Ground-breaking data platform plays key role in tackling acute food insecurity in food crises

15.05.2023

cornfield_kukuruz_drought_suša — Photo-illustration: Pixabay

Photo-illustration: Pixabay (PublicDomainPictures)

Detailed, comprehensive and timely data is essential to address the impact of shocks such as, earthquakes or conflict on agricultural production and livelihoods in parts of the world affected by food crises.

Since its launch, during the first wave of the COVID-19 global pandemic three years ago, the Data in Emergencies (DIEM) Information System of the Food and Agriculture Organization of the United Nations (FAO) has made it easier for decision-makers to assess the acute food insecurity of agricultural households and analyse its drivers when such shocks occur.

Driven by regularly collected primary data, combined with geospatial data, DIEM is a ground-breaking tool in terms of its size, sophistication, quality and speed. This is the first time that data focussing on agricultural livelihoods in food crisis contexts is being collected on this scale and frequency.

DIEM is currently active in more than 25 food-crisis countries and the DIEM-Monitoring system surveys approximately 150 000 households per year, representing more than 650 million people.

“The DIEM system fills an important gap in our understanding of the impact of shocks on agricultural livelihoods,” said Rein Paulson, Director of the FAO Office of Emergencies and Resilience. “This has great value not only for FAO but for all our partners, allowing us to collectively make improved decisions, including enabling meaningful anticipatory actions as well as response actions.”

In Afghanistan, for instance, more than 20 project proposals were drafted using DIEM data, raising more than 400 million USD in 2022 alone, and FAO no longer drafts any proposal for Afghanistan without citing DIEM data. In addition, countries such as Bangladesh, Mali, Mozambique and Sierra Leone now cite DIEM data in their project proposals, thus helping them secure funds for projects on the ground.

Another recent example of its use for FAO partners was in relation to the February earthquake that devastated large areas of Türkiye and Syria. Within days of the event, the DIEM team produced a preliminary analysis of cropland exposed to differing levels of earthquake intensity and displayed this as an interactive map with detail at both district and subdistrict level. This kind of product is fundamental for the targeting of on-the-ground assessments and emergency assistance.

Carpe DIEM

Photo-illustration: Unsplash (John Foust)

DIEM was developed by FAO and is funded by the Bureau of Humanitarian Assistance of the United States Agency for International Development (USAID), with contributions from the European Union and FAO’s Special Fund for Emergency and Rehabilitation Activities (SFERA).

The platform aims to support FAO Members, United Nations’ agencies, the donor community and other stakeholders in informing decisions designed to trigger the appropriate anticipatory and response actions in support of agricultural livelihoods.

Data is collected multiple times per year in the world’s most food-insecure countries – at household level through computer-assisted telephone interviews and face-to-face surveys – and is published on the Hub rapidly thereafter. Data processing and analysis is completed in just three days, while the entire lifecycle – from data collection to validation and publication – takes just 30 days.

Transparency and open data are key aspects of the project. Anyone can create a DIEM account to explore surveys, navigate dashboards, export maps and download data. This ensures that DIEM activities serve as public goods and that the humanitarian community, academics, media and all stakeholders can benefit from the large amount of data that is available to everyone.

The shocks analysed by DIEM comprise both natural and human-induced hazards. They include climate-related hazards, earthquakes, volcanic eruptions, invasive pests, conflict and violence, as well as economic shocks.

In addition to regular food crisis monitoring, the DIEM platform also provides an integrated picture of the impact of large-scale hazards (severe shocks) on livelihoods and an estimate of the dollar value of damage and losses to the agriculture sector. This is achieved by combining remote sensing, secondary data review, household surveys, key informant interviews, focus group discussions and crowdsourcing surveys.

One interesting example is Pakistan, where DIEM expertise facilitated a Post Disaster Damage and Loss exercise for the whole agricultural sector following the devastating floods in June – September 2022. The results were then displayed on an interactive map on the DIEM hub, which breaks down overall damage and loss into subsectors (crops, livestock, fisheries) per province affected.

DIEM data is also designed to feed into the Integrated Food Security Phase Classification (IPC) process and other humanitarian response programming efforts, for example, as a source of Food Insecurity Experience Scale (FIES)-based measures of recent food insecurity. Over time, this will prove key to improve the coverage and reliability of IPC acute food insecurity assessments in DIEM countries.

Source: FAO

RESPONSIBILITY TOWARDS NATURAL RESOURCES AND THE COMMUNITY

13.05.2023

There has been an increasing number of public appeals to stop or slow climate change. The United Nations adopted 17 Sustainable Development Goals, which are a kind of call to action to create a more prosperous world where all residents will have a dignified life, economic progress, access to natural resources and peace. A significant number of these goals relate to fostering a responsible attitude towards natural resources, the availability of energy sources and industrial innovations that help protect the environment.

Accordingly, companies from the energy sector are increasingly finding themselves in the spotlight as representatives of an industry that should provide a significant contribution to decarbonization and the reduction of greenhouse gas emissions, as well as decisively contribute to environmental protection and economic progress, while supporting the development of the community in which they operate.

For the NIS Company, one of the leading energy corporations in Southeast Europe, this dilemma does not exist because sustainable development principles are the basis of all the company’s business processes. By embarking on an energy transition, NIS has been contributing to achieving the UN’s Sustainable Development Goals for years. Furthermore, the company is a pioneer in our country regarding reporting on sustainable development. The first verified Report, compiled following the Global Reporting Initiative (GRI) standards, the world’s leading organization in the segment of sustainable business, was published by NIS in 2011. Since then, every year, the company has informed the general public about its business activities and socially responsible programmes transparently.

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In its sustainable development reports, NIS recognizes 12 of the UN’s 17 Sustainable Development Goals, which the company fulfils in its operations. These are good health, quality education, gender equality, clean water and sanitation, accessible and renewable energy, dignified work and economic growth, industry, innovation and infrastructure, sustainable cities and communities, responsible consumption and production, climate action, life on Earth and peace, justice and strong institutions.

To contribute to the decarbonization process, the NIS Company has been dedicatedly implementing its green agenda for years. For NIS, sustainable development implies economic progress with sustainable use of natural resources and activities that, in addition to positive business effects, also provide significant results in terms of environmental protection. Thus, since 2009, NIS has invested around 900 million euros in environmental projects and projects that significantly improve nature’s protection. One of the examples is a deep processing unit at the Pančevo Oil Refinery worth more than 300 million euros. This complex ensures the production of larger quantities of the most valuable fuel in the market. It has significantly reduced the emissions of sulfur dioxide, nitrogen compounds and powdery substances. Thanks to this and a series of other environmental investments, the Pančevo Refinery became the first energy plant in Serbia to receive an integrated IPPC permit, which validates that all production processes comply with the highest domestic and European environmental standards.

Prepared by: Nevena Đukić

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

GOOD POLICIES AND INNOVATIVE TECHNOLOGIES FOR A GREEN TRANSITION

12.05.2023

denmark-Danska — Photo-illustration: Pixabay

Meet the smallest country in Scandinavia. In it, almost every resident, and there are 5.8 million of them, not only owns a bicycle but also rides it every day, and 11,000 km of bicycle paths are at their disposal. In its capital, during the summer, you can see bathers cooling off in the crystal-clear sea water in the nearby harbor. As if the multitude of islands that this country is proud of were not enough, they decided to create new, very special, energy islands. To that, they added climatic and ecological parks. We present to you the green achievements of the Kingdom of Denmark through a conversation with Susanne Shine, the ambassador of this country in Serbia.

