Investment Opportunities in Energy Sector of Montenegro

Transcription

1 D.Sc. Igor Kovačević Department of Renewable Energy Sources, Energy Sector Investment Opportunities in Energy Sector of Montenegro OUTLINE OF THE PRESENTATION Hydro Wind Solar Biomass Transmission Electricity Network Distribution Electricity Network Montenegrian Katun Abbreviation: RES - Renewable Energy Sources 1

2 1.1. Energy Sector in Montenegro Candidate country for EU Electricity producers: 2 HPPs, 1 TPP and 7 shpps (836 MW installed power) no new producers in past 30 years Imports around 30 % electricity and all fossil fuels used Heat produced using biomass and lignite for own consumption No gas network Need for efficient use of energy and resources Need for increased security of supply Electricity Sector in Montenegro Contracting party of Energy Community Treaty Natural energy resources: hydropower, lignite, biomass and solar radiation 1.2. Main Electricity Stakeholders EPCG (DSO*, producer and public supplier) HPP Piva TPP Pljevlja CGES (TSO) Established in % government owned, 22 % Italian company Terna and 23 % private stakeholders REA (Regulatory Energy Agency) Established in 2003 as an independent body Government regulatory institution COTEE (Market operator) Established in 2011 as an independent government body * Distribution system operator should be separated from EPCG during 2012 Existing production capacities operated by EPCG Company is 55 % government owned, 44 %, Italian company A2A and 1 % private stakeholders 2

3 Energy sector is recognized in Montenegro as an important driving force of the economic growth, especially investments in RE Energy Policy for Montenegro until 2030 sets three main priorities to be: ü security of supply; ü sustainable energy growth and ü competitive energy market Energy Law (2010) implements latest Directive 2009/28/EC regarding electricity and heating and cooling sectors: ü Incentives for energy produced from RES and cogeneration ü National target for energy produced from RES ü Guarantees of origin ü Privileged producers ü Joint Projects and Joint support schemes ü Programme for RES based on EU NREAP form Energy and Climate Change Politics in EU 1.3. Legislative and regulatory framework for RES 1.3. Legislative and regulatory framework for RES (cont.) Support scheme for electricity generation ü Electicity generated for Montenegrian national target in National Renewable action Plans Status of priviledged producers is defined in Energy Law on 12 years Facilities [c /kwh] Small hydro power plants till 3 GWh 10,44 from 3 till 15 GWh 7,44 from 15 GWh 5,04 Wind 9,60 Solid biomass from wood and agriculture 13,71 woody-pocessing industry 12,31 Solar systems 15,00 Waste to energy 9,00 Gas from waste, 8,00 landfills or sewage Biogas 15,00 FIT for electricity from RES Support scheme for heat generation not yet defined Feed-inn tariffs for electricity generated in RES facilities: ü Status of privileged producers and 3

4 OUTLINE Hydro Wind Solar Biomass Transmission Electricity Network Distribution Electricity Network Monastery Moraca generation of electricity 2.1. Hydro Potentials and Projects Hydro Potentials Total theoretical hydro-potential of Montenegro, as given in the Water Management Plan of Montenegro, is ~10 TWh, 17 % used Moraca river Measurements of hydro potential and development of registry of small HPPs in 13 municipalities, 87 locations for shpps, EBRD * - shpp Small Hydro Power Plants In-situ Flow Measurement Hidrometeorology institute of Montenegro is continuiusly measuring on potential location for shpps* in Montenegro since 2007, about 50 locations, NOR and UNDP 4

5 2.1. Hydro Potentials and Projects (cont.) Existing HPPs Modernization of the HPP Piva Second phase of modernization of the HPP Perucica Accumulation HPP Technical characteristics: ü installed power 168 MW (2 84 MW) ü annual production 232 GWh Investment: 160 M HPPs Moraca Technical characteristics: ü 4 HPPs, total installed power 242 MW ü annual production GWh Investment: 540 M Komarnica Canyon, dam location HPP Komarnica 2.1. Hydro Potentials and Projects (cont.) Small HPPs Two tender procedures for construction of small HPPs (2008 and 2010) 13 concession agreements signed Production starts in period 8 construction permits issued by relevant ministry based on 4 concession agreements Investment in shpps ~ 140 M Four energy permits and concession agreements for construction of shpps, by new procedure for construction of shpps installed power less than 1 MW, investment 1.2 M each Location of water streams where concessions for construction of shpps are given Planned construction of ~35 shpps, total installed power ~ 100 MW and planned annual production ~ 300 GWh 5

