Bioenergy in Energy Planning in Bosnia and Herzegovina Srdjan Vaskovic, Zoran Radovic Mechanical Faculty East Sarajevo

Activites in energy planinnig There are included knowledges: REAM, energy monitoring and targeting, energy planing in rural areas, energy planing on regional and national levels, energy efficiency and renewable energy in energy planing REAM (Regional Energy Analysing Model) is software for modeling and analyze stationary energy systems in local communities and region in Europe we can use REAM in BiH on local level planning - Economy – risk assessment, investment analysis

Methods of Calculating Profitability The most common methods of calculating profitability are: - Net present value method - Difference method - Net present value quotient method - Annual cost method (annuity method) - Internal rate of return method - Pay-off method - Energy savings cost method

Market Main market actors: Consumers Producers Policy (subidies, prices, taxes) Sales and Marketing Quality Rumors

Key factors in energy management Energy efficiency and renewable energy in energy planning Energy Management and Enviroment End Users Energy Consumption Competent People and Responsibility -Costs of fuel -Investment -Labour -Transport ∑ All Costs Accessibility of Fuels -bio -eletricity -coal -wood -gas Small Community Monitoring and Targeting -meters of energy -temperature of outside meters Organisation Key factors in energy management For realization energy management we have: Barriers: Possibilities: 1. Competence employes 1. Production enviromentaly friendly energy 2. Costs 2. Employment 3. Organizing procedure 3. Increase efficiency 4. Investment 4. Long – term price reduction 5. Raise Awareness

Natural Biomass Resources Wood biomass from cutting forest (forest residues) Residues from primary wood processing Agriculture residues Focus on significant and availble bionergy for each different region!!!

Technologies for collecting and processing of wood biomass Forest residues Technologies for harvesting and collecting forest and agriculture residues or energy crops (forwarders, skidders, chippers, etc) depend than type and available biomass and chipping place

Integrated system for wood chpis producing Wood chips from forest residues Very suitable for farm houses, rural areas where chips are easilily available, house have space to handle and store chips

Forest residues consist of small trees, branches, tops and un-merchantable wood left in the forest after the cleaning, thinning or final felling of forest stands, used as fuel without any intermittent applications. Three main sources of forest residues can be distinguished: slash from final fellings, slash and small trees from thinnings and cleanings, and un-merchantable wood. Three type for chipping: - Terrain chipping - Chipping at a landing (generally roadside chipping) - Terminal chipping - Chipping at plant Terrain chipper Type of harvesting and costs of harveting (Landwirtschaftskammersteiermark - Austrian Chamber of Forestry and Agriculture, 2007)

Visit of airport Gardermoen district heating We visited district heating plant in Gardemoen with next characteristics: Total installed power about 60 MW two biomass boilers 11 MW boilers on fossil fuels rest Biomass fuels for this plant is chips with moisture content 40% with price 0,23 NOK/KWh. Maximal consumption chips per day is 700 m3.

Residues from primary wood processing - Technologies for intermediate processing and storage wood biomass for producing energy cariers: briquette pellet Main purposes for densification wood waste are: suitable for transport and handling, lower costs for transport

Scheme of plant for produce briquette Capacity of plant 3t/h Heat value of 1 tone briquette With 12% moisture Invested energy for producing 1 tone briquette

Pellet manufacturing key factors Raw materials Dry wood processing by products Saw dust and other wet by products Straw and other agricultural by products, short rotation coppice Plant types Local and regional plants 2000 – 5000 tons/a, size fit to available raw material Plants for national and international market 50 000 – 200 000 tons/a Including raw material drying Possibly CHP plant Raw material often from several sources Pellet quality Standards for domestic boilers Bigger plants may accept different quality with different price

- End use technologies on biomass for heat power : Possibility for: Application Small-Scale and Middle-Scale boilers for heating (households) (public institutions (school, community buildings) With the old boilers on coal we can add new boilers where exist complet facilities for district heating in small town and rural area!

District heating plants in position for rural developing Posibilites with use district heating plants today: – Biomass fuelled district heating is economical even in small towns today – Single houses are joining district heating today – Municipal owned plant is common – Private companies offer heating services, a few networks are also owned and operated by private companies – Plant operation and fuel supply offer jobs Heat entreprenurship Heat enetrepreneur operates heating plant, is responsible of the fuel procurement ( often invests in the plant ) and is paid according to heat delivered Private company Co-operative (farmers, forest owners, contractors etc.) Typically 100 kW to 2 MW thermal capacity New business area

Conclusion First Opportunity for use biomass in rural area for BiH focused on wood biomas: Application Small-Scale and Middle-Scale boilers for heating in local area with sufficiently amounts wooden biomass or other residues (Fuel for this could be chips from forest) Second Opportunity for Developmnet Rural Area in BiH: Production briquettes and pellets (Raw material for production could be from primary wood industry Integrated system at the same time for production heat and drying raw materials for production pellets or briquettes is the best way

Main Barriers to investment in bio-energy: unnecessary or disproportionate bureaucratic restrictions; the risks which are inherent in any new market but which can be removed over time; economic constraints; market failures; and, ignorance of biomass and its potential.

Research are mostly focused on increase yield productivity, but there are serious need for education campaign, financial stimulation and guaranteed benefit for those who know how to realized opportunity to participated in energy market. Biomass power market requires the development of a feedstock supply system based on large-scale and sure production of biomass fuel and these requirements must be considered as soon as possible. Future expansion of the biomass power market is expected in next few years. The development of forestry management and including of wood industry in renewable energy production is a new sector with potential for considerable expansion, offering benefits for growers, developers, consumers, local communities and the environment.