INVESTMENTS IN 2016
The project coal deposit “Zivojno” is planned to take place from 2018 to 2024. The value of the investment is around 104 million Euros. The main mining project for exploitation of coal from the site “Zivojno” using underground technology is developed and is expected to end this year. At the moment a feasibility studies of concessions for exploitation of coal from the site “Zivojno” for underground and surface technology are under way. After the completion of the studies, the work on a main mining project for exploitation of coal using surface technology will commence.
The planned annual capacity of the mine “Zivojno” (2 million tons in open-cast mining and 1 million tones underground mining) will be used to supplement coal in TPP “Bitola” in the period after 2024.
New Local Deposits of Coal in Berovo (Pancherevo) Delchevo (Zvegor-Stamer) and Resen (Lavci)
Localities “Pancerevo” – Berovo and “Zvegor-Stamer” – Delcevo are at a great distance from the thermal power plants “Oslomej” and “Bitola”. Considering the fact that in this part of Macedonia there is no active thermal power plant, in the next period it is planned to prepare a feasibility study for construction of new TPP “East” which will use the available supplies of coal from nearby mines.
The location of the site “Lavci” – Resen, where coal is of very low sulfur content, is acceptable because of the relatively short distance for transport to TPP “Oslomej” and TPP “Bitola”.
The first phase of the realization of the detailed geological research Lavci Zvegor-Stamer and Pancerevo is completed. The studies are completed, and the audit is nearing completion. Total planned amount of EUR 1,850,000.00 is secured by own JSC ELEM funds. Initial results from the first phase of detailed geological research Zvegor-Stamer, the development of studies and their audit, the delineation of coal exploration and increasing the total geological reserves indicate that AD ELEM should continue research in this location.
The possibility of exploiting coal from these sites in the existing TPP “Bitola” and TPP “Bitola” and the possibility of building a new TPP will significantly increase the strategic value of these locations.
In 2015 we started the implementation of the third phase of the modernization and revitalization of the largest Macedonian power plant for production of electricity by making a comparative analysis of the respective technologies of desulphurization of REK “Bitola” and preparation of feasibility study. For the implementation of this project JSC “Macedonian Power Plants” concluded a contract with the Slovenian company “Rudis” -Trbovlje which was implemented in two phases:
Phase I: Assessment of technical, economic and financial justification for reducing SOx particles and dust from REK “Bitola”, by making a comparative analysis of wet, semi-dry and dry desulphurization process and reduction of dust with electrostatic, gag filter or a combination of bag filter and other methods.
II phase: Preparation of feasibility study for the selected technology for reduction of SOx and dust particles, which will include additional technological solutions for reduction of all emissions from REK “Bitola”.
Based on the prepared comparative analysis, as the most appropriate procedure for desulphurization, the wet procedure was selected. The advantages of this procedure compared to other procedures (dry and semi-dry procedure) are:
• Lowest operating costs;
• Secure and reliable supply of absorbent (limestone) from domestic resources;
• Waste by-product that can be safely stored or sold (gypsum);
• In the process of operation this type of technology is the most reliable;
• Most applicable procedure for desulphurization (highest number of references);
• Highest efficiency (the highest percentage of removing sulfur oxides) compared to other procedures.
A Feasibility study for the selected technology for reduction of sulfur oxides and dust was conducted in 2016. In the period that follows, it is expected to begin the process of selection of an international institution for financing the project in the first phase – reduction of dust, and then selection of contractor. With full implementation of this project it is expected that the emissions of SOx and dust from REK Bitola will comply with the European Industrial Emission Directive (IED) 2010/75 / EU.
Revitalization and Modernization of TPP “Oslomej”
Feasibility study for modernization of TPP “Bitola” using coal with high-calorie potential was realized in 2016. The analysis of using natural gas as fuel in TPP “Bitola” is completed, as well as the analysis of the use of lignite from several mines in the region. The total investment for the rehabilitation of TPP “Bitola” according to a feasibility study is estimated at EUR 126,000,000.00. It is planned continuation of the project with a second phase which will include negotiations with financial institutions and selecting the best way to finance the project. The Project is planned to be realized in the period from 2017 to 2020.
