IZGRADNJA POSTROJENJA I PROIZVODNJA ELEKTRINE/TOPLOTNE ENERGIJE IZ BIOMASE U REPUBLICI SRBIJI -VODI ZA INVESTITOREDr Branislava Lepoti Kovaevi, dipl.prav.Dr Dragoslava Stojiljkovi, dipl.ma.in.Bojan Lazarevi, dipl.el.in.

CONSTRUCTION OF PLANTS ANDELECTRICITY/HEAT GENERATION FROMBIOMASS IN THE REPUBLIC OF SERBIA - GUIDE FOR INVESTORSBranislava Lepoti Kovaevi, PhD LawDragoslava Stojiljkovi, PhD Mech. Eng.Bojan Lazarevi, BSc El. Eng

1 INTRODUCTION ...................................................................................................... 1

1.1 Definition of Biomass/Biogas Fuelled Power Plants .................................................... 2

1.2 Sources of Law ................................................................................................................ 3

2 BIOMASS/BIOGAS POWER PLANTS ..................................................................... 6

2.1 Types of Power Plants .................................................................................................... 6

2.2 Basic Data on Biomass/Biogas....................................................................................... 7

3 POWER PLANT CONSTRUCTION .......................................................................... 8

3.1 Sources of Law ................................................................................................................ 8

3.2 Procedure for Construction of a Power Plant ................................................................ 9

3.2.1 Selection of the Location, Perusal of Valid Planning Documents, and Information on Location .............................................................................................................. 10 3.2.2 Energy Permit .................................................................................................. 11 3.2.3 Requirements for Connection ........................................................................... 15 3.2.4 Location permit ............................................................................................... 16

3.2.4.1 Procedure for Issuing the Location Permit ................................................. 16

3.2.4.2 Forming the Building Plot ......................................................................... 18

3.2.4.3 Water requirements, water approval, and water permit ............................... 19

3.2.5 Environmental Impact Assessment ................................................................... 23 3.2.6 Technical Documentation ................................................................................ 28 3.2.7 Construction permit ......................................................................................... 33 3.2.8 Construction of a Structure and Technical Inspection of the Structure .............. 34 3.2.9 Operating Permit ............................................................................................. 36

4 ACQUIRING THE RIGHT TO ENGAGE IN THE ACTIVITY OF ELECTRICITY

GENERATION ........................................................................................................... 37

4.1 Investing in a Public Company Generating Electricity .............................................. 38

4.2 Entrusting the Pursuit of Activities of Public Interest ................................................ 39

5 CONCESSIONS ....................................................................................................... 41

5.1 Concession Granting Procedure ................................................................................... 42

5.2 Concession Agreement ................................................................................................. 44

5.3 Obligation to Establish a Concessionary Enterprise ................................................... 45

5.4 Reassignment of Concession ........................................................................................ 46

6 ENERGY LICENCE................................................................................................. 46

7 CONNECTING THE POWER PLANT TO THE GRID ............................................ 47

7.1 Connecting the Power Plant to the Electricity Grid .................................................... 47

7.2 Connecting the Power Plant to the District Heating Network .................................... 50

8 OBTAINING THE STATUS OF A PRIVILEGED POWER PRODUCER AND

PERTAINING INCENTIVES ...................................................................................... 51

8.1 Obtaining the Status of a Privileged Power Producer ................................................. 51

8.2 Incentives for Power Producers in Biomass/Biogas Power Plants ............................ 54

9 CONCLUSION ........................................................................................................ 56

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CONSTRUCTION OF PLANTS AND ELECTRICITY/HEAT GENERATION FROM BIOMASS IN THE REPUBLIC OF SERBIA

- GUIDE FOR INVESTORS

1 INTRODUCTION

Renewable energy sources1 are sources of energy found in nature that are either fully or partially renewable including, in particular, the energy of watercourses, wind, non-accumulated solar energy, biomass, geothermal energy, biofuels, biogas, synthetic gas, landfill gas, gas from wastewater treatment plants as well as uncontaminated wastewater from the food-processing and timber and wood processing industries. Utilization of such sources contributes to a more efficient exploitation of the countrys own resources for power generation, reduction of greenhouse gases, reduction of import of fossil fuels, development of local industry, and job creation.

Within the meaning of fuel for generation of electricity and heat, which is considered as a renewable energy source, biomass1 denotes a biodegradable organic matter originating from agriculture, forestry and supporting industries and households, comprising the following: plants and parts of plants; fuel produced from plants and plant parts; plant residues and by-products originating from agriculture (straw, maize stalks, branches, stones/pits, and shells/peals); residues of animal origin (fecal matter) originating from agriculture; plant residues in forestry (logging residues); uncontaminated biodegradable residues in food-processing and timber and wood processing industries and separated biodegradable municipal waste fraction.

It should be pointed out that biomass1 does not include any of the fossil fuels, peat, paper or cardboard, textile, animal body parts, industrial waste2 except waste defined as biomass, municipal waste3, waste originating from municipal wastewater treatment plants, and commercial waste.

Biogas1 is the gas produced from biomass in anaerobic processes. Biogas can also be used for generation of electricity and heat. Biogas power plants4 are the power plants that use gas produced by fermenting agricultural waste (liquid manure and fecal matter from cattle and poultry farms), from biomass, from biomass residues derived from the primary processing of agricultural products that do not contain any hazardous substances, animal residues, and body-parts.

There are some terminological differences between the energy and the

environmental laws and regulations. The regulations in the energy field make a

1 The Decree on Requirements for Obtaining Privileged Electricity Producer Status

(Official Gazette of the RoS, No. 72/2009). 2 Waste is any substance or object classified as waste in the Q-List, which is disposed of or

is intended to be disposed of or is required to be disposed of by its owner in compliance with the provisions of the Law on Waste Management (Official Gazette of the RoS, No. 36/2009).

3 Municipal waste is the residential waste (household waste) as well as any other type of waste which is, due to its nature or composition, similar to household waste in compliance with the law governing waste management - the Law on Waste Management (Official Gazette of the RoS, No. 36/2009).

4 The Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/2009).

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distinction between the power plants using biomass5 and those using waste6. From the environmental regulations point of view7, certain types of biomass can be classified as waste. Therefore, the environmental regulations (the Law on Waste Management8 and the pertaining by-laws9) call for obtaining the necessary permits10 from the Ministry of Environment and Spatial Planning for specified types of biomass while, for other types, this is not a requirement. .

1.1 Definition of Biomass/Biogas Fuelled Power Plants The power plants fuelled with renewable energy sources that use

biomass/biogas as their fuel are energy facilities used for engagement in the activities of electricity and/or heat generation. There are different types of biomass/biogas power plants, depending on whether they generate electricity or heat or they simultaneously generate heat and power within a combined cycle. Likewise, there are various types of power plants depending on whether they use biomass or biogas or a combination of these fuels, in addition to some secondary fossil fuel.

Biomass/biogas power plants of a capacity of up to 10 MW are considered as small power plants within the meaning of the Energy Law.11,12

It should be pointed out that not all power plants that use biomass/biogas are considered as the plants using renewable energy sources, since biomass can also be used as a secondary fuel in other types of power plants. In terms of using

5 Power plants having installed capacities of up to 10 MW that utilize only biomass in their

production process, or biomass combined with a secondary fossil fuel, provided that the calorific value of the biomass used on annual level makes up at least 80% of the total primary fuel the Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/2009).

6 Power plants that generate electricity using renewable energy sources, except for biomass, provided that, in the generation process, the calorific value of the used renewable energy sources at annual level makes up at least 90% of the total primary fuel, and provided that the secondary fuel used is a fossil fuel, biomass or waste - the Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/2009). For details, please see Chapter 2.1 hereof.

