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  • CONSTRUCTION OF PLANTS AND ELECTRICITY GENERATION IN SOLAR POWER PLANTS IN THE REPUBLIC OF SERBIA Guide for Investors

    IZGRADNJA POSTROJENJA I PROIZVODNJA ELEKTRIČNE ENERGIJE U SOLARNIM ELEKTRANAMA U REPUBLICI SRBIJI Vodič za investitore

    Empowered lives. Resilient nations.

    Program Ujedinjenih nacija za razvoj

  • First Edition, February 2013

    Authors: Bojan Lazarevic, BSc El. Eng. Branislava Lepotic Kovacevic, PhD Law

    Supported by: United Nations Development Programme

    Prvo izdanje, Februar 2013.

    Autori: Bojan Lazarević, dipl. el. inž. Dr Branislava Lepotić Kovačević, dipl. prav.

    Uz podršku: Programa Ujedinjenih nacija za razvoj

  • English Srpski

  • CONSTRUCTION OF PLANTS AND ELECTRICITY GENERATION IN SOLAR POWER PLANTS IN THE REPUBLIC OF SERBIA Guide for Investors

  • 6

    TABLE OF CONTENTS

    FOREWORD 7

    1. INTRODUCTION 9

    1.1. Definition of a Solar Power Plant 9 1.2. Sources of Law 10

    2. CONSTRUCTION OF A POWER PLANT 12 2.1. Power Plant Construction Procedure 12

    2.1.1. Selection of the Location, Perusal of Valid Planning Documents and the Information on Location 12 2.1.2. Energy Permit 13 2.1.3. Requirements for Connection 15 2.1.4. Location Permit 16

    2.1.4.1. Location Permit Issuing Procedure 16 2.1.4.2. Forming the Building Plot 17 2.1.4.3. Water Requirements, Water Approval, and Water Permit 19

    2.1.5. Environmental Impact Assessment 22 2.1.6. Technical Documentation 25 2.1.7. Construction Permit 29 2.1.8. Construction of a Structure 30 2.1.9. Technical Inspection of a Structure and Operating Permit 31

    2.2. Special Cases of Construction of Solar Collectors and Solar Cells 32

    3. ACQUIRING THE RIGHT TO EXPLOIT

    A NATURAL RESOURCE 34 3.1. Concession for Exploitation of a Natural Resource 34

    3.1.1. Concession Granting Procedure 34 3.1.2. Concession Deed Setting Procedure 35 3.1.3. Concession Agreement Signing Procedure 36 3.1.4. Concession Agreement 37

    4. LICENSE 40

    5. CONNECTION OF A POWER PLANT TO THE ELECTRIC POWER GRID 41

    6. ACQUIRING THE STATUS OF PRIVILEGED POWERPRODUCER AND PERTAINING INCENTIVES 43 6.1. Acquiring the Temporary Status of Privileged Electricity Producer 44 6.2. Acquiring Status of Privileged Electricity Producer 45 6.3. Incentives for Electricity Producers of Electrical Energy from Non-Accumulated Solar Energy 46 6.4. Guarantee of Origin 48

    7. ANNEX: Sources of Law

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    CONSTRUCTION OF PLANTS AND ELECTRIC POWER GENERATION IN SOLAR POWER PLANTS IN THE REPUBLIC OF SERBIA Guide for Investors

     Table of Contents

    Foreword

    Serbia’s significant renewable energy potential is still not sufficiently exploited due to a number of reasons that cause a lack of investment activity in renewable energy sector. The Government of the Republic of Serbia has recently accepted the Decision of the Min- isterial Council of Energy Community on the promotion of the use of renewable energy by means of transposition of the EU Directive 2009/28/EC on renewable energy. This deci- sion sets an ambitious goal for Serbia to increase the share of renewable energy in gross final energy consumption to 27% by 2020, with respect to baseline of 21.2% in 2009, which will lead to intensive investment activities in the sector in the forthcoming period.

