SINGIDUNUM UNIVERSITY

FACULTY OF TECHNICAL SCIENCE

THESIS
The theme:

Benefits of using electricity from renewable energy sources

Professor: Student :
Prof.Goran Avijas Đorđe Kostić
Index no. : 2017230170 

May, 2022 year.

 SINGIDUNUM UNIVERSITY
FACULTY OF TECHNICAL SCIENCE

THESIS
The theme:

Benefits of using electricity from renewable energy sources

Commission members:

1._______________________________________________

2________________________________________________

May, 2022 year.

2
 CONTENT

Introduction.............................................................................................................................................................................................. 4
1. Renewable energy........................................................................................................................................................................... 5
2. Photovoltaic technology............................................................................................................................................................... 10
3. Components of photovoltaic systems....................................................................................................................................... 12
4. Development of renewable energy projects............................................................................................................................ 15
5. Potentials of photovoltaic devices............................................................................................................................................. 19
6. Possibilities of using solar thermal energy.............................................................................................................................. 20
7. ALTERNATIVE SOURCES-WIND BIOMASS AND BIOGAS.................................................................................. 23
8. Shortcomings of renewable energy sources............................................................................................................................ 32
9. Financing of renewable energy projects.................................................................................................................................. 38
10. Cost-effectiveness analysis........................................................................................................................................................ 40
Conclusion............................................................................................................................................................................................ 44
literature............................................................................................................................................................................................... 45

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 INTRODUCTION

Renewable and alternative energy sources, some of which are completely new and some have been
used for a long time, include photovoltaic systems, heat collectors, wind potential, water potential,
geothermal potential, biomass, fuel cells, etc. Some of these sources enable profitable production of
electricity or thermal energy, while some are still in the development phase, so their commercial
application is still expected.
Technologies and systemic aspects of electricity production from solar, hydroelectric, geothermal
sources, and with the help of wind energy and biomass are considered, first of all. Some other
technologies that are still being researched and developed are also considered, such as are fuel cells.
The overview of technologies that have been used for a long time, as well as the presentation of the
possibilities of their application in Serbia, is given more completely and on a wider scale.

The common feature of all renewable and alternative technologies presented in this publication is
characterized by a relatively high degree of initial investment, but also their subsequent low operating
price. On the other hand, the real price of conventional power plants is usually not properly calculated,
nor presented in the right way. It should be noted that there are still numerous state subsidies for oil
refining and use technologies, nuclear power plants, thermal power plants, as well as related
technologies.

However, as renewable energy sources have a significantly lower operating price compared to
conventional energy sources, the overall energy price is more favorable based on analysis of
technological cycles, especially from the ecological aspect. Namely, an important aspect of renewable
energy sources is their negligible impact on the environment, and from that aspect many of them are
economically competitive with conventional energy production technologies.

A significant part of the electricity produced in China is generated by more than a hundred small
hydropower plants. More than 2,000 megawatts of electricity in the United States are produced using
geothermal energy sources, and several thousand megawatts produced in Mexico, the Philippines, Italy,
Iceland, Indonesia, Japan, Russia and New Zealand testify to the widespread and feasible nature of this
technology. Prototypes of power plants that use fuel cells to generate electricity are already in operation
in the United States, Canada, Europe and Japan. In addition, cars and buses using fuel from fuel cells
are increasingly being used in the North.America, Europe and Japan.
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 1. RENEWABLE ENERGY

Renewable energy sources have significant potential for advancing human development. Energy from
renewable sources - water, wind, solar and biomass, among others - can make it easier for millions of
people to access clean and safe energy. It can provide a boost to social and economic development,
contributing to society 's response to environmental challenges, and play a key role in successfully
tackling climate change.
We will consider most of the mentioned renewable energy sources as distributed energy sources of low
power, which means that a power plant that uses renewable sources can produce up to several tens of
megawatts of electricity (large thermal power plants or nuclear power plants can produce more than
2000 megawatts).
Certainly, many of the renewable or alternative energy sources can also be used to build high-power
generators, and of great importance, generators powered by renewable energy sources are
environmentally friendly. For example, it is possible to install solar photovoltaic generators on a large
number of roof structures, but it is quite it is certain that the vast majority of people would not allow
the construction of a thermal power plant or a nuclear power plant in their immediate vicinity.

1
On the other hand, relatively low power, higher cost and occasional intermittent operation are the
disadvantages of renewable energy generators, and the expansion of their use requires innovative ideas
to overcome these shortcomings. For example, a hybrid system that includes solar photovoltaic
modules, wind and fuel cells, would compensate for the shortcomings of generators exclusively on
wind or sun, because they do not work continuously. There are certainly many ways to use modern
technologies to exploit renewable and alternative energy sources. For example, satellite imagery can be
used to predict cloud and wind movements, thus providing significant information for operation and
calculation of solar or wind generators, as well as hydro power plants. Thus, renewable energy
technologies not only provide us with access to ecological energy sources, but can also enable new
challenging scientific research projects and the creation of new jobs for scientists and engineers.

1
GIZ (Deutsche Gesellschaft für Internationale Zussamanarbeit GmbH) (2012): Legal Frameworks for
Renewable Energy: Policy Analysis for 15 Developing and Emerging Countries, Eschborn, Germany
http://www.icafrica.org/fileadmin/documents/Knowledge/GIZ/Legal%20Frameworks%20for
%20Renewable%20Energy.

5
Imagine a world in which every citizen has reliable access to electricity and fuel that he can afford
without negative effects in the form of environmental pollution and greenhouse gas emissions. In such
a world, all children would have lighting in their homes and could study in the evening thanks to that
lighting, families would have access to medicines that need to be stored in a refrigerator, mobile phones
would be available to everyone, as their batteries could be recharged without delays, and communities
would have the opportunity to start small businesses that would provide income for many people. The
development of renewable energy sources brings a number of benefits.
Aim of this paper is to help future investors, who would invest in production of renewable energy
sources to better understand how renewable energy is used and to clarify the process of becoming
producer of renewable energy. In this article, i will start with explaining what renewable energy is, then
i will talk more about photovoltaic technology, it’s potential and development. Later, i will also explain
alternative source of energy such as wind, thermal, biomas, biofuel etc. At the end of this thesis i will
explain the shortcomings of renewable energy, its financing, cost efectivnes and return of investment.

It can create significant opportunities for economic development and employment, and can contribute
to securing new investments in a wide range of industries , both locally and nationally. Renewable
energy technologies also provide a unique opportunity to limit carbon emissions without compromising
access to energy, which has significant implications for slowing climate change. Third, the
development of renewable energy sources in a country will create access to inexhaustible energy, thus
reducing the country's reliance on foreign countries resources and increases its energy security.

In addition, whether used on a large scale to supply a city with energy, or on a small scale to power a
small rural grid, renewable energy sources bring great health benefits, providing clean, safe energy
without the negative effects of fossil fuels. In addition to wider benefits, renewable energy sources are
also an important catalyst for rural electrification. Many rural communities in developing countries
have access to at least one form of sustainable energy, whether it is strong solar radiation , solar energy,
a river, a micro hydropower plant or a reliable wind, to run a wind turbine. These resources can be used
to produce clean electricity, even in communities far from the national grid. This example illustrates
how renewable energy sources will have the potential to transform economies around the world in the
years to come.

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However, there are significant obstacles that need to be overcome in the development of the use of
renewable energy sources. Technical barriers, once a major challenge, are now becoming less, thanks
to significant technological innovations. Renewable energy technologies are fast becoming more
efficient, cost-effective and affordable. Economic barriers are mainly related to the cost of electricity
production and the constant presence of subsidies for fossil fuels. Parliamentarians can influence the
resolution of both of these issues by ensuring that the use of renewable energy sources is competitive
under a level playing field, allowingattract the investments necessary to launch large-scale projects.
The cost of producing energy from renewable sources has been greatly reduced in recent years, thanks
to technological advances and economies of scale, and their declining trend continues.

The biggest obstacle to the use of renewable energy sources in many countries is the policy framework
that regulates the markets for electricity and heat and transport fuels. It is common for the electricity
market to be managed by a monopoly organization, often a state-owned public company, which fully
controls the production, distribution and sale of electricity to consumers.
This situation provides very little incentive for the development of alternative technologies. A
challenge in this sense is the bureaucracy that must regulate and approve the development of electricity
production, ie the production of thermal energy or fuel for transport. The use of renewable energy
sources within the existing electricity grid can be significantly accelerated in this way which will
ensure that policy frameworks and legislation are fully coherent and that the decision-making process is
transparent.

The current energy dependence of most countries on oil and its derivatives requires significant
economic expenditures and in the future suggests negative effects on national economies, as well as on
the international security situation. According to oil companies, as well as other national statistics ,
total world oil consumption is almost 4 billion tons per year, while total reserves are about 120-160
billion tons.

Fossil fuel supplies are rapidly depleting, and within a decade or two most countries will be forced to
use renewable energy sources to meet their energy needs. Certainly, the development of new
technologies for oil and coal exploitation is certain, but with an increase in environmental, energy and
economic expenditures that will inevitably condition the unprofitability of their future use.
Due to the concentration of energy resources in only a few areas in the world, the use of fossil fuels has
created a system of interdependence, so that countries that depend on fossil fuel imports are in
7
subordinate positions. On the other hand, the result of this situation is not only the concentration of the
energy economy, but the constant increase in energy infrastructure prices and the increase in trade
imbalances.

