Alignment of Serbian Governmental Policy with Energy Efficiency

1. Programme Overview

1.1. Programme objectives

The overall objective of strategy programme 1: Aligning Serbian Governmental Policy with Energy Efficiency trends is to provide the Government of Serbia with a number of targeted tools and measures for governing the development of the energy sector in Serbia in an energy efficient direction.

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Immediate objectives

In general there are 5 different types of policy instruments, which can be used in connection with promoting increased energy efficiency:

1. Legislation/regulation. Laws, by-laws, standards, codes;
2. Economic measures. Taxes, subsidies, tariffs;
3. Research and development. Targeted efforts to develop more energy efficient technologies as well in connection with energy production as end-use sectors. Development of improved strategies in connection with change of behaviour (social engineering) might also be within the scope of research and development activities.
4. Information and education. Information and education of energy users on how to use energy more efficiently.
5. Data and statistics. Provision of energy data and energy statistics for making the strategies and for monitoring the development including investigation of potentials for energy savings.

These five types of policy instruments supplement each other, and the governmental policy should include all types of elements to achieve the best results. Thus strategy programme 1 is developed to ensure that the Governmental energy efficiency policy includes instruments covering all 5 types of measures. The immediate objectives of the strategy programme 1 is thus to:

• Introduce legislation and regulation promoting and supporting energy efficiency;

• Introduce the use of economic instruments which includes incentives to increase the energy efficiency;

• Increase research and development, which creates a basis for development of energy efficient technologies and behaviour;

• Implement information strategies, campaigns and education activities in order to increase awareness of energy efficiency and to provide knowledge on how to act;

• To improve the data and statistics in order to create a reliable basis for development of strategies and to measure results of the actions;

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1.2 Sub-programmes

ID	Sub-programme	Projects
1.1	Establish National Energy Efficiency Regulatory Framework
	Introduce legislation and regulation promoting and supporting energy efficiency.	1.1.1 To get an overview of all existing energy efficiency legislation and regulation in Serbia to discover missing legislation/regulation.
		1.1.2 To establish and reinforce relations with EU institutions and sister organisations in Europe, focusing on energy efficiency (EE), rational use of energy (RUE), renewable energy sources (RES) and EU policies and directives.
		1.1.3 To advice SERA in issues relevant for energy efficiency and in general in issues within the scope of SEEA's activities.
		1.1.4 To assist SERA in establishing a legal basis for Independent Power Producers (IPP's) and thus remove barriers for IPP's in the Serbian electricity supply system.
1.2	Create Economic Incentives for energy savings
	Introduce the use of economic instruments which includes incentives to increase the energy efficiency.	1.2.1 To investigate the effect on energy savings and barriers of different tariff systems for heat and electricity. Furthermore to investigate the effect, costs and barriers for different models for billing according to measured consumption.
		1.2.2 To introduce targeted fiscal measures (taxes, subsidies, support to needy groups) which promote the energy efficiency and which contribute to direct the consumption in a more efficient and/or less polluting direction.
		1.2.3 To establish a revolving energy efficiency fund in Serbia, the Serbian Energy Efficiency Fund (SEEF).
		1.2.4 To investigate the possibilities for providing foreign capital to invest in energy efficiency projects in Serbia by use of mechanisms from the Kyoto protocol.
1.3	Cooperation with research and development institutions
	Assist in the increase of research and development, which creates a basis for development of energy efficient technologies and behaviour.	1.3.1 To co-operate with research and development institutions at technical universities to enforce research and development to promote development of energy efficient technologies and behaviour, including to facilitate participation of Serbian institutions in international R&D projects such as intelligent Energy for Europe.
		1.3.2 To achieve a faster penetration of energy efficient solutions and technologies at the market and to achieve energy savings through use of more efficient equipment.
1.4	Information & education
	Implement information and education strategies, campaigns and activities in order to increase awareness of energy efficiency and to provide knowledge on how to act.	1.4.1 To develop an energy information strategy to establish a frame for prioritisation and implementation of information activities to achieve most effect of the money spent. To define to whom the communication is directed, on what and how to communicate.
		1.4.2 Promote labelling of household appliances to assist consumers in the purchasing situation on the energy consumption through visible labels.
		1.4.3 To implement a number of concrete campaigns which increase the awareness of the public on energy issues and which help them act in an energy efficient manner.
1.5	Energy efficiency statistics, data and analytic tools
	To improve the data and statistics in order to create a reliable basis for development of strategies and to measure results of the actions.	1.5.1 To establish targets for data collection and the statistical reporting on energy efficiency.
		1.5.2 To develop a number of energy efficiency measures, which can be used in analysing and deciding on policy measures and monitoring the development; To provide analytic tools and models and to train staff in use of analytic tools and models.
		1.5.3 To report at regular basis energy efficiency statistics as agreed with MoME.

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2. Programme implementation plan

2.1 Prioritisation of projects

A procedure has been laid down by SEEA for the evaluation of the projects. As it is of utmost importance that projects implemented by SEEA will show an impact in different ways on the energy efficiency and on short term and long term effects in the energy sector in general, a number of criteria for evaluating the projects has been identified. These criteria are included in table below, which is a general spreadsheet tool for prioritisation of the projects:

Main criteria / subcriteria	Main criteria	Sub-criteria	Impor-tance %	Evaluation
				1 to 5	Summa
Energy saving impact	25				25
Low marginal price per MWh saved (€/MWh)		10	40	5	10
Energy savings (short term: < 3-4 years)		10	40	5	10
Energy savings (long term)		5	20	5	5
EE Public awareness impact	20				20
Impact on the public		20	100	5	20
Institutional Building at stakeholders	20				20
Institutional effect on participating institutions		20	100	5	20
Sustainable environmental development	10				10
Long term environment impact (CO2 saved (€/ton CO2))		10	100	5	10
SEEA value (MoME)	25				25
Replication potential		15	60	5	15
SEEA Public Relation value		5	20	5	5
SEEA development		5	20	5	5
	100	100			40*

* The ranking value of 40 in the table is the maximum and has been calculated as a weighted score minus 60, which corresponds to the score obtained when giving the character 3 on all issues.

The main criteria laid-down for the evaluation are:

• Energy saving impact
• EE Public awareness impact
• Effect on the institutional building at the stakeholders
• Effect on a sustainable development
• Value for the SEEA operating on energy efficiency for the state (MoME)

The selection of projects for implementation will not only take point of departure in this ranking. This applies especially for the projects in Strategy Programme 1, which does not consist of concrete projects, but energy policy-related initiatives, which mainly will be implemented by public authorities with SEEA as a main responsible unit.

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2.2 Procedures and guidelines for project implementation

The SEEA will use the 'project cycle approach' which is applied by the EU, as the basis for implementing its projects. The sequence of actions will in general be:

• decision on initiating a project based on the one-page format
• investigating the stakeholder interest and possible involvement
• elaboration of a project document based on the 'Project Document Format'
• evaluating the implementation on the basis of the 'Project Document'
• approval of the project in accordance with the funding criteria and provisions
• allocation of project manager, staff and preparing for project monitoring and PR actions
• updating the SEEA manpower allocation taking into account the decision made
• implementation
• monitoring and evaluation
• reporting, dissemination and PR

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3. Programme monitoring plan

A monitoring and evaluation plan will be made for the implementation of the SEEA programmes and adequate performance indicators will be implied. The rationales behind these exercises are:

• to make it possible for SEEA to demonstrate good performance
• to meet the evaluation requirements of the different stakeholders
• to allow for adjusting the programmes and their implementation
• to enable feed-back to the policy level

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