Construction of Plants and Electricity/Heat Generation from Hydrogeothermal Resources in the Republic of Serbia - Land Utilization and Permits

It should be stressed that all the works that are carried out or structures that are constructed underneath the surface of the terrain are subject to the Law on Geological Explorations and the the Law in Mining. Construction of above-ground facilities (pipelines, electrical and mechanical installations, degassers, reservoirs/tanks, etc.) is partly regulated under the the Law in Mining, and partly under the Law on Planning and Construction. "Above-ground structures for exploitation, treatment, and transportation of ground water“ (*95) in exploitation field shall be constructed in accordance with the the Law in Mining.

Facilities, i.e. structures connected with the soil, which represent a physical, functional, technical, technological or biotechnical entirety with all the required installations, plants, and equipment, or the actual installations, plants, and equipment, which are built-in in a facility or that are independently constructed (buildings of all types, traffic areas, water, and energy facilities, interior and exterior networks and installations, facilities of public utility infrastructure, industrial, agricultural, and other industrial facilities, public green areas, sports and recreation facilities, cemeteries, air-raid shelters, etc.) shall be constructed in accordance with the Law on Planning and Construction. (*96)

Delimitation between mining facilities and the structures subject to the Law on Planning and Construction (building structures) and the Energy Law (an energy facility) is not simple, and the classification of structures as mining facilities and as energy facilities is made depending on the use of the facility. Structures that are intended for direct exploitation of geothermal energy (*97), meaning for its use for direct heating of residential buildings or for supply to a district heating pipeline for heat distribution could be constructed according to the the Law in Mining. In the case when the process of exploitation of geothermal energy would be intended for the use in a facility for generation of heat and/or electricity, such a facility would be constructed in compliance with the Law on Planning and Construction.

It is necessary to differentiate between the construction of facilities for direct exploitation of geothermal energy and engaging in the activity of heat and/or electricity generation. When the actual construction of a facility (mining or energy one) is in question, they are to be constructed in compliance with the applicable law, but engaging in the activity of heat and/or electricity generation is regulated in compliance with the Energy Law, the Law on Public Companies and Activities of Public Interest, and the Law on Public Utility Services. It is necessary to point to the fact that the Law on Concessions (*98) is the only statute of the Republic of Serbia, which provides for a possibility to simultaneously exercise both the right to survey and to exploit hydrogeothermal energy, to construct, maintain, and use public utility facilities for the purpose of engaging in public utility services, construction, maintenance, and use of energy and other facilities for the purpose of generation of electricity and heat, as well as for engaging in other activities of public interest. Such a definition of the subject matter of a concession indicates that, subject to this Law, one may apply for a concession, which would include the entire survey and exploitation of geothermal energy and engaging in the activity of generation of heat and/or electricity. (*99)



Facilities for Direct Exploitation of Hydrogeothermal Energy (*100)

In the case when geothermal energy is exploited directly, by a person who is the holder of the exploitation right, for heating in an apartment building, school, hospital, a spa resort and the like, without connection to a district heating system or otherwise supplying heat to third parties – a mining facility would be sufficient for the concrete exploitation. The facility of the holder of the exploitation right, which uses hydrogeothermal energy for heating, shall be constructed in compliance with the regulations on planning and construction. In the specified case, the application for the Location Permit shall contain the data on the manner of the utilization of the hydrogeothermal resource and the manner of discharge of water used from the hydrogeothermal resource to the ground, sewer or otherwise, as well as the necessary water documents, if the entire project is not presented in the procedure for obtaining the water documents for mining investigation and exploitation works and facilities. (*101)

Construction of an Energy Facility for Heat and/or Electricity Generation

Energy facilities for engaging in the activity of heat/electricity generation from hydrogeothermal resources, subject to the activity they are engaged in, may be: 1) Power plants for electricity generation; 2) Power plants for heat generation, and 3) Power plants for generation of both electricity and heat in a combined cycle. All such power plants, subject to their respective rated capacities, may be: 1) Power plants of over 10 MW, and 2) Small power plants of up to 10 MW.

Depending on the power plant in question, different provisions of the same regulations can be applied to it. The different application of these provisions is most often related to the competence of the authority that hands down the decision in the concrete administrative procedure, but it may also be related to some other requirements.

Sources of Law (*102)

Regulations on construction of an energy facility for generation of heat and/or electricity (hereinafter referred to as: the power plant) can be classified in two main groups: the regulations governing the area of planning and construction, and the regulations regulating the area of the energy sector. The group of regulations regulating the area of planning and construction includes, first of all, the Law on Planning and Construction, the bylaws under this Law, the Law on Spatial Plan of the Republic of Serbia, and other regulations.

Spatial plans (regional spatial plans, spatial plans of the units of local self-government, and spatial plans of areas for special use), and urban development plans (urban master plan, general regulating plan, detailed regulating plan) are planning documents. The regulations governing the area of construction prescribe the procedures for obtaining the Location Permit, the Construction Permit, and the Operating Permit, and planning documents define the objectives of spatial planning and development, i.e. of spatial development, i.e. whether it has been planned to construct a certain structure at a certain place in the Republic of Serbia within a certain time period. The necessary element for obtaining the specified permits is obtaining the technical requirements for connection to the electricity grid or to a district heating network, as well as the Water Requirements, the Water Approval and, in certain cases, the Water Permit as well, which are issued in the procedure stipulated in the Law on Waters and in the regulations adopted under this Law.

The group of regulations in the field of the energy sector includes: the Energy Law, regulations implementing this Law, the Energy Sector Development Strategy of the Republic of Serbia, the Program of Implementation of the Energy Sector Development Strategy of the Republic of Serbia, and the other above specified regulations that are related to the issuing of the energy license, connection of a structure to the grid, etc.