EP: The Kingdom of Denmark ranks first in the EPI list (Environmental Performance Index). Does the progress in preserving the environment and nature affect the strengthening of the feeling of happiness since the Kingdom of Denmark has been considered one of the happiest countries in the world for years?

Susanne Shine: We are honored to be at the top of the Environmental Performance Index. Most Danes prioritize environmental protection, and “green living“ has become an integrated part of everyday life in Denmark. As a Danish ambassador, I am proud to see Denmark lead the way.

Getting to this leadership position has not been an easy accomplishment, but it is something that has been built over generations. Besides having a highly developed educational and research ecosystem in Denmark, one of the keys to reaching this position lies in the cooperation between crucial private and public stakeholders in sustainable development. Through close cooperation, we dare to set ambitious climate change and environmental protection goals. It means that good ideas are quickly reflected in policies and regulations, that private and government investments support them and that they enjoy essential public support.

Regarding our happiness, I do think it is a big speculation to draw a straight line from the green transition to a country’s overall happiness. However, in the past decades, we have focused on the restoration of wild nature and on including more nature in our cities. Maybe it does have an effect? Perhaps having more trees and green areas to look at in the cities can actually make people happier.

Photo: Kallerna is licensed under CC BY-SA 4.0.

EP: On the other hand, according to Footprintnetwork, during one year, you use up four to five annual resources of the planet Earth. In what way are you trying to change this?

Susanne Shine: Despite our high rankings in the various indexes, we recognize that there is still a long way to go, and we still have many environmental challenges to overcome. Consumption is increasingly becoming an important political issue, and the government, civil society, and the public are taking more determined steps to combat it. One success within this area is our recycling system for bottles and cans, which has worked flawlessly for years. Another positive step is a new collection system that will more effectively separate household waste and increase recycling. Relatedly, a tax on the use of plastic bags in all shops was implemented a couple of years ago. It has already reduced plastic bag use and helped make consumers more conscious of their environmental footprint. Our new Danish government has announced more ambitious climate change targets, proposing to reach net zero by 2045. To help meet those goals, the government, among other things, plans to roll out an emission tax on the agriculture sector and a tax on air travel. Even though Denmark only accounts for around 0.1 per cent of global greenhouse gas emissions, we are determined to lead by example. We want to show the world that developing replicable and scalable ways to protect the planet while maintaining a prosperous, socially cohesive, and just society is possible. An important aspect of this is our government-to-government energy partnerships with 19 nations representing more than 60 per cent of global greenhouse gas emissions, including China, the U.S. and India.

EP How would you rate the importance of projects such as the Amager Bakke Recycling Center and the waste-water treatment plant on the island of Zealand?

Susanne Shine: These are two really fantastic projects. Amager Resource Centre (ARC) produces district heating and electricity for citizens in the Copenhagen region. Every year, it turns almost half a million tonnes of waste into electricity and district heating for some 140,000 households. It provides the opportunity to establish a circular economic perspective, where waste becomes a useful resource instead of a burden. Also, ARC is located in Copenhagen’s port and industrial area, which has undergone many changes over the past years. Surrounding ARC, the port area has become an extreme sport destination for thrill seekers with different sports activities in the deserted industrial facilities. So in designing ARC, the machinery was built to generate a slope that now serves as a skiing terrain. The project replaces an old waste incineration plant and is part of a municipal initiative to achieve carbon neutrality in Copenhagen by 2025. ARC is set out as a next-generation waste-to-energy plant that is economically, environmentally, and socially sustainable, and where industrial needs are combined with urban leisure to let citizens become part of the process.

Solrødgård Climate&Environmental Park is another interesting project. This park aims to create a closed circular system where preserving nature becomes an integral part of our life.The 50-hectare park includes a new headquarter for Hillerød Utility Company, a waste-water treatment plant and a recycling centre. The park transformed 50 hectares of farmland into a hilly and publicly available landscape with winding streams and wetlands thacatch rainwater and provide habitats for animals, fish and birds. Visitors can learn close-up about the different supply and resource circuits that are part of our ecosystem – and at the same time, experience bats, lapwings and birds of prey in their natural habitat. The climate and environmental park is a place where technology and recreation can be experienced in close and unusual cohabitation. The park offers a unique possibility to play and learn in a landscape where the supply circuits of water, energy and materials are prominently displayed as attractions.

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EP: You have a clear plan to reduce greenhouse gas emissions. What does it include?

Susanne Shine: This ambition of ours is one of Denmark’s most important political goals, and we are working across all levels to achieve it. For example, Denmark has introduced a corporate carbon tax, which means that by 2025, companies will pay around EUR 150 per ton of emitted CO2. The aim of the tax is to reduce the total carbon emissions by around 4.3 million tonnes of CO2 by 2030.

Also, within the agricultural and food sector, we have a strong track record for resource efficiency. While production output has increased by almost a third since 1990, greenhouse gas emissions have declined by around 16 per cent in the same period.

There are many other examples, but these few examples show that not only are we in Denmark able to develop world-class technologies, but we are also able to sustain the green transition by ensuring the right policies and regulatory framework.

Photo: Embassy of the Kingdom of Denmark

EP: You are leaders in constructing offshore and onshore wind farms. However, is wind the only way to obtain electricity exclusively from renewable sources by 2030?

Susanne Shine: Both Denmark and the EU have established strong climate targets. Striving to become climate neutral by 2045, Denmark aims to reduce its greenhouse gas emissions by 70 per cent by 2030 (compared to 1990 levels) and to meet its entire electricity needs with renewables by the same date.

Our expansive plans for offshore wind combined with aggressive climate targets signal that offshore wind energy will become the backbone of our energy system. Denmark, which has always been a pioneer in the use of offshore wind energy, having constructed the world’s first offshore wind energy farm in 1991, is currently in the process of constructing three new offshore wind farms that will be operational by 2030.

Today, more than 40 per cent of Denmark’s energy requirements come from renewables, and we aim to reach 50 per cent by 2030. Last year was a record year for green energy production in Denmark. And though wind remains an integral part of our electricity production, it is not the only source. In 2022, 48 per cent of our electricity came from wind power, 16 per cent from biomass and 6 per cent from solar. On certain windy days, wind turbines can actually produce more than 100 per cent of our electricity needs. Over the past 15 years, the use of coal has dropped by 83 per cent and natural gas by 50 per cent. An important but often overlooked aspect is the importance of the infrastructure surrounding wind turbines and solar panels. In Denmark, we have one of the world’s most flexible and stable electricity grids, ensuring that we have 99.99 per cent security of electricity supply.

EP: The Kingdom of Denmark was among the first to propose the introduction of a complete ban on the sale of cars with IC engines. How is your transition to electromobility progressing?

