Short rotation plantations (SRPs)

The development of short rotation plantations (SRPs) for sustainable production of perennial fast-growing energy crops is a relatively new sector offering considerable expansion potential for producers, consumers, local communities, and the environment. Thus, European countries have recognized this sustainable form of biomass production, which preserves mature forests and creates new value chains, as part of its green agenda, and have supported it by the relevant national and EU energy policy objectives.

Energy crops can be produced at low prices in Serbia—and especially in the Autonomous Province of Vojvodina, the agricultural heartland,
due to favorable conditions, such as water resources, available labor, infrastructure, abandoned and degraded land, and access to transport (roads, rail, canals, rivers), including along the Danube River.

SRPs can be optimally harvested starting from year 3 and, commercial payback is possible from 5 years, and through 20+ years, even without carbon credits or ancillary income from related bioeconomy innovation opportunities (or power sales from co-located sustainable energy farms (SEFs)). The necessary investment can have significant positive returns over a 20-25-year SRP life cycle. In fact, the long term off-take contract price for forest wood biomass at EUR 50/ton, which is rare to secure for even 5 years in Serbia’s current very short-term focused forest wood market, would make an SRP cultivation, as a sustainable alternative, very profitable as well. Supply from SRPs would support creation of a stable (certified) wood biomass market, with predictable supply for long term off-take and support further conversion of coal-fired and fuel oil-fired heating plants to cleaner biomass. Heat and power from the SRPs and SEFs would improve local energy access and energy security, and, since they are based on lower or no carbon fuel sources, reduce greenhouse gas emissions and air pollution for better health.

SRPs and SEFs on abandoned and/or degraded agricultural, landfill, or coal mining lands would, over time and with scale, facilitate employment of thousands of rural people seeking supplemental or full income—leveraging, for some, their knowledge of farming and, for others, of traditional sustainable practices, while also introducing new high technology and other skills. A (Phase 2) capacity building mechanism included to support scaled up implementation among farmer associations and/or other local groups, including future displaced coal workers, would ensure gender-balanced opportunities and inclusion of vulnerable groups as well as youth employment.