In 2015 JSC Elektrani na Makodonija fully realized two capital energy projects with total worth of 92,1 million Euro  and continued preparatory activities for other important projects to be implemented in the future. For the first time, in the Republic of Macedonia a facility was built that uses the wind as the driving force-Wind Park Bogdanci,  and the complex task of rehabilitation of hydropower plants – second phase was completed. The company presents a strong commitment to the implementation of projects for new renewable sources of energy. At the same time, the company undertakes preparatory activities and investigative work on the construction of new coal mines needed to produce electricity and invests in a new heating system for Bitola, Novaci, Logovardi and Mogila.

Coal site Zhivojno
This project, with a total projected value of 104 million Euro is planned to be realized in the period from 2015 to 2021. The preparation of a major mining project for exploitation of coal from the site Zhivojno is in progress and it is expected to be completed in 2017. The planned annual capacity of the mine “Zhivojno” will be used in addition to the total required quantities of coal for the unhindered operation of three units in TPP Bitola.

After preparation of main mining design  follows the procedure for opening the mine and it is expected full capacity to be achieved after 2020.

Utilization of local coal sites in Berovo (Pancherevo), Delchevo (Zvegor-Stamer) and Resen (Lavci)
Sites “Pancherevo” – Berovo and “Zvegor-Stamer” – Delcevo are on great distance from thermoelectric plants Oslomej and Bitola, however, taking into account the fact that in this part of Macedonia no active thermal power plant exists, we believe it is reasonable to think about building a new TPP Istok.The location of the site “Lavci” – Resen, where the coal has very low sulfur content, is interesting in terms of the relatively short distance for transport to the existing TPP Oslomej and TPP Bitola.

In progress is the initial phase of the detailed geological research in Lavci Zvegor-Stamer and Pancherevo with the preparation of elaborates and their audit. The total amount of 1.650.000,00 Euro is planned to be provided from ithe own financial sources of JSC ELEM.The possibility of using coal from these mines in the existing TPP Bitola and TPP Oslomej, as well as the existing solution for construction of a new thermal power plant will significantly increase the strategic value of these locations.

Revitalization and modernization of TPP Bitola Phase II and Phase III 

After completing the first phase of the revitalization and modernization of turbines, generators and automation in TPP Bitola, started the realization of the second phase of the Project for revitalization and modernization of TPP Bitola with reducing NOx. The total value of the project amounts to 88.5 million Euro, of which 73.5 million are provided by a loan from the German Deutsche Bank, and the rest is provided by JSC ELEM from its own resources.

The two blocs (2 and 3) are revitalized and modernized, which required an investment of 60 million Euro. This project extends the life of the boilers, while at the same time increases their efficiency. More importantly this project is aimed to increase the flexibility of the boilers with the possibility of accepting coal of different quality from different locations. At the same time emissions of Nox, with the modernization of the boilers meet the strict environmental criteria set by the EU.

Desulphurization of REK Bitola
In 2015 started the implementation of the third phase of the modernization and revitalization of the largest Macedonian power plant for the production of electricity by making a comparative analysis of relevant technology for desulphurization of REK Bitola followed by the preparation of a suitable Feasibility Study. For the realization of this project JSC “Elektrani na Makedonija” concluded an Agreement with “Rudis “-Trbovlje from Slovenia to draw up a feasibility study for the modernization and revitalization of TPP” Bitola “III-phase reduction of SOx and dust, expanded by the  influence of all harmful substances coming out of REK “Bitola” which will be implemented in two phases:

I phase: Preparation of comparative analysis for assessment of the technical, economic and financial justification for reducing SOx and dust from REK “Bitola” but also a wider  analysis on wet, semi-dry and dry procedure for desulphurisation and reducing dust with electrostatic, bag or combined filter and other methods.

