The Republic of Serbia
THE MINISTRY OF MINING AND
ENERGY
Serbia
TECHNICAL INSTRUCTIONS FOR FILLING IN OF APPLICATION FORMS
under the Public Call for
the award of grants for construction of biomass/biogas combined heat and power
generation plants
Introduction
This Technical Instruction has been developed for the purpose of assisting applicants participating in
the Public Call for the award of grants for construction of biomass/biogas combined heat and power
generation plants to correctly fill in the Application Form. The recommendations given herein are not
mandatory, but are intended to serve as guidelines only as to how applicants are expected to prepare
and harmonize their bid documents in order to facilitate a speedier and smoother bid evaluation
process.
This Technical Instruction contains a series of recommendations and tables with reference technical
data, which are to indicate which physical values are expected when evaluation the submitted bids. If
it is determined that calculated values in any of the bids differ significantly from the herein
recommended values, in the absence of relevant justification for such differences in calculations
and/or basic parameters, the Commission shall reserve the right to undertake itself the relevant
calculations and based on them evaluate if the relevant plant is in compliance with the criteria of the
Public Call. The Commission may decide not to evaluate not orderly and incomplete bids and
eliminate them from the competition for the award of grants.
Recommendations for calculations and filling in of the application
form
The Application Form shall be verified by the seal and signature of the applicant and as such
submitted in the original form.
All parts of the Application Form which are of blue color serve as instructions for filling in and should
be deleted before printing the filled in form.
The applications shall be made up in the Serbian language and all correspondence during the
procedure shall be in the Serbian language, so the Commission shall not be obliged to evaluate
applications made out differently.
1. General information about the applicant:
Items 1.1. to 1.4. – General information about the applicant
Data is to be filled in about the legal or physical entity applying under the Public Call – the applicant.
It is expected that this person is the owner of a plant, an investor or the loan borrower for the plant
construction, and no other person can be entered here instead of the applicant.
Item 1.5. – Information about representation
This information refers to the physical person authorized to represent the legal entity submitting the
application (director, president, etc.) and the personal data of such a person is to be entered here.
Item 1.6. – Information about the contact person
Official information is to be entered about the person who shall represent the applicant under the
Public Call which shall serve as contact for technical issues. It is not necessary to repeat the
information already stated, such as address, telephone number and the like, except the different
name of the contact person.
2. Basic data about the plant:
Items 2.1. and 2.2. Basic data about the plant
Enter the official data as stated in the technical documentation and acquired permits.
Item 2.3. – Technical data about the plant
Enter the general technical data about the plant from the technical documentation and feasibility
study or business plan. It is very important that all data in the documentation should be the same in
different pieces of documents and permits. For every piece of data it is required to provide reference
to the relevant page in the attached documentation, in order to enable the verification of the
statement. The relevant sub-items shall have the following meaning:
Sub-Item 2.3.1. – Type of plant: this refers to the technology applied. For instance, biogas combined
heat and power generation plant.
Sub-Item 2.3.2. – Installed electric power capacity of the plant: enter the total installed electric
power capacity as approved for connection to the grid and state connection requirements. The unit
used is kW and it should be less (for losses) or equal to the sum of active powers of all generating
units included in the plant.
Sub-Item 2.3.3. – Installed heat capacity of the plant: it is the nominal heat capacity that the plant
can supply to consumers at the point of measurement of the supplied heat to the heating system. In
case that there is power consumption for non-production purposes, this item should state the
nominal heat capacity that is supplied for the plant’s own heat consumption, in line with the
technical documentation which is enclosed as evidence. This data is to be expressed in kW.
Sub-Item 2.3.4. – Expected annual electricity generation: state the total expected quantity of
electricity generated by all generating units, without losses and/or plant’s own consumption. To be
expressed in MWh.
Sub-Item 2.3.5. – Expected annual electricity consumption: represents the expected quantity of
electricity taken from the system for the plant’s own purposes. If there is no installed separate
measurement of such electricity for non-production purposes, then it is calculated in the expected
annual consumption of electricity. If there is installed measurement of electricity for non-production
purposes, the electricity consumption should not be included in this data. To be expressed in MWh.
