ENERGY FLOW THROUGHOUT THE YEARS
The growth of ESM is inextricably linked to the development of power generation in Macedonia. Though ESM was established as an independent enterprise in 2005 as ELEM, its business operations and generation capacities date as far back as the beginning of the 20th century in 1909, to the first light in Skopje.
As shown below, the picture is one of expanding power generation within the Electric Power Company of Macedonia until 2005. Since then, the focus of ESM’s board and management has been the further development of the company.
By applying the technology of direct-power current, the first light was lit in Skopje. The small diesel power plant that enabled that had one generating unit of 44 kW, with 220 to 240 V voltages and was used for one pump station for the city water supply, illumination of the City Hall, for a single street and the mansion of the Turkish vali.
1909 – 1924
Several other more powerful generating units were installed in the capital city, and several other cities were supplied with electricity, such as Tetovo, Bitola, Veles, Kumanovo, Prilep …
1924 – 1940
During this period, the following more significant facilities were constructed: HPP Pena in Tetovo (1.760 kW) that was put into operation in 1972, TPP Diesel in Skopje (1.000 kW) in 1933, HPP Matka in Skopje (4.160 kW) in 1938 and TPP Probistip (1.280 kW) in 1940.
1945 – 1955
The end of the Second World War and the establishment of People’s Republic of Macedonia as a constitutional part of the Yugoslav Federation, mark the second development phase of the power supply in Macedonia. At that time, by founding of the first electric power company, practically the basis of the future Electric Power Company of Macedonia were set. Through different organizational forms, it exists in the country until today.Chronologically, the realization has started by putting into operation the two units in TPP Madzari, and after that every year a small hydro power was to be put into operation, as following: Zrnovci, Pesocani, Sapuncica, and Dosnica.
1955 – 1970
In 1957 and 1958 in HPP Vrutok were put into operation two units with installed capacity of 37,5 MW respectively, and a year later HPP Raven (12,8 MW) and HPP Vrben (12,8 MW) which meant a completion of the first construction phase of Mavrovo hydro power system. During this period, activities for utilization of the hydro potential of the Crn Drim basin commenced, as a result of which in 1965 HPP Globocica (42 MW) and in 1969 HPP Spilje (70,2 MW) were put into operation. In addition during that period, two other were put into operation – HPP Tikves (two units each 46 MW) in 1968 and in 1970 HPP Kalimanci (12,8 MW).
1970 – 1990
Configuration of the modern electric power system within the Electric Power Company of Macedonia starts at the beginning of the eighth decade of this century and it is continuing until the present. At the end of the 70ties the following thermal power plants were constructed: TPP Negotino in 1978; two years later MPC Oslomej, as well as three thermal units in MPC Bitola successively, of which the third unit was completed in 1988.
1990 – 2004
During this period the dam and HPP Kozjak (80,5 MW) were constructed and put into operation in 2004. With effect from June 2005, Joint Stock Company Macedonian Power Plants (AD ELEM) for generation electricity state owned is established, as a result of transformation of the Electric Power Company of Macedonia.
2005 – 2011
- JSC “Macedonian Power Plants” is established with Decision from Government of Republic of Macedonia no.19-2626/1 dated 30.06.2005 as a result of restructuring of Energy Power system of Republic of Macedonia. Government of Republic of Macedonia promulgated Statute of Joint Stock Company for electricity generation, “Macedonian Power Plants” in state ownership, Skopje. Activity which is accomplished by AD ELEM is regulated with Statute of the Company and it is orientated towards electricity generation. AD ELEM received license for accomplishing of energy activity i.e. electricity generation.
- ELEM undertook activities for additional research of coal which is situated in Mariovo basin in 2008. Deposit Mariovo is marked on this area with confirmed coal reserves of 111 million tons.
- Department of development and investments of AD ELEM in 2009 elaborated application for European IPA – funds for approval of grant for elaboration of feasibility study for project “Solar power plant in Bitola”, first of this kind in Macedonia. Project is supported by French Government which in 2011 awarded grant of half million Euros in order to elaborate Feasibility Study which shall predict the best variants for construction of solar power plant.
- JSC “Macedonian Power Plants” in 2010 started capital action for exploitation of deep underlying coal seams in mine Suvodol which represent new source of coal necessary for electricity generation in thermal power plants Bitola for the following two decades. Opening of deep underlying coal seam is one of the many projects for strengthening and modernization of production capacities. At the same time, ELEM and the German company TyssenKrupp signed contract for supply and assembly of main coal conveyor belt system in REK Bitola. Investment has value of 18,6 million Euros and it shall be intended for continuous coal transport.
