacity of a wind power plant to which preferential tariffs for purchase of electricity apply as of 31.12.2025 should be 150 MW, according to the following timetable:

• The total installed capacity of a wind power plant, to which preferential tariffs for purchase of electricity until 31.12.2016 will apply, should be 65 MW;

• The total installed capacity of a wind power plant, to which preferential tariffs for purchase of electricity until 31.12.2020 will apply, should be 100 MW

• The total installed capacity of a wind power plant, to which preferential tariffs for purchase of electricity until 31.12.2025 will apply, should be 150 MW.

Considering that the first windmill park in Macedonia, WP “Bogdanci”, which has an installed capacity of 36,8 MW in the first stage, and after completion of the second phase its installed capacity should reach 50,6 MW, this means that in the period by the end of 2016 there will be only around 15 MW unused. This means that the possibilities for using this renewable source, through the acquisition of the preferential status by the end of 2016, are significantly reduced.

8. Main barriers to the implementation of projects utilising RES

Below will be listed the remarks and potential barriers for utilising RES in the Southeast Region classified into suitable groups in compliance with the matching specificity.

1. Low feed-in tariffs set by the state

The electricity producers by utilising RES expect a safe return of their investment in the necessary equipment, infrastructure and human resources as well as shorter period of return on investment through contracts for preferential tariff for purchase of electricity generated by ELEM and MEPSO EVN. In practice, for some RES, that period is longer than 25 years and is not attracting much interest from potential investors.

At the time of completion of this study, the total installed capacity of the photovoltaic power plants96 had already been filled in the whole country, hence their construction was halted.

Considering that the whole region is rich in potential energy coming from solar power, it is obvious that the biggest opportunity of the region in terms of amended legislation is to attract domestic and

94


Decision on the total installed capacity of preferential producers of electricity generated from each renewable source of energy (Official Gazette no. 56/13) 96

Press release on the fulfillment of installed capacity for preferential electricity producers from photovoltaic power plants, ERC (Electricity Regulatory Commission), Skopje, July 2013

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foreign investors to invest in PVPPs. Attractive feed-in tariffs will allow a shorter period of return on investment and solid profits in a reasonable period of time. In order to trigger investment boom in this area, it is necessary to amend the existing legislation by shifting the limitations in capacities.

2. Slow and inefficient administration at state and local level

Investors are interested to invest in the region and in well prepared projects, with precisely specified indicators for infrastructure, the potential of the region and country as a whole, with fast administrative procedures for obtaining the necessary documents and permits imposed by legislation and regulations. These preconditions can be fulfilled only by a fully qualified, effective and fast administration which responds effectively and timely to the demands of potential investors. Unfortunately, many subjective difficulties exist in practice when providing the necessary documentation for an investment start up caused by the slow and inefficient administration. Complicated and long administrative procedures for preparing detailed plans (at least 6 months), and long administrative procedures for obtaining building permits for facilities of RES (12 months) and the lack of complete plan documentation deter potential investors. Additional problem for investors is the disagreement with the company EVN in terms of connecting to the power grid.

However, this evaluation is partial and not generalized, focusing on part of the local government administration. Still, receiving a delayed (or no) response to the submitted applications, the transfer of responsibilities and competencies vertically and horizontally, declaring oneself unauthorized, causes anxiety among potential investors and they soon withdraw.

3. The political uncertainty and corruption

In every state, the potential investors require and expect guarantees in case of changing the political party in power, there would be no change in terms of policy support to foreign investors in the implementation of business plans. They also require certain level of security that the fiscal policy will not dramatically change, nor the amount of taxes and other fiscal burdens. The same expectations stand in relation to the possible corruption of the administrative apparatus which significantly hampers the implementation of business plans and sets barriers to quick and effective resolution of administrative duties.

Currently, the regulations, measures, norms and standards in Republic of Macedonia create a good business climate for foreign investors. The consistency of this policy is uncertain when the government changes at a political level, as well as its implementation at the local level, i.e. municipal authorities should show goodwill to attract foreign investors through quick and efficient resolution of administrative responsibilities, control and sanctioning of the administrative staff in terms of potential corruption.

4. Lack of data and research

Investors require information on existing potentials defined in recognized and confirmed feasibility studies, expert assessments and forecasts for the development of RES. Generally, this type of documentation is hard to find for the reason that no relevant researches were made for creating relevant data that will help certainly in receiving an estimation of the cost-effectiveness of investing in RES.

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5. Ad-hoc investment instead of strategic and predictable financing

The development of the energy sector of a country must be planned, with a clearly defined strategy, goals and objectives, defined timetable for the realization of these goals. The implementation of this strategy can only be achieved with active and effective participation of potential investors in financing clear, precisely defined and sustainable projects that will contribute to local economic development, and at the same time will be fully supported by the state through a clear administrative procedure, short deadlines for overcoming administrative barriers, and of course, strong motivation through higher feed-in tariffs for purchase of generated electricity.

Since, there is a strategy for energy development in the Republic of Macedonia to 2030, as well as strategy for utilising RES to 202097, it is necessary to strengthen national mechanisms for stronger intervention of the local government, especially to encourage mayors and employees in local administration to involve themselves more actively in the implementation of these strategic documents.

6. Insufficient knowledge of technical features, capabilities and performance of equipment and systems for RES

Because of the enormous expansion of installing equipment and devices for RES in Europe and the world, the number of manufacturers of the necessary technical equipment and systems constantly grows and develops fast. Competition grows, the cost of equipment reduces, and the technical performance of equipment, devices and systems constantly improves and the level of usage is on the rise. For potential investors, it is important to have professional help from educated people who constantly follow market trends, thus being able to give professional, timely and responsible advice and suggestions for the selection of equipment, its quantity, and the way of transportation, installation, commissioning and the connection to the grid of the Republic of Macedonia. It should conform to the regulations and existing legislation with the capabilities of the local government, i.e. with the level of its development.

9. Project proposals for utilising RES and mechanisms for financing projects in this area in the Republic of Macedonia

This chapter contains project proposals for utilising RES for reducing energy consumption in facilities owned by the municipalities, and will contribute to a drastic reduction of CO2 emissions in the atmosphere and will increase the level of environmental protection.

The project proposals are in accordance with the international regulations and the EU directives which refer to energy efficiency and using renewable energy sources, as well as in accordance with the domestic (national) regulations, laws and by-laws, the Strategy for Energy Development in Macedonia and the Strategy for utilising RES.

The project proposals refer to all types of RES - solar, wind, water, geothermal energy, biomass and biogas and are in accordance with the needs and the opportunities of the municipalities of the

97

Strategy for Energy Development in the Republic of Macedonia for the period of 2008-2020 with a vision to 2030, MANU, Skopje January 2009

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Southeast planning region – Gevgelija, Bogdanci, Dojran, Strumica, Vasilevo, Novo Selo, Bosilevo, Valandovo, Radovish, Konche. The requirements and the opportunities of the already mentioned municipalities emerged from the general analysis of the current situation with available resources – RES on their territories, the level of the current utilization of RES, the potentials, the tradition and other additional factors: the capacity of human resources, financial capabilities, enthusiasm, motivation etc.

The project proposals are shown with the same methodological matrix of two units which will provide an overview of all the important parameters in the project in terms of cost-efficiency if a loan is taken for its implementation and contains the following components: (1) Basic characteristics of the renewable energy source and (2) Financial analysis of the renewable energy source.

1. Basic characteristics of renewable energy source

Technical data: Capacity of the plant, Total efficiency (net) of RES, unexpected pause of the operation of the plant, expected pause due to maintenance, technical lifespan, time of construction.

Financial data: Specific investment, drive costs and maintenance costs as % of investment.

Impact on the environment: emissions of SO2, NOx, CO2, ash, particles.

2. Financial analysis of renewable energy source

Generated electricity, Costs according to a contract turnkey, Costs financed in construction (4%), Costs for constalting the final user (15%), Unpredicted costs (6%) Number of employees, Average gross salary, Total salary and administrative costs.

Operation of the plant in % per year: Number of working hours per year, Production of electricity for final consumption, Production of thermal energy for final consumption, Production of cooling energy for final consumption, Drive costs and maintenance costs (0.12% of the investment).

Economic conditions: Loan amount (as % of the investment), Loan repayment period, Loan interest, Annual annuity and Limit profitability for producing electricity.

9.1. Project proposals and analysis of their economic viability

9.1.1. Project proposals - Photovoltaic panels in Photovoltaic power plant (PVPP)

(Project which can be effectively implemented in all 10 municipalities in the Southeast planning Region)

The previous analyzes in the study showed that the most promising renewable energy source for the municipalities from the Southeast planning region is the sun considering the number of sunny hours per year as well as the amount of energy that is emitted. Therefore, the most interesting approach is the one for preparation and implementation of projects for photovoltaic power plant (PVPP) with an assumption that there will be adjustments in the current state policy for limiting these types of plants for production of electricity and will provide attractive prices for repurchasing the generated electricity by the country.

The project proposals can be funded from the budget of the municipality, through using loans from commercial banks or through concessions, i.e. using the model Public Private Partnership (PPP).

The tables show the basic technical and financial data related to the technology of the photovoltaic panels. For each of the discussed technologies, basic information about the effectiveness and the economic conditions are given starting from 2004 to 2011, as well as an estimation for 2020. That

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kind of rough estimation may indicate a possible development and applicability of certain technologies in the future.

The tables (9.1, 9.3 and 9.5) show the basic technical characteristics of a solar photovoltaic panel, a wind generator and a mini hydro power plant while the tables (9.2, 9.4 and 9.6) show financial and economic analysis related to each technology separately. For each of these technologies the basic information are given about the effectiveness, economic conditions as well as the price that the generated power from every renewable source should have so that the plant will operate at the limit of profitability. Comprehensive analyzes were made for 2004, when the great operation of these technologies actually started, as well as a preview for 2011, and an estimation for 2020. This rough estimation may indicate to the possible development and applicability of certain technologies in the future.

Table 9.1. Basic characteristics of the solar photovoltaic panel

Solar photovoltaic (PV) module Unit 2004 2011 2020

Technical data

Capacity of the plant kW 5-500 5-500 5-500

Total efficiency (net) % 17 22 25

Unplanned pause % 1 1 1

Planned pause due to maintenance weeks/year 2 2 2

Technical lifespan year 25 30 30

Time for construction year 0,1-0,5 0,1-0,5 0,1-0,5

Financial data

Specific investment Euro/W 3,26-12 1,6 - 3 1 –1,2

Drive and maintenance costs ( % of investment)

% 1 1 1

Environment

SO2 g/GJ 0 0 0

NOx g/GJ 0 0 0

CO2 g/GJ 0 0 0

Ash, g/GJ 0 0 0

Particles g/GJ 0 0 0

Table 9.2. Financial analysis of the solar photovoltaic power plant (prices for 2013).

Unit Value

Generated electricity kW 459

Costs according to a contract turnkey Euro 918.000

Costs financed in construction (4%) Euro 0

Costs for consulting the end user (15%), Euro 0

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Unpredicted costs (6%) Euro 0

Total investment Euro 918.000

Personal income and administrative expenses

Number of employees person 1

Average gross salary Euro/year 8.000

Total salary and administrative costs. 8.000

Factor of the plant

Operation of the plant in % per year % 25

Number of working hours per year h/year 2.190

Production of electricity on output MWh/year 1.005

Drive and maintenance costs (0.12% of the investment) Euro/year 1.100

Economic conditions

Loan amount ( % of the investment), % 75

Period for repayment of the loan years 10

Interest on the loans % 6

Annual annuity Euro/year - 91.725

Result

Limit profitability for producing electricity Euro/kWh 0,1071

From Table 9.2 it can be concluded that for a photovoltaic power plant with an installed capacity of 459 kW, the total investment costs are 918.000 Euro. The annual annuity for repayment of the investment, according to the economic conditions for the amount of the loan of 75% from the value of the investment with a 10 year period for loan repayment and an interest rate of 6% is 91.725 Euro. The profitability limit of the electricity produced from the RES is 10,71 Euro cents/kWh. According to the Regulation for feed-in tariffs for electricity, the current tariff for the generated and delivered electricity from photovoltaic power plant with installed capacity greater than 50 kW, but less than 1.000 kW is 12 Euro cents/kWh by which the investment in this type of facilities is quite justified.

9.1.2. Project proposal - Wind Generators in Wind Power Plant

(Project which can be effectively implemented in the Municipality of Gevgelija, at a location on Kozuf Mountain as well as in the Municipality of Valandovo)

The previous analyzes in the study as well as the previously developed Atlas of winds in Macedonia have shown that attractive locations for using the strength of the wind in order to generate electricity in the municipalities in the Southeast planning region are: Kozhuf (the locality Flora) Valandovo and Bogdanci. However, in Bogdanci the project “Wind Park” has already been implemented, so the locations Kozhuf (part of the Municipality of Gevgelija) and Valandovo are the ones that still remain.

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The project proposal can be funded from the budget of the municipality, by taking loans from commercial banks or through concessions, i.e. using the model Public Private Partnership (PPP).

The project proposal contains all the necessary initial data for an estimation of the profit of the investment.

Table 9.3. Basic characteristics of the wind generators

Unit 2004 2011 2020

Technical data

Capacity of the plant МW 0,5-2,0 1,5-3,0 2,5-5,0


Unplanned pause % 3-5 3-5 3-5



Time for construction year 0,1-0,5 0,1-0,5 0,1-0,5

Financial data

Specific investment Euro/W 1.150 1.100 1.000


% 1,8 1,5 1,4

Environment

SO2 g/GJ 0 0 0

NOx g/GJ 0 0 0

CO2 g/GJ 0 0 0

Ash, g/GJ 0 0 0

Particles g/GJ 0 0 0

Table 9.4. Financial Analysis of the wind generators

Unit Value

Generated electricity kW 1.000


Costs financed in construction (4%) Euro 39.360

Costs for consulting the end user (12%) Euro 147.600

Unpredicted costs (6%) Euro 59.040

Total investment Euro 1.230.000




Total salary and administrative costs Euro/year 8.000

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Factor of the plant



Production of electricity on output MWh/year 2.190

Drive and maintenance costs

Drive and maintenance costs (1.8% of the investment) Euro /year 22.140

Materials – other expenses Euro /year 7.500

Total operating costs Euro/year 29.640

Economic conditions



Interest on the loans % 6

Annual annuity Euro/year -122.900


From Table 9.4 it can be concluded that for a wind generator with an installed capacity of 1.000 kW, the total investment costs are 1.230.000 Euro. The annual annuity for repayment of the investment, according to the economic conditions for the amount of the loan of 75% from the value of the investment with a 10 year period for loan repayment and an interest rate of 6% is 122.900 Euro. The profitability limit of the electricity produced from the RES is 6,97 Euro cents/kWh. According to the Regulation for feed-in tariffs for electricity, the current tariff for the generated and delivered electricity from wind power plants is 8,9 Euro cents/kWh by which the investment in this type of facilities is quite justified.

9.1.3. Project proposal - mini hydropower plants

(A project that can be implemented in the municipalities of Strumica, Novo Selo, Radovish)

The previous analyzes in the study have shown that hydropower potential in the municipalities of the Southeast planning region is not very rich. However, this type of projects can be implemented in the municipalities of Strumica, Novo Selo (Koleshino and Smolare waterfalls), and Radovish. This kind of projects has proven to be quite profitable if they are installed on intake (gravitational) water lines in bigger settlements (mostly cities).

The project proposal can be funded from the budget of the municipality, by taking loans from commercial banks or through concessions, i.e. using the model Public Private Partnership (PPP).

The project proposal contains all the necessary initial data for the estimation of the profit of the investment given in two blocks / tables which present the data for 2004 and 2011, as well as estimation for 2020, in particular when the funding source is a commercial loan with an interest of 6% and repayment period of 10 years:

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Table 9.5. Basic characteristics of the mini hydropower plant

Unit 2004 2011 2020

Technical data

Capacity per unit МW 0,05-3 0,05-3 0,05-3

Loading factor of the plant % 0,4–0,6 0,4–0,6 0,4–0,6



Technical lifespan year 40-50 40-50 40-50

Time of construction year. 3 3 3

Financial data

Specific investment Euro/W 1.000-1.300 1.000-1.300 1.000-1.300


% 3,5-8,0 3,5-8,0 3,5-8,0

Environment

SO2 g/GJ 0 0 0

NOx g/GJ 0 0 0

CO2 g/GJ 0 0 0

Table 9.6. Financial analysis of the mini hydropower plant

Unit Value

Capacity of the plant kW 150


Connecting to the net Euro 8.000

Costs financed in construction (4%) Euro 7.800

Costs for consulting of the end user (12%) Euro 19.500


Total investment Euro 238.100




Total salary and administrative costs. Euro/year 20.000

Factor of the plant



Production of electricity on output MWh/year 329

Drive costs and maintenance costs

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Drive and maintenance costs (5.5% of the investment) €/ year 13.096

Materials – other expenses €/ year 2.000

Economic conditions



Interest on loans % 6

Annual annuity Euro/year -20.619


For a hydropower plant with an installed capacity of 150 kW, the total investment costs are 238.000 Euro. The annual annuity for repayment of the investment, according to the economic conditions for the amount of the loan of 65% from the value of the investment with a 10 year period for loan repayment and an interest rate of 6% is 20.619 Euro. The profitability limit of the generated electricity from the RES is 16,96 Euro cents/ kWh. According to the Regulation for feed-in tariffs for electricity, the current tariff for the generated and delivered electricity from hydro power plant is 6,0 Euro cents/ kWh by which the investment in this type of facilities is not quite justified according to the economic conditions given in the Table 9.6. However, before making the final decision for investing in construction of SHPP there is a need of detailed technical and economical analyses for each case individually.

9.1.4. Project proposal for using biomass

Below are given three project proposals for using biomass as renewable energy source for generation of heating energy, combined generation of electrical and heating energy and generation of electrical energy only with technical and economic indicators which will help to choose the most suitable project for the particular municipality.

A more detailed and specific example for using biomass as a renewable energy source is given in order to improve energy efficiency and give a significant protection of the material and financial resources in a primary school - a typical example present in every municipality in the studied planning region.

9.1.4.1. Project Proposal 1: Production of thermal energy (steam and hot water) from biomass

In all municipalities in the Southeast planning region, there are small or large amounts of biomass in the existing forests as well as in agricultural waste products. The specific values of systematized statistical indicators are given in the study. Using this potential for production of thermal energy (steam or hot water) is a specific proposal and its qualitative values are given below.

Short description of the technology

Combustion of biomass in a firebox. Saturated vapor with pressure of 4-15 bars is produced. Small and average units with a capacity of 1-15 MW thermal power.

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Advantages and disadvantages

Advantages: The emission of CO2 into the atmosphere is increased or there is a so-called zero emission; it has a good influence on reducing emissions of SO2; the ash which is produced as a result of the combustion returns in the environment as a fertilizer in agriculture.

Disadvantages: The biomass has a small energy value per unit mass; a large area is required; the transportation is expensive, except on locations where the biomass is a by-product of another process.

Application: For the production of thermal or electric energy for the needs of the municipality, or the needs of public companies or production plants within the technological and development projects of the municipality.

Research and Development: Commercial technology for which there is no special program for research and development.

The basic data for a thermal energy production plant using biomass as fuel (from a technical and economic point of view) is given below, as well as a suitable financial analysis is used of the profitability of the investment if a commercial loan with an annual interest rate of 6% with a 10 years payment period.

These indicators are of interest to the municipalities in order to evaluate the profitability of the project and its inclusion in the investment and development plan.

Table 9.7. Main characteristics of the industrial plant for the production of thermal energy from biomass

Production of steam from biomass Unit 2004 2011 2020

Technical data

Thermal capacity per unit MW 1-15 1-15 1-15

Total efficiency (net) % 60-87 80-90 85-90




Time of construction year <1 <1 <1

Financial data

Specific investment Euro/kW 80-160 80-160 80-160

Drive and maintenance costs (% of investment)

% 5 5 5

O&M expenses (% of investment) % 3,5 3,5 3,5

Environment

SO2 g/GJ fuel 25-60 25-60 25-60

NOx g/GJ fuel 40-200 40-200 40-150

CO g/GJ fuel 75-500 75-400 75-400

Particles (with a filter bag) g/GJ fuel 25-100 25-100 25-100

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Table 9.8. Financial and economical analysis of the industrial plant for production of thermal energy from biomass with a capacity of 1 MW and 7.5 MW

Production of steam from biomass Unit Value

Capacity of the plant kW 1.000 7.500

Thermal efficiency % 60 60

Costs according to a contract turnkey Euro 126.000 570.000

Costs financed in construction (4%) Euro 5.040 22.800

Costs for consulting and other expenses (20%) Euro 25.200 114.000

Unpredicted costs (6%) Euro 7.560 342.000

Total investment Euro 163.800 741.000


Number of employees person 2,5 3,75

Average gross salary Euro/year 8.000 8.000

Total Euro/year 20.000 30.000

Number of working hours of the plant

% from possible time (8.760h/year) % 70 70

Thermal energy on output MWh/year 6.132 45.990

Fuel

Type of fuel biomass biomass

Lower thermal power of the fuel MWh/t 4 4

Specific price of the fuel Euro/ton 12 12

Specific price of the fuel Euro/GJ 0,84 0,84

Annual need for energy from fuel MWh/year 10.220 76.650

Annual fuel consumption t/year 2.555 19.163

Annual expenses for fuel Euro/year 30.660 229.950

Expenses for operating and maintenance

Operating and maintenance expenses (% of the investment) % 10 10

Expenses for the preparation of an additional amount of water Euro/MWh 0,5 0,5

Material and other expenses Euro/year 2.000 15.000

Total expenses for the operation of the plant Euro/year 73.420 381.900

Economic conditions

Loan amount ( % of the investment), % 75 75

Period for repayment of the loan year 10 10

Interest on loans % 6 6

Annual annuity Euro/year -15.276 -69.104

Price of the produced steam Euro/MWh 0,0145 0,0098

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In table 9.8. a comparative analysis of the industrial plant for the production of thermal energy from biomass with an installed capacity of 1 MW and 7,5 MW is given. The total investment costs of the plants are 163.800 Euro and 741.000 Euro, respectively. The annual annuity for investment repayment, according to the economic conditions for loan amounts of 75% of the investment value with a 10 year period for loan repayment and an interest rate of 6% is 15.276 Euro i.e. 69.104 Euro. The profitability limit for thermal energy generated by the appropriate plants is 1,45 Euro cents/MWh i.e. 0,98 Euro cents/MWh. For this type of energy (thermal) there is no regulated - preferential tariff for thermal energy generated from renewable energy sources.

9.1.4.2. Project Proposal 2: Cogenerative plant which operates on biomass (back preassure turbine)

Short description of the technology

Apart for thermal energy, the plant is used for production of electrical energy as well.The maximum steam pressure is usually 20 bars and the installed capacity from 0,1 - 5 MW.


Advantages: CO2 in the atmosphere does not increase or there is a so-called zero emission; it has a good influence on reducing the SO2 emissions, the ash which is a result of combustion returns in the environment as a fertilizer in agriculture. When building such a plant, the following should be taken into account:

the interest of the local community for production of thermal energy and electricity from biomass;

availability of fuel - biomass, the existence of a suitable infrastructure;

need for storing biomass;

possibility to connect to the electricity distribution network.

Application

Small and medium-sized industrial plants which can provide stable and secure biomass supply and which are in need of thermal energy and electricity.

Research and development

The focus of the research is directed towards increasing the total efficiency, increasing efficiency particularly for the production of electricity, reducing the emission of NOx.

Table 9.9 shows the basic technical data of the industrial plant for the production of heating and electrical energy from biomass, while Table 9.10 shows the financial and economic analysis of industrial plant with a capacity of 1 MW and 5 MW.

Table 9.9. Basic characteristics of the industrial plant for production of thermal energy and electricity from biomass

Unit 2004 2011 2020

Technical data

Thermal capacity per unit MW 0,05-5 0,05-5 0,05–5


Efficiency of the electricity (net) % 9 9 9

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Technical lifespan years 20 20 20

Time of construction years <1 <1 <1

Financial data

Specific investment Euro/kWе 1.680 1.680 1.680

Changeable drive and maintenance costs Euro /МW/year

13,8 13,8 13,8

Fixed drive and maintenance costs Euro /МW/year

92.000 92.000 92.000

Environment

SO2 g/GJ fuel 25-60 25-60 25-60

NOx g/GJ fuel 40-200 40-200 40-150

CO g/GJ fuel 75-500 75-400 75-400

Table 9.10. Financial and economic analysis of the industrial plant for production of thermal energy and electricity from biomass with a capacity of 1 MW and 5 MW

Data for condensation steam turbine Unit Value

Electric power МW 1 5

Thermal power МW 7,5 37,5

Average annual efficiency, electricity % 9 9

Average annual efficiency, steam % 61 61

Total average annual efficiency % 70 70

Costs according to a contract turnkey Euro 1.600.000 6.000.000

Costs financed in construction (4%) Euro 64.000 240.000

Consulting and other expenses (20%) Euro 320.000 1.200.000


Total investment Euro 2.080.000 7.800.000

Steam

Cost of the replacement steam (80% of the extra light fuel) Euro/MWh 10,12 10,12


Number of employees person 9 15


Total salary and administrative expenses Euro/year 72.000 120.000

Functioning of the plant

Operation of the plant in% compared to a whole year % 70 70

Number of working hours per year h/year 6.132 6.132

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Production of THERMAL energy MWh/year 45.990 229.950

Production of ELECTRICITY MWh/year 6.132 30.660

Fuel

Type of fuel(lower thermal power) MWh/t 3 3

Price of the fuel Euro/t 15 15

Specific cost of fuel Euro/GJ 1,3889 1,3889

Fuel consumption MWh/year 74.460 372.300

Fuel consumption t/year 24.820 124.100

Cost for fuel Euro/year 372.300 1.861.500

Operating and maintenance costs (% of investment) Euro/MWhe 10 10

Preparation of additional amount of water Euro/MWht 0,5 0,5

Material and other costs Euro/year 20.000 70.000

TOTAL COSTS FOR THE OPERATION OF THE PLANT Euro/year 674.103 3.098.047

Preparation of additional amount of water Euro/MWht 0,5 0,5

Economic conditions


Period for repayment of the loan years 10 10


Annual annuity Euro/year -193.975 -727.406

Result

Price of the produced steam in the new plant Euro/кWh 0,0147 0,0135

Price of the produced electricity in the new plant Euro/кWh 0,1099 0,1010

Price of import steam Euro/кWh 0,0101 0,0101

Price of import electricity Euro/кWh 0,0500 0,0500

TOTAL COSTS IF STEAM AND ELECTRICITY ARE IMPORTED Euro/year 771.975 3.859.875

REDUCING OF COSTS Euro/year 97.872 761.828

In table 9.10 a comparative analysis of the industrial plant for the production of thermal energy and electricity from biomass with an installed capacity of 1 MW and 5 MW is given. The total investment costs of the plants are 2.080.000 Euro and 7.800.000 Euro, respectively. The annual annuity for investment repayment, according to the economic conditions for loan amounts of 75% of the investment value with a 10 year period for loan repayment and an interest rate of 6% is 193.975 Euro i.e. 727.406 Euro.

The profitability limit for electricity generated from the suitable plant is 10,99 Euro cents/MWh i.e. 10,10 Euro cents/MWh. According to the Regulation on the feed-in tariffs for electricity, the current tariff for generated and delivered electricity from biomass thermo plants with an installed electrical capacity less than or equal to 3 MW is 15,0 Euro cents/kWh by which the investment in this type of facilities is fully justified.

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9.1.4.3. Project Proposal 3: Production of electricity from biomass-condensation turbine

Short description of technology

The main parts of the plant are: fuel purifier, system for fuel supply, system for water purification, medium and high pressure steamboiler, gas purification system, ash purification system, steam turbine and an equipment for production of electricity .


The main barrier is the consistent availability of biomass.

Application

In Small and Medium-sized enterprises, and industries with large amount of biomass residues and electricity demand. Criteria for selection of location:

interest and support of the local community;

available resources for biofuel production and a good infrastructure for transport of the biomass;

capacity for storing fuel

appropriate place for an electrical connection

Table 9:11. Basic characteristics of the industrial plant for production of electricity from biomass

Technical data Unit 2004 2011 2020

Thermal capacity per unit MW 1-10 1-10 1-10

Steam pressure bar 40 60 90

Total efficiency (gross) % 20 25 29



Planned pause due to maintenance week/year 3 3 3

Technical lifespan Year 20 20 20

Time of construction Year 1-1,5 1-1,5 1 - 1,5

Financial data

Specific investment Euro/MW 1.656 1.656 1.656

Changeable drive and maintenance costs Euro/MWh 12 12 12

Fixed drive and maintenance costs Euro/МW/ year

24.000 24.000 24.000

Environment

SO2 g/GJ fuel 25-60 25-60 25-60

Nox g/GJ fuel 40-200 40-200 40-150

CO g/GJ fuel 75-500 75-400 75-400

Particles (electrostatic filter / textile filter) g/GJ fuel 25-200 25-200 25-200

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Table 9:12. Financial and economic analysis of the industrial plant for production of electricity for two plants with a capacity of 1 MW and 10 MW

Data for condensation steam turbine Unit Value

Capacity of the plant kW 1.000 10.000

Produced steam kWh 0 0

Nominal efficiency, electricity % 20 20

Predicted annual efficiency, electricity % 18 18

Efficiency, steam % 0 0

Costs according to a contract turnkey Euro 1.200.000 8.800.000

Costs financed in construction (4%) Euro 48.000 352000

Consulting and other expenses (20%) Euro 180.000 1.320.000


Total investment Euro 1.500.000 11.000.000


Number of employees person 6 15


Total.salary and administrative expenses Euro/year 48.000 120.000


Number of working hours per year h/year 6.132 6.132

Annual production of electricity MWh(e)/year 6.132 6.1320

Fuel biomass biomass

Lower thermal power MWh/ton 4 4

Price of the fuel Euro/GJ 0,84 0,84

Price of the fuel Euro/ton 12 12

Fuel consumption MWh/year 34.067 340.667

Fuel consumption ton/year 8.517 85.167

Cost for fuel Euro/year 102.200 1.022.000

Operating and maintenance costs Euro/MWh(е) 10 10

Amount of water needed Euro/MWh(h) 0,12 0,12

Material and other costs Euro/year 18.000 100.000

TOTAL COSTS FOR THE OPERATION OF THE PLANT Euro/year 181520 1.735.200


Number of working hours per year h/ year 6.132 6.132

Annual production of electricity MWh(e)/ year 6.132 61.320

Fuel biomass biomass

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Lower thermal power MWh/ton 4 4

Price of the fuel Euro /GJ 0,84 0,84

Price of the fuel Euro /ton 12 12

Fuel consumption MWh/ year 34.067 340.667

Fuel consumption ton/ year 8.517 85.167

Cost for fuel Euro/ year 102.200 1.022.000

Operating and maintenance costs Euro/MWh(е) 10 10

Cost for the amount of water needed Euro/MWh(h) 0,12 0,12

Material and other costs Euro/ year 18.000 100.000

TOTAL COST FOR THE OPERATION OF THE PLANT Euro/ years 181520 1.735.200


Number of working hours per year h/ year 6132 6132

Economic conditions


Period for repayment of the loan years 10 10


Annual annuity Euro /year -149.878 -1.099.103

Result

Price of the electricity produced Euro /kWh(e) 0,0296 0,0283

In table 9.12 a comparative, financial and economic analysis of the industrial plant for the production of electricity from biomass with an installed capacity of 1 MW and 10 MW is given. The total investment costs of the plants are 1.500.000 Euro and 11.000.000 Euro, respectively. The annual annuity for investment repayment, according to the economic conditions for loan amounts of 75% of the investment value with a 10 year period for loan repayment and an interest rate of 6% is 149.878 Euro i.e. 1.099.103 Euro.

The profitability limit for electricity generated from the appropriate plant is 2,96 Euro cents/MWh i.e. 2,83 Euro cents/MWh. According to the Regulation on the feed-in tariffs for electricity, the current tariff for generated and delivered electricity from biomass thermo plants with an installed electrical capacity less than or equal to 3 MW is 15,0 Euro cents/kWh by which the investment in this type of facilities is fully justified.

9.1.4.4. Example for project proposal in the field of RES (biomass) in order to improve the energy efficiency in Municipal Elementary School (MPS) which is applicable to all municipalities in the Southeast planning region

Project Proposal: Replacement of the solid fuel boiler with biomass boiler (pellets) in the municipal

primary school

MAIN OBJECTIVE OF THE PROJECT: To carry out a project for conversion and replacement of hot water boilers in a municipal primary school due to energy savings / assets.

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The following things will be used for the preparation of the project:

- The project task;

- The current state of the boiler room;

- Consultations with the investor;

- The existing laws, regulations, standards and norms for this type of installation.

For the replacement and conversion of heating boilers using solid fuel there should be a plan in which thermodynamic installations will be included:

- Complete dismantling of one of the existing hot water boilers and its removal from the boiler room.