The Energy Law stipulates that energy facilities may be constructed if the Minister of Mining and Energy issues the energy license to the applicant. The procedure for obtaining the energy license is regulated by the Rulebook on Criteria for Issuing of Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits. It is also envisaged that the energy license is issued in compliance with the Energy Sector Development Strategy of the Republic of Serbia and with the Program of Implementation of the Energy Sector Development Strategy of the Republic of Serbia, which regulates the requirements and the place where a specific energy facility should be constructed. The procedure for obtaining the energy license shall precede the procedure for obtaining the Construction Permit for a specific facility, which is regulated by a group of regulations on planning and construction.

The procedures that are related to the obtaining of the energy license, the Location Permit, the Construction Permit, the Operating Permit, the license for engaging in the activity, connection to the electricity grid or to a district heating network, and other procedures necessary to obtain the ancillary documentation are administrative procedures, and the deadlines for obtaining such documents are specified in the actual regulation regulating the procedure for obtaining an administrative decision necessary for construction of a power plant or for engaging in the activity of electricity/heat generation. In case that such deadlines are not specified in the concrete regulations, the Law on General Administrative Procedure shall be applied to the deadline for issuing of the concrete administrative decision. (*103) (*104)

Procedure for Construction of a Power Plant

In order to construct and utilize any structure in the Republic of Serbia, and even the structure of power plant, it is necessary to meet the following requirements: 1) To obtain the energy permit; 2) To obtain the Location Permit; 3) To obtain the Construction Permit; 4) To construct the structure, and to ensure the technical inspection of the structure; and 5) To obtain the Operating Permit.

Construction of structures in the Republic of Serbia, formally, starts with the obtaining of the Construction Permit, and it is carried out on the basis of that permit and the prepared technical documentation.

The procedures preceding the obtaining of the Construction Permit shall be: 1) Obtaining the energy permit, which is necessary for construction of energy facilities, which include power plants of a capacity exceeding 1 MW; 2) Obtaining the Location Permit in compliance with the valid planning document; 3) Preparation of technical documentation. In order to obtain the energy permit it is necessary to obtain the Information on the location. At any rate, procedure for obtaining the energy permit must be completed prior to obtaining the Location Permit. Within the procedure for obtaining the Location Permit from the competent authorities and organizations, it is necessary to obtain the Water Requirements, electric power and technical requirements for connection to the electricity grid, requirements for connection to public utility infrastructure, etc.

Within the procedure for obtaining the Construction Permit, for a power plant of a capacity exceeding 50 MW, it is also prescribed that the Environmental Impact Assessment Study for the future facility shall be submitted.

Selection of the Location, Perusal of Valid Planning Documents, and Information on Location

The first step of a potential investor, or of the person for whose requirements the structure is constructed and to whom the Construction Permit for construction of a power plant will be made out, is certainly selection of the location. The location and its selection are already predetermined by the actual place where geothermal energy is going to be exploited.

The second step of the investor is verification as to whether the valid planning documents envisage construction of an energy facility at the selected location.

In the unit of local self-government, whose territory includes the selected location, one can get for perusal the valid planning document in which it is possible to check whether construction of energy facilities has been envisaged at that location. Then, the Application for the Information on the Location shall be submitted for the desired location, for the purpose of obtaining the data on the possibilities and limitations with respect to the construction on the reviewed cadastral lot in line with the valid planning document.

The application for the Information on Location shall be submitted to the competent authority of the local self-government unit. (*105) A copy of the lot(s) plan shall be submitted with the application, which has been previously applied for in the Real Estate Cadastral Service in the territory of the municipality. In parallel with the procurement of a copy of the plan, the recommendation is to also apply for the list of title deeds for the cadastral lot(s) from the Real Estate Cadastral Service, in order to identify the owner(s) of the land.

The information on the location, in addition to the name of the applicant, the number of the cadastral lot, and the place where it is located, shall also contain (*106) the data on: 1) The planning document based on which it is issued; 2) The zone in which it is located; 3) The use of the land; 4) Regulation and building lines; 5) Codes of construction; 6) Requirements for connection to the infrastructure; 7) The need to prepare a detailed urban plan or urban design (*107); 8) The cadastral lot, or whether the cadastral lot fulfills the requirements for the building plot with the instructions on the required procedure for forming the building plot; 9) Engineering and geological conditions; 10) Special requirements for issuing the Location Permit (list of requirements). The information on the location shall enable the person, to whose name it is issued, to gather all the special requirements (requirements for protection of cultural monuments, requirements for preservation of the environment, etc.) and technical requirements (the place and method of service connections of the structure to the infrastructure lines, as well as their capacities) prior to the issuing of the Location Permit.

The information on the location shall be issued within 8 days from the date of filing the application, against remuneration of the actual costs of issuing such information. In case the facility is within the protected environs of an immovable cultural asset of outstanding importance and of cultural assets registered in the Lists of the World Cultural and National Heritage and of structure within protected areas, (*108) in compliance with the decision on protection of cultural assets, as well as of the structures within the boundaries of a national park and of structures within the boundaries of protection of a protected natural asset of outstanding importance, in compliance with the law, or when a power generating facility from renewable energy sources is of a capacity of 10 MW and over, as well as for combined heat-and-power generation, the competent authority is the Ministry of Environment and Spatial Planning, or the Autonomous Province, if the facility is located in its territory.

Energy Permit (*109)

An energy permit is a permit for construction of an energy facility, which is issued by the Ministry of Mining and Energy. It is necessary to point to the fact that the energy permit for a power plant shall be issued provided that the construction of such a facility, by its type and use, is in compliance with the Energy Sector Development Strategy of the Republic of Serbia and with the Program of Implementation of that Strategy.