Exporting countries base their economies solely on the export of energy raw materials, which leads to
political, economic and social instability. Widespread use of nuclear and fossil energy raw materials
endangers human existence, because it has a direct negative impact on human health. Predicted climate
change, the possibility of nuclear contamination and unresolved problems related to the production of
plutonium in nuclear reactors, create additional problems and dangers.

In industrialized countries, only 7% of the total R&D fund is allocated to renewable energy sources
compared to 70% for research and development of nuclear and other technologies. It is clear that the
use of renewable energy sources must be given the highest political and economic priority, in order to
make a reorientation towards these energy sources and their technological development. Combustion of
fossil fuels, especially those based on oil and coal, is the most likely cause of global warming, thus
creating the so-called greenhouse effect.

Climate change is one of the most serious threats to the earth's ecological system due to its possible
impact on food production and key processes that create a productive natural environment. A worrying
increase in carbon dioxide emissions into the atmosphere, among other factors, can lead to a reduction
in dependence on coal use and encourage the development and use of renewable energy technologies.
Although the use of fossil fuels per capita has been reduced due to measures to conserve natural
resources, world population growth is leading to a faster decline in fossil fuel stocks and an increase in
global warming. It is also for the same reasons an estimate of the current energy situations in the world
are not adequate, ie fossil fuel stocks are probably overestimated.

8
 Diagram 1. Global clean energy scenario

The energy of solar radiation is more than enough to meet the growing energy requirements in the
world. In one year, the solar energy that reaches the earth is 10,000 times greater than the energy
necessary to meet the needs of the entire population of our planet. About 37% of the world's energy
demand is met by electricity production (approximately 16,000 TWh in 2001).

If this energy were generated by photovoltaic systems with a modest annual output of 100 kWh per
square meter, an area of 150 x 150 km2 would be necessary for the accumulation of solar energy. A
large part of this absorption surface could be located on the roofs and walls of buildings, so it would
not require additional ground surfaces.

The energy of solar radiation is enough to produce an average of 1,700 kWh of electricity per year per
square meter of soil, and the higher the radiation at a location, the higher the energy generated. Tropical
regions are more favorable in this respect than other regions with a more temperate climate.
9
The average radiation in Europe is about 1,000 kWh per square meter, while for comparison, it is 1,800
kWh in the Middle East . The intensity of solar radiation in Serbia is among the highest in Europe. The
importance of their ground use became relevant during the global energy crisis of the early 1970s,
when improvements began to be made about improving their performance, increasing efficiency,
greater reliability and lower production costs.

Today, photovoltaic conversion implies high technology of electricity production from solar energy.
Conceptually, the photovoltaic device in its simplest form is a consumer of solar energy only, which
has no moving parts, whose work meets the highest environmental standards and if it is well protected
from environmental influences there are no parts that can wear out.

Photovoltaic systems are modular so their power can be design for virtually any application. Moreover,
additional power-boosting parts are easily adapted to existing photovoltaic systems, which is not the
case with conventional power sources, such as thermal and nuclear power plants, whose economic
viability and feasibility require multi-megawatt installations.

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 2. PHOTOVOLTAIC TECHNOLOGY

In order to understand various aspects of photovoltaic generated current, it is necessary to know the
basic principles of photovoltaic devices. Photovoltaic cells, which otherwise exist in various forms, are
most often formed when special diodes of larger area are made of semiconductor material. The
separation of the electric current generated in the semiconductor is done by means of contacts on the
front and back of the cell. The upper contact structure must allow light to pass through, and the cell is
also covered with a thin layer of dielectric material - an anti-reflective layer - to minimize the reflection
of light from the upper surface.

Figure 1. Silicon solar cell

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The special semiconductor material from which photovoltaic cells are made, allows electrons that
absorb light energy to be released from their atoms, and then to move freely through the material
carrying electricity. The current generated in this way, since it moves only in one direction (as with
batteries), is one-way. Since the output power of one solar cell is relatively small, in order to increase
the output voltage, current and power, solar cells are grouped into modules, so that the modules
become basic components of photovoltaic systems.

The modules contain a certain number of photovoltaic cells connected in series or in parallel in order to
obtain the desired voltage, ie electricity, and are encapsulated to protect against unwanted
environmental influences and to extend service life. In a typical solar module, the cells are immersed in
a laminate whose front layer is made of tempered glass, and the back side is closed with a soft and
flexible plastic layer or glass. Photovoltaic panels contain one or more modules that can be used
individually or in groups in order to form modular systems, together with supporting structures and
other necessary supporting components ... The systems can be fixed in a certain position towards the
sun or their position can be mechanically adjusted continuously to the direction of the sun's rays (solar
monitoring systems).

Photovoltaic systems are classified either by their intended use (terrestrial or space), or by design (flat
or hub), as well as by their configuration (fixed or mobile). Solar modules are produced in a wide range
of powers from 1W to 170 W.

Based on the type of silicon material, photovoltaic cell and module production technologies can be
classified as single (mono) crystalline, polycrystalline and amorphous. In addition to silicon-based
technologies, there are other technologies based on CIS, CdTe, GaAs, InP, etc. Each type has different
efficiency, reacts to different parts of the solar spectrum and is suitable for different applications. The
efficiency of a solar cell of a certain surface is given as a percentage of the energy generated by a given
amount of incident light (photons).

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 3. COMPONENTS OF PHOTOVOLTAIC SYSTEMS

Monocrystalline silicon cells are very stable and show high efficiency in energy conversion.
Polycrystalline silicon solar cells are a cheaper alternative to monocrystalline cells but have certain
advantages because they require less pure material and can be adapted to automated mass production
due to the way the starting material is prepared.

Thin-layer materials (films), whose thickness is only a few microns, reduce the price of electricity
obtained from the sun due to material savings. Thin photovoltaic films, which, although slightly lower
in efficiency, also have a lower cost, which plays an important role in determining profitability of
photovoltaic technologies. The most popular material for making thin films is amorphous silicon, while
today polycrystalline materials such as CIS and CdTe are also used.

Standard components of photovoltaic systems are photovoltaic modules, battery charging controllers,
accumulators, conductors and carrier systems, and modern systems often use inverters that allow
flexibility to convert direct current to alternating current, as well as the possibility of connecting to the
electricity distribution network. The direct current produced in the solar cell is conducted to the charge
controller via a conductor .

2
The basic function of the controller is to prevent overcharging of the battery, but it also has some other
roles depending on the specific applications. If the battery is not fully charged, there is electricity to the
battery, where the energy is stored for later use. If the system needs to run devices running on
alternating current, part of the photovoltaic system will be inverters that convert direct current into
alternating current.

Excess energy generated in autonomous photovoltaic systems during solar periods is collected either in
batteries or in photovoltaic systems for pumping water, water is dictated during the day in tanks located
at higher levels, for later pumping water by gravity. Other photovoltaic systems convert direct current
into alternating current, and inject excess electricity into the electricity distribution network. Three

2
Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf

13
typical configurations of photovoltaic systems are: autonomous systems, systems connected to the
distribution network and hybrid.

Figure 2. PV system components

Photovoltaic systems are very diverse: they can be smaller than coins and larger than a football field,
and they can provide energy for any device, from clocks to entire neighborhoods, and the only source
of energy they use is sunlight. In addition to ease of handling, these factors make them particularly
attractive for a wide range of applications.

The recent increase in the production of photovoltaic cells, along with the reduction of their price, has
opened a large number of new markets with a large number of different applications. Applications such
as lighting, telecommunications, cooling systems, water pumping, as well as the provision of electricity
for entire settlements (especially in remote areas),they have proven to be competitive and profitable
compared to already existing technologies.

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 4. DEVELOPMENT OF RENEWABLE ENERGY PROJECTS

Developing renewable energy projects involves significant pre-project investments. If it intends to

significantly reduce its reliance on non-renewable energy sources, the state needs to invest significant
funds in infrastructure for energy production and transmission, and these costs could amount to billions
of dollars. In order to develop capacities for the production and use of renewable energy sources on a
large scale, investments from the private sector are necessary.

Historically, private financiers have been reluctant to invest in renewable energy projects, as such
projects were considered very risky, and there is a high probability that they will not return invested
investment (or do not make a profit on it). Parliament can contribute to reducing the risk of such
investments by promoting a legal framework conducive to safe, transparent investments and offering
the necessary guarantees to investors. Funding exclusively from public sources will never be enough to
ensure that the use of renewable energy sources is developed on such a large scale as is necessary to
significantly reduce dependence on fossil fuels.

However, if used properly, public funds can encourage significant private investment. Finally,
consumer financing is an accepted but complex source of funding. As policy makers directly
accountable to consumers, parliamentarians should to come up with a set of solutions that encourages
the development of energy production from renewable sources, while ensuring that the burden that the
average citizen suffers as a result is reduced.

