Supported byOwner's Engineer
Clarion Energy banner

New thermal block B3 in Kostolac to boost Serbian energy system after decades of delay

Supported byspot_img

After more than three decades, Serbia’s energy system could see a significant boost this winter with the addition of a new thermal block, as the previous one was commissioned in 1991. Like the 1991 thermal block, the new one is located in Kostolac. According to the Ministry of Mining and Energy, it is expected to be operational before the heating season begins. The new thermal block, B3, has faced considerable delays, having originally been slated for completion by 2020, with an extended deadline to the end of 2022. Interestingly, the construction of this block has been overseen by three different ministers.

The construction of Block B3 began in November 2017 by the Chinese company China Machinery Engineering Corporation (CMEC) under the supervision of then Minister of Mining and Energy Aleksandar Antić. At that time, it was announced that CMEC would complete the project during 2020. When the project was not finished in 2020, then-Minister Zorana Mihajlović inspected the construction and publicly urged the contractor to complete the block as soon as possible, criticizing the lack of progress and efficiency. The delay was attributed to COVID-19-related restrictions, leading to a new deadline of late 2022. Block B3 still was not operational by this date. The current Minister of Mining and Energy, Dubravka Đedović Handanović, recently stated that the physical construction of Block B3 is complete, and functional testing is about to begin to meet warranty requirements. The new target for operational status is autumn 2024.

Reasons for delay

Supported by

The initial delay from 2020 was attributed to the COVID-19 pandemic, while the reasons for the second delay in 2022 have not been publicly detailed. The Ministry of Mining and Energy indicated that the second delay was due to the Ukraine conflict, specifically the energy crisis and inflation caused by the war. It remains unclear whether the Chinese company has been penalized for the delays.

About the B3 project

According to the Ministry, Block B3 in Kostolac is expected to be available to EPS (Electric Power Industry of Serbia) before the start of the heating season. Functional and warranty tests must be completed first. The new unit will have a capacity of 350 megawatts, with an expected annual production of approximately 2.6 billion kilowatt-hours, and a total investment value of $613 million.

85% of the project financing comes from long-term loans from the Chinese Exim Bank, while the remaining 15% is provided by EPS. The Ministry emphasizes that the new block will enhance the long-term energy security of Serbia’s power system.

Supported by

Block B3 is expected to be the last thermal block built according to the draft “Energy Development Strategy of Serbia until 2040 with Projections until 2050,” which aims to increase the share of renewable energy sources and improve energy efficiency while maintaining energy security. The plan includes phasing out oil and coal by 2040 and improving the security of oil and gas supplies, with new developments in hydrogen and nuclear energy. If the government adheres to this plan, Block B3’s operational lifespan is estimated at 15 years, although some existing blocks in Serbia’s energy system have been in operation for over 50 years due to high energy demand. As such, Block B3 may remain in operation beyond 2040.

Environmental concerns

The construction of Block B3 has raised environmental concerns due to its potential negative impact. Environmental groups worry that the new thermal block could increase emissions of harmful gases and particulates, negatively affecting air quality and public health. There is also concern about continued reliance on fossil fuels instead of transitioning to renewable energy sources.

Strengthening the energy system for winter

With the addition of 350 megawatts from Block B3, the energy grid will be further strengthened this winter, thanks to maintenance work on thermal and hydro power plants.

The Ministry reported that routine annual maintenance has been completed on several thermal blocks, including B1 and B2 at the “Nikola Tesla” (TENT) power plant in Obrenovac. After the maintenance, Block A6 is also back online, with major overhauls of Block A1 in Kostolac scheduled for early August and additional maintenance of TENT A2 and Block B1 in Kostolac planned before the heating season. In the hydro sector, a significant investment is the revitalization of RHE “Bajina Bašta,” which began after 42 years of operation. Other completed maintenance includes repairs on hydroaggregates at “Bistrica” and “Kokin Brod,” with work ongoing on four hydroaggregates.

Future of the oldest blocks

There has been ongoing discussion about shutting down the oldest blocks in Serbia’s energy system, specifically Blocks A1 and A2 at the TENT power plant in Obrenovac. No final decision has been made yet, and there are even plans for additional maintenance to extend their operational life. These blocks are over 50 years old.

The Ministry notes that, according to the “Starting Points for the Energy Infrastructure Development Plan until 2028 with Projections until 2030” and the draft “Energy Development Strategy of Serbia until 2040 with Projections until 2050,” measures will be applied to align emissions from Blocks A1 and A2 with regulatory standards.

Supported by

RELATED ARTICLES

Supported byClarion Energy
spot_img
Serbia Energy News
error: Content is protected !!