Bosnia and Herzegovina: Comsar Energy asks for TPP Ugljevik 3 capacity increase

26. February 2020. / SEE Energy News

Russian company Comsar Energy asks the Government of the Republic of Srpska (RS) to increase the installed capacity of the future thermal power plant Ugljevik 3 from 600 to 700 MW and to approve the new environmental impact study for the purpose of obtaining the environmental permit.

However, the request to increase installed capacity of the plant is in contradiction with the RS Energy Development Strategy, as it states that TPP Ugljevik 3 should have power output of 600 MW, as well as with the policies of the Energy Community adopted by the RS and related to the production of energy from renewable sources.
Despite all this, RS Government allowed Comsar Energy to proceed with the project implementation. In late 2019, the Ministry of Spatial Planning, Construction and Environment issued a decision allowing Comsar Energy to develop environmental impact study for the construction of two units, with 350 MW each.
Last year, media reported that Russian company is prepared to withdraw from all energy projects in the RS (TPP Ugljevik 3 and HPP Mrsovo), adding that state-owned power utility ERS is interested in the acquisition of these projects.
In 2018, Russian company asked RS Government to extend the concession granted for the construction of TPP Ugljevik 3 for an additional 15 year or the company will give up the investment. The request includes the extension of the concession period from 30 to 45 years, because the current concession period of 30 years is deemed unprofitable due to lower electricity prices. At the same time, Comsar Energy requested to reduce the power output of the future plant from 600 to 350 MW.
In March 2011, Government of RS has approved a letter of intent submitted by Comsar Energy Limited regarding construction of second unit in TPP Ugljevik. The investor was selected based on unsolicited bid, without publishing public invitation. TPP Ugljevik 3 will have two 300 MW units and overall cost of the project is estimated at 750 million euros. The joint venture agreement for construction of TPP Ugljevik 3 was signed in July 2011 by the RS Government and Comsar Energy. Comsar Energy is obliged to invest 90 % of the funds, while the coalmine and TPP (RiTE) Ugljevik should invest 10 % of the necessary funds. The government will hold 10 % stake in the joint venture company, by investing the land and existing infrastructure at the site of TPP Ugljevik, while CE will own 90 % stake. TPP Ugljevik 3 would export its entire output to foreign markets and it will not be competitor to local power utility ERS. The construction of the plant has not started yet.

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