Public heating utility Beogradske Elektrane and power utility Elektroprivreda Srbije (EPS) have signed an agreement to build infrastructure for the Obrenovac – Novi Beograd heat pipeline.
The contract on building infrastructure for the Obrenovac – Novi Beograd heat pipeline, which will provide heating for residents of Novi Beograd and Zemun from coal-fired power plant Nikola Tesla A (TENT A), was signed by Vanja Vukić, director of Beogradske Elektrane, and Miroslav Tomašević, director of EPS.
The two companies did not disclose what infrastructure will be built, but they emphasized that it is a very important project. The first contract on the construction of the pipeline, between the Government of Serbia and Power Construction Corporation of China, was signed in November 2017, while in January 2020 a contract was also signed between Beogradske Elektrane, the City of Belgrade, and the Chinese construction company.
In June last year, it was announced that preparatory work for the construction of the pipeline was underway.
The loan for the project will be repaid from savings in the supply of heat
The value of the project was estimated at EUR 193 million, and should be financed with a EUR 165 loan from the Export–Import Bank of China (Chexim – China Exim Bank).
According to Beogradske Elektrane, the repayment will be financed from lower costs of heat production in EPS’ power plants TENT A compared to production in Beogradske Elektrane.
The construction of the heat pipeline from the largest Serbian thermal power plant to the Novi Beograd heating plant, a part of the Beogradske Elektrane, is one of the most important national energy projects, which will connect the production capacities of EPS and Beogradske Elektrane, said the Belgrade heating company.
Heat produced in cogeneration of TENT-A will be used to supply a significant part of the current consumption of the consumers supplied by Beogradske Elektrane, primarily in the area of Novi Beograd, Zemun, and on the right bank of the Sava river.
The project will reduce the consumption and import of natural gas, a move more than welcome amid the energy crisis
The goals of the project are to replace imported natural gas with available thermal energy from TENT-A, to increase energy security and reliability of the district heating system, but also to reduce polluting emissions in the Belgrade area, Beogradske Elektrane said.
Lower gas imports are very good news in times of energy crisis when the prices of energy are skyrocketing.
The project envisages heat to be transferred from units A3 and A6 of TENT A to the Novi Beograd heating plant. It also includes the reconstruction of units, and the construction of the 28-kilometer pipeline.