- During 2010, reconstruction and modernization of two turbo aggregates in subsidiary “Energetika” was finished. Regarding realization of project, AD ELEM additionally obtained 21 MW new installed power for necessities of energy power system of Republic of Macedonia. For this project there are realized investment activities in amount of approximately 3,6 million Euros.
- New Dispatch center for control and managing of generation facilities (SCADA) was commissioned in 2010 and it provided precise planning, coordinating and regulation of electricity generation from existing thermal and hydropower plants. Dispatch center is investment with value of 2.2 million Euros.
- The largest production of electricity from the existing energy power system in Republic of Macedonia is achieved in 2010 and there is delivery of 6.46 gigawatt hours. Regarding hydro production, there are achieved record production results in all hydropower plants from the beginning of their connection to energy power system in Republic of Macedonia.
- The second phase of project “Rehabilitation of six hydropower plants” started in 2010 and it refers to increasing of efficiency and increasing of electricity production. Project includes rehabilitation of hydropower plants “Vrutok”, “Raven”, “Vrben”, “Globocica”, “Spilje” and “Tikves”. This phase is planned to be finished until the mid of 2014 and it includes expanding, completion and extending of measures from the first phase.
- AD ELEM in cooperation with reputable German company “Fichtner” started the activities for construction of project Wind Park “Bogdanci” in 2011. The project “Bogdanci” is realized within Agreement for financial cooperation from Energy Efficiency Program between Governments of Macedonia and Germany. 16 to 24 wind turbines shall be installed in the park “Bogdanci” each with installed capacity of 2 to 3 megawatts. Total production from the park shall be 100 gigawatt hours annually, and installed capacity in the first phase of realization shall amount 37 megawatts while in the second phase there is plan for installation of additional wind turbines which shall increase the capacity of WP up to total 50 MW.
- In 2011 ELEM provided assets for construction of HPP “Boskov Most”. The value of the project is 107 million Euros out of which European Bank for Reconstruction and Development shall provide loan of 65 million Euros and 42 million Euros shall be assets from “Macedonian Power Plants”. ELEM engaged domestic consultants and elaborated ecological study for environmental protection and socio-economic aspects and it shall guarantee that hydropower plant shall not disturb ecological ambient and National Park “Mavrovo”.
- In 2011 ELEM signed contract with German Consulting Company “Poyry Infra” for elaboration of Environmental Study for Impact Assessment from realization of project “Lukovo Pole”. Elaboration of the Study is 272.000 Euros and it shall be financed from loan of World Bank awarded to ELEM for preparation activities for “Lukovo Pole”.
- ELEM invests 2,5 million Euros for additional research of coal deposit Zivojno. It is assumed that deposit disposes with approximately 110 million tons geological reserves of coal and analyses of already taken samples present that coal has better quality than the one in existing surface mine “Suvodol”.
- Main coal conveyor belt system for mine “Brod Gneotino” was commissioned in July up to surface mine “Brod – Gneotino” in length of around 10 km accomplished by German Company Thyssen Krupp. The system provided coal transport to Suvodol in continuous regime and it shall be prepared in perspective to accept coal of new coal deposit Zivojno. Realization of this significant project of AD ELEM means finalizing of production process in new surface mine “Brod -Gneotino”, direct strengthening of possibilities and efficiency of three mines and extension of life of our largest energy power capacity REK “Bitola”. Conveyor belt coal system is spread on track with length of approximately 10 km, speed of motion of rubber belt is 4,8 meters in second, its capacity is 3.800 tons of coal in hour and it consists of five sequences with five plant stations as well as complete infrastructure of overpasses and sewage outlet. Entire investment for this project amounts 18,6 million Euros.
- HPP “Sveta Petka” was commissioned in August and it entirely uses hydro potential of Treska river. Installed capacity of hydropower plant is 36,4 MW and it shall produce 66 GWh of electricity annually. The plant is entirely automated and by using embedded modern telecommunication and process equipment, its operation may be monitored and controlled by production dispatch center of AD ELEM in Skopje as well as from NDC of AD MEPSO. Regarding the construction of HPP “Sveta Petka”, it is entirely connected to multifunctional hydro system Skopsko Pole which includes the plants “HPP Kozjak” and “HPP Matka”. The dam with height of 64 meters and volume of almost 30 thousand cubic meters of concrete represents double curvature arch dam and it is first and unique of this kind constructed in Republic of Macedonia. Special materials were used for its construction. Entire investment for this project amounts 75 million Euros and it is one of the most valuable investments in the part for usage of energy potential in the country. Construction of hydropower plant set new standards in the field of construction of hydro energy capacity for Republic of Macedonia as well as for the wider area.
