Die approbierte Originalversion dieser Diplom-/Masterarbeit ist an der Hauptbibliothek der Technischen Universität Wien aufgestellt (http://www.ub.tuwien.ac.at).

The approved original version of this diploma or master thesis is available at the main library of the Vienna University of Technology (http://www.ub.tuwien.ac.at/englweb/).

MScProgram RenewableEnergyinCentralandEasternEurope

Osmotic Power - A Promising Renewable Energy Source for ? AnAnalysisofthePotentialforPressureRetardedOsmosisinCroatia

AMaster’sThesisSubmittedfortheDegreeof “Master of Science”

Supervisedby Ao.Univ.Prof.Dipl.Ing.Dr.techn.ReinhardHaas Mag.WernerKlein 7804384 Vienna,September2010

MScProgram RenewableEnergyinCentralandEasternEurope

Affidavit

I, Werner Klein ,herebydeclare

1. thatIamthesoleauthorofthepresentMasterThesis,"OsmoticPower–A PromisingRenewableEnergySourceforCroatia?", 120pages,bound,andthatIhavenotusedanysourceortoolotherthanthose referencedoranyotherillicitaidortool,and 2. thatIhavenotpriortothisdatesubmittedthisMasterThesisasanexamination paperinanyforminAustriaorabroad.

Vienna,September10,2010______ Mag.WernerKlein

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pagei MScProgram RenewableEnergyinCentralandEasternEurope

I Abstract

Osmotic Power is a completely renewable and emissionfree energy source, and PressureRetardedOsmosis (PRO)isoneofthepossibleconversiontechnologies. The development to the current state of PRO has been led by Norway’s Statkraft S.A.andademonstrationplantwasopenedinTofte,NorwayinNovember2009. ThegoalofthisstudyistoexaminethePROtechnologyinorderto:

• Understand and describe the principles, processes components and preconditions, • Determine the theoretical, technical and realisable potential and analyse the supportingandlimitingfactorsforaPROimplementationinCroatia, • Analyse and estimate the economic parameters for a business case scenario andpossiblyapplythesetoapotentialsiteforaPROpilotpowerplant. Withinformationavailablefrompublicsources(internet,scientificarticles),andafter direct communication with Statkraft and other experts from relevant industries, probable investment and production costs are calculated for various scenarios. Finally,apromisingsiteforaPROpilotplantimplementationinCroatiaisselected, based on favourable environmental and infrastructure conditions. Based on a site visit, some ROI calculation parameters are adapted and the specific investment case analysed. The calculations’ results are put in relation to suggested feedin tariffs that would support the PRO dissemination within the Croatian subsidy frameworkforrenewableenergy. Thecalculatedcostsofenergy(LCoE)forPROarefoundintherangebetweenthe costs of wind and photo voltaic, although key technology components like membranes are still in an early stage of development. In order to reach the expectationsstatedbyStatkraft,thesecalculatedcostswillhavetohalfuntil2020. Themainfuturechallengewillbetoincreasethespecificpowerofmembranesand todecreasetheirspecificcosts.Enormousproductioncapacitiesformembraneswill be required to build PRO power plants with capacities relevant for utilities. The necessary growth of the production capacity can in fact create the steep learning curvethatisrequiredforthepredictedcostdecrease.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pageii MScProgram RenewableEnergyinCentralandEasternEurope

II Table of contents

AFFIDAVIT I I ABSTRACT II II TABLE OF CONTENTS III III LIST OF FIGURES VI IV LIST OF TABLES VIII V LIST OF ABBREVIATIONS AND SYMBOLS X 1. INTRODUCTION 1

1.1 POWER WATER – WATER POWER 1

1.2 THE SALINITY POWER PROJECT 2

1.3 THE WORLD ’S FIRST OSMOTIC POWER PROTOTYPE 3 2. OBJECTIVES 4 3. THE OSMOTIC POWER TECHNOLOGY 5

3.1 CHEMICAL POTENTIAL ENERGY 5

3.2 OSMOTIC PRESSURE 6 3.2.1 Definition 6 3.2.2 Calculation of Osmotic Pressure 6 3.2.3 Occurrence and Application of the Osmotic Effect 7 3.2.4 Osmotic Processes through Membranes 7 3.2.5 Reverse Osmosis and Desalination 8

3.3 CONCEPTS OF SALINITY POWER GENERATION 9 3.3.1 Reverse Electro-Dialysis (RED) 9 3.3.2 Pressure Retarded Osmosis (PRO) 10 3.3.3 Comparison of Technologies (PRO, RED) 11 3.3.4 Non-Membrane Based Processes 12 4. PRESSURE RETARDED OSMOSIS (PRO) PROCESS FOR POWER GENERATION 14

4.1 PRO BASICS AND PROCESS 14 4.1.1 Osmosis Power Potential 14 4.1.2 Pressure retarded Osmosis Process Details 18

4.2 PRO CRITICAL COMPONENTS 20 4.2.1 Membranes 20 4.2.2 Energy Recovery Devices (Pressure Exchanger) 25

4.3 PRO PROCESS PARAMETERS 26

4.4 EXPECTED SCALING EFFECTS 27

4.5 PRO PLANT CONCEPTS 30

4.6 ENVIRONMENTAL INFLUENCES AND CHALLENGES 31 4.6.1 Plant size 31 4.6.2 Water Quality 32

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pageiii MScProgram RenewableEnergyinCentralandEasternEurope 4.6.3 Access Points 32 4.6.4 General Water Usage and Residual Flow 37

4.7 LEGAL PERSPECTIVE 38 4.7.1 Renewable Energy Directive 2009/28/EC 38 4.7.2 Patents 39 5. CROATIA AND ITS SUITABILITY FOR PURSUING OSMOTIC POWER PLANT PROJECTS 40

5.1 GENERAL COUNTRY INFORMATION 40 5.1.1 Facts and Figures 40 5.1.2 Croatia and the European Union 41 5.1.3 Croatia in the International Community 42 5.1.4 Croatia’s Economic Situation and Investment Climate 42 5.1.5 Environmental Situation and Regime 44 5.1.6 Environmental Impact Assessment 45 5.1.7 Protected Areas 47

5.2 ELECTRICITY MARKET AND CONDITIONS 49 5.2.1 Electric Power Sector and Market Players 49 5.2.2 Electricity Supply, Demand and Price Levels 51 5.2.3 Consumption Trends and Supply Strategies 53 5.2.4 Grid and Grid Access 55 5.2.5 RES-E Policy and Framework 57 6. POTENTIALS FOR OSMOTIC POWER IN CROATIA 60

6.1 DEFINITIONS 60

6.2 THEORETICAL POTENTIAL FOR PRO 60 6.2.1 Hydrological Situation and Discharge 61

6.3 TECHNICAL POTENTIAL 63 6.3.1 Further Definitions and Specification 63

6.4 REALISABLE POTENTIAL 65 6.4.1 Introduction of the “Reasonable Potential” 65 6.4.2 Analysis of Croatian Rivers’ Discharge 66 6.4.3 Reasonable Potential = Total Realisable Potential 76 6.4.4 Realisable Potential up to the Year 2030 77 6.4.5 Existing or Planned Hydropower Projects Impacting PRO Projects 79 7. PRO PROJECT AND PERFORMANCE CHARACTERISTICS 81

7.1 CHARACTERISTICS OF THE PRO POWER GENERATION 81 7.1.1 Base Load Supply 81 7.1.2 Expected Maintenance Demand 81

7.2 CHARACTERISTICS OF A PRO PROJECT DEVELOPMENT 81 7.2.1 Complex decision making and certification process 81

7.3 A SIMPLIFIED ROI-MODEL 82

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pageiv MScProgram RenewableEnergyinCentralandEasternEurope 7.3.1 Input Parameters for ROI Scenarios 83 7.3.2 Best Estimate Scenario 84 7.3.3 Worst Case Scenario 87 7.3.4 Best Case Scenario 88

7.4 SENSITIVITY ANALYSIS FOR SELECTED PARAMETERS 89 7.4.1 Sensitivity of Capital Expenses (Best Estimate Scenario) 89 7.4.2 NPV Sensitivity to Operating Costs and selected Indices (Best Estimate Scenario) 90

7.5 REQUIRED SUBSIDIES – FEED -IN TARIFFS 90 8. INVESTIGATING A FEASIBLE PILOT SITE: HE DUBROVNIK 94

8.1 SITE DESCRIPTION 94

8.2 SITE APPLICABILITY FOR A PRO POWER PLANT 97 8.2.1 Fresh Water 98 8.2.2 Sea Water 98 8.2.3 Infrastructural 98 8.2.4 Limiting factors 98

8.3 SITE PARAMETERS AND ROI FOR A 5 MW PRO PLANT 99 9. SUMMARY 103

9.1 CROATIA ’S PRECONDITIONS FOR RENEWABLE ENERGY 103

9.2 HYDROLOGY PRECONDITIONS FOR POWER GENERATION 103

9.3 HYDROLOGY CONDITIONS FOR PRO POTENTIAL CALCULATION 104

9.4 REASONABLE AND REALISABLE PRO POTENTIAL IN CROATIA 104

9.5 INHIBITORS FOR THE REALISABLE PRO POTENTIAL 105

9.6 THE STATE OF PRO TECHNOLOGY AND ITS ECONOMICS 105

9.7 POTENTIAL PILOT SITE SELECTION AND ITS ECONOMICS 106 10. CONCLUSIONS 108 11. REFERENCES 110 12. APPENDIX 120

12.1 POTENTIALS AND DEVELOPMENT SCENARIO 120

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pagev MScProgram RenewableEnergyinCentralandEasternEurope

III List of Figures

Figure1:Hydropowerplant,1895 1 Figure2:StatkraftdemonstrationplantinTofteNorway 3 Figure3:Historyandfutureofosmoticpower 3 Figure4:conversionofchemicalpotentialenergyintoheatandlight 5 Figure 5: Schema of Forward Osmosis (FO), Reverse Osmosis (RO) and Pressure RetardedOsmosis(PRO) 8 Figure6:DesalinationwithReverseOsmosis–plantschema 9 Figure7:Schemaofareverseelectrodialysisprocess 10 Figure8:Schemaofapressureretardedosmosisprocess 11 Figure9:Averagepowerdensityandenergyrecovery,calculatedbyPostet.al.(2007)for PROandREDformixingseawaterwithriverwaterandformixingbrinewith riverwater 12 Figure 10: Membrane power, flux and energy recovery, calculated by Thorsen and Holt (2009)forPROunderspecifiedconditions 12 Figure11:Averagesalinityoftheworld'soceans 15 Figure12:ProcessschemaandparametersofthePROtechnology 18 Figure13:Transferredmassvs.timeforisobaricosmoticflowexperiments(left).Modelled andmeasuredwaterfluxandspecificpowerasfunctionsofpressure(right) 21 Figure14:Structuralmodelofamembrane(withpolarizationfilms) 21 Figure15:Spiralwoundmembrane 22 Figure16:Exampleforlargesizemembraneandcasing(Kochmembrane) 22 Figure17:TheAshkilon(Israel)desalinationplantwith30.000membranemodules 23 Figure18:Biofoulingovertimeinthefeedspacerlayerofaspiralwoundmembrane 24 Figure19:Pressureexchangerschemaandexample(ERI) 25 Figure20:SpecificcostsofwaterproducedbyROdesalinationplants 27 Figure21:ROmembranesuppliers’marketshares20089 29 Figure22:SketchofaPROplantatsealevel 30 Figure23:Influencingparametersonsalinityinestuariesandpositioningofwaterintake locations 33 Figure24:TheKrkaestuary;yellowdotshowsasmeasurementpoint 34 Figure25:SalinityatSkradinasafunctionofdepthandmonth 35 Figure 26: Growth of rainbow trout in fresh water (solid) and in Krka estuary brackish water 36 Figure27:Croatia's EconomicFreedomIndex &details 43 Figure28:UnicreditResearchassessmentforCroatiaApril2010 44 Figure29:ProtectedareasinCroatia 48 Figure30:ReservedareasforNatura2000inCroatia 48 Figure31:Electricitygenerationcapacitymix2007 51 Figure32:Hydro(HE)andthermal(TE)powerplantsofHEP 51

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pagevi MScProgram RenewableEnergyinCentralandEasternEurope Figure33:ElectricitydemandandHydropowerproductionpercapitainHrvatskavs.EU 27countries 52 Figure34:Electricitypricesforhouseholdcustomersin€/KWhincl.network,taxesand fees 52 Figure35:ElectricitypricespercustomersegmentinHRK/KWhincl.taxesandfees,excl. network 53 Figure36:Pricestructureforcustomers(households),secondhalfof2008 53 Figure37:Finalelectricitydemandaccordingtovariousscenarios 53 Figure38:Predictedgenerationcapacityinstalledandneeded(left)andresultinggapuntil 2030(right) 54 Figure39:Suggested(white)scenariofornewgenerationcapacityuntil2020 55 Figure40:Newcapacityandcapacitydemandaccordingtosustainable"white"scenario 55 Figure41:TransmissionnetworkandproductionfacilitiesoftheCroatianelectricpower system 56 Figure42:RESeprojectswithfinalrulingsofHERA,2008 58 Figure43:WaterbasinsinCroatiaandsurfacewaterstotheAdriaticSea 61 Figure44:AveragedischargeofsmallCroatianrivers1999to2008 68 Figure45:Tenyearsaverageflowasthepercentageofthemaximumflowmeasured 68 Figure46:Flowpatternsof6smallrivers(averageflowspermonthsandyears) 69 Figure 47: Achievable energy as a function of the rated capacity (installed turbine) per smallriver 70 Figure 48: Natural and artificial connections in the Trebišnjica river basin and potentialPROplant locationsinredcircles(fromupperleft:Neretva,, HEDubrovnik) 72 Figure49:Neretvadeltasatelliteview(GoogleMaps) 73 Figure50:Neretvamonthlyflowpattern1998–2003basedondailydatafromJadran 73 Figure51:andhydrologyandHESenjpipeline 75 Figure 52: Potentials for PRO and reasonable potential as % share of projected total consumption 77 Figure53:Apossiblescenariofortherealisablepotential 78 Figure54:HEPhydropowerplants 79 Figure55:Sensitivityofinvestmentcostsinthebestestimatescenario 89 Figure56:SensitivityofNPVtooperatingcostsandindices(bestestimatescenario) 90 Figure57:PROLevelizedCostOfElectricityexpectationsfor2020 91 Figure58:NPVscenarioswithFeedinTariff=200€/MWh 92 Figure59:NPVscenarioswithFeedinTariff=300€/MWh 93 Figure60:TheTrebišnjicacatchmentarea 149 94 Figure61:LongitudinalsectionoftheTrebišnjicaHPsystemstructure 95 Figure62:Powerhousestructureplotplan 96 Figure63:Powerhouseandlayout 96 Figure64:Bird'seyeviewoftheplantanddetailedviewofthetailwaterdischarge 97 Figure65:NPVforHEDubrovnik5MWPROplant 101

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pagevii MScProgram RenewableEnergyinCentralandEasternEurope

IV List of Tables

Table1:Estimationsofoceanpower[TW]andoceanenergydensity[metersofequivalent waterhead] 2 Table2:Seasalinityelements 14 Table 3: Lenntech calculator input table for water composition and average 11°C temperature 16 Table4:Lenntechcalculatoroutputosmoticpressure 16 Table5:Classificationofwaterqualitybasedonsalinity 17 Table6:OsmoticpressureoftheNeretvawater(Modric,meanvalues)usingtheLenntech onlinecalculator 17 Table7:Energyrecoverytechnologiesandmainindicatorslikeplanttotalenergysavings25 Table8:SelectedparametersofthePROtechnologyandprocess 26 Table9:StatisticaldataonNa+andCl–concentrationsinwaterattheNeretvamonitoring siteModric 32 Table10:SeawaterleveldeviationsforRovinj(NorthAdriaticSea)andDubrovnik(South AdriaticSea) 37 Table11:EUCroatiaaccessionnegotiationchapters–statusasofFebruary19th,201041 Table12:CollectionofCroatia’seconomicfiguresandforecastsbyRZBResearch 42 Table13:ListofNatureandNationalParks 47 Table14:Croatia'sElectricityBalance2008[GWh] 51 Table15:RESefeedintariffsfor2010withrelevancetothePROtechnology 58 Table16:AveragedischargetotheAdriaticSea 62 Table17:Basicconditionsforreasonablepotentialcalculationandresultsforsmallrivers71 Table 18: Realisable power and potential as a function of full load hours expected for Croatia’ssmallrivers 71 Table 19: Realisable power and potential as a function of full load hours expected for Neretva 74 Table20:RealisablepowerandpotentialasafunctionoffullloadhoursexpectedforHE tailwaters 75 Table21:Achievablepowerandenergyasafunctionoffullloadhoursexpectedfortotal Croatia 76 Table22:Capacityextensionprojectionscenario20102030 78 Table23:ParametersfortheROIcalculation 84 Table24:Bestestimatescenarioinvestmentcostsin€ 84 Table25:Bestestimatescenariooperatingcosts(static) 85 Table26:BestestimatescenariorevenueassumptionsandNPV 85 Table27:BestestimatescenarioROIfor30,20and12yearsin€ 86 Table28:Bestestimatescenariolevelizedcostofelectricityandspecificyield 86 Table29:WorstcasescenarioROIfor30,20and12yearsin€ 87 Table30:Worstcasescenariolevelizedcostsofelectricityandspecificyield 87 Table31:BestcasescenarioROIfor30,20and12years 88

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pageviii MScProgram RenewableEnergyinCentralandEasternEurope Table32:Bestcasescenariolevelizedcostsofelectricityandspecificyield 89 Table33:Listofparametersforatheoretical5MWPROplantatHEDubrovnik 100 Table34:InvestmentcostsofHEDubrovnik5MWPROplant 101 Table35:LevelizedcostsofelectricityfortheHEDubrovnik5MWPROplant 102

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pageix MScProgram RenewableEnergyinCentralandEasternEurope

V List of Abbreviations and Symbols

atm Atmosphere(pressure) BAU BusinessasUsual BiH Bosnia&Herzegovina d Day EIA EnvironmentalImpactAssessment FIT FeedinTariff FLH FullLoadHours FO ForwardOsmosis K Kelvin kPa KiloPascal KPI KeyPerformanceIndicator L Litre LCoE LevelizedCostofElectricity M Molality(solutionconcentrationinmol/Litre) OG OfficialGazette Pa Pascal(pressure) Π(Pi) OsmoticPressure ppm PartsPerMillion PRO PressureRetardedOsmosis P&L Profit&Loss PV PhotoVoltaics

Qavg AverageFlow(Discharge)[m³/s]

Qi InstalledFlowCapacity[m³/s] RED ReverseElectroDialysis RES RenewableEnergySource RESE RenewableEnergySourceforElectricity RO ReverseOsmosis ROI ReturnofInvestment R&D ResearchandDevelopment SWRO SeaWaterReverseOsmosis WACC WeightedAverageCostofCapital

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Pagex MScProgram RenewableEnergyinCentralandEasternEurope

1. Introduction

1.1 Power Water – Water Power

“With the oceans covering over 70% of the earth’s surface, they are the world’s largestcollectorandretainerofthesun’svastenergy–andthelargestpowerhouse intheworld.” 1 Ultimately, most energy sources can be attributed to the sun’s practically endless solarradiationreachingouttoourplanet:biomassthatgrowsviaphotosynthesis, wind that balances air temperature, moisture and pressure differences, sunshine that heats solar thermal panels or directly converts to electricity in photo voltaic installations. Simply said, with the heat of the sun the earth’s water reservoirs release vapour, which condenses to clouds that distribute the rain and fill the rivers. Utilizing this principle,waterhasbeentheprevalentrenewableenergysource(RES)since1895, when Nicola Tesla built Europe’s first hydroelectric power station at the Croatian riverKrka.Formorethanacenturyithasbeenthewater’spotentialenergythatwas exploited in numerous hydro power plants. The enormous power inherent in the natural, solardrivenwatercycleledtoan annualenergyproductionof~340 TWh in Europe and 3,310 TWh worldwide 2. Figure 1: Hydropower plant Krka, 1895 3 Butenergyinherentinwatercanalsopresentitselfinotherformsthanthepotential kineticenergy.Variousdiscoveriesandinventionsfromtheearly20 th centuryhave becometopicsofscientificresearchaftertheenergycrisisinthe1970s.Especially ocean power has emerged as a wide area of research, covering several RESE nichetechnologies.Untiltoday,manypublicationsfromthe1970sarecitedwhenit comestoanestimationofthepowerpotentialofthesetechnologies.E.g.,datafrom a study by Wick and Schmitt published in 1977, showing the power density of variousoceanphenomena,isstillwidelyreferencedinpresentationsandstudies. 1OceanEnergyCouncil 2Eurostat(2007),p.10 3Car(2006),p.117

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page1 MScProgram RenewableEnergyinCentralandEasternEurope Forexample,anarticlefrom2003about“RecentDevelopmentsinSalinityGradient Power”isreferencingthesamedatasource.Withthat,likemanyotherstudies,it picks up and underlines an early but strong conclusion: the power of salinity gradientsisthebiggestsourceofoceanenergy. Table 1: Estimations of ocean power [TW] and ocean energy density [meters of equivalent water head] 4

Formanyreasonsthispower,whichwasfirstpromotedin1954byR.E.Pattel 5,was completely untapped in an economic sense until recently. But the scientific communityhascontinuouslyelaboratedonprocedurestoexploitthesalinitypower.

