Geopolitical tensions are laying bare fragilities in the global energy system

17.10.2024

vetroturbina_energija — Photo-illustration: Unsplash (Bert Sz)

Regional conflicts and geopolitical strains are highlighting significant fragilities in today’s global energy system, making clear the need for stronger policies and greater investments to accelerate and expand the transition to cleaner and more secure technologies, according to the IEA’s new World Energy Outlook 2024.

The latest edition of the World Energy Outlook (WEO), the most authoritative global source of energy analysis and projections, examines how shifting market trends, evolving geopolitical uncertainties, emerging technologies, advancing clean energy transitions and growing climate change impacts are all changing what it means to have secure energy systems. In particular, the new report underscores that today’s geopolitical tensions and fragmentation are creating major risks both for energy security and for global action on reducing greenhouse gas emissions.

The report’s projections based on today’s policy settings indicate that the world is set to enter a new energy market context in the coming years, marked by continued geopolitical hazards but also by relatively abundant supply of multiple fuels and technologies. This includes an overhang of oil and liquefied natural gas (LNG) supply coming into view during the second half of the 2020s, alongside a large surfeit of manufacturing capacity for some key clean energy technologies, notably solar PV and batteries.

“In the second half of this decade, the prospect of more ample – or even surplus – supplies of oil and natural gas, depending on how geopolitical tensions evolve, would move us into a very different energy world from the one we have experienced in recent years during the global energy crisis,” said IEA Executive Director Fatih Birol. “It implies downward pressure on prices, providing some relief for consumers that have been hit hard by price spikes. The breathing space from fuel price pressures can provide policymakers with room to focus on stepping up investments in clean energy transitions and removing inefficient fossil fuel subsidies. This means government policies and consumer choices will have huge consequences for the future of the energy sector and for tackling climate change.”

Based on today’s policy settings, the report finds that low-emissions sources are set to generate more than half of the world’s electricity before 2030 – and demand for all three fossil fuels – coal, oil and gas – is still projected to peak by the end of the decade. Clean energy is entering the energy system at an unprecedented rate, but deployment is far from uniform across technologies and markets.

In this context, the WEO-2024 also shows that the contours of a new, more electrified energy system are coming into focus as global electricity demand soars. Electricity use has grown at twice the pace of overall energy demand over the last decade, with two-thirds of the global increase in electricity demand over the last ten years coming from China.

Photo-illustration: Unsplash (Matthew T Rader)

“In previous World Energy Outlooks, the IEA made it clear that the future of the global energy system is electric – and now it is visible to everyone,” said Dr Birol. “In energy history, we’ve witnessed the Age of Coal and the Age of Oil – and we’re now moving at speed into the Age of Electricity, which will define the global energy system going forward and increasingly be based on clean sources of electricity.”

“As with many other global energy trends today, China is a major part of what is happening,” Dr Birol added. “Whether it’s investment, fossil fuel demand, electricity consumption, deployment of renewables, the market for EVs, or clean technology manufacturing, we are now in a world where almost every energy story is essentially a China story. Just one example: China’s solar expansion is now proceeding at such a rate that, by the early 2030s – less than ten years from now – China’s solar power generation alone could exceed the total electricity demand of the United States today.”

Global electricity demand growth is set to accelerate further in the years ahead, adding the equivalent of Japanese demand to global electricity use each year in a scenario based on today’s policy settings – and rising even more quickly in scenarios that meet national and global goals for achieving net zero emissions.

For clean energy to continue growing at pace, much greater investment in new energy systems, especially in electricity grids and energy storage, are necessary. Today, for every dollar spent on renewable power, 60 cents are spent on grids and storage, highlighting how essential supporting infrastructure is not keeping pace with clean energy transitions. Secure decarbonisation of the electricity sector requires investment in grids and storage to increase even more quickly than clean generation, and the investment ratio to rebalance to 1:1. Many power systems are currently vulnerable to an increase in extreme weather events, putting a premium on efforts to bolster their resilience and digital security.

Despite growing momentum behind clean energy transitions, the world is still a long way from a trajectory aligned with its net zero goals. Decisions by governments, investors and consumers too often entrench the flaws in today’s energy system, rather than pushing it towards a cleaner and safer path, the report finds. Reflecting the uncertainties in the current energy world, the WEO-2024 includes sensitivity analysis for the speed at which renewables and electric mobility might grow, how fast demand for LNG might rise, and how heatwaves, efficiency policies and the rise of artificial intelligence (AI) might affect electricity demand going forward.

Photo-illustration: Unsplash (Federico Beccari)

Based on today’s policy settings, global carbon dioxide emissions are set to peak imminently, but the absence of a sharp decline after that means the world is on course for a rise of 2.4 °C in global average temperatures by the end of the century, well above the Paris Agreement goal of limiting global warming to 1.5 °C. The report underlines the inextricable links between risks of energy security and climate change. In many areas of the world, extreme weather events, intensified by decades of high emissions, are already posing profound challenges for the secure and reliable operation of energy systems, including increasingly severe heatwaves, droughts, floods and storms.

A new energy system needs to be built to last, the WEO-2024 emphasises, one that prioritises security, resilience and flexibility, and ensures that benefits of the new energy economy are shared and inclusive. In some regions of the world, high financing costs and project risks are limiting the spread of cost-competitive clean energy technologies to where they are needed most. This is especially the case in developing economies where these technologies can deliver the biggest returns for sustainable development and emissions reductions. Lack of access to energy remains the most fundamental inequity in today’s energy system, with 750 million people – predominantly in sub-Saharan Africa – without access to electricity and over 2 billion without clean cooking fuels.

To address the evolving energy challenges faced by countries around the world, the IEA is convening an International Summit on the Future of Energy Security in the second quarter of 2025. Hosted by the UK government in London, the Summit will assess the existing and emerging risks facing the global energy system, focusing on solutions and opportunities. And to explore the implications of AI for the energy sector, the IEA will host a Global Conference on Energy & AI at its headquarters in Paris on 4 and 5 December. High-level participants will discuss how pioneering AI technologies can change the way the world produces, consumes and distributes energy.