Susanne Shine: Things are moving forward. The European Parliament just recently – in February 2023 – voted for a landmark regulation intended to push the EU closer to delivering on its target of reducing greenhouse gas emissions by 55 per cent in 2030. Still pending formal approval by the Council, the regulation would ensure that by 2035 no new cars emit CO2. In Denmark, our ambition is to have one million electric and hybrid cars on the roads by 2030. In 2022 the total number of electric cars in the country shot up by 70 per cent to over 112,000 compared to the previous year. Electric and plugin hybrid cars accounted for 38 per cent of new cars sold in 2022. Currently, electric cars make up 7.7 per cent of the 2.8 million cars in Denmark. However, it is not enough to only sell more electric cars – you also need infrastructure supporting the transition. Denmark has, over the past decade, invested in the establishment of proper infrastructure to handle a growing number of electric cars, which includes charging stations all around the country – to ensure that you can travel long distances without having to worry about running out of power. In bigger cities, for example, new parking rules favour electric vehicles with reserved spots and lower fees.

Photo-illustration: Pixabay (fanoutlookdk)

EP: In 2021, the Kingdom of Denmark approved a plan to build the world’s first energy island. Can you tell me more about this project?

Susanne Shine: The concept of the energy island was first introduced by the Danish government in 2020 as part of its Climate Plan. The plan’s most notable and ground-breaking feature was the announcement to establish the world’s first two energy islands by 2030. While offshore wind farms up until now have functioned as individual entities that supply electricity to one specific region or country, energy islands will serve as a hub for electricity generation from multiple offshore wind farms. Basically, the energy islands will be able to produce hydrogen, which can be used in the transportation sector and energy sector. When talking about renewable energy, one of the main issues with wind and solar is how we store the surplus energy produced on windy or sunny days. On a technical level, the energy islands will include cutting-edge Power-to-X technology (or PtX). PtX uses surplus energy from wind turbines to transform water into hydrogen through electrolysis. This hydrogen can then be stored and used to produce fuel for the shipping industry or to support the grid when wind turbines do not produce enough power.

That will enable Denmark to diversify its energy sources, so our electricity supply is less dependent on how the wind blows. One of the islands, which will be located in the North Sea, is to take the form of either an artificial island or a platform that will need to be constructed. Serving as a hub for offshore wind farms, the island will encompass a total capacity of 3 GW and potentially up to 10 GW in the future. Once completed, the island is intended to supply Denmark and the Netherlands with green electricity. Currently, feasibility studies are underway to select the optimal location of the island in the North Sea. Furthermore, the energy islands will allow for more efficient utilization of far offshore wind resources and thus create room for significantly more offshore wind in the Danish and European energy system. In addition, it can contribute to reducing investments in transmission cables and grid reinforcements on land. The energy islands will be the largest infrastructure project in Danish history. From a European perspective, the energy islands signal a new epoch in the use of offshore wind energy, where offshore wind farms are no longer national projects but instead examples of transnational cooperation.

EP: Serbia is on its way to becoming a member of the European Union. What advice would you give us to cross that road as quickly and easily as possible?

Susanne Shine: Denmark has been a member of the European Union for 50 years now. As a Danish citizen, I see how much membership has meant for Denmark and the development of Danish society. Apart from our fundamental values included in the Copenhagen Criteria, such as democracy and the rule of law, another important aspect of the EU is our focus on the green transition. Implementing necessary reforms enabling the green transition in Serbia would bring Serbia closer to EU membership and increase the quality of life for all Serbians. Implementing great changes is neither quick nor easy. It requires political will, but it also requires that the broader society gets involved. This is why cooperation is needed, not just across countries but also within. As an example of this type of cooperation in Denmark, I would like to highlight the Danish non-profit ‘State of Green’ – a public-private partnership owned by the Danish state and three leading Danish business associations.

State of Green brings together more than 600 Danish businesses, agencies, academic institutions, experts, and researchers working to drive the global transition to a sustainable, low-carbon, resource-efficient society. I am confident that Serbia has the necessary skills and knowledge to solve these issues. The next step is to engage different stakeholders in cooperation – in order to understand how to bring good ideas into operation. With the purpose of engaging with Serbia on its green path, the Nordic countries recently finalized our ‘Nordic Green – Solutions for Serbia’- project, through which each of the Nordic countries shared their own experience and expertise in different sectors, such as sustainable agriculture and industrial processes, renewable energy, and waste recycling. This project – combined with the many Danish energy companies that are increasingly looking to Serbia to invest – shows the vast potential for Serbia to progress on this path.

Intervieved by: Milica Radičević

BOFFETTI, GLOBALLY RENOWNED QUALITY FROM THE ALPS

11.05.2023

The Italian company Boffetti has been in business since 1982, and their long standing experience allows them to be involved today in every phase of the energy projects. With Edoardo Boffetti, the Sales and marketing engineer at this company, we talked about the long way they have come from manufacturing switchboard and other apparatus to engineering and commissioning various plants on land and at the sea, while using renewable energy sources and smart networks.

EP: You can offer everything for the implementation of one project. What does that include exactly?

Edoardo Boffetti: We can provide development of technical solutions, conceptual design, then we can deliver the equipment, place fixtures, do the commissioning and further maintenance. As you can see, when you rely on one company to do all the work, that means that the project finish line will be reached sooner and the desirable outcome more attainable.

EP: In the manufacturing sector, there is also wide production range?

Edoardo Boffetti: Yes. Since 2007, we have been applying acquired knowledge in production too, such as switchboards, apparatus, components for electricity distribution and numerous other products. We have developed different variety of products to cover all the functions required by modern electrical and industrial systems. The products are also certified by independent bodies (CESI, ACAE, SGS) which are in line with IEC standards.

EP: How do you apply the circular economy principles?

Edoardo Boffetti: The biggest advantage of our products is their design which allows easy disassembling at the end of their lifespan, enabling for each one of their components to be fully recycled afterwards. All materials are catalogued according to their ecological impact in order to facilitate collection, recycling, decontamination and transfer to specialized and certified companies. Finally, I have to point out that all our products are designed and made completely in our production facility in Italy. However, through our sales and service network we are present in the markets of Europe, Middle East, Asia, Africa and South America.

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EP: How does that path from an idea to project implementation look like?

Edoardo Boffetti: Primarily, we offer technical consultancy, then we set out to make the best solution, with economic estimation of supply. After that, we get down to integration of products and equipment, make analysis of the project development and workflow, and right at the end we deal with commissioning and plant certification. For numerous clients we have done engineering of the big, complex facilities, building electric and instrumental plants, providing support, organization of expert teams and specialized technicians, procurement of main material and equipment, technology integration and training the operators. We are especially proud of being able to offer specific projects at land and at the sea, as well as in potentially explosive hazardous areas, thanks to our well-trained and certified personnel. Additionally, we provide global service which is available to our clients 24 hours a day. It includes plant maintenance, activities in state of emergency, support through installation phase, commissioning or fault-free operation and continuity of service.

EP: Have you already been involved in project in renewable energy sources?

Edoardo Boffetti: We are witnessing continually high demand for electric energy. We are aware that it is necessary to integrate as much as possible renewable energy sources into the electrical distribution network. I say, if we want to generate an amount of electric energy to meet all our needs while at the same time reduce its negative impact on the environment, we must produce electric energy from renewable energy sources as much as we can. Thanks to decades-long experience in distribution networks construction, we have the skills and abilities to make the complete facilities which balance production and consumption of electric energy in a flexible manner. We were involved in the projects for smart networks development that aimed to increase the energy share coming from renewable energy sources that are delivered to the grid. Also, we built two solar power plants for supplying our facilities with electric energy, in Chignolo d’Isola and Bonate Sotto (BG) with a respective capacity of 200 kWp and 1 MWp.

