KOSOVO PLAN ON RENEWABLE ENERGY SOURCES (KPRES) DRAFT December 2011

Transcription

1 REPUBLIKA E KOSOVËS/REPUBLIKA KOSOVA/ REPUBLIC OF KOSOVO QEVERIA VLADA GOVERNMENT MINISTRIA E ZHVILLIMIT EKONOMIK MINISTARSTVO EKONOMSKOG RAZVOJA MINISTRY OF ECONOMIC DEVELOPMENT KOSOVO PLAN ON RENEWABLE ENERGY SOURCES (KPRES) DRAFT December

2 Foreword The purpose of the Kosovo Plan on Renewable Energy Sources (KPRES) represents long-term planning of the utilization of national renewable energy sources potentials to meet the demand of electricity and thermal energy, respectively the development of the infrastructure for the implementation of the measures foreseen for full implementation of requirements set forth in Directive 2009/28/EC. This plan determines indicative targets of renewable energy consumption by KPRES also serves to the following objectives: diversifying consumed energy, from the perspective of sources used; the country s economic development and improvement of the environment, through the utilization of clean energy sources. The legal and programmatic foundation for the compilation of this plan comprises the Law on Energy, No 03/L- 184, Kosovo Energy Strategy and the Kosovo Energy Strategy Implementation Plan. 2

3 CONTENTS 1. National policies on renewable energy Expected Final Energy Consumption Renewable energy indicative targets Sector indicative targets Measures for the achieving the indicative targets Overview of all policies and measures to promote the use of energy renewable Specific measures to fulfill the requirements under Articles 13, 14, 16 and of Directive 2009/28/EC Administrativ procedures and spatial planning (Article 13(1) of directive 2009/28/EC Information provisions (Articles 14(1), 14(2) and 14(4) of Directive 2009/28/EC) Electricity infrastructure development (Articles 16(1) and 16(3-6) of Directive 2009/28/EC) Electricity network operation (Articles 16(2) and 16(7-8) of Directive 2009/28/EC

4 4.3. Support schemes to promote the use of energy from renewable resources in electricity Support schemes to promote the use of energy from renewable resources in heating and cooling Support schemes to promote the use of energy from renewable resources in transport Specific measures to promote the use of energy from biomass energy Biomass supply both domestic and trade Measures to increase biomass availability, taking into account of other biomass users (agriculture and forestry Assessments Data sources

5 ABBREVIATIONS MED Ministry of Economic Development MEM Ministry of Energy and Mining KEC Kosovo Energy Corporation ERO Energy Regulator s Office TSMO Kosovo Transmission System and Market Operator RES Renewable energy sources EE Energy efficiency HPP Hydro power plant SHPP Small hydro power plant EnCTS Energy Treaty Secretariat WB World Bank EC European Commission EnCT Energy Community Treaty KPEERES Kosovo Plan on Energy Efficiency and Renewable Energy Sources KPRES Kosovo Plan on Renewable Energy Sources Ht heating Co cooling Tr transport En energy El electricity FiT feed-in tariff MTEF mid-term expenditure framework LPTAP Lignite Power Technical Assistance Project 5

6 1. NATIONAL POLICIES ON RENEWABLE ENERGY SOURCES Renewable Energy Sources (RES) comprise an important component of the Kosovo energy sector. They are treated in a special chapter of the Kosovo Energy Strategy (KES). The accomplishment of assumptions of energy generation from RES represents a long-term objective and is related with respecting the obligations deriving from the Energy Community Treaty (EnCT) and the realization of three of the country s energy policy objectives: support to general economic development; enhancement of security of supply of energy and environmental protection. Articles 10, 11, 12 and 13 of Law No. 03/L-184 on Energy represent the legal basis for the implementation of policies and determination of targets for utilization of renewable energy sources. Paragraph 1.1 of Article 11 of this law determines the obligation for the compilation of a mid-term and long-term action plan for renewable energy sources, in conformity with the obligations towards the Energy Community Treaty. Republic of Kosovo is a member of EnCT and of the Task Force on Renewable Energy Sources, established as part of the Energy Community Secretariat (EnCS). Being an active participant in these mechanisms, it has taken an obligation to implement the common requirements of the participating parties in relation to better promotion of utilization of RES for the purposes of local consumption, respectively the requirements that are related to Directive 2009/28/EC. In this sense, during 2011, Republic of Kosovo is aiming to finalize the Kosovo Plan on Renewable Energy Sources (KPRES), its national plan of action in the field of energy. This plan will determine the country s targets on energy generation from renewable in the period , with the objective of accomplishing at least the 20% target of final energy consumption from RES by In beginning of 2007, the ministry responsible for the energy sector (former MEM) drafted the Kosovo Program on Energy Efficiency and Renewable Energy Sources (KPEERES) for the period This program also 6

