Construction of Wind Farms and Electricity Generation from Wind Energy in the Republic of Serbia - Relevant Legislation

Wind power plants (hereinafter referred to as: power plants or wind power plants) are energy facilities intended to engage in the activity of electricity generation. Such power plants use wind as the source for electricity generation, which is a renewable source of energy. Power plants of a capacity of up to 10 MW are small power plants according to the Energy Law (*1).

Electricity generation is an activity of public interest. The right to engage in this activity shall be acquired under specially prescribed conditions. Electricity generation in power plants is at the same time generation from renewable sources. Producers of electricity in power plants from renewable sources in general and producers of electricity in small power plants are considered to be privileged electricity producers (*2).

It is necessary to point to the fact that, in the domestic legislation, there is an inconsistency with respect to the terms/notions related to the facilities for electricity generation from wind energy. For that reason, in this text, a power plant will imply one or more production units for electricity generation from wind energy, which are interconnected and equipped in such a way that they can be connected to the electricity grid.

Relevant Legislation (*3)

Construction of a power plant and engaging in the activity of electricity generation in a power plant are regulated by numerous laws and regulations of the Republic of Serbia.

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

The first group of regulations includes those regulations that deal with the need for construction of a concrete energy facility and the method of obtaining the construction permit for construction of such a facility, as well as the method of obtaining the operating permit for the use of the actual facility (for the technically proper functioning of the constructed facility).

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

It should be emphasized that the Law on Concessions is the only statute of the Republic of Serbia, which provides for a possibility to simultaneously exercise the right to construct an energy facility and the right to engage in the activities of public interest.

Construction of a power plant and engaging in the activity of electricity generation in the Republic of Serbia are regulated by the following laws and regulations: the Law on Planning and Construction (*5), the Law on Spatial Plan of the Republic of Serbia (*6), and by other Planning Documents (*7), the Energy Law, the Law on Ratification of the SEE Energy Community Treaty between the European Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo, pursuant to the United Nations Security Council Resolution 1244 (*8), the Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other (*9), the Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making, and Access to Justice in Environmental Matters (*10), the Decree on Conditions of Electricity Delivery (*11), the Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification of Compliance with Requirements (*12), the Decree on Incentives for Electricity Generation Using Renewable, Energy Sources and for Combined Heat-and-Power Generation (*13), the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits (*14), the Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses (*15), the Energy Sector Development Strategy of the Republic of Serbia (*16), the Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015 for the period from 2007-2012 (*17), the Distribution Grid Code (*18), the Transmission Grid Code (*19), the Tariff System for Access to and Use of Electricity Distribution System (*20), the Tariff System for Calculation of Electricity for Tariff Buyers (*21), the Methodology for Setting Tariff Elements for Pricing Access to and Use of Electricity Transmission and Distribution Systems (*22), the Methodology for Setting Tariff Elements for Pricing Access to and Use of Electricity Distribution System (*23), the Law on Public Companies and Activities of Public Interest (*24), the Law on Expropriation (*25), the Law on Air Traffic (*26), the Law on Waters (*27), the Decree on Compensation for Water Use, Water Protection and Compensation for Excavated Materials from Watercourses in 2007 (*28), the Rulebook on Contents of Technical Documentation to be Submitted in the Procedure for Obtaining Water Approval and Water Permit (*29), the Decision on Amount of Drainage Fee, Irrigation Fee, Fee for Use of Water Facilities, and Fees for Other Services in 2010 (*30), the Law on Environmental Protection (*31), the Law on Strategic Environmental Impact Assessment (*32), the Law on Environmental Impact Assessment (*33), the Law on Nature Protection (*34), the Decree on the List of Projects for which Environmental Impact Assessment Study (EIAS) is Mandatory and the List of Projects for which EIA Study May Be Required (*35), the Rulebook on the Application for Decision on the Need for Environmental Impact Assessment Study and Contents and Scope of EIA Study (*36), the Rulebook on Contents of Environmental Impact Assessment Study (*37), the Rulebook on Contents of Information on Location and Contents of Location Permit (*38), the Rulebook on Contents and Procedure for Issuing Construction Permit (*39), the Rulebook on Contents and Method of Carrying Out Technical Inspection of Structure and Issuing Operating Permit (*40), the Rulebook on Contents, Scope, and Manner of Producing Pre-feasibility and Feasibility Studies for Construction of Structures (*41), the Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge and Planner-in-charg (*42), the Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of the Requirements for Issuance or Revoking License for Preparation of Technical Documentation and Construction License, which approval for construction is granted by the relevant ministry or by the Autonomous Province (*43), the Rulebook on Scope and Manner of Doing Review of Main Designs (*44), the Criteria and Standards for Setting Energy License Fees for Engaging in Energy-related Activities (*45), the Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 2010 (*46).

