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REPowerEU: A Plan to Rapidly Reduce Dependence on Russian Fossil Fuels and Fast Forward the Green Transition

Foto-ilustracija; Unsplash (Dimitry Anikin)
Photo-illustration: Pixabay

The European Commission has presented the REPowerEU Plan, its response to the hardships and global energy market disruption caused by war in Ukraine.

There is a double urgency to transform Europe’s energy system: ending the EU’s dependence on Russian fossil fuels, which are used as an economic and political weapon and cost European taxpayers nearly 100 billion euros per year, and tackling the climate crisis. By acting as a Union, Europe can phase out its dependency on Russian fossil fuels faster.

85 per cent of Europeans believe that the EU should reduce its dependency on Russian gas and oil as soon as possible to support Ukraine. The measures in the REPowerEU Plan can respond to this ambition, through energy savings, diversification of energy supplies, and accelerated roll-out of renewable energy to replace fossil fuels in homes, industry and power generation.

The green transformation will strengthen economic growth, security, and climate action for Europe and partners. The Recovery and Resilience Facility (RRF) is at the heart of the REPowerEU Plan, supporting coordinated planning and financing of cross-border and national infrastructure as well as energy projects and reforms.

The Commission proposes to make targeted amendments to the RRF Regulation to integrate dedicated REPowerEU chapters in Member States’ existing recovery and resilience plans (RRPs), in addition to the large number of relevant reforms and investments which are already in the RRPs. The country-specific recommendations in the 2022 European Semester cycle will feed into this process.

Read the full article HERE.

Source: European Commission

Who’s Afraid of Energy Crisis

Foto-ilustracija: Pixabay
Photo: Courtesy of Nikola Grubor

The prices of fossil fuels are not standing still yet on the world market, so the kilowatts obtained from them are very expensive. It is clear that for a stable future, we need renewable energy sources (RES) that will make the current energy crisis and excessive air pollution things of the past. In addition, RES brings young people the opportunity to be part of an ever-evolving industry, to constantly adopt new technologies and find secure, well-paid jobs. Therefore, our interlocutor is a young engineer Nikola Grubor, who found his job and a group of like-minded people in the CEEFOR company.

CEEFOR has been designing solar power plants for more than ten years and helping its clients reduce electricity consumption, and Grubor and his team are responsible for some of the largest solar power plants in our area. We talked to the young engineer about his journey into the world of green kilowatts and young people’s growing interest in entering this industry.

We also referred to the energy crisis, and Grubor spoke about the reasons why the industry is increasingly turning to solar energy, as well as the recently adopted Law on the Use of RES, which can bring energy stability and financial benefits to Serbian citizens.

EP: We are witnessing an increase in the price of conventional energy sources, and thus electricity worldwide. Can the citizens of Serbia prevent the energy crisis with the help of renewable energy sources?

Nikola Grubor: The large rise in electricity prices, caused by increased energy demand after the opening of large economies, then reduced production from wind farms in northern Europe, as well as problems with Russian gas, is a major blow to our industry. Although citizens did not feel the effects of the energy crisis, as the price of electricity has changed only for industry, the question is how sustainable the current situation is. After major accidents at TENT and the state’s inability to provide energy for its own needs, any additional installed capacity from renewable sources is a relief, both for the state that will import less energy and for consumers who will significantly reduce electricity bills at times when market prices are at an all-time high. I would like to mention that the energy transition should be approached responsibly, and we should not rush into the immediate shutdown of conventional power plants, as the consequences of irresponsible integration of renewable sources into the system could be incalculable.

EP: Last year was marked by the adoption of several laws in the field of mining and energy, one of which relates to the use of renewable energy sources. Can you tell us which novelties were introduced by this law and what they will bring to Serbia’s citizens?

Nikola Grubor: The long-awaited law passed at the end of March last year introduced a few innovations that are the basis for large investments in the development of solar power plants and wind farms, increasing the share of renewable energy sources in our system and reduce emissions. With the possibility of obtaining so-called market premiums through auctions (they are a supplement to the market price of electricity delivered to the market), the law allows citizens and companies to gain the status of buyer-producer (so-called prosumer) through a simplified procedure lasting a few months. The prosumer has the right to produce electricity for his consumption, but he can also deliver any surplus to the transmission or distribution system.

EP: How many projects has your company implemented so far? Have factors such as the new Law on RES, higher electricity prices and the need to reduce greenhouse gas emissions contributed to the increase in workload?

Nikola Grubor: Although the increased volume of work was expected after adopting the new law, and the ensuing energy crisis hit everyone. The industry, which will not be able to keep up with such a rise in prices, is forced to turn to solutions such as solar power plants. Prior to the price increase, the projects were investments that were repaid within six to seven years, while now, it takes four to five years to return on investment. As for the projects of company, many of them have already been realized or are approaching their realization. Many projects (measured in tens of megawatts) are in preparation, which is a good indicator that large investors have recognized who is the true leader in the field of renewable sources.

EP: Being part of a growing industry, such as renewable energy, certainly carries a number of challenges. How often are employees required to learn and adopt new technologies?

Nikola Grubor: As mentioned, the challenges are numerous. Manufacturers of solar system components are improving their products every day to make the systems better and more efficient so that they can crystallize as leaders in their fields in the world. Although fundamentally similar, let’s compare projects from a few years ago with today’s. We can see significant differences, which is the best indicator of how vital everyday learning and adoption of new technologies is.

EP: Can you single out one or more projects that were specific and why were they different? How did you solve the challenges you encountered while working on it?

Nikola Grubor: Each project is specific and different from the previous one, whether it is a 50 kW or 10 MW power plant. Every step of the project, starting from the original idea, solution, the whole correspondence with the relevant institutions, and implementation represents a kind of challenge that is easily solved with a quality team of people that the company CEEFOR has.

Photo-illustration: Unsplash (Science In Hd)

EP: Which project (or projects) would you single out as the most important?

Nikola Grubor: At this moment, I would like to single out the solar power plant in Sremska Mitrovica with a capacity of 3 MWp*, which will be built on the roof of the building, as well as the power plant 8.4 MWp in Indjija, which will be the largest power plant built in our country.

EP: Why should young engineers enter this industry?

