SEE exclusive report: All the failed projects of RWE in the region13. January 2015. / SEE Energy News
Strategic partnership and foreign investments in the area of energy for developing countries are of great importance.The foreign power companies such as Germany’s RWE for years back show the interest for investments in this area.In the last decade, the German power giant continued expanding its positions in the central and south-eastern Europe. Discussions were held on many energy projects.However, most other planned projects remained only in the planning stage, or they are completely dropped out.
RWE is one of the five major power companies in the world, active in the sectors of production and transmission, as well as sale and trade of electricity and gas.The company has about 66,000 employees.In 2013, RWE earned revenues in the amount of 54 billion euros.The main company market is Europe.
RWE participated , as far back as 1996, in co-operation with Croatia Electric Power Industry (HEP) in the construction of the TPP “Plomin 2”. Since 2004, RWE has been a strategic partner in Zagreb wastewater management as well.In the past few years, the realization of another project in this country has been speculated on, and that is the TPP “Plomin C”.However, the German RWE has withdrawn from this project and will not participate in the strategic partnership with Croatia Electric Power Industry in terms of designing, construction and management of the new thermal power plant unit.As possible reasons therefor, some other projects were mentioned which RWE had in mind, and one of them is the construction of the TPP Nikola Tesla B3″ in Serbia, but no co-operation in the realization of this project was ever concluded.
The German power giant has planned also the construction of wind farm in Romania.However, in 2011, the company has abandoned the project.Allegedly, RWE has failed to get the necessary permits for the construction of the mentioned wind farm.
The company data interested for business in Albania as well.
In the course of 2009, the data battle fought between RWE and the Italian ENEL for the construction of a thermal power plant “Porto Romano”.The Germans have given up from this investment.
In 2009 and 2012the Republic of Serbia has signed identical Memos on co-operation with the power giant, but none brought realization of the planned projects.
In August 2011, EPS and RWE have established a joint venture “Moravske hidroelektrane (hydropower plants)”.It is envisaged that this enterprise is engaged in planning, designing and building five hydropower plants on the Velika Morava River, having total capacity of 150 MW and the investment worth around $350 million euros.The hydro power plants are scheduled to be built by 2018.The subject of the signed Memorandum was also the construction of pumped storage HPPs “Djerdap 3”.
In addition to Moravian hydro potential, it is planned to use also the hydro potential of the Drina river.According to technical and investment documentation that was prepared during 2008, the investment value for four hydropower plants in the Upper Drina River is estimated at 435 million euros.In co-operation with Electric Power Industry of the republic of Srpska, PE Electric Power Industry of Serbia has signed a memorandum of co-operation with the German company RWE which includes the realization of this project.Despite agreed co-operation, the contract was terminated last year, even though the start of construction of hydropower plant was planned for 2013.So that both the republic of Srpska and Serbia were left without hydropower plants at the Drina River.Besides hydropower plant, the construction of TPP “Nikola Tesla 3” was planned, but RWE has withdrawn from this project too.
It is difficult to give an answer to the question why all of these projects were dropped out, which would have been of great importance for the countries in the region and for their power stability.There are no official explanations for the co-operations’ failure. Reasons are probably different for each project, but it is still about the same power company – German RWE.Are the countries in the region really so much adverse and uncertain ground for foreign investments?Or maybe the potential investor was not the best possible solution for the above-mentioned projects?
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