Serbia to start construction of two new power plants, says Aksentijevic special advisor to Serbian Energy Minister

, News Serbia Energy

In the next two years construction of a reversible hydro-power plant and a power plant that uses oil as fuel should start in Serbia.

As special advisor, to the Energy Minister, Ljubomir Aksentijević said at the Economic Summit in Belgrade, Serbia, the realization of projects in the energy sector will depend on a financial position of Serbia. Aksentijević said that for these projects foreign loans, leasing contracts, budget means and other national sources will be used.

Aksentijević reminded that Serbia lacks the capacity to produce electricity and said that in the next decade we need to invest about 10 billion Euros in this sector, which may encourage the development of Serbian economy.

He also said that the Ministry is preparing an Energy development strategy, which should be completed by the end of the year, and added that regulations in the field of energy efficiency are also being prepared as well as new tariffs with social maps for the consumption of electricity and gas.

Aksentijević recalled that a Memorandum of Understanding between the German RWE and the Serbian government to build five hydro power plants (HPP) 150 megawatts each on Velika Morava and Drina, with the total investment value of 350 million Euros was signed in September.

The second part of the memorandum, he added, provides a project worth 1.3 billion Euros for the construction of thermal power plant “Kolubara B” with power of about 750 MW, thermal power plant “Nikola Tesla 3”,  hydro power plant “Djerdap 3” and mine “Radevlje”.

Aksentijević reminded that an agreement on gas supply by 2020 signed with Russia, which means five billion cubic meters per year.

Toplica Spasojevic, member of the National Council for economic recovery of Serbia and president of ITM Group, said that due to the crisis, energy consumption in the domestic industry was reduced, but with the recovery of the sector we should expect higher consumption.

Electric Power Industry of Serbia in the near future could become the engine of development of the country, like the state-owned company CEZ in the Czech Republic during the transition period, said Spasojevic.

He added that the priority of development of energy in Serbia should be the use of renewable sources, because there will be coal in Serbia until 2050, while there will be less and less oil in the world.

According to him, the construction of small hydro power plants, wind power plants and other facilities for the production of electricity from renewable sources could be the generator of development of the whole economy.

For small hydro power plants up to 10 MW there is room in Serbia in about 900 locations, which together could have a total strength of about 700 gigawatts, Spasojevic said at the economic conference held at the Metropol Palace hotel in Belgrade.

Source Serbia Energy Magazine