Details of Relevant Legislation:

(*1) The Energy Law (Official Gazette of the RoS, No. 84/04).

(*2) More details about privileged electricity producers can be found in Chapter 7 hereof.

(*3) Sources of law referred to in this text were effective on August 27, 2010.

(*4) The Law on Concessions (Official Gazette of the RoS, No. 55/03).

(*5) The Law on Planning and Construction (Official Gazette of the RoS, Nos. 72/09 and 81/09).

(*6) The Law on Spatial Plan of the Republic of Serbia (Official Gazette of the RoS, No. 13/96). On July 15, 2010, the Government laid down a new draft Law on Spatial Plan of the Republic of Serbia.

(*7) Planning documents include spatial and urban plans. Spatial plans include: 1) The Spatial Plan of the RoS, 2) The Regional Spatial Plan; 3) Spatial Plans of Local Self-Government Units; 4) Spatial Plans of Special-use Regions. Urban plans include: 1) Urban Master Plan; 2) General Regulating Plans, 3) Detailed Regulating Plans.

(*8) The Law on Ratification of the SEE Energy Community Treaty between the European Union and the Republic of Albania, the Republic of Bulgaria, Bosnia and Herzegovina, the Republic of Croatia, the FYR of Macedonia, the Republic of Montenegro, Romania, and the Republic of Serbia and Kosovo, through the United Nations Interim Administration Mission in Kosovo (UNMIK), pursuant to the United Nations Security Council Resolution 1244 (Official Gazette of the RoS, No. 62/06).

(*9) The Law on Ratification of the Stabilization and Association Agreement between the EU Member States on the one hand, and the Republic of Serbia, on the other (Official Gazette of the RoS – International Agreements, No. 83/08).

(*10) The Law on Ratification of the Convention on Access to Information, Public Participation in Decision-making, and Access to Justice in Environmental Matters (Official Gazette of the RoS – International Agreements, No. 38/09).

(*11) The Decree on Conditions of Electricity Delivery (Official Gazette of the RoS, No. 107/05).

(*12) The Decree on Requirements for Obtaining Privileged Electricity Producer Status and Criteria for Verification Compliance with Requirements (Official Gazette of the RoS, No. 72/09).

(*13) The Decree on Incentives for Electricity Generation Using Renewable Energy Sources and by Combined Heat-and-Power Generation (Official Gazette of the RoS, No. 99/09).

(*14) The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits (Official Gazette of the RoS, Nos. 23/06 and 113/08).

(*15) The Rulebook on Requirements Regarding Professional Staff and Terms of Issuing and Revoking Energy Licenses (Official Gazette of the RoS, Nos. 117/05, 40/06, 44/06, and 44/10).

(*16) The Decision on the Energy Sector Development Strategy of the Republic of Serbia by 2015 (Official Gazette of the RoS, No. 44/05).

(*17) The Decree on the Implementation Program of the Energy Sector Development Strategy of the Republic of Serbia by 2015 for the Period from 2007-2012 (Official Gazette of the RoS, Nos. 17/07, 73/07, 99/09, and 27/10).

(*18) Version 1.0, approval of the Energy Agency, www.aers.org.rs, of 2009

(*19) Version 1.0, approval of the Energy Agency, www.aers.org.rs, of 2008 (Official Gazette of the RoS, No. 55/08).

(*20) Tariff System for Access to and Use of Electricity Distribution System (Official Gazette of the RoS, Nos. 1/07 and 31/07).

(*21) Tariff System for Calculation of Electricity for Tariff Buyers (Official Gazette of the RoS, Nos. 1/07, 31/07, 50/07, 80/07, 21/08, and 109/09).