3
In addition to providing the necessary financial investments, the development of a solid policy
framework is an important prerequisite for the successful development of renewable energy production
in the local context. A wide range of options is available for this. Governments may choose to directly
implement policies that enable rapid implementation (short-term activities), for example, setting
national targets, simplifying legislation and allocating subsidies. This will help send a clear message of
the government's commitment to developing renewable energy production, which is an important first
step towards securing investment and developing a comprehensive regulatory framework. Some of the
most widespread policies in force today require more extensive, and thereforelonger consideration of
the legal framework (long-term activities), for example, incentive tariffs for privileged electricity

3
Community-based Energy Development Feed-in Tariff Rules – Nova Scotia (Canada) (Propisi o podsticajnim tarifama za
energetski razvoj u okviru zajednice – Nova Škotska, Kanada)
15
producers, quota mechanisms and tenders. These options can be adopted to further strengthen the
regulatory framework as the renewable energy sector develops.

The development of renewable energy production cannot be achieved without political leadership.
Parliamentarians have all the levers they need to act: they vote on laws, set taxes and approve state
budgets; they oversee the work of the government and have direct access to ministers, prime ministers
and heads of state; they have the opportunity to influence national policy, to create strong legal
frameworks, to direct direct spending in new directions and to strengthen policies and set goals for
activities related to the use of renewable energy sources. In short, the transition to a world where post-
fossil fuels are consumed will have significant benefits support for parliamentarians who are willing to
use their political capital to promote the use of renewable energy sources.

The three basic functions of parliament provide many different opportunities to take parliamentary
action. During the preparation of laws, parliamentarians can propose or pass amendments to laws that
will strengthen the legal framework and policies related to the use of renewable energy sources. Their
oversight function allows them to control how the government implements the proclaimed policy and
achieves its goals, and also allows them to hold the government accountable. Closely related to this is
the budgetary powers of parliament. Since the parliament considers and approves the state budget every
year, parliamentarians can advocate for the adoptionbudget decision, which allocates funds intended for
the use of renewable energy sources.

4
Finally, as MPs, parliamentarians have a significant role to play in seeking feedback from the
electorate and encouraging community support for renewable energy projects. Informing voters about
the benefits of renewable energy sources can contribute to the successful implementation of a project in
this area. In addition to the specific possibilities provided by the Rules of Procedure of the Parliament,
parliamentarians also have a somewhat less clearly defined authority that allows them to effectively
advocate for resolving an issue that they consider to be of particular importance. Such advocacy works
best in cooperation with other political actors.

4
Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf

16
Creating a grid with stable energy sources is crucial for the confidence of local and foreign investors,
who often consider a stable energy supply to be a minimum prerequisite for investment. For people
living in rural areas, outside the existing electricity grid, providing access to electricity will mean an
incentive for economic development and new employment opportunities. Some of the richest resources
for renewable energy production are located in developing countries. Using these resources, which
represent national energy capital comparable to oil, coal or gas reserves, would provide investment,
new jobs and electricity for towns, cities and industries, and would be an important engine of
development for the economies of developing countries.

Countries that do not have their own energy sources are forced to import foreign oil, gas and coal, so
they are exposed to the risks of price shocks and are dependent on the political goodwill of their trading
partners. This can result in budget deficits, public borrowing and fuel shortages when supplies are
disrupted. Since fossil fuel reserves are limited, their price will inevitably rise in the long run. By
developing their country's renewable energy sources, parliamentarians can create a long-term plan for
access to inexhaustible energy, which would make their country rely less on foreign energy sources.

Electricity has a great impact on all areas of human existence. It can light and heat homes, facilitate
cooking, power medical and production equipment, enable long-distance communication and is an
essential prerequisite for all modern trade and industry. Yet over 1.5 billion people still do not have
access to the myriad benefits of electricity. People who do not have access to electricity are deprived of
the benefits of potential economic and human development. Communities without electricity often
support themselves from agriculture, agricultural production for their own needs, fishing and forestry.

Children in these communities have limited access to modern medical services or evening lighting, so
that they can learn. Women are often forced to walk miles to collect firewood, or animal excrement as
cooking fuel - a fuel that, when burned inside a living space, pollutes the air with toxic gases.
Many rural communities in developed countries have access to at least one renewable energy source,
whether it is strong solar radiation, solar energy production, a river, a micro hydropower plant, or a
reliable wind generator. These resources can be used to generate clean electricity, even in communities
located far from the national grid. Small-scale renewable energy sources can be used in "mini-
networks" that connect buildings, entire villages or even more villages into one efficient community-
wide electricity grid.

17
Like all good products, electricity should not only meet the needs of consumers, but should benefit the
natural environment in which the product is used. Solar electricity can contribute to the energy supply
while helping to prevent global climate change. Approximately 75% of the energy used in the
developed world is consumed in cities, of which about 40% is consumed in buildings. Photovoltaic
systems can be installed in almost any building structure, from bus stations to large office buildings,
and even in gardens, parks , etc.

Although an accurate forecast of the photovoltaic effect in buildings requires careful analysis, factors
such as the amount of solar radiation falling on the building, the electrical stability of the electricity
distribution network, etc., it is easy to understand that this technology has great potential. Even in
climatic conditions characterized by moderate solar radiation, the roof of a household building is
sufficient to install a photovoltaic system that can provide the building with enough electricity
throughout the year. Photovoltaic modules and generators are traditionally installed on special support
structures, but they can also be installed on buildings, or they can become integral parts of buildings,
forming a natural local connection between electricity supply and demand. The use of photovoltaic
systems can be significantly reducedelectricity consumption from power plants.

5
Buildings can even turn into small producers and distributors of electricity, which can be of general
benefit. From an architectural, technical and financial point of view, photovoltaic systems integrated
into building elements have the following characteristics:
• do not require additional land and can be used in densely populated urban areas,
• do not require additional infrastructure installations,
• provide electricity during peak demand (peaks ) and thus reduce the load on the electricity grid,
• can reduce losses during the transmission and distribution of electricity,
• can fully or partially provide electricity for a suitable building,
• can replace conventional building materials and thus provide a dual role that can pay off many times
over,
• provide new aesthetic possibilities in an innovative way,
• can be linked to maintenance , by controlling and operating other installations and systems in the
building,
• can ensure the reduction of planned costs.

5
Community-based Energy Development Feed-in Tariff Rules – Nova Scotia (Canada) (Propisi o podsticajnim tarifama za
energetski razvoj u okviru zajednice – Nova Škotska, Kanada)
18
 5. POTENTIALS OF PHOTOVOLTAIC DEVICES

Solar photovoltaic technology, previously used mainly in space programs or remote locations, and
therefore marginal and exotic in the beginning, in recent years has become the basic technology for
production and distribution of electricity in urban areas with the potential to become equally
competitive in price energy obtained and distributed by conventional technologies. Since 1990, the
photovoltaic conversion industry has shown constant annual economic growth of over 20%, and since
1997, over 33% per year.
In 2000, the total installed capacity in the world exceeded 1000 MW, and in developing countries more
than a million households use electricity produced by photovoltaic systems. A new world record in the
efficiency of photovoltaic cells On March 24, 2003, it was announced that Solar's Technology Center
had produced a 125 mm photovoltaic cell with an efficiency of 18.3%. An increasing number of
companies and organizations are actively involved in the promotion, development and production of
photovoltaic devices and systems. Companies that produce and distribute electricity in cooperation
with solar manufacturers, city authorities and funds plan and implement major projects gaining the
necessary experience, mobilizing public attention, while lowering the price of electricity.

Figure 3. Usage and locations of pv systems

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 6. POSSIBILITIES OF USING SOLAR THERMAL ENERGY

Solar radiation on Earth reaches an energy of 1000 W / m2, where the useful radiated energy per unit
area depends on the orientation and slope of the surface, the construction and energy characteristics of
solar energy receivers, time of day, time of year, insolation time, atmospheric conditions, etc. The most
commonly used technology for the use of solar radiation is based on the principle of thermal action of
solar radiation, whereby the energy of solar radiation is transformed into heat on the absorber of solar
energy receivers (heat collectors).
With these types of collectors , the degree of efficiency of transformation of irradiated solar energy into
useful heat dissipation from 35 to 55% is achieved.
Solar collectors can be divided into two main groups according to the type of fluid that transmits solar
energy. These are collectors with liquid fluid and air. Each of these groups is divided into three
subgroups determined by the temperature range.

• Flat low-temperature
• Medium-temperature - with concentration of solar radiation
• High-temperature - with concentration of solar radiation

Flat low-temperature receivers are technically the simplest in terms of construction, and they achieve
operating temperatures up to 100 ° C (idle and up to 180 ° C). The heat absorber is metal or plastic.
Heat is removed by air, water or some other liquid based on "antifreeze" and delivered to the consumer
directly or through heat exchangers and radiators. Collectors are usually mounted on the roof of the
house and are connected to the water tank with pipes. A fluid pump is used for better heat transfer .
Solar collectors based on this principle are mostly used for the preparation of hot sanitary or
technological water, in the processes of drying various agricultural products, for space heating and in
other thermal processes in which operating temperatures range up to 100 ° C.

