Serbia: Ambitous energy investment plan, JV and PPP with foreign partners in new TPP and HPP, the report, News Serbia Energy
Electric Power Industry starts with the construction of new generating capacities and opening and expanding mines. Jobs: third block of TPP “Kostolac”, “Djerdap 3”, modernization of “Drmno”, transmission network…
Record in the production of coal and electricity, as well as export of kilowatts last year, Serbia may hold, and break only by investing in energy facilities – By building new production capacities and establishing new and expanding existing mines. “Electric Power Industry of Serbia” plans to allocate one hundred billion dinars or a billion euros in investments this year and it is projected to have investments worth more than three billion euros in cooperation with foreign partners – the Chinese, the Russians, Canadians, Czechs. Many investments are beginning this year.
No time to wait for these investments because the investment cycle in the energy sector is long, and the construction of new generating capacity is very complex project that requires years.
Summing up the results of last year, Aleksandar Obradovic, Acting Director General of “Electric Power Industry of Serbia”, said that despite the debt which amounted to more than 10 billion dinars at the beginning of 2013, EPS managed to improve financial results by about 200 MEUR compared to the planned losses.
EPS exported electricity worth about 130 million euros in 2013, and record production was achieved in hydro and thermal power sector, as well as in the production of coal – Obradovic said. – Investment Plan 2014 provides that the investments preferably focus on maintaining the achieved level of production, but also the continuation of projects that should help an increase and safety of electricity, safety of supply for consumers, but also improvement of environmental protection. To do this, it is important to continue the revitalization of hydro and thermal power plants, by development of planning documents for opening new capacities. We must continue with the modernization and automation of distribution network. Allocation of one hundred billion dinars is planned for investments this year.
Among the priority investments of “Electric Power Industry of Serbia” this year is also Kostolac. Contract worth 715.6 million dollars was signed with the Chinese company CMEC, which envisages the construction of of the third block of thermal power plant “Kostolac”, of 350 MW, and the expansion of the mine “Drmno” from nine to 12 million tons of coal. The new block should become operational by the end of 2019.
– Two important jobs are ahead of us this year – says Dragan Jovanovic, director of “Kostolac”. – The first is the revitalization of existing units. Last year, “Kostolac” had a record production ever. We produced 6.47 billion kilowatt hours. The plan is to increase production to about 6.7 to eight billion kilowatt hours in 2015.
According to Jovanovic, “Kostolac” is applied at the Chinese Exim Bank for the construction of a new block, and an agreement on this loan is expected in late February.
– I expect the works to start late this year or early next year, and the deadline for completion is 58 months – says Jovanovic. – This is a block that will allow Serbia to gain additional 2.5 billion kilowatt hours. “Kostolac” was shortlisted quota allocated by the China for South East Europe.
We will build “Kostolac” in cooperation with the Chinese, and the Russians will be our partners in Djerdap. With “Silovie machine” of the Russian Federation, the amendment to contracts for the rehabilitation of four units of this HPP was completed in November last year. All six units will be revitalized until 2018, and in addition to the existing 1,058 megawatts, power system of Serbia will receive an additional 90 megawatts of electricity. This investment is 216.5 million dollars.
– The project of reversible HPP “Djerdap 3”, with capacity three times 600 MW, is one of the projects of regional significance, and for its implementation consent of the Romanian side is necessary. For this project, a Memorandum of Understanding is signed with the German REV and more Chinese companies have shown interest – they state in the Ministry of Energy, Development and Environment Protection. – For each of the three phases, an investment in the amount of about 400 MEUR is anticipated. For TPP-HP “Novi Sad”, the final activities for signing of the Protocol are ongoing, which precedes the conclusion of the Agreement between the four partners: EPS, the city of Novi Sad, “Energy Novi Sad” and the foreign consortium.
EPS plans to invest 18,577 billion dinars ONLY for repairs and maintenance of the production capacities of power plants and coal mines this year. Equipment for the production of coal is heterogeneous on several grounds. Age of machines is from a few years to four decades, they come from different manufacturers with different technologies applied in manufacturing.
“Bistrica” and “Stavalj”
Among the key investments is the construction of HPP “Bistrica”, 680 MW, which is planned under an agreement with Canada. The Government of Serbia adopted a platform for negotiations which should start as early as this month. The deadline for completion is 2020, and the investment is worth 600 MEUR. For the power plant project “Stavalj” at Sjenica, the capacity of two times 150 MW, there are two studies, the study of the Czech Republic in 2004 and of the EU Delegation from 2009. For this project, a new study has been made and the concept of a business model with the interested Czech company “Alta”. The investment, in addition to the construction of thermal power plant, includes expanding the capacity of the mine Stavalj and transmission system. Its total value is estimated at 715 million, and a deal should be completed by 2021.
Source; Serbia Energy