7 The Rulebook on Requirements for Collection, Transportation, Storage, and Treatment of Waste Used as Secondary Raw Material or for Energy Generation provides the definition of the waste used for energy generation. This is the waste that may be recycled, i.e. reused to generate energy therefrom, i.e. for utilization of biodegradable or heat-treated waste energy for electricity and/or combined heat-and-power generation (agricultural waste, municipal waste, tires, waste solvents, waste from refinery plants, biomass, sludge from sludge treatment plants, etc.). For details, please see Chapter 2.1 hereof.

8 The Law on Waste Management (Official Gazette of the RoS, No. 36/2009). 9 Further to the EU accession process, the Republic of Serbia should incorporate into its

own legislation the provisions of numerous EU Directives including, inter alia, those related to the waste management as stipulated in the Directive 2000/76/EC of the European Parliament and of the Council of 4 December 2000, on the incineration of waste. Article 2, paragraph 2, sub-paragraphs i), ii), iv) of this Directive stipulate which substances are not the subject of the above Directive.

10 Depending on the specific case, in order to use biomass that can be classified as waste in accordance with the environmental laws and regulations, it is necessary to obtain the following permits: the permit for waste collection, the permit for waste transportation, the permit for waste storage, the permit for waste treatment, and the permit for waste disposal (there is also a provision for obtaining an integrated permit).

11 The Energy Law (Official Gazette of the RoS, No. 84/04). 12 Further information on types of biomass power plants can be found in Chapter 2 hereof.

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the renewable energy sources, only the power plants that use biomass/biogas as their primary fuel can be classified as biomass/biogas power plants.

The activities of electricity, heat, or combined heat-and-power generation are the activities of public interest. There are specifically prescribed requirements for acquiring the right to engage in such activities.

Generation of electricity and/or heat using biomass/biogas is considered as energy generation using renewable energy sources for which the Republic of Serbia has prescribed certain incentives, and the power producers operating the power plants on renewable energy sources are considered to be privileged power producers, provided they meet certain requirements13.

1.2 Sources of Law 14

Construction of biomass/biogas power plants and engaging in the activities

of electricity and/or heat generation in such plants are regulated by numerous laws and regulations of the Republic of Serbia.

The sources of law of the Republic of Serbia referred to herein can be divided into two main groups of statutes and regulations, which will be detailed in further chapters hereof.

The first group of regulations includes those governing the area of construction of a concrete energy facility and the procedure for obtaining the Construction Permit for such a facility, as well as the method of determining the fitness of the facility for use and obtaining of the operating permit for the actual facility.

The second group of regulations includes those dealing with the acquiring of the right to engage in electricity and/or heat generation, since this is a two-step procedure: the first step is to acquire the right to engage in the activities of public interest, and the second one is to acquire the right to engage in an energy-related activity.

It should be emphasized that the Law on Concessions15 is the only statute of the Republic of Serbia, further to which one may simultaneously acquire the right to construct an energy facility and the right to engage in the activities of public interest.

Construction of biomass/biogas plants and engaging in activities of electricity generation in the Republic of Serbia are regulated under the following laws and regulations: the Law on Planning and Construction16, the Law on Spatial Plan of the Republic of Serbia17 and relevant Planning Documents18, the Energy Law, the Law on Ratification of the SEE Energy Community Treaty between the European Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic

13 More details on privileged power producers can be found in Chapter 8 hereof. 14 The sources of law referred to in this document were in force on August 27, 2010. 15 The Law on Concessions (Official Gazette of the RoS, No. 55/03). 16 The Law on Planning and Construction (Official Gazette of the RoS, Nos. 72/09 and

81/09). 17 The Law on Spatial Plan of the Republic of Serbia (Official Gazette of the RoS, No.

13/96). 18 Planning documents include spatial plans and urban plans. Spatial plans include: 1) The

Spatial Plan of the Republic of Serbia, 2) The Regional Spatial Plan; 3) Spatial Plans of Local Self-Government Units; 4) Spatial Plans of Special-use Areas. Urban plans include: 1) Urban Master Plan; 2) General Regulating Plans, 3) Detailed Regulating Plans.

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of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo, pursuant to the United Nations Security Council Resolution 124419, the Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other20, the Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters21, the Decree on Conditions of Electricity Delivery22, the Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements23, the Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation24, the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application and Procedure for Issuing Energy Permits25, the Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses for Engaging in Energy-related Activities26, the Energy Sector Development Strategy of the Republic of Serbia27, the Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015 for the Period from 2007-201228, the Law on Public Companies and Activities of Public Interest29, the Law on Public Utility Services30, the Law on Waters31, the Decree on Compensation for Water Use, Water Protection, and Compensation for Excavated Materials from Watercourses

19 The Law on Ratification of the SEE Energy Community Treaty between the European

Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo, pursuant to the United Nations Security Council Resolution 1244 (Official Gazette of the RoS, No. 62/06).

20 The Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other (Official Gazette of the RoS, No. 83/08).

21 The Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Official Gazette of the RoS, No. 38/09).

22 The Decree on Conditions of Electricity Delivery (Official Gazette of the RoS, No. 107/05).

23 The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements (Official Gazette of the RoS, No. 72/09).

24 The Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/09).

25 The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits (Official Gazette of the RoS, Nos. 23/06 and 113/08).

26 The Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses for Engaging in Energy-related Activities (Official Gazette of the RoS, Nos. 117/05, 40/06, and 44/06).

27 The Decision on the Energy Sector Development Strategy of the Republic of Serbia by 2015 (Official Gazette of the RoS, No. 44/05).

28 The Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015, for the Period from 2007-2012 (Official Gazette of the RoS, Nos. 17/07, 73/07, 99/09, and 27/10).

29 The Law on Public Companies and Activities of Public Interest (Official Gazette of the RoS, Nos. 25/00, 25/02, 107/05, and 108/05).

30 The Law on Public Utility Services (Official Gazette of the RoS, Nos. 16/97 and 42/98). 31 The Law on Waters (Official Gazette of the RoS, No. 30/10).

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for 201032, the Rulebook on Contents of Technical Documentation to Be Submitted in the Procedure for Obtaining the Water Approval and Water Permit33, the Law on Environmental Protection34, the Law on Strategic Environmental Impact Assessment35, the Law on Environmental Impact Assessment36, the Law on Integrated Pollution Prevention and Control37, the Law on Air Protection38, the Law on Waste Management39, the Law on Nature Protection40, the Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required41, the Decree on Types of Plants and Activities Eligible for Issuance of Integrated Permits42, the Rulebook on Contents of the Application for Decision on the Need for Environmental Impact Assessment (EIA) Study and Scope and Contents of EIA Study43, the Rulebook on Contents of Environmental Impact Assessment Study44, the Criteria and Standards for Determining Energy License Fees for Engaging in Energy-related Activities45, including the Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 201046, the Rulebook on Contents of Information on Location and Contents of Location Permit47, the Rulebook on Contents and Procedure for Issuing Construction permits48, the Rulebook on Contents and Method of Carrying Out Technical Inspection of Structures and the Procedure for

32 The Decree on Compensation for Water Use, Water Protection, and Compensation for

Excavated Materials from Watercourses for 2010 (Official Gazette of the RoS, No. 17/10). 33 The Rulebook on Contents of Technical Documentation to Be Submitted in the

Procedure for Obtaining Water Approval and Water Permit (Official Gazette of the RoS, No. 3/78).