In order to obtain the energy permit, it is necessary to meet the criteria for construction of power generating facilities stipulated in the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits. (*110) For power plants of a capacity below 1 MW and for heat generating power plants of a capacity below 1 MW, issuing of the energy permit has not been envisaged, which means that, for such facilities, the Location Permit shall be issued, without following the procedure for issuing the energy permit.

The application for the energy permit, subject to the Energy Law, shall contain the data on: 1) The location at which the power plant is to be constructed; 2) The deadline for completion of construction; 3) Type and capacity and energy efficiency of the power plant; 4) The energy commodities, which the energy facility will use; 5) The method of generation and takeover of electricity/heat; 6) The method of protection of the environment in the course of construction and operation; 7) The requirements that are related to the termination of operation; 8) The amount of planned financial resources for construction and the method of providing such resources.

The Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits differentiates between small electricity generating power plants and the electricity generating facilities, which are of rated capacities in excess of 10 MW. As to the facilities generating heat, there is no difference between a small district heating plant and other district heating plants. This Rulebook regulates the Application Form (O-1) for the energy permit specifically for construction of an energy facility for electricity generation of a rated capacity from 1 MW to 10 MW (which is related to small power plants), the Application Form (O-2) for the energy permit for construction of an energy facility for electricity generation of a rated capacity in excess of 10 MW, and the Application Form (O-10) for the energy permit for construction of an energy facility for heat generation of a capacity exceeding 1 MW. This Rulebook does not regulate the case of construction of a facility for both electricity and heat generation, so that, in such a case, when submitting the application for the energy permit, one shall have to submit both applications simultaneously. The following data shall be specified in this Application: 1) General data on the applicant (name, address, state, official registration number of the applicant, tax identification No., legal and organizational form, data on the management, data on registration, name of the contact person); 2) Basic data on the facility (*111) (name of the facility, the location of the land, technical data on the energy facility, share of the energy facility in system services, primary and secondary fuels); 3) The value of the investment (the amount of the planned financial resources and the method of their securing); 4) The financial position of the applicant (relevant statement of a bank that it is willing to support the applicant or the investor in financing the construction of the energy facility and evidence of adequate credit-worthiness of the applicant); 5) The envisaged economic and service life of the facility as well as the method of rehabilitation of the location upon termination of the service life of the facility (removal, disassembly of the facility); 6) Harmonization with the spatial plans and the concept of development of the energy sector (the information on the location or the urban requirements for construction – if such a decision has been adopted or issued, the decision of the competent authority on the use of the land including the established measures of and requirements for protection of the environment – if such a decision has been handed down, and the opinion of the electricity transmission or distribution system operator on the requirements for and possibilities of connection to the systems; 7) Feasibility study for construction of the energy facility; 8) In case the energy facility is to be constructed in stages, which represent technical and technological entireties, the application shall contain the data on the planned stages of construction and the final deadline for completion of the work.

The investor shall submit the following with the application for the energy permit: 1) The information on the location issued within a period of maximum one year; 2) The decision of the competent authority on the use of the land on which the energy facility is going to be constructed including the established measures and requirements for environmental protection (if such a decision has been handed down); 3) The feasibility study for construction of the energy facility for which the energy permit (*112) is applied for, which shall also specifically contain the study of possible impacts on the environment including the proposed measures for environmental protection (*113); 4) Relevant statement of a bank that it is willing to support the applicant or the investor in financing the construction of the energy facility, specifying the name and type of the energy facility to which the statement refers, the location of the energy facility, maximum capacity of the facility, and the amount of the investment in construction of the energy facility; 5) The opinion of the electricity transmission or distribution system operator on requirements for and possibilities of connection of the new facilityto the system. (*114) (*115) (*116)

The energy permit shall be issued within thirty days from the date of submitting the application. The unsatisfied party may lodge an appeal against the decision on the energy permit within seven days from the date of receipt of the decision. The energy permit shall be issued for a period of two years and its validity may be extended at the request of the holder.

Requirements for Connection

Prior to issuing the Location Permit, it is also necessary to obtain the requirements for connection to the electric power grid. If the investor does not obtain the above requirements on his/her own, the authority in charge of issuing of the Location Permit obtains them ex officio prior to the issuing the Location Permit.

Within the procedure for drawing up of the urban development planning document, the Location Permit, or preparation of the main design for construction of the structure, at the request of the investor or of the competent authority, the energy entity to whose system the power producer’s facility is to be connected, shall issue the requirements for connection of the producer’s facility to the electric power grid. The requirements for connection shall define the possibility of connection of the producer’s facility to the electric power grid, or shall define the power and technical requirements needed for preparation of the main design for construction of the facility.

The procedure starts when the application is submitted for the requirements for connection. The following shall be submitted with the application: 1) Evidence of the payment of expenses for issuing of the requested requirements for connection, according to the pricelist; 2) Other documentation, which is specified in the application form, by the energy entity, for the requirements for connection.

The technical report, on the basis of the analysis made, shall establish as to whether there are power and technical conditions for possible future connection of the facility according to the submitted application. Based on the technical report, the energy entity, to whose system the facility of the producer is to be connected, shall issue the decision on the requirements for connection to the investor involved in construction of the facility, or to the competent authority. The requirements for connection shall contain the definition of their validity period. An appeal may not be lodged against the decision on the requirements for connection (the decision on the requirements for connection does not contain the grounds for it or instructions on the legal remedy). The decision on the requirements for connection shall be issued within the deadline prescribed by the law (*117).