1.2 The Salinity Power Project

From2001to2004,anEUfundedproject(contractnoENK6CT200100504)was launched and performed under the coordination of Statkraft to evaluate the possibilitiesofcommercial“Powerproductionfromtheosmoticpressuredifference betweenfreshwaterandseawater.….Theaimoftheprojectwastoevaluatethe feasibility of commercial power production from the entropy change of mixing of freshwaterandseawater.Thiswasdonethroughdevelopmentandoptimizationof membranesandmembranemodules,suitableforpressureretardedosmosis.The project made great progress in developing membranes especially designed for pressure retarded osmosis…. The partners in the Salinity Power project were Statkraft (Norway), SINTEF (Norway), Forchungszentrum GKSS (Germany), Helsinki University of Technology (Finland) and ICTPOL Instituto de Ciência e TecnologiadePolímeros(Portugal). 6”

4JonesandFinley(2003),p.2284 5Pattel(1954),p.660 6EUProjectbrochure(2004),p.1

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page2 MScProgram RenewableEnergyinCentralandEasternEurope

1.3 The World’s First Osmotic Power Prototype

OnNovember24,2009,Norway’senergyheavyweightStatkraftopenedtheworld's first osmotic prototype plant 7. The official opening was conducted by Her Royal Highness Crown Princess MetteMarit of Norway and was embedded in a well organized PR event that made the development knowntothewiderrenewableenergycommunity. The plant’s opening marked an important milestoneinthedevelopmentofthetechnology,as it will allow testing and proving the scaling up of the technology and the processes and the optimizing of the procedures and integration into theenvironment. Figure 2: Statkraft demonstration plant in Tofte-Norway Statkrafthaspublishedthemainstepsofresearchanddevelopmentaswellasthe futureoutlookonitswebsite 8,togetherwithagoodoverviewofthetechnology:

Figure 3: History and future of osmotic power 9 7StatkraftPress 8StatkraftOsmotic 9Skilhagen(2009)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page3 MScProgram RenewableEnergyinCentralandEasternEurope

2. Objectives

Withfurtherdevelopmentofthetechnologycomponentsbasedonanddeployedin theprototypeplant,osmoticpowerisexpectedtoreachtechnicalandeconomical marketability,justifyingprojectsdevelopmentatsiteswithgoodpotential.Assoon as osmotic power becomes commercially deployable, the industry focus will shift from fundamental R&D to project development and will require research on the available potential per country and a preselection of priority sites. At the same time,publicawarenessaboutthetechnologymustberaisedinthosecountrieswith thebiggestpotentialforfastexploitation. Accordingly,thisstudy

• Supplies sufficient background information on the technology parameters and Croatiaspecificimplementationsurroundsforstakeholders, • Determines the theoretical, technical and realisable potential for the PRO technologyinCroatia, • Estimates the economic and environmental conditions for a realistic business case,or • Alternatively, substantiates the argument if there is no potential to pursue the PROtechnology. ThereasonsforselectingCroatiaastargetcountrytoinvestigatethePROpotential areasfollows:

• Obviousgeographicsituation(riversflowingintooceanwithgoodsalinitygrade), • Relevance to the Master’s Program “Renewable Energy in Central & Eastern Europe”, • DefinedtargetsandpoliciesforRESEapplicationsavailable, • MarketrealitiessupportingRESEdevelopment.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page4 MScProgram RenewableEnergyinCentralandEasternEurope

3. The Osmotic Power Technology

3.1 Chemical Potential Energy

Potential energy is energy stored within a physical system as a result of the positionorconfigurationofthedifferentpartsofthatsystem 10 .Ithasthepotentialto be converted into other forms of energy, such as kinetic energy, and to provide powerintheprocess. Chemical potential energy is one form of potential energy and is related to the structural arrangement of atoms or molecules, and their bonds. A chemical bond canbethoughtofasanattractingforcebetweenatoms,becauseofwhichatoms andmoleculescontainchemicalpotentialenergy.Anytimetwoatomsenterastrong bondortwomoleculesenteraweakbond,chemicalenergyisconvertedintoother formsofenergy,usuallyintheformofheatandlight.(Therefore,strongbondshave lowchemicalenergyandweakbondshavehighchemicalenergy.) Chemical reactions , attracted by possible stronger bonds, convert chemical potentialenergyintoheat(andlight)energy,asshownbelowfor2hydrogenatoms formingastrongbond.

Figure 4: conversion of chemical potential energy into heat and light 11

Another example ofsuch a chemical reaction, driven by the formation of stronger chemicalbondsandsettingfreeenergy,isthedissolvingofsalt(thesolute)inwater (the solvent) forming a solution. This reaction always happens when fresh water mixeswithseawater. 10 PotentialEnergy 11 Damelin(2007)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page5 MScProgram RenewableEnergyinCentralandEasternEurope

Thereverseistrueforbreakingchemicalbonds:thebreakingofabondrequiresthe absorptionofheatand/orlightenergywhichisconvertedintochemicalenergywhen thebondisbroken. 12

Again,atypicalexampleforsuchareversedissolvingissolarradiation,supplying heattoevaporatewaterfromtheoceans’solution,resultinginthestorageofsolar energytransformedintochemicalenergyintheformofahigherconcentrationofthe solute(salt)inthesolution(ocean).

3.2 Osmotic Pressure

3.2.1 Definition

Osmoticpressureoccurswhentwosolutionsofdifferentconcentrations,orapure solventandasolution,areseparatedbyasemipermeablemembrane.Molecules suchassolventmoleculesthatcanpassthroughthemembranewillmigratefrom the side of lower concentration (high water potential) to the side of higher concentration (low water potential) in a process known as osmosis. The physical pressurerequiredtostoposmosisiscalledtheosmoticpressure 13 . JacubVan’tHoffwonthefirstNobelPrizeforchemistry(1901)fortheintroductionof an accurate calculationof osmotic pressure. Inhis definition, osmotic pressure is: “whenasolution,e.g.,ofsugarinwater,isseparatedfromthepuresolventinthis casewaterbyamembranewhichallowswaterbutnotsugartopassthroughit, then water forces its way through the membrane into the solution. This process naturallyresultsingreaterpressureonthatsideofthemembranetowhichthewater ispenetrating,i.e.,tothesolutionside.Thispressureisosmoticpressure.” 14

3.2.2 Calculation of Osmotic Pressure 15

In dilute solutions, osmotic pressure(Π … large Pi)) is directly proportional to the molality[mol/litre]ofthesolutionanditstemperatureinKelvin.Osmoticpressureis expressedbytheVan'tHoffequation: Π=M*R*T Π=osmoticpressureinkPaoratm

12 Damelin(2007) 13 Botany 14 Van’tHoff(1901),p.1 15 OsmoticPressure

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page6 MScProgram RenewableEnergyinCentralandEasternEurope M=molality=concentrationofasolutioninmol/Liter T=temperature[K] R=idealgasconstant[J/(K/mol)] R=gasconstant(dependentontheunitsofpressure,temperatureandvolume) R=8.314JK 1mol 1ifpressureisinkilopascals(1kPa=0,01bar) R=0.0821LatmK 1mol 1ifpressureisinatmospheres(1atm=1,0133bar)

3.2.3 Occurrence and Application of the Osmotic Effect

Natural Many natural processes that are essential for fauna and flora are based on the osmoticeffect.Forinstance,plantsdependonosmosistotransportwaterfromtheir rootstotheirleaves:thefurthertowardtheedgeorthetopoftheplant,thegreater thesoluteconcentration,whichcreatesadifferenceinosmoticpressure. Inourbodies,theprocessofosmosisplaysanimportantroleinthemovementof fluid, e.g., to transport water back from the kidneys, or transmit oxygen into our cells 16 . Technical Themaintechnicalexploitationofosmoticpressureisbystoppingthedissolvingor exchangeoftwosolutions(e.g.,purewaterandsaltwater)duetoseparationbya specialfilter,i.e.,asemipermeablemembrane. Asemipermeablemembraneisanorganicfilterwithextremelysmallholes.Nano filtrationmembraneswithholediametersofonlyafewmicrometersarenecessary toallowsmallmolecules,suchaswatermolecules,topassthroughononedirection andpreventlargermoleculessuchassaltorpollutantsfrompassingintheopposite direction.

3.2.4 Osmotic Processes through Membranes

Osmosisisthefluxofwaterthroughsemipermeablemembranefromasolutionwith higherchemicalpotentialofwater(solvent,lowerosmoticpressure)toasolutionof lower water chemical potential (solution, higher osmotic pressure). The osmotic pressure differential (Π) is the pressure which would need to be applied as a hydraulic pressure (P) to the more concentrated solution, in order to prevent transportofwateracrossthemembrane. 16 Osmosis

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page7 MScProgram RenewableEnergyinCentralandEasternEurope ForwardOsmosis (FO)usesthepressuredifferentialacrossthemembraneasthe driver for transport of water through the membrane. The FO process results in concentrationofafeedstreamanddilutionofahighlyconcentratedstream,referred toasthe drawsolution (DS). In ReverseOsmosis (RO),waterfluxisintheoppositedirectionofFO,andherean externalhydraulicpressureP>Πisappliedtorevertthefluxofthewaterthrough themembrane. Pressure Retarded Osmosis (PRO) can be viewed as an intermediate process betweenFOandRO:hydraulicpressureisappliedtothedrawsolution(similarto RO)butthenetwaterfluxisstillinthedirectionoftheconcentrateddrawsolution (similartoFO). 17

Figure 5: Schema of Forward Osmosis (FO), Reverse Osmosis (RO) and Pressure Retarded Osmosis (PRO) 18

3.2.5 Reverse Osmosis and Desalination

Osmosisisareversiblethermodynamicprocessand,asshownabove,thedirection ofwaterflowthroughthemembranecanbereversedatanymomentbycontrolof theexternalpressureonthesolution.Toproducedrinkingwaterfromseawater,by reverseosmosis,thepressurepofthesaltywatermustbehigherthantheosmotic pressure, so that clean water will cross the semipermeable membrane and accumulateontheotherside.Asaresult,reverseosmosisisanenergyintensive process 19 . Currently,themainapplicationofreverseosmosis(RO)isthepurificationfromlow scaledrinkingwatertodesalinationofseawaterinlargescaleplants.Thegrowing demand for fresh water in many areas of the world has spurred interest in the

17 Childresset.al.(2009)p.43 18 Childresset.al.(2009)p.44 19 Lachish(1998)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page8 MScProgram RenewableEnergyinCentralandEasternEurope processofdesaltingseawaterorbrackishwater(lesssaltythanseawater,butnot fresh).AccordingtotheAmericanMembraneTechnologyAssociation(AMTA),the worldwidedesalinationcapacityisover11billiongallons(~410 9litres)perdayfrom over12.000plants(membraneandthermal) 20 .

Figure 6: Desalination with Reverse Osmosis – plant schema 21 In the last decade, membrane based desalting technology utilizing the reverse osmosis(RO)technologyhasimprovedabout50%fromaprice/performanceratio perspective.Thisisprimarilyduetothespecificmodulecosts,e.g.,ofmembranes andpressureexchangers.BotharemajorcomponentsofaROdesalinationplantas wellasforpowergenerationplantsbasedonthePROtechnology.

3.3 Concepts of Salinity Power Generation

3.3.1 Reverse Electro-Dialysis (RED)

Thisprocessutilizesdirectelectrochemicalconversionindialyticcellswhichusethe potential between solutions of different salt concentrations. The solutions are separatedbyelectricallychargedmembranes.InaREDsystem,anumberofcation and anion exchange membranes are stacked in an alternating pattern between a cathodeandananode.Thecompartmentsbetweenthemembranesarealternately filled with a concentrated salt solution and a diluted salt solution. The salinity gradientresultsinanelectricpotentialdifference(e.g.,80mVforseawaterandriver

20 AMTA(2006)p.1 21 Melbourne(2007)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page9 MScProgram RenewableEnergyinCentralandEasternEurope water) of each membrane, the socalled membrane potential. The potential differencebetweentheoutercompartmentsofthemembranestackisthesumofthe potentialdifferencesovereachmembrane.Thechemicalpotentialdifferencecauses thetransportofionsthroughthemembranesfromtheconcentratedsolutiontothe diluted solution. This electrical current and the potential difference over the electrodes can be used to generate electrical power, when an external load or energyconsumerisconnectedtothecircuit.22

Figure 7: Schema of a reverse electro-dialysis process 23

3.3.2 Pressure Retarded Osmosis (PRO)

Inapressureretardedosmosissystem,twosolutionsofdifferentsalinitygradeare brought into contact by a semipermeable membrane. This membrane allows the solvent (i.e., water) to permeate and retains the solute (i.e., dissolved salts) from crossing in the opposite direction. The chemical potential difference between the solutions causes transport of water from the diluted salt solution to the more concentrated salt solution. If hydrostatic pressure is applied to the concentrated solution,thewatertransportwillbepartlyretarded.Thetransportofwaterfromthe lowpressuredilutedsolutiontothehighpressureconcentratedsolutionresultsina pressurization of the volume of transported water. This pressurized volume of transportedwatercanbeusedtogenerateelectricalpowerinaturbine. 24

22 Postet.al.(2007),p.219 23 Postet.al.(2007),p.220 24 Postet.al.(2007),p.219

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Figure 8: Schema of a pressure retarded osmosis process 25

3.3.3 Comparison of Technologies (PRO, RED)

Both technologies, PRO and RED, are in early development stages. A study performedbyagroupofDutchscientists(Postet.al.)publishedin2007evaluated the technologies in the light of their theoretical and experimental performance as found in literature and elaborated in models for both technologies. The prevalent performanceindicatorsinrelationtomembraneperformancearepower densityin

W/m² membarne and energyrecoveryin%.Theirresultsindicateaclearadvantageof RED in low concentrated solutions (e.g., sea water) and an advantageof PRO in highly concentrated, brine solutions (see Figure 9). Additional parameters for validation remained unanswered, such as cost/performance, biofouling of membranes,internalprocesslosses,etc. AsubsequentstudybyNorwegianscientistsThorsenandHolt 26 in2009analyzesin detail the PRO membrane technology based on a new theoretical model and lab based experiments simulating the realistic operating conditions of a membrane module.Theresultsfromtheanalysisleadtoconclusionsthataremoreoptimistic than the ones made by Post et al. (2007). In the new study, PRO appears to be significantlymoreefficientwithrespecttothespecificpowerachievable. Thepurposeofthischapteristoemphasizethatthereisconstantresearchgoingon inordertoforcemembranedevelopmentandtosupplyproofofthisconceptforfield implementation.

25 Postet.al.(2007),p.220 26 ThorsenandHolt(2009)

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Figure 9: Average power density and energy recovery, calculated by Post et.al. (2007) for PRO and RED for mixing sea water with river water and for mixing brine with river water 27 Figure 9, published in the cited study of Post et.al (2007), states a maximum membrane power density of ~1 W/m² for the PRO technology (with sea water conditions). In contrast to this, Figure 10 by Thorsten and Holt (2009) testifies a maximumspecificmembranepowerof5W/m².Currently,thisisperceivedasthe maximumspecificpower(W/m²)achievableinaPROapplication.

Figure 10: Membrane power, flux and energy recovery, calculated by Thorsen and Holt (2009) for PRO under specified conditions 28

3.3.4 Non-Membrane Based Processes

Foracompleteoverview,thefollowingtechnologiesforharvestingthesalinitygrade differences,whicharementionedinliterature,arelisted:

27 Postet.al.(2007),p.228 28 ThorsenandHolt(2009),p.108

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page12 MScProgram RenewableEnergyinCentralandEasternEurope 3.3.4.1 Vapour Pressure Differences

Anotherapproachistobuildadevicethatcanusethedifferenceinvapourpressure betweenfreshwaterandsaltwater.Freshwaterisevaporatedunderavacuumand condensedinseawater.Theresultingvapourflowdrivesaturbine.Therearemany limitations to this system, but there are advantages as well, especially since no membranesarerequiredinordertousethevapourpressuredifferences. 29

3.3.4.2 Hydrocratic Generator

AHydrocraticGeneratorcapturesthefreeenergyofmixingbetweentwobodiesof waterhavingdifferentsalinityconcentrations.Thetechnologydoesnotrequirethe use of any type of membrane. Experiments using a modified upwelling device, wherefreshwaterwasintroducedintoaverticaltubeinthewater,showedthatthe total hydraulic energy output of the system significantly exceeds the input from buoyancy(upwelling)andhydraulichead.Theexcessenergyisattributabletothe release of osmotic potential energy upon remixing of thefresh water and the salt waterintheupwellingtube. 30

29 JonesandFinley(2003),p.2285 30 JonesandFinley(2003),p.2286

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4. Pressure Retarded Osmosis (PRO) Process for Power Generation

4.1 PRO Basics and Process

To better understand the preconditions and dependencies of a PRO power generationplant,thefunctionalityandprocessesaredescribedhereinmoredetail.

4.1.1 Osmosis Power Potential

Asdescribedabove,osmoticpressureoccurswhenthemixtureoftwosolutionswith different concentrations is partly intercepted by a semipermeable membrane. In dilutesolutions,theosmoticpressure(Π)isdirectlyproportionaltothemolalityofthe solution and its temperature in Kelvin. Depending on the composition of the chemicalsubstancesinthesolutionaspecificmolality leadstoaspecificosmotic pressure.Therefore,thecompositionofthewaterusedfortheprocessisofsome relevancefortheresultingpowerproduction.

4.1.1.1 Composition and salinity of sea water

Salinity isthesumofthedissolvedsaltsaslistedinTable2,isexpressedinppm (parts per million) = mg/L = 0.001g/kg, or in percentage. Nowadays salinity is expressed as a unitless term, equivalent to the ppm number. The average sea watersalinityisaround35(3,5%or35ppm).Theionslistedinbelowtablemakeup approximately99%oftheseasalinity: Table 2: Sea salinity elements 31

31 Seafriends

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page14 MScProgram RenewableEnergyinCentralandEasternEurope Specific compositions lead to a specific osmotic pressure that can be easily calculated by online calculators, e.g., at the Lenntech homepage 32 as shown in Table3andTable4.Thecompositionofthesaltsintheseawaterisratherstable acrosstheworld;whatvariesisthesalinity(expressesthesaltconcentrationinthe solution),resultingfromthedifferentsurfaceevaporationandinflow.

Figure 11: Average salinity of the world's oceans AccordingtoFigure11,fortheAdriaticSeaasalinityof38canbeassumedforthe opensea.Thissalinityofaspecificsitewillbeaffectedbytheinflowofriversand dependent on the temperature differences of sea and inflowing waters and the geographicalsurrounding,whichmaysupportorpreventaquickmixtureandhence concentrationofsalinity.

4.1.1.2 Osmotic pressure and the water

Using the Lenntech online calculator 33 and manipulating the standard sea water values to increase the salinity from average sea water (35) to ~38, the osmotic pressure at average sea temperature of 11°C results in ~26.5 bar. This pressure 34 relatestoawaterheightof~270m H2O .

32 LenntechOsmosisCalculator 33 LenntechOsmosisCalculator 34 UnitConverter

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Table 3: Lenntech calculator input table for water composition and average 11°C temperature

Table 4: Lenntech calculator output - osmotic pressure

These numbers represent the average of theoretically achievable pressure in the Adriatic region with a solvent of zero salinity. Yet, as the exploitable osmotic pressureisthedifferencebetweentheosmoticpressurevaluesofeachsolution,the salinityofthesolventsideintheprocesshastobeexaminedaswell.

4.1.1.3 Osmotic pressure and the fresh water side

The termfresh water defines a salinity of < 1000 mg/l of dissolved solids (of any type) 35 , and saline water with solids > 1000 mg/l. The FAO, the UN Food and Agriculture Organization, publishes a classification of water quality (see Table 5), with the focus on usability for agricultural use, especially for irrigation of crops, where the water’s salt concentration has a huge impact on the usability of those waters. (Vice versa, the agricultural use of fertilizers has a huge impact on the salinityofgroundwaterandthesubsequentsalinityofthedischargedwater.)

35 EdwardsFreshwater

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Table 5: Classification of water quality based on salinity 36

AsweseefromTable5,thequalityofthewaterusedonthefreshwatersideofthe PRO process will have a considerable impact on the osmotic pressure difference andtheresultingpressurecreated. Table 6: Osmotic pressure of the Neretva water (Modric, mean values) using the Lenntech online calculator 37

36 Rhoadeset.al.(1992),chapter2 37 LenntechOsmosisCalculator

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page17 MScProgram RenewableEnergyinCentralandEasternEurope ByagainusingtheLenntechonlinecalculator(seeTable 6)andinsertingthemost significantsaltconcentrationsmeasuredintheNeretvadelta(measurepointModric, mean values Na + 763 mg/L and Cl 1732 mg/L) 38 , an osmotic pressure of 2 bar results. In that case, an osmotic pressure difference of ~25 bar can be used as drivingforceforaPROpowergenerationprocess.

4.1.2 Pressure retarded Osmosis Process Details

Inordertoexploitthepotentialpowerthatisinherentinthesalinitygradientofsea and fresh water, the waters are dealt with in a specific process as shown in the processschemainFigure12.Seawaterandfreshwaterareeachbroughtintothe system by the usual pumps with pressure littleabove ambient pressure (0,2 bar). This also represents one of the technology’s big advantages: no external water pressure(waterheight)isneededforPRO,makingitacomplementarytechnology abletocoexistwithrunoftheriverhydropowerplantsonthesameriver.

Figure 12: Process schema and parameters of the PRO technology 39

38 Romicet.al.(2008),p.64 39 BasedonAaberg,2004,p.4,Skilhagen(2008)p.478andLoeb(2002)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page18 MScProgram RenewableEnergyinCentralandEasternEurope Seawatercycle 40 : Afterbeingbroughtintothesystem,seawaterneedstobefilteredsothatparticles above a certain diameter (cutoff rate) cannot pass into the subsequent process steps of pressure exchanger and membranes. The demonstration plant in Tofte operates with screen filters with a cutoff rate of 25 microns (25 m), sufficiently smallforthesubsequentpressureexchanger(PX)device. After filtration, the sea water is pressurized to an internal pressure level of app. 12baror50%oftheosmoticpressuredifference(sea–fresh).Inordertoavoidthe efficiencylossesofconventionalpressurepumps,pressureexchangersasusedin theROdesalinationprocessareintroduced. Afterthe pressurization by the PX device, a conventional pressure pump ensures thedesiredpressurelevelbeforetheseawaterentersthemembranes. The purpose of puttingthe sea water cycle under pressure is to reduce thefresh water’sfluxthroughthemembranes.Thefluxinfluencesvariousparametersofthe system,e.g.,thespecificmembranepower[/m²]andthebiofoulingofmembranes. Afterleavingthepressureexchangerandpump,thepressurizedseawaterenters the membrane unit (parallel configurations) where it serves as the draw solution, “drawing”waterfromtheothersideofthemembraneintotheseawaterside.During this continuous flow over the membrane surface the draw solution dilutes and increasesitsvolumeviatheosmosisprocess,retardedbytheexternalpressure.By doingsoittransferstheenergyfromthechemicaltoamechanicalpotential,which constitutesthecoreprocessstepinthetechnology. Dilutedseawater(brackishwater)cycle Afterleavingthemembraneunits,about2/3 rd ofthepressurizeddilutedsolutionare reusedforthepressureexchangerflow,afterwhichitisdisposedasbrackishwater intothesea.Theremaining1/3 rd ofthedilutedwaterisfedintoaturbinethatdrives thegeneratorfortheelectricpowergenerationasusedinconventionalhydropower plants. Freshwatercycle: Freshwaterflowvolumeisabout50%oftheseawaterflowvolume.Beforebeing broughtintothemembraneunits,thefreshwateralsoneedsfiltering.Accordingto Statkraft,thecutoffrateforthefreshwaterfiltersinthedemonstrationplantisabout 50microns(m).Thehighercutoffratehasadirectimpactonahigherextentof 40 DescriptionoftheprocessstepsbasedonSkilhagen(2007)pp.477f

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page19 MScProgram RenewableEnergyinCentralandEasternEurope fouling (polluting) of the membranes, which leads to therequirement of increased membranewashing(see4.2.1.3Fouling,FilteringandWashing). Afterfiltration,thefreshwaterisfedintothemembraneswhereitflowsconstantly over the membrane surface opposite the salty solution (cross flow). Via this flow throughthemembranes,approximately80%90%ofthewatergetsdrawnthrough theporousmaterialandskintothesaltiersidewhereitdilutestheseawater.The remaining10%20%ofthefreshwaterfeedaredisposedasbrackishwaterinthe sea( freshwaterbleed inFigure12).