- Conveyor belt system for water ash removal in REK “Oslomej” was commissioned in august. This ecological project shall permanently solve the problem with ash removal from thermal power plant “Oslomej” and it shall entirely satisfy strict legal regulations from the field of ecology and environmental protection, it shall solve the problem with flying ash, by-product from electricity generation which caused problems to local inhabitants which gravitate around REK “Oslomej” for three decades. Entire investment for this project was 4 million Euros.
- We introduced standard from environmental protection and waste managing and it is one more proof that company operates according to the latest corporative world standards and during its ordinary operation AD ELEM pays attention to environmental protection. JSC “Macedonian Power Plants” received the certificate ISO 14001:2004 after environmental protection system was entirely implemented in its operation. After accomplished expert examination of the process, international accredit Certification Company “SGS Beograd” provided recommendation for issuing of certificate. Certificate is of great importance not only for our company but also for Republic of Macedonia. Introduced innovations in the operation shall mean saving of raw materials, increased energy efficiency, better and easier managing with costs. Among the acquisitions, there is entire reorganization and treatment of resources and waste which directly influence the environment.
- Realization of mega project with value of 55.9 million Euros for modernization and automation of thermal power plants and extension of lifetime of TPP “Bitola” is finished in the largest combine for production of electricity REK “Bitola”. This capital project, the largest in the history of REK “Bitola”, which was executed by the Russian company “Silovie Mashini”, increased the capacity of each thermal power plant for 8,3 MW or totally 24,9 MW.
- AD ELEM constructed main heat distribution line in length of two kilometers for the municipality of Avtokomanda, investment with value of 1,7 million Euros accomplished according to requirement by citizens. Heat energy which is provided by ELEM – Energetika was used for heating of 2.170 households and 72 public facilities and along with new investment, there shall be plus 1.854 households in 70 apartment units as well as kindergartens, schools, sport and trade facilities.
- As of 1st of January 2013, JSC „Macedonian Power Plants” through its subsidiary „Energetika” started to distribute heat energy for the customers in the entire settlement of Avtokomanda in Skopje. In order to provide this service, during the last year the company set the 2 kilometers main pipeline in Avtokomanda. This investment is valued at 1,7 million euros and it was conducted in cooperation with the Municipality of Skopje upon a request from the inhabitants and the local self-government. This investment made it possible for additional 1.854 households in 70 objects, as well as kindergartens, schools, athletic facilities and business centers to connect to ELEM Energetika heating network.
- During 2013th the boiler system in TE „Bitola 2” was modernized. This 88,5 million euro project features complete replacement of the coal track, the coal intake, the air intake, replacement of the bigger part of the hose system, decreasing of the emissions and many other operations on all three thermo power plants in REK „Bitola”. The entire realization of the project is planned to be finished until October 2015th when JSC „Macedonian Power Plants”, with respect to the NO emissions, will become compatible with the highest European environmental directives.
- JSC „Macedonian Power Plants” invested 3,5 million euros for additional geological and geotechnical researches of the coal pit Zivojno. The research ended in March 2013 and along with making elaborates for mine reserves and their revision, the process for finalization of researching Zivojno as new coal mine necessary for extending the life expectancy of REK „Bitola” was enclosed. It is estimated that JSC „Macedonian Power Plants” will invest 103,5 million euros in this mine and the realization would start upon finishing the main mine project.
- During the third decade of February 2013th the revitalization of the hydro power plants of JSC „Macedonian Power Plants” – second phase started, featuring change of the old and worn-out hydro-mechanic and, machine and electro equipment. Also, there was an architectural intervention in the hydro-power plants and its additional objects. Within the same project, additional equipment has been installed, especially in the range of automation of the power generating process, as well as installation of additional equipment for observing the architectural soundness of the dams, the stability and safety of the dams and the featured objects. The 33,6 million euros worth project which was officially completed in July 2014th, enables extended life expectancy of the existing hydro power plants and its featured objects, as well as increasing the safety and the capability, increasing the installed capacity to 18,31 MW and additional production of approximately 50 GWh electric power annually.
