PORTUGAL A COUNTRY OF GREEN IDEAS – A TRAIL THAT EVERYONE SHOULD FOLLOW

04.10.2023

Photo-illustration: Unsplash (francois-le-nguyen)

Photo-illustration: Unsplash (eric-masur)

I started my visit to Portugal in Lisbon, one of the world’s oldest and most beautiful cities in the world. Thanks to the Pulse of Europe project – Media Trips to the EU, I had a unique opportunity to get to know this country in a completely different way.

During my visit to Lisbon, I learned from the officials that Portugal can teach us how to go through the energy transition in a good way. The energy crisis that strongly shook Europe shows how necessary a safe and reliable electricity supply is. And while many are still trying to find the best and easiest way to achieve a stable supply of green energy, Portugal is largely meeting the energy transition goals.

They get about 60 per cent of their energy from renewable energy sources and predict that this will go up to as much as 80 per cent in two years. Portugal stopped using coal for electricity production more than a year ago when they shut down the last thermal power plant.

They are among the first countries in the world to start building wind farms and are leaders in the use of biomass and solar energy.

IN FOCUS:

Ana Fontoura Gouveia, State Secretary for Energy and Climate at the Ministry of Energy, explains that Portugal started the energy transition more than twenty years ago.

As she pointed out, their big challenge is accelerating the use of renewable energy sources. The most important thing for the country is the secure energy supply and ensuring that the industry has green, reliable, and price-competitive energy. Cooperation with citizens and policymakers is very important in this process so that everyone solves everything together to reduce bureaucracy and eliminate all other problems they face.

Photo-illustration: Unsplash (nuno-marques)

Ana Fontoura Gouveia also points out that it is necessary to expedite the construction of solar power plants and offshore wind farms and that Portugal attracts investors and industries with competitive energy prices.

“Solar power plants are common here, but we also focus on wind farms. Regarding technology related to offshore wind farms, it develops continuously, which we monitor closely. We plan to use it more and more in the future as the price of this technology gradually decreases,” says the State Secretary for Energy and Climate at the Ministry of Energy.

Antonio Coutinho, director of innovation at the power company Energia Portugal, explains that innovations are key to the energy transition, and he particularly underlines floating wind farms.

“Energy transition is ‘something we must do’ because we must stop using fossil fuels and completely turn to renewable energy sources. It is an ongoing process in Portugal; everyone must get involved to put coal out of use. Electrification is the next step, followed by boosting energy efficiency, use of hydrogen, synthetic fuels and others,” he adds.

Photo-illustration: Unsplash (jeroen-den-otter)

Renewable energy cooperative

Copernicus is the first renewable energy cooperative in Portugal, which gathers 3,000 cooperative members who, by association, ensure a safe electricity supply.

“This is a new way of producing electricity in communities organized by citizens and different institutions. Their buildings are covered in solar panels. Within a range of two kilometres, they can combine production and generate enough energy for their needs. They can also sell it to people who live nearby and have problems with supply for social reasons,” said Rui Valente, director of Copernicus.

He adds they currently have 1,600 customers who enjoy a guaranteed price and says that they are focused on solar energy but plan to use wind energy as well. One thing is certain: they will definitely use and sell energy from renewable sources only.

Prepared by: Nevena Đukić

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

EU aquaculture in 2021: 1.1 million tonnes farmed

03.10.2023

Photo-illustration: Freepik (frimufilms)

Photo-illustration: Freepik (kdekiara
kdekiara)

In 2021, an estimated 1.1 million tonnes of aquatic organisms were farmed in the EU, valued at 4.2 billion euros. Aquaculture, also known as aquafarming, involves the controlled cultivation of fish, molluscs, and crustaceans.

Four EU countries collectively accounted for about two-thirds (68 percent) of the total production of farmed aquatic organisms in 2021: Spain 25 percent, France 17 percent, and both Italy and Greece 13 percent.

Nevertheless, production within the EU was less than that of Norway, where 1.6 million tonnes of aquatic organisms were produced, most of which was farmed salmon.

Production in the EU is focused primarily on finfish species (such as trout, seabream, seabass, carp, tuna, and salmon) and molluscs (including mussels, oysters, and clams), which together accounted for almost all of the aquaculture production by weight in 2021. Different aquatic organisms command different prices. The production value of trout and seabass in 2021 was higher than other species in the EU (each accounting for a 14 percent share of the total value of the EU’s aquatic farming in 2021).