4.2 PRO Critical Components

4.2.1 Membranes

As already indicated in chapter 3.3.3, membrane technology and its integration in theoverallprocessisthekeyforafeasibletechnicalandeconomicalperformance ofthePROpowerplant.

4.2.1.1 Specific Membrane Power

Asmentionedabove,seawaterpressureisusedtocontroltheprocess,especially thewaterflux,whichisafunctionofthepressuredifferencebetweenhydraulicand osmotic pressure. The most prevalent relationship is between hydraulic pressure andtheresultingfluxinthemembrane,whichagaindeterminesthespecificpower yielded. The specific membrane properties, their main and side effects are described in detail by Thorsen and Holt (2009) from a theoretical as well as an experimentalperspective. Figure13showsaseriesofmeasurementsperformedwithamembranespecifically designed for the PRO process with the modelled relationship of flux and specific poweroverpressure.Theseresultsarebasedonlabscaleexperiments.Allthese findings and process dependent behaviour of the membranes and the integrated systemswillbeverifiedandoptimizedinthedemonstrationenvironment. AccordingtotheThorsenandHolt(2009)study,thespecificpowerofamembrane hasamaximumachievablespecificpowerofabout5W/m²(seealsoFigure10).

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page20 MScProgram RenewableEnergyinCentralandEasternEurope

Figure 13: Transferred mass vs. time for isobaric osmotic flow experiments (left). Modelled and measured water flux and specific power as functions of pressure (right) 41

4.2.1.2 Spiral Wound Membranes

Howcanmembranesthatonlygenerate1,3or5W/m²beusedforpowerplants withanexpectedcapacityofmultiplemegawatts? Firstofall,themembranes(madeofe.g.,CelluloseAcetatorPolyamideThinFilm Composite)areverythinmaterial.Theworkinglayer,the skin ,isjustasthinas0,5 m.Formechanicalsupport,theskinisattachedtoalayerofporouspolymeranda backingfabriclayer,eachabout100m.

Figure 14: Structural model of a membrane (with polarization films) 42 Inordertopacklargeareasofmembraneintoaslittlespaceaspossible,thethin materialiswoundtospirals,withthelayersseparatedbyfeedspacers(<1mm).

41 ThorsenandHolt(2009),p.107 42 ThorsenandHolt(2009),p.104

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Figure 15: Spiral wound membrane 43 Thecurrently usedmembranes in the demonstration plant are prototypes and not availablefromindustrypartnersyet.Buttheprinciplesofproductionandscalingwill bethesameasforthealreadyavailableROmembranesusedfordesalination. ThelargestROmembraneunitfoundwasasbigas18”diameterx61”length(46x 155cm).Themembraneunitsgetseriallystackedintovesselsavailableindifferent dimensions.DifferentfromtheconventionalROvessels, whichareengineeredas pressurevesselsforpressuresupto70bar,PROvesselswillbedesignedforlower pressurerequirements(<30bar).

Figure 16: Example for large size membrane and casing (Kochmembrane) 44 Finally,themembranevesselsarestackedinracks,supportingamaximumdensity of membrane area per m³ as well as offering efficient piping and ergonomic maintenance.Theoverallvolumerequirementofaplantisdeterminedbytherated capacity, the specific power of membranes and the volume efficient design of membranes,vesselsandstacks.

43 Tate(2008) 44 KochMegaRO

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Figure 17: The Ashkilon (Israel) desalination plant with 30.000 membrane modules 45 Figure17makesitobviousthatinadditiontothepuremembranecoststherequired spaceestablishesasignificantcostandconstructionparameterforthetotalplant. Therefore, future developments must be expected to enable an even further concentrationofthemembranemodules,withuptoabout1000m²perunit(perm³). The current state of technology is ~200 m² per unit. Statkraft is using research membraneswith~30m²perunit 46 intheTofteplant. Besides spiral wound membranes there exist other forms, such as hollow fibres, whicharenotelaboratedfurtherhere.

4.2.1.3 Fouling, Filtering and Washing

Fouling (polluting) of membranes is the major influencing parameter for the performanceandenduranceofthemembranes,which,typically,isaboutsevento ten years. Fouling can have various causes and therefore needs multilayered prevention techniques. The major fouling mechanisms in membranes used for RO/PRO technology are scaling, particulate and organic fouling and biofouling. Scalingiscausedbyinorganiccompoundsand,wherenecessary,canbecontrolled byusingascaleinhibitor,suchasapolymeroranacid.Thus,alltypesoffouling exceptbiofoulingandorganicfouling,whicharerelatedtypes,arecontrollable.At the moment, biofouling is considered the major problem for PRO and RO membranes. In spiral wound membrane modules, two types of pressure (thus

45 VeoliaAshkelon 46 DirectcommunicationwithStatkraft,March2010

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page23 MScProgram RenewableEnergyinCentralandEasternEurope performance) drop can occur: the transmembrane pressure drop (TMP) and the feedspacerchannelpressuredrop(FCP),alsonamedlongitudinalpressuredrop. 47

Figure 18: Bio fouling over time in the feed spacer layer of a spiral wound membrane 48 Foulingneedstobeseenasinherentchallengeofthemembraneusageanditis sitespecificduetodifferentwatercompositionsandprocessparameters.Inorderto controlthefoulingprocess,twomaincountermeasuresaretaken:

• Waterpretreatment isusedtofilteroutparticulatesaboveacertaindiameter.In theTofteplant,ultrafiltrationisusedforthefreshwaterfeedwithacutoffrate of50m.Fortheseawatersideascreenfilterwithacutoffrateof25mis usedinordertopreventfoulingofthemembranesanddamageofthepressure exchangeunits; • Washing is the process of flushing the membranes in the counter direction of their usual flows. During washing, the membrane is not available for power generationandthereforewashingreducestheachievablefullloadhoursofthe equipment(orincreasesthespecificinvestmentcosts[€/MWh]respectively).In the demonstration plant, a washing time of 30 min/24 hours is currently assigned. The efforts for and costs of pretreatment (granularity of filters) and the required duration of washing (with loss of load hours) are interdependent: the smaller the threshold for the pollutant diameter (cutoff rate), the more expensive the pre treatment, but the less time is required for washing. The optimization of the interrelationshipbetweenpretreatment(costs),washingtime(costs)andmembrane duration(costs)ispartofthedemonstrationplantprocessoptimization.Asaresult of the research on optimal washing, Statkraft has filed a patent for a specific technicalwashingprocedure. 47 J.S.Vrouwenvelderetal.(2010),pp.71 48 J.S.Vrouwenvelderetal.(2010),p.78

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page24 MScProgram RenewableEnergyinCentralandEasternEurope 4.2.2 Energy Recovery Devices (Pressure Exchanger)

Seawaterinflowmustbepressurizedbeforethemembraneinflow.Inordertoavoid the losses of efficiency of conventional pressure pumps, pressure exchangers as used in the RO desalination process are implemented. Currently, several technologiesforanenergyrecoverydevice(ERD)areimplementedinROplantsto increase the plant’s efficiency: isobaric ERD, Pelton turbine, Francis turbine and hydraulic turbocharger. The most widely used in new large SWRO desalination plantsarePeltonturbinesandisobaricERDs. AgeneralcomparisonofthetechnologiesisgiveninTable7,buttheselectionofthe most appropriate device should be made based on a plant’s specific parameters according to the study of Sanchez, et.al. (2007) performed for a RO environment (withhigherpressurelevelsinvolvedthaninPRO). Table 7: Energy recovery technologies and main indicators like plant total energy savings 49

Inthedemonstrationplantthepressureexchangedeviceswithhigherefficiencyare used.ManufacturerERIclaimsa98%maximumefficiencyoftheirenergyrecovery deviceasshownbelow. 50

51 Figure 19: Pressure exchanger schema and example (ERI) 49 LenntechSWRO 50 ERIOverview 51 ERIPXManual

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page25 MScProgram RenewableEnergyinCentralandEasternEurope Currently,ERI’smodelwiththehighestcapacity(PX300)canhandleafreshwater throughputof45–68m³/h. 52

4.3 PRO Process Parameters

Performanceindicatorshavebeencollectedforevaluationofthetechnologyandthe understandingofrequirementsforapotentialplantsite.Theindicatorsarebasedon the process overview (Figure 12) and the information acquired from publicly accessible sites, as well as on discussions with experts from Statkraft and the desalinationindustry. Whereas many of the listed parameters refer to the technologies used and the internal process, others indicate a dependency on the environment and natural conditionsaselaboratedinlaterchapters. Table 8: Selected parameters of the PRO technology and process

52 ERIPX300

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page26 MScProgram RenewableEnergyinCentralandEasternEurope 4.4 Expected Scaling Effects

Again,theanalogyfromthedesalinationtechnologymustbeusedsince,atpresent, notenoughPROspecificinformationisavailable.ThroughincreaseddiffusionofRO desalinationplantsallovertheworld,theproductioncapacityandthedemandfor membranesalsoincreased.Asaresult,pricesofmembranesandothermodulesof the process have decreased significantly, and so have overall costs of RO desalinatedwater 53 (seeFigure20).

Figure 20: Specific costs of water produced by RO desalination plants 54 Similar to the cost reduction of water desalinated by Reverse Osmosis, a cost decreasebasedoneconomiesofscaleandlearningcurveeffectsmustbeexpected forthePROprocessandcomponents. The technologystartingpoint forthelearningcurveisalreadyadvancedduetothe reuseofsophisticatedROcomponents,suchasthemembranetechnologyandthe pressure exchangers. Statkraft and research partners have already pushed the specificpowerfrom0,1W/m²ofcommerciallyavailableROmembranes 55 in1999to above1W/m²inthedemonstrationplant.Stillthereremainssignificantandalready visibleoptimizationpotential,especiallyforthespecificpoweryieldsofmembranes:

• Currently,>1W/m² membrane isdemonstratedintheexistingdemonstrationplant,

• Currently,~3W/m² membrane areachievedinlaboratoryenvironments,

• Expected,~4W/m² membrane willbeachievedwithin2years, 56 • Expected,~5W/m² membrane willbeachievedwithin4years .

53 AMTA(2006),p.1 54 dito 55 Skilhagenet.al.(2008),p.479 56 DirectcommunicationwithStatkraft,(February2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page27 MScProgram RenewableEnergyinCentralandEasternEurope ThefirstPROexperimentsstartedwiththemembranetechnologyasusedintheRO desalination process. But due to different inherent characteristics of the materials used, the power output was not meeting the needs and expectations. Since then there is separate research and development going on for optimized membranes used for PRO. Thorsen and Holt (2006) provide theoretical background and a descriptionofthecriticalperformanceparametersofanidealmembraneusedinthe PROprocess,andtheyprovetheirmainfindingswithlaboratoryexperiments. Commercialprices,andthereforeprice/performanceratios,arenotyetavailablefor PRO specific membranes. It can be expected that as soon as manufacturers are recognizingthebusinesspotentialtheywillstartbuildingandoptimizingproduction processesandincreasingpertinentresearch. The economical starting point for price performance figures must be taken by analogies from available cost factors and unit distribution of RO components. For membranesespecially,thiscanbedonebydeterminingthecurrentmarketsizefor membranesinsquaremetersproduced: Fromvariousdatasheetspublished,e.g.,onthehomepageofAppliedMembranes Inc.forROdesalinationmembranes,afluxperformanceofroughly0,85m³d 1m257 (0,770,92) was determined 58 . This performance describes the volume of desalinatedwaterthatcanbeproducedperdaypersquaremeterofmembrane. According to market share data published by GlobalWater International, the total volumeofROdesalinationplantscontractedbetween2008and2009relatestoa capacityofapproximately5.5Mm³potablewaterproducedperday(seeFigure21). These 5.5Mm³/d relate, via above 0,85m³ per day per m2, to approximately 6,6Mm² of RO membranes sold over 2 years. The resulting estimation for the annuallysoldamountofdesalinationROmembranesisinarangeof3,3Mm².

57 Cubicmetersperdaypersquaremeterofmembrane 58 Applied SWC5,AppliedSW30

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Figure 21: RO membrane suppliers’ market shares 2008-959 RelatingthisestimatedmembraneproductiontothedemandformembranesinPRO applications, the same annual 3,3 Mm² of membranes (with a theoretical specific poweryieldof2W/m²)allowforanannualcapacitygrowthof~6,6MW.Thissmall amountcertainlywillnotattractenergyplayerstoenterthemarket.Amoreattractive PROpowerplantsizeof25MWwillrequire~13millionsquaremetersofmembrane area.Thisarearepresentsthefourfoldofthecurrentannualproduction(doubleif 4W/m² power density). According to these numbers, and provided that the PRO technologysucceeds,adoublingofthemembraneindustry’scumulativeoutputmay occur in a very short period of time. This allowed for a quick exploitation of the learning curve throughout the supply chain, and for economies of scale in the productionofcriticalcomponents. The lowest retail price found for ROmembranes was 22 USD/m² (17€/m²) for a Filmtech SW30HRLE400 60 . In contrastto the SWRO membranes,thoseusedfor PROapplicationswillnotrequirehighpressurecasings,whichshouldresultinlower specificcosts.Atthesametime,membraneindustryexpertsratePROmembranes slightly more expensive due to the constructions details (as known so far). According to these experts, for a large scale application such as a PRO plant, approximately 400 500 US$for 400ft²shouldbe taken as estimationfor a ROI calculation,relatingto810€/m².

59 GWI(2010) 60 AppliedOverstockPricesandAppliedSW30HRLE400i

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page29 MScProgram RenewableEnergyinCentralandEasternEurope 4.5 PRO Plant Concepts

Several ideas on how to place PRO power plants have been sketched by Sidney Loeb, et.al (1990) and later in the EU study of 2004. Mainly two concepts are pursued: plants on ground level and on subsea level 61 . According to Statkraft, a plantsituatedjustbelowsealevelwoulddecreasetheplant’sinternallossesfrom 22% at sealevel to about 20%. This difference is due to the fact that the overall energyneededforpumpingcanbereducedandthegravitybeusedtosupportthe suctionsideoffreshandseawaterintake. The sketch of a plant at sea level is taken from a Statkraft presentation at the WashingtonInternationalRenewableEnergyConference:

Figure 22: Sketch of a PRO plant at sea level 62 AsshowninTable8thereisasubstantialdemandforlandforaPROpowerplant: 100mx200m(20.000m²,equivalenttoaboutthreesoccerfields)canbetakenasa ruleofthumbfora5MWplant.Thesizeismainlydeterminedby:

• Themembranes’powerdensity,withanexpectedincreasefrom1to5(W/m²), • Themembranes’areadensity,aspackedinpressurevessels,withanexpected increasefrom200to1000+(m²/m³), • Theneedforlosslimitingpipingdesignswithoptimizeddiametersandbends, • The need for an ergonomic maintenance access to thousands of single components.

61 EUProjectbrochure(2004),p.7 62 Skilhagen(2008)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page30 MScProgram RenewableEnergyinCentralandEasternEurope Theimplicitplantsizemightcauseeconomicbarriersforapotentialproject,suchas:

• Theavailabilityofsuitablelandintheriverdeltaforreasonablecostrates, • Thecostofconstruction,usuallyscalinglinearlyperm²,and • Shouldasubsealeveldesignbetargeted,constructioncostswilladdup,highly dependentonthehydrogeologicandsoilconditions. Anidealplantlocationcouldbethebasementofanalreadysealed,largeareawith goodaccessconditionsforconstructionandmaintenancelogistics.Suchlocations couldbefoundatplaceslikesupermarkets,parkingareas(alsointouristicplaces), factoryorharbouroutlets,etc.

4.6 Environmental Influences and Challenges

The PRO power generation process can be regarded as minimally impacting the environmentbecausenofossilfuelsandhardlyanylubricantsareneeded,noCO2 orparticularmattersareexhausted,noecologicallyharmingsubstancesareusedor producedandusuallynoriverdamsneedtobebuilttoproduceawaterhead.Yet, thereareseveralecologyparametersthateitherlimitthepotentialuseorimpactthe construction of the plant. Some ofthose parameters are elaboratedfurther in this chapter.

4.6.1 Plant size

In addition to the economical barriers of land costs (see above chapter 4.5), the required size of a PRO plant may also constitute severe ecological barriers for a project:

• The competitive use of suitable land in the river delta (e.g., for touristic or agriculturaluse), • Permission restrictions due to environmental concerns, especially in touristic regionsand/orprotectedareas. Subsealeveldesignsontheonehandmaynotonlyreducetheinternallossesofa plant,theymayalsobetheonlywaytohideanextensiveplantfromthesurfaceofa touristic area. Such construction will require additional expenses for digging and reinforcing an extensive basement, depending on soil, hydro geology and other constructionconditions.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page31 MScProgram RenewableEnergyinCentralandEasternEurope 4.6.2 Water Quality

Alldataaboutmembraneperformancefoundintheappropriateliteraturewasbased 63 oncertaindefinedNaClsolutions(e.g.,32g NaCl /lbyThorsenandHolt )tosimulate seawaterandonwaterqualityforfreshwaterwithoutfurtherdefinition.Althoughthe naturalcompositionofsubstancesinseawaterismoreorlessconstant(withonly theconcentrationinwaterbeingdifferent),localimbalancesofthecompositioncan occur due to pollution in the respective area. Yet, this pollution is more likely to happen on the fresh water side due to industrial or agricultural depositions to the rivers. If the quality of the fresh or the sea water supply for a potential project substantially deviates from the lab qualities, the potential impact on the process needstobeassessedatanearlystageoftheprojectdevelopment. Asanexampleforchangingandpossiblyproblematicqualityoffreshwatersupplya seriesofmeasurementsoftheNeretvawatercanbeused: Table 9: Statistical data on Na+ and Cl– concentrations in water at the Neretva monitoring site Modric64

The table shows variations of Na + Cl concentrations of min 525 mg/l and max 8.635mg/l(mean~2500mg/l).Thisrelatestoasalinityofmin0,5tomax8,6,with thelatterconstitutingasignificantnegativeimpactonthesalinitygradientandthus theexploitableenergyinaPROprocess(seealsochapter4.1.1.3).

4.6.3 Access Points

Due to losses of flow and pumping energy for transporting water over long distances, water intake points should be kept as close to the plant as possible. Dependingonthegeographicalcharacteristicsofthelocationthismightconstitutea challengefortheplantdesign:

4.6.3.1 Variation of Sea Level and River Flow

Theideal,leastdistantpointsofintakeforfreshwater(aspureaspossible)andsea water (as saline as possible) will vary due to various factors. Those factors are foremost: 63 ThorsenandHolt(2009),p.108 64 Romicet.al.(2008)p.64

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page32 MScProgram RenewableEnergyinCentralandEasternEurope • Tidaloscillationoftheseawaterlevel, • Weather(wind)relateddeviationoftheseawaterlevel, • River flow variation due to climate influences (flood, draught, global warming effects)alsoresultingin • Variationsofthesalinitygradeattheintakepoints, • River flow variation due to competitive usage of upstream water (e.g., hydropowerplant,agricultureirrigation).

4.6.3.2 Transitional Waters: Estuaries, Limans, Lagoons

Transitional waters are defined as ‘‘bodies of surface water in the vicinity of river mouthswhicharepartiallysalineincharacterasaresultoftheirproximitytocoastal watersbutwhicharesubstantiallyinfluencedbyfreshwaterflows’’ 65 .Withrespectto utilizationoffreshandseawaterinonecombinedplace,theexistenceoftransitional watersisofstrongimpact.Theyarefoundinflatriverdeltasandin estuaries (with specialappearanceaslimansorlagoons). An estuary isaninletoftheseareachingintoarivervalleyasfarastheupperlimit oftidalrise,usuallybeingdivisibleintothreesectors:a)amarineorlowerestuary,in freeconnectionswiththeopensea;b)amiddleestuarysubjecttostrongsaltand freshwatermixing;andc)anupperorfluvialestuary,characterizedbyfreshwater butsubjecttostrongtidalaction.Thelimitsbetweenthesesectorsarevariableand subjecttoconstantchangesintheriverdischarges. 66

Evaporation Tide Discharge (Flow)

Lower Middle Upper River Steepness Estuary 10 Open Sea Barrier 20 Salinity form and height 38 30

Move out for Seawater Intake Freshwater Intake Move out for Low tide High tide High Flow Low Flow Figure 23: Influencing parameters on salinity in estuaries and positioning of water intake locations

65 EU WFD(2000 )p.6 66 Fairbridge(1980)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page33 MScProgram RenewableEnergyinCentralandEasternEurope Duetothecostofwaterinletsvialongdistances(constructionofpipesandtunnels) and/orthe energy costsfor pumping sea waterfrom lower levels to a given plant level,thehorizontalandverticaldistanceofintakepointsshouldbekeptassmallas possible. But rivers discharging into estuaries can establish technical and econo mical challenges in the collection of sea and fresh water. As an example of how complexanestuarysystemcanbe,theriverKrkaisshown:

Figure 24: The Krka estuary; yellow dot shows Skradin as measurement point Salinitycanbeshownasafunctionofwaterdepthduetodifferencesofthespecific weightofsalineandfreshwater.Thisrelationshipisnotstable,howevervariesover time,especiallywiththeinflowoffreshwaterintotheestuary.Asfreshwaterhas lessspecificweight,itwillstayontopofthesaltierseawater(themixturewilltake place on more open sea). The more fresh water enters an estuary with limited surface area, the deeper the optimal salinity level will move. This effect is, e.g., demonstrated by the salinity of the Croatian River Krka, measured at Skradin in differentsubsealevels. As elaborated further in chapter 5, Croatian rivers during winter months deliver significantlyhighervolumesoffreshwater.Thisfactisreflectedinthechartbelow, where salinity in the Krka estuary is significantly decreased from November to March,evenatadepthof6metersbelowsealevel:

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page34 MScProgram RenewableEnergyinCentralandEasternEurope

Figure 25: Salinity at Skradin as a function of depth and month 67 As a consequence, in order to avoid pumping losses in the sea water cycle, the waterintakepointsmightneedtobeplannedoutsideoftheestuary.Intransitional waters,adecisionhastobemadebetweenliftingseawaterfromdeeperlevelsor transporting water over longer distances. In ecologically less sensitive cases the constructionofadamcouldbeanoptiontoprotectthefreshwaterfromintruding seawater.