- JSC „Macedonian Power Plants” is working intensively on the project for central heating of Municipality of Bitola, Novaci and Mogila. For that reason in 2011th and 2012th the turbines from two thermo plants in REK Bitola were reconstructed, process worth 4 million euros. During the modernization of the turbine in plant 3, it regulated steam diverting was enabled by installing swathe on the new pipelines between the high and low pressure cylinders. The same procedure was conducted in Thermo plant „Bitola 2”. There is an ongoing process for preparing project documentation and after it’s completed, JSC „Macedonian Power Plants” will release an international bidding procedure for selection of contractor for the construction of the hot water heating network. According to the work dynamics, drafting the project documentation will end in 2014th after which a selection process for choosing the contractor for the hot water heating network will take place.
- Last year in May, on the location Ranavec it was marked the beginning of the construction of the Wind Park „Bogdanci” (WPB). The investment costs amounts 55,5 million euros. The loan from The Federal Republic of Germany, trough KFW bank is 47,9 million euros and AD ELEM provided 7,6 million euros from its own budget.
- Wind Park Bogdanci, the first of its kind in Republic of Macedonia, was completed in February 2014th and it uses the wind as source for generating electrical energy. The erecting and construction of the wind turbines on the location Ranavec was finalized as of 20th of February when the most complex part of the 76 day construction officially was concluded. By the end of March 2014th in a coordinated operation of the three power companies, ELEM, MEPSO and EVN – Macedonija, the WPB was connected to the power grid trough the Valandovo substation. With this procedure all preconditions for the test of the entire equipment were fulfilled and the test production of electrical energy started by the beginning of April when the first KWh were delivered to the Macedonian power grid. According to the activity schedule, once the test phase regulated by the manufacturer of the equipment is completed, the new power facility will be in disposal of the Macedonian power system and will start with regular production. The turbines are product of Siemens – Denmark and are considered among the best of their class. The installed capacity of each turbine is 2.3 MW, the height of the pole is 80 meters and the diameter of the rotor blade is 93 meters. WP „Bogdanci” is expected to deliver at least 100 GWh renewable energy, sufficient for households of more than 60.000 people in RM annually. Simultaneously, they will increase the installed capacity for 36,8 MW. This project will increase the rate of the renewable sources in AD ELEM portfolio which presents another indicator for the care towards the environment.
- On 31st of July was completed one of the most complicated technical procedures on the existing hydro power capacities owned by JSC „Macedonian Power Plants”. The revitalization of the hydro power plants – second phase was entirely completed and marked a new beginning for the modernized hydro power plant „Vrutok”. The whole project amounted at 36,6 million euros started in February 2013 and will enable longer life expectancy of our big hydro power plants, their additional facilities and also increase the safety and reliability. During the entire process, the worn out hydro-mechanic, mechanic and electrical equipment has been completely replaced. Also, the installed capacity has been increased for additional 18,31 MW and the annual production for additional 50 GWh. During the period from February 2013 until June 2014, all four generators have been revitalized in few stages. The installed capacity of the four generators is increased from 37,5 MW to 41,4 MW or 4 MW per generator. The benefits from revitalization of the generators in HPP „Vrutok” are: increased installed capacity of the HPP from 150 MW to 166 MW while maintaining almost the same water consumption per generator, increasing the efficiency and the capability of the system as well as prolonging the life expectancy for the next three decades. Along with the restart of the new four generators, the four generator substations were replaced and started working as well. Also in HPP „Raven”, located near HPP „Vrutok”, three generator substations were replaced with new 9 MVA substations. With respect to the activities concerning the Mavrovo hydro power plants, the procedure for superstructure of the Leunovo dam enabled possibility for utilizing additional 32 million cubic water, or additional 50 GWh electrical energy. The reconstruction of the Reka and Shara channels has been completed, thus minimizing the chances for water loss. Within the both channels, the detected damages have been repaired and the critical locations for potential land slide have been removed, therefore the safety of the channel is improved for the next five decades. With these procedures the local population will be protected from the risks of possible landslides. This project is featured with construction of new rebar reinforced concrete channel on the most damaged route of the intake in total length of 510 meters. Simultaneously, on this one and other two locations drainage was constructed for accepting underground waters in order to prevent landslides. The Toljane tunnel was also restored at the most critical routes. With this procedure the safety of the tunnel was significantly increased, yet the water losses throughout the object have decreased. Within the project additional equipment has been installed, especially in the area of automation of the process of electrical energy production and also installation of equipment for observing the architectural soundness of the dams, the stability and safety of the dams and the featured objects. The grout curtain on HPP „Spilje” dam has been revitalized and the installation of the new monitoring equipment on the dams in „Mavrovo”, „Globochica”, „Spilje”, „Tikvesh”, „Kozjak” and „Sv.Petka” is completed.