There is a high degree of aquaculture specialisation within the EU. Spain produced about seven in every 10 tonnes of the EU’s farmed Mediterranean mussels in 2021. France farmed most the EU’s Pacific cupped oysters (88 percent of the total) and was the main provider of the EU’s farmed blue mussels (45 percent of the total). Italy produced the vast majority (92 percent) of the EU’s farmed Japanese carpet shell. Greece produced most of the EU’s farmed gilthead seabream (69 percent of the total) and European seabass (53 percent). Farmed Atlantic bluefin tuna was most produced in Malta (72 percent of the EU total), while Ireland was responsible for almost all the farmed salmon in 2021 (96 percent).

Source: Eurostat

Energy Week Western Balkans 2023: the agenda is underway and promising a resounding success

02.10.2023

windmills-g02815a220_1920 — Foto-ilustracija: Pixabay (SailingOnChocolateRoses)

Photo-illustration: Freepik (rawpixel.com)

As Energy Week Western Balkan is approaching, the conference agenda promises a resounding success. Here is some food for thought to prepare for Day 1 of EWWB.

Traditionally, Energy Week has a grand OPENING with welcome addresses from governments of the Western Balkan states and European institutions. In 2023, we will be giving the floor to:

Ervin Ibrahimović, Deputy Prime Minister for Regional Development, Minister of Capital Investments of Montenegro
Dubravka Đedović, Minister of Mining and Energy of Serbia
Petar Đokić, Minister of Industry, Energy and Mining of Republic of Srpska
Vedran Lakić, Minister of Energy, Mining and Industry of Federation of Bosnia and Herzegovina
Kadri Simson, Commissioner for Energy, European Commission (online)

This year, we are thrilled to announce a new session format: FIRESIDE CHAT! We invite you to ignite meaningful conversation and discuss if a 100 percent renewable energy mix is possible for the Western Balkans together with Alessandro Bragonzi, Head of Regional Representation for the Western Balkans at EIB, Viktor Andonov, Energy Adviser to the Prime Minister of North Macedonia

POWER OF NEED & ENERGY SECURITY IN THE WESTERN BALKANS

The Western Balkans are facing a critical moment in their energy transition, as the war in Ukraine and the energy crisis have increased their dependence on fossil fuels and raised the costs of decarbonization. The region has been lagging behind the EU in phasing out coal and moving towards clean energy sources, despite having abundant potential for renewable energy and energy efficiency. The energy crisis has also exposed the vulnerability of the Western Balkan countries to external shocks and price fluctuations, as well as the social and environmental impacts of coal dependence. The EU’s introduction of CBAM, which will impose a carbon tax on imports from countries that do not have a similar carbon pricing system, will further increase the pressure on the Western Balkans to align their energy policies with the EU’s climate goals.

Join our dialogue with policymakers and regulators:

Dejan Popovic, President of the Council, Energy Agency of the Republic of Serbia
Branislav Prelević, President of the Board, Energy and Water Regulatory Agency of Montenegro
Dario Nikolovski, Director, Energy Agency of the Republic of North Macedonia and others.

FUTURE OF UTILITIES: FROM CRISIS TO TRANSITION & THE ROLE OF TRANSMISSION

The energy crisis in the Western Balkans poses a serious challenge for the utilities that provide electricity to millions of people.

One of the key aspects of ensuring the security of supply and flexibility in a power system is the technology mix. The utilities of the region are diversifying their energy sources and investing in renewable energy projects, such as wind, solar, hydro and biomass. These projects not only reduce the dependence on fossil fuels and lower the carbon footprint but also create new jobs and opportunities for local communities.

By embracing innovation and collaboration, they are showing their commitment to delivering secure, sustainable and affordable electricity to their customers. And, of course, investing in transmission will further foster renewables integration.

Our key speakers:

Luka Petrović, General Director, Elektroprivreda Republike Srpske (EPRS)
Aleksandar Mijušković, Chairman of the Board of Directors, Crnogorski elektroprenosni system (CGES)
Skerdi Drenova, CEO, OST
Jeton Mehmeti, Chairman of the Board of Directors, Kosovo Transmission System and Market Operator (KOSTT)

FINANCING THE GREEN TRANSITION

The Western Balkans are facing a dual challenge of decarbonizing their economies and increasing their resilience to climate change. To achieve this, Western Balkans need to mobilize green finance from both public and private sources.

Some of the possible ways to boost green finance could include:

Developing a clear and consistent policy framework that aligns with the EU Green Deal and the Paris Agreement
Enhancing the capacity and awareness of financial institutions, regulators, and stakeholders on green finance opportunities and standards
Creating enabling conditions for green investments, such as improving the quality and availability of data, reducing administrative barriers, and providing incentives and guarantees
Promoting green financial products and services, such as green bonds, loans, funds, and insurance, that can attract domestic and foreign investors
Strengthening regional cooperation and integration to leverage economies of scale and share best practices.

Petar Mitrović of Karanovic & Partners will lead the conversation with representatives of Green for Growth Fund, MIGA, Erste Group Bank, UK Export Finance (UKEF), and others.

