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Belgrade, June 2009

Published by:

PE Electric Power Industry of Serbia Public Relations Sector 2 Carice Milice St., Belgrade, Serbia www.eps.rs, eps@eps.rs Dragomir Markovi, general manager Mihajlo Gavri, Aleksandar Vlaji and Bratislav eperkovi Reakcija, Belgrade Kolor Pres, Lapovo 1500

For the publisher: Authors: Design: Printed by: Circulation:

THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

TABLE OF CONTENTS
INTRODUCTION Purpose of this document Content of the document About us Thermal Power Plants Installed capacities The most important activities in the thermal power plants between 20002008 Projects for construction of new thermal power plants - PE Electric Power Industry of Serbia Environment and conditions Legislation EU legislation and international contracts The United Nations Framework Convention on Climate Change Kyoto Protocol and the best practices in the energy sector Environmental Legislation of the Republic of Serbia ENVIRONMENTAL PROTECTION CONDITION IN THE ELECTRIC POWER INDUSTRY OF SERBIA IN THE PERIOD 20012007 Some of the indicators of the environmental condition in the PE Electric Power Industry of Serbia Coal generation Electricity generation Programmes and projects of thermal power plants in the area of environmental protection Activities already performed on environmental protection projects in thermal power plants of the Electric Power Industry of Serbia in the period 20032007 ENVIRONMENTAL PROTECTION CONDITIONS IN THE ELECTRIC POWER INDUSTRY OF SERBIA IN 2008 (THERMAL ENERGY SECTOR) EA TPPs Nikola Tesla EA TPPs-OPMs Kostolac EA Pannonian CHP Plants EXPECTATIONS FOR THE PERIOD 20092017 Basic development goals and priorities Requirements related to international aid PRIORITIES FOR INTERNATIONAL AID FOR ELECTRIC POWER INDUSTRY OF SERBIA IN THE AREA OF ENVIRONMENTAL PROTECTION PRIORITIES AND REQUIREMENTS IN THE PERIOD 20092017 Planned activities for environmental projects at open pit mines, thermal power plants and hydroelectric power plants of the Electric Power Industry of Serbia for the period 2009 2015 Risks of failure to perform the planned activities during implementation of the projects in the thermal power plants of the Electric Power Industry of Serbia ANNEX I Environmental protection legislation of the Republic of Serbia - Energy sector ANNEX II Action plan of the Public Enterprise Electric Power Industry of Serbia for Environmental protection (Activities and measures) ANNEX III Action Plan of the Electric Power Industry of Serbia for adaptation to climate changes (Activities and measures) ANNEX IV Project proposals available on CD Abbreviations, glossary of terms and list of tables About authors 5 8 10 12 14 14 17 19 25 27 27 27 32 35

37 41 41 43 44 47

51 54 66 73 81 85 87

89 95 101 105 107 119 137 141 145 151

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INTRODUCTION

THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

This book-document has been prepared in this form in order to present the strategic and leader position of the Public Enterprise Electric Power Industry of Serbia in the area of South-Eastern Europe (SEE) and West Balkans in the most comprehensive way. From the aspect of the leading electricity generator and distributor in the region, but the biggest measurable polluter as well (generation of waste, ash and slag, as well as emission of flue gases, SO2, NOx, CO2 etc), the Public Enterprise Electric Power Industry of Serbia as the first Electric Power Industry among the signatory countries of the Energy Treaty recognizes its needs and responsibilities in the area of environmental protection. It is a known fact that the thermal power sector with the transportation has had the most important adverse effect on the environment as an emitter of harmful gases which are generated as a result of technological processes of electrical power generation from coal. Therefore this sector must have a complex, complete

and comprehensive approach to environmental protection. In the Electric Power Industry of Serbia this approach is reflected in the fact that the management and the employees of the Public Enterprise Electric Power Industry of Serbia are completely aware of the importance and the necessity for thorough monitoring and implementation of the proclaimed policy of the European Union and the whole international community in the struggle for environmental preservation, prevention and minimization of adverse effects of climate change, transboundary air pollution and a number of negative consequences for near and distant environment, especially with regard to protection of water, soil, air and health of population. The Public Enterprise Electric Power Industry of Serbia complies with the principle of sustainable development and therefore EPS accepts all EU standards and legislative regulations in the area of environmental protection.

THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

Purpose of this document

As a programme document The Green Book of the Electric Power Industry of Serbia sets out the priority programme activities related to environmental protection within the thermal power sector, which are the basis for planning of domestic funds and programming of international aid funds, aimed at the improvement of efficiency of these funds. The document is based on the existing strategic framework and defined mid-term goals and it comprises the programme of priority activities and projects for the implementation of these goals. The purpose of this document is to contribute to the implementation of reforms and strategic goals of the Electric Power Industry of Serbia and thus of the country as well, by creating a five-year programme framework and providing the necessary level and structure of international aid. Therefore, this document shall be presented to the donor community in order to enable coordination of the donors activities and support with the national development priorities of Serbia which are expressed through the following: Sustainable Development Strategy for the Republic of Serbia; Strategy for Energy Sector Development for the Republic of Serbia until the year 2015; Cleaner Production Strategy for Serbia; National Environmental Action Plan (NEAP); Programme for the Achievement of Energy Sector Strategies;

Framework Plan of PE Electric Power Industry of Serbia for the reduction of emission of particles from the thermal power sector: Emission Control from Coal-Fired TPPs of the Electric Power Industry of Serbia, financed by the European Agency for Reconstruction, 2003; Prefeasibility study Emission Control from Coal-Fired Power Plants financed by the European Agency for Reconstruction, 2003; Environmental Protection Law; Integrated Pollution Prevention and Control IPPC; Implementation of the SEE Energy Community Treaty. This document sets out the priority goals and plans/programmes for the realization of these goals in the thermal power sector of the Electric Power Industry of Serbia, identifies the priorities for the international support in the future and estimates the necessary international aid based on macroeconomic projections for the observed five-year period. In this respect the document shall be used as an instrument of harmonization and coordination of the donors aid. Since Serbia is the country in the process of joining the European Union, specificities of Serbia as a country and of the Electric Power Industry of Serbia as a recipient of aid consist in the fact that the international aid is mainly directed to the support of

THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

the European integration process and reaching of EU standards and norms, as well as the fact that the most important donor is the European Union itself, with all its specific features related to the management of such funds. The below stated factors have a special importance for the improvement of efficiency of the aid received by Serbia and the Electric Power Industry of Serbia: coordination of donors activities with the adopted national development strategies and priorities defined in the strategic inter-sector and sector documents; foreseeability of outside financing funds, in order to improve the efficiency of use of international funds; coordinated use of outside and own financing funds, gradual directing of the European Union aid and increased use of national systems for financial management and public procurements (introduction of Decentralized Implementation System for management of EU funds). 1 In order to achieve these goals, follow-up their realization and plan the appropriate steps, the Ministry of Finance has introduced an instrument for monitoring of international aid efficiency.
1 Decentralised Implementation System for EU funds-DIS.

THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

Content of the document

The programme presented in this book-document is based on the existing strategic framework, determined by the following: National strategy of Serbia for joining the European Union, Sector strategies, Priorities of European partnership, Programme approach and commitment to solving of problems in the area of environmental protection within the Electric Power Industry of Serbia in terms of reaching the national goals of the country related to joining the European Union, Development plan for the Electric Power Industry of Serbia until the year 2015. As a programme framework, this document gives the breakdown of the existing situation, mid-term goals and priority programmes of activities for their implementation for the period between 2009-2017. By establishing the programme of activities within the strategic framework it is possible to define the priorities which will provide the most efficient allocation of funds and other types of aid. The tables of priority

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reform and investment projects contain all priorities regardless of the financial source (with the designation indicating whether own funds or outside funds have already been provided for the programmes/projects) and they represent a unique programme platform which will provide the donors with a breakdown of planned activities and coordination in allocation of own and external sources of financing. Mid-term goals within the sector, defined in the mentioned strategic documents, have been taken into consideration during the identification of priority programmes/ projects. The goal is to define the unique priority list within the sector, as well as programmes/projects for their implementation based on the mid-term priority goals defined in the strategic documents. In the second chapter of this document priorities for aid are defined, with the intent to determine key areas which would gain significantly from the international help in the near future. This could serve as a basis to the international partners for the preparation of strategic documents which set out the goals and priorities of aid for the energy sector of Serbia. The criteria for identification of priority/key areas for international aid between 2009-2015 were as follows: the level of priority and significance of the area according

to the existing strategic documents of the Electric Power Industry of Serbia related to environmental protection; achieved level of reforms and evaluation of the implementation of strategic, reform goals; significance of providing the international technical support for the implementation of planned activities in the given area and possibilities of providing financial funds from other sources (own funds, budget of the Republic, credits at the capital market, donors funds). Revisions of the document shall be made annually2 , and the document shall cover one additional year, including the achieved progress of reforms, provided funds for financing of the defined priority projects, as well as new priority projects/programmes.

2 In the U regulation which sets out the new financial instrument of the European Union-IPA (IPA - Instrument of Preaccession Assistance) it is stated that the users of these funds are expected to make annual amendments of three-year indicative development plans (roll-on principle).

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ABOUT US

The problems related to environmental protection have been intensified as a consequence of the longlasting crisis in the last decade of the past century. During these difficult years the Electric Power Industry of Serbia was forced to generate electricity. Unfortunately, environmental protection was in the background. The consequences of such situation are visible in the direct environment of the utility Electric Power Industry of Serbia, but also outside of its immediate environment, with regard to the transboundary transmission of adverse effects of coal based electrical power generation to the environment. Sulphur and nitrogen oxides are the products of combustion and they enter the air with particulate matter. They combine with atmospheric rainfall and produce acid rain which falls to the ground and adversely affects the complete vegetation. Acid rains have already caused serious consequences on forests of Serbia and its environment. Since the year 2000, along with the renewal of capacities and achievement of new production records, the Electric Power Industry of Serbia has managed to complete a number of projects which significantly improve environmental protection and which place the Electric Power Industry of Serbia in the leader position in this area in the Republic of Serbia. Until recently four laws have been adopted, which are harmonized with the EU legislation in the area of environmental protection. One of these laws is the Law on Integrated Pollution Prevention and Control (IPPC). This law offers the possibility for obtaining of integrated license (license for operation)

with the deadline until the year 2015. Concerning the responsibilities which arise from the Contract on European Community and related to compliance with all principles of the EU in the area of energy sector and environmental protection, electricity trading and market behaviour, the Electric Power Industry of Serbia has prepared an Action Plan for solving of environmental issues, which was verified by the Board of directors of the company. This plan has been accepted by the Government of the Republic of Serbia, as an integral part of the Electric Power Industry Development Plan based on the Programme for achievement of Energy Sector Strategies until 2015, National Environmental Action Plan, National sustainable development strategy and a number of other relevant documents. It is foreseen in the Action Plan to invest 1.2 billion euros in the implementation of environmental protection project until the year 2015. These are, in the first line, the projects for flue gas desulphurization systems (level of necessary investment is app. 530 million euros for the existing power plants) and complete reconstruction of all electrostatic precipitators and bringing of their operation to the emission levels compliant with the EU standards. It is also planned to replace the ash and slag disposal technology and to introduce the continuous emission monitoring for hazardous substances. For the implementation of these projects the financial funds from the following sources are foreseen: own funds, credits, EU aid funds, donors funds, investments from the Environmental Protection Funds of the Republic of Serbia, National Investment Plan.

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THERMAL POWER PLANTS

Installed capacItIes
Electricity in the Republic of Serbia is generated within the Electric Power Industry of Serbia, which covers the generation capacities shown in the Table 1 and Fig. 1.

Figure 1. ELECTRIC POWER SYSTEM OF SERBIA

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Table 1. Installed output of the thermal power plants (net output) in MW Installed net output Type of the thermal power plant with capacities in Kosovo and Metohija 5,171 353 2,831 8,359 % 61.9 4.2 33.9 100.0 without capacities in Kosovo and Metohija 3,936 353 2,835 7,120 % 55.3 5.0 39.7 100.0

coal fired thermal power plants combined heat and power plants (gas and heavy oil) Hydroelectric power plants total power plants of the pe electric power Industry of serbia

Thermal power capacities of the PE Electric Power Industry of Serbia are composed of: eight thermal power plants (PP) with 25 units, lignite fired, with the total installed net output of 5,171 W. Two thermal power plants with seven units, with the total installed net output of 1,235 MW are located on the territory of Kosovo and Metohija; three combined heat and power stations (CHP) with 6 units with the total installed net output of 353 W, using liquid and gaseous fuel.

The current status of the temporary international administration on the territory of Kosovo and Metohija (UNMIK), defined by the Resolution 1244 of the UN Safety Council from year 1999 does not allow the Electric Power Industry of Serbia to use and manage the energy capacities in Kosovo and Metohija as an integral part of the system or to plan further development. Hence, the precise data about the exploitation of these plants since the year 1999 are not available and therefore these plants are not included in this document (figure 2).

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Figure 2. INSTALLED CAPACITIES OF PE ELECTRIC POWER INDUSTRY OF SERBIA

The average age of coal-fired thermal power units (Kosovo and Metohija not included), to 31.12.2008 inclusive, amounts to 29 years and is within the range 1950 years. The average age of coal-fired thermal power plants (Kosovo and Metohija not included) according to the structure of the nominal power until 31.12.2008 amounts to: Installed unit output output less than100 W output 100199 W output 200299 W output 300399 W output 400 W and more Age 50 years 36 years 31 years 20 years 25 years

thermal power plants and combined heat and power plants within the Electric Power Industry of Serbia is also characterized by significant heterogeneity, because the boilers were delivered by 11 manufacturers from seven states, turbines by 12 manufacturers from seven states and generators by 10 manufacturers from eight states. Combined heat and power generation is available in several thermal power plants of the PE Electric Power Industry of Serbia, such as: lignite-fired steam units, after turbine reconstruction at TPP Nikola Tesla (for district heating of Obrenovac) and at TPP Kostolac (for district heating of Pozarevac and Kostolac), gas and liquid-fired steam units (CHP plant Novi Sad, CHP Zrenjanin and CHP Sremska Mitrovica for district heating systems and process steam). The project of the district heating of Belgrade from the TPP Nikola Tesla was started with preparation of the documentation at the beginning of the 1980s. the performance of works was commenced in 1993,

This age and the technological obsolescence of the plant, with regard to the fact that the youngest applied technologies originate from the mid 1980s, are causing high specific fuel consumption. The equipment of the

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however its implementation is suspended at the moment. The Public Enterprise the Electric Power Industry of Serbia has almost entirely applied combined heat and power generation in the power plants which have the consumers of thermal power in their vicinity. The possibility of thermal power generation for the purposes of district heating is also available at TPP Kolubara (for Lazarevac, which has the municipal district heating network) and at TPP Morava (for Svilajnac, which does not have a municipal district heating network). Certain quantity of the process steam is already supplied to the outside consumers from the TPP lubara.

Priority programmes were implemented on the plants which experienced major technical limitations at the end of year 2000 and which were partly shut down or operated with reduced capacities. New investments in the equipment significantly increased their availability in the first line. The most significant procedures performed in thermal power plants are as follows: PP Kolubara 5, TPP Nikola Tesla 1, 2, 3, 4, 5 and 6, PP Nikola Tesla B2, PP Kostolac 1 and 2, PP Kostolac B1 and B2, PP Morava.

tHe current tecHnIcal condItIons of tHermal poWer plants


With the participation of 60.3% in the installed output of generation plants of the Public Enterprise Electric Power Industry of Serbia, the thermal power sector has participated with more than 65% in the total production of electrical power in the year 2005 (coal-fired TPP 64.1% and CHP with 1.1%). Thermal power plant operating indicators for the period 2001 2008 are shown in the Table 2.

tHe most Important actIvItIes In tHe tHermal poWer plants betWeen 20002008
Keeping in mind the importance of the thermal power sector, as well as the unfavorable technical and technological condition of the plant at the end of year 2000, significant investments in major overhauls, rehabilitations and upgrading of thermal power plants have been achieved in the period between 20012008. Table 2. Thermal power plant operating indicators Indicators total generation of electrical power in the power plants of the pe electric power Industry of serbia Generation in coal-fired tpps readiness for operation of tpps Unit GWh GWh %

2001 30,061 18,974 68.5

2003 30,107 20,383 74.4

2005 34,443 22,138 76.9

2007 31,556 23,016 76.9

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The above intensive investments in upgrading the technical condition of units in thermal power plants in the period between 20012008 resulted in operational improvements, reflected in the first line in achieving the best indicators of power plant operation since the year 1992 in the year 2008: equivalent coefficient of forced shut downs in 2000 amounted to 32.3%, and 15.6% in 2005; equivalent coefficient of forced shut downs in 2000 amounted to 32.3%, and 15.6% in 2005; readiness of thermal power plants for operation was increased from 68.5% (2001) to 76.9% (2005); generation in the coal-fired power plants was increased from 18,974 GWh (2001) to 22,138 GWh (2005). Thermal power plants, especially lignite-fired ones, have an adverse environmental effect. At the end of year 2000 in almost all thermal power plants in the Republic of Serbia the emission of solid particles, sulphur and nitrogen oxides exceeded the allowed emission limit values (ELV). In addition, disposal of ash and slag and waste water treatment were not solved in a proper way. The obligations which arise from the local and European legislation impose the performance of significant environmental protection projects in the existing power plants until year 2015 and such projects and activities are necessary for obtaining of integrated license. With this goal numerous activities have been commenced within the Electric Power Industry of Serbia and implementation of the most important projects lies ahead.

projects of reHabIlItatIon and modernIzatIon of tHermal poWer plants WItHIn tHe pe electrIc poWer Industry of serbIa
It can not be expected that the tendency of improving exploitation characteristics of the thermal power plants from the period 20002008 would be continued in the years ahead until 2015, because the rehabilitation activities will be conducted on units which are in better condition than the units which have already been covered by the projects for extending the life time. The achieved level of production and reliability of capacities can not be maintained and improved without further major investments in rehabilitation and modernization of the production capacities. In addition to rationalization of electrical power consumption, increase of the generation of the existing capacities and extension of their life time represent the fastest way of solving the current problems within the energy sector. The actual technical condition of thermal power capacities of the PE Electric Power Industry of Serbia at the end of year 2008 requires continuation of the overhaul works and current maintenance and increase of their scope compared to their usual scope and content, as well as performing of rehabilitation and modernization of capacities,including implementation of the projects related to environmental protection. In spite of the above positive influences of performed unit rehabilitations, as well as expected improvements following the performance of the planned activities, we should not neglect the fact that the average age of thermal power plants is 29 years. Therefore the evaluation of technical condition of capacities within the PE Electric Power Industry of Serbia should consider the fact that this company will still fall behind when compared with the electrical power systems of the developed European countries.

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sHut doWn of plants of tHe electrIc poWer Industry of serbIa


Besides the stated measures which will be performed in order to increase the efficiency of plant operation, it is also planned to shut down the oldest and the most unprofitable steam units of the PE Electric Power Industry of Serbia. Those are TPPs Kolubara 14 (total nominal output 161 MW, available output app. 120 MW), which are 4550 years old and which have been in operation for 255,000 to 330,000 operating hours. These units are operating with the specific consumption of over 16,000 kJ/ kWh, which leads to negative economic, financial and environmental consequences. At the same time, their operation endangers the operating safety and safety of the personnel and equipment. Since it would be nonprofitable to invest further in increasing of operation efficiency and safety level after the year 2012, it is planned to shut down these four units by 2014. The units A1, 4 and 2 will be shut down by 2012.

of electrical power from the existing electrical power sources; capital-intense investments in new power plants and participation of Serbian energy entities in planning and implementation of energy-strategic projects at the level of internal and regional/pan-european market, which would provide new and replacement stand-by capacities of energy sources in due time. With the implementation of respective projects in Serbian energy sector, the complete energy sector of Serbia would achieve the new state of quality by 2015, with regard to the technological and generation performances of the energy systems as wholes, but also with regard to the financial and economical effects in business and development of energy entities in new conditions on domestic and international energy market. A major challenge and chance for the Serbian energy sector is creating of energy market of south-eastern Europe, which is assisted by the European energy companies and EU institutions, but also the countries of this region in their efforts to strengthen their own positions in the common market. Therefore, if we wish to achieve further development, strengthening and reaching the adequate position in the energy market, intensive building of new, up-todate capacities within the energy sector of Serbia is necessary. The implementation of such projects requires longterm and complex preparatory activities, the part of which is related to concretization and implementation of measures foreseen by the Energy Law, which enable market business of all entities which are dealing with energy and creation of favorable ambient for foreign investments in building of new energy facilities in the Republic of Serbia, thus acquiring of partial or complete ownership in the facilities constructed in this way.

projects for constructIon of neW tHermal poWer plants - pe electrIc poWer Industry of serbIa
Plans for construction of new thermal power plants within the Electric Power Industry of Serbia are determined by three basic priorities: introduction of new more efficient and environmentally acceptable technologies, with the purpose of reducing the consumption of primary energy and solving the problems in the area of environmental protection; short-term investments in new electrical power sources with gas technologies (combined gassteam cycle) and combined generation of electrical and thermal power for the conditions of very favorable economic development and possibly unfavorable conditions for generation

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Therefore, stimulating and supporting of strategic initiatives in the area of investment in new energy sources implies very concrete measures and activities that should create conditions providing a satisfying level of investment safety to potential investors (strategic partners), as well as recognizable terrain for the implementation of investments in the energy sector, which are almost always financially intense and sensitive to regulatory changes and the political environment. It is necessary for the Government of the Republic of Serbia to create the conditions which will provide a sufficient level of certainty that the new generation capacities would be exploited under the circumstances which have been foreseen, that is which are foreseeable to the reasonable extent for the complete exploitation lifetime of the plant, built with the investments from the private sector (strategic partners). Depending on the model for the implementation of investments in the energy sector (joint investments, concession, tender), the Government of the Republic of Serbia should take the appropriate actions for stimulating strategic initiatives in this area. Regardless of the model, the Government of the Republic of Serbia shall provide the coordinated approach, activity and promptness of all authorities participating in the process of issuing of different documents (approvals, licenses, opinions etc.), necessary for the performance of activities within the energy sector, in order to enable the application and implementation of any concept for development of market business of energy entities. With regard to different solutions in several system laws and their diverse application to the issues of common investments in the energy sector, it is necessary to find the solution at the state level, by changing or adjusting the regulations or defining the conditions, methods and dynamics for stimulation of investments in the energy sector.

In respect of the above stated and keeping in mind the priorities defined in the Strategy for Energy Sector Development until the year 2015, the Public Enterprise Electric Power Industry of Serbia plans to perform the following activities related to the new thermal power facilities in the Republic of Serbia in the period until 2012: 1. construction of new TPP and CHP using the domestic fuel, which includes: construction of new thermal power plants using Kolubara lignite; construction of new thermal power plants with boilers with fluidized-bed combustion of low heat value lignite; 2. construction of new TPP and CHP using the imported fuel, which includes: reconstruction of CHP plant Novi Sad into combined gas-steam cycle or construction of new gas-steam unit at the same location.

constructIon of neW tHermal poWer plants usInG domestIc fuel


Starting from the reserves of primary energy in the Republic of Serbia (in the situation when it is impossible to plan the use of resources in Kosovo and Metohija), and the fact that the significant part of technically usable and economically feasible hydropotential has already been used, new capacities, which can compensate for the forecasted lack of output and electricity in the near future, can be built using the coal from open pits of Kolubara and Kostolac coal basin. The quantities of coal in this basin are sufficient for the planned development potential and the coal can be used under the economically and environmentally most acceptable conditions in the climate of urgent need for compensation of large energy deficits.

