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Six Companies Selected for the Support in the Construction of Biomass/biogas Fired Combined Heat and Power Plants

Six Companies Selected for the Support in the Construction of Biomass/biogas Fired Combined Heat and Power Plants

The Public Call for Grants for the construction of biomass/biogas fired combined heat and power (CHP) facilities the Ministry of Mining and Energy of the Republic of Serbia announced in May this year was closed on October 15, 2015. On the same day, the ten-member Commission formed by the Minister of Mining and Energy opened 10 timely submitted applications, six of which met the Call conditions. These were evaluated and selected for financial support in the total value of 1.6 million USD provided by the GEF-UNDP Project „Reducing Barriers to accelerate the Development of Biomass Markets in Serbia“.

The selection of the companies whose investments in biomass/biogas fired combined heat and power (CHP) facilities will be supported is the final stage of the Public Call for grants for the construction of biomass/biogas CHP facilities the Ministry of Mining and Energy of the Republic of Serbia announced on May 8, 2015. It is also the beginning of the systemic contribution to the development of biomass market in the Republic of Serbia and its use for generating energy, financially and operationally supported by the Global Environment Fund (GEF) and the United Nations Development Programme (UNDP) through the Project „Reducing Barriers to accelerate the Development of Biomass Markets in Serbia“.

This Public Call, which was open to companies, cooperatives and persons performing the registered economic activity (entrepreneurs and agricultural estates) whose total investment values in the CHP plants is no less than USD 1,200,000.00, generated big attention of this rising sector. Ten applications were submitted in time, while one was received after the defined deadline, and thus could not be accepted for evaluation.

The Commission composed of 10 members- the representatives of the Ministry of Mining and Energy and the Ministry of Agriculture and Environmental Protection of the Republic of Serbia, presided by Miloš Banjac PhD, worked with the technical support and the participation of the observers from the UNDP. After it determined abiding by technical conditions of the Call, existence of adequate documents and the credit contracts with banks, the Commission evaluated the applications containing all documents, with 100 being the maximum score.

The projects were assessed according to the following criteria:

  1. Criterion of environmental viability of the plant fuel P1 (max 40 points);
  2. Criterion of development of the region where the investment is made, in line with the Regulation on defining the list of the development of regions and local self-government units for 2014 („Gazette of the Republic of Serbia”, No104/14 P2 (max 25 points);
  3. Criterion of how modern the applied technology is, i.e. the ratio between the total investment value and the total installed power capacity of the plant P3 (max 20 points);
  4. Criterion of efficiency and cost-effectiveness of the plant, e. the ratio between the total investment value and the total annual supply of electric power P4 (max 10 points);
  5. Criterion of full utilisation of technical potentials of the plant, i.e. the way the producer plans to use the heat P5 (max 5 points).

The total score is calculated as a total sum of scores per criteria:

P = P1 + P2 + P3 + P4 + P5

The following companies were selected for support:

FORKOM DOO, Beograd (88,54 points)

BGS GAMA BP DOO, Bač (83,18 points)

BGS ALFA BP DOO, Bač (83,18 points)

BGS BETA BP DOO, Bač (83,18 points)

BIOGAS ENERGY DOO, Alibunar, Ilandža (73,97 points) i

BIOELEKTRA DOO, Zrenjanin, Botoš (63,60 points).

In accordance with the value of the investments, but also with the maximum grant value, the first company on the list will be supported with USD 222,400.40, while each of the remaining five companies will receive USD 275,519.92.

The grant contracts between the Ministry of Mining and Energy and the selected companies will be signed in November 2015. Thirty percent (30%) of the allocated funds will be awarded after signing the contracts, and the remaining 70% will be paid after the implementation of investment.

The Report of the Commission for the project evaluation can be downloaded here.

The Decision of the Minister of Mining and Energy on the recognition of the right to being awarded grants in line with the Public Call can be downloaded here.