• Investment costs of 35 kV network, 400 kV overhead line and the 35/400 kV/kV transformer station including all required equipment and works
• Sum of discounted annual costs of losses in the above listed network elements (power losses) at a predefined discount rate
• Sum of discounted annual costs of wind farm maintenance at a predefined discount rate

• Site visit, identification and analysis of the current site conditions including possibilities for connection of the PV plant to the distribution or transmission system
• Analysis of the existing legal and regulatory framework for construction of PV plants in Serbia with the recommendation of a legal roadmap for the project development
• Market analysis both related to procurement of equipment and works and to selling generated electricity and guarantees of origin
• Technical analysis including disposition of PV panels and calculation of the possible capacity, expected annual gross power generation and expected internal losses assuming that PV plant is constructed with fixed PV panels as well as assuming that PV panels have the tracking possibility i.e., that they are adjustable around an axis
• Preliminary Environmental Impact Assessment of the PV plant
• Financial analysis, including calculation of all investment and operational costs as well as expected revenue for both technical variants of the PV plant, the pay-back period, internal rate of return, ratio of total present value of the annual revenue and expenses and expected total present value of the profit during lifetime of the PV plant, and recommendation of the best investment decision for the investor
• Sensitivity analysis of the recommended technical concept in order to determine whether the proposed technical solution remains economically justified in case of changing of some of significant parameters like investment costs, lifetime, discount rate and market prices of electricity and guarantees of origin

OBJECTIVE 1: IMPROVED ENERGY EFFICIENCY AT THE MUNICIPAL LEVEL

OBJECTIVE 2: INCREASED USE OF RENEWABLE ENERGY RESOURCES

• Legal and Regulatory Framework for increased use of RE improved
  Landscape analysis of Serbian compliance with EU regulations in the energy sector, provision of technical assistance to government actors to review, draft, and promote necessary changes to the legal, regulatory and taxation environment to facilitate RE solutions.
• Net metering and related policies introduced and a roadmap for implementation is approved
  Written analysis of strategies, policies, and regulations needed to support net metering and expansion of renewable energy development; assist in drafting the relevant bylaws for net metering policy for the new Law on Renewables, which was adopted in March 2021. Ensure coordination of information exchange and collaboration between stakeholders and implementing organizations in the development of net metering policies.
• Modern RE technologies – including in forecasting and energy management - introduced and utilized
  Support private sector businesses involved in the development or installation of renewable energy technologies.

• Inspect existing and new planned facilities and sites. Collect all available information
• Analyse and evaluate existing studies, proposed measures for rehabilitation of DH boiler plants, equipment, distribution pipelines and heating substations
• Preparing investment plans for select DH companies, including related costs, benefits and priorities
• Review and approve contractors design of work
• Perform site supervision on a permanent on-site basis, supervise work of contractors on construction of facilities, review contractors claim
• Control of work schedule, prepare progress reports, the quality of works and compliance with environmental, social requirements
• Inspection of contractor(s) compliance with applicable environmental, social and EHSE requirements
• EHSE monitoring (together with the HSE-Expert) during the whole construction and implementation phase
• Participation in FAT and equipment delivery inspections
• Incidental services during the Defect Liability Period and in the event of Contractor claims
• Review commissioning programs, attend commissioning tests and prepare reports
• Review and approval of as-built documents
• Implementation of the web-site for this Project

• Sub-assignment 4: Technical expertise in field of renewable energy

  (The main purpose of this assignment was to identify existing barriers for construction of biogas fired power plants, particularly related to: acquiring the right to construct the plant i.e. obtaining od the construction permit and acquiring the approval for connection of the plant to energy network.)

• Sub-assignment 5: Reducing Barriers to Accelerate the Development of Biomass Markets in Serbia

  (Perform the analysis of national incentives measures and activities in competence of the Ministry of Agriculture, Forestry and Water Management in view of investments in renewable energy (RE) projects in agriculture; Elaborate the Guide for investments in agricultural holdings/enterprises for the construction of RE facilities in line with the content and provisions of the IPARD Programme, as well as of the relevant laws and by-laws; Capacity building for representatives of local self-governments and Government (including representatives of Agriculture Extension Services) and agricultural producers)

• • Sub-assignment 7: Removing Barriers to Promote and Support Energy Management Systems in Municipalities throughout Serbia

  (Elaboration of Guidebook for procurement of electricity and electricity cost optimization in public buildings and facilities to be adopted by the MME and recommended to all public budget users (content of Guidebook: General Information on Electricity Market in Serbia, Final electricity customers, Cost optimization, Public procurement of electricity, Electricity and/or cost saving measures, Check list and algorithm for analysing potential for cost optimization and implementation of energy and/or cost saving measures);

• (Better) understand the environmental and social risks in its portfolio;
• Evaluate, mitigate and monitor these risks on a structural basis
• Comply with KfW’s conditions to ensure funding and business possibilities
• Identify potential financing opportunities
• Achieve a good reputation among clients, investors and other stakeholders.