Pursuant to the Law on Environment, another procedure for assessment of environmental impact and socio-economic aspects was carried out, and to this end, further study for assessing the environmental impactt (EIA) was conducited by the University “SS Cyril and Methodius “- Skopje,” Mechanical Engineering “- Skopje.
The study for the modernization of TPP “Bitola” was submitted to the MEPP in October 2015, a public hearing was held on 29.09.2016 in the Municipality of Kichevo. The Report on the validity of the study for the assessment of the environmental impact of the project “Modernization of TPP” Bitola “Kichevo” was published on 10.11.2016, and the Decision on granting consent for the implementation of the project was delivered on 21.12.2016 the MEPP.
With the realization of this project the life span of TPP “Bitola” is extended for another 30 years, the effectiveness of the block increases, emissions of CO2, SOx, NOx and dust are reduced in accordance with permitted emissions in the EU. TPP “Oslomej” will be transformed into a solidly balanced domestic production capacity with an acceptable production cost of electricity, unaffected by the negative and turbulent movements of shares and changes in the world energy market.
Installation of Central Heating in Bitola, Mogila and Novaci
The project for building central system for heating of Bitola, Novaci and Mogila Logovardi is among the priorities which will be realized by AD ELEM in the upcoming period. In the past few years, we have completed a series of important preparatory activities necessary for the realization of this important project. Project documentation is prepared and approved by the competent authorities, the necessary modernization of the steam turbines both in REK “Bitola” is over, and fully enabled regulated seizure and capture of steam. In 2016 an agreement was signed for financing the project through a loan from German KfW Bank, and an agreement with the consultant of the project was also signed.
The first phase of the central heating system for heat supply includes: building a system for production of thermal energy, hot-water pipe for transport, primary pumps – thermal station in Bitola, hot-water distribution network in Bitola and heat substations in buildings. In the settlements Novaci, Mogila and Logovardi only terminals to future distribution networks will be constructed.
We expect that the construction of heating systems will have a direct impact on reducing emissions from the combustion of wood, household oil and coal in small domestic kilns, furnaces of public and commercial buildings, as well as reducing emissions of SOx, NOx and finally it will mean protecting the environment and ecology in the region. The project will directly affect the reduction of inappropriate treatment of waste oil which is now used for heating. Additionally, the transfer of citizens of Bitola and the region to this network will mean a significant reduction in electricity consumption in the winter period which is used for heating. It will reduce pressure on the distribution network in winter, which will mean saving natural resources that we use to generate electricity, primarily coal.
If the works develop according the planned dynamics, it expected that the first users of thermal energy will be connected by the heating season 2018-1019.
Coal Mine and Power Plant in Mariovo
In 2016 the preparation of a feasibility study for transportation of coal from the Mariovo to TPP “Bitola” was started. The Study is completed and it offers solutions to possible ways and methodology for transporting coal, both from a technical and economic point of view. With the completion of the study the possibility and the momentum for this project is further defined.
The total investment of the project is 126,194,595.00 Euros, 15% of the amount is planned to be provided from ELEM’s own financial sources, to the amount of 18,929,189.00 Euros, and the remaining amount of 107,265,406.00 Euros, through credit borrowing.
For the implementation of this project it is planned to select a financial adviser with an investment from a private partner through the model of concession or through public private partnership between ELEM and private partners.
Pre-feasibility Study for New Cogeneration Plants
In 2016 AD ELEM announced a public procurement for selection of consultant for preparation of the pre-feasibility study for construction of new cogeneration plants. The purpose of the study is to establish the justification for installing three new cogeneration plants which will use natural gas as fuel, and this all is in accordance with the planned infrastructure of the gas network of proposed sites (location 1 Tetovo-Gostivar, location 2: Skopje, and location 3: Shtip-Veles, Kocani).