    Based on the Agreement for the provision of support services with the Ministry of Energy, Development and Environmental Protection under the auspices of the “Policy Advice on Renewable Energy Sources” project, in 2012 UNDP Serbia focused on promoting invest- ments in renewable energy sector by updating and revising four existing, yet outdated, guides for investors in renewable energy facilities and by elaborating two new guides:

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

    • CONSTRUCTION OF PLANTS AND ELECTRICITY GENERATION IN SMALL HYDROPOW- ER PLANTS IN THE REPUBLIC OF SERBIA

    • CONSTRUCTION OF PLANTS AND ELECTRICITY GENERATION IN WIND POWER PLANTS IN THE REPUBLIC OF SERBIA

  • 8  Table of Contents

    • CONSTRUCTION OF PLANTS AND ELECTRICITY/HEAT GENERATION FROM HYDRO- GEOTHERMAL SOURCES IN THE REPUBLIC OF SERBIA

    • CONSTRUCTION OF PLANTS AND ELECTRICITY GENERATION IN SOLAR POWER PLANTS IN THE REPUBLIC OF SERBIA

    • CONSTRUCTION OF THE SOLAR HEATING SYSTEMS IN THE REPUBLIC OF SERBIA

    All guides, with the exception of one, are bilingual and exist in two versions. Six elab- orated guides describe in details very complex and comprehensive procedure for con- structing energy facilities and performing economic activity of energy generation from renewable sources. The detailed guides are intended primarily for investors and project developers, but also for officials in different competent institutions since the legal pro- cedure is typically cross-sectoral. In five less detailed guides the comprehensive matter is described in a simple and illustrative manner with an idea to bring it closer to the wide range of stakeholders.

    The objective of the guides is to encourage and assist the investors interested in Serbian renewable energy sector, but also to identify through a thorough analysis weaknesses and inconsistencies of the legal procedure and to encourage competent institutions to perform legal and institutional improvements. We sincerely hope that the guides will trigger constructive dialogue between numerous stakeholders and thus contribute to their better awareness and mutual understanding, which should ultimately result in fa- vourable environment for investments in renewable energy.

  • 9

    CONSTRUCTION OF PLANTS AND ELECTRIC POWER GENERATION IN SOLAR POWER PLANTS IN THE REPUBLIC OF SERBIA Guide for Investors

     Table of Contents

    1. INTRODUCTION 1

    1.1. Definition of a Solar Power Plant

    Renewable energy sources are energy sources existing in the nature and being renewed in full or in part, in particular watercourses, wind, un-accumulated solar energy, biomass, animal biomass, geothermal energy, bio-fuels, biogas, synthetic gas, landfill gas, gas from plants for the treatment of municipal and waste waters from food processing and wood processing in- dustry, which do not contain hazardous matter.2 Exploitation of these sources contributes to a more efficient utilization of own potentials in the production of energy, reduction of emission of greenhouse gases, reduction of imports of fossil fuels, development of local industry and creation of new jobs.

    Power plants which use the solar energy (hereinafter referred to as: power plants or solar power plants) are energy facilities for performing the activity of electricity generation from the solar radiation potential.

    The solar power plant operates on the principle of photovoltaic effect, direct voltage and cur- rent are generated in solar cells. By means of an inverter, direct voltage and current are con- verted into alternating values and as such are supplied to the electric power grid.

    Power plants, which, in their electricity generation process, in an individual production facility, use non-accumulated solar energy of installed capacity of up to 5 MW, if they fulfill certain con- ditions, are eligible for acquiring the privileged electricity producer status3.

    Average solar radiation in Serbia is by about 40% higher than the European average, but, in spite of that fact, the use of solar energy for electricity generation lags by far behind the EU member countries. Creation of conditions for development and functionality of sustainable market of photovoltaic systems is of a great importance for the economy and preservation of environment in Serbia.

    The energy of Sun radiation that reaches the surface of the Earth, i.e. potentially usable Sun radiation, amounts to approx. 1.9 x 108 TWh (190 million terawatt hours) per year. That energy is about 170 times greater than the energy of the total quantity of coal reserves in the world, and when compared with the energy requirements of the mankind, which amount to 1.3 x 105 TWh (130 thousand terawatt hours) per year, one obtains a fact that the solar energy arriving at the Earth’s surface during only 6 hours is sufficient to meet all world requirements at an annual level. To get a better insight into these figures and values – an average household in some of the most developed countries of the world consumes annually about 10,000 kWh of electricity and it would need about 100 000 years to consume 1 TWh.

    Approximately 37% of the energy demand in the world is met by the electricity generation, which amounted to 17 000 TWh during 2008. If that energy would be generated by the systems which convert the solar energy into electricity, systems of modest output power of 100 kWh per m2, surface area of 150 x 150 km2 would be necessary for solar energy absorption. Large part of this absorption area might be placed on the roofs and walls of buildings, and thus it would not require additional spaces on the ground.

    1 It should be underlined that this Guide refers to solar power plants in general and describes procedures concerning competent authorities and institutions, but that certain elements of these procedures, as well as execution of certain procedures depend on the size of the structure, location where the structure is constructed, specific technology for the production of energy and other features of the structure.

    2 Article 2, item 1) of the Decree on Requirements for Obtaining P

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