1. EFFICIENT USE OF ENERGY
Republic of Serbia         Ministry of Energy, Development and Environmentаl Protection
LAW ON
EFFICIENT USE OF ENERGY
Conference on Energy efficiency in Industry
Belgrade, 28. may 2013. 1

2. Energy in Serbia Large dependency on the imported energy: 30%
Energy intensity in Serbia: 2-3 times higher than in the EU
Large dependency on the imported energy: 30%
Large GHG emissions in the energy sector: 76%
The commitment of the Republic of Serbia - Sustainable Development
International obligations
- Energy Community: the application of the Directive in the field of energy efficiency
- Association to EU: Energy-climate package (20/20/20) - 20% energy savings by 2020.
Energy efficiency is an important element of the energy policy of the Republic of Serbia
Source: MEDEP-RS Energy Balance in 2011.

3. Primary Energy PE
Structure of energy production Primary energy 20011
Total PE production: 11,163 Mtoe - Total PE consumption: 16,192 Mtoe - Import dependence ~ 30% - Import: NG 24%, Oil 52%, coal 14%
Structure of energy consumption   Primary energy 20011
Source: MEDEP-RS Energy Balance in 2011.

4. Share of final energy consumption in final energy consumption
Final Energy FE
Share of final energy consumption
By sector
- Total FE* consumption - 10,042 Mtoe
Energy structure
in final energy consumption
* Final energy (or energy used by "end" users)
Source: MEDEP-RS Energy Balance in 2011.

5. Energy Policy and Energy Efficiency
Energy Law: - One of the aims of energy policy, "ensuring the conditions for the improvement of EE in energy activities and energy consumption"
Energy Development Strategy for RS until year:
- The second - directed Priority: rational use of quality fuels and increase EE in production, distribution and end eser`s sector
Strategy Implementation Programme :
- Barriers:
- unrealistic parity energy prices and their variability
- for decades energy was assumed to be a social category
Necessary measures:
adoption of legislation on efficient use of energy (EE Law)
establishment of energy management system
funds / institutions for financing EE
subsidies, tax relief for projects in EE
introduction of energy efficiency criteria in public procurement
raising public awareness of the importance of rational use of energy and EE

6. Obligations of RS toward Energy Community (1)
Implementation:
- Directive 2006/32/EC on Energy Efficiency in Final Energy Consumption and Energy Services
- Directive 2010/30/EU on the Labeling of Energy and other Resources for Products that Affect Energy Consumption
- Directive 2010/31/EU on the Energy Performance of Buildings

7. Obligations of RS toward Energy Community (2)
First National Energy Efficiency Action Plan
- prepared On the basis of the request: • Directive 2006/32/ES European Parliament and of the Council on the energy effecient use of final energy
Acording to the recommended model developed by the:
•Working Group on Energy Efficiency established in the Energy Community Secretariat
- adopted:
•29 July by the Government of the Republic of Serbia
objective: • savings of 1.5% of FE in the period of 2 years,
(0,1254 Mtoe) (based on FE consumption in 2008)
Note: Savings of at least 9% of FE consumption in 9. year of application, Mtoe, (2010 – 2018)

8. Obligations of RS toward Energy Community (3)
First National Energy Efficiency Action Plan
- Share of final energy savings by sector till 2012.
• Industry (0,057 Mtoe) 44% • Transportation (road and rail) (0,045 Mtoe) 35% • Other (0,026 Mtoe) 21%
• Households • Public and commercial activities • Agriculture
Second National Energy Efficiency Action Plan
Under preparation
Covers period

9. Law on Efficient Use of Energy
The basic principles: - energy security implementation of EE measures in production, transmission,
distribution and energy consumption
- competitiveness of products and services reducing the cost of production / service - sustainable use of energy reducing of energy consumption, higher efficiency, eco-design requirements, use of EE technologies, sustainability in terms of environmental impact - energy management system integrated approach to reduce primary energy consumption and
environmental impact - cost-effectiveness of energy efficiency measures - minimum energy efficiency requirements
for new and reconstructed plants in generation, transmission and
distribution of energy 9

