CDM activities carried out in the Balkan Region Ministry for Environment, Land and Sea Republic of Italy Task Force for Central and Eastern Europe Rabat October 17th, 2007
Outline • Introduction; • Project scouting: • Essentials, • Eligibility test; • CDM Project Cycle; • Balkan countries: • Potential, • Assessment of projects’ potential; • Serbia, Montenegro, Macedonia and Albania.
Introduction • Cooperation program between the IMELS and the MSEP related to CDM started at October 2004, with two main goals: • Institutional help; • Development of projects to obtain CERs; • After, similar agreement were established with MEPPP of the Republic of Montenegro, MEPP of the Republic of Macedonia and MEFWA of the Republic of Albania • TCEE was in put charge for assessment of possible CDM projects in those countries.
Project scouting - Essentials • Assessment of the existing strategic documents; • Analysis of the institutional and legal frameworks; • Meetings with stakeholders; • On-site survey; • Data collection; • Projects presentation;
CDM project cycle IDENTIFICATION PREPARATION APPRAISAL 2 3 1 Feasibility studies, PDD preparation CDM projects scouting Host country approval EVALUATION IMPLEMENTATION LOAN NEGOTIOTION&BOARD APPROVAL 4 6 5 Monitoring, verification, issuance of CERs Validation, registration
CDM Opportunities in Serbia • Ratification of the Kyoto Protocol • Procedure for ratification started in 2004 for the State Union of Serbia and Montenegro; • Republic of Serbia ratified it in September 2007; • DNA has not been established yet; • The First National Communication is in the phase of preparation.
Legal framework • Legal framework in Serbia is in process of harmonisation with EU legislation; • Some relevant strategic documents are done: • Waste Management, Forestry, Energy Sector Development, Agriculture; • Some relevant strategic documents are in the phase of preparation: • CDM, Sustainable Development, Sustainable Use of Natural Resources and Goods.
Project title:NIS - DUMP SITE– LFGRECOVERY AND USE • Location:In the vicinity of the City of Nis. • Project description:The project will recover and combust LFG to generate electricity. Burning of LFG will convert the methane content to less potent carbon dioxide in terms of global warming. • The project concept requires investment in equipment for the LFG recovery, collection and in a modular electricity generation plant, with the final capacity of 1 MW, in order to flare and/or produce electricity for grid supply. • The dump site has been operational since 1970’s and amount of the MSW carried into the dump site is estimated at 278 t/day. GHG offset: In total 38.600 tCO2eq/ year Investments cost:Around 1,3 milion € Project partner:Municipality of Nis, County and local Public Utility Company
Project title:NOVI SAD - DUMPSITE - LFG RECOVERY AND FLARING • Location:At the north-west side of the City of Novi Sad • Project description:Project activitywould be composed of LFG collection and flaring, thus converting its methane content into CO2 and simultaneously reducing its GHG effect. • Opened during 1960’s; current daily waste acceptance is app. 300 t/day. • Separation line for secondary raw materials (plastic, glass, metal and paper) established in 2002. • Only 30% of total collected waste, with high organic content is directly spread. GHG offset:25.100 tCO2eq/ year. Investments cost:Around 700.000 € (including costs for equipment and design) Project partner:City of Novi Sad,Public Utility Company “JP Čistoća”
Project title:PTK “PANONIJA” BACKA TOPOLA- AWMS METHANE RECOVERY PROJECT Location:Municipality of Backa Topola Project description:Project activity is based on the transformation of the existing lagoon into the covered anaerobic digester. Emission reduction will be achieved by transformation of generated biogas into CO2 through combustion of digested biogas The farm, “Panonija”, has a yearly production of 40.000 pigs with average weight of more than 50 kg. GHG offset:11.200 tCO2eq/ year. Investments cost: Around 310.000 € (including costs for design, equipment and CDM developing) Project partner:Farm owner
Project title:PKB BELGRADE “NOVA ČETVORKA” - AWMS METHANE RECOVERY PROJECT Location:Vicinity of the City of Belgrade Project description: The objective is to replace the existing open lagoon system for liquid manure treatment in the farm unit “Nova Cetvorka” applying the simplest type recovery system, covered anaerobic digester. GHG emission reductions will be achieved by flaring of collected biogas. The farm has annual production of 2.500 bulls with average weight of 200 kg. GHG offset:5.200 tCO2eq/ year. Investments cost:Around 260.000 € (including costs for lagoon, gas handling, flaring equipment, engineering and CDM development) Project partner: Public company “P.K.B” Belgrade
Project title: ESTABLISHMENT OF THE FOREST WIND BELTS FOR AGRICULTURE LAND Location: Municipality of Kikinda Project description: The project proposal foreseesafforestation of 1831,4 ha of land, i.e. establishment of 814,9 km long wind-belts network along the traffic arteries, river flows, canals and infield land roads. The belt would be comprised of 3 to 6 rows and would spread in the north-east to south-west direction. The project also includes remediation of the saline land through afforestation of 550 ha. GHG offset:Reduction of GHG emissions are estimated to be around 3.600 tCO2eq per year. Investments cost:Estimated cost is 2,38 mill €, while the price of wood that derives from the forest wind belts is 30 €/m3. They enter exploitation phase 30 years after their establishment. Project partner:Municipality of Kikinda; Public Company for Forest Management “Vojvodinasume”.