34 The Law on Environmental Protection (Official Gazette of the RoS, Nos. 135/04 and 36/09).

35 The Law on Strategic Environmental Impact Assessment (Official Gazette of the RoS, No. 135/04).

36 The Law on Environmental Impact Assessment (Official Gazette of the RoS, Nos. 135/04 and 36/09).

37 The Law on Integrated Pollution Prevention and Control (Official Gazette of the RoS, No. 135/04).

38 The Law on Air Protection (Official Gazette of the RoS, No. 36/2009). 39 The Law on Waste Management (Official Gazette of the RoS, No. 36/09). 40 The Law on Nature Protection (Official Gazette of the RoS, No. 36/09). 41 The Decree on the List of Projects for which Environmental Impact Assessment (EIA)

Study is Mandatory and the List of Projects for which EIA Study May Be Required (Official Gazette of the RoS, No. 114/08).

42 The Decree on Types of Plants and Activities Eligible for Issuance of Integrated Permits (Official Gazette of the RoS, No. 84/05).

43 The Rulebook on Contents of the Application for Decision on the Need for an Environmental Impact Assessment (EIA) Study and Scope and Contents of EIA Study (Official Gazette of the RoS, No. 69/05).

44 The Rulebook on Contents of Environmental Impact Assessment Study (Official Gazette of the RoS, No. 69/05).

45 The Criteria and Standards for Setting Energy License Fees for Engaging in Energy-related Activities (Official Gazette of the RoS, Nos. 14/06, 40/06,126/07, and 120/08).

46 The Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 2010 (Official Gazette of the RoS, No. 109/09).

47 The Rulebook on Contents of Information on Location and Contents of Location Permit (Official Gazette of the RoS, No. 3/10).

48 The Rulebook on Contents and Procedure for Issuing Construction permits (Official Gazette of the RoS, No. 26/10).

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Issuing Operating Permit49, the Rulebook on Contents, Scope, and Manner of Producing Pre-Feasibility and Feasibility Studies for Construction of Structures50, the Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge, and Planner-in-charge51, the Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of Requirements for Issuance or Revoking the License for Preparation of Technical Documentation and License for Construction of Structures, for which the approval for construction is issued by the Ministry or by the Autonomous Province52, the Rulebook on Scope and Method of Doing Review of Main Designs53.

2 BIOMASS/BIOGAS POWER PLANTS

2.1 Types of Power Plants The biomass/biogas power plants are the facilities for generation of

electricity, heat or combined heat-and-power, consisting of one or more production units. Combined heat-and-power generation represents simultaneous generation of both electricity and heat. Power plants can be based on various technologies, including: different types of boilers, internal combustion engines, and plants with gas turbines.

Further to the prevailing regulations, power plants can be classified according to several criteria, in view of the following laws and regulations:

- The Energy Law, - The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits,

- The Law on Planning and Construction, - The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements,

- The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required.

The Energy Law defines power plants as follows: 1) Large power plants, and 2) Small power plants. Small power plants have a capacity of up to 10 MW while large power plants have or exceed the capacity of 10 MW.

49 The Rulebook on Contents and Method of Carrying Out Technical Inspection of

Structures and the Procedure for Issuing Operating Permit (Official Gazette of the RoS, No. 111/03).

50 The Rulebook on Contents, Scope, and Manner of Producing Pre-Feasibility and Feasibility Studies for Construction of Structures (Official Gazette of the RoS, No. 80/05).

51 The Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge, and Planner-in-charge (Official Gazette of the RoS, Nos. 116/04, 69/06).

52 The Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of Requirements for Issuance or Revoking the License for Preparation of Technical Documentation and License for Construction of Structures, for which the approval for construction is issued by the Ministry or by the Autonomous Province (Official Gazette of the RoS, No. 114/2004).

53 The Rulebook on Scope and Method of Doing Review of the Main Designs (Official Gazette of the RoS, No. 36/98).

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The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits stipulates the following electricity/heat generating facilities:

1) Facilities for electricity generation of a rated capacity from 1 MW to 10 MW,

2) Facilities for electricity generation of a rated capacity that exceeds 10 MW,

3) Facilities for heat generation having an installed capacity in excess of 1 MW.

The Law on Planning and Construction specifies the authorities in charge of issuing the Construction Permits, as follows:

1) For the power plants generating electricity/heat using renewable sources of energy and having or exceeding the capacity of 10 MW, as well as for combined heat-and-power plants, the Construction Permits shall be issued by the Ministry in charge of civil engineering affairs, or by the Autonomous Province, respectively,

2) The power plants of a capacity below 10 MW shall be within the remit of local selfgovernment bodies.

The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements defines the power plants eligible to obtain the status of a privileged power producer, specifically:

1) Power plants utilizing only biomass in their production processes, or biomass combined with a secondary fossil fuel or waste, provided that the calorific value of the biomass used on annual level makes up at least 80% of the total primary fuel,

2) Combined heat-and-power plants using fossil fuels or fossil fuels combined with a renewable energy source or waste, provided their total annual efficiency levels exceed the corresponding values of the minimum total annual efficiency levels of a combined heat-and-power plant stipulated in this Decree.

The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required makes a distinction between the following plants:

1) Plants having or exceeding the capacity of 50 MW (List I) for which the Environmental Impact Assessment Study is mandatory, and

2) Plants having a capacity from 1 to 50 MW (List II) for which EIA Study may be required.

2.2 Basic Data on Biomass/Biogas When handing down a decision on construction of a biomass/biogas

power plant, the available quantities of biomass or of the raw materials for production of biogas must be analyzed in detail. The available quantities of biomass or of the raw materials for biogas production have to be considered on a long-term basis, specifically taking into account acceptable and competitive prices. At the same time, it is necessary to study the characteristics of biomass or of the raw materials for biogas production and feasibility of their transportation from the point of origination to the biomass/biogas power plant.

The Feasibility Study analyzes, in particular, the spatial, environmental, social, financial, market, and cost-effective aspects of the investment for the opted

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solution, elaborated in the preliminary design that serves as a basis for making the decision on feasibility of the investment and initiating the procedure for issuing the Construction Permit.

3 POWER PLANT CONSTRUCTION 3.1 Sources of Law Regulations on construction of power plants using renewable sources of

energy, which use biomass/biogas as fuel, can be classified in three main groups: the regulations governing the area of planning and construction of facilities, the regulations governing the area of environmental protection, and the regulations governing the area of the energy sector.

The group of the regulations governing the area of planning and construction of facilities includes: the Law on Planning and Construction, the Law on Spatial Plan of the Republic of Serbia, the Rulebook on Contents of Information on Location and Contents of Location Permit, the Rulebook on Contents and Procedure of Issuing Construction permits, the Rulebook on Contents and Method of Carrying Out Technical Inspection of Structures and Issuing Operating Permit, the Rulebook on Contents, Scope, and Method of Preparing the Preliminary Feasibility Study and Feasibility Study for Construction of Structures.

Spatial plans (regional spatial plans, spatial plans of the units of local self-government, and spatial plans of areas for special use) and urban development plans (the urban master plan, general regulating plan, detailed regulating plan) are planning documents. The regulations governing the area of construction prescribe the procedure for obtaining the location permit, the Construction Permit, and the operating permit while planning documents define the objectives of spatial planning and development, i.e. of spatial development, i.e. whether it has been planned to construct a certain structure at a certain place in the Republic of Serbia within a certain time period. The necessary element in order to obtain the above permits is obtaining the technical requirements for connection to the electricity grid or to a district heating network, as well as the water requirements, the water approval and, in certain cases, the water permit as well, which are issued in the procedure stipulated in the Law on Waters and the regulations adopted under this Law.

The group of regulations governing the area of environmental protection includes: the Law on Environmental Protection, the Law on Waters, the Law on Forests, the Law on Environmental Impact Assessment, the Law on Integrated Pollution Prevention and Control, the Law on Air Protection, executive regulations adopted under the above laws, as well as other regulations governing environmental protection as well as protection and use of natural assets.