Official website & registrations: www.wbenergyweek.com

Source: Energy Week Western Balkans

GREEN ENERGY AND STABLE SUPPLY WITH ABB SUPPORT

01.10.2023

windpark_vetropark — Foto-ilustracija: Pixabay

In the process of mitigating climate change and fighting for the preservation of natural resources, we are turning to renewable energy sources, improving energy efficiency and optimal consumption.

The use of new technologies and innovative solutions reduces the impact on the environment and emissions of harmful gases while, at the same time, modern society functions smoothly and safely. Achieving climate neutrality and reducing the use of fossil fuels requires an accelerated transition to the use of renewable energy sources. In contrast, the use of the most advanced solutions achieves the optimization of already existing capacities.

The need for a stable supply of electricity is constantly growing, especially when the demand is intensified, and this is possible only with the application of new technologies. By improving performance in hydropower plants, their life cycle is improved; and by installing ABB Ability™ Symphony® Plus SCADA solutions, efficiency is maximized through automation, integration, and optimization of the entire plant, which becomes more reliable. The Repsol company from Spain saw the quality of this system, and it was installed in five of their hydroelectric plants. SCADA provides a standard control methodology with workflow automation and optimization of daily operations with a high degree of security. More than 7,500 Symphony Plus systems have been installed worldwide, of which more than 5,000 support energy applications.

IN FOCUS:

ABB advanced wind solutions

Almost every day, some new, innovative solution in renewable energy sources is presented. They simply become necessary for large systems that use wind and solar energy to work smoothly, providing a stable distribution of the generated electricity.

Overhauling plants operating for years can significantly improve their reliability and extend their service life. In addition, carbon dioxide emissions are inevitably saved. Using the ACS800 inverter, 24 wind turbines at the Aulepa and Aseri wind farms in Estonia operate reliably. Thanks to the new technologies installed in these wind farms, ABB’s maintenance team is ready to help improve the performance of the wind turbines at any time throughout the wind farm’s lifetime.

ABB provides its customers with the most efficient technologies, products and services and introduces innovations for even greater efficiency. It is certain that increasing the capacity of renewable energy sources. However, crucial for climate change mitigation and energy independence cannot happen overnight. Therefore, we must do everything we can now to preserve the environment and reduce costs, as well as to ensure enough energy.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

Renewables Jobs Nearly Doubled in Past Decade, Soared to 13.7 Million in 2022

30.09.2023

wind , vetar , obnovljivi — Photo-illustration: Freepik (freepik)

Worldwide employment in renewable energy reached 13.7 million in 2022, an increase of one million since 2021 and up from a total of 7.3 million in 2012, according to a new report by the International Renewable Energy Agency (IRENA) and the International Labour Organization (ILO). The tenth edition of Renewable Energy and Jobs: Annual Review 2023, is the product of a continuing collaboration between the two agencies.

The report found that renewable energy is attracting increasing investment, leading to job creation in a growing number of countries. However, as in previous years, most of the jobs are concentrated in a few states, notably China, which accounts for 41 per cent of the global total. Brazil, European Union (EU) countries, India and the United States of America (USA) were among the others. Together they represent the majority of global capacity installations and play key roles in the manufacturing of equipment, engineering and associated services.

Solar photovoltaics (PV) was once again the largest employer in 2022, the Annual Review found, reaching 4.9 million jobs, more than a third of the total workforce in the renewable energy sector. Hydropower and biofuels had similar numbers of jobs as in 2021, around 2.5 million each, followed by wind power with 1.4 million jobs.

Francesco La Camera, IRENA Director-General, observed that “2022 was another outstanding year for renewable energy jobs, amid multiplying challenges. Creating many more millions of jobs will require a much faster pace of investments in energy transition technologies. Earlier this month, the G20 leaders agreed to accelerate efforts to triple global renewables capacity by 2030 aligned with our recommendations ahead of COP28. I call on all policy makers to use this momentum as an opportunity to adopt ambitious policies that drive the needed systemic change.”

ILO Director-General, Gilbert F. Houngbo, said, “To seize the significant opportunities to attain full, productive and freely chosen employment, social inclusion and decent work for all during these complex transitions, there is a need to develop and implement specific policies for inclusive macroeconomic growth, sustainable enterprises, skills development, other active labour market interventions, social protection, occupational safety and health and other rights at work, and find new solutions through social dialogue.”

The quality of jobs matters as much as their quantity, the study notes. To advance social justice, the transition to a cleaner energy future needs to be just and inclusive for all; workers, enterprises and communities. Hence, coherent and integrated frameworks are indispensable, with a focus on wages, occupational safety and health and rights at work, and based on effective social dialogue. The ILO’s Guidelines for a just transition towards environmentally sustainable economies and societies provide a central reference for policy making and actions to support a just transition that governments and other stakeholders can draw upon.