7 included a set of objectives the accomplishment of which would be in function to the promotion of energy efficiency and utilization of renewable energy soruces in the energy consumption sector. During , MED (formerly MEM) conducted preliminary assessment studies on the country s potential for small hydro power plants. The energy policy orientations of the Government of Republic of Kosovo include the development of new hydro-energetic capacities (small hydro power plants) through private capital investments, respectively through the concession of the right of use of water for electricity generation. Law No.03/L-185 on Energy Regulator clearly stipulates the procedures for granting authorizations for the development of new generation capacities. At MED s initiative, the Energy Regulator s Office adopted stimulating tariffs (feed-in tariffs) for energy generated by small hydro power plants, by biomass and biogas and wind. Between 2008 and 2009, MED implemented a number of sample projects of sanitary water heating through solar energy. As part of the LPTAP project, the World Bank (WB) funded the revision of the existing feasibility study for the Hydro Power Plant Zhur. In compliance with WB policies, the preliminary assessment study for environmental and social impacts was also compiled. According to these studies, HPP Zhur Project is feasible and able to provide the Kosovo electricity system with 305MW generation capacities, at an annual average generation of 398GWh. HPP Ujmani also contributes to Kosovo s electricity system with installed capacities of 35MW and an annual generation of around 88 GWh (in 2010). This hydro power plant is owned of the Iber-Lepenci Hydro-System. In the past, four small hydro power plants operated as part of the Kosovo electricity system, and as part of Kosovo Energy Corporation (KEK): HPP Dikanci, HPP Lumbardhi, HPP Radavci and HPP Burimi. These hydro 7

8 power plants have seized their operations (except HPP Radavci) after the end of the war in Kosovo (1998/1999), however, in the recent years they were rehabilitated and commenced operations. HPP Lumbardhi was rehabilitated and commissioned in 2005, by a company that leased it for a period of years. The installed capacity of this HPP is 8.3 MW. HPP Dikanc was leased and functionalized in 2010, while its installed capacities were increased from 1.9 MW to 2.6 MW during its refurbishment. HPP Radavci was rehabilitated in 2010 by the company that leased it. This HPP s installed capacities were also enhanced from 0.35 MW to 0.65 MW; HPP Burimi was leased and its capacities were increased from 0.56 MW to 0.64 MW. In conformity with the requirements set forth by Directive 2001/77/EC, Republic of Kosovo determined its annual and 10-year indicative targets for renewable energy and cogeneration and adopted a decision on the application of stimulation measures in function of the implementation of Directive 2001/77/EC. The Government of Kosovo, respectively the Ministry of Trade and Industry drafted an Administrative Instruction on the stimulation and promotion of utilization of bio-fuel and other fuels of renewable origin, taking into consideration the requirements of Directive 2003/30/EC. The Energy Regulator s Office issued: Rule on creation of a system of certificates of origin for electricity generated based on RES and co-generation; Rule on priority treatment of electricity equipped with certificates of origin and support schemes. 8

9 As part of the Kosovo Program for Energy Efficiency and Renewable Energy Sources (KPEERES) , MED (formerly MEM) implemented a number of projects for the evaluation of the country s RES potential. During 2006, an assessment of a part of hydro-potential in Kosovo was conducted. In 2008, in an effort to facilitate procedures and stimulate the process of development of small hydro power plants, the package of the tendering procedure for the development of small hydro power plants was drafted and adopted by ERO. During , the other hydro-potentials for small hydro power plants were also assessed. In 2008, the potentials for solar, wind, biomass and geothermal energy were assessed, assisted by the advisory services of Danish COWI. Meantime, various sample projects were developed, aiming to promote better utilization of energy originating from RES, including: installation of solar panels in a number of premises of the Kosovo Clinical University Center and the Student Center in Prishtina, funded by the national budget (during ), and in three other public premises part of the project for the implementation of energy efficiency measures, funded by the European Commission (during 2010); placement of wind-powered turbines for electricity generation, with capacities of 3 x 0.45 MW, in Golesh hill in Prishtina suburbs, in 2009; application and granting of authorizations, in 2010, for the development of wind-powered energy in Artana, Dardana and Shtime, by private companies. Further, a number of promotional activities for RES were conducted, including a seminar on the role of EE and RES (2005); Study on the preparation of projection data for solar energy utilization systems in Kosovo (2010), etc. 9

10 2. EXPECTED FINAL ENERGY CONSUMPTION Table 1: Expected gross final energy consumption of energy for heating and cooling, electricity and transport by 2020, taking into consideration the effect of energy efficiency and energy saving measures 1, for the period (ktoe) Years Energy consumption sector Baseline year Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario 1) heating and cooling 2 2) electricity Efficient scenario 3) transport, as per Article 3(4)a 4) final gross energy consumption Assumptions on the energy efficiency and energy saving measures are in conformity with the Kosovo Energy Efficiency Plan, which is in harmony with the requirements of the Directive on Final Consumption of Energy and Energy Services and the Directive of Energy Performance of Buildings. 2 Includes assumptions of the energy for heating only (there are no cooling energy assumptions available) 3 Difference between final gross consumption and the sum of energy of the three sectors is the consumption of fuel in the industry sector, which is not used for heating in that sector 10

