Study on Cogeneration of Heat and Electricity in Serbia

Client: The International Finance Corporation - IFC

Name of partner(s): ELC Electroconsult S.p.A, Italy- Main Contract holder and CESI, Italy

Start/Completion Date: January 2005 – December 2005

Project description: The main objective of the Study was to clarify technical, environmental and economic aspects of the use of cogeneration in Serbia. Analiysis of district heating systems in Serbia (50 towns), including actual status of the technologies applied, aged structure and functionality of heat sources in DH was done. The Study finally identified 15 potential co-generation projects. The possible technical alternatives include:

• Conversion to co-generation operational mode of certain existing coal fired thermo power plants, including their rehabilitation where necessary;
• Conversion of certain existing co-generation plants to gas fired combined-cycle cogeneration plants to make their operation economical outside the heating season;
• Conversion, rehabilitation and/or replacement of certain existing heat only boiler plants with cogeneration plants;
• Construction of new cogeneration plants where adequate heat demand was in existence or expected in the future.

All 15 cases have been analyzed in details including the most applicable technology, unit size (power and heat), cost effectiveness and environmental impact. Energy demand forecast was carried out, technical solutions were customized to the sites and optimal unit capacities (power & heat) were calculated for all 15 cases. For all 15 cases investment cost breakdown was defined as well as O&M costs. Annual energy balances were carried out (fuel input and power and heat outputs), as well as financial analyses (NPV, IRR, SPB etc) and finally environmental impact was assessed. In addition, the study has examined the environmental impact of cogeneration with respect to the occupation of the territory, the public health and environmental protection standards with particular emphasis placed on the necessary adjustment to new environmental standards.Special attention was dedicated to the reduction of CO2 corresponding to the adoption of the cogeneration in Serbia.