A just and inclusive energy transition must also pursue workforce development and diversity. The report highlights the need to expand education and training and increase career opportunities for youth, minorities and marginalised groups. Greater gender equity is also essential. At the moment, jobs in renewables remain unequally distributed between men and women. Currently, solar technology has the best gender balance compared to other sectors, with 40 per cent of jobs held by women.

Many countries are showing increased interest in localising supply chains and creating jobs domestically, with support from appropriate industrial policies. This goes hand-in-hand with a growing desire to lessen energy supply insecurities. China has successfully pursued a broad array of these industrial policies for some years. More recently, the EU, India, Japan, South Africa and the USA have announced initiatives to stimulate domestic manufacturing. However, countries will need to find ways to combine localisation efforts with continued global cooperation in pursuit of an ambitious energy transition.

Source: IRENA

IEA, ECB and EIB highlight importance of an accelerated clean energy transition for Europe’s industrial competitiveness and financial stability

29.09.2023

solar , vetar , oie — Photo-illustration: Freepik (freepik)

Photo-illustration: Unsplash (Appolinary Kalashnikova)

The heads of the European Investment Bank (EIB), the European Central Bank (ECB) and the International Energy Agency (IEA) are today calling on leaders from government, finance and industry across Europe to deliver a clean energy transition which is just, swift and maintains competitiveness.

Ministers, ambassadors, business leaders, central bankers and other key stakeholders are gathering at the IEA’s headquarters in Paris for the high-level conference. In opening remarks to delegates, ECB President Christine Lagarde, EIB President Werner Hoyer and IEA Executive Director Fatih Birol will issue a call to action to accelerate the clean energy transition.

In the face of severe disruption in global energy markets, Europe must scale up funding to support an orderly transition and position itself among other industrial heavyweights in the new energy economy. In the IEA’s pathway for the global energy sector to reach net zero emissions by 2050, annual clean energy investment in the European Union needs to rise significantly by 2030.

The ECB’s second economy wide climate stress test finds that frontloading clean energy investment significantly reduces medium-term costs and risks for firms and households. But besides geopolitical tension and high inflation, private sector investment faces a number of market barriers including policy uncertainty and lengthy permitting procedures that delay projects, deter investors and lead to cost overruns for developers.

European industry also finds itself at a competitive disadvantage regarding the price of energy. Compared with other regions, these prices are relatively high, and ambitious industrial programmes are being introduced in countries such as the United States, China, India, Japan and Korea to build up domestic supply chains, resource security and manufacturing capacity. Accelerating energy transition investment will help Europe limit dependence on major fossil-fuel producers and often volatile fuel markets.

The European Union has committed to spending at least 30 percent of its 2021-2027 budget on climate action. And development finance institutions such as the EIB have an important role to play in providing support for clean energy projects to crowd-in private sector engagement. For every euro spent by the EIB on its energy operations, it attracts a further 1.4 euros from the private sector. The EIB has already raised its financing for clean energy projects to unprecedented levels, and recently announced an additional 45 billion euros, on top of its regular lending volumes. This will go to supporting renewables and state-of-the art manufacturing in strategic net-zero industries to help accelerate the transition. Having already ceased all financing to unabated fossil fuels, the EU bank is well on track to support one trillion in climate and environmental sustainability investment this decade.

Today’s conference will discuss how policies and financial instruments can unlock further investment. Given the vast investments required, it will be important to pave the way for better access to funding. This includes steps to establish a green capital market union (CMU) to help finance – earmarked for the clean energy transition – flow seamlessly across borders. Such a union will also provide a robust yardstick for sustainable finance projects and help eliminate greenwashing practices. The clean energy transition can only succeed in an environment of price stability. Moreover, in its commitment to support an orderly transition, the ECB has taken decisive steps to integrate climate change considerations into its monetary policy framework and financial stability monitoring.

Source: IEA

ABB and Export Development Canada agree on global partnership for financing clean tech projects

28.09.2023

ABB and Export Development Canada (EDC), Canada’s export credit agency, have signed a global partnership to promote investments in sustainable technologies and projects in Canada and around the world. The support provided by EDC, with a total limit of up to 2.9 billion US dollars, will provide ABB’s customers with financing and insurance solutions to strategic electrification and automation projects in the sectors of clean technologies, advanced manufacturing, digital technologies, and resources of the future. Commercial financing will be provided on a project-by-project basis and the partnership will initially run for three years.

ABB CFO Timo Ihamuotila said: “I am very pleased about our partnership with EDC and their trust in ABB as a global technology leader in electrification and automation. This partnership enhances our value proposition to customers and is fully in line with our purpose to enable a more sustainable and resource-efficient future. It will offer our customers and us the opportunity to further invest in sustainable technologies and – in doing so – to contribute actively to reaching decarbonization goals in various industries’’.

