Serbia: EBRD will not finance new TPP Kolubara B, Edison without credit line

16. September 2013. / News Serbia Energy

Center for Ecology and Sustainable Development said that the European Bank for Reconstruction and Development (EBRD) is no longer interested in financing Kolubara B thermal plant. The EBRD has confirmed that it is not interested in funding Kolubara B thermal power plant of the planned 750 MW, expected to be built near the village Kalenič, on the edge of Tamnava West coal mines in the Kolubara mining basin. is promoting by Project Ministry of Energy and Environmental Protection Serbia and EPS, and as a strategic partner it was talked in the public about the Italian Edison”, stated in the announcement.

“EBRD does not consider the project anymore, because over two years it did not progress with its development in EBRD projects cycle”, said in a statement.

It was stated also that customers, EPS and Edison, have to prove that the project is consistent with the strategy of EBRD energy and with its new much stricter standards, “which will greatly complicate EBRD’s participation in this project.”

CEKOR said he welcomed the decision of EBRD because CEKOR is committed to eradicate polluting technologies, such as the use of lignite and coal in electricity generation, and pointed out that Serbia will not be able to meet its obligations for EU if it does not reduce emissions from electricity production to 80 up to 95 per cent compared to 1990.

Ministry: Doubtful project profitability

Deputy Minister of Energy, Development and Environment Dejan Trifunovic said that the Ministry has put a question mark on the profitability and sustainability of the project Kolubara B, primarily because of the price of electricity that will be produced at the facility and environmental risks.

He told Tanjug that the Ministry of Energy has no official information that EBRD withdrew from financing the project, but that this information is not surprising for them and added that the task of the Ministry is to create a strategy and not to enter into commercial agreements.

“Kolubara B Project should be viewed in the broader context of energy development in the future. We did a new draft of energy development strategy, where we conceived the sustainable development of the energy sector in the next 25 to 30 years. We have satisfied European standards, bearing in mind which capacities we need, and that we will have a liberalized market in 2015”, Trifunovic said.

Consequently, he added, there is a list of priority projects, including the Kolubara B, but so that the project has its own alternative.

“The project must be viewed in a broader context, in the context of the resources that we have. Serbia will not give up fossil fuels, but it will make a balance between fossil fuel, hydropower potential and renewable energy,” he said.

He added that the price of megawatt hours in the current project was inadequate, and also the fact that the project has been significantly delayed.

Trifunovic said that the Kolubara B was planned the 80s , but 90s in the works stopped. The concept was restored in 2007, but after that nothing significant has been done.

“The Serbian Energy is good that we have a sufficient number of projects in the field of fossil fuels, hydropower potential and renewable energy projects, which will compensate for the project, if it is not implemented,” said Trifunovic.

Source; Serbia Energy

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