• Design internal E&S checklist (hydropower, biogas, biomass)
• Design internal E&S revision document
• Draft requirements for external E&S due diligence
• Train E&S Coordinator on E&S DD through on-site assistance

• Critical revision of the Elaborate on the justification of correction of feed-in tariff with high-efficiency CHP on natural gas
• Overview of the methodology for defining the initial feed-in tariff
• Defining the initial feed-in tariff for privilege power producers that have acquired the status in accordance with Regulation 99/2009 at the time of entry into force of Regulation 56/2016
• Drafting Proposal of Decision Regulation on amendments to the Regulation on the requirements and procedure of acquiring the status of a privileged producer, preliminary privileged producer and producer from renewable energy sources

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical and legal documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank, is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics

• Review the Energy Law and corresponding decrees and make assessment whether it is possible and realistic that Investor obtains the preliminary privileged power producer status until the end of 2018 and, if not, whether it could be achieved later and whether supporting scheme vie feed-in tariffs is expected to be extended
• Fill-in the application for preliminary privileged power producer status on behalf of the Investor, instruct Investor regarding preparation of necessary documentation and assisting in submitting of the application
• Review of the entire legal documentation for SHPP Tošin kamen including obtained approvals, permits, licenses, statements and contracts that regulate rights for land use and reporting to the Investor on any possible issue for future construction of the SHPP

• Simplified Energy Audits: implementation of simplified' energy audits for relevant non-standard investments which cannot be assessed with the energy calculation tool
• Impact Analysis: Random impact analysis of standard and non-standard EE investments and determination of actual achieved impact

• Preparation of “eligibility” report - If necessary, The Bank will ask Technical Consultant to make initial checking of the Project, which might include initial meeting with potential investor, checking of available documents, analysis of certain documents, preparation of “eligibility” report and other activities which the Bank evaluates as necessary
• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage to verify their eligibility and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyse the following aspects/items: review of technical and legal documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted for each project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics.

• Development and construction of the biomass fired Combined Heat and Power Plant Padinska Skela, construction of necessary heat distribution network and connecting infrastructure to the existing power distribution system
• Heat production from biomass for heating of public buildings in the Padinska Skela settlement (elementary school "Olga Petrov" and mental hospital "Laza Lazarevic") and two greenhouses within agricultural company PKB.
• Generation of ‘green’ power and subsequent sale to the Public Supplier
• Rehabilitation of public buildings to be heated in the Padinska Skela settlement in order to increase their energy efficiency
• Continuation and intensification of the policy dialogue within the ‘Donor working group on energy’ (including participation of the Serbian Government) in the field of renewable energy with the goal to facilitate a replication of this pilot project
• Capacity Building

• Sub-assignment 1: Work scoping and prioritisation
  (Preparing, attending and assisting discussions with beneficiary entities in Serbia, reviewing expressions of interest for REEP Plus technical assistance, drafting of terms of reference and developing associated budgets and liaison with project team)
• Sub-assignment 6: Further assistance in implementation of Article 7 obligations of Serbia under EE Directive
  (Local liaison (including facilitation and attendance at kick-off meeting and workshop for Phase 1B), assistance with developing and reviewing outputs by the team of experts, and other ad-hoc support in completing tasks as requested)
• Sub-assignment 7: Secondary legislation implementing the EPBD in Serbia
  (Setting Minimum Energy Performance Requirements for new and existing buildings using method of optimal costs including defining typical types of buildings and their referent representatives, defining possible EE/RE packages, calculation of net primary energy demands of reference buildings, calculation of global costs for each reference building and each EE/RE package, identification of the cost optimal MEPS)

• Task 1: Assist MoME in Raising EE/RE Awareness in Serbia and Support MoME in Project Implementation
  • Subtask 1.1: Establishing a platform for exchange of EE/RE information between MoME and the financial institutions
    • Identification of an appropriate platform for information exchange
    • Identification of adequate focal points in Serbian financial sector for EE/RE information exchange
    • Organization of measures and events of EE/RE information exchange
  • Subtask 1.2: Assisting to MoME in organization of EE/RE awareness raising events in Serbia
    • Identification of adequate subjects for EE/RE awareness raising
    • RDevelopment of an awareness raising strategy
    • Assisting to MoME in implementing / organizing awareness raising activities
  • Organizing and moderating regular meetings between MoME, the Bank and KfW
  • Supporting MoME in reporting on the project progress to KfW
• Task 2: Training of the Bank’s Staff to Raise EE/RE Awareness and to Understand the Specifics of the New Loan Product
• Task 3: Assisting to the Bank in Development of a Pipeline of EE/RE Investments, Conduct of Eligibility and Verification Checks, and Monitoring and Reporting Requirements
• Task 4: Supporting the Bank in Marketing of the New Loan Product

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical and legal documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank, is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics.