(*22) The Methodology for Setting Tariff Elements for Pricing Access to and Use of Electricity Transmission and Distribution Systems (Official Gazette of the RoS, No. 59/07).

(*23) The Methodology for Setting Tariff Elements for Pricing Access to and Use of Electricity Distribution System (Official Gazette of the RoS, Nos. 68/06, 18/07, and 116/08).

(*24) The Law on Public Companies and Activities of Public Interest (Official Gazette of the RoS, Nos. 25/00, 25/02, 107/05, and 108/05).

(*25) The Law on Expropriation (Official Gazette of the RoS, Nos. 53/95, 23/01 SUS, 20/09).

(*26) The Law on Air Traffic (Official Gazette of the RoS, Nos. 12/98, 5/99, 44/99, 5/00, 70/01).

(*27) The Law on Waters (Official Gazette of the RoS, No. 30/10).

(*28) The Decree on Compensation for Water Use, Water Protection, and Compensation for Excavated Materials from Watercourses in 2010 (Official Gazette of the RoS, No. 17/10).

(*29) The Rulebook on Contents of Technical Documentation to Be Submitted in the Procedure for Obtaining Water Approval and Water Permit (Official Gazette of the RoS, No. 3/78).

(*30) The Decision on Amount of Drainage Fee, Irrigation Fee, Fee for Use of Water Facilities, and Fees for Other Services in 2010 (Official Gazette of the RoS, No. 9/10).

(*31) The Law on Environmental Protection (Official Gazette of the RoS, Nos. 135/04 and 36/09).

(*32) The Law on Strategic Environmental Impact Assessment (Official Gazette of the RoS, No. 135/04).

(*33) The Law on Environmental Impact Assessment (Official Gazette of the RoS, Nos. 135/04 and 36/09).

(*34) The Law on Nature Protection (Official Gazette of the RoS, No. 36/09).

(*35) The Decree on the List of Projects for which Environmental Impact Assessment (EIA) Study is Mandatory and the List of Projects for which EIA Study May Be Required (Official Gazette of the RoS, No. 114/08).

(*36) The Rulebook on the Application for Decision on the Need for Environmental Impact Assessment (EIA) Study and Contents and Scope of EIA Study (Official Gazette of the RoS, No. 69/05).

(*37) The Rulebook on Contents of Environmental Impact Assessment (EIA) Study (Official Gazette of the RoS, No. 69/05).

(*38) The Rulebook on Contents of Information on Location and Contents of Location Permit (Official Gazette of the RoS, No. 3/10).

(*39) The Rulebook on Contents and Procedure for Issuing Construction permit (Official Gazette of the RoS, No. 26/10).

(*40) The Rulebook on Contents and Method of Carrying Out Technical Inspection of Structure and Issuing Operating Permit (Official Gazette of the RoS, No. 111/03).

(*41) The Rulebook on Contents, Scope, and Manner of Producing Pre-feasibility and Feasibility Studies for Construction of Structures (Official Gazette of the RoS, No. 80/05).

(*42) The Rulebook on Requirements and Procedure for Issuance and Revoking of Licenses to Urban Planner-in-charge, Designer-in-charge, Contractor-in-charge and Planner-in-charge (Official Gazette of the RoS, Nos. 116/04, 69/06).

(*43) The Rulebook on Method, Procedure, and Contents of Data Required for Assessing Fulfillment of Requirements for Issuance or Revoking the License for Preparation of Technical Documentation and the Construction License, which approval for construction is issued by the relevant Ministry or by the Autonomous Province (Official Gazette of the RoS, No. 114/2004).

(*44) The Rulebook on Scope and Method of Doing Review of Main Designs (Official Gazette of the RoS, No. 36/98).

(*45) Criteria and Standards for Setting Energy License Fees for Engaging in Energy-related Activities (Official Gazette of the RoS, Nos. 14/06, 40/06,126/07, and 120/08).

(*46) The Decision on Coefficient Value for Calculation of Energy License Fee for Engaging in Energy-related Activities for 2010 (Official Gazette of the RoS, No. 109/09).

NOTE: Complete text is taken from the document-guide for investors Construction of Wind Farms and Electricity Generation from Wind Energy in the Republic of Serbia, of which authors are Branislava Lepotic Kovacevic, PhD Law, and Bojan Lazarevic, BSc El. Eng.

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