Bosnia-Herzegovina and coal

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Bosnia and Herzegovina produced approximately 11.5 million tonnes of coal in 2009 which is overwhelmingly used to fuel the four existing major coal-fired power stations. With the reconstruction of the country following the civil war in the early 1990's, the coal industry is expanding. New coal-fired power stations or new units at existing power stations have been proposed to supply electricity to the regional and broader European market. However, as coal production is of brown coal and lignite, only a very minor amount is currently exported.[1]

One review of the Bosnia Herzegovina energy sector stated that "all [coal] mines are facing numerous particular problems, but what they suffer in common is a time lag of funding required primarily for land remediation, infrastructure and equipment maintenance and replacement."[2]

Structure of the electricity industry

Following the 1992-95 civil war, the Dayton Peace Agreement of 1995 established a new constitution for Bosnia and Herzegovina (BiH) – a State made up of two Entities, the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS).

Power generation in BiH is carried out by three electricity companies, Elektroprivreda BiH, Elektroprivreda Republike Srpske (EP RS) and Elektroprivreda Hrvatske Zajednice Herceg Bosne d.d. Mostar (EPHZHB). Of the 3,834 megawatts of installed capacity, 98% is accounted for by the three publicly owned companies.[3]

An energy review of the country states that the three agencies "are independent in decision making, especially on construction of new power plants, and responsible for customer supply in their respective areas of operation. All three electricity companies are in majority owned by the entities (FBiH, RS). In addition, there are other privately-owned companies and initiatives for construction of new generation capacities."[4]

Elektroprivreda BiH

The publicly owned Elektroprivreda BiH currently operates two coal-fired power stations with an installed capacity of 1,165 megawatts (MW) and three hydropower plants with installed capacity of 517 MW. In 2009 approximately 40% of the power generated from the plants was exported. A long term energy supply plan for the government of Bosnia & Herzegovina to 2030 foreshadows a massive expansion of coal power stations. Of the just over 1500 megawatts of new capacity flagged, Elektroprivreda BiH are proposing that 1,150 MW would be from coal-fired plants.[5]

A March 2010 planning document by the Federal Ministry of energy, mining and industry notes that Elektroprivreda BiH states that "our target is to construct new, modern thermal power plants to substitute our old units. We are also focused on construction of new hydro and wind energy facilities in order to increase generation capacities from renewable sources."[6]

Elektroprivreda Republike Srpske (ERS)

Elektroprivreda Republike Srpske (ERS) is a state-owned integrated power company in Republika Srpska. The only existing coal-fired power station it owns and operates is the 300 megawatt (MW) Gacko Thermal Power Plant located near Gacko. The proposed 300 megawatt Gacko Thermal Power Plant Expansion with CEZ was shelved in 2009.[7]

Elektroprivreda HZHB

Elektroprivreda HZHB the shortened name for Elektroprivreda Hrvatske zajednice Herceg Bosne) is a publicly owned power generation, distribution and retailing company in Bosnia-Herzegovina. Elektroprivreda HZHB has promoted the construction of the Kongora Thermal Power Plant, is a possible 2,275 megawatt plant which was estimated in 2007 to cost 1.1 billion euros and be located near Tomislavgrad. Elektroprivreda HZHB estimates that the plant would require approximately 3.6 million tonnes of lignite a year from the as yet undeveloped adjoining Kongora lignite deposit.[8]

Existing coal-fired power stations

There are currently four major thermal power stations in Bosnia and Herzegovina, all of which operate on either brown coal or lignite. These are the:

Proposed coal-fired power stations

In 2011 the Foreign Investment Promotion Agency noted that there were seven proposed new coal power stations or expansion of existing plants. These are the:[10]

  • Bugojno 1. In June 2012 the government of the Bosnian Federation, which comprises both the republic of Bosnia-Herzegovina and the Serb Republic, has sought advice from the Middle Bosnia Canton on the possibility of a coal-fired power station near the town of Bugojno. The Bosnian Federation is seeking to develop a new coal mine at Kotezi. A statement issued following a Cabinet meeting of the Bosnian Federation stated that the development of the Kotezi coal mine would only be feasible if a 350 megawatt plant or two 300 megawatt plants were built in the municipalities of Bugojno or Gornji Vakuf/Uskoplje.[11]
  • Kongora Thermal Power Plant is a possible 2,275 megawatt mine-mouth coal-fired power station which has been investigated by Elektroprivreda Hrvatske zajednice Herceg Bosne (Elektroprivreda HZHB), a publicly owned power utility in Bosnia and Herzegovina.[12] The proposed plant has been estimated to cost 1.1 billion euros and be located near Tomislavgrad. Elektroprivreda HZHB estimates that the plant would require approximately 3.6 million tonnes of lignite a year from the as yet undeveloped adjoining Kongora lignite deposit.[8]
  • Stanari Thermal Power Plant is a proposed 300 megawatt lignite-fired power station which is being promoted by a subsidiary of the UK-headquartered EFT Group. The project would source coal from the existing Stanari coal mine, which is operated under a concession by an EFT subsidiary. (Note: the Foreign Investment Promotion Agency lists the project as a 420 MW project[10] when EFT's subsidiary describes it as a 300 MW project).[13]
  • Tuzla G7 is a proposed 450 megawatt expansion of the Tuzla Thermal Power Station. In May 2011 EPBIH stated that CNEEC had expressed interest in the project. However, Reuters noted that the "Swiss energy firm Alpiq (ALPH.S: Quote) has bid to become a strategic investor" in the plant.[15]
  • Gacko Thermal Power Plant Expansion by CEZ with Elektroprivreda Republike Srpske (ERS). In 2006 CZE reached an agreement with ERS to form a joint venture company, Nove Elektrarne Republike Srpske (NERS), which would upgrade the existing plant, built a second unit at the power station and expand the nearby Gacko coal mine. In return for investing €1.5 billion in the project, CEZ gained a 51% stake in the new joint venture company.[16] However, In January 2009 CEZ pulled out of the deal stating that it was because of "repeated breach of the implementation contract by its partners in Bosna and Hercegovina."[17]