Source: IEA

Energy Transition In Serbia – Challenges and Potential

16.10.2024

karsten-wurth-0w-uTa0Xz7w-unsplash — Photo-illustration: Unsplash (karsten-wurth)

The energy transition in Serbia has become a burning issue in recent years, especially after a significant increase in the capacity of renewable energy sources (RES). However, despite Serbia managing to almost double these capacities compared to 2022, it still lags behind many countries in the region. In an effort to understand why this is the case, we spoke with Jovan Rajić, the founder and head of the legal team at the Regulatory Institute for Renewable Energy and Environment (RERI), who revealed the main challenges Serbia faces on its path to energy transition and outlined key steps that can lead us to the desired goal.

Photo-illustration: Unsplash (mariana-proenca)

Mr Rajić explains that the increase in RES capacity in Serbia is partly a result of the adoption of the new Energy Law, which established a solid legal framework for further sector development. However, issues arose due to delays in adopting secondary legislation, resulting in the first auctions occurring only last year. Although these auctions represent a significant step forward, our interlocutor reminds us that they were completed with partial success, particularly regarding solar and wind energy projects. He also adds that investors in the energy sector expect legal certainty and a clear and predictable business environment based on market principles and competition rules. Although Serbia has significant natural potential for RES development, especially in the solar and wind areas, our interlocutor notes that the current business environment is not attractive enough.

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“What every country needs to provide for investors is legal certainty and a clear and predictable business environment based on market principles, competition rules, and equal opportunities for all market participants. If this exists, and considering the undeniable natural potential that our country has for developing RES projects, especially in solar and wind, then the interest of investors should not be questioned at all. Unfortunately, the business environment in our country is such that it does not guarantee the fulfillment of all these prerequisites I mentioned, so maybe this is where we should look for the reasons for this lag behind the region. The high level of corruption in all areas of society and direct contracts have not unfortunately spared the energy sector”, says Mr. Rajić.

He underlines that the so-called strategic partnerships, recognized in the Energy Law, are not necessarily the solution to these problems. For instance, last year’s tender from the Ministry of Mining and Energy for the construction of solar power plants with a capacity of 1 GW caused controversy due to restrictive conditions that are hard to fulfill.

Goals by 2030 – Ambition or Reality?

The recently adopted Integrated Plan for Energy and Climate sets ambitious goals for Serbia, stating that by 2030, 45 percent of electricity should come from RES. However, the question arises as to how realistic these goals truly are. Namely, the Energy Community Ministerial Council set a target of 40.7 percent of RES in gross final consumption for Serbia by 2030, which many experts have assessed as overly ambitious.

Photo-illustration: Unsplash (Mark Merner)

“I have the impression that in Serbia, no strategic documents, such as plans, strategies, etc., are given due consideration. These documents should be prepared according to the highest possible standards of professional involvement and participation and informing the relevant public so that the end of the process yields solutions that will outline the path for all relevant regulations and their implementation. However, public policy documents are viewed as legally non-binding acts, which we adopt just to tick off some item of a specific accession chapter or to receive a positive assessment from the Energy Community”, our interlocutor adds. He also points out that a realistic goal has been set only for Bosnia and Herzegovina and how relevant regional institutions approach drafting these documents and setting goals, which they consider non-binding in a broader context.

Instead, Serbia must abandon the practice of adopting strategic documents solely to fulfill formal obligations to international bodies and focus on creating concrete, achievable plans that will enable a sustainable energy transition.

“Without a specifically devised, clear, and realistic action plan or defining how certain goals can be achieved, it won’t be possible to accomplish them. It seems that decision-makers are hoping for some miracle, wishing for a “market-driven energy transition” that will save them and help them fulfill their commitments. I am afraid that won’t happen on its own. At least not in a sustainable way”, Mr Rajić warns.

Interview by Milena Maglovski

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

Solar Parks Can Contribute to Nature Restoration in the EU

16.10.2024

solar , panel — Photo-illustration: Unsplash (Mark Merner)

The association SolarPower Europe and the nature conservation organization The Nature Conservancy have released an important document highlighting the role of solar parks in combating climate change and restoring natural habitats.

The new approach, known as “nature-inclusive solar energy,” encompasses solar installations that enhance local biodiversity, combining nature restoration and conservation with energy production at the same site.

The document calls for a new cross-sector EU policy framework to support the development of nature-friendly solar parks. These parks are strategically located to minimize negative impacts on local ecosystems and maximize benefits for flora, fauna, and nearby communities.

Rebecca Humphries, Head of Climate Policy for Europe at The Nature Conservancy, emphasized the importance of well-designed solar parks.

“Properly located and designed solar parks can provide benefits for both the climate and nature, creating positive solutions for all,” said Humphries, adding that policymakers must now leverage existing frameworks, such as the Nature Restoration Law, to support greater investment in such projects.

This law, which came into force on August 18, 2024, sets a goal to restore at least 20 percent of degraded terrestrial and marine ecosystems by 2030 and all degraded ecosystems by 2050. Although solar parks occupy only 0.3% of the EU’s total area, their strategic design is crucial to align with the ambitious goals of the Nature Restoration Law.

The document’s recommendations include creating a common definition of nature-inclusive solar parks at the EU level, providing guidelines for development to minimize biodiversity loss, and establishing a monitoring and evaluation system.

Do Solar Power Plants Encourage Biodiversity?

A study titled “Species Diversity in Solar Parks – A National Field Study,” published by the German Federal Association of New Energy Industry, explores biodiversity in solar parks on agricultural land, with early results indicating positive effects on biological diversity, reports Ekovjesnik.

The research covers 24 solar systems on agricultural land in Germany and one in Denmark, with a full evaluation expected in the first quarter of 2025.

So far, 354 different plant species have been recorded across 22 solar systems, including endangered species as well as those typical for rural areas and forests. The authors explain that the area under the solar modules has a cooler and more humid climate, allowing the growth of plants such as strawberries, raspberries, and mushrooms.

