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STRATEGIC AND DEVELOPMENT PROJECTS OF THE 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 favo-rable market conditions, with con-stant 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 prof-itable company, competitive in the European market and with the con-siderable in� uence within the region, recognized as a reliable partner to do-mestic and international companies.

PE “Electric Power Industry of Serbia”

CONTENT

Brie� y About PE “Electric Power Industry of Serbia”.......... 4NEW PROJECTS ................ 10

MODERNIZATIONS AND RECONSTRUCTIONS ................ 34

DISTRIBUTION SYSTEM ................ 42

ENVIRONMENT PROTECTION ................ 46

RENEWABLES ................ 50

STRATEGIC AND DEVELOPMENT PROJECTS 3

4

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 man-agement, 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.

Brie� y About PE “Electric Power Industry of Serbia”

5STRATEGIC AND DEVELOPMENT PROJECTS

Installed capacities:

Public Enterprise “Electric Power Industry of Serbia” operates the power system with the following capacities:

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, to-gether with recognition of already imitated activities, planned documents of the Electric Power Industry of Serbia established basic objectives of business policy which should en-able:

- Reliable electricity buyers supply under the most favorable economic conditions

- Economic – � nancial 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 owner-ship transformation through the strategic partnership

- Opening of domestic, integration into the regional electricity market and establish-ment of in� uential position within the region

- Environmental protection improvements, in accordance with the national and EU regulations

- Development activities oriented towards renewable energy resources.

№. Capacities Unit With capacities at Kosovo and Metohija

Without 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 transformers in distribution companies

MVA - 24,736.75

5 Number of consumers Million - 3.5

6

INTENSIVE INVESTMENT CYCLE

Implementation of the PE EPS objectives depends on an entire group of factors, primarily orientation and plans de� ned 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 in-vestments 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 ap-proximately 20%

- Higher e� ciency and competitiveness increase

- Replacement of old, ine� cient 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 (revi-talization 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 require-ments, some EUR 620 million on average should be invested annually in cooperation with strategic partners.



PLANNED PROJECTS WITHIN THE EXISTING GENERATION CAPACITIES

Projects which need to be � nalized 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 e� ciency 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 capac-ity increase;

- Finalization of revitalization of the units B1 and B2 at the Kostolac TPP with possible capacity increase;

- Construction of the � fth 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 con-siderable 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 � red CHPs through installation of gas tur-bines, 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.

8

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 sup-plied electricity quality.

- Revitalization, reconstruction or replace-ment of the existing outdated equipment;

- Reconstruction of the existing low voltage levels (35, 20, 10 и 0.4 kV), which is in ac-cordance with the local electricity demand increase and also with increase of supply quality;

- Improvement i.e. technological moderni-zation 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 manage-ment within distribution companies;

- Modernization of the electricity collection system, telecommunication system, and other…



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 revi-talization. This implies the following:

- For new and thermal power facilities undergoing revitalization – high-e� ciency � ue 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 reacti-vated by introducing new methods, including selective mining and disposal of top soil;

- For hydropower plants – protection measures of reservoirs and riparian areas antici-pated by projects will have to be implemented;

- E� orts 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 � exible Kyoto Protocol mechanisms, usage of Clean Devel-opment Mechanism possibilities and development of GHG trading.

1010

NEW PROJECTS


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 ther-mal power units on existing or new locations. Coal reserves available in Serbia at the Kolubara and Kostolac Mining Basins present the ba-sis 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 continu-ation (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 di� erent sce-narios and optimization of Drina System development. It is also pre-paring 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 docu-ments 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.

12

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 con-tinuation 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.

NEW PROJECTS

Basic parameters of the Kolubara B TPP

Unit capacity 350 МW

Number of units 2

Boiler Combustion Engineering, � ow-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 e� ciency ratio (net) ≥37 %

13

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 � ring Kolubara lignite indicate implementation feasibility of the Kolubara B TPP construction.