Interviewed by: Nevena Đukić

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

THE LARGEST SOLAR POWER PLANT IN SERBIA, DELASOL, WAS PUT INTO OPERATION

11.05.2023

The largest bifacial solar power plant on earth, DeLasol, with a capacity of 9.913 MW, was commissioned in early April. It was built on the territory of the municipality of Lapovo on an area of 12.5 hectares. It will produce 15,000 megawatt-hours of electricity annually. Its size is also reflected in the number of solar panels – as many as 17,980 state-of-the-art panels, with 650/655Wp power generation capacity, manufactured by the renowned Canadian Solar.

Bifacial solar panels were used to construct this solar power plant, which can yield electricity from both sides of the panel, which is why they generate a larger amount of electricity. The solar panels are placed on a specially-made construction that allows greater absorption of reflected radiation. 8.9 million euros were invested in the DeLasol solar power plant, and the complete work, from the idea, plant design and construction, was performed exclusively by our experts and domestic companies. DeLasol will make a great contribution to the energy system of Serbia. On an annual level, it will reduce CO2 emissions by more than 11,000 tons and contribute to improving environmental protection. The ceremonial commissioning of the power plant was attended by Dubravka Đedović, Minister of Mining and Energy, Igor Anić, President of the Executive Board of ProCredit Bank, and Miloš Kostić, the investor.

“Cooperation and synergy between the public and private sectors are important for greater security of supply and for a successful green energy transition. Apart from the fact that some large projects backed by the state are coming to an end and new ventures are starting, we must have ambitious and large projects implemented by the private sector. The DeLasol solar power plant is an example of how, by using solar energy, we can simultaneously improve the electricity supply’s security and environmental protection,” said Minister Đedović.

As she emphasized, the state’s task, which is intensively worked on through the adoption of regulations and the preparation of strategic documents, consists of creating the conditions for constructing new power plants from renewable energy sources. At the same time, our energy system performs its basic task: a safe supply for citizens and the economy.

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The minister added that the amendments to the Law on the Use of RES when adopted by the parliament, will enable the implementation of auctions for market premiums for producers of energy from renewable sources, which opens the way for us to increase our solar and wind capacities by about three times in the next few years.

“We had the challenge of building a solar power plant that, according to the new legal procedures, allows anyone who wants to produce electricity to enter the open market. Behind us is a turbulent time regarding markets and prices, but we managed to build a power plant and sign a contract with a domestic supplier who supported this project with a four-year contract. We will start the construction of another 10-megawatt power plant at this location during the year, and we plan to build more solar power plants in the coming years, which will contribute to reducing harmful gas emissions and improving living conditions. I hope that with our joint efforts, we help the Republic of Serbia and achieve the goal of getting 40 per cent of our energy from renewable sources by 2040,” said Miloš Kostić.

According to Igor Anić, ProCredit Bank is proud to have participated in this project.

“DeLasol is a role model for other investors who understand the topic of sustainability and are determined to put it into practice. ProCredit Bank is the ideal financial partner for such businesses because we have decades of expertise in energy efficiency, and more than 500 million euros invested in our clients’ green projects. We understand, live, promote and finance this topic. It is a very important part of our business strategy today and in the future,” said Anić.

A reliable construction partner

The construction of the DeLasol power plant was entrusted to the company MT-KOMEX, the leader in the construction of solar power plants in our country. During three decades of business, it has built and delivered equipment for 180 solar power plants on the ground and on roofs, the total installed power of which is 60 MW.The hard workers of this company, more than 130 engineers and installers, are in charge of introducing new areas of business on the domestic market. The company’s employees regularly attend specially prepared trainings and have all the necessary certificates. This collective stands out for its willingness to always provide clients with full support in all project phases, from the development stage to the preparation of documentation for technical acceptance and obtaining a use permit on a turnkey basis.

At MT-KOMEX, they believe that solar energy is the right solution for achieving energy independence, and that’s why they work hard to build solar power plants. They are determined to help achieve the share of RES of 40 per cent by 2040, which was set by the Government of the Republic of Serbia. The sustainability of the DeLasol power plant is also reflected in the fact that the land under the panels will be used in the best way. In the following period, the flock of sheep is expected to be released to the “solar” pasture. This decision will support the needs of farmers for areas for grazing animals, considering that such areas are becoming fewer and fewer. Here, in turn, they will maintain the green areas around the power plant completely naturally. Grazing reduces the need to use lawnmowers that require electricity or fuel.

Prepared by: Milica Radičević

WHEN WE SAVE FOOD, WE SAVE HUMANITY

10.05.2023

Did you know that nearly one-third of grown and produced food on the planet is thrown away or wasted? It means that almost 1.3 billion tonnes of food are never consumed. To reduce the volume of food waste in the European Union (EU), its members have been measuring food waste volumes in all phases of the food supply chain since 2020. This October, Eurostat announced the first statistical monitoring results regarding food waste volumes in the European Union per sector in 2020.

According to the data, in 2020, the first year of the COVID-19 pandemic, nearly 57 million tonnes of food waste was generated in the EU, or around 127 kilogrammes per inhabitant. Household food waste is twice the size of the waste generated by the sectors with strategies for food waste reduction, including primary food production and processing, food retail, distribution, etc. According to Eurostat, households in the EU generate 55 per cent of food waste, accounting for 70 kg per inhabitant.

The remaining 45 per cent is waste generated upwards in the food supply chain. The United Nations Environment Programme estimates that 2 million kilogrammes of food are wasted daily in Serbia. On the other hand, according to the latest data, 446,000 individuals cannot meet basic living needs. It is necessary to encourage cross-sectoral cooperation to additionally promote the reduction of waste food volumes and increase donated food, in addition to the improvement of the tax treatment of food donations. To that aim, the Coalition for Giving, including the Ana and Vlade Divac Foundation, Trag Foundation, Smart Kolektiv, Catalyst Balkans, Serbian Philanthropic Forum, CSR Forum and Chamber of Commerce and Industry of Serbia, supported by USAID, launched the “Save food, save humanity” campaign, marking the National Day of Giving in 2021.

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The campaign’s relevance has been recognized by numerous individuals and 50+ organizations, companies, and media outlets. The campaign has been highly successfully presented this year, with 112,047 kg of food collected for the most vulnerable individuals across the country in both cycles, thanks to a synergy of civil society organizations, companies, citizens, and media, with the campaign continuing until end-November.

“In the year of celebrating our 55th anniversary of operation, we have helped the most socially vulnerable individuals through donations to the Food Banks Belgrade, Vojvodina and Niš, within the “Save food, save humanity” campaign. In addition to donating our food, we have also provided media space to support the campaign and raise public awareness regarding the issue of excessive food waste in the most effective manner“, said Ivan Jovanović, Corporate Communications Manager in Bambi.