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Taking into consideration the already performed activities and the existing investment-technical documentation, new thermal power capacities can be built until 2015 using the coal from Kolubara basin and later on the coal from Kostolac basin as well. However, it is necessary to commence, i.e. update the previously performed activities related to checking the possibilities of building the plant for electrical power generation which would use coal from other basins and mines in Serbia, with application of old-fashioned and modern technologies of coal combustion.

constructIon of tHermal poWer plants usInG Kolubara lIGnIte


The project of construction of thermal power plants using Kolubara lignite should be underlined as the most important activity. It is characteristic regarding the financial value of the project and its key importance for the energy system of Serbia and the region. Generation of electricity from the new lignitefired thermal power capacity of at least 4,800 GWh annually, in the base load operation, according to the Strategy for the development of the energy sector in the Republic of Serbia until 2015, would provide safety and regularity in the supply of industries and population with electricity without import. The dynamic plan in the area of investment in new energy sources foresees its commissioning in the period 2011/2012.

completIon of constructIon of unIts at tpp Kolubara b 2x350 mW


The decision to construct the TPP Kolubara B, with the capacity 2x350 W, was made in year 1984. At that time it was planned to complete the construction work until 1990. The decisions related to financing of construction were made in accordance with this

deadline. Contracts for supply of equipment were made and the largest part of equipment was supplied. The break-up of former SFRY and introducing of UN sanctions stopped the already started activities on implementation of this project, manufacture and purchasing of equipment, as well as using of the endorsed credit of the World Bank. The progress of construction works was very slow, until they were finally suspended in year 1992 due to lack of funds. In the second half of the 1990s the project was initiated again, however without any significant outcomes. After the democratic changes in the country (year 2000), the question of continuing the construction gained importance again. In 2004 the study was prepared with a breakdown of previous financing and feasibility study for continuing of construction work. This study led to the conclusion that there are technical solutions which enable TPP Kolubara B to achieve up-to-date operating parameters corresponding to units with this output after completion of the construction. This study revealed that more than 300 million euros had been invested in the construction of TPP Kolubara B, however that only the facilities and the equipment in the estimated value of app. 220 million euros were in compliance with the up-to-date technical solutions. Finally, it was estimated that another 550 million euros were necessary for the completion of construction works. This option is burdened with the lower efficiency (at the level of 35%). The benefit of this option is a shorter construction period, because the equipment that was already supplied can be used, as well as facilities and works. The lower level of investments is also a benefit.

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constructIon of state of tHe art neW unIt WItH tHe nomInal output of 700 mW WItH supercrItIcal parameters
This plant is in accordance with the modern concept mostly used for the construction of new units in Europe. It is characterized by high efficiency and compliance with the highest European environmental standards. As a possible location for such plant we have analyzed the site of TPP Nikola Tesla B, and lately also the site of TPP Kolubara B under construction. In the investment-technical documentation for the construction of the third unit of TPP Nikola Tesla B we analyzed the construction of the 744 W unit (net output 686 W), with the net efficiency of app. 40%. Basic investment for this unit is larger than it would be for TPP Kolubara B (870 million euros), but the exploitation costs are lower, hence the analyses show that this investment is justified, which means that all parameters of plant profitability are positive (net current value of the project is positive in the amount of 82.6 million euros; internal rate is 10.15%; payback period is eight years from the commencement of unit operation). Additionally, analyses and expected tendencies of increase of consumption development and of the production capacities potential indicate eligibility of this approach. The following should also be taken into consideration: it is planned to shut down the first 120 MW (nominal output 161 MW) by 2013 (units 14 at TPP Kolubara) due to extremely low efficiency and non-profitable operation, jeopardizing of personnel safety and extremely adverse environmental effect; it is necessary to perform operational reductions and successive shut down of thermal power capacities after 2015 (output level 100 and 200 MW) due to non-competitiveness on the future market, high investments in increasing of

operating safety and fulfilling of environmental requirements; obvious growth of electricity deficit in southeastern Europe and Serbia, which could jeopardize safety of the supply without the new generating capacities (the basic postulate of the current EU guidelines). This approach is subject to the fact that the PE Electric Power Industry of Serbia neither disposes of its own funds, nor has the credit potential and financial potential which would provide the required investment level and this was mainly influenced by the long lasting policy of depreciation of electricity price. On the other hand, a good strategic partnership would provide, besides the financial support, the transfer of knowledge, new technologies and increasing of general business efficiency. Also, the model of privatization through strategic partnership via investment in the basic activity, contributes to preserving of integrity of the PE Electric Power Industry of Serbia and leads to a leader position in the future regional market. Taking into consideration the previous activities it is necessary to conduct a transparent tender procedure during 2009, which would result in a selection of the strategic partner for the implementation of the best of the stated options, which would be followed by the implementation of the respective project.

constructIon of neW tHermal poWer plants and combIned Heat and poWer plants usInG Import fuel
Considering Serbias dependence on energy imports, it is necessary to perform the measures which would lead to more rational and efficient use of import fuels, in the first line of the gas. In this sense the thermal power sector plans the following: implementation of the activities and reconstruction projects which would lead

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to more efficient operation of the existing combined heat and power plants; implementation of the activities which would lead to construction of new thermal power plants or combined heat and power plants, as well as implementation of the activities related to introduction of new up-to-date gas technologies into generation of electricity and heat in industrial companies and district heating systems. It is also necessary to establish full cooperation of these activities with the activities being performed on speeding up the development of gas infrastructure in the Republic of Serbia. Considering the current parity of fuel and energy prices, the Government shall, in order to enable the implementation of the above activities in the Republic of Serbia, establish the system of stimulative and restrictive mechanisms, which would promote an efficient use of the expensive import gas in the first line, as well as other fuels for electricity generation and especially for combined heat and power generation in the respective (cogeneration) plants. Exactly because of all power, economical and environmental advantages which are characteristic for cogeneration it is necessary to create an environment which would enable as follows: stimulating the application of efficient technologies during the use of natural gas as fuel or in case that natural or some synthetic gas has already been used (or even produced) in the basic technology; stimulating the construction of stand-by and new thermal power capacities, in the first line in industries and district heating systems with the application of cogeneration. It is necessary to create the framework in the near future, in accordance with the EU guidelines

and european practice and using the interest of the investors for construction of new cogeneration plants and such framework should include as follows: identification of national potentials for use of high-efficiency cogeneration; determining of national goals (defining and supervision over the implementation); definition of incentive mechanisms (at the national level): assistance during preparation of studies and projects, investment assistance, programme of direct incentive through increased prices for supplied electrical and heat power from cogeneration, as well as exemption, reduction and return of taxes and other fees; definition of the criteria for determining preferential manufacturers; preparation of efficient administrative procedures. In addition to the gas, which will certainly be used the most, other fuels should also be covered.

reconstructIon of tHe combIned Heat and poWer plant novI sad Into combIned Gas-steam cycle
The largest thermal power facility in the Republic of Serbia which uses natural gas or heavy oil as a fuel is the combined heat and power plant (CHP plant) Novi Sad. Its generation cycle is based on steam-turbine technology and it is designed for generation of the base-load thermal power for heating the city of Novi Sad, process steam for the Oil Refinery Novi Sad and electrical power for the electrical power system. The installed thermal capacity of the plant was larger than required at the time of construction, because it was planned to fulfill significantly increased requirements for thermal power and process steam, which were anticipated in the city development plans and Oil Refinery plans. However, the requirements of the city and especially of the oil refinery for thermal power, did not achieve the planned values, so that the CHP

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plant Novi Sad was never operated in the designed regime. Taking into consideration the inappropriate parity of the prices of electricity, thermal power and fuel, as well as high price of natural gas and heavy oil compared to the domestic lignite, the generation price of electrical power from this plant is very high under the current conditions. The reconstruction of the CHP plant Novi Sad into combined plant with gas and steam turbine or construction of new gas-steam unit at the same location should provide competitiveness and profitability of the plant in the conditions of market business and normal parity of fuel and energy prices. Investmenttechnical documentation is under preparation and it will define the optimal technical and economical solution for the system of combined generation of electrical and thermal power and process steam, with application of the state of the art technical solution and fulfillment of all environmental requirements. All of the above should bring to a significant increase of the plant efficiency. In this respect different levels of reconstruction of the existing plants are being considered, such as erection of one or several gas turbines, i.e. construction of new gas-steam plant at the same location in the manner which would provide an optimum use of the existing equipment and infrastructure, increase of electricity generation and fulfillment of requirements of consumers of thermal power and process steam. The new plant should also be flexible with regard to load change and should have the possibility to be started up at great speed, which is very important for functioning of the electrical power system. Furthermore, the additional electrical power capacity in Vojvodina should contribute to the stability of transmission network operation and provide the required reactive power. Participation of a foreign strategic partner of the PE Electric Power Industry of Serbia is planned for

the implementation of this project, according to the same methodology which was applied for the implementation of the project of construction of thermal power plants using Kolubara lignite. The tender procedure for the selection of the strategic partner for the project implementation should be conducted in the year 2009. Thereafter it would be proceeded with the project implementation. The project should be implemented by 2012. Since the final technical solution has not been defined yet, it is not possible to estimate the required funds at the moment. In addition to the completion of the stated works related to the implementation of the project for reconstruction of the CHP plant Novi Sad, the activities on preparation of the documentation should also be commenced in the near future. This documentation should include technical solutions, plant configuration, spatial possibilities, investments, energy and economic efficiency, environmental effects, unit power and dynamics for the implementation of the project for reconstruction of the other two CHP plants using natural gas which are owned by the PE Electric Power Industry of Serbia (Zrenjanin and Sremska Mitrovica). In accordance with the results appropriate decisions shall be made related to the implementation of the project.

HeatInG of belGrade from tHe tHermal poWer plant


The study related to feasibility of gas-fired combined heat and power plant in Novi Beograd is currently under preparation. At the moment it is not possible to estimate the optimal output of the plant and hence the value of the investment, as well as financial-economic parameters of the project.

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envIronment and condItIons


The Public Enterprise Electric Power Industry of Serbia, as a modern company, began with the introduction of ISO 14001 standards (EMS), as a part of its modernization and restructuring process, with the deadline for the implementation and certification by the end of 2009. This is the most obvious way to show the tendency of modernization of its generating capacities to the level of obligations and responsibilities in the area of environmental protection which are stipulated in the EU directives. Furthermore, with the forthcoming investment projects for the construction of two new power plants the Public Enterprise Electric Power Industry of Serbia will be faced with the important activity of a full application of the highest level of technical solutions in order to fulfill the highest standards and norms in the area of environmental protection. Taking care of the nature and its environment and following the proclaimed EU norms and responsibilities, especially the legislation in the area of environmental protection according to the Energy Community Treaty, the Public Enterprise Electric Power Industry of Serbia clearly sends a word to the public and all participants in the electricity market, institutions of the Republic of Serbia, but to the European Union and international community as well, that it is ready to comply with all requirements and face all the challenges imposed by the necessity to protect the environment. Naturally, the Public Enterprise Electric Power Industry of Serbia is fully aware of the importance of its role in the future extensive industrial development of the Republic of Serbia, as well as the great contribution from the Electric Power Industry of Serbia as a leading generator of electricity being expected by the Republic of Serbia and the region as well. At the same time this means that the Electric Power Industry of Serbia expects full cooperation of all relevant institutions of

the Republic of Serbia, but also of the International Community in achieving its strategic goals. From the standpoint of the Public Enterprise Electric Power Industry of Serbia the European Union, the European Commission, the Energy Community Secretariat, Energy Charter, financial institutions, EU funds and other entities, are full partners in the implementation of terms of reference covered by this document. This has been the situation in the past years and it will certainly be so in the future too. The Green Book of the Electric Power Industry of Serbia has a special importance in strengthening of regional connections in the fight against the climate change, which will be fully supported by the Public Enterprise Electric Power Industry of Serbia, in the first place by founding the Regional Centre for monitoring of climate changes. This centre will be located in Belgrade according to the Decision of the International Community and EU. The next important step is establishing the stock exchange for gas emission trade for the SEE region in Belgrade. The Public Enterprise Electric Power Industry of Serbia has expressed its readiness for regional joining by giving the Proposal of the Draft of Balkan Convention on environmental protection in the energy sector, which would be a link between this region and the Alpine Convention on the one hand, and the Carpathian Convention, on the other hand. A full support to the preparation of Balkan Convention has already been provided by the European Commission, DG Tren and DG Environment, but on behalf of all the others by EU commissars for the environmental protection, Mr. Stavros Dimas, and for the energy sector, Mr. Andris Piebalgs. Since the year 2000, along with renewal of capacities and achievement of new production records, the Electric Power Industry of Serbia has managed to complete a number of projects which significantly improve the environmental protection and place

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the Electric Power Industry of Serbia in the leader position in this area in the Republic of Serbia. One of the most significant events in the previous period with multidimensional significance for Serbia and its energy sector, and hence for the Electric Power Industry of Serbia as well, is certainly the enforcement of the Energy Community Treaty. From the political point of view this Contract represents a base factor for the integration of south-eastern Europe region and Serbia into the European Union. With its ratification in the National Assembly of the Republic of Serbia, the Electric Power Industry of Serbia is now under the obligation to apply the EU standards in the area of environmental protection which are related to the energy sector (Acquis communautaire Environment). With its application the energy sector of Serbia has become a part of EU in the area of environmental protection de jure as well. The responsibilities from the Contract promote the idea of reaching the same level of liberalization of electricity market in the Eastern European countries as in the EU in the shortest possible term, which means complete opening for all consumers until the year 2015, with the deadline for application of environmental protection regulations by 2017. With regard to the existing condition and major responsibilities to be fulfilled and plans to be achieved by the PE Electric Power Industry of Serbia, we will need support from the other entities for the forthcoming processes. These entities are the EU (DG Environment and DG Tren), the Ministry of energy and mining, the Ministry of environment and spatial planning, the Ministry of finances, the Environmental Protection Fund and all municipal administrations in which we have our plants. Only with the joint effort of all participants in this process, i.e. synergy, we can achieve the goal which was set in front of the Electric Power Industry of Serbia with the deadline

for execution until the year 2017. Otherwise, not only the Electric Power Industry of Serbia, but Serbia itself will face serious problems. Since the Electric Power Industry of Serbia is the largest company in Serbia and in the Balkans, and given that it affects the whole Serbia by the nature of its technology and its spatial spreading, as well as its connection with the most part of the other economies, it is not difficult to equalize the destiny of the reforms in the area of environmental protection in the Electric Power Industry of Serbia and the destiny of the same reforms in Serbia as a whole. It is believed that 70% of all problems related to the environmental protection are in connection with the energy sector, i.e. the Electric Power Industry of Serbia. It should be emphasized that 30% of all responsibilities of the country in terms of harmonization and approaching the EU are related to the area of environmental protection, which is the third priority of the EU. Considering the fact that the sense and the goal of the state policy of our country is a valid membership in EU, failure to accomplish this goal would cause major problems not only to the Electric Power Industry of Serbia, but also to Serbia itself in the sense of achievement of the set goal. It should also be emphasized that it is important to use experiences of the large European companies in solving environmental issues, having in mind the role of potential financing from EU funds. Cooperation in this matter has been very successful until now and as such it represents the model of full cooperation and feasibility for each implemented project. Through EAR and IPA fund, the EU has invested the direct funds or approved the projects with such funds in the amount of app. 75 million euros for the area of environmental protection in the Electric Power Industry of Serbia until now.

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Legislation

eu leGIslatIon and InternatIonal contracts


The top priority in the forthcoming period is the implementation of the SEE Energy Community Treaty, in short the Energy Community Treaty, which was signed on October 25th 2005 in Athens between the European Community on one side and the countries of south-eastern Europe, the Republic of Serbia included, on the other side. The Contract was enforced on July 1st 2006, since it had been ratified by the European Union and six contracting parties from the region. With ratification of this Contract on July

14th 2006 in the National Assembly and notification of the Energy Community Treaty to the depositor (secretary-general of the European Union Council), its stipulations have become binding for the Republic of Serbia from the 1st of September 2006. Along with the other things, the Energy Community Treaty foresees gradual and full application of cquis Communataire Environment until 2017, which is related to activities of the energy sector. These responsibilities are defined in the Annex II of the Energy Community Treaty and are related to the following:

Implementation of the Directive 2001/80/EC of the European Parliament dated 23 of October 2003 on the limitation of emissions of certain pollutants into the air from large combustion plants and Council Directive 79/409/EEC of 2 April 1979. Implementation of the Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certain public and private projects on the environment, with modifications and amendments from the Council Directive 97/11/EC of 3 March 1997 and the Directive 2003/35/EC of the European Parliament of 26 of May 2003. Implementation of the Article 4 (2) of the Council Directive 79/409/ EEC of 2 April 1979 on the conservation of wild birds. Directive 1999/32/EC of the European Parliament of 26 April 1999 regarding the sulphur content of marine fuels and the amending Directive 93/12/EEC

tHe unIted natIons frameWorK conventIon on clImate cHanGe - unfccc


Climate changes have become one of the most complex and politically most challenging problems in the area of environmental protection. The development of legislation which covers the area of climate changes is under a strong influence of international negotiation process and has a firm foundation in the scientific facts that are published regularly within the framework of the activities of the United Nations Intergovernmental Panel on climate changes. The implementation of the

policy in the area of climate changes has consequences in many areas of economic and social activities. Nowadays we are facing the tendency of increase in emissions of greenhouse gases, which leads us to a long-term goal of establishing the control of risks caused by climate changes. Even a sudden stop of emissions of greenhouse gases would not entirely prevent the influence of climate changes to the ecosystem. The reason thereof is a great thermal inertion of the individual components of the climate system, especially the oceans. The currently

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observed climate changes may originate from an anthropogeneous effect to the climate system, which has lasted since the 19th century. Natural ecosystems and human society are sensitive not only to the magnitude of the climate extremes, but also to the level of climate change. Therefore, it is very important to control the emission of greenhouse gases (GHG) together with the efforts to minimize, through adaptation, the damage already done or the damage which will be done in the near future. The most vulnerable environmental and socioeconomic systems are those which have the greatest sensitivity to climate changes and the smallest capability to adapt. In general, socioeconomic systems are more vulnerable in developing countries, especially in the countries which have weaker economy and institutional organization. The nations living in the drought or semi-arid areas, coastal areas, areas susceptible to flooding and small isle countries are at special risk. In accordance with the aforementioned, we believe that it is of great importance for Serbia to urgently commence the implementation of the UN Framework Convention on Climate Changes, at least in the part related to the basic requirements for the preparation of the inventory of greenhouse gases and reporting on emissions. During the procedure of sequential implementation of the Convention, through preparation of the initial national communication, the whole spectrum of possible solutions will be developed, which could present a good base for the development of concrete projects compatible with the philosophy of sustainable development. We believe that it is realistic to expect that the Governments of developed countries within the Annex II would be interested in such projects, but also the business sectors of these countries, which are very aware of the problem that would be posed in front of us until 2012, i.e. within the first binding period for the reduction of GHG.

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The State Union of Serbia and Montenegro ratified the United Nations Framework Convention on Climate Changes on March 12th 2001 and gained the status of a non-annex country. The ratification of Kyoto Protocol of 25 September 2007 opened the possibility for the implementation of the projects related to the area of energy efficiency and renewable energy sources by application of clean development mechanisms (CDM projects). In this sense it is very important to prepare the initial national communication (part of the document which is related to the measures for the mitigation of consequences of climate changes) and determine the sector strategies in the application of clean development mechanisms (Strategy for the application of clean development mechanisms in the energy sector of the Republic of Serbia), as well as to form the necessary institutions (designated national authority for the approval of CDM projects DNA) and establish the procedures and criteria for the approval of this type of projects. It is also necessary to continue the work on building capacities for the preparation of CDM projects. The Centre for climate changes, which was founded by the decision of the Sixth Ministerial Conference nvironment for urope in Belgrade between 1012 October 2007, under the organization of the UN Economic Commission for Europe (UNECE) and with the support of the EU, could grow into a centre for trading with CO2 emissions for the SEE region, with the head office in Belgrade. Following a decision made by the Government of the Republic of Serbia, the Regional Centre for climate changes was founded in Belgrade, the head office of the Centre was established and material preconditions for its functioning were created. With the development of this Centre the preconditions could be made for its growing into a regional centre for studying of climate changes and trading with emissions for all countries signatories of the SEE Energy Community Treaty. This future status of the Regional Centre has a special economic

significance and it would enable the PE Electric Power Industry of Serbia, as one of the interested parties, to take the role of a regional leader in establishing, development and operation of the Regional Centre for climate changes and trading of CO2 emissions. Following the EU policy promoted in the Green Book of EU in March 2006, as well as other respective documents which define the responsibility related to the reduction of the CO2 emissions by 20% until 2020, which does not impose any direct responsibilities to Serbia as a non-annex country, but entitles Serbia to fully participate as a signatory of the Energy Community Treaty, the PE Electric Power Industry of Serbia, from the position of the leader in generation and distribution of electricity in the SEE region, will fully assist to the affirmation of the operations of the Regional Centre for climate changes in Belgrade until 2012. This implies its cooperation with the institutions of the Republic of Serbia and especially with EU DG ren, DG Environment, Energy Community Secretariat and other authorized institutions and funds. It will also take part in trading with GHG emissions, when this stock exchange opens in Belgrade. The expected level of emission quotes for CO2 could and should be one of the incentives for the economic growth of the country after 2012. The Public Enterprise Electric Power Industry of Serbia is completely ready to take the key role in strategic investment projects in the economy of Serbia, in the sense of introducing the best available techniques (BA), which will unavoidably occur due to the need of highly developed countries of Europe and world to, following the strict responsibilities for the reduction of CO2 emission, move their production programmes to the areas with available quotes for GHG emissions. On 2 March 2004 the EU Council adopted the document with the title Council Conclusions on the further development of the position on a comprehensive post 2012 climate arrangement Contribution to

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the Spring European Council. The wording of the point 10 is as follows: In this context, stresses that the Copenhagen agreement should contain binding quantified emission limitation or reduction commitments for at least all Parties listed in Annex I to the UNFCCC and all current EU Member States, EU candidate countries and potential candidate countries that are not included in Annex I to the UNFCCC; calls upon other non Annex I Parties that are at levels of development and GDP/capita comparable to those of the group of developed countries, notably OECD member countries and candidates for membership thereof, to consider making similar commitments commensurate with their responsibilities, capabilities and national circumstances; proposes that the Copenhagen agreement includes an appropriate level of ambition of measurable, reportable and verifiable mitigation commitments and actions by Parties. The mentioned document of the European Council is in compliance with the preceding document, prepared by the European Commission on 28 January 2009 and addressed to the European Parliament, Council, European Economic and Social Committee and EU Region Committee. This document sets out that in the post-Kyoto agreement the EU accepts to reduce the emissions of greenhouse gases by 20% and that it is ready to accept the reduction of 30% compared to the emissions in year 1990, if this is accepted by the other developed countries. Also, the EU position is to accept the emission reduction of 50% to 80% until 2050, compared to 1990, in order to provide the increase in the average global temperature of less than 20 by the end of this century. The EU expects from the countries that have the status of candidates for membership, as well as from those which are potential candidates, to support the EU position with regard to the post-Kyoto agreement, which is negotiated at the moment, and to accept the change of their status within the framework of Convention and Kyoto Protocol and accept the

responsibility for emission reduction according to their own capacities. The goal is to be in approximately the same position as other countries EU members once they become the member countries, or to achieve in the shortest possible time the emission level in compliance with the responsibilities of the countries signatories of the Annex I of the Convention, i.e. countries signatories of the Annex B of the Kyoto Protocol. Some of the EU representatives stated in their speeches that they would respect the principle of binding, but differentiated approach, which would take into consideration the specific features of each country and its situation, without dealing with the details of application of this principle. It should be especially pointed out that Serbia, as a non-annex country, will encounter the problems of financial, technical and, in view of the existing financial and economic crisis, social nature as well, if it finds itself in the situation to accept the responsibility related to quantified reduction of GHG emission in relatively short term, without having any significant technical and technological support. In this case Serbia would, same as the other countries in the region which are non-annex countries, by losing its status of a developing country, lose the chance to receive financial and technical support, as foreseen by the new agreement for the signatory countries excluded from the Annex. At the same time Serbia, as a potential candidate for the EU membership, conducts a number of measures for harmonization of its legal system and its infrastructural systems, including all sectors which are relevant for the implementation of the Convention and Kyoto Protocol. However, at this moment, due to the lack of the initial communication and a detailed inventory of GHG, it is difficult to choose any certain quantified reduction, but it is necessary to put all possible efforts in preparation of required analyses and reports until the end of 2009, based on which the capacities of Serbia could be evaluated more realistically related to quantified reduction of GHG

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emission which would not jeopardize the economic development of the country. It should be expected that Serbia, which is preparing itself for the EU membership, would be provided with certain flexibility in respect of its responsibilities from the new agreement, taking into consideration the gross national income (GNI) per capita. Therefore, the EU readiness to reconsider the position of each candidate country or the position of potential candidates is necessary in bilateral contacts. It should be noted that Serbia has not prepared a detailed inventory of GHG, but it can be stated with certainty that it manufactured app. 50-55 million tons of GHG annually in the base year 1990. If the 10%, i.e. 20% of reduction for the period after 2012 was accepted, this would mean that Serbia would have to reduce the emission for app. 5.5 to 11 million tons annually. Despite of a certain reserve compared to the emissions from 1990, which was a result of drop of economic activities compared with that year, the reduction of more than 10% would be hardly feasible, especially in view of the fact that two new capacities, 750 MW each, or one, because one similar existing capacity would be shut down after commissioning of new plants, would generate the additional 7.5 million tons of 2 annually. In this sense it is necessary to prepare the first initial national communication as soon as possible, which would include the precise inventory of GHG in the base year 1990, as well as the current inventory, and to prepare the plan for reduction (mitigation) of emissions and for adaptation to climate changes. Without the mentioned documents and analyses, the position of Serbia in the EU negotiations will be neither realistic nor equal. Moreover, it is possible that the solutions which could slow down or even jeopardize its total development for a longer period would be imposed on Serbia.