The group of regulations governing the area of the energy sector includes: the Energy Law, executive regulations under this Law, the Energy Sector Development Strategy of the Republic of Serbia, and the Program of Implementation of the Energy Sector Development Strategy of the Republic of Serbia, and other above specified regulations related to the issuing of the energy license, connection of a structure to the grid and the like.

The Energy Law stipulates that energy facilities may be constructed if the Minister of Mining and Energy issues the energy permit to the applicant. The

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procedure for obtaining the energy permit is regulated by the Rulebook on Criteria for Issuing of Energy Permits, Contents of the Application, and Procedure of Issuing Energy Permits. It also stipulates that the energy permit shall be issued in compliance with the Energy Sector Development Strategy of the Republic of Serbia and with the Program of Implementation of the Energy Sector Development Strategy of the Republic of Serbia, which regulates the requirements and the place where a concrete energy facility should be constructed. The procedure for obtaining the energy permit precedes the procedure for obtaining the Construction Permit for a concrete facility, which is regulated by a group of regulations on planning and construction.

The procedures that are related to the obtaining of the energy permit, the location permit, the Construction Permit, the operating permit, the license for engaging in the activity, connection to the electricity grid or to a district heating network, and other procedures necessary to obtain the ancillary documentation are administrative procedures, and the deadlines for obtaining such decisions are specified in the actual regulation governing the procedure for obtaining an administrative decision necessary for construction of a biomass/biogas power plant or for engaging in the activities of electricity and/or heat generation. In case such deadlines are not specified in the concrete regulations, the Law on General Administrative Procedure shall be applied on the deadline for issuing the concrete administrative decision.5455

3.2 Procedure for Construction of a Power Plant In order to construct and utilize any structure in the Republic of Serbia, and

even the structure of a biomass/biogas power plant, it is necessary to meet the following requirements: 1) To obtain the energy permit; 2) To obtain the location permit; 3) To obtain the Construction Permit; 4) To construct the structure, and 5) To ensure the technical inspection of the structure and to obtain the operating permit.

Construction of facilities in the Republic of Serbia, formally, starts with the obtaining of the Construction Permit, and it is carried out on the basis of the Construction Permit and the technical documentation, under the conditions and in the manner stipulated in the Law on Planning and Construction.

The following shall be attached to the application for the Construction Permit: 1) The location permit; 2) The energy permit, which is necessary for construction of energy facilities, which include biomass/biogas power plants of a capacity exceeding 1 MW; and 3) The main design.

Within the procedure for obtaining the location permit from the competent authorities and organizations, it is necessary to obtain the water requirements,

54 The Law on General Administrative Procedure (Official Herald of RoS, Nos. 33/97 and 31/01).

55 Article 208 of the Law on General Administrative Procedure stipulates that the deadline for issuing of a decision by the competent administrative authority shall be 30 days, if it is not necessary to follow a special examining procedure, or maximum 60 days as of the date of a duly submitted application. General deadline for an appeal shall be 15 days as of the date of receipt of the first-instance decision, unless the law stipulates otherwise. Article 236 of the Law on General Administrative Procedure stipulates that, in case the administrative authority fails to issue the administrative decision for which the application has been submitted, upon the expiry of the deadline for handing down the decision, the applicant shall be entitled to lodge an appeal because the first-instance application has not been decided on.

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electric power and technical requirements for connection to the electricity grid, requirements for connection to the public utility infrastructure, etc.

In order to obtain an energy permit, it is necessary to obtain the Information on Location.

In any event, the procedure for obtaining the Energy Permit must be completed prior to submitting the application for the location permit.

In the procedure for obtaining the Construction Permit, for biomass/biogas power plants of a capacity exceeding 1 MW, preparation of the Environmental Impact Assessment Study of the facility may be requested and, for capacities exceeding 50 MW, it is mandatory.

3.2.1 Selection of the Location, Perusal of Valid Planning Documents,

and Information on Location The first step of a potential investor, or of the person for whose

requirements the structure is constructed and to whom the Construction Permit for construction of a biomass/biogas power plant will be made out, is certainly selection of the location. This step must also be related to the analysis of the raw material potential (biomass or raw materials for production of biogas), which will be used for generation of electricity/heat in the biomass/biogas power plant.

The second step of the investor is verification as to whether the valid planning documents envisage construction of an energy facility on the selected location. One should bear in mind that power plants may also be constructed on agricultural land, with the previously obtained approval from the Ministry of Agriculture, Forestry and Water Management.

In the unit of local self-government, whose territory includes the selected location, one can get for perusal the valid planning document in which it is possible to check whether construction of energy facilities has been envisaged at that location. Then, the application for the information on the location shall be submitted for the desired location, for the purpose of obtaining the data on the possibilities and limitations with respect to the construction on the reviewed cadastral lot in line with the valid planning document.

The application for the Information on Location shall be submitted to the authority in charge of issuing the location permit. A copy of the lot(s) plan shall be submitted with the application for the information on the location, which has been previously applied for in the competent real estate cadastral service in the territory of the municipality. In parallel with the procurement of a copy of the plan, the recommendation is to also apply for a transcript of the list of title deeds for the subject cadastral lot(s) from the real estate cadastral service, in order to identify the owner(s) of the land.

The information on the location, in addition to the name of the applicant, the number of the cadastral lot, and the place where it is located, shall also contain56 the data on: 1) The planning document based on which it is issued; 2) The zone in which it is located; 3) The use of the land; 4) Regulation and building lines; 5) Codes of construction;

56 The Rulebook on Contents of Information on Location and on Contents of Location

Permit (Official Herald of RoS, No. 3/10).

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6) Requirements for connection to the infrastructure; 7) The need to prepare a detailed urban plan or urban design57; 8) The cadastral lot, or whether the cadastral lot fulfills the requirements for the building plot with the instructions on the required procedure for forming the building plot; 9) Engineering and geological conditions; 10) Special requirements for issuing the Location Permit (list of requirements). The information on the location shall enable the person, to whose name it is issued, to gather all the special requirements (requirements for protection of cultural monuments, requirements for preservation of the environment, etc.) and technical requirements (the place and method of service connections of the structure to the infrastructure lines, as well as their capacities) prior to the issuing of the location permit.

The information on the location shall be issued by the authority in charge of

issuing the location permit, within eight days as of the date of submitting the application, against remuneration of the actual costs of issuing such information.

3.2.2 Energy Permit58 An energy permit is a permit for construction of an energy facility. It is

necessary to point to the fact that the energy permit for a biomass/biogas power plant shall be issued provided that the construction of such a facility, by its type and use, is in compliance with the Energy Sector Development Strategy of the Republic of Serbia and with the Program of Implementation of that Strategy.

In order to obtain the energy permit, it is necessary to meet the criteria for construction of power generating facilities stipulated in the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for

57 An urban design shall be prepared for the formed building plot on the certified cadastral -

spatial plan. An urban design shall be prepared when that is envisaged in the urban development plan, the spatial plan of the unit of local self-government, or in the spatial plan of an area of special use and it shall contain: 1) The requirements for construction on the building plot including all the special requirements, 2) Conceptual designs, 3) The description, technical description, and explanation of the solution from the urban design, etc. The urban design may be prepared by a legal entity or by an entrepreneur registered in the registry for preparation of technical documentation, and the preparation of the design shall be managed by the town planner-in-charge, an architect. The competent authority of the unit of local self-government shall organize a public presentation within 7 days, and then the urban design shall be submitted to the Planning Commission, which shall, within 30 days, check whether the design has been harmonized with the spatial document and the Law on Planning and Construction. The competent authority of the unit of local self-government shall issue the certificate that the urban design has been prepared in compliance with the urban development plan, the spatial plan of the unit of local self-government, or with the spatial plan of an area of special use and the Law on Planning and Construction.