The banner (transparent cover) has the task of closing the space in front of the absorbent plate, which
reduces heat losses, while ensuring the best possible penetration of the sun's rays to the absorbent
surface. In practice, the most commonly used window glass is 4 mm thick, as well as tempered glass 5
mm thick, and transparent plastic materials up to 2 mm thick can be used, as well as special ultraviolet-
20
stable plastic foils. Depending on the resistance of the material to degradation effects from the
environment, especially the effect of solar ultraviolet radiation, it is possible to estimate how much the
light transmittance will decrease during the time of exploitation.

Solarcollectors with a single transparent cover are usually used in sanitary or technical water heating
installations in transitional or summer periods when outside temperatures are higher. The efficiency of
collectors with single glazing is significantly lower in winter than the efficiency with double glazing. In
summer, the difference in efficiency between these two types of collectors is much smaller. For
example, at the temperature of the working fluid at the inlet to the collector of 60 ° C (in winter when
the ambient temperature is 10 ° C and the power of solar radiation is about 600W / m2) the efficiency
of the observed collector with single glazing is zero (no working fluid) while the double-glazed
collector will have an efficiency of 0.4.

In the summer period, these coefficients are 0.68 and 0.7. The absorber has the task of transforming
solar radiation into heat and is a key element on which it depends the most efficiency of solar radiation
absorption, heat emission into the environment (heat loss) and efficiency of heat transfer from the
absorbing surface to the working medium that cools the absorber. Quality absorbers are made of
copper, aluminum and stainless steel. Plastic absorbers are of lower quality.

Selective absorbent layers applied by chemical treatment to the absorber provide significantly better
performance (low emission factor), better energy efficiency and durable absorption characteristics
compared to the use of black paint for the absorption layer. The working medium or heat carrier in the
solar collector can be air, water or liquid based on "antifreeze". Thermal insulation is a very important
element that reduces heat loss from the back and sides of the collector.

Expanded polyurethane foam is mostly used as a material, because it has stable mechanical and thermal
properties. In addition to the thermal insulation properties, this material also stiffens the
housingcollector and does not absorb moisture. Glass and mineral wool are quite unsuitable for
handling and can absorb significant amounts of moisture, which reduces the durability and efficiency
of the collector. The collector housing unites all its elements into one functional whole.

21
In our climate, the total energy effect of solar radiation in winter is less than in summer, but it is still
efficient enough to use. Thus, for example, from commercial types of solar collectors in the heating
season can be obtained - per square meter in one day - energy that ranges (depending on the month of
the year and the location of consumers) from 1.2 to 3kWh.
This means that the solar energy receiver can transfer heat from 36 to 90 kWh from one square meter
of collector to a consumer in one month . Since the temperature of the working fluid at the
recommended flow rates during the winter period ranges from 40 to 60 ° C, it is clear that these
temperatures are not sufficient for central hot water heating. However, during transition periods with
outdoor temperatures around 0 ° C, this method of heating becomes efficient, because then the boiler
installations work with temperatures of around 60 ° C.
6
If underfloor heating is used in the hot water heating system, which works with lower temperatures,
the effects are even better. The best effects are achieved by using an air heating system. The energy
effects of solar systems in heating houses or apartments depend on several factors, among which the
correct and optimal design has a first-class role. The thermal characteristics of the heated building
directly affect the magnitude of heat losses, and thus the need for heat energy.

This leads to the fact that good thermal insulation is a key element in saving energy and that it is the
best and most economical way for a poor country to improve its energy situation. Especially if we take
into account that in our country , the phenomenon of heating with electricity is normal, and at a price
stimulated. It is one of the most irrational ways of heating from the aspect of the whole country.

Conditions for providing housing heating are more complex, and investments are higher. If a new
building is being built in which solar space heating is planned , the effects are the best with a minimal
price. Adaptation of already built facilities is a more complex procedure with higher costs. Required
investments: 50 - 100 EUR / m2, or about 3,000 to 6,000 EUR / household Note: Lower values refer to
apartments and houses with better thermal characteristics of the walls and lower heat losses through
cracks; better possibilities of application of integral solar collectors; better layout of rooms and
transparency on the building as well as better orientation of the receiving surface of the building

6
Organization of American States (Renewable Energy in the Americas Initiative) (Organizacija
američkih država/inicijativa za obnovljive izvore energije u Severnoj i JužnojAmerici/)
www.oas.org/dsd/reia/

22
 7. ALTERNATIVE SOURCES-WIND BIOMASS AND BIOGAS

The energy contained in the movement of air masses - wind - has always attracted the attention of
researchers who wanted it to be useful. Sails, and later windmills, were the only way to convert wind
energy into mechanical work. Of all the challenges available to modern man today, there is one that
captivates with its sublimity and strength. It's a race around the world. In addition to all possible means
of transportation, only races around the world are held in sailing, which speaks in a pictures que way
about the power of the wind. Now, and in the future, wind energy has proven to be the most serious
renewable energy source in the achieved technology development.
The main reasons for this are:
• Immeasurable amount of energy
• the possibility of converting into electricity using wind turbines
• falling prices for wind turbines and related equipment in proportion to the increasing use of wind
energy
• environmentally friendly clean way of converting energy
• low land use

7
The conversion of wind energy into electricity is done with the help of a wind generator. The wind
generator converts the kinetic energy of the moving air (wind) by means of the rotor blades (propeller),
transmission mechanism and electric generator into electrical energy. The energy obtained from the
wind depends on the average wind speed and is proportional to the third degree of the wind speed. The
wind turbine cannot transform the total kinetic energy of the wind flowing through the surface covered
by the rotor arms. In 1919, Albert Dec proved that a maximum of 59% of the total kinetic energy of
wind can be converted into mechanical energy of the wind turbine rotor. Wind turbine manufacturers
generally give a power output curve depending on the wind speed.

7
Organization of American States (Renewable Energy in the Americas Initiative) (Organizacija
američkih država/inicijativa za obnovljive izvore energije u Severnoj i JužnojAmerici/)
www.oas.org/dsd/reia/

23
Modern wind turbines start producing electricity at a wind speed of 2.5 m / s, and stop for safety
reasons at a speed of 25 m / s. A wind generator can provide economical electricity production if the
average annual wind speed is higher than 6 m / s. Due to the friction between the air flow and the
ground, as well as the internal viscous friction, the wind speed increases with increasing height above
the ground.
It is clear that the wind speed profile is affected by the roughness of the terrain, the presence of natural
and artificial obstacles as well as other topographic elements. Since these parameters differ from
location to location, it is necessary to take into account when choosing the location to reach the most
favorable average annual wind speed. From the amount of electricity produced directly depends on
that. Even small mistakes in choosing the most favorable location in the long-term production balance
give significant reductions in the profitability of the investment.
Small and very small wind generators up to 3 kW are made by directly connecting the propeller and the
electric generator without a transmission mechanism (reducer), which reduces their price. Small wind
turbines are intended for individual use and are most often used to charge batteries where there is no
electricity, and energy is usually used for lighting and TV.

Medium-power wind turbines up to several tens of kilowatts provide three-phase electricity and are
usually connected to a low-voltage distribution network. At the output of the wind generator, an
alternating three-phase current of voltage 690 V and frequency 50/60 Hz was obtained. With the help
of a transformer, the voltage is raised to 10 - 30 kV, whichcorresponds to the voltage of medium
voltage networks. All wind turbines of higher capacity (from 10 kW to 3 MW) are used as power
plants, which means that they hand over the produced energy to the electric power system. The most
commonly used modern wind turbines have a capacity of 500 kW to 3 MW, although larger ones are
being built. The most economical application of wind generators is their association in suitable
locations in the so-called windmill farm. Such a power plant can have a capacity of several MW to
several hundred MW, which provides dozens of wind turbines.

Based on previous experiences in the construction of wind turbines, the estimated value of investments
has been around 700 to 1000 € per installed kW. Wind turbines, and thus wind farms, have become
significantly cheaper in the last ten years, and this trend will continue. In that way, the price of
electricity obtained from the wind generator was drastically reduced.

24
Since when using wind energy, as with many other renewable energy sources, there are no fuel costs,
after investment construction the only costs are operating and maintenance costs. Investment costs
range from 75% to 90% of total costs. Investment costs are the costs of building a wind turbine or wind
farm, including the cost of building access roads if necessary and the cost of connecting to the
electricity system. Usually, locations with favorable conditions for the construction of a windmill farm
are far from roads and energy highways, and this connection affects the increase of investment costs.
The price of a wind generator ranges from 600 to 900 € per installed kW. As the wind speed increases,
the efficiency increases , which makes it necessary to raise high poles.
Financial effects significantly influence the decision to invest in the production of electricity using
wind turbines. Although the price of electricity from wind depends on various institutional factors, the
reference values can be calculated by applying the recommended practice for the calculation of
electricity prices by the International energy agencies. Due to the wide range of interest rates, high,
medium and low electricity prices must be calculated. The basic assumptions of the data refer to the
class of wind generators with a capacity of 600 - 750 kW.

