Novi Sad, May 22 nd 2015

1. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and RenewablesEU Delegation to the Republic of Serbia Gligo Vuković EU Delegation to the Republic of Serbia Novi Sad, May 22nd2015

2. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables EU Assistance to Energy Sector in Serbia - more than 550 M€ 2000 - 2006 CARDS - Community Assistance for Reconstruction, Development and Stabilization About 450 M€ for energy sector 2007 - 2013 IPA - Instrument for Pre-Accession Assistance About 105.5 M€ for energy sector

3. Projects in the sector of renewables and energy efficiency • financed by EU: • Feasibility study for Serbian Energy Efficiency Agency, 1.0 M€ • TA to Serbian Energy Efficiency Agency, 0.5 M € • Establishment and operation of Serbian Energy Efficiency Agency, 4.5 M€ • Renewable Energy Feasibility Studies, 1 M€ • Modernisation of District Heating in five Serbian cities, 25.15 M€ • TA - Guarantee of Origin of Electricity Produced from Renewable Energy Sources, 0.13 M€ • Promotion of Renewable Energy Sources and Energy Efficiency, 1.5 M€ • TA – Sustainable Development in Energy Sector, 0.6 M€ • Preparation of Second Energy Efficiency Action Plan and Development of Energy Indicators ,2.0 M€, on-going project • Upgrade of the existing cadastre of small HPPs (in preparation) EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

4. TREATY ESTABLISHING THE ENERGY COMMUNITY • Signed in October 2005; entered into force on 1 July 2006 • CONTRACTING PARTIES • European Union • 8 Contracting Parties: Albania, Bosnia & Herzegovina, Former Yugoslav Republic of Macedonia, Moldova, Montenegro, Serbia, Ukraine, Kosovo (under UNSCR 1244) • CONTENT • Implementation of the Treaty – acquis  • Deadlines and institutional framework • REQUIREMENTS • cooperation; infrastructure; reconstruction • stability as condition precedent to investments • stable legal framework • BENEFITS OF A REGIONAL APPROACH • optimized usage of existing capacity of transportation and production • improvement of future investments  small markets; economies of scale EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

5. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables Reduce greenhousegas levels by 20% Increase share of renewables to 20% Reduce energyconsumption by 20% Competitiveness Sustainability Security of Supply

6. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables 21.2% … 27%

7. Serbia and EE • Law on EE adopted in 2013 • By-laws to be prepared • 2nd NEEAP prepared and adopted • 3nd NEEAP to be prepared in 2016 EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables New capacities needed to reach RES target for Serbia

8. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables Project: Promotion of Renewable Energy Sources and Energy Efficiancy (IPA 2010) Active Geothermal Industry in Serbia ! How? Easily available database; Centralized monitoring; Clear goals; Streamlined legal structure; Financial risk mitigation; Incentives to promote energy shift; Participation in GEO R&D in Europe.

9. BARRIERS • No public accessable geothermal resources database; • Goals unclear and varying in documentation; • Outstanding legal issues regarding ownership, royalty, spatial plans, undefined deadlines, lag in approval process regarding connection to net and re-injection; • Initial cost and risk of drilling of the first well; • Resistance within off-takers to shift system for heating; • Lack of general public knowledge of geothermal energy exploration and utilisation; • Visibility within the geothermal industry in Europe. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

10. SOLUTIONS Database of project data on its way, should be updated regularly; Goals can be set based upon information from this project; Legislation changes suggested in the plan; Policies to cover financial risk suggested in the plan; Incentives to promote shift suggested in the plan; Training, education and awareness should be enhanced; Expand international R&D collaboration. EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

11. - Concept study - Options study - Pre-feasibility study - Feasibility study EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

12. POSSIBLE FINANCING • IPA National – Instrument for Pre-Accession Assistance • IPA Regional – Instrument for Pre-Accession Assistance • WBIF – Western Balkan Investment Framework, loans and grants • EIB – The Green for Growth Fund, Southeast Europe (GGF) • EBRD • KfW • Local banks • … EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables

13. Potential beneficiaries IPA Regional EU – DG NEAR EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables IPA National Ministry of Mining and Energy EU Delegation to the Republic of Serbia Serbian European Integration Office (SEIO) WBIF - Western Balkan Infrastructure Facility € € € IFIs - International Financing Institutions (EBRD, EIB, KfW, …) Projects

14. THANK YOU Gligo Vuković EU Delegation to the Republic of Serbia Vladimira Popovića 40, New Belgrade gligo.vukovic@eeas.europa.eu; www.europa.rs EU Support to Serbian Energy Sector with the Focus on Energy Efficiency and Renewables