58 In addition to the energy license, the Energy Law stipulates the procedure for initiation of the public invitation for tenders. This procedure shall be initiated in case there is no application for the energy permit for construction of a future facility and the planned time schedule of construction of energy facilities cannot be ensured, and there is a need to ensure safety in supply of power. The Government shall decide on the initiation of the public invitation for tenders. The public invitation for tenders shall be announced by the Ministry of Mining and Energy, or by the unit of local self-government, according to the procedure regulating concessions.

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Issuing Energy Permits.59 The energy permit for construction of facilities for electricity generation shall be issued by the Ministry of Mining and Energy while, for construction of facilities for heat generation, it shall be issued by the unit of local self-government, or by the City of Belgrade, depending on whose territory the structure is going to be constructed. In case it is a biomass/biogas power plant, which generates both electricity and heat, the project owner shall have to submit two applications for the energy permits: to the Ministry of Mining and Energy the application for the energy license for electricity generation, and to the unit of local self-government, or to the City of Belgrade for construction of a heat generating facility.

For electricity generating power plants of a capacity below 1 MW and for heat generating power plants of a capacity below 1 MW, issuing of the energy permit has not been envisaged, which means that, for such facilities, the Construction Permit shall be issued, without following the procedure for issuing the energy permit.

The application for the energy permit, subject to the Energy Law, shall contain the data on: 1) The location at which the power plant is to be constructed; 2) The deadline for completion of construction; 3) Type and capacity and energy efficiency; 4) The energy commodities, which the energy facility will use; 5) The method of generation and takeover of electricity/heat; 6) The method of protection of the environment in the course of construction and operation; 7) The requirements that are related to the termination of operation; 8) The amount of planned financial resources for construction and the method of providing such resources.

The Rulebook on Criteria for Issuing Energy Permits, Contents of the

Application, and Procedure for Issuing Energy Permits specifies the Application Form for the energy permit, separately for construction of the energy facility for electricity generation, and separately for construction of an energy facility for heat generation. Depending on the capacity of a power plant, the application for the energy permit for construction of the energy facility for electricity generation shall be submitted, specifically: for rated capacities from 1 MW to 10 MW Form O-1, or for rated capacities of over 10 MW Form O-2. The application for the energy permit for construction of an energy facility for heat generation of a capacity exceeding 1 MW shall be submitted by filling in the Form O-10.

The following data shall be specified in the Application Form for the energy permit for construction of a power plant: 1) General data on the applicant (name, address, state, official registration number of the applicant, tax identification No., legal and organizational form, data on

59 The criteria for construction of electricity/heat generating facilities are as follows: 1)

Fulfillment of the requirements for safe and unobstructed functioning of the power system; 2) Fulfillment of the requirements for designation of the location and land use; 3) The requirements for environmental protection; 4) Requirements with respect to the measures for protection of the health of people and safety of people and property; 5) Requirements related to energy efficiency; 6) Requirements for the use of primary sources of energy.

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the management, data on registration, name of the contact person); 2) Basic data on the facility (name of the facility, the location of the land, technical data on the energy facility, share of the energy facility in system services, primary and secondary fuels); 3) The value of the investment (the amount of the planned financial resources and the method of their securing); 4) The financial position of the applicant (relevant statement of a bank that it is willing to support the applicant or the investor in financing the construction of the energy facility and evidence of adequate credit-worthiness of the applicant); 5) The envisaged economic and service life of the facility as well as the method of rehabilitation of the location upon termination of the service life of the facility (removal, disassembly of the facility); 6) Harmonization with the spatial plans and the concept of development of the energy sector (the excerpt from the urban development plan or the decision on urban development requirements if such a decision has been adopted or issued, the decision of the competent authority on the use of the land including the established measures of and requirements for protection of the environment if such a decision has been handed down, and the opinion of the electricity transmission or distribution system operator on the requirements for and possibilities of connection to the systems; 7) Feasibility study for construction of the energy facility. In case the energy facility is to be constructed in stages, which represent technical and technological entireties, the application shall contain the data on the planned stages of construction and the final deadline for completion of the work.

The Application Forms for the energy permit for construction of a power plant from 1 to 10 MW and of a power plant of a rated capacity of over 10 MW are almost identical, the only difference being that the Form for issuing the energy permit for construction of a power plant of a rated capacity exceeding 10 MW is more detailed with respect to the provision of basic data on the facility and definition of the share of the energy facility in system services. In case of such a facility, the applicant shall propose possible options for share in system services with respect to the regulation of active power, with respect to the regulation of reactive power, and the possibility of a share in the primary, secondary, and tertiary regulation.

The Application Form for the energy permit for construction of an energy facility for heat generation of a capacity exceeding 1 MW is almost identical to the Form for the energy permit for construction of a small power plant; it is even somewhat simplified in the part, which is

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related to the provision of the basic data on the facility technical data.

The investor shall submit the following with the application for the energy

permit: 1) The information on the location issued within a period of maximum one year; 2) The decision of the competent authority on the use of the land on which the energy facility is going to be constructed including the established measures and requirements for environmental protection (if such a decision has been handed down); 3) The feasibility study for construction of the energy facility for which the energy permit60 is applied for, which shall also specifically contain the study of possible impacts on the environment including the proposed measures for environmental protection61; 4) Relevant statement of a bank that it is willing to support the applicant or the investor in financing the construction of the energy facility, specifying the name and type of the energy facility to which the statement refers, the location of the energy facility, maximum capacity of the facility, and the amount of the investment in construction of the energy facility; 5) The opinion of the electricity and/or heat transmission or distribution system operator on requirements for and possibilities of connection of the new facility to the system.626364

60 The feasibility study for construction of the energy facility, for which the energy permit

is applied for, shall contain in particular: 1) Objectives of the investment including the basic data on the investor; 2) The analysis of current state - spatial location of the facility, its function, and importance in view of the type and capacity of the energy facility; 3) Market analysis the method of generation, procurement, takeover, and sale of electricity/heat and energy commodities; 4) Technical description of the plant and technological processes operating modes and the method of exploitation of the plant; 5) The analysis of energy efficiency of the facilities including the data on electricity/heat and energy commodities to be used; 6) The planned deadline for construction of the energy facility and service life of the energy facility; 7) The analysis of the procurement market; 8) The analysis and assessment of the selection of the location, analysis of possible impacts on the environment including the proposed measures of environmental protection, relationship with respect to natural, cultural, and historic assets, impact on climate, surface and ground waters, flora, fauna, and soil; 9) Financial analysis of the assessment including calculation of the required investments and sources of financing and obligations towards the sources; 10) Sensitivity analysis and analysis of the risk of the investment; 11) Analysis of the sources of financing and financial obligations (own funds, domestic sources, foreign and international sources, guarantees, and liabilities); 12) The analysis of the organizational and staff capacities (organization, staff potential); 13) Proposed measures concerning the requirements for and method of regulation of relationships in case of a temporary or permanent termination of operation, or exploitation of the energy facility; 14) Proposed measures to be undertaken for the purpose of protection of the energy facility and the proposed measures, which will define all the required parameters for possible restart of operation of the energy facility at a later stage. By its contents, this feasibility study is the closest to the Preliminary Feasibility Study including the general design.