He added that he was particularly glad that, as a member of the Coca-Cola Hellenic Group, we have approached this project together, expressing solidarity in donated volumes of food and drinks. Through a range of activities, such as crowdfunding campaigns, food donations by producers, donation boxes in stores of the largest retail chains, zero banking fees for donations for purchasing staples for the vulnerable, the “Save food, save humanity” campaign has managed to demonstrate the relevance of joint and synergy action, focusing public attention on the necessity to tackle both issues – insufficient food donations and need for preventing food waste. In promoting this charitable campaign, the media have proven to be much-appreciated allies.

The speed and intensity of messages and ideas for rational food consumption reaching every individual in our country largely depend on their understanding and support. There is a saying in our country that time is money, but we are not sufficiently aware of the value of the food we waste, as it can be directed to the most vulnerable social groups while still safe for consumption. Therefore, it is important to be constantly reminded that food must not be wasted, that we should help one another, and that any food waste is a waste of resources and money. Furthermore, it is important to note that food with a short expiration date is burned, causing additional carbon dioxide emissions and affecting the environment. From that perspective, rational food management also confirms sustainable and responsible treatment of nature.

Therefore, we invite you to join us in the mission of increasing food donations and against food waste in Serbia at www.spasimohranu.rs.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

Association RES Serbia is a New Member of SolarPower Europe

09.05.2023

solar-panel-g20da084fd_1920 — Foto-ilustracija: Pixabay (

Association Renewable Energy Sources of Serbia joined the membership of the European association SolarPower Europe.

SolarPower Europe is a European association for solar energy that brings together more than 280 different companies and organizations from the solar energy sector, which since its establishment has successfully advocated solar energy solutions, leads communication with European policy makers and helps in creating an environment that enables maximizing the growth of solar energy in Europe.

InfluenceMap ranked SolarPower Europe as the second leading association in the European Union for engagement in EU energy and climate policy. SolarPower Europe has a mission to ensure that solar energy becomes the leading energy source in Europe by 2030, while working intensively to lead its members to make solar energy the core of a sustainable, secure and inclusive energy system in order to achieve climate neutrality in the EU much before 2050.

RES SERBIA IS A NEW MEMBER OF WINDEUROPE

SolarPower Europe, together with its members, works to create and improve the regulatory and business environment for raising the use of solar energy to the next level, and how the Association RES Serbia, together with its members, strives to improve the business environment in the field of renewable energy sources and, in the service of preserving the environment, encourages the production and use of electricity from renewable sources, access to this recognized European association was a logical sequence of activities.

Association RES Serbia has been a member of the European wind energy association WindEurope since July 2021, and now, less than two years later, following the growing trend of interest in solar energy, the Association is intensifying its activity in monitoring the developments of this segment of the renewable energy sector. By becoming a member of WindEurope and SolarPower Europe, Association RES Serbia will strive to contribute to the improvement of the sector of renewable energy sources in Serbia, but also to facilitate and adapt to the energy transition in which the entire region is located.

Source: RES Serbia

SERBIA CANNOT AFFORD TO GIVE UP ON THE GREEN TRANSITION

08.05.2023

ljudi-ulica — Photo-illustration: Unsplash (Timon Studler)

Renewable energy sources (RES) have long been a prerequisite for energy, economic, and thus national stability, while the ongoing energy crisis has further highlighted the need for green investments. However, as the transformation of the energy sector is much more than just switching from fossil fuels to renewable energy sources, it is necessary to adjust the regulatory framework so that complicated procedures are avoided and potential investors can easily decide to build RES power plants in the future.

We talked with Peter Mitrović, a lawyer who heads the regional industrial group Energy and Natural Resources at the Karanović & Partners Law Firm, about how the legal framework regulating renewable energy sources can be improved in order to expedite and promote Serbia’s energy transition.

EP: You have been helping your clients to develop, implement and finance new energy projects with an emphasis on renewable energy sources. Since the green sector is still developing, what challenges do you face?

Petar Mitrović: At the moment, the key challenge is the unfinished regulatory framework for developing projects that use renewable energy sources. Experience from the previous period tells us that one of the critical factors for the implementation of such projects is adequate regulation, which is the result of a compromise of all key factors – those who make strategic directions and political decisions, system operators (first and foremost, transmission system operators), then investors and financiers. As of recent, this kind of compromise has been lacking. The conceptual divergence of the Ministry of Mining and Energy, as the creator of the Renewable Energy Sources Law, and the EMS resulted in the fact that, from April 2021 to date, we do not have a rounded regulatory framework for the development of renewable energy projects. And so, from a solid law, that everybody expected a lot from, we fell into a period of stagnation, and every stagnation is actually a regression. We still don’t know what the balancing system will look like.

The law provided some frameworks, but the by-laws that were supposed to be elaborated on were not adopted. Now, admittedly, we are increasingly hearing announcements that the law will be changed to prescribe that, even before the establishment of a liquid intraday market, producers of electricity from renewable sources will be fully responsible for the balance. Another unknown is how and under what circumstances new projects will be connected to the transmission system. The basic prerequisites for announcing an auction for awarding premiums to solar and other power plants, except for wind firms, have not been created. As for wind farms, the maximum “incentive” price is set but this is an incentive only for EPS, which certainly could not be the basic idea. The state has no influence over many circumstances, such as the war in Ukraine, overall inflation, rising financing costs and disruptions in the supply chain. However, if the key stakeholders agree on the strategic directions for the development of our power sector, and I think they are obliged to do so, then this challenge, arising from an incomplete regulatory framework, can be overcome.

IN FOCUS:

EP: If the unfinished regulatory framework is the main challenge or the main obstacle, how can you and your clients overcome it?

Petar Mitrović: The circle of opportunities has been narrowed down to constant appeals for the activities on this topic to finally start. Along with that, or perhaps better said within that, we have been making constructive suggestions through various professional associations regarding the direction that these activities should take. As far as other challenges go, by default, they differ from project to project. These include a lack of planning documentation, issues of environmental impact assessment, complicated and unresolved legal issues regarding ownership, delay in issuing various permits, unfounded requests and inconsistent practice of authorities. Yet, while the challenges are different, the answer is often the same – let’s find a compromise solution. Experience from previous projects, as well as experience from the region and Europe, helps a lot in this. But the key prerequisite is to listen to each other.

EP: Are you optimistic about the further development of RES projects in Serbia and the region, or do you think that because of the energy crisis we are slowly reverting to fossil fuels?

Petar Mitrović: I would say that the crisis did something completely opposite – that in the long term, it gave additional wind to the sails of the green transition. As never before, energy security has become an unquestionable prerequisite for national security. As a limited and short-term response to the crisis, decisions are occasionally made that could be interpreted as Europe reverting to fossil fuels, but I think that such an interpretation is deeply flawed and often extremely malicious. Relevant sources say that energy security in Europe can be ensured in the long run only through greater integration of renewable energy sources. And Europe will certainly not give up on that. We can see that the pace of activities in this segment is picking up. I would say that the same relates to Serbia. This does not mean that coal-fired power plants should be shut down tomorrow. But in the long run, there is no doubt that abandoning the green transition would cost us dearly, in terms of security, health and economics. Because of this, I am confident that a framework will be created in this country to foster the development of renewable energy projects on a larger scale than ever before.

Interviewed by: Milena Maglovski

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

BANKS CAN CHANGE BOTH THE WORLD AND AWARENESS

07.05.2023

ProCredit Centrala NBG — Photo: ProCredit bank

The current climate situation requires reduced emissions of harmful gases to stop the increase in the average global temperature above 1.5 degrees Celsius compared to the pre-industrial level. To find a straightforward solution to the challenges we are facing, we need to go back to the beginning and understand the cause that led us to the problem we are fighting against.

