Environment Energy Mining Watch SEE|Investors|Serbia: Alstom to work with CMEC on new TPP Kostolac B unit?

Serbia: Alstom to work with CMEC on new TPP Kostolac B unit?

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One of the key market players, foreign contractors and equipment suppliers is Alstom. In Serbia Alstom seem to be quite successful in TPPs modernization cycle. Their market niche was the overhaul business in areas of turbines and generators in TPPs. Their competition is Siemens and some local companies which are fighting their way thru lower market offers and dumping prices. However despite all market obstacles Alstom remains the key player in this market segment in Serbian TPPs modernization cycle business.

Recent takeover of Alstom business by GE may influence the Serbian market as well. GE in Serbia is present thru local representative office but without clear and visible market network which is needed for sales and projects development. According to the known data GE is covered from their Italy office and was mainly focused on RES market, still their success rate remains unclear even when assessing the whole region of Balkans.

Serbian power generation balance is dominantly secured from thermal power plants using lignite coal for electricity production. Thermal power plants Nikola Tesla company, consisting of 4 TPPS are biggest Serbian electricity producer with more than 50% of Serbian electricity generated at TENT TPPs. Second group is Kostolac TPP with less capacities. All power plants are quite old and despite modernization cycles require constant efficiency improvement projects and further investments into their reliability. Environment protection projects, investment projects which are required by local and EU regulations are a special financial burden for Serbian power utility company EPS ( Elektroprivreda Srbije).

Since 2000 when the modernization and investment cycle started in Serbian power plants, Alstom was one of the key winners of this investment cycle. Boilers and turbines overhaul business was their focus. When environment protection projects were initiated Alstom started fighting their way in the market. Recent tender of 200MEUR FDG project in TENT did attracted Alstom but Alstom decided not to bid for this project.

Recent takeover of Alstom business by GE may influence the Serbian market as well. GE in Serbia is present thru local representative office but without clear and visible market network which is needed for sales and projects development. According to the known data GE is covered from their Italy office and was mainly focused on RES market, still their success rate remains unclear even when assessing the whole region of Balkans.

Alstom is mentioned as key contractor of China CMEC which started the construction of new TPP Kostolac B3 unit.

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