new production capacities in Serbia
Transcription
new production capacities in Serbia
STRATEGIC AND DEVELOPMENT PROJECTS OF THE ELECTRIC POWER INDUSTRY OF SERBIA PE “Electric Power Industry of Serbia” Mission: of the Electric Power Industry of Serbia is to secure supply of all buyers with electricity, under the most favorable market conditions, with constant quality improvement of services, environmental improvements and increase of public welfare. Vision: of the Electric Power Industry of Serbia is to be a socially responsible company, a market oriented and profitable company, competitive in the European market and with the considerable influence within the region, recognized as a reliable partner to domestic and international companies. CONTENT NEW PROJECTS ................ 4 10 MODERNIZATIONS AND RECONSTRUCTIONS ................ 34 DISTRIBUTION SYSTEM ................ 42 ENVIRONMENT PROTECTION ................ 46 RENEWABLES ................ 50 Briefly About PE “Electric Power Industry of Serbia”.......... STRATEGIC AND DEVELOPMENT PROJECTS 3 Briefly About PE “Electric Power Industry of Serbia” Public Enterprise “Electric Power Industry of Serbia”, short – PE EPS (departments and independent sectors) Organizational structure: Vertically organized enterprise with 11 corporate enterprises (PE EPS and Corporate Enterprises – hereinafter “Electric Power Industry of Serbia” – EPS) and with all energy value chain elements, except transmission. Basic activities: Main activity of the Public Enterprise “Electric Power Industry of Serbia” is electricity trade, and activities of electricity generation and distribution, distribution system management, coal processing and transport, steam and hot water production in combined processes are performed in corporate enterprises. Ownership structure: Fully owned by the Republic of Serbia. 4 Installed capacities: Public Enterprise “Electric Power Industry of Serbia” operates the power system with the following capacities: №. Capacities Unit With capacities at Kosovo and Metohija 1 Installed capacity of power plants MW 8,359 7,124 2 Annual coal production 000 t - 37,195 3 Distribution network length km - 151,061.8 4 Installed capacities of MVA transformers in distribution companies - 24,736.75 5 Number of consumers - 3.5 Million Without capacities at Kosovo and Metohija Starting from June 1999, PE “Electric Power Industry of Serbia” is not able to use and operate its power and mining capacities at Kosovo and Metohija. Business policy objectives By respecting strategic documents of the Republic of Serbia energy development, together with recognition of already imitated activities, planned documents of the Electric Power Industry of Serbia established basic objectives of business policy which should enable: - Reliable electricity buyers supply under the most favorable economic conditions - Economic – financial and technical – technological improvement of the company - Modern organizational and management structure of the company - EPS corporatization with the preservation of company integrity and gradual ownership transformation through the strategic partnership - Opening of domestic, integration into the regional electricity market and establishment of influential position within the region - Environmental protection improvements, in accordance with the national and EU regulations - Development activities oriented towards renewable energy resources. STRATEGIC AND DEVELOPMENT PROJECTS 5 Briefly About PE “Electric Power Industry of Serbia” INTENSIVE INVESTMENT CYCLE Implementation of the PE EPS objectives depends on an entire group of factors, primarily orientation and plans defined by the state as the owner, when it comes to EPS. Twenty-year long development lag, especially in terms of construction of new generation capacities has challenged the implementation of the PE EPS business policy. Since 2001, the highest investments were into TPPs and coal mines rehabilitation, which led to the improved system performances. Achieved results indicate that it was correct strategic decision. Practice of not investing into TPPs in future, would lead to much higher business risks for the company, than not investing into the other activities. PE EPS anticipated the intensive investment cycle implementation for the purpose of: - Secure supply in conditions of expected electricity demand increase by 2025, for approximately 20% - Higher efficiency and competitiveness increase - Replacement of old, inefficient capacities at the end of their operation life - Application and observation of environmental regulations. NECESSARY INVESTMENTS In order to maintain the achieved electricity generation level, EPS should provide EUR 260 million on average annually by 2015 from electricity sales income for overhauls and ongoing maintenance and about EUR 514 million on average annually for investments (revitalization and modernization of capacities and replacement of the existing mined out open cast mines by opening new mines). Due to withdrawal of the oldest units from generation and increased electricity requirements, some EUR 620 million on average should be invested annually in cooperation with strategic partners. 6 PLANNED PROJECTS WITHIN THE EXISTING GENERATION CAPACITIES Projects which need to be finalized in the forthcoming period for the purpose of the achieved generation level: a) within mining capacities - Supply of the missing equipment and facilities necessary to reach coal production of 12 million tons annually at the Tamnava - West Field OCM; - Supply of the equipment for compensation of coal generation part missing within Kolubara MB at the Tamnava West Field OCM; - Coal mining technology improvement project at the Kolubara MB for the purpose of efficiency increase and environmental impact reduction; - Supply of the equipment for the replacement capacities at the Field C, Field E and Field G OCMs. b) within thermal and hydro power capacities - Revitalization of the Djerdap 1 HPP, the Bajina Bašta HPP, the Vlasinske HPPs, and the Zvornik HPP; - Finalization of revitalization of the units B1 and B2 at the Nikola Tesla TPP with capacity increase; - Finalization of revitalization of the units B1 and B2 at the Kostolac TPP with possible capacity increase; - Construction of the fifth generator set at the Bajina Bašta HPP; - Revitalization of the existing small HPPs PLANNED CONSTRUCTION PROJECTS OF THE NEW GENERATION CAPACITIES According to the current considerations, increased electricity needs by 2025 may be considerable extent by the new generation capacities construction – strategic projects: - Construction completion of the Kolubara B TPP; - Construction of the new units – at the Nikola Tesla B3 TPP and the Kostolac B3 TPP; - Reconstruction of the existing natural gas fired CHPs through installation of gas turbines, reconstruction of the Novi Sad CHP; - Opening project development of the Radljevo OCM; - Construction of at least 5 HPPs on the Velika Morava River, 10 cascade HPPs on the Ibar River, 4 HPPS on Gornja Drina, 3 HPPs on Srednja Drina, and PS HPPs Djerdap 3 and Bistrica - Construction of the small HPPs and electricity generation from other renewable energy sources. STRATEGIC AND DEVELOPMENT PROJECTS 7 Briefly About PE “Electric Power Industry of Serbia” PLANNED PROJECTS WITHIN DISTRIBUTION SYSTEM Special investment activity has been anticipated in modernization of the complete distribution system, including the following: - Construction of the substations, as well as overhead and cable lines all voltage levels, in order to meet growing electricity needs, and to improve voltage conditions and supplied electricity quality. - Revitalization, reconstruction or replacement of the existing outdated equipment; - Reconstruction of the existing low voltage levels (35, 20, 10 и 0.4 kV), which is in accordance with the local electricity demand increase and also with increase of supply quality; - Improvement i.e. technological modernization of metering equipment of buyers in order to establish SMART GRID concept; - Development and procurement of all necessary equipment and modern software tools for automation and facilities management within distribution companies; - Modernization of the electricity collection system, telecommunication system, and other… 8 PLANNED PROJECTS WITHIN ENVIRONMENTAL PROTECTION AND IMPROVEMENT Under the set of environmental laws, which came into force in December 2004, PE EPS is obligated to align the operation of its facilities with the provisions of these Laws by 2015. This means that state-of-the-art protection measures will have to be applied under national regulations harmonized with EU regulations, for the facilities and facilities undergoing revitalization. This implies the following: - For new and thermal power facilities undergoing revitalization – high-efficiency flue gas desulphurization plants and electrostatic precipitators will have to be installed, nitrogen-oxides reduction measures have to be applied, waste water treatment plants will have to be installed, new environmentally friendly