What is the carbon footprint?

Every human activity leaves a carbon footprint. Put simply, the total amount of greenhouse gas emissions produced directly or indirectly by people, organizations, events and companies is a carbon footprint. Its quantity measures our impact on the environment and climate change. Carbon footprint represents the sum of all emissions of carbon dioxide and other gases that retain heat in the atmosphere, causing global warming, and which humans cause by their actions over a certain period. As a guideline for the fight against these adverse effects, the European Union has set an ambitious goal – carbon neutrality by 2050. To reach the set goal, the Fit for 55 set of regulations and measures was adopted to accomplish the goal of a 55 per cent net reduction in greenhouse gas emissions by 2030.

Everyone can reduce their carbon footprint by changing their lifestyle and consumption habits, such as reducing the use of cars that run on fossil fuel, using renewable energy sources, consuming more sustainable products, and making smarter use of living and working space. And that’s just a small part of the changes we can implement. Companies, institutions, governments and large organizations are the ones that should make the greatest effort but also show others by example how positive changes can occur. That is why many of them strive to do responsible business, which puts environmental protection and the reduction of greenhouse gas emissions in the foreground.

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Responsible business as a choice

ProCredit Bank gives a good example of this practice. The Bank contributed at the Group level by reducing its share of carbon dioxide by 56 per cent between 2018 and 2021. This was achieved by using solar energy, monitoring electricity and heat consumption, banning single-use plastics in business premises, and purchasing electric and plug-in hybrid vehicles, with the goal that all vehicles in the Bank’s fleet will emit zero CO2 by the end of 2022. The Bank has been doing business responsibly for decades because it takes responsibility for assessing the environmental impact of not only its own but also the activities of its clients on the environment and society. Thanks to dedicated work, ProCredit Bank is recognized as a green transition leader in Serbia.

ProCredit Bank’s every activity must be verified as sustainable, which is why the Bank works on planning and optimizing procedures to save resources almost daily. The fact that all the Bank’s operations must not have an impact on the environment, which is why the Bank will never lend to someone whose activities negatively affect the environment, regardless of the profitability the business brings, demonstrates just how committed the Bank is to achieving the set goals. Thanks to a careful and prudent approach to credit risk analysis and avoiding making compromises for the sake of profit, ProCredit Bank has a stable and strong loan portfolio. The constant education of employees about sustainable and responsible business and environmental protection ensures additional stability and security. The Bank works every day to transfer everything they apply to their clients and train them how to make their business sustainable.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

THERE IS NO PROFIT IF THERE IS NO CONSUMER TRUST

06.05.2023

By launching initiatives aimed at achieving a net zero emission rate by 2050 in the countries in which it operates, Nestlé has been actively fighting climate change. In 2010, the company pledged to fight against deforestation. Thanks to their socially responsible and educational campaigns, such as the 2020 campaign called “Nestlé Saves Nature”, they have been drawing the public’s attention to the importance of responsible water and plastic use and waste management, with a special focus on the proper management of food surpluses. We spoke with Milica Milanović, Corporate Affairs Manager at Nestlé Adriatic, about the support that this company provides in the preservation of natural resources.

EP: Estimates show that two million kilogrammes of food are thrown away in Serbia every day, and it is currently more profitable to destroy expired food instead of donating it because you don’t have to pay VAT if the food is destroyed. In 2021 and 2022, Nestlé donated more than 70 million dinars worth of its products to vulnerable groups throughout Serbia through various charity activities and campaigns. Does social responsibility come before profit?

Milica Milanović: They are inseparable. Today, no brand can be profitable if it doesn’t win over consumer trust, and the trust is built by investing in the preservation of the community. The quantity of wasted and destroyed food is huge, which directly impacts CO₂ emissions, while about half a million people in our country live on the edge of poverty. Something is not right. As part of the general circular business model, we have established a system that manages excess products. In cooperation with food banks and other organizations throughout Serbia, we regularly donate our products to vulnerable groups. However, the paradox is that charity has become expensive, so small producers, despite empathy, cannot afford to give gifts but instead have to destroy their products. On VAT on donations, we have been working with our industry peers – the Responsible Business Forum and the Chamber of Commerce and Industry of Serbia. Recently, the Ministry of Agriculture, Forestry and Water Management organized a panel discussion where we talked about this important topic. Everyone is aware that a change in regulation is necessary, and I believe that it will happen in the coming period.

IN FOCUS:

EP: Nestlé supports 500,000 farmers worldwide in implementing regenerative agriculture. In Serbia, in 2021 and 2022, Nestlé invested 140,000 Swiss francs in local production processes carried out in line with the regenerative agriculture principles. How does this work, and what exactly is regenerative agriculture?

Milica Milanović: Regenerative agriculture practices, which, among other things, include afforestation, reduced tillage and planting of cover crops, have recently been implemented in our country, thanks to the programme that Nestlé implements globally with its suppliers. The companies Telek Paprika and Geneza from Kanjiža, the largest suppliers of vegetables used in our famous Začin C (Spice C), have been using organic fertilizer instead of artificial one since last year, thus protecting the soil from erosion with rows of trees and planting different crops to get better yields and healthier vegetables, but also to preserve natural resources for future generations. Soil rich in organic carbon is more fertile, has greater biodiversity and is a better water filter, improving surface and groundwater quality. Regenerative agriculture practices simultaneously bring positive economic effects, resilience to climate instability, and prosperity to agricultural communities. Globally speaking, by 2025, Nestlé will have invested 1.2 billion Swiss francs in implementing regenerative agriculture to reach zero greenhouse emissions by the same year. It is interesting to note that, despite people initially thinking that production is responsible for most of our emissions, close to 70 per cent of greenhouse gas emissions come from agricultural activities of our suppliers, i.e. before a raw material even reaches Nestlé. Nevertheless, we assess our influence through the entire supply chain. By recognizing agriculture as a key segment, we decided to invest in our suppliers so that they can continue to apply regenerative agriculture independently over time.

EP: Your new plant-based food factory in Surčin will adhere to the latest environmental standards in the industry, will use renewable energy produced by hydro-power plants, will not generate municipal waste and will treat wastewater immediately in its own wastewater treatment facility. When is the factory going to be commissioned?

Milica Milanović: The factory’s construction is going according to plan, and we are nearing its end. We expect the start of production in the first half of next year. The same standards of sustainability that you mentioned earlier and that we apply in our existing plant in Surčin will also apply to this factory. Nestlé is the first food company to reach the goal of producing zero waste for landfills, which means that it does not send a single ounce of waste to landfills, but rather recycles it or uses it for other practical purposes, such as the production of fertilizers, biofuel or eco-insulation boards. The new plant will produce meals from the Nestlé Garden Gourmet range, which are an adequate substitute for meat in terms of their nutritional value.