11 Years Energy consumption sector 1) heating and cooling Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario Efficient scenario Reference scenario ) electricity Efficient scenario 3) transport, as per Article 3(4)a 4) final gross energy consumption

12 The energy demand assumptions presented in Table 1 are based on the document titled Energy Demand Assumption, which covers the period , and have been reviewed to include data on electricity provided by the Transmission System Operator. Table 1 contains two scenarios of demand assumption: the reference scenario and efficient scenario. The amount of energy savings is based on the Kosovo Energy Efficiency Plan. Final gross consumption baseline year is Energy demand assumption for the two last years of the period was calculated on the basis of the increase of demand in years The part of Table 1 pertaining to energy consumption in airline transport is not completed, since the final gross energy demand in this subsector does not exceed 6.18 percent. 12

13 3. RENEWABLE ENERGY INDICATIVE TARGETS 3.1. Sectorial indicative targets Article 4(1) of Directive 2009/28/EC stipulates the determination of indicative targets on the portion of energy to be generated through renewable sources by 2020, in the following sectors: - heating and cooling; - electricity; - transport. Based on long-term energy demand assumptions for the period , by end-2018 Kosovo aims to accomplish gross energy generation of ktoe. Such gross energy generation, with a linear increase in the final two years of the period of review, should reach 1684 ktoe by In compliance with the model RES energy action plan compiled by EnCS as a guideline for contractual parties, and considering the EE measures determined by KEEP ( ), final gross energy generation at the end of the period in 2018 will be 1519 ktoe. Further, in 2020, this gross generation will be 1581 ktoe. In the transport sector, in % of the energy consumption is envisaged to be based on bio-fuel. Gross energy consumption in the transport energy by 2020 is assumed at 400 ktoe, of which around 40 ktoe will be based on bio-fuel. 13

14 The airline transport energy consumption demand in the general gross energy consumption is 1.42% or ktoe. By 2020, this portion is not assumed to be higher than 6.18%, therefore, Kosovo will not face any obligations pertaining to the promotion of RES in airline transportation. 14

15 Table 3: Indicative targets and assumed trajectory of energy from RES by 2020, in heating and cooling, electricity and transport (based on the data presented in tables 4a and 4b). Table 4a: Calculation table of portion of energy from RES in each sector of final energy consumption (ktoe) Table 4b: Calculation table on the portion of energy from RES in transport (ktoe). These tables will be completed after the determination of targets, as per the recommendations. 4. MEASURES FOR ACHIEVING THE INDICATIVE TARGETS ( ) 4.1. Overview of all policies and measures to promote the use of energy from renewable resources Table 5: Overview of all policies and measures Measure title and reference ` Pre-feasibility study for the identification of hydro resources for small hydro Type of measure Expected result Target group or activity Assessment study Identification of possibilities Target activity: for the development of 63 energy MW in hydro-energy generation by capacities SHPPs; Existing planned Existing (measure finalized) or is Begin and end date February May

16 power plants (SHPP) in Kosovo Assessment of renewable energy source potentials Further assessment of energy hydropotentials for SHPPs in Kosovo Further assessment of energy hydropotentials for SHPPs in Kosovo Assessment study Assessment study Assessment study Assessment of RES potentials (except hydro sources): solar, wind, geothermal, biomass. Study was based on existing data. Further identification of new locations for SHPP development. Assessment of hydro potential and technical-economic possibilities for the installation of 22 MW in generation capacities. Further identification of new locations for SHPP development. Assessment of hydro potential and technical-economic possibilities for the target group: investors Target group: investors Purpose of the assessment is facilitation of energy generation from water; target group: investors Purpose of the assessment is facilitation of energy generation from water; Existing (measure finalized) Measure finalized Measure finalized is is is March - July 2008 November December 2009 March July

17 Compilation of the bidding package for the development of SHPPs Kosovo Program for Energy Efficiency and Renewable Energy Sources Government decision on Stimulation Measures for Utilization of Renewable Energy Sources installation of 55 MW in generation capacities Regulative Acceleration of the completion of the necessary documentation for bidding procedures for construction of SHPPs Promotional Stimulation of better utilization of energy from RES, through sample projects and awareness raising campaigns Regulative Development of the necessary regulatory infrastructure for the stimulation of RES use (through instruments such as feed-in tariffs; regulation of contractual relations for sale-purchase of RES energy, unification of prices, special RES target group: investors Support to Energy Regulator s Office and investors Public institutions, consumers, investors Relevant RES institutions (ERO, KOSTT, KEK Distribution) Existing (Measure finalized) is May October 2008 Existing Existing

