1. Facts about the GIZ DKTI programme
Objective: To strengthen capacities and create an enabling environment for sustainable use of bioenergy in Serbia
Funded by: German Federal Ministry for Economic Cooperation and Development (BMZ) under the German Climate Technology Initiative (DKTI)
In Cooperation with:
Ministry of Agriculture and Environmental Protection &
Ministry of Mining and Energy
Duration: March 2013 – December 2017

2. Structure of the programme: Cross-cutting theme: Sustainability
Policy advice
Biomass supply
Eff. firewood use in HH
Project development
BioRES
GIZ:
Support to harmonizatio n of laws and regulations to EU standards
Support to policy definition and strategy implementati on
KfW:
Advise to investments in district heating companies.
GIZ:
Support to a promotion of efficient stoves and ovens / firewood drying
Advise to implement efficiency- and emission standards
GIZ:
Advise to the implementatio n of cost efficient and innovative bioenergy projects
Technology and knowlege transfer
GIZ:
Support to the creation of regional Biomass Trade and Logistic centres.
Support local supply chains for biomass.
GIZ:
Support to the creation of a sustainable supply with bio-resources    
Cross-cutting theme: Sustainability

3. Prices can differ depending on location, quality and quantity
Fuel prices for heating in Serbia
Current fuel prices for heating in Serbia without VAT Source: GIZ study and calculation
Prices can differ depending on location, quality and quantity

4. Prices can differ depending on location, quality and quantity
Fuel prices for heating in Serbia
Current fuel prices for heating in Serbia without VAT Source: GIZ study and calculation
Prices can differ depending on location, quality and quantity

5. Sustainable available wood potential: 7 million m³/a ~ 10.500 GWh/a
Total installed heat capacity in public building without district heating connections in Serbia:
~ 900 MW
Sustainable available wood potential:
7 million m³/a
~ GWh/a
Source: GIZ Public Building Overview Serbia 2014

6. "Dušan Radović", "Mlekarska škola", "Sveti Sava" and "8. Septembar"
PROJECT Fuel-switch to Biomass in the existing boiler rooms in schools in Municipality of Pirot
"Dušan Radović", "Mlekarska škola", "Sveti Sava" and "8. Septembar"

7. Präsentationstitel hier eintragen
FRAME CONDITIONS BY MUNICIPALITY
100% fuel switch to biomass no LFO boiler for peak consumptions, or as back-up; Feasibility study done for 2 scenarios LFO + BB and 2BB
Existing storage space for fuels can be used by private partner
Public partner will have the possibility for implementation of energy efficiency measures in building during contract period
Ministry of Education consulted for implementation of the project in high school (jurisdiction)
Future sports hall heat consumption also foreseen
GIZ-representative support as member of commission
Präsentationstitel hier eintragen

8. System instaled capacity (kW)
PROJECT SCOPE
Fuel switch in 4 schools from Light fuel oil to biomass (wood chips)
4 boiler rooms with 2 biomass boilers each
SCHOOL
System instaled capacity (kW)
Primary school “D. Radović“ and kindergarten “Majski cvet“
700 kW
Secodary Dairy school – “Mlekarska škola“
450 kW
Primary school “Sveti Sava“
350 kW
Primary school “8. septembar“
560 kW
TOTAL
2,060 kW

9. Primary school “D. Radović“ and kindergarten “Majski cvet“ 187,220 €
ESTIMATED INVESTMENT
Primary school “D. Radović“ and kindergarten “Majski cvet“
187,220 €
Secodary Dairy school - “Mlekarska škola“
169,565 €
Primary school “Sveti Sava“
150,150 €
Primary school “8. septembar“
167,090 €
TOTAL
674,025 €
Existing boilers in school “Dušan Radović”
source: GIZ
Existing boiler in Dairy school
source: GIZ
Existing boiler in school “Sveti Sava”
source: GIZ

10. PROJECT TIMELINE
Initiation of a PPP Project proposal for the PPP project implementation made at the interested party's own initiative - GGE
Consent of local government's assembly for initiation of PPP supported by GIZ by presenting “own financing scenario”
Establishment of the Project team project leader, energy manager, law expert, financial expert

11. PROJECT TIMELINE Preparing the Proposal for PPP
Feasibility study supported by GIZ: compared solutions ESCO and “OWN”; also two technical scenarios were taken in to account 1 BB existing boiler compared to 2 BB
Model Contract supported by GIZ
PPP Commission application submission
PPP Commission approval
Decision on granting consent and adopting the PPP proposal by the assembly of the local government unit

12. PROJECT TIMELINE Legal Framework for PPP established and doable!
Public call for awarding the public contract for PPP (bid submission deadline 52 days) expected to start by
Receipt of offers and applications, Bid opening, Records for the bidders, Report on the expert assessment of bids (GIZ Commission member) approx. 2nd half of February
Decision on selecting the most favourable bid, Signing the PPP contract
Implementation by 2016 heating season
Legal Framework for PPP established and doable!

13. INCLUDED IN PRICE ARRANGED BY PPP
ESTIMATED SAVINGS
CASH FLOW – ESCO 1 2 3
Total 15 years
Direct savings from fuel substitution
179,918
185,315
190,875
3,346,273
Direct savings on fixed costs
20,000
20,400
20,808
345,868
TOTAL SAVINGS
199,918
205,715
211,683
3,692,142
Heat energy - variable part 38 €/MWh
55,249
56,528
57,837
998,759
Heat energy - fixed part 5 €/kW
145,800
146,808
147,826
2,254,130
Investment costs
INCLUDED IN PRICE ARRANGED BY PPP
Repayment
Other costs related to heating of schools
TOTAL COSTS
201,049
203,336
205,663
3,252,889
ADDITIONAL SAVINGS
-1,131
2,380
6,019
439,253
80 – 180 kWh/a depending on load curve
light fuel oil actually 1.15 EUR/l
fuel price increasing 3% annually
fix operational cost increasing 2% annually
heat energy – variable part increasing 2,3% annually (based on feasibility study)
heat energy – fixed part increasing 0,7% annually

14. Registered Offices: Bonn and Eschborn, Germany
As a public-benefit federal enterprise service provider with worldwide operations in the field of international cooperation for sustainable development, GIZ works together with its partners to develop effective and sustainable solutions.
Publisher: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Registered Offices: Bonn and Eschborn, Germany
DKTI Programme – Development of a Sustainable Bioenergy Market in Serbia
Bože Jankovića 39
11000 Belgrade
Serbia
Rainer Schellhaas
Component Leader Biomass Supply
In Cooperation with