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Kyoto protocol and tHe best practIces In tHe enerGy sector


With regard to the energy sector in Serbia, i.e. the Public Enterprise Electric Power Industry of Serbia, the following best practices can be identified for programme politics and measures for the mitigation of climate changes: Promotion of energy efficiency (supply and using of energy); Improvement of energy safety and diversity of sources; Reforms of the energy sector (privatization and competitiveness); Development of efficient use of resources (through green taxes).

economIc benefIts and ImplIcatIons for tHe electrIc poWer Industry of serbIa folloWInG tHe ratIfIcatIon of tHe Kyoto protocol
One of the biggest economic benefits for the Electric Power Industry of Serbia related to the implementation of the Kyoto Protocol is the development of clean development mechanisms. The development programmes of the Public Enterprise Electric Power Industry of Serbia represent an extraordinary potential for the project of clean development mechanisms, which are as follows: Restructuring and modernization of the Electric Power Industry of Serbia and local district heating stations; Modernization of the construction and infrastructure of the communal sector; Modernization of waste management; Investment in smaller hydroelectric power plants.

The implementation of the projects with clean development mechanisms within the Electric Power Industry of Serbia offers different possibilities for the national economy. It can: Attract the foreign investments in the Electric Power Industry of Serbia for projects which encourage transfer to more prosperous economy which relies less on the fossil fuel energy; Encourage the private and the public sector to participate; Promote the technological transfer (for instance, replacement of old and inefficient technology for energy generation from fossil fuels with less polluting technology, creating of new industry with sustainable technology in the sense of environmental protection); Help the Electric Power Industry of Serbia in defining investment priorities which are related to the sustainable development goals; Help creating new highly skilled working positions. Therefore, the following best practices can be identified within the Electric Power Industry of Serbia for programme politics and measures for the mitigation of climate changes: Promotion of energy efficiency (supply and use of energy); Improvement of energy safety and diversity of sources; Reforms of the energy sector (competitiveness); Development of efficient use of resources (through green taxes); Recommendations for maintenance and modification of valid laws and enacting of new relevant laws.

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The process of harmonization of local legislation with the EU requirements in the area of environmental protection has already been started in the Republic of Serbia and it is conducted without any problems. The implementation of the Kyoto Protocol which is already part of Acquis Communautaire, is one of the key elements of the EU programme politics and laws in the area of environmental protection, which represents a good model for a proper implementation of such an agreement for the Electric Power Industry of Serbia. This harmonization is also referred to in the Law on environmental protection, as well as in the Environmental Law, both identifying the basic principles and goals of the environmental protection in the Republic of Serbia. With reference to the waste politics, Serbia is lacking a comprehensive and integrated approach in waste management. Moreover, the more sustainable system of ash disposals in Serbia should be propagated, especially with regard to the possibility to develop a system which would use renewable energy sources from the ash disposals. This should represent an important basis for projects with clean development mechanisms (CDM).

In accordance with the above mentioned the basic recommendations for the waste sector could be summarized as follows: 1. preparation and application of strategies for waste management at the level of the Electric Power Industry of Serbia; 2. propagation of recycling and reusing of waste; 3. reorganization of waste collection, transportation and storage, with creation of a modern disposal system; 4. propagation of collection and using of gases from the disposals for generation of heat and electricity; 5. drafting of specific internal regulations on hazardous waste at the level of the Electric Power Industry of Serbia. Rough estimations reveal that the level of investment in greenfield and brownfield projects could be approximately three billion euros on an annual basis in the period 20112015. This is an additional motive to start the operations of the Regional Centre for climate changes in Belgrade as soon as possible. Other international contracts relevant for the area of environmental protection are stated in the Annex I of this document.

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Environmental legislation of the Republic of Serbia

In the Republic of Serbia, with the EU regulation in the area of environmental protection (see Annex I), approximately twenty laws have been harmonized, among others the Law on integrated pollution prevention and control (IPCC), which opens the possibility of obtaining an integrated license (license for operation) with the deadline until the year 2015 16 laws and international Contracts were ratified in the National Assembly during the year 2009. It is necessary, however, to mention that when it comes to waters, there is a double regulation in the Republic of Serbia at the moment: Law on Waters, with obsolete solutions and the EU Water Framework Directive (law being applied within the framework of ratified Danube River Protection Convention on Sustainable Use of the River Danube, as well as within the Sava River Basin Commission). This duality causes significant problems and slows down the process of harmonization with the EU in this area. It should also be reminded that the Government adopted the Water Management Act in 2002, which was in many ways superseded, especially regarding the concept and methodology and therefore, in addition to harmonization of the law, it is also necessary to revise this document. Despite of the efforts for normative harmonization, the largest number of laws within the area of

environmental protection hasnt been harmonized with the EU directives yet. The new legal framework for the environmental protection was set in 2004 by enacting the Law on environmental protection (which foresees defining of the strategy for sustainable use of natural resources and goods, as well as the national programme for the environmental protection), Law on strategic evaluation of environmental influences, Law n evaluation of environmental influences and Law on integrated pollution prevention and control. The national environmental protection programme (NEPP) is to be adopted and will be followed by the action plans. So far 64 international contracts in the area of environmental protection have been ratified (ratifications taken over as a responsibility of the successor country) and ratification of other international contracts is under preparation. With regard to the actual condition and transition of the national legislation in terms of harmonization and joining the EU, the Public Enterprise Electric Power Industry of Serbia made the decision in 2004 to completely comply with all relevant EU standards in the area of environmental protection. Breakdown of the valid laws and all relevant legal acts is given in the Annex I of this document.

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ENVIRONMENTAL PROTECTION CONDITION IN THE ELECTRIC POWER INDUSTRY OF SERBIA IN THE PERIOD 20012007

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The importance of introducing the state of the art technologies in electricity generation, especially in the thermal power plants, is emphasized in the Environmental Protection Programme of the Republic of Serbia. In this context, the introduction of combined cycle can represent a step forward in promoting cleaner technologies. Moreover, in accordance with the Annex 2 of the Energy Charter Treaty, the schedule has been established for the purposes of harmonization of the national legislation with the EU Acquis Communautaire. Based on the aforementioned, the basic recommendations to Serbia in the energy sector could be summarized as follows: Promotion of energy efficiency; Development and increase in the share of sustainable energy sources in the total energy balance; Introduction of combined heat and power generation (CHP); Monitoring of fuel prices in order to exclude subventions which could jeopardize competitiveness and impose the forms of green tax. The largest problems in the area of environmental protection in the Republic of Serbia are caused by air pollution, water pollution, loss of water resources and inadequate practice in waste management. The largest percentage of the total environmental protection costs is incurred by air pollution (55% of the total costs), water pollution (22% of the total costs) and waste management (11% of the total costs). The air quality in the Republic of Serbia is mainly determined by the emissions of S2, Nx, C, particulate matter and other pollutants which originate from thermal power plants (use of lignite and poor precipitation) and industrial plants. Air quality is especially aggravated during the weather conditions without wind and during the heating season. The

Republic of Serbia began to integrate the environmental protection policy into the policies of the other sectors by signing and ratification of the Energy Community Treaty in 2005. The existing regulations related to the emission and immission are harmonized with the EU regulations; however the incomplete monitoring contributes to creating an unrealistic picture about the level of air pollution in Serbia. Unfortunately, plants for treatment and storage of hazardous waste are not available. Hazardous waste is temporarily disposed in inadequate storages, some of which are several decades old. Approximately 5.5 million tons of fly ash and slag from the thermal power plants are disposed in inadequate locations. Since 2000, important reform goals in this area have been achieved with international support and assistance. The largest number of the projects was aimed at strengthening the human, material and technical capacities in the area of environmental protection and some of the projects were directed to control and reduction of pollution. In addition to the stated regulative reforms it is necessary to commence activities on reducing the level of pollution of soil and surface and ground water, in the first line in the energy sector. Therefore, funds and investments should be directed to endangered locations and priority areas, such as air pollution from the thermal power plants, waste treatment etc. These activities should contribute to reaching mid-term goals in the following: System for financing of environmental protection, Energy sector, Mining sector, Air protection and climate change control, Protection of water and water resources, Waste management, Control of non-ionizing radiation.

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With regard to the implementation of environmental protection programmes within the Public Enterprise Electric Power Industry of Serbia, we would like to mention a very successful cooperation between this company and the Environmental Protection Fund of the Republic of Serbia in solving and implementation of projects in the area of environmental protection in the Electric Power Industry of Serbia. Till now the direct funds invested in different projects for the environmental protection through this Fund amounted to 12 million euros. Since the year 2002 the pollution has been significantly reduced, especially in Obrenovac, where the emission of particulate matter has been reduced by 84% compared to the emission in 2002. At TPP Kostolac A, which is located in the city, this emission was reduced by 54%, which has brought this pollution in compliance with the level of 50 mg/Nm3 stated in the European standards. At TPP Kostolac B the pollution will be reduced during construction of the desulphurization system in the period 2008 2010/11 (investment value is 125 million euros). Activities were performed on the replacement of ash and slag disposal system as well. The construction of such system has already started at the TPP Nikola Tesla B in Obrenovac. The respective Contract has been signed in Kostolac and funds have already been provided. The implementation of these projects should commence soon at the TPP Nikola Tesla and TPP Kolubara (unit 5). The value of these projects amounts to 110 million euros. By 2011 it is planned to complete the reconstruction of electrostatic precipitators in the thermal power plants within the Public Enterprise Electric Power Industry of Serbia. It will be necessary to invest additional 37.5 million euros for this, besides the already invested amount of 41 million euros. By 2015 it is planned to complete denitrification of flue gases, which requires an investment of app. 83.5 million euros. The activities will be performed successively, in accordance with the overhaul schedules of thermal power plants.

In addition to the aforementioned, we will be faced with comprehensive works related to waste management, recultivation of ash disposals and soil on coal pits, elimination of PCB transformer oils and monitoring of emissions and immissions. A particularly complex problem for the Electric Power Industry of Serbia and the wider social community as well is the question of ash and slag disposal and their use as secondary raw material in cement industry, building of roads and civil engineering in the manner already applied in the EU countries. There is approximately 200,000,000 tons of ash and slag at ash and slag disposals and this quantity is annually increasing by the additional 6,000,000 tons. The use of ash as secondary raw material enables to solve the major environmental pollution issue and preserve the soil in the vicinity of rivers from the complete devastation (losing of quality), as well as gravel and sand. The same applies to the flue gas desulphurization product gypsum, which will be produced in the amount of approximately one million tons annually.

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Some of the indicators of the environmental condition in the PE Electric Power Industry of Serbia

coal GeneratIon
Within the PE Electric Power Industry of Serbia coal is generated in: EA MB Kolubara, EA PPs-OPMs Table 3 COAL GENERATION IN 2008

Kostolac and PE OPMs Kosovo. The quantities of generated raw and dry coal, except for PE OPMs Kosovo, are given in table 3.

Coal generation (t) Open pit mine Planned DP Kolubara Open pit mines field b field d tamnava east field veliki crljeni tamnava West field Total (raw coal*) dp Kolubara processing (dried coal) DP Kostolac - Open pit mines Klenovnik cirikovac drmno Total OPEN PIT MINES OF PE ELECTRIC POWER INDUSTRY OF SERBIA Total 120,000 360,000 7,103,000 7,583,000 36,930,000 17,820 523,364 6,826,334 7,367,518 37,951,494 15 145 96 97 103 With dust Without dust 990,000 14,031,000 5,317000 0 9,009,000 29,347,000 549,000 506,000 1,091,320 14,069,026 5,029,341 0 10,394,289 30,583,976 602,331 567,050 115 104 110 112 110 100 95 Achieved %

Removed soil layer from the top of the coal layer in open pits (m3 of the solid material) Planned Achieved %

3,300,000 34,000,000 5,000,000 1,000,000 16,000,000 59,300,000

2,981,897 39,590,875 7,998,299 1,923,670 24,672,871 77,167,612

90 116 160 192 154 130

500,000 2,100,000 24,400,000 27,000,000 86,300,000

328,359 2,274,569 27,476,701 30,079,629 107,247,241

66 108 113 111 124

* The total quantity of raw coal a part of which is separated for production of dried coal

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electrIcIty GeneratIon
Electricity is generated in Thermal Power Plants EA TPPs Nikola Tesla, EA PPs-OPMs Kostolac, EA Pannonian CHP Plants, PE OPMs Kosovo and in Table 4 ELECTRICAL POWER GENERATION IN 2008 Facility EA TPPs Nikola Tesla pp nikola tesla a pp nikola tesla b pp Kolubara a pp morava Total TPPs-OPMs Kostolac pp Kostolac a pp Kostolac b Total pannonian cHp plants cHp novi sad cHp zrenjanin cHp sremska mitrovica Total Total PP and CHP Hydroelectric power plants ea djerdap Hpps ea drinsko-limske Hpps Total HPPs PE ELECTRIC POWER INDUSTRY OF SERBIA Total a1 a2 b1 b2 a1 - a2 a3 - a5 a6 b1 - b2 a1 - a4 a5 a Unit

hydroelectric power plants EA Djerdap HPPs, EA Drinsko-Limske hydroelectric power plants. The data related to electrical power generation, PE OPMs Kosovo excluded, are given in table 4.

Electrical power in GWh generator 2 661 6 753 1 111 8 846 503 676 681 21 231 620 1 432 1 572 1 758 5 382 293 109 4 406 27 019 7 224 2 857 10 081 37 100 net 2 467 6 210 1 003 8 377 473 618 636 19 784 552 1 314 1 423 1 589 4 878 262 101 4 367 25 029 7 187 2 824 10 011 35 040

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Programmes and projects of thermal power plants in the area of environmental protection

According to the package of environmental protection laws which were enacted at the end of 2004, the PE Electric Power Industry of Serbia must bring the operation of its facilities in compliance with the stipulations of the Law on integrated prevention pollution and control by 2015. This means that according to the national regulations, which are harmonized with the EU regulations, state of the art protection measures must be applied in the new facilities, as well as in the facilities being overhauled, more precisely flue gas desulphurization plants and high efficiency electrostatic precipitators must be installed. The measures for reduction of emission of nitrogen oxides shall also be applied, the plant for waste water treatment shall be installed and new environmentally favorable solutions for ash transport and disposal shall be introduced. It is planned to invest app. 1.2 billion euros in the PE Electric Power Industry of Serbia until 2015 for

environmental protection projects, and the largest part of investments will be allocated to thermal power plants and combined heat and power plants. It should be kept in mind that the implementation of these projects provides fulfillment of legal obligations, which without any doubt represents a significant contribution to the global environmental protection in Serbia. However, the fact is that the implementation of these projects will not lead to an increase in electrical power generation, but on the contrary to its reduction (unavailability of the plants during performance of works, increase of auxiliary consumption during exploitation, in the first line due to operation of the flue gas desulphurization plant) and increasing in costs for electricity generation. It is planned to perform the following activities in thermal power plants and combined heat and power plants during the period 20072015.

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For air pollution reduction: - Installation of continuous monitoring equipment, reduction of emission/imission and improvement of air quality; - Reconstruction of electrostatic precipitators in accordance with the EU norms (ELV = 50 mg/m3 of particulate matter) on units under rehabilitation; - Application of primary measures for reduction of nitrogen oxide concentration in flue gases in accordance with the EU norms (ELV = 200 mg/m3 of nitrogen oxides) on units being overhauled; - Installation of flue gas desulphurization plant at TPP in accordance with the EU norms (ELV = 400 mg/m3 of sulphur oxides); - Monitoring of activities on improvement of generation efficiency (reduction of auxiliary consumption) from the aspect of environmental protection; - Supporting of the programme for district heating from thermal power plants from the aspect of environmental protection; - Improvement of the existing and introduction of new technologies for ash and slag transport and disposal (mixing of ash and water in the ratio 1:1), as well as replacement of the existing systems with the new systems for ash transport and disposal; - Recultivation of ash disposals in accordance with the special programme; - Compliance with all environmental protection norms during construction of new facilities and units.

For water protection: - Reduction of quantity of waste and oily waters and their treatment; - Control of discharged water quality and monitoring of its influence on the recipients; - Introduction of new technologies for ash and slag transport and disposal which minimize the adverse effect to water pollution (surface and ground water); - Fabrication of water curtains of wells in the vicinity of the disposals for protection of ground water and surrounding soil; For the total effect: - Economic valorization of ash and slag use as secondary raw material in the cement industry, road construction etc.; - Project of introducing the S (Environment Management System) and environmental protection management. The estimation of necessary funds for harmonization of operation of the units within the thermal power plants of the PE Electric Power Industry of Serbia with the requirements of the European Union regulations in the area of environmental protection is given in Annex I. Table 5 shows a breakdown of estimated emitted quantity of hazardous substances as a total for all thermal power plants within the PE Electric Power Industry of Serbia at the annual level (6,000 hours of operation), as well as the quantities after modernization which would reduce the emission of hazardous substances on all units to a level allowed by the EU regulations.

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Table 5. Emissions from the plants of the PE Electric Power Industry of Serbia Total emission from TPPs within (t/year) Type of emission Without performed works particulate s2 nx 66,900 360,440 43,200 After performed works 5,850 40,720 16,350

High nitrogen oxide emissions (up to 500 mg/m3 on some units, above the stipulated level on all units) require the application of primary measures for reduction of NOx emission from TPPs within the PE Electric Power Industry of Serbia and bringing into compliance with stipulated limits (ELV = 200 mg/m3). A higher content of sulphur in lignite from Kostolac coal basin (app. 1.30%) compared to the coal from Kolubara basin (0.45%) has led to a decision to build the first flue gas desulphurization plant at the TPP Kostolac B. Works will be performed in the period 20092011, under the assumption that all necessary documentation has been p rovided (preparation of investment-technical documentation has already started). After that, flue gas desulphurization plant will be built at the TPP Nikola Tesla B in the period from 20102013, then at TPP Nikola Tesla 5 and 6 in the period from 20112013, and TPP Nikola Tesla 3 and 4 from 20122014. Regarding the flue gas desulphurization plants on other units of thermal power plants within the PE Electric Power Industry of Serbia (TPP Nikola Tesla 1 and 2, PP Kolubara 5, PP Kostolac 1 and 2 and TPP Morava), a decision on their compliance with the legal requirements shall be made depending on their planned operation and use in the future.

Among the measures for reducing of the adverse environmental effect of thermal power plants the projects for reconstruction of the ash and slag transport and disposal system by application of improved technology should be mentioned (thick slurry with water and ash ratio 1:1). For the TPP Kostolac B replacement of the ash and slag transport and disposal system (thick slurry 1:1) was contracted in 2006, with the total value of 21.4 million euros, financed from EBRD I credit. This project is currently under implementation. The replacement of ash and slag transport system (thick slurry 1:1) for the TPP Nikola Tesla B is financed from the grant of the European Agency for Reconstruction (EAR), with the value of 27.5 million euros. This project is under implementation at the moment as well. The replacement of ash and slag transport system with the new system (thick slurry 1:1) at TPP Kostolac will be completed by the end of 2009 and will be financed from KfW IV credit, with the value of 18 million euros. The replacement of ash and slag transport system at TPP Nikola Tesla should be completed until 2011 (investment documentation under preparation). Required funds amount to 40 million euros, however the source of financing hasnt been defined yet.

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Activities already performed on environmental protection projects in thermal power plants of the Electric Power Industry of Serbia in the period 2003 2007

Solving of the current problems in the area of environmental protection in thermal power sector of the PE Electric Power Industry of Serbia has been divided into four basic groups of projects: project I project II project III project Iv reconstruction or replacement of the existing electrostatic precipitators on tpp units primary measures for reduction of nox emissions from tpp units flue gas desulphurization on tpp units (fGd) reconstruction of the ash and slag transport and disposal system introduction of new technology

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Implemented measures for environmental protection (air) in the period 20042008

Project I Thermal Power Plant pp nikola tesla - unit 5 pp nikola tesla - unit 2 pp nikola tesla - unit 1 pp nikola tesla - unit 4 pp Kolubara - unit 5 pp Kostolac - unit 2 pp Kostolac - unit 1 Total

Reconstruction or replacement of the existing electrostatic precipitators on TPP units Beginning of implementation 2004 2005 2006 2007 2008 2006 2005 Funds in 3,700,000 3,500,000 5,000,000 6,000,000 5,100,000 5,400,000 2,500,000 31,200,000 Reduction of the annual emission of PM into air: 88% total emission N and B and 54% total emission TPPs Kostolac and B; Reduction of air pollution in the vicinity of Obrenovac, Kostolac and surrounding settlements. Source of financing electric power Industry of serbia electric power Industry of serbia polish credit electric power Industry of serbia and environmental fund of the republic of serbia electric power Industry of serbia and environmental fund of the republic of serbia electric power Industry of serbia and environmental fund of the republic of serbia ear grant electric power Industry of serbia

Achieved and expected effects of implemented measures for air protection: Fulfillment of EU legal regulations related to reduction of particulate matter (PM) emission (ELV = 50 mg/m3); Project IV Thermal Power Plant pp nikola tesla b pp Kostolac b pp Kostolac pp Kolubara Total These projects are being implemented at the moment and their completion is expected by the end of 2009.

