Proposal Date: 17.February.2011
Proposed Beginning: 1.June.2012
Planned Duration (in months): 12
Project Value: US $ 15.2412 million (12,000,000.00 EUR)
Project Status: Proposal
Reference Number: PENE2216
Background and Justification: Introduction:
Public Enterprise Electric power industry of Serbia (PE EPS) was established by the Decision of the Government of Serbia which entered into force on 1 July 2005 (100% ownership of the Republic of Serbia). According to capital evaluation and with a staff of 34,726 employees (including employees from Kosovo and Metohija) as of 31 December 2009, Electric Power Industry of Serbia is the largest enterprise in the country.
Vertically integrated enterprise comprises of 11 corporate enterprises. (EPS cannot manage its facilities at Kosovo and Metohija as of June 1999): facilities for electricity generation, facilities for coal production, processing and transport, electricity distribution
Installed capacity of EPS power plants amounts to the total of 8,359 MW, as follows:
in lignite-fired thermal power plants-5,171 MW
in gas-fired and liquid fuel-fired combined heat and power plants -353MW
in hydro power plants-2,835 MW
EPS operates three power plants of total capacity 461 MW which are not in its ownership.
Electric Power Industry of Serbia (EPS) greatly influences the natural environment with its activities: coal production, electricity generation, distribution and trade.
From 2000, EPS has undertaken a series of actions aimed at improving the operation of thermal units, as well as increasing their availability and reliability. Between 2004 and 2010, under major overhauls and regular overhauls, special attention has been paid to ESP reconstruction, oriented to bringing their output concentrations to ELVs for dust (=50mg/Nm3). ESPs of the following units were reconstructed: A1, ?2, ?4, ?5 and ?6 – Nikola Tesla A TPP, A5 – Kolubara A TPP and A1 and A2 – Kostolac A TPP. The above ESP reconstructions were financed from own funds, loans, the Serbian Environment Protection Fund, and IPA fund donations.
In addition, ash and slag handling systems on EPS TPPs were also reconstructed – B1 and B2 Units – Nikola Tesla B TPP, A5 Unit – Kolubara A TPP and B1 and B2 Kostolac B TPP by own funds, EAR donations, EBRD and KfW loans and the Serbian Environment Protection Fund.
Explanation of the problem
In accordance with the Serbian EU Association and Harmonization Policy, the Electric Power Industry of Serbia opted for giving the highest priority to the observation of the EU environmental standards.
Every year over 7 million tons of coal is combusted at TPP Kostolac A and B, and as a combustion product, over 4.000.000 Nm3 of flue gas per hour occurs.
Equipment for dust treatment in flue gases – electrostatic precipitators (ESP) was installed in the Kostolac B TPP as an air protection measure when this power plant was constructed in 1988-1991 without flue gas desulphurisation and de-nitrificati