Nikola Grubor: There are several reasons. There is already a shortage of engineers who would meet the need for professional staff in this field (I would note that only hired five new engineers in 2021). With the development of electromobility and electricity storage technologies, the need for professional staff will even increase. In addition to working with new technologies, the realization that each project is a positive step towards reducing emissions and preserving the environment is only an additional motive for any individual willing to try in this industry.

Interviewed by: Milena Maglovski

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY.

Energy Community Parliamentary Plenum Debates Energy Security Amidst Russian invasion of Ukraine

Foto-ilustracija: Unsplash (Quinten de Graaf)
Photo-illustration: Pixabay

Parliamentarians of the Energy Community Contracting Parties and the European Parliament met in Brussels under the umbrella of the Energy Community Parliamentary Plenum. In the presence of EU Commissioner for Energy Kadri Simson, Members of Parliament discussed how to strengthen Europe’s energy security following Russia’s invasion of Ukraine. Support for the energy sector of Moldova and Ukraine and enhanced European energy market integration were also discussed.   

The Chairman of the Committee on Industry, Research and Energy of the European Parliament, Cristian-Silviu Buşoi, said: “As the war in Ukraine reshapes EU energy policy, we must look for joint solutions to ensure affordable, sustainable and secure energy for European citizens. Energy market integration with our neighbours via the Energy Community is critical for strengthening the EU’s energy security and delivering on the objectives of the European Green Deal.”

The Chairman of the Committee on Energy, Housing and Utilities Services of the Verkhovna Rada of Ukraine and Chairman of the Energy Community Parliamentary Plenum 2022, Andriy Gerus, underlined: “Ukraine is grateful to its EU and Energy Community partners for having come to its aid in these tragic times. The war is a dramatic wakeup call for our shared energy security. Ending dependence on Russian fossil fuels and fast-tracking the clean energy transition are critical to strengthen the energy sector.”

Members of Parliament also exchanged views on accelerating the implementation of the European Green Deal to further the uptake of energy from renewable sources and advance Europe’s energy independence. It was underlined that the Energy Community is a key instrument of EU external energy policy.  

The Energy Community Parliamentary Plenum brings together representatives from each national parliament of the Contracting Parties (Albania, Bosnia and Herzegovina, Kosovo*, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine) and representatives of the European Parliament. The objective of the Energy Community Parliamentary Plenum is to address shared energy challenges and support the establishment of a European energy market which works to the benefit of citizens.

Source: Energy Community

Berlin Pushes For a 60 Euros Minimum Price on EU Carbon Markets

Foto-ilustracija: Unsplash (Ella Ivanescu)
Photo-illustration: Pixabay

Discounting allegations of speculation on the EU carbon market, Berlin is throwing its weight behind a minimum price of 60 euros per ton of CO2, saying it will ensure this through national measures if the EU does not take action.

After prices on the EU carbon market soared in 2021, EU capitals are now seizing the chance for reform as discussions in Brussels continue over the proposed revision of the EU’s Emissions Trading Scheme (ETS) directive.

Many governments are unhappy with the rapid rise of carbon prices, which they accuse of pushing up the cost of electricity.

Among the critics, Poland is pushing for “a profound reform of the ETS system, which will take into account the current situation on the energy market.”

Polish Prime Minister Mateusz Morawiecki even spoke of a “speculative bubble,” a position supported by Spain, Hungary and other Eastern EU governments who fear a voter backlash in the face of rising prices.

Minimum price

Undeterred by critics, the German government, on the other hand, wants to ensure prices are kept high enough to encourage private investments in low-carbon technologies.

“We certainly support the beefing up of the ETS system,” said Patrick Graichen, Germany’s climate state secretary, during a meeting of EU environment ministers in December.

To the German government, a price of around 60 euros per ton appears as an optimal middle ground between ambitious climate action and social acceptance. Shortly after it came to power last year, the new German government made its position on this very clear.

“We want a minimum carbon price across Europe,” Graichen said in December.

In comments to EURACTIV, the ministry for economy and climate action now reiterated Germany’s continued support for “an ambitious reform – including a minimum price” for EU emission allowances.

“If the European Union does not agree on a minimum price, the German government will decide on national measures to ensure that the CO2 price does not fall below 60 euros/tCO2 in the long term,” a ministry spokesperson said.

For Berlin, the top priority is to ensure a minimum price signal to drive decarbonization decisions by the private sector, a position supported by energy utilities and retail companies.

“For more investment security, Germany and the EU need immediate further development of emissions trading with accompanying measures for an investment-relevant CO2 price signal,” reads a 2017 letter by an industry coalition of 52 large companies, including Aldi, Puma and Siemens.

More recently 2021 survey conducted by VKU, the association of local public utilities, found that 69.4 per cent of local utilities saw a lack of planning and investment security as the biggest barrier to Germany’s Energiewende. 56.3 per cent of members cited a reform of carbon pricing as their top priority for the German government.

Source: EURACTIV.com

Why we Need Global Cooperation on Decarbonizing Cities and Real Estate

Foto-ilustracija: Pixabay
Foto-ilustracija: Pixabay

In an increasingly challenging and volatile world, the urgent need to decarbonize real estate remains a constant.

There are no quick fixes that will suddenly transform today’s energy inefficient buildings into models of sustainable construction in the coming decades. It will take time, investment and expertise to retrofit the majority of buildings across urban areas.

Yet given that more than 60 percent of carbon emissions within cities typically come from buildings, a concerted effort is needed sooner rather than later.

It’s why longer-term commitments for a net-zero future are now fueling shorter-term pressures to start formulating action plans that will deliver steady progress.

Around the world, city governments are often leading the charge. From New York City to Paris to Singapore, many cities now have a raft of targets and actions covering new and existing commercial real estate.

While this momentum is to be applauded, it brings with it issues of its own.

JLL’s soon-to-be-published report “Decarbonizing Cities and Real Estate” reveals a rapidly evolving patchwork of regulations and metrics across 30 major global cities. With little harmonization or integration, it makes for a complex global picture.

Each city is drawing on a unique blend of tools to decarbonize buildings – from building codes, reporting and disclosure frameworks and energy audits, to minimum building standards, incentives and accelerators.

As a result, cross-border real estate investors and end-users are struggling to navigate the global net zero carbon (NZC) regulatory landscape to ensure their portfolios are future-proofed.