The growing concern for environmental protection is becoming a global movement. The result of the
action is reflected in concrete activities at the global level: the fight against pollution, the fight against
global warming and climate change, the fight for more rational use of resources. When planning new
capacities, many energy companies opt for wind farms because their application makes economic and
environmental sense. Due to the construction of wind generating capacities, the European Union
revised the strategy more intensively than expected, which increased the target from 20,000 to 40,000
MW of installed wind power by 2010. Every kWh produced is renewable energy sources, replaces the
same which, on the other hand, should be produced in fossil fuel power plants, which results in a
reduction of negative environmental impacts, especially CO2 emissions into the atmosphere.

Negative trends in the use of fossil fuels impose significant research in order to find efficient ways to
use renewable energy sources. Wind energy, even in the current state of technology, due to the
inexhaustibility of wind and its wide distribution on all world meridians, can significantly contribute to
stability and diversity in energy supply, while reducing harmful atmospheric emissions. Urbanization,
waste, soil pollution are factors that significantly actualize the problem of preserving agricultural land.

25
Therefore, when valorizing a technology, the necessarily occupied land is not an irrelevant parameter.
Thermal power plants occupy large areas of land (for facilities, ash dump). The area is considerable
increases when areas occupied by surface coal mines, tailings dumps and transport routes are included.
At hydroelectric power plants, large areas of land, often the most fertile, are submerged and lost to
agriculture. Wind farms are extremely economical in terms of land use. Most of the occupied land on
which the farm was built (about 99%) can be used for agriculture during exploitation. The negative
impacts of wind turbines on the environment exist, but these impacts are negligible compared to the
positive elements. There are also subjective elements in this assessment, lack of information and poor
interpretation.

The hydropower potential of watercourses has been an important source of energy for centuries, and
traces of watercourse use can be traced back to ancient Egypt, Persia and China, where they were used
for irrigation as well as for grinding grain and making flour. At the end of the nineteenth and the
beginning of the twentieth century, the basic goal of the development of hydropower was the
mechanical starting of machines using belts, ropes and transmission gears. In the early phase of
exploitation of hydropower potentials, the generated electricity rarely exceeded several hundred
kilowatts.

Even today, hydropower is an important source of electricity in all parts of the world. Great progress
has been made in developing and improving the equipment in order to satisfy everyone more complex
requirements of the operation and maintenance of growing hydropower plants, so that today
hydroelectric installations serve millions of people around the world. Rising oil prices in all countries
and increased concern about the negative effects of coal combustion, nuclear energy and even large
hydropower plants on the natural environment have increased interest in using the hydropower
potential of small watercourses in various parts of the world. This has conditioned the development of
modern hydro turbines, which can operate under conditions of low flows and small drops in water
mass.

26
Biomass is organic matter of animal or plant origin that is converted into usable energy through various
processes. Energy of plant origin represents, through the process of photosynthesis, the accumulated
light energy by which light is transformed into chemical energy. During photosynthesis, plants use
carbon dioxide from the air and water in order to create carbohydrates, which are the basic building
blocks of biomass. In this way, light or solar energy accumulates in the chemical bonds of the structural
components of biomass.

This energy can be exploited in various ways. On the other hand, the main source of biomass of animal
origin is natural liquid manure. The energy accumulated in biomass is of a chemical nature, so there are
no interruptions in its exploitation, as is the case with solar or wind energy. From this point of view,
biomass has more characteristics of fossil fuels than renewable sources, with the understandable reason
that fossil fuels are actually a fossil form of biomass. Historically, biomass has been a basic source of
energy for mankind , while the industrial revolution took over fossil fuels.

8
Nevertheless, biomass today accounts for 15% of total energy consumption, and it is significant that
this share is significantly higher in developing countries than in industrialized countries. One of the
most important factors determining the potential role of biomass in the energy industry is the strong
competition that exists between the value of biomass and the land necessary for its cultivation, which is
not the case with other renewable sources.

Biomass can be used as food, fertilizer, for the production of paper fibers and as fuel. Even among
biomass derivatives, there is competition that can reduce its importance as a potential fuel: manure is
an important fertilizer, paper can be recycled, cotton flakes can be used in oil wells, sawdust can be
used as a protective layer of fertile soil, and waste fats from restaurants as pet food. Although many
experts believe that biomass can be grown exclusively for energy purposes, their dual or multiple role
cannot be neglected including the role of secondary harvest products.

9
The concept of using biomass includes a large number of sources such as:

8
Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa

9
Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa
27
• Agricultural waste: straw, leaves, parts of fruit trees, etc.
• Agricultural cereals such as various types of sugar beet, sugar cane, corn, etc.
• Energy cereals: fast-growing cereals such as beets, potatoes and trees such as willow or hybrid
sycamore, etc.
• Forest waste: unused wood, remains of logs and stumps, semi-wild trees, etc.
• Industrial waste: industries that produce organic waste, such as the beverage industry, food industry,
etc.
• Municipal waste: although this type of waste often contains toxic materials, such aschemically treated
wood, batteries containing mercury and other hazardous substances, has wastes such as paper and plant
residues that can be used as a source of biomass.
The chemical composition of biomass varies depending on the type of source material, although the
average composition consists mainly of 25% lignin and 75% carbohydrates or sugars. Lignin consists
of molecules, different from sugar molecules, connected in thin plate structures. Carbohydrates are
formed from sugar molecules linked in long chains or polymers, such as cellulose or semi-cellulose.
Figuratively speaking, the composition of plants is such that cellulose represents the structure, and
lignin the cement.

Some important features that support the use of biomass in the energy industry are:
• Erosion prevention
• Reduction of fire hazards
• Protection of fauna and flora and other components of their diversity
• Lower emissions from electricity generators using biomass as fuel, compared to similar technologies
using fossil fuels
• Reduction of greenhouse gases
• Creation of new jobs
• Economic benefits in rural areas

The same types of bacteria that used to produce natural gas in the past produce biogas today. Anaerobic
bacteria are one of the oldest life forms on Earth. They evolved before photosynthesis of plants
released large amounts of oxygen into the atmosphere. Anaerobic bacteria decompose organic matter in

28
the absence of oxygen and produce biogas as a product of that decomposition. The most commonly
used organic material for biogas production is manure or manure.

The primary advantages of biogas production from manure are: Natural recycling, obtaining quality
fertilizer for further use in agriculture and avoiding unpleasant odorsmanure. In addition to these
primary benefits, the resulting biogas is a very useful by-product. Biogas consists of about 70%
methane (CH4), and the rest consists of carbon dioxide, carbon monoxide and nitrogen.

This relative ratio of gases depends on the material to be treated and the treatment process. Biogas has
a significant energy value of about 7 kWh / m3 which makes it very cost effective and universal fuel
far more cost effective than other fossil fuels and biomass. Biogas is produced in digesters.
The simplest digesters are being built en masse in China, India and Brazil, where it is used for heating
and cooking in rural households. A simple digester is made by digging a hole in the ground and lining
it with brick or plastic foil and covering it with a tarpaulin under which methane collects. The manure
is brought directly from the barn through canals. More modern forms are built of concrete, steel sheet
or plastic with different degrees of automation.

10
There are two basic types of digesters and they are periodic and continuous. In periodic digesters,
after its filling, the manure is exposed to microorganisms for about twenty days. These decomposition
products then begin to use methane bacteria and the result is biogas and quality fertilizer. At the end of
the methane extraction process , the fertilizer is removed from the digester and a new manure is added
to it, which interrupts and starts a new process that will start producing biogas in about twenty days. In
the case of a continuous digester, the constant addition of fresh manure does not interrupt the process,
which ensures a continuous supply of biogas.

The characteristic of the obtained fertilizer is that there are no more seeds in it, especially weed plants
that would reach the fields by fertilization. Biogas production will continue as long as all the necessary
conditions are met, of which maintaining a constant temperature is the most important. Optimalthe
temperature is 32 to 35 ° C at which the process of biogas separation lasts from 18 to 22 days. Modern
10
http://www.our-energy.com/obnovljivi-izvori-energije_hr.html

29
digesters are of vertical or horizontal type and are made of stainless steel. Automatic control ensures
stable temperature, fresh manure production, mixing, biogas removal and processed fertilizer removal.
To obtain one cubic meter of biogas at atmospheric pressure requires about 10 to 12 kilograms of liquid
manure which should contain about 4 to 10% dry matter.

Domestic animals whose liquid manure can be used economically for the production of biogas and
organic fertilizers are: dairy cows, fattening cattle, fattening pigs, laying hens and fattening chickens.
For economical work and profitability of the investment in the procurement of a modern digester for
the production of biogas, it is necessary to provide manure from about 100 to 120 cattle or pigs. With
this amount of manure, continuous production of about 150 m3 of biogas per day would be ensured.
This amount of biogas enables the production of 400 kWh of heat energy, 210 kWh of electricity, 3 m3
of liquid organic fertilizer and 10% of dry organic fertilizer per day. The price of such a fully
automated plant is around 60,000 Euros, which makes it profitable on time from 3 to 4 years. There are
solutions with a lower degree of economy for very small capacities intended for rural households.