Location Permit (*118)

The Law on Planning and Construction prescribes that the Location Permit is the document, which contains all the requirements and data needed for preparation of the technical documentation - the preliminary and the main design, in line with the valid planning document. The Location Permit is also the prerequisite for issuing the Construction Permit. Location permits for power facilities having the capacity equal to or exceeding 10 MW and used for power generation from renewable energy sources, for co-generation power plants, as well as for power plants constructed in the protected environs of outstanding cultural assets, and of cultural assets registered in the Lists of the World Cultural and Natural Heritage and of structures in protected areas in compliance with the decision on protection of cultural assets, as well as of structures within the boundaries of a national park and of structures within the boundaries of protection of a protected outstanding natural asset, are issued by the ministry in charge of construction, or by the competent authority of the Autonomous Province, provided the facility as a whole is to be constructed in the territory of the Autonomous Province. For all other power plants (e.g. of a capacity up to 10 MW), the Location Permit shall be issued by the competent authority of the local self-government unit (city/town, municipality) in the territory of which the facility will be constructed. (*119) (*120)

Procedure for Issuing the Location Permit

The documentation necessary to obtain the Location Permit for construction of a power plant is specified in the Law on Planning and Construction. The following shall be submitted as obligatory exhibits to the Application for the Location Permit: 1) A copy of the lot plan (issued within a period of maximum six months); 2) The certificate of the cadastre of the installations laid in the ground; 3) Evidence of ownership right, or of lease of the construction land (*121).

The application for the Location Permit, apart from the above, shall also contain the data on the structure to be constructed, particularly on the planned layout, type and use of the structure, technical characteristics and the like. (*122)

The Law on Planning and Construction stipulates that the building plot shall be formed prior to submitting the application for the Location Permit. If the authority in charge of issuing of the Location Permit establishes that adequate documentation has not been submitted with the application for the Location Permit, it shall notify the applicant thereof within eight days. In case the planning document does not contain all the requirements and data for preparation of the technical documentation, the competent authority shall obtain them ex officio, at the expense of the investor. The authorities, or organizations authorized to issue such requirements and data shall act further to the request of the competent authority within 30 days. The Location Permit shall be issued within 15 days. This time period shall be reckoned from the date of a duly submitted application, or from the date of obtaining the requirements and data obtained by the competent authority ex officio (unless the investor has obtained such requirements on his/her own).

The Location Permit shall include, in particular (*123): 1) The name and family name of the investor including personal identification number, or business name or name of the investor including the seat and the tax identification number - PIB; 2) The number and square area of the cadastral lot; 3) The data on the existing structures on the lot that need to be removed; 4) The defined access to a public traffic area; 5) The use of the structure; 6) Building lines; 7) Codes of construction; 8) Requirements for connection to roads, public utility, and other infrastructure; 9) Possible and mandatory stages in the project implementation; 10) List of mandatory parts of the main design; 11) The name of the planning document based on which it is issued; 12) The statement that the legally valid Location Permit is the basis for preparation of the preliminary and of the main design if the structure referred to in Article 133 of the Law on Planning and Construction is in question, or for preparation of the main design; 13) The obligation of the designer-in-charge to prepare the design in compliance with the codes of construction and requirements from the Location Permit; 14) The statement that the issued Location Permit will cease to be valid if the investor, within two years as of the date of legal validity of the decision on the Location Permit, fails to submit the application for the Construction Permit.

An appeal may be lodged against the decision on the Location Permit within eight days. The appeal against the decision on the Location Permit of the unit of local self-government shall be decided on by the Ministry of Environment and Spatial Planning, or by the competent authority of the Autonomous Province, or by the competent authority of the City of Belgrade (for building or reconstruction of structures of up to 800 m² of gross floor area), if the structure is located in the territory of the Autonomous Province, or of the City of Belgrade, respectively. (*124)

Forming the Building Plot

A building plot is a part of the construction land, with the access to a public traffic area, which has been constructed or is envisaged for construction by a plan. For construction of power plants, the building plot represents a belt of land of incomplete expropriation of a part of the cadastral lots through which the structure would stretch and of individual lots on which the appurtenant above-ground structures are to be located. In addition to an incomplete or complete expropriation, access easement agreements concluded with the owners of the cadastral lots shall also be recognized as evidence of the resolved property-rights relations for construction of line infrastructure facilities. Power plants may also be constructed on agricultural land, with the previously obtained approval from the ministry in charge of agricultural affairs. (*125) Prior to submitting the application for the Location Permit, the Allotment/Reallotment Plan, i.e. the plan forming the building plot shall be prepared (*126).

The reallotment plan implies the plan forming one or more building plots on a number of cadastral lots, while the allotment plan implies the plan forming a number of building plots on a single cadastral lot. The allotment or reallotment plan shall be prepared by a company, or by another legal entity or entrepreneur, registered in the relevant registry. Preparation of the allotment/reallotment plan shall be managed by the town planner-in-charge, an architect. The specified allotment/reallotment plan must also contain the Design of Geodetic Survey Benchmarking.

The reallotment or allotment plan shall be submitted to the authority in charge of town planning affairs of the unit of local self-government for verification. If the plan is in compliance with the valid planning document, the competent authority shall verify the plan within 10 days and, if not, it shall notify the party that has submitted the plan thereof. An appeal against the above notification may be submitted to the municipal or to the city/town council within 3 days as of the date of its submitting.

Then, the Application for undertaking allotment, or reallotment, shall be submitted to the authority in charge of the affairs of state survey and cadastre (RGA – the Republic Geodetic Authority). The following shall be submitted with the application for undertaking the reallotment/allotment: 1) The evidence of resolved property-rights relations for all the cadastral lots, and 2) The reallotment, or allotment plan verified by the authority in charge of town planning affairs of the unit of local self-government, an integral part of which shall
also be the Design of Geodetic Survey Benchmarking. The authority in charge of the affairs of state survey and cadastre shall hand down the Decision on forming of the cadastral lot(s) further to the above application. An appeal may be lodged against this decision within 15 days as of the date of submitting the decision.

