1. Energieeffizienz und Potentiale für den Einsatz erneurbarer Energien in Mazedonien 27./28. März 2009 Vortrag: Prof. Dr. Goran Rafajlovski, Universität Skopje

2. Tema I: E NERGIESICHERHEIT globale Herausforderungen wo stehet SOE Staaten und Mazedonien Tema II: E NERGIEEFFIZIENZ Fall-Mazedonien Tema III: R EGENERATIVE E NERGIE Potenziele für den Einsatz

3. Energy Community treaty Athens October 25, 2005 4. goals and objectives: 1.create a single regulatory space for energy trade and develop Network Energy market competition 2.establish common integrated electricity and gas market Tema I: ENERGIESICHERHEIT globale Herausforderungen

4. 3. Enhance the security of supply of the single regulatory space by providing a stable investment climate in which connections to Caspian, North African and Middle East gas reserves can be developed 4. Improving the e nvironmental situation in relation to gas and electricity, related energy efficiency and renewable energy sources Tema I: ENERGIESICHERHEIT globale Herausforderungen

5. Sustainable Energy Definition: Effectively, the provision of energy such that it meets the needs of the future without compromising the ability of future generations to meet their own needs...... Effectively, the provision of energy such that it meets the needs of the future without compromising the ability of future generations to meet their own needs... Sustainable Energy has two key components: Renewable Energy Energy Efficiency Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien

6. Economy profile positive aspects Modest economic growth 3-6% GDP Low inflation rate < 2% Macroeconomic stability steadily increased Privat sector is growing (share of 65% of GDP) Tax reform to attract FDI coorporate income tax 12% personal income tax 10% abolished reinvested profit tax Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien General Background

7. Economy profile negative aspects Unemploument is excessive 36% (2008) Investment rate < 20% of GDP (last in the Region) FDI flow lowest rates among transition Countries Low living standards GDP is 25% of the EU average Below absolute poverty line - 21% of population Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien General Background

8. Primary Energy Supply Coal 49% and Crude oil 35% 10 % based on renewable energy sources: hydro energy, fire wood, geothermal Import energy dependance 46% Major energy resorce lignite coal Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien General Background

9. Primary Energy Intensity (TPES/GDP) 40% higher level of primary consumption than average level in OECD Countries

10. Total primary energy supply by Fuel 1992-2005

11. Final Energy use: Industry with metalurgy (iron and steel industry)largest energy consuming sector 59% of total energy use Residential sector second largest sector electricity is major energy used including space heating!!! Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien General Background

12. Total Final Consumption by Fuel 1992-2005

13. Total Final Consumption by Sector Structure of energy consumption in Industry by subsector

14. Co2 emmison in sectors

15. New Energy Low adopted in Parlament 2006 1. provide Legal framework for energy market 2. Straightening the legal basis of the independet energy regulator established 2003 Electricity sector restructured - partial privatization Gas sector restructured - advanced privatization Oil sector privatisation completed - competitive mark Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Policy

16. Prices for oil gas and electricity regulated (no direct social subsidies) (electricity price low) Lack of comprehensive Long term Energy Strategy Intensiv Focus on RENEWABLES expecially small Hydro Power Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Policy

17. No Energy Efficiency Low (Strategy Adoptet 2004) - technical regulation, Secondary legislation Limited budget for Energy Efficiency Sustainable Energy Project by: Goverment and Global Enviroment Facilty (GEF) - Aimed: finaced instruments based on maret principal Responsible:Ministry of Economy - Energy Department - Unit energy Efficiency and Renewable Energy Sources ) with limited capacity –one man!!!! Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Efficiency Policy

18. PROBLEMS: 1.Wide use of electricity for domestic heating 2. Inefficient energy consumption in buildings 3. Energy low involved local authorities in planing and imlementation.Howerever bulding relavant capacities is progressing slowly Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Efficiency Policy

19. Onlu through intenational cooperation: 1.Netherlands PSO Programme (3mil EUR) 2.Austrian Develop. Agency ( Solar and geotermal 1.12 mil EUR) 3. Switzerland SECO (energy efficient distribution 1.21.mil CHF) 4. USAID (Energy efficient Strategy 2020) 5. EBRD (power sector reform,industrial energy efficiency project) Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Financing Energy Efficiency

20. Main Opstacles to expand investment in Energy Efficiency and Renewable Energy: 1. Limited access to medium-term financing 2. Lack of expirience of the local financing inctitution 3. Limited development of local energy services industry 4. Low awareness of the economic benefits 5. Low energy prices To adress these barriers Goverment of Macedonia initated some Project: Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Financing Energy Efficiency

21. World Bank Projekts: Sustainable Energy Project (March 2007 to Sept 2010) - Global Enviroment Facility GEF (5.85 mil USD grant) - Macedonian Goverment (2,8 mil USD) - Macedonian finacial intermediaries ? (18.7 mil. USD) - Other local sources ? (6.8 mil USD) Power System HP Improvement Project (closed 2005) - Increase the efficiency and capacity of 6HP, - modern energy management system, - begin distribution losses reduction Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Efficiency Projects