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical and legal documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank, is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics.

• Staff Training, Analysis of Portfolio and Market Screening;
• Energy Audit Services and On-Going Consultancy Support

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank, is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions;
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics.

• Call-off 1: Regional Prioritisation of country assignments
  • The overall aim of Call-off 1 was to describe the Priority Assignments for further policy assistance to be provided by the Consultants within the scope and budget of the Framework Assignment.
• Call-off 2: Support for transposition of the Energy Performance of Buildings Directive 2010/31/EU (EPBD) requirements for Serbia
  • The aim of this sub-assignment is to assist Serbia to develop a subset of the secondary legislation, regulations and guidelines necessary for the transposition of the EPBD (Energy Performance of Buildings Directive (Directive 2010/31/EU)). Specific outputs that should be drafted and delivered within this sub-assignment are Rulebooks on inspection of heating and air condition systems.
• Call-off 3: Support for the development of public energy efficiency procurement policies, guidelines and codes
  • The aim of this sub-assignment is to assist Serbia to further develop their energy efficiency procurement frameworks to ensure consistency with both existing obligations and those that are likely to be adopted in relation to the Recommendation on the Implementation of Directive 2012/27/EU. ESG has also performed a Cost-Benefit Analysis on whether it would be economically justified to introduce the minimal criteria of EE into public procurement procedures of a number of selected products.
• Call-off 7: Assistance to the Ministry of Mining and Energy of Serbia regarding alternatives to heating system inspection
• Call-off 13: Assistance to the Ministry of Mining and Energy of Serbia regarding energy efficiency obligation schemes for utility providers

• General introduction to potential for energy savings/CO ₂ emission reduction potential measures for SME sector
• Presentation of most common standard and non-standard EE measures for the SME sector
• Case studies and sample EE projects eligible for GGF financing (eligible EE projects implemented in the SME sector in Macedonia
• Patterns of clients (most common EE measures according to sector, etc.)
• How to define in which cases Energy Audits are needed
• EE product sales training session (for SMEs)

• 02/2013 – 06/2013
• 06/2015 – 07/2015
• 02/2017 – 03/2017

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment

• Consultancy services to the UCS including staff training, marketing, monitoring and reporting as well as identification of potential projects
• Consultancy services for projects applicants including technical and financial project preparation, preparation of bankable documents (e.g. investment proposals, eligibility reviews, due diligences, energy audits, verification reports, etc...) and financial administration of the loan.

• Technical due diligence - The Consultant will conduct detailed technical assessments of projects at their due diligence stage and thus to support Bank’s investment decisions. In particular, the Consultant will review and analyze the following aspects/items: review of technical and legal documentation, review of project costs and agreements, financial evaluation of the project, on-site visit results and risk assessment
• Construction monitoring - On Bank’s behalf and prior to a disbursement of the next tranche to the developer, the Consultant will monitor the construction to confirm that the project, which is financed by the Bank, is being implemented as designed. Finally, the Consultant will provide the Bank with a disbursement clearance for each trance. In particular, the Consultant will review and analyse the following aspects/items: overview of payments, construction progress update, compliance with the investment budget and the next tranche withdrawal and conclusions
• Ex-post verifications at the end of the construction phase - ex-post verifications shall be conducted project once it is fully implemented to verify the expected impact and the appropriate implementation of the project. Content of the verification report should include: fulfilment of obligations from last progress/monitoring report, completeness check, legal documentation assessment and verification of characteristics

• Composition of gas applications market - An influence of intertemporal and seasonal demand in regard to the optimal dimension of the distribution network.
• Efficiency and quality of gas service - A review of cost and quality of service data in a select number of distribution companies in order to test the hypothesis that economies of scale cannot be achieved with so many small operators and the current market structure imposes unnecessary costs on consumers.
• Resource availability at distribution company level - The review of the human and financial resources situation at distribution level in a qualitative and, where possible, quantitative manner.
• Financial health of the distribution sector - The ability of small distributers to operate on financially sound terms is important to be clarified in view of the future direction of the sector.
• Benefit from retail competition - A better understanding of the full potential benefits from competition in terms of better outcomes in price and quality for Serbian businesses and households is needed in the discussion about consolidation.

• Review of technical parameters of biogas facility with assessment of annual electricity and heat production
• Financial analysis including profit and loss account, financial flow and dynamic economic flow
• Conclusion on assessment of the project eligibility for financing

• Energy audits for verifying energy savings and reduction of CO ₂ emissions via non - standard EE measures the bank is going to finance (up to 25 simple and up to 5 detailed energy audits).
• Holistic energy audits dedicated to identification of most promising EE measures including necessary technical descriptions and economic estimations (up to 10 holistic energy audits).
• EE/RE trainings for the bank staff consisting of general introduction on EE/RE, eligible projects for financing from this credit line, case studies and typical patterns of clients (up to 5 trainings).
• On-going consultant support to the bank and its clients (up to 10 days quarterly).

