Electricity

EPBiH to calculate CO2 costs internally after deal with Energy Community

EPBiH calculate CO2 prices internally deal Energy Community

Photo: Thermal power plant Tuzla (EPBiH)

Published

May 21, 2021

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Published:

May 21, 2021

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Elektroprivreda Bosne i Hercegovine intends to include carbon dioxide prices in its financial reports from next year at the initiative of the Energy Community Secretariat, the power producer’s General Manager Admir Andelija said. It will be the first company in BiH to do so.

The dominant coal-fired thermal power plant operator in Bosnia in Herzegovina revealed plans for the introduction of internal carbon pricing. State-owned utility Elektroprivreda Bosne i Hercegovine, EPBiH, will sign an agreement with Energy Community Secretariat Director Janez Kopač tomorrow, General Manager Admir Andelija said and added CO2 costs should be included in financial reports from next year.

EPBiH recently estimated potential CO2 expenses at EUR 200 million per year.

Speaking at the Trebinje Energy Summit, he said the company accepted to become the first in the country to calculate the expenses and that it is ready to make hard decisions. Kopač earlier said power producers in the region should at least begin to take note of what they would have to pay for greenhouse gas emissions when such a system is rolled out.

CO2 pricing will hit coal plant owners like EPBiH hard

Western Balkan countries have taken on the obligation to start pricing CO2, so coal power plant operators like EPBiH will face huge losses. Permits in the European Union’s Emissions Trading System or EU ETS topped EUR 55 per ton of carbon dioxide equivalent this month, which means they are more expensive than the remaining costs for such companies in the region.

Montenegro already has a national CO2 certificate scheme. North Macedonia’s electricity producer ESM vowed to include carbon costs internally by the end of the year.

Andelija asks EU, Energy Community Secretariat for help in decarbonization

Andelija said Western Balkans have the same obligations like European Union member states with regard to decarbonization, but not the same possibilities, and expressed hope the EU and the Energy Community Secretariat would provide assistance. He added EPBiH plans to develop 700 MW in power production capacity from renewable sources by 2030.

EPBiH plans to install 700 MW in power production capacity from renewable sources by 2030

The executive noted coal is the source of 80% of the company’s output. It owns thermal power plants Tuzla and Kakanj, which are due to shut down a combined 410 MW of their capacity by the end of the decade, he said. The plan is to close Kakanj by 2040.

EPBiH is building another unit in Tuzla, which is scheduled to end production by 2050. BiH faces sanctions because of the project.

Public calls to be issued this year for construction of photovoltaic systems of 150 MW in total

Andelija estimated that by the autumn the company would issue public calls for three solar power plants of 120 MW in total and a 30 MW photovoltaic unit at the site of its wind power plant Podveležje. Projects in the pipeline include up to 250 MW in hydropower: two plants on the Bosna river and one each on the Drina and Neretva, he said.

The utility is developing four hydropower plants with as much as 250 MW in overall capacity

The utility’s general manager said it is negotiating with owners of as many as 15 renewable power plants to buy the facilities. He underscored EPBiH is also developing wind power plants Vlašić and Bitovnja with a planned capacity of 50 MW each.

The company operates in the Federation of Bosnia and Herzegovina, one of the two entities making up BiH. The other one is the Republic of Srpska, where three more coal-fired power plants are located.

If Western Balkan countries don’t roll out their own emission trading schemes, exports to the EU will be hit by a planned cross-border carbon tax.

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