Energy Strat egy and P olicy of Kos ovo White Paper
INVESTMENT PLAN
This chapter provides assessments of required investments for the period 2003 – 2008, divided in the parts, and some for the 2009 and beyond:
i) Immediate: 2003 – 2005 ii) Medium ter m: 2005 – 2008 iii) Long-term: 2009 and beyond
In principle, little estimates are provided for the necessary investment for the period beyond the 2009, because it w ill very much depend on the developments w ith establishment of Regional electricity market that should be w ell operational by than.
Anticipated market liberalization and private sector participation w ill also impact significantly the future investment needs for development of Kosovo energy sector.
How ever, investment plans for transmission and distribution netw ork reinforcement are more detailed than for the other sectors’ investment and there is an outlook for the needs beyond 2009 because these w ere studied in more details during the 1st World Bank energy sector technical assistance project.
The investments into these tw o areas are also very important because they should bring about the improvements of the basic pow er system infrastructure – transmission and distribution netw orks – that are prerequisites for reliable supply and electricity market’s stable operation.
POWER SYST EM DEV ELOPM ENT
Generation and supply
A new power plant has to be built in Kosovo as soon as possible. It w ill be based on indigenous lignite, so it w ill use “Clean coal technology” w ith required environmental protection measures as per relevant EU directives for new power plants.
The capacity may be betw een 300 – 900 MW, w hich w ill suffice for supply of Kosovo and demand and for export on the regional electricity market that w ill be operational by the time the Plant is constructed.
The investment for this pow er plant can not be provided from Kosovo sources (Government – KEK), hence an IPP w ith involvement of IFI w ill need to be attracted to build and operate new plant.
The pending 2nd World Bank study w ill provide recommendations for improvement of investment framew ork for energy sector in Kosovo.
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Energy Strat egy and P olicy of Kos ovo White Paper
Government has to set aside some funds necessary for promotion of investment opportunities in pow er sector of Kosovo, and for legal advise at the time of negotiations w ith prospective IPP’s.
Transmission Network
Investments for the period 2003- 2005
Transmission Development Plan by 2005 proposes several new and upgrade projects. Total installed capacity of substations and length of transmission lines planned for construction during that period are as follow s:
New Transmission Investment Costs Network Elements To ta l (1000 US$) 400/110 kV Substations 300 MVA 9,222 400 kV Overhead Lines 4 km 820 110 kV Overhead Lines 92 km 10,596 110 kV Cable Lines 8 km 2,440 Rehabilitation and replacement 3,871 of existing elements
Total investment costs by 2005 are 26,952,000 US$.
The main netw ork element is the new Peja III 400 kV substation to be constructed during the period 2004-2005, w hich allow s for drastic decrease of transmission constraints as well as a significant reduction of pow er and energy losses. Detailed deter ministic reliability studies have show n a general improvement of the transmission system behavior eliminating the bottlenecks and other restrictions of netw ork and solving in a very efficient way the difficulties of supply of Northw est area. The pow er transformer capacity of first phase is of 300 MVA. Substation 400/110 kV Peja III shall be constructed near the existing 110/10 Istok substation.
The 400 kV connection w ill be a looped arrangement on the existing 400 kV Kosovo B – Ribarevina (YU). The new 400 kV double circuit 2 km line Peja III – Connecting Point w ould be constructed w ith ACSR 2x3x490/65 conductors. The 110 kV part includes tw o 110 kV transformer bays and at least three 110 kV line bays relevant to the single circuit lines Peja III – Istok, Peja III – Peja and Peja III – Kline, w hich are part of the project.
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New 400 kV Interconnection Line Kosovo B – Kashar (AL)
The 400 kV interconnection line betw een Kosovo pow er system and Albanian pow er system w ill provide these tw o complementary systems with an adequate transfer capability necessary to perform an appropriate long term and short term hydro–thermal coordination of their respective generations, pow er exchanges betw een the systems, and transit capacity required for the future Regional electricity mar ket.
The 2nd World Bank study is expected to start in July 2003 that w ill provide detailed tender documents for the construction of the new line.
Considering the generation characteristics of the Albanian (hydro) and Kosovo (thermo) systems, a strong connection betw een these tw o systems would allow for reliable operation w hile achieving the major benefits such as:
Sharing of generating capacity through diversity in production realizing an optimal short-term generation dispatch and optimal medium, long-ter m optimization of hydrologic recourses of Albanian HPP;
Increasing annual hydro production, and reductions in the operating costs of Kosovo pow er system due to better utilization of thermal pow er plants;
Improvement on reliability of electricity supply for customers as a result of increase of generator availability, decrease of the “w ater or energy risk” for the Albanian pow er system and the “pow er risk” to cover the peak loads for the Kosovo pow er system;
Reducing the projected necessary investments in installed generating capacity in both countries and, in particular for the Kosovo pow er system, the expenses for providing ancillary services;
Strengthening the interconnected Balkan netw ork through establishment of new 400 kV interconnection line w hich will increase exchanges and transactions of electricity between other countries in the region, contributing on development of a regional electricity market ( REM) operating under UCTE rules and the EC directives and regulations and consequently to the regional co-operation and stability.
