Specifities in contruction of electro-energetic facilities

The construction of facilities for the production, transformation, distribution and transmission of electricity, i.e. electro-energetic facilities in the Republic of Serbia is an area regulated by a wide range of regulations from different areas. As most important regulation in the field of planning and construction indispensable is the Law on Planning and Construction and by-laws adopted in accordance with it. Regulations in the field of energy include the Energy Law, and recently adopted the Law on the Use of Renewable Energy Sources, while the area of ​​environmental protection related to the construction of electro-energetic facilities is mainly regulated by the Law on Environmental Impact Assessment and by-laws adopted on the basis of this law.

Although the construction of electro-energetic facilities involves standard construction phases (acquiring location conditions, preparation of technical documentation, building permits, notice of commencement of works, etc.), there are also certain specificities for the realization of such projects.

  1. Energy permit

The investor must obtain an energy permit before submitting an application for the building permit, all according to the conditions stipulated by the Law on Energy and which conditions are more closely regulated by the Rulebook on Energy Permits.

According to the Energy Law, it is stipulated that the energy permit is submitted with the application for the issuance of a building permit, and the same must be obtained for facilities for the production of electricity with a power of 1 MW and more, facilities for the production of electricity with a power of up to 1 MW that use water as the primary resource, facilities for the combined production of electricity and thermal energy in thermal power plants, etc., whereby an energy permit is not required for the construction of energy facilities that are built in accordance with the law governing public-private partnerships and concessions.

  • Environmental impact assessment

Environmental impact assessment is mandatory for plants for the production of electricity, water steam, hot water, technological steam or heated gases, using all types of fuel, as well as plants for the operation of working machines (thermal power plants, heating plants, gas turbines, plants with engines internal combustion and other combustion devices including steam boilers) with a power of 50 MW or more.

The environmental impact assessment can be requested for the aforementioned plants with a power of 1 to 50 MW, for hydropower plants with a power of more than 2 MW, wind farms with a total power of more than 10 MW, while the environmental impact assessment is not required for plants with a less power than the above.

  • Building permit and appropriate right on land

As one of the most significant specificities in the construction of electro-energetic facilities is reflected in the condition concerning the appropriate right on the land.

In this respect, for the purpose of construction of an electro-energetic facility, the appropriate rights on the land are not only the right of ownership and the right of lease on construction land in public ownership, but it can also be the right acquired on the basis of:

  • contract establishing the right of servitude;
  • contract on lease of land in private ownership concluded with the owner of the land, in accordance with special regulations;
  • contract on establishment of the right of servitude concluded with the owner, i.e. the user of the land who is the holder of public authorities, for a period determined by the owner, i.e. user of land;
  • decree on establishment of the right of servitude by expropriation on that land for that purpose, final in the administrative proceedings;
  • final decree of a non-contentious court on establishment of right of servitude on that land for that purpose.

The Law on Planning and Construction leaves the opportunity for the investor to submit a list of cadastral parcels with the attached consents of the owners or land users as evidence of regulated ownership and legal relations, i.e., the investor’s statement that he will resolve the ownership and legal relations on real estate before issuing an occupancy permit, and also for forming a construction parcel in a way where it deviates from the surface or position provided for in the planning document for that zone, provided that there is access to that object.

Additionally, what is characteristic for the construction of electro-energetic facilities is that, unlike other types of facilities, they may be built on the agricultural land, regardless of the cadastral class of the agricultural land, as well as on the forest land, in both cases without the need for providing consent of the ministry competent for agriculture.

  • License to perform energy activities

The Energy Law stipulates that in the case of energy facilities with a capacity of 1 MW or more, a license for performing energy activities must be obtained. Although the issuance of a License is not mandatory for the production of electricity in facilities with a total power of up to 1 MW, it will have to be obtained if the same energy entity produces electricity in two or more energy facilities whose total approved power exceeds 1 MW.

The license is non-transferable, and it issued for each energy activity separately for a period of 10 years, while for the production of electricity, combined production of electricity and thermal energy, and production of thermal energy, it is issued for a period of 30 years, with possibility of extension.

Procedure for issuing the license is carried out after the construction of the facility, i.e. when the usage permit has been issued, when it is established that the facility and other devices and installations meet the requirements prescribed by the technical regulations, that the applicant meets the requirements regarding the engagement of professional staff and other prescribed terms have been met.

FOR MORE INFO CONTACT:

Dušan Vukadin

Attorney-at-law | Senior Counsel

Uroš Radovanović

Attorney-at-Law
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