4.6.3.3 Competitive Water Usage Downstream

Competitiveusageofwatermightprohibit

• Thereductionofresidualflowintheriverbedbelowdefinedthresholds,or • Changestothesalinitygradesdownstreamoftheoutletofbrackishwater. Such requirements can be asserted by the fishery and mussel industry in a river delta.Differentspeciesoffishcanadaptdifferentlytochangingsalinitygrades.Not all species react negatively to brackish water, though. This was demonstrated in detail by the above mentioned FAO study of 1982/83 onfishcage cultures inthe Krkawaterestuary(seeFigure26):troutsdemonstratedconsiderablyhighergrowth ratesinbrackishwaterthaninfreshwater. These findings indicate that the impact of a PRO power plant’s intrusion into the ecosystem ofthe river delta can be even positive for some ofthose stakeholders whoareexpectedtoopposeachangeinthestatusquo.

67 GraphbasedonEdwards(1984),conclusions,table2

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page35 MScProgram RenewableEnergyinCentralandEasternEurope

Figure 26: Growth of rainbow trout in fresh water (solid) and in Krka estuary brackish water 68

4.6.3.4 Competitive Water Usage Upstream

Competitive use of upstream water can have a significant impact on the performance of plants. Existing competition will – of course be taken into consideration for the business case and the ROI calculations. More challenging though, is the future water demand since this is difficult to predict. A single hydropower storage plant project can, all at once, destroy the business case of a PROplantwhichisdependentonaconstantwaterflowatacertaindischargerate. Such projects usually require thorough decision making with the stakeholders involvedintheassessmentphase.Therefore,suchasuddenlossofwatersupply appearsratherunlikely.Morerealistic,however,aretheincrementallossesduetoa constantincreaseoftappingintotheriverwater,beitforirrigationinagricultureor potablewaterformunicipalsupply.Inmanycasesthesewithdrawalswillbesmall enough to prevent (public) interest or even get recognition by governing bodies responsibleforthewatermanagement.Therefore,agoodassessmentofthewater reserves and potential future drawing of water is required in order to prevent expensiveovercapacitiesofthedevelopedplant.

68 Edwards(1984)conclusions,figure7

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page36 MScProgram RenewableEnergyinCentralandEasternEurope 4.6.3.5 Sea Level Fluctuations

Relevantfortheextentoftransitionalwatersisthevariationofseawaterlevels.The variationcanbeduetoregulartidalchanges,ortoirregularinfluencesofweather, mainlythewindwhichcausestheseawatertodrifttowardsthecoastalbarriers.On theCroatianAdriaticcoast,tidalchangesareminimalinthesouthanduptoabouta meter in the north. On top of the tide in the North Adriatic Sea, storms from the southwillcausethesealeveltorisesignificantly. TidalandweatherinfluencescancausethenorthAdriaticsealeveltofluctuateupto 2.13meters, as measured in Rovinj: Table 10 shows the deviations to a defined meansealevelpermonth,measuredbetween1955and2007: Table 10: Sea water level deviations for Rovinj (North Adriatic Sea) and Dubrovnik (South Adriatic Sea)69

Therefore,dependingontheactuallocationofadevelopedplant,thewaterintake mechanismwillneedtotakecareofthemaximumfluctuationofwaterlevels.

4.6.4 General Water Usage and Residual Flow

In general, a PRO power plant will allow a rather gentle way of embedding high technology into sensitive ecosystems for the exploitation of the nature’s potential energy.YetitmustbeemphasizedthatthePROtechnologydoeshaveanimpact on the water management and that the goal of power generation is in obvious oppositiontoalloftheabovementionedcompetitiveinterests.Theclearadvantage in the water usage of PRO is the short distance over which the river water is impacted in an ideal location. This advantage could be offset by the mandatory placing of the plants in the most sensitive areas, the river deltas. Besides other subjects in an environmental impact analysis, the mandatory residual flow – the amount of water that needs to be kept flowing naturally in the river bed will constituteanimportantparameterfortheplant’ssizeandeconomy.

69 Sealevel

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4.7 Legal perspective

4.7.1 Renewable Energy Directive 2009/28/EC

OnApril23 rd ,2009,theEUparliamentpassedtheRenewableEnergyDirectiveand provided a framework for member states’ legislations to support and enforce the increaseduseofrenewableenergysources.AnnexIoftheDirective 70 depictsthe targetedshareofRESforeachmemberstate.ForEUaccessioncandidatessuch targets are negotiated and recommendationsgiven in the chapter “energy” during theaccessionnegotiationrounds.ForCroatia,chapter15(energy)wasprovisionally closedonNov27 th ,2009 71 .

4.7.1.1 Salinity Power – An Acknowledged Renewable Energy Source

Article 2 (Definitions) of the Directive 2009/28/EC defines what the possible renewablesourcesofenergyare: (a) ‘energy from renewable sources’ means energy from renewable nonfossil sources, namely wind, solar, aerothermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases; In the directive’s preamble there is an explicit acknowledgement of salinity power includedinparagraph(11): 11) It is necessary to set transparent and unambiguous rules for calculating the share of energy from renewable sources and for defining those sources. In this context,theenergypresentinoceansandotherwaterbodiesintheformofwaves, marinecurrents,tides,oceanthermalenergygradientsorsalinitygradientsshould beincluded. Due to the early state of osmotic power technology, it cannot be expected that memberstateshavealreadyincludedspecificrulesforitsexploitation,suchasfeed in tariffs into the electricity grid. Some regulators have defined a category “other technologies”intheircatalogueoffeedintariffstoprovideacertainlevelofsubsidy. Aselaboratedinchapter7itwillrequirefeedintariffsspecificallysetforPROand adjusted to the incurred specific costs per MWh in ordertogive thetechnology a chanceformarketdisseminationandmaturity.

70 EU2020(2009),p.46 71 EUEnlargement(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page38 MScProgram RenewableEnergyinCentralandEasternEurope 4.7.2 Patents

There are several patents issued with regards to the process and technology of pressure retarded osmosis. Original patents go back to the inventor of the technology,SidneyLoeb,whofiledseveralpatentsintheyearsbetween1964and 1980describingthebasicideaandprocess. Two patents (listed by European Patent Numbers) are to be considered for an application of the technology in a project. Both are assigned to Statkraft DevelopmentAS: A Method and a System for Performing Maintenance on a Membrane Used for PressureRetardedOsmosis 72

• PublicationNumber:EP1971420 • ApplicationNumber:EP06835734.2 • Filingdate:12/20/2006 • Publicationdate:09/24/2008 SemiPermeableMembrane,MethodforProvidingElectricPowerandaDevice73

• PublicationNumber:EP1315554 • ApplicationNumber:EP01961437 • Filingdate:07/20/2001 • Publicationdate:06/04/2003 TheexistenceofthesepatentsmakesitobviousthatStatkraftisastakeholderina project development, at least as licenser of intellectual property in the PRO technology.

72 EP1971420 73 EP1315554

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5. Croatia and its Suitability for Pursuing Osmotic Power Plant Projects

5.1 General Country Information

TheRepublicofCroatiaisademocraticandsocialstateandbelongstothepeople as a community of free and equal citizens. The government in the Republic of Croatia is organised on the principle of the separation of powers into legislative, executive and judicial. The first Constitution of the Republic of Croatia was proclaimedon22December1990. 74

5.1.1 Facts and Figures

• Population(2001Census): 4.437.460 • Numberofinhabitantsperkm2: 78,5 • Capital:Zagreb 779.145inhabitants • Landarea 56.542km2 • Territorialseaarea 31.067km2 • Landboundaries 2,197km • Lengthofthecoast,includingislands 5.835km • Numberofislands,cliffsandreefs 1.185inhabited47 • Territorialadministrativestructure o 21counties(includingtheCityofZagreb) o 122towns o 424municipalities o 6767settlements • Climate o ContinentalintheNorthernCroatia o MountainousintheCentralCroatia o Mediterranean along the Adriatic Coast (average of 2600 sunny hours peryear) • Internetcountrycode .hr

74 MFA“PoliticalStructure”

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page40 MScProgram RenewableEnergyinCentralandEasternEurope 5.1.2 Croatia and the European Union

TheestablishmentofrelationsbetweentheRepublicofCroatiaandtheEuropean Union began with the international recognition of the Republic of Croatia as an independent and sovereign state on January 15 th , 1992. From that moment, relationsdevelopedgraduallytothemostrecentstageoftheintegrationprocess negotiations for the accession of the Republic of Croatia to the European Union. ThesenegotiationswereopenedonOctober3rd ,2005. 75 Since then, the transformation of Croatia in conforming to EU standards and regulations is ongoing at a fast pace and most of the negotiation chapters have beensuccessfullyconcluded: Table 11: EU - Croatia accession negotiation chapters – status as of February 19th, 2010 76

75 MFAEI(2009),p.8 76 EUEnlargement(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page41 MScProgram RenewableEnergyinCentralandEasternEurope 5.1.3 Croatia in the International Community

Croatiaparticipatesinmanyinternationalorganizations,including: ACCT (observer), BIS, BSEC (observer), CE, CEI, EAPC, EBRD, FAO, IADB, IAEA, IBRD,ICAO,ICC,ICCt,ICRM,IDA,IFAD,IFC,IFRCS,IHO,ILO,IMF,IMO,Interpol, IOC,IOM,IPU,ISO,ITU,ITUC,MIGA,MINURSO,MINUSTAH,NAM(observer),NSG, OAS (observer), OIF (observer), OPCW, OSCE, PCA, PFP, SECI, UN, UNCTAD, UNESCO,UNFICYP,UNIDO,UNMEE,UNMIL,UNMIS,UNMOGIP,UNOCI,UNOMIG, UNWTO,UPU,WCO,WHO,WIPO,WMO,WTO,ZC .77 On May 25 th 2010, Croatia joined IRENA, the International Renewable Energy Agency 78 asits145 th memberstate.

5.1.4 Croatia’s Economic Situation and Investment Climate

Table 12: Collection of Croatia’s economic figures and forecasts by RZB Research

Overthelast15years,Croatiaachievedimpressiveeconomicandsocialprogress. Prior to the global crisis, the Croatian economy grew at a healthy 45 percent annually, incomes doubled and economic and social opportunities dramatically improved. Croatia’s percapita income reachedabout 63 percent ofthe European Union (EU) average. However, Croatia like most countries in the region has not

77 HRIdentity 78 IRENA

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page42 MScProgram RenewableEnergyinCentralandEasternEurope remained immune to the crisis 79 . At the beginning of 2010 the Government announcedandinitiatedprogrammesaimedatrevivingtheeconomy,offeringdirect funding participation in working capital financing, risk participation in investment financingwithapartialGovernmentguarantee,participationinventurecapitalfunds, andfinallytherestructuringofthepoorestcompaniesbymeansofapartialdebtto equity swap, which means a temporary increase in the state’s equity holdings in thesecompanies. 80 Croatia’s overriding priority is to enter the EU with a competitive and growing economyandtheinstitutionalcapacitytomeetthedemandsofEUmembership.To achieve this, several challenges need to be met, including the completion of Croatia’s transition to a market economy with a focus on private sector growth, fostering greater competitiveness, and achieving convergence with EU income levels,inawaythatimprovesthequalityoflifeforallCroatians,andthatisfiscally, sociallyandenvironmentallysustainable. 81 Croatia has also achieved progress in the “economic freedom” index: its overall scoreof59.2is4.1pointshigherthanlastyear,reflectingsignificantimprovements for government spending, investment freedom and protection of property rights. Croatiahasmovedup24placesintheworldrankingstorank92andfrom38thto 37thoutof43countriesintheEuroperegion;yet,itsoverallscoreisstillbelowthe regionalandworldaverages 82 .

Figure 27: Croatia's Economic Freedom Index & details

79 WorldbankCountryBrief 80 RZBCroatia(2010) 81 WorldbankCountryBrief 82 Heritage(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page43 MScProgram RenewableEnergyinCentralandEasternEurope Despite all improvements, the issuers of the ranking still see many restrictions to more economic freedom: Croatia’s overall weakness stems from an excessive government interference that erodes the economy’s efficiency and flexibility. In additiontohighlevelsofgovernmentspending,governmentinterventioninotherkey areas of the economy is considerable. Burdensome and unclear administrative regulations, particularly at the local level, continue to challenge entrepreneurs, resulting in lower levels of productivity and job growth. Corruption and political interference,especiallywithregardtothejudiciary,alsorestricteconomicfreedom 83 . Intermsofstrengthsandweaknesses,Unicredit,inlinewithotheranalysts,seesa likelyEUaccessionsoonandadisciplinedmonetarypolicyasmajorstrongpointsfor thefutureCroatianeconomy: 84

Figure 28: Unicredit Research - assessment for Croatia April 2010

5.1.5 Environmental Situation and Regime

In2007,theCroatianGovernmentassessedthestateofenvironmentinCroatiaas “...relativelygoodcomparedtothesituationinEUindustrialcountries,mainlydueto thelownegativeimpactoftheheavyindustries(duetotheircollapseinthe1990s). Croatiabenefitsfromanumberofnaturaladvantagessuchas:uniqueandrelatively well preserved natural environment, high level of biodiversity, high stores of fresh water etc. The natural environment is a crucial asset in Croatia’s economic and socialcapital,andadriverofeconomicdevelopment,givenitspivotalroleintourism inCroatia...” 85 Historicallyinsufficientinvestmentcausedenvironmentalprotectiontobelessthan in other developed countries, leaving substantial investment needs across all environmental sectors, of which the top three are waste management, water managementandairquality.

83 Heritage(2010) 84 UnicreditCEE(2910),p.34 85 EOP(2007),p.6

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page44 MScProgram RenewableEnergyinCentralandEasternEurope Croatia developed a hierarchy of environmental strategies, under the Strategic DevelopmentFramework200613,particularlytheNationalEnvironmentalStrategy, National ISPA (Instrument for Structural Policies for PreAccession) Strategy, various related sector strategies (energy, transport, planning, etc.), and strategies forenvironmentalsubsectors,includingtheWasteManagementStrategy,andthe WaterManagementStrategy. 86 The Ministry of Environmental Protection, Physical Planning and Construction (Ministarstvozaštiteokoliša,prostornogureñenjaigraditeljstva)maintainsalistof all international treaties signed and all the national regulations relevant for environmental protection 87 . Mainly relevant for assessing a prospective project developmentforanOsmoticPowerplantisthe“Regulationonenvironmentalimpact assessment”.

5.1.6 Environmental Impact Assessment

In line with international standards, Croatia issued a Regulation on Environmental ImpactAssessment(EIA)onMay29 th 2008withOGNo.64/08. The EIA the regulation clearly sets out for which prospect projects an EIA is mandatory(AnnexI)andforwhichprojectsanevaluationofthenecessityofanEAI is necessary under the competency of the ministry (Annex II) or under the competencyofanadministrativebodyinthecounty(AnnexIII).

5.1.6.1 Mandatory EAI for PRO projects

APROprojectneedstoundergoanEIAifitfallsintooneofthecategories: a)AccordingtoAnnexIMandatory: Item3:

Powerplantsandothercombustioninstallationswithpowerexceeding30MW el Item31(eventually): Exploitationofmineralresources: − … − alltypesofsaltsandsaltwaters − mineral and geothermal waters from which mineral raw materials may be extractedoraccumulatedheatmaybeusedforenergypurposes −…

86 EOP2007,p.6 87 MZUPOregulations

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page45 MScProgram RenewableEnergyinCentralandEasternEurope b)AccordingtoAnnexII–SubjecttoEvaluation: Energy,item1: Industrialinstallationsfortheproductionofelectricity,steamandhotwaterwith

powerexceeding1MW el withtheuseof: o Fossilandsolidfuels o Renewable energy sources (water, sun, wind, biomass, biogas, geothermalenergy,waves,tides,etc.) Subject to the nature of a PRO power plant, it will most likely be located in a Protected Coastal Area(PCA) , which is defined as the coastline including islands and,fromthecoastline,anareawithin1.000minlandand300mintothesea.This fact might lead to other relevant environmental conditions which may be applied duringtheEIA,especiallyastheplant’sdimensionandlogisticsaccessisexpected tobeintrusiveforafragilelandscape.

5.1.6.2 Process

TheprocessofdeterminationoftheneedandcompetencylevelsneededfortheEIA requires the mandatory involvement of a certified consulting company or institute. ForpreparationofanEIA,thereare12companiescurrentlycertifiedandlistedon the ministry’s webpage 88 (second table: “POSLOVI STRUČNE PRIPREME I IZRADE STUDIJA O UTJECAJU ZAHVATA NA OKOLIŠ”, entries with from/to dates). Some of these consulting companies are either faculties of universities or “institutes”.Thename institute indicatesacompanyownedbythegovernmentbut operatingunderfreemarketconditionsperformingspecialservicesofpublicinterest. Inmanycasessuchinstitutescollect,ownandsellthedataneededtoevaluateand performtheenvironmentalimpactassessment. Examples for such institutes in the context of PRO power plant projects are the DHMZ (Meteorological and Hydrological Institute 89 : weather, climate, hydrology, marine data), or the EIHP (Energy Institute Hrvoje Pozar: expert and scientific researchinthefieldofenergy 90 ). Muchofthedatarequiredforasiteselectionandprojectdevelopmentwillalready beneededinearlystagesbutthereisnofreepublicaccesstothem.Soadvicefrom project practitioners is to involve such certified consultants (as listed on the ministry’swebpage)fromtheverybeginning. 88 EIAConsultants(2010) 89 DHMZhome 90 EIHPMission

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page46 MScProgram RenewableEnergyinCentralandEasternEurope 5.1.7 Protected Areas

Protected areas will require special attention and possibly costly provisions for a powerplantproject.DuetothenatureofthePROtechnology(beingsituatedinorat theriverdeltas)chancesoffallingintoaprotectedorNatura2000areaarehigh. Asearlyas1949thefirstNationalParksintheboundariesoftoday’sCroatiawere established(PlitviceLakesand).Today,thereare8NationalParks,ten NatureParksand2strictreservesdefined 91 . Table 13: List of Nature and National Parks 92

Ofthose,especiallytheKrkaNationalParkisrelevantasitenclosestheKrkariver estuary. Inadditiontotheparkslisted,thereareseveralsitesdesignatedforNatura2000, whichwillmakecertainareassensitiveto,butnotimpossiblefor,PROpowerplant projects.ThoseNatura2000areasaregovernedbytheEU1992HabitatsDirective and/or the EU 1979 Birds Directive 93 . The State Institute for Nature Protection (SINP)haspreparedalistofpotentialNatura2000sitesforCroatiainanticipationof theEUaccession.Theseareascovernearly40%ofCroatia’sterritory 94 andmany ofthemaresituatedinCoastalregions(seeFigure30:ReservedareasforNatura 2000inCroatia).

91 Protectedareas 92 NationalParks 93 Natura2000 94 N2000leaflet(?)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page47 MScProgram RenewableEnergyinCentralandEasternEurope

Figure 29: Protected areas in Croatia 95

Figure 30: Reserved areas for Natura 2000 in Croatia 96

95 EOP(2007),p.30 96 N2000leaflet(?)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page48 MScProgram RenewableEnergyinCentralandEasternEurope

5.2 Electricity market and conditions

5.2.1 Electric Power Sector and Market Players

Since2000,theenergysectorhasundergoneasignificanttransformationprocess, primarilyperformedby 97 :

• introductionofcompetitioninenergyproductionandsupply; • liberalisedchoiceofenergysupplier; • thepubliccharacterofthetransmissionnetwork/transportsystemremainsunder statesupervision; • establishingapubliccharacterofthenetworkwithstateorregionalcommunity ownershipwiththegoalofequal,nondiscriminatoryaccessandcompetition; • introductionofanindependentnationalregulatorfortheenergybusiness(HERA –Croatianenergyregulatoryagency).

5.2.1.1 HEP - Hrvatska Elektroprivedna

Croatia’stransmission,distributionandelectricitysupply,aswellasnearlyallofthe electricityproduction,areorganisedwithinthestateownedHEPGroupthatconsists of HEP d.d. 98 as the leading company plus many affiliated companies. The privatisationactforHEP(OfficialGazette,No.32/2002)setsoutrestructuringand privatisationrulesunderwhichtheRepublicofCroatiaretainsa51%ofsharesuntil CroatiabecomesanEUmember. TheKrškoNuclearPowerPlantlocatedinSloveniaisjointlyownedbySloveniaand Croatia,eachowning50%,whilethethermalpowerplantPlominIIisjointlyowned byHEPandGermancompanyRWEE. 99 HEP Group has ~4.000 MW of installed capacity for electricity production. In additionHEPoperatesthetransmissionanddistributionnetworkswithatotalof24 thousand transformer stations and 128 thousand kilometres of lines of different voltagelevels 100 (seealsochapter5.2.4).