10. Law on Efficient Use of Energy
Sectors: - Production, transmission and distribution of energy generation, transmission and distribution of electricity production and distribution of thermal energy transportation and distribution of natural gas - Energy consumption sectors industry services sector public sector households transportation - Manufacturers, importers and sellers of products
that affect energy consumption - Owners of heating systems and boilers over 20kW - Owners of air conditioning systems over 12kW 10

11. Law on Efficient Use of Energy
Introduced mechanisms:
- Energy management system
- Energy audits
- EE level designation and establishment of minimum requirements for products that significantly affect energy consumption and buildings - eco-design requirements - Minimum EE requirements in generation, transmission and distribution of electricity and thermal energy and natural gas - measurement and consumption based billing - control of boilers, heating and air-conditioning systems
- Energy efficiency as a criteria in public procurement - Development of the Energy Efficiency Services Market (ESCO)
- Development of Programmes of public transport system enhancement for cities with more than 20,000 inhabitants - Incentives for rational and efficient use of energy
- Budgetary Fund for Energy Efficiency 11

12. Energy Management System
Threshold
Energy Management System introduction is mandatory for:
- Companies with the main activities in production sector – industrial plants – if they consume more energy than set as threshold - Companies with the main activities in trade and services sector - objects - if they consume more energy than set as threshold bodies
- Cities/ Municipalities – number of inhabitants higher then
- Public buildings and other objects – State Governance
Industry
Energy consumption
Buildings
Number B A C B A C
Energy Management System will cover about
70% of primary energy consumption 12

13. Energy Management System
Ministry of Energy, Development and
Environmental Protection (MEDEP)
Law and regulations
Policy making
Registration and checking Periodical Reports and making database
Issuing license of Energy Manager and Accredited Energy Auditor
Inspection
Inspection
Random check
Advices
Issuing penalties
Designation Organisation
for Training
Inspection of
poor energy management
Periodical
Reports
Info of energy audit
Registration
AEA
Registration
DO, EM
Authorized Training Organization Organizing training for: - EM energy managers - Certified energy auditors
Accredited Energy Auditor
- external audit
Dispatching candidates
of Energy Manager
Certificate
Energy
Audit/report
Designated Organisation of EMS (industry, buildings, municipalities ...)   - appointment of energy managers   - collection and analysis of energy consumption data, proposing measures and activities for EE improvement   - preparation and submission of plans and programs for efficient use of energy
  - implementation of the proposed EE measures and activities   - preparation and submission of periodic reports
  - implementation of mandatory periodical energy audits
Energy manager

14. Energy Manager EM
Energy Manager: person appointed by the DO, which has a license for the performance of EM
Duties of EM:
- collect and analyze data on energy consumption
- prepare plans and programs for EE to MEDEP - propose EE measures - prepare and submit periodical reports to MEDEP Training / Qualification for EM - requirements : - BSc in technical sciences + training for EM + passed exam for EM or
- MSc in the field of mechanical engineering, electrical engineering or technology + passed exam for EM License for EM - requirements : - passed exam for EM
- 3 years of work experience and - submit application for issuing license to MEDEP 14

15. Acredited Energy Auditor AEA
Acredited Energy Auditor: a person authorized to perform energy audit which has a license
Duties of Acredited Energy Auditor:
- perform energy audit : - energy balance of the building, production processes and services, - Assess the current level of energy consumption   
- proposal of EE measures with the evaluation of E, ↓ CO2 and investment cost - prepare and sign a report on conducted energy audit - report to MEDEP on completed energy audit
Training / Qualifications - requirements: - passed the exam for EM
- minimum of 3 years experience in energy audits / design / technical inspection / field testing - completed training for AEA and - passed the exam for AEA
License - Requirements: - Passed the exam for AEA - MSc - master in the field of technical sciences and minimum three years of professional experience and
- submit application for issuing license to MEDEP 15

16. Energy Audit EA
Energy audit: a systematic procedure for obtaining necessary data and information on the current status of generation, transmission, distribution and use of energy in building, process, service by which are identified and quantified opportunities for economically viable and efficient use of energy
- EA is performed by Acredited Energy Auditor:
- Individual - the license - for DO: a legal entity - with at least 2 Acredited Energy Auditor - Who is obliged to perform:
- DO - once in 5 years - DO for buildings over 500 m2 - once in 10 years   - Buildings / parts of buildings in case of change of use, of owners or if for rent - Those who apply for Budget Fund for EE 16

