Energy Projects in Serbia – Opportunities for German Companies

28. May 2013

Dr. Jürgen Welschof

Director KfW Office Belgrade

2

German Financial Cooperation: KfW Energy Portfolio in Serbia (2000 – 2013, under implementation and preparation)

GENERATION TRANSMISSION CONSUMPTION

Electricity Generation (EPS):

482 m EUR

District Heating Programmes

(32 District Heating Companies):

40 m EUR

DKTI Biomass Programme:

102 m EUR

Biomass Plant Subotica:

20 m EUR

Electricity Transmission

(EMS): 100 m EUR

District Heating

Programmes: 33 m EUR

District Heating

Programmes: 22 m EUR

Energy Efficiency

Programme for Public

Buildings – 20 Schools:

15 m EUR

Energy Efficiency Credit

Lines for SME and Private

Housholds: 128 m EUR

Energy Efficiency Credit

Lines for Municipalities:

30 m EUR

3

German Companies: High Shares in Supplies

EPS projects› German Supplies: 45 %› Serbian Supplies: 22,5 %› Other Countries of origin: 32,5 %

District Heating Programmes› German Supplies: 34 %› Serbian Supplies: 47 %› Other Countries of origin: 19 %

...… and German Consultants only!

4

ENERGY EFFICIENCY CREDIT LINES

Project Facts

› Investments in EE/RE projects in retail and SME› Technical assistance, energy audits and incentives for final users› Criteria: 20% improvement in EE and/or 20% reduction of CO2 › Projects up to EUR 1 million, i.e. max. EUR 5 million for RE › Grant-funded TA for banks

Results› Innovative EE/RE loan product in the financial sector› KfW, together with GGF, only IFI active in EE retail sector› Improved overall EE of the economy

5

ENERGY EFFICIENCY CREDIT LINES

State of Implementation

› EUR 128 million committed / 70% disbursed› Implemented through 7 banks and 1 leasing company

Challenges › Potential not fully used due to sub-optimal framework conditions

Outlook

› Increased price of electricity?› Implementation of new feed-in tariffs fore renewable projects› Enforcement of the new Law on Rational Use of Energy› New credit lines!