Focus on Energy, 2010 - Karanovic & Nikolic

in the Kolubara and Kostolac basins. The opening of new mines facilitating the supply of coal tonew TPPs. The Construction of TPPs which will use imported fuels, primarily imported gas, and thereconstruction of existing power plants.combined production of both heat and electricity.ily,thermal power plants. The Energy Program envisages that the EPS should allocate around EUR1.2 billion for these purposes.energy sector will require investments in the modernization, revitalization, improvement and theextension of the electric power transmission grid which is currently outdated. Its capacities are becomingincreasingly insufficient to cover the domestic consumption of electricity which is expectedto increase in the coming years.PROJECTSGerman company RWE AG (“RWE”). This lays a foundation for the cooperation between the twoparties in the construction of the hydropower plant “Djedrap III” 1 and the cascade HPPs on the riverMorava and the river Drina which are located on the border with the Republic of Srpska. The estimatedvalue of this investment is EUR 5 billion.19structionof the thermal power plants Kolubara B 2 and TENT B3 3 . The estimated value of investmentis EUR 1.6 billion.cooperation between the two countries in the development of new capacities for the production ofelectricity from renewable sources of energy. This included the construction of hydropower plantson the rivers Ibar, Drina and Sava (with a total estimated power potential of 589.2 MW) and smallHPPs and wind farms (with a total estimated power potential of 500 MW). In November 2009, theSerbian Ministry of Mining and Energy and the Italian Ministry of Economic Development and theItalian Ministry for Environment and Protection of the Land and Sea, signed two agreements whichset out the foundation for the establishment of a system for mutual recognition of green certificates,the cooperation of the national transmission grid operators in the improvement of the Serbiansystem for the transmission of energy, and the development of interconnections between theSerbian transmission grid and the transmission grids of the neighbouring countries. In June 2009,national producers of energy, Serbian EPS and the Italian company “Seci Energia S.p.A” signed apreliminary agreement on the cooperation between the companies regarding the construction ofHPPs on the river Ibar and the river Sava (and the possible extension of the project to HPPs on theriver Drina).FOCUS ON ENERGYthe Chinese National Corporation for the Import and Export of Machinery signed a protocol on thecooperation between the two companies in a USD 1.2 billion project for the revitalization of units1 Plans for the construction of the third reversible HPP “Djerdap III” on the Danube river were developed back in the seventies but these plans wereeventually abandoned. The estimated installed power of “Djerdap III” is some 2400 MW and if constructed it would double the production of electricityin Serbia. The estimated cost of construction is somewhere in the region of EUR 6 billion.2 The TPP “Kolubara B” with an installed power of 2x350 MW is located some 40 km southwest of Belgrade, near to the Kolubara coal basin. Itsconstruction started back in 1984 but due to the break-out of war in ex-Yugoslavia, it was never finished. The estimated value of the investment neededto complete the TPP “Kolubara B” is EUR 600 million.3 The new unit of the TPP “Nikola Tesla” with the installed power of 700 MW located on the right bank of the river Sava, 50 km upstream of Belgrade.The estimated value of the investment in the construction of TPP TENT B3 is EUR 900 million.