Potentials and economic viability of small grain residue use as a source of energy in Serbia

One of the numerous challenges awaiting Serbia in the process of European integration is the increase in use of renewable sources of energy. The reason for such an increase is not merely a formal acceptance of European goals but the high energy import dependence, a relatively developed agricultural sector, with insufficiently exploited potentials of biomass, accompanied by an ever-growing awareness of the need for establishing long-lasting sustainable development. Serbia has a relatively undeveloped livestock sector which can absorb a limited portion of the biomass produced. Additionally, insufficient awareness on the part of farmers and the preconception of the low cost-effectiveness of biomass utilisation for the purpose of energy production are factors which, unsurprisingly, contribute to the current practice of burning the largest portion of the biomass produced on site, which is economically and ecologically unacceptable. This paper analyses the amounts of biomass available in Serbia and the prospects of its economically viable utilisation. The cost analysis conducted indicates that the energy obtained from small rectangular straw bales (the most widespread way of utilisation), is less costly by 28%, than the energy obtained from coal, whereas the energy obtained from round bales is cheaper by 34%. Sensitivity analysis has shown that the results obtained are relatively resistant to price changes in the most important inputs. The sensitivity is higher towards the efficiency of the machinery used; therefore, insistent efforts should be made for creating conditions where the introduction of more up-to-date technical solutions, already existing in developed countries, will become feasible.     

Prospects of wind energy sector development in Serbia with relevant regulatory framework overview

The growth of the renewable energy sector in the world in the first decade of the twenty-first century was rapid. Wind energy sector was one of the fastest growing renewable energy technologies. In this paper, authors have tried to review the current state of wind power utilization in Serbia as one of the most penetrating RES technologies in the world. The brief overview of electric power sector in Serbia was given in order to describe the environment for emerging wind energy sector development. Sufficient wind energy resources were identified in several regions of the country. Current energy policy in Serbia was reviewed in terms of the regulations that have to be followed in order to meet the requirements for RES power plants, i.e. wind power plant construction. In subsequent section short reviews of wind energy projects which are in their initial phases are provided. The wind energy sector in Serbia is emerging despite the difficulties faced by the investors, regulatory bodies and other shareholders, in the course of the past several years. There is an urgent need of a broader transfer of specific knowledge and technologies related to wind farms and wind turbines in order to speed up the current wind energy sector development.     

Analysis of renewable energy progress in the western Balkan countries: Bosnia–Herzegovina and Serbia

Within the framework of achieving the European environmental targets towards climate change mitigation, as well as decreasing the fossil fuel dependence and its negative effects on global warming, renewable energy sources (RES) promotion has become a major issue of concern in most European Union (EU) countries. In the above context, most EU countries have endorsed initiatives to foster RES implementation development and inclusion in the energy mix, aiming to endeavor and further impel the benefits deriving from RES and harmonize to the EU Directive or Kyoto Protocol. Nevertheless, only few sporadic efforts have been examining countries and compare the requirements for promoting RES implementation that lack specific RES obligations or a framework set by the Kyoto Protocol or the EU Directive, and particular Balkans countries with great RES potential, such as BiH and Serbia. The main objective of this paper is to analyze the conditions and modalities for RES progress within the economic, political and institutional dimension, in these two neighboring countries located in the vicinity of EU Member States (MS), which appear to have a similar historical, political and economical background and an extensive RES potential. The analysis indicated that RES development in BiH seems to be a slow process, its institutional framework is partly established and further strengthening is required. In Serbia, the institutional framework is efficiently established, are in the process of developing new legislation to facilitate renewable energy development.     

Decision support system for exploiting local renewable energy sources: A case study of the Chigu area of southwestern Taiwan

The topic of climate and energy policy has drawn new attention since the Kyoto Protocol has now come into force. It is hoped that strengthened use of renewable energy sources can meet new international environmental requirements and provide self-sufficient domestic energy supplies. The decision support system established in this study integrates potential evaluations, cost analyses, legal incentives, and analysis of returns on investments with the aid of a geographic information system (GIS). This system can provide insights for policymakers into where and the extent of the potentials, for lawmakers into whether the current legal incentives are sufficient to encourage private investment, and for investors into whether investments in exploiting local renewable energy sources are economically feasible. Under the current incentive framework in Taiwan, the amortization periods of investment on renewable energy are generally longer than the period over which the investment is to be recovered. This presents an unfavorable condition for attracting investments to and for developing renewable energy. An increase in remuneration through legal revisions is needed before domestic investment in renewable energy will actively expand.     