• Meet with relevant stakeholders in Montenegro
• Develop presentation materials
• Implement the workshop session including moderation of the discussions. The key topics of the workshop session provided by the consultant were as follows: General introduction to EE/RE; Current EE/RE projects and initiatives in the country; EE opportunities according to economic sectors and client segments; Challenges in financing RE projects and Latest trends in the regulatory framework.
• Provide a brief report summarizing the most relevant aspects of the workshop session, including feedback from the participants.

• Technical expertise in the field of SHPP engineering (hydrology, design, geology) and local expertise in the area of power sector regulation
• Country specific information about Serbia and Montenegro relevant for the technical and legal manual that shall be prepared
• Support in organisation and implementation of training sessions to be provided to selected banks in Serbia and Montenegro including necessary support in assessments of the first three SHPP projects selected by banks

• Expected off-takers and market size including
  • Assessment of possible market for the geothermal energy i.e. for both electricity and heat sales
  • Assessment of market pricing
  • Assessment of possible development of market size and price based on realistic market trends.
• Electrical Grid connection including
  • Assessment of potential electrical grid connection points and grid compliance for the power plant
  • Assessment of possibilities to evacuate the future power generation through the national grid and realistic capability and conditions of the local electrical net
  • Review of the existing PPA and propose necessary changes in order to ensure reasonable protection of privileged power producers
• District heating connection including
  • Assessment of the local district heating network and market for heat sales from the Geothermal Power Plant
  • Drafting of the Heat Sales Agreement.
• Legal, Regulatory and Tax Framework including
  • Description of the legal, regulatory and tax framework in Serbia concerning utilization and management of the geothermal resource, heat production and power generation
  • Presentation of necessary steps for successful permitting, construction and operation of a Geothermal Power Plant in Serbia
• Infrastructural conditions including:
  • Visit to the site and identification of existing infrastructural conditions for construction of a geothermal power plant
  • Description of advantages and disadvantages of the existing infrastructure for construction of a geothermal power plant.
• Land ownership status including:
  • Description of all real property owned, leased, occupied or potentially used and proposed by the Client or in which the Client has any interest, including rights of pre-emption
  • Creating the list with names and identification data of owners, full addresses of the properties, approximate areas, duration of any lease or similar arrangement in relation to the property, current purpose of land according to relevant urban planning acts, etc...
  • Providing the up-to-date Land Book Excerpts issued in relation with to the Properties.
• Topography including
  • Presentation of the topography survey, examination and mapping of the available land plots for geothermal power plant locations
  • Presentation of up-to-date cadastral maps to overlap technical design with the topography documentation.

PART A includes the following tasks:

• Task A.1
  • Subtask A.1.1: Collecting available data on geothermal potential in Serbia and review of the draft subtask report
  • Subtask A.1.2: Provision of information on existing utilisation of geothermal resources in Serbia and review of the draft subtask report
• Task A.2 – Feed-in tariff development for combined use of geothermal energy and biomass, review of existing feed-in tariffs for pure biomass and pure geothermal energy including organization of the workshop and preparation of the report with the proposed feed-in tariff system;
• Task A.3 – Review of the proposed methodology for sites selection and data collection (technical data, data for calculation of heat demand, map of transmission system, infrastructure, proximity and availability of biomass, area maps from ministries), site visits for data collection and making photos
• Task A.4:
  • Description of current state of chosen sites regarding existing infrastructure, type and purpose of the land with geothermal well, access roads, historical and cultural monuments
  • Land ownership issues for each site
  • Review of drafts prefeasibility studies

PART B consists of the following:

• Task B.1
  • Subtask B.1.1 Provision of available data and studies on CHP potential and subtask report providing analysed and systematised information about existing data and studies on CHP potential
  • Subtask B.1.2 Provision of analysis of the potentials for CHP, including possibilities of conversion of existing heat-only plants to CHP production as well as possibilities for construction of new CHP plants and subtask report with identified CHP potentials in Serbia;
  • Subtask B.1.3 Review of the subtask report on strategic objectives of Serbia for increasing the share of CHP in the energy sector, proposed set of legal, financial and technical measures and identification of potential barriers
• Subtask B.2.1 Review of the proposed methodology for sites selection and collecting existing technical data on heat demand, access to the high voltage transmission system, infrastructure, and site visits for data collection and making photos
• Subtask B.2.2
  • Description of current state of chosen sites regarding existing infrastructure, type and purpose of the land, access roads, historical and cultural monuments
  • Land ownership issues for each site
  • Technical conditions for the development of DHS and forecast of energy/heat demand
  • Evaluation and condition assessment of the existing heating facilities (if necessary)
  • Legal, regulatory and institutional review with guidelines for the construction of the plant
  • Review of drafts prefeasibility studies

• Sub-assignment 1: Support for intensification of renewable energy investments in Montenegro

  ESG was involved in implementation of Task 6 of this sub-assignment that dealt with issues related to connection of power plants using renewable energy sources to the transmission and distribution networks
  ESG reviewed existing and identified missing requirements and regulations for connections of power plants based on renewable energy technologies to power grids. The issue of the connection charging regime was discussed with the distribution company and other stakeholders. The extent to which charges reflects costs was assessed. Assessment of the grid operation obligations placed on RE connections, their applicability and the impact of those rules on the cost of developing an RE generator was also performed. The output was a report recommending connection rules, operation rules and charges for small RE generators.