17. Products that affect energy consumption
Products that affect energy consumption must: - be appropriately labeled with EE designation - have a technical documentation - special requirements when advertising and selling on distance - meet the requirements of Ecodesign  
EE Designation:
- data on the energy consumption
- visually indicates the EE class
- other important characteristics data 17

18. Sectors: Generation, transmission and distribution of energy
- New and reconstructed plant for generation, transmission and distribution of energy: power, heat and gas   - minimum requirements regarding EE   - EE study - requirement for construction/energy permit (feasibility study for CHP)
Energy distributors apply the tariff system:
- one of the elements are measured, delivered amount of energy price of tariff elements - limited by maximum losses per month, with a bill inform the customer of its energy consumption, the current price of energy, EE measures… report to Ministry annual statistical data on energy delivered to customers: the dynamics of energy consumption, load profiles ... 18

19. Heat energy
Public and other companies in charge of distribution of heat energy are obliged to:
New buildings
Define conditions for the technical documentation preparation which requires installation of the metering equipment of the heating energy supplied for each part of the building representing an independent entity (apartments, commercial units etc.)
Existing buildings
Provide offer to install metering equipment on the heating installation in order to measure the delivered heating energy
In the case that other companies installed heating energy metering equipment, to examine the installed equipment and, if the installed equipment provides correct data related to the real heating energy supplied and provides possibility of notifying the time of energy transfer for each part of the building representing an independent entity (apartments, commercial units etc.), to accept the installed equipment. 19

20. Transportation sector
Cities with more than inhabitants are oblige to adopt programs for promotion and improvement of the public transportation systems and report to the Ministry on the realisation
Local self-government units are obliged to provide, where ever it is technically feasible and economically justified, separate lines for the public transportation vehicles
Define and monitor energy consumption in the road transport by Road Safety Agency 20

21. Control of boilers, heating and ACsystems
Control of boilers and heating systems:
The owners of the boilers with nominal heating capacity more than 20KW
- regular control of combustion process - determination of coeficient of efficiency - undertake measures in order to achieve the nominal values control of the heating system - when the boiler is an integral part of the heating system authorized persons
Control of the air conditioning system: The owners of the building with AC system nominal cooling capacity more than 12 kW authorized persons 21

22. Financing, incentives and other measures
Activities financed: - for the implementation of technical measures - to encourage the development of EMS for entities not obliged by Law - to promote and implement energy audits of facilities, production processes and services - to construct a CHP plant, when investor produced thermal energy and power use for its own purposes - to encourage the development of energy services - to encourage use of RES for power and heat production for own use - and others. 22

23. Budgetary fund
Budgetary fund for the improvement of energy efficiency:   - managed by Minister - RS Government adoptes annual funding program of activities and measures to improve EE
- funds are awarded through open competition and are availableto legal and - individuals - requirement for investment projects - energy audit or feasibility study on EE months after the implementation of the project - a review of energy audit 23

24. Other incentives Tax, customs and other incentives
VAT decreasing for the energy efficient equipment, materials, appliances and technologies
Income tax decreasing for the part of the investment related to the energy efficient equipment, materials, appliances and technologies, as well as energy efficiency projects
Public Procurement - take into account the EE of goods and services - endeavor to supply with such products belonging to the highest EE class - The Minister shall prescribe the minimum criteria in terms of EE in the public procurement 24

25. Energy Services Market
Energy Services - service, technology, managing system, appliances or other goods used in any part of the process of energy use, provided in accordance to the contract and which can contribute to the increase of energy efficiency and energy savings
ESCOs (Energy Service Companies) - company, or other legal body that undertakes energy services which can contribute to the increasing of the energy efficiency of the objects, technological processes and services, and which accepts financial risk for the undertaken services, since their services are paid, fully or partially, through the savings, arising from the implemented measures 25

26. Inspection
Inspection of the provisions of the Law are related to: - energy management system, - performance of energy audits, - energy efficiency labeling - and complying with the minimum requirements of EE
 Inspection is performed by:   - MEDEP through:   electrical inspector inspector of boilers - Market inspectors 26

27. Thank you for your attention!
Republic of Serbia
Ministry of Energy, Development and
Environmental Protection