Figure 4. Diagram of the processing unit for producing biogas

11
Biogas collection is solved in two ways:
• Atmospheric pressure collection in a plastic foil bag within the digester itself

11
Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa

30
• Pressure collection in tanks or cisterns using gas pumps Larger farms or several smaller livestock
farms or households can provide a continuous supply of electricity using a small power plant consisting
of a biogas-consuming engine and an electric generator.

The main advantages of using biogas are:

• combustion without harmful products
• high energy efficiency
• simple production process
• environmentally friendly technology with useful by-products (fertilizer)
During the design and operation of industrial automatically controlled processes there are a number of
difficulties and different economic calculations, primarily due to ignorance of material parameters to
define the legality of all complex processes that occur in the fermentation process. Also, the higher
price of such automated equipment reduces the economy compared to the price of the obtained
products.
The problem is especially aggravated by the fact that in our conditions the issue of economy is solved
almost exclusively on the basis of the values of energies substituted by the energy potential of the
produced gas, without practical possibilities of evaluating other effects.

12
New generation alternative energy systems are conceptually different from conventional energy
systems, and among them, fuel cells stand out as the most promising technology in this group. Fuel
cells generate energy through a process opposite to electrolysis. Namely, in fuel cells , hydrogen is
extracted from hydrogen-rich fuels, usually natural gas or methanol, by an electrochemical process ,
which in combination with oxygen produces electricity and water. So , instead of burning, fuel is
converted into electricity by an efficient electrochemical process.

8. SHORTCOMINGS OF RENEWABLE ENERGY SOURCES

12
Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa

31
Renewable energy brings significant long-term economic benefits to the environment, and awareness
of the short-term benefits of adopting renewable energy technologies is growing. However, there are
still obstacles that prevent the use of renewable energy technologies at the speed and to the extent
necessary. Policy makers, including parliamentarians, must understand the challenges that have
hampered sustainable development, and must use their positions and capacities to overcome these
problems if they want their countries to benefit from sustainable energy. the cost of electricity
production is measured by the cost per kilowatt-hour (kWh) or megawatt-hour (MWh) produced.
Electricity from fossil fuels has historically been produced cheaper than electricity from renewable
sources.

There are several reasons for this (some of which are discussed elsewhere in this guide). One of the key
reasons for this is that the initial costs of building infrastructure and plants for the production of
electricity from renewable sources until recently were significantly higher than the costs of building
power plants that burn fossil fuels. Except in the case of market intervention, the electricity company
will,by the nature of things, opt for production technology that has the lowest cost per kilowatt-hour,
regardless of potential long-term trends in production costs.

However, the cost of producing energy from renewable sources has dropped dramatically in recent
years, thanks to technological innovation and economies of scale, and continues to fall. Fossil fuels, on
the other hand, are limited energy sources, and the cost of using them can only grow, in the long run. If
the negative effects of burning fossil fuels, such as local environmental damage, public health impact
and the need for adaptation measures, could be counted as "external consequences", the apparent
competitive advantage of conventional sources the energy would be largely gone.

Another economic obstacle is government subsidies for the extraction and use of fossil fuels.
According to the International Monetary Fund, global fossil fuel subsidies amounted to $ 1.9 trillion in
2012, or 2% of global GDP, well above the $ 88 billion in subsidies provided to support renewable
energy. These subsidies included reduced taxes and duties on fossil fuel extraction, control of oil and
electricity prices, as well as direct government investment in infrastructure used to extract and supply
fossil fuels for energy production.

An important technical problem was the fact that some renewable energy sources, especially wind and
solar energy, have time-uneven energy production (given the unequal wind intensity and insolation), so

32
it is not possible to deliver a guaranteed and constant amount of electricity . This phenomenon is
known in energy production as supply instability. The supply of energy from these sources cannot be
easily adjusted to demand, unlike power plants that consume fossil fuels, which are able to react
quickly to changes in the electricity grid by consuming more or less fuel, or by changing the number of
production units currently operating. However, for most energy sources from which energy is produced
unevenly, for example, wind and sun, it can be predicted what the situation will be 24 hours in advance.
The expanded network, which covers a larger area, is the best solution for balancing the unevenness of
production from renewable energy sources, which is characterized by predictable unevenness. Another
technical problem is known as dispersion, which means that the best renewable energy sources are
often located far from urban centers, where the greatest demand is for energy.

13
For example, most technically usable water for hydropower plants is located in mountain ranges. As
the distance of the power plant from the end user contributes to increasing the amount of energy lost
within the system and increasing costs of transmission and distribution network infrastructure, there is
a lack of incentives for the use of renewable energy sources located in remote regions. Electricity can
now be efficiently transmitted over long distances using high-voltage direct current cables(HVDC),
with an energy loss of only about 3 percent per 1,000 km and less than one cent per kilowatt-hour
(kWh) when it comes to additional distribution costs.

These cables have already been used in China and India to connect population centers with remote
hydropower sources. in many countries, legislation and policies governing electricity, heating and
transport markets have been a major obstacle to the development of renewable energy sources.
Electricity markets are usually managed by a monopoly organization, often a state-owned utility
company, which fully controls the production, distribution and sale of electricity to consumers.
Research has shown that where the electricity market is monopolized, energy companies have little or
no incentive to advocate for the development of electricity from renewable sources.

The challenge associated with this is the bureaucracy that must regulate and approve the development
of electricity generation (either heating or transport fuels). Where there are many places where things
13
Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf

33
are approved in several departments of government (and in federal and decentralized states, at more
than one level of government), the cost of developing renewable energy sources increases significantly,
and the time required often significantly discourages its development .
The development of the use of renewable energy sources within the electricity grid can be accelerated
by ensuring that the political and legal framework is fully coherent and the decision-making process is
transparent. Local political challenges must be addressed even in situations where the government fully
supports the need to encourage the development of renewable energy sources and has accepted the
removal of economic barriers to their development and barriers to the policy framework. While
renewable energy projects have multiplied over the past decade, some have met with public opposition.

It is important to ensure that the community accepts the matter, and where possible, and legal
ownership of the development of the use of renewable energy sources, as a way to reduce opposition to
development. Even a parliamentarian who is fully committed to the benefits of renewable energy will
find his conviction challenged in a political confrontation with voters who do not expect to enjoy the
benefits of such investments.

Over the past decade, the increased use of energy from renewable sources is mainly due to the
production of electricity and the traditional way of using biomass. This guide attempts to present “best
practices” in the use of renewable energy sources and focuses primarily on how governments create a
reliable legal and regulatory framework for the use of renewable energy sources for electricity
generation. The production of heat and transport fuel is mentioned where appropriate, but government
policies have so far been less focused on these areas. If the world wants to slow down climate change
by reducing carbon dioxide emissions, efforts must also be made to sustainable energy sources are used
to produce heat and transport fuel.

Since ancient times, people have used the heat radiated by the sun to heat homes and other buildings.
Over the past few decades, technologies have been developed that convert solar energy into electricity
or heat, and these technologies are now used on a much larger scale to produce significant amounts of
useful energy.

Solar energy can be used to an extent that meets communal needs, with the help of thousands of solar
panelsor mirrors that supply the grid with electricity, or, to a lesser extent, in the form of smaller roof
installations that supply individual homes with electricity and / or hot water.
34
Such home solar energy systems produce enough electricity for household lighting, powering
refrigerators or other electrical appliances, and charging mobile phone batteries. The Earth's core is
much warmer than the Earth's surface. Heat from the core is conducted through rocks and minerals,
heating underground water reserves and turning that water into steam that can drive turbines and
produce electricity.

In some places, the steam generated by warm groundwater naturally reaches the Earth's surface and
creates geysers, thus enabling this energy to be used in a very cheap and non-invasive way. Where
heated water does not reach the Earth's surface naturally, it may still be close enough to the Earth's
surface to be reached by drilling. 14
Even if there is no hot groundwater, it is possible to produce
geothermal energy by drilling a well to the water was brought to the heated rocks, where it would turn
into steam and drain through another well, which would enable the production of electricity.

Traditional biomass: it produces about 10% of the total energy consumed on the planet. Traditionally,
energy from biomass is obtained by burning wood, plant mass or waste materials of animal origin to
heat households and cook food. If biomass is obtained from sustainable sources - such as well-
maintained forest or bagasse produced during sugar cane production - then it can be considered a
renewable energy source.

However, most traditional biomass fuels do not come from sustainable sources, thus contributing to the
degradation of local ecosystems. Combustion of traditional biomass for cooking and heating causes
significant air pollution within households, which has serious health consequences, especially for
women and children, who spend the most timetime by hearths in the household.

Biofuels have several advantages. Unlike other renewable energy sources , organic matter can produce
fuels that can be mixed with oil and used as fuel for vehicles. In recent years, however, the cultivation
of crops for biofuel production has caused significant controversy, as agricultural land is moving away

14
Kenya Ministry of Energy (2012): Feed-in Tariffs Policy on Wind, Biomass, Small Hydro, Geothermal,
Biogas and Solar Resource Generated Electricity, 2nd Revision, (Ministarstvo za energiju Kenije/2012/:
Politika podsticajnih tarifa za električnu energiju proizvedenu od vetra, biomase, malih hidrocentrala,
geotermalne energije,biogasa I solarne energije) Nairobi, Kenya
http://kerea.org/wp-content/uploads/2013/01/FiT-Policy-2012-Final-14-Dec. Pdf

35
from food production, leading to crop shortages, rising food prices and worsening global hunger.
Several studies question whether biofuels, especially ethanol derived from corn, release less carbon
than fossil fuels, as they contribute to indirect land use change and land reduction under forests and
agriculture that relies on logging and incineration to obtain arable land, all of which are significant
sources of greenhouse gases.