The partnership aims to foster investments globally and locally in Canada both through ABB’s customer projects and within the company’s own operations. EDC will finance and provide insurance to customer projects across the ABB portfolio, from electrification, motion, process automation to robotics and discrete automation.

,,EDC is committed to supporting large multinational companies, like ABB, that have strong anchors in Canada and are focused on building an innovative, equitable and sustainable economy,” said Sven List, Senior Vice President, Corporate and International Group, EDC. “Extensive capital is required to transition to more sustainable practices and develop greener products and services. Together we will play an important role in developing Canada’s contribution to global sustainability and address pressing issues like climate change’’.

A specific focus will be on strategic investments in technologies and solutions with growth potential, such as green hydrogen production, sustainable transport solutions or the electrification of today’s fossil-based activities to reduce global greenhouse gas emissions. Collaboration with innovative Canadian start-ups is also an essential topic under the umbrella of the partnership with EDC. With over 100 years of technological innovation in Canada, ABB’s success in Canada is driven by 3,100 talented employees in 29 locations from coast to coast.

Source: ABB

RENEWABLE ENERGY SOURCES ARE THE WAY OUT OF THE ENERGY CRISIS

27.09.2023

sunce-klimatske-promene — Foto-ilustracija: Pixabay

The energy crisis showed us how vulnerable we are and how fragile our energy safety is. The war in Ukraine, which caused an unprecedented increase in electricity prices, exposed all the flaws in the electricity pricing system. It forced the entire continent to develop new plans to quickly energy independence so that a similar crisis would never happen to us again. We spoke with Maja Pokrovac, director of RES Croatia (OIE Hrvatska), about what Croatia is doing to overcome the current situation and how much attention the country pays to renewable energy sources.

What is Croatia doing to find a way out of the energy crisis?

In this crisis, Croatia fared better than many countries thanks to developed renewable energy projects, mostly hydroelectric power plants. However, due to the increase in electricity prices, the government of the Republic of Croatia, like other EU countries, implemented special measures such as capping the electricity and heat prices. Furthermore, it adopted measures for developing renewable energy sources, including the abolition of VAT on solar panels. At the same time, this crisis has once again confirmed that only energy produced within the state’s borders can ensure protection from external influences.

With the passing of the Electricity Market Act and the Renewable Energy Sources Act, deadlines for completing relevant administrative processes have been shortened. How does that look in practice, and how fast are renewable energy sources projects implemented?

Photo-illustration: Unsplash (Karsten Würth)

Both acts brought big and significant changes to the RES sector in Croatia. Energy approval has become the first important step in project development, in contrast to the former system where energy approval consequently came after the project was almost developed. According to the new Electricity Market Act, this is a key tool of the Ministry of Economy and Sustainable Development in developing and managing the energy sector. The government introduced significant changes regarding the duration of the project development. Before, a project could last over 10 years, but now it is limited by law to a maximum of five. The time given to fulfil the prerequisites for connection to the power grid has been significantly shortened, and it has now been reduced to three months compared to last year because the requirements have been met for the Croatian transmission system operator to hand over part of its operations to external authorized and certified companies. Opportunities for innovative business formats have also been created. And for the first time, the law introduced electromobility as an important part of the country’s energy transition. After the law’s passing, key by-laws and other regulations were missing, so the development of renewable energy projects could not be implemented at the expected pace.

There were no known rules on the criteria for conducting a public tender for issuing energy permits, which investors often complained about. Thanks to transitional provisions of the new law, it was possible to complete all serious RES projects. Thus, 87 energy approvals with a total power of 2,132MW were issued. Their implementation should begin soon, which means that in the next five years, we will have 2,000MW of energy produced by new RES facilities.

IN FOCUS:

What is our region’s position in the RES segment compared to the rest of Europe?

Photo-illustration: Freepik (@
Oleksandr Ryzhkov)

In terms of the region, it is often associated with great potential. Solar has the strongest potential because it does not depend on location, and each location has insolation far greater than any country in northwest Europe. Indeed, this potential is huge and can put the entire region on the map of those countries which achieved energy independence with the help of renewable energy sources and can also export electricity.

Each country in the region is better than the other in some respects, but we all need administrative obstacles to be eliminated to accelerate the development of RES projects. We have recently published an Action Plan for the Uptake of Offshore Renewable Energy Sources in Croatia, which clearly shows that we have the potential to develop as many as 25GW od offshore wind farms. Our experts have calculated that with the development of 2,500MW of wind and 2,500MW of solar power plants, we could cover all electricity imports. However, the potential for the development of solar energy is significantly higher than that. SolarPower Europe believes Croatia can develop up to 7GW of solar projects by 2030. Croatia has abundant geothermal deposits, and the potential for developing around 1,000MW of geothermal projects has been estimated. We currently have only 10 MW installed. Biogas and biomass plants are also essential to us.