Preliminary results show that the situation varies significantly from site to site, depending on the environment and conditions prior to the construction of the solar systems. The conclusion is that an individual approach for each location would be desirable. The design and management of solar parks also affect the species that inhabit or use the area.

Milena Maglovski

Hungary Launches Program to Build Chargers in Underserved Municipalities

15.10.2024

punjač , novo — Photo-illustration: Freepik (vwalakte)

In an effort to improve electric vehicle infrastructure, Hungary’s Ministry of Energy is launching a new program in early November focused on setting up charging stations in parts of the country where the number of such facilities is insufficient. The program, with a budget of 28 billion forints (approximately 72 million euros), requires applicants to build at least one charging station in a municipality with limited charging infrastructure.

According to data published on the Ministry of Energy’s website, by the end of 2023, there were about 2,500 public chargers, with nearly half of them located in Budapest and Pest County. As a result, the program is primarily targeted at less developed, rural areas, with the goal of making public chargers available at more than 100 locations across the country in the coming years.

Companies licensed to manage charging stations are eligible to participate in the competition. In the first phase of the technical call, which starts today and runs until October 21, 2024, companies can submit their proposed list of locations. The selection of locations will be based on priority needs.

The project aims to accelerate the energy transition and the development of infrastructure needed for emission-free transport. Companies that apply can receive a minimum of 100 million forints (approximately 260 thousand euros) and a maximum of four billion forints (around 10 million euros). However, they are also required to invest at least 10 percent of their own funds.

The non-refundable grants can be allocated for the construction of charging stations equipped with energy storage or renewable energy production units. This means that these charging stations must have systems to store electricity for later use, as well as devices that utilize renewable sources to generate clean energy for charging vehicles.

In a parallel program worth 30 billion forints (approximately 78 million euros), companies can obtain non-refundable funds for the purchase of fully electric cars, light commercial vehicles, and minibuses by next spring. The Ministry of Energy is currently promoting green energy production and storage for households and businesses with a total of 260 billion forints (around 670 million euros) through various programs.

Energy Portal

International E-Waste Day

14.10.2024

old_phones_recycling_upcycling_circular_economy_stari_telefoni_reciklaža_cirkularna_ekonomija — Photo-illustration: Unsplash (Eirik Solheim)

Photo-illustration: Unsplash (Arnel Hasanović)

International E-Waste Day, dedicated to raising awareness about the importance of proper management of electronic and electrical waste, is observed on October 14th. As one of the fastest-growing types of waste, e-waste is defined as any discarded product with a plug or battery. E-waste is full of hazardous substances that increasingly burden planet Earth.

According to the UN’s Fourth Global E-Waste Monitor (GEM) report, the world is facing a dramatic increase in e-waste, growing five times faster than the rate of its documented recycling. The report presents numerous figures that confirm this trend.

In 2022, a staggering 62 million tons of e-waste were generated, enough to fill 1.55 million 40-ton trucks, creating a line that could circle the equator, according to UNITAR’s website. This figure highlights an escalating crisis, as only 22.3 percent of this waste was properly collected and recycled. This means the remaining resources, estimated at $62 billion in recyclable materials, went unutilized, increasing pollution risks.

The growing volume of e-waste, which increases by 2.6 million tons annually, is on track to reach 82 million tons by 2030, a 33 percent rise compared to current levels.

Rapid technological advancement, increased consumption, limited repair options, shorter product lifecycles, growing electrification of society, design flaws, and inadequate e-waste management infrastructure are some of the factors exacerbating the situation.

However, the report also highlights that raising the recycling rate to 60 percent by 2030 could yield benefits exceeding $38 billion, surpassing the costs. In terms of recycling achievements, Europe leads with a collection and recycling rate of 42.8 percent, while less than 1 percent of e-waste is recycled in African countries. Furthermore, Asian countries, which produce around 50 percent of global e-waste, show varying levels of legislative and infrastructural readiness.

Implementing e-waste policies remains a global challenge, with only 46 countries having set collection rate targets, and only 36 having set recycling rate targets.

These figures illustrate a significant rise over many years, prompting the United Nations to refer to this phenomenon as an “e-waste tsunami” a few years ago when data revealed that e-waste production from 2016 to 2018 increased by nearly six million tons.

This October 14th, let us reflect on the electronic devices we no longer use and take the necessary steps.

Energy portal

Marked Increase in EU Exports of Recyclables in 2023

14.10.2024

eko — Photo-illustration: Freepik (frimufilms)

In 2023, the EU exported 8.5 million tonnes of recyclable products (paper, plastic and glass) to extra-EU countries, a 34 percent increase from 2022 (6.4 million tonnes), while imports dropped by 19 percent to 3.2 million tonnes, down from 4.0 million tonnes in 2022. Compared with 2013, these exports fell by 5 percent, from 9.0 to 8.5 million tonnes (mostly due to a 44 percent drop in plastic exports between 2013 and 2023), while imports remained stable at 3.2 million tonnes.

In 2023, paper was the most exported recyclable product, representing 81.6 percent of exports (7.0 million tonnes), followed by plastic (15.6 percent; 1.3 million tonnes) and glass (2.8 percent; 0.2 million tonnes). In the same year, 1.7 million tonnes of paper were imported, accounting for over half (51.2 percent) of all recyclable products imported. The second-largest import category was glass (25.4 percent; 0.8 million tonnes), followed by plastic (23.4 percent and 0.7 million tonnes).

India, Indonesia and Vietnam: main export destinations for recyclable paper in 2023

In 2023, India was the largest destination of recyclable paper exports (32 percent of total extra-EU paper exports), followed by Indonesia (17 percent) and Vietnam (13 percent).

As for exports of recyclable plastic, Türkiye was the largest destination (22 percent of total extra-EU plastic exports), followed by Malaysia (21 percent) and Indonesia (19 percent).

