GazpromNeft NIS company entering RES projects in Serbia, wind and chp in the pipeline

, News Serbia Energy

Serbia’s NIS might participate in two projects to build combined heat and power plants (CHPP) in Serbia and is considering taking part in wind power generation, the company’s chief Kirill Kravchenko told the medias.

NIS has confirmed its strategy for participation in electricity generation. In particular, it wants to help construct a 170-MW CHPP in Pancevo from the ground up, as well as to take part in reconstructing and modernizing a 220-MW CHPP in Novi Sad. The company is poised to make a decision on the first CHPP project in the first quarter of next year, once the feasibility study is ready. NIS is considering buying into no more than 50% of both projects’ capital, Kravchenko said.

In addition, NIS is evaluating the possibility of participating in alternative energy, particularly of joining a wind power generation project. Its board of directors will look into the matter in November.

Since Serbia currently lacks wind power generation, NIS could become the first player on the market, Kravchenko said. Wind power generation could be a separate business division, as it is a necessary measure on the backdrop of the European Union’s policy envisaging bringing the share of alternative energy to 20% of all power generation by 2020.

The wind power generation project will offer return on investment and looks no worse than the downstream business from the perspective of growth in prices for carbon dioxide quotas, Kravchenko said.

NIS is one of the largest vertically integrated oil companies in Central Europe. It produces some 1 million tonnes of oil a year and owns oil refineries in Pancevo and Novi Sad with a combined capacity of 7.3 million tonnes a year. NIS also owns a major chain of filling stations.

Source Serbia Energy Magazine