Environment Energy Mining Watch SEE|Investors|Bosnia: Loans needed for TPPs modernization to avoid decommissioning

Bosnia: Loans needed for TPPs modernization to avoid decommissioning

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Bosnia and Hercegovina coal fired power plants need to modernize with expensive environment protection projects in order to avoid decommissioning by 2023. Financing is not secured but considering the importance of power plants for energy balance there is no doubt that the loans will be taken for overhaul and modernization of TPPs.
Bosnia and Hercegovina is the regional electricity exporter. Bosnia has 4 coal thermal power plants and remaining electricity balance is covered from RES sources primarily hydro power plants.
Energy Community obligations of Bosnia focused on environment measures for TPPs are quite an issue for Bosnian government considering the projected amount of needed investments.
Between 2018 and 2027 Bosnian federal entities, Bosnian federation and Republika Srpska, with their independent power utilities operating coal fired power plants have to reduce the emissions from existing 4 power plants.
Power utility of Republika Srpska Elektroprivreda RS will have to count on 140MEUR cost and federation Bosnia power utility EPBiH will have count on 240MEUR which are needed to fulfill the national emission reduction plan which is in line with EU directives. This measures will increase the costs of electricity production in Bosnian power generation facilities and may influence the electricity price.
In case of ERS power plant Ugljevik flue gas desulphurization investment project will count for 60% of all ERS investment costs.
Reduction of emissions from large combustion plants and harmonization with EU directives is the obligation of all four coal fired power plants in Bosnia, Ugljevik and Gacko in ERS and Tuzla and Kakanj in EPBiH. Emission of CO2 from current 270.000 tons should be decreased to 10.000 tons.
According to ERS power utility Director Ms.Branislava Milekic total net value of required environment projects in TPPs by 2032 are 240MEUR which will influence the base load electricity price.
Bosnian federation power utility EPBiH which relies on TPPs almost 70% for electricity production stated that they plan to invest in some of the units and some will be decommissioned.
In line with national reduction emission plan the TPPs as main polluters will have to pay high price of operations, almost 700MEUR in the coming years.

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