Sub-Item 2.3.6. – Expected annual supply of electricity to the grid: the expected quantity of
electricity supplied to the grid at the point of taking over. To be expressed in MWh.
Sub-Item 2.3.7. – Expected annual heat generation: total quantity of heat generated by generation
units, irrespective of whether it is supplied to consumers, used for own production purposes or is
transported to the cooling system. To be expressed in MWh.
Sub-Item 2.3.8. – Expected annual heat supply: state separately the heat supplied to the heating
system for heat consumers, and separately the heat used for non-production own purposes. To be
expressed in MWh.
Item 2.4. – Data regarding consumption of fuel/energy sources
It is necessary to state the expected consumption of all types of fuel. Special emphasis is needed to
harmonize the measuring units in doing the calculation.
In case of biogas plant, and in case of other technologies in which the energy source (like biofuels)
comes from relevant raw materials of various origin (manure, silage, industrial organic waste, etc.),
fuel / energy source for the purpose of evaluation under this Public Call shall mean that raw material
which possesses a certain energy potential and has different physical and chemical properties than
other raw materials used in the production process. For example, if a biogas plant uses cattle manure
as primary source of biogas, and if it uses maize silage as secondary raw material – in that case in
item 2.4.2. the applicant should show the production of primary energy from cattle manure as
primary fuel/energy source, and in item 2.4.3. the production of primary energy from maize silage as
secondary fuel/energy source. In case that a plant uses more raw materials of different origin and
characteristics, each of these should be presented in a separate sub-point as described in the
continuation of this instruction. Thus, item 2.4.2. primary; 2.4.3. secondary; 2.4.4. third; 2.4.5. fourth;
etc., by adding sub-items using the same principle depending on the design of the specific system.
Sub-Item 2.4.1. Expected annual consumption of primary energy, or total consumption of
fuel/energy sources: this value is the sum of primary energies derived from all used fuels. Thus, this
information should be equivalent to the sum of annual contributions of primary energies stated in
sub-items from 2.4.2. onward (up to item 3). To be expressed in MWh.
Sub-Item 2.4.2. Primary fuel/energy source: state the name of the primary fuel or energy source.
Manner of procurement: state how this primary fuel is procured.
Expected annual consumption: state the expected annual consumption. To be expressed in tons of
dry matter. This value is calculated by using the following formula:
Dry matter mass = total mass of fuel * (100 - % humidity in fuel)/100
Mean heat value: state the mean heat value of the energy source. Note that the adequate measuring
unit is MWh/tons of dry matter. Table 1 presents the typical lower heat value of fuels used for
combustion.
Table 1: typical values of lower heat value of various fuels of biological origin
[Ref: 1]
Fuel
Corncob
Sugar beet pulp
Wheat hay
Glass
Acacia
Poplar
Willow
Coniferous trees
Municipal waste
Newspapers
Biogas
Lower heat value
MWh/tons of dry matter
5,03
4,97
4,92
5,17
5,14
4,92
5,11
5,78
5,17
5,75
5,56
Annual contribution in primary energy is expressed in MWh and is calculated as follows:
-
For direct biomass combustion:
Annual contribution to primary energy (heat) [MWh] = lower heat value of fuel [MWh/ton of dry
matter] *quantity of fuel [tons of dry matter]
-
For fuel combustion in digestor:
Annual contribution to primary energy (heat) [MWh] = heat generated by combustion of biogas
[MWh/tons of dry matter] * quantity of fuel [tons of dry matter]
Table 2 is a summary of typical data for heat generated by combustion of biogas depending on the
type of substrate.
Table 2: typical values for heat generated by combustion of biogas (anaerobic combustion) by type of
substrate [Ref: 2, 3]*
Typical biogas
production
Total released heat
m3/tons of dry matter MWh/tons of dry matter
Straw
Grass
Maize
Potato
Sugar beat
Swill
Cattle manure
Pig manure
Slaughterhouse waste
Dry poultry manure
265
271
317
400
392
618
244
325
575
500
1,72
1,76
2,06
2,60
2,55
4,02
1,59
2,11
3,74
3,25
Typical dry matter
content
%
78
35
25
26
24
33
9
8
16
75
*In practice, the quantity of biogas is often expressed as volume of gas per unit of dry matter, and the heat released from
the gas is calculated subsequently. Table 2, for purposes of uniformity, presents volume of gas calculated into heat by
using data from Table 1.