ash and slag handling solutions will have to be introduced, etc; - For coal mines - reclamation activities of overburden dumps will have to be reactivated by introducing new methods, including selective mining and disposal of top soil; - For hydropower plants – protection measures of reservoirs and riparian areas anticipated by projects will have to be implemented; - Efforts should be made to use waste materials to the highest possible extent, such as ash, clay, gravel, sand, oils, rubber, etc, created in EPS activities, as secondary raw materials; - Operational application of flexible Kyoto Protocol mechanisms, usage of Clean Development Mechanism possibilities and development of GHG trading. STRATEGIC AND DEVELOPMENT PROJECTS 9 NEW PROJECTS 10 In order to consider possibilities for long-term development of thermal capacities of the Electric Power Industry of Serbia, activities have been planned on preparation for the construction of new thermal power units on existing or new locations. Coal reserves available in Serbia at the Kolubara and Kostolac Mining Basins present the basis for long-term plans related to thermal power plant construction. Plans of the Electric Power Industry of Serbia for the forthcoming period include activities on the Kolubara B TPP construction continuation (2x350 MW) and the third unit at the location of the Nikola Tesla B (700 MW)TPP, supplied with coal from the Kolubara MB. Investment analysis for the new thermal power plant construction is developed, that is unit 3 in the Kostolac B TPP, capacity 350 MW, which would be supplied with coal from the Drmno OCM. Besides, construction project of the new gas unit at the location of the Novi Sad CHP is planned, with capacity about 450 MW. PE EPS is implementing the activities on analysis of different scenarios and optimization of Drina System development. It is also preparing investment-technical documents for the construction of the new hydro capacities on the Gornja Drina River and Sutjeska through strategic partnership with MH Elektroprivreda Republike Srpske and its corporate enterprise Hidroelektrane on Drina River. Design documents completion is in progress for the construction of 10 small HPPs on the Ibar River, total capacity about 105 MW, and activities on project development of the system of at least 5 HPPs on the Velika Morava River, capacity about 150 MW, are continued. STRATEGIC AND DEVELOPMENT PROJECTS 11 NEW PROJECTS Construction completion of the Kolubara B TPP (2x350 MW) The Kolubara B TPP is located in the vicinity of the Kalenic village, 60 km south-west from Belgrade, at the northern side of the Tamnava Open Cast Mine. Decision on construction of the Kolubara B CHP, capacity 2x350 MW, was adopted in 1983. It was designed as the facility for combined generation of electricity and heat with the intention of heat delivery to Belgrade for its district heating system. Preparation activities have been started in 1988 by execution of construction works, while the construction continued in accordance with available funds. Procurement of the third part of the basic equipment was contracted and mostly delivered. Initiated activities on project implementation and usage of the World Bank loan have progressed very slowly, and in the middle of 1992 due to decision of the Government and lack of funding activities were completely suspended. By 1992, when works were suspended due to sanctions, about 40% of the facility was constructed at the site. After that, only the most essential activities have been done. As a result of the changed concept of heat supply to Belgrade, operational regime was changed, i.e. the facility will operate in condensation regime. In the second half of the nineties the issue of construction continuation was opened again, but without major progress. In the beginning of 2000 the issue of construction continuation became topical again, summary of previous investments has been made, together with construction continuation feasibility assessment, when it was concluded that there are technical-technological solutions guaranteeing modern operating parameters in the rank of modern thermal power units. Basic parameters of the Kolubara B TPP 12 Unit capacity 350 МW Number of units 2 Boiler Combustion Engineering, flow-through with subcritical steam parameters Turbine Condensation, triple-housing with additional steam reheating and regenerative heating of feed water and condensate Basic fuel Lignite from the Kolubara MB; 6,700 kJ/kg Unit efficiency ratio (net) ≥37 % PROJECT VALUE The study which established that more than EUR 300 million has been invested so far in the construction of the Kolubara B TPP was developed in 2004, with the assessment that about EUR 550 million still need to be provided for the construction completion. Performed analysis for the construction of new generation capacities firing Kolubara lignite indicate implementation feasibility of the Kolubara B TPP construction. IMPLEMENTATION MANNER Strategic partnership PLANNED CONSTRUCTION BEGINNING 2013 CONSTRUCTION DURATION 4 – 5 years STRATEGIC AND DEVELOPMENT PROJECTS 13 NEW PROJECTS Nikola Tesla B3 TPP – new unit The Nikola Tesla B TPP is located on the right bank of the Sava River, about 60 km upstream from Belgrade at the Vorbis location near Obrenovac. Electricity generation in thermal power plants is based on lignite coming from the Kolubara MB OCMs. The first construction phase was implemented by 1985 with total capacity 2x620 MW (the Nikola Tesla B TPP). For the purpose of further development and construction of thermal units at this location, it became necessary to analyze possibilities and feasibility of construction continuation on existing Vorbis location, through the construction of state-of-the-art unit of total capacity 700 MW with observation of all environmental protection measures. The first construction phase was implemented by 1985, including two units with capacity 620 MW (the Nikola Tesla B TPP) and designed technical documents anticipated two more units of the same capacity on this location. During the first construction phase of the Nikola Tesla B TPP, particular facilities were designed and constructed anticipated for the needs of the second construction phase. The new unit B3 construction, with capacity about 700 MW would implement the second construction phase. Exact location of the new unit at this location was based on the requirement for high functionality of technological process, with observation of the basic assumptions: - New unit B3 will be constructed in continuation of existing units B1 and B2 - Installed capacity of this unit will be about 700 MW - There will be no further construction on this location - New unit will be fitted in architectural, construction and technological terms into the existing layout, in accordance with the available area, taking into account facilities executed within phase one of the construction, as well as the area for the location of the environmental capacities. Basic parameters of the Nikola Tesla B3 TPP 14 Unit capacity ~ 744 МW Number of units 1 Boiler Котао With supercritical steam parameters Turbine Condensation, with additional steam reheating and regenerative heating of feed water and condensate Basic fuel Lignite from the Kolubara MB; 6,700 kJ/kg Unit efficiency ratio (net) ≥ 40 % PROJECT VALUE Investment- technical documents for the construction of unit B3 at the Nikola Tesla TPP analyzed the construction of unit with the capacity of 744 MW, with net efficiency ratio of approximately 40%. Basic investment is at the level of EUR 870 million. Performed analyses indicate that this investment is feasible i.e. that all profitability parameters of the facility are positive. IMPLEMENTATION MANNER Strategic partnership PLANNED CONSTRUCTION BEGINNING 2014 CONSTRUCTION DURATION 4-5 years STRATEGIC AND DEVELOPMENT PROJECTS 15 NEW PROJECTS Novi Sad CHP Existing the Novi Sad CHP in cogeneration operation regime generates electricity and heat for the heating of Novi Sad, as well as technological steam for the needs of Oil Refinery. The first construction phase was finalized in 1981 and the second in 1984. This facility has been used in previous years during the coldest winter months for Novi Sad heating, as well as for the coverage of the Republic power system needs. Modest efficiency level of existing cogeneration facility, without steam reheating, as well as high gas and fuel oil price have caused very restricted utilization of available installed capacity and thereby low generation and income. Namely, due to insufficient engagement and high fixed costs, electricity prices considerably exceed the price of kilowatt-hour from thermal power plants firing domestic lignite. High unit price of electricity, under the current operation mode and relation with the city district heating system, makes electricity generation at the Novi Sad CHP economically unsustainable in the long term. However, it should be taken into consideration that Novi Sad CHP is also an irreplaceable basic heat source of Novi Sad district heating