- Installation of a new boiler using biomass (wood pellets), with an appropriate thermal capacity according to the European and world energy trends, which Macedonia tries to reach, and are in relation to the increased use of renewable energy sources and raising energy efficiency.

- Converting the second existing hot water boiler from solid fuel (wood) to biomass (wood pellets), with an installation of a burner with a suitable thermal capacity.

- No alteration is made on the third hot water boiler i.e. it is kept as a reserve.

In the municipal elementary school, the required thermal energy is produced by burning wood in three hot water boilers type TTK-200 product of PRVOMAJSKA RASHA - Labin, manufactured and built in 1985, with a declared thermal capacity from 125 kW to 200 kW.

According to European standards, the average lifespan of cast iron sectional boilers is 20 years and for the steel boilers 15 years. The boilers at the school are in a relatively satisfactory drive condition (after 29 years of usage). The coefficient of energy efficiency of this type of boilers is from 65% to 72%, and according to years of usage it should be smaller than 60%. The pellet boilers have a coefficient of the energy efficiency of approximately 90%.

According to the European directives for increasing energy efficiency and the increased participation of renewable energy in the energy balance of the countries as well as the advantages of using pellets compared to other fuels, taking into account the overused lifespan of exploitation of the existing boilers, a replacement of a hot water boiler using wood with a new hot water boiler using pellets with thermal capacity of 380 kW is suggested. Before the replacement, it is necessary to uninstall - cut the existing hot water boiler and its removal from the boiler room so that there will be a free space for the installation of a new boiler with pellets with a suitable tank for their storage. To install the new proposed solution (pellet boiler), some small constructions are required (breaking the concrete due to enlarging the boreholes) in the section between the pillars and the front door of the boiler room.

The new pellet boiler should have the following characteristics:

- Installed burner with inverter;

- Automatic cleaning of the burner;

- Digital boiler regulation;

- Transporter of the pellets from the bunker (tank) to the burner;

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- Maximum working pressure of 4 bar and

- Protective circulative pump Grundfos UPS 32-55.

One of the existing hot water boilers will have a burner of 90 kW using pellets installed. The re-function of the boiler will take adjusting the boiler front door by installing burner using biomass (wood pellet).

According to the project task of Investor, the third existing hot water boiler TTU 200 Labin, will serve as a reserve, i.e. it will not be "removed" from the boiler room.

All electrical installations of the proposed new equipment will be connected to the existing electrical panel in the boiler room.

Analysis of the energy efficiency of the proposed solution

Considering the durability and the amortization of the existing hot water boilers using solid fuel, and in order to comply with the European directives targeting the improvement of the energy efficiency and the increased use of renewable energy sources, a replacement of one of the boilers using solid fuel with a boiler with pellet is proposed as well as conversion of another solid fuel boiler to a pellet boiler. Another possible alternative for replacing the existing boilers is with boilers with extra light household oil (EL-1). Therefore, the analysis of the energy efficiency will be consisted of comparing the necessary amounts of both fuels (EL-1 and pellets) to meet the annual needs of MPS with thermal energy, the annual costs for their supply compared with the total value of the newly planned investment and consequently the period of return of the investment with the newly provided solution.

A) Heating with extra light heating oil

According the parameters given before, and according to current prices of the energy sources in Republic of Macedonia, when a facility is heated with an extra light fuel - oil annually, an amount of about 36.000 kg will be needed. The density of the extra light fuel oil for heating in households (EL-

1), according to the "Catalogue of fuel" issued by MAKPETROL Inc., temperature of 15C is = 860 kg / m3. The total amount of extra light fuel annually, is:

V = Bg,el/ = 36.000/860 = 41,86 m3 = 41.860 l

The current price of extra light oil (EL-1), according to the Decision for determining the maximum prices of certain oil derivatives according to the Methodology brought on the meeting of the Energy Regulatory Commission of The Republic of Macedonia from 17.11.2014 , is 50,50 MKD/ liter.

When a facility is heated with extra light fuel (EL-1) MKD 2,113,930 are required annually, or approximately 34.375 EUR (average rate of the Central Bank: 1 EUR = 61.5 MKD).

B) Heating with pellets

For a calorific value of pellets of 5 kWh / kg or 18 MJ / kg, the required amount of pellets needed to cover the necessary thermal energy for the whole heating season is:

Bg,pel= d

god

H

E = 417973

5= 83.595 kg/year = 83,6 ton/year

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The current market price of the wood pellets which are offered on the Macedonian market is escalating in the range of 180-200 Euro/ton. Considering the average price of pellets of 190 Euro/ ton (or 11.685 MKD/ton), for heating a facility with pellets MKD 976.866 are required annually, or about 15.884 Euro (average rate of the Central Bank: 1 Euro = 61.5 MKD).

Cost comparison and period of investment return According to the above given calculations, the difference in the cost for heating a facility using extra light heating oil (EL-1) and the pellets is 1.137.064 MKD/ year (18.491 Euro/year).

The value of the newly planned investment is 2.150.224 MKD or 34.963 Euro. Because of the difference in the current price of the energy source, the period of return of the investment is:

= 2.150.224/1.137.064 2 years

According to the calculations, it can be concluded that the replacement and the conversion of solid fuel using boilers with pellets using boilers in the municipal elementary school is fully justified.

9.1.5. Proposal for the application of biogas energy purposes

Biogas plants use the biological waste from livestock, the waste water from the processing of sugar beet, the brewery etc.

The biogas can be used for production of thermal energy and electricity, while the used biomass for production of biogas is used as fertilizer in agriculture.


The costs for reducing CO2 emissions are very low, because the emission of CH4 is reduced.

Application: For small livestock breeding farms.

Research and development

The focus of the research is directed at structural improvements of the plant, improving the process of managing and reducing drive and maintenance costs as well as using other organic substances as food for the anaerobic bacteria.

In table 9.13 the technical and financial data of the biogas production plant are given, as well as the value of the total investment, the economic conditions which refer to the commercial loan and the estimation of the price for producing biogas.

Table 9.13. Main characteristics of the plant for production of biogas and an estimation of the price for biogas production

Unit 2004 2011 2020

Technical data

Importing dally waste m3/day 3.300 3.300 3.300

Importing organic material kg COD/day 30.000 30.000 30.000

COD removed in plant % 70 70 70

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Production of biogas

m3 biogas/

m3 import material

2,00 2,15 2,30

Annual hours of plant operation h/year 8.000 8.000 8.000

Individual electricity consumption

kWh/m3

import 0,5 0,5 0,5

Time for construction years 1 1 1

Availability of plant % 98 98 98

Lifespan year 20 20 20

Financial data

Specific investment for treated wastewater per day

Euro/m3

import 300 300 300

O & M costs (5-10%) of the investment

% 10 10 10

Total equipment Euro 990.000 990.000 990.000

Drive and maintenance Euro 99.000 99.000 99.000

Total investment Euro 1.089.000 1.089.000 1.089.000

Technical data Unit 3.300 3.300 3.300

Importing dally waste 30.000 30.000 30.000

Importing organic material m3/den 70 70 70

Economic conditions

Loan amount ( % of the investment)

% 75 75 75

Period for repayment of the loan year 10 10 10

Interest on loans % 6 6 6

Annual annuity Euro/year -108.811 -108.811 -108.811

Result Euro/nm

3

biogas 0,0247 0,0230 0,0215

Biogas plants for producing electricity

The main components for the technological solution are: biogas plant, biogas treatment plants, gas engine and plant for using the waste heat from the engine. The biogas must be cleaned from H2S aerosols and particles, while the free water from the gas must be removed. After cleaning, the biogas is compressed to a pressure of the gas engine. The electrical efficiency is up to 40% of the input energy of biogas. The efficiency of waste heat from the gas engine is up to 50%. The power of the gas machines and the generator is in the range: 0,1- 3 MW electricity output.

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The main disadvantage is the high investment value of the plant.

In table 9.14 the basic technical data is given for the biogas plant for electricity production while table 9.15 includes the technical and financial parameters of the gas engine with a capacity of 1 MW which operates on biogas as well as the price which the generated electricity should have so that the plant will operate at the limit of profitability.

Table 9.14. Gas machine driven by biogas

Unit 2004 2011 2020

Technical data

Single electric engine power MWe 0,1-3 0,1-3 0,1-3

Total efficiency of the electricity production

% 25-40 30-40 30-40

Unplanned pause % 3 3 3

Planned pause due to maintenance

week/ year 2 2 2


Time of construction year 0,5-1,5 0,5-1,5 0,5-1,5

Financial data

Specific investment Euro /MWе 500-700 500-700 500-700

O&M expenses ( % of investment)

% 7-10 7-10 7-10

Environment

SO2 g/GJ fuel 0,019 0,019 0,019

NOx kg/GJ fuel 0,540 0,540 0,540

N2O kg/GJ fuel 0,001 0,001 0,001

СН4 kg/GJ fuel 0,279 0,279 0,279

Table 9.15. Technical and financial parameters of the gas engine with power of 1 MWe driven by biogas

Unit Value

Capacity of the plant kW 1.000

Nominal electrical efficiency % 40

Average annual efficiency % 38

Investment costs

Costs according to a contract turnkey Euro 5.000.000

Costs for construction (4%) Euro 200.000

Consulting and other expenses (20%) Euro 750.000


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Total investment Euro 6.250.000




Total salary and administrative expenses Euro/year 16.000

Plant data

Operation of the plant in% annually % 70


Production of THERMAL energy MWh/year 0

Production of ELECTRICITY MWh/year 61.320

Fuel biogas

Lower thermal power kWh/nm3

6,5

Price of the fuel Euro/nm3 0,045

Price of the fuel Euro/kWh 0,0069

Price of the fuel Euro/GJ 0,0019

Fuel consumption MWh/ year 161.368

Physical fuel consumption nm3/ year 24.825.911

Cost for fuel Euro/ year 1.117.166

Operating and maintenance costs (% from the investment)

% 9

Material and other costs Euro / year 60.000

Total drive costs Euro / year 1.193.167

Economic conditions

Loan amount ( % of the investment) % 75


Interest on loans % 6

Annual annuity Euro/ year -624.490

Result

Production price of electricity Euro/kWh 0,0296

In table 9.15. the technical and economic parameters of gas engine with an installed electric capacity of 1 MW operating on biogas are given. The total investment costs of the plant are 6.250.000 Euro. The annual annuity for investment repayment, according to the economic conditions for loan amounts of 75% of the investment value with a 10 year period for loan repayment and an interest rate of 6% is 624.490 Euro. The profitability limit of electricity produced from the appropriate plant is 2,96 Euro cents/MWh. According to the Regulation for the preferential tariffs for electricity, the current tariff for generated and delivered electricity from biogas thermo plants is 18,0 Euro cents/kWh by which the investment in this type of facilities is fully justified.

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9.2. Possibilities for financing energy efficiency and renewable energy sources projects in the Republic of Macedonia

The sources for funding the project proposals related to the utilization of RES and improvement of energy efficiency include: loans, grants and a combination of loans and grants.

The target groups are:

Private enterprises;

Households;

Public Institutions and

Units of the local government.

9.2.1. WeBSEFF Program for financing Sustainable Energy for the Western Balkans

WeBSEFF is abbreviation for the Program for financing sustainable energy in the Western Balkans provided by the EBRD and the European Commission, which provides funds for partner banks which give loans to private enterprises and municipalities (www.webseff.com). The target groups are private companies and municipalities with idea to invest in energy efficiency and RES projects in a smaller amount, as follows:

Projects for energy efficiency with at least 20% savings

Projects for improving the efficiency of the existing commercial or administrative objects of at least 30%, and

Projects for using renewable energy sources.

The program offers combined support consisted of a line of credit , grant and technical support.

The line of credit is available through the following commercial banks:

- Ohridska Banka AD Ohrid (www.ob.com.mk);

- Halkbank AD Skopje (www.halkbank.com.mk);

- Tutunska NLB Banka AD Skopje (www.nlbtb.com.mk)

Conditions for a line of credit

Amount of the loan up to 2.000.000 Euro

Period for repayment of the loan Up to 5 years

Grace period Up to 18 months

Rate of interest and payment guarantee Depending on the policy of the commercial bank

http://www.ob.com.mk/

http://www.halkbank.com.mk/

http://www.nlbtb.com.mk/

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To encourage companies to take advantage of the scheme, the EU, as part of its commitment to reduce greenhouse gases, will reimburse a proportion of investment cost once a firm has successfully completed a project.

Cash grants range from 15% to 20% for the following indicative list of purposes:

20% for boilers and small cogeneration/ tri-generation facilities; 15% on all other eligible industrial energy efficiency investments; 20% on investments in energy efficiency of commercial buildings; 20% on investments in renewable energy (or 15% if feed-in tariffs are available).

9.2.2. Eco loan from the GGF through Halkbank

The Green for Growth Fund Southeast Europe has provided the second major loan of 10 million for crediting investments to improve energy efficiency. The target groups are the enterprises and the households.

9.2.2.1. Eco loan for households

Designed for funding projects for households in order to improve the living conditions by changing the thermal insulation, doors and windows, new heating systems i.e. replacement of old boilers, solar and thermal systems for hot water, external and internal lighting system, setting up solar panels, using natural gas.

Amount of the loan: up to 100,000 Euro

Period for repayment of the loan: up to 84 months

Interest: 7% nominal interest rate (7,66% -11,33% annual rate of total costs).

Loan costs

- 1,25% of the approved loan as a compensation for processing the loan application if you receive salary by Halkbank,

- 2,00% of the approved loan as a compensation for processing the loan application if you receive salary by another bank.

Payment guarantee

- 500-2500 Euro - 1 guarantor/solidarity debtor

- 2500-10000 Euro - 2 guarantors/solidarity debtors

- Over 10,000 Euro - mortgage on real estate property in the ratio 1: 1,5

- Joint debtors.

Criteria

- Installment must not pass 1/2 of the salary,

- Employees in institutions, public enterprises, creditworthy trade companies

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9.2.2.2. Eco plus loan for companies

Eco plus loan is intended to finance energy projects of enterprises as well as for reducing CO2

emissions.

The criteria for acceptability of the project is minimum 20% energy savings and/ or CO2 emissions

Amount of the loan: up to 500,000 Euro

Interest rate for all loan amounts: 7% annually, variable according regulations of the bank.

Fee for processing: 1% single payment

Period for repayment of the loan: up to 84 months (7 years) with a grace period of 6 months, but not later than 30.11.2018

Grace period: up to 6 months

Method of returning: monthly installments.

9.2.3. Loans for renewable energy MBDP

Macedonian Bank for Development Promotion (MBDP) offers loans for energy efficiency and renewable energy sources through several commercial banks in the Republic of Macedonia. The source of these funds is the Global Environment Facility (GEF).

The objectives of the line of credit are:

- Using renewable energy sources;

- Effective use of electricity;

- Care for the environment and

- Improving the energy climate in Macedonia.

9.2.3.1. Loan for Energy Efficiency

Amount of the project: maximum 500.000 USD.

The funds are granted only for new projects, with the following financial structure:

- 60% MBDP

- 10% individual participation

- 30% participation of the bank and other.

Interest rate: variable.

Period for repayment of the loan: up to 6 years.

At least half of the benefits of the project should result in preserving energy which is measurable. The technology for senergy savings must be well supported with evidence in the loan application.

9.2.3.2. Loan for Renewable energy sources

Amount of project: maximum 4.000.000 USD.

The funds are approved for projects with the following financial structure:

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- 60% MBDP

- 10% individual participation,

- 30% participation of the bank and other.

Period for repayment of the loan: from 5 to 10 years, grace period to 3 years

Target groups:

- Small (mini) HPP (with a capacity smaller than 10 MW),

- Producing electricity and thermal energy based on biomass

- Heating projects based on spare industrial thermal energy or renewable heat sources,

- Projects for electricity generated from sun and wind.

These loans from MBDP will be realized through the following commercial banks:

- Halkbank AD Skopje (www.halkbank.com.mk)

- Komercijalna Bank (www.kb.com.mk)

- Ohridska Ohrid Bank (www.ob.com.mk)

- Uni Banka (www.unibank.com.mk)

- Tutunska NLB Banka AD Skopje (www.nlbtb.com.mk)

9.2.4. ECO loan from ProCredit Bank AD Skopje

The loan is intended for businesses and households to invest in projects and activities for energy saving.

The loan for energy efficiency is in the group of consumer purpose loans used to renovate housing in the amount of minimum 30.000 to maximum 50,000 Euro. It can be repaid in a maximum period of 96 months (for the loans in MKD) and 180 months (for the loans in Euro).

9.2.5. Other financial instruments to support energy efficiency

9.2.5.1. EU Instrument for Pre-Accession Assistance (Instrument for Pre-accession Assistance (IPA))

The Instrument for Pre-Accession Assistance (IPA) is part of the package for external relations of the EU for the period 2007 - 2013. IPA, as well as the other elements of the package, is a major opportunity for rationalization and simplification of the procedures of the Commission to improve the coherence and the coordination of the activities of the European Commission. IPA consists of the following five components:

Component 1 - Transitional assistance and institutional building

Component 2 - Cross-border cooperation

Component 3 - Regional development

Component 4 – Development of human resources

Component 5 - Rural development

The projects for energy efficiency and promotion of utilization of renewable energies can be used in the Component 2 (Cross-Border Cooperation).

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The Instrument for Pre-Accession Assistance (IPA), as part of the package for external action of the EU will also continue to function in the period 2014-2010 year. The new instrument is widely known as the IPA II. The components are replaced with "areas of action" and a sectoral approach in the management with the assistance.

More information on: www.sep.gov.mk

9.2.5.2. The 7th Framework Programme of the EU

The 7th Framework Programme is the main EU instrument for financing research and technological development. This program is focused on the joint collaboration of academia (universities, research centers, etc.) and the business community to improve the efficiency and effectiveness and to use the benefits of scientific progress in the industry. In terms of energy, the aim is to create and establish technologies needed to adapt the existing energy system to a more sustainable, competitive and secure.

With 2.35 billion Euro, among the other things, the program finances the following activities: electricity renewable sources, production of fuels from renewable sources, intelligent energy networks, networks for energy efficiency, etc.

Macedonia is part of the Seventh Framework Programme.

More information on: http://cordis.europa.eu/home_en.html

10. Conclusions

From the previous analysis of the situation in the ten municipalities located in the Southeast planning region of the Republic of Macedonia (the potential is analyzed in details by municipalities in Chapter 4 and summarized in Chapter 5 and Chapter 6) can be concluded that the use of renewable energy sources can result in significant gains in the municipalities , through:

- Increasing revenues in the municipal budget;

- Reducing energy consumption from the conventional fuels in the municipality;

- Increasing the security for energy supply;

- Increasing employment;

- Reducing harmful gasses and emissions of greenhouse gases in the atmosphere;

- Increasing the share of used funds from the European funds for RES projects;

- Increasing the welfare and reducing the risk for the health of the population.

All the ten municipalities have the energy potential for renewable energy sources, ranging in size and the possible technologies for the use of each renewable source of energy are presented in Chapter 6.

Hydro energy

The hydropower potential in the whole region is relatively limited. Except the project for the Vardar Valley which includes a construction of 10 hydropower plants along the river Vardar from Veles up to Gevgelija, 4 of which belong to the municipalities in the Southeast region and are with bigger installed capacity, other significant potential for using hydropower to obtain electricity does not

http://cordis.europa.eu/home_en.html

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exist. A number of sites for construction of small hydropower plants are mapped (Appendix). Although with an absolute value, their installed capacity and annual energy production are not large, and can be a significant driver of the local economy (in the investment costs structure the largest share goes to construction with 70% of total costs) and contribute to the employment of local population. Despite the six published international public calls for granting concessions for construction of SHPP, the number of published locations on the territory of the Southeast planning region (a total of 4, all in the Municipality of Radovish – see Table 4.10.1) is very small.

Biomass

Regarding the use of biomass, the estimations are that except the opportunities for using waste from wood biomass, there is no chance for positive changes in the energy potential by using solid waste, livestock and agricultural products waste. Therefore, the biomass as energy source can be used for heating households, but is not enough to produce significant amounts of electricity. There is a considerable potential of waste from wood biomass, but they are used individually and without any organized strategy.

Biogas

According to the recommendations given in the literature, as positive economic effects from the processing of the solid municipal waste in order to get electricity through using biogas (methane) as a by-product, is considered the optimal number of people in the surrounding where the plant for processing waste into electricity would be placed is at least 250,000. The Southeast region has significantly smaller number of inhabitants. The conclusion for waste from livestock is also similar. Despite the availability of anaerobic digestion as a proven technology for commercial purposes, the digesters are still at a level of technical and commercial development. It is possible to use this resource in relatively small capacities.

Geothermal energy

A special attention in exploiting the potential of geothermal energy should be paid in the municipalities of Gevgelija and Strumica where this potential is used exclusively for balneology purposes and in a smaller amount for low temperature heating of greenhouses for early vegetables due to low temperature gradient. In the municipalities of Dojran and Radovish there are also boreholes with geothermal waters with weak temperature gradient which are not fully explored. In the future, intensifying the exploitation of known geothermal resources for energy purposes is expected, as well as detailed examination of known boreholes for complete identification of their energy potential.

Solar energy

The lack of electricity production from photovoltaic power plant (PVPP) is evident for all the ten municipalities. In Valandovo, Strumica, Radovish. Novo Selo and Konce there are many already completed or under construction PVPP. Except the PVPP in Valandovo, all the other PVPPs are with a very low capacity, i.e. they have an installed single power less than 50 kW. Considering that the entire region is with a large number of sunny hours and most of the year the temperature is quite high, the absence of PVPP is explained only with the limitation of installed capacity imposed by the decision of the Government. Currently, it is not possible to gain the status of a preferential producer of electricity from photovoltaic power plants because of reaching the maximum allowed installed capacity in the Republic of Macedonia. On the other hand, the continuing decline of the price of the

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solar energy systems (for production of thermal energy and electricity) should contribute to massive use of smaller systems of this kind in the near future.

Wind energy

The wind energy is already exploited in the municipality of Bogdanci. In Gevgelija there are good conditions for using wind energy, dictated by the nature and the geostrategic coordinates of the municipality in the area of mountain Kozhuf and near the village of Davidovo. In the rest of the municipalities, the potential of wind energy is insignificant. When completing the second phase, the first wind park in Macedonia built in Bogdanci will be with an installed capacity of 50 MW. A handicap for greater use of renewable energy sources in the near future is the limitation of the total installed capacity of wind power which up to December 31, 2016 should be 65 MW. An increasing use of wind energy is possible by applying hybrid systems - small wind aggregates in combination with other renewable energy sources (e.g. photovoltaic panels or geothermal heat pump), especially in households or small public objects.

As a general conclusion can be stressed the fact that the existing potential of renewable energy sources, even though they cannot increase significantly the amount of domestic production of electricity from renewable sources, through its support in heating households, getting hot water from RES , assistance in mitigating, energy consumption can drastically improve the living standards of the population in the region, as well as be a strong stimulation for the socio-economic development of local municipalities and the region as a whole.

The obligations of Macedonia as a country and the local governments as a third authority which in accordance with the decentralized position of the structures of the country related to EU Directive 2010/36 and the Strategy for using renewable energy sources in the Republic of Macedonia by 2020, will be fully completed through the use of established potentials given in this study.

Examples throughout the Southeast planning region defined in the study show that investing in solar, hydropower, geothermal and wind energy as well as biomass energy, except the benefits for investors, brings a number of benefits for local communities, too.

The Republic of Macedonia, as a country - candidate for EU membership is up to date with trends in Europe and constantly harmonizes its legislation with the European. The main regulation which regulates the RES market was adopted, as well as the feed-in tariffs and other subsidies for all those who invest in this sector.

The municipalities as local authorities have open arms to invest and to attract investors who will expand the use of renewable energy sources in their local communities.

However, despite all these development activities, there are still many barriers that prevent full expansion in utilising RES, given in Chapter 8.

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11.Recommendations

11.1. Recommendations for overcoming potential barriers for utilising RES

• Giving the opportunity for physical entities to invest in RES, which as strategic partners of the municipalities or public companies will enable a flow of fresh capital necessary to encourage regional and local economic development;

• Transfer of knowledge between the municipalities through an exchange of human resources, documentation, knowledge and experience, implementation of positive experiences from other municipalities;

• The granting of loans with low interest rates for so-called "Green projects" to physical and legal entities, as well as to local governments that have good project proposals (with the appropriate feasibility elaborates, and plans for socio-economic development) will provide the necessary capital for the implementation of development plans;

• Further development of the financial and administrative capacities of municipalities through creating special funds for investment in RES, prediction of a certain percentage of the means in the budget for that purpose, creating preconditions for a favorable investment climate for attracting potential domestic and foreign investors in RES ; strengthening the administrative capacities through continuous education of the administrative body for a more efficient implementation of investment plans, strengthening the professional capacities by employing professionals with technical education, engaging experts in the field of science and well known practitioners who will be included in the development and action plans of the municipalities;

• To intensify the investments, administrative changes and adjustments, such as marking the construction zones for facilities for using renewable energy sources are inevitable;

• Establishing ESCO1 - companies which will be the engines of the expansionist plans and development policies for utilising RES in getting electricity, for heating or in agricultural production;

• Providing benefits for the investors in the municipalities if they utilise RES in their projects through freeing them from income tax, reduction of customs tariffs for equipment and devices used for RES;

• Providing subsidies by the municipality in order to attract investments in the sector of RES;

• Reducing communal taxes for building capacity for production of energy from renewable sources;

• Considering the opportunities for making contracts for public - private partnership between municipalities and the private partner or consortium which will allow the municipalities an access to the private capital (such examples already exist in other regions of the country);

• Cooperation between the municipalities and the civil sector and using certain funds that the civil sector receives from the UNDP, Norwegian, German and Dutch Embassy, the Department for cooperation with civil sector in the General Secretariat of the Government of RM, etc., which are intended for utilising RES;

• Building an entrepreneurial spirit by the municipalities by initiating collaborations and projects in the field of RES which will be attractive for both the domestic and the foreign investors;

• Establishing a Fund for utilising RES in the Southeast planning region;

• Preparation of plans and strategies for easier access to the EU funds;

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• Increasing the cooperation on a regional level in order to facilitate the municipalities to become part of various networks of cooperation in the field of RES and energy efficiency and draw experiences through transfer of knowledge and good practices.

11.2. Steps for adoption and implementation of projects for utilising RES in the municipalities in the Southeast planning region of the Republic of Macedonia

During the realization of the replacement of electricity or thermal energy from conventional sources with energy generated from renewable sources, there must be a sequence of planning and implementation of activities. The sequence of activities is based on logical judgment for the needs of the municipality, as well as based on many positive experiences from the international projects funded in the EU, which can be adapted to the specific terms and conditions.

As a continuation, a draft methodology for implementation of a project from idea to an actual implementation and operation is given. The proposed methodology can serve as a guide for the municipalities in order to realize the efforts to obtain cheaper energy easily and in the same time efficiently protect the environment.

1. Analysis of the current problems with energy in the municipality. It is necessary to prepare an analysis on: consumption and electricity needs, thermal energy, history of the problem, measures that were taken to improve the situation as well as subjective and objective difficulties which affected the failure to improve the energy situation. It is necessary to make an estimation of the existing feasibility studies and project proposals which for some reason have never been realized. 2. Creating a list of neceseties for improving the energy balance in the municipality. It is necessary to prepare a list of necessities to improve the energy balance in the municipality. In addition, there should be a refinement of the contradictory conditions that define the possible directions for techno-economic improvement of the energy balance of the municipality. The analysis should separate the objects or areas which are the largest consumers of energy i.e. that have the lowest energy efficiency, i.e. the ones with major losses and explore the possibilities to change the energy from renewable sources that are available in the municipality. In addition there should be an analysis of the objects, i.e. of the settlements in terms of energy efficiency and financial benefits which would be gained by replacing electricity and thermal energy with energy generated from renewable sources. An estimation of financial investments in infrastructure, necessary resources, time of return of the assets should be made, as well as an estimation of the impact on the environment. First, there should be an analysis of the cost of energy. If there is detailed information on the energy consumed in the municipality, then there can be a detailed entering in the program for energy efficiency (EE) and renewable energy sources. Energy costs rarely appear only as an item in the municipal budget, so if they are separated and reviewed, it can be seen that they are among the biggest expenses of the municipality. The local authorities have all the information about the cost of the total energy which is consumed (electricity, wood, coal, gas, petroleum, oil) for the entire municipality. Through the analysis of these costs the critical consumers of energy can be seen, and thus programmatic priorities for action and investment can be made.

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The most important element of this step is to identify the goals as well as the problems of the municipality in terms of RES and EE. At first this step may seem difficult and impossible, but it is feasible and easily applicable. For example If one of the goals of the municipality is to increase the number of businesses, it means that it needs to provide a suitable office space that will not have a large consumption of energy, and thus the cost of businesses in that area would be smaller . The application of energy efficiency measures here are immediately connected with the utilization of RES in the construction of buildings, in the outer lighting, in the interior lighting and of course the heating and cooling of the building. A similar example can be applied for EE and RES in schools. In order the teaching process to function properly and not to disturb the comfort of students, the schools need to introduce measures of EE, a proper insulation and an efficient heating and cooling by utilising RES.

3. Creation of a team who will lead the overall process.

It is necessary to form a team that will lead the entire process, starting from the order, preparation and finalization of the projects until their implementation and monitoring their effectiveness and efficiency. This step requires full engagement of all the human resources from the municipality suitable with its profile, experience and engagements to the requirements which need to be met by the development and implementation of the project which main objectives are derived from the analysis carried out in steps 1 and 2. Projects related to energy must be led by one person or sector / department, which have the support of lawyers, accountants and other experts in the municipality. In order for the Department of EE and RES to be successful, there must be clear authorizations without any obstacles and implementation of projects. A head of the sector / department of EE and RES must be someone who will be fully dedicated to the management and leadership of EE and RES. A good example for that is the private sector. Many companies working in the field of EE and RES do not appoint the head of the sector / department of EE and RES from among the existing employees, but they employ an experienced person who has an appropriate and relevant experience and have proven himself/herself in the area. The local authorities do not always have the capacity, thus it should be taken in consideration that with a qualified and dedicated manager work goes faster, and the results can be seen quickly. According to the Energy Law, the municipality has a legal obligation according to which must prepare a three-year energy efficiency plan and submit it to the Energy Agency of the Republic of Macedonia. 4. Separation of the existing RES in the municipality.

As a next step it is necessary to allocate the existing RES on the territory of the municipality according to their specificities and possibilities for exploiting in order to improve the energy balance of the municipality (shown in Chapter 4 of the study), as well as adopting technologies for utilising RES (shown in Chapter 6 of the study).

5. Preparation of Feasibility Study (FS).

After introducing the available RES and the opportunities for their usage it is important to invest in the development of a detailed feasibility study (feasibility study). The development of this type of document requires hiring professionals who are familiar with the technology of using suitable RES. Taking all previous steps, the representative of the municipality (or team) will be able to set correctly the criteria for development of the study where not only technical, but also financial indicators of possible projects should be analyzed. The feasibility study should contain the following parameters of the project:

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Expected production of energy (thermal or electrical); Expected savings of fuel or energy (if conventional fuels or electricity are replaced); Expected reduction of greenhouse gases emission; Expected investment costs and costs for maintenance and operation of facilities; Period for growing of the investment; The net present value (NPV) of the project; Internal rate of return (IRR) of the project.

For some projects (such as the construction of small hydro power plants) a special attention of the acceptability of the project from an environmental point of view should be paid.

In case when the project is related to the use of renewable energy sources for heating of buildings, an audit to the heat consumption of the building is sufficient rather than a feasibility study.

6. Making a list of possible sources for financing the project, and then choosing the most appropriate source (or sources) of funding

The next step is to prepare a list of possible sources for financing the project, and then choose the most appropriate source (or sources) of funding. Several sources of funding can be chosen, i.e. they can be combined. While for the feasibility study the municipality can submit a request for funding, or use from their funds, in the actual implementation of the project for utilising RES different sources of funding are usually used (those that are current at the moment are described in Chapter 9). In most cases a well prepared feasibility study includes the given parameters of the specific project, which is quite enough for a submission of an application for funding the project to various domestic and / or international funds and commercial banks. In order to make an application for financial and operational programs, it is usually necessary to make technical documentation (see Step 7). When submitting an application for funding (particularly for operational programs) in most cases the user uses the services of consulting firms for the preparation of technical documentation, but in the presence and with an active participation of sufficiently competent and qualified staff from the municipality – as the beneficiary from the project at all levels of decision making.

It should be also mentioned that the municipal budget usually serves only to prepare and implement activities and processes in order to attract investments for the projects, and their actual implementation requires greater resources to be sought in other fund and / or bank sources.

7. Preparing and providing all the necessary documents for the project.

At this stage, it is necessary to prepare and provide all the necessary documents for the realization of the project. Depending on which source of renewable energy is considered, the documentation includes: obtaining approval for connecting to the distribution system given by the distribution network operator EVN based on a submitted request. The next step, depending on the installed capacity of the actual RES, is getting an authorization for construction of facilities for generating electricity from renewable sources with a nominal power above 10 MW. It takes a positive opinion of a study in order to estimate the impact on the environment so that a Decision for compliance for the project implementation is obtained as well as a positive opinion on the study for environmental protection for obtaining a Decision for an approval of the study.