II phase: Preparation of Feasibility study for the chosen procedure – Preparation of Feasibility Study for the selected technology to reduce SOx and dust, which will include additional technological solutions to reduce all emissions that are emitted from REK “Bitola”.Based on the comparative analysis prepared the most appropriate desulphurization procedure for application in REK “Bitola” is the selected wet procedure. 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 put aside or sold;
• In the process of working this type of technology is the most stable;
• Most applicable procedure for desulphurization (highest number of references);
• Highest efficiency compared to other in terms of manner of operation.

In progress is the preparation of the Feasibility Study for the selected technology to reduce SOx and dust, which will include additional technological solutions to reduce all emissions that are emitted from REK “Bitola”, after the preparation of the Study the process of selection of the international financial institution to perform the entire process will begin. With full implementation of this activity it will be achieved that the emissions of SOx and dust from REK Bitola will comply with the European directive Industrial Emission Directive (IED) 2010/75 / EU.

Revitalization and modernization of TPP Oslomej
In 2015 a Feasibility Study was made for modernization of thermoelectric power plant “Oslomej” using coal with a high calorific value, but also the possibility of using local supplies of low calorie coal is analyzed. The total investment to revitalize TPP “Oslomej”, according to the Feasibility Study is estimated to 126,000,000.00 Euro. The project is planned to be realized in the period from 2016 to 2020.

With this project a solid balanced domestic production capacity is achieved, with affordable electricity price, independent of negative and turbulent movements of shares and changes in the global energy market and the life of TPP Oslomej with installed capacity of additional 129,5MWel is extended for 30 years. At the same time the efficiency of the block is increased and the emissions of CO2, SOx, NOx and dust are reduced  in accordance with permissible emissions in the EU after 2016.

Heating for Bitola, Mogila and Novaci

The project to build the system for heating for Bitola, Novaci Logovardi and Mogila  is among the top priorities to be implemented by JSC ELEM in the coming period. In the past years  a series of important preparatory activities necessary for the realization of this important endeavor were completed.  Among the completed procedures are the preparation of Feasibility Study and preparation of project documentation which were approved by the competent institutions.  Proper reconstruction of two turbines of two thermoblocks of  REK “Bitola” was made which fully regulated the possible revocation of steam. Thus a basis wass created for building the heating system. At the end of last year an Agreement was signed on financing the project through a loan from the German KfW Bank.

The first phase of the central heating system for the supply of heat energy consists of the construction of a system for production of thermal energy, transport of hot water, primary pumps – thermal station in Bitola, network for distribution of hot water in Bitola and heat substations in buildings (individual, commercial and public) while for settlements Novaci, Mogila and Logovardi only connections to future distribution networks will be made.

One of the biggest benefits of the central heating system  is that it provides the opportunity to eliminate individual sources of environmental pollution. With the introduction of the thermal energy of the Pelagonija region, the use of oil and wood in public buildings and households will be significantly reduced , which would further reduce greenhouse gas emissions resulting from the combustion process, thereby greatly improving the  air quality in the region.  The quality of life of all citizens who will join the heating network will significantly improve given the lower costs for heating their homes with heating energy. According to our projections, we expect the price of the service to be lower than the one currently paid for heating by users in Skopje.

We expect that the construction of the heating system will have a direct impact on reducing emissions from burning wood, oil for households and coal in small domestic stoves and in ovens of public and commercial buildings, as well as reducing emissions of SOx, NOx and CO which  will ultimately increase the quality of ambient air in Bitola and its surroundings. The project will also have a direct influence on  the reduction of the probability of any improper treatment of waste oil in the preparation which is now used for heating. In addition, the transfer of citizens of Bitola and the region to this network will mean a significant reduction in the consumption of electricity which a large part of households and other entities use in winter to heat homes. In this context, among the positive effects. The significant reduction in the pressure on the distribution network in winter should also be mentioned which means saving natural resources that we use to generate electricity, primarily coal. If things on the field have the envisaged dynamics it is expected that until the beginning of heating season 2018-1019  the first users will start using thermal energy.