- JSC ELEM under the obligations of the Prespa Agreement has been renamed JSC ESM (JSC Power Plants of North Macedonia)
- AD ESM invested about 13 million euros for the purchase and commissioning of the gas power plant KOGEL, which was not working for ten years. In October 2019 the new energy capacity was promoted – KOGEL cogeneration gas power plant that will operate within the subsidiary “Energetika”, where about 3,500 households, 17 primary and secondary schools, and kindergartens, as well as over 75 legal subject are supplied with heat from the settlements Avtokomanda, Zelezara, Triangla, Madzari and Hipodrom. KOGEL consists of 10 gas engines with a total electric power of about 30 megawatts, which can emit thermal power of about 26 megawatts. KOGEL offers opportunities for providing three products – electricity, heat and technological steam. This type of power plants is extremely important for the stability of the power system, because in the event of a shortage of electricity from other facilities show excellent performance and great stability in the production of electricity and heat, given that gas engines in KOGEL provide fast work engagement and fast synchronization.
- The construction of the heating system of Bitola, Mogila and Novaci, which will use thermal energy from REK “Bitola”, has started. The construction works started in the area of the plant, in the immediate vicinity of the blocks for electricity production and are going smoothly with the installation of the pipeline in the direction of the village of Novaci. For the project “Heating of Bitola, Mogila and Novaci” a loan from the German KfW Bank in the amount of over 40 million euros is used, and additionally AD ESM invests 7 million euros of own funds. The heating will be joined by 35 state and municipal institutions in Bitola that will use one third of the capacity of the system, and the other two thirds will meet the needs of large residential and commercial buildings, and individual houses in Bitola, Novaci and Mogila. The contractors, Rapid Bild and Granit, have two years to complete the first phase of the project for which the contract was signed, which is excavation for tracing the heating pipeline and laying the heating pipes from REK “Bitola” to the city of Bitola, and setting up the distribution network in the city, followed by the second phase in which substations will be installed that will connect the pipeline with REK “Bitola” and the branched distribution network throughout the city of Bitola. In the third phase, substations will be installed at the institutions that will be connected to the heating.
- REK “Bitola”, with the investment worth 17,550,000 euros for the purchase of its own auxiliary machinery for the needs of the mines “Suvodol” and “Brod-Gneotino”, satisfies 30 percent of the needs for auxiliary machinery. REK “Bitola” has received all 36 separate pieces of its own mechanization ordered for the needs of the plant (graders, dump trucks, tow trucks for low-load platform, bulldozers, cranes, cisterns, trucks with load box and cranes with load capacity). The mechanization is from renowned and proven manufacturers such as Volvo, Komatsu, Renault, Belas and others, which with the values and features they offer guarantee quality in the execution of works. This procurement significantly reduces the total costs for using machines from external companies, and enables increase of the stability, reliability and productivity of electricity production. The savings resulting from the reduction of the costs for using machines from external companies, generate funds that the plant plans to direct to projects for ecological production of electricity, acceptable for the standards prescribed by the EU, but also for environmental protection.
- The photovoltaic power plant “Oslomej 1”, in April this year, began to produce the first quantities of clean and green electricity from the sun. The photovoltaic power plant of AD ESM built in the area of REK “Oslomej” with a capacity of 10 MW is the first example of energy transition in Southeast Europe where electricity will be produced by the sun through panels placed in space on the old and exhausted coal mine. The photovoltaic power plant in “Oslomej” has been put into production and is the first in a series of power plants that should completely replace the existing installed capacity of REK “Oslomej”. FE “Oslomej 1” is fully owned by AD ESM. The construction of the power plant cost 7 million euros, part of which is own funds, and part is a credit line from the European Bank for Reconstruction and Development, which provides favorable conditions for supporting investments in renewable sources. The contractor is the Turkish company “Girisim Elektrik” with which a construction contract was signed in November 2019. The Oslomej photovoltaic power plant is planned to have an annual production of 15 to 17 gigawatt-hours of electricity, to emit 13,000 tons of CO2 emissions per year and to provide electricity to about 2,800 households, but at the same time reclamation and refining of 19 hectares of arable land. The transition project continues with the Oslomej 2 photovoltaic power plant of 10 MW, which is in the phase of preparation of documentation, and with preparatory works for the start of construction of two power plants of 50 MW with public-private partnership with the companies Solarpro-Bulgaria and Fortis Energy, Turkey.