5.2.1.2 HROTE - Croatian Energy Market Operator

On April 4 th 2005, the Croatian Energy Market Operator (HROTE) began its operation. As a public service, HROTE organizes the electricity market under

97 Energetika(2008),pp36 98 d.d.=abbreviationforCroatianjointstockcompany 99 Energetika(2008),pp36 100 HEP

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page49 MScProgram RenewableEnergyinCentralandEasternEurope supervisionoftheCroatianEnergyRegulatoryAgency(HERA).HROTE’sactivities include 101 :

• Issuingelectricitymarketrules, • Registrationofcontractualobligationsamongmarketparticipants, • Keepingrecordsofsuppliersandeligiblecustomers, • Preparationofadayaheadmarketplan, • Settlementofbalancingenergy, • Collectingfeesforincentivizingtherenewablesandcogenerationfromsuppliers anditsdistributiontoeligibleproducers, • Analysingtheelectricitymarketandrecommendingimprovements.

5.2.1.3 HERA - Croatian Energy Regulatory Agency

The Croatian Energy Regulatory Agency (HERA) was established as an autono mous, independent and nonprofit public institution in order to develop and implementregulationsofenergyactivities. Fundamentalgoalsoftheseactivitiesare:

• Ensure objective, transparent and nondiscriminative carrying out of energy activities; • Take care of the implementation of principles of regulated access to the network/system; • Adoptionofmethodologiesfordeterminationoftariffitemsoftariffsystems; • Establishmentofefficientenergymarketandmarketcompetition; • Protectionofenergyconsumersandenergyoperators.

5.2.1.4 Legislative Framework

A compilation of all legislative and institutional frameworks was achieved by the RELEELproject 102 ,financedundertheEUCARDS2004program.Ashortoverview includingaprocessflowisissuedinaleaflet 103 andthecompletelegalframeworkis documented in detail by Tiložanec 104 . The collection of the main laws and regulations(infulltext)thatdescribetherightsanddutiesofa(potential)produceris presentedattheHEPOPSwebpage 105 .

101 HROTE 102 RELEEL(2007) 103 RELEELGuide(2007) 104 Tiložanec(2009) 105 HEPOPSLaws

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page50 MScProgram RenewableEnergyinCentralandEasternEurope

5.2.2 Electricity Supply, Demand and Price Levels

Table 14 shows Croatia’s electricity balance of 2008, published by HERA in their AnnualReport2008.ItrevealsthatCroatiaisanelectricityimportingcountry;evenif Croatia‘s50%stakeintheKržkoNuclearPowerplantistreatedasdomestic,there is still a gap of 3.6 TWh between the gross consumption of ~18 TWh versus a domestic production of 14.4 TWh. Secondly, the electricity balance reveals that Croatia is involved in significant electricity transmission business to and from neighbouringcountries. Table 14: Croatia's Electricity Balance 2008 [GWh] 106

According to a water rich climate and geography, Croatia operates a multitude of small (1.4 MW) to large (500 MW) hydropower plants and reaches an impressive shareof52%ofhydropowercapacityintheoverallproductionmix:

Figure 31: Electricity generation capacity mix 2007107 Figure 32: Hydro (HE) and thermal (TE) power plants of HEP 108

106 HERA(2008),p.34 107 Energetika(2008),p.4 108 HERA(2008)p.36

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page51 MScProgram RenewableEnergyinCentralandEasternEurope Yet, looking at the achieved hydropower energy generation per capita and comparingittotheEU27countries(seeFigure33),itrevealsthat a) The amount of ~1,300 KWh/capita is about 50% higher than the EU 27 average,but b) Thetotalelectricitydemandof3,740KWh/capita(2008)isstilllaggingbehind theEUlevel(EU27average~6,500KWh/Capita), c) Leadingtoastrongpressuretopursuesustainableenergysourcestopreventa drasticincreaseofthefossilandnuclearshareintheelectricityproductionmix.

Figure 33: Electricity demand and Hydropower production per capita in Hrvatska vs. EU 27 countries 109 Hence,thefuturegrowthofenergydemand(seechapter5.2.3),andespeciallythe shareofelectricityintheoveralldemandmix,requireasetofinvestmentstrategies Thesestrategiesmustmeetthedemandbutalsofulfilthegoalsofthereductionof greenhousegasemissionsandtoachievesustainablegrowth. Fromanelectricitypriceperspective,Croatiacanstillbeseenasalowpricemarket, withatendencytoenduserpriceincreasessimilartootherEuropeancountries:

Figure 34: Electricity prices for household customers in €/KWh incl. network, taxes and fees 110

109 Kuližić(2010),pp56 110 HERA(2008),p.43

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page52 MScProgram RenewableEnergyinCentralandEasternEurope As in most other markets, the purchasing power of large customers results in significantlylowerenergycosts(seeFigure35).

Figure 35: Electricity prices per customer segment in HRK/KWh incl. taxes and fees, excl. network 111 For reasons of comparison, the feedin tariff for small hydropower up to 10 MW capacityislistedhere:0.42Kuna/KWh. For the average household customer, the electricity bill falls into these category shares:

Figure 36: Price structure for customers (households), second half of 2008 112

5.2.3 Consumption Trends and Supply Strategies

In Croatia’s Energy Strategy, drafted in 2008 and approved by the parliament in 2009,theministryshowsgrowthscenariosforfinalenergyconsumptionof3.7%in thesustainablescenarioto4.3%inBAUscenario:

Figure 37: Final electricity demand according to various scenarios 113

111 HERA(2008),p.44 112 HERA(2008),p.47 113 EnergyStrategy(2008)p.36

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page53 MScProgram RenewableEnergyinCentralandEasternEurope From2001to2006theelectricityconsumptiongrewby4,1%annually. The Energy Strategy, based on the sustainable scenario (with growth rate 3,5%), indicatesanincreasinggapofgenerationcapacityupto6GWuntil2030:

Figure 38: Predicted generation capacity installed and needed (left) and resulting gap until 2030 (right) 114 When attending the Visegrad Four Summit on March 1 st , 2010, Croatia’s Prime MinisterJadrankaKosortalkedaboutanelectricityconsumptiongrowthof4.3%until 2020, which is projected in the Energy Strategy as the growth rate in the BAU scenario.Atthesamesummit,Kosorpredicteda€15bninvestmentintoCroatia’s energysectoruntil2020. 115 The development directions of the Energy Strategy with regards to the needed capacitiesstate:

• Constructing new production capacities to satisfy growing domestic electricitydemandandreplacingexistingdeterioratedplants; • Utilizing renewable energy sources in the electricity generation and encouragingdistributedproduction; • Stimulatingefficientelectricityenduse. Threemainscenarioswereevaluated,allofwhichrelyheavilyonfossilthermaland nuclearpowergeneration,duetothelargegaptobefilleduntil2020.Thepreferred scenariofinallysuggestsafossilthermalcapacityof2.350MW,anuclearplantwith 114 Energystrategy(2008),p.39 115 VisegradFour(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page54 MScProgram RenewableEnergyinCentralandEasternEurope 1.000MW, plus an additional capacity of 1.845MW to be based on various renewableresources(includinghydropowerfacilitiesof300MW):

Figure 39: Suggested (white) scenario for new generation capacity until 2020 116 According to this sustainable (white) scenario, the required capacity and planned upscalingshouldmatchaccordingly:

Figure 40: New capacity and capacity demand according to sustainable "white" scenario 117

5.2.4 Grid and Grid Access

InCroatiathereisonetransmissionsystemoperator,HEPOPS,whoisincharge the electric power system operation and proper coordination of the production, transmissionanddistributiongridsystems.

116 EnergyStrategy(2008),p.42 117 dito

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page55 MScProgram RenewableEnergyinCentralandEasternEurope Transmissionnetwork: Electricitytransmissioniscarriedoutatthreevoltagelevels 400,220and110kV–throughatotalof7,230kmoflines.Withinthetransmission systemthereare112disjunctionplants. Distribution network: is comprised of the following substations: 110/35(20) kV, 110/10(20)kV,35/10and10/0.4kV,aswellaslines(overheadandcables)upto 110kV.Inthefieldofmiddleandlowvoltagethereare25,123disjunctionplantsand 101,573kmoflines.

Figure 41: Transmission network and production facilities of the Croatian electric power system 118 According to the Energy Strategy, the following changes must be made to the distributionnetworkinthenearfuture 119 :

118 HERA(2008),p.20 119 EnergyStrategy(2008)p.48

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page56 MScProgram RenewableEnergyinCentralandEasternEurope • Gradualtransitiontotwoleveltransformation; • Installationofgaugingdeviceswiththepossibilityofatwowaycommunication attheuser‘sgauginglocations; • Construction of simple distribution complexes and apparatuses at all voltage levelsofthedistributionnetworkwherethiscanbejustified; • Automation of plants and networks and significant application of information communicationtechnology. Roles and Responsibilities for providers who need to connect to the grid are regulatedinthe“GridCode” 120 .

5.2.5 RES-E Policy and Framework

AccordingtotheEnergyStrategy,thedevelopmentdirectionsforthepowersector include 121 :

• Utilizingrenewableenergysourcesandencouragingdistributedproduction; • Stimulatingefficientelectricityenduse.

5.2.5.1 Goals

In addition to the 300 MW of additional conventional hydropower capacity, the strategyforesees1,545MWofnewcapacitybasedonrenewableenergysources until2020(2,900MWuntil2030).Thegoalsandforeachofthetechnologiesfallinto thosesubgoals(until2030inbrackets) 122 :

• 1,200MWinstalledpowerinwindpowerplants(2,000MW), • 140MWinstalledpowerinbiomasspowerplants(420MW), • 40MWinstalledpowerinwastetoenergyplants(60MW), • 20MWinstalledpoweringeothermalpowerplants(30MW), • 45MWinstalledpowerinsolarpowerplants(250MW), • 100MWinstalledpowerinsmallhydropowerplants(140MW). Thestrategicgoalforelectricityproducedfromallrenewablesources(includingall largehydropowerplants)in2020amountstoaround10.7TWh,oraround35%of totalelectricityproduced. Newrenewable sourcesforelectricityproductionaccount for4.1TWhoraround13%.ThegoaltobeachievedbyDecember31,2010isas follows:

120 GridCode(2006) 121 EnergyStrategy(2008)p.36 122 EnergyStrategy(2008)p.36

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page57 MScProgram RenewableEnergyinCentralandEasternEurope • Minimum share of renewable energy sources amounting to 5.8% of the total electricityconsumption; • Minimum share of electricity from cogeneration plants which is delivered into transmission, i.e., distribution network, amounting to 2.0% of total electricity consumption. Compared to the actual picture, this goal seems to be more than optimistic. The achievedsharesin2008forRESe,excludinglargehydropower,are: • 1,3%oftotalelectricityproduction,or • 0,8%oftotalelectricityconsumption. Despiteastronginterestfrominvestors,onlyveryfewRESeprojectsweregiven finalrulingsfromHERA,amountingtoatotalcapacityof~37KW(seeFigure42). Wheninoperation,theywillcontributewithcalculated210MWhadditionallytothe grid,representingashareofabout0,0012%oftotal2008consumption.

Figure 42: RES-e projects with final rulings of HERA, 2008 123

5.2.5.2 Feed-in Tariffs

Thesefactsemphasizethatthegoalsstatedareveryfarreachingand,asseenin many other countries, additional capacities based on RESe will hardly offset the expectedgrowth,ifnodrasticmeasuresaresetintooperation. One of the main measures taken in order to stimulate investments into new renewable energy is the introduction of feedin tariffs that are granted to eligible producersfortheperiodof12yearsandareadjustedtotheconsumerpriceindex. For2010,thosetariffsare: Table 15: RES-e feed-in tariffs for 2010 with relevance to the PRO technology 124 FIT 2010 Kn/MWh FIT 2010 €/MWh RES-e Power Plant Type ≤ 1 MW ≤ 10 MW ≤ 1 MW ≤ 10 MW Small Hydropower ≤ 5000 MWh 765,5 108,9 Small Hydropower ≤ 15000 MWh 765,5 610,2 108,9 86,8

Small Hydropower > 15.000 MWh 466 66,3 Other Renewable Energy Source 665,6 554,6 94,7 78,9 As of June 12th, 2010: 1 Euro = 7,03 Kuna 123 HERA(2008),p.49 124 RESTariffs(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page58 MScProgram RenewableEnergyinCentralandEasternEurope

5.2.5.3 Investment Subsidies

Additional subsidies for renewable energy projects might be given via the EnvironmentalProtectionandEnergyEfficiencyFund(FZOEU) 125 .Basedonpublic tenders, this fund grants to finance programs, projects and other activities in accordancewiththeprovisionsoftheLawonFundforEnvironmentalProtectionand Energy Efficiency. Funds are granted to legal and natural persons by loans, subsidies,financialassistanceordonations.Activitiesfundedinclude:

• The protection, preservation and improvement of air quality, soil, water and seas,andclimatechangemitigationandprotectionoftheozonelayer, • Implementationofnationalenergyprograms, • Encouragement of the use of renewable energy sources (sun, wind, biomass, etc.), • Promotionofsustainabledevelopment, • Encouragement for education, research and development studies, programs, projectsorotheractivities,includingdemonstrationactivities.

125 FZOEU

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page59 MScProgram RenewableEnergyinCentralandEasternEurope

6. Potentials for Osmotic Power in Croatia

6.1 Definitions

Thedefinitionsforpotentialsareappliedaccordingtothespecificationuntroduced bytheInternationalEnergyAgency. “Theoretical potential: Thisrepresentsthetheoreticalupperlimitoftheamountofenergythatcanbegenerated fromaspecificresource,overadefinedarea,basedoncurrentscientificknowledge.It dependsonphysicalflowsonly(e.g.,averagesolarirradiationonacertainregion). Technical potential: Thetechnicalpotentialcanbederivedonthebasisoftechnicalboundaryconditions,e.g., efficienciesofconversiontechnologies,oroveralltechnicallimitationssuchasavailableland areaforwindturbineinstallation.Formostresources,thetechnicalpotentialisdynamic:e.g., withimprovedresearchanddevelopment,conversiontechnologiesmaybeimproved,with resultingimprovementinthetechnicalpotential. Realisable potential: Therealisablepotentialrepresentsthemaximumachievablepotential,assumingthatall existingbarrierscanbeovercomeandalldevelopmentdriversareactive.Inthisrespect, generalparameterssuchasmarketgrowthratesandplanningconstraintsaretakeninto account.Itisimportanttonotethatrealisablepotentialisalsotimedependent:itmustrelate toacertainyear.Inthelongrun,therealisablepotentialtendstowardsthetechnical potential. Mid-term potential: Themidtermpotentialisdefinedastherealisablepotentialin2020. Economic potential: Theeconomicpotentialisdefinedasthatpotentialwhichcanbeexploitedwithouttheneed foradditionalsupport,i.e.,whoseexploitationiscompetitivecomparedwithconventional incumbenttechnologies.”126

6.2 Theoretical Potential for PRO

Giventheabovedefinition,thetheoreticalpotentialisdeterminedbytheamountof waterflowingintotheAdriaticSeaperyearandthepotentialofthemixingofsea waterandfreshwaterundercertainconditions.Thosebasicconditionsaresetas follows:

• Freshwatersalinitycorrespondstoastandardsalinityof~0,5acrossallrivers; • Fresh water does not carry pollutants that make the PRO technology inappropriate; • Seawatersalinityisexpectedtobe35(standard)orabove;

126 IEA(2008),pp.6162

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page60 MScProgram RenewableEnergyinCentralandEasternEurope • Watertemperatureinfluencesareneglected; • Averagewaterflowswillnotdeclineinthefuture; • The yearly peak flow of a river determines the rated capacity for this river, regardlessofachievableutilization; • Theinherentenergycontentoftheprocessofmixing1m³freshwith1m³sea water is about 1.5MJ 127 (= 416.7 MWh), which means that a flow of 1 m³/s representsatheoreticalcapacityof1.5MW. Hence,thetheoreticalmaximum power potentialresultsfromallrivers’peakflows, andthetheoretical energypotential isthesumofeachriver’sflowaccumulatedover theyear.Forthisreason,thehydrologicalsituationofCroatiahastobeexamined andtheavailabledataanalyzed.

6.2.1 Hydrological Situation and Discharge

Croatiaistobeseenasawaterrichcountrywithstrongprecipitationespeciallyeast oftheAdriaticcoastalregions.

Figure 43: Water basins in Croatia and surface waters to the Adriatic Sea 128

127 Postet.al.(2006)p.222 128 WFDCroatiaMaps

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page61 MScProgram RenewableEnergyinCentralandEasternEurope Croatia’s main water bodies Save, Drave and Dunava are situated in Europe’s largestcatchmentareaoftheanddonotdischargeintotheAdriaticSea. ForthePROtechnologyonlythoseriversthatdischargeacatchmenttowardsthe sea are of interest. In Croatia these catchments are the LittoralIstrian river basin andtheDalmatianriverbasinasshowninFigure43. Table 16: Average discharge to the Adriatic Sea 129

Table16showsthewaterbodiesthatdischargetotheAdriaticSeaaslistedinthe Water Management Strategy paper of Hrvatske Vode. On the one hand, Lika, Gacka and Boljuncica cannot be exploited for the technology examined as they dischargeintokarsticsinks,wherewaterdisappearsthroughthekarst.Ontheother hand,threewaterswereaddedtothelistastheymaybeinterestingforthePRO technology:

• Ombla,whichisakarsticspringatKomolac(nearDubrovnik)withariverbedas shortas4kmandwithanaturalsubsealevelstoragesiphon 130 .Itisfedbythe waters of Trebišnjica in Bosnia and Herzegovina, which disappear in karstic sinksafterbeingexploitedbyhydropowerstationsanddrainedintothe • Trebišnjica tunnel, which is an artificial drain of the tail water of the Trebinje Hydropower plant 131 , leading to the hydropower plant of HEP in Dubrovnik, whereitstailwaterdischargesintothesea,and • LikatunneltotheSenjhydropowerplantinSt.Juraiwiththetailwaterrunning offtothesea 132 .

129 basedonWaterManagementStrategy(2009),p.11;DHMZdirectcommunicationandWatersee Trebišnjica 130 WaterseeTrebisnjica 131 HEDubrovnik 132 HESenj

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page62 MScProgram RenewableEnergyinCentralandEasternEurope AsthePROtechnologydoesnotneedawaterheadbutjustflow,bothOmblaand theTrebišnjica–viatheHEDubrovniktailwater–andtheHESenjtailwaterare includedinthepotentialcalculation. Theannualaggregationofthedailydischarges(averagefrom1961to1990)ofall Croatianriversamountto~5,900m³/s.Outofthese,673m³/s,whichareonly~11% ofthetotalwater,flowintotheAdriaticSea.

6.2.1.1 Theoretical Potential Calculation

Based on this average discharge data the theoretical energy potential can be calculatedbysimplymultiplyingtheaverageflowwiththespecificenergycontent: 416.7Wh/m³*673m³/s*3,600s/h*8,760h=1,010MW*8,760h≈8.8TWh Comparedto22.8PWhoftheworld’stheoreticalpotentialofSalinityEnergy(see Chapter 1.1), the 8.8 TWh theoretical potential of Croatia take about a share of 0.038%.

6.3 Technical Potential

6.3.1 Further Definitions and Specification

According to the definitions as used in the Croatian Tariff System for renewable energysources,thefollowingdefinitionsareusedforfurthercalculations 133 :

• InstalledPower oftheplantisthesumofnominaloutputsofallgeneratorsinthe plant; • NominalOutput isthepermanentoutputofaproductionunitaccordingtowhich theunitwasorderedanddesigned. InthiscontextthedefinitionappliestoaPROpowerplantasfollows:

• InstalledPower isdefinedbythegenerator’sratedcapacity(~1MWper1m³/s flow)and • Nominal Output is defined by the maximum power connected to the grid, requiring the full supply of the water flow to which the Installed Power is designed. • Theplant’s FullLoadHours describetheplant’sutilizationasdefinedbyannual energydeliveredtothegridperinstalled(turbine)power. 133 RESTariffs(2010),Article2(2)1and3

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page63 MScProgram RenewableEnergyinCentralandEasternEurope 6.3.1.1 Technical Reductions

The following technical conditions reduce the theoretical potential to a smaller technicalpotential :

• Processrelated,the capacity that can be achieved from 1m³/s offresh water whenmixingwith2m³/sseawateris1MW(installedpower); • Up to 25% of the electric energy (ex turbine) is used for internal losses and processessuchaspumpingandwashing;theselossesaredependentonsite and construction such as the plant height related to the sealevel. Losses are assumedtotendtowards20%overthenext20years); • Bynow,amaximumoutputcapacityof750KWcanbeconnectedtothegridout of1m³/sofflow,orintermsofutilizationamaximumof6.570FLHfor1MW rated(butinternal)capacity; • Process related downtimesfor washing of membranes(0,5 h per day or 2%) reduce the 6.570 FLH by another 2% to 6.439 FLH of installed capacity (this relatesto~8.600plantfulloperationhours).

6.3.1.2 Natural Technical Reductions

In addition to the purely technical reductions, the PRO technology will face many naturalandenvironmentalrelatedcutbacks(seechapter4.6),whichcanbetaken as “technical reductions”. Those reductions can be timedependent; e.g., the expected future technical evolution will reduce the plants’ foot prints, hence the technology’sneedforvaluableland. Naturaltechnicalreductionsaremainlydueto:

• Restrictedareas(e.g.,KrkaNationalPark); • Availablespacefortheplants‘constructions; • Technicallycomplicatedaccesstothewaterresourcesofrequiredquality; • Finally,therearehydrologicalconditionsthatrestricttheoptimalsizeofaPRO plant: strong fluctuations of the water flow due to seasonal precipitation fluctuations.ThisphenomenoncanbeseenparticularlyinthesouthofCroatia withdraughtsduringsummersresultingindryrivers. None of those natural restrictions can be calculated without site specific pre screening,andactuallynearlyalloftherestrictionscanbetransposedintoeconomic restrictions by increasing investment costs. Therefore, it has been decided to neglectthoserestrictionsforthecalculationofthetechnicalpotentialandtoaccount forthemintherealisablepotentialanalysis.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page64 MScProgram RenewableEnergyinCentralandEasternEurope 6.3.1.3 Technical Potential Calculation

Basedonthisaveragedischargedataandaboveparametersthetechnicalenergy potentialcanbecalculatedasfollows: In2010:0.75KW/(m³/s)*673m³/s*8,760h*98%=505MW*8,760h≈4.33TWh In2030:0.80KW(m³/s)*673m³/s*8,760h*98%=505MW*8,760h≈4.62TWh Compared to the above calculated 8.8 TWh of Croatia’s theoretical potential, the 4.33TWhtechnicalpotentialrepresentashareof49%.