18 resources, etc.) Administrative Instruction on the drafting of indicative targets on renewable energy and cogeneration Study on the preparation of projection data for solar energy system use in Kosovo Public awareness raising campaign on energy efficiency and renewable energy sources Decision on determination of stimulating feed-in tariffs for renewable Regulative Study Information campaign Regulative Accomplishment of renewable energy generation assumptions for a 10-year period. This document is the basis for RES feed-in tariffs Establishment of a database for projection needs for solar energy utilization Stimulation of public information and interest on RES utilization Stimulation of investments in the sphere of RES utilization All institutions involved in the RES sphere Investors and institutions relevant to the energy sphere Existing Existing 2010 General public Existing Investors Existing (water, wind, biomass and bio-gas) 2011 (decision adopted in 2008 by ERO and 18

19 electricity generation Rule on certificate of origin Rule on support to utilization of RES Rule on procedure for granting authorization for the development of new energy capacities Kosovo Energy Strategy ( ) Regulative Development of the regulatory basis for the issuance of certificate of origin for renewable energy Regulative Development of the regulatory basis for the issuance of certificate of origin for renewable energy Regulative Regulative (Document based on the law, aims to determine energy sector policies) Development of the regulatory basis for the issuance of certificate of origin for renewable energy Determination of national objectives for RES sector development RES energy generators Stimulation of greater generation of renewable energy Investors and institutions related to the energy sphere All authorities and other stakeholders Existing Existing Existing Existing periodically reviewed) 2010-ongoing 2010-ongoing 2008-ongoing 2005 (revised) ) 19

20 Law on energy Regulative Regulation and functionalization of the energy sector, including RES Law on electricity Regulative Regulation and functionalization of the electricity sector, including RES Law on Energy Regulator s Office Administrative Instruction on Biofuel (draft) Regulative Regulative Regulation on establishment and functionalization of the ERO, and its competencies in the energy sector, including RES Development of the legal basis for use of bio-fuel in transport All authorities, consumers and other stakeholders All authorities, consumers and other stakeholders All authorities, consumers and other stakeholders Public institutions, fuel producers and traders, and consumers Existing Existing Existing Planned 2004 (revised 2010) 2004 (revised 2010) 2004 (revised 2010) Draft instruction expected to be adopted by the government in

21 Administrative Instruction on the establishment of Municipal Energy Offices Decision on feed-in tariffs for solar energy RES promotional campaign Measurement and assessment of wind energy potentials Regulative Regulative Information campaign Development of the legal basis for the establishment and functionalization of municipal energy offices Stimulation of investments in the field of solar energy utilization Stimulation of public information and interest on RES utilization Study Identification of wind energy potentials Central and municipal authorities, and other stakeholders Investors Consumers, generators, public Investors in the field of wind energy Planned 2011 Planned (for 2017 photovoltaic energy) Planned MTEF Planned MTEF 21

22 4.2. Specific measures to fulfill the requirements under Articles 13, 14, 16 and of Directive 2009/28/EC Administrative procedures and spatial planning (Article 13(1) of Directive 2009/28/EC) - Law on Energy Regulator; Law on Energy; Law on Electricity; Rule on Authorization for Construction of New Generation Capacities...; Rule on Licensing of Energy Activities in Kosova; Law on Water; Law on Allocation for use and Exchange of Immovable Property of Municipality; Law on Construction; Law on Environmental Impact Assessment; Law on Environmental Protection; Law on the Forests of Kosova; - Energy Regulatory Office (ERO): to Authorize the construction of new generation capacities. Ministry of Environment and Spatial Planning: Water Permit; Environmental Permit and Construction Permit. Municipal Authorities: for allocation for use of land. Kosovo Forestry Agency: Permit to use the forestry. KOSTT: Connection to Transmission Network. KEK: Connection to Distribution Network. - There are some Contradictions between Law on Energy Regulator and Law on Allocation for use and Exchange of Immovable Property of Municipality and Law on Water which appears as a obstacles and need to be revised. - There are some Contradictions between Law on Energy Regulator and Law on Allocation for use and Exchange of Immovable Property of Municipality and Law on Water which appears as an obstacle - National Level: Energy Regulatory Office of Kosovo is responsible for issuing Authorizations for Construction of New Generation Capacities, but this process also involves other local and national institutions based on their responsibilities (see answer under question a) and b). - Through the web page of Energy Regulatory Office of Kosova, and the flier that soon will be developed and published by Ministry of Economic Development. 22

23 - It is kind of ad hoc process which begins in ERO (similar role as one stop shop) where the applicant applies and receives all information about whole process and information about what evidences and what institutions are responsible for issuing such evidences (certificates, agreements, contracts, permits ect.). Granting authorisation is two steps process: Decision on Preliminary authorisation and final authorisation. Rule on authorisation Procedure for Construction of new generation capacities, new systems for the transmission and distribution of gas, including interconnectors, and direct electricity lines and direct pipelines for the transmission of natyral gas is published in ERO s web site and contains all information about the authorisation process including the time table. For both steps three + two months from the moment that ERO consider application as a complete. - NO. Rule on Authorization Procedure for Construction of New Generation Capacities... applies for all technologies. - Rule on Authorization Procedure for Construction of New Generation Capacities... applies for all kinds of centralised generators which generated electricity will be injected in the network. - Application has to be associated with the application. It is administrative fee that was set by the Decision of the Board of ERO, and is published in ERO web page. No such plans for revision of fees yet -Ministry of Economic Development has published leaflet for licensing and permitting requirements for renewable energy - No such specific trainings are available 23