Project title:HIP-AZOTARA IN PANCEVO Location:Municipality of Pancevo Project description:The project activity is related to the energy efficiency improvement in the industrial facility HIP-Azotara, comprising the following actions: • Optimization of absorption column operations at the Nitric Acid Production Plant • Wasted steam recovery and condensation at all AN Production Plants • Heat recovery at the Nitric Acid Production Unit No. 3 compressor stage • Wasted heat recovery from the tail gases of the Nitric Acid Unit. GHG offset:30.000 tCO2eq/year. Investments cost: Total investments costs are 8.500.000 € Project partner:HIP AZOTARA Note:The pre-feasibility study is done. Feasibility Study expected to be issued on June ‘07 (business plan included).
Project title:ENERGY EFFICIENCY IN STREET LIGHTING – CENTRAL SERBIAN REGION Location:Municipalities: Cacak, Ivanjica, Uzice and Pozega Project description: This project activity comprises the replacement nearly 16.000 obsolesced mercury bulbs with sodium ones in four neighbouring municipalities. That would decrease energy consumption by 46 % in average and reduce cost for maintenance due to three times longer lifetime period of sodium bulbs. GHG emission reductions would be achieved through electricity savings. GHG offset:6.000 tCO2eq/ year. Investments cost:Estimated investment costs for bulbs, lumps and replacement are 1.728.000 €, annual savings are 374.100 €. As a result, payback period is 4 to 5 years. Project partner:Municipalities that are included in project activity. Note:Despite large investments, payback period is acceptable and estimated considering presentrelatively low price of electricity.
Project title:COGENERATION PLANTS IN INDUSTRIAL ZONE IN CACAK Location:Municipality of Cacak Project description:The project idea foresees the installation of the cogeneration plant with installed capacity 3 MWe, calculated to cover the electricity demand for three factories, as the biggest electricity consumers in the region. The current steam production in this factories is around 18,45 t/h of steam and in the winter period up to 23 t/h. Annual electricity demand is around 12.800 MWh. GHG offset:10.000 tCO2eq/year. Investments cost: Total investment costs are 4.000.0000 € Project partner:Factory Sladara, Factory FRA, Factory “Bozo Tomic”, and Municipality of Cacak
Project title:SHPP VRGUDINAC, SHPP CRVENIBREG, SHPP MALA BELA PALANKA Location:Municipality of Bela Palanka Project description: The project activity comprises the construction of the three run-off river small hydro power plants Vrgudinac, Crveni breg and Mala Bela Palanka with the following caracteristics. SHPP Vrgudinac has the capacity of 1.350 kW and could generate app. 5.403 MWh of green electricity. SHPP Crveni Breg has the capacity of 2.588 kW and could generate app. 11.300 MWh of green electricity. SHPP Mala Bela Palanka has the highest capacity of 4.057 kW and will generate app. 17.770 MWh. In order to decrease transaction cost these3 sites are bundled into one project activity. GHG offset:29.500 tCO2eq/year. Investments cost: Total investments costs are approx. 12.000.000 € Project partner:Municipality of Bela Palanka, private local company, EPS Note: Pre-feasibility study has been elaborated for all three SHPPs
CDM Opportunities in Montenegro • Ratification of the Kyoto Protocol • Procedure for ratification started in 2004 for the State Union of Serbia and Montenegro; • Republic of Montenegro ratified it in January 2007; • DNA has not been established yet; • Meanwhile, an Inter-ministerial Working Group was set up to act as transitional body, until establishing DNA.