Possibility of efficient utilization of wood waste as a renewable energy resource in Serbia

Wood biomass in Serbia is traditionally used for energy. However, the manner of its use is outdated, and efficiency is very low. Annually over 3.5 million m³ of wood is cut down for energy needs in Serbia. In order to better exploit all forms of woody biomass, especially the one that is now treated as waste, and in order to fulfil the obligations from the outlined Convention on Climate Change it is necessary to switch to a modern way of production and utilization of woody biomass. Serbia is now at the very beginning of this process. This paper gives an overview and an analysis of the possibilities of utilization of wood waste as a renewable source of energy and the problems that producers in Serbia are facing due to undeveloped markets and excessive funds that are needed to start the production of briquettes and pellets. The ecological and economical advantages of using woody biomass, as well the possible support measures for the use of woody biomass in Serbia are also the topic of this paper. The present situation in this area, the manner of waste management in sawmills and the reasons for the necessity of future development of this industrial production are also briefly described.     

Who invests in renewable electricity production? Empirical evidence and suggestions for further research

Transforming energy systems to fulfill the needs of a low-carbon economy requires large investments in renewable electricity production (RES-E). Recent literature underlines the need to take a closer look at the composition of the RES-E investor group in order to understand the motives and investment processes of different types of investors. However, existing energy policies generally consider RES-E investments made on a regional or national level, and target investors who evaluate their RES-E investments according to least-cost high-profit criteria. We present empirical evidence to show that RES-E investments are made by a heterogeneous group of investors, that a variety of investors exist and that their formation varies among the different types of renewable sources. This has direct implications for our understanding of the investment process in RES-E and for the study of motives and driving forces of RES-E investors. We introduce a multi-dimensional framework for analyzing differences between categories of investors, which not only considers to the standard economic dimension which is predominant in the contemporary energy literature, but also considers the entrepreneurship, innovation-adoption and institutional dimensions. The framework emphasizes the influence of four main investor-related factors on the investment process which should be studied in future research: motives, background, resources and personal characteristics.     

Review of the economic viability of investing and exploiting biogas electricity plant - Case study Vizelj, Serbia

Construction and operation of plants that produce energy from renewable energy sources is the subject for discussion in all the countries that have accepted the sustainable development concept and Kyoto protocol as their own development direction. Enlargement of the renewable energy production is clearly an imperative, but only economically viable construction and operation can result in long-term sustainability, which is initially the goal when deciding upon such investments. In line with this goal, this paper presents the estimation of the economic viability of constructing and operating biogas electricity plant on the farm Vizelj in Serbia. The timeframe for this estimation is from 2011 until 2020. This paper also presents all parameters which are necessary for performing this estimation, respectively, analysis of revenues and expenditures, projection of economic and financial flow, ratio analysis, dynamic and static analysis, and analysis of sensitivity of the project, i.e. impact of the changes in prices and raw material on the overall performance of the project. The observed investment is predicted to be financed from the EBRD's credit line for renewable energy in Western Balkans, while the total investment is estimated at Euro 958,000.00. After the performed economic assessment, the conclusion is that the observed investment in biogas electricity plant is very acceptable and it can serve as a role model for similar investments in the region.     

An analysis of the legal and market framework for the cogeneration sector in Croatia

Following a strategic orientation towards sustainable development, the Government of the Republic of Croatia has changed its energy legislation and has put forward a framework for the systematic development and increased use of renewable energy sources and cogeneration. This paper focuses on changes in the regulatory context relevant to the cogeneration sector and also analyses the impact of energy market transition on cogeneration viability in municipal district heating, industry, services and the residential sector. Particular attention has been paid to the expected changes of heat, electricity and gas prices. We present a simple model for quantitative prediction of the cogeneration system profitability at different power levels under given national circumstances. Our findings support a need for a strong institutional support for initial penetration of the micro-cogeneration technologies into the Croatian energy system.     