During the preparation of the study, the consultant should consider the possibility of heat supply to households and businesses, as well as the possibility of using the thermal energy in agriculture. The study is also intended to analyze the savings that might occur as a result of installing new capacity, i.e. reduction of losses generated due to overload of the existing transmission network at bottlenecks.
Pre-feasibility Study for Construction of New Power Plants that Will Use High-calorie (Imported) Coal
In 2016, ELEM announced a public procurement for selection of consultant for preparation of pre-feasibility study for finding new optimal locations for building new power plants, which will use as fuel high-calorie (imported) coal. The main goal of this study is to obtain basic analysis of new production capacities of imported coal as acceptable market product.
Pre-feasibility study should be the basis for the feasibility study for the construction of largest energy facilities of its kind in the Republic Macedonia. The end result should be precisely defined terms of reference for the feasibility study for the construction of new TPP in R. Macedonia which as fuel will use high-calorie imported coal.
In the proposed technical solutions, it is important that the consultant has in mind the situation in the transmission network, and the heat consumption needs for some of the proposed locations.
During the preparation of the study, the consultant should consider the possibility of heat supply to households and businesses in nearby communities (where the conditions can be met), and the possibility of using the thermal energy in agriculture.
Congenerative Plant (CHP) for Production of Electricity and Thermal Energy, and Technical Steam for Clinical Center “Mother Teresa” – Skopje
The Plant for production of electricity and thermal energy and steam – Clinical center is necessary to satisfy the needs of energy throughout the whole year and for this purpose it is planned the installation of cogeneration modules combined with steam and hot-water boilers. The installed power of this facility should be sized according to the needs of the Clinical Center, for a whole year, because it is an object of considerable public interest.
A feasibility study MACEF / RI, for the selection and optimization of cogeneration production and supply of electric and thermal energy for the Clinical Center was conducted. Using the feasibility study as a basis, in 2016 an “Analysis of alternative solutions for the selection of cogeneration – Clinical Center Skopje” was carried out. In this analysis an assessment of the feasibility of replacing existing equipment to produce hot water for heating and technological steam with natural gas for combined production of electricity, heat for heating and technological steam was carried out.
Current energy needs as well as the plan for future consumption within the compound of the Clinical Center comply with the Ministry of Health, while for the cost of energy, current prices on the regulated and free market of electricity, thermal energy and natural gas are used.
In addition, an analysis on the state of the distribution network in the part of Skopje, as well as the proposal of four possible solutions for connection to the future cogeneration electricity distribution system energy was carried out.
Purchase of a New Mining Machinery
The purchase of new mining equipment for REK “Bitola” will extend the life of thermal power plants for twenty years. The new equipment will accelerate the opening of the mine “Podinska coal series Suvodol” and will also mean reduced operating costs for excavation of open-cast coal mine “Brod Gneotino.” With the purchase of mining machinery there will be no need for deployment of foreign companies which would significantly reduce the costs of exploitation and maintenance in REK “Bitola”.
Before starting the procedure for procurement of mining equipment, a techno-economic analysis was carried out, which proved the viability of the project. The value of the investment venture for the purchase of mining equipment amounts to 64.5 million Euros. The procedure for public procurement is under way, followed by the implementation or delivery of mining equipment in the next two years.
Additional Geological Research in “Brod Gneotino”
In its developmental policy ELEM implements a series of activities for the timely provision of coal reserves and continuing the exploitation life of the power plants in REK “Bitola”. The coal reserves after the revision of the studies conducted by the investigative activities, indicate that there are about 68 million tons of geological reserves of coal. Since this is a significant amount of coal, in the interest of JSC ELEM is to continue the activities related to this deposit of coal in terms of its operationalization and use as a potential energy source in TPP “Bitola”.
Wind Park “Bogdanci” – II stage
Based on experiences and data received from the operation of the first wind park, having realized the advantages of implementation and operation, ELEM consider the possibility of expanding Wind Park “Bogdanci” with additional windmills.
