January 2015 Serbia-Energy.Eu
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Serbia-Energy.Eu South East Europe Energy Market Digest Monthly Report January 2015 Serbia-Energy.Eu Serbia Energy Market 1 Monitoring Service www.serbia-energy.eu Serbia Energy Market Report Digest regulations. According to evaluations, adjustment in this field will cost Serbia even 10, 6 billion euro by 2030. http://serbia-energy.eu/serbia-exclusive-report-eps-power-utility -prepares-for-implementation-of-eu-environment-directives-proj ects-underway-and-new-plans-to-secure-financing-on-facilities-r efurbishment/ SERBIA ENERGY 3. Serbia-West Balkans (Serb,Cro,BiH,MNE, MK) exclusive re- port: The Balkans power generation systems ,Challenges along 1. Serbia: State budget 2015, Bank loan guarantees for public the European road enterprises go up to 350 MEUR Energy systems in countries of West Balkans ( Serbia, Croatia, As previously announced by the proposal of the state budget, Bosnia, Macedonia, Montenegro) rely dominantly on the fact the Government of Serbia will provide a guarantee in the that its two thirds of total electricity quantity are being produced amount of 350 MEUR for public companies in the energy sector from coal, specifically for Serbia where 70% of electricity is be- in 2015. ing produced from coal while the electricity from the renewable http://serbia-energy.eu/serbia-state-budget-2015-bank-loan-gua sources makes only a little bit over 20 percent of the total con- rantees-for-public-enterprises-go-up-to-350-meur/ sumption. 2. Serbia exclusive report: EPS Power utility prepares for imple- http://serbia-energy.eu/serbia-west-balkans-serbcrobihmne-mk- mentation of EU environment directives, projects underway and exclusive-report-the-balkans-power-generation-systems-challen new plans to secure financing on facilities refurbishment ges-along-the-european-road/ Harmonization with European regulations in the field of environ- 4. Serbia exclusive report: Harsh reality of serbian energy bal- ment, because of its volume and interconnections is very com- ance relying on 33% of electricity imports, too late or last mo- plex and expensive process. Accessing negotiations in this field ment for new power generation units are referring to 200 legal acts that make even third of European 2 It is imperative that we enter a new period of construction, be- 6. Serbia: With New Energy Law towards Harmonization with cause soon, the revitalized plants will also demand new invest- EU Rules ments. It is necessary that we build new 1.000 megawatts New Energy Law should enable Serbia to reach the highest de- within the following period, because, according to the strategy, gree in the EU accession process within the energy sector so it has been envisaged that 1.200 megawatts of capacities, their far. By the adoption of this Law, all the measures from the EU degree of utilization having dropped below 30 percent, should Third Energy Package within the field of gas and electric power be withdrawn from production by 2025, and these capacities sector [were] fully applied, whereas renewable energy re- will be more than 40 years old at that moment. sources [were] encompassed by this package only indirectly http://serbia-energy.eu/serbia-exclusive-report-harsh-reality-of-s due to the changes in the manner of functioning of the electric erbian-energy-balance-relying-on-33-of-electricity-imports-too-l power sector, the Minister of Mining and Energy Aleksandar An- ate-or-last-moment-for-new-power-generation-units/ tić said earlier. 5. Serbia: Households retail electricity market opens, traders http://serbia-energy.eu/serbia-with-new-energy-law-towards-har awaiting for new increased regulated price monization-with-eu-rules/ The electricity market in Serbia is completely open from Janu- 7. Serbia: HPP “Đerdap 2“, production plan exceeded by 15 per- ary 1st, which means that households will be able to choose the cent electricity supplier. Households will have the right to supply the Despite encountering many problems in this year, hydro power free market with electricity, if they assess that it is more pay- plant “Đerdap 2″ is completely ready for the upcoming winter able, but not the obligation, namely they will be able to remain days. All planned and unplanned works have been completed, on public supply also after January 1st, said in the Electric said Ljiljana Milicanović, the director of HPP “Đerdap 2. Every- Power Industry of Serbia EPS. thing is ready for the upcoming cold days – says director Mili- http://serbia-energy.eu/serbia-households-retail-electricity-mark canović. et-opens-traders-awaiting-for-new-increased-regulated-price/ http://serbia-energy.eu/serbia-hpp-derdap-2-production-plan-ex ceeded-by-15-percent/ 3 8. Serbia: New delay in starting Serbian regional energy ex- In the history of “Electric Power Industry of Serbia”, 2014 will be change SEEPEX remembered as the year when the catastrophic weather condi- tions have left the huge consequences in the operation of EPS. Due to the delay in