6 2.2. Wind Power Projects Two contracts for leasing state land and construction of wind farms were signed in 2010 (WPP Krnovo and WPP Možura) WPP Krnovo - Mitsubishi Heavy Industries-Ivicom Consulting (JAP - AUT) WPP Možura Fersa Celebic (ESP-MNE) ü Connection to electricity network ü Environmental Impact Assessment Study of integration of wind farms into electricity system of MNE (CGES-EBRD) WPP Možura Krnovo Munic. Ulcinj Bar Nikšić Šavnik Location of two Wind Farms Wind Gen. [MW] No. of units Investment [M ] ~70 46 ~ ~ ~160 Installed Production [GWh] power [MW] Developing phase of WPP projects: 2.3. Biomass Projects District heating on woody biomass, also micro system ü Pljevlja, installed power 18 MWth ü Mojkovac, Berane, and Kolasin Capacity for production of pallets and briquettes in Pljevlja ( tann), Brezna ( tann) and Bijelo Polje (700 tann) Sawdust hill in Brezna Other Biomass Landfill gas in Podgorica Cogeneration power plant on landfill gas in Podgorica Capacity for production of biquettes in Plantaže Podgorica Energy permit for power production from biogas from animal residues, ~560 kw, Podgorica Woody Biomass 6

7 2.4. Solar Projects High insolation in Montenegro central and southern region (ex. Podgorica 1600 kwh/m2) Example: Solar project Registry of potential locations for ü size 4 10 m 80 m, roof 8o rural and urban solar farms ü orientation west-east ü installed power: 414 kwp Solar zones in Municipalities of Ulcinj OUTLINE Hydro Wind Solar Biomass Transmission Electricity Network Distribution Electricity Network Solar-thermal collectors in Tuzi 7

8 3.1. Transmission Electricity Network Undersea Interconnection Line Italy Montenegro 375 km of undersea cable 1000 MW capacity HVDC bipolar cable, 2x500 MW Project is developed in cooperation with TERNA (Italy) and CGES, Agreement on Project Completion was signed in November 2010 Start of operation Investment 700 M 3.1. Transmission Electricity Network (cont.) Interconnection Lines and Transmission Lines in Montenegro Line 400 kv Podgorica-Tirana was finished in 2011 Overhead Line 400 kv Montenegrin Coast Pljevlja ü 90 M investment Substation Brezna 400/110 kv for connection of WPP Krnovo and HPP Komarnica Interconnection lines to Serbia and BiH Transmission electricity network in 2015 ü Detail spatial plan was finished in 2011 Substation on the cost 8

9 3.2. Distribution Electricity Network Distributed Generation Sources Recommendations for connection for distributed sources on electricity network Development of electricity network in rural area reach with high RES potentials Example: Bistica (BE) ü Planned 8 shpps ü Installed power 10,2 MW ü Connection to the existing grid, investment 1,7 M Conncection of shpps of Bistrica on electricity network Study for connection and commissioning distributed generation sources on electricity network in Montenegro, GEF-UNDP OUTLINE Hydro Wind Solar Biomass Transmission Electricity Network Distribution Electricity Network Tara Canyon 9

10 4.1. Investment Risk and On-going Solutions Local governments with the most potential have financial issues and no capacity for development of sustainable energy projects Example of a solution: Sustainable energy development of Kolasin (NOR ) Implementation-technical body for planning and realization of RES and energy efficiency studies/projects in collaboration with local governments Coordination donors activities in energy sector at the local level Development of shpp projects on the territory of municipality Kolasin Hydro potential is high, but there is no national registry of water use and potential in Montenegro (ground and underground) Example of a solution: Registry of small water streams in Montenegro (EBRD ) 1-year hydrological measurements of small water streams that could be used for construction of shpps On-line GIS registry of water streams and their characteristics 4.2. Planning Solutions Electricity distribution network needs to be reconstructed and extended in order to enable connection of RE producers Example of potential solution: Construction of main overheads lines in areas with high RES potential Construction of 35 kv or 110 kv lines needed for connection of set of RES producers as analyzed by ongoing distribution network study (GEF UNDP) that are envisaged or need to be included in DSO/TSO long term plans Use of electricity and inefficient stoves and biomass for heat generation Example of a solution: Development of wood energy market in Montenegro (LUX ) Study of potential and challenges to develop woody biomass market Help to wood-processing industries to develop wood fuel production facilities Replacement of stoves to wood based in public facilities Improvement of statistics on wood consumption in Montenegro 10

11 OUTLINE Hydro Wind Solar Biomass Transmission Electricity Network Distribution Electricity Network Electric vehicles in Perast 5. CONCLUSIONS Financial Opportunities: ü Modernization of existing hydro power plants - EPCG ü Investments in Hydro Power Plants - EPCG or concessionaires ü Small Hydro Power Plants - private investors, private public partnerships and/or local municipalities ü Investment in Wind Power Plants - private investors ü Financing Solar and Biomass Projects, especially for heat generation - private investors and concessioners for exploitation of forests ü Extension of Transmission and Distribution Electricity Network CGES, EPCG and other investors 11

12 5. CONCLUSIONS Montenegro is creating the ambient for sustainable economic development through RES projects RES plans, potentials and projects in pipeline in Montenegro are presented Significant development of transmission electricity network is on-going Delevopment of electicity network for connection of distributed generation sources is necessary National implementation body for assuring sustainable energy development on the local level Main challenges for sustainable energy development are presented along with potential solutions additional improvements needed through systematic solutions Igor Kovačević Ministry of Economy Energy Sector ;