Cities to watch

Foto ilustracija: Pixabay

Some cities are clear frontrunners in envisaging and implementing innovative plans. The familiar roll call of trailblazing “sustainable cities”, such as Copenhagen (with its Energy Leap initiative) and Vancouver (with its Zero Emissions Building Plan) are ahead once again. They have built up considerable momentum, experience and knowledge, and are hitting the ground running in this important decade of action.

But arguably, the ones to watch are the climate-progressive global gateway cities which are being most strident in their approach to decarbonizing buildings. In Asia, for example, Singapore’s Green Building Masterplan is an ambitious, target-focused roadmap to green its building stock by 2030. Tokyo’s cap-and-trade programme incentivizes building owners to reduce emissions by setting targets and allows parties to sell or purchase credits.

Over in the US, New York City has introduced a wide range of laws covering energy benchmarking, energy audits, emissions standards and building codes. It has also set one of the highest carbon taxes at USD 263 per ton of CO2.

And in Europe, Paris is taking a lead in tackling embodied carbon, with its “Design for Reuse Principles” and its RE2020 regulation which embraces the entire life cycle carbon impact. London is setting the pace on biodiversity legislation, with requirements for major developments to create a ‘biodiversity net gain’ plan.

Collaborative models for the future

As best practice emerges in the trailblazing and climate-progressive cities, we’re reaching an inflection point where governments and the real estate industry need to work together on greater harmonization and consistency of policy, regulation and reporting.

We need to scale best practice globally. Many cities are only just starting on their decarbonization journey and can learn much from the successes, and the mistakes, of the leading cities. But far too often, they’re going down their own unique route.

Foto-ilustracija: Pixabay

Partnerships at all levels will be crucial to pool resources and knowledge, to share best practice, to educate and accelerate, to help scale technology, and to create the right balance between regulation, incentivization, coercion and advocacy. As decarbonization ramps up, we must bring with us the long tail of smaller landlords, investors and occupiers who often lack the knowledge and resources to take action independently.

City governments have a key role to play in creating the infrastructure, frameworks, laws and incentives for all stakeholders to be successful. In particular, they need to drive the greening of local energy grids, over which the real estate industry has little direct control.

And while decarbonization is the end goal, it must be pursued in tandem with social equity, affordability, biodiversity and climate adaptation.

If there’s one common thread currently linking all city governments, it’s the understanding that it’s time for urgent action. While the global regulatory landscape is confusing, as last year’s COP26 highlighted, there’s a wide recognition that emissions from buildings matter and there is strong appetite to build consistency across regulations, reporting and measurement standards.

Net-zero targets will simply not be achievable without a proactive and collaborative programme to significantly reduce embodied and operational carbon emissions from buildings.

By working together, learning from other cities, and sharing best practice, city governments will be better able to bridge the gap between intent and action and make this vital decade count as a true tipping point in creating a more sustainable future.

Source: World Economic Forum

Facing Floods and Landslides, Afghans Turn to Nature for Protection

Photo-illustration: Unsplash (Ej Wolfson)
Photo-illustration: Unsplash (Sohaib Ghyasi)

Amir Beg Khusrawi still has vivid memories of a flash flood that swept through his village in Afghanistan’s rugged northeast a decade ago.

“[It] destroyed around 20 houses, claimed livestock, and damaged our agricultural lands so that even now we are not able to use them,” says Khusrawi, 61.

His experience is not unique. In remote settlements across Afghanistan’s Pamir Mountains, deep in the heart of Central Asia, locals have long struggled with landslides and floods.

In recent years, though, both have become worse as flagging rainfall, worsened by climate change, and both overgrazing and fuelwood collection have stripped the land of the greenery that once acted as a barrier against the elements.

For many, the combination of floods, landslides and persistent drought has compounded the challenges of living in Afghanistan.

In some parts of the Pamirs, though, slopes are stabilizing.

That includes the Deh-shahr catchment, a 60 km2 swath of Afghanistan’s rugged Badakhshan province that is home to 3,000 people.

There, local residents, with support from the United Nations Environment Programme (UNEP) and the Aga Khan Foundation, have replanted native trees and shrubs on steep slopes, constructed earthen works to slow water runoff, built small dams to control gullies, and renovated  leak-prone drainage canals.

The effort, funded by the European Union, has helped buffer communities from floods,  landslides and avalanches by restoring vegetation cover and improving soil stability.

“Often, the best solutions for problems like floods and landslides are a hybrid combination of natural and built infrastructure,” said Hassan Partow, a Programme Manager at UNEP’s Disasters and Conflicts Branch. “They are cost-effective and readily available, which is crucial in a country like Afghanistan.”

Source: UNEP

EBRD and Donors Help Reboot Small Businesses in North Macedonia

Photo-illustration: Pixabay (Dormeur 74)
Photo-illustration: Pixabay (WohnblogAt)

The European Bank for Reconstruction and Development (EBRD) is stepping up cooperation with Komercijalna Banka in North Macedonia by extending a new EUR 2 million credit line. The proceeds will be used to help small and medium-sized enterprises (SMEs) in the country to reboot their businesses after the disruptions caused by the Covid-19 pandemic.

The loan was signed on 12 May during the EBRD’s Annual Meeting, which took place in Marrakesh, Morocco.

Francis Malige, Managing Director of the EBRD’s Financial Institutions Group, said: “We are very pleased that again together with Komercijalna Banka Skopje we can extend further support for local SMEs. The funds will help small businesses to invest in modern technologies and to recover from the negative effects caused by the pandemic.”

Maja Stevkova Sterieva Ph.D., Chief Finance Officer and Member of the Board of Directors of Komercijalna Banka AD Skopje, said: “Continuing with our efforts to support the national economy in this post-pandemic period, we are very glad that we can support SMEs with EBRD’s credit line of EUR 2 million. We are especially pleased that the funds from the credit line are intended primarily for investments in green energy and competitiveness, which is in line with our commitment to support and contribute to the development of sustainable businesses.”

Komercijalna Banka will on-lend the funds to small firms, enabling them to invest in better-performing green technologies and to improve their working standards and processes. These investments should make local SMEs more compliant with European Union and international standards, therefore boosting their competitiveness in both domestic and foreign markets.

The SMEs will also benefit from grant incentives worth up to 15 percent of the loan amount. The grants will be funded by Luxembourg, Norway, and the United States of America, and other donors are expected to participate.