IMPLEMENTATION MANNERStrategic partnership

PLANNED CONSTRUCTION BEGINNING2013

CONSTRUCTION DURATION4 – 5 years


14

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 � rst 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 loca-tion, 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 capac-ity 700 MW with observation of all environmental protection measures.

The � rst 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 � rst 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 � tted 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

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 e� ciency ratio (net) ≥ 40 %

NEW PROJECTS


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 e� ciency 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 pro� tability parameters of the facility are positive.

IMPLEMENTATION MANNER Strategic partnership


CONSTRUCTION DURATION4-5 years

16

Novi Sad CHP

Existing the Novi Sad CHP in cogen-eration operation regime generates electricity and heat for the heating of Novi Sad, as well as technological steam for the needs of Oil Re� nery. The � rst construction phase was � nalized in 1981 and the second in 1984. This facil-ity has been used in previous years dur-ing the coldest winter months for Novi Sad heating, as well as for the coverage of the Republic power system needs.

Modest e� ciency level of existing cogeneration facility, without steam re-heating, as well as high gas and fuel oil price have caused very restricted utilization of avail-able installed capacity and thereby low generation and income. Namely, due to insu� cient engagement and high � xed costs, electricity prices considerably exceed the price of kilo-watt-hour from thermal power plants � ring 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 house-holds and other consumers. Considering the above-mentioned multiple role of the Novi Sad CHP, it became necessary to � nd a new business model enabling its economically feasible operation and ful� llment 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 con-struction of the new gas–steam unit with the utilization of the existing location and infra-structure, it was concluded that the construction of the new cogeneration high capacity and e� ciency gas–steam unit possesses the highest cost-e� ectiveness level.

Key reasons for project implementation of the new gas-steam unit at the Novi Sad CHP include the following:

- High e� ciency level of imported natural gas in the cogeneration process of electric-ity 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 ful� llment of growing power system needs;

- Exceptionally low � xed operation costs of modern gas-steam plants;

- Ful� llment of the strictest environmental standards (considerably higher carbon-di-oxide emission compared to other fossil fuels, etc).

NEW PROJECTS


Economically most favorable results would be achieved through the construction of modern high-e� ciency gas-steam facility with the total capacity above 400 MW el, and high e� ciency 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 e� ciency of over 82%. Basic indicators of the considered facility to be installed in continuation of existing turbine hall are provided in the table below.

PROJECT VALUEInvestment value of this project, depending on � nal facility con� guration and the usage

level of existing infrastructure on the current location, would reach EUR 280 million, provid-ing the level of speci� c investments of 550 EUR /kWh.

PROJECT STATUSRetention of the cogeneration concept of electricity and heat in the context of invest-

ment capital attraction requires the formation of an institutional framework for long-term public interest protection in the � eld of energy supply, with simultaneous protection of fu-ture 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 assump-tions 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 proce-dure by the end of 2011.

PLANNED CONSTRUCTION BEGINNING 2012

CONSTRUCTION DURATION 2-3 years

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 e� ciency level 39.5%

Total e� ciency level of facilities in condensation operation regime approximately 58%

Total thermo dynamic e� ciency level of the facility higher than 82%

18

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 � rst 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 loca-tion, it became necessary to analyze possibilities and feasibility of construction continu-ation, 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 � rst 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 de-sign documents. During the � rst construction phase of the Kostolac B TPP some joint facili-ties 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 construc-tion, 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 � tted 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.

NEW PROJECTS


PROJECT VALUEInvestment–technical documents for the construction of unit B3 at the Kostolac TPP ana-

lyzed the construction of unit with the capacity of 350 MW, with net e� ciency 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 pro� tability parameters of the facility are positive.

PROJECT STATUSIt is predicted that this project will be implemented by the PE EPS, by providing of foreign

credit funds.

IMPLEMENTATION MANNER(own funds / loan)


CONSTRUCTION DURATION4-5 years

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 e� ciency ratio (net) ≥ 40 %

20

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 � ows reached 200 m3/s. Average annual � ow at the spring is 157 m3/s and at the con� uence 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 po-tential 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 hy-dropower facilities: three dam cascades on Drina (Buk Bijela, Foča and Paunci) and reser-voir–derivational the Sutjeska HPP on the river bearing the same name.

