Bosnia: The future of new coal fired TPPs Banovic and Tuzla and environment protection standards

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Foreign investment in Bosnia is much lower than in other Balkans countries, whose economies are developing faster. Will, as announced, be built new thermal power plants in Tuzla and Banovici by 2018th, which would lead to the creation of new jobs in the energy sector?

Building of unit 7 in TPP “Tuzla” and thermal power plant in Banovici should cost around 1 billion EUR. From the “Electric Power Industry of BiH” (EP BiH) argue that the negotiations with the Chinese partner on Unit 7 is in the final stage, while the procedure for the preparation of project documentation for the thermal power Banovici have to be revised due to changes in the FBiH Government’s decision to increase the capacity of the unit from 300 to 350 megawatts.

– We are waiting for offer of China EXIM Bank, which will unite with the entire range that we already have. After which it should go back to the Government and parliament – said Elvedin Grabovica, the director of EP BiH.

Reuf Bajrovic, Minister of Industry, Energy and Mining of FBiH, emphasizes that the key point is who will finance it, expressing hope that it will be known by the end of this year.

But everything will have to be harmonized with the strict criteria of the EU and the European Energy Community.

– At the moment the prices on the world market, either of a power plant as an investment or a coal as a fuel and consequently the electricity as a product of that thermal power plants – are not competitive – says prof. Dr. Slavko Kranjcar from the University of Zagreb.

Peter Vajda, an expert for the environment in the Energy Community Secretariat, warns:

– We must think about what will happen to the facility for 10 years. At this point you have access to the fuel, but what if there is a change in fuel prices on the market?

Precisely the fuel could be the biggest problem because the existing units in Thermal power plants “Tuzla” are missing coal from the local mines making the Unit 6 sidelined for months.

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