8. Preparation of technical documentation, preparation of an action plan and selection of contractors.

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In this phase the preparation of technical documentation is done, as well as preparation of an action plan and selection of a contractor. It is necessary to pay serious attention to the preparation of the tender documentation and tender processes. The selected contractors should be able to provide high quality in executing the technical project and construction and installation activities.

9. Performance of the project and acquiring the status of preferential electricity from renewable energy sources.

At this stage the client - the investor should be provided with a supervisor who will check the stages of performance on his behalf, guarantee the quality and implementation of the project (the role of surveillance is defined in the Law on Construction of the Republic of Macedonia).

Along with the construction of the facility the procedure for obtaining the status of preferential producer of electricity from renewable energy sources should start which gives the right to conclude a contract for the use of feed-in tariffs for electricity production.

The investor can request for a license before obtaining an approval for using the energy facility, or before receiving the report for a completed technical inspection from the supervisory engineer for the facilities that do not require issuance of a permit for use, or before getting the decision for using the energy facility. The investor applies for issuing a temporary license to the Energy Regulatory Commission of the Republic of Macedonia.

The permission for using is issued by the Mayor of the municipality where the new construction is built. The technical review of the building is performed by a commission from the municipality within 15 days from the submission of the complete application.

The procedure for issuing a license starts at the Energy Regulatory Commission of the Republic of Macedonia on the day when the request for issuance of license is received.

The procedure for issuance of a temporary decision for gaining a status of a preferential producer of electricity generated from renewable energy sources begins by submitting a request to the Energy Regulatory Commission.

The decision to enter in the registry for power plants using renewable energy sources for electricity production is issued by the Agency for Energy of the Republic of Macedonia.

The owner of a temporary decision for gaining a status of a preferential producer of electricity generated from renewable energy sources in order to acquire the status of a preferential and use preferential tariff should submit a request to the Energy Regulatory Commission to issue a decision on gaining the status of preferential producer of electricity generated from renewable energy sources and also submit a request for using preferential tariff for electricity produced from renewable energy sources. In addition, the plant should be put into use within the period given in the temporary decision and the applicant should have a license for producing electricity for the power plant for which the preferential status is required.

The final phase of this step is signing a Contract with the operator on the electricity market and getting a Decision that guarantees the origin of electricity generated from renewable energy sources based on the request from the producer of electricity from renewable energy sources.

The Energy Agency of the Republic of Macedonia has published four handbooks on building power plants for producing electricity from renewable sources. The necessary steps in the process of building and acquiring the status of a preferential producer of electricity from solar energy, biomass,

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wind energy and hydropower are presented in details. They are available on the Agency's website (www.ea.gov.mk), in the section E-books, handbooks.

10. Monitoring the operation of the energy facility that operates the utilization of RES. Measurement and verification of results.

This step is often not realized, but it is essential in the overall evaluation of the implemented projects. This step is compulsory in the execution of the project in accordance with a contract with guaranteed results (ESCO contracts), and in such cases it is advisable that the measurement and the verification of the results is done by an outside company in order to avoid conflicts between the client and the contractor. Moreover, based on the measurement and the verification of the results analyses can be prepared that will help to improve and develop the project in order to increase the produced / saved energy and / or to reduce the cost for operation and maintenance. In the cases when a municipality realizes a project with short period for implementation and a better return, the result is also reducing greenhouse gas emissions and financial costs significantly. These results should be promoted among the domestic public in order to obtain greater public support for complete use of RES.

11. Audio-visual and expert recording of the results

In this phase an audio-visual and expert recording of the results is performed and the problems arising from the deficiencies of the equipment, the facilities, as well as from the RES are also identified (impermanence, longer pause of action, interrupting the performance of RES, etc.). These data have multi-task use and can be used to improve the performance of the existing system, to identify the opportunities for expanding capacity with the improved performances of RES, to serve the experts as an experience for other similar projects, to enable evaluation of the projected goals and objectives and techno-economic effects of the implemented project.

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from each renewable source of energy (Official Paper of RM no. 56/13). 22. Armenski S., Dimitrov K., Davkova K., Tashevski D. Dimitrov O. Municipal waste as an energy

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Statistical Office of RM, Skopje, May 2014 35. Statistical review: Agriculture, " Livestock breeding", the State Statistical Office of RM,

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Office, Skopje, March 2014 38. Census of Agriculture 2007, Book I, II and III, the State Statistical Office of the Republic of

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Environment and Physical Planning, February 2008 42. Landfill gas recovery and use throughout South East Europe, Final technical report, EnEffect,

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eastern planning region, Ministry of Environment and Physical Planning, Skopje, February 2010

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48. Lutovska M., Mijakovski V., Dimitrieska C., Mitrevski V., Current State of Wind Energy Utilization in the The Republic of Macedonia, 16th international symposium on thermal science and engineering of Serbia, October 22-25, 2013 – Sokobanja, Serbia.

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Skopje 56. Popovski K., Armenski S. Popovska E., Popovski-Vasilevska S., Biomass Energy in Macedonia,

Skopje 2010 57. Petrovski I., Filkoski R., Biomass energy in the municipalities of Berovo, Gevgelija and Struga,

UNDP Programme "Local Governance for Sustainable Human and Economic Development", Local development agencies in Berovo, Gevgelija and Struga, Initial Report, Skopje, January 2005

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biomass and wind energy, Phare Programme, january 2003. 60. Changing the habits – how to get to an energy efficient municipality – Handbook Analytica -

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62. GL Garrad Hassan, UK Onshore Wind – The True Cost Now and in the Future, presentation, Germany, 2011.

63. O. Cukaliev: „Production of straw and other agricultural residue in R. of Macedonia and possibilities for use as biofuel”, Workshop „Cereals straw and agricultural residue for bioenergy in New Member State and Candidate Countries”, 2-3 October, Novi Sad, Serbia.

64. Notification for the intention to carry out a project for wind park "Vardar Project" with a power of 50 MW in the Municipality of Bogdanci and the Municipality of Dojran, NeSa Energy, January 2013

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Graphic appendixes

Appendix 1. Hydroenergy

Potential locations for construction of mini and small hydropower plants in SEPR defined according to the Study for possible mini and small hydropower plants in SR Macedonia, Republic Committee for Energy of SR

Macedonia 1982

Potential locations for construction of HPP in the project "Vardar Valley" 4 of which are located in SEPR (HPP "Gradec" HPP "Miletkovo" HPP "Gjavato" and HPP "Gevgelija")

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Appendix 2. Biomass

Types of forests in the Southeast planning region

Forest – economy units within the PE "Macedonian Forests" on the territory of SEPR

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Appendix 3. Geothermal energy

Main geothermal fields in the Southeast planning region

Appendix 4. Wind energy

Maps of locations suitable for wind parks construction on the territory of SEPR

(10 - Bogdanci; 7 – Davidovo; 12 – Kozhuf, Flora)

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Appendix 5. Solar energy

Global solar radiation and potential for electricity production from photovoltaic panels set under optimal angle in Southeast planning region

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Part II: Study on the potential and utilization of renewable energy sources in the South-West region in the Republic of Bulgaria

This part of the Study is prepared by EnEfekt Konsult LLC - Sofija, for the Association of Southwestern municipalities in Bulgaria – Blagoevgrad.

Expert team which prepared the study:

1. Stanislav Andreev, grad. eng., Project Manager, EnEfekt Konsult LLC – Sofia, Republic of Bulgaria 2. Kamen Simeonov, grad. eng., Project Manager, EnEfekt Konsult LLC – Sofia, Republic of Bulgaria 3. Pavel Manchev, grad. oecc., Deputy Manager, Centre for Energy Efficiency - EnEfekt, Sofia, Republic of Bulgaria

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1. Introduction

When it comes to determining its policy for development, each municipal administration must take into account the three main priorities of the European Commission in regard to climatic changes and energy, listed in the Europe 2020 Strategy:

- increase of energetic efficiency by 20%;

- increase of the renewable energy sources (RES) energy share by 20%;

- decrease of greenhouse gas emissions by 20%.

The primary goal of the current research is to assist in the increase of municipal employee capacity, as well as private investors and population within the municipalities of the south-west region in respect to possibilities for realization of RES energy production projects. The research covers the territories of the following municipalities: Bansko, Belitsa, Blagoevgrad, Boboshevo, Gotse Delchev, Garmen, Kocherinovo, Kresna, Petrich, Razlog, Rila, Sandanski, Satovcha, Simitli, Strumyani, Treklyano, and Hadzhidimovo (fig. 1).

Figure 1. Location of mentioned municipalities

The research does not aim to show the theoretical potential of different types of RES within the territory of the municipalities which do not have significant practical value, but rather to demonstrate to all stakeholders how the available resources can be used. The information in the document is not meant for technical and financial specialists but rather to the general public by presenting simple, synthesized information with a practical focus towards the realisation of RES utilization projects within the specific territories. After becoming familiar with the information in this document, the stakeholders will have the opportunity to pick priority projects, concerning individual targets, for which they can complete certain preliminary research and planning activities. In accordance to European policy, the role of municipalities is to create favourable conditions for the realization of renewable energy projects and to serve as an example for the local public.

The task set by the authors of this document is to present the following information to target groups:

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- available resources from RES which can be utilized within the territory of each municipality;

- suitable technology for the use of available resources;

- funding opportunities for RES utilization projects.

The method for the preparation of the current document is based on the following steps:

Step 1: Study and analysis of available information, in particular: municipal energy programmes98; additional documents (reports, cases, studies, etc., concerning RES in the examined and similar regions and/or municipalities have been studied and the acquired data has been analysed, verified, and summarized); national action plan for RES99; normative acts in the sphere of energetics, energy efficiency, and RES.

Step 2: Filling in any missing pieces of information: based on summarized and analysed during Step 1 data, questionnaires and interview structure were prepared. Questionnaires were filled in during specially organised meetings with specialists from different municipalities.

Step 3: Processing of information: additional analyses have been conducted by combining the information gathered during the previous two stages. The data from different sources were compared and if any mistakes were found additional studies and analysis were carried out in order to determine the more reliable sources of information.

Step 4: Analysis of financial mechanisms: after viewing available RES within the territories of the municipalities and the most relevant technologies from a financial and technical view, an analysis of the existing and possible future plans for funding projects of such nature was prepared.

Step 5: Guidance for project realization: during this stage, basing on the already summarized information (available RES, utilization technologies, regulatory frame, funding mechanisms), a short guide was prepared, describing the necessary steps for the realization of RES utilization projects on the territory of the selected municipalities.

2. General information about RES in the targeted municipalities

In this section we have briefly described the potential RES for each of the selected municipalities with different sources divided in the following categories:

- Geothermal power. Hydro-geothermal sources within the territory of the municipalities have been examined. No attention has been given to the low potential of soil energy. An example of this type of energy is presented in Chapter 3.1

- Solar power. The potential of each municipality is not thoroughly examined in this chapter due to the reduced volume of this document. Two examples are presented in chapter 3.2 – one for electric energy and one for thermal energy production. Each

98

In accordance with Bulgarian legislation, each municipality is obliged to submit a Municipal Energy Programme and annually report to the Bulgarian Agency for Sustainable Energy Development about the performance of the suggested in the programme activities. A part of the content of these programmes is information about the present RES within the territory of the municipality, as well as opportunities for their utilization. 99

The document has been developed in accordance with Directive 2009/28/EO and demonstrates national policies and common national goals for the “20-20-20” goals of the EU.

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municipality can independently decide if they are interested in participating in projects of such nature.

- Wind power. The potential of each municipality is not thoroughly examined in this chapter due to the reduced volume of this document. Taking into account the many protected areas in the targeted municipalities, as well as Decision No. EM-03 from 01.07.2014 under SEWRC for accession of sites for production of electric energy from renewable sources, in this chapter the focus is on the general summary of protected areas which have restrictions when it comes to constructing wind parks.

- Hydropower. Brief description of available data for rivers, dams, and gravitational water supply systems within the territories of the examined municipalities.

- Biomass. Opportunities for wooden biomass utilization have been generally investigated.

- Biogas. Description of possible sources of biogas generation on the territory of the selected municipalities, and in particular: landfills for municipal solid wastes (MSW), livestock breeding and agricultural wastes, waste water treatment plants.

2.1 Bansko

General information

Bansko Municipality is located in South-western Bulgaria and covers a part of Pirin Mountain, parts of Razlozhka Hollow, Momina Klisura Gorge of Mesta River and parts of Dabrashki section of Western Rhodopes. The landscape ranges from plains to hills. The municipality is comprised of 8 settlements: the towns of Bansko and Dobrinishte and the villages of Mesta, Filipovo, Kremen, Obidim, Osenovo, and Gostun. The Bansko Municipality neighbours with the municipalities of Razlog, Belitsa, Velingrad, Garmen, Gotse Delchev, Sandanski, and Kresna. The total area of the municipality is 496.21 km2. According to NSI data, the population of the municipality on 01.02.2011 is 13.125 inhabitants.100

Geothermal energy

The available resources on the territory of the municipality go as follows:

Dobrinishte Source – included under No. 24 in the list of mineral water sites – exclusive state property (ESP). In 2011 the site was presented to Bansko Municipality for management and use for a period of 25 years. Its total exploitation flow adds up to 16.36 l/s, and the temperatures of different drills and springs vary between 31.8оC and 43.5оC. Dobrinishte Village has been declared a SPA resort of regional importance. To this moment, 7.7 l/s worth of permits have been issued, leaving 7.8 l/s unused. The potential for thermal hydropower has not been utilized.

Southwest of the town of Bansko, in the Martva Polyana Locality, at approximately 1.050 m of altitude, there are two mineral springs and one drilling well. Their total flow is roughly 60 l/sec and their average temperature - 17°C. The site is public municipal property. There is no data for current thermal energy consumers in the vicinity of the source.

100

All data for population numbers in the target municipalities are based on the national census of 2011 and are valid by 01.02.2011

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Solar energy

Within the territory of Filipovo Village there is a private photovoltaic electric plant. Examples for solar power harnessing are presented in chapter 3.2

Wind power

Winds in the hollow range from weak to moderate with an average velocity of 1 m/s during the warm half of the year and 40 m/s in the high mountainous part during winter. Calm weather periods take up about 40% for the low parts of the mountain and 10-15% in the high parts.

Approximately 31% of the municipality’s territory belongs to Pirin National Park. Within the park range and within the territory of the municipality is the Yulen Reserve. More information on wind power utilization is presented in chapter 3.3.

Hydropower

The Mesta River runs through the territory of the municipality with right tributaries Disilitsa, Bezbozhka River, Retizhe, Kremenska River, and right tributaries Matenitsa, Osenovska Reka, and Glazne.

There are two dams on the territory of the municipality: Belizmata Dam – municipal property, 84.000m3, and Krinets Dam – property of Napoitelni Sistemi EOOD, Gotse Delchev branch, 105.000 m3, both of which are being used for irrigation.

Three small HPPs have been constructed within the territory of Bansko Municipality – in the vicinity of the Gostun, Filipovo, and Kremen Villages. The most significant site is the Retizhe Cascade located within the territory of Kremen Village and comprising three MHPPs stationed at the rivers of Mesta, Disilitsa, Osenovska, Vlahinska, Lakenska, Matan Dere, Perleshka, etc.

For municipal water supply Bansko uses sources with a total flow of 78 l/sec and Dobrinishte – 14 l/s. There is upcoming funding and project realization for additional water supply from Karamanitsa to Bansko for an additional 40 l/s.

During the time of the study, data for gravitational water supply systems on the territory of the municipality were not presented. It is recommended that their potential for electric energy production through MHPPs is researched.

Biomass

The total area of the forest fund is 27.655 ha (more than 75% of the municipal territory). It is managed by two companies – State Forestry Dobrinishte and DGS Mesta, as well as the Pirin National Park Directorate. Coniferous vegetation is prevailing in the region.

Logging and wood processing are wide spread activities on the territory of the municipality. It can be said that a large portion of the available for harvest timber is being utilized.

The first stage of establishing a heating plant based on wood biomass in the town of Bansko with a capacity of 5 MW began in the beginning of 2006. During the same year, construction of heat transportation network and supply for its first consumers began. The heating plant in Bansko is the first biomass-based (wood chips) plant in Bulgaria used for centralized heating. The second stage of the project began in May 2008 when the capacity of the plant was increased to 10 MW. A decision of the Municipal Council from 2009 approved the realization of the Ecological Biomass-Based Heating System of Dobrinishte project on the basis of public-private partnership (PPP). The constructed heating system covers most of the municipal buildings as well as hotels, enterprises, and private

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households. Industrial wastes from wood processing plants are, to a large degree, being utilized further which significantly reduces their share as pure waste.

Biogas

Agriculture. During recent years there has been an increase in the numbers of farm animals and the area of arable lands. Animals on the territory of the municipality are predominantly pastorally bred. There is a lack of large swine, cow, and poultry farms which are a potential source of manure for the production of biogas. In the structure of areas under crops, the largest share of land is held by lands used for the production of cereal cultures – wheat and rye (app. 2.060 decares), the second largest share is potatoes (app. 2500 decares), followed by maize (app. 1.300 decares), vegetables (app. 850 decares), and from the technical cultures family – tobacco (app. 200 decares). Permanent crops take up a small area and are mainly comprised of small apple and pear gardens (a total of 200 decares).

Landfills. The municipality is serviced by the MSW landfill of Razlog, while the old landfills of Bansko and Dobrinishte have no potential for landfill gas generation.

Wastewaters. Currently there is a project in motion called “Rehabilitation of water supply and sewage systems of Bansko through construction of WWTP”. It is valued at about 90 million BGN and is funded by Operational Programme Environment. The project plans the construction of a new WWTP with a capacity of 29 980 equivalent residential units (ERU) with a project horizon of 2034 and rehabilitation and completion of the water and sewage network of Bansko. There is also prepared documentation for a project “Completion of Dobrinishte WWTP”. The project has plans for reconstruction, modernisation, and expansion of the water supply and sewage network and their adjacent facilities in Dobrinishte. The project has predicted the construction of a new WWTP with a capacity of 8 635 equivalent residential units. Biogas production from the sedimentation of the treatment plants is not possible.

2.2 Belitsa

General information

Belasitsa Municipality is located in the north-eastern part of the district of Bulgaria with a surface of 293,5 km2. It borders the Bansko, Razlog, Samokov, Yakoruda, and Velingrad Municipalities. It is comprised of 13 settlements – its municipal centre, the town of Belasitsa, and 12 villages spread throughout the south part of the municipality. Landscape ranges from mountainous to semi-mountainous represented by parts of Rila and Western Rhodopes, as well as the Upper Mesta River Valley. Average altitude is 1351 m with a displacement of 450 m, which has a negative effect on the general economic and infrastructural development of the municipality, as well as the rural network. According to NSI by 01.02.2011, the population of Belasitsa Municipality is 9.927 people.

Geothermal power

Famous for the municipality is the drill water source in the town of Belasitsa, which provides mineral water with a temperature of 26°C which has a low content of dissolved mineral substances. Its predominant ions give it a hydro carbonate sodium characteristic with increased concentrations of fluorine and metasilicium acid. The water can be used for external SPA procedures and for sport-prophylactic purposes, as well as for bottling. Utilization of the water’s temperature for the purpose of air-conditioning can be achieved through a heat pump.

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There are findings of thermal waters of local importance in the villages of Kraishte and Dagonovo which have not been researched.

Solar power

During the preparation of this document no data was found concerning established photovoltaic plants on the territory of the municipality. Examples of solar power utilization are presented in Chapter 3.2

Wind power

There is no data for research on the topics of wind speed and wind direction in the municipality of Belasitsa or for any constructed wind farms. The northern part of the municipal territory falls within the borders of Rila National Park.

Hydropower

The municipality’s water resources are formed by Mesta River and its tributaries Belichka, Votarchka, Babeshka, Zlataritsa, Palatik. Abundant precipitation, extensive snow retention and available forest resources account for the freshet of rivers. Private investors are expressing interest in constructing small HPPs and there already is one on the Stankova Reka River.

Biomass

The total area of the forest fund is 21.944 ha or 74,8% of the municipal territory. There are 40 logging and wood-processing companies operating in the municipality. Some of the main products of these activities are lumber, furniture, paper, and paper products. Waste timber poses a major problem since it causes significant environmental damage. These leftover materials can be used as a raw material for the production of briquettes, thus reducing the amount of timber used for household heating and for the pulp and paper industry.

Biogass

Agriculture. The larger portion of households are included in small agricultural household economies but their production is mainly used to satisfy their personal needs. The main part of the arable land is occupied by cultures such as potatoes, beans, maize, tobacco, etc. Almost all types of domestic animals are bread in the municipality in small family farms with no market orientation, hence only excess animals are being sold.

Landfills. The municipality generates roughly 5.000 tonnes of wastes per year. There is no landfill for MSW suitable for landfill gas production.

Wastewaters. Towns and villages do not possess individual wastewater treatment plants. There is a local wastewater treatment plant in the Semkovo Resort, adjusted to the resort’s current capacity. There are plans for the construction of small WWTPs but due to the low number of municipal population, biogas production from sediments is impossible.

2.3 Blagoevgrad

General information

The municipality of Blagoevgrad is the largest one in terms of population and third largest in terms of territory in the Blagoevgrad District (with an area of 620 km2). Situated in South-western Bulgaria, in the westernmost part of the Rila-Rhodopes massif and is comprised of 26 settlements (with a

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population of 77.441 inhabitants according to data from February 2011). The municipal centre of Blagoevgrad is located in the vicinity of Struma River, at an altitude of 360 m, and next to the south-western slopes of Rila on European route E-79, 100 kilometres south of Sofia.

Geothermal power

Available resources of the municipality go as follows:

Blagoevgrad Source – included as No.10 in the list of mineral water sources - ESP. In 2011 the source was given to the municipality of Blagoevgrad for management and use for a 25-year period. Its total exploitation flow is 13,5 l/s with temperatures of different drills and springs ranging between 54оC and 55оC. To this moment 1,0 l/s worth of permits have been issued for exploitation, leaving 12,5 l/s unused. The potential for thermal hydropower has not been utilized.

Blagoevgrad – Struma River Source – included as No.11 in the list of mineral water sources - ESP. The source has been given to the municipality of Blagoevgrad for management and use. It is located approximately 1.500 to the west of the town borders. Its total exploitation flow amounts to 6.3 l/s with water temperatures ranging between 57,8о and 63оC. There is no data for issued permits for exploitation.

Blagoevgrad – Elenovo Source is public municipal property (PMP). The resource from that spring, defined in 2001 with order from the Minister of Environment, has a flow of 1,043 l/s with a temperature of 21оC. The order is valid for a 6-year period which is now expired, i.e. the resource is yet to be verified once more.

It is recommended that the opportunities for a better thermal hydropower utilization be researched.

Solar power

During the preparation of this document no data was found concerning established photovoltaic plants on the territory of the municipality. Examples of solar power utilization are presented in Chapter 3.2

Wind power

The south-western parts of Rila National Park fall within the territory of the municipality or 7.178 ha when put in numbers. More information concerning wind power utilization is presented in Chapter 3.3.

Hydropower

The main water artery in the region is the Struma River which is the largest river in South-West Bulgaria. The river network is thick and is formed primarily by its tributaries – Kopriven, Rilska, Blagoevgradska Bistritsa, Lisiiska River, Drenovska River, Logodashka River, Brezhanska, Senokoska, Gradevska, Stara, Sushichna, Breznishka. These rivers are characterized by spring freshet which influences their use. An additional obstacle is the level of pollution of some of the tributaries.

Multiple, mainly small dams have been constructed within the region. The biggest dam in the municipality is Stoykovtsi with an area of 130 ha.

Drinking water is supplied by exposed catchments along Bistritsa River, exposed catchments in the Chakalitsa Locality in Rila and pump stations along the Struma and Bistritsa River.

The available water resources are properly utilized for the production of electrical energy by the Blagoevgradska Bistritsa Cascade, comprised of 8 MHPPs and Slavova HPP.

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Biomass

The total area of the municipality’s forest fund is 27.179 ha. That area is almost equally distributed between deciduous perennial plants (beech, winter oak, Hungarian oak, hornbeam, aspen, birch, acacia, pubescent oak, oriental hornbeam, and other) – 54,1% and coniferous (white pine, black pine, spruce, fir, Macedonian pine, and other) – 45,9%.

Biomass-based interest for heating in Blagoevgrad is not present, since the town is supplied with gas. Supply comes from a high-way transportation gas-line bound for Greece. There are plans for future development of the urban gas transmission system both for the needs of the city and for future industrial companies as well.

Biogas

Agriculture. The largest share of plants planted for agricultural purposes in the municipality goes to the cereal and wheat cultures with wheat-sown area of 402 ha, barley-sown area of 100 ha and rye-sown area of 100 ha, closely followed by technical cultures – sunflower, vegetables and perennial crops. In recent years there has been a significant decrease of areas sown with tobacco. The registered agricultural producers were 483 in the same year. Pastoral animal husbandry is a prevailing occupation – mostly cattle and sheep breeding.

Landfills. The municipal landfill for MSW was closed in 2012. There have been cases of ignition which lead to the conclusion that the landfill gas utilization potential is low and the landfill is a hazard to the environment. There are plans for a regional landfill which will service the municipalities of Blagoevgrad, Simitli, Rila, Boboshevo, and Kocherinovo. At this stage it is impossible to evaluate the potential of the new regional landfill for catching and utilizing landfill gas. By taking into consideration the expected amounts of incoming wastes, one can make precise estimates and during the process of landfill exploitation options for electric and/or thermal energy can be produced after reclamation of the initial cell (no earlier than 7 years after exploitation begins).

Wastewaters. The town has a municipal wastewater treatment plant (MWWTP). According to latest available data of the NSI for 2009, the total outflowing wastewaters volume for the municipality is 9551,4 thousand m3/year. The outflowing treated waters, including processed waters for 2009, amount to 9299,6 thousand m3/year. With the exception of Blagoevgrad, all settlements within the territorial range have been constructed without a WWTP. It is recommended to do an analysis of the sediments in Blagoevgrad MWWTP for the purpose of assessing whether there is a possibility for methane catchment and utilization.

2.4 Boboshevo

General information

Boboshevo Municipality is located in the south-eastern part of the Kysutendil District in the naturally-formed Boboshevska Yaka Region, located on the banks of the rivers Struma and Dzherman. It neighbours the Rila Mountain to the east, Nevestino Municipality to the west, Kocherinovo Municipality to the south and the Dupnitsa and Bobov Dol Municipalities to the north. In physio-geographic aspect, the municipality covers a part of the Rila Mountain, the northern slopes of Ruen Mountain and a proportion of the fault valley of the Struma River. Its location determines its diverse landscape – mountainous and semi-mountainous. The following settlements constitute the entirety of the Boboshevo Municipality: Boboshevo Town, the administrative centre, and Slatino, Usoyka,

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Blazhievo, Kamenik, Badino, Sopovo, Visoka Mogila, Vukovo, Dobrovo, and Skrino Villages. The total population of the municipality is 2.870 people (data from NSI, 2011).

Geothermal power

The sole source of mineral waters is the mineral spring in Slatino Village with a rich content of chloride, sodium, potassium, and carbon dioxide. The water temperature remains constant - 21оC. According to unofficial data, the flow of the source is roughly 9 l/s. In the presence of consumers, water can be used for heating through heat pump units.

Solar power

There is no data for constructed photovoltaic plants on the territory of the municipality. There is only a single prepared and approved work plan with an issued construction permit for a 100 kW photovoltaic plant on the territory of Visoka Mogila Village as well as for a similar plant in Usoyka Village. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

There is no data for research on the topics of wind speed and wind direction in the municipality of Boboshevo or for any constructed wind farms. Wind power utilization potential is defined as low.

Hydropower

The Struma River is the biggest source of water mechanics within the municipal boundaries. The town of Boboshevo is located on the two banks of the river. It is characterized by highly fluctuating and inconsistent outflow regime. The hydrological regime of the valley is characterized with a period of high water levels from the middle of February until the beginning of July and a period of low water levels from the beginning of July until the end of October. During spring, there are 40-50 water surges on annual averages average along Struma and its tributaries. Some of them cause floods and beach erosion.

Dzherman River is a left tributary of Struma with an inflowing near the town of Boboshevo. It springs from the Seven Rila Lakes in the Skakavitsa part of Rila and is defines as the most significant left tributary of Struma. The length of the river is 47 km, with a catchment of 397 km2 and an average annual outflow of 347 m3/m2. The waters of Slatinska River and the rivers from Vlahina Mountain, passing through the villages of Blazhievo and Sopovo, join waters of Dzherman River within the boundaries of Boboshevo Municipality.

Despite the conducted research and expressed investment intentions by the private sector, a HPP has not been constructed on the territory of the municipality.

There is no data for the availability of gravitational water supply systems

Biomass

The total area of the municipality’s forest fund is 6.103 ha. Coniferous forests are predominating, primarily black and white pine. They cover an area of 1.146 ha, while deciduous species are represented by the sessile oak, Oriental hornbeam, and others, only extend for an area of 198 ha. The remaining territories are reconstruction forests – 1.140 ha, sprout forests – 949 ha, and forest pastures – 224 ha.

The municipality has two wood carpentry workshops as well as a workshop for producing briquettes from timber. The local population uses firewood for heating.

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Biogas

Agriculture. There are no large animal breeding companies. Domestic animals are being bred mainly in small private farms. When it comes to plantations, efforts are being concentrated on wheat, barley, and maize production but if taking into consideration that the sizes of farmed areas are not large enough, the potential for biogas production from manure and agricultural wastes is evaluated as low. A modern installation for biogas production would have to be fed the entire resource of animal and plant wastes of the municipality.

Landfills. There is a landfill in the municipality that is about to be closed. All household wastes will be transported to the landfill of Blagoevgrad Town. The acting landfill does not have potential for biogas extraction due to its small capacity.

Wastewaters. There are plans for construction of a WWTP but due to the small population of the municipality, biogas production from sedimentation is impossible.

2.5 Gotse Delchev

General information

Gotse Delchev Municipality is located in South-western Bulgaria alongside the Mesta River. The region is mainly mountainous and settles most of the Gotse Delchev Hollow, as well as parts of the Pirin and Rhodopes Mountains. The total area of the municipality is 315,8 km2. It borders Hadzhidimovo Municipality to the south, Garmen to the east, Bansko to the north, and Sandanski to the west. Its administrative centre is the town of Gotse Delchev. The following settlements constitute the municipality: Gotse Delchev and the Banichan, Delchevo, Borovo, Dobrotino, Breznitsa, Kornitsa, Bukovo, Lazhnitsa, Gospodintsi, and Musomishta Villages. The landscape of the municipality ranges from high mountains to hollows. Parts of Southeast Pirin, Western Rhodopes, Gotse Delchev hollow and lower stream of Mesta River, are some of the geographic landmarks of the region. According to the latest national count by 01.02.2011, the population of the municipality is 31.236 people.

Geothermal energy

The municipality possesses huge potential when it comes to thermal waters flow. Water temperatures vary between 12оC and 22оC with springs being classified as cold. These springs are spread out through the region of the Musomishte and Banichan Villages. Mineral water from Banichan Village is cold, mildly mineralized, with traces of hydro carbonates, sodium and fluorine. It is used for bottling by a company called Pirin Spring AD. It is recommended that the company investigates the possibility for water use in heat pump units for heating and cooling. Water must go through an intermediate heat exchanger in order to preserve its qualities. Mineral water from Musomishte Village has a very interesting quality – it is poor in sodium. It is karst water from a unique region of the country located in a pine forest near the village. Hydro carbonate, calcium and magnesium ions preponderate in the composition of the water. Should consumer demand be expressed, the water can be used for heating and cooling through a heat pump

Solar power

During the preparation of this document no data was found concerning established photovoltaic plants on the territory of the municipality. Examples for solar power utilization are presented in Chapter 3.2.

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Wind power

Western and north-western winds are typical for the municipality of Gotse Delchev. There is no data for research on the topic of wind speed and direction in order to construct wind parks.

Parts of Pirin National Park, as well as the Orelyak, Ali Botush, Tamnata Gora, Konski Dol, and Slavyanka Reserves fall under the municipality’s jurisdiction.

Hydropower

The water resource base of the municipality is extremely rich and is determined by the Mesta River and its 13 tributaries, as well as the high mountainous lakes (Breznishki, Kornishki), formed by the south circques of Pirin, multiple artificial water reservoirs and mineral springs. The main outflow artery is the Mesta River. The territory of the municipality is mostly drained by the right tributaries of Mesta, one of which is Nevroskopska River, which flows straight through Gotse Delchev. When observing the annual outflow distribution, one can see low water levels during summer and autumn and high water levels during winter and spring. The water resources of the municipality are primarily used for drinking waters and household supplying, for industrial and agricultural purposes. Lakes have glacial origin and are situated on the south-eastern slopes of the Pirin Mountain. The Breznishka (Tufcha) and Nevroskopska River are fed by these lakes. In the foothills of Pirin, just abouve Gotse Delchev, there are three reservoirs. Private investors are expressing interest towards constructing HPP near the Breznitsa and Kornitsa Villages.