system, supplying more than 60,000 households and other consumers. Considering the above-mentioned multiple role of the Novi Sad CHP, it became necessary to find a new business model enabling its economically feasible operation and fulfillment of PE EPS business interest in electricity and heat generation for long-term supply of district heating system under the price lower than the one generated in boiler plants of Novi Sad heating plant. By considering a series of possible reconstruction variants of existing Novi Sad CHP into gas–steam facility, with the utilization of existing equipment and comparison with the construction of the new gas–steam unit with the utilization of the existing location and infrastructure, it was concluded that the construction of the new cogeneration high capacity and efficiency gas–steam unit possesses the highest cost-effectiveness level. Key reasons for project implementation of the new gas-steam unit at the Novi Sad CHP include the following: - High efficiency level of imported natural gas in the cogeneration process of electricity and heat, as well as in the condensation operation regime; - Relatively low investment and capital costs compared to power facilities using other fossil fuels (coal, masut); - Possibility of rational utilization of existing infrastructure at the location; - Short construction period of the new plant (up to 3 years) in accordance with the fulfillment of growing power system needs; - Exceptionally low fixed operation costs of modern gas-steam plants; - Fulfillment of the strictest environmental standards (considerably higher carbon-dioxide emission compared to other fossil fuels, etc). 16 Economically most favorable results would be achieved through the construction of modern high-efficiency gas-steam facility with the total capacity above 400 MW el, and high efficiency level in electricity generation of over 58%, with possible heat generation of 300 MW t with minimum electric power reduction factor in the combined operation regime and total heat efficiency of over 82%. Basic indicators of the considered facility to be installed in continuation of existing turbine hall are provided in the table below. Basic parameters of the Novi Sad CHP Nominal electrical gross unit capacity 478 MW (448- 492) MW Heat load of steam turbine extraction 300 MWt Nominal electrical power of gas turbine under ISO conditions (0 mASL, 60% of relative humidity and air temperature of 15°C) 322 MW Nominal steam turbine capacity with collection 155 MW Gas turbine efficiency level 39.5% Total efficiency level of facilities in condensation operation regime approximately 58% Total thermo dynamic efficiency level of the facility higher than 82% PROJECT VALUE Investment value of this project, depending on final facility configuration and the usage level of existing infrastructure on the current location, would reach EUR 280 million, providing the level of specific investments of 550 EUR /kWh. PROJECT STATUS Retention of the cogeneration concept of electricity and heat in the context of investment capital attraction requires the formation of an institutional framework for long-term public interest protection in the field of energy supply, with simultaneous protection of future investor interests under the Novi Sad CHP reconstruction project. This may be achieved through the joint interest of EPS and the City of Novi Sad, i.e. formation of a joint company Energija Novi Sad. By recognizing this concept, support of the Serbian Government was obtained and agreement achieved with administration of Novi Sad, whereby initial assumptions have been created for intensive project development, i.e. selection of the strategic partner with whom this project would be implemented. IMPLEMENTATION MANNER It is expected that strategic partner will be elected through transparent tender procedure by the end of 2011. PLANNED CONSTRUCTION BEGINNING 2012 CONSTRUCTION DURATION 2-3 years STRATEGIC AND DEVELOPMENT PROJECTS 17 NEW PROJECTS Kostolac B3 TPP – new unit The Kostolac B3 TPP is located at the right bank of the Mlava River, in the Drmno village area, near Kostolac. Electricity generation in thermal power plant is based on lignite coming from open cast mines of the Kostolac Mining Basin. By 1992, the first construction phase of the units B1 and B2 is implemented, with total capacity 2x348.5 MW (The Kostolac B TPP). For the purpose of further development and construction of thermal units at this location, it became necessary to analyze possibilities and feasibility of construction continuation, through the construction of state-of-the-art unit of total capacity ca. 350 MW, with technical–technological solutions of units of this capacity level, purpose and fuel type, and observation of all environmental measures. In the period by 1991 the first construction phase was executed and it includes two units with total installed capacity of 697 MW, i.e. including two units of 348.5 MW, and two more units of the same power are anticipated to be constructed at the same location by the design documents. During the first construction phase of the Kostolac B TPP some joint facilities and structures are constructed for the needs of the second phase of construction. The second phase of construction would be implemented by the new unit B3 construction, with capacity of approximately 350 MW. Exact location of the new unit at this location was based on the requirement for high functionality of technological process, with observation of the basic assumptions: - New unit B3 will be constructed in continuation of existing units B1 and B2 - Installed capacity of this unit will be about 350 MW - There will be no further construction on this location - New unit will be fitted in architectural, construction and technological terms into the existing layout, in accordance with the available area, taking into account facilities executed within phase one of the construction, as well as the area for the location of the environmental capacities. 18 Basic parameters for the Kostolac B3 TPP Unit capacity 350 МW Number of units 1 Boiler Supercritical steam parameters Boiler capacity 1130 t/h Fresh steam pressure 254 bar Fresh steam temperature 571 0C Temperature of additionally reheated steam 569 0C Additionally reheated steam pressure 43 bar Turbine Condensation, with additional steam reheating and regenerative heating of feed water and condensate Basic fuel Lignite from the Kostolac Mining Basin, 7,800 kJ/kg Unit efficiency ratio (net) ≥ 40 % PROJECT VALUE Investment–technical documents for the construction of unit B3 at the Kostolac TPP analyzed the construction of unit with the capacity of 350 MW, with net efficiency ratio of nearly 40%. Basic investment is at the level of EUR 600 million. Executed analyses indicate that this investment is feasible, i.e. that all profitability parameters of the facility are positive. PROJECT STATUS It is predicted that this project will be implemented by the PE EPS, by providing of foreign credit funds. IMPLEMENTATION MANNER (own funds / loan) PLANNED CONSTRUCTION BEGINNING 2015 CONSTRUCTION DURATION 4-5 years STRATEGIC AND DEVELOPMENT PROJECTS 19 NEW PROJECTS HPPs Upper Drina The Drina River represents the most important unused hydro potential within the region. Catchment area of River Drina is 19,570 km2, while average precipitation is 1,100 mm. It is characterized by extremely uneven water table: ratio of minimum and maximum flows reached 200 m3/s. Average annual flow at the spring is 157 m3/s and at the confluence 425 m3/s. The Bajina Bašta HPP and PSHPP, the Višegrad HPP and the Zvornik HPP are constructed on the Drina River, by which about 130 m of head, or less than 40% is used. Unused potential of the Drina River may includes Upper Drina – part of the unused potential upstream from the Višegrad HPP; Middle Drina – potential between the Bajina Bašta HPP and the Zvornik HPP, and Lower Drina – potential downstream from the Zvornik HPP. According to the results of the Conceptual Solution and prefeasibility study related to utilization of Upper Drina and Sutjeska hydropower potential at the territory of the Republic of Srpska, hydro potential of Upper Drina catchment area may be used through four hydropower facilities: three dam cascades on Drina (Buk Bijela, Foča and Paunci) and reservoir–derivational the Sutjeska HPP on the river bearing the same name. Overview of partition profiles on Upper Drina and Sutjeska River Basic technical parameters of hydropower facilities on Upper Drina are provided in the following table: HPP Qi (m3/s) Vkor (hm3) Ni (MW) Esr (GWh/g) Buk Bijela 450.0 12.8 114.6 369.4 Foča 450.0 2.7 51.7 183.6 Paunci 450.0 2.9 36.6 154.1 Sutjeska 52.0 36.0 35.0 90.2 54.4 237.9 797.3 TOTAL 20 PROJECT VALUE According to the above investment-technical documents developed in 2008, investment value of all four hydropower plants has been estimated at EUR 435 million. PROJECT STATUS Considering the developed documents, it is certain that implementation activities should be continued for hydropower facilities on the Upper