International Project:
Capacity Building for Renewable Energy Resources
and Energy Efficiency in Southeast Europe
Financed by:
Overall Project
Coordinator:
Technical Expertise:
Regional Project
Coordinator:
ACT –
Schroeder
Agribusiness & Consulting &
Training
Minutes of meeting of the talks with the mayor of Strumica
Purpose/topic: Presentation of the program of the study trip for the delegation of the city of
Strumica in Bavaria, further specification of the requirements of the city of Strumica.
Date: December 07, 2011
Location: Strumica, the cabinet of the mayor
Attending persons:
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Mr. Zoran Zaev, mayor of Strumica
Mr. Peter Keller, project expert from Green City Energy (GCE)
Mr. Jean Stanoevski, regional project coordinator
Comments and conclusions:
Mr. Keller gave an overview of the study trip program for the representatives of Strumica that
takes place between December 12 -16.2011.
During the first day of the program (Tuesday) the city of Garching, with a population of approx.
15.000 inhabitants in the north of Munich will be visited. Garching is one of the most active
communities in terms of using renewable energies and energy transfer in Germany. The mayor
of Garching shall present the political process of energy transformation within the municipality.
Practical examples of executed projects (best practice) will also be presented to the members of
the Macedonian delegation in all energy areas. Most importantly, it is related to the projects that
have been implemented by the city administration. Firstly, the utilization of solar power and the
generated economic values for the municipality will be presented. Furthermore, utilization of
geothermal sources and biomass is on the agenda incl. design and implementation aspects of
such projects. Finally, the hosts will be at disposal to answer questions.
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On the second day of the program (Wednesday), management and administration of natural
gas is on the agenda. The gas utility management company of Munich, that supplies gas to the
various municipalities in the large area of Munich will be visited. The process of gas supply and
management shall be presented, covering the technical, the tariff setting, the users and
company management, the staff qualification and the economic aspect of company’s
operations.
Furthermore, possibilities of support in different kinds of projects in the area of gas management
will be presented, so that the members of the delegation can gain new ideas, approaches and
know-how for their every-day operations. Prior to the visit, the gas utility management company
of Munich has received the topics and questions that are of interest to the members of the
Strumica delegation, so that they can particularly focus on their specific demands. In doing so,
the interests of Strumica will be particularly taken into consideration.
On the third day of the program (Thursday), the project partner Green City Energ shall be
visited. The company will present itself in terms of alternative and renewable energy resources.
For the afternoon, a visit and guidance through the Bavarian parliament is scheduled. The
Bavarian parliament building is covered with photovoltaic panels for solar energy (on a renting
basis) and the generated heat is transformed into electrical energy which is then transferred to
the public network. This is so called Bürgersolarpark (Citizens’ solar park), whereas the state
receives rent for the surface and citizens participate in the earnings that are generated through
the process. This system of citizens’ participation is very attractive for municipalities and will
particularly be presented during the visit to the parliament. Finally, at the end of the third day of
the program, one municipal investment in a hydroelectric power station will be visited which
covers the needs of approx. 3.500 thousand households.
High motivation by the members of the delegation, gathering of know-how, experiences, fruitful
visits and contacts and further initiatives that can be implemented in the framework of the
project are expected during the study trip. All local travels will be made by the local
transportation facilities.
Mr. Zaev acknowledged the efforts in the preparation of the study trip and stressed the
invaluable experience from all areas of interests that will be gathered during the visit in Bavaria.
He also mentioned the regional solid waste landfill project in which the German company
STRABAG is one of the candidates. The selection of the landfill operator is expected to occur in
February 2012 and the landfill management includes production of electrical energy from
biogas.
Furthermore, the mayor explained there are geothermal sources on the territory of the
municipality of Strumica with the temperature of 72o. However, they are not used sufficiently.
Part of the geothermal water is used for green houses and for four hotels and the city of
Strumica is preparing design for usage of these geothermal sources for tourism purposes
(construction of further hotels as well as spa and thermal facilities) and for agriculture.
Mr. Zaev explained further that the municipality has nominated construction areas of 260.000
m2 for photovoltaic usages. They will be sold for a price of 1 € per m2. These construction sights
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are up to 95% released from payment of communal fees. In accordance with the
recommendation of the EU and the UN, Macedonia has adopted the appropriate regulation for
purchase of electricity from photovoltaic facilities for total capacity of up to 8 MW power. The
state guarantees purchase of the generated power for a price of 27 cents within a contracting
period of 15 years (whereas the price of electricity currently is 3,5 cents!). Thus, to stimulate
generation of energy from renewables, the state pays 8,5 times higher price for electricity
generated from renewables. Adequate power lines are also available to accept the electricity
from renewables.
Up to now, photovoltaic facilities of only 250 kW are constructed oh the territory of the country.
Strumica intends to be among the first municipalities in which such projects will be implemented.
The objective is to generate 20% of the electricity from renewables until 2020. The mayor
stressed that the municipality is prepared to offer extremely favorable conditions for cooperation
within the project “Capacity building for usage of renewable energy resources and energy
efficiency” in all energy areas in the coming years. Investments from German companies are
particularly welcomed. To this regard, the mayor mentioned that Strumica intends to purchase
German products in the area of gas supply and distribution.
Mr. Keller highlighted the particular importance of the generated value for the municipality that
must be taken care of during the implementation of such projects and not only the profits of the
private companies.
