Serbia: EPS environmental investment project cycle, interview with Head of EPS environment directorate Nenad Jerinic

Published on 16. December 2013., News Serbia Energy

The largest projects are related to the desulphurization and desulphurization project in the TENT A is actual. FGD tender is expected in jan 2014 and already attracted referenced companies from Europe and Japan, prequalification process is completed for 250MEUR project. Hitachi is managining de NoX project. Electrostatic precipitators tenders are underway and new are being prepared.The signing the Energy Community Treaty and the obligations arising from the EU joining process , responsibilities in the area of environmental protection have been clearly defined

By signing the Energy Community Treaty and the adoption of appropriate directives at EU level, “Serbia Power Utility Company” has taken over a series of appointments and tasks in the field of environmental protection. EPS has absolutely clearly defined strategy and we intend to complete the tasks arising out from it – said ” Nenad Jerinic , Director of the Department for Environmental Protection in the EPS Directorate for strategy and investment.
Our interlocutor points out that EPS projects which are currently being done in this area, as well as those who are in the plan, are part of the activities of the EU accession.

What are the most important projects and programs in the field of environmental protection, which are currently being prepared in the EPS?

These projects are primarily related to emissions from thermal power plants, and therefore we include sulfur oxides, nitrogen oxides and particulates. The largest projects are related to the desulphurization and desulphurization project in the TENT A is actual, which is financed from the loan funds provided by JICA (Japan International Cooperation Agency) for a total of 28.252 billion yen. The pre-qualification process was completed, and now we have six companies that are potential candidates for bids submission. We currently complete the tender documentation and adjust it with JICA. Tender can be announced by the end of this year, at the latest in January 2014^th, and we expect the contract to be signed by September next year. The deadline for the entire project completion is end of 2017^th. By doing so we would comply with the deadline that  LCPD defines (Large Combustion Plant Directive) directive on large combustion plants, when we should do our plants adjustment with the obligations arising from the directive. Another major project that is not still in the realization phase is the desulphurization in TENT B. The process of development and acceptance of investment- technical documentation comes to the end now. Securing funding is a key issue for the project. The idea is that, according to the project that we have now with JICA, these funds also provide a Japanese agency. Along the planned projects on the “Kostolac B” where, under the Chinese loan is also envisaged the implementation of all necessary measures in units B1 and B2, so that they can satisfy the defined emission values ​​. The realization of this work is planned for 2014^th and 2015^th.

What happens with denitrification?

At this point we have a “living” project on the unit TENT A5. We negotiate with “Hitachi” to ensure emissions below the value defined by LCPD Directive (200 mg) on the existing coal by using so-called primary measures. That would be a value that defines the IED (Industrial Emissions Directive), industry directive, which is much stricter compered to our applicable regulations and compered to the LCPD. In this way, in one single step we would satisfy both the applicable directives and one that we expect to become effective after 1^st January 2018^th. All the units in the TENT A and TENT B, then “Kostolac” B1 and B2 will enter in the denitrification project, and there are discussions on some measures on the TPP “Morava”. As for the reduction of particulate emissions, so far we have largely implemented these projects. Most of the buildings have been already adapted to the provision that emission must be less or equal to 50 mg/m3 (for objects with the power above 500 MW). Next year we expect the implementation of the electrostatic systems reconstruction in unit TENT A3 within the overhaul, and the electrostatic systems reconstruction in TPP “Morava” needs to be done in 2015^th.  These facilities will comply with the absolute standards and requirements, and they require that particulate emission in the unit A3 should be 30 mg/m3, and in the “Morava” 50 mg/m3.

Besides these, which projects are currently active?

There are also projects related to wastewater treatment. This project takes place in TENT B, and it has been funded through IPA Fund. The job is assigned to a consortium KPRIA-LAD, and the value of the contract is 7.5 MEUR. The contractor has submitted preliminary project in mid- November which defines all technical parts. We expect that the preliminary and final phase of the project will be finalized in April 2014^th, and in the mid-year to begin work, and the entire project to be completed by the end of 2015^th. At the same time we have prepared a draft version of the tender documentation for wastewater treatment in TENT A with excellent co-operation with colleagues from European delegations. Tender will be released late this year or early next year. In the case of “Kostolac B”, wastewater treatment is scheduled and it will be funded through IPA Fund 2013th. This will be the first project led by so called decentralized management process. This means that responsible persons from the Ministry of Energy, Development and the Environment Protection will take over the project management. We expect the project of reconstruction of the transportation system and ash and slag disposal, including gypsum, on the TENT A. We are currently negotiating with KfW Bank in order to secure the necessary funding for this project and we hope to the successful conclusion of the same.

How does the deadline extension for shutdown of technologically obsolete plants influence on the Department of Environment Protection?

Deadline moving has no impact on the operations and activities that occur within the sector. With the signing of the Energy Community Treaty and the obligations arising from the joining process to the EU, which Serbia has taken over, responsibilities in the area of environmental protection were clearly defined. PE EPS, and therefore the Department for Environment Protection, does everything to fulfill its obligations in the shortest possible, but realistic time frame. All projects in the field of environment protection are considered and coordinated in cooperation with companies, whose role is crucial for the projects realization. EPS plans to implement a number of projects, and there are good conditions that EPS fulfills all its obligations in this area. One of the key requirements for this is financial resources ensuring and the role of the Ministry and the Government of Serbia is extremely important in securing funding. Rough estimates indicate that EU standards adaptation in the field of Environmental Protection by 2030^th would cost 10 billion EUR.

What happens with the “integrated permits”?

Requests that should be submitted for the issuance of so-called “integrated “license have been intensively prepared in the Department of Environmental Protection, which investigates all environmental protection measures in one facility. The request shall be submitted to the Ministry of Energy, on 31^st December this year, and for 10 PE EPS thermal power plants ( TENT, TPP “Kostolac “, SC ” Pannonia thermal power plants” , SC MB” Kolubara ” – ” Vreoci” plant) . Our team has visited all these facilities over two weeks of the November and we prepare applications for each object in collaboration with colleagues from SC, and we also had a very good cooperation with SC.

The projects’ value

40,2 MEUR –Reconstruction or replacement of existing electrostatic precipitators in ТЕNТ А3, ТPP “Мorava”, ТPP “Kostolac” B1 и B2

70 MEUR –Primary measures to reduce emissions of nitrogen oxides at TENT units A3, A4, A6, then B1 and B2, both units of “Kostolac B”, TPP “Kostolac” A1 and A3 and TPP “Morava”

426 MEUR –Desulfurization of the TENT units A3, A4 and A6, TENT B1 and B2, “Kostolac” B1 and B2

30 MEUR –Wastewater treatment in TENT A and TENT B “Kostolac B” (2013-2016) – about 30 MEUR

58 MEUR –Reconstruction of the transport system and ash and slag disposal at dump ash on TENT A

Source; Serbia Energy/EPS