Drina. Technical documents development and also development of conceptual designs with feasibility studies for all 4 predicted hydro power facilities is in progress. IMPLEMENTATION MANNER In cooperation with the Electric Power Industry of Republic of Srpska, PE EPS signed with RWE Company Memorandum on Cooperation, which includes implementation of this project. It is expected from the Republic of Srpska to implement the procedure on selection of its partner. PLANNED CONSTRUCTION BEGINNING 2013 PROJECT FINALISATION Successively, starting from 2019 to 2022 STRATEGIC AND DEVELOPMENT PROJECTS 21 NEW PROJECTS HPPs on Middle Drina The middle course of the Drina River, between the existing Bajina Bašta HPP and Zvornik HPP, is also attractive in energy terms. For this reason, HPPs on the Middle Drina are included in the spatial planning documentation of the Republic of Serbia and the Republic of Srpska, i.e. Bosnia and Herzegovina. The area is all the more important owing to the existing upstream reservoirs in the Drina catchment (HPP and PSHPP Bajina Bašta, Višegrad HPP, Piva HPP, Drinsko-Limske HPPs) and the planned reservoirs on the Lim and the Upper Drina in near future. Owing to the spatial planning aspect of this portion of the Drina River with its littoral area, in particular the land development level, it is necessary to plan and technically elaborate cascade HPPs to utilize this renewable energy source, with due attention to protecting the littoral area, already being used for other purposes, such as housing, industrial and tourism facilities and farming. The Outline Design and Pre-feasibility Study for hydro-power plants on the Middle Drina are being reviewed and adopted; as part of this, several options have been considered, aiming to make the best use of the hydro-potentials, taking due account of the conditions required for the operation of other assets located within the area affected by them. According to the findings of the Outline Design and Pre-feasibility Study, the hydro-potential of the Middle Drina may be used to optimum benefit by building three impoundment hydro-power plants. Of the total head of 63 metres, 60 m would thus be used. The main technical parameters of the HPPs on the Middle Drina are presented in the following table: HPP Qi (m3/s) Ni (MW) Esr (GWh/g) Rogačica 800.0 87.0 335.0 Tegare 800.0 121.0 448.0 Dubravica 800.0 113.0 413.0 321.0 1,197.0 TOTAL PROJECT VALUE According to the abovementioned technical documentation, prepared in 2010, the investment costs of the proposed three hydro-power plants are estimated at EUR 819 million. IMPLEMENTATION MANNER In cooperation with Electric Power Industry of the Republic of Srpska, PE EPS signed the agreement with company SECI on joint development of this project, and based on the international agreement with Italy. Strategic partnership/loan PLANNED CONSTRUCTION BEGINNING 2014 PROJECT FINALISATION Successively, from 2020 to 2023 22 PSHPP Bistrica Among the most attractive new hydro-power facilities is certainly the new 680 MW pumped-storage Bistrica hydro-power plant, in the vicinity of the existing Bistrica HPP. The upper reservoir of the Bistrica PSHPP is the newly designed reservoir of Klak on the Uvac River, immediately downstream from the Radojnja reservoir, with an energy storage capacity of about 60 GWh, while the lower reservoir is the existing reservoir of the Potpeć HPP. The importance and role of the Bistrica PSHPP are particularly prominent on the regional energy market, in particular owing to the existence of upstream storage reservoirs on the Uvac river (Kokin Brod and Uvac), whose regulated water could be used for peak operation, together with the existing Bistrica HPP, with installed capacity of 104 MW. The main characteristics of the Bistrica PSHPP are as follows: Power plant type Pumped storage Normal backwater elevation 812 mnm Live storage 80х106 m3 Tail water elevation 430 mnm Type and number of units single-stage pump-turbine x 4 Discharge per unit 42/54 m3/s Pump head/hydraulic head 397/381 m Nominal motor-generator capacity 180/180 MVA Installed capacity 680 MW cos φ 1.0 / 0.95 PROJECT VALUE From 1973 to 1980, project documentation was prepared and exploratory works carried out. The main design for the construction of the Klak dam was prepared. According to the feasibility analysis, the total investment is worth EUR 553 million, i.e. 813,000 EUR/MW. IMPLEMENTATION MANNER Own funds/loan PLANNED CONSTRUCTION BEGINNING 2015 PROJECT FINALISATION 2020 STRATEGIC AND DEVELOPMENT PROJECTS 23 NEW PROJECTS HPPs on the Ibar River The technical documentation developed to date and endorsed by the adopted planning instruments of the Republic of Serbia identifies the possibility of utilizing the hydro-potential of the Ibar River between the towns of Raška and Kraljevo by means of a series of 10 cascade impoundment hydro-power plants. The river valley morphology and its use for other infrastructural facilities, in particular the railway, could not be overlooked in identifying the modality of using this hydro-potential. In 2010, the General Design and Pre-feasibility Study were developed for utilizing the hydro-potential of the Ibar between Raška and Kraljevo; the resulting solution was 10 cascade impoundment HPPs. The next stage in developing technical documentation is in progress – the Conceptual Design is being prepared; this includes carrying out the associated on-site exploratory works. The main technical parameters of the HPPs on the Ibar River, based on the General Design, are presented in the following table: HPP Qi (m3/s) Ni (MW) Esr (GWh/g) Bojanići 100.0 9.7 34.5 Gokčanica 100.0 10.3 37.0 Ušće 100.0 8.5 31.0 Glavica 100.0 9.8 40.8 Cerje 100.0 10.5 43.7 Gradina 100.0 10.8 45.0 Bela Glava 100.0 9.9 42.4 Dobre Strane 100.0 10.5 45.0 Maglić 100.0 12.0 50.8 Lakat 100.0 11.0 48.4 TOTAL 100.0 103.0 418.6 Elaboration within the Conceptual Design indicates the possibility of increasing the installed capacity of these HPPs, which would result in more efficient utilization of the potential. Variant 1 System of 10 run-of-river HPP (with partial flooding of roads) 24 PROJECT VALUE According to the abovementioned General Design of 2010, the investment cost of these 10 HPPs totals EUR 284 million. PROJECT STATUS Development of Preliminary Design with Feasibility Study is in progress. IMPLEMENTATION MANNER With Italian company SECI through formed joint company PLANNED CONSTRUCTION BEGINNING 2013 PROJECT FINALISATION Successively, from 2016 to 2021 STRATEGIC AND DEVELOPMENT PROJECTS 25 NEW PROJECTS HPPs on the Velika Morava River The Velika Morava River, with a catchment area of over 37,000 km2, has an average flow rate of over 230 m3/s. Its course is about 182 km in length, with an elevation difference of 62 meters. On about 20 km of its course, downstream from the Ljubičevo Bridge, the river is under the Djerdap HPP 1 backwater, i.e. the 5 m head downstream from that point has already been utilized for hydropower purposes. According to the Serbian planning documentation, the Velika Morava valley is an area of intensive development, featuring major road and rail routes, a gas pipeline, many communities, large areas of farm land, the Kostolac coal mining basin and other economic structures. All this indicates the complexity of utilizing the hydro-potential of the Velika Morava, which has been studied on several occasions over the past decades without a single hydropower facility built as a result. Explorations and designing activities to date indicate that the water of the Velika Morava could be used for energy generation purposes by building several cascade impoundment HPPs. In 2010, the General Design of HPPs on the Velika Morava was prepared as part of efforts towards integrated management of the available water of Velika Morava, and the main technical parameters of the HPPs are presented in the following table: HPP Ni (MW) Esr (GWh/g) Varvarin 28.9 122.9 Mijatovac 30.1 129.4 Svilajnac 28.8 128.0 Trnovče 29.3 128.1 Ljubičevo 30.6 137.1 TOTAL 147.7 645.5 26 PROJECT VALUE According to the aforementioned technical documentation, the investment cost of these five cascade HPPs is estimated at EUR 352 million. The construction duration for the Velika Morava HPP system is estimated at five years. PROJECT STATUS Pre-feasibility study with Preliminary Design is completed. Therefore, the development of technical documentation will proceed to subsequent, more elaborate stages, with more detailed inputs and bases, appropriate to document level. IMPLEMENTATION MANNER With German company RWE through formed joint company PLANNED CONSTRUCTION BEGINNING 2014 PROJECT FINALISATION Successively, from 2017 to 2020. STRATEGIC AND DEVELOPMENT PROJECTS 27 NEW PROJECTS PSHPP Djerdap 3 The main concept of building of the Djerdap 3 PSHPP is based on using the existing Djerdap 1 HPP reservoir as the lower reservoir and establishing the upper reservoirs in the Pesača river valley (construction phases I and II) and the Brodica river valley (construction phases III and IV). The facility would