Interviewed by: Milica Marković

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

IT IS NECESSARY TO INTRODUCE MORE ENERGY-EFFICIENT TECHNOLOGIES

05.05.2023

A1 najbrža mobilna mreža koja voli planetu — Photo: A1

To contribute to the reduction of the carbon footprint by using energy from renewable sources, the company A1 Serbia installed more than 3000 solar panels. It became the first telecommunications company on our market whose network infrastructure relies on this technology. Sustainability, along with the quality of the A1 network, which has been declared the fastest mobile network in Serbia for the second year in a row, will be imperative to preserve both the top user experience and the environment.

EP: The Austrian group A1 Telekom, the owner of the company A1 Serbia, has committed to achieving carbon neutrality by 2030 through a gradual transition to renewable energy sources, reducing the carbon footprint and increasing energy efficiency. Why is it important for Internet service providers to turn to green energy?

Dejan Turk: The telecommunications industry is not a big polluter. It is responsible for only 3.7 per cent of global CO₂ emissions. However, it is a large consumer of electricity, being a provider of the Internet and solutions based on its use. Not surprisingly, this 3.7 per cent is predicted to double in the next three years. The need for connectivity at all levels are growing. To meet these needs, it is necessary to introduce new technologies, such as 5G, which are more energy efficient. Preservation of the environment has not been a matter of choice for a long time. I believe that everyone, both industry and individuals, can contribute to efforts to make the world a healthier place to live today and for future generations. With this in mind, we have set ourselves a new quality parameter related to sustainability. We are building a sustainable network whose quality is internet access speed, reliability and coverage, and the careful use of natural resources. This approach enables the further expansion of our infrastructure while at the same time achieving higher energy efficiency and lower energy consumption, increasing efficiency and the possibility for optimization.

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EP: What concrete steps have you taken in implementing the ESG strategy on the Serbian market?

Dejan Turk: Since July of last year, we have been using 100 per cent green electricity to power the mobile network, devices, and infrastructure. Thanks to this, we reduced CO₂ emissions by 19 per cent in 2021. This year we went one step further. We have started installing solar panels at all our base stations where there are conditions for it. We currently have close to 3 000 solar panels, and the plan is to install more than 2 500 new panels by the end of next year. We are also planning to install solar panels at our Data Center in Kragujevac because radio base stations and Data Centers have the greatest impact on the total electricity consumption. I am proud that we are pioneers among operators in this field, because currently we are the only ones in Serbia using solar panels to supply part of the network infrastructure with electricity. Bearing all this in mind, we expect significantly better results this year than the previous one.

EP: What does A1 Serbia’s socially responsible strategy look like in accordance with ESG goals in the field of environmental protection? Dejan Turk: Contribution to solving the problem of air pollution, and protection of natural resources and biodiversity are imperative in our business. I will mention only some of the projects that contribute to the preservation of the environment, whose development and implementation we supported through our social responsibility platform ”The World You Want” – the association “Bašta može svasta” launched the first organic garden. The Internet Society of Serbia launched a project for the development of devices for air quality measurement “Klimerko”, there is also a project of a sanatorium for protected species of wild birds in the environment of Bačka Topola Agricultural School, which the school initiated, and the action “Serbia without illegal landfills” which is dedicated to the reduction of illegal landfills in Serbia.

Interviewed by: Milena Maglovski

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

Italy’s Progress on Energy Efficiency Provides Foundation for Meeting Broader Energy and Climate Goals

04.05.2023

zaštita životne sredine - srbija - zelenilo - polje — Foto-ilustracija: Unsplash (sasa damjanovic)

Italy is on track to meet its national emissions reduction and energy efficiency targets for 2030, according to a new in-depth policy review by the IEA, which highlights that cutting red tape further to speed up deployment of renewables should be a priority as Italy prepares to pursue more ambitious EU climate goals and reduce reliance on Russian energy supplies.

Since the last IEA review in 2016, Italy has increased its climate ambitions by endorsing the EU-wide goal of reaching climate neutrality by 2050, as set out in the European Green Deal. While Italy has made progress in a number of areas around energy efficiency and lowering emissions under its national strategy, it will need to make additional efforts to meet the EU’s more ambitious Fit for 55 package, which is yet to be agreed but will include new targets for 2030.

Despite vast natural resources suited to renewables and an industrial base that can drive the phase out of fossil fuels, Italy’s deployment of clean energy technologies has remained relatively slow over the last decade. Electricity generation from renewables more than doubled between 2005 and 2020, but most of this growth occurred in a five-year period (2010-2014), bolstered by generous incentives for solar PV. Since then, lengthy permitting procedures, high administrative costs, availability of land and local opposition have hampered new installations. Reforms made during 2022 and the planned adoption of a new regulatory framework are already addressing these bottlenecks, the IEA policy review notes.

“Italy has made important strides in energy efficiency, helping to improve its resilience to shocks like the global energy crisis and also to advance its strategy for reducing emissions,” said IEA Executive Director Faith Birol. “Accelerating the deployment of renewables and other clean technologies while strengthening energy efficiency further will be essential for making greater progress on energy security and decarbonisation at the same time.”

Today, Italy is heavily reliant on natural gas for both heating and power, with imports making up the lion’s share of its demand. In response to Russia’s invasion of Ukraine, the Italian government has committed to phasing out gas imports from Russia, its single largest supplier, by 2025. Thanks to investments made over the last decade to diversify gas supply routes, including through the Middle East and North Africa, Italy was able to quickly transition away from Russia. This is a delicate balancing act, with Italian gas demand expected to remain strong and likely to increase further in the short term as new gas-fired plants for electricity production come online.

Italy’s commitment to improving energy efficiency has helped it to achieve a decline in energy demand in the buildings sector. The energy demand reduction from buildings is the result of various policy measures, especially the super bonus scheme that offers tax reductions for expenses incurred improving the energy efficiency of buildings. While the scheme has been successful in delivering energy savings, not all socio-economic groups have been able to benefit from it to the same degree. The IEA report therefore recommends that Italy consider implementing tailor-made energy efficiency policies and instruments that successfully address the energy needs of the most vulnerable segments of the population.

Reducing energy poverty is a key policy concern in Italy, and that focus has intensified in the current era of high energy prices. Italy is implementing several policy measures to improve affordability across the board, but there is scope for more targeted interventions. In parallel, raising consumer awareness of the relationship between energy consumption and costs is needed and could be achieved through increased deployment of smart meters and a greater focus on system flexibility – two areas where Italy has already made substantial progress.

“Italy’s international leadership on power system modernisation is commendable,” said Dr Birol. “I hope this report will provide some valuable insights into how Italy can build on its current successes and deliver a sustainable, secure and affordable energy transition. I am also looking forward to working closely with Italy under its G7 Presidency in 2024 to support these priorities within the international community.”

Source: IEA

A PROFITABLE AND SAFE INVESTMENT IN THE CONSTRUCTION OF A SOLAR POWER PLANT

03.05.2023

solar-panel-renewable-energy — Photo-illustration: Unsplash (Andreas Gücklhorn)

The new Law on Renewable Energy Sources (RES), and state subsidies for the purchase of solar power plant equipment created the prerequisites for a real market boom. Both individuals and companies have shown great interest i, so the jump in sales of solar panels and construction of solar power plants is almost expected. According to the data collated by the Ministry of Mining and Energy, the prosumer status has been approved for about 5MW of new solar power plants, while almost a hundred megawatts are in the process of obtaining this status. We spoke with Miroslav Lutovac, the energy adviser to the president of the Chamber of Commerce and Industry of Serbia, about financial benefits for companies with prosumer status and whether the RES Community model is more profitable.