24 Information provisions (Articles 14(1) and 14(6) of Directive 2009/28/EC) The table below presents the public information measures conducted to date in regard to RES. Undertaken information measure a. Reference to existing legislation b. Body responsible for information dissemination c. Summary of existing and planned measures d. Means of making information available e. Role of regional and local stakeholders in the design and management of program Public awareness raising campaign on energy efficiency and renewable energy sources (completed) Law on energy, Articles 1(1), 10,11, MED Television spots, school competitions, leaflets, billboards, workshops, trainings, information brochures, radio advertisements MED webpage, MED informer, books, brochures, MED progress reports, Contractor reports on campaign implementation. Cooperation with local level 24

25 RES promotional campaign (planned) Law on energy, Articles 1(1), 10,11, MED Television spots, school competitions, leaflets, billboards, workshops, trainings, information brochures, radio advertisements MED webpage, MED informer, books, brochures, MED progress reports, Contractor reports on campaign implementation. Cooperation with local level 25

26 Electricity infrastructure development (Article 16(1), Article 16(3) Article 16(5) and Article 16 (7) of Directive 2009/28/EC) Article 12/2 Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation -Transmission and distribution system operators shall establish and publish standard rules on who bears the costs of technical adaptations, such as grid connections and grid reinforcements, necessary to integrate new electricity generation feeding electricity produced from renewable energy sources into the interconnected system. Such rules shall be submitted for approval to the Energy Regulatory Office, shall be consistent with the Energy Strategy and shall be based on objective, transparent and non-discriminatory criteria, taking particular account of all the costs and benefits associated with the connection of these producers to the system. This requirement is included in the short and long term Development Plans of TSO and DSO - Kosovo does not have installed yet intelligent networks even that initial steps are done regarding this issue with implementation of SCADA/EMS from KOSTT. - Interconnected with Albania 400kV is in the process. Construction is expected to be finalized in year Rule on Authorization Procedure for Construction of New Generation Capacities... applies also for construction of Interconnections and direct electricity lines. Up to now no such applications for construction of Interconnections and direct electricity lines has been submitted to ERO. -According to the Rule for the Support of Electricity for which a Certificate of Origin has been issued and Procedures for Admission to the Support Scheme the Transmission System Operator and the Distribution System Operator give priority in examining the application for connection submitted by generating units producing electricity with respect to which certificates of origin are issued, in order to reduce, as much as possible, the time required to conclude the Connection Agreement and complete the connection 26

27 - No Capacity limitation identified up to now. Article 12/3 Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation -Transmission and distribution system operators shall provide any new electricity producer using renewable energy sources or co-generation wishing to be connected to the system with a comprehensive and detailed estimate of the costs associated with the connection for which estimate the system operator may levy a charge that reflects its reasonable costs. Article 12/4 Law on Energy -Transmission and distribution system operators shall establish and publish standard rules relating to the sharing of costs of system installations, such as grid connections and reinforcements, between all electricity producers benefiting from them. Such rules shall be submitted for approval to the Energy Regulatory Office, and shall be consistent with the Energy Strategy and any applicable secondary legislation, rules or codes. Article 12/1 Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation - When dispatching electricity generation, the transmission system operator, or the distribution system operator where appropriate, shall give priority to electricity generation from renewable energy sources and co-generation, subject only to any limits specified for purposes of system security by the Grid Code and other rules and codes. - Transmission and distribution system operators shall establish and publish standard rules on who bears the costs of technical adaptations, such as grid connections and grid reinforcements, necessary to integrate new electricity generation feeding electricity produced from renewable energy sources into the interconnected system. Such rules shall be submitted for approval to the Energy Regulatory Office, shall be consistent with the 27

28 Energy Strategy and shall be based on objective, transparent and nondiscriminatory criteria, taking particular account of all the costs and benefits associated with the connection of these producers to the system. - Transmission and distribution system operators shall provide any new electricity producer using renewable energy sources or co-generation wishing to be connected to the system with a comprehensive and detailed estimate of the costs associated with the connection for which estimate the system operator may levy a charge that reflects its reasonable costs. - Transmission and distribution system operators shall establish and publish standard rules relating to the sharing of costs of system installations, such as grid connections and reinforcements, between all electricity producers benefiting from them. Such rules shall be submitted for approval to the Energy Regulatory Office, and shall be consistent with the Energy Strategy and any applicable secondary legislation, rules or codes. - The Energy Regulatory Office shall ensure that transmission and distribution fees for connection and for use of the transmission and distribution systems do not discriminate against electricity from renewable energy sources, including in particular electricity from renewable energy sources produced in peripheral regions, such as regions of low population density. - Transmission Connection charging methodology developed by KOSTT and approved by, and is published in KOSTT web page. Article 12/2 of Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation 28