have a head of about 400 m, and the selected location for the Pesača impoundment and the PSHPP powerhouse on the right bank of the Danube River enables a relatively short headrace (∑L/H = 6.8), making this PSHPP an economically advantageous solution. In view of negligible natural inflow of water into the upper reservoirs, all energy is obtained by using water pumped from the lower reservoir, and the facility’s cost-effectiveness is based on the peak and base energy price difference. Prominent features include favorable morphological, topographic and geological conditions for establishing the upper reservoirs, whose total live capacity will be about 578 hm3 (Pesača reservoir – 32.5 hm3, Brodica reservoir – 545 hm3). The Conceptual Design, prepared in 1973, foresees construction in stages, as follows: Phase I: Building the Pesača dam, with live capacity of 18.5 hm3, 1,915 m headrace, surge tank, 664 m steel pipeline and powerhouse with two units (pump turbines), and installed capacity of 2 x 300 MW = 600 MW. Phase II: Extending the Pesača dam by 20 m in height to provide an additional capacity of 14.0 hm3 and building two additional generation units and penstocks with the same properties as those from Phase I. Phase III: entails building another set of penstocks with two units and extension of the Pesaca reservoir by an additional 37.5 hm3 of live storage capacity; an alternative solution that was considered would entail building the Brodica dam, with reservoir capacity of about 545 hm3, thus providing the possibility of proceeding with Phase IV, i.e. building an additional 600 MW of generation capacity. The reservoirs of Pesača and Brodica would operate according to the communicating vessels principle and would be linked by an 8 km communicating tunnel. The energy storage capacity of these reservoirs would total about 460 GWh and would have seasonal relevance. The 1973 documentation specified Phases I and II, while PSHPP Djerdap 3 with the Brodica dam was specified in 1990 at the level of outline design (general design). 28 Djerdap 3 PSHPP Hydraulic Schema PROJECT STATUS In the feasibility analysis carried out in 2010, the investment costs of the technical solution proposed in the Conceptual Design were updated and the figure amounted to about EUR 400 million. Construction works would last four years. IMPLEMENTATION MANNER Strategic partnership / loan PLANNED CONSTRUCTION BEGINNING 2015 PROJECT FINALISATION 2020 STRATEGIC AND DEVELOPMENT PROJECTS 29 NEW PROJECTS Strategic and development projects of the PE EPS anticipate the construction of new thermal capacities, which require necessary coal amounts, as well as initiation of activities for the development of new projects related with open cast mines. Radljevo OCM Radljevo Open cast mine is located in the western part of the Kolubara Mining Basin directly along the western border with Tamnava– West Field OCM. Coal mining on this open cast mine will unfold in extremely stratified operating environment, which has not been treated in our open cast mines. Selective operation regime with the new equipment will be present at the Radljevo OCM. Therefore, defining of equipment capacity parameters will represent a key moment in cost-effectiveness of this production. Considering the above, the Radljevo OCM will in future be a secure fuel supplier both of the existing and new thermal units. Basic parameters of the Radljevo OCM Coal type lignite Mining reserves 341.4 mill.t Calorific value 6,306 - 7,728МЈ/t Average calorific value 6,955МЈ/t Ash content 16.18% Humidity 49.50% Annual production 13 mill.t Stripping ratio 2.98 Total thickness of coal seam (6 seams) with dirt bands 60m Basic excavation machinery continuous Operation life for the capacity of 13 million tons of coal annually 35 years PROJECT VALUE In the period from 1962 to 2004 in the area of the Radljevo OCM, some 359 boreholes have been tested, together with the development of the study on reserves. During 2008 the study related to the selection of boundaries and opening with comparative overview of technical–economical aspect of coal mining was done for the selection of priority coal supplier of the Kolubara B TPP. According to the prefeasibility study, estimated investment value for achievement of full capacity of 13 million tons annual at the Radljevo OCM is EUR 595 million. PROJECT STATUS Considering that prefeasibility study has been adopted, further necessary documents should be developed as soon as possible for opening of this open cast mine. This is primarily the preliminary design with the feasibility study which will provide a more precise assessment of necessary funds for the Radljevo OCM opening. IMPLEMENTATION MANNER Strategic partnership / loan PLANNED CONSTRUCTION BEGINNING Construction beginning is possible to be from 2012 or in accordance with construction dynamics of new thermal capacities. CONSTRUCTION DURATION TO THE FULL CAPACITY 3–4 years 30 Field E OCM Field E Open cast mine was designed as the replacement capacity of the Field D open cast mine, currently producing 14 million tons of coal and supplying thermal power plants at Obrenovac. Field E OCM is located in the eastern part of the Kolubara Mining Basin to the south of the Field D OCM. Coal mining on this open cast mine will unfold in complex conditions on 10 benches, of which nine contain mixed coal (coal and overburden). The deposit is bent and of syncline character, with floor elevations reaching up to -180 m and the dump site exceeding the height of +200 m. Major part of equipment to be used will be revitalized equipment coming from Field D OCM and Field B OCM adapted to operation in new conditions. Basic parameters of the Field E OCM Coal type lignite Mining reserves 331 mill.t Calorific value 7,087- 8,975 МЈ/t Average calorific value 8,400 МЈ/t Ash content 13.38 % Humidity 48.20 % Annual production 12 mill.t Stripping ratio 3.42 Total thickness of coal seam (average) 33.6 m Basic excavation machinery continuous Operation life for the capacity of 13 million tons of coal annually 43 years PROJECT VALUE Investigation level of the Field E OCM is in the phase of basic and detailed geological investigations with 219 exploratory boreholes. Based on adopted Preliminary Design with the Feasibility Study of opening and construction of the Field E OCM from September 2008 assessed value of investments until the design capacity of 12 million tons of coal annually amounts to EUR 532 million. PROJECT STATUS Expert Council of EPS has in 2005 adopted the Study ‘Selection of Boundaries and Opening of Field E Open Cast Mine’. This study served as the basis for the development of the Conceptual Programme with the Feasibility Study of Opening and Construction. After adoption of this document by the Expert Council of EPS in September 2008, conditions were met for the start of implementation on of this project. IMPLEMENTATION MANNER Loan / own funds PLANNED CONSTRUCTION BEGINNING 2010 CONSTRUCTION DURATION TO THE FULL CAPACITY 5 – 6 years STRATEGIC AND DEVELOPMENT PROJECTS 31 NEW PROJECTS ENVIRONMENT IMPROVEMENT AT THE KOLUBARA MB The Electric Power Industry of Serbia is developing Environmental Improvement Project at the Kolubara Mining Basin. This project will provide uniform coal quality which is being mined at the Kolubara MB, and at the same time its usage will enable to the TPPs of EPS operation efficiency increase. EBRD and KfW are considering the approval of the loan amounting to EUR 140 million for this project implementation. The loan will be used for the following procurement: - Coal Quality Management System at the western part of the Kolubara MB. This new equipment will improve coal mining efficiency and it will significantly improve uniformity of coal quality which is supplied to the thermal power plants; - ECS System (excavator, conveyor and spreader system) for the new Field C Open Cast Mine at the eastern part of the Kolubara MB; - Interburden spreader for the Tamnava West Field OCM. PROJECT VALUE - Coal Quality Management System at the western part of the Kolubara MB – EUR 40 million; - ECS System (excavator, conveyor and spreader system) for the new Field C Open Cast Mine at the eastern part of the Kolubara MB – EUR 80 million; - Interburden spreader for the Tamnava West Field OCM – EUR 20 million. 