RES Croatia became part of the large European RE-Source platform dedicated to the development of PPA contracts in the European Union. At the same time, Croatia was also included in the PPA statistics for the first time. What changes do PPA contracts bring in Croatia?

Croatian companies sign PPA contracts and receive inquiries for concluding new contracts almost daily. Power purchase agreements (PPAs) are extremely important to the entire energy system and benefit everyone. Companies that are large electricity consumers sign long-term contracts with renewable energy producers on the purchase of electricity at pre agreed prices. It enables producers of energy from renewable sources to safely sell produced electricity and customers to supply green energy at an agreed price safely. This way, companies can more easily plan their annual expenses without contemplating whether a crisis would hit them.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

THE MT-KOMEX COMPANY EXPANDED BUSINESS IN BIH

24.09.2023

solarni-paneli-solar — Photo-illustration: Unsplash (Asia Chang Yr)

Many years of experience in constructing solar power plants have positioned MT-KOMEX as a safe and reliable partner. Engineers and installers employed by the company regularly attend specially prepared trainings and have so far built and delivered equipment for numerous solar power plants on the ground and on roofs, with a total installed capacity of 60 MW. As pioneers in solar power plant construction projects in Serbia, they are always there to help with expert advice and find the best solution for each client.

The leaders of the company realized that with their knowledge and experience in this field, they could help the development of projects in the area of renewable energy sources in Bosnia and Herzegovina, which is why in April of this year, the decision was made to open the company MT-KOMEX BH.

This area’s market is developing very quickly and has great potential, as needs in terms of energy and investments in renewable energy sources. BiH certainly requires its energy capacities in the production of clean electricity to stop using coal for energy production. As they are in the pre-accession arrangement for membership in the European Union, they must work to reduce carbon dioxide emissions, and they can achieve this by phasing out the use of fossil fuels. The logical sequence of events is the transition to clean energy.

IN FOCUS:

‘’Solar and wind energy are our chance to switch to green energy, and I see a lot of room for progress there. The problem in BiH is numerous legal regulations and regulations. It significantly complicates the entire procedure of obtaining all the permits required to construct a solar power plant, which significantly complicates the way for all potential investors’’, explains Radoslav Marić, director of MT-KOMEX BH.

The Law does not regulate the prosumer category in the Federation of Bosnia and Herzegovina, and this deters people from investing in small solar power plants. At the same time, the situation is somewhat better in the Republic of Srpska. Still, Marić believes that the laws and measures that have been adopted are not sufficiently encouraging for ordinary citizens.

He hopes that the legal regulations will be changed and that the authorities will follow the examples of the Republic of Serbia and the Republic of Croatia, which recognized the importance of the prosumer concept by adopting the Law on the Use of Renewable Energy Sources. The fact that the number of small solar power plants doubled last year shows that this segment of the Law is also well-regulated.

Complicated procedure

Different legal procedures in the Federation of Bosnia and Herzegovina, at the level of Republika Srpska and in Brčko District, cause headaches for potential investors in solar power plants. Marić says that the company saw that it could help in this segment, and that’s where they recognized their chance.

‘’We offer, so to speak, a complete package of services. It practically means that the company’s expert team does everything, from idea to implementation. So we issue all the necessary permits, work on the project’s development, and obtain all the necessary approvals. We actually do the entire project, the whole administrative part, and then realize it according to the turnkey system. It is one of the rare and unique offers in Bosnia and Herzegovina’’, Marić explains.

Numerous investors are ready to invest in solar power plants in this country; projects are being prepared for solar power plants, both on the ground and on the roof. The engineers and installers of the company MT-KOMEX BH are ready for all the challenges that business brings to them in Bosnia and Herzegovina and to help every client construct a solar power plant.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

Stepping up in renewables towards energy stability

23.09.2023

Alessandro Bragonzi, Head of Regional Hub for the Western Balkans, one of the participants in the OIE Serbia 2023 conference, organized by the Association of Renewable Energy Sources of Serbia, wrote for OIE Serbia about renewable sources, the increase of which leads to energy stability.

With cold season approaching, European economies are reevaluating their energy plans, hoping for equally mild winter temperatures as in 2022, even though a lot has been achieved to shore up the energy security, independence and foster the path to decarbonisation. Thanks to the REPowerEU plan, wind and solar generated a record one fifth of EU electricity in 2022 (22 percent), for the first time overtaking fossil gas (20 percent), and remaining above coal power (16 percent), according to the European Electricity Review.