The credit line is part of the EBRD’s new SME Reboot Programme that supports small firms’ recovery from the pandemic-induced slowdown. Komercijalna Banka Skopje is the first bank in the country to join the programme, which encourages SMEs to go beyond business as usual and invest in modern and sustainable technologies. Around 70 percent of programme funding will be allocated to investments in energy-saving and green technologies, while the remainder will support investments in automation, increased productivity, product quality, and safety.

Komercijalna Banka is a long-standing partner of the EBRD in its work supporting SMEs in North Macedonia; it has already extended over  EUR 7 million to local SMEs under the SME Competitiveness Support Programme.

The EBRD is a major institutional investor in North Macedonia. To date, it has invested more than EUR 2.2 billion in 159 projects there. Supporting green energy is a priority for the Bank, as it addresses one of the country’s most pressing challenges: decarbonisation of its economy.

Source: EBRD

BMW Group Uses Sustainable Paints Made From Bio-Waste

Photo: BMW Group-Fabian Kirchbauer
Photo: BMW Group-Fabian Kirchbauer

The BMW Group is using innovative technologies in its efforts to improve sustainability and taking advantage of new options to conserve resources and reduce emissions from painting bodywork. The BMW Group is the first automotive manufacturer worldwide to use matt paints made from biomass instead of crude oil at its European plants. In addition to this, BMW Group Plants Leipzig and Rosslyn (South Africa) are also using sustainably-produced corrosion protection. Renewable raw materials such as bio-waste or waste from sewage treatment plants serve as the starting material for the paints. The CO2 savings determined in a TÜV-certified process amount to over 15,000 tonnes of CO2 emissions between now and 2030.

“By reducing our use of fossil raw materials, we can conserve natural resources and lower CO2 emissions at the same time. To achieve this, we are increasingly relying on sustainability innovations in our supplier network,” says Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network. “Innovative paints based on renewable raw materials are an important step in this direction.”

Organic waste replaces fossil resources

BASF’s innovative production process makes it possible to replace petroleum-based precursors, such as naphtha, with renewable raw materials from organic waste, starting in the early stages of paint production. This not only reduces consumption of fossil resources, but also avoids the CO2 emissions associated with the production, transport and processing of crude oil.

The corrosion protection and matt paints used at BMW Group Plants Leipzig and Rosslyn are chemically identical to the paints previously used, with all the same properties as conventionally manufactured body coatings. Since bio-based and conventional coatings are produced on the same line, BASF adopts an externally certified mass balance approach.

The amount of paint purchased by the BMW Group is calculated to be exactly equivalent to the amount of bio-naphtha and bio-methane that would be required for 100-percent petroleum-free production. The sustainable manufacturing process reduces the CO2 emissions from paint production by more than 40 percent. The two BMW Group plants in Leipzig and Rosslyn produce an average of around 250,000 vehicles per year.

Source: BMW Group

Fuel Price, Excise, Strategic Reserves of Oil and Petroleum Products – What Do We Know About It?

Foto-ilustracija: Pixabay
Photo: Courtesy of Tomislav Mićović

Fuel prices plummeted again in February, causing concern in the local market, especially after additional forecasts that the cost of crude oil will continue to rise. Although it is impossible to stay immune to the changes happening in the global market, proving the trend of increasing fuel prices in almost all parts of the world, something can still be done.

To increase the security of motor fuels supply, it is necessary to form strategic state reserves of oil and oil derivatives that will ensure the functioning of society in the event of local, regional, or global disruptions affecting oil and oil derivatives. These are the words of Tomislav Mićović, Secretary-General of the Association of Oil Companies of Serbia.

It sounds very reasonable, contrary to the witty comment of a driver who advises you always to top up the tank for a thousand dinars so as not to feel the price increase. Since there is no place for jokes when talking about important things, we asked Tomislav Mićović what has been done so far to protect the local market from the risks in the supply of oil and oil derivatives.

EP: Increase in excise duties on derivatives in Serbia tells us that we should expect higher fuel prices throughout 2022. What are the predictions?

Tomislav Mićović: Fuel prices in Serbia, as in all countries in the region and Europe, have never been higher in the last ten years than today. To get a clearer picture, when we compare fuel prices in different periods, we should also compare the market conditions relevant to those periods. First, I would like to remind you that Serbia has largely changed its excise taxation policy by introducing the Law on Excise Duties in October 2012. The dynamics of the rapid growth of excise duties were adopted so that by the end of 2016, the total state duties on fuel in Serbia became significantly higher.

Even then, we were worried that we were facing a complex process of adapting national regulations to the Acquis Communautaire, which would substantially raise costs in producing and trading petroleum products. The increase in excise duties on motor fuels, the introduction of fees for the formation of required reserves, fees for improving energy efficiency, fees for fuel labeling, and fees for quality monitoring contributed to the increase in government revenues. On the other hand, due to the growth of state duties, the price of oil derivatives also increased, which slowed down consumption growth, gave impetus to the grey market, and part of the fuel supply consumed in Serbia was redirected to neighboring countries.

The biggest change in the fiscal burden occurred in the trade of LPG, the most environmentally friendly oil derivative, followed by diesel, which drives industry, transport, agriculture, and construction and thus, to a greater or lesser extent, affects almost all products and services. Budget revenues have increased significantly, which is indisputable. Still, it would be good if the competent state authorities analyzed of the possible adverse effects of large fiscal duties on the economy and society in general.

EP: Recent increase in the price of a barrel of oil of $10 in just 10 days was a shocker, but does it always have to mean significantly higher prices at gas stations in Serbia?

Tomislav Mićović: There is no national market, including the Serbian market, that can remain isolated from the changes happening on the global level. To mitigate the drastic increase in the costs for the economy, i.e., the increase in the prices of products and services, each country can adjust excises, VAT, or some taxes, until the energy prices return to an acceptable level. Such measures are being considered in many countries. In the first week of February, a barrel of BRENT, the European reference oil, was sold at prices above $91. Although analysts rarely agree, they now share the opinion that during this year, oil could exceed the price of $100 per barrel, even making the annual average above this level.

Photo-illustration: Unsplash (Kartikay Sharma)

The Government could certainly declare such an increase as a disturbance and react with measures that would prevent a further rise in fuel price. High energy prices could greatly slow down economic growth, much needed in the post-pandemic period, according to most world economists.