32 PROJECT STATUS The project is the part of A Category, based on internal EBRD categorization. Therefore, it is necessary to develop the following documents: Environmental and Social Impact Assessment (ESIA), Stakeholder Engagement Plan (SEP) and Non technical Summary (NTS). All these documents, according to the rules prescribed by EBRD, are developed by the Consultant Firm – ARUP. It is expected that the loan will be approved, and final banks decision will be made in summer 2011. IMPLEMENTATION MANNER Loan PROJECT IMPLEMENTATION BEGINNING 2011 ACTIVITIES DURATION BY THE PROJECT FINALISTAION 4–5 years STRATEGIC AND DEVELOPMENT PROJECTS 33 MODERNIZATIONS AND RECONSTRUCTIONS 34 Nikola Tesla B TPPs (B1 and B2) The Nikola Tesla B TPP is located on the right bank of the Sava River, about 50 km upstream from Belgrade. It includes two units with gross installed capacity of 618.5 MW. Unit B1 is commissioned in 1983, and B2 in 1985. Electricity generation in thermal power plants is based on lignite coming from the Kolubara MB OCMs, value of 6.700 kJ/kg. This TPP presents significant electricity producer within EPS power system. Units are designed for base load operation of the power system and reach annual capacity generation of 8.3 bill. KWh. Basic characteristics of units B1 and B2 Nominal capacity 618.5 MW Output capacity 580 MW Fresh steam pressure at the boiler outlet 186.5 bara Stem superheated and reheated temperature 540 0С Reheated stem pressure at the boiler outlet 39.2 bar Specific net consumption 9,685 kЈ/kW Turbine manufacturer BB Switzerland and ALSTOM, France Boiler manufacturer Rafako, Sulcer Generator set manufacturer BBC Switzerland In the respect of the new thermal capacities construction and their commissioning, PE EPS considered possibility of units capacity increase within the Nikola Tesla B TPP, in order to reduce electricity deficiency impact. Analysis (ECORAM) has been developed, by which measures and possibilities for capacity increase at the unit B2 are identified. This document present base line for development of Preliminary Design, analyzing systems which have direct impact on the unit capacity increase. Feasibility Study with the Preliminary Design, besides proposed measures for unit capacity increase, also analyzes economic feasibility of the observed technical-technological solution within existing unit borders. This project anticipates bringing of all units and equipment into designed parameters with special measures and requirements for the unit capacity increase, and implementation of the environmental protection system within the legal regulation. Predicted measures are providing unit capacity increase for about 47 MW. Here is about two units with the same capacity, that is why the same technical-technological solution will be used, where eventual technical deficiencies from the unit B2 will be considered. PROJECT VALUE Estimated value of the necessary investments for the reconstruction of the unit B2 for the purpose of nominal capacity increase is about EUR 22.7 million, which, at the same time, presents the investment level for the unit B1. PROJECT STATUS Necessary measures for capacity increase on the unit B2 are planned to be implemented during unit annual overhaul by 2012. Reconstruction activities of the unit B1 would be implemented in period 2012 – 2014 during annual overhauls. Development of Preliminary Design with Feasibility Study will be completed in 2011. Construction of flue gas desulphurization on both units B1 and B2 is anticipated by 2017. STRATEGIC AND DEVELOPMENT PROJECTS 35 MODERNIZATIONS AND RECONSTRUCTIONS Kostolac B TPP (B1 and B2) The Kostolac TPP is located at the right bank of the Danube River, in vicinity of Kostolac, and it presents significant electricity generator within the power system of the Republic of Serbia. The Kostolac TPP is supplied with the lignite as its basic fuel –from the Drmno Open Cast Mine which is located west of the TPP about 1 km. The TPP includes two units with total installed capacity of 348.5 MW each. Unit B1 is commissioned in 1988, and unit B2, in 1992. Units are designed for base load operation of the power system and reach annual generation of 3. 5 bill.KWh The vicinity of the Danube River enables an application of the open condensate cooling system type. Basic unit data Installed capacity (gross) 697 MW Output capacity 640 MW Nominal steam generation 1,000 t/h Superheated steam pressure 186 bar Stem superheated and reheated temperature 540 0C Reheated stem pressure 43.7 barа Specific consumption (net) 11,514 (kЈ/kWh) Turbine manufacturer Zamech, Poland Boiler manufacturer SES, Slovakia Generator set manufacturer ABB, Poland Both units B1 and B2 of the Kostolac TPP until now, did not reach designed capacity, and from the mining beginning they operated with 15-20% less capacity than designed. The Feasibility Study with Preliminary Design with proposal of necessary measures for the capacity increase to the designed capacity, with energy efficiency increase is developed with fulfillment of the legal regulations from the field of environmental protection. By application of the proposed activities on the units, their operational life will be extended for the further 15 years. PROJECT VALUE Estimated value of the necessary investments is about EUR 103 mill. per unit. PROJECT STATUS Necessary activities and measures for the capacity increase of the unit B1 would be executed during the annual overhauls. The activities are planned to be implemented in the period 2010-2012. Activities on reconstruction of the unit B1 would be executed in the period 2013-2015 during the annual overhauls. On the basis of the Preliminary Design, the construction of flue gas desulphurization plant (FGD) is planned, along with both units reconstruction by 2015. 36 HPP Bajina Bаšta The Bajina Bašta HPP is located some 160 km from the Drina river confluence into the Sava River. It was commissioned in 1966. After 40 years of continuous operation the revitalization works have been initiated in order to extend its operational life, increase its reliability and availability. Bajina Bašta HPP basic data (prior to revitalisation) Total capacity (МW) 368 Number of units 4 Capacity per unit (МW) Installed discharge (m3/s) 92 620 Guaranteed discharge (m3/s) 50 Maximum head (m) 70 Annual generation (GWh) 1,500 PROJECT VALUE Total funds necessary for the Bajina Bašta HPP revitalisation amount to EUR 73 million. PROJECT STATUS The first unit was revitalised in 2010. Performance tests have been successfully completed, while the unit capacity and the discharge were increased to 105 MW and 680m3/s, respectively. It is expected that the Bajina Bašta HPP capacity will increase for some 15% once all units have been revitalised. Unit 2 revitalisation completion is planned for the beginning of October 2011, Unit 3 for September 2012 and Unit 4 for August 2013. STRATEGIC AND DEVELOPMENT PROJECTS 37 MODERNIZATIONS AND RECONSTRUCTIONS HPP Djerdap 1 The Djerdap 1 HPP is located some 943 km from the Danube river confluence to the Black Sea. All units were commissioned in 1972. Until the beginning of 2011, it has generated the total of 226,500 GWh of electricity. The Djerdap 1 HPP has been in continuous operation for 37 years, while the revitalisation works (unit capacity increase and step-up transformer replacement) have been initiated primarily to extend its operational life, as well as to increase equipment reliability and availability. Djerdap 1 HPP basic data Water shed area (km2) Reservoir volume (k Live storage (k m3 817,000 m3) 1.5 ) 0.2 до 0.3 Main facility crest elevation (mnm) 72.50 Backwater width (m) 1,280 Mean annual discharge (m3/s) 5,520 Installed capacity (MVA) 1,140 Number of units 6 Installed discharge (m3/s) 4,800 Net head (m) 27.16 Mean annual generation (GWh) 5,560 Studies and investigations have demonstrated that it is economically feasible to increase the turbine discharge, with the corresponding generator and transformer capacity increase. By increasing the installed discharge from the current 800m3/s to 840m3/s per unit, maximum turbine and generator capacity will be increased from the current 194 MW to 205 MW (205 MW, 100 h annually) and from 190 MVA to 216 MVA, respectively. Mean internal efficiency level was increased for 0.45% by selecting the new blade section. Capacity and efficiency level increase would chiefly result in the improved variable operation of the Djerdap 1 HPP and annual generation increase of some 50 GWh. PROJECT VALUE Total funds needed to revitalise the Djerdap 1 HPP have been estimated at US$ 168 million. US$ 100.5 million will be financed from the clearing debt of the Russian Federation to the Republic of Serbia, while the remaining funds will be provided by EPS. PROJECT STATUS The first unit revitalisation is carried out based on the approved Detailed Design. Preliminary works for the main generator stator erection are under way for the second unit planned for revitalisation, together with the manufacture of the new parts for the second turbine. 