In 2023, recyclable glass was predominantly exported to the United Kingdom (39 percent of total extra-EU glass export), Moldova (10 percent) and Türkiye (9 percent).

United Kingdom: top supplier of recyclable products to the EU

Extra-EU imports of recyclable products came largely from the United Kingdom, which accounted for 31 percent of total paper imports, 47 percent of plastic and 36 percent of glass imports.

The second-largest supplier of recyclable paper was the United States (29 percent of extra-EU paper imports), followed by Switzerland (18 percent). Imports of recyclable plastic also came from the United States (8 percent), followed by Norway (7 percent). The second-largest supplier of recyclable glass was also the United States (29 percent), followed by Switzerland (12 percent).

Source: Eurostat

New Chargers For Improving E-Mobility

13.10.2024

Charge&Go-OMV-Zemun-27 — Photo: Charge&GO

During the summer season, the number of electric cars on Serbia’s roads is continuously growing due to their increasing popularity in Europe. Although the infrastructure represents one of the main obstacles to the faster development of e-mobility, Serbia is gradually improving the network of chargers for electric vehicles. Each new charger placed in a carefully selected location enhances the ability to charge, making electric vehicle travel more accessible and affordable.

The company Charge&GO is one of the leading actors in this transformation, significantly contributing to the expansion of the charger network, both in urban areas and on key roads. Their latest project involves deploying some of the most powerful chargers in their range. It is also new that some parts of Serbia will receive their first chargers thanks to this company’s venture.

To begin with, when it comes to urban areas, at the OMV gas station on Ada Ciganlija, Charge&GO installed a 50-kW fast DC charger equipped with three different types of connections: CCS, CHAdeMO, and Type2. CCS is the European standard for fast charging of electric vehicles. It uses direct current (DC), while CHAdeMO is the Japanese standard for DC fast charging, which, although somewhat rarer in Europe, has found its place at the new location in Belgrade. Third connection – Type2, the most common connection in the European Union intended for AC charging, is often used when the car is parked for several hours in a shopping center, at the workplace, or, for example, during the picnic at Ada Ciganlija. One of the advantages of this charger is that it allows users of different models of electric vehicles to charge the battery while performing a whole range of activities.

The next innovation is at the OMV gas station Obilaznica Surčin 2, where drivers now have access to a new, more powerful DC charger with a power of 150 kW, equipped with two CCS connections. Such chargers are often placed along highways where charging should take as little time as possible, although such models can also be found in cities.

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The most powerful charger in the network

For those looking for maximum charging speed, Charge&GO at the OMV gas station in Zemun will soon offer a fast DC charger with a power of up to 240 kW and two CCS connections. It will be the most powerful charger in the network, designed to allow high-speed charging with minimal breaks, which will be especially important for drivers who often travel long distances.

Apart from the broader area of Belgrade, in the northeast of Banat, in Kikinda, a slow charger with a power of 22 kW has been installed, while Nova Crnja is waiting for the first DC charger of 60 kW, which will soon be put into operation. This charger represents the first step towards improving e-mobility in this part of the country, enabling a more even development of infrastructure and support for electric vehicles throughout the territory of Serbia.

Interview by Milica Vučković

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

Automotive Industry at a Crossroads – Slovenia Prepares Necessary Measures

13.10.2024

automobil — Photo-illustration: Pixabay (alba1970 )

The significant changes, challenges, and ambitious goals in the automotive industry, which we recently wrote about, could lead to far-reaching consequences. The Slovenian Minister of Economy convened a meeting with representatives from the automotive industry, business associations, and trade unions, with the aim of analyzing the current situation and formulating necessary measures to help Slovenia’s automotive sector adapt to new global challenges.

The German automotive industry, which has a strong influence on the European market, is facing a serious crisis. The slow transition to electric vehicles, declining sales, the withdrawal of subsidies, and increasing competition from China are just some of the problems plaguing this sector. Companies like Volkswagen, BMW, and Mercedes-Benz are experiencing significant sales drops while grappling with high production costs and surpluses of unsold vehicles. Geopolitical tensions and the unavailability of Russian raw materials are exacerbating the situation, while Chinese electric vehicle manufacturers, benefiting from more favorable production conditions and subsidies, are constantly putting pressure on European companies.

These challenges have a direct impact on many, including Slovenia’s economy, given that the Slovenian automotive industry is heavily export-oriented and closely tied to other manufacturers. During the meeting in Slovenia, which included representatives from the Office of the Republic of Slovenia for Macroeconomic Analysis and Development, the Slovenian Chamber of Commerce (GZS), the Slovenian Chamber of Crafts and Small Business, the Slovenian Employers’ Association, and the Confederation of Free Trade Unions of Slovenia, the need for urgent action was emphasized.

Photo-illustration: Unsplash (austin-distel)

The meeting highlighted the necessity of implementing structural measures that would include improving production processes through the integration of new technologies, digitalization, automation, and robotization. Industry representatives expressed their expectation that the state would help, even with temporary measures such as the announced short-time work scheme, to maintain employment during periods of temporary demand fluctuations. These measures should also be used for further training of employees, as the restructuring of the industry will require new skills and competencies, according to the Slovenian government’s website.

In the context of the challenges faced by the automotive industry in Germany and Europe, Slovenia is striving to anticipate the negative consequences on its economy and take appropriate measures. Analysts warn that a quick adaptation to e-mobility is essential to retain a competitive edge in the global market.

Energy portal

How Can Residental Communities Take Advantage of the Energy Transition

12.10.2024

DJI_20240619111544_0011_D.00_07_52_34 - Copy — Foto: GIZ

The energy transition, which involves shifting from fossil fuels to clean and renewable energy sources, entails the democratization and decentralization of electricity production and consumption. Residential buildings, especially in larger cities where they comprise most of the housing facilities, play a crucial role in this transition by recognizing and utilizing the benefits of the new legal concept known as the prosumer model.