Despite many current problems related to the production and use of biofuels, some of the problems
related to the first generation of biofuels have recently been addressed. The second generation of
biofuels, with cellulose-containing materials and the development of new crops for biofuel production,
is much less opposed to food production. Unlike biofuels, which are often in competition with land use
for food production, a wide range of products from agricultural waste that are otherwise thrown away
can be burned to produce electricity.

The leading pioneer in this area is Mauritius, where a strong policy framework has been established to
encourage farmers to use bagas (organic waste generated during the production of sugar from sugar
cane) to run generators that supply the country's electricity grid. In areas outside the grid, some plants
that were previously considered weeds, such as jatropha, can be used to make alternative fuels to run
diesel generators, although, if grown for that purpose alone, the same problems that have been raised
with regard to biofuels may arise.

The term "smart grid" refers to an electricity distribution system (grid) in which modern information
and communication technology is applied to achieve the most efficient production, transmission,
distribution and use of electricity. This includes the use of data and information collected from users
and producers to ensure a reliable and constant supply of electricity. Smart grids have many potential
benefits.
First, smart grids enable the decentralization of energy production. This may include net measurement
of electricity consumption, where individual consumers are allowed two-way flow of electricity, so that
the excess energy they produce is returned to the grid. Second, a smart grid can ensure that the national
grid uses its energy resources most efficiently.

9. FINANCING OF RENEWABLE ENERGY PROJECTS

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Private sector investment is needed to develop capacity to use large-scale renewable energy sources , as
most governments are unable or unwilling to cover the costs of building infrastructure for energy
production, transmission and distribution . Historically, private financiers have been reluctant to invest
in renewable energy projects because they considered it very risky (that is, they considered it very
likely that they would not return the investment or make a return on investment).

There are several reasons why private investors have traditionally considered it renewable energy
projects are risky. First, the use of renewable energy sources is a relatively new thing, and is still not
considered a "mature" technology (with the exception of technologies for the use of hydropower).
Because investors like to base their decisions on past effects, a relatively short history of using
renewable energy means that there is less data to assess, and thus a stronger perception of risk.

15
Secondly, given the large initial capital costs of building infrastructure for the use of energy from
renewable sources, investors need to be confident that the electricity produced will find a buyer willing
to pay the appropriate price. They want to have some legal guarantees that electricity transmission /
distribution / sales companies, which are often monopolies and state-owned, will be required to buy
electricity produced by independent energy producers.

Third, private investors need to be confident that policies and regulations governing renewable energy
production are stable and unlikely to change in the short to medium term.
Investors want parliament to pass laws establishing policies and incentives to support the use of
renewable energy sources. They also want to know that policy makers are fully committed to this new
industry. Ideally, investors want guarantees that, even in the event of a change of government, the
commitment to using renewable energy sources will remain in place. Policy stability is crucial. In
Spain, for example, there has been a dramatic decline recentlyinvestment in the use of renewable
energy sources after changes in national plans to encourage the use of renewable energy sources.
16
Private financing is possible in many different ways. The main ones are the share in the founding
capital and loans. A share in the founding capital is a direct investment in a project or company that

15
Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf

16
Dr. Zdenko Šimić – Korištenje energije biomase za proizvodnju el. energije

37
develops a project related to the use of renewable energy sources, with the expectation that the
investment will be fully recouped, and that the investor will have a share in the earnings of the project
or company . Loans are offered in various forms. The simplest of these is a structured loan from a
financial institution.

Alternatively, a company may seek to raise funds through bonds, which are securities for which the
issuer (or a company or group that wishes to implements a project related to the use of renewable
energy sources) guarantees that it will pay the holder (ie the person providing the funds) the full value
of the bond plus the corresponding interest on a certain day in the future. In recent years, as a reaction
to demand, special "climate" bonds have appeared that are intended for investment in projects related to
the use of renewable energy sources.

These are investment bonds that provide the investor with a sense of security, while ensuring that funds
are directed to projects related to the use of renewable energy sources. The implications of this
approach when it comes to consumer costs must also be considered in relation to financing the
development of renewable energy sources. Many of the policy options discussed in this guide may
involve passing on additional costs to consumers.

Parliamentarians must be aware of this fact, because they will hear from their voters if their electricity
bills are increased. As a policy maker who is directly accountable to consumers, the parliamentarian
needs to define a set of policies that encourage the development of renewable energy sources, while
ensuring that the burden of costs imposed on citizens is minimized. However, energy will inevitably
become more expensive in the future. In the medium and long term, only the use of renewable energy
sources is likely to reduce costs. The challenges facing the financing and development of renewable
energy systems have been known for some time.

10. COST-EFFECTIVENESS ANALYSIS

I am unable to give the precise numbers unfortunately, because there is no much information from
official site of EPS. What I was able to find were on several news paper articles.

38
These days, the Government of Serbia passed the Decree on Criteria, Conditions and Manner of
Calculating Receivables and Obligations between Buyers-Producers and Suppliers, which resolved
many, but not all, issues related to the installation of solar panels on houses and buildings. subsidies for
cheaper electricity.
1717
The editorial staff of 24sedam tried to clarify the remaining ambiguities or at least point out some of
them. - The government has passed a decree which envisages a very simple procedure for connecting a
small solar system for the production of electricity for personal use to the electricity grid, which was
previously an "impossible mission".

The first good news is that there is nothing more that would connect private solar systems to the EPS
grid would be a "mission impossible" - no conceptual design, location conditions, building permit,
prior installation approval, trial work required… But not it also means that everything is allowed.
Anyone who thought of saving on the installation of solar panels and the masters and the project can
immediately forget about it in this case. Here, the do-it-yourself option with purchased panels and
accessories is out of the question. Because "the end customer is obliged to build in accordance with
regulations and standards build a production facility and adjust the metering point to acquire the status
of customer-manufacturer", as well as to submit to the system operator the original statement of the
contractor with confirmation of the responsible contractor measuring point correct and performed in
accordance with regulations and standards. - The decree so clearly states that there must be a project of
the entire system behind which stands an expert, ie an engineer who guarantees that everything is in
order. And that's good, because you have to do it right, what they say "as God commands", and not let
someone who has some kind of SZR for the sale of panels "finish" it for you. What is now known from
the Decree is that the citizens will not sell electricity to EPS, but in their case they will go to the "net
metering" system. It is, in essence, an energy exchange between the consumer, who, in addition to the
classic connection to the electricity grid, also has his own home solar energy system, and EPS, which
(supplies) him electricity when he runs out.

The amount of subsidies for solar panels is still unknown. The tender for interested municipalities
(which co-finance subsidies with the Government) will be announced on September 3. It will probably

17
https://24sedam.rs/biznis/finansije/76129/sta-ne-znamo-o-subvencijama-za-solarne-panele-ne-moze-uradi-
sam-a-placa-se-i-pristup-eps-u/vest

39
be the same as with carpentry and facade insulation - half of the total cost (with some restrictions) of
installing solar panel systems will be paid by citizens, and half by the state.
When a consumer generates more electricity than he currently consumes, that excess electricity
physically goes into the EPS system. This is recorded, that is, measured, and the consumer has the
opportunity to "pull back" that amount at times when his household consumes less electricity than solar
panels do.

Undrawn current is transferred from one month to the next and so on until the date in the year set for
the "cross-section of the situation", which is April 1.
Withdrawn, ie "EPS's" electricity is paid monthly. The decree says that if at the end of the period for
settling receivables and liabilities between the buyer-producer and the supplier, the amount of total
electricity delivered is greater than the total net electricity taken from the buyer-producer, the buyer-
producer will hand over the surplus electricity determined in the current accounting period in which the
settlement of receivables and liabilities determined by the times of application of tariffs for active
energy is performed.

This system, it seems, is not designed so that Serbia receives relatively large amounts of "green
electricity" from citizens, but only to allow small systems to reduce consumption, and thus allow EPS
to more easily meet quotas for more frequent "green energy" in system, imposed by the EU. Therefore,
the systems are limited and the citizen cannot make a stronger solar system than the current system
connected to the EPS grid, usually 17.5 kW. Thus, a citizen can save, but EPS generally cannot be in
the red, ie pay more for electricity than it sells.
1818
Feed-in tariffs in Serbia depend on the energy source from which the electricity was obtained, as
well as on the power of the plant. The price for hydroelectric power plants is from 6 to 12.6 euro cents
per kilowatt-hour. For biomass from 8.22 to 13.26. For biogas from 15 to 18.33 eurocents per
kilowatt-hour. 8.44 to 9.02 euro cents per kilowatt-hour are paid for electricity from waste.