One project not mentioned by the Foreign Investment Promotion Agency is the Kamengrad Thermal Power Plant, a proposed 430 megawatt brown coal fired power station. It has been proposed that the power station, comprising two 215 megawatt units, be built near the Kamengrad coal mine which is located near Sanski Most.[18]

Coal mines

Existing coal mines

The Bosnia and Herzegovina Foreign Investment Promotion Agency identifies the existing coal mines as being: [19]

Potential coal mines

The Bosnia and Herzegovina Foreign Investment Promotion Agency identifies potential coal mines as being: [19]

Articles and Resources

Sources

  1. Foreign Investment Promotion Agency, Bosnia and Herzegovina Investment Opportunities: Bosnia and Herzegovina Energy Sector", September 2011.
  2. Energy Charter Secretariat, In-Depth Review of Energy Efficiency Policies of Bosnia and Herzegovina (2012), January 2012, page 24.
  3. Energy Charter Secretariat, In-Depth Review of Energy Efficiency Policies of Bosnia and Herzegovina (2012), January 2012, page 32.
  4. Energy Charter Secretariat, In-Depth Review of Energy Efficiency Policies of Bosnia and Herzegovina (2012), January 2012, page 31.
  5. Federal Ministry of energy, mining and industry, "Construction of Power Plants in Federation of B&H: Catalogue of Power Plants: Priorities", Government of Bosnia & Herzegovina, March 2010, page 28.
  6. Federal Ministry of energy, mining and industry, "Construction of Power Plants in Federation of B&H: Catalogue of Power Plants: Priorities", Government of Bosnia & Herzegovina, March 2010, page 6.
  7. CEZ, "ČEZ applied its safety option in the Gacko project", Media Release, January 28, 2009.
  8. 8.0 8.1 Elektroprivreda HZHB, "2006 Annual Report", Elektroprivreda HZHB, June 2007, page 34.
  9. 9.0 9.1 9.2 9.3 9.4 "Thermal-power plant Tuzla", Elektroprivreda BiH website, accessed September 2012. Cite error: Invalid <ref> tag; name "Elek" defined multiple times with different content Cite error: Invalid <ref> tag; name "Elek" defined multiple times with different content
  10. 10.0 10.1 Foreign Investment Promotion Agency, Bosnia and Herzegovina Investment Opportunities: Bosnia and Herzegovina Energy Sector", September 2011, page 10.
  11. "Bosnia considers TPP construction, coal mine launch", Power Market Review, July 2, 2012.
  12. Elektroprivreda HZHB, "2006 Annual Report", Elektroprivreda HZHB, June 2007, page 14.
  13. "About", EFT Group website, accessed October 2012.
  14. "Bosnia’s RiTE Ugljevik sets up JV with Cyprus-based Comsar Energy", SeeNews, August 13, 2012.
  15. 15.0 15.1 Maja Zuvela, "China's CNEEC eyes Bosnia's $584 mln coal-fired unit", Reuters, May 30, 2011.
  16. "European Energy Community", Euracoal website, accessed October 2012.
  17. CEZ, "ČEZ applied its safety option in the Gacko project", Media Release, January 28, 2009.
  18. "Bosnia Plans to Build Two Thermal Power Units at Kamengrad Coal Mine", Lumen.hr, November 29, 2011.
  19. 19.0 19.1 Foreign Investment Promotion Agency, Bosnia and Herzegovina Investment Opportunities: Bosnia and Herzegovina Energy Sector", September 2011, pages 7-8.
  20. 20.0 20.1 20.2 20.3 20.4 20.5 "Thermal-power plant Kakanj", Elektroprivreda BiH website, accessed September 2012.
  21. "European Energy Community", Euracoal website, accessed October 2012.

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