Reconstruction of the ash and slag transport and disposal system introduction of new technology Beginning of implementation / Completion of implementation 2006/2009 2007/2009 2009/2011 2008/2009 Funds in 30,000,000 23,500,000 13,000,000 15,000, 000 81,500,000 Expected effects: Water protection and air protection. Source of financing ear grant electric power Industry of serbia ebrd credit electric power Industry of serbia KfW credit environmental fund of the republic of serbia and electric power Industry of serbia

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Introduction of Environmental Management System (EMS) ISO 14001 in the Electric Power Industry of Serbia

The Public Enterprise Electric Power Industry of Serbia has commenced, in cooperation with the European Agency for Reconstruction (EAR), the introduction of Environmental Management System (EMS) ISO 14001. So far EMS has been introduced and certified at EA TPPs Nikola Tesla, EA Djerdap HPPs, EA Pannonian CHP Plants and EA Elektrosrbija. It is expected that certification will be completed at EA MB Kolubara, EA PPs-OPMs Kostolac, EA Elektrovojvodina, EA Elektrodistribucija Beograd and EA DrinskoLimske hydroelectric power plants by the end of 2009.

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ENVIRONMENTAL PROTECTION CONDITION IN THE ELECTRIC POWER INDUSTRY OF SERBIA IN 2008 (THERMAL ENERGY SECTOR)

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Emission of hazardous substances from the thermal power plants of the PE Electric Power Industry of Serbia

Table 6 shows the data on the total quantity of hazardous substances in each of the economic associations, with the exception of the PE TPPs Kosovo. Table 6 Hazardous substances quantities Thermal power plants ea tpps nikola tesla ea tpps - opms Kostolac ea pannonian cHp plants TOTAL t / year PM 15 306 8 263 662 24 231 S2 153 916 108 960 1 111 263 987 NOx 40 638 17 362 30 58 030 CO2 x 103 23 018 5 748 353 29 119

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ECONOMIC ASSOCIATION TPPs NIKOLA TESLA

The Economic Association Thermal Power Plants Nikola Tesla in Obrenovac consists of the following thermal power plants: PP Nikola Tesla , PP Nikola Tesla B, PP Kolubara , TPP Kolubara B - under construction, PP Morava.

During the year 2008 periodical measurements of emission of hazardous substances were performed on the electrostatic precipitators of all TPP units at Nikola Tesla A (unit 4 excluded), TPP Nikola Tesla B, TPP Kolubara and TPP Morava. The table 7 shows the breakdown of emission measurement results for all TPP units separately. By comparing the measurement results with the local and EU legislation on the emission limit values (ELV) we came to the following conclusions: Emission of S2 on all TPP units is above the ELV of the local and EU legislation; Emission of CO is within the range of ELV of the local legislation Emission of particulate matter is significantly above the ELV of the local and EU legislation, except for the units A4 and 5 at the TPP Nikola Tesla ; Emission of NOx is within the range of ELV of the local legislation, except for the units 2, 4, 5 at the TPP Nikola Tesla , unit B1 at the TPP Nikola Tesla B, unit 5 at the TPP Kolubara the TPP Morava unit.

monItorInG and envIronmental Impact Air brInGInG tHe electrostatIc precIpItator operatIon Into complIance WItH tHe requIrements of tHe eu reGulatIons
After completion of the reconstruction works, the electrostatic precipitators of the units 1, 2, 4 and 5 of the TPP Nikola Tesla are compliant with the requirements of the EU regulations for reduction of particulate matter (PM) emission. Bringing of unit A3 and A6 (TPP Nikola Tesla ), unit B1 and B2 (TPP Nikola Tesla B), unit A5 (TPP Kolubara ) and unit A (TPP Morava) electrostatic precipitators operation into compliance with the requirements of the EU regulations related to reducing of particulate matter emission has been scheduled for the period 2009-2010.

perIodIcal measurements of emIssIon of Hazardous substances


The characteristics of the emissions from the stack are given separately for each TPP on the basis of the results of measurements performed by an authorized institution in accordance with the Programme of measurements for periodical testing of hazardous substances emission into the atmosphere.

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Table 7 EA TPPs NIKOLA TESLA Emission of hazardous substances-periodical measurements Part of the Association / facility Units (mg/m3) s2 nox co particulate matter Part of the Association / facility Units (mg/m3) s2 nox co particulate matter 1898 - 2582 428 - 519 43 - 62 211 - 1893 1450 800 250 100 1700 -2000 600 100 2924 485 51 425 2082 583 70 484 650 450 250 50 400 500 50 1-A4 2185 407 43 276 1407 514 64 109 1546 399 140 183 1603 464 113 48 2455 472 79 41 1898 327 41 157 1360 508 39 54 1504 443 33 156 PP Morava ELV ELV2 A5 ELV1 ELV2 650 450 250 50 400 500 50 1 2 PP Nikola Tesla 3 4 5 6 TPP Nikola Tesla B B1 B2 ELV ELV1 ELV2

PP Kolubara ELV ELV1

1 Regulations on emission limit values, methods and timeframe for measuring and data noting (Official Gazette of RS, No. 30/97). 2 Directive 2001/80/EC - on the limitation of emissions of certain pollutants into the air from large combustion plants.

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It is obvious that the concentrations of particulate matter from the reconstructed electrostatic precipitators of the units A1 and A2 were above the guarantee values of 50 mg/m3 during 2008, when the measurements were performed. The biggest deviations were recorded on the unit A1 electrostatic precipitator and this can be brought in connection with the high flue gas temperatures and increased quantity of flue gas. All parameters affecting the ESP operation efficiency shall be tested in the forthcoming period, in order to take the appropriate steps and enable their operation within the designed values. During design and construction works of the TPP Nikola Tesla A and B units, the measures for reduction of sulphur oxide emissions were not performed, hence the concentration of sulphur dioxide in the flue gas is significantly exceeding the emission limit values (ELV) allowed in the local and EU legislation. In order to reduce the concentration of sulphur oxide emission to the level of 400 mg/m3 in accordance with the Directive 2001/80/EC, it has been planned to install flue gas desulphurization plants by 2015. Additionally, the measures for reduction of nitrogen oxide emission or even the nitrogen oxide concentration in the flue gas havent been performed, hence the concentration of nitrogen oxides in the flue gas significantly exceeds the emission limit values (ELV). In order to reduce the concentration of nitrogen oxide emission to the level of 200 mg/m3, it has been planned to introduce the primary measures for reduction of emissions on the units 3 - 6 of the TPP Nikola Tesla and the units of the TPP Nikola Tesla B by 2015.

Gazette of RS, No. 30/97), the measuring equipment has been installed during 2009 on the following units: unit 6 of the TPP Nikola Tesla measurement of SO2, NOx, CO, O2, and together with the measuring equipment installed on the units: units 3 and 4 of the TPP Nikola Tesla measurement of SO2, NOx, CO, O2, units 1 and 2 of the TPP Nikola Tesla measurement of particulate matter, unit 5 of the TPP Nikola Tesla measurement of particulate matter and gases SO2, NOx, CO, O2 this should cover the measurement of emission of the above hazardous substances in the flue gases of this TPP. The project preparation has been commenced: basic design for the installation of the equipment for continuous emission monitoring of hazardous substances, with the analysis of options for selection of sample spots at the TPP Nikola Tesla B, PP Kolubara - unit 5 and TPP Morava. According to this project it is necessary to perform procurement, installation and commissioning of the equipment for continuous measurement of emission of S2, Nx, C, 2 and particulate matter into the atmosphere on units B1 and B2 of the TPP Nikola Tesla B, PP Kolubara - unit 5. The procedure for procurement of the above equipment has already been started for the TPP Morava. In the future period it is necessary to do as follows: amend or correct the software programme for statistical processing of the data related to continuous measurements of emission of S2, Nx (N2), C and particulate matter, in order to exclude the invalid data from the statistical processing during calculation of mean values;

contInuous monItorInG of emIssIons of Hazardous substances


In accordance with the requirements of the Regulations on the emission limit values, methods and timeframe for measuring and data noting (Official 56

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procure and install the rest of the necessary equipment for continuous measurement of gases and particulate matter at the TPP Nikola Tesla : ) measurement of emission of gases S2, Nx,C, 2 on the units 1 and 2, b) measurement of particulate matter on units 3, 4 and 6, which will enable continuous measurement of emissions of hazardous substances into the atmosphere on all units of the TPP Nikola Tesla .

Procurement of the measuring equipment was started during 2008 and this equipment will be installed in accordance with the solutions given in the Design.

IntroductIon of tHe InteGral system for contInuous monItorInG of tHe Impact of tHe tpp nIKola tesla on tHe aIr qualIty In obrenovac and surroundInG settlements
The integral system for continuous monitoring of the impact of the TPP Nikola Tesla on the air quality in Obrenovac and surrounding settlements is in the first phase of the trial run operation and that includes monitoring of the pollution with solid particles. At the same time, training of the operating personnel has been conducted. The problems related to the measuring equipment operation, caused by power supply failure, are being remedied at the moment. This project enables the application of the Gaussian distribution model, which monitors the transport of solid particles in space and time. The integral system will enable systematic monitoring of TENT impact on the air quality (pollution with particles), as well as objective and timely information to the public about the air quality in Obrenovac and surrounding

IntroducInG of acquIsItIon system for contInuous monItorInG of operatIon of electrostatIc precIpItator sectIons at tHe tpp Kolubara and applIcatIon of tHe obtaIned data
The Basic Design and the General Design for the monitoring system for electrostatic precipitator operation and measurement of outside air temperature and wind direction and speed at the TPP Kolubara were prepared in the year 2006, in order to reduce the emissions of electrostatic precipitator ash particles into the environment through the stack of the TPP Kolubara.

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settlements, which is one of the preconditions for taking necessary protective measures.

emIssIon of Hazardous substances Into tHe aIr


Table 8 gives the breakdown of annual emissions of particles, SO2, NOx, CO CO2.

Table 8 EA TPPs NIKOLA TESLA Emission of hazardous substances at annual level Part of TPP / Plant PP Nikola Tesla unit 1 unit 2 unit 3 unit 4 unit 5 unit 6 total PP Nikola Tesla B unit b1 unit b2 total PP Kolubara unit 1 unit 2 unit 3 unit 4 unit 5 TPP Kolubara B under construction total PP Morava unit 1 total TOTAL t/year Particles 1 760 521 1 615 528 334 669 5 427 1 009 2 564 3 574 221 1 510 292 1 438 1 409 4 870 1 436 1 436 15 306 SO2 13 971 6 824 13 673 12 272 26 865 8 103 81 707 25 351 24 759 50 110 2 338 1 408 557 1 970 9 578 15 851 6 248 6 248 153 916 NOx 2 605 2 478 3 529 3 549 5 182 1 395 18 738 9 485 7 777 17 263 531 239 145 396 1 585 2 896 1 742 1 742 40 638 CO2 x 103 1 535 1 391 2 323 2 640 2 396 1 197 11 482 4 956 4 258 9 214 791

838 1 629 694 694 23 018

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WAter
All units have the flow cooling system, except for the TPP Kolubara , which uses recirculating cooling system (towers). The Thermal Power Plants Nikola Tesla and B use the water from the river Sava for cooling. Waste waters are discharged into the Sava River and they do not disturb the recipient class II. The Thermal Power Plant Kolubara has cooling towers as cooling system and uses the water from the Kolubara River for the preparation of technical water. Table 9 EA TPPs NIKOLA TESLA Water quantities Water intake Part of TPP / Plant Used quantities m3 /year 103 Surface pp nikola tesla 1 005 034 pp nikola tesla b 1 055 858 pp Kolubara 5 840 tpp Kolubara b - under construction pp morava 88 145 Total 2 154 877 Ground* 879 479 Allowed quantities m3 /year 103 Surface 1 194 090 1 077 489 6 267 108 913 2 386 759

Waste waters are discharged into the Kolubara River via the canal Bare and they do not disturb the recipient class II. The Thermal Power Plant Morava uses the water from the Morava River for cooling. Waste waters are discharged into the Morava River and they do not disturb the recipient class II.

quantItIes of Water
Table 9 gives the breakdown of the water balance.

Discharged waste waters Return cooling water m3 /year 103 979 558 1 035 083 820 85 748 2 100 389 820 Return cooling water m3 /year 103 Overflow and drainage from ash disposal m3 /year 103 24 412 19 773 540 2 397 47 122 Sanitary waste m3 /year 103 235 247 383 8 873

52 1 410

* for the purposes of process water treatment

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Improvements aImed at reducInG Waste Water Impact on surface and Ground Water pp nIKola tesla b
The activities related to the introduction of the new system for ash and slag transport and disposal at the TPP Nikola Tesla B were continued in year 2008. In accordance with the prepared technical-investment documentation for implementation of this project, procurement and installation of the equipment were contracted with the contractor and supplier of the equipment for reconstruction of the existing system - Energoinvest from Sarajevo. The first activities have already commenced and they comprise the construction of silos for dry ash disposal and erection of pipes for transportation of thick slurry of ash and slag. Transfer to the new technology - transport and disposal of ash and slag with low-water content - will be completed by the end of year 2009. The replacement of the existing technology of hydraulic ash and slag transport with the technology of low-water transport (ash:water ratio of 1:1) will enable reduction of the adverse environmental impacts of the N B disposals. Expected effects: ) reduction of the necessary water quantity for ash and slag transport; b) reduction of the quantity of waste waters from the disposals; c) increase in the surface and ground water quality; d) reduction of the total quantity of the disposed ash - longer disposal exploitation; e) financial savings; f) achievement of economic benefits g) improvement of the air quality in Obrenovac and surrounding settlements. 60

The Public Enterprise Electric Power Industry of Serbia has signed the Contract with EnergoprojektEntel for preparation of the study Waste water balance at TPPs and CHPs of the Electric Power Industry of Serbia, TPP Nikola Tesla and B. The first part of this study was completed during the year 2008 for the PP Nikola Tesla B, and the second part for the TPP Nikola Tesla should be completed during the year 2009. Basic goals of the study: determining of potential dangers from the occurrence of waste waters during exploitation of N B, affecting the environmental quality, having in mind that the location of the TPP is within the sanitary protection zone of the drinking water source of the city of Belgrade; determining of waste water flows within the TPP, with regard to their further use or recirculation, i.e. necessity for their treatment prior to their discharge into the natural recipient; defining of the special waste water treatment plants and proposal for their conceptual design. The following terms of reference have been identified in accordance with the defined goals: determining of the place of occurrence of waste water within the individual power plants systems; determining of the cause of occurrence of waste water; determining of the waste water properties and quantities; proposal for the reduction or prevention methods against the occurrence of waste waters; determining of an optimal method for construction of waste water canals and waste water collecting within the power plant; defining of the necessary waste water treatment.

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construction of the waste water treatment plant (at the level of conceptual design) and bring the TPP in compliance with the requirements of the valid regulations on the basis of the adopted reference criteria.

pp nIKola tesla a
The activities related to the preparation of the investment-technical documentation for the replacement of the existing and installation of the new ash and slag transport and disposal system at the TPP Nikola Tesla A have been continued. Preparation of the feasibility study with the basic design for reconstruction of the system for collection, treatment, transport and disposal of ash and slag at the TPP Nikola Tesla A, with the environmental impact study, is in the final stage. The study Waste water balance of TPPs and CHPs within the PE Electric Power Industry of Serbia, PPs Nikola Tesla and B is under preparation as well. Considering the fact that the preparation of the basic design for the project of reconstruction of ash and slag system is ongoing, the conceptual design for the treatment and discharge of the major part of waste waters will depend on the design of ash and slag system, as at TENT B. According to theBalance Plan for the environmental protection and improvement for the period 20082015, it has been planned to prepare the feasibility study with the basic design and environmental impact assessment study of waste waters for the TPPs Nikola Tesla and B by the end of 2011.

expected results
The subject study should be a base document for preparation of the technical documentation for waste water treatment plants, which will be erected in future at the TPP N B in order to bring the TPP operation in compliance with the regulations on environmental protection. In this sense, the results of the study are presented as follows: summary balance of waste waters generated at the TPP N B; proposal for the activities to be performed at the TPP N B for the reduction of waste water quantities; proposal for the activities to be performed at the TPP N B in order to check the necessity for

Waste
The data about the waste generated during 2008, which has been controlled and monitored in accordance with the regulations, are shown in the table 10.

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Table 10 EA TPPs NIKOLA TESLA List of waste Official nomenclature of the Rule Book, Offic. Gazette of RS, No. 55 /2001 (List of waste of the PE ELECTRIC POWER INDUSTRY OF SERBIA) Title slag and dust from the boiler (except for the dust from the boiler stated in 10 01 04) Waste which is not specified otherwise other emulsions plastic package metal package metal package absorbents, materials for filters (including filters for oils not specified otherwise), clothes and protection clothes, contaminated with dangerous substances Waste rubber lead-acid batteries Wood plastic copper, bronze, brass aluminium Code 100101 100199 130802 150102 150104 150104 150202 160103 160601 170201 170203 170401 170402 Unit No. TPP Nikola Tesla WTPP N WTPP N B

Quantity of generated waste 1920000 0.5 120 4.05 0 3 3.6 10 2 0.78 0 5 10 41.18 20 3 175 634 200 1556 1792000 3 130 1.9 4 1 0 0 0.5 12 600 0 0 0 0 0 0.2 110 150 250 360

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

t t t t t t t t t t t t t

Iron and steel

170405

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WTPP Kolubara

WTPP Morava

Total

Note

327000 0.5 3 0.45 0 0 0 0 0 0 0 0 0 0 0 0.4 1 14.9 99.2 1.5 0

108000 0.25 12 0.3 0.1 0.075 0 0 0 0.77 0 1.5 0.35 10.3 15 0.5 0 20.75 22.92 11.2 0

4147000 ash and slag from coal 4.25 265 6.7 4.1 4.075 3.6 10 2.5 13.55 600 6.5 10.35 51.48 15 20.9 4.2 320.65 906.12 462.7 1916 Waste rubber conveyor belt Waste mixed used oil Waste plastic package contaminated with hydrazine Waste metal package for oil and lubricants - undamaged Waste metal package for oil and lubricants - damaged Waste adsorption agent bentosorb H with oil Waste adsorption agent eKoret 21 with oil Waste adsorption agent eKoret 21 with oil Waste wooden railway sleepers Waste wood for heating Waste and residues from lead-acid batteries Waste copper cables Waste condenser pipes cuzn28sn1 Waste aluminium cables Waste aluminium sheet Waste baffle plates Waste iron with the thickness over 5 mm Waste iron with the thickness up to 5 mm Waste boiler pipe system 14mov63

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Table 10 EA TPPs NIKOLA TESLA List of waste Official nomenclature of the Rule Book, Offic. Gazette of RS, No. 55 /2001 (List of waste of the PE ELECTRIC POWER INDUSTRY OF SERBIA) Title Code Unit No. TPP Nikola Tesla WTPP N 642 0 100 300 0 53.56 5.3 0 10 37.05 0 3672 t 1923939.69 WTPP N B 600 2.74 400 80 0 2 0 8 193 2 0 0 1794910.34

Quantity of generated waste

22 23 24 25 26 27 28 29 30 31 32 33

Iron and steel

170405

Insulating materials other than the mat. stated in 17 06 01 and 17 06 03 saturated ion-exchange resins metals containing iron discarded electrical and electronic equipment other than the equipment stated in 20 01 21 and 2001 23 with dangerous substances TOTAL

170604 190905 191202 200135

t t t

1) Regulations on the Requirements and Method of Classification, Packing, and Storage of Secondary Raw Materials (Official Gazette of RS, No. 55/01) 2) Rule Book on the Method of Handling Wastes Having the Properties of Dangerous Substances ( Official Gazette of FRY, No. 12/95) 3) Decree on Waste Oil Management (Official Gazette of RS, No. 60/08) 4) Decree on Principles and Procedures for asbestos-containing waste management (Official Gazette of RS, No. 60/00)

publIc objectIons
Most of the objections related to the power plant operation has been raised regarding the adverse effect of ash disposal to air and water pollution in the direct vicinity, as well as regarding oil spills into the recipient.

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WTPP Kolubara

WTPP Morava

Total

Note

0 0 0 0.2 0 18 0 12.3 3 4.41 0.7 0 327159.56

0 0 0 0 2.8 0 0 17.5 0 0 0 0 108116.32

1242 2.74 500 380.2 2.8 73.56 5.3 37.8 206 43.46 0.7

Waste iron honeycomb Waste railway gauge accessories Waste railway tracks Waste galvanized sheet Waste boiler eco pipes Waste grey caste iron Waste tools Waste cast steel Waste mineral stone wool regenerated waste ion-exchange resin from the polishing plant Waste electrodes

3.672 Waste pc parts 4154125.91

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ECONOMIC ASSOCIATION PPs-OPMs OSTOLAC

This company consists of the following power plants: PP Kostolac , PP Kostolac B.

monItorInG and envIronmental Impact Air brInGInG of electrostatIc precIpItator operatIon In complIance WItH tHe requIrements of tHe eu reGulatIons
After the performed reconstructions electrostatic precipitators of units 1 and 2 at the TPP Kostolac are compliant with the requirements of the EU regulations on the reduction of particulate matter emission. It has been planned to bring electrostatic precipitator operation in compliance with the EU regulations for the reduction of particulate matter emission on units B1 and B2 at TPP Kostolac B in the period 2009-2010.