• Sub-assignment 2: Support the Ministry of Energy and Mining of Serbia in creating of the legal framework for the use of renewable energy sources

  There were 4 tasks within this sub-assignment. These tasks were dedicated to the review of the draft new Energy law, drafting the chapter of the new Energy Law dealing with renewable energy sources, assessment of the impact of the proposed national goals related to renewable energy sources on consumers’ electricity tariffs and the possibility to use renewable energy sources for heating and cooling.
  ESG was responsible to lead implementation of first two tasks and was involved in implementation of two others.

• Sub-assignment 6: Power Network Analysis for Wind Power Integration in Montenegro

  The specific objectives of the sub-assignment were (a) to determine the appropriate levels of wind power capacity which may be connected to the national grid and appropriate operational and technical parameters for management of such connected capacity, and (b) to identify whether investment was needed to strengthen the national grid in order to increase the capacity of wind power which could be connected (or to increase the capacity of wind power in certain locations where wind power developments were likely to be concentrated), and if so, what investment was required
  ESG was involved in implementation of the second task dealing with the power grid technical diagnosis i.e. was responsible to draft a part of the Grid Code dealing with connection and operation of wind farms

• Sub-assignment 7: Review of bylaws required by the Energy Law of Montenegro

  The Energy Law of Montenegro, adopted in 2010, gave the obligation to the Ministry of Economy to prepare the following bylaws regarding RES:

  • Bylaw on the use and types of RES
  • Bylaw on the guarantee of origin
  • Bylaw on the privileged power producer
  • Bylaw on feed-in tariffs for electricity generation from RES
  • Bylaw on support mechanisms for producers from RES and co-generation
  The Consultant (ESG) reviewed the working drafts of the by-laws to the Energy Law as prepared by the Department and assessed their compliance with the Energy Law and relevant EU regulations and EU practices, as well as their suitability for achieving the objectives of the Energy Law regarding the promotion of RES. Necessary changes were recommended directly in the text of bylaws

• Sub-assignment 9: Support in development of feed-in tariffs and other incentive measures for RES based power generation and heat production in Montenegro

  ESG supported the team leader on the design of FiTs, the development of a methodology for calculation of FiT for RES based electricity generation (as proposed in the relevant regulation as considered in Sub-assignment 7) and particularly on how the proposed measures should be incorporated into the relevant by-law. ESG reviewed the proposed tariffs as supplied by the task leader in order to ensure the compliance with the relevant bylaw. ESG also lead an investigation of possibilities for implementation of a support mechanism for RES in heating and cooling by taking into account the existing situation and legal framework in Montenegro, potential for various RES use and the practice/experiences in countries in the region or any relevant EU countries.

• Sub-assignment 13: Development of the model PPA for three countries in the region

  ESG was expected to review the draft of the PPA prepared by other consultants and advise on specific issues related to Serbia.

• Sub-assignment 17: Updating of the existing feed-in tariffs for RES based power generation and development of incentives for RES based heat production in Serbia

  The general objective of this sub-assignment was to provide technical assistance to the Ministry of Ministry of Infrastructure and Energy of the Republic of Serbia in improvement of the economic instruments for support of electricity and heat production from renewable energy sources. More specifically, the Consultant was required to support the Ministry in:
  • review of the methodology for setting feed-in tariffs (FiT) for electricity from renewables and cogeneration
  • calculation of appropriate levels of FiTs for electricity from RES and cogeneration using revised methodology and available data on projects and technologies
  • development of a calculation methodology or methodologies for setting economic incentives for heat production using RES with appropriate databases
  • setting the amount of compensation for heat production from RES in accordance with proposed methodology
  • understanding of experiences of other European countries from implementation of FiTs for electricity from RES and economic incentives for production of heat from RES and for CHP
  The sub-assignment consisted of two tasks.
  Task 1 was the preparation of feed-in tariff (FiT) calculation methodology for electricity generation using renewable energy sources (RES) and from combined heat and power (CHP) production. The parts of the task that ESG lead were

  • Background descriptions (on Serbia’s energy sector, RES policy, RES technologies etc),
  • Development of the heat incentives methodology
  • Calculation of compensation for heat production for all technologies specified in the TOR, including collecting and preparing all relevant data as input to the calculation
  Task 2 was the development of incentive measures for heat production from renewable energy sources with the calculation methodology. ESG was responsible to lead the following parts of the task

  • Background descriptions (on Serbia’s energy sector, RES policy, RES technologies etc),
  • Development of the heat incentives methodology
  • Calculation of compensation for heat production for all technologies specified in the TOR, including collecting and preparing all relevant data as input to the calculation.

