Republika Srpska: Investments in energy reach five billion Euros

24. December 2012. / SEE Energy News

Projects worth three billion Euros are currently being implemented in the energy sector in Srpska, and it is estimated that their value can reach up to five billion Euros, said the president of Republic Srpska, Milorad Dodik.At the conference “State and prospects of the energy sector in RS” in Teslic, organized by the Association of RS SWOT, he pointed out that the RS is currently in various stages of implementation of several energy projects, including power plants in Stanari and Ugljevik and project Upper Drina and others.

One of the most important energy projects is the construction of the pipeline “South Stream” through RS and Dodik announced that in February a delegation of Russian “Gazprom” should come to RS, when a joint venture of the Government of the Republic Srpska and this Russian company will be promoted.

According to him, Gazprom Bank will finance the construction of the part of the “South Stream” running through the RS, which means that the implementation of this investment is certain.

Dodik said that in addition to the plan of building a secondary grid over RS, gasification of towns and villages, it is important that a good part of the economy will move to the use of this energy source, and it is very possible that a branch of the pipeline would go towards the Federation, and probably to Croatia, which was not involved in this major European project together with Russian partner.

Dodik said that he had received information that the China Development Bank paid the first installment for the construction of the power plant in Stanari, so that work on its construction should begin as soon as weather conditions permit.

Pointing out that “Electric Power Industry of RS” is stabilized and that, unlike previous years, it consistently records positive results, Dodik said that the decision not to start the privatization of the energy sector proved to be the right one.

– Compared to Croatia, our energy is cheaper by more than 45 percent, which strengthens the competitive advantage and ability of our economy. We are aware of our potential in this sector and we want to make the best plans and the best possible movement – said Dodik.

He stressed that the authorities of Srpska are committed to engage more investors in order to utilize sources that will increase energy efficiency and the stability of Srpska and improve domestic potentials in the exchange with the environment.

Dodik said that the production of energy should contribute to covering the deficit in foreign trade and it influences significantly the gross domestic product of RS.

Minister of Industry, Energy and Mining of RS, Zeljko Kovacevic said that Srpska has huge hydro-power potential, and that construction of hydro power plants and thermal power plants creates a good moment to intensify the economic development.

– Funds have been provided for TPP in Stanari and its intensive development will begin in the spring. TPP “Ugljevik 3” is progressing in great dynamics, and so are the hydro power plants on Drina – said Kovacevic. He said that HPP “Dabar” also records positive dynamics.

Strategy

President of the Association of Economists SWOT Goran Racic said that the Energy Strategy of Srpska by 2030 was based on the best experiences and practice in developed countries, and as such it is a good foundation for the preservation and development of the domestic energy sector.

– Our goal is to make RS the country which would focus its energy resources towards exports and which will reduce the negative trade deficit in such a way – said Racic.

Source Serbia Energy Magazine

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