29 - Transmission and distribution system operators shall establish and publish standard rules on who bears the costs of technical adaptations, such as grid connections and grid reinforcements, necessary to integrate new electricity generation feeding electricity produced from renewable energy sources into the interconnected system. Such rules shall be submitted for approval to the Energy Regulatory Office, shall be consistent with the Energy Strategy and shall be based on objective, transparent and nondiscriminatory criteria, taking particular account of all the costs and benefits associated with the connection of these producers to the system. - Transmission Connection charging methodology developed by KOSTT and approved by, and is published in KOSTT web page. Article 12/2 of Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation - Transmission and distribution system operators shall establish and publish standard rules on who bears the costs of technical adaptations, such as grid connections and grid reinforcements, necessary to integrate new electricity generation feeding electricity produced from renewable energy sources into the interconnected system. Such rules shall be submitted for approval to the Energy Regulatory Office, shall be consistent with the Energy Strategy and shall be based on objective, transparent and nondiscriminatory criteria, taking particular account of all the costs and benefits associated with the connection of these producers to the system. 29

30 - Transmission Connection charging methodology developed by KOSTT and approved by, and is published in KOSTT web page. Article 12/2 of Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation - Transmission and distribution system operators shall establish and publish standard rules on who bears the costs of technical adaptations, such as grid connections and grid reinforcements, necessary to integrate new electricity generation feeding electricity produced from renewable energy sources into the interconnected system. Such rules shall be submitted for approval to the Energy Regulatory Office, shall be consistent with the Energy Strategy and shall be based on objective, transparent and nondiscriminatory criteria, taking particular account of all the costs and benefits associated with the connection of these producers to the system. - Code for Wind Powered Generating Stations (part of Grid Code/KOSTT) Electricity network operation (Article 16(2) and Article 16(7) and (8) of Directive 2009/28/EC) Article 12/1 Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation - When dispatching electricity generation, the transmission system operator, or the distribution system operator where appropriate, shall give priority to electricity generation from renewable energy sources and co-generation, subject only to any limits specified for purposes of system security by the Grid Code and other rules and codes. 30

31 Article 12/1 Law on Energy Obligations of Energy Enterprises for Renewable Energy Sources and Co-generation -When dispatching electricity generation, the transmission system operator, or the distribution system operator where appropriate, shall give priority to electricity generation from renewable energy sources and co-generation, subject only to any limits specified for purposes of system security by the Grid Code and other rules and codes. 31

32 All RES generators are integrated in the grid. The Public Supplier (KEK) is obliged to offer priority dispatch to renewable generators for the full capacity authorized under the FIT. Unfortunately, as an incentive scheme, the FIT has to be sold at a fixed price but any capacity that exceeds a given limit (this limit depends on the Indicative Targets set by the Ministry responsible for energy) can be sold at a market price by the RES generator. Transmission Connection charging methodology developed by KOSTT and approved by ERO 4.3. Support schemes to promote the use of energy from renewable resources in electricity applied by the Contracting Party or a group of Contracting Parties Article 13 Law on Energy Renewable Energy Targets The Ministry shall establish annual and long-term (10 years) renewable energy targets for the consumption of electricity or heat generated from renewable energy sources or cogeneration. There are technology-specific indicative objectives. The concrete obligations/indicative objectives per year (per technology) is prescribed in Admin. Instruction 06/2007 ( ex MEM).The Administrative Instruction mentioned in point (c) refers to Kosovo s obligations as a part of the ECT-SEE specifically to Directive 2001/77/EC. As such Kosovo as a signatory party has to fulfill the obligation. Since the targets refer to Directive 2001/77/EC they are not binding however FITs and other incentive schemes may be reviewed if they do not attract sufficient RES capacity to reach the targets. Ministry responsible for energy supervises the fulfillment of indicative targets.the Indicative Targets are subject to the modification of the Ministry responsible for energy. Actually in Kosova is adopted Rule on Support Scheme ( Feed-in tariffs ) approved by ERO which is voluntary scheme. There is not another support scheme. ERO drafts the scheme and identifies the players in the market that will implement the scheme. The scheme is monitored by ERO as well however other than ERO and RES 32

33 generators, the PS is supposed to purchase at first-priority all electricity produced by RES and admitted in the scheme. The TSMO accumulates, through a Renewable Energy Levy, the revenues required to purchase electricity from RES. The FIT (feed-in tariffs) Support Scheme is the only scheme that is used to reach the national indicative targets. The Scheme does not include any specific provisions for long-term security or technical reliability of the system however in principle it is meant to increase both these factors. The Rule on Authorization Procedure includes specific provisions which require that any RES generator willing to connect to any point on the Transmission System has to first receive a technical approval by the TSO or the DSO (if connected to the Distribution System). According to the scheme revised the provisions of the scheme are not subject to periodical revision. However, the FITs are subject to an inflation adjustment which an annual adjustment is made to each Tariff for each RES technology. The scheme has only been in effect for the past 6 months and there haven t been any adjustments so far. The Feed-in Tariffs are different for each technology however all other provisions are the same for each technology. The targets are set so that by 2016 Kosovo consumes 230 GWh from Hydro, 302 GWh from Wind and 23 GWh from Biomass, but it expected to be revised after approved the new indicative targets based on directive 2009/28 EC. Actually the support is not conditioned by energy efficiency criteria. According to the measure for RES promotion there is a measure based on Rule on the Support of Electricity for which a Certificate of Origin has been Issued and Procedures for Admission to the Support Scheme. This measure is operational and monitored by ERO. The scheme does not end at a specific date. According to the 33