EP: With the passing of a new energy&mining law and bylaws, the prerequisites for companies to build solar power plants as prosumers to cut their business costs have been met. How willing are companies in our country to make such changes?

Miroslav Lutovac: There are two basic reasons why companies and households in Serbia decide to invest in constructing a solar power plant to meet their own needs – financial and environmental benefits. Of course, financial well-being is a decisive factor including an acceptable return on investment period of 5 to 6 years and minimal operating costs, i.e. maintenance costs. All this makes the investment very attractive. Practically, this means that you can fulfil your electricity needs for about 25 years, which is the estimated lifetime of the power plant, by paying in advance the total energy spent during this period at a price that is four times lower than the current price.

A less favourable methodology applies to legal entities, that is, companies. It means that the price of surplus electricity delivered to the power grid is lower than the company originally paid for. Despite this, the interest is high, and it will certainly be even greater as the market price of electricity increases.

IN FOCUS:

EP: The law, for now, allows the establishment of associations or Communities, enabling small producers to organize and offer surplus electricity generated from renewable sources to the market. What are previous experiences with these communities?

Miroslav Lutovac: Members of a Renewable Energy Sources Community (Community, for short) can be natural or legal persons (provided that the production of energy from renewable sources is not their main or predominant activity), local self-governments or other types of local governments. The main goal of forming the Community is using renewable energy sources to meet the needs of its members. By uniting a number of smaller renewable energy sources, the Community can become a relevant participant in the electricity market, directly or through an intermediary. In this way, the Community members have better financial benefits.

As far as I know, two Communities have been formed so far, but there are initiatives by various companies to create several more such associations. It is too early to talk about the achieved effects, but we expect the Community model to be more profitable than the prosumer model.

EP: Lack of rain this summer reduced electricity production in Serbia’s hydroelectric power plants. Is the operation of thermal power plants jeopardized by these unfavourable circumstances?

Miroslav Lutovac: Hydropower plants account for about 30 per cent of the annual electricity production in the country. The operations of hydroelectric power plants directly depend on precipitation. In this sense, in addition to precipitation, it is also of great importance that the inflow is not extreme (periods of heavy precipitation and periods of severe droughts). This year was quite dry, although the situation improved considerably in November. We can expect with great certainty that, this year, hydropower plants will generate electricity whose quantity is significantly below the multi-year average. In addition to the reduced production from hydroelectric power plants directly contributing to the increase in the average electricity generation price, low inflow greatly affects the flexibility of the power system and to some extent, its stability and reliability.

EP: How can low water flow threaten thermal power plants, and what is the current situation with water flow?

Miroslav Lutovac: Large amounts of water are needed for the normal operation of thermal power plants. Our largest thermal power plants, in Obrenovac and Kostolac, use water from the Sava and Danube rivers. Water from rivers is pumped in by special water supply systems, which have suction baskets lowered into rivers at the entry end. When the river level is very low, i.e. close to or at the level of the suction baskets, the operation of the water supply system must be stopped to prevent damage. It causes a thermal power plant to suspend its operations. The current hydrological situation is such that the river level does not threaten to the safe operation of thermal power plants. With the drop in temperature, inflow will also decrease in the following period, but critically dangerous river levels that could threaten the operation of thermal power plants are not expected.

Interviewed by: Katarina Vuinac

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS.

AMBITIOUS GOALS ACCOMPANY BIG CHANGES

02.05.2023

environmental-protection-priroda-planeta-zemlja — Foto-ilustracija: Pixabay

The requirement to move to a sustainable business only a few years ago did not have the same value and importance as it does today. During the height of the energy crisis and with clear indications that more stable solutions must be sought, the transition to sustainable business becomes a true imperative.

Schneider Electric has been on this path for many years, and that’s why we are talking to Ksenija Karić, director of Schneider Electric for Serbia and Montenegro, about whether the transition to sustainable business can be accelerated and to what extent such a transformation can affect the near future.

EP: Given that time plays a key role, in which segments/industries would it be most rational to switch to sustainable processes?

Ksenija Karić: If you consider that buildings and industries are the biggest consumers of energy, the fastest progress can be achieved with digital efficiency, both in buildings, by introducing sensors and systems for monitoring and control and in the industry with energy management systems. As the biggest consumers of energy, buildings and industry could save incredible amounts of energy, up to 30 per cent, with a quick return on investment of around 5 years. The installation of energy-efficient solutions in office buildings should also not be a matter of long deliberation because all technologies are already available and can be implemented quickly. According to the data we have for the retail establishments that already use such solutions in Europe, the savings were 23 per cent, and the return on investment was 2—4 years.

IN FOCUS:

EP: Sustainable business has long become a measurable category. How do you measure performance in that field?

Ksenija Karić: According to the SSI program 2021—2025, we committed ourselves to action, divided into six segments which are followed by adequate metrics. Since sustainable business cannot be viewed in an isolated context but must refer to all spectrums: social, environmental, corporate and financial, we have divided the operation into six segments. These segments include: acting for a climate-positive world — by continuously investing in and developing innovative solutions that deliver immediate and lasting decarbonization in line with our carbon pledge; developing resource efficiency by acting responsibly and making the most of digital technology to preserve our planet; affirmation of living following our principles of trust by supporting all around us for high social, management and ethical standards; creating equal opportunities, ensuring that all employees are uniquely valued and work in an inclusive environment in order to develop and give their best; harnessing the power of all generations by encouraging the learning, improvement and development of each generation, paving the way for the next generation and empowering the local community by promoting local initiatives and enabling individuals and partners to make sustainability a reality for all.

EP: Is this enough, and does the timing work for us?

Ksenija Karić: Although we are extremely proud of being a recognized leader in sustainable development, these last years have been a reminder that none of this is enough. The goal of reaching zero emission of harmful gases by 2030 is a race against time. According to our company’s research, as a basis for staying on track and limiting global temperature rise below 1.5°C, carbon dioxide emissions must be reduced by 30 to 50 per cent in this decade compared to current levels. Without such engagement, it becomes almost impossible to limit global temperature rise below 1.5°C, as presented by the Intergovernmental Panel on Climate Change (IPCC).

The only realistic path to success is the application of proven digital technologies with increased electrification as the fastest way to decarbonize buildings, transport and industry. The advantage of this approach over others is that it buys time to deal with sectors where these changes are more difficult to introduce. All other strategies would overburden consumers and not have a positive effect in an adequate period.

Despite the importance of the current moment in which the importance of sustainability is recognized and the fact that an increasing number of companies are adopting ambitious goals in terms of combating climate change, the need for acceleration is more than clear. At Schneider, we strive to be part of the solution and to support organizations in their pursuit of gradual decarbonization and the fulfilment of climate change strategies. We are accelerating the expansion of our consulting services globally to respond to the growing need for significant progress in the energy transition and climate change goals. We have made big changes with our wide network of partners and this experience tells us that many companies are ready for new industries and positive changes. However, they need a trusted partner who combines strategic planning and goal setting in accordance with proven results in the implementation of solutions to achieve faster and more visible results.

Interviewed by: Milica Marković

Read the story in the new issue of the Energy portal Magazine RESPONSIBLE BUSINESS

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