38 HPP Zvornik Zvornik Hydropower plant is located on 100 km from the confluence of Drina River to Sava River, commissioned in 1955. By the start of 2009 it has generated 23 TW h of electricity. Preparation activities have been initiated for revitalization of this run-of-river power plant after more than 50 years of uninterrupted operation and for the purpose of operation life extension and equipment reliability and availability increase. Basic parameters of the Zvornik HPP Catchment area (km2) Reservoir volume (106 17,423 m3) 23.4 Dam height (m) 42 Dam crest elevation (mnm) 164.00 Spillway capacity (m3/s) 9,000 (m3/s) Guaranteed flow 50 Installed capacity (MW) 96 Number of generator sets 4 Installed flow (m3/s) 620 Gross head (m) 22.6 Mean annual generation (GWh) 470 Feasibility study indicated that it is economically favorable to increase the discharge capacity of the turbine, with corresponding capacity increase of generators and transformers. Through the increase of installed flow from the current 620 m3/s to 680 m3/s it is possible to achieve capacity increase from current 96 MW to 135 MW. It is anticipated that generation will then reach 551 GW h annually, which is compared to the average annual generation of 435 GW h an increase of 26%. PROJECT VALUE Total value of funds necessary for the Zvornik HPP revitalization is estimated at EUR 95 million, and EUR 75 million is provided by the loan of KfW. PROJECT STATUS Financial funds are provided and the contract is signed. Expected construction work beginning is at the first quarter of 2012, and completion in 2017. STRATEGIC AND DEVELOPMENT PROJECTS 39 MODERNIZATIONS AND RECONSTRUCTIONS HPPs Vlasinske The Vlasinske HPPs system is made of four cascade hydropower plants (The Vrla HPP 1, 2, 3, 4) and a pumping station Lisina PSP located in the south of the Republic of Serbia. Vrla 1 HPP uses water from Vlasinsko Jezero, while other power plants (Vrla HPP 2, 3, 4) have their own small reservoirs, using water from the lake for operation. Lisina PSP pumps water from Lisinsko to Vlasinsko Jezero. In the first phase of construction of Vlasinske HPPs, in the period between 1954 and 1958, half of the anticipated equipment in each HPP was installed, total installed capacity 57 MW. In the second construction phase, in the period between 1974 and1975, equipment was completed in each of the hydropower plants and with the building of PSP Lisina. Consequently, installed capacity was increased for 72 MW (to the total of 129 MW ), as well as the average annual generation from 150 GW h to 282 GW h. Vrla 1 HPP Vrla 2 HPP Vrla 3 HPP Vrla 4 HPP PSP Lisina Reservoir volume (106 m3) 107 0.1 0.5 0.1 7.5 Maximum head water elevation (mASL) 1,213 868 710 503.6 976 Installed flow (m3/s) 18.32 18.5 18.5 18.5 7.5 Gross head (m) 343 160 208 172 335 Nominal capacity (MW) 51 24 29 25 27 93.9 51.3 73.6 63 -74.8 Mean annual generation (GWh) For the purpose of operation life extension and equipment reliability and availability increase, preparation activities have been initiated for revitalization of this run-of-river hydropower plant. Feasibility study indicated that it is economically favorable to increase the discharge capacity of the turbine, with corresponding capacity increase of generators and transformers. By increasing installed flow from the current 18.5 m3/s (8.5 + 10) to 20 m3/s (9.5 + 10.5) it is possible to achieve capacity increase for 10.2 GW h. PROJECT VALUE Total value of funds necessary for Vlasinske HPPs revitalization is estimated at EUR 52 million. PROJECT STATUS Construction beginning is planned after the provision of funds. 40 Open Cast Mines In Electric Power Industry of Serbia coal in currently produced within two basins, i.e. on 5 open cast mines (Field B, Field D, Tamnava – West Field and Veliki Crljeni – Kolubara Mining Basin and Drmno – Kostolac Mining Basin), while another two open cast mines in the Kostolac Mining Basin (Cirikovac and Klenovnik) are being decommissioned. The annual overburden and coal production is about 100 million m3 and 37 million tons, respectively. Overburden and coal are excavated in the Kolubara Mining Basin by the use of 17 bucket wheel excavators, 1 bucket chain excavator, 23 draglines, 15 spreaders and self-propelled conveyers and 117 drive stations with some 80 km of belt conveyers. The age of the bucket wheel excavators used on EPS open cast mines is highly unfavourable (average age is higher than 25 years), while most of the excavators (especially on Field D OCM) have already been in operation for more than 150,000 hours, with some 200 million m3 of material excavated. For this reason, the forthcoming period will see comprehensive revitalisation and modernisation of the coal and overburden equipment. The existing maintenance system should be improved by adopting and applying new and efficient maintenance trends, such as predictive and proactive maintenance. This essentially involves on-line (rotation equipment state monitoring – temperature, vibrations, noise) and off-line diagnostic methods. To control and manage the operation of the systems employed at the EPS open cast mines, production processes management will be harmonised and modernised. STRATEGIC AND DEVELOPMENT PROJECTS 41 DISTRIBUTION SYSTEM 42 DISTRIBUTION NETWORK DEVELOPMENT Development of electricity distribution network is planned in accordance with the anticipated consumption growth and the needs for more efficient operation of electricity distribution network and reduction of losses. Studies of perspective network development 110. 35 and 10 kV developed for the demand area of all corporate enterprises for electricity distribution define priorities and development directions. It is necessary to construct missing substations and power lines with voltage level 110 and 35 kV. The reconstruction is planned, as well as modernization of the existing sub-station, including replacement of outdated electrical equipment, capacity increase but also modernization of all facility modernization with introduction of automation. The main objective of these activities is reliable level of increase as well as efficiency through the reduction losses. PROJECT VALUE Total value of funds for necessary constructions and reconstructions of electricity distribution network is EUR 260 million. PROJECT STATUS The project is implementing in continuity. IMPLEMENTATION MANNER Loan/own funds CONSTRUCTION DURATION 5–6 years STRATEGIC AND DEVELOPMENT PROJECTS 43 DISTRIBUTION SYSTEM METERING EQUIPMENT PROCUREMENT As the objective of the company is to boost consumer satisfaction and to more effectively control the distribution system and to achieve the goals of the EU 20/20/20 in practice, and in order to help develop the power system and continue the on-going deregulation process, EPS has decided to incorporate the concept of so-called “smart grids” into their development plans as one of the most significant investment in the future. SMART METERING will be part of new networks - the project already started by EPS. In the forthcoming years, the company plans to replace the existing metering devices with the most advanced units (AMM) that will ensure more accurate remote metering, cutting off and managing consumption. About 2.5 – 3 million of meters will be replaced. The first phase of the project implementation including remote heating system procurement with about 250,000 and 7,000 metering groups is in progress. PROJECT VALUE EUR 80 million PROJECT STATUS Tender document preparation for metering equipment procurement is in progress (phase 1). IMPLEMENTATION MANNER EBRD loan / EIB THE FIRST PHASE DURATION 1 - 2 years IMPLEMENTATION PERIOD 8 - 10 years In the near future, distribution companies of PE EPS will have to deal with a large number of requests from new producers of energy from alternative sources (photovoltage sources, biomass, windturbines, small HPPs, cogeneration...) for connection to the network. This is supposed to increase the energy efficiency of the power system, so distribution companies will have to become an active player in the control of its part of the system. 44 STRATEGIC AND DEVELOPMENT PROJECTS 45 ENVIRONMENT PROTECTION 46 In the course of the last decade of the last century, environmental protection was unfortunately placed in the background. Consequences have left traces in the immediate environment of EPS facilities, as well as in trans-border transmission of negative impacts. Combustion products such as sulphur and nitrogen oxides together with dust are released into the air and together with atmospheric precipitation they form acid rains having an adverse impact on plant life. One of the most significant changes compared to the previous period, with multi-dimensional importance for Serbia and its energy sector and thereby Electric Power Industry of Serbia is surely the coming into force of the Contract on the Founding of Energy Community. By ratifying this Contract in the National Assembly, Electric Power Industry of Serbia has undertaken an obligation of full application of Acquis Communautaire Environment (i.e. full application of EU standards in the field of environment, related to the energy field). By applying this document, Serbian energy sector has de jure become a part of EU in the field of environment protection. Obligations from the contract promote the idea of accelerated liberalisation of electricity market in the countries of Eastern Europe at the same level as in EU. In addition to this, this market should be fully opened for all consumers by 2015, with the deadline for application of environmental protection regulations by 2017. Having in mind that EPS is the largest company in Serbia, as well as the nature of technology and spatial expansion and the fact that the large part of economy is related to EPS and that about 70% of all environmental problems