Overview of partition pro� les 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

TOTAL 54.4 237.9 797.3

NEW PROJECTS


PROJECT VALUEAccording to the above investment-technical documents developed in 2008, investment

value of all four hydropower plants has been estimated at EUR 435 million.

PROJECT STATUSConsidering the developed documents, it is certain that implementation activities should

be continued for hydropower facilities on the Upper Drina. Technical documents develop-ment and also development of conceptual designs with feasibility studies for all 4 predicted hydro power facilities is in progress.

IMPLEMENTATION MANNERIn 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.


PROJECT FINALISATIONSuccessively, starting from 2019 to 2022

22

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 up-stream 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, aim-ing to make the best use of the hydro-potentials, taking due account of the conditions re-quired for the operation of other assets located within the area a� ected by them.

According to the � ndings of the Outline Design and Pre-feasibility Study, the hydro-po-tential of the Middle Drina may be used to optimum bene� t by building three impound-ment 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 fol-lowing table:

PROJECT VALUEAccording to the abovementioned technical documentation, prepared in 2010, the in-

vestment costs of the proposed three hydro-power plants are estimated at EUR 819 mil-lion.

IMPLEMENTATION MANNERIn cooperation with Electric Power In-

dustry 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


PROJECT FINALISATIONSuccessively, from 2020 to 2023

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

TOTAL 321.0 1,197.0

NEW PROJECTS


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 capac-ity 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.

PROJECT VALUEFrom 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 FINALISATION2020

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

24

HPPs on the Ibar River

The technical documentation developed to date and endorsed by the adopted planning instruments of the Republic of Serbia identi� es the possibility of utilizing the hydro-poten-tial of the Ibar River between the towns of Raška and Kraljevo by means of a series of 10 cas-cade 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 hy-dro-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 De-sign, are presented in the following table:

Elaboration within the Conceptual Design indicates the possibility of increasing the in-stalled capacity of these HPPs, which would result in more e� cient utilization of the poten-tial.

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

NEW PROJECTS

Variant 1System of 10 run-of-river HPP

(with partial � ooding of roads)


PROJECT VALUEAccording to the abovementioned General Design of 2010, the investment cost of these

10 HPPs totals EUR 284 million.

PROJECT STATUSDevelopment of Preliminary Design with Feasibility Study is in progress.

IMPLEMENTATION MANNERWith Italian company SECI through formed joint company


PROJECT FINALISATIONSuccessively, from 2016 to 2021

26

HPPs on the Velika Morava River

The Velika Morava River, with a catchment area of over 37,000 km2, has an average � ow rate of over 230 m3/s. Its course is about 182 km in length, with an elevation di� erence 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 com-munities, large areas of farm land, the Kostolac coal mining basin and other economic struc-tures.

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 hydro-power 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 ef-forts 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

NEW PROJECTS


PROJECT VALUEAccording to the aforementioned technical documentation, the investment cost of these

� ve cascade HPPs is estimated at EUR 352 million. The construction duration for the Velika Morava HPP system is estimated at � ve years.

PROJECT STATUSPre-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 MANNERWith German company RWE through formed joint company


PROJECT FINALISATION Successively, from 2017 to 2020.

28

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 in� ow of water into the upper reservoirs, all energy is ob-tained by using water pumped from the lower reservoir, and the facility’s cost-e� ectiveness is based on the peak and base energy price di� erence. Prominent features include favora-ble morphological, topographic and geological conditions for establishing the upper reser-voirs, 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 capac-ity 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 speci� ed Phases I and II, while PSHPP Djerdap 3 with the Brodi-ca dam was speci� ed in 1990 at the level of outline design (general design).