In addition to the obvious financial savings on electricity bills—since buildings can now produce their own electricity by installing solar panels on their rooftops—this model also allows residential communities to contribute to producing energy from renewable sources and reducing greenhouse gas emissions. Although legislative changes from 2022 enable both individual households and residential communities in Serbia to become prosumers by installing solar panels on their roofs, the number of residential communities that have taken advantage of this opportunity is extremely small. While thousands of individual households are currently registered as prosumers, there are only three residential communities.

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The Journey of a Thousand Miles Begins with the First Building!

German Development Cooperation provided financial and organizational support to one interested residential community in Novi Beograd, which decided to become a prosumer. This initiative, which includes the installation of a 15kW solar power plant on the roof of a building on Nehru Street, aims to serve as an example and a source of information for other residential communities considering a similar venture. In this pioneering project, seven apartment owners in a four-story building decided to jointly invest in the solar power plant, each contributing equally to 2kW shares.

The remaining 1kW of the plant’s capacity will be used for communal consumption within the building, further reducing maintenance costs. This residential community, selected via a public competition, received professional support and financial participation in purchasing and installing the solar power plant, which is now on the verge of being connected to the distribution grid. This is the first such power plant owned by multiple residents within a single residential community. All of them will benefit from the savings reflected in their electricity bills. Based on the experiences gained in cooperation with this residential community, German Development Cooperation, in partnership with the Ministry of Mining and Energy, has prepared a guide for residential communities that wish to become prosumers. The guide is expected to be published in the fall. It will provide comprehensive information and guidelines for residential communities that want to embark on the energy transition path and the self-production of electricity.

Measure Twice, Cut Once!

To further facilitate the decision-making process, German Development Cooperation has also adapted its solar calculator (www.solarnikalkulator.rs) to the specific needs of residential communities. This tool allows both individual households and residential communities to easily estimate the optimal capacity and size of a solar power plant in relation to the needs of the apartments and the available roof space. In addition to promoting the prosumer model, German Development Cooperation is actively engaged in raising awareness about energy efficiency.

In the upcoming period, special attention will be given to demonstrating the technical and financial viability of investing in combined measures—on the one hand, in energy efficiency (e.g., thermal insulation, window, and door replacement, etc.), and on the other, in renewable energy sources such as photovoltaic panels, solar collectors, and heating and cooling systems like various types of heat pumps.

GIZ

Read the whole story in the new issue of the Energy portal Magazine ENERGY TRANSITION

Romania Nearing the Adoption of a New Investment Program “Green Energy” 2024-2030

12.10.2024

green zeleno eko eco — Photo-illustration: Freepik (jcomp)

The Ministry of Energy of Romania has launched a public consultation on the draft emergency ordinance for the national investment program “Green Energy,” aimed at supporting administrative-territorial units and operators in centralized heating systems. The program will be implemented from 2024 to 2030, with a total value of four billion lei (over 800 million euros), according to the Ministry’s statement.

The Minister of Energy, Sebastian Burduja, emphasized that local authorities in Romania need consistent financial support to provide safe and affordable green energy for citizens and to improve the quality of life in their communities. The “Green Energy” program aims to complement European funds and enable the financing of projects that promote energy efficiency and the modernization of heating and cooling systems in cities across the country.

The first component of the program, valued at 1.5 billion lei, is dedicated to cities selected under the European program “100 Smart and Climate-Neutral Cities by 2030.” The second component, valued at 2.5 billion lei, focuses on the construction and modernization of heating and cooling systems in urban areas throughout Romania.

The Ministry of Energy has assessed that “Green Energy” is a significant step in Romania’s transition to a sustainable energy system, positioning the country on a decisive path toward energy transition, making it a leader in the region. The program will be financed through the issuance of green bonds by the Ministry of Finance, in collaboration with the Ministry of European Investments and Projects.

The Ministry of Energy has invited all interested parties to participate in public consultations to further improve the program.

Is Romania Introducing Hydrogen Heating?

In its efforts to decarbonize the heating sector, the 20HyGrid pilot project was introduced in the first quarter of this year, which will use a mixture of 20 percent hydrogen and 80 percent natural gas for heating households in Romania.

Testing in both laboratory conditions and the field has shown that the existing gas infrastructure is suitable for supplying homes with the hydrogen-natural gas mixture without any additional modifications.

In March of this year, Delgaz Grid delivered the final conclusions of this project to representatives of the Ministry of Energy, indicating that emissions of carbon monoxide, nitrogen oxides, and other harmful gases were significantly reduced compared to 100 percent natural gas.

“The results of the pilot projects are encouraging and offer us very good prospects for achieving the goals Romania has committed to under the European Union’s energy and climate policy. Through the National Recovery and Resilience Plan, the Ministry of Energy is currently finalizing the strategic and legislative framework to facilitate investments in the production and use of green hydrogen,” Burduja said.

Milena Maglovski

Challenges and Opportunities of Renewable Energy by 2030

11.10.2024

NOVO vetar — Photo-illustration: Unsplash (Bill Griepenstroh)

Countries around the world have recognized the urgent need to increase the capacity of renewable energy sources (RES). It is predicted that, thanks to supportive policies and favorable economic conditions, global RES capacities will rise by the end of this decade to a level currently held by China, the European Union, India, and the United States combined.

The new Renewable Energy Report for 2024, published by the International Energy Agency (IEA), indicates that the world could add more than 5,500 gigawatts of new capacity by 2030. The solar sector will account for around 80 percent of this growth, with China projected to hold about 60 percent of the total global renewable capacity by the end of the decade.

However, the path toward tripling renewable energy capacity comes with certain challenges. In many developing countries, financing costs remain high, reducing the economic attractiveness of investments. Additionally, underdeveloped electricity grid infrastructure is a persistent issue. Without adequate investments in this segment, there is a risk of more frequent disruptions in the supply of renewable energy, which has already been recorded in countries like Chile, Ireland, and the United Kingdom.

Another challenge is the lack of transparency in renewable energy auctions, which leads to uncertainty among investors due to unclear information. This situation complicates planning and reduces interest in investments.