Legal Framework • Montenegro’s firm commitment towards EU integration brings necessity of complex legal reforms; • Adopted strategic documents: • Energy Policy, Energy Efficiency, SHPP Development, for Sustainable Development, Foreign Direct Investment Incentives, Study of Assessment of Renewable Potentials; • Laws are in the process of harmonizing with legislative of EU.
Montenegrin – Italian cooperation on CDM • Cooperation started in November 2004; • Legal assistance in establishing DNA in Montenegro; • GHG Inventories for 1990 and 2003 are completed; • Portfolio of CDM projects in Montenegro has been prepared and presented to possible Italian investors.
1 1 4 2 3 Montenegro: Waste Sector (MSW, AWMS)
Project title:PLJEVLJA AND NIKSIC– LFG RECOVERY AND FLARING Location:Municipalities of Niksic and Pljevlja Project description:The aim of this project activity is to reduce methane emissions from two dump sites by converting it into carbon dioxide emissions.The project activity envisages installation of equipment for LFG collection and flaring at the dumpsites. The dump site in Pljevlja: Operational since 1987, daily MSW acceptance 54 t/day, closure envisaged in 3 years. The dump site in Niksic: Operational since 2003, daily MSW acceptance 55 t/day. ` GHG offset:The project has the capacity to reduce GHG emission of 12.800 tCO2eq per year, of which 68% from Pljevlja and 32% from Niksic dump site. Investments cost:Around 350.000 EUR Project partner:Municipalities and local Public Utility Companies
2 4 5 3 1 6 Montenegro: Renewable Energy Sources
Project title: WOOD BIOMASS TO ENERGY IN NORTHERN MONTENEGRO Location:Municipalities of Berane, Rozaje, Andrijevica, Plav and Bijelo Polje Project description:The concept of project is to establish wood-biomass power plant with 3MW installed capacity on the territory of Berane Municipality and to produce annually 23,4GWh of electricity for the grid. Wood residues would be collected on the territory of five municipalities, in the range of 35km. Current amounts of available biomass, in a form of wood residues from forestry and wood processing, accounts for 57.000 m3/ year. GHG offset:13.600 tCO2eq/year Investments cost:Estimated investment cost is app.7,5 mil EUR ± 10% Project partner:Municipalities of Berane, Rozaje, Andrijevica, Plav and Bijelo Polje; Local wood processing companies; Electric Power Industry of Montenegro Note: Feasibility study in place
Project title: ENERGY EFFICIENCY IN SPORT CENTER MORACA IN PODGORICA Location: Municipalities of Podgorica Project description:The project idea is to install a HVAC system in the ‘’Moraca’’ sport centre (a public company, located on the riverbank in the central part of Podgorica) using ground water and replacing a ‘’classic’’ heating/cooling system: two boilers which uses fuel oil for heating – app. 1.025.000 liters/year and electricity for cooling, thus reducing CO2 emissions to zero. This approach of using heat pumps is very important for Montenegro because Podgorica, as the main urban energy consumer, lies on an underground lake. GHG offset:Taking into account less fuel oil consumption, the value of the GHG emission reductions is app. 2.700 tCO2eq per year. Investments cost: 4,9 million EUR Project partner:Municipality of Podgorica, Sport Center Moraca Note:Feasibility study is in place. This project activity could be bundled with some other similar energy efficiency measure resulting in higher GHG offset.
