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

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

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

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

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

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

Präsentationstitel hier eintragen FRAME CONDITIONS BY MUNICIPALITY 100% fuel switch to biomass no LFO boiler for peak consumptions, or as back-up; Feasibility study done for 2 scenarios LFO + BB and 2BB Existing storage space for fuels can be used by private partner Public partner will have the possibility for implementation of energy efficiency measures in building during contract period Ministry of Education consulted for implementation of the project in high school (jurisdiction) Future sports hall heat consumption also foreseen GIZ-representative support as member of commission 29.04.2019 Präsentationstitel hier eintragen

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

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

PROJECT TIMELINE Initiation of a PPP Project proposal for the PPP project implementation made at the interested party's own initiative - GGE Consent of local government's assembly for initiation of PPP supported by GIZ by presenting “own financing scenario” 17.12.2014 Establishment of the Project team project leader, energy manager, law expert, financial expert

PROJECT TIMELINE Preparing the Proposal for PPP Feasibility study supported by GIZ: compared solutions ESCO and “OWN”; also two technical scenarios were taken in to account 1 BB + 1 existing boiler compared to 2 BB Model Contract supported by GIZ PPP Commission application submission 19.05.2015 PPP Commission approval 22.06.2015 Decision on granting consent and adopting the PPP proposal by the assembly of the local government unit 07.2015

PROJECT TIMELINE Legal Framework for PPP established and doable! Public call for awarding the public contract for PPP (bid submission deadline 52 days) expected to start by 15.12.2015 Receipt of offers and applications, Bid opening, Records for the bidders, Report on the expert assessment of bids (GIZ Commission member) approx. 2nd half of February Decision on selecting the most favourable bid, Signing the PPP contract Implementation by 2016 heating season Legal Framework for PPP established and doable!

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

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