Kostolac B, the Head Departement for Strategy and Investment, Environmental Protection Sector, began with the preparation of the investment-technical documentation for the flue gas desulphurization system for the TPP Kostolac B at the end of 2006 and finalized this task in July 2008. The project was prepared in accordance with the contract between the Electric Power Industry of Serbia and the Consortium consisting of the University for Mechanical Engineering in Belgrade, the Faculty of Mining and Geology in Belgrade and the USA company WorleyParsons. The scope and the content of this documentation were prepared in accordance with the Law on planning and construction (Official Gazette of RS, No. 47/2003), Rule Book on the content, scope and methods for preparation of pre-feasibility study and feasibility study for construction of facilities (Official Gazette of RS, No. 80/05) and Rule Book on the content of the environmental impact assessment study (Official Gazette of RS No. 65/05). According to the content of the Terms of Reference, this documentation was prepared in the following two phases: First phase study related to the possibilities of limestone supply for the purposes of flue gas desulphurization at the TPP Kostolac B, PP Nikola Tesla , PP Nikola Tesla B and the new generating capacity of 700 W which would use Kolubara lignite; pre-feasibility study with the general design for flue gas desulphurization at the TPP Kostolac B. Second phase feasibility study with the basic design for flue gas desulphurization at the TPP Kostolac B; environmental impact assessment study for the introduction of flue gas desulphurization plant at the TPP Kostolac B.

brInGInG of sulpHur oxIde emIssIon In complIance WItH tHe requIrements of tHe local and eu reGulatIons
Based on the results of prepared studies the TPP Kostolac B has been selected as the first plant which must bring its SO2 emissions in compliance with the requirements of the local and EU regulations. The greatest effect on reduction of oxides emission at the units of this thermal power plant has been expected from the installation of flue gas desulphurization plant, since their share in the total emission of SO2 from thermal power plants of the PE Electric Power Industry of Serbia is the biggest one (their share in the total emission is app. 38.8%, while the share in the total output amounts to 16%). In order to identify the most reliable technical design for the flue gas desulphurization for the TPP

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The first phase of preparation of the investmenttechnical documentation has been completed in September 2007 and the second phase in July 2008. The technological-technical design for flue gas desulphurization, considered in the design, is based on the newest achievements in the area of wet FGD systems, which imply the use of limestone as a sorbent and generation of gypsum as a by-pr oduct. In accordance with the stipulations of the EU Directive 2001/80/EC, the FGD plant has been designed so as to fulfill the requirements related to the emission limit values for sulphur dioxide, being 400 mg/Nm3, which requires a process efficiency of 94%. Table 11 EA PPs-OPMs Kostolac Emission of hazardous substances Part of the company Parameters (mg/m3) s2 nox co particulate matter 5 340 698 44 359 6 050 852 29 290 PP Kostolac 1 2

perIodIcal measurements of emIssIon of Hazardous substances


The characteristics of the emissions from the stack are given on the basis of the results of periodical emission measurements performed at the PE EPS by the authorized institutions once a year. Table 11 shows the results of measurement of hazardous substances emission for the units B1 and B2 at the TPP Kostolac B and the units 1 and 2 at the TPP Kostolac .

PP Kostolac B B1 5 530 1 051 59 363 B2 5 354 893 49 661

ELV ELV1 650 450 250 50 ELV2 400 500 50

1 Regulations on emission limit values, methods and timeframe for measuring and data noting (Official Gazette of RS No. 30/97). 2 Directive 2001/80/EC - on the limitation of emissions of certain pollutants into the air from large combustion plants.

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By comparing the emission measurement results with the allowed emission limit values (ELV) of the local and EU legislation we can make the following conclusion: S2 emission on all TPP units is above the ELV of the local and EU legislation, CO emission is within the ELV of the local regulations, particulate matter emission is above the ELV of the local and EU regulations, NOx emission on all TPP units is above the ELV of the local and EU regulations. It can be noticed that the concentrations of particulate matter from the reconstructed electrostatic precipitators of units A1 and A2 were above the guarantee values of 50 mg/m3 during 2008 when the measurements were performed. Therefore, all parameters affecting the ESP operation efficiency shall be tested in the forthcoming period, in order to take the appropriate steps for achieving of the designed values. The measures for the reduction of sulphur oxide emissions were not performed during designing and construction of the units of the TPPs Kostolac A and B, hence the concentration of sulphur dioxide in the flue gas is significantly exceeding the emission limit values (ELV) allowed in the local and EU legislation. In order to reduce the concentration of sulphur oxide emission to the level of 400 mg/m3, in accordance with the Directive 2001/80/EC, it has been planned to install the flue gas desulphurization plants by 2015 on units B1 and B2 of the TPP Kostolac. The respective investment documentation has already been completed.

This design documentation provides the required and sufficient level of the data for preparation of the tender documentation, which has been planned within the framework Balance plan for the environmental protection of the PE Electric Power Industry of Serbia for the year 2009. The defined criteria will enable the selection of an adequate bidder for the construction of desulphurization plant in accordance with all required technical-technological and economic parameters. Additionally, the measures for the reduction of nitrogen oxide emission or even the nitrogen oxide concentration in the flue gas havent been performed, hence the concentration of nitrogen oxides in the flue gas significantly exceeds the emission limit values (ELV). In order to reduce the concentration of nitrogen oxide emissions to the level of 200 mg/m3, it has been planned to introduce the primary measures for the reduction of emissions on the units B1 and B2 of the TPP Kostolac B by 2015.

contInuous measurements of emIssIon of Hazardous substances


Measurements of emission of hazardous substances in flue gases are performed in accordance with the requirements of the Regulations on emission limit values, methods and timeframe for measuring and data noting (Official Gazette of RS, No. 30/97) on units B1 and B2 of the TPP Kostolac B and unit 2 of the TPP Kostolac , where SO2 ,NOx, O2 and particulate matter are being measured, in contrast to the unit 1, where only PM emission is being measured.

emIssIon of Hazardous substances


The table 12 gives the breakdown of the annual emissions of particles, , SO2, NOx and CO2.

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Table 12 EA PPs-OPMs KOSTOLAC Emission of hazardous substances at the annual level Company part PP Kostolac unit 1 unit 2 total PP Kostolac B unit b1 unit b2 total EA PPs-OPMs Kostolac - total t/ year Particles 826 1715 2 541 1 865 3 857 5 722 8 263 SO2 13 227 36 168 49 395 28 117 31 453 59 570 108 960 NOx 1 726 5 059 6 785 5 335 5 242 10 577 17 362 CO2 x 103 755 1 628 2 384 1 584 1 779 3 364 5 748

WAter
All units have the flow cooling system and use the water from the Danube River for cooling. The return cooling water shall not disturb the recipient class II. Table 13 EA TPPs-OPMs KOSTOLAC Water quantities Water intake Part of the economic Association Used quantities m3 /year x 103 Surface pp Kostolac pp Kostolac b Total
* for the purposes of process water treatment.

quantItIes of Water
Table 13 gives the breakdown of the water balance.

Discharged waste waters Allowed quantities m3 /year x 103 Surface 296 767 487 845 784 612 Return cooling m3 /year x 103 336 310 533 219 869 529 Overflow and drainage from the ash disposal m3 /year x 103 18 288 25 897 44 185 Sanitary waste m3 /year x 103

Ground* 1 104 1 104

355 560 560 479 916 039

250 250

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Improvements aImed at reducInG asH dIsposal Waste Water Impact on surface and Ground Water
The activities related to the introduction of the new system for ash and slag transport and disposal at the TPP Kostolac B were continued in year 2008. This will enable the reduction of eolian erosion of ash, reduction of ground water pollution and hence eliminate the pollution of surface waters. Construction works at the site of the TPP Kostolac B (construction of silos) and site works at the OP Cirikovac, the future disposal of ash and slag from the TPP Kostolac B, have already been started. The project is being implemented according to the contract between the PE Electric Power Industry of Serbia and the German Consortium DOBEREK MLLER for implementation of the project at the TPP Kostolac B, the value of which is 21 million euros and which is financed from EBRD credit. The tender documentation for the project for replacement of the ash and slag disposal system at TPP Kostolac has been prepared for the TPP Kostolac . The preparation of the Pre-feasibility study with the general design of waste water treatment for the

TPP Kostolac A and B was completed during the year 2008. The study was prepared by the Belgrade Traffic Institute - CIP. The study determines the causes of waste water occurrence, place of their occurrence, quantity and quality of water, as well as technicaltechnological design for the treatment of oily waste waters based on techno-economic assessment of the respective technical design options for waste water treatment. The selected design will fulfill the legal requirements related to water protection against pollution. It is the responsibility of the TPP Kostolac to obtain the integrated license for operation, in accordance with the Law on integrated pollution prevention and control by 2015.

Noise
Environmental noise measurements were not performed in the year 2008.

WAste
The data related to control and monitoring of waste generated in 2008, which are being performed in accordance with the legal regulations, are shown in table 14.

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Table 14 EA TPPs-OPMs KOSTOLAC Waste Official nomenclature of the Rule Book, Offic. Gazette of RS, No. 55 /2001 (List of waste of the PE ELECTRIC POWER INDUSTRY OF SERBIA) Title aluminium and aluminium alloy waste zinc and zinc alloy waste metal barrels for oil Iron and iron alloy waste mineral wool chamotte bricks Galvanized sheet with tar steel pipes with ash sediment Code 170 402 170 405 191 202 150 110 170 405 170 407 170 603 170 604 160 304 170 604 191 202 170 302 170 409 1 2 3 4 5 6 7 8 tons tons piece tons tons tons tons tons 298,986 36,9 Unit No. PP KOSTOLAC TPP Kostolac A TPP Kostolac B Total Note 0,34 1,39 44 597,972 11,1 110 0,3 2,2 0,34 1,39 44 896,958 48 110 0,3 2,2 from the silo of the TPP Kostolac B to the disposal in the OP Cirikovac and building of the disposal in the internal overburden dump of the OP Cirikovac. The authorized inspection determined that the objections were groundless.

1) Regulations on the Requirements and Method of Classification, Packing, and Storage of Secondary Raw Materials (Official Gazette of RS, No. 55/01) 2) Rule Book on the Method of Handling Wastes Having the Properties of Dangerous Substances ( Official Gazette of FRY, No. 12/95) 3) Decree on Waste Oil Management (Official Gazette of RS, No. 60/08) 4) Decree on Principles and Procedures for asbestos-containing waste management (Official Gazette of RS, No. 60/00)

publIc objectIons
The only objection to the TPP Kostolac B operation was related to the implementation procedure for the project of reconstruction and upgrading of the system for ash and slag transport from the PP Kostolac B,

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ECONOMIC ASSOCIATION PANNONIAN CHP PLANTS

This company consists of the following combined heat and power plants: CHP Novi Sad, CHP Zrenjanin, CHP Sremska Mitrovica.

monItorInG and envIronmental Impact Air


Table 15 shows the data related to the emission measurements during the use of gaseous and liquid fuel heavy oil for combustion. The measurements have been performed by the authorized institutions. Concentrations of all parameters are stated for the dry gas, normal conditions and reference oxygen.

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Table 15 EA PANNONIAN CHP PLANTS Emission of hazardous substances periodical measurements CHP Novi Sad Parameters Unit 1 liquid fuel 993 687 0 27 CHP Novi Sad Parameters Unit 2 liquid fuel CHP Zrenjanin Parameters Unit 1 - boiler 1 liquid fuel 605 1224 0 21 Unit 1 gaseous fuel Unit 2 gaseous fuel 0 551 9.7 1.1 Unit 1 gaseous fuel 0 211 0 0.44 ELV for liquid fuel ELV1 ELV2 ELV for gaseous fuel ELV1 ELV2

(mg/m3) s2 nox co particulate matter 3200 450 175 100 ELV for liquid fuel ELV1 ELV2 1700 450 50 1700 350 100 5 ELV for gaseous fuel ELV1 ELV2 35 300 5

(mg/m3) s2 nox co particulate matter 400 350 175 80 ELV for liquid fuel ELV1 ELV2 1500 450 50 100 350 100 5 ELV for gaseous fuel ELV1 ELV2 35 400 5

(mg/m3) s2 nox co particulate matter 3200 450 175 100 1700 450 50 1700 350 100 5 35 300 5

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CHP Zrenjanin Parameters Boiler 2 liquid fuel Boiler 2 gaseous fuel 296 CHP Sremska Mitrovica Parameters Boiler 3 liquid fuel 1 398 509 134 Boiler 3 gaseous fuel 485 11.9

ELV for liquid fuel ELV1 ELV2

ELV for gaseous fuel ELV1 ELV2

(mg/m3) s2 nox co particulate matter 3200 450 175 100 ELV for liquid fuel ELV1 ELV2 1700 450 50 1700 350 100 5 ELV for gaseous fuel ELV1 ELV2 35 300 5

(mg/m3) s2 nox co particulate matter 3 200 450 175 100 1700 450 50 1700 350 100 5 ELV for gaseous fuel Boiler 3 9 161 8.83 ELV1 1 700 350 100 5 ELV2 35 300 5 35 300 5

Parameters Boiler 1 (mg/m3) s2 nox co particulate matter 13 175 0

CHP Sremska Mitrovica Auxiliary boiler room Boiler 2 6 176 3

1 Regulations on emission limit values, methods and timeframe for measuring and data noting (Official Gazette of RS, No. 30/97). 2 Directive 2001/80/EC - on the limitation of emissions of certain pollutants into the air from large combustion plants.

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Table 16 shows the breakdown of the annual emissions of SO2 , NOx, dust and CO2 from each of the combined heat and power plants. Table 16 EA PANNONIAN CHP PLANTS Emission of hazardous substances at the annual level Company part / Plant cHp novi sad cHp zrenjanin cHp sremska mitrovica TOTAL t/year SO2 266 272 124 662 NOx 389 641 81 1111 dust 7 10 13 30 CO2 x 103 207 124 22 353

WAter
The CHP Novi Sad and the CHP Sremska Mitrovica have the flow cooling system, while the CHP Zrenjanin has the closed cooling system (cooling towers). Table 17 EA PANNONIAN CHP PLANTS Water Water intake (m3 /year x 103) Company part / Plant Used quantities 905 18 701 675 20 281 Allowed quantities 492 33 839 569 34 900 Return cooling 372 18 368 600 19 340 Discharged waste water (m3 /year x 103) Oily Sanitary waste Other (neutralization pit and washing of LUVO)

Table 17 shows the breakdown of the water balance for CHP.

cHp zrenjanin cHp novi sad cHp sremska mitrovica TOTAL

30 90 30 4.4 31 10 all waste waters are directed to the waste water treatment plant pe matroz 34,4 121 40

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waste water (sanitary, neutralization pit) through the Aleksandrovacki Canal (IV class) into the Begej River (IV class). There are no available data about the water quality of the Begej River after waste water discharge. The CHP Sremska Mitrovica uses the water from the Sava River for cooling. Return cooling waters are discharged into the Sava and they do not disturb the recipient class II.

Noise
The measurement of environmental noise in the vicinity of the CHP Novi Sad was performed in the year 2008. The measurement results for both the daytime and the nighttime are below the allowed values.

The CHP Novi Sad uses the water from the Danube River for cooling. Return cooling waters are discharged into the Danube River and they do not disturb the recipient class II. The CHP Zrenjanin uses the water from the Begej River for process water treatment and discharges the

WAste
The data about the waste generated during 2008, which has been controlled and monitored in accordance with the regulations, are shown in table 18.

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Table 18 EA PANNONIAN CHP PLANTS Waste Official nomenclature of the Rule Book, Offic. Gazette of RS, No. 55 /2001 (List of wastes of the ELECTRIC POWER INDUSTRY OF SERBIA) Title acid lead batteries Iron and steel Iron and steel Iron and steel Insulation material other than the mater. stated in 170601 and 170603 mixture of different types of oil transformer oil Ion exchange mass automobile tires Hydraulic lime other motor oils, gear oils and lubrication other hydraulic oils aluminium Code 160601 170405 170405 170405 170604 Unit No. Pannonian CHP plants CHP Novi Sad CHP Zrenjanin Quantities 550 47500 14250 CHP Sremska Mitrovica Note Total cables with insulation pipes, cast steel different valves and fittings Iron filings 2000 3000 mineral wool Hydraulic oils Gearbox oil

1. 2. 3. 4. 5.

kg kg kg kg kg

6. 7. 8. 9. 10. 11. 12. 13.

130205 130307 190905 1601103 060201 130208 130113 170402 l kg pcs t kg kg kg 800 1200 800

1600 600 14 200

800 200 10000 37

1) Regulations on the Requirements and Method of Classification, Packing, and Storage of Secondary Raw Materials (Official Gazette of RS, No. 55/01) 2) Rule Book on the Method of Handling Wastes Having the Properties of Dangerous Substances ( Official Gazette of FRY, No. 12/95) 3) Decree on Waste Oil Management (Official Gazette of RS, No. 60/08) 4) Decree on Principles and Procedures for asbestos-containing waste management (Official Gazette of RS, No. 60/00)

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publIc objectIons
There were no objections related to the operation of these plants in 2008.

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EXPECTATIONS FOR THE PERIOD 2009-2017

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The total implemented international aid to the Republic of Serbia and the Electric Power Industry of Serbia in the period 2000-2007 amounts to app. 4.5 billion euros, of which app. 600 million euros have been invested in the Electric Power Industry of Serbia. Considering the global economic and social situation after the democratic changes in the year 2000, the international aid was necessary for solving of urgent problems, humanitarian and social issues, achievement of macroeconomic stabilization, reconstruction and remedy of infrastructural systems, as well as initializing of the reform process and

European integrations. Hence, the level of this aid was the highest exactly during the first two years of transitory changes and the following tendencies could be observed during the mentioned period: reduction of participation of humanitarian aid compared to the development aid, reduction of participation of non-returnable funds compared to the concessional credits, as well as the change of distribution of approved funds within the sectors.

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Breakdown of the international aid implementation during the years, in million euros Years Implemented international aid Implemented international aid expressed in % Gdp 2001 868.55 6.6 2002 726.35 4.3 2003 686.22 3.8 2004 450.58 2.3 2005 713.21 3.4 2006 551.35 2.2 2007 372.20 1.2

Source: Report on the international aid to the Republic of Serbia in the year 2007, Ministry of finance.

In the previous period a significant portion of the international aid has been implemented through different types of technical support and investment of the international community. With regard to the total scope of the aid implemented within the sectors in the period 2001-2007, the most supported sectors were as follows: budget support financing of nonrecurring expenses of reforms in all sectors (19.3%), energy sector (16.9%) and traffic (12.2%). In addition

to these sectors, a significant scope of aid has been implemented in the area of private sector development, development of the local municipal administration, health sector, while the high level of the international aid in the period until the year 2003 was directed to the social sector. The international aid in the Republic of Serbia is mainly directed to the covering of nonrecurring reform costs, which are extremely high.

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Basic development goals and priorities

The strategic basis for defining of the development direction of the Republic of Serbia is presented in the following documents: National strategy for joining the EU, National Strategy for the economic development of Serbia, Sustainable Development Strategy for Serbia, as well as a number of sector development strategies (energy sector, environmental protection and other areas). The goal of the Electric Power Industry of Serbia is to achieve the EU standards in the area of environmental protection, as well as to further improve the environmental protection. The road to the European Union is understood as the road towards a modern society and more developed economy and economic requirements are understood as measure and not as a goal. It is important to mention that the European Union funds represent an important share in the total international aid funds and that they are mainly intended for support to the European integration process. Since the year 2007, the European Union aid has been provided through a new financial instrument - Instrument of Preaccession Assistance IPA. The basis for planning and programming of IPA funds is the document of the European Committee Multiannual Indicative Planning Document (MIPD), which refers to the future three-year period. While the MIPD is the document of the European Committee, that defines the priorities, goals, activities and measures for programming of the European Union funds, the document entitled The Green Book of the Electric Power Industry of Serbia is the one that defines priority goals

and programmes/projects in the area of environmental protection, with regard to the European integration, but to the other relevant reform goals and national politics as well. The framework agreement between the European Union and the Republic of Serbia on rules of cooperation related to the financial aid of the European community to the Republic of Serbia, within the framework of aid implementation according to the rules of the Instrument of Preaccession Assistance (IPA), was ratified on 26 December 2007. Additionally, the financial agreement between the Government of the Republic of Serbia and the European Union Committee is under preparation and it is related to the national programme for Serbia within the framework of the first IPA component support to the transition process for the year 2007. The national strategy for the economic development of Serbia defines the basic goals and development directions on the road towards a modern society, developed economy and improved quality of life for all citizens. At the same time, this is the road of joining the European Union, on which the Republic of Serbia will employ all its human, material, natural and geostrategic potentials, speed up the reform process and establish the new role of the country. Additionally, the Republic of Serbia must build its development on the principles of sustainable development economic development coordinated and harmonized with the environmental politics, as well as social and other types of politics.

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Requirements related to the international aid

For the achievement of strategic development goals, European integrations and the implementation of reforms in the future period, it is necessary to provide further international support to the Electric Power Industry of Serbia in the realization of its programme to meet the responsibilities from the SEE Energy Community Treaty and adjusting to the EU standards in the area of environmental protection. The priorities for the international aid can be distinguished in this programme, such as: construction, reconstruction and modernization of infrastructure for achieving the EU standards in the area of environmental protection. In this sense, the help of the international community is necessary as a support to measures which should contribute to a better environmental condition, its improvement and finally, reaching the respective standards in this area like in all the EU countries.

With regard to the limits of available funds of the international community, as well as of the own funds, the efficiency in planning of funds and the implementation of the projects are of a great importance for financing all necessary reform activities and measures. In this sense it would be good to provide complementarity and compliance in programming of these funds, as well as to consider the possibilities of use of more efficient models of help. The improvement of cooperation in the stage of fund programming is of special importance, as well as providing joint financing of projects/programmes by several donors, cofinancing with the own financial funds, selection of the respective, most efficient methods for providing help, as well as the proper timing of the project implementation commencement, in order to use the limited capacities of the institutions which are receiving help in the most efficient way.

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PRIORITIES FOR INTERNATIONAL AID FOR ELECTRIC POWER INDUSTRY OF SERBIA IN THE AREA OF ENVIRONMENTAL PROTECTION

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The key priorities are the reforms and reduction of soil, surface, ground water and air pollution. In view of this, the funds and investments need to be directed to endangered locations and priority areas, such as air pollution from the thermal power plants. In order to overcome the above weaknesses within the environmental protection system, it is necessary to implement the following priorities: improvement of the environmental control system; encouragement of sustainable use of natural resources, rational use of energy (in the first line by increase in the energy efficiency) and resources and stimulation of waste recycling and use of renewable energy sources; reduction of the air pollution from the energy sector, industry, transport, caused by the emission of C, S2, 2, Nx, particulate matter, specific pollutants and other GHG;

reduction of the soil, surface and ground water pollution with hazardous substances and waste. It is estimated that the total investments in the environmental protection will increase from 48 million euros to 725 million euros annually in the year 2017. The investment increase is gradual and the reason thereof is orientation to the building of the efficient legal and financial system, as well as monitoring and reporting system for the environmental protection system, the activities of which would not be capitalintensive. The estimation is that on the level of the Republic the biggest share in the total costs for the National Programme for environmental protection will be the share of the energy and mining sector (28%), followed by the water management (15%) and the transport - the costs directly connected with the improvement of environmental protection (9%).

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Priority measures/activities for the implementation of mid-term goals in the area of environmental protection in the Electric Power Industry of Serbia

Goals Improvement of air quality and climate changes reduction of pollution from the mining sector reduction of pollution from the energy sector Improvement of waste management protection of soil protection against noise protection against non-ionizing radiation The amount of the currently foreseen funds is just the minimum part of the necessary investments in reduction of the air and water pollution from the energy sector. The total investments for bringing the

energy sector to the level compliant with the BATs, improvement of energy efficiency, use of renewable energy sources etc, require significantly higher level of financial funds. The Electric Power Industry of Serbia is aware that the environmental protection has an essential role in reaching the development goals and that it provides substantial funds for solving of the priority issues of environmental protection. At the same time, the funds are insufficient for financing of all activities and investment projects in the area of environmental protection, which need to be implemented during the next years. Hence, it is necessary to involve all available mechanisms and possibilities for the implementation of the future projects. The international help directed to the key segments of environmental protection, including the loans under the most favourable conditions, is of essential importance.

