Notos Wind Division
Notos Wind specializes in producing electricity from wind. With its strategic plan and business alliances in place, Notos is preparing for construction of its first wind farm, the 20 MW Belo Blato project. Additional projects in the Vojvodina AP region are being evaluated.
For the Belo Blato wind farm the company has secured 89 hectares permitted for wind power and agriculture located north of Belgrade in the river delta of central Banat in the municipality of Zrenjanin within Vojvodina AP. The site hosts some of the most constant winds in the region. The requisite permit applications have been made and a feasibility study has been completed.
The Belo Blato project is being developed to:
• Produce 20 MW of clean wind power, supplying 6,000 homes
• Enable the sale of carbon credits
• Leverage existing infrastructure and power markets
• Supply the growing energy markets of Serbia and surrounding European countries
• Establish the company as a leader in renewable energy generation in the region
• Help reduce greenhouse gas emissions
• Create local employment
• Contribute to local community development
• Maximize use of the wind farm’s land to grow wheat for the local community
• Demonstrate the potential for renewable energy development
According to the company Vojvodina AP offers excellent potential for wind energy production. Nearly two-thirds of its surface area features wind speeds exceeding 4 m/s. The Pannonian Plain, north of the Danube, covers approximately 2000 square kilometres and is suitable for the construction of wind generators with the basic infrastructure, from roads to the electricity grid, already in place. The prerequisite constant level of 5 m/s can be found in several locations: Bela Crkva, Indija, Irig, Sombor, Novi Sad, Vrsac, and Zrenjanin.
Notos Power Trading Division
Notos Power Trading is one of only a few electricity marketing and trading companies licensed to conduct business in Serbia. The country’s electricity market allows for both the import and export of power. The Serbian trading industry is assessed at 10 TW (terawatts = billion kilowatts), with 70% for imports and 30% available for exports.
Authorized power traders operate via a bid process conducted by the state owned utility Elektroprivreda Srbije, EPS. EPS issues a public tender for the desired quantity of electricity to be purchased or sold, and licensed entities submit their proposals.
The company is currently negotiating with several large energy trading firms in Europe to expand its network of potential customers. A European partnership would enable a more rapid expansion of activities and create a larger platform for Notos Wind and its generated electricity. Green Star expects to become the only company in Serbia producing its own wind energy available for export.
Notos Agri Division
Notos Agri maximizes use of the company’s wind farm land assets by producing and selling farmed goods. The division will develop a wheat farm on its 89 hectare Belo Blato site.
The agricultural sector contributed about 22% to Serbia's gross domestic product (GDP) in 2007. Agricultural exports continued to grow and contributed about 19% of total Serbian exports in 2007. Serbia's total agricultural exports were estimated at $1,690 million, an increase of 33% over the previous year, with agricultural trade surplus reaching an all time record of $574 million this year. Serbia's agricultural exports consisted mostly of sugar, corn, wheat, fruits and vegetables. Most of Serbia's agricultural and food exports went to former Yugoslav Republics, including Montenegro, Macedonia and Bosnia-Herzegovina and the European Union (EU). (US Department of Commerce, Country Commercial Guide 2008)
Agriculture has historically been the mainstay of Serbia’s economy with cropland occupying nearly two-thirds of its territory. Land and climate conditions are highly conducive to the development of agriculture. The principal area of commercial agriculture is the Vojvodina region and adjacent lowlands south of the Sava and Danube rivers, including the valley of the north-flowing Morava River. The economy of Vojvodina is based on the abundant wealth of fertile arable land which covers 84 percent of its area. Its natural fertility is improved by an extensive irrigation network.
With the Belo Blato wind project Green Star will become the first company to develop wind power in Serbia and answer the government’s call for increased renewable energy.
Significant Untapped Opportunity in Serbia
The Republic of Serbia is located in the central part of the Balkan Peninsula, on the most important route linking Europe and Asia, occupying an area of 88,361 sq. km. Serbia is known as the cross-roads of Europe. The international roads and railways passing down its river valleys make up the shortest link between Western and Central Europe, on the one side, and the Middle East, Asia and Africa, on the other.
Economy
According to the US Department of State’s Background Note updated March 2008, Serbia's economic progress is substantial, with output up nearly 46% since 2000. The stable dinar, a budget surplus, and a restructured financial sector all demonstrate the success of stabilization policies. The short-term economic outlook for Serbia is positive, but enterprise restructuring and unemployment remain major challenges.
Growth in 2007 was a healthy 7%. Through September of 2007, due to continued central bank policy to target inflation, the inflation rate averaged 7.4%. The increase in industrial production of 3.7% in 2007 followed a strong 2006 performance.
Serbia has moved up 27 spots to claim the 68th place in the 2007 World Bank and International Finance Corporation’s “Doing Business” report, which ranked 175 world economies based on the ease of setting up businesses and obtaining licenses, along with the complexity of tax and regulatory issues. (US Department of Commerce, Country Commercial Guide 2008)
Serbia's economic team views foreign capital as vital to restructuring and has demonstrated its committed to removing barriers and facilitating investor interest. The former Yugoslav Law on Foreign Investments (January 2002), amended and formally incorporated into Serbian law (2003), establishes the framework for investment in Serbia. The law eliminates previous investment restrictions; extends national treatment to foreign investors; allows the transfer/repatriation of profits and dividends; provides guarantees against expropriation; and allows customs duty waivers for equipment imported as capital-in-kind. In order to attract FDI, Serbia developed a range of incentives for investors in 2006, including cash grants for investments resulting in significant job creation, as well as tax incentives in the form of credits, reductions in payroll contributions and reduced corporate tax rates. (US Department of Commerce, “Country Commercial Guide 2008”)
Energy Policy
The current Serbian Energy Policy sets out three crucial elements of sustainable development: competitive energy markets, environment protection, and energy efficiency and use of renewable sources. Energy Law was adopted by the National Assembly of Serbia on July 22, 2004 and entered into force on August 1, 2004.
The institutions founded according to this Law are the Energy Agency of The Republic of Serbia (SEA), the Energy Efficiency Agency of The Republic of Serbia (SEEA), and the Energy Association.
Serbian energy policy includes the following objectives:
• Creation of transparent, attractive and stable conditions for investments into building, revitalization and upgrading of energy-related facilities and systems, as well as creation of conditions for their connection to energy systems of other countries
• Stimulation of use of renewable energy sources
• Stimulation of environment protection
• Decentralization of rights and responsibilities in planning and execution of development programs in the energy sector
Serbia’s Renewable Energy Potential
According to the Serbian Ministry of Mining and Energy, Serbia’s endowment of renewable energy resources is substantial but the realization of its clean energy potential is in its infancy.
In 2007 Serbia produced 8.796 Mtoe and imported 6.139 Mtoe. Renewables made up only 5.6% of the country’s primary energy supply. All of the renewable energy (9,928 GWh) was produced by hydro power plants. There are currently no wind power projects producing energy. (Republic of Serbia – Ministry of Mining and Energy, “Renewable Energy Sources”, May 2008).
Alternative energy generation is a priority for the Republic of Serbia. The Serbian Energy Efficiency Agency is designated by the government to promote energy efficiency and renewable energy. The country is finalizing a host of legal regulations to promote investment in renewable energy. These include the definition of renewable producers as privileged power producers, guaranteed grid access for privileged power producers through obligation of local distribution companies to purchase all the electricity produced from renewable sources, amendments to energy law, feed in tariffs, and standardized power purchase agreements. (Republic of Serbia – Ministry of Mining and Energy, “Renewable Energy Sources”, May 2008).