EP: When we compare gasoline prices on January 24, 2022, the cost of gasoline in Bosnia and Herzegovina was $1.39, in Northern Macedonia $1.44, and in Serbia $1.63. On that day, diesel price was $1.71 in Serbia, 1.41 in Bosnia and Herzegovina, and $1.3 in Northern Macedonia. How do you comment on that?

Tomislav Mićović: Once you exclude the state duties of each of the countries from the prices listed, you would be surprised to see that the differences in prices between these companies have been close to non-existent. Some difference does exist because not all countries have equal access to sources of oil or oil derivatives, and business conditions and market competition is not the same. The key difference in retail fuel prices arises when adding state duties, which vary greatly from country to country.

Interviewed by: Milica Marković

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY.

Slovenia’s Largest Solar Power Plant Opens Near Hrastnik

Photo-illustration: Unsplash (Andreas Gücklhorn)
Photo-illustration: Unsplash (Sungrow Emea)

The state-owned power utility HSE launched on Friday a 3.036-megawatt solar power plant in a rehabilitated and closed section of the Prapretno landfill near Hrastnik. The largest facility of the kind in the country, worth EUR 2.5 million, is expected to provide electricity for around 800 households.

A total of 6,748 photovoltaic modules installed at the former brownfield site will produce more than 3 GWh of electricity a year, and the plan is to expand it to a total installed power of 14 megawatts.

HSE said that the launch of the solar power plant in the former coal mining region was an investment in security of electricity supply that followed EU guidelines on reducing carbon emissions.

HTZ, a subsidiary of the coal mine operator Premogovnik Velenje, was hired to supply the equipment and install and launch the power plant.

The opening ceremony was attended by Prime Minister Janez Janša, who noted that Slovenia now had sustainable and green energy sources at its disposal after decades of production of electricity mainly from fossil fuel sources.

He added that the state would give back to regions where coal had been extracted for electricity production by providing funds from the Just Transition Fund.

The prime minister noted that the energy crisis in the aftermath of Russia’s attack on Ukraine made the resources Slovenia had at home more valuable today than in the past, adding that Slovenia needed to continue to build small hydro and solar power plants.

HSE director general Viktor Vračar said that the new installation pursued the objective of secure and reliable electricity supply, adding that international events had forced Slovenia to strategically restructure its energy sector.

The goal is decarbonisation and reduced dependence on foreign energy, and this means investment, he said, adding that the ECB had assessed that EUR 350 billion was needed for this over the next decade.

Hrastnik Mayor Marko Funkl added that the municipality would establish this month an energy cooperative for the “transition from brown to green” that would build the largest cooperative solar power plant in the country.

The 300 KW array will be installed on the roof of a local primary school, Funkl said, adding that “energy is returning to the Zasavje region in green form.”

Source: Total Slovenia New

Europe Day

Foto-ilustracija: Pixabay
Photo-illustration: Pixabay (Webmicha)

Europe Day commemorates the signing of the “Schuman Declaration” on 9 May 1950. An ambitious plan to secure long-term peace in post-war Europe that is considered the beginning of what is now the European Union. The importance of working for peace in Europe is all the more evident, as we highlight our unity and solidarity with Ukraine.

The Schuman Declaration was presented by French foreign minister Robert Schuman on 9 May 1950. It proposed the creation of a European Coal and Steel Community, whose members would pool coal and steel production.

The ECSC (founding members: France, West Germany, Italy, the Netherlands, Belgium and Luxembourg) was the first of a series of supranational European institutions that would ultimately become today’s “European Union”.

Historical context

In 1950, the nations of Europe were still struggling to overcome the devastation wrought by World War II, which had ended 5 years earlier.

Determined to prevent another such terrible war, European governments concluded that pooling coal and steel production would – in the words of the Declaration – make war between historic rivals France and Germany “not merely unthinkable, but materially impossible”.

It was thought – correctly – that merging of economic interests would help raise standards of living and be the first step towards a more united Europe. Membership of the ECSC was open to other countries.

This May the EU institutions invite you to a wide range of online and on-site activities across the EU Member States, as well as in the home of the EU institutions in Brussels, Luxembourg and Strasbourg. As the 2022 European Year of Youth shines a spotlight on Europe’s young people and with citizens’ voices amplified by the Conference on the Future of Europe there’s never been a better time to come together, discuss the challenges we all face and create a better future for Europe that works for everyone.

Explore what’s on offer online and in person this Europe Day! Check out factsheet for highlights of what’s happening across the EU.

Source: European Union

The Untapped Potential of Bio-Waste in Europe

Photo-illustration: Pixabay
Photo-illustration: Pixabay

The collection and recycling of bio-waste is key in the development of a sustainable society. After all, we’ll always produce some sort of organic waste, such as food or garden waste. When dumped in landfills, this type of waste decomposes and causes the production of methane, a potent greenhouse gas. However, only 16 percent of the EU’s food waste is currently collected and recycled into a useful product, like organic fertilizer.

Let’s explore the potential of increased collection and recycling of organic waste, and why and how proper management of bio-waste streams can greatly contribute to a circular economy.

What is bio-waste?

The majority of bio-waste generated by households and restaurants consists of organic materials that produce carbon dioxide, water, methane, or other organic molecules. Examples of organic waste include food waste and garden waste.

Food waste can occur for a lot of reasons: bad weather, processing problems, and overproduction can lead to losses before it even makes it to the supermarket, while overbuying, bad planning, overpackaging, and unclear information about what you can and can’t recycle can all contribute to food waste in stores, restaurants, and households. Garden waste refers to plant matter from gardening activities, such as cutting the lawn and removing weeds.

How to recycle bio-waste?

When landfilled, food waste and green waste attract microorganisms, kickstarting the decomposition process. This process generates methane, a powerful greenhouse gas. To mitigate these emissions and those from incinerating waste, one of the most important first steps is to separate it from other waste streams.

By separating organic waste, we can reduce unnecessary landfilling and incineration, allowing it to be recycled through composting or anaerobic digestion. In some parts of Europe, such as in the highly populated city of Milan, a large percentage of food waste from households and restaurants is already effectively separated, either by separate curbside collection or by waste sorting after collection. Once collected, the biodegradable waste is taken to a local authority municipal waste site or a specialist waste management facility to be turned into fertilizer or biogas

When managed properly, bio-waste can be turned into nutrient-rich fertilizer, for which there is an ever-increasing market. Besides, it is possible to turn the natural gases that are formed during the fermentation of bio-waste into biogas. This is a renewable fuel that can be used to generate energy and heat.