• Sub-assignment 19: Drafting the Study on possibilities for implementation of EE projects based on the ESCO concept in the region

  The objective of the Sub-assignment was to provide the EBRD with a good understanding of the legal framework, relevant actors, existing situation in ESCO market, major barriers, and possible EE projects based on the ESCO concept in the region of Western Balkans. This good understanding was required for preparation of a future financing mechanism and related TA assignments
  The primary role of ESG was to draft the reports for Serbia and for Montenegro in line with the general ToR.

• Gathering of the most recent data on the necessary investments in the construction of SHPP Ćelije and HPP Novi Bečej, especially investment in electromechanical equipment and construction works
• Inovation of the existing Elaborate of building SHPP Ćelije using updated information on investments, feed-in tariffs and market prices of electricity and transforming it into a part of Prefeasibility Study along with General Project defined by Regulation of energy permits issuing
• Inovation of the existing Elaborate of building HPP Novi Bečej, using updated information on investments, feed-in tariffs and market prices of electricity and transforming it into a part of Prefeasibility Study along with General Project defined by Regulation of energy permits issuing
• Preparation of Request for information on location for SHPP Ćelije and HPP Novi Bečej
• Preparation of requests for reviews of the authorized system operator about connecting these hydro power plants to the existing power grid
• Preparation of exepmles of statements acceptable by authorized Ministry which should be issued by the investor's bank
• Filling in the forms necessary for requests to the authorized government institution for energy permits for SHPP Ćelije and HPP Novi Bečej

• Preparation of prefeasibility studies for building wind power Čibuk1 and Čibuk 2 in the form required for application for permit to Ministry of Infrastructure and Energy of the Republic of Serbia
• Preparation of general designs for both wind farms , memos to authorized institutions to obtain prior opinion and application form for energy permits issuing

• Defining a set of criteria and ranking methodology that should be used in selecting small and medium enterprises for the implementation of preliminary energy audits
• Large number of potential candidates has been ranked and four clients of each bank have been determined for preliminary energy audits
• Energy audits were carried out in eight companies in which was defined which EE projects should be conducted, including all the appropriate EE measures, eligible investment costs and expected energy savings
• A survey was conducted to define typical, the most effective energy efficiency measures for the household sector in Serbia and Macedonia in order to establish special-purpose credit line for financing such projects

• Definition of role and responsibility of each party (City of Belgrade, PKB, District Heating Company of Belgrade ‘Beogradske Elektrane’ (BE), Power Utility of Serbia (EPS), Ministry of Infrastructure and Energy, Vinca Institute, school, mental hospital, suppliers, implementation consultant, Central European Initiative (CEI)).
• Definition of institutional and implementation aspects
  • Definition of the required institutional arrangements for the sustainable operation of the plant (ownership, contractual arrangements, etc...).
  • Definition of the project management structure and identification of the key persons in the City of Belgrade and PKB (roles and responsibility of the project steering committee and the project coordination team)
• Drafting of an organizational chart and a diagram illustrating the flow of money and services.
• Discussion with PKB, VINCA and City of Belgrade on updating of the old business plan and adding of the energy efficiency component into all calculations. Give recommendation on which partner will perform this task

• Market analysis (identification of manufacturers and distributors of equipment for projects using solar energy, assessment of potential needs for solar – thermal systems, estimations of solar energy use for production of thermal energy)
• Analysis of existing legal framework and incentives
• Supervision of works on equipment installation within the pilot project
• Analysis of existing trainings in the area of solar energy use

• Review the existing situation in EPS
• Review of EPS’ procurement capability
• Review of Project scope and implementation capability/ implementation planning
• Prepare the Environmental Due Diligence of the Project
• Draft the Environmental and Social Action Plan for the Project

The EXPERT will perform the following activities:

• Prepare necessary meetings and field visits in Serbia.
• Revise findings of the Team Leader and provide a report analysing the following aspects
  • Local regulations constraints and obligations for Smart Metering implementations
  • Assessment of EPS organization capabilities to perform a mass implementation project
  • Communications constraints and costs in Serbia
  • Implementation strategy
  • Legal hints in terms of social, health, and environmental regulations to take into account
• Assist in determining the key issues that must be remarked for the Implementation Project successful completion

• Selection of 10 private companies that would participate in the pilot project and preliminary energy audits of chosen companies. For every company a report on possibilities to save energy should be prepared. Companies should be ranked, from those with significant potential to save energy, by implementation of proposed measures for increase energy efficiency, to those with less potentials
• Preparation of a report about recommendation – possibilities of wider application of conducted preliminary energy revisions and needs for legislation improvement in order to improve energy efficiency