The realization of The second phase of the Wind Park “Bogdanci” with an installed capacity of 13 MW and the construction of six new wind turbines will be an opportunity for additional annual electricity production of around 36 GWh. The deadline for implementation is two years and the projected cost of the project is 21 million Euros.
In 2016, KfW bank from Germany conducted an introductory mission for the start of this project.
Optimal Energy Exploitation of the River Crna Reka (Black River) – “Chebren” and HPP “Galishte”
In February 2016 a Public call to companies interested in designing, construction and concession of “Chebren” and HPP “Galishte” was announced. Interested companies were invited to define techno-economic solutions for hydropower plants for whose construction and management they were interested.
After the completion of this call for expression of interest in 2016, AD ELEM started preparatory activities, including preparation of project work and announcement of public call for selection of a consultant for the preparation of pre-feasibility study.
Revitalization and Modernization of Existing Hydropower – III phase
In parallel with the construction of new facilities, in the coming period ELEM is continuing the process of revitalization and modernization of existing hydropower capacities – Phase III.
Upon successful completion of the first phase of revitalization in the period from 1998 to 2004 and the second phase from 2010 to 2014, in the third stage of the modernization of existing hydropower plants the following is planned: replacement of energy and regulatory transformers, modernization of generators, replacement the poles of the rotor, replacement of bearings units, replacement of ball valves, butterfly replacement, pre-turbine closures and much more.
The Study on revitalization of existing hydropower – III stage was conducted in 2016 by experts from AD ELEM and FEIT consultants.
Transferring Water from Tenovo to HPP “Kozjak”
The idea of a tunnel for transfer part of the waters of river Vardar to River Treska, or from the location Tenovo to the reservoir Kozjak is more than 50 years old. Based on the first study of this idea, which was developed by the Norwegian consulting company Nortkonsult (Nortconsult), in 2015 ELEM developed technical documentation for the tunnel Tenovo-Kozjak, where some energy indicators and financial analysis with current prices and development of EPS of Macedonia are presented.
In 2016, AD ELEM started preparatory activities including project task of issuing a public call for selection of a consultant for the preparation of pre-feasibility study, which is expected to be completed in 2017. Communication with KfW Bank for possible financing of the project is established.
Hydro energetic exploitation of river Vardar is studied in several stages. So far there are only main projects for individual hydro-technical facilities. The project “Vardar Valley” envisages energy use of the river Vardar and its most important tributaries.
In 2016, a Public Call for selection of consultant for preparation of pre-feasibility study was announced. The selected consultant started carrying out the study in September 2016, and it is expected to be completed by the end of 2017.
Feasibility Study for Revitalization of SHPP “Glazhnja” and SHPP “Lipkovo”
In 2016, the necessary documentation for public procurement for selection of consultant for the feasibility study for the revitalization of SHPP “Glazhnja” and SHPP “Lipkovo” was prepared.
Lipkovo hydro system consists of two reservoirs formed by the construction of dams Glazhnja and Lipkovo and two small hydro power plants “Glazhnja” and “Lipkovo”.
This hydro system is multipurpose because it solves the issue of the regime of leveling and using water from the river Lipkovo for the following needs:
• water supply for the city of Kumanovo and the surrounding settlements
• supplying the industry with technological water
• irrigation and
• electricity generation in SHPPs “Glazhnja” and SHPP “Lipkovo”.
After the conflict in 2001, the electro-mechanical equipment installed in buildings in SHPP “Glazhnja” and SHPP “Lipkovo” was completely destroyed. After establishing the actual condition on site, it was concluded that there is no possibility for rehabilitation of both SHPP, and in order to put them back in operation, it is necessary to perform a complete uninstallation and removal of debris from equipment and installation of brand new equipments.
Before putting “Glazhnja” and “Lipkovo” in operation again, it is necessary to check the other hydro equipment such as the state of the closures of supply and drainage equipment, decanting bodies, shafts, a condition of the pipes, the fundamental outlets etc.