34 maximum and minimum sizes: There is a maximum size of 10MW for HPPs. Other RES technologies do not have barriers. It is not possible for the same project to be supported by more than one support measure. There are no regional schemes. The only scheme, which is central, is the one applied by ERO. The only benefit of the scheme is dispatch priority for 10 years with a fixed price. All RES generators which are specified in the Indicative Targets set by the Ministry responsible for energy can benefit from this scheme. The Applications are continuously received. The tradable certificates is not applied in Kosovo According to the fixed tariff, a generating unit is eligible for admission to the Support Scheme if: (a) It has entered into operation on or after [30 June 2004]; (b) It is located in the territory of Kosovo; (c) It produces electricity using generating capacities with new equipment; (d) It produces electricity with respect to which certificates of origin are issued: Additionally, in order to be admitted RES generators have to be producing RES from one of the RES technologies in the Indicative Targets The Indicative targets which are in kwh are converted into capacity using an assumed Capacity Factor for each RES technology. This capacity is used as a cap for the maximum RES capacity that can be admitted to the scheme. The Scheme is technology-specific. The level of the FIT for HPPs is 63.3 /MWh for Hydro plants, 85.0 /MWh for Wind generators and 71.3 /MWh for Biomass/Biogas power plants. There are no other criteria differentiating tariffs. 34

35 The fixed tariff is guaranteed for 10 years for generators that receive are admitted. If the tariffs are reviewed in the future, the revision does not affect generators which have been previously admitted but only generators that may apply after the date of the revision. The only tariff adjustment foreseen is the inflation adjustment. However ERO has the right to amend the tariffs whenever appropriate. According to the feed-in premiums there are no feed-in tariff premiums offered in Kosovo Support schemes to promote the use of energy from renewable resources in heating and cooling applied by the Contracting Party or a group of Contracting Parties To date, we have no support schemes for the stimulation of utilization of RES for heating and cooling, however, in line with the targets determined in this plan, we will set adequate support schemes for Kosovo circumstances (thermal regulation). However, this provision does not yet enjoy support in Kosovo, due to objective reasons and as a result of lack of interest by the private sector Support schemes for the promote the use of energy renewable resources in transport applied by the Contracting Party or a group of Contracting Parties The legal act (Administrative Instruction) on bio-fuel is under compilation, and will set the indicative targets on bio-fuel in the transport sector. 35

36 These targets represent 10% of the final consumption in the transport sector; Article 11 (5) which determines indicative targets for RES utilization states: The minimal annual quantity of bio-fuels and other renewable fuels shall be no smaller than 2% of the total amount of fuels placed in the domestic market in 2011, no smaller than 5.75% between 2015 and 2019 and no smaller than 10% from 2020 onwards, in compliance with the Directive 2003/30/EC. In case of insufficient bio-fuels in the market, the Ministry may, by way of issuing a special decision, relieve licensed importers and storage facilities from the provision of the minimal annual quantity of bio-fuel. The issuance of such an instruction should be accompanied by concrete plans for its implementation Specific measures for the promotion of the use of energy from biomass Biomass plays a significant role as a primary energy source for all sectors: heating and cooling, electricity and transport. However, in the Republic of Kosovo, biomass is currently used mainly used for heating (not cooling) purposes, electricity production and transport. The only biomass means used for heating are logwood and wood fossils. Republic of Kosovo has adopted its Strategy for Forestry Development ( ), part of which is the chapter that addresses the issue of biomass as an energy source. Also, Kosovo has a Forest Agency, which is the relevant institution on the compilation and processing of data on wood potentials, respectively on wood biomass. According to the Kosovo Strategy on Forestry Development, Kosovo is able to use between cubic meters of wood masses for energy generation purposes. The domestic planned supply and demand for energy from wood biomass are far from matching. Currently, the gap between demand and supply is covered through imports and unplanned logging. 36

37 As regards other types of biomass for energy needs, we are in possession of no developmental policy documents. As regards other biomass waste, a draft of the Strategy of waste administration has been prepared, however this document does not address the issue of waste from an energy generation viewpoint Biomass supply: both domestic and trade Table 7: Supply of biomass in 2009 Sector of origin A) Biomass from forestry Of which: 1. Direct supply of wood biomass from forests and other wooded land for energy generation 4 Amount of domestic resource (m 3 ) Imported EU Non- EU (m 3 ) Exported Net EU/non- amount EU (m 3 ) Primary energy production (ktoe) 40.1 ktoe 4 Data presented in this table represent official data from the Kosovo Forest Agency. It pertains to the quantities of logged wood monitored by the agency. According to this data, the amount of logged wood monitored is many times higher than the amount of wood consumed according to the survey conducted by CRES. The data provided by the agency makes no differentiation between industrial and logwood. We have obtained no explanations on the quantity of wood logged in a legal manner. 37