61 The environmental impact assessment is described in more detail in Chapter 3.2.5 hereof. 62 The Energy Law, the Decree on Conditions of Electricity Delivery, the Distribution Grid

Code, and the Transmission Grid Code specify the procedure for connection of the producers facilities to the electricity grid. Neither the Decree, nor the Codes, or indeed any other regulations stipulate the procedure for issuing the opinion of the energy entity in charge of transmission, or of distribution of electricity within the procedure for issuing the energy license. In view of the above fact, this procedure does not have a specific form, but the economic operator, whose facility should be connected to the electricity grid, when preparing the application for such an opinion, should submit as many documents as possible, which are necessary for connection of the facility to the electricity grid or, if he/she does not have such documents, then at least as many data as possible, which the specified documents should contain. The application for connection to the electricity grid has been dealt with in Chapter 7 hereof.

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The energy permit shall be issued within thirty days from the date of submitting the application. The unsatisfied party may lodge an appeal against the decision on the energy permit within seven days from the date of receipt of the decision. The energy permit shall be issued for a period of two years and its validity may

be extended at the request of the holder.

3.2.3 Requirements for Connection Prior to issuing the location permit, it shall also be necessary to obtain the

requirements for connection to the electricity grid and to the heat distribution network. If the investor fails to obtain the above requirements on his/her own, the authority in charge of issuing the location permit shall obtain them ex officio prior to issuing the location permit.

Within the procedure for preparation of the urban development planning document, the location permit or of the main design for construction of the facility, at the request of the investor or of the competent authority, the energy entity to whose system the power producers facility is to be connected, shall issue the requirements for connection of the producers facility to the electricity grid. The requirements for connection shall define the possibility for connection of the producers facility to the electricity grid, or define the electric power and technical requirements needed for preparation of the main design for construction of the facility.

The procedure starts when the application is submitted for the requirements for connection.

The following shall be submitted with the

application: 1) Evidence of the payment of the expenses of issuing the required requirements for connection as per the pricelist; 2) Other documentation, which is specified by the energy entity in the application form for the requirements for connection.

63 Drafting of the Rulebook amending the Rulebook on Criteria for Issuing Energy Permits,

Contents of the Application, and Procedure for Issuing Energy Permits is under way, according to which some of the documents, which are required with the application for the energy permit, are amended. According to that draft, the following shall be submitted with the Application for the energy permit: 1) The Information on the Location or the location permit issued within a period of maximum one year (if issued), 2) The Preliminary Feasibility Study, 3) Relevant statement of a bank that is willing to support the applicant or the investor in financing the construction of the energy facility, 4) The opinion of the electricity transmission or distribution system operator on the requirements for and possibilities of connection of the new facility to the system.

64 Prior to the adoption of the new 2009 Law on Planning and Construction, there had been a discrepancy between the provisions of the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits and the provisions of the Law on Planning and Construction with respect to the priority in issuing the Except from urban development plan and issuing of the decision on urban development requirements and the energy permit. This discrepancy was avoided by deletion of the terms: the decision on urban development requirements and the excerpt from the urban development plan. Instead of them, the terms: the location permit and the information on the location were introduced.

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The technical report, based on the analysis made, shall establish whether there are electric power and technical conditions for possible future connection of the facility according to the submitted application.

Based on the technical report, the energy entity, to whose system the facility of the producer is to be connected, shall issue the decision on the requirements for connection to the investor in construction of the facility, or to the competent authority. The requirements for connection shall contain the definition of their validity period. An appeal may not be lodged against the decision on the requirements for connection (the decision on the requirements for connection does not contain the grounds for it or instructions on the legal remedy). The decision on the requirements for connection shall be issued within the deadline prescribed by the law65.

3.2.4 Location permit66 The Law on Planning and Construction prescribes that the location permit is

the document, which contains all the requirements and data needed for preparation of the technical documentation (the preliminary and the main design), in line with the valid planning document. The location permit is also a prerequisite for issuing the Construction Permit. Location permits for construction of power plants for electricity/heat generation from renewable energy sources of a capacity of 10 MW and over, as well as for combined heat-and-power plants and for power plants constructed in the protected environs of outstanding cultural assets, and of cultural assets registered in the Lists of the World Cultural and Natural Heritage and of facilities in protected areas in compliance with the decision on protection of cultural assets, as well as of facilities within the boundaries of a national park and of facilities within the boundaries of protection of a protected outstanding natural asset, shall be issued by the ministry in charge of civil engineering affairs, or by the Autonomous Province, and for all other power plants, by the competent authority of the unit of local self-government (city/town, municipality) in the territory of which the structure is going to be constructed.67

3.2.4.1 Procedure for Issuing the Location Permit The documentation necessary to obtain the location permit for construction

of a power plant is specified in the Law on Planning and Construction. The following shall be submitted as obligatory exhibits to the Application for the location permit: 1) A copy of the lot plan (issued within a period of maximum six

65 The deadline for issuing the requirements for connection is 30 days; more about this can

be found in the footnote No. 55 hereof. 66 Related to the obtaining of the documentation necessary for issuing the location permit

for power plants (of up to 10 MW) there are cases of overlapping of the required documentation (on the right to use the land, technical documentation,...) for issuing certain documents.

67 The structure of a power plant within the boundaries of a national park or within the boundaries of protection of a protected outstanding natural asset is within the competence of the Ministry of Environment and Spatial Planning.

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months); 2) The certificate of the cadastre of underground installations; 3) Evidence of the ownership right or of lease of the construction land68'69.

Apart from the above, the application for the location permit shall also contain the data on the structure to be constructed, particularly on the planned layout, type and use of the structure, technical characteristics and the like.70

The Law on Planning and Construction stipulates that the building plot shall be formed prior to submitting the application for the location permit.

If the authority in charge of issuing of the location permit establishes that adequate documentation has not been submitted with the application for the location permit, it shall notify the applicant thereof within eight days. In case the planning document does not contain all the requirements and data for preparation of the technical documentation, the competent authority shall obtain them ex officio, at the expense of the investor. The authorities, or organizations authorized to issue such requirements and data shall act further to the request of the competent authority within 30 days.

The competent authority shall issue the location permit within 15 days as of the date of a duly submitted application or of obtaining the requirements and data, which it shall obtain ex officio.

The location permit shall particularly contain71: 1) The name and family name of the investor including personal identification No., or business name or name of the investor including the seat and PIB; 2) The number and surface area of the cadastral lot; 3) The data on the existing facilities on the lot that need to be removed; 4) The defined access to a public traffic area; 5) The use of the structure; 6) Building lines; 7) Codes of construction; 8) Requirements for connection to roads, public utility, and other infrastructure; 9) Possible and mandatory stages in the project implementation; 10) List of mandatory parts of the main design; 11) The name of the planning document based on which it is issued; 12) The statement that the legally valid location permit is the basis for

68 This evidence for issuing of the location permit is exactly the same as for issuing the

Construction Permit. As evidence of the ownership right, or of lease of the construction land for construction or for carrying out of the work on the construction land or on the facility, which is owned by a number of persons a certified consent of such persons shall also be submitted.

69 When construction of line infrastructure facilities is in question, the decision of the competent authority establishing the public interest for expropriation, in compliance with a special law, or the servitude and right-of-way agreement with the owner of the servient estate, shall serve as the evidence of the ownership right for issuing the location permit.

70 In practice, for obtaining the location permit, the general design (conceptual design) is prepared and submitted, which contains: technical description of the location, architecture, the structure and foundation of the structure, the method of heating and cooling the structure, description of the technical solution for securing excavation of the foundation pit, the terrain and the adjacent facilities, etc.

71 The Rulebook on Contents of Information on Location and on Contents of Location Permit.

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preparation of the preliminary and of the main design if the structure referred to in Article 133 of the Law on Planning and Construction is in question, or for preparation of the main design; 13) The obligation of the designer-in-charge to prepare the design in compliance with the codes of construction and requirements from the location permit; 14) The statement that the issued location permit shall cease to be valid if the investor, within two years as of the date of the legal validity of the decision on the location permit, fails to submit the application for the Construction Permit.

