Banovici power station

From Global Energy Monitor

Banovici power station is a proposed 350-megawatt (MW) coal-fired power station in Banovici, Bosnia and Herzegovina.


The map below shows the approximate location where the plant would be built in the city of Banovici.

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The project has received permits and approvals for construction, planned for completion in 2018. The total estimated investment value is 584 million euros. It would include development of the Banovici coal mine. RMU Banovici is seeking a strategic partner.[1]

According to Bankwatch, the Bosnian Federal Minister of Environment and Tourism issued an environmental permit in 2012 for the power station which included no limits for air pollution emissions.[2]

In May 2014, Banovici selected 11 qualified bidders out of 13 companies to finance and build the new power plant. By February 2015 RMU Banovici selected four companies for the final round. Three of the bidders are Chinese companies Shanghai Electric Group Co., China Gezhouba Group and Dongfang Electric Corp., while the fourth one is a consortium led by Spain's Abengoa SA, which includes China's Harbin Electric. The best offer will be chosen by the end of 2015. The power plant is expected to be connected to the grid in 2020.[3][4]

In October 2015 Bosnia said it had chosen China's Dongfang Electric Corp to finance and build the 350 MW coal plant. Construction is expected to begin in mid-2016.[5] Financing agreements for the project were also signed between Dongfang and the Industrial and Commercial Bank of China (ICBC).[6] Later reports stated that Chinese banks led by the Industrial and Commercial Bank of China (ICBC) had agreed to provide loans for 85% of the project financing (approximately US$ 363 million), while the remainder would come from a consortium of Bosnian banks led by the local unit of Italy's UniCredit.[7]

In February 2017 the EU Energy Community ruled Banovici will be considered a new plant under the Industrial Emissions Directive (IED) Chapter III, and must therefore comply with the stricter emission limit values for plants that enter operation after 1 January 2019, requiring amendments to the permit for the plant issued by the Ministry that did not specify this requirement. The decision came in response to a July 2016 complaint filed by the environmental NGO Ekotim.[8][9]

In December 2017 the Federal Ministry for Spatial Planning in Bosnia-Herzegovina denied Banovići a construction permit for the 350 MW lignite plant, saying key issues such as water supply, coal supply, wastewater, flue gases and ash disposal had not been resolved. A lawsuit challenging the plant's environmental permit from the Federal Ministry of Environment and Tourism, issued in January 2016, is ongoing.[10]

On May 21, 2019, it was reported that the Government of the Federation of Bosnia and Herzegovina (FBiH) had tasked the state-owned power utility EPBiH "to accelerate all activities related to the projects for the construction of new units at existing coal-fired thermal power plants Tuzla (unit 7) and Kakanj (unit 8), as well as the project for the construction of TPP Banovici near the coalmine of the same name."[11]

In September 2019, RMU Banovici was denied a water permit for the coal plant, on the grounds that the application did not meet the required conditions for a planned water reservoir.[12]

Project Details

  • Sponsor: RMU Banovici (Banovici Brown Coal Mines)
  • Parent company: RMU Banovici
  • Location: Banovici, Tuzla, Federation of Bosnia and Herzegovina
  • Coordinates: 44.4, 18.5333 (approximate)
  • Status: Permitted
  • Gross Capacity: 350 MW
  • Type: Supercritical
  • Projected in service: 2020
  • Coal Type: Lignite
  • Coal Source: Banovici coal mine
  • Source of financing: Dongfang Electric Corp[5] and Industrial and Commercial Bank of China (ICBC)[6]

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