In the solar energy sector, solar panel manufacturers are facing an oversupply in the market, causing prices to fall. This leads to reduced profits and losses for manufacturers. On the other hand, the wind turbine sector requires additional investments to avoid supply chain issues. It is necessary to increase the production capacity of wind turbines and optimize the processes of transporting and delivering parts.

To overcome the mentioned challenges, one of the key steps is to create stable political environments with clear and long-term goals for RES development. Governments should establish transparent and predictable auction mechanisms, which will result in greater investor confidence and risk reduction. Many projects are ready and waiting to be connected to the grid, but the grid infrastructure remains a problem that must be addressed.

It is also necessary to increase the flexibility of energy systems, which is essential for optimizing the use of RES, as sources like solar and wind are variable. Additionally, work needs to be done on developing long-term energy storage, which will store excess energy until there is a demand for it. Developing energy consumption management technologies is also important, allowing consumers to optimize their energy use based on current grid conditions. This means that smart devices activate when energy is cheaper and more available, reducing grid strain during times of high demand.

Besides wind and solar energy, innovations in technologies for developing hydrogen, e-fuels, and modern biofuels should be encouraged. It is important to emphasize that, although RES will play a significant role in the industry, transport, and building sectors, fossil fuels will still dominate, with an 80 percent share. Therefore, it is crucial to phase out fossil fuel subsidies and introduce stronger policies to reduce their usage.

Katarina Vuinac

Energy Transition and Market Challenges

11.10.2024

During the first day of the Western Balkans Energy Week 2024, held on October 9 and 10 in Montenegro, a panel titled “Navigating Market Challenges: From Securing Land to Balancing Conditions” was organized.

Panel participants discussed the challenges investors in the region face and the necessary legislative changes that could lead to more favorable conditions for the development of the renewable energy sector.

When it comes to the functioning of the electricity market, Miloš Mladenović, CEO of the Serbian electricity exchange SEEPEX, emphasized that for a market reform that ensures the efficient implementation of renewable energy projects, decentralization and democratization of the economy are necessary.

Franciska Hedrick, senior project manager at NOTUS energy, stated that the company remains persistent in developing renewable energy projects in the Balkans. However, many projects were of lower quality than expected, with one of the reasons being the problems caused by the permitting process.

“If you take a closer look at these projects, they have been in development for decades. In the meantime, permits have expired, and the technology has become outdated. The permitting process is extremely demanding, and there is no centralized point for us, the developers. It is not easy to find a clear structure for the permitting process, which leads to delays. The exchange of information between the relevant authorities is poor,” Hedrick explained.

Aside from this problem, Neda Lazendić, senior advisor at Hyundai Engineering, highlighted another complication hindering the region’s energy transition. According to her, the 2021 Renewable Energy Law attracted a large number of investors as it was seen as favorable for project realization. However, the law attracted too many investors, leading the Serbian transmission system operator to receive an overwhelming number of requests between 2021 and 2023, threatening the stability of the country’s electricity system.

“As a solution to this issue, new rules for connecting to the transmission system were adopted. Now, in addition to the request for a connection study, the investor is required to provide financial guarantees of 25,000 euros per megawatt,” Lazendić said, adding that this ensures that only financially capable investors can realize projects in the shortest possible time.

Miloš Kostić, CEO of MT-KOMEX, stated that his company has mainly worked on projects connected to the distribution system and expressed hope that the new grid rules would further clarify which investors are serious to reduce delays in the development of renewable energy projects.

“As a company, we started developing solar power plants back in 2009. At that time, we managed to develop the first project in Serbia that was in line with the 2009 laws. Only five megawatts were built on land back then, and we managed to build two megawatts, which were part of the feed-in tariff at the time. Later, there was a standstill in all these investments because the price of electricity in our country was about 55 euros per MWh, which did not cover investments in such demanding technologies at the time. The turning point came in 2019 when anyone could invest in renewable energy,” Kostić said.

MT-KOMEX’s commitment to realizing renewable energy projects is also reflected in the fact that requests for permits were only submitted for land where it was certain that urban and technical documentation would be in order.

“We purchased 74 hectares in Lapovo and then began implementing two projects. We only submitted requests for land for which we knew we could resolve the urban and technical documentation so that our projects could come to life as soon as possible. We proved this last year with three projects – we obtained auction prices for two, and both projects were built,” Kostić noted.

In addition to this panel, the first day of the conference also addressed topics such as the coal transition in the Western Balkans, investments in grid resilience and energy storage technologies, and strategies for regional integration. Participants on the second day of the conference will address equally important topics such as policy shaping in the renewable energy sector, unlocking project financing sources, and promoting investor confidence.

Energetski portal

Driving Towards a Sustainable Future is Faster with a Developed Charging Network

10.10.2024

NOVO , punjač — Photo-illustration: Freepik (freepik)

A car is no longer just a means of transportation from point A to point B. For city driving, where speed is heavily limited, a model from 2005 can perform nearly as well as one from the 2020s. Today, we expect more – premium-quality tires, seat massagers, touchscreens, LED lighting, speakers with bass effects, parking sensors, sports models… All these amenities are significant solely for driver comfort, while they mostly have negative consequences for the environment. In a world where both the number of cars on the roads and the climate crisis are growing, a serious shift is needed.

Electric cars are no longer a mystery. Vehicles powered by electricity, according to experts, represent the future of transportation if we want to preserve air quality, halt climate change, and improve the health of people and the planet. However, transitioning to electric vehicles is not an easy or appealing decision for many. First and foremost, they are often more expensive than traditional combustion engine cars, and although awareness of environmental issues is growing, many drivers are still not eco-conscious enough to invest in a vehicle that reduces harmful emissions.

Even if this issue were resolved through government subsidies, incentives, and educational campaigns, there remains a critical question without which everything else loses meaning – the development of infrastructure. Without a sufficient number of charging stations, particularly on longer routes, drivers face concerns about whether they will be able to recharge their vehicle without disrupting their travel plans. This uncertainty deters many potential buyers, as a reliable and accessible charging network is essential for the widespread adoption of electric cars.