are related to the energy sector, i.e. EPS, it is not difficult to conclude that reform in this field within Electric Power Industry of Serbia is firmly connected to the same reforms at the state level. It should be noted that 30% of all obligations of the country in terms of EU harmonization and accession is related to environment protection. In this respect, EPS has made an action plan for the settlement of environmental issues verified by the Management Board of the company. The Serbian Government has accepted this Plan as an integral part of the power sector development plan, as well as through the implementation programme of Energy Sector Development Strategy by 2015 adopted by the Government and the National Assembly of Serbia and National Environmental Action Plan, National Sustainable Development Strategy and a series of other relevant documents. Under the Action Plan some EUR 1.2 billion have been planned for flue gas desulphurization (necessary investment level is about EUR 530 million for existing power plants) and full reconstruction of all electrostatic precipitators together with alignment of their operation with emission levels prescribed by EU standards. In addition to this, replacement of ash and slag transport technology was also planned, as well as introduction of continuous harmful gases monitoring system. Anticipated sources for implementation include: own funds, loans, EU grant funds, donors, Environment Protection Fund of the Republic of Serbia and National Investment Plan. STRATEGIC AND DEVELOPMENT PROJECTS 47 ENVIRONMENT PROTECTION The forthcoming period is marked with harmful substance emission alignment with EU requirements related to air emission reduction of harmful substances, especially Directive 2001/80/EC as well as other directives related to environment protection in the energy field. Article 4 of the Contract on the Founding of South–East Europe Energy Community anticipates full recognition of Acquis Communautaire Environment. According to the set of environmental laws which became effective at the end of 2004, PE EPS is under obligation to align operation of its facilities with their provisions by 2015. This means that environmental measures will have to be applied in accordance with best available techniques (BAT) under national regulations harmonised with EU regulations for new facilities and those undergoing revitalisation: - Flue gas desulphurisation and de-nitrification plants as well as high efficiency electrostatic precipitators will have to be installed in new thermal power facilities and those undergoing revitalisation, together with waste water treatment plans and favourable ash and slag handling systems; - Within the mining sector, reclamation activities need to be implemented consequently, together with introduction of new methods, including selective mining and disposal of top soil; - Operational adaptation to the requirements of the UN Framework Convention on Climate Change and the Kyoto Protocol, use of Clean Development Mechanisms (CDM) anticipated for support to sustainable development of the developing countries, as well as preparation for application of other flexible mechanisms and maximum use of waste materials (ash, gypsum, clay, gravel, sand, oil, rubber, alternative fuels, etc) created in the course of EPS activities as secondary raw materials Implementation of the following projects will be continued in the forthcoming period for the purpose of emission harmonization and BAT introduction for emission reduction into air and water: PROJECT I – RECONSTRUCTION OR REPLACEMENT OF THE EXISTING ELECTROSTATIC PRECIPITATORS Necessary funds for reconstruction of existing electrostatic precipitators of TPP Kostolac B and TPP Morava units amount to EUR 14 million PROJECT II – PRIMARY MEASURES FOR NOx EMISSION REDUCTION Necessary funds for introduction of primary measures on TPP units amount to EUR 85.3 million, of which EUR 60 million for emission reduction on units with the capacity over 300 MW PROJECT III – CONSTRUCTION OF FLUE GAS DESULPHURISATION PLANTS Necessary funds for flue gas desulphurization plant introduction aimed at SO 2 emission reduction on units of TPP Kostolac B and units A3–A6 of TPP Nikola Tesla A amount to EUR 535 million. PROJECT IV – RECONSTRUCTION OF EXISTING ASH AND SLAG TRANSPORT SYSTEM TO THE DISPOSAL SITE Necessary funds for introduction of new technology for ash and slag transport and disposal on units A3–A6 at TPP Nikola Tesla A amount to EUR 50 million. PROJECT V – OTHER AUXILLIARY AND COMPLEMENTARY PROJECTS 48 Replacement of existing hydraulic transport of ash and slag technology with thick slurry transport technology (ash–water ratio – 1:1) will enable reduction of adverse impact of TPP Nikola Tesla B disposal sites on environment By implementing modernization of existing and installation of new measures for air and water protection on thermal power facilities of Electric Power Industry of Serbia, operation of these facilities will be aligned with the requirements of domestic and EU regulations, with simultaneous fulfillment of undertaken obligations under the signed Contract on the Founding of South-East Europe Energy Community related to emission reduction (ELV) of harmful substances. Thereby, one of the conditions for obtaining of an integral permit for operation of thermal power facilities will be fulfilled while performance of activities after 2015 i.e. 2017 will be enabled.. STRATEGIC AND DEVELOPMENT PROJECTS 49 RENEWABLES 50 More extensive and efficient use of “green” energy is targeted by the Serbian Energy Development Strategy, with careful and efficient use of the strategic resource – coal. One of the PE EPS priorities involves the modernisation of the existing small hydropower plants, construction of new small hydropower plants, wind plant and solar plant development, with the analysis of potential sites. Municipal waste incineration plant projects are also being considered in cooperation with cities of Uzice and Kragujevac. STRATEGIC AND DEVELOPMENT PROJECTS 51 RENEWABLES SMALL HYDROPOWER PLANTS PE EPS plans to finalise the construction of the Prvonek SHPP (900 kW) independently in September 2011, located within the Prvonek dam close to Vranje. This project is valued at EUR 1.4 million, while the annual generation of this small hydropower plant would be from 2.5 to 3 million kWh. In addition to the Prvonek SHPP, EPS plans to build 17 new SHPPs and to revitalise 15 existing SHPPs. Together with the Prvonek SHPP this makes the total of 33 SHPPs, with the capacity of 82.5 MW. The 33 SHPPs have been divided into four groups: 1. SHPPs owned by EPS – revitalisation of 15 SHPPs 2. SHPPs on water management reservoirs which can also be used to generate electricity – construction of 9 SHPPs (including the Prvonek SHPP), 3. SHPPs on the sites of existing HPPs and TPPs – construction of 5 SHPPs, 4. SHPPs on other sites – construction of 4 SHPPs. Phase 1 will cover the revitalisation of 23 SHPPs. 52 32 SMALL HYDROPOWER PLANTS To modernise the 15 existing SHPPs owned by EPS and to construct 8 new SHPPs on the sites of water management reservoirs with potential energy use (Prvonek SHPP funded by EPS excluded) an application was sent to the European Bank for Reconstruction and Development for EUR 45 million loan approval. There are plans to finish the detailed revitalisation and modernisation design for these SHPPs during 2011, with subsequent equipment supply tenders launching. Plans have also been made to build 5 additional mini HPPs on the sites of the existing EPS facilities, with the total capacity of 5 MW and annual generation of some 19 million kWh. Four sites have already been selected for this purpose. STRATEGIC AND DEVELOPMENT PROJECTS 53 RENEWABLES WIND PE EPS has in the past several years initiated the analysis of other renewable energy sources in addition to small hydropower plants. To this end, wind potentials have also been investigated. Investigations have so far been carried out on three sites, while the site at the Kostolac Mining Basin has shown the highest profitability level. Once the investment and technical documentation is finalised, the wind farm construction will be initiated. 54 STRATEGIC AND DEVELOPMENT PROJECTS 55 Published by: PE Electric Power Industry of Serbia Public Relations Sector 2 Carice Milice St., Belgrade, Serbia www.eps.rs, [email protected] For the publisher: Dragomir Marković, General Manager Design: Svetlana Petrović Printed by: Stojkov, Novi Sad Circulation: 1000 Belgrade: 2011 CIP - Каталогизација у публикацији Народна библиотека Србије, Београд 658.1:621.31(497.11) ELEKTROPRIVREDA srbije (Beograd) Strategic and Development Projects of the Electric Power Industry of Serbia / [preveli Srđan Bugarić i Marina Sretenović]. Belgrade : Electric Power Industry of Serbia, Public Relations Sector, 2011 (Novi Sad : Stojkov). - 56 str. : ilustr. ; 24 cm Izv. stv. nasl.: Strateški i razvojni projekti Elektroprivrede Srbije. - Tiraž 500. ISBN 978-86-7302-031-0 a) Електропривреда Србије (Београд) COBISS.SR-ID 185841932 56