6.4 Realisable Potential

6.4.1 Introduction of the “Reasonable Potential”

Although the river flow pattern sets a natural limitation, by definition it cannot be factoredinasareductionofthetheoreticalorthetechnicalpotentialforthePRO technology.Bybeinga“naturallygiven”barrieritcanonlybeovercomebyabsurd efforts to deploy themaximum PRO capacity.This is exactly the challenge ofthe definitionofa“realisablepotential”:notallthatistechnicallyrealisableandtherefore partofthetechnicalpotentialcanreasonablybepursued. Therefore,thecategoryofthe reasonablepotential isintroducedtomarkthetarget linefortheintroductionofanewtechnology.Itdefinesthatfractionofthetechnical potential which allows a reasonable business case in the foreseeable future and setsthemaximumtargetfortherealisablepotential. To analyse what can be a reasonable business case for PRO it needs to be emphasizedthatoneofthepreconditionstoexploitthecalculatedenergypotentials is the implementation of the maximum capacity per river which is determined by eachriver’speakflow.Onlyunderthisconditioncantheriver’smaximumdischarge be fully processed for power generation. Depending on the characteristics of a river’s flow pattern, this can either make good business sense or be a complete wasteofefforts. Asoutlinedinchapter7,theconceptofaPROplantisthatofabaseloadoperation, henceitisnotwellsuitedforstronglyfluctuatingwaterresources.Overcapacitythat resultsfromconfiguringaplantbasedonariver’speakflowmeansoverinvestment and sets the primary economic constraint for the realisable potential. Based on a

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page65 MScProgram RenewableEnergyinCentralandEasternEurope river’s flow pattern the rated capacity should be set in such a way that the achievablefullloadhourscanachieveaneconomicreturn.Thismeansthatnextto thepurelyeconomicconditions(costsvs.tariffs)theachievableutilizationwillbethe mainfactorforthedeterminationofareasonablepotential. Therefore,asafirststep,theflowcharacteristicofeachwatersourceisanalyzed.In asecondstepthenecessarycapacity,thatsupportsthereasonableutilizationofthe investmentinaPROplant,isdetermined.

6.4.2 Analysis of Croatian Rivers’ Discharge

Detailed flow data was made available by the Meteorological and Hydrological Institute 134 fortheserivers:,Krka,,Ombla,Raža,andRjecina. Thedatasetsarereportsofthedailydischargeinm³/sdeliveredintheformoftext files. Flow data reports include the years 19992008 or a subset of those years. Unfortunately, the Rjecina flow data report does not show the required quality to allowanalysiswithstatisticalmethods. For the Neretva river, data was obtained from the “Agency for Adriatic Sea WatershedinBosniaandHerzegovina”(Jadran)asDHMZdoesnotownthisdata. Thedataiscollectedfromthehydrologicalstation„Zitomislici”whichistheclosest hydrologicalstationtotheAdriaticSeawithanestablishedflow(Qinm3/s)towater height (H in cm) relation. According to Jadran, all other downstream hydrological stationsareunderseatideimpact,sothatitisnotpossibletoestablishaQ(m 3/s)to H (cm) relation and thus derive data for discharge 135 . „Zitomislici“ is about 47 km awayfromtheNeretvarivermouth. AcomparisonwiththesummarydatapublishedintheWaterManagementReport which was also used for the calculation of the theoretical and technical potential, showsareducedflowandalsoadifferentflowpatternespeciallyinwintermonths. Thiscouldindicateachangeofwaterregimeovertimebytheriver’sexploitationfor hydropower, but no further investigation has been performed to clarify the differences. 134 DHMZ–Directcommunicationanddeliveryofflowdata 135 Jadran–Directcommunicationanddeliveryofflowdata

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page66 MScProgram RenewableEnergyinCentralandEasternEurope Insomecasesothermethodsthananalysingthedailydataserieswereused:

• DubrovnikandSenjHydropowerPlanttailwaters:

o Theinstalledhydropowerflow(Qi)isusedtosettheratedcapacity(Q i=Q max ); o Theplants’calculatedfullloadhoursallowthecalculationoftheaverageflow

(Q avg ); o Theirmonthlydistributionofflowsisapproximatedinanalogytotheaverage monthlyoftheclosestrivers(RažaforSenjandOmblaforDubrovnik); • Rjecina: o TheaveragemonthlydischargesfromtheWaterManagementStrategypaper areused 136 ; Threedifferentcategoriesoftheresourcewaterscanbesummarised:

• Sevensmallrivers: o Raza,MirnaandRjecinaintheLittoralIstrianriverbasin, o Zrmanja,Krka,cetinaandOmblaintheDalmatianregion; • Neretva,withadischargegreaterthanallsevensmallriversintotal, • TailwaterflowsoftheDubrovnikandSenjHydropowerplants.

136 WaterManagementStrategy(2009),p.14

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6.4.2.1 Seven Small Rivers

The analysis of the flow data reveals substantial challenges for a baseload type powerplant:

• Eachriverdemonstratesanindividualpatternofdailyflows, • Eachyeardemonstratesitsindividualcharacter, • Daily average flows fluctuate up to the ratio of 1:100 with draughts in late summerandfloodsinwintermonths, • Someoftheriversdryupduringsummer. Notjustwithinayear,butalsoovertheyears,thedischargeanddistributionvaries irregularlyandsignificantlyformostrivers: Average Flow over 10 years 60,0 Cetina 50,0 Krka 40,0 30,0 Mirna 20,0 Ombla 10,0 Raza - Zrmanja 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Figure 44: Average discharge of small Croatian rivers 1999 to 2008 Below charts about average discharge demonstrate the individual flow patterns of thoseriversforwhichdailydatawasmadeavailable:

128 90% --> 64 Cetina

32 10 years average flow relative to maximal flow on logarithmic scale Krka 16

8 Mirna 4

2 Ombla 1

0,5 Raza 0,25

0,125 Zrmanja 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 127 134 141 148 155 162 169 176 183 190 197 204 211 218 225 232 239 246 253 260 267 274 281 288 295 302 309 316 323 330 337 344 351 358 365 Figure 45: Ten years average flow as the percentage of the maximum flow measured

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page68 MScProgram RenewableEnergyinCentralandEasternEurope

Cetina Flow Pattern 1999 - 2008 Krka Flow Pattern 1999 - 2008 Min = 4; AVG = 16; Max = 360 m³/s Min = 0,4; AVG = 19; Max = 214 m³/s Flow m³/s Flow m³/s 120 120 1999 1999

2000 2000 100 100 2001 2001 80 80 2002 2002

2003 60 2003 60 2004 2004 40 40 2005 2005 20 2006 2006 20

2007 2007 - - 2008 Month 2008 Months Year Year

Mirna Flow Pattern 1999 - 2008 Ombla Flow Pattern 1999 - 2008 Min = 0,2; AVG = 6,3; Max = 91 m³/s Min = 4; AVG = 24; Max = 97 m³/s Flow [m³/s] Flow [m³/s]

100 33 1999 1999 90 30 2000 2000 27 80 2001 2001 24 70 2002 2002 21 60 2003 2003 18 50 2004 15 2004 40 2005 12 2005 30 2006 1… 9 2… 2006 20 3… 2007 4… 6 5… 6… 2007 10 7… 3 2008 8… 9… 2008 - 10 … - 11 … Month Month 12 … Year Year

Zrmanja Flow Pattern 2004 - 2008 Raža Flow Pattern 1995-2000 u. 2005-2008 Min = 0,5; AVG = 35; Max = 392 m³/s Min = 4; AVG = 24; Max = 97 m³/s

Flow [m³/s] Flow [m³/s] 10 140 1995 9 1996 120 8 1997 100 2004 7 1998 2005 6 80 1999 5 2006 60 2000 4 2007 2005 40 3 2008 2006 2 20

1 2007 - Month - 2008 Month Year Year

Figure 46: Flow patterns of 6 small rivers (average flows per months and years)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page69 MScProgram RenewableEnergyinCentralandEasternEurope The charts make clear that using average flow data for sizing a plant will lead to wrongdecisions.Therefore,forthedeterminationofthereasonablepotentials,each river’sdataofthedailyflowwillbeused,exceptforRjecinaforwhichthedataisnot available.Foreachdailyflowtherespectivemaximumcapacityisdeterminedand then averaged accordingly. For calculating the maximum capacities, several parametershavetobefactoredthatrequirecertainbasicconditionassumptions:

• The residualwater thatforenvironmentalandfisheryreasonsneedstostay minimallyintheriverbed: o Thebasicconditionissettoaresidualwaterflowof100%ofthe averageof yearlyminimumvalues ofdailyflowthroughout10yearsofdata.Thisreflects thepreventionofanartificialdryingoutoftheriverbed. • A minimalamountoffullloadhours (FLH)isrequestedforeconomicreasons: o Thecalculationofenergyyieldsisbasedonthedailyflowdatato accommodatetheresidualwaterandavariable,assumedratedcapacity, o Theresultinginstalledcapacityandenergyyieldareshownasafunctionofan expectedutilizationexpressedinfullloadhours. • A reference capacity is introduced to allow the sensitivity analysis in certain calculationsteps:forthecalculationoftheachievablepotentialit was decided thatnoplantbelow2MWinstalledcapacity(=turbinepower)isconsidered: o Therefore,ariverisnotincludedinthecalculationifonlylessthan2MWof ratedcapacitywouldachievetheexpectedfullloadhours(whichdoesnot preventasmallerpowerplantfrombeingfeasible). The function of the achievable energy yield over the rated capacity confirms the above indicated lack of stable and sufficient water flows of various rivers. Only Zrmanja,OmblaandKrkareturnsignificantlymoreenergyyieldiftheratedcapacity increases:

200 Cetina 150 Krka Mirna GWh 100 Ombla Raza 50 Zrmanja Rjecina - 2 10 18 26 34 42 50 58 66 74 Rated Capacity [m³/s] Figure 47: Achievable energy as a function of the rated capacity (installed turbine) per small river

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page70 MScProgram RenewableEnergyinCentralandEasternEurope Table 17: Basic conditions for reasonable potential calculation and results for small rivers

By setting basic conditions (yellow table), including a required utilization of 5.000 FLH, neither Mirna nor Raža could provide enough constant flow to qualify their inclusioninthepotentialscalculation. Theresultingsensitivityoftheachievableenergyovertheexpectedfullloadhours revealsaverysteepdependency,reflectingthestronglyfluctuatingflowpatterns. Table 18: Realisable power and potential as a function of full load hours expected for Croatia’s small rivers

Achivable Capacity and Energy depending on Minimal FLH for Seven Small Rivers

500 2.000 1.750 400 1.500 300 1.250 1.000 200 750

MW MW installed 500 100 250 achievable GWH - - Minimal 500

1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 FLH MW GWh Thetworivers(plants)thatwouldqualifyforaneconomicexpectationof5.500full loadhoursareKrkaandOmbla,butwithastrongreductionofachievableenergy.

6.4.2.2 River Neretva

Regardingitsdischarge,theriverNeretvaisbyfarthelargestwaterbodyinCroatia. Its annual average flow of 342 m³/s 137 exceeds the total of 258 m³/s of all small rivers. Neretva is a socalled “transboundary” water for which Bosnia and Herzegovina (owning ~90% of the 177 km river length) and Croatia are the responsible governing nations. The Neretva river basin is connected with the Trebišnjica, which disappears in karstic sinks after undergoing heavy hydropower 137 WaterManagementStrategy,p.11

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page71 MScProgram RenewableEnergyinCentralandEasternEurope exploitation. Neretva and Trebišnjica both are heavily stressed by agricultural irrigation (of ~5.000 ha mainly in the lower delta area), by hydropower plants (10 existing, more planned), by reclamation of wetlands for agricultural use and by pollutionduetounsustainableagricultureandlackofwastewatertreatmentinthe large upstream settlements. Among other reasons, the environmental treasure of theareaisconstitutedbythelargestremnantsoftheMediterraneanwetlandsonthe easternAdriaticcoast(lowercourseoftheNeretva) 138 .Theareaisoneofthefocal pointsofEuropeantransboundarywatermanagementandmassivelysupportedby EU,WorldBankandUNsupportprograms. Changestothewaterregimeinonepartofthebasincanhaveunexpectedand unwanted side effects in other parts, as the whole watershed is connected via karsticaquifers(undergroundwaterways),siphons,cavesandartificialtunnels.

Figure 48: Natural and artificial connections in the Neretva-Trebišnjica river basin 139 and potential PRO plant locations in red circles (from upper left: Neretva, Ombla, HE Dubrovnik) 138 WaterseeTrebsinjicaandKupusovic(2010),p 139 Milanovic(2002),p.14

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Figure 49: satellite view (Google Maps) The complex natural structures (e.g., long and flat delta), the environmental and developmentpressuresandthefact,thattheNeretvadischargesviaalongandflat estuarymakeitdifficulttopredicthowtheactualrealisablepotentialwillevolveover timeandwhattheadditional“bypass”investmentsneedtobetodevelopprojectsin anacceptable,sustainablemanner.

Neretva Flow Pattern 1998-2008 excl. 2003 Min = 49; AVG = 214; Max = 1202 m³/s

Flow [m³/s]

700

600

1998 500 1999 2000 2001 400 2002 2004 300 2005 2006 2007 m³/s Average Flow 1998 - 2008 200 2008 500 100 400

300 - 200 100 Month - 1 2 3 4 5 6 7 8 9 101112 Year Figure 50: Neretva monthly flow pattern 1998 – 2003 based on daily data from Jadran Purelyfromaflowperspective,thetechnicalpotentiallooksimpressive.Butacloser look reveals that, similar to the smaller rivers and due to the same reasons, the energy yield steeply declines as soon as expectations for a reasonable utilization (minimalfullloadhours)areapplied:

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page73 MScProgram RenewableEnergyinCentralandEasternEurope

Table 19: Realisable power and potential as a function of full load hours expected for Neretva

Achivable Capacity and Energy depending on Minimal FLH for Neretva (Zitomislici)

500 2.000 450 1.750 400 1.500 350 300 1.250 250 1.000 200 750

MW installed MW 150 500 100 GWH achievable GWH 50 250 - - 500 1500 2500 3500 4500 5500 6500 Minimal FLH MW For theoretically required 5.000 FLHs, Neretva supplies a realisable potential of 301GWhperannofromaninstalledcapacityof60MW.

6.4.2.3 Tail-Water Utilization of HE Dubrovnik and HE Senj

HEDubrovnik Asdescribedabove,HEPOPSinDubrovnikoperatesahydropowerplantwhichis fed–viaanundergroundtunnel–bythewateroftheTrebišnjicaRiver.Theintake for HE Dubrovnik was achieved by the construction of the Gorica dam, situated downstreamoftheTrebinjehydropowerplant,sothatthetailwaterofTrebinjeisthe headwaterofHEDubrovnik. 140 Theinstalledflowis90(2x45)m³/sandtheinstalled capacityis216(2x108)MW.Theaverageproductionis1,321GWh,resultingina utilizationof6,115FLHsandacalculatedmeanflowof62.8m³/s(furtherusedfor thecalculationofthepotential).Peakflow(90),meanflow(62.8)andthemonthly flowdistributionofOmblawereusedtocalculatetheflowpatternofHEDubrovnik andtheresultingdimensioningoftherealisablepotential. HESenj TheSenjhydropowerplantisadiversiontypeplantutilizingthewaterofLikaand Gackarivers,bothofwhichareconnectedtoeachotherand“disappear”inkarstic sinks.Belowmapsshowthehydrologicalsituationandthepipeline(marked)tothe Senjpowerplant:

140 HEDubrovnik

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Figure 51: Gacka and Lika hydrology and HE Senj pipeline 141 The HE Senj installed flow and capacity are 60 (3*20) m³/s and 216 (3*72) MW respectively. With an average of 972 GWh of production 142 , the plant achieves 4,500FLHs,whicharecomparablylessthanthoseofHEDubrovnik.Thisstaticdata andthemonthlyflowdistributionofRažawereusedtocalculatetheflowpatternof HESenjandtheresultingdimensioningoftheachievableenergy. Table 20: Realisable power and potential as a function of full load hours expected for HE tail-waters

Achivable Capacity and Energy depending on Minimal FLH for Dubrovnik and Senj 500 2000 1750 400 1500 300 1250 1000 200 750

MW installed MW 500 100 250 achievable GWH 0 0 500 1500 2500 3500 4500 5500 Minimal FLH MW GWh DuetotheverygoodflowsituationofHEDubrovnik,whichcanalreadybeseenin the FLH of the hydropower plant, a PRO power plant could reach 6.000 full load hoursofaninstalledpowerof50MW,achieving~300GWhannually.

141 BonacciandAndrić(2008),pp.186&187 142 HESenj

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6.4.3 Reasonable Potential = Total Realisable Potential

Insummary,thereductionofthetechnicalpotentialduetoeconomicrestrictionsof hydrologyresultsina reasonablepotential .Thereductionisdependentontheflow patternsandanexpectedutilizationofthetechnology. Startingpoint: As a basic condition for determining the reasonable potential, the utilization requirementissettoaminimumof5.000fullloadhoursofinstalledcapacity.These relatetoabout6.800fullloadhoursofplantoperation.Althougharbitrarilyset,the required 5.000 FLHs reflect the high investment costs of the technology and the expectationthatpublicfundsshouldnotsubsidisepoorlyutilizedplantcapacities.

Table 21: Achievable power and energy as a function of full load hours expected for total Croatia

Achivable Capacity and Energy depending on Minimal FLH (Croatia Total)

1.600 2.500 1.400 2.000 1.200 1.000 1.500 800 600 1.000 MW MW installed 400 500 200 achievable GWH - - 500 1500 2500 3500 4500 5500 6500 Minimal FLH MW GWh Startingfromatheoreticalpotentialof8.8TWhandatechnicalpotentialof4.3TWh, a reasonable potential of 866 GWh can be derived under the set condition of a minimumutilizationof5,000fullloadhours.Thisconditionisachievedwithatotalof 167MWinstalledturbinecapacity. 866GWhofreasonablepotentialrepresentashareofabout4.2%ofCroatia’s2010 electricityconsumption. Futuredevelopment: Fortheoutlookinto2030,anadditionalconditionisassumed:

• Thedevelopmentofthetechnology’seconomiesofscale,learningcurve,higher energycostsandincreaseddemandforelectricitywillallowtheproductionunder

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page76 MScProgram RenewableEnergyinCentralandEasternEurope economicconditionswithonly4,500FLHsin2030withalineardecrease.This increasesthereasonablepotentiallinearly(assumed)to~1.1TWhin2030.

10.000 5,0% Potentials until 2030 8.000 4,0% Theoretical Potential [GWh] 6.000 3,0%

4.000 2,0% Technical Potential [GWh] GWh

2.000 1,0% Reasonable Potential [GWh]

0 0,0% Reasonable potential as % of consumption

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Figure 52: Potentials for PRO and reasonable potential as % share of projected total consumption

6.4.4 Realisable Potential up to the Year 2030

Fortherealisablepotential,ascenarioshouldbedrawntoshowhowthereasonable potentialcanberealisedovertimeuntil2020(midterm),2030(horizon)andbeyond. For the realisation scenario some assumptions are necessary about the development of the technology itself, the economies of scale achievable and its public support for dissemination. Last but not least, some environmental barriers needtobefactoredin(astheywereneglectedsofarinapotentialscalculation)but withinaclimateforapositivedevelopment.

6.4.4.1 Assumptions on Drivers and Barriers

TheassumptionssupportingtherealisablegrowthpotentialforthePROtechnology anditscapitalizationinCroatiaareasfollows:

• PRO will be actively promoted by (a) financially strong stakeholder(s) and marketedtodecisionmakersasanalternativeenergysourcethatdeservesthe supportofCroatianpolitics,administrationandsociety, • PROgetsintegratedinHEPGroup‘sproductionstrategyandportfolio,asthey alreadyownlargeportionsofthedata,expertiseandinfrastructurenecessaryfor suchlongtermdevelopmentprojects, • Byendof2011,PROwillbedefinedasaseparatecategoryinCroatia’sfeedin tariffsystemtoalloweconomicboundaryconditionsforpositiveprojectROIs.To fosterrapidcapacityrampup,tariffsshouldnotbeboundtoplantsizes,bein the range of 400 €/MWh, and eventually be dependent on the achievable averageutilization, • A first pilot plant with 5 MW will open in 2013; scaling up in the subsequent yearswillfollowtheleastbarrierandbiggestutilization(ROI)goalsasoutlined below;

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page77 MScProgram RenewableEnergyinCentralandEasternEurope • Membraneindustrywillpickupthemarketpotentialintimeand–togetherwith thefirstmovers–sell membraneswithaspecificpowerof3W/m²in2012to 5W/m²in2020, • After 2020, additional learning curve effects will allow for gains in price/performanceofmembranes,byareductionofcostsperWatt,ofrequired footprintandimprovementofauxiliaryprocessmodules(asoutlinedinchapter 4.4), • Investments will start with „low hanging fruits“; these are waters with high achievableFLHsandthereuseofalreadyexistinginfrastructure(e.g.,tailwater ofHEDubrovnik), • A maximum of 15 MW p.a. will be installed per year and this annual implementationcapacitycanbeachievedfrom2024onwards;thisalsomeansa plantwith50MWisimplementedinseveralblocksorphases, • Existingbarriersbasedonprotectedareaswillbeavoideduntilthetechnologyis fullyprovenandaccepted.Permanentreductionsinclude: o TheKrkaNationalParkwith12.5MWcapacityor28GWh(atrequired 4,500FLH)eliminatedfromthepotential,and o AlimitationoftheNeretvaexploitationtoamaximumcapacityof30MW, resultingfromadditionalenvironmentalprotectionprovisionsthatrequire atleast5.500FLHforapositiveROI(thisleadstoafurtherreductionof 248GWhfromthereasonablepotentialof1,113GWh(atrequired4,500 FLH), • AnnualextensionofinstalledcapacityisassumedtofollowthepatterninTable 22,takingintoaccountthebarriersoftimeconsumingcapacitybuildingandthe futureoptimizationofthePROtechnologyimplementation. Table 22: Capacity extension projection scenario 2010-2030

AsummaryoftheprojectedscenariodevelopmentisshowninFigure53

1.200 160

140 1.000 Possible Capacity Increase 120 and Realisable Potential 800 100

600 80 Reasonable Potential [GWh]

GWh, FLH GWh, 60 Realised Potential [GWh] 400 40 Capacity increase p.a. [MW] 200 20 Capacity installed [MW]

0 0 installed capacity and increase[MW] 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Figure 53: A possible scenario for the realisable potential

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page78 MScProgram RenewableEnergyinCentralandEasternEurope 6.4.4.2 Total and Midterm Realisable Potential

In total, after accounting for the above listed environmental barriers and scaling delays, the realisable potential in 2030 amounts to 830 GWh (at required 5,000 FLH),relatingto~9%ofthetheoreticalor~19%ofthetechnicalpotentialand2.1% ofCroatia’sprojectedelectricityconsumptionin2030. Accordingtoabovescenario,the midtermpotential (realisableby2020)is252GWh, or2.8%ofthetheoreticaland5.8%ofthetechnicalpotential,meeting0.9%ofthe totalconsumptiondemandprojected.