Accompanying infrastructure to enable expansion of renewables

Despite the progress, vulnerabilities in the energy sector remain. Clean energy investments on a global scale need a threefold increase by 2023, if we are to reach carbon neutrality by 2050. Public spending constraints make progress even more challenging. Investments are also hindered by higher upfront expenditures, making the cost of funding a crucial variable for investors, even if this is offset over time by lower operating costs.

Expanding transmission and distribution capacity, building interconnections, and bolstering energy storage capabilities to improve grid flexibility will be key determinants for achieving EU renewable targets of 45 percent by 2030. The European Commission estimates that investments of 584 billion euros will be needed. The International Energy Agency indicates that up to a record 2.6 trillion euros will be invested in energy in 2023.

Climate change and the accompanying extreme weather events may seriously impair these ambitions, insofar as causing severe damages to power lines and energy supply. On top of that, heat waves are increasing the demand for energy for cooling, which represents 10 percent of global electricity demand on average, reaching up to 50 percent in some countries. Prolonged droughts are also responsible for water shortages which are directly affecting hydropower and other electricity production capacities. In 2022, due to extreme droughts across Europe, hydropower generation was the lowest in over two decades.

Initiative for coal regions in transition

In the Western Balkans, fossil fuels still account for around three quarters of primary energy supply and energy intensity of GDP is still relatively high. When you look at the technical issues associated with the operation of coal plants, high electricity prices, but also the impact of drought on hydropower and the cost of biomass, the pressure to shift to a more secure and diversified energy strategy becomes clear. However, due to limited financial resources and unstable investment climates, the financing renewable energy projects can be challenging, especially for countries with weaker economies.

Further support of policy makers, enhanced public-private collaborations, targeted investments and technological advancements will be decisive going forward. The EU is providing ongoing support for the regional energy transition through the EU accession process that harmonises energy policies, facilitates cross-border projects and fosters market integration.

The Western Balkans is also part of the EU’s Initiative for Coal Regions in transition that helps countries move towards a carbon-neutral economy, while ensuring that this transition remains just. Thirteen NUTS-2 regions have been identified as eligible, including Kostolac, Kolubara, Obrenovac and Pomoravlje in Serbia. The country also benefits from the EU energy support package allocated to the Western Balkans in 2022, with an individual allocation of 165 million euros provided for Serbian citizens and companies as response to energy crisis.

Increasing financing targets for green investments

As the EU Bank, the EIB Group is contributing to this just and inclusive transformation through clean energy investments, as key enablerof the REPowerEU plan. In July 2023, the bank approved an increase by 50 percent of the financing targets of the original EIB commitment, thus aiming to achieve up to 45 billion euros until 2027 under this initiative. This additional financing is expected to mobilise over 150 billion euros in new green investments, helping Europe cut its carbon emissions to net zero by 2050.

In the Western Balkans, EIB Global aims to help utilities decarbonize their energy production and to back transmission systems operators in their efforts to integrate renewables in modernised electricity grids. Along with large-scale energy infrastructure, it is providing financing for SMEs and local municipalities for renewable energy and energy efficiency projects through dedicated credit lines available at commercial banks.

Alongside European Commission, the bank will continue to help drive forward EU initiatives, including the Economic and Investment Plan, the Global Gateway and the Green Deal which entail substantial funds towards more secure and sustainable energy system in the region.

Author: Alessandro Bragonzi, Head of Regional Hub for the Western Balkans

Lagging policy support and rising cost pressures put investment plans for low-emissions hydrogen at risk

22.09.2023

variety-wonderful-abstract-forms-with-oil-water — Foto-ilustracija: Freepik (freepik)

Momentum behind low-emissions hydrogen continues to grow despite the slow roll-out of financial incentives and stubborn cost pressures that threaten to delay projects, a new IEA report says today. But production levels can still increase substantially by 2030 if all announced projects are realised and greater efforts are made on encouraging uptake.

The number of announced projects for low emissions hydrogen continues to expand rapidly while more than 40 countries worldwide have set out national hydrogen strategies to date. Yet, installed capacity and volumes remain low as developers wait for government support before making investments. As such, low-emissions hydrogen still accounts for less than one percent of overall hydrogen production and use, according to the latest edition of the IEA’s annual Global Hydrogen Review 2023.

Against the backdrop of a global energy crisis, high inflation and supply chain disruptions, new projects face rising costs, at least temporarily, that threaten long-term profitability. Inflation and more expensive borrowing costs are affecting the entire hydrogen value chain, driving up financing costs for developers and reducing the impact of government support. This confluence of factors is particularly detrimental for an industry that faces high upfront costs related to equipment manufacturing, construction and installation.