An appeal may be lodged against the decision on the location permit, issued

by a unit of local self-government, within 8 days. An appeal against the decision on the location permit of a unit of local self-government shall be decided on by the ministry in charge of town planning affairs, or by the competent authority of the Autonomous Province, or by the competent authority of the City of Belgrade (for construction or reconstruction of facilities of up to 800 m of gross floor area), if the structure is to be located in the territory of the Autonomous Province, or of the City of Belgrade.

An administrative suit may be instituted by action against the decision on the location permit, which is issued by the ministry in charge of town planning affairs, or by the competent authority of the Autonomous Province.

3.2.4.2 Forming the Building Plot72 A building plot is a part of the construction land, with the access to a public

traffic area, which has been constructed or is envisaged for construction by a plan. For construction of power plants, the building plot represents a belt of land

of incomplete expropriation of a part of the cadastral lots through which the structure will stretch and of individual lots on which the appurtenant above-ground facilities are to be located. In addition to an incomplete or complete expropriation, servitude and right-of-way agreements concluded with the owners of the cadastral lots shall also be recognized as the evidence of the resolved property-rights relations for construction of line infrastructure facilities.

Power plants may also be constructed on agricultural land, with the previously obtained approval from the ministry in charge of agricultural affairs.

Prior to submitting the application for the location permit, the Allotment/Reallotment Plan, i.e. the plan forming the building plot shall be prepared. The reallotment plan implies the plan forming one or more building plots on a number of cadastral lots while the allotment plan implies the plan forming a number of building plots on a single cadastral lot.

72 Provisions of the Law on Planning and Construction, in this case, are not quite clear with

respect to the formation of the building plot for construction of a biomass/biogas power plant. Article 69, paragraph 1, prescribes that, for construction of electric power facilities or equipment, a building plot of a smaller area may be formed than the area envisaged in the planning document for the particular zone, provided there is an access to the facility, or equipment, for the purpose of maintenance and elimination of defects or accidents.

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The allotment or reallotment plan shall be drawn up by a company, or by another legal entity or by an entrepreneur, registered in the relevant registry. Drawing up of the allotment plan shall be managed by the town planner-in charge, an architect. The specified plan shall also contain the Design of Geodetic Survey Benchmarking. .

The allotment or reallotment plan shall be submitted to the authority in charge of town planning affairs of the unit of local self-government for verification. If the plan is in compliance with the valid planning document, the competent authority shall verify the plan within 10 days and, if not, it shall notify the party that has submitted the plan thereof. A complaint against the above notification may be submitted to the municipal or to the city/town council within 3 days as of the date of its submittal.

Thereafter, the Application for undertaking the allotment, or reallotment, shall be submitted to the Authority in charge of the affairs of state survey and cadastre (RGA the Republic Geodetic Authority).

The following shall be submitted with the application for undertaking the reallotment/allotment: 1) The evidence of resolved property-rights relations for all the cadastral lots, and 2) The reallotment or allotment plan verified by the authority in charge of town planning affairs of the unit of local self-government, an integral part of which shall also be the Design of Geodetic Survey Benchmarking. The authority in charge of the affairs of state survey and cadastre shall hand down the decision on forming of cadastral lot(s) further to the above application. An appeal may be lodged against this decision within 15 days as of the date of submitting of the decision.

For obtaining the location permit for the facilities of biomass/biogas power

plants, the Article of the Law on Planning and Construction may be applied, which regulates special cases of forming of a building plot. For construction of electric power facilities, a building plot may be formed of a smaller area than the area specified in the planning document, provided there is an access to the facility, or to equipment, for the purpose of maintenance and elimination of defects or accidents. An access easement agreement with the owner of the servient estate shall also be recognized as a resolved access to a public traffic area.

3.2.4.3 Water requirements, water approval, and water permit73 The Law on Waters differentiates between the general and special uses of

waters. The water requirements shall be issued within the procedure for preparation of the technical documentation for construction of new facilities, which may have a permanent or a temporary impact on the changes in the water regime, or which may threaten the objectives concerning the environment. The right to the special use of waters shall be acquired by the water permit.

73 Issuing of the water requirements, the water approval, and the water permit is regulated

by the Law on Waters.

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This Law defines the following water documents; 1) The water requirements, 2) The water approval, 3) The water permit, and 4) The water order. Water documents shall be issued by the ministry (the Ministry of Agriculture, Forestry and Water Management). If the structure is located in the territory of the Autonomous Province, then such documents shall be issued by the competent authority of the Autonomous Province and, if the structure is located in the territory of the City of Belgrade, such documents shall be issued by the competent authority of the City of Belgrade (the Water Administration). Water documents shall be issued within two months from the date of filing the application.

An appeal may be lodged against a water document issued by the competent authority of the Autonomous Province, or of the City of Belgrade, to the Minister of Agriculture, Forestry and Water Management, within 15 days. An administrative suit can be instituted against the decision of the Ministry of Agriculture, Forestry and Water Management.

The Law prescribes that, for the procedure for preparation of the technical documentation for construction of new and reconstruction of the existing facilities and for carrying out of other work, which may have impact on the changes in the water regime, the investor shall obtain the water requirements (specifying technical and other requirements that must be met). It also prescribes that, for the requirements of preparation of the technical documentation, it is necessary to obtain the water approval, which specifies that the technical documentation for the facilities and for the work has been prepared in compliance with the water requirements. The water permit, which shall be obtained once the structure has been constructed (the operating permit may be issued without having obtained the water permit), specifies the manner and conditions for the operating and use of waters and discharge of waters. The procedures for issuing the above documents will be explained in more detail below.

Prior to issuing the water requirements (which are an element of the location permit, and are necessary for preparation of the design documentation the main design), it is necessary to obtain the Opinion of the Republic organization in charge of hydrometeorological affairs (the Republic Hydrometeorological Service - RHMS) and the Opinion of the public water-management enterprise (Public Water-management Enterprise Srbijavode for the territory of the Republic of Serbia except for the Autonomous Province of Vojvodina, i.e. of the Public Water-management Enterprise Vode Vojvodine for the territory of the Autonomous Province of Vojvodina).

The Opinion of the Republic Hydrometeorological Service shall be obtained on the basis of the submitted Application.

The following shall be submitted with the application74: 1) The topographic map of the area (1:25000) with indicated layouts of the facilities, 2) The technical description, and 3) In case of unstudied catchment areas, the hydrological study (usually made based on meteorological data as well as on the hydrological data from the adjacent catchment areas).

74 There is nothing prescribed as to what should be submitted with the application for the

Opinion from RHMS what has been specified herein is a general assessment of the author in line with the discussions in the specified organization.

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The opinion of the public water-management enterprise shall be obtained

after submitting the Application for the opinion.

The following shall be submitted with the application75: 1) A copy of the plan with the plotted facilities, 2) The excerpt from the planning document the information on the location, 3) The technical description of the solution (if available, the General Design may be submitted).

After obtaining the Opinion of RHMS and the Opinion of the public water-

management enterprise, the Application for the water requirements shall be submitted.