The total investment cost for 400 kV transmission line and 400 kV line bays is estimated about 55.5 MUS$. The investment costs include the cost of line within Kosovo territory (80 km) and the cost in Albanian territory (135 km).
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Investments for the period 2006- 2008
Total installed capacity of substations and length of transmission lines planned for construction foreseen in Transmission Development Plan for the period are as follow s: New Transmission Investment Costs To ta l Network Element (1000 US$) 110 kV Overhead Lines 52 km 5,920 Rehabilitation and replacement of existing elements 100
Investments for 2009 and beyond
Total installed capacity of new substations and length of new transmission lines planned for construction during the Development Stage 3 are as follow s: New Transmission Investment Costs To ta l Network Elements (1000 $) 400/110 kV Substations 600 MVA 12,694
400 kV Overhead Lines 8 km 1,640
110 kV Overhead Lines 94 km 11,516 Rehabilitation and replacement of existing elements 250
Total investment costs are 26,100,000 US$.
The main netw ork element is the new Ferizaj II 400 kV substations to be constructed around 2014, depending on demand developemnt.
The installed capacity needed in 2014 is 300 MVA. The second autotransformer, also necessary in order to comply w ith N-1 criterion, is foreseen to be installed only if the projected demand w ill follow the high grow th demand scenario.
Substation 400/110 kV Ferizaj II shall be constructed near the existing 400 kV interconnection line 400 kV Kosovo B – Skopje 1 (FYROM). The 400 kV connection w ill be a looped arrangement on the existing 400 kV Kosovo B – Skopje 1 (FYROM). The new 400 kV double circuit 8 km line Ferizaj II – Connecting Point w ould be constructed w ith ACSR 2x3x490/65 conductors. The 110 kV part includes one 110 kV transformer bays and at least three 110 kV line bays relevant to the double circuit line Ferizaj II – Bibaj and to the 31 km Ferizaj II – Gjilan w hich are part of the project.
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Dispatching Center
The project implementation should start immediately. It could be organized in tw o stages corresponding to the separation of the system elements into 2 groups of priorities.
1. First Stage - SCADA system w ith the database for the w hole netw ork Completion of the sub-station adaptation w orks for the stations belonging to the first group, Completion of the sub-station adaptation w orks (supervision and control) for the bay of secondary winding of the transformer HV/MV installed in the station of the first group and of 10 kV bus-bar system of the Pristina 3 and Deçan stations that at the end of this stage should be operated in unattended mode; First group of RTU - installed, connected to the communication netw ork and activated; Communication Netw ork configured and operational for the Control Centers and the station belonging to the first group.
2. Second Stage – EMS functions for all the HV netw ork (400,220 and 110 kV) Complete sub-Station adaptation w orks for HV bus-bar system of the stations belonging to the second group; Completion of the sub-station adaptation w ork (supervision and control) for the bay of secondary winding of the transformer HV/MV installed in the station of the second group; Second group of RTU - installed, connected to the communication netw ork and activated; Communication netw ork completion also for the station belonging to the second group; Integration in SCADA/EMS and in Communication Netw ork of the new stations w ithout any adaptation w orks.
Investment Costs The investment costs are given for the first and second implementation stage. Tw o variant are specified depending on the options of telecommunication system: a) based on technology of digital PLC Communication Netw ork; b) based on technology of Fiber Optic Communication (FOC) Netw ork. Variant PLC: Investment cost for the 1st stage is 8.6 and for the 2nd stage is 4.3 MUS$. Variant FOC: Investment cost for the 1st stage is 12.3 and for the 2nd stage is 5.4 MUS$.
The pending 2nd World Bank study w ill deter mine w hich option should be implemented.
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Distribution Network
Investments for the period 2003- 2005
The scope of investments is as follow s:
New meters: Missing meters: 84 000; New consumers: 63 000.
New substations (SS):
1. 110/20(10) kV Peja 2 SS, 2x31.5MVA; 2. 110/20(10) kV Rahovec SS, 31.5MVA; 3. 110/20(10) kV Gjilani 4 SS, 31.5MVA; 4. 110/20(10) kV Mitrovica 2 SS, 31.5MVA; 5. 110/20(10) kV Prizren 4 SS, 2x40MVA; 6. Upgrading of the Pristina 4 SS w ith a 20 kV equipment, 2x31.5MVA; 7. 35/10 kV Pristina III SS upgrading to 110/20 kV (Pristina 6), 2x31.5MVA; 8. 110/20(10) kV Dragashi SS, 2x20MVA. 9. .220/(35) 20 (10) kV Podujeve SS, 2x40MVA; 10. 110/20(10) kV Pristina 5 SS, 2x31.5MVA; 11.110/20(10) kV Berivojca SS, 31.5MVA.
Other network investments: New 110/10(20)kV transformer: 218 MVA; New 10(20)kV lines: 770 km; MV/LV TS: 412; Transition of the 10kV TS on the 10(20)kV TS: 954; LV netw ork lines: 2640 km.