Environmental Impact Assessment

Assessment of the impact on the environment is a very important element in the process of construction of a power plant. Within the procedure for obtaining the energy license, it is necessary to make a study of possible impacts on the environment including proposed measures for protection of the environment. Should the competent authority find it necessary, as an element for issuing of the Construction Permit, it shall be necessary to make the Impact Assessment Study for the power plant.

The Decree on the List of Projects for which the Environmental Impact Assessment Study Is Mandatory (List I) and on the List of Projects for which such Study May Be Requested (List II) stipulates that, for construction of a power plant of a capacity exceeding 50 MW, making of the Environmental Impact Assessment Study (List I of the Decree) is mandatory, and that, for power plants of a capacity from 1-50 MW, the Environmental Impact Assessment Study for that facility (List II of the Decree) may be requested. Making of such Study shall not be required for power plants having capacity below 1 MW.

The Law on Environmental Impact Assessment stipulates that, for a power plant having a capacity from 1-50 MW, in view of the fact that it belongs to the group of facilities for which the Environmental Impact Assessment Study may be requested, the owner of the project for such a facility shall submit to the competent authority an Application for deciding on the need to assess the impact. Competence of the authority in the procedure for establishing the need to make the Impact Assessment Study is the same as in case of establishing the competence for issuing the Construction Permit. This means that, for power plants having or exceeding 10 MW, or for co-generation power plants, the competent authority shall be the Ministry of Environment and Spatial Planning and, if the power plant is located in the territory of the Autonomous Province – the competent authority of the Autonomous Province shall be in charge thereof. Regarding this issue, the power plants of up to 10 MW shall be within the remit of the unit of local self-government (*127).

The application concerning the need to assess the impact shall be submitted in the prescribed form, in compliance with the Law on Environmental Impact Assessment and the Rulebook on Contents of the Application Concerning the Need to Assess the Impact and Contents of the Application for Determining the Scope and Contents of Environmental Impact Assessment Study.

The application concerning the need to assess the impact, based on which the need to assess the impact shall be decided upon, shall include:1) Data on the project leader, 2) Description of the location, 3) Description of the characteristics of the project, 4) Presentation of the main alternatives that have been analyzed, 5) Description of the environmental factors that may be exposed to the impact, 6) Description of major adverse impacts of the project on the environment, 7) Description of the measures envisaged for the purpose of prevention, mitigation, and elimination of major adverse impacts, 8) Other data and information at the request of the competent authority. The following shall also be submitted with the above application: 1) The Information on Location or the verified Urban Design (issued within a period of maximum one year), 2) The conceptual design or the preliminary design, or the excerpt from the preliminary design; 3) Graphical presentation of the micro- and macro-location; 4) Requirements and approvals of other competent authorities and organizations obtained in compliance with a special law; 5) The evidence of payment of the Republic administrative fees and duties; 6) Any other evidence at the request of the competent authority.

Within 10 days, the competent authority shall notify the interested authorities and the public about the submitted application. The interested parties shall submit their respective opinions within 10 days from the date of receipt of the notification. Within an additional period of 10 days, the competent authority shall decide on the application. If it is decided that the impact assessment is required for the reviewed power plant, the same Decision may determine both the scope and contents of the impact assessment study. If it is established that the impact assessment is not required, the competent authority may specify minimum requirements for environmental protection in the Decision. The decision shall be submitted to the project owner, the interested authorities, and to the public within 3 days as of the date of handing down the decision.

The project owner and the interested public my lodge an appeal, and the competent second-instance authority shall hand down the decision within 30 days from the date of receipt of the appeal. If, further to the application related to the impact assessment, the Decision has been obtained in which it was decided that the impact assessment is required and if, in the same Decision, the competent authority has not specified the scope and contents of the impact assessment study, the project owner shall submit the Application for determining the scope and contents of the impact assessment study to the competent authority, in the prescribed form.

The application for determining the scope and contents of the impact assessment study shall include: 1) The data on the project owner, 2) Description of the location, 3) Description of the project, presentation of the main alternatives that have been analyzed, 4) Description of the environmental factors that may be exposed to the impact, 5) Description of major adverse impacts of the project on the environment, 6) Description of the measures envisaged for the purpose of prevention, mitigation, and elimination of major adverse impacts, 7) Non-technical summary of data from 2)-6), 8) Data on possible difficulties encountered by the project owner in collecting the data and documentation, 9) Other data and information at the request of the competent authority. Along with the specified application one shall also submit the Information on the Location or a verified Urban Design (issued within a period of maximum one year), the preliminary design, or the excerpt from the preliminary design, graphical presentation of the macro- and micro-location, requirements and approvals of other competent authorities, evidence of payment of the tax and other evidence at the request of the competent authority.

Within 10 days, the competent authority shall notify the interested public about the submitted application. The interested parties shall submit their respective opinions within 15 days as of the date of receipt of the notification. Within 10 days, the competent authority shall hand down the decision on the scope and contents of the impact assessment study. The decision shall be submitted to the project owner and to the interested public within 3 days. The project owner and the interested public may lodge an appeal, and the competent second-instance authority shall hand down the decision within 30 days from the date of receipt of the appeal.

A more detailed procedure for making the Environmental Impact Assessment Study for a power plant is regulated by the Law on Environmental Impact Assessment and by the bylaws under this Law (*128). The Law on Environmental Impact Assessment stipulates that the concrete environmental impact assessment study for a power plant shall be an integral part of the documentation, which shall be submitted with the application for the Construction Permit or with the report on commencement of the project implementation (construction, execution of the works, change of technology, change of activity, and other activities).

