Construction of Plants and Electricity/Heat Generation from Biomass in the Republic of Serbia - Legal Aspect

Sources of Law (*14)

Construction of biomass/biogas power plants and engaging in the activities of electricity and/or heat generation in such plants are regulated by numerous laws and regulations of the Republic of Serbia.

The sources of law of the Republic of Serbia referred to herein can be divided into two main groups of statutes and regulations, which will be detailed in further chapters hereof.

The first group of regulations includes those governing the area of construction of a concrete energy facility and the procedure for obtaining the Construction Permit for such a facility, as well as the method of determining the fitness of the facility for use and obtaining of the operating permit for the actual facility.

The second group of regulations includes those dealing with the acquiring of the right to engage in electricity and/or heat generation, since this is a two-step procedure: the first step is to acquire the right to engage in the activities of public interest, and the second one is to acquire the right to engage in an energy-related activity.

It should be emphasized that the Law on Concessions (*15) is the only statute of the Republic of Serbia, further to which one may simultaneously acquire the right to construct an energy facility and the right to engage in the activities of public interest.



Construction of biomass/biogas plants and engaging in activities of electricity generation in the Republic of Serbia are regulated under the following laws and regulations:

The Law on Planning and Construction (*16), the Law on Spatial Plan of the Republic of Serbia (*17) and relevant Planning Documents (*18), the Energy Law, the Law on Ratification of the SEE Energy Community Treaty between the European Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo, pursuant to the United Nations Security Council Resolution 1244 (*19), the Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other (*20), the Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (*21), the Decree on Conditions of Electricity Delivery (*22), the Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements (*23), the Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (*24), the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application and Procedure for Issuing Energy Permits (*25), the Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses for Engaging in Energy-related Activities (*26), the Energy Sector Development Strategy of the Republic of Serbia (*27), the Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015 for the Period from 2007-2012 (*28), the Law on Public Companies and Activities of Public Interest (*29), the Law on Public Utility Services (*30), the Law on Waters (*31), the Decree on Compensation for Water Use, Water Protection, and Compensation for Excavated Materials from Watercourses for 2010 (*32), the Rulebook on Contents of Technical Documentation to Be Submitted in the Procedure for Obtaining the Water Approval and Water Permit (*33), the Law on Environmental Protection (*34), the Law on Strategic Environmental Impact Assessment (*35), the Law on Environmental Impact Assessment (*36), the Law on Integrated Pollution Prevention and Control (*37), the Law on Air Protection (*38), the Law on Waste Management (*39), the Law on Nature Protection (*40), the Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required (*41), the Decree on Types of Plants and Activities Eligible for Issuance of Integrated Permits (*42), the Rulebook on Contents of the Application for Decision on the Need for Environmental Impact Assessment (EIA) Study and Scope and Contents of EIA Study (*43), the Rulebook on Contents of Environmental Impact Assessment Study (*44), the Criteria and Standards for Determining Energy License Fees for Engaging in Energy-related Activities (*45), including the Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 2010 (*46), the Rulebook on Contents of Information on Location and Contents of Location Permit (*47), the Rulebook on Contents and Procedure for Issuing Construction permits (*48), the Rulebook on Contents and Method of Carrying Out Technical Inspection of Structures and the Procedure for Issuing Operating Permit (*49), the Rulebook on Contents, Scope, and Manner of Producing Pre-Feasibility and Feasibility Studies for Construction of Structures (*50), the Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge, and Planner-in-charge (*51), the Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of Requirements for Issuance or Revoking the License for Preparation of Technical Documentation and License for Construction of Structures, for which the approval for construction is issued by the Ministry or by the Autonomous Province (*52), the Rulebook on Scope and Method of Doing Review of Main Designs (*53).

BIOMASS/BIOGAS POWER PLANTS

The biomass/biogas power plants are the facilities for generation of electricity, heat or combined heat-and-power, consisting of one or more production units. Combined heat-and-power generation represents simultaneous generation of both electricity and heat. Power plants can be based on various technologies, including: different types of boilers, internal combustion engines, and plants with gas turbines.

