Turkish billionaire to have gas-powered steam power plant built near Niš ?

Source: Novosti Thursday, 10.03.2005. 15:00
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The offer of Turkish billionaire Šarik Tara to have big gas-powered steam power plant built near Niš (400 MW) stirred up the tempers in Electric Power Company of Serbia.

Authorized people from EPS say that they took remunerability into consideration, as well as all possible consequences of construction of not only one new coal-powered steam power plant, but also another gas-powered one. They concluded that coal-powered plant is more favorable solution for EPS and economy of Serbia, although they took into consideration all so-far known advantages of natural gas.


Coal-powered power plant is more favorable solution because the share of domestic components in the investments would be much bigger, since the coal is domestic fuel, it has stable price and is cheaper than imported gas. The price of gas is liable to big and abrupt rises and drops on the world market, and it is also clear that big introduction of gas increases energy dependence of Serbia.

The advantage of gas-powered power plants lies in the fact that they can be constructed and put into operation in 2.5 years, whereas coal-powered steam power plant requires at least 5 years. Gas-powered generators are ecologically cleaner. Along with quick construction, gas-powered power plants cost less. Depending on capacity and location, their price is almost half of the price of coal-powered plants.

EPS says that it barely has capacities to repair these existing, used for decades, generators. The price of at least 5 eurocents per kW would lead to quick rehabilitation and commencement of construction of new power plants.

EPS does not believe that any investor will be interested in investment in construction of new power plants in Serbia until the price of electricity is 3.3 eurocents. The lowest price in the neighboring countries is above 5 eurocents per kW for a long time now.


By the way, mid-term power development strategy implies construction of "at least one new" production capacity of 800-1000 MW. EPS still expects that it will be new power plant on cola mines of "Kolubara". But, concerning the fact that there will be big deficit of electricity in Serbia some time in 2007 or 2008, lateness of the State, i.e. EPS, in construction of water- and coal-powered, in a way, opens door to construction of gas power plants because they are both cheaper and quicker to built.

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Šarik Tara
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