NEW PROJECTS


PROJECT STATUSIn the feasibility analysis carried out in 2010, the investment costs of the technical solu-

tion proposed in the Conceptual Design were updated and the � gure amounted to about EUR 400 million. Construction works would last four years.

IMPLEMENTATION MANNERStrategic partnership / loan


PROJECT FINALISATION2020

Djerdap 3 PSHPPHydraulic Schema

30

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 OCMRadljevo Open cast mine is located in the western part of the Kolubara Mining Basin di-

rectly along the western border with Tamnava– West Field OCM. Coal mining on this open cast mine will unfold in extremely strati� ed 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, de� ning of equipment capacity parameters will represent a key moment in cost-e� ectiveness 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.

PROJECT VALUEIn 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 STATUSConsidering that prefeasibility study has been

adopted, further necessary documents should be de-veloped 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 Ra-dljevo OCM opening.

IMPLEMENTATION MANNERStrategic 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 CAPACITY3–4 years

Basic parameters of the Radljevo OCM

Coal type lignite

Mining reserves 341.4 mill.t

Calori� c value 6,306 - 7,728МЈ/t

Average calori� c 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

NEW PROJECTS


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 � oor elevations reaching up to -180 m and the dump site exceed-ing 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.

PROJECT VALUEInvestigation 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 STATUSExpert 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 MANNERLoan / own funds


CONSTRUCTION DURATION TO THE FULL CAPACITY5 – 6 years

Basic parameters of the Field E OCM

Coal type lignite

Mining reserves 331 mill.t

Calori� c value 7,087- 8,975 МЈ/t

Average calori� c 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

32

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 op-eration e� ciency increase. EBRD and KfW are considering the approval of the loan amount-ing 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 e� ciency and it will signi� cantly improve uni-formity 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.

NEW PROJECTS


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 As-sessment (ESIA), Stakeholder Engagement Plan (SEP) and Non technical Summary (NTS). All these documents, according to the rules prescribed by EBRD, are developed by the Consult-ant Firm – ARUP. It is expected that the loan will be approved, and � nal banks decision will be made in summer 2011.

IMPLEMENTATION MANNERLoan

PROJECT IMPLEMENTATION BEGINNING 2011

ACTIVITIES DURATION BY THE PROJECT FINALISTAION 4–5 years

3434

MODERNIZATIONS AND RECONSTRUCTIONS


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 up-stream 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 signi� cant electricity producer within EPS power system. Units are de-signed for base load operation of the power system and reach annual capacity generation of 8.3 bill. KWh.

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 de� ciency impact. Analysis (ECORAM) has been developed, by which measures and possibilities for capacity increase at the unit B2 are identi� ed. This document present base line for development of Preliminary Design, analyzing systems which have di-rect impact on the unit capacity increase.

Feasibility Study with the Preliminary Design, besides proposed measures for unit ca-pacity increase, also analyzes economic feasibility of the observed technical-technological solution within existing unit borders. This project anticipates bringing of all units and equip-ment into designed parameters with special measures and requirements for the unit capac-ity 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-techno-logical solution will be used, where eventual technical de� ciencies from the unit B2 will be considered.

PROJECT VALUEEstimated 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 STATUSNecessary 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 � ue gas desulphurization on both units B1 and B2 is anticipated by 2017.

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

Speci� c net consumption 9,685 kЈ/kW

Turbine manufacturer BB Switzerland and ALSTOM, France

Boiler manufacturer Rafako, Sulcer

Generator set manufacturer BBC Switzerland

36

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 signi� cant 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 com-missioned 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.

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 e� ciency increase is developed with ful� llment of the legal regulations from the � eld of environmental protection.

By application of the proposed activities on the units, their operational life will be ex-tended for the further 15 years.

PROJECT VALUEEstimated value of the necessary investments is about EUR 103 mill.

per unit.

PROJECT STATUSNecessary 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 � ue gas desulphurization plant (FGD) is planned, along with both units recon-struction by 2015.