The benefits of recycling bio-waste

Increasing the efficient recycling of food waste and garden waste makes an enormous difference in climate protection. Recycling bio-waste contributes significantly to circular economy objectives, such as:

Reducing the amount of waste sent to landfills and incinerators

The lack of oxygen in landfills results in the anaerobic decomposition of organic waste, which produces methane. Methane is a 20 times more potent greenhouse gas than carbon dioxide when released into the atmosphere. Recycling organic materials reduces greenhouse gas emissions while conserving natural resources.

Likewise, when waste is incinerated, almost all of it emits carbon dioxide. A large part of the waste to fuel waste-to-energy plants is biomass, such as food waste and paper. It is often claimed that biomass is carbon-neutral. The truth is, however, that this practice emits harmful greenhouse gases just as any other fossil fuel.

Producing organic fertilizers and energy

Besides avoiding greenhouse gas emissions from landfilling and incineration, another major benefit of proper bio-waste management would be the production of high-quality compost and biogas. This can contribute to better soil quality and resource efficiency, as well as increased energy self-sufficiency.

Good quality compost can be used for a wide range of different applications, including agriculture and local parks. Some local authorities even provide this for a low charge, or even for free.

Photo-illustration: Pixabay

Creating jobs and contributing to local economies

Bio-waste management has considerable potential for expansion, which will have a positive impact on the job market. This is particularly relevant in areas of high unemployment, like in rural areas and areas where collection and recycling rates are currently low.

Increasing recycling rates of other waste streams

Separating bio-waste from residual waste in the collection stage enables increased recycling rates of other waste materials. Recyclables like plastics, glass, paper, and metals are not contaminated as much by food scraps, making them of higher quality, easier to recycle and retain more value when recycled.

Using the full potential of bio-waste

Of course, it isn’t possible to capture and recycle 100 percent of all organic waste. There will always be a margin that might be accidentally sorted wrongly (for example, food still attached to packaging). While this can be addressed with good communication, additional drop-off sites, and even promoting home composting, shortfalls must be accepted to some extent.

By taking into account the percentage of the population living in cities, suburbs and rural areas, current recycling and capture rates, and existing well-functioning schemes, a realistic target for separately collecting bio-waste can be set at 85 percent.

The current recycling rate of bio-waste in Europe is still a long way off. However, the potential is there, and it is up to governments and municipalities to scale their efforts in the near future. After all, the EU’s deadline to make biowaste collection mandatory for all member states by the end of 2023, is quickly approaching.

A bio-waste success story: Milan

Milan provides an excellent example of how residential food waste can be collected. With a population of nearly two million people, Milan is the second-largest city in Italy. After implementing a comprehensive program for separate food waste collection, it is one of the best examples of separate waste collection in European big cities. In 2019, 110 kg of food waste was collected per person, compared to an average of 18 kg in the rest of the EU.

The story of Milan shows that other cities across Europe can follow in its footsteps, even under challenging conditions, as the EU deadline for collecting biowaste separately approaches soon. It illustrates both the possibility of a high collection rate in densely populated cities with a well-designed waste management plan and the benefits of focusing on food waste within the waste management system as a whole.

This article is based on the report ‘Bio-waste generation in the EU: Current capture levels and future potential’ by Zero Waste Europe.

Source: Mission Zero Academy

Luxor Solar Secures the Joint Forces for Solar Global Seals in 5 Regions

Photo: Promo
Photo: Promo

Luxor Solar secures the joint forces seals for Solar Global in Bosnia and Herzegovina, Greece, North Macedonia, Serbia and Slovenia.

According to the results of the EUPD research analysis in Bosnia and Herzegovina, Greece, North Macedonia, Serbia and Slovenia, LUXOR Solar was awarded the Joint Forces seals for Solar Global as a TOP PV BRAND in the field of solar modules.

The certificates confirm that the company based in Stuttgart has made an outstanding contribution to local market development in these regions.

“We are very proud of this award because we focus consistently on the needs of our customers in all markets. The fact that we have received the Joint Forces seal for Solar Global 2022 in five regions, shows that we are on the right track with our measures and products. For us, these awards are a confirmation as well as an incentive”, says Volker Leh, Managing Director of Luxor Solar.

The Joint Forces seal for Solar Global recognizes the best players throughout the entire value chain for their outstanding contribution to the development of the PV sector at both national and regional levels. All candidates are identified based on an evaluation model derived from years of research and expertise, taking into account quantitative and qualitative factors, company profile and industry recommendations.

Source: Luxor Solar

EBRD Supports Critical Infrastructure in Zagreb with EUR 50 million Loan

Foto-ilustracija: Pixabay
Foto-ilustracija: Unsplash (Kristijan Arsov)

The European Bank for Reconstruction and Development (EBRD) is providing a EUR 50 million loan to the City of Zagreb, the capital of Croatia and its largest city, to support its vital public utilities, including water and transport.

The EBRD’s loan will be on-lent as working capital to two critical infrastructure providers: Zagrebacki Holding (ZGH), the municipal holding entity responsible for water supply and wastewater collection, waste management, management and maintenance of public areas and public roads in the city; and Zagrebacki elektricni tramvaj (ZET), the public transport provider in Zagreb and surrounding towns.

This support will meet the liquidity and working capital needs of these critical infrastructure providers, and compensate for temporary revenue losses due to the Covid-19 crisis and the earthquakes that hit the Zagreb area in 2020, causing an estimated EUR 11 billion in damages.

The EBRD Director for Croatia, Victoria Zinchuk, said: “The Bank is very pleased to sign this agreement with Croatia’s capital and to help its further recovery. The EBRD has extensive experience in working with municipal enterprises, both to finance specific projects and to help them improve financial and organisational management, so we hope to continue this cooperation.”

The Mayor of Zagreb, Tomislav Tomasevic, added: “The city of Zagreb welcomes this much-needed financial support and hopes to develop a comprehensive programme of cooperation with the EBRD. We not only want to develop a greener, cleaner Zagreb, but also aim to reform municipal utilities providers, and count on EBRD support in this.”

In the previous project with Zagreb in 2016, the EBRD invested EUR 5.9 million equivalent in local currency into the bonds issued by ZGH, which were fully guaranteed by the City of Zagreb.