• Prepared Construction study of SHPP Stalać. Within this study detailed variant techno - economical analysis was made. That implies that all investment and operational costs are determined, as well as expect ed revenue for at least 20 possible variants – installed capacity of SHPP. That included analysis of all fixed and variable costs like: administrative costs, costs of design, infrastructure building costs, costs of proposed equipment and technology, operat ional costs, manpower costs, maintenance costs, remoteness of SHPP location from electricity infrastructure – costs of connection to existing power grid. Overall annual revenue is calculated by using price for privileged power producers. Within the variant analysis (cost/benefit) pay back period and internal rate of return are calculated, after that ratio of total present value revenue and expenses is determined, as well as expected total present value of profit during lifetime of SHPP for every analyzed values of nominal installed capacity of SHPP. In analysis were used different values of discount rate, that should indicate different levels of risk to invest in energy sector of Serbia. Based on variant analysis optimal parameters of SHPP were defined, turbine type, optimal installed discharge, optimal gross water rate1`, and optimal nominal power of SHPP and calculated annual usage in hours as well as expected annual production of SHPP. After that sensitivity analy sis of optimal variant was made, where it was determined if proposed optimal variant is economically justified in case of changing some of significant parameters like lifetime, discount rate, and electric power prices.
• Obtained necessary forms and assis ted to Investor with filling in them, checked whether the Investor completed necessary documentation and on behalf of the Investor submitted request for obtaining energy permit to responsible state institution

• Define a global procedure for construction of SHPPs, including detailed procedures for obtaining of the energy permit, the construction permit, and for construction itself, connection to electrical grid and obtaining the license for power generation. ESG defined all data needed to get energy permit for construction of SHPP, regarding the location, facility, and required general and financial information about the Investor. Risks that Investor may face with during the procedure of obtaining necessary permits were particularly highlighted, list of laws and secondary legislations which regulate this procedure were given, possible uncertainty in the process of obtaining of license were highlighted, and ways to overcome and mitigate all risks were proposed

• Preparing the draft Law on rational use of energy
• Making of a comprehensive Heat Market Study that includes regulatory, tariff, legal and financial information about the heat market and district heating systems in Serbia

• Carry out visits of 4 locations and obtain documentation needed to asses the attractiveness of locations for construction of SHPPs. The report contains advantages and disadvantages about locations particularly regarding problems and risks that can not and those that can be resolved, and an estimation of time needed to solve those problems. Locations where activities on obtaining necessary permits are meaningful and locations where further activities should be cancelled are clearly identified in the Report
• prepare Construction studies for 2 chosen (SHPP Beli kamen i SHPP Rogopeč) out of 4 analyzed locations, and to collect other documents needed in the process of obtaining energy permits. Requests were submitted in a proper form and energy permits were obtained for both SHPPs. In addition, the Business plan for construction and operation of SHPP Beli kamen was made in accordance with the form and content that international banks, particularly EBRD, require

• Legal procedure for constructing of PSHPP Bistrica

  The ESG defined the global legal procedure for construction of PSHPP Bistrica including acquiring of the energy permit, construction permit, approval for connection to the transmission system, and license for electrical energy generation

• Construction study of PSHPP Bistrica in the form required for energy permit issuing

  ESG visited the site which is planned for construction of PSHPP Bistrica, and identified its real characteristics, gathered available hydrological data, and determined possible height difference i.e. the gross water head. It is particularly underlined if any transportation or residential infrastructure exists in the region of the future reservoir, whether it would be in danger and whether its displacement would be needed. According to existing and collected data about the location for PSHPP Bistrica, ESG prepared the Construction study in the form required by the relevant regulation of the Ministry of mining and energy. A detailed techno - economical analysis of possible options was performed within the Construction study. In the cost/benefit analysis ESG calculated the payback period of the investment, internal rate of return, net present values of the total revenue and the total costs, as well as the NPV of the expected total profit during the lifetime of the power plant. ESG made sensitivity analysis of the proposed optimal concept for the power plant i.e. determined if the defined option is economically feasible in case of significant changes of important parameters like the total investment, lifetime, discount rate, electric ity price, etc.

• Application for obtaining of the energy permit

  ESG prepared and filled the requirements for issuan ce of opinions by the responsible operator of the transmission system, institutions responsible for urbanism and definition of the land purpose, as well as the application for issuing of the energy permit.