Coal mine and thermal power plant in Mariovo
To realize the opening of the mine underground exploitation “Mariovo” the total planned amount is 126,194,595.00 Euro, 15% of the value shall be provided from own financial sources of JSC ELEM, amounting to 18,929,189.00 Euro and the remaining amount of 107,265,406.00 Euro, through credit indebtedness. In 2016 started the preparation of the Feasibility Study for transporting coal from “Mariovo” to TPP “Bitola”, which will define the opportunity and momentum for realization of this project.

If the possibility of transport of coal proves to be economically feasible it is planned to select a financial consultant who will offer manners of realization and conduct the public procurement procedure.After the conduct of the public procurement procedure a Decision will be adopted on the manner of realization of the project:

• Investment from a private partner through model of concession or
• Public-private partnership between JSC ELEM and private partners.

Procurement of a new mining machinery

With procurement of mining equipment the life of thermal power plant REK Bitola will be extend for the next twenty years. It will also enable soonest opening of the mine PJS “Suvodol”, and reducing the operating costs in the excavation of coal from surface mine “Brod Gneotino”. With procurement of mining machinery there will be no need of engagement of external service companies for the use of machinery which would significantly reduce costs of exploitation and maintenance of REK “Bitola”. Before starting the procedure for procurement of mining equipment techno-economic analysis was developed, which showed certain return on the investment.

The value of investments for procurement of mining equipment amounted to 64.5 million Euro. The preparation of tender documentation for the public procurement is in progress after which will follow the realization of the procurement of mining equipment in the next two years. Additional geological research in Brod Gneotino. In its development policy for the timely provision of exploitation coal reserves and continuing the exploitation life of the thermopower plants in REK Bitola JSC ELEM takes appropriate action in the region, where coal reserves are already discovered and explored.

The exact quantities of coal will be known after the preparation of the elaborate fon the ore reserves after, the latest by May 2016, the research works on field are planned to be finished. The elaborate on ore reserves is expected to be ready at the latest by November 2016.

Wind Park Bogdanci – II phase
Once we realize the advantages of the operation of  Wind Park “Bogdanci” and acquire the necessary experience in the construction of this type of facilities, we will discuss opportunities for implementation of the second phase of the Wind Park Bogdanci through additional installed capacity of 13 MW and annual electricity production of around 36 GWh. The deadline envisaged for implementation is two years and the value of the project is 21 million Euro.

Upgrading HPP “Shpilje” and upgrading HPP “Globochica”
In October 2015  a Feasibility Study was made on the upgrade of hydropower plant Shpilje, whoch showed that the project is  technically feasibile.

Optimal operation of the hydro potential of the Crn Drim River 
The preparation of techno-economic analysis of optimal operation of hydropower potential of THE Crn Drim River is in progress.

Transferring water from Tenovo in HPP “Kozjak”
The idea of constructing a tunnel to transfer part of the waters of Vardar River to Treska River, that is from the location Tenovo to accumulation Kozjak is more than 50 years old. Based on the first study on this idea, which is made by the Norwegian consulting company Nortkonsult, in 2015 ELEM prepared technical documentation for the tunnel Tenovo-Kozjak, which provides energy indicators and some financial analysis with today’s prices and the condition of the power system in Macedonia.Communication was established with KfW Bank for possible financing of the project.

Vardar valley
Hydro energy use of the Vardar River is studied in several stages. So far  major projects for individual hydro-technical facilities were developed. The Vardar Valley project envisages energy use of the river Vardar with the most important tributaries.In accordance with the development and investment plans a technical feasibility of the project was submitted to the Mnagement Board, and it was decided to develop technical documentation at the level of Pre-fieasibility study that will be used to update the technical, economic and financial parameters of the project. For this purpose Terms of Reference was also made for the preparation of Pre-fieasibility  study on Vardar valley.