Mr. Zaev mentioned PPP as a form of investment, whereas the municipality offers the land and
the construction areas. Further subject of the discussions were the wind parks. The mayor
stressed that the Strumica region is particularly favorable for generation of wind energy and in
the previous years the appropriate potential analysis have proven that wind can be used widely
in the region. He gave the documents of the analysis potential to Mr. Stanoevski (electronic
files).
Mr. Stanoevski stressed that the project can support the municipality in the search of potential
investors, particularly from Germany and in providing project solid contacts with German
producers and suppliers of gas technology. The project can also offer preparation of different
financing models, also in the area of PPP in order to attract potential investors.
Mr. Keller mentioned the possibilities of cooperation in the area of communal planning.
Mr. Zaev stressed that the issuing of construction permits for energy projects is under the
jurisdiction of the municipality. As possible cooperation field the Mantovo dam can (the lake
Turija) be taken into consideration. The water is transported through a pipeline (that belongs to
the municipality) to the filter station, and its energy potential is unfortunately not used at all. On
this pipeline a hydroelectric power station can be built. The analyses thereof are in the public
communal enterprise. However, to sell the generated electricity, a contract with the Energy
agency within the Ministry of economy must be concluded. The public communal enterprise for
water supply has elaborated a project for a power plant of 150 kW.
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Mr. Keller asked about the delivery of the project design for this power plant and the mayor
promised to give it at disposal.
Mr. Zaev has recently spoken to the member of the German parliament, Mr. Ralf Bergman from
the der SPD (personal friend) who mentioned to him that starting from 2012 a grant of 55 Mio. €
shall be opened for Macedonia for renewable energy and energy efficiency projects. In this
regard, one of the major aspects can be the transfer of experiences and know-how in the
framework of our project. The contact data of Mr. Ralf Bergman was given to Mr. Stanoevski.
Mr. Keller mentioned that one of the board members of Green City Energy, Prof. Mioska
maintains excellent contacts with the politicians form the SPD and the Friedrich Ebert Stiftung
and establishing of contacts is of huge importance in a project of this nature.
Mr. Zaev also mentioned the further construction of green houses on the territory of the
municipality to install co-generators (in German: Blockheizkraftwerke). The biogas itself
generates two products, electricity and heat. The generated heat can be used for the heating of
the green houses. This project is implemented for almost 2 years now with 9 other municipalities
in the region, whereas the financial offer is expected in January next year. Apart from Strabag,
Hasa, Por from Austria and Catanzarro from Italy are shortlisted. One of these 4 firms will be
selected as concession partner.
The municipality has invested 1,5 Mil. € so far for the gasification of the city, whereas a primary
network of 13 km has been constructed, incl. a platform for decompression of gas and tanks.
Virtual pipeline has been established through compression, transportation and decompression
of the gas. Currently a tender is ongoing for adapation of the hospitals, kindergartens, schools
and municipal buildings for transfer stations for gas consumption. Thereby, the municipality
intends to replace the oil as heating fuel with natural gas at a half price. Calculations have
shown that the savings in heating of schools and kindergartens will amount to 300.000 € per
heating season (6 months). There are factories in Strumica that will save up to 1.000.000 € per
annum. That will certainly make them more competitive on the international markets.
Mr. Keller deeply acknowledged the innovational policy of the municipality in terms of energy
and renewables and thanked the mayor for the delivered data and information. He, furthermore,
highlighted the possibility of preparing financial models for financing of different kind of projects
in these areas.
The municipality of Strumica has no heavy industry and the mayor stressed his intention to
make Strumica a carbon neutral municipality. Vast potential exists in all energy efficiency areas
(sun power, gas, wind energy, geothermal energy).
Mr. Keller mentioned the possibility of capacity building for the municipal representatives in
energy and CO2 balance within the project. There are excellent examples of municipalities in
Germany that can produce applicable energy and CO2 balances and this can be prescribed in
the different areas and can be tested in the every day operation and to check the influence to
municipal system. This is applicable in form of a large municipal software tool. It shall cover the
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industry, the private households, for the public transport and for the administration. With this
process, one can round up all other aspects.
Mr. Zaev mentioned that the municipality of Strumica as ecologically protected region, is also
the largest exporter of healthy food in the country. On an annual basis, fruits and vegetables in
value of ca. 150 Mil. € are exported, out of which the export to Germany amounts to approx. 40
Mil €.
Mr. Zaev also mentioned that the municipality of Strumica has replaced a total of 3.200 public
lighting bodies with new models that save energy. The investment amounted to 30.000 € and
the savings on a monthly basis amounts to 20.000 €.
Mr. Keller stressed the importance the creation of a road map for further activities in the project,
whereas the project can support the city and to use the visit to Germany to exchange
experiences and competency.
Mr. Zaev stressed that the know-how gathered during the study visit in Germany is sometimes
more valuable and incomparable. Investors follow the possibilities to make profit and if Strumica
has enough to offer to them, they will come. The mayor concluded with the presentation of the
competencies of the team that visits Germany: Mr. Mitko Andreevski is the energy counselor,
the chief of cabinet of the mayor, Mr. Nikola Godev and the manager of the public gas utility Mr.
Zoran Kitanov.
Strumica, 07.12.2011
Prepared by: Jean Stanoevski
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