The Impact Assessment Study shall include: 1) The data on the project owner; 2) Description of the location; 3) Description of the project; 4) Presentation of the main alternatives of the project that have been analyzed; 5) Presentation of the state of the environment at the micro- and macro-location; 6) Description of possible major impacts of the project on the environment; 7) Assessment of the impact on the environment in case of an accident; 8) Description of the measures for the purpose of prevention, mitigation, and possible elimination of any major harmful impacts on the environment; 9) The program of monitoring of the impact on the environment; 10) Non-technical short presentation of the so far specified data; 11) Data on technical deficiencies or non-existence of adequate expert knowledge and skills or inability to obtain relevant data.

The obtained requirements and approvals of the other competent authorities and organizations shall also be submitted with the Study. The Study shall also contain the basic data on the persons, who have participated in its making, on the person in charge thereof, date of its making, signature and seal of the person in charge thereof, as well as the seal of the licensed organization, which has made the study, and which is registered for drawing up of this type of documentation in the Business Registers Agency. (*129)

Maximum within one year from the date of receipt of the final decision on the scope and contents of the impact assessment study, the project owner shall submit the Application for the approval on the impact assessment study. The impact assessment study (3 paper copies and 1 copy in electronic form) and the decision of the competent authority from the previous stage of the procedure shall be submitted with the application.

The public authority shall ensure public insight in, the presentation of, and public debate on the study, and it shall notify the interested parties about its time and venue within 7 days. Public debate may be held within minimum 20 days from the date of the notification.

Within 10 days from the date of receipt of the application for the approval, the competent authority shall form the Technical Commission for evaluation of the impact assessment study. Three days after the Technical Commission has been formed, the study shall be submitted to the Commission for evaluation. Upon completion of the public insight in it, the competent authority shall, within three days, submit the Report with the overview of the opinions of the interested parties to the Commission.

At the proposal of the Technical Commission, the competent authority may request from the project owner to make amendments and supplements within a certain time period. The Technical Commission shall submit the report with the evaluation of the impact assessment study and a proposed decision to the competent authority within 30 days from the date of receipt of the documentation from the competent authority.

Within ten days from the date of receipt of the Report from the Technical Commission, the competent authority shall notify the interested parties about the decision on giving the approval on this study or about the rejection of the application for the approval of the impact assessment study, specifically about: 1) The contents of the decision; 2) The main reasons on which the decision is based; 3) The most important measures, which the project owner shall undertake for the purpose of prevention, mitigation, or elimination of harmful impacts. The (discontented) project owner and the interested public may institute an administrative suit against the specified decision.

The Law on Environmental Impact Assessment also regulates the procedure for updating the Environmental Impact Assessment Study due to the lapse of time. It is necessary to point to the fact that the validity of the Decision on Approval of the Impact Assessment Study is two years, within which time period the project owner shall commence the construction of the power plant. Upon expiry of this deadline, the competent authority may hand down the decision on the making of a new Impact Assessment Study or on updating the existing one. This decision shall be handed down on the basis of the application of the project owner. The same decision shall also be handed down in case the project owner must deviate from the documentation on the basis of which the impact assessment study for the power plant has been made.

In the latter case, the application for the approval on the updated Impact Assessment Study shall be submitted prior to submitting the application for the Construction Permit.

The Law on Environmental Protection stipulates that the Ministry of Environment and Spatial Planning shall issue the preliminary consent on the approval for the use of natural resources or assets. This consent shall verify fulfillment of requirements and measures of sustainable use of natural resources, or assets (air, water, land, forests, geological resources, plant and animal life) and environmental protection in the course of and after termination of engaging in the activities. (*130)

Details of Relevant Legislation

(*95) Article 28, paragraph 4, point 5) of the the Law in Mining.

(*96) Article 1 and Article 2, point 22) of the Law on Planning and Construction.

(*97) Subject to Article 7 of the Law on Planning and Construction, for putting up of standard units, equipment, and installations, which are considered to be structures in accordance with this Law, a certified translation into the Serbian language of certificates issued by international certification bodies or certificates of any country of the European Union shall be recognized, if they (certificates) are not contrary to the law and other regulations, standards, technical norms, and quality standards – the Law on Technical Requirements for Products and Conformity Assessment (Official Gazette of the RoS, No. 36/2009), the Decree on the Method of Undertaking Conformity Assessment, Contents of the Conformity Document, as well as Shape, Appearance, and Contents of the Conformity Sign (Official Gazette of the RoS, No. 98/2009), the Decree on the Method of Recognition of Foreign Documents and Conformity Signs (Official Gazette of the RoS, No. 98/2009).

(*98) The Law on Concessions (Official Gazette of the RoS, No. 55/03) in Article 5 specifies the subject matter of a concession.

(*99) According to the provisions of the Law on Concessions, it would be possible for the concession to be granted for every step separately (exploration, exploitation, construction of a facility for power generation, engaging in the activity), which probably would not be serving the purpose.

(*100) The the Law in Mining does not make any the quantitative differentiation with respect to the quantity of exploited geothermal energy. For that reason any exploitation of geothermal energy, even the minimum one for the requirements of a household, should meet the requirements prescribed by this Law.

(*101) Article 117, points 18) and 24) of the Law on Waters.

(*102) When writing this text, the authors used the sources of law that were effective on August 27, 2010.

(*103) The Law on General Administrative Procedure (Official Herald of RoS, Nos. 33/97 and 31/01).