Drivers,barriers, and strategies for implementation of renewable energy technologies in rural areas in Bangladesh—An innovation system analysis

Bangladesh has good potential for harnessing renewable energy sources such as solar, biomass, wind, and mini-hydropower. The country has been experiencing a gradual shift towards exploring renewable energy resources as a driving force for rural development. A few public sector and non-government organizations have started to develop renewable energy technology (RET) projects in rural areas. The lessons learnt from different demonstrations of RET projects reveal that with careful forward planning renewable energy can provide far-reaching economic, environmental, and social benefits to people living in remote rural areas in Bangladesh. This paper identifies some of the barriers that need to be overcome for the successful development of renewable energy technology sector and betterment of rural livelihoods. It does so through a critical review of policy and institutional settings, as well as present status and lessons learnt from pilot demonstration of a number of RET projects undertaken by different organizations. The study highlights policy implications of the review with the aim of supporting decision makers in formulating renewable energy policies and future plans for Bangladesh.     

Bioenergy production and use in Italy: Recent developments,perspectives and potential

The renewable energy policies in the European Union have already led to a significant progress; the energy mix should further change until 2020. Italy is planning to meet the 2020 targets on renewable energies also thanks to a relevant paradigm shift in renewable energy exploitation. Indeed, in 2005 the sector where RES were more present in Italy was electricity production with 203 PJ of renewable origin, while in the heating and cooling sector renewable energy penetration was limited to 80 PJ. On the contrary, in 2020 heating and cooling is expected to absorb the highest amount of renewable energy (438 PJ) with renewable electricity expected to count for 356 PJ. Bioenergy, a renewable energy resource particularly suitable for electricity, heating & cooling and in transport, will be at the core of this sectorial shift in renewable energy production and use and is expected to become the dominant form of RES before 2020. The paper makes a detailed analysis of the recent developments and expected evolution of the Italian energy mix in next decade. It provides an overview of the Italian bioenergy sector in comparison with other Renewable Energy Sources (RES) and with leading countries in the European Union with a special focus on the production, exploitation and potentials on the basis of the analysis of the Italian National Renewable Action Plan.     

Renewable and sustainable energy use in Turkey: a review

Turkey is an energy importing nation with more than half of our energy requirements met by imported fuels. Air pollution is becoming a significant environmental concern in the country. In this regard, renewable energy resources are becoming attractive for sustainable energy development and environmental pollution mitigation in Turkey. Turkey's geographical location has several advantages for extensive use of most of these renewable energy sources. Because of this and our limited fossil fuel resources, a gradual shift from fossil fuels to renewables seems to be a serious alternative for Turkey's energy future. This article presents a review of the present energy situation and assesses sustainability, technical, and economical potential of renewable energy sources, and future policies for the energy sector in Turkey. Throughout the paper, problems relating to renewable energy sources, environment, and sustainable development are discussed for both current and future energy investments. The renewable energy potential of the country and its present status are evaluated.     

Energy system aspects of hydrogen as an alternative fuel in transport

Considering the enormous ecological and economic importance of the transport sector the introduction of alternative fuels—together with drastic energy efficiency gains—will be a key to sustainable mobility, nationally as well as globally. However, the future role of alternative fuels cannot be examined from the isolated perspective of the transport sector. Interactions with the energy system as a whole have to be taken into account. This holds both for the issue of availability of energy sources as well as for allocation effects, resulting from the shift of renewable energy from the stationary sector to mobile applications. With emphasis on hydrogen as a transport fuel for private passenger cars, this paper discusses the energy systems impacts of various scenarios introducing hydrogen fueled vehicles in Germany. It identifies clear restrictions to an enhanced growth of clean hydrogen production from renewable energy sources (RES). Furthermore, it points at systems interdependencies that call for a priority use of RES electricity in stationary applications. Whereas hydrogen can play an increasing role in transport after 2030 the most important challenge is to exploit short–mid-term potentials of boosting car efficiency.     

Exploitation of geothermal energy as a priority of sustainable energetic development in Serbia