Project title: ENERGY EFFICIENCY IN THE STEEL MILL IN NIKSIC Location: Municipality of Niksic Project description:The Steel mill in Niksic is the second big industrial complex in Montenegro and therefore consuming a quite large amount of energy. In this steelmill there is possibility to implementthe following measures resulting in large potential of energy savings: • By modernization of the electro-arc furnaces, electro-resistant furnaces and electro-motor drive, the consumption of electricity could decrease by ~ 26 GWh; • By using the heat from exhaust gases from different kind of furnaces, the annual consumption of heavy fuel oil could decrease by ~ 1000 tons; • By heat pumps installation, which would use the wasted heat for heating purposes, the annual consumption of coal would be reduced by ~ 30.000 tons. GHG offset:It is estimated that the project has the capacity to reduce emissionsof app. 46.000 tCO2eq per year. Investments cost:NA Project partner:Steel mill Niksic
Project title: AFFORESTATION OF DEGRADEDLAND Location:Municipality of Berane Project description:The concept of project is to afforest 360ha of degraded agricultural and pasture land, and to reduce current risk from erosion by establishing a vegetative cover comprised of native coniferous species, in order to enhance sources of livelihood, incomes in poor rural areas, as well as to reduce soil degradation, and improve water quality and conservation of biodiversity. GHG offset:1.680 tCO2eq/year Investments cost:Estimated cost for afforesting 360 ha of degraded agricultural and pasture land with coniferous native species has been estimated to be around 500.000 EUR. Project partner:Directorate for Forestry of the Republic of Montenegro, Institute for Forestry, Podgorica. Note: Project proposal in place
CDM Opportunities in Macedonia • The Kyoto Protocol has been ratified in 2004; • DNA has been established recently: • It is a “single ministry model” within the MEPP; • It is authorized body that can issue Letter of Approval for the PDD; • In 2007 Strategy of CDM for period of 2008-2012 has been adopted.
Project title:AWMS - “ZITO VARDAR” VELES • Location:Municipalities of Stip, Vinica, Sveti Nikole and Berovo • Project description:Project activity consists of converting existing anaerobic lagoon into covered anaerobic digester in four swine farms owned by private company “Zito Vardar”: • “Tarinci“ with average population of 13.800 animals; • “Vineam” with average population of 7.500 animals; • “Sveti Nikola” with average population of 7.950 animals; • “Zito Males” with average population of 7.150 animals. GHG offset: 22.000 tCO2eq/year Investment costs:Around 800.000 € (including costs for lagoon, gas handling, flaring equipment, engineering and CDM cost) Project partner:Private company “Žito Vardar” Veles
2 1 3 Renewable Energy Projects
Project title: WIND PROJECT “SVETI NIKOLE” Location:Municipality Sveti Nikole, region of Gjuriste Project description:The project activity foresees the implementation of the concessionary pilot wind farm with the total installedcapacity of 7,5 MW. The average wind speed, in this location, at the height of 5 m, is 4- 4,5 m/s. According to a simple simulation, app. 16,5 GWh/year of electrical power may be generated as the supplement tothe national energy balance. GHG offset:17.800 tCO2eq/year Investment costs: Total investment costs are between 7,5 to 8,5 millions euro Project partner:Local ESM, Municipality Sveti Nikole Note:Due to the lack of precise measurements regarding the velocity and wind duration, theproject concept should be primarily focused to the installation of towers withmeasurementequipment
Project title: GEOTHERMALDISTRICT HEATING SCHEME “BANSKO” Location:Municipality of Strumica, village Bansko in the south-east part of Macedonia Project description:The objective of the proposed project is to complete the basic district heating network, to install heat power plant and sell the heat to local consumers (spa facilities, hotels, hospital, greenhouses, shops, residencies etc.). The concept of the project is reducing current fossil fuel consumption, through usage of geothermal energy. GHG offset:36.000 tCO2eq/year Investment costs: Total investments would fall within the range of 2 to 2,5 million € Project partner:Municipality of Strumica Note:The pre-feasibility study was prepared by the MAGA
2 1 2 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Energy Efficiency Project
Project title:FUEL SWITCH FROM OIL TO NATURAL GAS IN HEATING PLANT “ZAPAD” Location: Heating plant “Zapad”,city of Skopje Project description:This project activity foresees the fuel switching in one of five heating plants in Skopje, from residual fuel oil to natural gas. The installed capacity is 185 MWth, and annual consumption of 30000 tons residual fuel. Also there are possibility for same activity in military hospital and hotel “Alexandar Palace”. The annual consumption in these three bundled places is 37000 tons residual fuel. GHG offset:26 000 tCO2eq/year Investment costs:Estimated investment costs for the fuel switch is app. 750000€ (including the change of two burners and boilers refurbishment) Project partner:AD Toplifikacija
CDM Opportunities in Albania • Ratification of the Kyoto Protocol occurred in December 2004; • DNA has been established: • Within MEFWA; • Legal and Institutional Framework; • Capacity building for CDM in Albania; • Not yet formalized structure of CDM project approval and other support framework.