(*104) Article 208 of the Law on General Administrative Procedure stipulates that the deadline for issuing of a decision by the competent administrative authority shall be one month, if it is not necessary to follow a special examining procedure, or maximum two months as of the date of a duly submitted application. General deadline for an appeal shall be fifteen days as of the date of receipt of the first-instance decision, unless the law stipulates otherwise. Article 236 of the Law on General Administrative Procedure stipulates that, in case the administrative authority fails to issue the administrative decision for which the application has been submitted, upon the expiry of the deadline for handing down the decision, the applicant shall be entitled to lodge an appeal because the first-instance application has not been decided on.

(*105) Exceptionally, if issuing of the information on the location for a power plant of a capacity in excess of 10 MW is in question, the Ministry of Environment and Spatial Planning shall be competent or, if the facility is going to be constructed in the territory of the Autonomous Province – the competent authority of the Autonomous Province.

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

(*107) An urban design shall be prepared for the formed building plot on the certified cadastral - spatial plan. An urban design shall be prepared when that is envisaged in the urban development plan, the spatial plan of the unit of local self-government, or in the spatial plan of an area of special use and it shall contain: 1) The requirements for construction on the building plot including all the special requirements, 2) Conceptual designs, 3) The description, technical description, and explanation of the solution from the urban design, etc. The urban design may be prepared by a legal entity or by an entrepreneur registered in the registry for preparation of technical documentation, and the preparation of the design shall be managed by the town planner-in-charge, an architect. The competent authority of the unit of local self-government shall organize a public presentation within ??, and then the urban design shall be submitted to the Planning Commission, which shall, within 30 days, check whether the design has been harmonized with the spatial document and the Law on Planning and Construction. The competent authority of the unit of local self-government shall issue the certificate that the urban design has been prepared in compliance with the urban development plan, the spatial plan of the unit of local self-government, or with the spatial plan of an area of special use and the Law on Planning and Construction.

(*108) Article 133, point 9) of the Law on Planning and Construction stipulates that the structures within the competence of the Ministry of Environment and Spatial Planning include the structures within the boundaries of a national park and structures within the boundaries of protection of a protected natural asset of outstanding importance. Article 30 and Article 34 of the Law on Nature Protection defines the national park and nature park and also determines the zones of protection within which certain regimes of protection are implemented (it is also possible to prohibit construction of certain types of structures).

(*109) In addition to the energy license, the Energy Law stipulates the procedure for initiation of the public invitation for tenders. This procedure shall be initiated in case there is no application for the energy permit for construction of a future facility and the planned time schedule of construction of energy facilities cannot be ensured, and there is a need to ensure safety in supply of power. The Government shall decide on the initiation of the public invitation for tenders. The public invitation for tenders shall be announced by the Ministry of Mining and Energy, or by the unit of local self-government, according to the procedure regulating concessions.

(*110) The criteria for construction of power generating facilities are as follows: 1) Fulfillment of the requirements for safe and unobstructed functioning of the power system; 2) Fulfillment of the requirements for designation of the location and land use; 3) The requirements for environmental protection; 4) Requirements with respect to the measures for protection of the health of people and safety of people and property; 5) Requirements related to energy efficiency; 6) Requirements for the use of primary sources of energy.

(*111) Here, there is a difference in the scope of data that should be submitted concerning the technical data on the facility and the share of the energy facility in system services, depending on whether a small power plant, an electricity generating power plant of a capacity in excess of 10 MW, or a district heating plant is in question.

(*112) The feasibility study for construction of the energy facility, for which the energy permit is applied for, shall contain in particular: 1) Objectives of the investment including the basic data on the investor; 2) The analysis of current state - spatial location of the facility, its function, and importance in view of the type and capacity of the energy facility; 3) Market analysis – the method of generation, procurement, takeover, and sale of electricity/heat and energy commodities; 4) Technical description of the plant and technological processes – operating modes and the method of exploitation of the plant; 5) The analysis of energy efficiency of the structures including the data on electricity/heat and energy commodities to be used; 6) The planned deadline for construction of the energy facility and service life of the energy facility; 7) The analysis of the procurement market; 8) The analysis and assessment of the selection of the location, analysis of possible impacts on the environment including the proposed measures of environmental protection, relationship with respect to natural, cultural, and historic assets, impact on climate, surface and ground waters, flora, fauna, and soil; 9) Financial analysis of the assessment including calculation of the required investments and sources of financing and obligations towards the sources; 10) Sensitivity analysis and analysis of the risk of the investment; 11) Analysis of the sources of financing and financial obligations (own funds, domestic sources, foreign and international sources, guarantees, and liabilities); 12) The analysis of the organizational and staff capacities (organization, staff potential); 13) Proposed measures concerning the requirements for and method of regulation of relationships in case of a temporary or permanent termination of operation, or exploitation of the energy facility; 14) Proposed measures to be undertaken for the purpose of protection of the energy facility and the proposed measures, which will define all the required parameters for possible restart of operation of the energy facility at a later stage. By its contents, this feasibility study is the closest to the Preliminary Feasibility Study including the general design.

(*113) The environmental impact assessment is described in more detail in Chapter 3.2.5 hereof.

(*114) The Energy Law, the Decree on Conditions of Electricity Delivery, the Distribution Grid Code, and the Transmission Grid Code specify the procedure for connection of the producers’ facilities to the electricity grid. Neither the Decree, nor the Codes, or indeed any other regulations stipulate the procedure for issuing the opinion of the energy entity in charge of transmission, or of distribution of electricity within the procedure for issuing the energy license. In view of the above fact, this procedure does not have a specific form, but the economic operator, whose facility should be connected to the electricity grid, when preparing the application for such an opinion, should submit as many documents as possible, which are necessary for connection of the facility to the electricity grid or, if he/she does not have such documents, then at least as many data as possible, which the specified documents should contain. The application for connection to the electricity grid has been dealt with in Chapter 7 hereof.