The actual global economic crisis, including all other well-known problems of sustainable development, reflects the direction of development of all countries in the world. Serbia, as a European country in its early stage of development, is trying to synchronize its progress with experience of other countries from the field of sustainable development and in accordance with rules in the field of energetic and energetic efficiency, and, as well as to promote and develop the sector of use of renewable sources of energy. On the other hand, Serbia is a country which largely depends on import of all forms of energy, which to a great extent affects its economic stability. Therefore, in Serbia the strategy for development of energetic was imposed and it considers all the aspects of development of energetic until 2015 and it also defines the priorities which can be mostly seen in the choice of forms of alternative sources of energy. These sources, based on some criteria, can be considered the most convenient for a gradual substitution of energy which is gotten from the conventional sources. Taking into account strategically defined goals and domestic potentials which are at disposal, as well as economic parameters, an alternative source of energy of basic importance for the future exploitation on the territory of Serbia geothermal energy, was chosen. The research points to the fact that Serbia will be capable to respond adequately to Kyoto protocol demands and to the European rules regarding the substitution of a certain amounts of fossil fuels by the fuel origin from the raw biological materials. The research defines the existent and non-existent capacities and the assessment of positive effects of usage of geothermal energy. At the moment, 160 long holes are being exploited whose water temperature is around 60 °C (140 °F) and their heat power reach 160 MJ/s. It was stated that adequate exploitation of existing and new geothermal sources a yearly would save about 500,000 tons of fossil fuels what is proportional to the 10% of the today's heating system. The total amount of heat accumulated at geothermal deposit sites in Serbia, up to 3 km of depth, is two times greater than the total amount of heat that may be generated by burring all available coal reserves in Serbia. Price of electrical energy produced from geothermal springs is estimated to be between 9.2 US cents/kWh and 11.5 US cents/kWh. In order to support exploitation of geothermal energy (as well as all other renewable sources of energy) the decision that all the producers of energy from renewable sources get a status of privileged producers were made.     

Explaining the diversity of motivations behind community renewable energy

Community-based renewable energy initiatives may be important actors in the transition toward low-carbon energy systems. In turn, stimulating investments in renewable energy production at the community level requires a better understanding of investors' motives. This paper aims to study the heterogeneity of motivations that drive individuals to participate in community renewable energy projects and the underlying explanatory factors behind this, as well as the implications for their level of engagement in initiatives. Based on quantitative data from an original survey conducted with two renewable energy cooperatives in Flanders, the statistical analysis shows that cooperative members should not be considered as one homogeneous group. Several categories of members with different motives and levels of engagement can be distinguished. This heterogeneity is explained by contrasts in terms of institutional settings, spatial patterns and attitudes to the diffusion of institutional innovations. Regarding policy implications, the findings suggest that this heterogeneity should be taken into account in designing more effective supporting policies to stimulate investments at the community level. The activation of social norms is also shown to be a promising mechanism for triggering investment decisions, although the implications of its interplay with economic incentives should be further explored.     

Green accounting for greener energy

The first step towards the widespread use of renewable energy sources and preservation of our environment for the people of the future is to adopt the “green accounting” standards that translate socially and environmentally responsible behavior into monetary terms, the only language businesses understand. These standards have the potential of switching on the red light for all pollution-causing power plants, and those depleting the natural capital in any way, be it over-harvesting the forests, or exhausting the underground treasures – coal, oil, natural gas, etc. This paper will show how green accounting can help in changing the focus from the economic welfare to the total societal welfare, acknowledging the fact that human society is an integral part of the natural world. The paper will also briefly present the software developed by the authors that introduce the green accounting principles into the investment appraisal process, aiming at encouraging investments into renewable energy. The tool is also useful as a platform facilitating calibration of economic/financial instruments, like environmental taxes of governmental incentives, that are usually to boost renewable energy sector. The comparative analysis of investment into biofuel-powered combined heat and power production plant using two types of investment valuation standards, one based on conventional cash-flow analysis, the other based on green-accounting standards is detailed in the paper. The analysis is performed as a part of the European Commission Framework Program Project AFTUR, undertaken by the consortium consisting of respectful European Research Establishments in renewable energy area as well as major European biofuel-powered turbine producers. The results show that the wider adoption of green accounting standards would induce the unprecedented growth of the renewable energy sector, because it would make the investment into renewable energy attractive for investors.     

Roles and potentials of renewable energy in less-developed economies: The case of Nepal

Increasing the share of renewable energy in the national energy mix remains one of the major energy policy goals across many economies. This paper assesses the roles and potentials of renewable energy sources in less-developed economies while citing Nepal as an example. Renewable energy has a significant role to play in the electrification of rural areas in developing economies and contribute towards sustainable development. Realizing full potentials of renewable, however, requires addressing both the associated demand-side and supply-side constraints. Innovative subsidies and tax incentives, adequate entrepreneurial support, strengthening institutional arrangement and promoting local community-based organizations such as the cooperatives are the necessary factors in promoting the green technologies in countries like Nepal. International factors such as large scale investment and adequate technology transfer are equally crucial to create a rapid spread and increase affordability of decentralized renewable energy technologies in less-developed economies.     