The following shall be submitted with the Application for the water requirements: basic data on the location, use, and size of the structure and, as required, preliminary studies, and the General Design (Conceptual Design), which provide a more detailed insight in the impact of the structure on the water regime. For issuing the water requirements, the opinion of the public water-management enterprise shall be mandatory. In addition to the above specified, the following shall be submitted with the Application for the water requirements: 1) A copy of the plan (including the plotted position of the structure), which shall be issued by the competent Real Estate Cadastre; 2) The registered land certificate (for the cadastral lot on which the structure is constructed), which shall be issued by the competent Municipal Court, or by another competent authority; 3) Certificate of resolved property-rights relations: evidence of the ownership use of the land by the investor, approval of the public water-management enterprise if the construction of a structure of public interest on the water land is in question; 4) The plan of use of the areas, which shall be issued by the competent municipal town planning department.76

The competent ministry (the Ministry of Agriculture, Forestry and Water

Management), or the defined competent authority (the Provincial Secretariat, the Water Administration or the local self-government) shall issue the Decision Issuing the Water Requirements. The Main Design shall be prepared based on this

75 There is nothing prescribed as to what should be submitted with the application for the

Opinion from public water-management enterprises what has been specified is a general assessment of the author in line with the discussions in the specified organizations.

76 The contents of the documentation, which shall be submitted with the application, are contained in the form VU, which can be downloaded from the Web site: www.minpolj.gov.rs / arhiva / vodoprivreda / vodoprivredna akta (Archive / Water Management / Water Documents). In compliance with the Law on General Administrative Procedure, the authority may request the Investor to complete the documentation.76

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Decision. The obtained Decision Issuing the Water Requirements shall be one of the elements of the location permit.77

Once the location permit has been obtained, one shall proceed with the preparation of the design documentation the main design of the power plant.

In order to proceed with the following stage obtaining of the Construction Permit, it is necessary, inter alia, to obtain the Water Approval on the specified design documentation. The Water Approval shall establish that the technical documentation the Main Design, has been prepared in compliance with the water requirements.

The documentation for issuing the water approval shall be specifically the technical documentation the Main Design, which shall contain: 1) The technical report; 2) Computations: hydrological, hydraulic, of stability, level of pollution, etc.; 3) Graphical exhibits: layout plans, plans, and cross-sections with the necessary elements for establishing the impact of the water regime on the structure and vice versa; 4) Presentation of the natural water regime; 5) Presentation of the projected water regime; impact of the structure on the natural and the projected water regime; 6) The impact of the natural and projected water regimes on the structure. The approvals of the Ministry of Health and of the Ministry of Environment and Spatial Planning shall also be submitted along with the above application. The following shall be submitted with the application for the water approval on the main design: 1) The Decision Issuing the Water Requirements; 2) The Main Design; 3) The report on the review of the design; 4) Other documents, which are required in the Decision Issuing the Water Requirements.78

The water approval shall cease to be valid if, within two years from the date of its obtaining, the application for the Construction Permit is not submitted to the competent authority. The decision establishing expiry of validity of the water approval shall be handed down by the authority, which has issued the water

77 Exceptionally, subject to Article 118, of the Law on Waters, the authority in charge of

issuing the water requirements may request from the applicant to obtain the opinion of the Ministry of Environment and Spatial Planning and/or of a specialized scientific institution (establishments, institutes, etc.). For the facilities and works in a territory of a spa resort, the applicant shall obtain the opinion of the ministry in charge of the affairs of tourism. There is no specifically prescribed procedure for obtaining the above opinions.

78 To assist an applicant, the list of all the required documentation for obtaining the water documents can be found on the Web site of the Ministry of Agriculture, Forestry and Water Management: www.minpolj.gov.rs Link: Arhiva Vodoprivreda - Vodna akta - Obrazac zahteva VS (Archive - Water Management Water Documents - Application Form VS). Exhibits that shall be submitted can be downloaded from the Web site of the Ministry of Agriculture, Forestry and Water Management, Form VDP. In compliance with the Law on General Administrative Procedure, the authority may request the Investor to complete the documentation.

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approval. An appeal may be lodged against this decision to the minister within 15 days as of the date of submitting the decision.

Once the structure has been constructed, and prior to obtaining the operating permit, it is necessary to submit the application for the Water Permit to the Ministry of Agriculture, Forestry and Water Management, or to the competent authority. The Water Permit is required for the exploitation and use of waters and natural and artificial watercourses, lakes, and ground waters, for discharge of waters and other substances into natural and artificial watercourses, lakes, ground waters, and public sewers, as well as in case of increase of the capacity of the already existing structure for the increase of the quantity of in-taken and discharged waters, changed nature and quality of discharged waters. This License shall be issued for a period of maximum 15 years so that, maximum two months prior to its expiry, its validity should be extended if there is the issued Decision on Water Permit. The right acquired on the basis of the Water Permit may not be assigned to any third party without the consent of the issuing party, and this right shall terminate: upon expiry of the validity thereof, by waiver of the right, and by failure to exercise the right without justified reasons for over 2 years.

The following shall be submitted with the application for the water permit: 1) The water approval; 2) Evidence of fulfillment of the requirements from the water approval; 3) The technical documentation based on which the structure has been constructed, including all the modifications and additions made in the course of construction; 4) The report of the commission on the completed technical inspection of the constructed structure or plant; 5) The opinion of the public water-management enterprise concerning the fulfillment of the requirements from the water approval, the impact of the structure on the water regime, the impact of the water regime on the structure, and the requirements for issuing the water permit. In case some other documents are also required, which depends on the specific features of the structure, the Investor, after submitting the application, shall be subsequently notified by the Ministry to complete the documentation.79

3.2.5 Environmental Impact Assessment Environmental impact assessment is a very important element in the process

of construction of a power plant. Within the procedure for obtaining the energy permit, it is necessary to make a study of possible impacts on the environment including the proposed measures for protection of the environment.

79 To assist an applicant, the list of all the necessary documentation for obtaining the water

documents can be found on the Web site of the Ministry of Agriculture, Forestry and Water Management: www.minpolj.gov.rs Link: Arhiva Vodoprivreda - Vodna akta - Obrazac zahteva VD (Archive Water Management Water Documents Application Form VD). In compliance with the Law on General Administrative Procedure, the authority may request from the Investor to complete the documentation.

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Should the competent authority find it necessary, as an element for issuing the Construction Permit, it shall be necessary to make the Environmental Impact Assessment Study for the power plant.80

Environmental impact assessment for a biomass/biogas power plant, including the proposed measures for environmental protection, shall be made when making the Environmental Impact Assessment Study for a biomass/biogas power plant. Depending on its presence on either of the lists of projects of the Decree on the List of Projects for which the Environmental Impact Assessment Is Mandatory (List I) and on the List of Projects for which the Environmental Impact Assessment May Be Requested (List II), making of the Environmental Impact Assessment Study for a biomass/biogas power plant is either mandatory or may be requested. The projects of power generating plants (electricity, heat, steam...) in facilities of over 50 MW are on List I of this Decree81 - which means that, for such facilities, making of the Environmental Impact Assessment Study is mandatory. Power generating plants (electricity, heat, steam...) in facilities of a capacity from 1 to 50 MW are specified in List II of the Decree82 - which means that, for such facilities, making of the Environmental Impact Assessment Study may be requested. The scope of such impact depends on the location of the facility, on the capacity of the facility, on the concrete environment of the facility, etc. Making of a Study is not required for the power plants of a capacity below 1 MW.

The Law on Environmental Impact Assessment stipulates for which biomass/biogas power plants the Environmental Impact Assessment Study may be requested. In such cases, the owner of the project for the facility shall submit the Application for deciding on the need for impact assessment to the competent authority. Competence of the authority in the procedure for establishing the need for making of the Impact Assessment Study is the same as in the case of establishing the competence for issuing the Construction Permit.83

The application concerning the need to assess the impact shall be submitted in the prescribed form, in compliance with the Law on Environmental Impact Assessment and the Rulebook on Contents of the Application for the Need to Assess the Impact and Contents of the Application for Determining the Scope and Contents of the Study of Environmental Impact Assessment Study.