(*115) Drafting of the Rulebook amending the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits is under way, according to which some of the documents, which are required with the application for the energy permit, are amended. According to that draft, the following shall be submitted with the Application for the energy permit: 1) The Information on the Location or the location permit issued within a period of maximum one year (if issued), 2) The Preliminary Feasibility Study, 3) Relevant statement of a bank that is willing to support the applicant or the investor in financing the construction of the energy facility, 4) The opinion of the electricity transmission or distribution system operator on the requirements for and
possibilities of connection of the new facility to the system.

(*116) Prior to the adoption of the new 2009 Law on Planning and Construction, there had been a discrepancy between the provisions of the Rulebook on Criteria for Issuing Energy Permits, Contents of the Application, and Procedure for Issuing Energy Permits and the provisions of the Law on Planning and Construction with respect to the priority in issuing the Except from urban development plan and issuing of the decision on urban development requirements and the energy permit. This discrepancy was avoided by deletion of the terms: the decision on urban development requirements and the excerpt from the urban development plan. Instead of them, the terms: the location permit and the
information on the location were introduced.

(*117) The deadline for issuing the requirements for connection is 30 days; more about this can be found in the footnote No. 106 hereof.

(*118) Related to the obtaining of the documentation necessary for issuing the location permit for a power plant, there are cases where certain documents (on the right to use the land, technical documentation,...) are to be submitted in a number of different procedures for construction of a power plant.

(*119) Articles 133 and 134 of the Law on Planning and Construction.

(*120) A power plant within the boundaries of a national park or within the boundaries of protection of a protected outstanding natural asset is within the competence of the Ministry of Environment and Spatial Planning.

(*121) This evidence for issuing the location permit is completely the same as for issuing the Construction Permit. As evidence of the ownership right, or of lease of the construction land for construction or for carrying out of the work on the construction land or on the facility, which is owned by a number of persons – a certified consent of such persons is also to be submitted.

(*122) In practice, for obtaining the location permit, the general design or the conceptual design shall be prepared and submitted, which shall contain: technical description of the location, architecture, the structure and foundation of the structure, the method of heating and cooling the structure, description of the technical solution for securing excavation of the foundation pit, the terrain and the adjacent structures, etc.

(*123) The Rulebook on Contents of Information on Location and on Contents of Location Permit.

(*124) The Law on Planning and Construction does not stipulate any legal remedy in case the location permit is issued by the Ministry of Environment and Spatial Planning or by the competent authority of the Autonomous Province. An administrative suit may be institute against the decision issued by the Ministry of Environment and Spatial Planning, or by the competent authority of the Autonomous Province, within 30 days from the date of receipt of the decision.

(*125) In case of construction of a power plant, in view of the fact that the preliminary work on exploration and exploitation has been involved, and that the project owner should already have been the owner, or should have the contract with the owner for the use of the lot, it may happen that the issue of the formation of the building plot has already been resolved in the previous stage of exploration/exploitation of geothermal energy.

(*126) Article 69, paragraph 1 of the Law on Planning and Construction prescribes that, for construction of power plants (in the case of a power plant used for electricity generation), a building plot may formed that is of a smaller surface area than the area stipulated in the planning document for that particular zone, provided there is an access to the facility, or to equipment, for the purpose of maintenance and elimination of defects or accidents. The Expropriation Law prescribes that a public interest may, inter alia, be established on the basis of an application of a public enterprise. And yet, although the Energy Law stipulates that a power plant is engaged in the activity of public interest, it may happen that the facility in question is private property that it shall not be connected to the grid/network. In such a case, this begs the question of the existence of a public interest and expropriation of a private property on account of construction of a power plant – of a self-producer. If one agrees that a power plant – the self-producer - is not a facility of public interest, in such a case, there is no need for land expropriation; instead, issuing of the location permit should be allowed on the basis of ownership rights over the land, based on the existing contracts signed with the owners of cadastral lots. Here, one could raise the question concerning the justifiability of establishing the activity of electricity generation as an activity of public interest, and thereby of construction of power plants (which will be able to acquire the status of privileged power producers and to sell electricity under the feed-in tariff scheme) as facilities of public interest and the possibility of expropriation of land for such facilities. The Expropriation Law prescribes that a public interest may, inter alia, be established on the basis of an application submitted by a public enterprise. A public enterprise may construct facilities that are completely dedicated to export and which, as such, are not engaged in an activity of public interest in terms of public interest of the Republic of Serbia. Also, a public enterprise may launch a project and carry out expropriation of the land, and at a later stage, it may become its own share in a joint venture project entered into with a private owner in which case the electricity generated in such a facility shall not be used to meet the public interest of the Republic of Serbia, but shall be exported under a commercial agreement subject to the said project.

(*127) The authority of the unit of local self-government in charge of environmental protection.

(*128) The bylaws of the Law on Environmental Impact Assessment applicable to this issue are the Rulebook on Contents of the Application Concerning the Need for Impact Assessment and Contents of the Application for Determination of Scope and Contents of Environmental Impact Assessment Study and the Rulebook on Contents of Environmental Impact Assessment Study.

(*129) More detailed prescribed contents of the study are contained in the Rulebook on Contents of Environmental Impact Assessment Study.

(*130) Article 15 of the Law on Environmental Protection.

Note: This text is taken from the document-guide for investors "Construction of Plants and Heat/Electricity Generation from Hydrogeothermal Resources in the Republic of Serbia", of which authors are Dr. Branislava Lepotic Kovacevic, PhD Law, Stanislan Milosavljevic, BSc M. Eng, 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.

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