Despite economic headwinds, deployment of electrolysers is beginning to accelerate. By the end of 2022, electrolyser capacity for hydrogen production reached almost 700 MW. Based on projects that have reached final investment decision or are under construction, total capacity could more than triple to 2GW by the end of 2023, with China accounting for half of this. If all announced projects are realised, a total of 420GW could be achieved by 2030, an increase of 75 percent compared to the IEA’s 2022 review.

“We have seen incredible momentum behind low-emissions hydrogen projects in recent years, which could have an important role to play in energy-intensive sectors such as chemicals, refining and steel,” said IEA Executive Director Fatih Birol. “But a challenging economic environment will now test the resolve of hydrogen developers and policymakers to follow through on planned projects. Greater progress is needed on technology, regulation and demand creation to ensure low-emissions hydrogen can realise its full potential.”

Beyond the challenges facing manufacturers and developers, the report also finds that efforts to stimulate demand for low emissions hydrogen are lagging behind what is needed to meet climate ambitions. Hydrogen use globally reached 95 million tonnes in 2022, an increase of nearly three percent compared with the previous year. There was strong demand growth in all major consuming regions except Europe, which suffered a hit to industrial activity due to the sharp increase in natural gas prices. However, uptake of low emissions hydrogen remains very limited, accounting for only 0.6 percent of total hydrogen demand. As a result, hydrogen production and use in 2022 released some 900 million tonnes of CO2 to the atmosphere.

The report outlines how low-emissions hydrogen can be an opportunity for countries to boost their economies for the future by creating new industrial supply chains. Government funding programmes are already available through schemes such as the US Clean Hydrogen Production Tax Credit, the European Union’s Important Projects of Common European Interest, and the UK Low Carbon Hydrogen Business Model. However, the lengthy time lags between policy announcements and implementation are causing developers to delay projects.

Annual production of low-emissions hydrogen could reach 38 million tonnes per year in 2030, if all announced projects are realised, with almost three quarters of it coming from electrolysers running on renewable energy and the remainder using fossil fuels with carbon capture, utilisation and storage. The best prospects for low-emissions hydrogen use are in hard-to-abate industrial sectors, by replacing hydrogen produced from unabated fossil fuels, but progress has been slow. The lack of attention to hydrogen demand creation is illustrated in existing country commitments. The sum of all government targets for low-emissions hydrogen production accounts for up to 35 million tonnes today, but targets for creating demand account for just 14 million tonnes, only half of which is focused on existing hydrogen uses. Direct purchase agreements with private sector consumers are beginning to emerge but remain at a very small scale.

The report suggests several steps for governments to reduce risk and improve the economic feasibility of low-emissions hydrogen such as effective delivery of support schemes, bolder action to stimulate demand, and addressing market barriers such as licensing and permitting. Moreover, establishing international markets in hydrogen requires cooperation to develop common standards, regulations and certifications.

Source: IEA

INVESTING IN RENEWABLE ENERGY POWER PLANTS

20.09.2023

hidroelektrana — Foto-ilustracija: Unsplash (T L PlbeyaME7Jk)

Photo: courtesy of professor Milenko Đurić

In this article, I will focus only on those electricity sources that use renewable energy, which I know relatively well. These are small hydroelectric power plants, wind farms, solar power plants and power plants that use biomass that they burn directly or generate gas from biomass, mainly used by piston engines with internal combustion.

The basic feature of the first three types of power plants is the great variability of available power. The available power at these power plants is stochastic and can only be partially predicted. It means that the power system to which these power plants are connected must at all times have a working reserve that is at least equal to the power currently generated by small hydropower plants, wind farms and solar power plants. In other words, the installed power in the base part of the power system cannot be reduced at the expense of the installed power in power plants that use renewable energy sources. Power plants that use renewable energy sources can save energy that would otherwise have to be supplied by the base part of the power system. It reduces the consumption of coal, gas and fuel oil in thermal power plants, as well as the release of unwanted gases into the atmosphere.

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Given that funds must be invested in constructing power plants that use renewable energy, the number of MWs installed in the power system has been increasing. It leads to a higher fixed part in calculating the electricity price. The variable part in the calculation is zero for these power plants because the energy of water, wind and sun is free. However, the price of electricity in a power system with renewable energy power plants must be higher than in the same power system without renewable energy power plants because the number of installed MWs in such a power system is higher. The price of electricity in thermal power plants depends a lot on the fuel price (coal, oil, and gas). The increase in the prices of these fuels goes in favour of power plants that use renewable energy because their fuel is practically free.

Power plants that use biomass as fuel have less variability in available power. In this respect, these power plants are better than the previous three types. However, biomass must be collected from large areas of arable or other land and delivered to the power plant, incurring transportation, storage, and biogas production costs.

professor PhD Milenko Đurić

Read the story in the new issue of the Energy portal Magazine RENEWABLE ENERGY SOURCES

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