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PRIORITIES AND REQUIREMENTS IN THE PERIOD 20092017

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In the forthcoming period emissions of pollutants shall be brought in compliance with the requirements of the local and the EU regulations. We would like to emphasize that by signing and ratification of the Agreement on founding of the common electricity market for the countries of central and southeast Europe, the Republic of Serbia has promised to fully comply with the Acquis Communautaire Environment. According to the set of laws on the environmental protection, which were enforced at the end of December 2004, the PE Electric Power Industry of Serbia must coordinate the operation of its facilities with their stipulations by 2015. This means that according to the national regulations, which are still to be coordinated with the EU regulations, the best available techniques (BAT) in view of protective measures must be applied for the new facilities and plants being overhauled: Desulphurization and denitrification plants, as well as high efficiency electrostatic precipitators must be installed and waste water treatment plants must be built for the new thermal power facilities and also for those being overhauled, new solutions must be introduced for ash transport and disposal etc;

New recultivation methods, including selective excavation and humus disposal must be applied in the mining sector; Protective measures for accumulation lakes and costal area, remedy and revitalization of the existing condition must be performed for the hydroelectric power plants; Adjustment to the requirements of the UN Framework Convention on climate change and Kyoto Protocol, use of clean development mechanisms (CDM), foreseen as a support to the sustainable development of the developing countries, as well as the preparation for application of other flexible mechanisms; Introduction of the Environmental Management System (EMS) ISO 14001 within the Electric Power Industry of Serbia; Maximum use of the waste materials (ash, gypsum, clay, gravel, sand, oil, rubber, alternative fuels and other), which are generated as by-products during the activities being performed within the Electric Power Industry of Serbia.

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The following activities have been planned for the period 2009-2015: At the level of the PE Electric Power Industry of Serbia: preparation of the environmental strategy and politics in the Electric Power Industry of Serbia; optimization of reduction of the total emission of hazardous substances from the thermal power plants within the Electric Power Industry of Serbia; projects for introduction of new technologies for the environmental impact reduction; following of the development of the local and foreign regulations which are related to the environmental protection; preparation of the pollutant register for air, water, soil and waste; implementation of the environmental monitoring system; improvement of the environmental organization and management system within the company; solving of the problem of hazardous and toxic waste, as well as use of waste and by-products, generated during plant operation, as secondary raw material; implementation of the project Development of environmental protection management system in the forthcoming period at the level of the PE EPS, reconsidering of the implementation of additional financial effects for the reduction of C2 emissions from the power plants of the Electric Power Industry of Serbia. Coal generation and processing: development and introduction of new technologies for selective excavation of the layers covering the coal layer (use of the material of the layers covering the coal layer and the layers beneath the coal layer as non-metallic mineral resources); recultivation of overburden disposal; protection of the regime and quality of ground and surface waters and soil in the vicinity of the mines; protection against emission (gases, dust and noise), protection during processing of coal.

Thermal power plants and combined heat and power plants: monitoring, reduction of emission and improvement of the air quality: reconstruction of electrostatic precipitators in accordance with the legal regulations,application of the primary measures for the reduction of nitrogen oxide concentration in flue gases in accordance with the legal requirements on the units being overhauled, as well as installation of the flue gas desulphurization plant at the TPP in accordance with the legal requirements; monitoring of the activities on improvement of the generation efficiency (reduction of the auxiliary consumption) from the aspect of environmental protection, supporting of the programme for the district heating from thermal power plants from the aspect of environmental protection; improvement of the existing and introduction of new technologies for ash and slag transport and disposal in accordance with the special programme; reduction of quantity of waste water and control of the discharged water quality, ground water protection by introduction of the new technologies for ash transport and disposal, fabrication of water curtains of wells in the vicinity of the disposals and erection of the plant for waste water treatment; use of ash and slag in the cement industry, civil engineering, construction of roads etc. Hydroelectric power plants: monitoring, survey, measurements and analysis of the water regime and quality (accumulation, water courses, ground water), as well as the regime and the quality of the deposits; protection against erosion, flooding, deposits and ice; protection of the coastal area; special measures for protection of the coastal area of the Djerdap system of power plants, in addition to the implementation of the Programme

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for monitoring, evaluation and analysis of the impact of the Danube backwater on the embankment caused by construction and the work of HPP Djerdap I and Djerdap II, as well as cooperation with the International Committee for protection of the Danube River (ICPDR). The implementation of the Plan for environmental protection and improvement is being coordinated with the implementation of the plans for investment, maintenance and scientific research. The necessary financial funds are contained within the stated plans. It has been estimated that the Electric Power Industry of Serbia would have to invest 1.2 billion in the environmental protection in order to comply with the EU standards in the period by 2015.

The already defined programmes are related to the: reduction of sulphur oxides emission by installation of the flue gas desulphurization plants in the thermal power plants, reduction of nitrogen oxides emission by introduction of the primary measures, reconstruction or replacement of the electrostatic precipitators, replacement of fuel used by the combined heat and power plants with the fuel having the lower coefficient of hazardous substances emission, preparation of the pollutant register, cleaning of the riverbed and solving of the floating waste issue, supporting the use of renewable energy sources (mini-hydroelectric power plants), treatment of oily waters from the EPS facilities, as well as recultivation of soil (nursery plants, afforesting), introduction of the Environmental Management System (EMS) ISO 14001 in the Electric Power Industry of Serbia.

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Planned activities for environmental projects at open pit mines, thermal power plants and hydroelectric power plants of the Electric Power Industry of Serbia for the period 2009 2015

Protective meAsures WithiN sectors GeneratIon and processInG of coal


development and introduction of new technologies of selective excavation of the layers covering the coal layer, possibilities for use of the material of the layers covering the coal layer and the layers beneath the coal layer as non-metallic mineral resources, recultivation of overburden disposals, measures for protection of ground and surface water regime and quality and protection of soil in the vicinity of the mines, protection against dust and noise and protection during coal processing.

Improvement of the existing and introduction of new technologies for ash and slag transport and disposal (mixing of ash and water in the ratio 1:1), Recultivation of ash disposals in accordance with the special programme, Reduction of the waste water quantity, Control of the discharged water quality and monitoring of its influence on the recipients, Fabrication of the water curtains of wells in the vicinity of the disposals for protection of ground water and surrounding soil, Use of ash and slag in the cement industry, concrete industry, road construction etc.

HydroelectrIc poWer plants


monitoring, survey, measurements and analyses of the water regime and quality (accumulation, water courses, ground water), as well as the regime and the quality of the deposits protection against erosion, flooding, deposits and ice, revegetation of the river basin, protection of the coastal area, protection of water, especially of accumulation lakes which should be used for other purposes, project for organization and for environmental protection management system, preparation of the water pollutant register and preparation of the monitoring system for accumulation lakes and coastal area, introduction of the information system with regard to protection of water and coastal area.

tHermal poWer plants and combIned Heat and poWer plants


Reconstruction of the electrostatic precipitators in accordance with the legal regulations (ELV=50 mg/m3 of particulate matter) on units under rehabilitation, Application of the primary measures for reduction of nitrogen oxide concentration in flue gases in accordance with the legal regulations (ELV=200 mg/m3 of nitrogen oxides) on units under rehabilitation, Installation of the flue gas desulphurization plant at the TPP in accordance with the legal regulations (ELV = 400 mg/m3 of sulphur oxides),

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projects In tHe perIod 2008-2015


Project I Thermal Power Plant PP Nikola Tesla - unit 6 PP Nikola Tesla B unit B1 PP Nikola Tesla B unit B2 PP Morava PP Kolubara - unit 5 PP Kostolac B unit B1 TPP Kostolac B unit B2 Total Reconstruction or replacement of the existing electrostatic precipitators on TPP units Commencement of implem. /end of implementation 2009/2009 2009/2009 2010/2010 2010/2010 2008/2009 2010 2010 Funds in 6,000,000 6,000,000 7,500,000 4,000,000 4,000,000 5,000,000 5,000,000 37,500,000 Financial source IPA-2007 IPA-2007 IPA-2008/EPS (expected) EPS/IPA-2009 (expected) Environmental Protection Fund of the RS/EPS Environmental Protection Fund of the RS/EPS * Environmental Protection Fund of the RS/EPS *

Project II Thermal Power Plant PP Nikola Tesla - unit 3-6 PP Nikola Tesla B - unit B1-B2 PP Nikola Tesla B unit B2 PP Morava TPP Kostolac A - A1-A2 PP Kostolac B - unit B1- B2 Total

Primary measures for the reduction of NOx emissions from TPP units Commencement of implem. /end of implementation 2008-2015 2008-2015 2008-2015 2008-2015 2008-2015 2008-2015 Funds in 24,000,000 24,000,000 7,500,000 4,000,000 12,000,000 12,000,000 83,500,000 Financial source IPA (expected) IPA (expected) IPA (expected) Electric Power Industry of Serbia Electric Power Industry of Serbia Environmental Protection Fund of the RS/EPS *

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Project III Thermal Power Plant PP Nikola Tesla - unit 3 6 PP Nikola Tesla B PP Kostolac B Total

Flue gas desulphurization on the TPP units (FGD) Commencement of implem. /end of Funds in Financial source implementation 2012/2016 200,000,000 Not defined (japanese credit) 2010/2014 210,000,000 Possibly IPA/EPS 2009/2011 125,000,000 Possibly the Environmental Protection Fund of the RS 535,000,000 Reconstruction of the ash and slag transport and disposal system introduction of the new technology Commencement of implem. /end of Funds in Financial source implementation 2008/2009 8,000,000 Environmental Protection Fund of the RS/EPS 2010/2012 40,000,000 IPA 2009/EPS (expected) 48,000,000 Reconstruction of the ash and slag transport and disposal system introduction of the new technology Commencement of implem. /end of Funds in Financial source implementation 2009/2010 6,000,000 IPA 2008/Electric Power Industry of Serbia 2010/2012 2005/2009 3,750,000 500,000 IPA 2008/ Electric Power Industry of Serbia EAR/ Electric Power Industry of Serbia

Project IV Thermal Power Plant PP Kolubara - unit 5 PP Nikola Tesla - unit 3 6 Total

Other projects Thermal Power Plant Removal of PCB oil from the facilities of the Electric Power Industry of Serbia Continuous monitoring of gas emissions from N Introduction of the Environmental Management System (EMS) ISO 14001 in the Electric Power Industry of Serbia Modernization of the monitoring and control system at TENT B Total

2009/2012

12,000,000 21,750,000

SECO SWISS/ Electric Power Industry of Serbia

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Planned activities for the implementation of projects in the thermal power plants of the Electric Power Industry of Serbia:

Selection of consultants for the projects, preparation of the tender documentation, preparation and evaluation of bids for international tender procedures and preparation of the contract documentation (6 months for the tender procedure); Preparation of the General Designs technical, mechanical, electrical and civil engineering (6 months for the General Design); Procurement of the equipment and material; Civil works and erection of building structures;

Dismantling and erection of the equipment for electrostatic precipitator reconstruction; Installation of the equipment for FGD plants; Trial run and performance tests; Continuous plant operation and analysis of the operation results. The detailed action plan is given in Annex II and the breakdown of proposed projects that require the international aid is presented in Annex IV of this document.

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Risks of failure to perform the planned activities during implementation of the projects in the thermal power plants of the Electric Power Industry of Serbia

With regard to the politics of electricity prices, the Electric Power Industry of Serbia is not able to finance the projects for flue gas desulphurization at the TPP Kostolac B and the TPP Nikola Tesla B from its own funds or from the commercial credits. Failure to provide the adequate financing funds in time would jeopardize the dynamics and the implementation of the project for the flue gas desulphurization at the TPP Kostolac B and the TPP Nikola Tesla B. The direct consequence of this would be impossibility of obtaining the integrated license (license for plant operation), because these plants are on the list of the IPPC plants pursuant to the Law on integrated pollution prevention and control (Official Gazette of the RS, 135/04). In case of desisting from or the delay in the dynamics for the implementation of planned activities on the environmental protection projects, the Electric Power Industry of Serbia will not be able to perform its project

responsibilities (Investment Plan for the period 2007-2012 and responsibilities in this area defined in the Plan for achievement of energy sector strategies), and hence the responsibilities arising from the SEE Energy Community Treaty. Failure to perform the planned activities within the energy sector and the Electric Power Industry of Serbia jeopardizes the fulfillment of obligations of Serbia within the framework of valid international contracts, as well as responsibilities arising from the process of harmonization and joining the EU in the area of energy sector and environmental protection. In order to fulfill the EU standards, as well as the Law on integrated pollution prevention and control (Official Gazette of the RS, 135/04), the Electric Power Industry of Serbia must invest 1.2 billion in the environmental protection by 2015 in all its sectors.

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ANNEX I

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ENVIRONMENTAL PROTECTION LEGISLATION OF THE REPUBLIC OF SERBIA - ENERGY SECTOR


1. General regulations and laws
1. Constitution of the Republic of Serbia 2. Environmental Protection Law 3. Environmental Protection Law 4. Modifications and amendments of the Environmental Protection Law 5. Law on Strategic Environmental Impact Assessment 6. Law on Integrated Pollution Prevention and Control 7. Environmental Impact Assessment Law 8. Modifications and amendments of the Environmental Impact Assessment Law 9. Law on transportation of hazardous substances 10. Explosive Substances Law 11. Law on Toxic Substance Production and Trading 12. Law on explosive substances, flammable liquids and gases 13. Law on Waste Management 14. Law on Hydro-Meteorological Activities of Republic Interest 15. Law on protection against natural disasters (Official Gazette of RS, No. 1/90) (Official Gazette of RS, No. 66/91, 83/92, 67/93, 48/94, 53/95) (Official Gazette of RS, No. 135/04) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 135/04) (Official Gazette of RS, No. 135/04) (Official Gazette of RS, No. 135/04) (Official Gazette of RS, No. 36/2009) (Official Gazette of SFRY, No. 27/90, 45/90, Official Gazette of FRY, No. 24/94, 28/96, 21/99) (Official Gazette of SFRY, No. 30/85, 6/89, 53/91, Official Gazette of FRY, No. 24/94) (Official Gazette of FRY, No. 15/95, 28/96) (Official Gazette of SRS, No. 44/77, 45/85, 18/89, Official Gazette of RS, No. 53/93, 67/93, 48/94) (Official Gazette of RS, No. 36/2009) (Official Gazette of SFRY, No. 18/88, 63/90) (Official Gazette of SRS, No. 20/77, 24/85, 27/85, 6/89, 52/89 and Official Gazette of RS, No. 53/93, 67/93, 48/94) (Official Gazette of SRS, No. 37/88 and Official Gazette of RS, No. 53/93, 67/93, 48/94) (Official Gazette of RS, No. 36/2009) (Official Gazette of FRY, No. 12/95) (Official Gazette of FRY, No. 59/98) (Official Gazette of RS, No. 46/91, 53/93, 67/93, 48/94, 54/96) (Official Gazette of RS, No. 49/92, 53/93, 67/93, 48/94, 46/95, 54/96, 14/00) (Official Gazette of FRY, No. 24/98, 26/98) (Official Gazette of SRS, No. 14/84, 6/89 and Official Gazette of RS, No, 53/93, 67/93, 48/94) (Official Gazette of FRY, No. 28/2000) (Official Gazette of RS, No. 84/2004) (Official Gazette of RS, No. 46/91, 83/92, 54/93, 67/93, 48/94, 54/96) (Official Gazette of RS, No. 44/95)

16. Fire Protection Law 17. Law on Ionizing Radiation Protection and Nuclear Safety 18. Law on prohibition of nuclear plants erection in FRY 19. Law on Water Regime 20. Water Law 21. Law on Agricultural Land Soil 22. Plant Protection Act 23. Law on Protection of plants against diseases and insect pests 24. Organic Agriculture Law 25. Law on Electrical Energy Sector 26. Forest Law 27. Law on Geological Survey Activities

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28. Law on determining and classification of mineral resources and presenting of geological survey data 29. Mining Law 30. Planning and Construction Law 31. Spatial Planning Law of the Republic of Serbia 32. Company Law 33. Standardization Law 34. Occupational Health and Safety Law 35. Public Health Protection Act 36. Law on National Parks 37. Law on Ministries 38. Law on the authorities of autonomous provinces 39. Local Administration Law 40. Law on Communal Activities 41. State Administration Law

(Official Gazette of FRY, No: 12/98, 13/98) (Official Gazette of RS, No. 44/95) (Official Gazette of RS, No. 47/2003) (Official Gazette of RS, No. 13/96) (Official Gazette of FRY, No. 29/96, 33/96, 29/97, 59/98, 74/99) (Official Gazette of FRY, No. 30/96, 59/98) (Official Gazette of RS, No. 42/91, 53/93, 67/93, 48/94, 42/98) (Official Gazette of RS, No. 17/92, 26/92, 50/92, 52/93, 53/93, 67/93, 48/94, 25/96) (Official Gazette of RS, No. 39/93, 44/93, 53/93, 67/93, 48/94) (Official Gazette of RS, No. 19/2004, 84/2004) (Official Gazette of RS, No. 6/2002) (Official Gazette of RS, No. 49/99, 27/2001, 100/2003) (Official Gazette of RS, No. 16/97, 42/98) (Official Gazette of RS, No. 20/92, 6/93, 48/93, 53/93, 67/93, 48/94, 49/99)

42. Act on principles of internal organization and systematization of work positions (Official Gazette of RS, No.78/2004) in the ministries, special organizations and governmental departments 43. Decision on founding of organization for protection of natural resources 44. Law on general administrative procedures 45. Law on administrative disputes 46. Non-Ionizing Radiation Law 47. Air Protection Act 48. Nature Protection Law 49. Law on protection and sustainable use of fish resources 50. Chemicals Management Law 51. Law on biocides 52. Noise and Vibration Law 53. Law on Package Waste (Official Gazette of RS, No. 88/92) (Official Gazette of FRY, No. 33/97, 31/2001) (Official Gazette of FRY, No. 46/96) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009) (Official Gazette of RS, No. 36/2009)

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2. Decrees
1. Decree on Natural Rarities Protection 2. Decree on Transport of Hazardous Substances by road and rail 3. Decree on determining the Programme for air pollution control in 2004 and 2005 4. Decree on bases, standards and conditions for classification of organizations and entities into certain categories of fire danger 5. Decree on categorization of watercourses 6. Decree on classification of water in inter-republic watercourses, international waters and waters of the Yugoslav coastal sea 7. Decree on types of activities and plants which can obtain integrated license 8. Decree on determining the programme of systematic testing of water quality 9. Decree on the content of the programme of measures for adjusting of the existing plant operation or activities to the stipulated conditions (Official Gazette of RS, No. 50/93, 93/93) (Official Gazette of RS, No. 53/2002) (Official Gazette of RS, No. 48/04) (Official Gazette of SRS, No. 58/89, 4/90) (Official Gazette of RS, No. 5/68) (Official Gazette of SFRY, No. 33/87) (Official Gazette of RS, No. 84/05) (Official Gazette of RS, No. 8/00) (Official Gazette of RS, No. 84/05)

10. Decree on criteria for determining of the best available techniques, for (Official Gazette of RS, No. 84/05) application of quality standards, as well as determining of emission limit values in the integrated license 11. Decree on Waste Oil Management 12. Decree on Principles and Procedures for asbestos-containing waste management (Official Gazette of RS, No. 60/08) (Official Gazette of RS, No. 60/08)

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3. Rule Books
1. Rule Book on environmental impact assessment of structures and works 2. Rule Book on conditions and criteria for preparation of environmental impact assessment of structures and works 3. Rule Book on categorization of protected natural resources 4. Rule Book on designation of protected natural resources 5. Rule Book on the register of protected natural resources 6. Rule Book on the documentation to be submitted with the request for issuing of the permit for import, export and transit of waste 7. Rule Book on the Criteria for Determining the Location and Design of Waste Landfills 8. Rule Book on the Method of Handling Wastes Having the Properties of Dangerous Substances 9. Rule Book on construction of the liquefied petroleum gas plant and on storage and pouring of liquefied petroleum gas 10. Rule Book on construction of the plant for flammable liquids and pouring of flammable liquids 11. Rule Book on construction of the tank stations for motor vehicles and on storage and pouring of fuel 12. Rule Book on storage of heating oil 13. Rule Book on allowed quantities of hazardous substances in soil and irrigation water and the test methods (Official Gazette of RS, No. 61/92) (Official Gazette of RS, No. 49/01) (Official Gazette of RS, No. 30/92) (Official Gazette of RS, No. 30/92, 24/94, 17/96) (Official Gazette of RS, No. 30/92 (Official Gazette of FRY, No. 69/99) (Official Gazette of RS, No. 54/92) (Official Gazette of RS, No.12/95) (Official Gazette of SFRY, No. 24/71) (Official Gazette of SFRY, No. 20/71) (Official Gazette of SFRY, No. 27/71) (Official Gazette of SFRY, No. 45/67) (Official Gazette of RS, No. 23/94)

14. Rule Book on establishing the networks of meteorological stations and working (Official Gazette of SFRY, No. 50/90) programmes of national interest 15. Rule Book on limit values, immission measuring methods, selection of sample spots criteria and data collecting 16. Regulations on emission limit values, methods and timeframe for measuring and data noting 17. Regulations on detailed conditions to be fulfilled by the professional organizations performing emission and immission measurements 18. Regulation on Permitted Level of Noise in the Environment 19. Regulations on methods for risk assessment against chemical accidents and environmental pollution, measures for preparation and remedy of consequences 20. Regulations on measures against natural disasters which must be covered by the technical documentation for construction of investment facilities (Official Gazette of RS, No. 54/92, 30/99) (Official Gazette of RS, No. 30/97, 35/97) (Official Gazette of RS, No. 5/02) (Official Gazette of RS, No. 54/92) (Official Gazette of RS, No.60/94)

(Official Gazette of RS, No. 34/78)

21. Regulations n limits of exposure to ionizing radiation sources for population (Official Gazette of SFRY, No. 31/89, 63/89) and personnel handling with ionizing radiation sources, on measurement of ionizing radiation exposure level for personnel handling with ionizing radiation sources and on checking of working environment contamination 22. Rule Book on the conditions for application of ionizing radiation sources in the medicine 23. Rule Book on the conditions to be met by the legal entities for systematic testing of the radionuclide content in the environment (Official Gazette of FRY, No. 32/98, 33/98) (Official Gazette of FRY, No. 32/98)

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24. Rule Book on the conditions for trading and use of radioactive materials of x-ray devices and other devices which generate ionizing radiation 25. Rule Book on limit values for ionizing radiation exposure 26. Rule Book on the conditions for trading with foodstuff and general use objects conserved by ionizing radiation 27. Rule Book on maximum limits of radioactive contamination of environment and on decontamination 28. Rule Book on methods and conditions for collecting, storage, recording and disposal of radioactive waste 30. Rule Book on methods and minimal number of samplings for testing of waste water quality

(Official Gazette of FRY, No. 32/98) (Official Gazette of FRY, No. 32/98) (Official Gazette of FRY, No.42/98) (Official Gazette of FRY, No. 9/99) (Official Gazette of FRY, No. 9/99)

29. Rule Book on the conditions to be met by the legal entities for decontamination (Official Gazette of FRY, No. 9/99) (Official Gazette of SRS, No. 47/83, 13/84)

31. Rule Book on methods for determining and maintenance of sanitary protection (Official Gazette of SRS, No. 33/78) areas and zones of the facilities for drinking water supply 32. Regulation on dangerous substances in water 33. Rule Book on the conditions to be met by the companies and other legal entities for testing of surface and ground water quality, as well as testing of waste water quality 34. Rule Book on water classification a. Regulations on the hygienic correctness of drinking water 35. Rule Book on the maximal quantities of hazardous substances in the animal food 36. Rule Book on methods for destruction of plants 37. Rule Book on the type of packages for pesticides and fertilizers and on destruction of pesticides and fertilizers 38. Rule Book on trading, import and sampling of fertilizers 39. Rule Book on trading, import and sampling of pesticides 40. Rule Book on the methods of organic plant production and collection of forest fruits and medicinal herbs as products of organic agriculture 41. Rule Book on the methods of organic cattle breeding 42. Rule Book on the conditions to be met by the legal entities for testing of the production process methods for obtaining of organic products (Official Gazette of SRS, No. 31/82) (Official Gazette of RS, No. 41/94, 47/94)