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

Speci� c consumption (net) 11,514 (kЈ/kWh)

Turbine manufacturer Zamech, Poland

Boiler manufacturer SES, Slovakia

Generator set manufacturer ABB, Poland



HPP Bajina Bаšta

The Bajina Bašta HPP is located some 160 km from the Drina river con� uence into the Sava River. It was commissioned in 1966. After 40 years of continuous operation the revitali-zation works have been initiated in order to extend its operational life, increase its reliability and availability.

PROJECT VALUETotal funds necessary for the Bajina Bašta HPP revitalisation amount to EUR 73 million.

PROJECT STATUS

The � rst 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 expect-ed that the Bajina Bašta HPP capac-ity will increase for some 15% once all units have been revitalised.

Unit 2 revitalisation completion is planned for the beginning of Oc-tober 2011, Unit 3 for September 2012 and Unit 4 for August 2013.

Bajina Bašta HPP basic data (prior to revitalisation)

Total capacity (МW) 368

Number of units 4

Capacity per unit (МW) 92

Installed discharge (m3/s) 620

Guaranteed discharge (m3/s) 50

Maximum head (m) 70

Annual generation (GWh) 1,500

38

HPP Djerdap 1

The Djerdap 1 HPP is located some 943 km from the Danube river con� uence 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 re-placement) have been initiated primarily to extend its operational life, as well as to increase equipment reliability and availability.

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 e� ciency level was increased for 0.45% by selecting the new blade section.

Capacity and e� ciency level increase would chie� y result in the improved variable opera-tion of the Djerdap 1 HPP and annual generation increase of some 50 GWh.

PROJECT VALUE

Total funds needed to revitalise the Djer-dap 1 HPP have been estimated at US$ 168 million. US$ 100.5 million will be � nanced from the clearing debt of the Russian Fed-eration to the Republic of Serbia, while the remaining funds will be provided by EPS.

PROJECT STATUS

The � rst unit revitalisation is carried out based on the approved Detailed Design. Pre-liminary 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.

Djerdap 1 HPP basic data

Water shed area (km2) 817,000

Reservoir volume (k m3) 1.5

Live storage (k m3 ) 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



HPP Zvornik

Zvornik Hydropower plant is located on 100 km from the con� uence of Drina River to Sava River, commissioned in 1955. By the start of 2009 it has generated 23 TW h of elec-tricity. 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.

Feasibility study indicated that it is economically favorable to increase the discharge ca-pacity of the turbine, with corresponding capacity increase of generators and transformers. Through the increase of installed � ow 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 VALUETotal 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 STATUSFinancial funds are provided

and the contract is signed. Expect-ed construction work beginning is at the � rst quarter of 2012, and completion in 2017.

Basic parameters of the Zvornik HPP

Catchment area (km2) 17,423

Reservoir volume (106 m3) 23.4

Dam height (m) 42

Dam crest elevation (mnm) 164.00

Spillway capacity (m3/s) 9,000

Guaranteed � ow (m3/s) 50

Installed capacity (MW) 96

Number of generator sets 4

Installed � ow (m3/s) 620

Gross head (m) 22.6

Mean annual generation (GWh) 470

40

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 � rst 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. Conse-quently, 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.

For the purpose of operation life extension and equipment reliability and availability in-crease, preparation activities have been initiated for revitalization of this run-of-river hydro-power plant.

Feasibility study indicated that it is economically favorable to increase the discharge ca-pacity of the turbine, with corresponding capacity increase of generators and transformers. By increasing installed � ow 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.

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 � ow (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

Mean annual generation (GWh) 93.9 51.3 73.6 63 -74.8



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 Kos-tolac 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 unfa-vourable (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 compre-hensive revitalisation and modernisation of the coal and overburden equipment.

The existing maintenance system should be improved by adopting and applying new and e� cient maintenance trends, such as predictive and proactive maintenance. This es-sentially involves on-line (rotation equipment state monitoring – temperature, vibrations, noise) and o� -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.