Croatia is a key investment destination for the EBRD, where the Bank has invested EUR 4.2 billion to date.

The EBRD finances projects in infrastructure, energy efficiency and security, agriculture and industry, as well those that support smaller businesses. The investments are combined with support for policies that promote a more enabling business environment.

Source: EBRD

Kick-off Ceremony Held for Realization of Alexandroupolis FSRU in Greece

Foto: Blackwood Communications
Photo: Blackwood Communications

The kick-off ceremony for the realization of Gastrade SA’s LNG FSRU facility in Alexandroupolis, Greece, was held on Tuesday, May 3, 2022, in the old Storage House of the Alexandroupolis Port Customs.

Once delivered, the FSRU, with a capacity of 153,500 c.m. of LNG, will be moored in the offshore area 17.6 km southwest of the port of Alexandroupolis. It will be connected to the National Natural Gas Transmission System (NNGΤS) of Greece with a 28 km long pipeline, through which the gasified LNG will be transmitted to the markets of Greece, Bulgaria, and the wider region including Romania, Serbia, North Macedonia etc., with the prospect of supplying Ukraine, as well.

The construction and operation of the Alexandroupolis FSRU, Gastrade said, is expected to strengthen the strategic role of Greece as an energy hub for the wider region of Southeastern Europe and offer alternative sources and gas supply routes to the region, improving the energy security of supply and energy autonomy, during challenging times. 

According to Gastrade, the project will also make Alexandroupolis an energy gateway for the entire region of Southeastern Europe, highlighting the strategic importance of the city and stimulating the local economy and employment.

The Alexandroupolis FSRU is expected to become operational by the end of 2023, with the contracted regasification capacity reaching already up to 60 percent of its technical capacity of 5.5 billion c.m. per year. 

Gastrade has also submitted to the Regulatory Authority for Energy (RAE) an application for a new Independent Natural Gas System (INGS) License, for the project “Thrace INGS”, which will also consist of a Floating Storage and Regasification Unit (FSRU) and will be developed near the first FSRU at the Sea of Thrace, offshore Alexandroupolis.

 The Founding Shareholder and Chairwoman of the Board of Directors of Gastrade,  Elmina Copelouzou said: “The energy map is changing. We are now entering the final stage of implementation of the FSRU Alexandroupolis, an important and innovative project for Greece. In a period of high volatility in the geopolitical and energy landscape, with this project, Greece shows Europe that it can respond with firm strategic steps to the uncertainty of the times and, through growth, and offer solutions from which everyone can benefit. 

“FSRU Alexandroupolis opens a new energy gateway for Greece and Southeastern Europe, which at a critical moment comes to meet an urgent national and European need. From the acritic city of Alexandroupolis that has embraced this project so much, we make Greece an energy reference point in the region, contributing to energy security and the diversification of supply sources, with benefits for millions of citizens in many different countries.”

At the kickoff ceremony, the Prime Minister of Greece, Kyriakos Mitsotakis, and the Prime Minister of Bulgaria, Kiril Petkov, co-signed the special symbolic plaque for the start of the realization of the project.

The event was also attended and addressed by the President of the European Council, Charles Michel, the President of Serbia, Aleksandar Vučić, the Prime Minister of North Macedonia, Dimitar Kovačevski, the US Ambassador, Geoffrey Pyatt, as well as representatives of the local government, including the Regional Governor of Eastern Macedonia and Thrace, Christos Meteos, and the Mayor of Alexandroupolis, Giannis Zampoukis.

The shareholders of Gastrade SA also participated, namely the Founding Shareholder and Chairwoman of the Board of Directors of Gastrade, Elmina Copelouzou, the CEO of Gaslog Cyprus Investments Ltd,  Paolo Enoizi, the Chairman of DEPA Commercial,  Ioannis Papadopoulos and the CEO of the company, Konstantinos Xifaras, the CEO of Bulgartransgaz EAD, Vladimir Malinov, and the CEO of DESFA,  Maria Rita Galli.

The Founding Shareholder and Chairwoman of the Board of Directors of Gastrade, Ms. Elmina Copelouzou noted: “The energy map is changing. We are now entering the final stage of implementation of the FSRU Alexandroupolis, an important and innovative project for Greece. In a period of high volatility in the geopolitical and energy landscape, with this project, Greece shows Europe that it can respond with firm strategic steps to the uncertainty of the times and, through growth, and offer solutions from which everyone can benefit. FSRU Alexandroupolis opens a new energy gateway for Greece and Southeastern Europe, which at a critical moment comes to meet an urgent national and European need. From the acritic city of Alexandroupolis that has embraced this project so much, we make Greece an energy reference point in the region, contributing to energy security and the diversification of supply sources, with benefits for millions of citizens in many different countries”.

The Vice President and CEO of Gastrade, Mr. Konstantinos Sifnaios, stressed that: “The strategic and economic necessity, but also the importance of the project of the LNG Station of Alexandroupolis is more than obvious in the new energy landscape. With this very important project that has brought together the countries living in this neighbourhood of Europe, promoting cooperation, solidarity and ultimately peace in the region, we are strengthening regional energy security, energy liquidity, security and the well-being of citizens throughout the region of SE Europe. We would like to thank our shareholders, who are the cornerstones of overall success, as well as a large network of organizations and people who contributed to the launch of the Alexandroupolis LNG Station and of course the central Government and personally the Prime Minister of the country for the unwavering and substantial support to the project. Alexandroupolis is the gateway and Bulgaria is the connecting link of the supply chain that this project comes to supply, on the way to Serbia and Romania. The second FSRU, which was licensed by RAE last Thursday, allows for the further extension of this chain to Moldova and Ukraine. With these two projects, we are contributing to the creation of a real regional energy hub in the region that will strengthen the economy, security and cooperation”.

From his side, the CEO of Gaslog Cyprus Investments Ltd, Mr. Paolo Enoizi, stated: “Everyone in GasLog is extremely proud for our participation in the Alexandroupolis FSRU project which is kicked-off today here in Alexandroupolis. Τhe tragedy currently unfolding in Ukraine has highlighted the importance of LNG not just as fuel that will enable the transition to a lower emissions world, but also as a critical element of many countries’ energy security plans. Such security is only delivered by a substantial investment in infrastructure, which nowadays comes at a cost and a delivery time that, in comparison, shows the foresight of the Gastrade founders, the Government of Greece and the various shareholders that had been planning for this investment well in advance. GasLog as a leading LNG shipping provider has contributed to the overall FSRU specification, its design and eventually its construction and will deliver the physical FSRU at Alexandroupolis anchorage by the end of 2023. GasLog‘s experienced teams onboard and ashore will manage safe and reliable operations of the unit for the years to come”.