22. World Bank Sustainable Energy Project: Component 1: Market Framework capacity Building in strategic/legislative/Institutional/Technical/Advisory Component 2: Support to Utillity-based Energy Service Company (ESCO) Component 3: Sustainable Energy Financing Facility SEFF co-financing basis with Macedonian Bank for Development Promotion Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Efficiency Projects

23. EBRD Projects: Distribution Grid Efficiency Investmen Project (100 mil.EUR -EVN 50 mil.EUR and IFC 50 mil.EUR) o Upgrade of grid lies and connections o Upgrade of substations and transformers o Roll out of metering Energy Efficiency Improvements in Mittal Steel Skopje (25 mil.EURO) Tema II: ENERGIEEFFIZIENZ Fall-Mazedonien Energy Efficiency Projects

24. o First-generation technologies: hydropower, biomass, geotermal power - (Macedonia) o Second-generation technologies: solar heating, wind power, bioenergy,solar photovoltaics. o Third-generation technologies: (under development): advanced biomass gasification, biorafinery technologies, concentrating solar thermal power, hot dry rockgeothermal energy and ocean energy, Advances in nanotechnology Tema III: REGENERATIVE ENERGIE Potenziele für den Einsatz

25. Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

26. Tema III: REGENERATIVE ENERGIE Energy Balance 2008

27. Legal Framework is the Energy Low (Strategy for Renewable Energy Sources is foreseen for 2009) Goverment considers the constraction of small hydro power plants SHP as great importance Intern.public competition: 60 SHP DBOT 2007; 27 SHP SHP 2009 The GEF/World Bank Sustainable Energy Project is greatly focused on developing the market enviroment for utilisation of renewable energy Tema III: REGENERATIVE ENERGIE Renewable Energy Policy

28. Energy Low stipulates the establishment of preferential tarrifs for electricity sold by preferential producers. Regulatory Commison for Energy (independent body) determinate the privileged tariffs for sale and purchase of electricity generated by renewable energy sources: Hydropower, geothermal energy, biomass and wind energy (but no budget allocation) Tema III: REGENERATIVE ENERGIE Potenziele für den Einsatz Price Policy

31. Hydro 15 to 18% of the annual electricity production comes from HPP 6 big and 22 small one = 540MW capacity Significant potential for SHPP<5MW 400 sites throughout country meeting over 10% of current electricity needs National Power Utility identified 44 potential sites total capacity 176 annual production 645 GWh detailed studies are available Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

35. Geothermal Geothermal energy accounts for 2.4% of the heat production sector 7 main geothermal fields; 18 localities with thermal water; 50 springs temperatures vary from 24-27 to 70-78 oC 15 geothermal projects have been development 1970-80 still in operation but below designed capacity Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

36. Solar Solar energy is being used at a simbolic level for domestic water heating. Solar collectors 11MW=17.000 m2 x 0.7 No PV for electricity production Average solar radiation: high intensity and long duration daily 3.4kwh/m2; annual 1385 kWh/m2 Geographical positon and climate very good potential Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

37. Biomass contributes 5.6% of the primary energy supply used exclusively in domestic sector !!!! 1.3 mil. m3 woodcuttingmass (firewood 80%) biogas, biofuel: high potential low implementation Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

38. Wind Preliminary Atlas of the winds was developed 15 possible location (capacity 25-33MW) were identified Monitoring program of the wind potential 4 location Sveti NIkole, Stip. Bogdanci. Kozuv Norvegian Goverment, ELEM, Faculty of Electrical Engineering Tema III: REGENERATIVE ENERGIE Renewable Energy Potential

40. Small Hydro power Plants Austrian Development Cooperation in Macedonia 1.geothermal system GEOTERMA in Kocani cumulative production of 20 mil m3 thermal water for grenhouses, district heating 2. solar water heaters. Goverment support 500 hausholders with 30% (150,000 EUR budget allocation) Makpetrol Biodissel Plant 8 mil EUR investment; EN 14214 standard; annual capacity 30000 tonnes biodisel. Tema III: REGENERATIVE ENERGIE Renewable Energy Projects

41. Goverment to bridge the gap between energy efficiency policy development and its implementation energy prices should be cost reflective and sustainable exploring opportunities for financing energy efficiency projects through CDM capacity building in local Authorities for implementing renewable and energy efficiency projects supporting information and awareness improving energy performance of buildings no electricity production from PV, wind, biomass....... Tema III: REGENERATIVE ENERGIE Conclusions

42. Carl Cristian von Weizsäcker: Klimapolitik kompatibel machen mit einer marktwirtschaftlichen Ordnung britische Ökonom Nicholas Stern: Schäden eines Klimawandels einen ökonomischen Gegenwert haben, der um eine Größenordnung höher liegt als die Kosten einer stabilisierung des Klimas Tema III: REGENERATIVE ENERGIE Conclusions