6.4.5 Existing or Planned Hydropower Projects Impacting PRO Projects

A major boundary condition is neglected in the scenarios described above: the influenceoftheexistingandplannedhydropowerplants’waterregimes.Manyofthe existing plants are exploiting the waters that are potential sources for the PRO technology.

Figure 54: HEP hydropower plants 143 143 HEPHydro

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page79 MScProgram RenewableEnergyinCentralandEasternEurope TheinfluenceoftheseplantsonthepotentialyieldofaPROplantinthetailwaterof ahydropowerplanthasnotbeenfactoredinintothepotentialscalculation. Riverswithexistingplantsmightshowdischargeswithstrongshorttermfluctuations that might destroy the technical and economic potential of a site. Storage plants especially,willproduceanunpredictabletailwaterflowandthewaterregimeofthe plantneedstobeanalysedfirstbeforeasitecanbeinvestigatedforfurtherproject development. Existingpowerplantsontheriversanalysedare 144 : • KrkaOzalj(runofriver,Qi=85m³/s), • Rječina–Rijeka(runofriver,Qi=21m³/s), • LikaandGackaSenj(diversionandrunofriver,Qi=60m³/s), • Cetina–Peruća(adjacenttodam,Qi=120m³/s),Orlovac(storage,Qi=70 m³/s), ðale (storage, Qi = 220 m³/s), Zakučac (diversion, Qi = 220 m³/s), Kraljevac(diversion,Qi=55m³/s)powerplantsandBuškoBlatopumping station, • Trebišnjica HE Dubrovnik (storage, Qi = 90 m³/s) and Zavrelje (storage, Qi=3m³/s); • Neretva–severalinBosniaiHerzegovina. Hydropower plants are not always a disadvantage should they exist in a river investigated for a PRO power plant. If close to the sea, they already provide valuable infrastructure such as grid and logistics access, organizational infrastructure,tailwatercanalssupportingthewaterintake,andacontrollable–at least known – discharge. This will be investigated further in chapter 8 for the HE DubrovnikaspotentialsiteforaPROpowerplant.

144 HEPHydro,West,SouthandDubrovniklinks

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7. PRO Project and Performance Characteristics

7.1 Characteristics of the PRO Power Generation

7.1.1 Base Load Supply

In its supply pattern, PRO behaves similarly tohydropower by deliveringconstant amounts of electricity provided by a constant flow of fresh water. 8000+ full load hours(plantoperation)shouldbeachievable,giventhatthecapacityoftheplantis adjustedtothelowflowcapacityofthefreshwatersupply.

7.1.2 Expected Maintenance Demand

Process experience in production scale is not yet available. The following facts predictarelativelyhighdemandofmaintenanceworkandcost:

• Dependencyoftheoptimalprocessonnatural–andchanging–conditionsof thefreshwaterresource(draught,flood,pollution,organisms), • Aggressivesalineseawateracceleratesthecorrosionofmaterials, • The planned life cycle of key components (membranes and filters) are much shorterthantheplantlifecycle, • Implementationofamultitudeofsinglecomponents(membranes,valves,pipes, pressureexchangers,pumps,etc.)makeconstantmonitoringcomplex.

7.2 Characteristics of a PRO Project Development

7.2.1 Complex decision making and certification process

Although in its essence the PRO concept must be seen as a very sustainable renewable energy, various factors can make a project development decision a comparablychallengingexercise.Aprojectdeveloperwillrequirestrongpoliticaland financialbacking:

7.2.1.1 Stakeholder interests

Similartoanyotherpowergenerationproject,aprojectdeveloperwillfacemultiple opposing and conflicting interests in the decision making process. Most likely the process will be governed by an environmental impact assessment procedure. Stakeholdersandinterestsinclude:

• Marine:waterprotectionandcoastaltrafficcontrol • Hydrology:municipalandagriculturalwatermanagement

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page81 MScProgram RenewableEnergyinCentralandEasternEurope • Fishery:Protectionoftypicalfishspecies,fishandmusselfarms • Tourism: Protection of scenery, especially in protected areas and attractive landscapes,typicalforriverdeltas • Environmentalists: protection of habitats, landscapes, water quality, denial of gridconnections,largeconstructionandlogisticsfacilities,etc. • Utilities: competing rights for (upstream) water management according to hydropowerdemand No stakeholder opposition must be expected regarding certain environmental hazardsbasedonpollution.Therearenoemissionsintosea,riversortheairthat are caused by the PRO process as such.Only auxiliary processesforproduction andmaintenancemightcauserelevantexposuresthatwouldneedtobeaccounted forinaplant’slifecycleassessment.

7.2.1.2 High investment costs

Compared to other RESe technologies, high investment costs will be typical for PROpowerplants.Incontrast,ahighutilizationlevelexpressedinfullloadhoursis expectedtoenableafinalpaybackoftheinvestmentafterareasonableperiod. As elaborated in the chapters above, uncertainties exist in the required specific membrane surface (m²/W), the membranes’ actual life time, the required process andfacilitiesforwaterpretreatment,thedensity(space)ofcomponentsnecessary for1Wandultimatelytheirresultingdemandforthetotalplantfootprint.Noindustry benchmarksexistforanaccurateinvestmentcalculation;onlysomeanalogiescan be taken from the PRO technology’s closest relative, the reverse osmosis desalinationprocess.

7.3 A Simplified ROI-Model

AsPROisacompletelynewtechnology,atleastinitscore,onlyroughestimations canbegivenforthecostofconstructionand–evenmore–fortheoperationofa plant. As mentioned earlier, an analogy can be taken from the sea water desalination industry since many of the same components are used. At the same timethedifferenceswillbehuge,especiallyforthenecessarywaterpretreatmentin the desalination process which requires large amounts for chemicals in the operation.Thebelowestimationsfora5MWplanthavebeenelaboratedbasedon discussions with representatives from the SWRO desalination engineering, the membraneindustry,theconstructionbusinessandfromsmallhydropowerindustry. Threescenariosaredeveloped:

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page82 MScProgram RenewableEnergyinCentralandEasternEurope • bestestimate, • worstcaseand • bestcase. Threelevelsofconfidenceareconsideredforeachiteminthecalculation:

• A:veryconfident–costslevelsmightvary+/10%, • B:confident–costlevelsmightvary+/20%, • C:lessconfident–costlevelsshouldbeinavariationof+/30%, • D:veryunsecure–costlevelstovarywithinarbitrarilysetboundariesbasedon personaljudgement. TheROIscenariodoesnottakeintoaccount:

• Potentialimpactoftaxes, • Financingcostsfortheimplementationperiod, • OpportunitycostsofCO2omissions, • Earningsforanoperatorandreturnfortheinvestorotherthanthoseincludedin thediscountrate. TheROIcalculationshouldshowahighlevelestimationofthemagnitudesinterms ofinvestmentrequirementsandoperationalcostsforthePROtechnology.Itshould alsorevealthesensitivityoftheeconomicperformance–theproject’snetpresent valuetospecificcostfactors.

7.3.1 Input Parameters for ROI Scenarios

Table23displaysthemaintechnologicalparametersforaPROpowerplantandthe estimatedorcalculatedvaluesfortheseparametersforeachofthescenarios.All variablefieldswhichallowinputarecolouredyellow,greenorred. Thefeedintariffsarecalculated(goalseek)foreachscenariosothatnetpresent values are zero for a calculation period of 20 years. Then, details of the ROI calculationareshownforthe bestestimate scenarioandonlythemainresultsare givenforthebestandworstcasescenario.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page83 MScProgram RenewableEnergyinCentralandEasternEurope Table 23: Parameters for the ROI calculation

7.3.2 Best Estimate Scenario

Forthe bestestimate scenario,theinvestmentcostspermainitemandgroupshow thefollowingmagnitudesandweights: Table 24 : Best estimate scenario investment costs in €

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page84 MScProgram RenewableEnergyinCentralandEasternEurope

Static operating costs (for period t 0) are calculated as follows (the dynamic ROI calculationisshownfurtherbelow): Table 25: Best estimate scenario operating costs (static)

Revenues are calculated based on feedin tariffs (FIT) that allow for the project breakingevenwithina20yearsinvestmenthorizon.Table26showstheparameters that lead to a revenue calculation. After the feedin tariff period an estimated electricitypriceisused,takingintoaccountasetelectricitypriceindex.Thefeedin tariffsaresetforaperiodof12yearsandtheyareadjustedwiththeconsumerprice indexaccordingtothefeedinregulationinCroatia(seealsochapter5.2.5.2). Table 26: Best estimate scenario revenue assumptions and NPV

7.3.2.1 Return of Investment

NetPresentValues(NPV)havebeencalculatedforthecostandrevenuesidefor 30,20and12yearseach,thelattertoshowtheresultoftheinvestmentafterthe

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page85 MScProgram RenewableEnergyinCentralandEasternEurope expiryoftheeligibilityforafeedintariff(FIT)inCroatia.Viathegoalseekfunction ofMSExcelforthe20years’NPVbeingzero,theamountoftherequiredfeedin tariffresultedto~260€/MWh.Thisscenarioequalsabreakeventimeforoperation of20years.Incomparison,thecurrentmaximumfeedintariffintheCroatiantariff schemeisgrantedforPhotoVoltaicelectricitygeneration,with490€/MWhforplants ≤10KWand303€/MWhforplants>30KW 145 . Throughoutthis bestestimate scenario,theannualoperationcostsarehigherthan theachievablerevenuesbasedonmarketprices.Therefore,anyoperationlonger than20yearsmustresultinlossesshouldtheestimatedparametersstayvalid: Table 27: Best estimate scenario ROI for 30, 20 and 12 years in €

7.3.2.2 Levelized electricity costs and yield

For the calculation of the levelized costs of electricity (cost per MWh over the expected lifetime) theNPV of total costs is divided by the NPV of the generated MWh.Likewise,theproject’srevenuesarecalculatedasspecific(levelized)yields forthevariouslifetimeperiods. Table 28 : Best estimate scenario - levelized cost of electricity and specific yield

Levelized costs of electricity (LCoE)for a 20 years operation in the best estimate scenarioamountto~208€/MWhor~190€/MWhfora30yearsoperation.These 145 RESTariffs(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page86 MScProgram RenewableEnergyinCentralandEasternEurope LCoEaresignificantlyhigherthanthecostsofelectricitywhicharepropagatedby Statkraft.StatkraftestimatesthecompetitivepricelevelforPROtoabout50–100 €/MWhandthecoststobe“inlinewiththecostsofwindoffshore”by2015 146 (see alsochapter7.5).

7.3.3 Worst Case Scenario

Theworstcasescenarioisthescenariowhereallparametersaresettotheworst extremefortheROIcalculation.Inthisscenario,atheoreticalamountofthefeedin tariffneededforabreakevenoperationafter20yearswouldbe685€/MWh.(The current maximum feedin tariff in the Croatian tariff scheme is granted for Photo Voltaicelectricitygeneration,with490€/MWhforplants≤10KWand303€/MWhfor plants>30KW. 147 )

7.3.3.1 Return of Investment

Table 29: Worst case scenario ROI for 30, 20 and 12 years in €

As expected, also in the worst case scenario the revenues do not cover the operatingcosts,sothattheNPVdeterioratesandturnsnegativeafterfeedintariffs seize.

7.3.3.2 Levelized electricity costs and yield

Table 30: Worst case scenario - levelized costs of electricity and specific yield

146 Skilhagenet.al.(2008),p.480 147 RESTariffs(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page87 MScProgram RenewableEnergyinCentralandEasternEurope The worstcase scenarioisnotofrealvaluefromaprojectdevelopmentperspective, asthecombinationofonlyafewworstcaseparameterswouldimmediatelystopthe developmentworkandisalsonotrealisticallyassumed.Intheworstcasescenario, LCoE of >500 €/MWh are about the five to tenfold of the stated target line for electricitygeneration.

7.3.4 Best Case Scenario

The bestcase scenarioisthescenariowhereallparametersaresettothepositive extreme,bestpossiblefortheROIofaproject.Itrepresentsthetargetscenariofrom aprojectdevelopmentperspectivewithregardstothoseparameterswhicharesite specific. This scenario also comes close to a target scenario from a technology evaluation perspective as many parameters reflect a “to be expected” state of technologyand/ortheircorrespondingcoststhatappearachievableinmidterm.

7.3.4.1 Return of Investment

Table 31: Best case scenario ROI for 30, 20 and 12 years

In the best case scenario, the feedin tariff required for a breakeven point at 20 yearsis~80€/MWh.ComparedtothecurrentmaximumfeedintariffinCroatiaof 490 €/MWh for PV plants ≤10 KW and 303 €/MWh for PV plants >30 KW 148 the breakevencalculationshouldleaveenoughflexibilitytodefineaFITthatallowsfor anoperator’sandaninvestor’smarginstobeincluded.

7.3.4.2 Levelized electricity costs and yield

With ~100 €/MWh, the LCoE in the best case scenario come close to the expectations stated by Statkraft (50100 €/MWh). Except the fact that Statkraft is 148 RESTariffs(2010)

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page88 MScProgram RenewableEnergyinCentralandEasternEurope using a bigger plant capacity (25 MW) as basisoftheir calculations,there are no conditions and parameters available as applied by Statkraft. Hence, no detailed comparisons can be analysed to unveil where the differences occur beyond the apparenteconomiesofscale. Table 32 : Best case scenario - levelized costs of electricity and specific yield

7.4 Sensitivity Analysis for Selected Parameters

7.4.1 Sensitivity of Capital Expenses (Best Estimate Scenario)

The net investment in the Best Estimate scenario amounts to about 50% of the overall costs (NPV).Within the investment costs, the sensitivity is shown towards changes in the specific construction costs and, representing the new technology, towardschangesinthespecificmembranecostsaswellasthespecificpowerper membranesquaremeter. Sensitivity of Investment Costs [€] (Best Estimate Scenario) 80.000.000

70.000.000

60.000.000 Constr. Costs (500€/m²)

50.000.000 Specific power (3W/m²) 40.000.000 Membrane spec. costs (9 €/m²) 30.000.000 10% 30% 50% 70% 90% 110% 130% 150% 170% 190% Figure 55: Sensitivity of investment costs in the best estimate scenario

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page89 MScProgram RenewableEnergyinCentralandEasternEurope 7.4.2 NPV Sensitivity to Operating Costs and selected Indices (Best Estimate Scenario)

Thisanalysisshowsacleardependencyofapositivereturnoninvestmentonthe maintenance costs that are necessary for keeping the plant operational. This appearsasaweakpointintheoverallassessmentas,comparedtotheestimation of investment costs, even less analogies to the desalination technology can be derivedsincenoprocessexperienceisyetavailable.Withinthemaintenancecosts, the biggest portion is dedicated to the balanceofplant costs (BoP), which are a ruleofthumb percentage applied during project feasibility studies. BoP costs represent several different cost categories from project management to plumbing andIT.AcarefulplanningoftheBoPandtheirrelatedmaintenancecostswilllead toamoreaccurateNPVcalculation,aswellasthefirstexperienceswiththewater processelements(pretreatmentandmembranes).

NPV Sensitivity on indices and operating costs NPV 10000000 8000000 Maintenance costs (666 K€) 6000000 4000000 Staff Costs (12 FTE á 40K€) 2000000 WACC (6%) 0 -2000000 Elecricity price index (2%) -4000000 -6000000 Membrane cost deflator (-3%) -8000000 -1000000 parameter variation Figure 56: Sensitivity of NPV to operating costs and indices (best estimate scenario) Also not surprisingly, the applied discount rate (usually the WACC – Weighted Average Cost of Capital is applied) plays a major role in the project’s economic assessment.Asinthebestestimatescenariothefutureannualcostsafterthefeed in tariff grant period are higher than the annual revenues, a higher WACC will increasetheoverallNPVoftheproject.

7.5 Required Subsidies – Feed-in Tariffs

Asformostrenewableenergies,electricitygenerationfromosmoticpowerwillneed enormous financial, technical and political efforts to develop the technology until

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page90 MScProgram RenewableEnergyinCentralandEasternEurope market maturity and cost competitiveness are achieved. Various subsidy instrumentscanbeusedtostimulateresearch,developmentanddisseminationof RES technologies. Feedin tariffs are the most widely used instrument and also implemented in Croatia, where those tariffs span from 490 €/MWh for small PV downto66€/MWhforsmallhydrowithbestutilization. AsPROisinaveryearlyresearchstage,feedintariffsmightnotyetbetheproper waytofacilitatethetechnology’sdisseminationintherealworld.OtherthanforPV, wind or hydropower, where already relatively mature industry with economies of scaleandmarketpricesisestablished,PROprojectswillhaveveryindividualcost calculations.Asshownintheinvestmentsensitivityanalysis,especiallyconstruction costsdemonstrateahugeimpactandtheywillcertainlybeverysitespecific. But feedin tariffs are already popular benchmarks for investment conditions for variousrenewabletechnologies.Theyalsorelatestronglytothelevelizedcostsof electricitythatareinherentinanestablishedRESetechnologylikesolar,windor hydropower.Hence,theyareusedhereasatheoreticaltargetlinefortherevenues necessarytoachievebreakevenconditionsinaPROpowerplantoperationunder certainconditions.

Figure 57: PRO Levelized Cost Of Electricity expectations for 2020 149 149 Skilhagen(2009),p.11

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page91 MScProgram RenewableEnergyinCentralandEasternEurope Statkraft states that the LCoE shall be in the range of 50 – 100 € by 2020, competingwithseveralothertechnologies(seeFigure57).Butasshownabove,the expectation of current cost levels are between ~100 €/MWh (best case scenario) and260€/MWh(bestestimatescenario).Inadditiontospecificsubsidiesforbasic research and development, feedin tariffs must be introduced to bridge the innovationgapandstimulatethedisseminationofPROlikeforanyotherrenewable energy. The expectation of sufficient and secured income, at least over the grant period, will attract applied research, suppliers, operators and investors to develop thePROtechnologytowardsmarketmaturity. Toindicateinwhichrangeafeedintariffwouldneedtobesetinordertoincentivize investments,somecomparativescenariosaredrawn:

Figure 58: NPV scenarios with Feed-in Tariff = 200 €/MWh and 15 or 20 years grant period

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page92 MScProgram RenewableEnergyinCentralandEasternEurope

Figure 59: NPV scenarios with Feed-in Tariff = 300 €/MWh and 15 or 20 years grant period Since investors and operators will only be attracted if profit can be predicted with certainprobability,feedintariffswouldneedtostartintheareaof200–300€/MWh withalongtermhorizonof20years.Dependingonthepaceofdevelopment,tariffs shallbeloweredaccordinglyandthegrantingperiodreduced. Alternatively,thefeedintariffscouldbesetoradjustedbetweendefinedboundaries basedontheindividualcoststructuresofaprojectedplant.Thiswouldenablethe reflectiononspecificenvironmental,hydrologicalorgeologicalconditionswhichare influencingthespecificinvestmentcosts.

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8. Investigating a Feasible Pilot Site: HE Dubrovnik

8.1 Site Description

The HE Dubrovnik plant is a joint operation between Croatia and Bosnia & Herzegovina,builtin1964.ItutilizesthewatersoftheTrebišnjicacatchment,which covers a karstic area of about 1.630 m². Before the Hydroelectric exploitation the Trebišnjicawasalostriver,springingnearBilecaanddisappearingafterthetownof TrebinjeinthefieldsofPopovoPoljeanddischargingviaundergroundconduitsinto the Adriatic Sea. Parts of the Trebišnjica water joined the Neretva river and the Omblaisalsofedfromthesewaters. 150

149 Figure 60: The Trebišnjica catchment area

150 HEPCroatiaPowerPlants,pp.236

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page94 MScProgram RenewableEnergyinCentralandEasternEurope Before the Trebišnjica hydropower system was built, the winter floods were accumulatedinthePopovoPoljefieldsforacoupleofmonths.Assuch,theriver could not be properly used, neither for agricultural nor for power generation. The construction of a series of dams, reservoirs, artificial waterways and hydropower stations enabled a multipurpose water usage throughout the year: electricity generationofabout1,500GWh/yr,floodcontrol,agriculturalirrigationanddrinking waterusage.

Figure 61: Longitudinal section of the Trebišnjica HP system structure 151 TheHEDubrovnikplantisthefurthestdownstreamoftheTrebišnjicahydropower system.Itisbuiltcompletelyundergroundand,since1964,wasplannedtohouse4 penstocksandturbines,2headracetunnelsand2tailracetunnels.Thepowerhouse is built as an artificial cave for the originally planned size, but only 50% of the capacityisimplemented,withtheother50%stillwaitingforrealization.Outofthe2 turbines,oneisownedbyCroatiaandonebyBiH.

151 HEPCroatiaPowerPlants,pp.236

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Figure 62: Powerhouse structure plot plan 152 Theheadracetunneltotallengthis16.5kmwithadiameterof5.56m,carryinga maximumof90m³/sec.Thepenstockis2*282mwith3.9–3.3mdiameter.