adopting the new Energy Law, the begin- However, there have been very good results as well. We have ning of establishing an organized SPOT electricity market in managed to maintain a dominant position in the second wave of Serbia has also been postponed, with an adequate platform for the liberalization of the electricity market, although everyone ex- the envisaged establishment of a regional day-ahead market pected that we would be “destroyed” by the competition, says having been provided, and this for the third quarter of 2015. Mr. Aleksandar Obradovic, the director of EPS, Serbian power http://serbia-energy.eu/serbia-new-delay-in-starting-serbian-regi utility company. onal-energy-exchange-seepex/ http://serbia-energy.eu/serbia-exclusive-power-utility-eps-restru 9. Serbia exclusive: Electricity Market in Serbia, the EU Require- cturing-under-imf-monitoring-interview-with-eps-ceo-aleksandar ments and power market liberalization -obradovic/ Since 2006, when the Law on establishment on European Com- 11. Serbia: Alstom Grid Turkey delivers new transfer to TPP Nik- munity has become effective, Serbia is a step closer to the Euro- ola Tesla pean Union: through the legal entity of the European Commu- Alstom Grid Turkey successfully delivered the generator trans- nity, the harmonization of the prescriptions in the field of energy former for installation at Nikola Tesla Power plant Tent-B for with the legal achievement of the EU is being followed and re- Public Enterprise- Electric Power Industry of Serbia (PE ported continuously. The Contract on EC establishment is con- EPS).The 725MVA, 21/410kV generator step-up transformer firmed by the Stability and Joining Agreement, which pointed can supply electricity from the generator to the point of con- out the necessity of regional cooperation in this field. sumption by means of high voltage transmission line. http://serbia-energy.eu/serbia-exclusive-electricity-market-in-ser http://serbia-energy.eu/serbia-alstom-grid-turkey-delivers-new-tr bia-the-eu-requirements-and-power-market-liberalization/ ansfer-to-tpp-nikola-tesla/ 10. Serbia exclusive Power utility EPS restructuring under IMF monitoring interview with EPS CEO Aleksandar Obradovic 4 12. Serbia: Power utility EPS to start investing in new power http://serbia-energy.eu/serbia-kostolac-b3-lignite-plant-loan-agr generation facilities, conventional and RES eement-bypasses-public-debate-and-contains-unacceptable-co nditions/ Electric Power Industry of Serbia (EPS) in 2015 will begin to in- vest in new thermal power plant after more than 25 years, and 14. Serbia exclusive: Privatization of Power utility company, sce- change the organization in order to save at least 36 MEUR per narios and benefits, the analysis year said Aleksandar Obradovic CEO of EPS. He explained Possible privatization of Serbia Power Utility Company EPS that the Serbian Government adopted a plan of reorganization would provide short-term “lank” financial benefit for the budget, in which the idea was to classify the production and distribution while at the same time would bring great risks. The risks are – companies. the risk of a gradual EPS transition in the majority ownership of http://serbia-energy.eu/serbia-power-utility-eps-to-start-investin foreign partner and the possibility of a substantial increase in g-in-new-power-generation-facilities-conventional-and-res/ the electricity price. 13. Serbia: Kostolac B3 lignite plant loan agreement bypasses http://serbia-energy.eu/serbia-exclusive-privatization-of-power-u public debate and contains unacceptable conditions tility-company-scenarios-and-benefits-the-analysis/ The Serbian parliament will on Monday vote on the ratification 15. Serbia: Power Purchase Agreement – a problem for all RES of a USD 608 million loan agreement from the China ExIm developers Bank for the construction of the 350 MW Kostolac B3 lignite Serbian Wind Energy Association (SEWEA) says that 3-4 inves- power plant by Chinese company CMEC. Serbia’s latest addi- tors already have building permits and agreements with banks, tion to its huge debt burden is being presented as a great suc- but they are waiting for the Power Purchase Agreement for Re- cess, but a new lignite plant is more likely to end up as a weight newable Energy. In July last year, the Ministry of Energy around our necks as we move towards the EU and apply EU cli- adopted the Draft Power Purchase Agreement, but it was not mate policies. acceptable to banks so that investors could not been able to close deals on financing of their projects. 5 http://serbia-energy.eu/serbia-power-purchase-agreement-a-pro 830 MEUR. Start of the project was planned for 2014th, and blem-for-all-res-developers/ completion is scheduled for the period from 2020th to 2023rd. 16. Serbia exclusive: Bidders for new TPP Kolubara 2 and http://serbia-energy.eu/serbia-exclusive-energy-projects-at-the- TENT B3, China vs others, report beginning-hpps-middle-drina-and-hpps-upper-drina/ The development of electric power system is a key link in the 18.