Although electric vehicles are not yet widely accepted in Serbia, it is important to note that the country is a significant transit hub, which further emphasizes the need for investment in infrastructure development. Awareness of the transition to sustainable transport is steadily growing in Serbia, but it must be supported by increasing the number of charging stations for electric vehicles.

As one of the leading players in this field, the company Charge&GO is dedicated to ensuring that the charging network is reliable, accessible, and tailored to the needs of users. The company is developing infrastructure not only in urban areas but also in less developed regions of Serbia.

Their charging network includes slow chargers with a capacity of 22 kW, as well as one of the most powerful chargers in the country, a DC charger with a capacity of 240 kW, which allows for ultra-fast charging.

In addition to enabling the charging of electric vehicles in Serbia, Charge&GO also supports users traveling abroad. The company has modernized its website, providing users with easier access to information about charger locations and available services. Through the Charge&GO app, users can easily find their desired charger on the map, check its availability, power, connector type, and charging price. The app offers access to a network of over 400,000 chargers across Europe, thanks to integration with the largest e-roaming platform.

Charging is automatically billed through the app, and users can track the progress of their charging session, including the duration and battery status. The app also provides a detailed overview of charging history and payments. Support is available 24 hours a day, and with an RFID card, charging sessions can be started with just a tap on the charger’s reader.

The development of electric vehicle infrastructure is the foundation for the future of sustainable mobility in Serbia. Projects like those implemented by Charge&GO enable drivers to confidently use electric vehicles, both domestically and abroad.

Katarina Vuinac

Western Balkans Energy Week 2024 – Cooperation Towards Energy Transformation

10.10.2024

On October 9 and 10, Montenegro is hosting a conference titled “Western Balkans Energy Week 2024” – one of the most significant events bringing together over 250 decision-makers, including government officials and private sector leaders from the Western Balkans and Croatia.

Numerous discussions will address pressing topics in the renewable energy sector in the Western Balkans, with the goal of jointly shaping the green transition in the region. Panel participants will have the opportunity to discuss strategies for regional integration, transitioning from fossil fuels to renewable energy, increasing the resilience of energy grids, market challenges, and many other key issues for the energy transition in this part of Europe.

All discussions are designed to provide practical guidance to decision-makers in navigating the complexities of energy transition and maximizing the abundant potential of renewable energy sources (RES) in the region.

At the opening of the conference, the President of the Board of Directors of the Electric Power Company of Montenegro (EPCG), Milutin Đukanović, highlighted the importance of regional cooperation in the development of renewable energy capacities. Many memorandums of cooperation have been signed, but these documents remain mere “dead letters” until project implementation begins, Đukanović noted.

Regarding Montenegro’s potential, Đukanović emphasized that it is particularly important to utilize hydropower infrastructure for the integration of solar power plants, as he said, “we must not waste a drop of water when the sun is shining.” He also stressed the importance of investing in battery system development and proudly pointed out that Montenegro has mastered important technologies necessary for the energy transition.

Marko Kubatlija, Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina, also spoke at the opening of the conference, emphasizing that successful energy sector transition requires the cooperation of all institutions and partners in the region.

“Cooperation in the region is very important because we must not forget that we live in a very dynamic economic world. The two key factors for the development of the Western Balkans are investment and employment. It is necessary to involve small and medium-sized enterprises and give priority to renewable energy sources,” Kubatlija said at the conference’s opening.

Cooperation as a Key Factor for the Region’s Green Transition

On the first day of the conference, a panel titled “Together for Tomorrow: Strategies for Regional Integration to Enhance Renewable Energy in the Western Balkans” was moderated by Nevena Đukić, Editor-in-Chief of the Energetski portal.

Panel participants – World Bank Director for Bosnia and Herzegovina and Montenegro, Christopher Sheldon, Minister of Energy and Mining of Republika Srpska, Petar Đokić, and Montenegro’s Minister of Mining, Oil, and Gas, Admir Šahmanović – discussed the importance of regional cooperation, what has been achieved so far, and what the plans are for the future.

According to Minister Đokić, it is important to deepen and develop regional cooperation to expand energy capacities, both in production and transmission.

“We must be aware of the problems we have. This year, we faced a technical issue that confirmed how important that cooperation is, and it must be improved with other countries. During meetings with regional ministers, we agreed to form operational working teams and create a joint policy that will encourage investments in the energy sector,” said Đokić.

Montenegro’s Minister of Mining, Oil, and Gas, Admir Šahmanović, reminded attendees that Montenegro remains committed to becoming a member of the European Union in the near future and is consistent with European values that include reducing the use of fossil fuels while increasing RES capacities and improving the country’s environmental image.

When asked by the moderator what the new Draft Law on Security of Supply with Petroleum Products in Montenegro will bring, Šahmanović responded that the law provides for the formation of mandatory reserves in quantities equivalent to 90 days, or three months.

“Reserves will be partly stored as finished products, i.e., one-third in Montenegro, while the remaining reserves will be stored through contracts that allow the purchase of derivatives in emergency situations,” Šahmanović clarified.

Decarbonization – Obligation and Challenge for the Western Balkans

The climate crisis, which becomes more pronounced each year, obliges all countries worldwide, including those in the Western Balkans, to reduce the use of fossil fuels as soon as possible and approach the energy transition with determination.

However, the transition to RES is not an easy task for the Western Balkan countries, given their limited resources for implementing green energy projects.

World Bank Director for Bosnia and Herzegovina and Montenegro, Christopher Sheldon, noted that the region’s potential for green energy production is enormous, both to meet its own needs and for electricity export, providing the Western Balkan countries with a new source of income.

“To achieve the goals set for 2050, significant investments in the green sector are required. We want to support investments at both the government and private sector levels,” said Sheldon.