Figure 63: Powerhouse and layout 152 HEPCroatiaPowerPlants,pp.236

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page96 MScProgram RenewableEnergyinCentralandEasternEurope Sincealloftheconstructionisexcavatedfromtherock,onlytheswitchyardandthe transmission lines are visible from outside. The tailrace tunnel is an open undergroundchannelwithahorseshoecrosssectionof4,35x8,0mandalength of510m. In front of the tailrace tunnel’s mouth there is a breakwater of 210 m length to protect the tailwater and the plant from the influences of the sea waves. It also divertsthedischargedwaterintotheopensea.

Figure 64: Bird's eye view of the plant and detailed view of the tail-water discharge About6mofthetunnel’s8mheightisbelowthelevelofthesea,whichfluctuates with a maximum of 70 cm above and a maximum of 61 cm below the mean sea level 153 .Thisalsomeansthatwhentheplantisshutdowntheseawaterentersthe tailracetunnel.

8.2 Site Applicability for a PRO Power Plant

ItwasstatedasagoalofthisstudytooutlineifandwhereafeasiblesiteinCroatia couldbetobuildaPROpowerplant.Itisnotthetargettoperformafeasibilitystudy buttoindicate,basedontheavailableinformation,whereafeasibilitystudywould qualifyforapotentialprojectdevelopment. ThehydropowerplantHEDubrovnikwaspreselectedforthefollowingreasons:

153 Sealevel,Dubrovnikdata

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page97 MScProgram RenewableEnergyinCentralandEasternEurope 8.2.1 Fresh Water

Thetailwaterflowofthehydropowerplantis:

• Availableinanexcessiveamountforapilotplantsize, • Relativelyconstantflowingwiththebestpossiblefullloadhoursexpectations, • Alreadyregulatedinaracetunnel,henceintakeconstructionshouldberelatively costeffective, • Availablewithminimaldistancetoaplant.

8.2.2 Sea Water

Seawatersupplyshows

• Goodandstablesalinitygradesincetherearenolargeriversdischargingclose by, • Steepsubsurfacegradientenablingintakeclosetotheplant, • Although in a very touristic coastal area, due to the HEP property ownership thereisnotouristicandmarineusagecurrentlyintheverynearvicinity,except forasmallfishery, • Limitedtidalinfluence, • Noextraordinarypollutantsknownthatcouldnegativelyinfluencetheprocess.

8.2.3 Infrastructural

Duetotheexistingpowerplant,allinfrastructurepreconditionsexist,suchas:

• Roadaccess, • Fulladministrativeandtechnicalstaffandorganization, • Highvoltagegridaccess, • Monitoringandmaintenancefeaturesandstaff, • LandownershipbyHEP, • Secondphaseoftheplantstillinadevelopmentstate,sothatadditional measurementsforintegratingaPROimplementationcanbeincludedinthefinal plans.

8.2.4 Limiting factors

Twolimitationsbecameobviousduringthesitevisit:

• Spaceavailability: AlthoughtheplantareaisownedbyHEPitdoesnotshowtheflatspace necessaryfora5MWplant,whichisforabout20.000m². • Tailracetunnel: Asabout75%ofthetailracetunnelheightaresubseasurface,seawater floodsthetunnelwhenthehydropowerplantisstopped.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page98 MScProgram RenewableEnergyinCentralandEasternEurope Forthesecondlimitation,arelativelysimplecontrolmechanismforshuttingdown thePROplant’swaterintakeshouldbepossibleifnofreshwaterissuppliedtothe intake. Forthefirstlimitation,abypasscanonlybefoundbycarvingouttheplantfromthe rock, as was already done for the first stage of the power plant, including the powerhouse. From the planning of the second phase, where head race tunnel, penstock and tail race tunnel need to be carved out of the stone as well, certain investment numbers are known and used for a site specific cost calculation, with substantial increase as surcharge for the pure rock volume to be disposed or re used,e.g.,inacementmill. Atthesametime,thecarvingoftheplantwouldallowasubsurfaceconstruction, whichallows,accordingtoStatkraftcalculations,themostefficientoperationofthe PROprocess 154 .

8.3 Site Parameters and ROI for a 5 MW PRO Plant

Basedonthenumbersandthecalculationmethodsusedforthescenariosexposed inChapter7.3,acalculationwasperformedwithprojectparametersmoreprecisely definedandalignedtotheselectedsite. Thesechangeshavebeenapplied:

• Administrationstaffreducedasexistingteamcouldbereutilized, • Constructioncostsfortheplantaccordingtoinrockdesign, • Constructioncostsforwaterintakedueto„ideal“constellations, • Introduction of an area compression factor to reduce footprint and volume in exchange for slightly higher maintenance costs for membranes and pressure exchangers(moredifficulthandling), • Balanceofplant costs reduced as many facilities can be reused from existing HEoperationandexistingHEPinfrastructure, • Ahighercostdeflatorformembranessincethestartingpointiswith3W/m²only andafutureincreaseto5W/m²isnotincludedinthecalculationelsewhere, • IntroductionoftheAdriaticsalinityfeatureofa8%higherosmoticpressuredue tothesalinityof38insteadof35, • Internallossessetto20%duetosubsealeveldesign.

ThelistofestimatedparametersisfoundinTable33.

154 Skilhagenet.al.(2008)p.479

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page99 MScProgram RenewableEnergyinCentralandEasternEurope Table 33: List of parameters for a theoretical 5 MW PRO plant at HE Dubrovnik

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Table 34: Investment costs of HE Dubrovnik 5 MW PRO plant

As expected, thetotal investment costs are very much influenced by the massive constructioncostsduetoinrockdesign. Alsovisibleisthestrongfactorthatmembranecostsplay,withagoodoutlookinthe futureduetoexpectedincreaseofspecificpowerandreductionofspecificcosts. AccordingtotheestimatesandtheresultingROIfigures,theproposedfeedintariff issetto250€/MWhfor20years,whichresultsinapositiveROIforaninvestor,with theprojectbreakingevenafter~15years.

NPV [€] for HE Dubrovnik - 5 MW PRO Power Plant 40.000.000

20.000.000

0 1 6 11 16 21 26 31 36 41 -20.000.000

-40.000.000

-60.000.000 Figure 65: NPV for HE Dubrovnik 5 MW PRO plant Overall,theofHEDubrovnikcanbeseenasanearlyidealsiteforapilotproject with the PRO technology. It shows that even with the biggest restriction of “no space”andthemostexpensivebypass–placingthewholeplantintotherocka plausibleprojectcalculationispossible. Afeedintariff,asproposedwith250€/MWhfor20years,appearstobeaveryhigh cost burden for the electricity consumers. Yet, it is still moderate compared to 490€/MWh (even if only for 12 years) for an already very much established technologysuchasPV.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page101 MScProgram RenewableEnergyinCentralandEasternEurope Table 35: Levelized costs of electricity for the HE Dubrovnik 5 MW PRO plant

AlthoughtheHEDubrovniksiteisregardedasawellsuitedpilotsite,theLCoEare stillsignificantcomparedtocurrentalternativesandalsotothestatedfuturetarget costs.ButconsideringthatthePROtechnologyisstillevolvingfromitsresearchand developmentphase,thenumberslookverypromising. Additional benefits from the plant could be generated, as about 15% of the fresh waterfeedarenotusedintheactualosmoticprocessbutarespilledasfreshwater bleed into the sea. This water already has undergone the pretreatment process (filtering)andhencecouldbeusedforbackingupthepotablewatersupplyofthe surroundingsettlements.

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9. Summary

9.1 Croatia’s Preconditions for Renewable Energy

The Republic of Croatia presents itself as a market ready for renewable energy generally,andtheinvestigatedosmoticpowergenerationwiththePROtechnology specifically. With the accession to the European Community, which is expected withinthenextfewyears,numerouslegislativepreconditionsfornewprojectshave been established. These include stateoftheart procedures to ensure environmental protection (environmental impact analysis), to foster the use of renewable energies (feedin tariffs, grid connection grants), to liberalize the electricity market and, last but not least, to create a positive climate for foreign investments. Even if current numbers about the renewable energy adoption do not reflect this openness, pressure will increase to accelerate, due to an ever growing electricity hunger, to the growing competition in the European energy markets, and to the predictedincreaseofpricesoffossilfuels,onwhichthecurrentandplannedpower generationrelies.

9.2 Hydrology Preconditions for Power Generation

Croatiahasrelativelygoodpreconditionsforhydrobasedpowergenerationandhas astrongheritageinharnessingit,withrootsgoingbacktolNicolaTesla.Croatia’s mostopulentwaterresourcesareintheDanubecatchmentarea,buttherearestill considerable catchments discharging into the Adriatic Sea via small and medium scale rivers. Of these, only the Neretva River can be seen as a streamlike river carryingmorewaterthanallofthesmallriverstogether.TheNeretvaalreadysuffers fromwaterdemandcompetition,agriculturalirrigationpollutionandherdeltaspans kilometresofflatlandwhichmakesPROutilizationconsiderationsmoredifficult. Alloftheriversarealreadyheavilyexploitedbyhydroelectricpowerplants,withstill a tremendous potential left for additional small and medium classical hydropower stations.Allhydropowerplantshaveoneproblemincommon:thebigvariationsin precipitation, often causing floods in winter and draughts in summer. The counter measure was building dams and reservoirs to regulate and stabilize water resources,butthereremainsastrongdependencyontheamountofwateravailable for power generation, leading to a reduction in achievable fullload hours of the plants.

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9.3 Hydrology Conditions for PRO Potential Calculation

Comparable to the classical hydropower generation, osmotic power constitutes a baseloadpowersupplytechnology.Itreliesonaconstantfreshwatersupplyand quality, hence requires stable conditions in the rivers’ flow (usually measured in m³/sec). In order to derive the achievable energy potential of osmotic power, the daily flow data ofthe riversfor the lastten yearsfrom the Hydrology Institutes of Croatia and BiH (for Neretva) were used. For waters where no flow data was available, analogies have been drawn to trace the flow dynamics. For ecological reasons,aminimumresidualwaterflowequalto100%oftheaverageminimumflow ofthelast10yearshasbeenappliedtothepotentialscalculation. Inadditiontothefreshwaterconditions,thesalinityoftheAdriaticSeawithasalinity grade of 38 is exceptionally good, as the average salinity stated in literature and applied in research is about 35. These conditions will achieve a slightly (~ 8%) betterpoweryieldthroughtheosmoticprocess.ThisAdriaticfeaturehasnotbeen included in the overall potentials calculation as it would require also the considerationoftheactualsalinitygradesofthefreshwaterside. The TheoreticalPotential wasderivedfromthesumofaverageflowdataofallrivers andaphysicalconstantforspecificosmoticpoweryieldfrommixingfreshandsea water.Croatiahenceshowsatheoreticalenergypotentialfromsalinitygradientvia osmosisof8.8TWhp.a.

9.4 Reasonable and Realisable PRO Potential in Croatia

ThegrosspoweryieldofthePROprocessis1MWper1m³/soffreshwaterwithan efficiency of 75% to 80% based on various factors. The Technical Potential is calculatedbasedonthoseprocessparameterswhichareexpectedtochangewithin the next 20 years due to efficiency gains. The Technical Potential for 2010 is calculatedwith4.33TWhp.a.andfor2030estimatedto4.6TWhp.a. For the Realisable Potential in Croatia, actual flow data and environmental restrictions(Naturalparks,etc.)havebeenconsidered,butalsoa“commonsense” economicbarrierthatlimitstheoverallpotentialandisinherentinthetechnology. Therefore, a Reasonable Potential was introduced, defined as the Technical Potential limited by a minimum utilization, which was set to currently 6,000 FLHs, degradingto5,000FLHin2030.Fullloadhoursareexpressedastheplant’sannual energygenerationperitsratedturbinecapacity.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page104 MScProgram RenewableEnergyinCentralandEasternEurope This ReasonablePotential currentlyamountsto0.83TWhandgrowsto1.1TWhin 2030.Thismaximumrealisablepotentialis~4%ofcurrentelectricityconsumption and,respectively,~3%ofthepredictedconsumptionin2030.

9.5 Inhibitors for the Realisable PRO Potential

Ascenarioforarealisablepotentialhasbeendrawnuntil2030withalistofcertain limitations and preconditions for dissemination of the technology. The PRO technology’s limiting factors are mainly the very early state of technology which requires lengthy capacity building, the availability of efficient membranes in the marketand,especially inareaswhere landisscarceandexpensive,themassive requirementforplantarea.DespitethefactthatPROcanbeseenasecologically friendly,thereareothernaturalinhibitorstoafastdissemination.Especiallythefact thatfreshwateristakenfromtheriverbed,atleastforasmalldistancebutinthe ecologicallyimportantrivermouth,willfindopponentsinecologyandfishery.Where riverdischargeisflatorintoestuaries,thenecessarydistancesforfreshand/orsea waterintakewillputadditionalburdensontheenvironmentalandeconomicbalance oftheproject. GiventhefactthatPROpowerplantscanonlybebuiltwhereriversmeettheseait mustbeacknowledgedthattheseareasusuallyareeithertouristic–asin or industrial zones. Both scenarios work against the PRO requirement for large spaceoccupation(~20,000m²for5MWgross).

9.6 The State of PRO Technology and its Economics

The PRO technology can be called “bleeding edge” in the sense that its implementationisnotprovenyetinascaledproduction.Thedemonstrationplantof Statkraft is built for a capacity of 10 KW and will prove the functioning of componentsandprocess.Keymodulessuchasthemembranesarehandcrafted and the complete process, including water pretreatment, is being verified and optimized for the local conditions. The vast amount of membrane area necessary (5millionm²for5MW)willchallengeanindustrythatiscurrentlyfocusingonwater treatment such as the sea water desalination with similar, but still different membrane products. Should PRO succeed, this industry will have to produce a multitudeoftheircurrentmembranecapacities.Inaddition,othercomponentssuch as energy (pressure) recovery devices are taken from the RO desalination technology (Reverse Osmosis). Although available and proven, the technology is

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page105 MScProgram RenewableEnergyinCentralandEasternEurope expensive and longterm total cost of ownership for the PRO usage is still to be verified. Therefore, many assumptions have to be made for a “general” economic assessmentofthetechnologyuse.Ascenarioapproachhasbeenselectedwitha “bestestimate”,a“bestcase”anda“worstcase”scenario.Fortheparametersthat influence a plant’s investment and operation costs, the “best estimate” has been derived from discussions with project representatives of the hydropower, desalination and construction projects development as well as from membrane production.Basedontheconfidenceintheaccuracyoftheestimate,deviationsfor best and worst case are calculated. No differentiation has been made about possible root causes of best or worst case realisation (technology, site, hydro geology,environment,etc.). Foreachscenarioandtheprojectlifetimesof20,30,40and50yearsaReturnof Investmentcalculationwasperformed,plusfor12years,whichisthecurrentgrant period for feedin tariffs in Croatia. In order to analyse the required subsidies, a feedin tariff has been introduced that allows for a project’s breakeven after a 20yearoperationperscenario. Accordingly, feedin tariffs of ~260€/MWh in the best estimate scenario, or ~80€/MWhinthebestcasescenario,allowtobreakevenafter20yearsunderthe setconditionsperscenario. Forthebestcasescenario,anda20yearinvestmenthorizon,theLCoEamountto ~100 €/MWh, comparing well to a target level of 50100 €/MWh as stated by Statkraftfor2020.

9.7 Potential Pilot Site Selection and its Economics

Inordertodelivermorepreciseestimationsandarealisticscenarioforapilotplant, themostpromisingsitehasbeenlookedforwithregardstowatersupplyandother factssuchasinfrastructureorpossibleownershipoflandandprojectdevelopment. ThetailwateroftheexistinghydropowerplantofHEPinDubrovnik(HEDubrovnik) hasbeenselectedasanearlyidealpilotsite.Afterasitevisitanddiscussionswith the plant staff, the parameters list for the ROI calculation was adapted with site specificinformation.ThisincludesthefactthatalthoughHEPownsalargeplotof landinwhichthepowerplantisplaced,thereisnoavailablespacetoaccommodate the20,000m²requiredfora5MWPROpowerplant.Theonlysolutiontobypass thisrestrictionwasincludedintheinvestmentcalculation:tocarvetheplantintothe rocks,aswasdoneinthe1960sfortheexistingpowerplantstructures.

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page106 MScProgram RenewableEnergyinCentralandEasternEurope Despite this huge burden on the investment costs, a surprisingly positive return resultedfrominvestmentcalculation:Thelevelizedcostsofelectricity(LCoE)within an investment horizon of 20 years are 210 €/MWh, or 190 €/MWh for 30 years. TakenintoaccountthatforsmallscalePV(<10KW)afeedintariffof490€/MWhis grantedfor12years,theremustbearealisticsubsidyscenariopossibleforthePRO power generation technology. An ROI for investment horizons up to 50 years is shownwithaproposedfeedintariffof250€/MWhandagrantperiodof20years. Theprojectwouldbreakevenafter~15years.

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10. Conclusions

Croatia’s technical potential for the PRO power generation has been assessed to 4.3TWh.Thereof,thereasonablyrealisablepotentialof~1TWhconstitutesabout 4% of the country’s current (predicted) 2010 electricity demand. This demand will steeply increase over the next 30 years, and so does the requirement for adding additional production capacity. Based on favourable natural conditions, renewable energytechnologieslikehydropower,windandPV,haveagreatpotentialtogrowin capacityinstalled.Thesetechnologies,however,arestronglycompetingforlimited investment funds for national infrastructure, which puts large scale / least cost solutionsupontheinvestors’prioritylist. Atthesametime,thePROtechnologyhasevolvedfromaresearch&development to a prototype stage, with Statkraft (Norway) pursuing the technology’s market maturity. Harnessing the salinity gradient of sea and fresh water with the PRO processisindeedafascinatingrenewableenergyapplication,withthepotentialto generaterenewableelectricityinanemissionfreeandsustainablemanner.Current investment costs estimated for PRO based power, and the resulting energy, rank the technology above the existing alternatives such as wind and hydro. Yet, with assessedlevelizedcostsofelectricity(LCoE)intheareaof200€/MWh,thePRO technologyshouldbeabletocompetewithsolarpowerrightfromthebeginningof commercialprojects. StatkraftisexpectingLCoEtoreachof50–100€/MWhby2020,althoughseveral factorschallengethisoptimisticview:

• NomembraneforPROiscommerciallyavailableinearly2010; • Existingprototypesachieveabout¼ofthetargetspecificpowerof5W/m²; • A25MWpowerplantwillrequirefourtimestheannualamountofcomparable membranescurrentlyproducedforthedesalinationindustry(basedon2W/m²); • ManystepsinthePROprocessarecurrentlyoptimizedfortheconditionsfound in Norway; other sites will find different water compositions and environmental influences; ButtherearealsostrongsupportingfactorsforleveragingthePROtechnology:

• A steep learning curve is expected, once commercial membrane production is scalingup; • A strong interest is visible from various stakeholders, including research & development,manufacturing,utilitiesandpolitics;

Master‘sThesisOsmoticPower–APromisingRenewableEnergySourceforCroatia? WernerKlein Page108 MScProgram RenewableEnergyinCentralandEasternEurope • A European policy framework that fosters the RES development and enables countriestodefinesupportingrules,includingforOceanEnergy; • The need for capitalizing on all alternative sources for electrical energy, in preparation for a future with scarce and expensive fossil – and nuclear resources; • An obvious commitment from Statkraft to further pursue the PRO technology towardsmarketmaturity. Projectdevelopmentwillrequirestakeholderswithstablestructuresandprocedures and a deep involvement of multiple regulatory bodies with expertise similar to but extendingthehydropowerapplication.Hence,earlyPROprojectsareexpectedto staywithintheinfluenceandportfolioofincumbentandstrongutilitycompanieswith thefinancialstrengthsrequiredtostartandcarryoutsuchlongterminvestmentsin ariskyenvironment. For the growing Croatian electricity demand, osmotic power will be a future alternativeenergysource.Oncematured,thePROtechnologycanbecomeaniche market player and provide a base load capacity of more than 100 MW. Project developerswillmeetgoodenvironmentalconditions,especiallyfromafreshandsea water perspective; and they will be able to utilize a marine and hydropower engineeringexperienceof,bythen,probablymorethan135years! 155

155 NicolaTeslabuiltthefirsthydropowerplantattheKrkawaterfallsin1885;seealsochapter1.

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11. References

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VisegradFour Energetika.net (2010) 15 billion Euros for investments in Croatia's energy sector by 2020 http://www.energetika.net/eu/novice/electricity/15billioneurosforinvestmentsin croatiasenergysectorb(March1 st ,2010) (archived http://www.webcitation.org/5sq9vEzeu Sep18,2010) Vrouwenvelder J.S.Vrouwenvelder,C.Picioreanu,J.C.Kruithof,M.C.M.vanLoosdrecht: etal.(2010) Biofouling in spiral wound membrane systems: Three-dimensional CFD model based evaluation of experimental data JournalofMembraneScience346(2010)pp71–85 Water HrvatskeVode Management STRATEGIJA UPRAVLJANJA VODAMA Strategy(2009) ISBN9789537672003,March2009 http://www.voda.hr/fgs.axd?id=1344 (June12,2010) (nowebcitationpossible) Watersee TheGlobalEnvironmentFacility(GEF)InternationalWatersLearningExchangeand Trebišnjica ResourceNetwork Home page – SEE water bodies – Inventory of surface Waters - Access http://www.watersee.net/trebisnjicariver.html (archived http://www.webcitation.org/5qYRlAawr June17.2010) WFDCroatia EU–CroatiaTwinningProjectWaterFrameworkImplementation Maps Home page –> Downloads -> Maps http://www.wfdcroatia.eu/templates/radnaEng.asp?sifraStranica=622 (archived http://www.webcitation.org/5qYRoGHWN June17,2010) Worldbank Worldbankhomepage CountryBrief Country Brief Croatia 2010 http://www.worldbank.hr/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/CROATIAEX TN/0,,contentMDK:20150212~menuPK:301252~pagePK:141137~piPK:141127~the SitePK:301245,00.html (archived http://www.webcitation.org/5qYRsQ6d5 June10,2010) About WebCite: WebCite ®,amemberoftheInternationalInternetPreservationConsortium,isanon demandarchivingsystemforwebreferences(citedwebpagesandwebsites,orother kindsofInternetaccessibledigitalobjects),whichcanbeusedbyauthors,editors, andpublishersofscholarlypapersandbooks,toensurethatcitedwebmaterialwill remainavailabletoreadersinthefuture.http://www.webcitation.org/index

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12. Appendix

12.1 Potentials and Development Scenario

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