(Official Gazette of SRS, No. 5/68) (Official Gazette of FRY, No. 42/98, 44/99) (Official Gazette of SFRY, No. 2/90, 27/90) (Official Gazette of FRY, No. 67/2001) (Official Gazette of FRY, No. 35/99, 63/2001) (Official Gazette of FRY, No. 59/2001) (Official Gazette of FRY, No. 59/2001) (Official Gazette of FRY, No.51/2002) (Official Gazette of FRY, No. 51/2002) (Official Gazette of FRY, No. 67/2002)

43. Rule Book on the allowed quantities of dangerous and hazardous substances in (Official Gazette of FRY, No. 23/94) soil and irrigation water and on the test methods 44. Rule Book on the procedure of checking of equipment for operation and testing (Official Gazette of RS, No. 94/06) of working environment conditions 45. Rule Book on dangerous materials in waters 46. Rule Book on the conditions to be met by the companies and other legal entities for determining of surface and ground water quality, as well as waste water quality 47. Rule Book on methods and minimal number of samplings for testing of waste water quality 48. Regulations on the hygienic correctness of drinking water (Official Gazette of RS, No. 31/82) (Official Gazette of RS, No. 41/94, 47/94)

(Official Gazette of RS, No. 47/83) (Official Gazette of RS, No. 44/99)

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49. Rule Book on limit values, immission measuring methods, selection of sample spots criteria and data collecting 50. Regulations on emission limit values, methods and timeframe for measuring and data noting 51. Regulations on detailed conditions to be fulfilled by the professional organizations performing emission and immission measurements 52. Rule Book on the Method of Handling Wastes Having the Properties of Dangerous Substances 53. Rule Book on the content of requirements related to environmental impact assessment and on the content of requirements for determining the scope of the environmental impact assessment study 54. Rule Book on the content of environmental impact assessment study 55. Rule Book on the content, scope and methods for preparation of pre-feasibility study and feasibility study for construction of facilities 56. Rule Book on Activities of the Technical Commission for EIA study evaluation

(Official Gazette of RS, No. 54/92, 30/99) (Official Gazette of RS, No. 30/97, 35/97) (Official Gazette of RS, No. 5/02) (Official Gazette of RS, No. 12/95) (Official Gazette of RS, No. 69/05)

(Official Gazette of RS, No. 69/05) (Official Gazette of RS, No. 65/05) (Official Gazette of RS, No. 69/05)

57. Rule Book on the content, appearance and methods of keeping the public book (Official Gazette of RS, No. 69/05) on conducted procedures and decisions made related to environmental impact assessment 58. Rule Book on the procedures for public access, presentation and public discussion about the environmental impact assessment study 59. Rule Book on the content and methods for keeping the register of issued integrated licenses 60. Regulations on methods for risk assessment against chemical accidents and environmental pollution, measures for preparation and remedy of consequences 61. Rule Book on the Criteria for Determining the Location and Design of Waste Landfills 62. Regulation on Permitted Level of Noise in the Environment 63. Rule Book on the register of protected natural resources 64. Rule Book on categorization of protected natural resources 65. Rule Book on the technical conditions to be met by the fish pond 66. Regulations on the Requirements and Method of Classification, Packing, and Storage of Secondary Raw Materials 67. Rule Book on limit values for ionizing radiation exposure 68. Rule Book on the content of the documentation related to engineering and geological plans (Official Gazette of RS, No. 69/05) (Official Gazette of RS, No. 69/05) (Official Gazette of RS, No. 60/94)

(Official Gazette of RS, No. 54/92) (Official Gazette of RS, No. 54/92) (Official Gazette of RS, No. 30/92) (Official Gazette of RS, No. 30/92) (Official Gazette of SRS, No. 27/81) (Official Gazette of RS, No. 55/02) (Official Gazette of FRY, No. 32/98) (Official Gazette of SRS, No. 26/84)

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4. Decisions
1. Decision on defining of the organizations which fulfill the conditions for noise measurement in human environment 2. Decision on founding of the Nuclear Energy Committee 3. Decision on the conditions for location, construction, trial run, commissioning, exploitation and shut down of nuclear plant 4. Decision on preparation and the content of the report on nuclear safety and of other documentation necessary for checking of compliance with nuclear safety measures 5. Decision on methods and conditions for systematic testing of deposition of radionuclide in the vicinity of the nuclear plant 6. Decision on the conditions for trading and use of nuclear materials and the methods for classification of nuclear materials according to the material balance areas 7. Decision on the qualifications and the health condition of the persons dealing with ionizing radiation sources 8. Decision on registering of ionizing radiation sources and of the exposure levels of the population, patients and personnel handling with ionizing radiation sources 9. Decision on systematic testing of the radionuclide content in the environment 10. Decision on the conditions to be met by the legal entities performing the measurements for evaluation of ionizing radiation exposure of the personnel dealing with the radiation sources, patients and population 11. Decision on the criteria for evaluation of nuclear plant safety 12. Decision on the conditions to be met by the personnel employed in generation process control at the nuclear power plant and in process supervision (Official Gazette of SRS, No. 1/84, 44/84, 44/87, 51/91) (Official Gazette of FRY, No. 16/96) (Official Gazette of FRY, No. 42/97) (Official Gazette of FRY, No. 42/97)

(Official Gazette of FRY, No. 42/97) (Official Gazette of FRY, No. 42/97)

(Official Gazette of FRY, No. 45/97) (Official Gazette of FRY, No. 45/97)

(Official Gazette of FRY, No. 45/97) (Official Gazette of FRY, No. 45/97)

(Official Gazette of FRY, No. 2/98) (Official Gazette of FRY, No. 2/98)

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RATIFIED INTERNATIONAL CONTRACTS IN THE AREA OF ENVIRONMENTAL PROTECTION


International Contracts regulating the environmental protection
1. Law on ratification of the International Convention for the protection of birds (Official Gazette of SFRY - International Contracts, No. 6/73)

2. Decree on ratification of the Convention for protection against risks from benzol (Official Gazette of SFRY - International Contracts, poisoning No.16/76) 3. Law on ratification of the Convention for prevention and control of professional (Official Gazette of SFRY - International Contracts, risks caused by cancerous substances and agents No. 3/77) 4. Convention on swamps of international interest, especially as residences of swamp birds 5. Law on ratification of the Convention on protection of personnel against professional risks in the work environment caused by air pollution, noise and vibration 6. Law on ratification of the Convention on long-range transboundary air pollution 7. Law on ratification of the Protocol with the Convention on long-range transboundary air pollution and long-term financing of Cooperative Programme for monitoring and evaluation of long-range transboundary air pollution in Europe (EMEP) 8. Law on ratification of the Convention on Occupational Safety and Health and the Working Environment 9. Law on ratification of the Convention on Safety in the Use of Asbestos 10. Law on ratification of the Protocol on protection of Mediterranean Sea against pollution and land-based sources with Annexes I, II and III 11. Law on ratification of the Agreement for the Environmental Protection from Pollution of the Tisza River and Tributaries 12. Vienna Convention on protection of ozone layer, with Annexes I and II 13. Law on ratification of the Agreement for the Environmental Protection from Pollution of the Tisza River and Tributaries 14. Law on ratification of the European Convention on Protection of Architectural Heritage 15. Law on ratification of Montreal protocol on ozone-depleting substances 16. Law on ratification of the European Convention on Protection of Architectonic Heritage 17. Law on ratification of the UN Framework Convention on Climate Change, with Annexes 18. Law on ratification of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal 19. Convention on cooperation for Protection and Sustainable Use of Danube River (Official Gazette of SFRY - International Contracts, No. 9/77) (Official Gazette of SFRY - International Contracts, No.14/82) (Official Gazette of SFRY - International Contracts, No.11/86) (Official Gazette of SFRY - International Contracts, No. 2/87)

(Official Gazette of SFRY - International Contracts, No.7/87) (Official Gazette of SFRY - International Contracts, No. 4/89) (Official Gazette of SFRY - International Contracts, No.1/90) (Official Gazette of SFRY - International Contracts, No.1/90) (Official Gazette of SFRY - International Contracts, No. 1/90) (Official Gazette of SFRY - International Contracts, No. 1/90) (Official Gazette of SFRY - International Contracts, No. 9/90) (Official Gazette of SFRY - International Contracts, No.16/90) (Official Gazette of SFRY - International Contracts, No. 4/91) (Official Gazette of FRY - International Contracts, No. 2/97) (Official Gazette of FRY - International Contracts, No. 2/99) (Official Gazette of SCG - International Contracts, No. 4/2003)

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20. Amendments to Montreal protocol on ozone-depleting substances 21. Montreal protocol on ozone-depleting substances

(Official Gazette of SCG - International Contracts, No. 2/2004) (Official Gazette of SFRY - International Contracts, No: 16/90, Official Gazette of Serbia and Montenegro - International Contracts, No: 24/04) Espoo, 1991. Helsinki, 1992. Helsinki, 1992. Aarhus, 1998. Kyoto,1997. London, 1990. Copenhagen, 1992. Beijing, 1999. Rotterdam, 1998. Stockholm, 2001. Sarajevo, 2002. Carphatia, 2003. Basel, 1999.

22. Convention on environmental impact assessment in a Transboundary Context 23. Convention on the Transboundary Effects of Industrial Accidents 24. Convention on protection and use of transboundary watercourses and international lakes 25. Convention on access to information, public participation in decision-making and access to justice in environmental matters 26. Kyoto Protocol with UN Framework Convention on climate change 27. Amendments to the Vienna Convention on ozone-depleting Substances - London Amendment - Copenhagen Amendment - Beijing Amendment 28. Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade 29. Convention on Persistent Organic Pollutants POPs 30. Framework Agreement on the River Sava Basin 31. Convention on Protection and Sustainable Development 32. Protocol with Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal

33. Convention on Civil Liability for Damage Resulting from Activities Dangerous to Lugano, 1993. Environment 34. Protocol on Pollutant Release and Transfer Registers - PRTR 35. Protocol on the Reduction of Sulphur Emissions or their Transboundary Fluxes for at least 30 percent 36 Protocol concerning the Control of Emissions of Nitrogen Oxides or their Transboundary Fluxes 37. Protocol on Further Reduction of Sulphur Emissions 38. Protocol on heavy metals 39. Protocol on Reduction of Acidification, Eutrophication and Ground Ozone 40. The Convention on Non-Navigational Uses of International Watercourses Kiev, 2003. Helsinki, 1985. Sofia, 1988. Oslo, 1994. Aarhus, 1998. Gothenburg, 1999. New York, 1997.

41. Barcelona Convention for the Protection of Mediterranean Sea against pollution Barcelona, 1976. and protocols 42. Law on ratification of Energy Community Treaty SEE (Official Gazette of RS, No. 62/06)

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EU LEGISLATION
Council Directive 85/337/EC of 27 June 1985, Council Directive 97/11/EC of 3 March 1997, European Parliament Directive 2003/35/EC of 26 May and amending the Council Directive 85/337/EC, European Parliament Directive 1999/32/EC of 26 April 1999 related to reduction in the sulphur content of certain liquid fuels and amending the Directive 93/12/EC, European Parliament Directive 2001/80/EC of 23 October 2003 and Council Directive 79/409/EC of 2 April 1979

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ANNEX II

ACTION PLAN OF THE PUBLIC ENTERPRISE ELECTRIC POWER INDUSTRY OF SERBIA FOR ENVIRONMENTAL PROTECTION (ACTIVITIES AND MEASURES)
Period 20092015
ELECTRIC POWER INDUSTRY OF SERBIA (thermal energy sector)

AIR AND SOIL PROTECTION 2009 -2014 Activity/measure 1. Reconstruction or replacement of the existing electrostatic precipitators at TPPs within EPS (ELV = 30 - 50 mg/Nm3) with installation of continuous flow and flue gas quality measurement Unit TPP Nikola Tesla A6 TPP Nikola Tesla A3 Implementation time 2010 2010-2011

TPP Nikola Tesla B1-B2 TPP Nikola Tesla B3 TPP Kolubara 5 TPP Kolubara B1-B2 PP Kostolac B1-B2 PP Morava

2010-2012 2010-2014 2008-2009 2010-2014 2009-2012 2010-2011

AIR AND SOIL PROTECTION 2006 -2013 Activity/measure 2. Application of primary measures for reduction of NOx emission (ELV = 200 mg/Nm3) Unit TPP Nikola Tesla 3-6 Implementation time 2010-2014

TPP Nikola Tesla B1-B2 PP Kolubara 5 PP Morava PP Kolubara B1-B2 PP Kostolac 1-2 PP Kostolac B1-B2

2012-2013 2014 2011-2015 2010-2014 2011-2012 2011-2015

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Estimated funds Comment/financing (x 1000 euro) 6,000 IPA Fund 5,000 Financing sources are not determined, the possibilities are as follows: 1. EPS own funds 2. IPA Funds 3. Credits 4. National Investment Plan (NIP) 5. Environmental Protection Fund of the Republic of Serbia 12,000 IPA Fund for unit B1 in 2012 10,000 During construction 5,000 Environmental Protection Fund of the Republic of Serbia 10,000 During construction 10,000 During construction of flue gas desulphurization system (Environmental Protection Fund of the Republic of Serbia + credit/IPA) 4,000 Environmental Protection Fund of the Republic of Serbia /IPA

Estimated funds Comment/financing (x 1000 euro) 24,000 Within the framework of major overhauls replacement of mills and burners, financing sources are as follows: 1. EPS own funds 2. IPA Fund 3. SECO SWISS 24,000 4,000 4,000 16,000 12,000 12,000

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AIR AND SOIL PROTECTION 2006 -2017 Activity/measure 3. Erection of flue gas desulphurization plant (ELV =200/400 mg/Nm3) Unit PP Kostolac B1-B2 TPP Nikola Tesla B1-B2 TPP Nikola Tesla B3 TPP Nikola Tesla 3-6 Implementation time 2009-2012 2011-2014 2010-2014 2013-2017

PP Kolubara B1 and B2 4. Introducing of new technology for ash and slag transport and disposal TPP Nikola Tesla

2010-2014 2010-2013

PP Kolubara 5 TOTAL

2008-2009

WATER PROTECTION 2006-2010 Activity/measure 1. Studies: Waste water balance of TPPs and CHPs within EPS 2. Construction of plants for oily waste water treatment Unit TPP Nikola Tesla TPP Nikola Tesla B PP Kostolac B TPP Nikola Tesla TPP Nikola Tesla B 3. Construction of plants for waste water treatment 4. Survey programme Survey of cross-profiles of Danube, Sava, Tisza and tributaries. Renewal of piesometer network in the coastal part, route measurements with testing of quality of water, biological mud and sediment (once a year), anti-erosion and flood protection, solving of the issue of floating islands, preparation of pollutant register, etc. MB Kolubara HPP Djerdap 1 and 2 HPP Pirot, HPPs Vlasinske HPPs Vrla 1, Vrla 2, PAP Lisina HPP and RHPP Bajina Basta, HPP Zvornik and HPP Elektromorava (HPP Medjuvrsje and HPP Ovcar Banja).

TOTAL
* Breakdown of investments related to the waste is given without solving the issue of ash and slag disposals, as well as gypsum disposals.

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Estimated funds Comment/financing (x 1000 euro) 126,000 Environmental Protection Fund of the Republic of Serbia 210,000 IPA Fund 120,000 During construction / Strategic partner 200,000 Financing sources are not determined, the possibilities are as follows: 1. EPS own funds 2. IPA Funds 3. Credits 4. National Investment Plan (NIP) 5. Grants 120,000 During construction / Strategic partner 40,000 Financing sources are not determined, the possibilities are as follows: 1. EPS own funds 2. IPA Fund 3. Credits 4. National Investment Plan (NIP) 5. Grants 8,000 Environmental Protection Fund of the Republic of Serbia /EPS 996,400

Implementation time in progress in progress 20062007 2009-2011 2007-2008

Estimated funds (x 1000 euro) 50 500 2,000 1,500

2007-2012

6,500

11,500

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WASTE 2006-2010 Activity/measure 1. preparation of the basic documents and mechanisms for waste management preparation of waste register preparation of the information system for waste management bringing into compliance with JUS - ISO 14000 further activities on recycling and valorization of waste into secondary raw material: - ash and slag - ion resins, - glass and mineral wool - waste oils - accumulators and batteries products of the future technologies (desulphurization, denitrification, waste-sediment produced during the process of waste water cleaning etc.) 2. Solving of the problem of electrical devices filled with RSV oils in the PE EPS (pyralene oil) IPA Unit

EPS facilities

EPS facilities

MONITORING 2007-2010 Activity/measure 1. Continuous monitoring of gas and particulate matter emission in flue gases Unit TPP Nikola Tesla TPP Nikola Tesla B PP Kostolac B CHP Novi Sad CHP Zrenjanin CHP Sremska Mitrovica 2. Modernization of the monitoring and control system (EPS SECO SWISS) TOTAL TPP Nikola Tesla B

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Implementation time

Estimated funds (x 1000 euro)

2006-2010

7,000.0

2010-2011

6,000,000

Implementation time

Estimated funds (x 1000 euro) 2,200.0

2008-2009

900.0 200.0 100.0 50.0

2009-2012

28,000.0 31,350.0

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ENVIRONMENTAL PROTECTION FOR PE EPS MINES 2006 -2015 1 2 3 4 Activity Subject Study of global perceiving of the implemented solutions in recultivation of the open pits of Kolubara and Kostolac Basin, with the possible directions of further development Introduction of a selective soil excavation and disposal on EPS open pits - I phase Study of defining of final limits for the open pit ''amnava-East'' after the end of coal exploitation with the purpose of recultivation Recultivation and revitalization of the area of the OP Klenovik, TPP Kostolac, for the purposes of open pit shut down (Basic design for shut down of the open pit Klenovik with feasibility study and environmental impact assessment) Recultivation and revitalization of the area of the OP Cirikovac, TPP Kostolac, for the purposes of open pit shut down (Basic design for shut down of the open pit Cirikovac with feasibility study and environmental impact assessment) Preparation of the register of soil pollutants in the Kolubara region (under the influence of EPS facilities) - I phase Technical and economic analysis of use of coal dust and organic fertilizers in the procedures of EPS ash and slag disposal recultivation, II phase for TPP Kostolac Preparation of the register of soil pollutants in the Kostolac region (under the influence of EPS facilities) - II phase Preparation of plan bases (agricultural and forest) in the mine basins Study of soil quality control Reionization of recultivated surfaces under the EPS influence, several phases Study for optimization of the disposal technology for overburden and ash and slag in the available space of open pits Preparation of the monitoring system for EPS soil Introduction of the information system for recultivation, revitalization and spatial planning of exploitation fields of EPS mines - I phase General design for the possibilities of use of return hot waters of thermal power plants Remediation pilot plant Valorization of the waters from the pre-drainage and drainage system of the EPS open pits (supply of drinking water, industrial water and irrigation)

5 Scientific research (SR) and investment-technical documentation (IT)

6 7 8 9 10 11 12 13 14 15 16 17

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Period 2008 -2009 2008 -2009 2007 - 2008 2008 - 2011

Fund Comment 149,500 EPS funds SR 437,500 EPS funds IT 87,500 EPS funds SR 168,500 EPS funds IT

2009 - 2011

168,500 EPS funds IT

2008 - 2009 2007 - 2008 2011- 2012 2008 - 2012 2012 - 2015 2009 - 2014 2008 - 2011 2010 - 2013 2010 - 2012 2008 - 2009 2009 - 2015 2012 - 2013

225,000 EPS funds SR 97,500 EPS funds IT 225,000 EPS funds SR 310,000 EPS funds IT 125,000 EPS funds SR 205,000 EPS funds SR 125,000 EPS funds SR 180,000 EPS funds SR 80,000 EPS funds IT 125,000 EPS funds SR 2,000,000 EPS funds IT 112,500 EPS funds SR 4,822,000

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ENVIRONMENTAL PROTECTION FOR PE EPS MINES - Mining Basin Kolubara 2006 -2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 maintenance of the investment Activity Subject Organization of green surfaces on 34,5 ha Basic design for organization of recultivated surfaces within the Field D as a part of protection area within the design General design for organization of recultivated surfaces within the Field D as a part of protection area within the design Basic design for organization of aquifer ecosystems of the areas as wholes General design for organization of aquifer ecosystems of the areas as wholes Agrotechnical maintenance of the experimental and exploitation fruit garden of 15,5 ha, as well as preparation of the design for filling of the fruit garden, General Design Production on farming surfaces and preparation of the design for introducing of new cultures Forestry activities within the framework of forestry financial planning Primary technical recultivation Secondary technical recultivation on 60 ha Construction of access roads around recultivated surfaces in the length of 1500m and width of 4m Control of waste water quality on open pits and analysis of quality of waste, ground and river waters Control of drinking water quality Control of drinking water quality Control of ionizing radiation sources Control of air quality measurement of emission and immission in the impact area of Open pits Control of soil quality in the impact area of Open pits Control of soil quality: Preparation of the Study with laboratory tests. Remedy of polluted soil - Basic Design, performance of works Continuous air quality control - measurements of emission and immission in the impact area of Kolubara Prerada Control of operation efficiency of the waste water treatment plant - analysis of quality of waste, treated, river and ground waters Design for using of mud generated in the process of waste water treatment of the plant Prerada as an organic mineral fertilizer in the process of recultivation of CB Kolubara. General Design - Performance of works Basic design for aforresting of rapidly-growing cultures General design for aforresting of rapidly-growing cultures Aforresting of rapidly-growing cultures - Performance of works Basic design for construction of wind shield zones in the impact area of mining machines in the vicinity of settlements General design for construction of wind shield zones in the impact area of mining machines in the vicinity of settlements Performance of works on for construction of wind shield zones in the impact area of mining machines in the vicinity of settlements

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Period 2007-2012 2008-2010 2009-2010 20082009 2009-2010 2007-2012 2007-2012 2007-2012 2007-2012 2007-2012 2007-2010 2007-2012 2007-2012 2007-2012 2007-2012 2007-2012 2007-2012 2007-2012 20082012 2009-2012 2008 2007 2008 2009-2012 2007 2008 2009-2012

Fund Comment 814,818 8,025 16,049 7,407 20,370 88,890 185,184 740,742 888,888 962,964 88,888 74,076 148,146 222,222 59,262 370,374 37,038 74,076 481,482 44,442 55,556 2,469 4,321 49,383 1,852 3,704 18,519