The purchase price for wind power plants is 9.2 and for solar power plants from 12.4 to 14.6. From
geothermal power plants, electricity was obtained, which EPS pays 8.2, and from waste power plants

18
https://www.danas.rs/vesti/ekonomija/cene-zelenih-kilovata-i-dalje-mogu-biti-vece-od-trzisnih/

40
8.57 euro cents per kilowatt-hour. For power plants that combine electricity and heat energy, the price
is 7.45 to 8.2 euro cents per kilowatt-hour.

The investment pays off depending on how much electricity the household consumes. It also affects
which zone of consumption the household belongs to - red, blue or green. Solar panels are the most
cost-effective for those whose bills go to "red mainly due to electric heating during the winter.
19
Vukovic states that the consumption in that case is around 1,500 kilowatt-hours per month, and the
invested money is paid off in approximately five years - without subsidies. In the version with
subsidies, it pays off in a year and a half, he added. "Thanks to the electricity produced by solar panels,
these households are practically switching to blue, then to the green zone.

One kilowatt-hour in this zone costs 20 dinars, which means that about 600 euros can be saved
annually. He notes that as the price of electricity in Serbia grows from year to year, the period of
savings and return on investment can only be faster. The higher the retail price of electricity, the more
attractive the investment in in-house technologies such as solar. The panels are located on the roof of
the production hall, and the electricity they produce enters the distribution cabinet directly, from where
it is used by machines. households, however, cannot be completely disconnected from the distribution
system. Instead of storing excess energy in batteries, it is stored in the distribution system. Buying a
battery would increase the investment.

You may also be thinking about investing in a solar (photovoltaic) power plant, but you don't know
where to start. Fear not, you are not the only one. The real question, how to start, is one of the most
common questions asked by future investors. Because investing in a solar power plant requires a
relatively large initial capital, it deserves thorough consideration, without the cat in the sack but only
concrete arguments. If we look at it from the point of view of ecology, electricity obtained from the sun
is the most ecological way of obtaining energy. The sun is free, it is nobody's property and it will never
disappear. Investing in a solar power plant is an investment in the future. A solar power plant is a long-
term solution, because it represents a long-term income from electricity.

If the system is being built for your own use, there is no need for documentation, except for the
warranty on the equipment and the recommendation that the system be installed by a professionally
trained person / electrician. In the case of construction of a solar power plant (over 30 kW), the investor

41
is obliged to register as a producer of electricity. energy or add a code of activity within the existing
firm.
The interested party (future privileged producer) for the investment in the installation of solar panels
connected to the network, submits to the buyer of electricity - the state (ie EPS) together with the
request for concluding a contract and a decision on acquiring the status of privileged producer. This
means that this status must be secured in advance. When the eligible producer submits a written request
to the buyer of green energy (in our case the buyer is the state), the state is obliged to conclude a
contract within 30 days from the moment of submission .

19
Of course, if all legal conditions are met. The important thing is that the owner of solar panels - the
future producer of EE, which concluded the contract, has no obligation to balance or pay compensation
to ElektroprivredaSerbia for balancing servicesBalance responsibility in the electricity market is the
obligation of market participants to balance the production, consumption and contracted purchase and
sale of electricity in the period for which the balance deviation is determined and take financial
responsibility for deviations - the obligation of solar power producers.

For eligible EE producers, all balance responsibility is assumed by the public buyer-state. Ironing-
balancing or balancing power between production and consumption in the supply system is necessary
because real-time fluctuations in production and consumption occur. In addition, it should be added
that this solves the problems of congestion and providing the necessary levels of EE regulatory
reserves. Also, the energy subject, in this case the state, unless otherwise emphasized, takes on balance
responsibility, which is a great service for owners of smaller solar systems.

CONCLUSION

Imagine a world in which every citizen has reliable access to electricity and fuel that he can afford
without negative effects in the form of environmental pollution and greenhouse gas emissions. In such

19
https://www.bbc.com/serbian/lat/srbija-58751837

42
a world, all children would have lighting in their homes and could study in the evening, thanks to that
lighting, families would have access to medicines that need to be stored in a refrigerator. Mobile
phones would be available to everyone, as their batteries could be recharged. without delay, and
communities would have the opportunity to start small businesses that would provide income for many
people. This vision is no longer just a dream very far from reality. Many countries have begun to
implement policies to adopt renewable energy sources for water, solar, wind, geothermal and biomass
for electricity, heat and fuel.

As the world moves towards the acceptance of renewable energy sources as key sources for energy
production, the role of parliamentarians is crucial and will remain so in passing the laws necessary to
create and ensure access to energy from renewable sources. Access to energy from renewable sources
means job creation. From the production of components and the expansion of the power grid to the
installation and maintenance of systems for the production of energy from renewable sources, the use
of local renewable sources has an important economic effect. This is especially important in places that
have limited or no access to energy and where unemployment is a significant problem.

Renewable energy sources can contribute to creating four times more jobs for every dollar invested
than industries that use fossil fuels - and these jobs, as a rule, require better skills and are paid more.
Renewable energy, whether used on a large scale to power entire cities, or on a small scale to power
rural mini-networks, can provide clean and safe energy, without any effects on human health, such as
fossil fuels.

Even something as simple as providing access to a small amount of electricity for home lighting can
help eliminate safety and health concerns due to the use of kerosene. For the business side, this is
perfect time and opportunity to invest in production of renewable energy because it will pay off in the
long term. At this moment in Serbia there is no much competition in this category, and this is perfect
investment that will pay off in the long run. As I mentioned, consumers who spend electricity and go in
red zone (highest price for them), will see the reduction in monthly bill, also it would take a big hit on
the air pollution because the EPS would burn less coal for production of electricity.

LITERATURE

43
 1. GIZ (Deutsche Gesellschaft für Internationale Zussamanarbeit GmbH) (2012): Legal Frameworks for
Renewable Energy: Policy Analysis for 15 Developing and Emerging Countries, Eschborn, Germany
http://www.icafrica.org/fileadmin/documents/Knowledge/GIZ/Legal%20Frameworks%20for
%20Renewable%20Energy.
2. International Energy Agency – Key World Energy Statistics (2012)
www.iea.org/publications/freepublications/publication/kwes. Pdf
3. Organization of American States (Renewable Energy in the Americas Initiative) (Organizacija
američkih država/inicijativa za obnovljive izvore energije u Severnoj i JužnojAmerici/)
www.oas.org/dsd/reia/
4. Regional Centre for Renewable Energy and Energy Efficiency (RCREEE) (Arab States)(Regionalni
centar za obnovljive izvore energije i energetsku efikasnost arapskih država) www.rcreee.org
5. Community-based Energy Development Feed-in Tariff Rules – Nova Scotia (Canada) (Propisi o
podsticajnim tarifama za energetski razvoj u okviru zajednice – Nova Škotska, Kanada)
http://nslegislature.ca/legc/PDFs/annual%20statutes/2010/c014. Pdf
6. Kenya Ministry of Energy (2012): Feed-in Tariffs Policy on Wind, Biomass, Small Hydro, Geothermal,
Biogas and Solar Resource Generated Electricity, 2nd Revision, (Ministarstvo za energiju Kenije/2012/:
Politika podsticajnih tarifa za električnu energiju proizvedenu od vetra, biomase, malih hidrocentrala,
geotermalne energije,biogasa I solarne energije) Nairobi, Kenya
http://kerea.org/wp-content/uploads/2013/01/FiT-Policy-2012-Final-14-Dec. Pdf
7. Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf
8. Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa
9. Dr. Zdenko Šimić – Korištenje energije biomase za proizvodnju el. energije

10. http://www.our-energy.com/obnovljivi-izvori-energije_hr.html
11. Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa

12. Dr. Marko Carić - Biomasa kao obnovljiv izvor energije i tehnologija za proizvodnju biogasa
13. Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf
14. Kenya Ministry of Energy (2012): Feed-in Tariffs Policy on Wind, Biomass, Small Hydro, Geothermal,
Biogas and Solar Resource Generated Electricity, 2nd Revision, (Ministarstvo za energiju Kenije/2012/:
Politika podsticajnih tarifa za električnu energiju proizvedenu od vetra, biomase, malih hidrocentrala,
geotermalne energije,biogasa I solarne energije) Nairobi, Kenya
http://kerea.org/wp-content/uploads/2013/01/FiT-Policy-2012-Final-14-Dec. Pdf
15. Solar Water Heater Regulations – Kenya (Propisi za grejače vode na solarnu energiju – Kenija)
www.erc.go.ke/erc/Regulations/Solar%20Water%20Heating%20Regulations. Pdf
44
16. Dr. Zdenko Šimić – Korištenje energije biomase za proizvodnju el. energije
17. http://www.our-energy.com/obnovljivi-izvori-energije_hr.html
18. https://24sedam.rs/biznis/finansije/76129/sta-ne-znamo-o-subvencijama-za-solarne-panele-ne-moze-uradi-
sam-a-placa-se-i-pristup-eps-u/vest
19. https://www.danas.rs/vesti/ekonomija/cene-zelenih-kilovata-i-dalje-mogu-biti-vece-od-trzisnih/
20. https://www.bbc.com/serbian/lat/srbija-58751837

45