4242

DISTRIBUTION SYSTEM


DISTRIBUTION NETWORK DEVELOPMENT

Development of electricity distribution network is planned in accordance with the antici-pated consumption growth and the needs for more e� cient operation of electricity distri-bution 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 dis-tribution de� ne 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-sta-tion, including replacement of outdated electrical equipment, capacity increase but also modernization of all facility modernization with introduction of automation. The main ob-jective of these activities is reliable level of increase as well as e� ciency through the reduc-tion losses.

PROJECT VALUETotal value of funds for necessary constructions and reconstructions of electricity distri-

bution network is EUR 260 million.

PROJECT STATUSThe project is implementing in continuity.

IMPLEMENTATION MANNERLoan/own funds

CONSTRUCTION DURATION5–6 years

44

METERING EQUIPMENT PROCUREMENT

As the objective of the company is to boost consumer satisfaction and to more e� ectively 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 develop-ment plans as one of the most signi� cant 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 o� and managing consumption. About 2.5 – 3 million of meters will be replaced.

The � rst phase of the project implementation including remote heating system procure-ment with about 250,000 and 7,000 metering groups is in progress.

PROJECT VALUEEUR 80 million

PROJECT STATUSTender document preparation for metering equipment procurement is in progress (phase 1).

IMPLEMENTATION MANNEREBRD loan / EIB

THE FIRST PHASE DURATION1 - 2 years

IMPLEMENTATION PERIOD8 - 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 e� ciency of the power system, so distribution companies will have to become an active player in the control of its part of the system.

DISTRIBUTION SYSTEM

4646

ENVIRONMENT PROTECTION


In the course of the last decade of the last century, environmental protection was unfor-tunately placed in the background. Consequences have left traces in the immediate envi-ronment of EPS facilities, as well as in trans-border transmission of negative impacts. Com-bustion 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 signi� cant changes compared to the previous period, with multi-dimen-sional 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 Commu-nity. 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 � eld of environment, related to the energy � eld).

By applying this document, Serbian energy sector has de jure become a part of EU in the � eld of environment protection. Obligations from the contract promote the idea of acceler-ated 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 technol-ogy 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 di� cult to conclude that reform in this � eld within Electric Power Industry of Serbia is � rmly 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 harmoniza-tion and accession is related to environment protection. In this respect, EPS has made an action plan for the settlement of environmental issues veri� ed 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 En-ergy Sector Development Strategy by 2015 adopted by the Government and the National Assembly of Serbia and National Environmental Action Plan, National Sustainable Develop-ment Strategy and a series of other relevant documents.

Under the Action Plan some EUR 1.2 billion have been planned for � ue gas desulphuriza-tion (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 harm-ful 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.

48

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 � eld. Article 4 of the Contract on the Founding of South–East Europe Energy Community antici-pates full recognition of Acquis Communautaire Environment.

According to the set of environmental laws which became e� ective 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 avail-able techniques (BAT) under national regulations harmonised with EU regulations for new facilities and those undergoing revitalisation:

- Flue gas desulphurisation and de-nitri� cation plants as well as high e� ciency electro-static 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 conse-quently, 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 � exible mechanisms and maximum use of waste materials (ash, gypsum, clay, gravel, sand, oil, rubber, alternative fuels, etc) cre-ated 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 Kos-tolac 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 � ue 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

ENVIRONMENT PROTECTION

49

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 ful� llment 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 ful� lled while performance of activities after 2015 i.e. 2017 will be enabled..


5050

RENEWABLES


More extensive and e� cient use of “green” energy is targeted by the Serbian Energy Development Strategy, with careful and e� cient use of the strategic resource – coal.

One of the PE EPS priorities involves the modernisation of the exist-ing 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.

52

SMALL HYDROPOWER PLANTS

PE EPS plans to � nalise 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 electric-ity – 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.

RENEWABLES


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 Devel-opment for EUR 45 million loan approval. There are plans to � nish 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.

54

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 pro� tability level. Once the investment and technical documentation is � nalised, the wind farm construction will be initiated.

RENEWABLES

56

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 публикацијиНародна 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

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