Renewable energy technologies for the Indian power sector: mitigation potential and operational strategies

The future economic development trajectory for India is likely to result in rapid and accelerated growth in energy demand, with attendant shortages and problems. Due to the predominance of fossil fuels in the generation mix, there are large negative environmental externalities caused by electricity generation. The power sector alone has a 40 percent contribution to the total carbon emissions. In this context, it is imperative to develop and promote alternative energy sources that can lead to sustainability of the energy–environment system. There are opportunities for renewable energy technologies under the new climate change regime as they meet the two basic conditions to be eligible for assistance under UNFCCC mechanisms: they contribute to global sustainability through GHG mitigation; and, they conform to national priorities by leading to the development of local capacities and infrastructure. This increases the importance of electricity generation from renewables. Considerable experience and capabilities exist in the country on renewable electricity technologies. But a number of techno–economic, market-related, and institutional barriers impede technology development and penetration. Although at present the contribution of renewable electricity is small, the capabilities promise the flexibility for responding to emerging economic, socio–environmental and sustainable development needs. This paper discusses the renewable and carbon market linkages and assesses mitigation potential of power sector renewable energy technologies under global environmental intervention scenarios for GHG emissions reduction. An overall energy system framework is used for assessing the future role of renewable energy in the power sector under baseline and different mitigation scenarios over a time frame of 35 years, between 2000 to 2035. The methodology uses an integrated bottom-up modelling framework. Looking into past performance trends and likely future developments, analysis results are compared with officially set targets for renewable energy. The paper also assesses the CDM investment potential for power sector renewables. It outlines specific policy interventions for overcoming the barriers and enhancing deployment of renewables for the future.     

Investment preferences for wood-based energy initiatives in the US

The forest sector is poised to become a major supplier of wood-based energy in the US. Prospects for growth in energy demand and higher prices can create opportunities for private investments in renewable energy industries. A conjoint analysis examined individuals’ willingness to invest in wood-based energies following a random utility model. The study design included three investment attributes: annual returns on investment, type of investment, and location of investment. Three ordinal models that also included demographic and attitudinal characteristics indicate that wood-based energy is less preferred among potential investors compared to the stock market and solar/wind renewable energy investments. Expected returns and location of energy investments within the US are also major drivers of investment preferences. Favorable attitudes towards forestry and wood-based energy could enhance prospects for a greater number of potential investors.     

The economics and the environmental benignity of different colors of hydrogen

Due to the increasing greenhouse gas emissions, as well as due to the rapidly increasing use of renewable energy sources in the electricity generation over the last years, interest in hydrogen is rising again. Hydrogen can be used as a storage for renewable energy balancing the whole energy systems, and contributing to the decarbonization of the energy system, especially of the industry and the transport sector.The major objective of this paper is to discuss various ways of hydrogen production depending on the primary energy sources used. Moreover, the economic and environmental performance of three major hydrogen colors, as well as major barriers for faster deployment in fuel cell vehicles, are analyzed.The major conclusion is that the full environmental benefits of hydrogen use are highly dependent on the hydrogen production methods and primary sources used. Only green hydrogen with electricity from wind, PV and hydro has truly low emissions. All other sources like blue hydrogen with CCUS or electrolysis using the electricity grid have substantially higher emissions, coming close to grey hydrogen production. Another conclusion is that it is important to introduce an international market for hydrogen to lower costs and to produce hydrogen where conditions are best.Finally, the major open question remaining is whether – including all external costs of all energy carriers, hydrogen of any color may become economically competitive in any sector of the energy system. The future success of hydrogen is very dependent on technological development and resulting cost reductions, as well as on future priorities and the corresponding policy framework. The policy framework should support the shift from grey to green hydrogen.     

Optimal contracts for renewable electricity

Companies are increasingly choosing to procure their power from renewable energy sources, with their own set of potential challenges. This paper characterizes the contracts that minimize the cost of procuring a given amount of renewable energy from two risk averse, energy generators who are inherently unreliable (such as wind and solar). We contrast outcomes arising when investments are set in centralized and decentralized settings, with the absence of reliability addressed by either issuing orders in excess of what is needed or by investing in improved reliability. Our results suggest that future contracts may be geared towards a greater reliance on order inflation and lower investments in reliability as the cost of renewable energy keeps falling. The implications of these results for grid congestion and electricity spot market prices should be of interest to regulators and transmission system operators.