• Techno - economical analysis, that was used as a base for calculation of the optimal installed capacity of condenser batteries
• Allocation of the overall calculated condenser batteries, to busbars 6 kV and to busbars 0.4 kV, allocation of of the total amount intended for installa tion to 0.4 kV on sections of low voltage basburs, as well as the number and unit capacity of condenser batteries at every busbars’ section.
• Detailed specification of necessary equipment, needed for easy purchasing of equipment, with approximate prices of all fundamental components including expenses for installation.
• Graphical part used to facilitate installation and connection of equipment, then testing and commissioning, as well as for later maintenance of equipment

• Decree on conditions for acquiring the status of privileged power producer and criteria for evaluation of their fulfillment
• Decree on a privilege d producer status at the electricity market
• Decree on incentive measures for generation from privileged power plants

• Energy Saving Group defined a global legal procedure for the construction of the CHP until its commissioning, which includes obtaining of an energy l icence, approval for construction, approval for connection to the power grid and licences for generation. ESG presented separately a detailed procedure for obtaining the energy licence for the CHP construction and defined all required data regarding locati on, the facility, construction deadlines, as well as general and financial data on the Investor. ESG provided a list of laws and secondary legislation acts taken into account in this procedure, stressed out possible unclear issues in the licence issuance p rocedure and proposed to the Investor a method for overcoming or mitigating such issues.
• Energy Saving Group conducted a comparison of all previously proposed solutions ( Energoprojekt, Faculty of Mechanical Engineering, Parsons and Tehno - biro), determin ed the status of the infrastructure at the location and collected all relevant information. Based on conducted comparative analyses, collected data and findings on up - to - date technological possibilities, the following three options for the CHP construction were defined
  • co - generation facility with maximal utilisation of the existing infrastructure, such as the building, boilers and power distribution, i.e. minimal additional investment costs
  • co - generation facility corresponding to the envisaged increase of heat consumption, while taking into account the existing infrastructure, but without introduction of rigid limitations for this purpose
  • co - generation facility with steam turbine, i.e. a construction of a power plant with gas - steam cycle
• Energy Saving Group carried out a technical - economical analysis for each of three defined construction options. Each option had determined relevant economic indicators, such as simple payback period, internal rate of return (IRR), total present values of costs (C) and benefits (B), the ratio B/C and difference (B - C), i.e. total envisaged profit during a lifespan. Based on the calculated economic indicators, Energy Saving Group proposed the optimal option for construction, i.e. optimal conceptual design of the CHP Novi Beograd
• Energy Saving Group prepared a Study on CHP Novi Beograd construction in the form required for issuance of energy licence. A detailed techno - economic analysis was carried out for a conceptual design selected by the Investor. This includes determination of all investment and operating costs, as well as expected annual revenue from electricity and heat sale. The analysis of all fixed and variable costs is included to, encompassing the following: administration costs, design costs, costs of co nstruction of a necessary infrastructure, construction works costs, purchase and installation of equipment costs, as well as connection costs to the existing power grid, and operating costs, which include labour force costs and maintenance costs. Total an nual revenue is calculated by applying the electricity price which can certainly be provided at the regional market (for example, Italy, Slovenia, Croatia, Hungary...), but also by applying the heat price which can be expected at local market. Within the cost/benefit analysis, the Energy Saving Group determined the investment return period, internal rate of return, ratio of total present values of costs and benefits, as well as expected total present value of profit during a lifetime of a power plant of 40 years. The analysis applied an adequate discount rate, which should point out to the risk level present in the investment in power facilities in Serbia. Energy Saving Group carried out the sensitivity analysis of a proposed solution, i.e. it determined whe ther the project is economically viable even in case of changes of significant parameters, such as envisaged investment costs, electricity price, heat price, lifespan of the power plant, discount rate, etc
• Energy Saving Group prepared and filled in req uests for issuance of required positions of the relevant transmission system operator, institutions in charge of city planning and for definition of acts on land purpose, as well as a request for issuance of energy licence

• Treasury function established and operating and rules and codes prepared for the new accounting system.
• Strategic issues identified, implementation plan and associated actions developed.
• Management Information System (MIS) developed and implemented
• Internal audit function established and operating
• IT tools for the capacity allocation system implemented.
• Asset management and maintenance planning developed.
• Fully operational Market Operator.
• Human Resources Unit established within EMS.
• Proposals developed for the organization of the telecommunication subsidiary.

• Primary resource of the wood waste supply analysis
• Wood waste management
• State of wood waste biomass technologies applied in Serbia
• Pre-production logistics
• Production process and post production logistics to market
• Current wood waste biomass utilization in Serbia such as space heating in households and buildings (pellets and briquettes), co - firing with fossil fuels in heating systems, production of electricity using wood waste and other applications
• Current and expected demand for wood waste products in Serbia
• Current and expected local market competitiveness of wood waste fuel products in comparison with conventional fuels and electricity
• Current wood waste biomass utilization in the region
• Other economically viable applications (log furniture, flooring, paneling, fencing and other specialty market products) for Serbia
• Analyze the regulatory environment for wood waste - fuel products in Serbia (including environmental legislative and effects)
• Current/potential local consumers’ attitude towards bio fuel products and industry

• Calculation of optimal installed power of the capacitor banks that needed to be installed and of investment payback period, ra tio of total net present values of savings and costs, as well as expected total net present value of profit during a lifetime.
• Allocation of total quantity of capacitor banks at the facility 6 kV and to several bays at 0.4 kV
• Preparation of the Detailed (contractor) design for compensation facility 6 kV.