38 Optional if there are available information on the size of stock in this category: a) fellings (m 3 ) 35.6 ktoe b) residues from fellings (tops, branches,bark, stumps) c) landscape management residues (wood biomass from parks, gardens, (m 3 ) (m 3 ) 2.25 ktoe 2.25 ktoe 38

39 tree rows,bushes) d) other: (please define) 2. Indirect supply of wood biomass for energy generation Optional if you have other available detailed data on: a) residues from sawmilling, woodworking, furniture industry (bark sawdust ) b) by products of the pulp and paper industry (tall oil and

40 black liquor) c) processed wood - fuel d) post consumer recycled wood (recycled wood for energy generation, household waste wood) Biomass from agriculture fisheries: e) other (please define) Of which: Agricultural crops and fishery products directly provide for energy generation Optional if you have other available detailed

41 data on: a) arable corps (cereals, oil seeds, sugar beet, silage maize) b) plantations c)short rotation tree d) other energy corps (grasses) d) algae e) other (please define) 2. Agricultural byproducts / processed residues and fishery byproducts for energy generation Optional if you have other

42 available data on: a) straw b) manure c) animal fat detailed d) meat and bone meal e) cake byproducts (such as oil seeds and olive oil cake for energy) f) fruit biomass (including shell, kernel) by- g)fishery products g) clippings from vines, olives and fruit trees h) other (please 42

43 C)Biomass from Waste define) Of which: 1.Biodegradables fraction of municipal solid waste, including bio-waste (Biodegradable garden and park waste, food and kitchen waste from household, restaurants, cafeterias and retail premises and comparable waste from food processing plants) and landfill gases 2. Biodegradable fraction of industrial waste

44 (including paper, cardboard, pallets) 3. Sewage sludge The following converting factor was used to convert the timber biomass into primary energy: for timber trunks - caloric value of GJ/m 3 ; for all other types of timber remains the caloric value of GJ/m 3. In 2009, Kosovo has not used any other types of biomass for energy generation, such as industrial paper remains, recycled wood, fishing or other degradable remains of rural or urban origin (hay, straws, food remains, etc.) The assumption on biomass utilization for energy generation in years 2015 and 2020 is presented below (based on the biomass categorization as per table 7) 44

45 Table 7a: Estimated biomass domestic supply in 2015 and 2020 Sector of origin Expected amount of domestic resources (cubic meters) Expected amount Primary of energy domestic production sources (ktoe) (cubic meters) Primary energy production (ktoe) 45

46 A) Biomass from forestry 1. Direct supply of wood biomass from forests and other wooded land for energy generation Total amount of wood is assumed to be cubic meters 80.6 ktoe Total amount of wood is assumed to be cubic meters ktoe B) Biomass from 2. Indirect supply of wood biomass for energy generation 1. Agricultural crops and fishery

47 agriculture fisheries products directly provide for energy generation 2. agricultural by-products / processed residues and fishery byproducts for energy generation C)Biomass from waste 1. Biodegradable fraction of solid waste, including biowaste (Biodegradable garden and 47

48 park waste, food and kitchen waste from household, restaurants, cafeterias and retail premises and comparable waste from food processing plants) and landfill gases 2. Biodegradable fraction of industrial waste (including paper, cardboard, 48

49 pallets) 3. Sewage sludge Except for the assumptions on wood, which were received by the forest authorities, we have no other adopted policies or concrete plans on biomass. Table 8: Current agriculture land use for production of crops dedicated to energy in year.. (year for which data is available) Agricultural land use for production of dedicated energy crops Surface (ha) 1) Land used for short rotation trees (willows, poplars) - 49

50 2) Land used for other energy crops, such as grasses (reed canary,switch grass, Miscanthus), sorghum - Currently, Kosovo does not cultivate agricultural cultures for the purposes of energy production. It should be noted that Kosovo s possibilities for the cultivation of agricultural products for energy generation purposes are very limited. 50

51 Measures to increase of biomass availability, taking into account other biomass users (agriculture and forest-based sectors) Mobilization of new biomass sources: (a) We have no information on the surface of degraded land (b) We have no information on the surface of unused land (c) No measures are yet proposed for the encouragement of use of non-arable land, degraded land, etc. for purposes of energy culture cultivation. (d) No use of primary materials is planned (such as animal fertilizer) for energy uses. (e) There are no specific policies for the promotion of generation and use of bio-gas (local, central heating, biogas grid, integration in the natural gas grid). (f) In relation to the planning of measures for the improvement of techniques for forest management, the Forestry Development Strategy foresees a project for the improvement of forest management. 51