Investment Costs
Investments costs for the period 2003-2005 are 44 MUS$/year consisting of :
22.2 MUS$/year MV netw ork costs; 13.6 MUS$/year LV netw ork costs; 8.5 MUS$/year meter costs;
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Investments for the period 2006- 2008
New SS: 1. 110/20 kV Fushe Kosova SS, 2x31.5MVA; 2. Reconstruction of the 110/35 Pristina 1 SS to 110/20(10) kV, 2x31.5MVA; 3. Reconstruction of the 110/35 Peja 1 SS 110/20 kV, 2x31.5MVA; 4. Reconstruction of the 110/35 Gjakova 1 SS 110/20 kV, 2x31.5MVA; 5. 110/20 kV Malisheva SS, 2x20MVA; 6. 110/20 kV Mazgit SS, 2x31.5MVA; 7. 110/20(10) kV Gjilani 5 SS, 31.5MVA; 8. 110/20(10) kV Shtime SS, 2x20MVA; 9. 110/20(10) kV Ferizaj SS, 2x40MVA;
Other network investments: 1. New meters: 62 000; 2. New 110/10(20) kV transformer: 158 MVA; 3. New 10(20)kV lines: 322 km; 4. MV/LV TS : 526; 5. Transition of the 10kV TS on the 10(20)kV TS: 1,674; 6. LV netw ork lines: 2540 km.
Estimated investments costs for the period 2006-2010 are 29 MUS$/year: 14.5 MUS$/year MV netw ork costs; 11.7 MUS$/year LV netw ork costs; 2.8 MUS$/year meter costs;
The introduction of a Distribution Management System (DMS) w ould be appropriate in this period. The estimated cost for one DMS center, w hich could completely fulfill the needs for the Kosovo distribution w ould be 3 MUS$ (hardw are and software).
Period beyond 2009
The necessary investments in this period have to be re-assessed based on the progress achieved that far, and depending on the situation w ith market liberalization and operation of Regional electricity mar ket.
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Lignite Mining
Immediate investments
Scope of works EURO Planning work, Phase 1, 5 year plan (2005-2009) 310,000 As the basic of the exploitation license the existing and future mines Rehabilitation of Roads and Water Canals 2,100,000 Reconstruction of excavator E8M, (Phase 2-conveyer system and 4,100,000 electric) New auxiliary equipment 10,250,000
Dislocation/Centralization Warehouse 1,700,000
Reconstruction of belt conveyor system 6,750,000
Refurbishment/Reconstruction of Main Mining Equipment-Mirash Mine 3,900,000
Planning work, Phase 2, Development Project for new Sibovc Mine 1,200,000
Relocation of the village HADE (estimated value) 25,000,000
To ta l 55,310,000
Medium term investments
Medium ter m investments w ill be mainly concentrated on implementation of The Development Project for Sibovc Mine. Investments required to open this new field are estimated to 100 M EURO; the final necessary amount w ill be determined by the Development Project for Sibovc Mine.
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District heating
The project is based on the extraction of heat from pow er plant B and transmission of the heat to Pristina CHP. The project consists of two parts. The trans mission line, completion of existing trench, new trench from pow er plant A to pow er plant B and a pump- and heat exchanger station. Heat extraction facilities at pow er plant
Investments: ..
M oder nis ation of subs tations It is estimated that additional 0,7 million Euro is needed for improvements in 70 substations in the next tw o years.
Substations for new consumers, (1.1 million Euro) It is assumed that around 110 new consumers will be connected to the existing and the new district heating netw ork during the w hole period.
Total Investments into district heating systems are estimated at US $ 37 M, out of which 17 M will go to Pristina, 12 M to Djakova and 8 M to Mitrovica.
Oil sector
Requirements for Compulsory Oil Stocks (COS)
The first stage of building up COS should be implemented through refurbishment of the existing common storage plants (tank farms), which have been damaged during the Kosovo w ar. The storage terminals Elez Hani close to the Macedonian border, Dragodan in Prishtina and the Prizren storage betw een Prizren and Gjakova should be renovated over a tw o years period and set in operation by the end of 2004. Investments in these storages w ill amount to about 7.1 MUS$. In parallel, investments in necessary new COS facilities should be implemented over the period from 2002 to 2015. The total estimated investments in new COS capacities are estimated to approx. 23.6 million US$. Necessary costs for petroleum products in COS is estimated to 35.5 million US$. Finally investment in rolling stocks is estimated to 4.1 million US$.
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Natural Gas
The investments for phased introduction of natural gas to Kosovo are summarized in the Table bellow :
Phase Phase Phase Phase Phase MUS$ KI KII KIII KIV KV To ta l Duration 2010- 2013- 2015- 2017- 2019- 2010- 2012 2014 2017 2019 2020 2020 Transmission 31 46 46 16 19 158 pipelines Compressor, meter stations, 33 5 21 6 4 69 SCADA etc. Distribution 84 54 5 11 16 170
To ta l 147 105 72 33 39 566
Further to the investment show n above, there w ill be a need for considerable investments in central heating systems, boilers, cookers etc. inside each house or apartment. The amount these investments is assessed to add up to around 250 MUS$.
So the total investments in gas sector development is 816 MUS$.
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Summ ary table
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