The Chairman of DEPA Commercial S.A, Mr. Ioannis Papadopoulos, and the CEO, Mr. Konstantinos Xifaras, jointly stated that: “The Alexandroupolis LNG Terminal, being the largest energy project in Greece in recent years, is a strategic investment that will contribute decisively to the secure supply of natural gas for our country. It enhances Greece’s geopolitical position and role as an energy hub for the Southeastern Mediterranean, since this investment is being implemented at a time when the role of LNG in the natural gas market is already considerably amplified. DEPA Commercial’s involvement in the project, confirms its leading role in οur country, demonstrating in practice that it is the driving force behind energy developments in Greece and Southeastern Europe”.

The CEO of Bulgartransgaz EAD, Mr. Vladimir Malinov, noted: “The importance of the Alexandroupolis Independent Natural Gas System as a new energy gate is key to Southeast Europe. The terminal will provide the necessary additional quantities of natural gas, offering access to producers from around the world and connectivity with the appropriate supply routes to all interested users in the region. The level of booked capacity and the interest of traders and consumers prove both the strategic importance of the terminal and its economic efficiency. Thanks to the terminal, Bulgaria, Greece and neighbouring countries will be able to take full advantage of the growing LNG market and the security and competitive prices it provides. Access to alternative gas supplies, from the US, Qatar, Egypt and other countries, will ensure competitive gas prices for these countries. The implementation of the project will strengthen diversification of natural gas sources and will stimulate competition for the benefit of business and end users, while growing liquidity through access to LNG will accelerate the process of decarbonisation in the energy sector. I am glad that we are working together for the success of the project”.

The CEO of DESFA S.A, Mrs. Maria Rita Galli, stated: “The Alexandroupolis FSRU comes to establish Greece as a country with a leading role in regional energy developments, decisively strengthening, amidst a challenging international landscape, the energy security of Greece and the wider region. The interconnection of this strategically important project with the existing and the new export routes to Bulgaria and North Macedonia, through DESFA’s network, will allow for the increase of the country’s exports to the markets of Southeastern and Central Europe, further establishing Greece as an energy hub. DESFA contributes to this project with its leading expertise and its extensive know how on building and successfully operating a regassification terminal since more than 20 years, remaining committed to the development of high value-added energy infrastructure, that strengthen security of supply while

Source: Blackwood Communications 

The Infrastructure as the Biggest Challange

Foto: Eren Goldman
Photo: Courtesy of Milan Belin

In Serbia, during 2021, a total of 113 electric vehicles were sold, which has not affected the disturbing fact that more than 80 per cent of the total vehicle fleet consists of used cars older than ten years. The Government of Serbia has, once again, adopted the Decree on the conditions and manner of conducting a subsidized purchase of new electric and hybrid vehicles. We talked to Mr Milan Belin, the president of the Serbian Association of Vehicle and Spare Parts Importers, to find out if we are finally ready to embrace the changes or dismiss them because of what we are used to do.

EP: Sales of electric vehicles are globally on the rise year after year as part of the combating climate change strategy. How would you assess the traffic electrification process in Serbia so far? Why are Serbian citizens still having a hard time when faced with a decision to buy an electric vehicle (EV)?

Milan Belin: Electrification is a part of a very important strategy that brings global measures to reduce and prevent the greenhouse effects. As one of the big polluters, the automotive industry is adapting to changes, maybe even faster than we can accept. Electrification is related to infrastructural changes, and I primarily refer to the EV charger network, as well as raising awareness that these vehicles pollute less. In addition to electric, we have hybrid and plug-in hybrid vehicles that have transitional technologies since they do not depend on the charger network whatsoever. Let’s not forget to mention that electric vehicles are still a bit more expensive, but not so much more expensive than their diesel competitors. However, we also face great ignorance and distrust in new technologies, in addition to our infrastructure, which is still underdeveloped. Yes, the sales numbers are picking up, but those numbers are still small.

EP: How many electric vehicles were sold on our market last year and do you consider that number satisfactory? Also, have subsidies for the purchase of electric and hybrid cars given the desired results so far? How many of those who applied managed to get subsidies?

Milan Belin: The data show that in 2021, 113 electric vehicles were sold, of which 71 were passenger vehicles and 41 were light commercial vehicles. Compared to 2020, when 30 electric passenger vehicles were sold only, the increase is more than obvious. Additionally, hybrid models are also subsidized, and sales data show an increase of more than 100 per cent. The subsidies certainly encourage sales, but perhaps more importantly, raise awareness that the purchase of environmentally friendly vehicles has support and makes sense in the long run.

EP: What are the obstacles EV importers and distributors are faced with? How do you comment on the reports by the importers about the deficit in the vehicles supply and the declining stock?

Photo: Unsplash (Eren Goldman)

Milan Belin: The biggest challenge in the placement of electric vehicles for our importers is certainly infrastructure. By that, I mean the internal infrastructure of authorized dealers and service technicians, as well as the public network of chargers. The sale of electric vehicles requires serious investment and preparation in maintenance and charging infrastructure. With these conditions, we still cannot rely on sales, and it is impossible to estimate the return on investment. It is one of the reasons why even manufacturers do not put pressure on the importers here to introduce new electric models to this market. However, it will inevitably happen because most new models coming out are electric.

On the other hand, the vehicle deficit was caused by unforeseen circumstances caused by the pandemic. Due to closures in most countries, the slowdown in production has led to the cancellation of orders for parts intended for installation in vehicles. In particular, we are talking about microchips, or semiconductors, which are an essential part of the final product. It is estimated that any model today includes between 1,300 and 1,500 semiconductors on average. As microchips are being incorporated into almost all electronic products today, we have increased demand and insufficient production. Once the car production started to return to its course slowly, there was a shortage because suppliers negotiated the placement of their products with others. So, our situation is that the production is still slow, and it is not possible to make vehicle stock.

Interviewed by: Milica Marković

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY.