Aleksandar DurkovicAleksandar DurkovicProject DirectorProject Director

SERBIA ENERGY EFFICIENCY PROJECT

SEEP

EXPERIENCES OF ENERGY EFFICIENCY EXPERIENCES OF ENERGY EFFICIENCY PROJECT IN SERBIAPROJECT IN SERBIA

November, 2011

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Spread Across Serbia Spread Across Serbia

1st Phase – Original Financing• IDA Credit 3870 YF – 21 mil. USD

• Contributions of Serbia – 4 mil. USD

• Total facility: 25 mil. USD

• In total 28 buildings for 10 mil. USD +

CC Belgrade energy system rehabilitation for 15 mil. USD

2nd Phase - Additional Financing• IDA Credit 3870-1 YF – 10 mil. USD

• IBRD Loan 7466 YF – 18 mil. USD

• Contribution of Serbia – 2 mil. USD

• Total facility: 30 mil. USD

• In total 86 buildings for 23 mil. USD+

CC Nis new energy system erection for 7 mil. USD

Implementation Body:

Serbian Energy Efficiency Agency

Stakeholders’ StructureStakeholders’ Structure

Funding: WORLD BANK

Beneficiary: Government of

SerbiaCredits &

Loans

Coordination:Ministry for Infrastructure and Energy

Investors and Nominees:

Ministry of Health

Ministry of Education and

Science

Ministry of Labor and Social Policy

SavingsObjectives

Audits

Inpu

ts - F

inan

cingImplementation

Nominations

Defining the Project Objectives and Defining the Project Objectives and

ImplementationImplementation

SEEP Outputs &Outcomes

Objectives:• Making heating more

affordable by energy savings = cost reduction

• Improvement of the functional health

environment for the users• Reduce the local and

global environmental impact of the use of dirty fuels for heating buildings

in Serbia

2nd Phase Implementation

Component A:Clinical Center of Nis in Nis – 7

mil. USD Energy supply (30 MW) and

distribution (2 km + 20 substations) system erection 19 Buildings inside CCN complex - Energy Efficiency

rehabilitationComponent B:

17 hospitals+40 schools+10 social care institutions

throughout Serbia – 23 mil. USD Energy Efficiency retrofit

1st Phase Implementation

Component A:Clinical Center of Serbia in

Belgrade – 15 mil. USD Gas fired boiler house – 50 MW

New heat substations – 55 units

New distribution network – 3.5 km

CHP plant construction – 4 MW

Component B:12 Hospitals + 16 Schools

throughout Serbia – 10 mil. USD•Energy Efficiency retrofit

Objectives AchievedObjectives Achieved

Technical EnvironmentSocial Impact

Energy savings inaverage of 40%

Indoor comfort improved 35 - 50%Satisfaction raised significantly

Awareness raised

CO2 reduction in average of 42%Elimination of ash, soot and SO2

Nitrogen oxides reduced

Benefits Benefits

Line Ministries proved as reliable decision maker

Department focused and touch points to other immediate impact areas

Technical & Financial

Healthcare, learning and working conditions improved

Environmental concern

Corporate and Institutional Responsibility

Technical & Financial

Healthcare, learning and working conditions improved

Process of ImplementationProcess of Implementation

Structure of EE measuresStructure of EE measures

Simple Payback Period - SPPSimple Payback Period - SPP

SPP - Whole ProjectSPP - Whole Project

Towards Serbian National Energy BenchmarksTowards Serbian National Energy Benchmarks

Hospital in the Town of Knjazevac

Hospital in Knjazevac – Overview Hospital in Knjazevac – Overview

Benefit Sharing Scheme Benefit Sharing Scheme

The Role of Benefit Sharing Scheme The Role of Benefit Sharing Scheme

• Stimulates the rational behavior• Grants the retain of portion of savings by end users• Incentive for even more savings• Show Case – Best practice Example• Impact to other stakeholders within local self

government

ROLL FORWARD MODEL ROLL FORWARD MODEL (RE-INVESTMENT)(RE-INVESTMENT)

Outcome: •  The SAVING in energy costs (OPEX – savings in

operational expenditures) is used to • PAY BACK

• the CAPITAL INVESTMENT EXPENDITURES (Input = C – capex) of the PROJECT

• over a five to ten year period, or • Reinvested into the new building to allow for further

energy SAVINGS

Good Practice ExampleGood Practice ExampleLocal Self Government of Town of VrsacLocal Self Government of Town of Vrsac

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Re - InvestmentRe - InvestmentLSG VRSAC, Serbia Savings p/a Financial Savings ≈ €

p/a ES ULJMA 30% 10,000

SS AGRICULTURAL SCHOOL VRSAC 30% 10,000 2-5 SCHOOLS WITH PARTIAL RETROFIT 40% 30.000

TOTAL 100% 50.000

The portion of savings, acquired by LSG is used in two possible ways:

1. Implementing, i.e. financing own EE projects, or

2.Contracting the EE Services.

Influence on other Investors and InstitutionsInfluence on other Investors and Institutions

• Acceptation of standards re thermal properties of windows from 2.3 to 1.7 and now to 1.3 W/m²K

• Acceptation of standards re thickness of wall thermal insulation from 5 to 10 cm, and for roofs from 10 to 20cm

• Inclusion of the most of the EE measures in the green field building practice as well as renovations in Serbia

• Measurement of energy consumption and monitoring of savings in time re benchmarks

• Methodology for defining the most effective EE packages• Simple software for assessment of the measures and monitoring of

results re benchmarks• Driving other Bank’s EE investment in existing building stock

renovation (KfW loan for about EUR 10 million for schools energy retrofit and JICA for about EUR 8 million for schools and hospitals)

• Awaiting for P4R: new WB’s lending instrument – disbursement against results (possible help to establish revolving EE fund)

• Driving PPP and ESCO schemes in EE services in Serbia

Republic of Serbia

Ministry of Infrastructure and Energy

&

Energy Efficiency Agency

Aleksandar Durkovic

Project Director & Building Expert

aleksandar.durkovic@mre.gov.rs

aleksandar.durkovic@seea.gov.rswww.mre.gov.rswww.seea.gov.rs