The main water sources for the general population are located to the south-west of Gotse Delchev at altitudes ranging from 1.500 m to 2.300 m above the sea level. There are 3 gravitational water mains with the following water sources: Barakata and Sofiyata Springs; the catchment of Tufcha River (steel); Papaz Chair Spring (steel). The state of all three water supply systems is poor which causes frequent maintenance activities. It can be said that after a full reclamation of drinking water pipelines, the potential for MHPP installation at mitigation shafts is high.

Biomass

The total area of the municipal forest fund is 19.700 ha. State forests are maintained and managed by SFA Gotse Delchev. There is no data for the construction of a large biofuels factory (wood pellets or timber) on the territory of the municipality. Regardless of this fact, the school in Breznitsa Village, Detelina Kindergarten in Gotse Delchev and Ivan Skenderov Hospital use wood biomass for heating, so it is safe to say that the municipality has experience in carrying our projects of such nature and should continue to do so. It is recommended to research the possibility of constructing a factory producing wooden pellets.

Biogas

Agriculture. Animal husbandry is developing well in the municipality – cattle, cows, sheep, goats, swine, and poultry are being bred. Sheep, cattle and poultry breeding has experienced an increase in recent years, but there is a decrease in goat breeding. Small farms are a typical sight. Tobacco production is a main occupation for a large proportion of the population. The main agricultural cultures are wheat, corn, potatoes, beans, vines, pepper, tomatoes, apples, and sunflower.

It is recommended to conduct an analysis of the available agricultural wastes and to do research on the possibility of constructing an installation for biogas production.

Landfills. The existing landfill has a regional status and provides services for three municipalities – Gotse Delchev, Garmen, and Hadzhidimovo (or approximately 68.000 residents). Gotse Delchev Municipality manages the landfill. It was constructed in the 1999-2000 period and is one of the most

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modern landfills in the country. The project is funded by the PHARE Programme. During 2013, the landfill has accepted 13.457 tonnes of MSW and 380 tonnes of industrial wastes. The landfill is divided into three cells, the first of which needs to undergo a re-cultivation, the second of which is being exploited, and the third is used for construction and inert wastes. The international practice and the conducted research on the topic of utilizing landfill gas on the territory of Bulgaria show that the landfill’s capacity is below the minimum for an economically cost-effective investment in constructing an installation for landfill gas generation. But only after re-cultivating the first cell and installing a torch for combusting the generated gas will there be sufficient data about quality and calorific value. Then one can finally make an evaluation of the installation of a co-generation module with electric power no higher than 80 kW.

Wastewaters. To this moment there are no WWTPs on the territory of Gotse Delchev. A pre-investment research was prepared, which predicts that sediments from the WTTP will be stored and afterwards used for reclamation of the regional landfill. Due to the small capacity of the WWTP, there are no plans for biogas generation from sedimentation, since such an investment would not be cost-effective.

2.6 Garmen

General information

Garmen Municipality is located in the south-eastern part of the Blagoevgrad District. It borders the municipalities of Satovcha, Bansko, Hadzhidimovo, Gotse Delchev, and Velingrad, and is one of the constituent municipalities of the district. Garmen Village is located in a mountainous region and is the administrative centre of the municipality, which includes 16 settlements and by 01.01.2011 has a population of 14.981 people. The local economic structure is poorly presented in respect to agricultural and industrial developments and competitiveness. Leading sectors are light industry, apparel industry, and shoe industry. Extractive industry is connected to wood material collection, tilling materials in the region of the Krushevo, Oreshe, and Dolno Dryanovo Villages, lignite coal in the Kanina Mine, Baldevo Village, and diatomite in Garmen Village.

Geothermal energy

The Ognyanovo – Garmen Source – included as No. 53 in the list of mineral water sources – ESP, has been given to Garmen Municipality for management and use. The spring is divided into two areas. The western drainage zone (Selskite bani) consistс of three springs and one drilling with a total exploitation flow of 6.9 l/s and temperature between 36оC and 38оC. The unused resource is 4,3 l/s. The east drainage zone (Gradskite bani) consists of 15 springs and a drilling with a total exploitation flow of 18,3 l/s and temperature between 30оC and 39оC. The unused resource is 11,42 l/s. Almost all springs have the same chemical composition – hydro carbonate sulphates and calcium nitrates, with a mineralization of 0,23 to 0,28 g/l. Typical for these waters is the increased content of fluorine – ranging from 3,5 to 4,5 mg/l. The mineral baths of Ognyanovo are a designated SPA resort of national importance.

The water temperature can be used for heating or through a heat pump, or directly in the presence of floor heating.

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Solar power

During the preparation of this document no data was found concerning established photovoltaic plants on the territory of the municipality. Examples for solar power utilization are presented in Chapter 3.2

Wind power

There is no data for research on the topic of wind speed and direction in order to construct wind parks in the municipality.

The Tamnata Gora Reserve and Beslet Protected Area are located within the municipal borders.

Hydropower

Water resources of the municipality are provided by the rivers of Mesta, Kanina, Vishteritsa, and Varbitsa along with their tributaries. They are fed by precipitation and have highest water levels in spring. Most of them, despite their inconsistent flow, have a permanent water outflow. To this moment, there is an issued permit for the construction of a TPP on the territory of the municipality but construction has not started.

Villages in the lower fields are supplied with drinking water from Tufcha River. Some of the villages, such as Garmen and Debren for example, have additional independent water sources. Ognyanovo and Marchevo Villages get their mineral water from the Ognyanovo Baths and Dabnitsa Village – via a pump from a drilling of Mesta River. The mountainous villages have their own water sources, from which they are supplied gravitationally with the exception of Osikovo and Skrebatno Villages which use pumps. It is recommended to prepare a list of characteristics and the condition of gravitational water supply systems for the purpose of researching possibilities for a MWTT at their mitigation shafts.

Biomass

The forest fund of the Garmen Municipality amounts to a total of 29.025 ha. State forests are managed by SFA Garmen. Coniferous forests are predominant for the region (86% of the total forest fund), which cover the higher part of the forestry’s territory. There are approximately 15 enterprises dealing with logging and wood processing. Wooden building materials and furniture details are being produced. A large portion of the population uses lumber for heating. Two factories are producing pellets.

The school and kindergarten in Garmen Village are using naphtha for heating, but it is recommended to search for funds for projects focused on changing their heating basis. It is not recommended to perform activities concerning heating installations without the sites being insulated first.

Biogas

Agriculture. Animal husbandry is primarily represented by sheep and cattle breeding, followed by poultry and swine breeding. There are no large farms in the region and most animals are being pastorally bred. However, there is a project for construction of a large cow farm which has the potential of being a source of high quantities of manure. Main agricultural crops are tobacco and potatoes. Research on the possibilities for biogas production from agricultural wastes is a main priority for the municipality during the new programme period (2014-2020).

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Landfills. Household wastes are mainly generated within the territory of the municipality. Wastes from agricultural activities hold a considerable share – manure, plant wastes, etc. Wastes are being disposed in a regional landfill in Gotse Delchev. There is no potential for landfill gas utilization.

Wastewaters. In order to treat wastewaters generated by the population of the Garmen Municipality, a WWTP needs to be constructed. Due to the small number of inhabitants, biogas production from sedimentation is not technically possible.

2.7 Kocherinovo

General information

Eleven settlements constitute the municipality of Kocherinovo, including the municipal centre of Kocherinovo Town and the villages of Stob, Porominovo, Barakovo, Mursalevo, Frolosh, Tsarvishte, Dragodan, Borovets, Buranovo, and Krumovo. The territory of the municipality covers an area of 182 km2, it borders Boboshevo Municipality to the north, Rila Municipality to the east, Blagoevgrad Municipality to the south-west. The municipality is 10 km away from Blagoevgrad, 25 km from Dupnitsa, and 50 km away from its district centre, Kyustendil. The landscape of Kocherinovo is mixed with different elements – mountains, hills, and planes. The mountainous and semi-mountainous territories take up 74 km2 or 40,5% of its total area. The average altitude is 633,2 m. The relief is favourable for developing agriculture and forestry (including logging and wood processing), tourism, and animal husbandry. According to official statistical data from the national census of 2011, the population of Kocherinovo is 5.214 people.

Geothermal power

There are no geothermal springs on the territory of the municipality. There is no potential for utilizing hydro-geothermal power.

Solar power

During this research, it was established that there is only small photovoltaic plant. Examples for solar power utilization are presented in Chapter 3.2

Wind power

There is no data for research on the topic of wind speed and direction in order to construct wind parks in the municipality. Potential for wind power in the region is defined as low.

Hydropower

Struma River passes through the territory of the municipality, giving the region its typical high water levels during the period when snow melts in the mountains as well as during spring and autumn rainfalls. Two of Struma’s tributaries join it on the territory of Kocherinovo – Kopriven and Rilska. The catchment basin of Kopriven Riven entirely falls under the jurisdiction of the municipality. It flows through Frolosh Village and close to Tsarvishte and Gorni Dragodan Villages.

To this moment, there is a private HPP constructed on the river of Rilska but it has not been commissioned.

There are 14 micro-dams constructed throughout the municipal territory which are used for irrigation of agricultural crops. The Mursalevo – Borovets – Krumuvo gravitational water supply

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system provides water for several villages in Kocherinovo. Its catchment is located in the Ribovitsa Localicy, Rila Municipality.

It is recommended to do a research on the possibilities for constructing small HPP alongside the existing gravitational water supply system.

Biomass

Kocherinovo’s forest fund covers an area of 7.385 ha or 40,51% of the municipal territory. Perennial vegetation is represented mostly by young plantations of white and black pine and alder alongside the river bank. Despite the availability of a sufficient forest fund, the logging industry is underdeveloped. This is due to the fact that there are no large-scale consumers of timber (wood processing enterprises, biofuel production factories). It is recommended that the unused resource be utilized on a local level for heating of municipal sites and possibly for production of wooden pellets and wood chips.

Biogas

Agriculture. Animal husbandry in the region is mostly represented by meat production through the cattle breeding, swine breeding and milk production industries. The geographic conditions and the landscape and drought-resistant vegetation in particular provide favourable conditions for animal husbandry. To this moment animal breeding is done primarily in private farms with pastoral breeding during the summer which is an obstacle for using their excrements for biogas production in large installations.

About 50 % of the municipal territory is agricultural lands or 91.191 decares. Of the total agricultural fond 50.439 decares or 55,31% are arable lands. The municipality is located in the zone of the transitional continental climate with Mediterranean influence mainly alongside the Struma River Valley. This zone is characteristic for its extremely favourable conditions for agricultural development and most importantly, for cultivation of various agricultural crops. The quantities and amount of sown cultures on the territory of Kocherinovo Municipality are as follows:

- Wheat – 6.420 decares;

- Triticale – 900 decares;

- Barley – 580 decares;

- Rye – 400 decares;

- Oats – 1.000 decares.

Landfills. There is only one landfill for MSW. It is located in the Dzhanevitsa Locality, or Barakovski Rid, 5 km west of Kocherinovo Town. The landfill area is 1,35 ha and has been operational since 1975. The landfill is not regulated and the wastes are mixed together. There is no potential for landfill gas production.

Wastewaters. Only the town of Kocherinovo has a constructed sewage system. It takes part in the cycle of the treatment plant which is able to process the wastewaters of both municipalities – Rila and Kocherinovo. Both municipalities are located alongside the bed of the Rilska River. At this stage there are projects for the construction of an internal sewage system in Kocherinovo town and the villages of Barakovo and Mursalevo but at they are currently expecting grant funding from EMEPA under the Ministry of Environment and Waters.

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2.8 Kresna

General information

The municipality of Kresna has a territory with a size of 344,5 km2. By 01.02.2011, 5.441 residents live in the municipality according to NSI data. The Struma River Valley separates the municipal territory into two halves – one located in Pirin, the other in Maleshevska Mountain. The presence of a well-developed network of protected areas within the municipal limits is on the one hand favourable for alternative tourism development, but on the other – it practically determines the exclusion of important areas of the municipality which is a setback for its regional development potential, including its potential for RES utilization. The west border of the municipality overlaps with the state border of the Republic of Bulgaria with Republic of Macedonia. To the north and southeast it borders the Simitli and Razlog Municipalities, to the west it borders Bansko Municipality, and to the south – Strumyani Municipality. The terrain of the municipality is extremely diverse. The highest point of the landscape is the Vihren Summit (2.914 m), located at the border with Bansko. Its lowest point (140 m) is located at the place where the Struma River leaves the municipality, south of Dolna Gradeshnitsa Village, at the border with Strumyani Municipality. Various types of terrain are present – hollows, terraces, planes, gorges, low-, medium-, and high mountains. In general, hardly passable terrains are dominating the landscape which has influenced the configuration of the road network and the location of settlements. The only town within the municipal territory it’s the administrative centre – Kresna Town.

Geothermal power

There is unutilized potential from mineral springs within the municipality. Four main sources have been localized – between the town of Kresna and Dolna Gradeshnitsa Village, between the villages of Stara Kresna and Oshtava, near Gorna Brenitsa Village, and near Vlahi Village, with highest significance being attributed to the Gradeshnitsa (11 mineral springs) and Oshtava Springs. Mainly three of the Gradeshnitsa Springs – The Hot Spring, The Muddy Spring and The Spring at the Bath – have economic significance. There are plans for the completion of the mineral bath in Gorna Breznitsa Village. Table 1 summarizes the available data for mineral springs on the territory of Kresna Municipality, all of which are public municipal property.

Table 1. Mineral sources on the territory of Kresna Municipality

Source (spring/drill) Temp

oC

Available resource,

l/s

Utilized thermal resource, l/s

Unutilized resource,

l/s

Gradeshnitsa Mineral Springs (The Hot Spring) 68 3 Greenhouse (no

data) No data

Gradeshnitsa Mineral Springs (The Muddy Spring) 40 3 0 3

Gradeshnitsa Mineral Springs (The Spring at the Bath)

42 1.1 0 1.1

Oshtava Mineral Springs (The Hot Spring) 50.2 1.15 0 1.15

Oshtava Mineral Springs (Cool Bath) 38 6.1 0 6.1

Gorna Breznitsa (Drill 10 HG) 36.6 1.6 0 1.6

Gorna Breznitsa (Drill 7 HG) 28 0.44 0 0.44

Vlahi Mineral Springs No data (characterized as cold)

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The springs are accessible (asphalt road) and it is highly recommended to search for ways to utilize thermal hydropower. Ways to do that and guidance are described in Chapter 3.1

Solar power

The climate alongside the Struma River Valley to the south of Kresna Town distinguishes itself with typical continental-Mediterranean traits. The average sunshine duration is approximately 2.400 h/year, which defines the region as one of the sunniest in the country.

There are several, relatively small, photovoltaic installations on the municipal territory. Examples for solar power utilization are presented in Chapter 3.2.

Wind power

There is potential for wind generators solely alongside the high summits, but they are located within difficult to pass terrains, protected areas and reserves, hence the potential is defined as very low. Before the protected area regulations under NATURA 2000, only one wind turbine had been installed.

A considerable area of the municipality is covered by protected areas and reserves – Pirin National Park, Tisata Reserve, Moravska Protected Area, and others.

Hydropower

There is no hydrometric station on the territory of the municipality, which is the reason why hydrological characteristics are determined by the two closest stations – Struma and Krupnik. The catchment area of the Struma Basin at Krupnik Station is around 6.800 km2 with an average altitude of 973 m. The flow module is 6,73 l/s/km2, and flow is estimated at 45,67 m3/s, which equals an average annual water volume of 1,438 mil. km3. At Struma Station after Lebnitsa, the area of the water catchment region of Struma is approximately 8.000 km2 with a flow module of 7,14 l/s/km2 (57,28 m3/s or 1.806 million m3/year).

Additionally, there are hydrological stations at Dyavolska Reka River (with a catchment area of 77 km2; flow module – 13,31 l/s/km2; flow volume – 42,89 million m3/year) and at Vlahinska River (14,85 l/s/km2; average annual river flow of 1,36 m3/s; 42,89 million m3/year).

There is data for submitted requests for the construction of 15 MHPPs with only 6 having been commissioned so far. The main reasons for limiting the number of MHPP in the municipality are ecological, as well as due to the fact that the priorities for water use are irrigation and municipal water supply.

A 500 kW MHPP was constructed at the drinking water supply system of Kresna Town, with 70% of the actives of Kresna – Elektrik OOD, founded in 2000 and operating the facility, are owned by a private company and the other 30% are equally divided between the municipal water and sewage company and the municipality itself. According to available data (pipeline flow – 100 l/s and net head – 620 m), it is possible to analyse opportunities for installing additional power.

Biomass

Forests take up 72%, or 25.700 ha, of the municipality’s territory. Due to the warmer and dryer climate, the upper range boundaries of almost all perennial species are thriving in higher altitudes than members of the same species to the north of the municipality. Harvested timber was 18.500 cubic metres in 2011. Six protected areas fall entirely or partially within the municipal territory – Pirin National Park, Tisata Reserve, and Moravska Protected Area.

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Natural vegetation is dominating the forest fund (75,2%), while cultural crops occupy only 2,5% of all farmlands. The remaining 22,3% are pine formations. The most common arboreal species is the white pine – 51,6% followed by Macedonian pine – 31,7% and almost equally by spruce, beech, fir, and aspen. Pure plantations are most common (56,6%), most of which are white pine. Mixed coniferous forests hold a share of 33,6% with Macedonian pine being the most common species. The average age of forests is 79 years. Cultures are pure, mixed coniferous, mixed coniferous-deciduous with or without white pine domination. The state forests are managed by Kresna State Forestry Service. The resource from medium and small timber, which is suitable for biofuel production for heating, is not properly utilized. The main reason is that there is no market for this type of timber. This means that there is great potential for producing pellets and wooden slivers for heating.

The municipality owns 903 ha of forests with 1.560 m3 expected from them through logging activities in 2014.

Biogas

Agriculture. Animal husbandry in the municipality is primarily focused in private farms. The number of domestic animals is decreasing, one of the main reasons for which is the transition of local producers to vegetable production and viticulture. The typical mountainous terrain of Kresna created difficulty for land cultivation. The produced agricultural production primarily serves the purpose of satisfying the needs of the local population. Tomatoes, cucumbers, maize, and potatoes are the main cultures.

Landfills. In the past the municipality was serviced by a MSW landfill located in the Podonita Locality. The total annual amount of generated solid wastes in the municipality is around 4.000 tons. To this moment, wastes from urban places in Kresna are being transported to the regional household waste landfill, located in Mogilata Locality in the municipality of Sandanski. There is no potential for landfill gas production and utilization.

Wastewaters. The sewage waters of Kresna Town and the villages are discharged directly into the Struma River or its tributaries. There are no WWTP on the territory of the municipality. There is a prepared work plan for the construction of an inlet manifold for the wastewaters of Kresna’s sewage which is currently expecting funding. According to national acting regulations, the municipality of Kresna must have a WWTP constructed by the end of 2014. Due to the small capacity of the designed installations, biogas production from sedimentation is not expected.

2.9 Petrich

General information

The municipality is located in the south-western end of Bulgaria and borders with the states of Greece and Macedonia. It has a territory of 650 km2 and includes most of the fertile Petrich-Sandanski Hollow and the mountains of Ograzhden and Belasitsa, with Radomir Summit being the highest (2.029 m). The population of the Petrich Municipality is 54.006 residents according to the national census of 2011. The population of the municipality is distributed among 57 settlements – the municipal centre of Petrich Town and 56 villages. 53,5% of the municipality’s population live in the town, with the other living in the villages. The terrain of the municipality ranges from hilly to medium-mountainous. The municipality has it fair share of natural riches, for example the valuable vegetation in Ograzhden Mountain and the springs in Marikostinovo Village.

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Geothermal energy


Marikostinovo Source – included as No.24 in the list of mineral water sources - ESP. The spring has been given to Petrich Municipality for management and use for a 25-year period. The total exploitation flow amounts to 11,2 l/s with temperature of different drills and springs ranging from 38оC and 63оC. To this moment issues have been issued for the use of 1,41 l/s of the total flow, leaving 9,79 l/s unused. The potential for thermal hydropower has not been utilized. It is recommended to conduct a research on the topic of potential thermal energy consumers.

Rupite – Kozhuh Locality Source – included as No.64 in the list of mineral water sources - ESP. The source was given to the Petrich Municipality for management and use for a 25-year period. The established exploitation flow is 18,2 l/s with temperatures of the three different drills varying between 70оC and 74оC. To this moment, permits have been issued for the use of 0,5 l/s from the total flow, leaving 17,7 l/s unused. The potential for thermal hydropower utilization is not realized. Because of the high temperatures, water can be transported to more distant consumers but research is needed to establish the initial investment. Since the spring is located in a protected area, it is recommended to check whether there are options for utilizing the available thermal power.

Pravo Bardo Source is a public municipal property (PMP). Data for the characteristics of the source were not found during the preparation period of this report, but one must take into consideration that the water does not have high temperature.

Kromidovo Source has a water temperature of about 51оC. Available data for this source are scarce, established flow is missing. Water is mildly mineralized with high concentrations of fluorine; it contains hydrogen sulphide and is suitable for medical prophylaxis and heating.

Solar power

There are several small photovoltaic parks on the territory of Petrich Municipality the largest of which have a power of 300 kWp. Examples for solar power utilization are presented in Chapter 3.2.

Wind power

Western winds are blowing most often in the region – 33.9%, followed by south-western – 26,5%, which have the highest velocity – 3,4 m/s. Mountain breezes (northern foothills of Belasitsa) are typical for the region. Belasitsa Nature Park and Rupite Protected Area, which is famous for its mineral springs, are located within the territory of the municipality. More information on wind power utilization is presented in Chapter 3.3.

Hydropower

The biggest source of water for the municipality is the Struma River, springing from the Vitosha Mountain and flowing into the Aegean Sea. Next in terms of importance is Strumeshnitsa River, part of the Struma River Basin. The following rivers are of local importance – Gradeshnitsa River, springing from Ograzhden, and Petrichka River, springing from Belasitsa. The latter was the reason for the establishment of the present-day town of Petrich. Despite its diverse water riches, climatic conditions cause a shortage of water for household needs and irrigation during the summer months of the year.

Several MHPPs have been constructed throughout the municipality, the largest of which is Ivanik MHPP with power capacity of 750 kW. Most MHPPs are constructed on rivers in Belasitsa Mountain. Taking into consideration that there is a shortage of water for household needs and irrigation during

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the summer, all future proposals for MHPP construction on the territory of the municipality should be examined carefully.

A potential source for a MHPP construction is the drinking water supply system from Luda Mara River. A preliminary research of the possibility for constructing such a plant was done back in 2001-2002. Unfortunately the project has not been accomplished. We recommend that the project is revisited and, in case of acceptable financial conditions, the municipality of Petrich should try to utilize the resource.

Biomass

The total green area is 11.149 ha, 1.820 ha of which is settled by coniferous species and 9.329 ha – by deciduous species. The percent ratio is respectively 83,67% to 16,33% in favour of deciduous species. The primary coniferous species that can be found in the region are white pine, black pine, and spruce. Other less common examples are fir, green Douglas-fir, larch, Macedonian pine, and cypress but they are present in severely limited quantities. Deciduous species are mainly represented by beech, which covers more than 60% of deciduous vegetation. Winter oak and chestnut are common as well, but in significantly lesser quantities.

Due to the lack of a market, the full available resource of small and medium timber, suitable for heating and biofuels production, is not used.

The primary municipal sites on the territory of Petrich use natural gas for heating. If the heating installations are replaced by installations using biomass, the costs for heating will be decreased. It is recommended that the possibility for replacing the fuel base is thoroughly researched when conducting site audits and should the new measures be cost-effective, the resource will be utilized.

Biogas

Agriculture. We did not find official data for the number of animals bred on the territory of the municipality at the time this report was prepared. Presence of large livestock farms was not identified. Agricultural production is mainly characterized by vegetables (tomatoes, cabbage, peppers, and cucumbers), tobacco, legumes (peanuts and beans, and cereals. Vines are also developing well.

Landfills. MSW are being disposed in a regional landfill in Petrich. Around 15.000 tonnes of waste are being dumped per year in the landfill, which provides services for 60.000 residents. To this moment the municipality of Petrich does not collect separately wastes from wrappers. It can be said that the landfill covers the current environmental and safety requirements. It consists of 5 cells with: Cell 1 being used for inert wastes; Cell 2 is being used for non-hazardous wastes and has already been reclaimed; Cell 3 is currently used for non-hazardous wastes; Cells 4 and 5 are not operational. International practice and the conducted research on the topic of utilizing landfill gas on the territory of Bulgaria show that the capacity of the landfill is below the minimum for a cost-effective investment in constructing an installation for utilizing the landfill-generated gas.

Wastewaters. A WWTP is expected to be completed on the territory of the municipality by the end of 2014. After installation has begun and sediment analysis is completed, one can examine do possibility for methane production and its utilization for the purpose of satisfying the installation’s own need for thermal energy through boilers or combined production of thermal and electric energy (see Chapter 3.6).

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2.10 Razlog

General information

The Razlog Municipality ranks 6th in territory and 5th in population in the Blagoevgrad District. It covers a territory of 440,3 km2 and has a population of 20.589 people (NSI, 2011). The municipality consists of 8 settlements – Razlog Town, the municipal centre, and 7 villages: Banya, Bachevo, Godlevo, Gorno Draglishte, Dolno Draglishte, Dobarsko, and Eleshnitsa. The Razlog Hollow is one of the highest hollows in South Bulgaria. The terrain is almost flat with a slight slope to the east in the central part of the hollow. It transitions to hills in the north and the surrounding high regions of Rila and Pirin have a typical Alpine look.

Geothermal power


Fulinya Banya Source – included as No.21 in the list of mineral water sources - ESP. The source has been given to the municipality of Razlog for managements and use. The total exploitation flow amounts to 44,68 l/s with temperature of different drills and springs varying between 39оC and 58,9оC. To this moment, use permits have been issued for 17,44 l/s of the total flow, leaving 27,95 l/s unused. The potential for thermal hydropower is not realized.

Eleshnitsa – Sv. Varvara Locality Source – included as No.28 in the list of mineral water sources - ESP. The source has been given to the municipality of Razlog for management and use. The total exploitation flow is 16 l/s with temperature of the main drill being 56,2оC and temperature of Topilata Spring - 38оC. To this moment there are no official use permits. The potential of thermal hydropower has not been realized.

The Eleshnitsa – Zlataritsa RiverSource has a water temperature of 36оC and established exploitation flow of 9,04 l/s. Water is used in a pool and a sports complex. The residual temperature is however not utilized. The source is PMP.

Solar power

There is a small photovoltaic plant on the territory of the municipality. Examples for solar power utilization are present in Chapter 3.2.

Wind power

During the preparation of this report we found no information concerning constructed wind farms or research on wind speed or power.

The municipality covers large portions of Rila National Park (4.508,5 ha) and Pirin National Park (5.035,6 ha) on the territory of which is located Bayuvi Dupki – Dzindzhiritsa Reserve with an area of 2.873 ha.

Hydropower

The municipality of Razlog is famous for its rich water heritage. Multiple rivers flow through its territory, including tributaries of the Mesta River – Istok, Yazo, Krushe, Byala Reka, and Godlevska Reka. Several HPPs have been constructed – Razlog HPP, Bachevo HPP, and Garvanitsa HPP. After reviewing available plans and conducted analyses, we determined that the local potential for small HPP is not utilized.

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The total consumption of water resources in the municipality is 3 million m3 per year. Razlog’s water comes from the catchments of Izvoro with a flow of 1.500 l/s, a quantity sufficient for the entire water supply of the Blagoevgrad district. There is an additional catchment, Kalugeritsa, with a flow of app. 60 l/s.

During the time this report was prepared, no data for existing gravitational water pipes was available. It is recommended that the municipality request such data from Blagoevgrad Water Supply and Sewage in order to evaluate potentials for construction of MHPPs as a form of bypass of the mitigation shafts.

Biomass

The forests of the municipality take up 52,65% or 25.759 ha of its total territory. Since most of the wooded areas are located within the two national parks – Pirin and Rila, and that a large share of the forests are not forests for lumber production, but are recreational and protected forests, the opportunity for economic logging is very limited.

There are two factories producing biofuels (wooden pellets) on municipal territory, as well as a heating plant with power capacity of 1,5 MW which works with wastes from wood processing companies. The plant is private property and provides heating for the hospital of Razlog since the price for 1 MWh of thermal energy is lower than the price for using natural gas heating.

It can be said that the resources of wooden biomass on the municipal territory are utilized well and the municipality should continue this practice. We recommend that, if possible, all municipal sites should use this source of heating.

Biogas

Agriculture. Animal husbandry in the municipality is mainly developed in small farms with animals being bred pastorally. There are no large cow, swine, or poultry farms in the municipality. The situation with agricultures is similar. Tobacco, maize, and potatoes are the main productions.

Landfills. To this moment there is a developed project for the establishment of a regional MSW landfill, but construction has not yet begun. The landfill will service 56.000 residents from the Razlog, Bansko, Belitsa, and Yakoruda Municipalities. The landfill’s capacity will not be large enough to be an economically effective investment in utilizing landfill gas for thermal and electric energy production.

Wastewaters. Razlog has an operational WWTP which is currently undergoing a process of performance optimization in order to achieve sustainability in improving the condition of the cross-border water receiver – Mesta River. The WWTP is not meant for biogas production from sedimentation due to its small capacity.

2.11 Rila

General information

The municipality of Rila is located in Western Bulgaria, in the south-eastern part of the Kyustendil District. Its territory is occupied by Central and South-western Rila Mountain and its foothills. The following settlements fall in its jurisdiction: Rila Town, the administrative centre, and the villages of Smochevo, Pastra, Padala, and the Rila Monastery. To the east the municipality borders Samokov and Belitsa Municipalities; to the west – Kocherinovo and Boboshevo Municipalities; to the north – Dupnitsa and Samokov Municipalities and to the south – Blagoevgrad and Razlog Municipalities. The

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total area of Rila is 361 km2. The proximity of the municipality to Blagoevgrad must be taken into consideration. The landscape has a highly-expressed mountainous character. The high mountainous belt covers 53% (190 km2) from the municipality’s territory, the medium mountainous belt - 26% (95 km2), the mountainous belt – 15,5% (56 km2) and only 5,5% (20 km2) are below 600 m.

Geothermal power

In the town of Rila, there is a mineral water spring with a temperature of 36оC and small flow. Water is alkaline, contains sulphates, hydro carbonates, fluorine, and a mineralization factor of 0,93 g/l. The spring has not been studied and does not have an established exploitation flow. Due to the fact the source is located within the town limits, it is recommended to look into the opportunity to use the thermal energy of the water through a heat pump installation.

Solar power

There are two small solar plants constructed in the municipality. Solar collectors for hot water are installed in D-r T. Miladinova Kindergarten. Examples for solar power utilization are presented in Chapter 3.2.

Wind power

Northern winds are predominant in the municipality (45%) with relatively low average annual velocity which is determined by the landscape configuration and its protective role. The average annual wind speed is low – 1,5 m/s.

More than half of the municipal territory is occupied by Rilski Manastir Nature Park which limits the construction of large wind parks.

Hydropower

The main water catching artery of the municipality is Rilska River with a total length of 51 km which flows into the Struma River at Sharkov Chiflik Village, Kocherinovo Municipality. It springs from Ribnite Ezera (The Fishing Lakes) at an altitude of 2.691 m and flows in a westward direction. Its more significant tributaries are Marinkovitsa, Suhoezerski Potok, Drushlyavitsa, Smradliviya Potok, Dzhendemska River and Gyolenska Reka, the rivers of Eleshnitsa, Kamenitsa, Dyavolskite Vodi, Golyama- and Malka Lomnitsa. The biggest tributary of the Rilska River is Iliyna River, which is 16 km long and collects the waters of the Mermeritsa, Radovitsa, and Kravarsko Dere Rivers. The catchment of Rilska River is 390 km2 and its annual natural water flow is 141,9 million m3. The waters of Rilska River power Pastra HPP and Rila HPP. They are also used for drinking and irrigation purposes. The issue with drinking water supply was solved through the installation of a new water pipeline and reservoir for drinking water with a volume of 2.500 m3.

The Rila Cascade is located on the territory of the municipality. It is owned by Granatoid AD. The following HPPs are included in the cascade composition:

- Kalin HPP, power capacity of 4.000 kW, equalizer with a volume of 39.000 m3;

- Kamenitsa HPP, power capacity of 3.200 kW, equalizer with a volume of 40.000 m3;

- Pastra HPP, power capacity of 5.400 kW, equalizer with a volume of 44.300 m3;

- Rila HPP, power capacity of 10.400 kW, equalizer with a volume of 63.000 m3.

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Rilets HPP, constructed on the municipal water pipeline, is also located within the municipality. The nominal power of the installation is 1.000 kW. During the 90s, Mecha Padina, a MHPP constructed on a drinking water pipeline, was operational as well. The installation was decommissioned due to property rights problems.

There is a pre-project research on the idea of constructing a drinking water supply system for Pastra Village where a new MHPP can be installed.

It can be said that the resource of drinking water pipelines is not 100% utilized with respect to electric energy production, hence it is recommended for the municipality to look into alternative ways of building more power.

Biomass

The total area of the forest fund of the municipality is 19.795 ha, 6.130 ha of which belong to DGS Rilski Manastir and 12.224 ha belong to Rilska Sv. Obitel. Wooded territory is 14.289 ha, including 4.929 ha for DGS Rilski Manastir and 14.289 ha for Rilska Sv. Obitel. The total number of standing lumber is 2.478.420 m3, including 573.805 m3 for Rilski Manstir State Forestry and 1.904.615 m3 for Rilska Sv. Obitel. The predominant tree species are beech, winter oak, white pine, fir, spruce, and Macedonian pine.

To this moment the primary source of energy for heating used by the local population is firewood which is being incinerated in low-efficiency stoves. It is recommended that municipal sites replace their fuel base with more efficient installations for pellet incineration. The next logical step is to look into opportunities for biofuel-producing factories (pellets and wooden briquettes).

Biogas

Agriculture. There are no registered agricultural corporations or associations on the territory of the municipality. Agricultural activity is happening in private natural farms and the main part of the production does not reach the market – it is meant for personal needs. Animal husbandry in the municipality is entirely developing into small farms that satisfy the needs of the households. As a whole the industry is developing slowly with a primary focus on breeding small cattle. There is no potential for constructing installations for combined production of thermal and electric energy.

Landfills. Waste collection is done in all settlements of the municipality. One MSW landfill is operating on the territory of Rila Municipality. It is located in the Momena Locality, 1,5 km to the south of Rila Town. A dirt road connects the landfill with the town. The landfill takes and area of 6.500 m2 on a slope with a 15% inclination at an altitude of 525 m. There is no potential for landfill gas collection.

Wastewaters. There are no WWTP in the municipality. Its priority is the installation of a sewage collector which will divert all household wastewaters from the town of Rila to the treatment plant in Kocherinovo Town.

2.12 Sandanski

General information

The municipality of Sandanski has a territory of 998,4 km2, including parts of the Pirin, Slavyanka, Ograzhden, and Maleshevska Mountains as well as the Sandanski-Petrich Field. The municipality borders the following Bulgarian municipalities: Petrich, Strumyani, Kresna, Bansko, Gotse Delchev, Hadzhidimovo. As a municipality that is bordering the Republic of Greece, it is also neighbouring three small Greek municipalities. The population of Sandanski is 40.470 residents (NSI, 2011). The

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municipality distinguishes itself with extremely diverse landscapes – planes alongside the Struma River Valley, high mountains, medium mountains and foothills in the four mountains mentioned before. This diversity determines the sharp contrasts in altitudes which reach more than 2.800 m in the high parts of Pirin (highest point – Kamenitsa Summit, 2.822 m) and more than 2.000 metres for Slavyanka. Its lowest altitudes are found alongside the Struma River Valley, especially after Levunovo Village where one can find the municipality’s lowest point (slightly higher than 100 m).

Geothermal power


Katuntsi Source – included as No.33 in the list of mineral water sources - ESP. The source was given to the municipality of Sandanski for management and use. The total exploitation flow amounts to 1,2 l/s with water temperature of 27,2oC. To this moment, permits have been issued for the use of 0,7 l/s of the total flow, leaving 0,5 l/s unutilized.

Levunovo Source – included as No.40 in the list of mineral water sources - ESP. The source was given to the municipality of Sandanski for management and use. The total exploitation flow is 13,21 l/s with water temperature from the main drill being 83oC. To this moment permits have been issued for the use of 2,25 l/s of the total flow, leaving 10,96 l/s unutilized. Private investors are interested in using the unutilized flow. If close enough to the site, the mineral water can directly serve as a source for heating. It is recommended that the water temperature of this source be used to maximum efficiency.

Sandanski Source – included as No.66 in the list of mineral water sources - ESP. Its total exploitation flow amounts to 21,7 l/s and the water temperature of different drills and springs ranges between 72oC and 82oC. To this moment, 19,32 l/s of the total flow are being used, leaving 2,38 l/s unutilized. Water is suitable for direct heating. It is recommended that flow users utilize the high water temperature to maximum efficiency.

Hotovo Source – included as No.94 in the list of mineral water sources - ESP. The source was given to the municipality of Sandanski for management and use. Its total exploitation flow amounts to 4,25 l/s with water temperature at 40oC. To this moment there have been no issued use permits. Water is suitable for direct heating only in the presence of a consumer who is close to the source and in the presence of floor heating. A heat pump should be used for consumers who are far from the source. Both options require the use of an intermediary heat carrier.

The Spatovo and Spatovo-Sklave Sources are PMP. The established exploitation resource is 10 l/s for Spatovo and 8 l/s for Spatovo-Sklave. There is no data for water temperatures. There is a need for a study. The sources are far from potential consumers.

Two concessions for mineral water have been realised on the territory of the municipality: for a portion of the waters from Drill C-1, Sandanski Source with Interhotel Sandanski Balgariya AD and for a portion of the mineral waters of Drill No. 236 at Katuntsi Source, with Meriam-90 AD. The planned investments involve a number of sums amounting to approximately 4,5 million BGN.

In conclusion it can be said that the mineral water in the territory of the municipality is utilized (SPA hotels, sports complex, summer baths, sanatoriums), but its temperature is not effectively utilized (see Chapter 3.1)

There are potential geothermal waters in other parts of the Sandanski Municipality, but they have not been brought out to the surface via drills, have not been studied in detail, and their precise location has not been determined.

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Solar power

The Sandanski Municipality distinguishes itself with the longest duration of sunshine – 2.506 h/year.

There is no data for the construction of solar plants for the production of electric energy or for installation of solar collectors for hot water. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

The southernmost parts of Pirin National Park, Oreliyak Reserve, part of Ali Botush Reserve, as well as several lesser protected areas, are all located within the territory of the municipality.

The total area of protected areas in Sandanski Municipality is roughly 140 km2 which is slightly more than 14% of the total area of the municipality, high above the state average - 4,9% and similar to the EU average percentage - 15%.

Hydropower

The water resources of the municipality are formed by the Struma, Sandanska Bistritsa, Pirinska Bistritsa, Bozhdovska, Sklavska, Melnishka, Shashka, and Lebnishka River, and their tributaries. Eight HPP have been constructed in the municipality of Sandanski. Two MHPPs are being currently constructed.

The existing capacity levels for energy production in the Sandanski Municipality are presented in Table 2.

Table 2. HPPs on the territory of Sandanski Municipality

HPP Installed power,

MW Annual production,

MWh Ownership

HPP 110 kV

Popina Laka 24.5 32.2 EKO-ENERDZHI

Lilyanovo 23.5 20.2 EKO-ENERDZHI

Sandanski 18.0 11.4 EKO-ENERDZHI

Pirin 25.0 26.5 SIIF-MEKAMIDI

Spanchevo 32.0 33.4 LITEX

HPP 20 kV

Petrovo 3.50 1.6 ARIEL-TN MEZDRA

Leshnitsa 0.34 0.34 EKO-ENERDZHI

Sushitsa 0.50 0.54 DIMAL

In order to secure flawless HPP exploitation on the territory of the municipality, a complex hydro-technical complex of accumulating facilities and 10-kilometre derivations in Pirin was created. Production is characterized with high cost-effectiveness and ecological impact. It can be said that the HPPs on the territory of the municipality use almost all water bodies to their fullest.

There are 4 main water sources for gravitational water supply:

- Sandanski Group – 300 l/s;

- Bozhdovo Group – 40 l/s;

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- Melnik Group – 40 l/s;

- Petrovo Group – 100 l/s.

It is recommended to do pre-project research on the possibilities for MHPP installations on existing gravitational water pipelines.

Biomass

The total area of the forest fund is 54.345 ha or 54,4% of the municipal territory. Wooded areas alongside forests created on agricultural lands make up 56% or 56.350 ha of the total territory. State forests are managed by DGS Sandanski and DGS Katuntsi. According to the types of vegetation zones in Bulgaria, the region of the municipality is settled by deciduous mixed forest and shrub formations. Examples of low stem plants are ivy, fig, pomegranate, and some of the high stem plants are – white oak, hornbeam, pine, less often birch and willow. Typical for the upper parts of Pirin are the beech, white pine and Macedonian pine, followed by red cedar and maple which give room to alpine pastures as altitudes rise.

The main ways to utilize the available resources of timber are to use them for heating and/or biofuel production (wooden pellets and wood chips).

Biogas

Agriculture. The main agricultural activity that takes place in the municipality is pastoral cattle breeding. There are no large swine farms or cattle breeding farms for dairy is not widely practiced. Around 35% of the municipality’s territory is occupied by agricultural lands. Small private agricultural farms are a typical sight. There is a tendency for reducing cereal production which leads to an increase of fodder prices and more expensive animal breeding. Vegetable growing and viticulture are the most widely spread agricultural activities

Landfills. Household and industrial wastes generate a total of 7.000 tonnes/year. They are being disposed in a regional landfill for non-hazardous waste in the Sandanski Municipality, located in the Mogilata Locality. The landfill services the Kresna and Strumyani Municipalities – a total of roughly 55.000 residents. 12.500 tonnes of wastes are being collected annually. The area of the landfill is 8,17 ha, 6,91 ha of which are designated for landfilling. International practice and research conducted to this moment on the topic of utilizing landfill gas on the territory of Bulgaria show that the capacity of the landfill is below the minimum for achieving an economically cost-effective investment in constructing installations for utilizing the generated landfill gas.

Wastewaters. The work project of the Sandanski WWTP is developed for the purpose of purifying wastewaters from the town and the industrial facilities before they are discharged in the Struma River. To this moment household and industrial wastewaters are being discharged directly into Sandanska Bistritsa River, which flows into Struma River. This creates conditions for pollution of the mouth of Sandanska Bistritsa River and Struma River, as well as conditions for cross-border pollution. The WWTP will service 36.548 residents with an average annual productivity of 2.011.208 m3. The WWTP project was not presented during the time this document was prepared. There is no data for biogas utilization from sedimentation for the personal energetic needs of the WWTP.

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2.13 Satovcha

General information

The Satovcha Municipality is located in South-West Bulgaria and includes parts of the Mesta River Valley and the south-eastern part of the Dabrashki Part of Western Rhodopes. Its territory is characteristic for its mountainous and semi-mountainous landscape. Satovcha Municipality is located on a territory of 334 km2. It borders Dospat Municipality to the east, Garmen Municipality to the west, Velingrad Municipality to the north, and Hadzhidimovo Municipality and the Republic of Greece to the south. It consists of 14 settlements with Satovcha Village being its municipal centre. Its highest point is Unden Summit – 1.667m, and the average altitude is 1.000 m. According to the latest census by 01.02.2011, the population of the municipality is 15.444 people.

Geothermal power

There are no hot mineral water sources on the territory of the municipality.

Solar power

There is no data for solar plant construction for energetic purposes or for any installed solar hot water collectors on the territory of the municipality. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

There has been research on wind power potential in the municipality but the data is private and not available for free distribution. No data for wind parks.

There are two reserves in the municipality – Konski Dol and Temnata Gora, which protect century-old fir, beech, and spruce forests.

Hydropower

The Osinska, Kochanska, Satovska, and Bistritsa Rivers pass through Satovcha and flow into the Mesta River. Although there is research for MHPP installations, no data was found of such an installation being constructed in the municipality.

Twelve villages are being supplied with drinking water through gravitational water pipelines. The pipelines are managed by Gotse Delchev Water Supply and Sewage. In certain times there is water shortage and the villages are on water regime. In order to solve the problem the municipality is planning to install an equalizer by applying for funding from the operational programmes during the new 2014-2020 Programme Period. It is recommended to examine the possibility of constructing a MHPP on the existing gravitational water pipelines. Because of their dissatisfactory technical condition, this should be done after their reconstruction.

Biomass

The forest fund of Satovcha Municipality is a total of 29.259 ha, 18.074 ha of which are state fund (96,5%), 1635,7 ha are municipal fund (2,0%), and private forests are 354,2 ha (1,5%). Property of legal entities is 2,8 ha, and NGO property is 1,4 ha. Forests suitable for wood processing take up 90,9% of the total area, protected and recreational forests – 8,5%, and protected areas are only 0,6%. The forest fund covers most of the municipality and is abundant in coniferous (pine, spruce, and other) and deciduous (beech, oak, birch, and other) tree species. State forests are being managed by Dikchan State Hunting Service. Municipal sites and the population use firewood for

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heating. It is recommended to evaluate the available resource of medium and small timber and to examine the possibility of constructing a factory for biofuels.

Biogas

Agriculture. Animal husbandry is not wide-spread activity and is mainly practiced in small family farms. In recent years, thanks to the Rural Development Programme, the sheep breeding industry has been thriving. Arable land in Satovcha is 7.336 ha. The natural and geographic conditions are favourable for growing tobacco, potatoes, gherkins, beans, and other. The biggest share is taken by the tobacco industry. Lately there has been an increasing interest in growing all sorts of herbs, which benefit from the favourable conditions as well.

Landfills. There isn’t a regional landfill on the territory of the municipality. Wastes are transported and discharged in the landfill of Barutin Village, Dospat Municipality.

Wastewaters. Constructing a WWTP is of utmost importance for the municipality. They municipality issued a contract for the construction of 9 WWTPs in the small settlements, the capacity and type of which are not suitable for producing biogas from sedimentation.

2.14 Simitli

General information

The Municipality of Simitli occupies an area of 544 km2 in the north-western part of the Blagoevgrad District. The total area of the administrative centre, Simitli Town, is 36,4 km2. The Struma River divides the municipal centre into two parts – the town itself and the neighbourhood of Oranovo. Gradevskata Reka River flows through Oranovo Neighbourhood into the Struma River, which is also parallel to the road for Gotse Delchev. The municipality borders the Blagoevgrad, Kresna, and Razlog Municipalities. Its west border overlaps with the state border of Bulgaria with Macedonia. According to data from the last census from 2011, 14.283 people live in the municipality. A total of 18 settlements are located in the municipality: the municipal centre, Simitli Town, and the villages of Brezhani, Brestovo, Gorno Osenovo, Gradevo, Deokatichevo, Dolno Osenovo, Zheleznitsa, Krupnik, Mechkul, Polena, Poleto, Rakitna, Senokos, Suhostrel, Sushtitsa, Treskovo, and Cherniche. The following geographic entities are located within the municipality: the Simitli Hollow located at the middle stream of Struma River, some of Vlahina Mountain’s eastern slopes, the north-western slopes of Pirin, the north slopes of Maleshevska Mountain (near Kresna Gorge) and the south slopes of Rila (until the Oranovski Gorge of Struma River).

Geothermal power

The available resources go as follows:

Simitli Source – include as No.70 in the list of mineral water sources - ESP. The source was given to Simitli Municipality for management and use for a 25-year period. Its total exploitation flow amounts to 19,11 l/s with temperature of different drills varying between 50оC and 61оC. Water is weakly mineralized, alkaline, contains traces of sulphate, and is rich in sodium and fluorine. To this moment, permits have been issued for the use of 13,27 l/s of the total flow, leaving 5,84 l/s unutilized. There is a prepared, but not yet realized, plan for the heating of the kindergarten in the town of Simitli in the vicinity of Drill No.7.

Dolno Osenovo Source is PMP and consists of three captured natural springs (Banyata, Peralnyata, and Cheshma v rekata) with established flows respectively: 53оC and 0,74 l/s for Banyata, 58,5оC and

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0,29 l/s for Peralnyata, and 39,5оC and 0,12 l/s for Cheshma v rekata. Water is weakly mineralized, alkaline, contains traces of sulphate, hydro carbonate, and is rich in sodium and fluorine. To this moment 0,35 l/s of the total flow of the source are being used, leaving 1,22 l/s unutilized.

It is recommended to do further analysis on the utilized thermal energy of water and to look into other ways of achieving its full potential.

Solar power

Currently there are three small solar installations with a total power of 305 kW, established by private investment. A lot of houses have solar collectors for acquiring DHW. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

The main locations which possess true wind potential are all located within protected territories and hard to access areas.

Parts of Pirin National Park (907 ha) and Rila National Park (1.645 ha) are on municipal territory.

Hydropower

Three MHPPs with a total capacity of 1.650 kW are functioning on municipal territory. One more plant is being expected - Osenovo MHPP. The main problem with issuing construction permits for MHPP in the municipality is the negative effect on water resources used for irrigation.

Due to mountainous and semi-mountainous being the most common terrains in the municipality, water supply is mainly gravitational. It is recommended to prepare a pre-project research on MHPP construction on the existing water supply facilities.

Biomass

The total area of the forests in Simitli is 35.071 ha. The average annual logging quota is 30.000 m3 of fallen trees, of which 27.000 m3 go for industrial purposes and 3.000 m3 go to the local population. Of those 27.000 m3, 17.602 m3 are construction wood, 9.375 m3 are firewood, and 23 m3 are for other purposes. State-owned forests are managed by Simitli State Forestry Service and forests, owned by the municipality, are managed by a structural department in the municipal administration. There are two factories producing briquettes. It is recommended to thoroughly study the unused resources for medium and small timber production for the purpose of installing new production powers. It is also recommended to examine the amounts of waste timber from the wood processing enterprises on the territory of the municipality and to look for ways to utilized it.

Biogas

Agriculture. In recent years there has been an increase in cattle, goat, and poultry numbers and a decrease in sheep and swine numbers. Agricultural lands are in general quite scarce with is a negative influence on the development of animal husbandry due to the limited options for fodder grain production. There are good conditions for pastoral husbandry in the west and east mountainous parts. Traditional cultures for the region include tobacco, vegetables, vines, and fruits.

During the new Programme Period of 2014-2020 the municipality will throw its efforts in restoring and developing the agricultural production potential; utilizing all natural resources; diversifying crops; encouraging the development of fodder and technical cultures as a tobacco alternative. This will create a good basis for animal husbandry in the future.

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Landfills. To this moment, the system for organised waste collection covers the following settlements – the town of Simitli and Krupnik, Zheleznitsa, Gradevo, Dolno Osenovo, Cherniche, Poleto, Polena, and Brezhani Villages. Companies provide collection services for smaller villages. Wastes are discharged in MSW landfills in the Dzhoov Andak and Potoka Localities. The landfills are located in the vicinity of Struma River and its tributaries, thus polluting the river, which forces for closure and reclamation of affected areas. There is no potential for extraction and utilization of landfill gas.

Wastewaters. There is a need for the construction of a joint treatment plant for the household wastewaters of Simitli Town and Krupnik Village, biggest producers of the municipality, on the bank of the Struma River. Due to the small capacity of WWTP, there is no potential for producing and utilizing biogas from sedimentation.

2.15 Strumyani

General information

The territory of the Strumyani Municipality is 362 km2; it covers the eastern slopes of Maleshevska Mountain, the Struma Valley River, and a small part of Western Pirin. There are 21 settlements in the mountain with Strumyani Village as its administrative centre. The total population of the municipality is 5.778 residents (NSI census, 2011). The municipality has an important geopolitical location with its neighbouring municipalities: Kresna to the north, Sandanski to the south, Bansko to the east, and Petrich to the southeast. Its west border is Berovo Municipality (Macedonia). Roughly 80% of the municipal territory is mountainous terrain which starts to display typical alpine characteristics, such as alpine pastures and meadows, in the higher parts. The west part of the municipality is entirely occupied by Maleshevska Mountain. It takes about three fourths of the area. The main ridge elevates from south to north with the state and municipal border passing along it. The territory of the municipality experiences considerable displacement of 114 - 130m at the Struma River which increases to 1.599 m in the Maleshevska Mountain to the west and peaks at Konski Kladenets Summit (2.315 m) to the east.

Geothermal power

There are no known sources of hot mineral water in the municipality.

Solar power

There are no constructed solar plants for the production of electric energy or installed solar collectors for hot water. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

Moderately strong north-western and northern winds blow through the region of the municipality. South-eastern winds become more frequent in spring, with highest frequencies in April and May.

There has been a proposal for the construction of a wind park which was not approved for ecological reasons.

The western parts (184,4 ha) of Pirin National Park, Sokolata (211 ha) and buffer zone (135,3 ha) are located within the municipal borders. There are several protected areas under NATURA 2000 as well.

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Hydropower

Strumyani is not rich in water resources. The main water network consists of Struma River, which is the main water artery, along with its tributaries coming down from the eastern part of Maleshevska Mountain and the western slopes of Sharaliya and Konski Kladenets Summits in Pirin. The hydrological conditions of the municipality are bound to the characteristics of Struma River and its tributaries, the catchment basins of which are considerable. This defines the territory as a region with high density on the hydro geographical map. The water currents in the Pirin part of the municipality are represented by the Zlina and Shashka Rivers and several coulees and ravines. The right tributaries of the Struma River originate from the eastern slopes of Maleshevska Mountain – Kamenishka, Tsaparevska, Goremska, and Drakovska Rivers. All of them have an inconsistent flow, influenced by precipitation and seasons.

The municipality has constructed several HPPs, supported by permits for additional power installations. There is a case of a project rejected for ecological reasons.

Some of the settlements are being serviced by gravitational water supplies. It is recommended for the municipality to look into opportunities for MHPP construction on gravitational water pipelines.

Biomass

The total area of the forest fund is 18.019 ha. The low mountainous region is covered by beech, oak and mixed deciduous forests, as well as artificially created forests. A region of coniferous forests was created on the bare high slopes of Pirin. The forest fund is managed by Strumyani State Forestry Service.

There is no data for biofuel (wooden briquettes) producing facilities that operate on municipal territory. It is recommended that all municipal sites switch to biofuel heating (pellets, wooden chips) after structural restoration.

According to a preliminary evaluation, there is available resource for logging and is hence recommender to look into ways of its utilization.

Biogas

Agriculture. Animal husbandry is practices mainly in small farms. Animals are pastorally bred; there is a lack of large husbandry farms. The region is one of the warmest in the country, which favours fruit and vegetable growth. Thanks to the warm winter, perennial plants such as vine, fig, pomegranate, almonds, olives, are thriving. Vines, potatoes, maize, and beans are the main agricultural crops. Potential for producing biogas from animal and plant wastes is defined as insignificant.

Landfills. There isn’t an operational MSW landfill.

Wastewaters. The municipality has a partially constructed sewage system in larger villages. There are upcoming plans for partial construction of a sewage system in the Strumyani, Mikrevo, Ilindentsi, and Drakata Villages. To this moment, there is a project for installing a WWTP but its small capacity makes production and utilization of biogas from sedimentation impractical.

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2.16 Treklyano

General information

The Treklyano Municipality is located in South-Western Bulgaria and is one of the main municipalities of Kyustendil District. It is located in the region of the Osogovo-Belasitsa Mountain Group. The region is mountainous with highly rough terrain, known in geography as Kraishte. The territory of the municipality is 257,8 km2 which is 8,4% of the total area of Kyustendil District. Treklyano is inhabited by 0,5% of the Kyustendil District population or 629 people by 01.02.2011, making it the least populated municipality in Bulgaria. The municipality borders with the Kyustendil, Zemen, and Tran Municipalities and with the Republic of Serbia.

Geothermal power

There are no known sources of hot mineral water.

Solar power

In 2012, two photovoltaic plants (PVP) started operating: Ushi 1 PVP and Ushi 3 PVP respectively. Both are located in Ushi Village and have a combined power of 394,8 kW. Examples of solar power utilization are presented in Chapter 3.2.

Wind power

When this report was being prepared, we found no available data for conducted research on wind speed and direction.

The protected territories are Karvav Kamak – 3.857,5 ha, Zemen – 1.820,3 ha and Dolni Koriten – 137.4 ha.

Hydropower

The biggest river in the region is Treklyanska River with a length of 37 km. The waters of Dragoyìnska, Sredorechka, Metohiyska, Bazovichkata, and Kosovskata Rivers flow into Treklynska.

Local water source supply all settlements in Treklyano. The problems with the water supply come from the mountainous terrain and the remoteness of villages from water sources. There are constant problems with the water supply of different villages or neighbourhoods. Water sources have a small and insufficient flow. The rough terrain makes it difficult to construct large water supplying facilities. The water supply system of the municipality is outdated and in poor condition. The population uses drinking water for irrigation of gardens in summer. The flow of water sources decreases dramatically forcing a water regime on several villages.

There is no data for MHPP construction in the municipality.

Biomass

The total area of Treklyano’s forest fund is 14.819 ha. The total planned use under the forestry management project of Treklyano State Forestry Service for the 2009-2018 period is 277.755 m3 of standing trees or an average of 27.776 m3 per year. To this moment the exploited standing tree mass is slightly less than half of what was planned with almost all of the lumber being processed outside of the municipality. It is recommended to conduct research on the possibilities for pellet-producing factory in order to ensure maximal resource utilization. Sample plans for the construction of such a facility are presented in Chapter 3.5.

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Biogas

Agriculture. Farming is a main occupation for the population of Treklyano with a prevailing number of small farms. Animal husbandry is represented primarily by cattle, sheep, goat, and pig breeding. Animals are bred mainly in small private farms with no market orientation. In 2013 the number of animals bred is: 150 heads cattle, 600 heads of sheep, 150 heads of goats, 128 heads of pigs and 950 birds. Culture growing is impaired by the abruptness of the land, limited economic resources and age structure of farmers.

Landfills. Waste is collected in one third of villages by a waste collecting firm and is afterwards discharged in a landfill outside of the municipal territory. The landfill which is used for organised waste collection and transportation of household wastes is located in Ushi Village, Rudinata Locality and has an area of 0,97 ha. Meanwhile the area polluted with refuse is 62,9 ha. According to the municipality, to this moment waste collected from the firm is being discharged in Razdlovtsi Village, roughly 5 km from Kyustendil.

Wastewaters. There is no centralized sewage system or a WWTP in any of the villages. Wastewater disposal is done through septic and scrape pits.

2.17 Hadzhidimovo

General information

Hadzhidimovo Municipality is located in South-Western Bulgaria in the Blagoevgrad District. To the west the municipality borders with the municipality of Sandanski, to the north – Gotse Delchev and Garmen, do the east – Satovcha, to the south the municipal border overlaps with the state border between Bulgaria and Greece. The territory of the municipality includes the southernmost part of Pirin Mountain’s eastern slopes, parts of Slavyanka Mountain, a small part of the south-western slopes of Western Rhodopes’ Dabrashki Rid, a part of the Gotse Delchev Hollow, and a part of Mesta River Valley. The municipality takes an area of 327,8 km2. It has a population of 10.091 people (NSI, 2011) living in 15 settlements – 1 town (Hadzhidimovo) and 14 villages. The terrain is very diverse. The Pirin part has a typical mountainous landscape, dotted by deep ravines and steep ridges with extreme differences in altitudes. Multiple ridges line the landscape from the main watershed ridge of Pirin in an eastward direction. The Rhodopes part to the east of Mesta River also displays similar mountainous characteristics as its Pirin counterpart with the exception of having lower altitudes and some ridges are not so steep. The south part of the municipality is settled by the Stargach Mountain and the north part of Slavyanka Mountain. The mountains turn into planes near Hadzhidimovo Town and Koprivlen, Novo Lyaski, Nova Lovcha, and Sadovo Villages. The Alibotush Reserve and Pavlyova Padina Protected Area are located in the municipality.

Geothermal power

There are no known sources of hot mineral springs in the municipality.

Solar power

A total of 4 small private photovoltaic plants have been constructed in the municipality. Examples of solar power utilization are presented in Chapter 3.2.

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Wind power

During the preparation of this report we found no information concerning constructed wind farms or research on wind speed and power in the municipality. There are wind parks in the Republic of Greece in close proximity to the border.

A part of the Alibotush Reserve and Pavlyova Padina Protected Area are located within the municipal borders.

Hydropower

The main water artery for the municipality is Mesta River. Before entering Greek territory, the valley of the river has the characteristics of a narrow gorge. The flow of Mesta River is variable especially in summer when water levels significantly drop since its waters are being used for irrigation. Mutnitsa River is the largest tributary from Pirin Mountain. It also has a vast water catchment basin. Terrain is severely eroded and the river drags a lot of alluvium. When it finally joins Mesta River, they form a large silt cone. Of all left tributaries originating from Western Rhodopes, Bistritsa River is the most significant one. The water catchment of Bistritsa is in Satovcha Municipality. There is a need for a dam on Bistritsa River for irrigational purposes in Albanitsa Village and the neighbouring municipalities of Garmen and Satovcha. Funding is expected to come from operational programmes during the new programme period. It is recommended to research the possibility of HPP construction.

A HPP with a capacity of 700 kW was constructed on the Matnitsa River. Another HPP located on the Selskata Reka River near Laki Village is expected to become operational soon.

The municipality of Hadzhidimovo is mainly supplied by the Teshovo Water Supply Group via external eternity water supply F200 with a total flow of about 28 l/s which is in need of replacement. Considering the abrupt displacement between the springs, located above Teshovo Village and the water-supplied sites. It is recommended to look into opportunities for MHPP installation at the mitigation shaft when maintenance activities are being done on the water pipeline.

Biomass

The total area of the forest fund is 13.920,5 ha. The main part of it is managed by Gotse Delchev State Forestry Service. The forests of Hadzhidimovo are relatively young – up to 40 years of age – thus restricting logging activities. Mainly narrow and medium timber is being collected and thick timber in lesser quantities, most of which is being exported, and the rest is used by local wood processors and municipal residence. The average annual volume of used timber in the municipality is around 10.000 m3.

Three companies in the municipality are currently producing biofuels. It is recommended to study the unutilized resources of small and medium timber in order to increase their production within the municipality. Considering the immediate proximity to the Republic of Greece, it is safe to say that there is a market for wooden pellets and the shorter distance to potential customers is a sure advantage.

Biomass

Agriculture. Animal husbandry in the municipality is practiced mainly in small farms with animals being bred pastorally. Despite the considerable amount of grasslands, there aren’t any large animal breeding farms. Tobacco is the most common wide-spread technical culture. The potential for biogas production from animal and plant wastes has been defined as very low. Only after sector development and establishment of large farms can biogas production be taken seriously.

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Landfills. Generated in the municipality waste is being disposed in a regional landfill in Gotse Delchev. There is no potential for landfill gas utilization.

Wastewaters. To this moment there are no WWTPs in the municipality, but there is a project for their construction. Due to its small capacity, up to 10.000 inhabitants, utilization of sedimentation biogas is not planned.

2.18 Summary of the data for available RES

In this chapter we have summarized the data for available RES on the territory of each of the previously described municipalities along with recommendations for their utilization.

Geothermal energy

In Table 3 you will find summarized information about geothermal sources on the territory of the mentioned municipalities.

Table 3. Available geothermal sources on the territory of the selected municipalities

Municipality Potential for geothermal energy utilization*

Bansko Dobrinishte Source. Unutilized resource available. Suitable for heating through heat pumps water-to-water. Existence of pools. Water temperatures after pools can be used for conditioning of the baths.

Belitsa Belitsa Source is located within town limits. Thermal hydropower utilization is possible through heat pumps.

Blagoevgrad Blagoevgrad, Blagoevgrad – Struma River, and Blagoevgrad – Elenovo Sources. Resources are not fully utilized. Temperature of the water makes them suitable for direct heating (floor or via convectors), as well as air conditioning through a heat pump installation.

Boboshevo In the presence of a consumer, water can be used for air conditioning through a heat pump installation.

Gotse Delchev

Mostly cold springs. Mineral water bottling in Banichan Village – it is recommended to examine the possibility for a heat pump installation utilizing the temperature of the water before it being bottled. It is recommended to determine the presence of any potential consumers of energy in the vicinity of the Musomishte Village Springs. Water is suitable for air conditioning through a heat pump installation.

Garmen Ognyanovo – Garmen Source. Water is suitable for direct heating (floor heating because of its low temperature) or air conditioning through a heat pump.

Kocherinovo There are no known sources of mineral waters in the municipality.

Kresna

There is no official data for thermal energy utilization of the available for the municipality sources (Gradeshki Mineral Springs, Oshtavski Mineral Springs, two drills in Gorna Breznitsa and Vlahi Mineral Springs). It is recommended to conduct thorough research on opportunities for the utilization of hot mineral water for heating and/or air conditioning by determining the most suitable consumers of thermal energy.

Petrich

Marikostinovo, Rupite – Kozhuh Locality, Pravo Bardo and Kromidovo Springs. Resources are unutilized. More information on the sources is presented in chapter 2.9. It is recommended to determine possible consumers in the vicinity of the sources. Water is suitable both for direct heating as well air conditioning of premises via heat pumps depending on the temperature of different sources.

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Razlog

Gulina Banya, Eleshnitsa – Varvara Locality, Eleshntisa – Zlataritsa River Sources. A portion of the water from Gulina Banya Source is used for hygiene purposes in hotels. Water from the Eleshnitsa – Zlataritsa River Source is used for a pool in a sports complex. Currently there are procedures for issuing new permits. There is considerable potential of the thermal energy of water and it should be realized to the maximum, primarily through heat pump installations for air-conditioning of premises. Direct use through floor heating is also possible.

Rila There is a spring with water temperature of 36

оC in the town of Rila. There haven’t been any

extensive studies of the springs but we recommend to examine the possibility of air conditioning of municipal sites through heat pump installations

Sandanski

Katuntsi, Levunovo, Sandanski, Hotovo, Spatovo, and Spatovo-Sklave Sources. Mineral water on municipal territory is being utilized in SPA hotels, sanatorium, sports complex, and a summer bath. Unfortunately the temperature of the water is not used effectively; it is recommended that the Sandanski Municipality redirect its attention towards utilizing this valuable resource.

Satovcha There are no registered sources of mineral waters on the territory of the municipality.

Simitli

Simitli and Dolno Osetenovo Sources. The temperature is suitable both for direct heating as well as air-conditioning via heat pump installation. There is a developed project for the heating of a kindergarten in the town of Simitli in close proximity to Drill No.7 in Simitli Source which has not yet been realized. It is recommended to finish this project after which use it as an example to popularize it in order to interest stakeholders in ways of utilizing thermal energy of hot mineral springs.

Strumyani There are no known sources of mineral waters in the municipality.

Treklyano There are no known sources of mineral waters in the municipality.

Hadzhidimovo There are no known sources of mineral waters in the municipality. * The information regarding the utilization of geothermal energy with low potential is presented in Chapter 3.1. and are true for all municipalities.

Solar and wind power

According to Decision No.EM-03 from 01.07.2014 of SEWRC regarding the anticipated electric powers which can be submitted for connection to the electricity supply and distribution networks of sites for the production of electric energy from RES for a period from 01.07.2014 until 30.06.2014, but there are no plans for adding new photovoltaic and wind power plants.

According to the quoted decision and Art.24 of the Energy from Renewable Resources Act (ERRA) however, this restriction does not apply to energetic sites for production of electric energy from renewable sources with a total installed capacity of up 30 kW which are to be installed on roofs and façades of connected to the electricity distribution network buildings and on real estates to them in urbanised territories, as well as to sites with a total installed capacity of up to 200 kW which are to be installed on roofs and facades of structures for production and storage activities connected to the electricity supply or distribution networks in urbanised territories.

Examples for such projects are presented in Chapter 3.2 and Chapter 3.3. These projects should be viewed not only by their technical and economic characteristics but by pilot projects, demonstrating to the community the concern of governing bodies for the issues connected with climate change and decreasing conventional fossil fuel use.

There are opportunities for the construction of water heating installations for DHW in every municipality. Each site should be examined highly independently. Sample plans for such projects are presented in part 3.2.

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Hydropower

For many years new MHPPs are being constructed in the target municipalities and it is safe to say that the potential in some municipalities is completely diminished (for example, Sandanski), while in others there are still opportunities for adding more capacity. By 2010, MHPP construction permits were issued without a real evaluation of the river capacity before new constructions began. Only after agreeing to the plans for the structure of river basins proposed by the four basin directorates (Blagoevgrad, Varna, Pleven, Plovdiv), which are focused on improving the ecological condition of water bodies, was more attention given to the already issued permits and the new requests for MHPP construction. Despite the vast technically useable potential (1.414 MW for the Struma River Valley and 1.588 for the Mesta River Valley), the true potential for building new MHPPs is severely limited by the presence of numerous protected areas, reserves, and national parks on the territory of the target municipalities as well as the fact that permits for water extraction are first issued for drinking and household needs and for irrigation and only after that for hydro energetics and other purposes. Maps of the Struma and Mesta River Basins are presented in Figure 2.

Figure 2. Protected areas of the river basins of Struma and Mesta Rivers101

Because of the highly expressed mountainous terrain of the municipalities, a large number of the settlements are water supplied gravitationally and that is an excellent opportunity for constructing MHPPs at the mitigation shafts of those pipelines. This resource is not utilized to its fullest. A good example for constructing such a plant is the installation on the drinking water pipeline in the town of Kresna. Despite the baseless negative opinion of the society in reference to the quality of drinking

101

Source: Plan for River Basin Management in West Aegean Region 2010 - 2015.

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water and the poorly regulated contractual relations between partners, from a purely technical and financial point of view, the project has very good parameters. In Chapter 3.4 of the current document, we have shown the formula by which stakeholders can determine the estimate capacity of a MHPP of such sort.

The water sector strategy by 2035 predicts development of a Hydro Energetics Development Strategy, based on analyses of the potential not only of larger dams but also of pressurized water supply pipelines suitable for HPP installations. Using hydropower from dams and inlet water pipelines will have a priority over installing new power capacities on running waters (rivers).

Biomass

Table 4 contains summarized information about the wooden biomass on the territory of the examined municipalities. We have given specific recommendations for each municipality that will help achieve the full utilization of the resource.

Table 4. Biomass utilization on the territory of the target municipalities

Municipality Potential for biomass utilization

Bansko

A heating plant, working with wooden biomass, is operating in the town of Bansko. The project can serve as a good example for constructing such plants in other larger towns in the Blagoevgrad and Kyustendil Districts. It is recommended to acquire additional consumers. A large portion of wastes from processing wooden biomass are also being utilized, so it can be said that wooden biomass resources are being used well.

Belitsa

Numerous wood processing enterprises are operating in the municipality. It is recommended to look for ways of utilizing leftover materials. This can be achieved through the construction of a factory producing wooden briquettes which can replace firewood as a source of heating used by households.

Blagoevgrad The town has been supplied with gas with additional expansions of the gas supply network on the way. It must be noted however that this creates unutilized resources of wooden mass which can be used in a biofuel production factory (pellets), after preliminary research.

Boboshevo

The forest fund is relatively smaller than the ones of the other municipalities. The population uses solid fuel for heating. There are two carpentry workshops in the municipality, the leftover timber of which can be used for the production of wooden briquettes in order to replace firewood as a source of heating used by municipalities.

Gotse Delchev The school in Breznitsa Village, Detelina Kindergarten and Ivan Skenderov Hospital all use biomass for heating. The municipality has experience in utilizing biomass and we recommend the utilization of similar projects in other municipal facilities.

Garmen There are two companies producing briquettes and 15 firms specialized in logging and wood processing. Leftover timber from wood processing companies is suitable for producing wooden briquettes. There are no available resources for large-scale pellet production.

Kocherinovo The logging industry is underdeveloped. Available resources are not utilized mostly due to the lack of large consumers. It is recommended that the available resource is used on a local level through the construction of a pellet factory.

Kresna Coniferous species prevail in the forests of the municipality. There is available resource that is not utilized. It is recommended to look into the possibility of creating a factory that produces pellets and wooden chips.

Petrich More than 80% of the forests are deciduous. There is no available resource for large-scale production of biofuels. Although the main municipal facilities use natural gas for heating, it is recommended to examine the possibility of biomass heating.

Razlog There are two factories producing biofuels (pellets). The hospital of Razlog uses a plant with a capacity of 1.5 MW, operating on leftover timber. Biomass resources are utilized well, but we recommend that all municipal sites switch to this resource for heating.

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Rila There are no large wood processing companies in the municipality. Timber is mostly used as a source of heating by the local population. It is recommended to look into opportunities for constructing a pellet-producing factory.

Sandanski

The gasification of Sandanski is currently undergoing but during this process it would be good to conduct technical and economic analyses for the purpose of choosing the most cost-effective fuel for heating. Due to the large available resource of timber, it might be more profitable to use pellets produced in the region and even wooden chips, instead of natural gas, in the cases of larger consumers.

Satovcha

Despite the fact the population and municipal facilities are generally using firewood for heating, there is available unutilized resource from wooden biomass. Even if it is insufficient for satisfying the capacity of a large pellet production, neighbouring municipalities have the necessary forest fund that a factory might need.

Simitli Although there are two pellet producing factories in the municipality, the planned by the forestry management project quantities are not fully utilized. This indicates that there are available resources for increasing the production of biofuels.

Strumyani

After a consultation with the annual plan of Strumyani State Forest Service for 2014 about timber use, it can be said that there is resource for pellet production in the municipality. The construction of such a production, however, is connected with having precise technical and economical budget (business plan) which can be sued to find sources of funding or co-funding.

Treklyano The entire timber production on the territory of the municipality (with the exception of firewood) is processed outside its territory. Constructing a factory producing biofuels on the territory of the municipality will give boost to the development of the local economy.

Hadzhidimovo There are three pellet producing companies in the municipality. To this moment there is a small reserve for increasing this production, but there is not enough resource to construct a new factory.

When constructing a pellet production factory with limited resources in the given municipality, resources from neighbouring municipals can be used. The main indication for the production value is the price of the input material. The closer lumber is to the facility, the better its financial project parameters.

Another advantage with proper utilization of available biomass resources is that management and restoration felling will increase. Currently this activity is not executed properly due to the fact that there is no market for this type of timber.

It is recommended to look into opportunities for all municipal buildings to benefit from the local production of biofuels by changing their fuel base.

Biogas

In this document three main sources of biogas are being examines.

Agriculture. On the territory of the municipalities, animal husbandry is conducted primarily in small farms and that limits the opportunities for the construction of large plants producing thermal and electrical energy from biogas. Another main setback is that animals are mainly bred pastorally. Agricultural farms are small in size as well and due to the prevailing mountainous terrain of the examined municipalities, the percentage of arable lands is lower than in other regions of Bulgaria.

Due to the fragmentation of farms, looking into opportunities for constructing medium in size installations with the sole purpose of thermal energy production seems more practical at this stage. Unfortunately constructing such an installation without subsidies is financially disadvantageous. In the case of several farms in a given regions and opportunities for acquiring sufficient amounts of

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agricultural wastes, it is possible to construct a larger installation for combined production of thermal and electrical energy.

In conclusion, it can be said that the potential for constructing large installations in the given municipalities is not high.

Landfills. New and well-designed MSW landfills are present in Gotse Delchev, Petrich, and Sandanski Municipalities. Both three landfills service less than 80.000 people, an amount generally insufficient for realizing financially advantageous project for constructing an effective installation for landfill gas collection and utilization. According to regulations however, after reclamation of different cells of MSW landfills, disposal of landfill gas through incineration must be done. This is an excellent opportunity to measure the given amount of generated gas and to decide whether there is a technical and financial possibility of using the gas for electrical and/or thermal energy production instead of incinerating it. Currently the first cell of the Gotse Delchev Landfill is being reclaimed, and Cell 2 of the landfill in Petrich has already finished the process. There are upcoming new regional landfills in Blagoevgrad and Razlog but their capacity will also be relatively low for constructing landfill utilizing installations.

In conclusion it can be said that the potential for landfill gas utilization on the territory of the examined municipalities is low.

Wastewaters. There are WWTP or there will be WWTP in the larger towns of the municipalities. There are no plans for sedimentation biogas collection and utilization in Bansko due to small capacity. The same can be said about the WWTPs in Razlog and Gotse Delchev. WWTPs in Sandanski, Petrich, and Blagoevgrad are underway. An analysis of the sediments for biogas production and utilization is recommended in these three cases.

In conclusion, it can be said that the potential for biogas production from sedimentation is not high.

Summary of the potential for development of new projects and RES utilization

Table 5 presents a summary of the market potential of new projects for utilizing different RES types.

Table 5. Potential for development of new projects for RES utilization

Municipality Source

Geothermal Solar Wind Hydro Biomas Biogas

Bansko High Average Very low High Low Very low

Belitsa Average Average Very low High Average Very low

Blagoevgrad High High Very low Low High Average

Boboshevo Low High Very low Low Low Very low

Gotse Delchev Low High Very low High High Average

Garmen High High Very low Low Low Very low

Kocherinovo Very low High Very low Low Average Average

Kresna High High Very low Low Average Very low

Petrich Average High Very low Average Low Average

Razlog Very high High Very low Average Low Low

Rila Average Average Very low Average Average Very low

Sandanski Very high High Very low Low Average Average

Satovcha Very low High Very low Average Average Very low

Simitli Very high High Very low Average Low Low

Strumyani Very low High Very low Low High Very low

Treklyano Very low Average Very low Average High Very low

Hadzhidimovo Very low High Very low Low Low Very low

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3. Technologies for utilizing RES

In this section we will briefly present the different technologies for RES utilization for the production of thermal and electrical energy. Table 6 presents a comparison of the cost price of 1 kWh or thermal energy depending on the used fuel. Prices are without VAT102, to 01.10.2014 and can vary depending on the region. The price of industrial gas oil is with excise tax. Prices for wooden chips and pellets are market prices, since these fuels are cheaper in summer. The third column of the table displays the emission factors of carbon dioxide when it is burned.

Table 6. Comparison of cost price of thermal energy

Fuel Cost price, BGN/kWh

Emission factors,

gCO2/kWh

Wooden chips, distance up to 40 km, humidity up to 30% 0.052 32

Wooden chips, distance up to 40 km, humidity up to 15% 0.053 32

Firewood (fireplace with water jacket) 0.079 9

Firewood (boiler) 0.065 8

Firewood (pyrolysis boiler) 0.056 7

Lignite/ Brown coal 0.081 364

Black coal 0.061 341

Wooden pellets, distance up to 40 km 0.081 43

Natural gas (Rila gas) 0.089 247

Compressed natural gas 0.117 247

Heat pump water-to-water (with geothermal source) 0.044 (0.055)103

205

Heat pump air-to air (air-conditioner) 0.056 (0.081) 293

Electric energy (household consumers) 0.157 (0.196)104

819

Industrial diesel fuel oil 0.188 267

3.1 Geothermal power

Geothermal energy is thermal energy contained below the Earth’s surface. The waters that are seeping into the Earth’s crust make their way towards the core where they are heated and reach extreme temperatures. Some of them rise back to the surface in the form of hot springs or geysers and others remain trapped beneath the surface and form the so-called geothermal reservoirs. It is important to note that the temperature of the crust is constant at a depth of 3 meters and remains between 12оC and 16оC all year round. The types of sources can be classified in the following way: self-discharge or pump sources; and sole deposition or corroding sources of national or local importance. In practice, if a source is self-discharged the investment for direct utilization of available resources is the lowest.

The resources of geothermal energy, examined in this report, can for our purposes be divided into two groups: A) hydro geothermal energy and B) low potential geothermal energy.

Hydro geothermal energy

Hydro geothermal sources (hot springs and geothermal reservoirs) can be divided into two groups:

102

In this report all announced prices are without VAT. The thermal energy prices from Table 6 were used in calculating the financial assessment of the given examples. 103

Prices for non-household users are given in brackets. 104

Price is formed by 20% night and 80% day rate.

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Low temperature sources (from 20оC to 100оC), the energy of which can be used for heating in a direct or indirect scheme and for cooling in an indirect scheme.

Medium and high temperature sources (sources of ground waters under pressure with temperature ranging from 90оC to 180оC), the energy of which can be used for the production of electric energy, directly through steam release or indirectly through evaporation of an organic fluid.

The territory of Bulgaria is rich ne thermal waters with temperatures ranging from 20оC to 100оC (low temperature), so in this research medium and high temperature sources will not be examined. According to a report prepared by the Geological Institute of BAS, springs with thermal water are, to this date, being used mainly for SPA activities, heating and premises air-conditioning, greenhouses, heat pumps, mineral water bottling, non-alcoholic beverages, and others. It can be said that the use of geothermal energy for structural and greenhouse heating directly or through heat pumps is increasing. The price for the produced thermal energy via heat pumps is about 0,044 BGN/kWh.

From the map on Figure 3 you can clearly see that the examined region possesses considerable resource of hydro geothermal energy.

Figure 3. Distribution of hydrothermal basins on the territory of Bulgaria105

When taking a decision for utilizing energy from hydro geothermal sources, the following factors must be determined:

- source type – self-discharge or pump;

- distance from source to consumer – the lower the distance, the lower the initial investments;

105

Source: Bulgarian Geothermal Association

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- chemical composition and mineralisation of water – when choosing a heat exchanger, it must be picked so that it is resistant to the effect of water, which can be corroding or sole deposing;

- temperature of the source – if the source’s temperature is high enough, the water can be used directly for household needs and heating. If it is not however, a water-to-water heat pump is needed. When using the water for heating (directly or via heat pumps) it is mandatory to use an intermediate heat exchanger due to the aggressive properties of some salts and minerals in its composition;

- available resource – the flow which can be used, as well as the minimal temperature of the water that returns to the source;

- needs of the potential consumer – taken into consideration when choosing heat exchanging device.

The type of heating installation and method for utilization – directly or via heat pumps – are determined based on these factors. The type of heating installation is determined by the temperature of the heat carrier (water) in it. With floor heating this temperature ranges from 35оC to 45 оC, with convector heating – from 45оC to 55 оC, with radiator heating – higher than 60 оC. When using water-to-water heat pumps, one must take into consideration the fact that the lower the temperature of the heat carrier during the secondary circle (see the different types of heating installations above), the higher the transformation coefficient106, with which the heat pump is. The following formula can be used for calculating the available thermal capacity:

G = Q x cp x ΔT,

where:

G – Thermal capacity (power), kW;

Q – Utilized flow, l/s, (water density is adopted as 1 kg/l)

cp – Specific thermal capacity = 4,186 кJ/kgoC;

ΔT – Withdrawn temperature from water, oC

For example, even with a flow of 1 l/s, when taking 10 оC from the temperature of the water we get:

G = 1 x 4,186 x 10 = 41,9 kW.

Adopting the pessimistic view that we have 20% losses when transporting, we get final thermal capacity of 33,5 kW. This power, achieved by taking 10 оC from water with a flow of 1 l/s is enough to provide heating for a structure with an area between 200 m2 and 550 m2 almost for free. This area depends on the technical condition of the structure and the thermal physical properties of the cooling elements (walls, roof, windows).

With lower water temperatures one must use heat pumps. As stated in Table 6, the price for heating via water-to-water heat pump is approximately 0,044 BGN/kWh. The determining price factor of thermal energy from geothermal waters is the tax for using water from the source and the transformation coefficient of the stated in the project water-to-water heat pump. In this case the investment is higher since you need to buy a heat pump installation in addition to a heat exchanger. A project of this type must be examined strictly individually by accounting for the characteristics of the heat source (flow and temperature), required thermal capacity of the installation (depending on

106

Transformation coefficient – the ratio of received thermal energy [kWh] to consumed electrical energy [kWh]

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the site), type of heating installation (floor heating, convectors, radiators), as well as distance between the source and the site.

The price for thermal energy collected from a geothermal source is one of the lowest possible even when using a heat pump (this includes the price for heating with wooden chips) and should evaluate the details (unutilized resources, available consumers and the distance to them, required investments) and opportunities for introducing such an installation in municipalities which have available geothermal resources.

The advantages of this type of heating installations are:

- high coefficient of heat pump transformation (from 1 kWh of input electrical energy we get between 4 and 7 kWh thermal energy)

- low cost price of the produced thermal energy (0,044 BGN/kWh);

- extremely low levels of carbon emissions.

When evaluating the disadvantages the following should be accounted for:

- possible case of increased corrosion of heat exchangers, leading to the purchase of more expensive ones or their replacement after a few years of exploitation;

- release of incrustations on the surfaces of the heat exchangers, hence requiring regular maintenance.

Low potential geothermal energy

This is a resource contained in the upper layers of the crust. We will examine three main options for its utilization based on heat pump application.

System with extended horizontal collector

With this option, a coil is dug into the ground at a depth ranging from 1,5 to 3 meters. Usually diluted antifreeze circulates within the coil. The air-conditioning of 100 m2 of a given building requires a hole with a minimal area of 80 m2. Every 10 kW of thermal capacity require between 200 m2 and 700 m2 of pipes. The given values are examples and depend on the terrain, soil type and humidity content, as well as the depth at which the serpentine operates.

System with direct flow of groundwater

To construct this system you need ground waters underneath the site. The temperature of these waters must remain constant throughout the year which, depending on the depth and region, will vary between 6оC and 15оC. Water is received from a drill well via submersible pump. After utilization of its temperature, it is obligatory to return the cold water to the ground via a peripheral (irrigation) well.

System with a deep drill

This system is applied when there is no presence of ground waters in sufficient quantities or an area large enough to place a horizontal collector. In this case, vertical collectors are placed in a deep drill. Usually the heat carrier in the collectors is a strong solution.

Considering what was said earlier about heat pump efficiency, these systems are the most effective when using floor heating since they require lower temperature of the heat carrier. However, by

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comparing the higher investments for floor heating with the investments for convertor heating one gets to the conclusion that precise technical and economic plans are needed before completing projects of such sort.

To this moment the market offers a large variety of water-to-water or salt solution-to-water heat pumps with capacities ranging from 8 kW to more than 100 kW, suitable for air-conditioning, both for separate one-family houses and for large buildings such as kindergartens, schools, and administrative buildings as well.

An installation of the first type (with extended horizontal collector) with capacity of 30 kW required the following investment (in genera): heat pump unit – 10 000 BGN, digging the coil into the ground – 5500 BGN; other expenditures (manometers, cranes, assembly) – 4000 BGN. Prices are indicative and depend on the model of the heal pump (the price of high-end heat pump with a capacity of 30 kW can reach a price of more than 25 000 BGN), as well as on the terrain (humidity and density of the soil). The advantages of the more expensive heat pumps are they are slightly more effective, more reliable, and less noisy.

3.2 Solar power

The energy of the Sun falling on the Earth’s surface can be used in several ways. The most wide spread and effective way to do that is through solar collectors for water heating and photovoltaic systems for electric energy production

Solar collectors for water heating

The energy of the Sun, captured by solar collectors is used mainly for heating water for domestic hot water (DHW) systems or for pools. The most common types of solar collectors are two: flat and evacuated tube. The more displayed one is the flat solar collector which becomes more effective when the producers place glass with selective covering. These collectors have a longer life than the evacuated tube collectors and are more desirable due to their lower prices. Evacuated tube solar collectors on the other hand do have shorter lifespans but they make up for it with higher productivity.

The four main factors when evaluating a project of such nature are: a) quantity of hot water required for a 24-hour period; b) the number of days, when warm water is needed, in a year; c) amount of energy that can be acquired from the facilities; and d) the type of fuel/energy used for the production of hot water which is replaced by hot water produced from solar power. Because of the specific needs of schools and administrative buildings, usually it is not cost-effective for such institutions to use solar collectors. It is not cost-effective for schools mostly due to the lack of consumers during summer and the large distances when transporting the hot water and in the case of administrative buildings – installing solar collectors for hot water is simply economically disadvantageous. The most suitable sites for the installation of such system are residential buildings, hospitals, and kindergartens that operate all year.

You will see in Figure 4 that the location of the sites is just as important as the specific parameters of consumption. As it can be seen on the map of the figure, the South-West Region has high potential for solar power utilization. In order to ensure maximal energy utilization, it is important that the collectors are facing south. An incline of up to 15 degrees does not have a considerable impact on the production, but after that point the effectiveness of utilization drop significantly. Terrain and

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structures in proximity to the installation can also reduce effectiveness by casting shadows on the collector.

Figure 4. Global horizontal solar radiation

The last factor that influences the return on investments is the type of fuel/energy used for the production of hot water which is afterwards replaced by hot water produced by solar power. The differences in fuel prices and, respectively, the payback of investment, can be more than double.

In order to demonstrate the effectiveness of such a system, we have given an example where water heated for DHW purposes by two flat solar collectors in a single-family house with three inhabitants and an established hot water consumption profile located in the town of Sandanski. The collectors have been adjusted to have an inclination of 45о. Due to the sharp contrast in fuel prices we have presented two options for the initial energy resource used for heat production. The RETScreen 4-1 software is used for the calculations. Results have been summarized in Table 7.

Table 7. Sample project for the construction of a DHW heating system

Parameter/dimension

Base fuel Electric energy

Base fuel Natural gas

Boiler No boiler Boiler No boiler

Necessary investment, levs. 2 600* 3 600** 2 600* 3 600**

Amount of saved energy, kWh/year 1 732 1 732 1 732 1 732

Annual energy savings, levs/year 346 346 226 226

Deadline for investment payback, years. 7.5 10.4 11.5 15.9

Saved emissions of СО2, tCO2/year 1.42 1.42 0.35 0.35

* Averaged price – may vary between 2 200 – 3 000 BGN ** Averaged price – may vary between 3 000 – 4 200 BGN

With larger consumers the specific investment decreases, which respectively decreases the payback of investments deadline. At minimal value of the installation and coil boiler the deadline would be 6.4 years, while at maximal price of the installation and purchase of coil boiler – 18,6 years. This sharp contrast is cause by several factors: whether the consumer already has the needed boiler (for

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example they use a fireplace with water jacket for heating which is also used for warming water in winter), what type of fuel is used for heating the water, as well as where the consumer is willing to purchase quality equipment or cheaper but not so good equipment.

Another option for utilizing hot water from solar collectors is to assist the heating system. At the current stage this option is not often practiced since it is too ineffective and economically disadvantageous. The main disadvantages are large investments, large areas that need to be covered by solar collectors and the reduced efficiency and production of heat through solar power in winter. Solar collectors for hot water can be used in industries as well, but in this sector all requirements and conditions are perfectly individual in every case which causes for separate study of hot water consumers, temperature of use and possibilities for collector placement.

Photovoltaic installations

Photovoltaic installations directly transform the solar electromagnetic field into electric energy through cells containing semi-conductive materials. This process can be competed through various technologies, the most common of which are siliceous photovoltaic (PV) panels: monocrystalline, polycrystalline and thin-filmed.

Monocrystalline panels have the highest efficiency (up to 42% theoretically). In practice the effectiveness of such panels ranges from 14% to 18%. Polycrystalline siliceous elements are cheaper but less effective – up to 14%.The effectiveness, which represents what part of the solar energy that has reached a unit of area can be assimilated by the module, influences the area of the element itself, i.e. for the same capacity a polycrystalline module will be slightly bigger. Both types are widely spread.

The third type is thin-filmed (amorphous) photovoltaic panels. This type of panels has significantly lower energy conversion efficiency (up to 10%) but they compensate for it with the following advantages: effective electricity production from diffused light (cloudy weather) and weak influence of outside air on the production of heat. The second quality makes this technology suitable for countries with very warm climate. These panels are still less used than the other 2 types.

The main requirement for designing photovoltaic installations is to prevent shading of the modules (from landscape, from nearby buildings and objects, and from neighbouring modules). The following example is very indicative: an installation constructed in the south part of Bansko Town will produce 12,6% less energy than the same installation placed just 1 km away to the north and all that because of shading on the module caused by the landscape.

Figure 5 shows data for global solar radiation and potential for producing electric energy at an optimized angle of catching sunlight (in Bulgaria it is most efficient to install a module at a 30 о to 34 о angle).

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Figure 5. Global solar radiation and potential for producing electric energy at an optimised module incline107

When determining the effectiveness of an electric energy production from photovoltaic installations, one must consider air pollution and the temperature of the surrounding environment. Surrounding temperature is a defining factor for effective work of the PV panels. If the temperature of the surrounding air goes above 40 оC, energy conversion efficiency can drop to 30%-40%.

In order to demonstrate the effect of constructing a small photovoltaic plant, we have presented several sample analyses of such installations in two different locations within the territory of the studied region. The first location is a flat roof of a community centre in the town of Bansko, while the second location is a randomly chosen flat roof in the centre of Sandanski Town. The PVGis programming product was used for this analysis. The product is free to us in internet (http://re.jrc.ec.europa.eu/pvgis/apps4/pvest.php#). After comparing the two samples with actual projects that have been completed, it is safe to say that the results produced with this software are somewhat pessimistic and when constructing photovoltaic installations in a given location, one can expect even higher annual production. The examined systems have installed capacity of 5 kWp and 30 kWp for each point. When evaluating the financial benefits we use a scenario where all of the energy is used for personal needs. By 01.10.2014 the price of electric energy for a daily tariff set by SEWRC for non-household customers of CHEZ Elektro Balgariya AD, is 213.83 BGN/MWh, and 171,58 BGN/MWh for household customers. For reference, by the same date, preferential purchase prices of energy from photovoltaic plants set by SEWRC Decision No. C-13 from 01.07.2014, are 211,81 BGN/MWh for installations with a maximal capacity of 5 kW and 203,97 BGN/MWh for installations with maximal capacity of 30 kWp. Results are presented in Table 8.

107

Source: Joint Research Center, Institute for Energy and Transport, PVGIS

http://re.jrc.ec.europa.eu/pvgis/apps4/pvest.php

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Table 8. Sample projects for the construction of small photovoltaic plants

Parameter Bansko, 5

kWp Bansko, 30 kWp

Sandanski, 5 kWp

Sandanski, 30 kWp

Approximate used roof area, m2 100 600 100 600

Required investment, BGN 16 000 90 000 16 000 90 000

Produced energy, kWh/year. 6 350 38 100 7 140 42 900

Annual savings (household clients), BGN/year 1090 6537 1125 7361

Annual savings (non-household clients), BGN/year 1358 8147 1527 9173

Payback deadline (household clients), years 14.69 13.77 13.06 12.23

Payback deadline (non-household clients), years 11.78 11.05 10.48 9.81

Saved СО2 emissions, tCO2/year 5.2 31.2 5.8 35.1

It is recommended to construct such installations on the roof of a municipal building in order to demonstrate the effect by preparing an information panel demonstrating the actual production of energy, as well as saved greenhouse gas emissions.

In this research, we do not examine a case for a large photovoltaic centre, since no permits for connecting such installations to the electricity distribution network will be issued under Decision No.EM-03 from 01.07.2014 by SEWRC until 30.06.2015. Any budget prepared now will not be valid for such a long period of time due to the constantly decreasing prices of photovoltaic panels and constantly increasing prices of electric energy.

There are other available options for solar power utilization, such as solar power hubs, hybrid solar collectors (a combination between a flat solar collector and a photovoltaic plant), and others. For the moment these systems are either not suitable for Bulgaria’s climatic conditions or are still too expensive and economically unjustifiable.

Expected results from solar power use are:

- utilization of an unlimited RES resource;

- reduction of greenhouse gas emissions;

- Creating a positive public opinion by demonstrating good examples.

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3.3 Wind power

Wind potential in Bulgaria is not high (Figure 6). Regions with a combined area of only 1400 km2 have average annual wind speed higher than 6.5 m/s.

Figure 6. Map of the win potential in Bulgaria108

In order to have large electricity-producing plants connected to the electricity supply system network average annual wind speed of more than 5 m/s is required. The optimal solution for regions with lower velocities is to construct independent (autonomous) generators for battery recharging and mechanical applications such as water pumping.

Average wind speed however is not the main characteristic when it comes to determining its energy potential. We use density of the energetic stream of wind to evaluate this potential. Table 9 gives information about classification done by using wind density according to Batelle.

Table 9. Classes according to the density of wind energy

Class according to the density of wind energy

10 metres 50 metres

Density, W/m2

Wind speed, m/s

Density, W/m2

Wind speed, m/s

1 <100 <4.4 <200 <5.6

2 100-150 4.4-5.1 200-300 5.6-6.4

3 150-200 5.1-5.6 300-400 6.4-7.0

4 200-250 5.6-6.0 400-500 7.0-7.5

5 250-300 6.0-6.4 500-600 7.5-8.0

6 300-400 6.4-7.0 600-800 8.0-8.8

7 >400 >7.0 >800 >8.8

Practice shows that places with Class 3 (50 metres) or higher a suitable for industrialized wind generators. A Class 3 location respectively equals an average annual wind speed no greater than 6.4 m/s (at 50 metres). Places with Class 4 and beyond are more suited for creating large wind parks.

108

Source: NIMH

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A chart with the density of the energy flow of wind at an elevation of 10 m above the Earth’s surface is given in Figure 7.

Figure 6. Map of wind potential in Bulgaria109

In order to realize such a project in Bulgaria one cannot rely on this data. This process will require a study of the wind for a period no shorter than 13 consecutive months so that the effect of seasons, wind turbulence, air density, influence of hilly parts, and possible freezing can be dismissed as influencing factors. For this purpose one must raise a pole on which to install the measuring equipment.

The available energy potential of wind power is defined after considering the following basic factors:

- areas with a ban on wind generator installation – protected areas, protected areas under NATURA 2000 (defined as unsuitable for large wind generators due to their role in preserving the country’s biodiversity; to a large degree they overlap with protected areas), zones, located at a distance lesser than 500 m from a settlement (does not apply to small wind generators) and forest territories;

- uneven distribution of the energetic wind resource during different seasons of the year;

- physical-geographical characteristics of the region – limited transportation; heavy turbulence; low minimal temperatures;

- technical obstructions – difficult installation, complicated connection to the energy supply network; difficult maintenance.

Considering all these setbacks, in 2013 EKONEKT Union prepared a report in which they presented a new summarized map showing suitable locations for large wind parks (Figure 7). In addition to velocity and density of the energetic flow of wind, this map has accounted for possibilities for the energy supply network to add new capacities as well as protected areas and territories. The green parts are areas without restriction where the electricity supply network can add new capacities.

109

Source: NIMH

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Figure 7. Territories suitable for industrial wind park construction110

In the middle of 2014, SEWRC Decision No. EM-03 from 01.07.2014 was accepted. This decision concerns adding sites producing electrical energy from renewable sources. According to that decision, there are no plans for adding new large wind plants by 01.07.2015. Even if the next decision of the SEWRC in July 2015 guarantees the installation of new capacities, the potential within the territory of the studied municipalities will remain low (Figure 7).

It is important to note that there are regions with regulations that do not apply for small wind generators which are used for personal, total or private consumption supply. Their characteristics differ from those of industrialized wind parks. These small wind generators with capacities ranging from 0,5 to 50 kW are becoming more and more competitive. Unfortunately due to their currently high price and low productivity (especially in urbanised areas) realising such projects is still financially disadvantageous. The advantage is that small wind generators start working at wind speeds of about 2,5 m/s (9 km/h) and reach their maximum at more than 6 m/s, while large industrial wind generators start operating at speeds of 4 to 5 m/s and achieve their maximum at over 10 m/s.

Table 10 provides the parameters of two sample project for small wind generator installation. It is accepted that the generators are installed in Sandanski and the entire energy is used for their own needs. For reference, the price set by SEWRC for energy purchased from wind electrical plants with a capacity no greater than 30 kW is 137,98 BGN/kWh, i.e. lower than the price for which users purchase electrical energy. Although the two examples have used the lowest market prices (when purchasing generators from renown European producers the price can be twice or even thrice as

110

Source: Map with zones of the territory of Bulgaria with respect to wind generation construction. Report. EKONEKT Association, Sofia, 2013.

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high), it is clear that the payback deadlines are over 12 years for a generator with a capacity of 20 kW and 20 years for a generator with a capacity of 2 kW.

Table 10. Sample projects for small wind generator installation

Parameter Wind generator with capacity of

2 kW

Wind generator with capacity of

20 kW

Required investment, BGN 4400 39 780

Produced energy, kWh/year 1086 16 425

Annual savings (household clients), BGN/year 170.3 2577

Annual savings (non-household clients), BGN/year 212.9 3220

Payback deadline (household clients), years 25.8 15.4

Payback deadline (non-household clients), years 20.7 12.4

Saved СО2 emissions, tCO2/year 0.89 13.45

Wind generators with capacities ranging from 0,5 kW do 5 kW are usually used for producing electric energy for sites that are not included in the electricity supply network. Most often this criterion applies to:

- charging car batteries;

- lighting of buildings, parking lots, parks;

- heating water in boilers;

- powering office equipment;

- powering air-conditioning installations;

- operating centrifugal water pumps

- Petroleum torches of kettles/boilers.

Fields where generators with capacity between 5 kW and 50 kW may apply are:

- sites with autonomous work regime with no maintenance work for extensive periods of time;

- high mountainous repeaters and relay stations;

- meteorological stations;

- high mountainous huts and hotels;

- household and industrial sites with no electricity lines;

- Sale of excess electric energy to NEC.

Project values are strongly affected by costs connected with construction of accession network and cable connections between the separate machinery. Installing cable at a distance longer than 200 metres additionally increases investment prices and changes of malfunction along the track.

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3.4 Hydropower

Energy from water masses (hydropower) is used for the production of electric energy in HPP which are divided into small, mini, and micro hydroelectric power plants. Classification is done on the basis of installed capacity. In the category of small HPPs (MHPP) consists of plants with installed capacity no greater than 10 MW, mini HPPs are plants with installed capacity ranging from 100 kW to 500 kW, and micro HPPs – no greater than 100 kW111. The focus of this document is plants with capacity no greater than 10 MW, typically characterized with lower safety requirements, automation, cost price of production, purchase price and staff qualification.

MHPPs are extremely reliable and effective facilities for electrical energy production. They are based on established technologies and are characterized with a high level of automation. The main advantage of MHPP is its high efficiency reaching 70% - 90%. Plants operate with high capacity utilization coefficient, typically higher than 50%, in comparison to 10% for solar and 30% for wind farms. The high level of production predictability is of particular importance, since it overlaps with the annual precipitation profile for the region and irrigation activities in agriculture. Productivity changes slowly over time, i.e. the outgoing capacity gradually changes over a period of days and weeks, not minutes and hours. MHPPs are extremely durable and reliable – their project life is over 50 years.

The most important thing for a successful MHPP is achieving optimal correlation between investment and return. Optimizing when making a technical decision or when choosing equipment and facilities does not always mean the lowest possible price. Very often more expensive components of higher technological quality can be more cost-effective since they have smaller installation and configuration cost, lower exploitation costs and longer lifespan. Bulgaria already has its fair share of firms with vast experience with such facilities. These firms can provide consultation for new entrepreneurs in this field.

The construction of a small HPP is determined by the landscape profile (potential inflow) and its geomorphology. According to the way water is being redirected, small HPPs are classified as: constructed on a dam wall; with sewage derivation and with pipe derivation. Small investors are usually in interested in MHPPs on a dam wall or with pipe derivation, while HPPs with sewage derivation are in most cases a part of large-scale projects which are a source of interest for large investors.

The main compartments in a small HPP are:

- turbine – there are different types of turbines. Choice depends mainly on the fall (respectively inflow) and water flow. As a main compartment of every HPP, the different types of turbines are described in greater detail further down;

- generators – generators transform mechanic energy into electric. Three-phase alternating current generators are used. Depending on the characteristics of the powered network and the capacity of the plant, there is a choice between asynchronous and synchronous generators;

- transformers – they increase the generated pressure to the one of the network. The common solution is a compact three-phase transformer, which is cheaper, lighter and more compact than three separate single-phase transformers. A very important

111

Each party or organisation can have different definitions for small HPPs based on their capacity

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parameter is the distance between the generator and the transformer since cable losses decrease the total effectiveness of the plant;

- defence mechanism – serves to ensure reliability and safety of the power suffer. In order to connect or disconnect the generator to or from the network you must install a generator switch;

- constant supply – most often small HPPs are equipped with a 24 V DC backup supply in order to secure and support the shutdown process of the plant in case of emergency, but to ensure communication with the managing system at all times.

Depending on the type, HPP turbines can be active (Pelton, Michel-Banki, and Turgo) and reactive (Francis, axial turbines – propeller or Kaplan and diagonal water turbines). The work process with active water turbines is characterized with the sole transformation of kinetic energy while reactive turbines transform mostly the potential energy of the water.

The type of turbine is chosen according to the fall (inflow) and water flow by considering the following:

- large inflow – Pelton and Turgo turbines

- Medium inflow – Cross flow, Turgo, and Francis turbines

- Low inflow – Cross flow and Kaplan and propeller turbines.

Figure 8 graphically demonstrates the condition in which different types of water turbines operate.

Figure 8. Work scope for different types of water turbines

When constructing a HPP and when choosing a turbine, one must consider the following:

- water turbines operate with variable water quantities but constant inflow;

Нап

ор

[m]

Дебит [m3/s]

Пелтон или Турго

Францис

Крос флов

Пропелер или Каплан

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- changes in the water quantities have different ranges for different turbines, some can reach a displacement of 30%;

- The choice of nominal turbine capacity depends entirely on its work characteristics and variations of water quantities fed to the turbine.

The main parameters that should be given attention at the stage of planning the project for small HPP construction are: a source with an economically advantageous flow of water mass, year-round accessibility, displacement, character of the outflow through different seasons, atmospheric conditions and presence of a nearby access to the electricity supply network.

The momentary capacity of the facility can be calculated by the following formula:

Pе = g x G x ΔH x ηT x ηE/1000,

where: Pе – electric capacity, kW; g – gravitational acceleration = 9,81 m/s2; G112 – water flow, l/s; ΔH – net inflow, m; ηT – energy conversion efficiency coefficient of the water turbine; ηE – energy conversion efficiency coefficient of the generator.

For example, for a flow of 100 l/s, inflow of 100 m and energy conversion efficiency coefficient of the turbine and generator 0,7 and 0,8 respectively (the given data is indicative and depend on the water pipeline and the type of turbine) we get:

Pе = 9,81 x 100 x 100 x 0,7 x 0,8/1000 = 54,9 kW momentary capacity

By multiplying the capacity with the work time of the plant in hours, we get the anticipated annual production of electric energy:

Ее = Pе x t = 54,9 x 8.760 = 481.239 kWh/year produced electric energy per year

The expected financial revenue depends on the preferential purchase price of electric energy. The purchase price fluctuates depending on the installed capacity of the plant, the net inflow or whether national and/or European funding systems were used for the construction of the plant. A consultation with the web page of SEWRC will give you the actual preferential purchase prices for electric energy.

In this document we examine two cases for MHPP installation – on gravitational water pipelines and on rivers.

MHPP on gravitational pipelines

The main advantages for MHPPs constructed on gravitational pipelines are:

- opportunity for precise evaluation of water resource

- opportunity for precise evaluation of turbine capacity

- Minimal expenditures on hydro-technical facilities.

The main disadvantages are:

112

For simplicity reasons, water density is accepted as 1 kg/m3.

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- locations of the installation have been preliminary determined (mitigation shafts);

- lack of accession network in close proximity;

- availability of ethernite water pipelines.

In the presence of such water pipeline on the territory of a given municipality, data from local Water Supply and Sewage Services and/or Irrigation Systems should be analysed with respect to day-to-night fluctuations of incoming waters and the averaged water quantities for at least a 3-year period. Consider the fact that HPP of such type is constructed as a bypass on mitigation shafts.

The work regime of MHPP constructed on a gravitational water pipeline is defined by the necessary quantity of water to supply the system for drinking and household water supply of settlements. It is obligatory to maintain the bypass connection so that the water supply is not interrupted in those cases where a larger quantity of water is needed or the unit is not functioning.

The main technical parameters that should be accounted for when developing and investment proposition for the construction of such a facility are:

- maximal water quantity;

- inflow;

- maximal turbine capacity

- expected annual volume of processed water for the production of electric energy;

- expected annual production of electric energy.

When installing a MHPP on a gravitational water pipeline one can use centrifugal pumps operating in reverse mode instead of turbines. It has to be known that this machinery operates at a constant flow, i.e. its effectiveness drastically drops when the flow fluctuates.

The technology for producing electric energy from drinking water does involve contamination of the processed and returned to the pipeline water. When constructing turbines, modern producers use bearing elements which do not require additional greasing. The anti-corrosion coating that is applied to all components that are in contact with the turbine water also makes it useable in such installations.

MHPP on rivers

The main advantages of MHPPs, constructed on running waters, are:

- opportunity to choose the location;

- opportunity for constructing larger capacities and/or cascades.

The main disadvantages are:

- preliminary permits for water resources use are required;

- more complicated installations are required (water catchment, fish passage, pipeline, etc.)

- environmental impact assessment is required.

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MHPPs constructed on running waters can be divided in two types – river bank and derivational.

River bank HPPs are low-pressure plants which are constructed mainly on large rivers. The rivers a blocked with several-metre-high dams and the plant is constructed under the dam itself. In this case the water current is not redirected, only stopped. From en ecological point of view, a problem with these plants is the formation of deep artificial lakes behind the dams.

Derivational HPPs are plants for which a water catchment is being established, most often by constructing a dam. Usually the plant is located several kilometres downstream from the dam, at which the water is inserted into a pipe and led to the turbines. Only after that is water finally allowed to return to the river bank.

Figure 9 shows a map of Bulgaria which depicts the four basin directorates. In the West Aegean Basin Directorate there are 64 HPPs with 24 requests for new plant construction in the 2010-2012 period alone. The interest of private investors for installing new capacities is obvious. On the one hand it is recommended for municipalities to seek partnerships with the private sector when constructing new plants, but on the other hand municipalities must demonstrate concern for the environment and to prevent the construction of new facilities which will influence it negatively.

Figure 9. Existing HPP and submitted requests for new plants113

Sample parameters for the construction of a small river bank HPP with a capacity of 500-600 kW and an annual production of 2.000-2.500 MWh are presented in Table 11.

113

Source: Ikonomedia AD, http://www.capital.bg/shimg/oo_1810317.jpg

http://www.capital.bg/shimg/oo_1810317.jpg

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Table 11: Sample parameters of a project for the construction of a MHPP

Investments (BGN)

Profit (BGN/year)

Simple payback deadline (years)

Annual production (MWh/year)

Saved emission (t/year)

2.150.000 400.370 5,4 2.200 2.286

This type of projects is suitable for public-private funding in which the municipality provides the terrain, issues permits, and provides the infrastructure, while the private partner provides the funding for the equipment.

The expected advantages of hydropower utilization for electricity production are:

- utilization of available RES

- creation of new jobs and higher employment rates in the municipality;

- use of local materials and facilities;

- acquisition of additional profit for the municipal budget.

3.5 Biomass

The two major types of biomass suitable for direct burning and generating of thermal energy are timber and waste from agriculture (e.g. straw or fast growing grass and trees). The installations for straw burning are significantly more complex and more expensive than those using timber biomass. Same is valid for the exploitation and maintenance of straw boilers. Exit gases have bigger concentration of hazardous emissions compared to those burning timber. The collection and transportation of straw is also harder. Larger areas or premises are needed to store the straw. This is due to both its low density and the clear seasonality of its collection (about 7 weeks per year). As a result of the above listed factors, the burning of straw for energy purposes only is recommended for large plants (over 2-3 MW) where the size of savings coming from the low price of the resource can compensate the more expensive investment and high costs of storage, exploitation and maintenance.

Keeping all this in mind, as well as the mostly mountainous character of the studied municipalities that does not allow large-scale growing of cereals, we shall only review here the opportunities for utilization of timber biomass.

In view of the existence of a significant unused resource of timber biomass on the territory of studied municipalities, the provision of consumers will lead not only to its utilization but also to new jobs and the reduction of heating costs in municipal buildings and sites.

Replacement of fuel base

A comparison of the cost price of 1 kWh of thermal energy depending on the type of fuel used is presented in Table 6 at the beginning of the current chapter.

Having in mind that many of the schools, kindergartens and other municipal sites still use oil, natural gas or electricity for heating, the replacement of the fuel base is a good alternative. The advantages of timber slivers and pellets over coal and wood is that the filling of boilers may be done fully

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automatically and the burning process is very well controlled, i.e. unlike the case of coal or wood resources, there is no risk of overheating here.

When using an alternative fuel (timber slivers or pellets), one should keep in mind that slivers with humidity of above 35% are unsuitable for small installations below 150 kW. There, the most logical choice would be pellets or dry calibrated chips. A very important condition before the replacement of the fuel base is to insulate the site. It is not recommended to replace fuel installations in non-insulated environment as the parameters of these installations will not be proper and they will not operate at their optimum.

Except for new boiler costs, the investment proposal should also include a store room for the resources. Each building should be assessed independently, keeping in mind that sliver heating requires a bigger investment due to the lower density of the fuel (respectively larger volumes). Table 12 shows exemplary investment costs for replacement of the fuel base depending on the power of the installation; the price includes also the construction of store room(s).

Table 12. Exemplary investment costs for fuel base replacement

New boiler power, kW

Investment, BGN / no VAT

Recommended fuel

30 8.500 pellets / slivers, up to 15 % humidity



200 34.000 slivers, up to 30 % humidity

In case of large consumers, e.g. above 1,5 MW, one could also consider the opportunities of building a large centralized heating plant. In Bansko, for example, such a plant with installed power of 10 MW heats part of municipal sites and possesses free capacity for the joining of new consumers. The fuel used is timber slivers; timber is being supplied in the form of logs which are cut on the spot. Despite the large capacity and – respectively – big fuel needs of the plant, they have never had difficulties to supply the raw material. Another example is the heating plant in Razlog, feeding the local hospital. It has one boiler with production power of 1,5 MW. The fuel used is timber waste from the wood-processing industry, and the plant answers all the needs of the hospital.

Bio-fuel production

The production of pellets is a relatively new way of utilizing RES resources not only in Bulgaria but worldwide. This type of fuel is being produced in the last 25-30 years but practice has already shown that the investments in such a production are characterized by low risks and good return rates. Naturally, the main factor influencing the cost price of the final product and respectively the market opportunities is the cost of raw material. Given the existence of large quantities of raw material in the area of production, it can be said that the investment can be paid back within 4 years, if the market is properly analyzed and production – properly organized.

It is important to note that there is a growing demand for this product allowing the obtaining of thermal energy from a cheaper source, with the same automation options as gas, liquid fuels and electric power.

An analysis has been made of the implementation of such a project based on expected annual production of 6.000 tons, working in three shifts 5 days a week. Such a factory would need a site of 4 to 6 decares and about 12.000 tons of raw timber per year. The main facilities for this production are:

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- Pellet presses;

- Drying installation;

- Mills for primary and secondary grounding;

- Packing machine;

- Cooler;

- Cargo machine;

- Motor car;

- Support equipment (transport lines, bucket elevators and others).

The building needed for this capacity should be about 300 m2, and the covered store space – about 2.000 m2.

It is recommended to envisage a reserve for production of timber slivers that might consequently heat larger sites.

Table 13 shows the main parameters of a project for the construction of a plant for pellets with a capacity of 1 to 1,5 t/hour.

Table 13. Assessment of a project for bio-fuel plant construction

Investment, BGN Income

(BGN/year) Simple return term

(years)

1.600.000 455.000 3,5

The expected benefits from the utilization of available free resources of timber biomass are the following:

- Secure new jobs and better employment on the territory of the municipality;

- Secure additional income for the municipal budget;

- Acquire savings through the use of a cheaper fuel;

- Improve comfort in the buildings.

3.6 Biogas

Biogas is a flammable gas containing methane, carbon dioxide and small quantities of other gases. The primary products for its production include: liquid and solid manure, straw, garden waste, fermented fruit biomass, sewerage sludge, household waste, etc. During biogas production, apart from the transformation of waste products into renewable energy, it is also possible to acquire secondary biomass (fertilizer). The secondary biomass is a product rich in nutrition substances and very suitable for utilization in agriculture.

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Biogas can be obtained in natural ways in landfills and purification plants where there are favorable conditions for methane-producing bacteria. In order to obtain methane from animal and plant waste, however, it is necessary to use a bio-reactor which maintains an optimal temperature and pH level.

The main technologies for the production of biogas are:

- Direct burning in boilers. Used for heating and in production processes;

- Combined production of thermal and electric energy. They use internal combustion engines or turbines. The electric energy not used for the purposes of the site itself is being sold at preferential prices while the thermal energy can be used for heating or in production processes if there is a suitable consumer nearby;

- Purification and concentration until the necessary quality of natural gas is reached. This may be used in the gas supply system or as automobile fuel. In the present report, we have not examined this method, evaluated as not sufficiently favourable financially and only suitable for very large installations.

We have examined in detail the following main biogas sources:

- Agriculture (animal manure, agricultural waste);

- Household waste (solid waste depots);

- Wastewaters (treatment plants).

Agriculture

The optimal method for biogas production is through anaerobic decomposition (anaerobic fermentation) which is a microbiological process of organic matter deconstruction in the lack of oxygen. The process is conducted in hermetic reactors – reservoirs (bio-reactors).

Table 14 shows the expected energy production from 1 ton of agricultural waste.

Table 14. Energetic potential of agricultural waste

Source Biogas production, m3/t

Methane in biogas, % Energy, kWh/t

Liquid manure from cattle 25 60 0,18

Liquid pig manure 28 65 0,21

Fermentation marc 40 61 0,28

Solid manure from cattle 45 60 0,32

Solid pig manure 60 60 0,42

Domestic birds’ excrements 80 60 0,56

Beetroot 88 53 0,54

Organic waste 100 61 0,71

Fodder beetroot 111 51 0,66

Grass fodder 172 54 1,08

Maze fodder 202 52 1,23

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According to their size, function and location, there are three main types of agricultural installations for biogas production:

- Household biogas installations (small);

- Farm biogas installations (medium to large);

- Centralized biogas installations (medium to large).

Household installations. Mostly built and used in countries such as Nepal, China and India. The resources for these installations come from the household itself and/or domestic agricultural activities while the obtained biogas is used for cooking and lighting. As a whole, these are reservoirs dug into the ground with a volume of 6 m3 to 10 m3, where substrate is fed daily and fermented mass is taken out. The process is not automatic; it does not require stirring or additional heating. Such installations work most effectively in warm climate and are suitable for places with limited access to energy resources. Nonetheless, the European market offers installations with fermenting volume of 6 m3 to 10 m3, suitable for a household breeding 3 to 5 animal units114. Exemplary prices of such installations vary between 6.000 and 12.000 BGN but it is not suitable for heating due to its small capacity.

Farm installations. This type of installation is being used in EU countries. They are usually calculated to serve one farm, utilizing the whole generated organic waste. Different technologies are being used but as a whole the principle is identical with small alterations. Manure is fed to the fermenting unit (bio-reactor) where it is being stirred at certain intervals at a programmed temperature. Produced gas may be stored in a gas balloon at low pressure and be pressed before burning; it may also be fed directly to a compressor and from there – to a biogas generator. Installations are used mainly for heating but the production of electricity is also possible. Such installations are suitable for farms breeding between 20 and 100 animal units. The idea is to have a maximally simplified technology, with maximum reliability. The main factors when designing the installation are:

- Type of substrate;

- Humidity of substrate;

- Daily substrate quantities;

- Selection of process – mesophyllic or thermophyllic;

- Type of construction.

The type, humidity and daily quantities of substrate depend on the animals bred on the territory of the farm. The selection of a process defines the time for substrate keeping in the reactor and is related to the temperature maintained inside, namely:

- For psychophyllic processes, temperature is between 20оС and 25оС, and the substrate stays inside for 30 to 40 days;

- For mesophyllic processes, temperature is between 35оС and 40оС, and the substrate stays inside for 15 to 25 days;

- For thermophyllic processes, temperature is between 45оС and 56оС, and the substrate stays inside for 10 to 15 days.

114

For biogas production: 1 animal unit = 1 cow = 5 calves = 6 pigs up to 90 kg = 250 hens.

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The thermophyllic process has the highest efficiency and also the biggest environmental significance. The selection of construction depends on the humidity of the source material – if it is below 20%, wet fermentation is recommended; if it is above 25% - dry methanization.

We could give here the following example. A biogas installation designed for 50 animal units produces about 60 m³ of biogas per day with methane concentration of about 60% which equals 2,5 m³/h biogas or 1,5 m3/h of methane. The installation is meant only for heating, with a thermal power (having considered the level of efficiency of the boiler and the energy needed to heat the bio-reactor in winter) of 11 to 12 kW. The exemplary price of such an installation is between 80000 and 100000 BGN.

Centralized installations. These are installations serving one large or several smaller neighbouring farms, with the advantage of lower costs, time and labour for biomass transportation to and from the installation. It is economically viable with these installations to produce not only thermal but also electric energy.

The principle of work of those installations is the same as described above for the small and medium ones. Practice has shown that, at present, the most financially suitable installations are the ones with electric power between 300 and 700 kW. As an example, if the installed electric power is about 500 kW, it needs about 30 tons of corn silage per day, and some quantities of manure. If we accept that a hectare of land can provide about 2,5 kW of electric power per year, we would need a minimum of 200 hectares of land to secure resources for the 500 kW installation. Such installations should be planned only after a detailed study and analysis of the available waste in the vicinity of the site. In general, the steps to evaluate such a type of project before taking a decision for implementation are the following:

Stage 1: Detailed evaluation of the quantities of available and potential resources;

Stage 2: Analysis of the energy value of the available resources. For large installations, this analysis is usually done by the company supplying the facilities, after taking probes and making lab analyses of waste.

Stage 3: Selection of a site for the installation. This includes an assessment of available infrastructure, the costs for joining the electricity supply network, and the opportunities to sell the thermal energy produced.

Stage 4: On the basis of information gained in the previous stages, a project proposal is developed including a financial analysis of the project. A well written and justified proposal, demonstrating in detail all possible benefits from the project, can guarantee the acquiring of funds for the project.

We could give here the following example of a large installation. If we have a raw resource of liquid manure from cattle (6.000 t/year) and corn silage (4.000 t/year), we could construct an installation with electric power of 298 kW and thermal power of 280 kW. Taking into consideration the costs for ‘personal needs’ (10% of the produced electricity and 20% of the produced heat), the expected annual production is 2.226 MWh of electricity and 1.864 MWh of heat. The initial investment is about 2 million BGN.

This example cannot be considered universal. The quantity of animal manure can be very small which will raise the installation costs, and if bird excrements are used, this could reduce investments due to the need of a smaller fermentation tank.

When developing a project proposal, one should consider also the opportunity for utilization of secondary biomass as it is good as a fertilizer.

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Household waste

Despite the European policies for reducing the quantities of organic waste, 94% of the waste generated by the population in Bulgaria is still stored in landfills. This means that in the next years, there should be a good potential for the construction of installations utilizing the generated landfill gas. Practice has shown that 1 ton of waste stored in well maintained landfills can generate between 200 and 300 m3 of gas which means 1 to 1,5 MWh of potential energy.

Gas quantities in solid waste depots depend on the following:

- The morphological structure of waste. The bigger the percentage of organic waste, the larger the generated gas quantities;

- The correct design and construction of the site. The proper design of the separate depot cells means a proper estimation of the expected volumes of waste (in general, one cell should be in exploitation for about 10 years), the existence of an isolation layer and a drainage layer. It is obligatory to remove wastewaters from the site, not only from environmental point of view but also with the purpose of preserving the whole gas quantity inside the depot and its consequent utilization;

- The way of exploitation. The correct exploitation of the depot, i.e. the densifying of waste using a compactor and/or bulldozer and the daily soiling are obligatory according to current legislation but are also the main factor for generating larger quantities of gas.

International example and studies made in Bulgaria show that, for the construction of an installation for electricity production out of waste gas, the correspondent depot should serve at least 80.000 citizens. According to Bulgarian legislation, however, in order to dispose of waste gas after the re-cultivation of a given cell, the gas must be taken out of the depot and burned. In such cases, even with smaller depots, it is proper to measure the gas quantity and estimate whether it is economically viable to install a generator for electricity production.

Here we could give the following example about a Bulgarian depot hosting an average of 23.000 tons of waste per year. The total amount of waste in the first cell after re-cultivation is 195.500 tons. After an analysis by a theoretical model for the evaluation of waste gas potential developed especially for the countries of Central and Eastern Europe115, it is shown that the territory of the site could accommodate a small generator module of 80 kW. The annual electricity production would be 520 MWh, and the investment - 430.000 BGN. The return term is under 5 years, having in mind that heat utilization is not foreseen since there is no consumer nearby.

It is recommended, in cases of smaller depot capacities, to explore the opportunity of direct burning of waste gas and use of the thermal energy in production processes (i.e. all year round). Practice has shown that, given the resources of waste gas, it is economically viable to feed a site no more than 3 km away, using a pipe from the depot. A suitable consumer for the gas can be, for instance, a winery that uses thermal energy for fermentation processes all year round.

Wastewaters

Anaerobic decomposition is a well-used and well-developed method for treatment of primary and secondary residues resulting from the aerobic cleaning of urban waste waters. The system is applied in many developed countries in combination with innovative systems for city wastewaters treatment.

115

Landfill Gas Recovery and Use through South East Europe, EnEffect, 2013

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The process of anaerobic decomposition is used to stabilize and reduce the final volumes of residue and obtain energy resources.

Most engineering companies offering treatment concepts for sewerage sludge also provide systems for anaerobic decomposition of this material. In the European countries, between 30 and 70% of sewerage sludge is treated through anaerobic decomposition depending on national legislation and priorities. Wastewater residues may be also used as organic fertilizer or for energy production through incineration. There are countries where sewerage sludge is deposited in landfills but it is accepted that this policy has negative impacts on the environment due to the flowing of biogenic elements into underground waters and the releasing of various gas emissions into the atmosphere. Because of the higher pollution risk for the environment, the storing of residues in landfills is forbidden in most European states.

When producing biogas from wastewater treatment plants residues, bio-reactors maintain a mesophyllic process with a temperature of 35оС to 40оС. International experience shows that the production of thermal and electric energy from the gas released during the stabilization of residues is economically viable with treatment plants serving more than 50.000 citizens. However, Directive 91/271/ЕС states that all plants serving more than 20.000 citizens should envisage the catching and treatment of biogas by introducing anaerobic stabilization of residues. The biogas is caught and burned after obligatory measuring of volumes. This means that, even for smaller wastewater treatment plants there will be information whether it is economically and technically viable to use the biogas for energy production.

4. Major obstacles hindering the implementation of RES projects

Along with the purely technical obstacles mostly resulting from the hardly accessible location of the source, the lack of electricity supply network in the vicinity or the lack of consumers of thermal power, there are many other barriers standing in front of the full utilization of RES resources.

Heavy administrative procedures. When evaluating a certain investment proposal, along with the adequate feasibility study showing the technical practicability and financial parameters, of key importance are also the administrative procedures for obtaining the necessary permits and other documents. Unfortunately, practice has shown that there are a number of subjective difficulties regarding the provision of documentation for project start-up, caused by the complicated and long administrative procedures and slow and ineffective administration.

Political uncertainty. It is logical for potential investors to expect that if local government is changed, there will be no changes concerning the support policy for a certain type of projects. The lack of continuity leading to changes of regulations creates unforeseen obstacles for the implementation of projects that have started but not come to an end before those changes take place.

Legislation and lack of adequate national and local strategies for RES utilization. Unfortunately, in recent years the business has given priority to projects for wind turbines and photo-voltaic centers with large capacities which presently pose difficulties in achieving a balance in Bulgaria’s energetic system due to the lack of funds for its modernization. It often happens so that system operators have to limit the production from large wind and photo-voltaic plants. This is one of the reasons for Decision No. EM-03 from 01.07.2014 of the State Commission for Energy Regulation quoted above, limiting the acquisition of new large wind and photo-voltaic plants. The advantages of building small

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installations of up to 200 kW in urban territories are that there are no losses of the distribution network (the energy is being consumed where produced) and no arable lands are being wasted. Up to this point, no financial stimuli have been foreseen for the production of thermal energy from RES. There is no state funding for scientific activities related to studying and discovery of new geothermal sources.

Insufficient awareness about some of the RES utilization technologies. This obstacle concerns mostly projects related to the use of geothermal power and biogas. At present, there are other types of RES such as biomass for heating and solar power for DHW that are being used increasingly by physical entities and less by public authorities.

Insufficient awareness of alternative financial mechanisms. The main funding sources that are preferred not only by public authorities but also by the private business are EC structural funds. Implemented projects for RES utilization as public-private partnerships or through ESCO contracts are still very rare due to the lack of trust in municipalities and the fear of unforeseen obstacles which results only from the lack of knowledge and experience that causes the signing of disadvantageous contracts.

Public opinion. Due to the boom in large wind and photo-voltaic plants construction from recent years and the consequent increase of electricity prices, the public has formed an opinion that RES are the priority of rich investors making benefits on the higher costs paid by the final consumer. The permits issued for new micro hydropower plants construction without a real evaluation of the capacity of local water sources have, on their part, created a notion that RES utilization leads to environmental problems. It is still widely accepted that the construction of micro hydropower plants at existing water supply lines affects the quality of drinking water.

Price of electricity. While in Germany, for instance, a domestic photo-voltaic plant of 5 kWp is paid back within 7 years despite the lower sun intensity, in Bulgaria that term is longer due to the lower price of electric energy that is being swapped.

5. Funding mechanisms

This part is devoted to active funds and programmes which might finance parts of projects or whole projects oriented towards the utilization of RES. Along with pure grant financing, we have suggested some schemes for preferential loans. These could complete grant funding in parts of the investments where such is not possible or to serve as bridge funding for the whole project.

Before choosing a certain funding source, the investor should first have located the existing RES (Chapter 2) and got acquainted with the technologies allowing their use (Chapter 3). The application for funding is always related to the preparation of a feasibility study including a technical proposal and a detailed financial analysis.

We could divide the most important parameters of a project for RES construction in three groups:

- Technical parameters: installation power (kW); annual energy production (kWh/year);

- Ecological parameters: saved CO2 emissions (tCO2/year);

- Economic parameters: internal revenue rate (IRR), Net present value (NPV), buying-back terms.

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When defining the financial parameters of a certain project, one should pay attention to the expected raise of price of energy-carriers in the future, as well as the current levels of interest rates offered by financial institutions.

5.1 Personal funds

Municipalities do not own a large amount of personal funds that could be used for the construction of new RES-based facilities. For that purpose we recommend that personal funds are only used as co-funding of grant projects or loans requiring such. We speak of both projects for direct implementation and such for feasibility studies, energy analyses, etc. Each municipality should envisage certain amounts for such types of activities in its budget for at least 5 years ahead.

It is also possible for a certain municipality to participate in private-public partnerships using its municipal assets (e.g. lands).

5.2 Loans

Each municipality should analyze its ability to pay credits against its budget and in accordance with the Public Finance Act. Bank credits could be used as personal co-funding, bridge funding and for energy audits, feasibility studies and project designs that are required by Operational Programmes and the Rural Development Programme.

5.3 Energy Efficiency and Renewable Sources Fund

This fund is a legal entity established in accordance with Chapter 4, Part I of the Energy Efficiency Act of 2004. The Fund manages financial resources acquired by the Republic of Bulgaria from the Global Environmental Facility (GEF) with the mediation of the International Bank for Restoration and Development and other donors. It has been structured as a self-funding commercial mechanism which concentrates its efforts on supporting investments in energy efficiency and on enhancing the development of a working market for energy efficiency and RES in Bulgaria. The main environmental purpose of the Fund is to support the identification, development and funding of realistic projects for improvement of energy efficiency leading to the reduction of greenhouse gas emissions in the atmosphere.

The Fund has the functions of a funding institution for loans and loan guarantees, as well as a consulting center. It assists Bulgarian companies, municipalities and individuals in the preparation of investment projects for energy efficiency and RES. It provides funding, co-funding or guarantees in front of other funding institutions.

Its beneficiaries could be municipalities, as well as commercial entities and individuals. All energy efficiency and RES projects approved by the Fund must answer the following requirements:

- The project must introduce established technologies;

- The project budget should be between 30.000 and 3.000.000 BGN;

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- The share of the loan-receiver must be no less than 10% in cases of joint funding (the Fund – commercial bank) and 25% in cases of sole financing from the Fund;

- The project should have return terms of no more than 5 years.

Funding application has the following main stages:

1) Project identification (loan applicant). 2) Initial assessment of project feasibility (if necessary, by the Fund or an external

consultant). 3) Preparation of an Initial Project Proposal (loan applicant). 4) Submission of the Initial Project Proposal and additional documentation to the Fund

(loan applicant). 5) Support for the improvement of the Initial Project Proposal and the additional

documents (the Fund). 6) Project proposal evaluation (the Fund). 7) Formal decision for funding approval (the Fund). 8) Closure of financial negotiations and provision of funds.

The deadline for evaluation of a submitted loan project is 6 weeks given the applicant succeeds to provide all necessary additional documents without delay.

The Fund offers financial products in three main categories:

1. Credits with annual interest between 4,5 % and 8 % for municipalities and between 5% and 9% for corporate clients and legal entities. The maximum duration of project return is 7 years.

2. Partial guarantees for credits - 50% and 80%. 3. Portfolio guarantees for companies for energy services or for restoration of

buildings.

5.4 National Trust Eco Fund

The National Trust Eco Fund was established in October 1995 as a result of a swap agreement “Loan against Environment’ between the governments of Switzerland and Bulgaria.

According to Art. 66 (1) of the Environment Protection Act, the purpose of the Fund is to manage finances provided by swap deals “Loan against Environment” and “Loan against Nature” from international trade with prescribed emission units of greenhouse gases, from the selling of quotas for greenhouse gases emissions for aviation activities, as well as money provided on the basis of other types of agreements with international, foreign or Bulgarian funding sources oriented towards environment protection in the Republic of Bulgaria.

The Fund contributes to the implementation of Bulgarian Government’s policy and the international obligations taken by the state in the sphere of environment protection.

Up to this point, the Fund has financed 100 projects (71 of which municipal) with a total value of about 24 million BGN.

Officially, the funding is divided into two:

Axis One – projects funded as a percentage of investment

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Here they accept project concepts which will be financed on the basis of the amount of investment needed to decrease the emissions of greenhouse gases, following an energy analysis and a developed investment project in line with Bulgarian legislation.

The projects are based on the amount of the investment needed for:

- Decreasing the emissions of greenhouse gases following an energy analysis and a developed investment project in line with Bulgarian legislation;

- Decreasing the emissions of greenhouse gases in public transport;

- Establishment and maintenance of forest plantations and land use related to the decrease of greenhouse gases emissions.

There are the following types of projects:

- Projects related to energy efficiency raising in buildings (insulation of outer walls, roof insulation, windows and doors replacement, energy-saving measures (ESM) for lighting, ESM on tools for measuring, control and management incl. “temperature decrease”, ESM on buildings’ installations, solar panels and others. The beneficiaries may include municipalities, state institutions, owners’ associations registered in line with the Housing Ownership Act, traders as per the Commerce Act, legal entities with non-profit purposes;

- Projects in the transport sector related to shifting from diesel/petrol to sustainable bio-fuels as per the RES Act; projects for optimization of the automobile and railroad transport or projects leading to the decrease of greenhouse gases emissions. The beneficiaries may be municipalities, state institutions, traders as per the Commerce Act;

- Projects for forestation, forest management and land use related to the decrease of greenhouse gases emissions. The beneficiaries may be individuals and traders as per the Commerce Act who own non-agricultural lands or lands from the Forest Fund; municipalities owning the same types of lands; state forestries and hunting services, national parks and scientific forestry offices managing non-agricultural lands or state lands from the Forestry Fund.

Axis Two – projects funded on the basis of reduced emissions

These are projects for which the amount of grant funding will be calculated on the basis of prognosis for decreased greenhouse gases emissions achieved as a result of investments made. The grants themselves may be provided at the start of the investment process.

There are the following types of projects:

- Projects for decreasing the greenhouse gases emissions in industry including energy efficiency, replacement of fuel resources, combined production of thermal and electric power, electricity production in a combined cycle, introduction of the use of low-potential thermal energy, thermal pump installations, etc.;

- Production of energy from biomass, utilization of geothermal energy.

At present, there are no open calls for proposals.

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5.5 European Energy Efficiency Fund

The European Energy Efficiency Fund – EEEF is a mechanism of the European Commission providing funding for public sector projects related to Goal 20/20/20 of the EU.

The beneficiaries can be municipalities, local and regional institutions, as well as public and private representatives of those authorities.

EEEF is a fund for supporting the development of new projects or additional stages of already existing ones. It does not provide grants but marketing funding decisions in the form of 15-years loans. The maximum sum under a single project is 25 million EUR. The loan interest depends on the investment risk and may be fixed or flexible.

Only the projects approved by the EEEF may apply to the Technical Assistance Programme funded by the European Commission. The technical support amounts 20 million EUR and may cover, as a grant, up to 90% of project total costs. The decision for funding takes up to 6 months after the submission of a grant request.

Payments are made by Deutsche Bank which is also a manager of the Fund and is responsible for the evaluation and development of investment proposals. The final project approval decision is made by the responsible EEEF bodies.

Eligibility criteria:

- Reduction of greenhouse gases emissions by 20%;

- Increase of RES use by 20%;

- Decrease of energy consumption through improvement of energy efficiency by 20%;

- For public organizations or authorities applying in the programme, it is necessary to specify project goals and expected results, as well as annual strategies for their achievement.

In relation to that requirement, the Technical Assistance Programme at the EEEF may support the authorities through the development and introduction of strategies for carbon emissions reduction.

Applying is possible at any time; there is no starting or end date.

5.6 BG04 Energy Efficiency and Renewable Energy Programme

The BG04 Energy Efficiency and Renewable Energy Programme is funded by the Financial Mechanism of the European Economic Area (FM of EEA) 2009 – 2014 on the basis of a memorandum of understanding signed between the Republic of Bulgaria and Norway, Iceland and Lichtenstein. It covers two programme areas – Energy Efficiency (Programme Area 5) and Renewable Energy (Programme Area 6) of EEA and was approved on 20.12.2012.

The programme operator is the Ministry of Economy and Energetics while the programme partner of the donor is the Directorate for Water Resources and Energy at the Ministry of Petrol and Energetics of Norway.

The main goal of the programme is the decreasing of greenhouse gases and air pollutants emissions, the expectancy being that it will contribute to the reduction of 35.000 tons of СО2. The assigned

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funds amount 15.600.288 EUR of which 13.260.245 EUR (85%) are grant money and 2.340.043 EUR (15%) are state co-funding.

The period of programme operation is up to 16.04.2017 while the deadline for activities implementation is 30.04.2016.

The procedures for projects are as follows:

1. Use of water power as a source for the production of electricity by small hydropower plants (HPPs) at irrigation and water supply systems – a pilot innovation scheme:

- Beneficiaries – state and municipal enterprises, municipalities;

- Budget of the procedure including national co-funding – 2.352.942 EUR;

- Minimal grant – 250.000 EUR;

- Maximal grant – 750.000 EUR;

- Maximum grant percentage – 90%.

2. Increase of energy efficiency and use of RES energy for heating in municipal and state buildings and local heating systems:

2.1. Increase of energy efficiency – replacement of fuels/boilers, replacement and reconstruction of consumer stations and heating installations:

- Beneficiaries – state and municipalities;


- Minimal grant – 170.000 EUR;

- Maximal grant – 500.000 EUR;

- Maximum grant percentage – 100% for public buildings owned by the state or a municipality; 60% for local heating systems.

2.2. Use of heating energy from RES – use of biomass, solar, air-thermal, hydrothermal and geothermal power for heating:

- Beneficiaries – state and municipalities;

- Budget of the procedure including national co-funding - 4.705.882 EUR;

- Minimal grant - 170.000 EUR;

- Maximal grant - 500.000 EUR;

- Maximum grant percentage - 100% for public buildings owned by the state or a municipality; 60% for local heating systems.

3. Production of fuels out of biomass – pellets, timber slivers/chips, eco-bricks, farm biogas, etc.:

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- Beneficiaries – small and medium enterprises;




- Maximum grant percentage - 60%.

4. Raising administrative capacity and awareness for energy efficiency and RES:

- Beneficiaries – universities, educational and training organizations, energy services companies.

- Budget of the procedure including national co-funding - 624.065 EUR;



- Maximum grant percentage - 90%.

The budgets quoted above are tentative and the Programme Operator has reserved the right to transfer funds from one procedure to another in order to fund quality projects.

The schedule for the start of procedures will be published on the web sites of the Operator and the Programme116.

5.7 Rural Development Programme 2014–2020

At the time of the preparation of this document, the rules that will guide the funding of various projects under the Rural Development Programme 2014 – 2020 have yet to be approved but of the so far formulated seven priorities, special attention should be paid to Priority 5: “Enhancing the efficiency of resource utilization and supporting the transition to a low-carbon and resistent to climate change economy in the sectors of agriculture, foods and forests” and especially Priority Area 5c: “Facilitating supplies and use of RES from secondary products, waste and other non-food materials for the purposes of bio-economy”.

The financial aid under the programme will be distributed for transfers of knowledge and skills, schemes for product quality improvement, investments in physical assets, development of agricultural firms and others. The total budget for Bulgaria in the period 2014 – 2020 is over 2 billion EUR.

During the previous programme period, most of the municipalities included in this study were declared as rural areas (Fig. 10).

116

The calls for proposals under Components 2 and 3 were opened in the beginning of October 2014, right before the submission of this report. The deadline for submission of project proposals is 17.01.2015

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Figure 10. Grouping of rural municipalities under the Rural Development Programme 2007-2013

The following types of projects can be funded under this programme:

- Projects for opening of plants for bio-fuel production by using the resources from forestries or wood-processing factories;

- Projects for the production of biogas from plant and animal waste in small and medium enterprises;

- Other projects for the utilization of RES.

5.8 Operational Programmes 2014–2020

At the time of preparation of this report, the rules that will guide project funding under the various operational programmes are yet to be approved. Here we present the main priorities of the programmes concerning the implementation of RES-related projects.

Environment Operational Programme 2014 –2020 г.

The Environment Operational Programme 2014 – 2020 will be divided into 4 priority axes: Waters, Waste, NATURA 2000 and Biodiversity, and Prevention and Management of the Risk of Floods. The first two of these may also include the construction of facilities for RES utilization through the burning of biogas in solid waste depots and wastewater treatment plants. Among the programme priorities are the construction of water supply infrastructure in urban centers of 10.000 inhabitants and more and such with population of 2000 and more which have been declared a priority in the river basins management plans. It also covers the implementation of demonstration/pilot projects with the purpose of collecting, synthesizing, dissemination and introduction of new, non-traditional successful measures, good practices and management approaches in the sphere of waste management.

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Innovations and Competitiveness Operational Programme2014–2020 г.

This Operational Programme has the purpose to stimulate the growth of Bulgarian economy and to raise its competitiveness among EC countries. The measures for growth and competitiveness also cover opportunities for innovations in enterprises and joint projects of companies and universities; measures for increase of energy efficiency in enterprises and decrease of the use of conventional energy; reduction of greenhouse gases emissions; effective resources utilization systems, etc. Special attention should be paid to Priority Axis 2: “Energy technologies and energy efficiency” and especially to investment priority 2.1. Energy and resource efficiency: “Support for the increase of energy efficiency in enterprises – including the preparation and implementation of studies to identify the needs of energy efficiency in enterprises; introduction of technologies and production lines leading to the increase of energy efficiency in the supported enterprises; limitation of the use of conventional energy in production; reduction of greenhouse gases emissions (incl. through systems for catching and keeping them); works resulting in improvement of the energy and thermal characteristics of the buildings of factories and others.”

The Operational Programme can also fund projects for replacement of the fuel base, i.e. use of RES for heating and production processes in small and medium enterprises.

Regions in Growth Operational Programme 2014–2020 г.

The main priority of this Operational Programme in the period 2014 – 2020 will be the sustainable and integrated urban development. The priority covers a wide range of acceptable investments. The Programme envisages targeted investments in RES and improvement of the energy efficiency of buildings. Concentration is achieved by focusing in eligible cities (Fig. 11) and more precisely within the impact zones of the corresponding Integrated Plans for Urban Restoration and Development. Special attention should be paid to Priority Axis 1: Sustainable and Integrated Urban Development, Investment Priority 1.1. “Support for energy efficiency, for intelligent energy management and the use of renewable energy in public infrastructure, including public buildings and the housing sector”.

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Figure 11. Eligible towns for support for sustainable and integrated urban development under Regions

in Growth Operational Programme 2014-2020117

The whole Priority Axis 1 will be implemented through financial instruments, preference given to the less developed regions. The Axis will cover investments for RES introduction to buildings after the application of energy efficiency measures, including multi-family housing properties. There will be an opportunity for receiving loans and guarantees for returnable investments, for energy efficiency measures and use of RES energy in multi-family housing properties and students’ boarding houses.

The beneficiaries of Priority Axis 1 include the Renewal of Housing Properties Directorate of the Ministry of Regional Development/ Housing Renewal Fund; 67 municipalities as per Chapter 4.2 “Sustainable Urban Development” of the Programme (incl. Blagoevgrad, Petrich, Gotse Delchev, Razlog and Sandanski), colleges, universities and legal entities managing students’ boarding houses.

5.9 Energy Efficiency Programme of the European Investment Bank and Kozlodui International Fund

The Programme envisages the combination of a loan (funds have been provided by the European Investment Bank and are accessible via the partner banks of the Programme) and grant money (Kozlodui International Fund). For municipalities and other public organizations the grant can reach up to 20% of the project budget while for private companies and organizations – up to 15% for

117

Environmental Assessment of Regions in Growth Operational Programme 2014 – 2020, Non-Technical Summary, Sofia, October 2013

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projects in the field of energy efficiency and up to 20% for projects in the sphere of RES. Loans can secure up to 50% of project budgets (75% in very rare occasions). The share of private projects is 25% of the total Programme budget. The costs from the grant are being certified by an independent energy expert.

The following sub-sectors can be financed under the Programme:

- Energy saving / energy efficiency in housing property;

- Small power plants for combined production of thermal and electric energy;

- Wind energy;

- Electricity supply companies;

- Gas supply;

- Solar power: photo-voltaic and thermal sun collectors;

- Hydropower plants;

- Geothermal energy;

- Heating supply.

The partner banks of the Programme are Reiffeisenbank Bulgaria and Unicredit Bulbank.

5.10 Cross-Border Cooperation Programmes

The final versions of the Cross-Border Cooperation Programmes 2014 – 2020 for Bulgaria – Serbia and Bulgaria – Macedonia under the Instrument for Pre-accession Aid (IPA) have been submitted to the EC for final approval.

The Cross-Border Cooperation Programme Greece – Bulgaria draft is also expecting approval by the European Commission.

These programmes can provide funding for investment projects as well as the so-called ‘soft’ projects related to energy analyses, feasibility studies, information campaigns, municipal planning, trainings, etc.

5.11 LIFE Programme

The LIFE Programme funds projects contributing to the development and implementation of policies and legislation in the field of environment. It facilitates the integration of specific environmental problems into other policies and, in the broader term, contributes to sustainable development.

On 19.03.2014, the LIFE long-term work plan for the period 2014 – 2017 was accepted, with a budget of 1.796.242.000 EUR which will be used to fund projects in the following priority areas:

1. A total sum of 1.347.074.499 EUR for the sub-programme for environment divided as follows:

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- 495.845.763 EUR for Priority Area “Environment and Resource Efficiency”;

- 610.068.900 EUR for Priority Area “Nature and Biodiversity“;

- 162.999.836 EUR for Priority Area “Environmental Governance and Information”;

- 78.160.000 EUR for additional activities costs.

2. A total amount of 449.167.501 EUR for the sub-programme for climate action divided as follows:

- 193.559.591 EUR for Priority Area “Climate Change Mitigation”;

- 190.389.591 EUR for Priority Area “Climate Change Adaptation“;

- 47.588.319 EUR for Priority Area “LIFE Climate Governance and Information“;

- 17.630.000 EUR for additional activities costs.

The LIFE funds assigned for the separate states depend on the following factors: number and density of population, total area of NATURA 2000 sites and their share of the total area of the state. Bulgaria was assigned 3,04% of the overall Programme budget.

There are no limitations as to what organizations may apply for funding but the project proposal must prove their organizational and financial capacity to implement it. The following types of projects will be financed: pilot, demonstration, best practices, integrated, technical assistance, capacity building, preparatory, information, awareness and dissemination.

The programme could also support a planning process for the construction of a pilot biomass utilization plant in a given municipality. It is possible that the other activities for the plant are funded under the so-called integrated projects including other sources of finance.

5.12 Guaranteed Result Contracts (ESCO contracts)

The ESCO services present a business model copied from the developed European countries and USA. The model has been developing in Bulgaria in the past few years but unfortunately the market for such services is still underdeveloped here. The ESCO companies are specialized in the offering of energy-saving services to the market. Their main activity is the development of complete engineering for reduction of energy consumption, respectively the costs for energy supplies. The companies use their own or provided by third parties funds to cover all investment activities under a certain project and get their benefit from the achieved savings during the period set as ‘return’. The obligation of the client is to provide funds for the annual energy costs, equal to the ones he made before the introduction of the energy-saving measures. In order to accomplish that service, a special contract is signed between the contracting authority and the contractor known as ESCO Contract or a Guaranteed Result Contract. It is a specific trade contract regulated by a special order under the Energy Efficiency Act aiming at energy efficiency measures in buildings owned by the state or municipalities.

As the invested funds under such projects are paid back by actual savings, the whole financial and commercial risk is carried by the ESCO company. The contract parties may include ministries,

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municipalities, industrial enterprises and private entities. Most often, these contracts are signed for 5 to 10 years. After that term, the improvements remain property of the site owner.

Although this type of contracts is mainly related to the introduction of energy-saving measures, the replacement of fuel base and the installation of biomass-using boilers is one of the most frequent measures, especially in the areas rich in timber. The implementation of such a contract leads not only to the better utilization of local biomass resources but also to the improvement of the buildings.

The ESCO companies offer to their clients the accomplishment of an energy survey, the identification of potentials for energy and cost savings and 100% funding up to the level of guaranteed savings that are being divided between the company and the client.

The involvement of an independent consultant in the negotiations on the contract and the baseline for calculating savings, as well as in the evaluation of actual savings and the monitoring of energy consumption during project implementation is of tremendous importance for the protection of both parties’ interests.

5.13 Energetics and Energy Savings Fund

The Energetics and Energy Savings Fund (EESF) is a shareholder company with a specific investment purpose. It is the first fund in Bulgaria that invests in the securitization of collectables under energy efficiency contracts, i.e. investing of funds gained through the sales of securities in collectables, primarily from projects in the fields of energetics and energy efficiency.

The activities / measures funded by the EESF are the following: support for public-private partnerships in the field of energy efficiency in 3 main directions – buildings designed and built before 1998; industrial enterprises and infrastructure projects; energy efficiency projects in buildings owned by the state and municipalities, implementation of energy efficiency measures in industry, engineering for reduction of energy costs in the enterprises; energy efficiency measures for street lights; complex services – energy surveys, analysis and modeling, selection of measures, design, funding, implementation and monitoring.

The beneficiaries may be municipalities as well as corporate clients and individuals.

Although the EESF is oriented primarily towards energy efficiency, such measures could be combined with replacement of the fuel base and use of bio-fuels, as well as for heating and industrial purposes.

5.14 Public-Private Partnerships (PPP)

In cases where the municipality does not have enough personal or acquired external funds in order to implement a large-scale project for RES utilization, an excellent option is the involvement of business and other partners who have the same interests. Such projects might be:

- Construction of a bio-fuel factory (pellets and timber slivers) – the municipality may participate by provision of land and of raw material for the factory;

- Construction of micro hydropower plants – land and infrastructure;

- Construction of small thermal power plants – land and provision of fuel.

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PPP could be of key importance for project funding as the municipalities may not apply alone under some of the Operational Programmes (not being a micro, small or medium enterprise).

6. Conclusions

According to the RES Act, each municipality has to develop a municipal long- and short-term programme for stimulating the use of RES in line with the National Action Plan for RES energy. These programmes should include:

- Evaluations of the existing and forecast potential of the resources for RES energy production;

- Measures for RES energy usage;

- Measures to stimulate the production of RES energy;

- Analysis of the opportunities for construction of energy sites for RES energy production;

- Schemes for supporting projects for production and use of RES energy;

- Annual information and educational campaigns for the population.

During the preparation of this document, only the municipality of RIla presented to the team a draft version of the Municipal Long-Term Programme for Stimulating the Use of RES and Biomass. The programme covers the period 2014 – 2020.

The municipalities should not see these programmes as a pure formality but as an instrument for achieving better utilization of the existing RES resources. The main benefits of the utilization of those resources can be summarized as follows:

- Increasing the income in the municipal budget;

- Decreasing energy consumption from conventional fuels in the municipality;

- Increasing the security of energy supplies;

- Increasing jobs;

- Decreasing the hazardous emissions and the emissions of greenhouse gases in the atmosphere;

- Increasing the share of utilized EU funds for RES projects;

- Increasing the welfare of population and decreasing health risks.

When preparing their programmes, the municipalities should analyze the various RES types. The municipalities from Southwest Bulgaria explored in this report must pay special attention to the following types of sources which have the biggest unutilized potential on their territories.

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Geothermal energy

Special attention to the warm mineral springs on their territory must pay the municipalities of Razlog, Sandanski, Simitli, Bansko, Blagoevgrad, Garmen and Kresna. The municipalities of Belitsa, Petrich, Rila, Boboshevo and Gotse Delchev also have sources of mineral water but the resources are either limited or already utilized. All municipalities may benefit from the low-potential geothermal energy through thermal pump installations (see Chapter 3.1).

Biomass

On the territories of the studied municipalities, the resources of timber biomass are not being used completely. The management and restoration loggings envisaged in the forestry management plans are not being fully implemented due to the lack of markets for the timber. The highest potential for projects to utilize existing timber biomass resources possess the municipalities of Blagoevgrad, Gotse Delchev, Strumyani and Treklyano. Municipalities such as Bansko, Gotse Delchev and Razlog have already implemented projects for the utilization of free biomass resources to produce thermal energy and the others can follow their good example.

Hydropower

The municipalities with highest potential are Bansko, Belaitsa and Gotse Delchev. Due to the mountainous landscape of the municipalities in question, many of the settlements are being supplied using the gravity method. All municipalities should therefore concentrate on the construction of micro hydropower plants on existing water supply systems, keeping in mind that this is a national priority according to the National Strategy for Management and Development of the Water Sector.

Solar power

Although for the moment the connecting of large photo-voltaic parks to the electricity supply system is not allowed, all municipalities have the potential to build new installations for electricity production for personal needs or for thermal energy on the roofs of various buildings (see Chapter 3.2). Unfortunately, the financial indicators of the projects for photo-voltaic installations are still not very good.

The region has a smaller potential for RES projects connected to the following sources:

Wind power

Large-scale (industrial) wind generators will not be connected to the electricity supply network until the middle of 2015. Due to the condition of these networks on the territories of the studied municipalities, it is unlikely that they would be able to acquire new power even after that date. The small wind generators from 0,5 to 50 kW, although excluded from that limitation, are still too expensive and not of interest to private investors. Such wind generators are suitable for isolated areas with absent electricity supply system.

Biogas

It is due to the mountainous landscape of the studied municipalities that there are no large animal-breeding farms (mostly pasture breeding applied) and no large producers of agricultural products. There are mostly small farms whose organic waste is not sufficient for the construction of a large-scale plant for production of thermal or electric power from biogas.

From everything said so far, we could conclude that the resources of RES on the territory of the studied municipalities are not being fully utilized. The main reasons for that are the heavy

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administrative procedures, political uncertainty, the lack of strategies, low public awareness and the low price of electric power (see Chapter 4). It is exactly with the purpose to raise public awareness that we have presented in the current report the following:

- A summary of the RES resources on the territory of each municipality (Chapter 2); - A review of the possible technologies for utilization of those resources (Chapter 3); - A review of the funding mechanisms for RES utilization projects (Chapter 5); - Recommendations for the better utilization of RES resources (Chapter 7).

7. Recommendations

In this part of the report, we have listed our recommendations about how to implement specific projects for the utilization of RES. We have also paid attention to the role of municipal authorities as bodies that should inform and involve the public, facilitating the better utilization of RES.

7.1 Main steps for the implementation of a project for RES utilization

Step 1

Define the existing and available resources. A summary of the available resources for each individual municipality have been presented in Chapter 2 of the present document. The stakeholders should get well acquainted with those resources and consider whether or not there are conditions for their utilization. For example, in cases of available warm mineral springs, of importance is the presence of thermal energy consumers, while in cases of sufficient sun radiation, the main factor is the landscape and the location of the site for installation of the photovoltaic system, as well as the conditions for joining the electricity supply network. We have given an example above about the territory of Bansko where only a kilometer distance between installations leads to a difference in annual production of 12,6%.

Step 2

Selection of a resource utilization technology. In Chapter 3, we have examined the main technologies for the utilization of various types of RES. They depend mainly on the characteristics of the source (e.g. the temperature of mineral waters, the quantities of manure and waste from agriculture, etc.)

Step 3

Feasibility study. After the exploration of available RES and the opportunities for their utilization, one should invest in the preparation of a detailed feasibility study. The development of that document requires the involvement of high quality experts in the utilization of the specific types of RES. Having passed through Steps 1 and 2, the stakeholder should be ready to set correctly the criteria for the study where the experts should analyze not only the technical but also the financial features of the potential project. The study should include the following project parameters:

- Expected energy production (thermal or electric);

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- Expected saving of fuel or energy (if conventional fuels or energy are to be replaced);

- Expected decrease of the emissions of greenhouse gases;

- Expected investment costs and costs of exploitation and maintenance of installations;

- Terms of buying back the investment;

- Net present value (NPV) of the project;

- Internal revenue rate (IRR) of the project.

With some projects (e.g. construction of a micro hydro power plant), special attention must be paid to project eligibility in terms of environment protection.

In case the project is related to the use of RES for buildings’ heating, it is sufficient to perform an energy survey of the building(s) in question.

Step 4

Determine the funding source. For the feasibility study, the municipality or another stakeholder might apply for funding but may also afford to invest their own money. For the actual implementation of the RES utilization project, however, usually they use various funding sources. The ones available at the present moment have been described in Chapter 5. In most cases, the well-prepared feasibility study including the above parameters of the specific project is sufficient for the application to various funds and commercial banks. A project design is usually required when applying to the Operational Programmes. In those cases the beneficiaries also use the services of consultancy firms for the preparation of all documents needed but if there is sufficient capacity and professionalism, the beneficiary might prepare everything itself.

It should be noted that the municipal budget should be used not for project implementation but for fundraising.

Step 5

Prepare detailed project design. Select a contractor. It is necessary to pay serious attention to the preparation of tender documents and procedures. The selected contractors should be able to provide high quality of implementation of the project design and the works applied. All project implementation documents must be ready at this stage.

Step 6

Project implementation. At this phase, the contracting authority must provide supervision to guarantee the quality and timely implementation of the activities.

Step 7

Measure and verify results. Very often this step is omitted but it is of great importance for the overall evaluation of the implemented project. It is obligatory for projects with signed guaranteed-result contracts, in which cases it is recommended that the measuring and verification is done by external firms in order to avoid potential conflicts of interests between the contractor and the contracting authority. Furthermore, the measuring and verification of results might serve as a basis for the preparation of analyses which could help to improve and upgrade the project with the

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purpose to increase produced/saved energy and/or decrease the costs of exploitation and maintenance. In case a certain municipality implements a project with a short-term return rate, leading to the decrease of greenhouse gases emissions and of financial costs, these results have to be publicized among local people in order to gain public support for the full utilization of RES.

7.2 Role of the municipality for the full utilization of free RES resources

The level of RES utilization on the territory of each municipality is set by the behavior of households, companies, production units and the municipal administration itself. The municipality often has only indirect options to influence energy producers and users. This part of the report covers various forms and instruments for motivating energy users to take actions to increase the share of RES energy in everyday consumption.

The motivating efforts of the municipality may be undertaken, for instance, through awareness raising by opening info desks accessible for individuals and companies; dissemination of practical advice for the utilization of accessible RES (solar power, biomass, etc.); implementation of demonstration and pilot projects by the municipality or other entities; educational activities in schools and universities; consultancy services related to technical or financial aid, etc. A useful instrument for the motivating function of the municipality could be local taxes and incentive programmes.

Awareness raising is possible only through active communication with the public based on a communication strategy (PR). This process (based on several main elements such as strategic goal-and priority-setting; analysis of stakeholders; message development; media planning; organization and resource provision) must be seen as an instrument of local policy and be based on active dialogue with local social groups. It is recommended to develop communication plans for every separate target group containing clear aims, messages and communication tools. Each target group has a specific consumption of communication channels and prefers different communication sources; so the communication channels should be specified in accordance with the precise group. The expected results of public communication could include: achieve transparency of municipal policy regarding RES utilization; build mutual trust between the municipal administration and local community; gain better public support for the implementation of municipal programmes; change attitudes of all entities involved in energy production and consumption; change the investment behavior of citizens and companies (in the best-case scenario).

The preparation of a communication plan aiming at the better use of RES on the territory of a certain municipality contributes significantly to the realization of the priorities of every municipal short- or long-term programme for the stimulation of RES use.

The main target groups that should be given special attention in the communication plan are the following:

- Municipal Council;

- Managers of municipal property;

- Municipal companies;

- Local tax payers as per the Energy Efficiency Act, incl. energy companies;

- Construction companies and distributors of materials, components and technologies;

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- Local offices and individual members of branch organizations (Bulgarian Economic Chamber, Bulgarian Chamber of Commerce and Industry and others);

- Local small and medium enterprises (SMEs);

- Individual owners of houses or representatives of condominiums;

- Civil associations and NGOs;

- Educational institutions (kindergartens, schools, professional training centers);

Regional Information Centers;

- Banks and other local financial institutions;

- Regional and local media, etc.

The main communication tools could include:

- Dissemination of leaflets and brochures;

- Direct marketing (sending letters via electronic and traditional mail);

- Organization of debates and public meetings;

- Involvement of local stakeholders in the decision-making processes;

- Ads on electronic media (radio, TV);

- Printed ads;

- Press-releases and interviews with public figures;

- Press-conferences;

- On-line ads;

- Discussion forums, blogs, social networks;

- Parallel media events of demonstration or pilot projects;

- Special events (participation of famous persons, demonstrations of project efficiency, city screening, etc.);

- Participation in fairs, specialized forums and others.

The organization of media events during the implementation of demonstration projects which intend to show the efficiency and usefulness of a certain type of projects has the aim to mobilize political and public support for their broader utilization. The implementation of pilot projects that could then be multiplied at many places gives a good example that the public might follow.

In order to implement a communication campaign in the most effective possible way, it is recommended that local media capacities are used. It is good for every municipal administration to have its own database with contacts of media and partner organizations that it could use to translate the right messages to the right target groups. Although regional media are not that well developed in Bulgaria, they should be given special attention as target groups generally have bigger trust in them

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for the covering of local problems and issues. Furthermore, it is easier and more efficient to create media contents especially for them.

It is advisable to apply a mix of communication tools. Practice has shown that the best results come from personal contact. At the same time, this way of communication requires a lot of time, provides access to a limited number of people and is thus often less efficient. The media are much more suitable if one wants to reach a vast number of people. The defect in this case is that information is often too general and the use of media can be quite expensive. The involvement of a professional external advisor is usually a necessary condition for the achievement of optimal media-mix, especially when there is no specialized department for media relations.

The successfully implemented communication strategy is the best mechanism to build public trust and mobilize public support for the accomplishment of any municipal programme.

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