Further to the prevailing regulations, power plants can be classified according to several criteria, in view of the following laws and regulations:

- The Energy Law,
- The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits,
- The Law on Planning and Construction,
- The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements,
- The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required.

The Energy Law defines power plants as follows: 1) Large power plants, and 2) Small power plants.

Small power plants have a capacity of up to 10 MW while large power plants have or exceed the capacity of 10 MW.

The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits stipulates the following electricity/heat generating facilities:

1) Facilities for electricity generation of a rated capacity from 1 MW to 10 MW,
2) Facilities for electricity generation of a rated capacity that exceeds 10 MW,
3) Facilities for heat generation having an installed capacity in excess of 1 MW.

The Law on Planning and Construction specifies the authorities in charge of issuing the Construction Permits, as follows:

1) For the power plants generating electricity/heat using renewable sources of energy and having or exceeding the capacity of 10 MW, as well as for combined heat-and-power plants, the Construction Permits shall be issued by the Ministry in charge of civil engineering affairs, or by the Autonomous Province, respectively,
2) The power plants of a capacity below 10 MW shall be within the remit of local self–government bodies.

The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements defines the power plants eligible to obtain the status of a privileged power producer, specifically:

1) Power plants utilizing only biomass in their production processes, or biomass combined with a secondary fossil fuel or waste, provided that the calorific value of the biomass used on annual level makes up at least 80% of the total primary fuel,
2) Combined heat-and-power plants using fossil fuels or fossil fuels combined with a renewable energy source or waste, provided their total annual efficiency levels exceed the corresponding values of the minimum total annual efficiency levels of a combined heat-and-power plant stipulated in this Decree.

The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required makes a distinction between the following plants:

1) Plants having or exceeding the capacity of 50 MW (List I) – for which the Environmental Impact Assessment Study is mandatory, and
2) Plants having a capacity from 1 to 50 MW (List II) – for which EIA Study may be required.



Details of Relevant Legislation:

(*14) The sources of law referred to in this document were in force on August 27, 2010. (*15) The Law on Concessions (Official Gazette of the RoS, No. 55/03).
(*16) The Law on Planning and Construction (Official Gazette of the RoS, Nos. 72/09 and 81/09).
(*17) The Law on Spatial Plan of the Republic of Serbia (Official Gazette of the RoS, No. 13/96).
(*18) Planning documents include spatial plans and urban plans. Spatial plans include: 1) The Spatial Plan of the Republic of Serbia, 2) The Regional Spatial Plan; 3) Spatial Plans of Local Self-Government Units; 4) Spatial Plans of Special-use Areas. Urban plans include: 1) Urban Master Plan; 2) General Regulating Plans, 3) Detailed Regulating Plans.
(*19) The Law on Ratification of the SEE Energy Community Treaty between the European Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo, pursuant to the United Nations Security Council Resolution 1244 (Official Gazette of the RoS, No. 62/06).
(*20) The Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other (Official Gazette of the RoS, No. 83/08).
(*21) The Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Official Gazette of the RoS, No. 38/09).
(*22) The Decree on Conditions of Electricity Delivery (Official Gazette of the RoS, No. 107/05).
(*23) The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements (Official Gazette of the RoS, No. 72/09).
(*24) The Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/09).
(*25) The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits (Official Gazette of the RoS, Nos. 23/06 and 113/08).
(*26) The Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses for Engaging in Energy-related Activities (Official Gazette of the RoS, Nos. 117/05, 40/06, and 44/06).
(*27) The Decision on the Energy Sector Development Strategy of the Republic of Serbia by 2015 (Official Gazette of the RoS, No. 44/05).
(*28) The Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015, for the Period from 2007-2012 (Official Gazette of the RoS, Nos. 17/07, 73/07, 99/09, and 27/10).
(*29) The Law on Public Companies and Activities of Public Interest (Official Gazette of the RoS, Nos. 25/00, 25/02, 107/05, and 108/05).
(*30) The Law on Public Utility Services (Official Gazette of the RoS, Nos. 16/97 and 42/98).
(*31) The Law on Waters (Official Gazette of the RoS, No. 30/10).
(*32) The Decree on Compensation for Water Use, Water Protection, and Compensation for Excavated Materials from Watercourses for 2010 (Official Gazette of the RoS, No. 17/10).
(*33) The Rulebook on Contents of Technical Documentation to Be Submitted in the Procedure for Obtaining Water Approval and Water Permit (Official Gazette of the RoS, No. 3/78).
(*34) The Law on Environmental Protection (Official Gazette of the RoS, Nos. 135/04 and 36/09).
(*35) The Law on Strategic Environmental Impact Assessment (Official Gazette of the RoS, No. 135/04).
(*36) The Law on Environmental Impact Assessment (Official Gazette of the RoS, Nos. 135/04 and 36/09).
(*37) The Law on Integrated Pollution Prevention and Control (Official Gazette of the RoS, No. 135/04).
(*38) The Law on Air Protection (Official Gazette of the RoS, No. 36/2009).
(*39) The Law on Waste Management (Official Gazette of the RoS, No. 36/09).
(*40) The Law on Nature Protection (Official Gazette of the RoS, No. 36/09).
(*41) The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required (Official Gazette of the RoS, No. 114/08).
(*42) The Decree on Types of Plants and Activities Eligible for Issuance of Integrated Permits (Official Gazette of the RoS, No. 84/05).
(*43) The Rulebook on Contents of the Application for Decision on the Need for an Environmental Impact Assessment (EIA) Study and Scope and Contents of EIA Study (Official Gazette of the RoS, No. 69/05).
(*44) The Rulebook on Contents of Environmental Impact Assessment Study (Official Gazette of the RoS, No. 69/05).
(*45) The Criteria and Standards for Setting Energy License Fees for Engaging in Energy-related Activities (Official Gazette of the RoS, Nos. 14/06, 40/06,126/07, and 120/08).
(*46) The Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 2010 (Official Gazette of the RoS, No. 109/09).
(*47) The Rulebook on Contents of Information on Location and Contents of Location Permit (Official Gazette of the RoS, No. 3/10).
(*48) The Rulebook on Contents and Procedure for Issuing Construction permits (Official Gazette of the RoS, No. 26/10).
(*49) The Rulebook on Contents and Method of Carrying Out Technical Inspection of Structures and the Procedure for Issuing Operating Permit (Official Gazette of the RoS, No.
111/03).
(*50) The Rulebook on Contents, Scope, and Manner of Producing Pre-Feasibility and Feasibility Studies for Construction of Structures (Official Gazette of the RoS, No. 80/05).
(*51) The Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge, and Planner-in-charge (Official Gazette of the RoS, Nos. 116/04, 69/06).
(*52) The Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of Requirements for Issuance or Revoking the License for Preparation of Technical Documentation and License for Construction of Structures, for which the approval for construction is issued by the Ministry or by the Autonomous Province (Official Gazette of the RoS, No. 114/2004).
(*53) The Rulebook on Scope and Method of Doing Review of the Main Designs (Official Gazette of the RoS, No. 36/98).

Note: This text is taken from the document-guide for investors "Construction of Plants and Electricity/Heat Generation from Biomass in the Republic of Serbia", of which authors are Dr. Branislava Lepotic Kovacevic, PhD Law, and Bojan Lazarevic, BSc El. Eng.

The project was implemented under the patronage of USAID, GTZ / GIZ Serbia and the Ministry of Energy in 2010.

USAID Srbija

GIZ Beograd

biomass

biogas

biogas plants

electricity generation from biomass

heat generation from biomass

biomass plants

Law on concessions

Law on planning and construction

Law on energy

small power plants

big power plants

Branislava Lepotic Kovacevic

Bojan Lazarevic