Nevertheless, the centuries-long dependence on coal in the Western Balkans cannot be eliminated overnight, especially given that many people are still employed in the coal industry. Solutions to this problem include severance payments and worker retraining, which the World Bank is already implementing, said Sheldon.

As Montenegro faces increasing pressure to carry out decarbonization, Šahmanović pointed out that one of the Ministry’s main roles will be to actively reduce the use of fossil fuels. Montenegro has committed to significantly reducing greenhouse gas emissions and increasing the share of RES in final consumption by 2030.

“Work is also being done to reduce the use of petroleum products in transportation and industry through the creation of measures under the National Energy and Climate Plan, which is expected to be adopted by the end of this year. These measures mainly relate to the gradual introduction of biofuels, but also to the development of other alternative fuels,” said Šahmanović.

Republika Srpska is also on the right path to stepping into a green future, although Đokić emphasized that financing sustainable energy projects remains the biggest obstacle slowing down Bosnia and Herzegovina’s energy transition.

“We are aware that the demand for decarbonization is immense, and we have entered this process with a full understanding of the goals. That is why I want to stress the importance of cooperation, especially with European financial institutions, because we don’t have the money or the means to generate money. That’s why we need the help of developed European countries in financing green projects, so the Balkans won’t lag behind on the path of energy transition and once again become some kind of black hole,” Đokić said.

He added that around 50 small hydropower plants have been built in Republika Srpska, along with numerous small solar plants that have reached a capacity of around 120 MW, reflecting significant progress in recent years. He also noted that investments in RES come with considerable pressure on the distribution network, which could threaten prosumers, and expressed hope that the influx of finances and further regional cooperation will eliminate these obstacles.

Energetski portal

500 Million Euros Annually for Renewable Energy Sources

09.10.2024

The main goals of the projects that entail the construction of solar and wind power plants are energy supply security and increasing the share of renewable energy sources in our energy portfolio. The Electric Power Industry of Serbia (EPS) plans to revitalize all hydropower plants, and it is determined that by 2030, 45 percent of electricity generated by Serbia’s energy sector will come from renewable sources. Dušan Živković, the General Director of EPS, spoke to Energy Portal Magazine about the implementation of the most significant wind and solar power projects, their financing, the modernization of hydropower plants, the strategically important Bistrica project, as well as new investments and projects.

Q: What are the priority projects for wind and solar power plants? How far along is the implementation of these projects? What are the deadlines for their construction, and when are the facilities expected to be connected to the power grid?

A: The main goals of the projects that entail building solar and wind power plants are energy supply security and increasing the share of renewable energy sources (RES) in our energy portfolio. We are doing this by using the land available to EPS, such as ash and waste disposal sites, to produce electricity in a sustainable and environmentally friendly way. The implementation of these projects and the utilization of remaining hydro potential will contribute to the decarbonization of the power sector and increase the share of RES in EPS’ energy production mix. The most significant RES project is the Kostolac wind farm, which has a capacity of 66 megawatts and is expected to be completed by early 2025. The Petka solar power plant, with a capacity of nearly 10 megawatts, is also expected to be completed by the year-end. Several solar power plants are in the design phase, and they will be built on land owned by EPS or on the land that we have usage rights to. After initial analyses, the drafting of project documentation for the Klenovnik solar power plant continues. Several other projects are in various stages of design or initial analysis, including the Kolubara B, TENT A Ash Dump, TENT B Cassette 3, TENT B – Ash Dump, PK Tamnava East, PK Tamnava West, and Middle Kostolac Island solar power plants.

These solar power plants will be built in locations where EPS already has production facilities, such as power plants and mines, and partially developed infrastructure for future solar power plants, which is why we have a comparative advantage over other investors.

Regarding solar power plants, we should not forget the largest project currently being developed in Serbia. As per the government’s public call for the selection of a strategic partner to build 1 GW solar power plants with a battery storage capacity of at least 200 MW (400 MWh), EPS will manage them once they are finished.

The Kolubara A and Morava solar power plants are expected to be connected to the power grid by 2028, along with the solar power plants that will be built by the strategic partner, which are scheduled for 2028. The Kolubara B and Klenovnik solar power plants are expected to be completed and operational by 2030.

IN FOCUS:

Q: How are the wind farm and solar power plant projects financed? What amounts are allocated for investments?

A: The value of the Kostolac wind farm project is 144 million euros. The European Union provides 31 million euros in grants, EPS allocates 32.2 million euros, while the KfW loan is 80 million euros, and the grant from that bank is 1.8 million euros. The planned investment for the Petka solar power plant is 1.36 billion dinars and is financed by EPS funds.

Following the 28th call for the provision of technical assistance under the EU Western Balkan Investment Framework (WBIF) program and seven calls for co-financing investment projects through WBIF, EPS was awarded a total of 49.02 million euros in non-refundable development assistance for four projects: the revitalization of the Vlasinske hydropower plants (16.1 million euros), the construction of the Kostolac wind farm (31.2 million euros), and the drafting of technical documentation for the development of the Morava and Kolubara A solar power plant projects (860,000 euros each).

In terms of the Morava and Kolubara A solar power plants, the prerequisite for applying was to have an interest in or an already signed credit arrangement with one of the banks from the WBIF program (EBRD, KfW, EIB, World Bank, AFD, CEB).

Q: EPS is shifting towards renewable energy sources and working on further modernization and construction of hydropower plants. What are the most significant projects planned? What is the importance of revitalizing these projects, and how are they financed?

A: EPS plans to revitalize all hydropower plants that have not yet been revitalized. These include Bistrica, Đerdap 2, Potpeć, and the Vlasinske hydropower plants. The revitalization of the Potpeć hydropower plant also includes constructing a new fourth unit. The importance of revitalizing existing hydropower plants is significant, as it extends the operational life of these facilities, which are crucial for the security of the power system and the transition to renewable energy sources. The revitalization of hydropower plants is financed through loans provided by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

Interview by Mirjana Vujadinović Tomevski

Read the whole interview in the new issue of the Energy portal Magazine ENERGY TRANSITION

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