Table 3 presents the typical quantities of produced manure per head of livestock and can be used to
define capacities for manure production.
Table 3: typical quantities of produced manure [Ref: 3]
1 dairy cow (500 kg)
1 calf (250 kg)
1 fattening bull (500 kg)
1 piglet (15 kg)
1 pig (100 kg)
1 sheep (50 kg)
100 laying hen (2 kg per piece)
100 chicks (1 kg per piece)
Tons of dry matter
1,90
0,64
1,52
0,03
0,22
0,18
0,95
0,66
Sub-Item 2.4.3. Secondary fuel/energy source: state data according to guidelines for primary energy
source (§ 2.4.2).
Sub-Item 2.4.4. Third fuel/energy source: state data according to guidelines for primary energy
source (§ 2.4.2).
3. Financial information:
State the financial data regarding the plant from the agreement with the bank and the business plan.
It is also very important here that all the data should be identical in different documents and
permits. For each piece of data stated also state the reference to a relevant page of the
accompanying documentation, making it possible to verify that the statements are authentic.
Item 3.1. – total value of investment (excluding VAT): the total value of the investment should be
equivalent to the value of the investment stated in the approved loan agreement. State this value in
the currency of the loan and in USD calculated by using the mean exchange rate of the NBS as of the
date of this Public Call.
If, for instance, the investor is purchasing land on which to build the plant, such an amount shall be
included in the total value of the investment because the bank would also include this expenditure in
the investment projections. If the investor owns the land, such an amount is not to be included in the
value of the investment which is presented for the project purposes. Practically, the project subject
to the Public Call is evaluated on the basis of the report of the bank technical consultant and the total
investment values stated in that analysis. All other expenditures will be treated in the same manner,
for instance preparation of technical documentation, costs associated to grid connection, purchasing
of accessory equipment, construction of auxiliary buildings and infrastructure, etc. it is therefore very
important that the total value of the investment is harmonized and stated in the same manner in all
documents to be enclosed, and the stated total value of the investment in the loan agreement shall
be considered as the relevant information for the purposes of this item.
On the other hand, the Public Call refers to biomass/biogas combined heat and power generation
plants, so that all parameters for evaluation can refer only to the components of such plants and
nothing outside. In preparing the documentation and filing of the application for loan approval it is
very important to separate the relevant energy generating plant with auxiliary equipment and
facilities (as one whole), from all other components which may be an integral part of a greater
project by the investor. The value of the investment for the plant which is to be subject to evaluation
under this Public Call can certainly not include the agricultural land for the growing of raw materials,
nor agricultural machinery for working the land, forest land, pastures, stables, livestock, multipurpose silos (except those used solely for the purposes of the relevant plant), dairy plants, other
commercial facilities, passenger vehicles, etc. in the supplied documentation, and especially in the
part relevant to financial aspects, it is very important to clearly separate the components which refer
strictly to the energy generation plant and group them as one whole with respect to all other
components. If the submitted documentation does not make it possible to clearly identify the value
of the investment into the relevant plant compared to other investment costs, the Commission shall
not be in a position to undertake evaluation and ranking of the project, and such a project can end up
not being considered for grant award.
All monetary values of the investment stated in the application, including the total value of the
investment for the plant, must be expressed exclusive of VAT. In case that the bank did include VAT
when approving the loan, it is necessary in the submitted documentation to clearly indicate and
separate the basic value (total value of investment in the plant) and the relevant VAT amount.
Item 3.2. – Amount of loan approved: the amount of loan approved should be equivalent to the
amount stated in the loan agreement. This amount is to be expressed in the currency of the loan and
in USD calculated by using the mean exchange rate of the NBS as of the date of this Public Call.
Item 3.3. – Date of loan / financing approval: the date stated in the loan agreement.
Based in the foreign currency list number 84 of the National Bank of Serbia (NBS) as of the date of
this Public Call (8 May 2015) the following formula is to be used for currency conversion:
Amount in USD = Amount in RSD / 107.7246
Amount in USD = Amount in EUR * 120.8562 / 107.7246
Amount in USD = Amount in another currency * (the mean exchange rate of the relevant currency)
/ 107.7246
The final monetary values should be rounded to whole numbers, without decimal points.
4. Important dates:
Item 4.1. – Construction permit effectiveness date: if the construction permit is acquired, fill in the
relevant data.
Item 4.2. – Date of reporting commencement of works: if the commencement of works is reported,
state this data.
Item 4.3. – Date of approval for trial run: provided that the approval for trial run is issued, state the
data.
5. Attached documents:
All documents which need to be attached either as original or as certified photocopy shall be
specifically in the remaining part of this document and shall be specifically identified as such. Other
documents are attached as simple copies, nor requiring any certification. The Commission shall
reserve the right to require from the applicant the original documents at the time of contract
signature.
Item 5.1. – Excerpt from the business registry – to be provided as attachments only by companies,
cooperatives and entrepreneurs.
Excerpt from the registry of agricultural estates – to be attached only by agricultural estates.
The unnecessary statements from this item regarding the attached documents should be deleted.
Item 5.2. – Design for the construction permit authenticated by the signature and seal of personal
licensed of chief designer according to the law regulating planning and construction: what needs to
be submitted is the „excerpt from the construction design” which is submitted for the need of
acquiring the construction permit. Not including components relevant to fire protection, water
installations, management of the surrounding plot, etc., will not be reason for elimination. It is
important to note here that the requirement for participation in this project is not the acquired
construction permit, but the acquired loan agreement from the bank. In most cases, however, the
banks are not willing to approve a loan without the construction permit being ensured.
Item 5.3. – Bank document – loan approval to applicant for project financing:
The document which needs to be submitted as bank loan approval document is a document which
shows without any doubt that the bank and the investor have undertaken their obligations with
respect to project financing. The most reliable document in this respect is the loan agreement. Any
document which leaves room for doubt as to the intentions of the bank or the investor regarding
project financing represents a risk that it can be denied by the Commission as not relevant evidence
under this item.
Item 5.4. – Feasibility study; or Business plan: it is necessary to attach at least one of the two
components of technical documentation which demonstrates beyond doubt the data from item 2.
The unnecessary statements from this item regarding the attached documents should be deleted.
Item 5.5. – Report by technical bank consultant on project feasibility for funding from the
approved loan; it is expected that the technical consultant of the bank has undertaken project
assessment and by means of a relevant report has notified the bank management that the project
can be considered technically feasible and financially justified. Under this item, this report should be
submitted.
Item 5.6. – Confirmation by the relevant branch of the Tax Administration that the applicant has
settled
all his document
tax and contributions
obligations as of the date of publication of the public call;
The original
should be submitted
The original documents should be submitted.
Item 5.7. – Confirmation by the relevant authority that the applicant has not over the past two
years been sentenced by a valid decision prohibiting economic activity; the original documents
should be submitted for the stated period of time ending with the date of issuance of such a
confirmation in 2015. For companies which did not exist before the required period, the confirmation
should be provided for the period since registration.
Item 5.8. – Filled in and signed model contract form, as an integral part of this Public Call
documentation; it is necessary to electronically fill in the relevant fields of the model contract and
authenticate it with the seal and signature by the applicant. Only original documents should be
submitted. Items of the contract which cannot be known to the applicant at the time of filling in this
model contract shall be left empty. In case of final contract signature, the applicant will receive
another copy if the same contract which shall contain all the required data and that will be the
version to be officially signed. This document serves as confirmation of the applicant that he accepts
all conditions included in the contract.
Item 5.9. – Preliminary contract of contract on sale of heat; to be submitted only if the applicant has a
document of this kind. Otherwise, this item should be deleted.
List of References:
1: Biomass energy databook 4th ed
2: Basic data for biogas, 2nd ed., MALMÖ SWEDEN, 2012
3: Manure Characteristics, MWPS-18 Section 1, 2nd ed.