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ENVIRONMENTAL PROTECTION FOR PE EPS MINES - Mining Basin Kolubara 2006 -2012 28 29 30 31 32 33 34 35 36 37 38 39 40 41 TOTAL Activity Subject Design for sanitary waste water treatment at Kopovi site. General design. Execution Analysis on possibilities of use of forest biomass for briquetting, heating and construction material Mobile laboratory for monitoring of environment, non-ionizing radiation and underground installations General Design for the plant for producing of organic fertilizers from sedimented materials. Processing Execution Study for valorization of rare metals from ash on the basis of methods for enrichment of mineral resources and remediation maintenance of the investment Study of the possibilities for growing and use of medical herbs Study for valorization of rare metals from ash on the basis of methods for enrichment of mineral resources and remediation Study of possibilities for producing of biodiesel by growing of rape and soy bean General Design for degradation of odour pollutants from the drying plant with execution Preparation of the General Design for water protection and improvement of waste water treatment at Kolubara Prerada, execution Remedy of the existing devices for sanitary water treatment Biodisk and Putox Accidents from environmental aspect at Kolubara Prerada-Vreoci Design for mini-jet system on the wagons for dry coal and coal for TENT Implementation of Environmental Action Plan for the area of the open pit Tamnava-West Field of the Mining Basin Kolubara

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Period 2008 2008 2008-2012 2008-2012 2008-2012 2008-2012 2007-2012 20072008 2008-2009 2008 2007-2012 2008 2008 2009

Fund Comment 49,383 4,321 1,049,383 290,125 80,245 133,332 96,294 133,332 870,370 555,556 24,961 49,383 49,383 8,000,000 16,854,945

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ENVIRONMENTAL PROTECTION FOR PE EPS MINES - Mining Basin Kostolac 2006-2012 1 2 3 4 Activity Subject Preparation of the technical documentation Monitoring of environmental impact of the company Recultivation activities - OP Klenovnik Agrobiological recultivation of the internal disposal (10+10+10 ha) Technical and biological recultivation of dikes (10 ha) Implementation of the investment plan for environmental protection related to shut down of the open pit Klenovnik of the Kostolac Mining Basin Recultivation activities - OP Cirikovac 6 7 8 9 10 11 12 13 14 TOTAL maintenance of the investment 5 Technical and biological recultivation of disposal dike slopes (15+20 ha) Technical and biological recultivation of the external disposal Mlava Mogila (15+30+15+ 15ha) Technical and biological recultivation of the external disposal (15 ha) Technical and biological recultivation of the internal disposal (10+10+15+ 15 ha) Biological recultivation of the internal disposal slopes (15 ha) Implementation of the investment plan for environmental protection related to shut down of the open pit Cirikovac Construction of ash and slag disposal TPP Kostolac B within the available surface of the open pit Cirikovac Recultivation activities - OP Drmno Technical and biological recultivation of the internal disposal (15+15+15+ 15 ha) Drainage of the open pits Drmno Kostolac Basin and Field B Kolubara Basin Technical and biological recultivation of the external disposal (20+20+ 20+ 20 ha) Biological recultivation of the internal disposal slopes (15+ 10 ha)

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Period 2007-2011 2007-2012 2008-2010 2012 2008-2012

Fund Comment 117,647 152,940 282,354 164,706 40,000,000 552,941

2011-2012 2009-2010 2008-2010 2009 2009 2009-2013 2009 2007-2012 2008-2010 2008-2012 2007-2012

788,235 329,412 317,647 235,294 235,294 130,000,000 15,000,000 882,353 30,000,000 1,505,884 147,059 220,194,118

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The most important environmental protection projects and implemented funds 20022007

AIR PROTECTION 2002 -2009. INVESTED FUNDS Thermal Power Plant Electrostatic precipitator, unit 5 TPP Nikola Tesla 2 1 4 PP Kolubara PP Kostolac TOTAL 5 1 A2 Year of reconstruction or replacement 2004 2005 2006 2007 2008-2009 2005 2006

SOIL PROTECTION 2002-2007 Thermal Power Plant PP Nikola Tesla B PP Kolubara PP Kostolac PP Kostolac B TOTAL

Introducing of new technology for ash and slag transport and disposal Invested funds Year of reconstruction or replacement 2007-2009 2008-2009 2008-2010 2007-2009 Funds Comment (x 1000 euro) 27,000 EAR grant 10,000 Environmental Protection Fund of RS 13,000 KfW credit 23,000 EBRD credit 73,000

MONITORING 2002-2008. CONTINUOUS MEASUREMENT OF GAS AND PARTICULATE MATTER EMISSION IN FLUE GASES Thermal Power Plant PP Nikola Tesla A PP Kostolac PP Kostolac B TOTAL 2002-2007 Year of reconstruction or replacement Funds Comment (x 1000 euro) 500.0 390.0 890.0 EPS funds

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Funds (x 1000 euro) Comment 5,000 EAR grant 5,000 EPS funds / Ministry of science and environmental protection of the Republic of Serbia 5,000 EPS funds 5,000 EPS funds / Environmental Fund of the Republic of Serbia 5,000 Environmental Protection Fund of RS 5,000 EAR grant 5,000 EAR grant 35,000

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ANNEX III

ACTION PLAN OF THE ELECTRIC POWER INDUSTRY OF SERBIA FOR ADAPTATION TO CLIMATE CHANGES
INTERSECTOR COMMON QUESTIONS
Activity/measure 1. Initiating and implementation of projects for preparation of national reports and other projects with the financial support of GEF and other financial mechanisms 2. Training of personnel for preparation of the design documentation in the area of climate changes 3. Preparation and implementation of the development programmes of key institutions which are directly dealing with the activities in the area of climate changes 4. Initiating of Serbia involvement in SMALL GRANT Programme of GEF 5. Establishing of forum for discussing the issues in the area of climate changes (taking part in European and global forum network) 6. Preparation and implementation of mid-term programme for implementation of Convention 7 Preparation of inventory of greenhouse gases - GHG. 8 Application of the latest scientific and technological achievements in the energy sector to the existing and new generating, processing and transmission capacities, rational use of energy and increasing of energy efficiency, using of renewable energy sources 9 Preparation of educational programme and propagation of significance of sustainable development strategy from the aspect of environmental protection through activities which would involve all experts dealing with the issues of energy sector development 10. Implementation of revitalization programme for all obsolete energy generation capacities in accordance with their initial technical properties with the possibility of improvement of technical and operation parameters 11. Bringing into functional state and improvement of the existing systems for protection for reducing of emissions of hazardous substances from the existing thermal power capacities 12. Indirect influence on reduction of emission of hazardous substances into atmosphere though activities on rationalization of energy consumption, i.e. increasing of energy efficiency of households by bringing the electricity and heat price to the economic level and establishing of realistic price parities for base fuels, improving of the existing central heating system and further development of this system, development of gas line network which will enable substitution of electricity use, stimulating of use of more efficient devices in households 13. Reduction of losses in transmission and distribution, in the first line of electrical and thermal power 14. Conducting of all-inclusive research on development of renewable energy sources Exploring of hydroelectric potential, energy potential of sun and wind and geothermal energy 15. Conducting of research on influence of mines, coal storages and disposals and coal processing plant on environmental pollution and especially on emission of greenhouse gases 16. Application of Carbon Capture Storage (CCS) technology in the thermal power plants of the Electric Power Industry of Serbia
Comment: implementation time - Short-term 2009-2011; Mid-term 2012-2015

Institution for implementation

Responsible ministries and other authorities directly involved in the implementation of UNFCCC and Kyoto Protocol with the Electric Power Industry of Serbia.

Ministry responsible for environmental protection in the Republic of Serbia , Ministry of energy and mining, R. of Serbia; with participation of Electric Power Industry of Serbia Electric Power Industry of Serbia and EMS

Ministry responsible for environmental protection in the Republic of Serbia , Ministry of energy and mining, R. of Serbia Energy Agency (AERS), Agency for energy efficiency, mines, Electric Power Industry of Serbia, Petroleum Industry of serbia (NIS), Union of heating plants Responsible Ministry and public enterprises from the energy sector Electric Power Industry of Serbia Government of the Republic of Serbia; Ministry of energy and mining, R. of Serbia and Electric Power Industry of Serbia

Government of the Republic of Serbia; Ministry of energy and mining, R. of Serbia, Electric Power Industry of Serbia and Serbian Power Transmission Company (EMS) Responsible ministries and Electric Power Industry of Serbia, Hidro-meteorological Institute of Serbia (RHMZ)

Responsible ministries, PE PEU (Underground coal exploitation), Companies for exploitation of coal, Electric Power Industry of Serbia and respective scientific research institutions! Responsible ministries, Electric Power Industry of Serbia and respective scientific research institutions!

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(ACTIVITIES AND MEASURES)


Implementation time Mid-term and long-term Short-term and mid-term Mid-term Short-term Short-term Mid-term Short-term and long-term Long-term Fulfillment of responsibilities in accordance with UNFCCC and Kyoto Protocol and evaluation of the possibility for participation in flexible mechanisms of Kyoto Protocol Reducing of air pollution in local, regional and global proportions and optimization of consumption of fossil fuel reserves Personnel strengthening of institutions in the energy sector from the aspect of climate protection and fulfillment of accepted international responsibilities Comment Basis for implementation of the Framework Strategy of Serbia and fulfillment of the requirements from UNFCCC and Kyoto Protocol

Short-term and mid-term

Mid-term and long-term Mid-term and long-term Mid-term and long-term

Reduction of GHG emission and reduction of other pollutants Air and climate protection Reduction of GHG emission and reduction of other pollutants

Long-term Mid-term and long-term

Reduction of GHG emission and reduction of other pollutants; air and climate protection Intensifying of use of sustainable energy sources; Reduction of GHG emission; air and climate protection

Reduction of GHG emission and reduction of other pollutants; air and climate protection Short-term Reduction of GHG emission and reduction of other pollutants; air and climate protection

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ANNEX IV

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THE GREEN BOOK OF THE ELECTRIC POWER INDUSTRY OF SERBIA

Project proposals *
1. 2. 3. 4. 5. 6. TPP NIKOLA TESLA B (UNIT B1 - B2) - FLY GASES DENITRIFICATION TPP KOSTOLAC B (UNIT B1 - B2) - FLY GASES DENITRIFICATION TPP NIKOLA TESLA A (UNIT A3 - A6) - FLUE GAS DESULPHURISATION PLANT TPP NIKOLA TESLA B (UNIT B1 B2) - FLUE GAS DESULPHURISATION PLANT TPP NIKOLA TESLA A - RECONSTRUCTION OF ASH AND SLAG HANDLING SYSTEM TPP MORAVA SVILAJNAC - ELECTROSTATIC PRECIPITATOR

* available on CD

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ABBREVIATIONS GLOSSARY OF TERMS LIST OF TABLES

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ABBREVIATIONS
BAT BoD CDM CER CHP DG Environment DG ren DNA EA EAR ELV EMS EMS EPS ERU EU FGD GDP GEF GHG ICPDR IPA IPCC IPPC JI KP MIPD NEAP NEPP OECD OPM PCB PE PIESC PM SEE TPP UNECE UNEP UNFCCC WMO best available techniques Board of directors Clean Development echanism Certified Emission Reduction combined heat and power plant European Commission Directorate-General for the Environment European Commission Directorate-General for Energy and Transport Designated National Authority Economic Association European Agency for Reconstruction emission limit value Environmental Management System - ISO 14001 Elektromrea Srbije/Serbian Power Transmission Company Electric Power Industry of Serbia Emission Reduction Unit European Union Flue Gas Desulphurization gross domestic product Global Environment Facility greenhouse gases International Commision for Protection of Danube River Instrument of pre-accession assistance Intergovernmental Panel on Climate Change Integral Prevention Polution Control Joint Implementation Kyoto Protocol Multiannual Indicative Planning Document - MIPD National Environmental Action Plan National Environmental Protection Programme Organization for Economic Co-operation and Development Open Pit Mine polychlorinated biphenyls Public Enterprise Plan for implementation of energy sector strategies particulate matter South-eastern Europe Thermal power plant United Nations Economic Commission for Europe United Nations Environment Programme United Nations Framework Convention on Climate Change World Meteorological Organization

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GLOSSARY OF TERMS
Accident sudden and uncontrolled event or sequence of events, which occurs due to uncontrolled release, pouring or dissipation of hazardous substances during manufacture, exchange, use, transportation, processing, storaging, disposal or long lasting inadequate storaging. This term does not include the following: military plants; nuclear accidents; genetically modified organisms; transport of hazardous substances by pipelines, including pumping stations; accidents during survey and exploitation of mineral resources; damaging of dams, with the exception of the consequences of industrial accidents caused by such damage. legal achievement of the EU which comprises (in addition to the founding contracts) over 20,000 regulations from the secondary legislation and 4,000 court sentences; represent the most efficient and the most advanced phases in the development of certain activities and the method of their performance which enables more favorable application of certain techniques for complying with the emission limit values which were designed so as to prevent or, if not feasible, to reduce the emissions and environmental impact; category of instruments which are intended to influence the behaviour of economic factors by application of financial incentives in order to improve the profitability of environmental protection and natural resources management; releasing of pollutants or energy from individual and/or diffuse sources into environment and its media; capacity of the environment to admit a certain quantity of pollutants without disturbing the balance and causing of irreparable environmental damage; state of the environment expressed through physical, chemical, biological, aesthetic and other indicators; concentration of the pollutants and level of energy in the environment which expresses environmental quality; includes the plants and technologies for prevention of pollution or pollution treatment at the end of the process (waste water treatment plants, sanitary disposals, technologies for reduction of air pollution, traffic improvement etc.); registry of systematized information and data on pollutants of environmental media with the data about their location, generation processes, properties, material balances on input and exit of raw material, semiproducts and products, treatment plants, waste and pollutant flows and places of their discharge, treatment and disposal; process of cleaning or using of other methods for removal of pollution from the location to the level which is safe for future use;

Acquis communitaire Best available techniques Economic instruments Emission Environmental capacity Environmental quality Immission Infrastructure for environmental protection Pollutant Registry

Sanation, i.e. remediation

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LIST OF TABLES
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Installed output of the thermal power plants (net output) in MW Thermal power plant operating indicators Coal generation in 2008 Electrical power generation in 2008 Emissions from the plants of the PE Electric Power Industry of Serbia Hazardous substances quantities EA TPPs Nikola Tesla - Emission of hazardous substances periodical measurements EA TPPs Nikola Tesla - Emission of hazardous substances at annual level EA TPPs Nikola Tesla - Water quantities EA TPPs Nikola Tesla - List of waste EA TPPs-OPMs Kostolac - Emission of hazardous substances EA TPPs-OPMs Kostolac - Emission of hazardous substances at annual level EA TPPs-OPMs Kostolac - Water quantities EA TPPs-OPMs Kostolac - Waste EA Pannonian CHP Plants - Emission of hazardous substances periodical measurements EA Pannonian CHP Plants - Emission of hazardous substances at annual level EA Pannonian CHP Plants - Water EA Pannonian CHP Plants - Waste page 15 17 41 43 46 53 55 58 59 62 67 69 69 72 74 76 76 78

Annex I
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 General regulations and laws Decrees Rule Books Decisions International Contracts regulating the environmental protection EU legislation 109 111 112 115 116 118

Annex II
Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Air and soil protection 2009-2014 Air and soil protection 2006-2013 Air and soil protection 2006-2017 Water protection 2006-2010 Waste 2006-2010 Monitoring 2007-2010 Environmental protection for PE EPS mines 2006 -2015 Environmental protection for PE EPS mines - Mining basin Kolubara 2006 -2012 Environmental protection for PE EPS mines - Mining basin Kostolac 2006-2012 Air protection 2002 -2009. Invested funds Soil protection 2002-2007 Monitoring 2002-2008. Continuous measurement of gas and particulate matter emission in flue gases 120 120 122 122 124 124 126 128 132 134 134 134

Annex III
Table 1 Intersector common questions 138

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ABOUT AUTHORS

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Name E-mail Date of birth

Mihajlo Gavric mihajlo.gavric@eps.rs 12th September1950

WORK EXPERIENCE
Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector 2004 - today Electric Power Industry of Serbia, 412 Vojvode Stepe St, Belgrade, Serbia Head Department for Strategy and Investments, Sector for Environmental Protection Director of Sector for Environmental Protection Environmental Management for whole Electric Power Industry of Serbia 2002 - 2004 Ministry for protection of natural Resources and Environment of Republic of Serbia, 91 Dr Ivana Ribara St, Belgrade, Serbia and Montenegro State environmental policy other issues related to responsibilities of the Ministry for protection of natural Resources and Environment of Republic of Serbia Deputy Minister All environmental issues 2001-2002 Republic hydrometeorological institute of Serbia Belgrade, 66 Kneza Vieslava St, Belgrade, Serbia and Montenegro Environmental and Hydrology Sector and other issues related to responsibilities of the Republic hydrometeorological institute of Serbia Deputy director Environmental and Hydrology Sector 2001 Federal hydrometeorological institute, 6 Biraninova St, Belgrade, Serbia and Montenegro Environmental and Hydrology Sector and other issues related to responsibilities of the Federal hydrometeorological institute of Yugoslavia Assistant director Issues related to responsibilities of the Environmental and Hydrology Sector

Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

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Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

1991-2000 Federal hydrometeorological institute, 6 Biraninova St, Belgrade, Serbia and Montenegro Waterforecast department Head of waterforecast department Issues related to responsibilities of the Waterforecast department on the Federal level 1984-1991 Federal hydrometeorological institute, 6 Biraninova St, Belgrade, Serbia and Montenegro Hydrology Sector Head of research group in waterforecast department Water Forecast, modeling etc. 1981-1984 Belgrade Federal hydrometeorological institute Research specialist, group in waterforecast department Water Forecast, modeling etc

EDUCATION AND TRAINING


Dates (from to) Name and type of organisation providing education and training Principal subjects/occupational skills covered Title of qualification awarded Level in national classification (if appropriate) April May 1994 Ministry for foregn affers and Ministry of agriculture of Israel and World Meteorological Organization (WMO) 3rd International Post Graduate Course in Hydrometeorology, Tel Aviv , Israel Specialist in Hydrometeorology -International expert VII

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Professional experience record


Country HOMS Program - 3 two national component (WMO) Danube Commision, Budapest (National activities in part of waterforecasting on the Danube river) DBAM (Danube Basin Alarm Model- Yugoslav part) - ICPDR (International Commission for Protection Danube River) WHYCOS (MEDHYCOS, DANUBE HYCOS) Long-range program intended specially for monitoring water quality of the Danube and it's tributaries, including itinerary research BTF National Report for water BTF - FR Yugoslavia The consequences of NATO bombing for the environment in Yugoslavia ICPDR - JDS (Joint Danube Syrway) ICPDR - JDS (Joint Tisa Syrway) ICPDR MLIM Member of Expert group Development of national Environmental Information System for Serbia - REReP projectNational Report for Serbia Report on State of the Environnment in 2000 and priorities in 2001 for Serbia Low on the Environmental Protection Co-operation for the Protection and Sustainable Use of the River Danube - Ratification Low for Federal Republic of Yugoslavia Environmental performance review of the Federal Republic of Yugoslavia - UNCC Long-range program intended specially for monitoring water quality of the Sava and it's tributaries, including itinerary research Long-range program intended specially for monitoring water quality of the Tisa and it's tributaries, including itinerary research Development of Environmental Legislation in Serbia and Montenegro (Finish Project) Project Manager Development of Environmental Legislation in Serbia and Montenegro - IPPC (Integrated Pollution and Prevention and Control) Development of Environmental Legislation in Serbia and Montenegro - EIA (Environmental Impact Assesment) Development of Environmental Legislation in Serbia and Montenegro - SIA (Strategic Impact Assesment) Development of Environmental Legislation in Serbia and Montenegro - risk assessment Report on State of the Environnment in 2002 for Serbia All Environmental programs related to EPS Date 1985-1995 1985 -2000 1996 1997 1998 1999 2000 2001 2001 2001 2001 2001 2001 2002 2002 2002 2002 2002-2003 2002-2003 2002-2003 2002-2003 2002-2003 2003 2004 -2005

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Name E-mail Date of birth

Aleksandar Vlaji aleksandar.vlajcic@tent.rs 30th July 1955

WORK EXPERIENCE
Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities 2007 - 2009 EA Thermal Power Plants Nikola Tesla, Obrenovac, Serbia Investment, production, maintenance Manager deputy Utility management Management of the mid and long term planning for investment, production and maintenance 2004 - 2007 The Ministry of Energy and Mining of Republic of Serbia, 36 Kralja Milana St., Belgrade Energy and power sector; Public administration Assistant Minister Negotiation with EC about ECSEE TREATY Government team leader Management of the reforms in power sector and on creating conditions for establishing the liberalized electricity market in Serbia 2001 - 2004 Head Department for Development and Investments, Electric Power Industry of Serbia (EPS), 412 Vojvode Stepe St., Belgrade Power Sector Assistant Manager for Investments Management of the huge investment works on building and rehabilitation of the objects within EPS 1990-2001 Thermal Power Plant Nikola Tesla, Obrenovac, Serbia Power Sector production and maintenance Manager of the operation and maintenance plant service Overhaul planning and surveillance of the of boilers, turbines and steam pipeline Operation and maintenance leading engineer

Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

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Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

1983-1990 Thermal Power Plant Nikola Tesla, Obrenovac, Serbia Power Sector, Investment Operation & Maintenance Engineer, Commissioning Reconstruction and revitalization of the PPs sets Maintenance System implementation Boiler system and cooling water system Team manager Fan system Team manager Planning and supervising maintenance of the Auxiliary system Erection and commissioning of the new B1 and B2 600 MW units, fired by lignite Reliability and Availability improvement Project Training trip to Finland on using low efficiency coal, organized by UN Committee for Coal 1983 Mainoprojekt, Belgrade Energy Sector Project Engineer District heating of the city of Pozarevac Project - member of the team Transferring 210MW turbine regime Project - member of the team

Dates (from to) Name and address of employer Type of business or sector Occupation or position held Main activities and responsibilities

EDUCATION AND TRAINING


Dates (from to) Name and type of organisation providing education and training Principal subjects/occupational skills covered Title of qualification awarded Level in national classification (if appropriate) 1974-1980 Graduated from the Faculty of Mechanical Engineering of the University of Belgrade in 1981 Graduated Mechanical Engineer Master of science VII

ADDITIONAL INFORMATION

Member of the SMEITS since 1987 Member of the ASME since 1991 Publications: Prof. dr. Vera Sijacki- Zeravcic, dr. Biljana Andjelic, dipl. ing. Gordana Bakic, dipl. ing. Dusan Milanovic, dipl. ing. Aleksandar Vlajcic, dipl. ing. Petar Maksimovic The designed and realistic quality of material and its influence on reliable operation of power plant components, Elektroprivreda 4 / 2001 A. Vlajcic, D.Popovic: Ash handling system and unit availability of 600MW lignite fired unit, Budapest, Conference on Pneumatic Transport 1990 A. Vlajcic, D.Popovic: Ash Handling, operation and maintenance, Elektroprivreda, No 10-13 1992

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Bratislav eperkovi was born in Kraljevo 1962. He has a PhD in medical science. From the period 1996 2003, he worked on the international projects on recycling and waste management for several companies, including ALBA international, Rethmann and ALT VATER-SULO GROUP in Serbia, Germany, and other countries in the region at the position of Executive and Corporate Development Manager. He is an expert in EU integration and energy diplomacy. Over the past 5 years he has been engagen in the EU integration process, in the development of the PEOP and White Stream projects and is one of the architects of the Energy community treaty, EU-SEE Gas ring. Mr.eperkovi has been the initiator of a great number of energy transport environment projects. He was also engaged in drafting numerous international agreements, including: Transport treaty EU-SEE, Open single sky agreement, air traffic agreement, strategy gasification SEE with EU DG

TREN, national strategy gasification Serbia, regional center for climate change and trading emission CO2 in Belgrade, regional center for monitoring transport for SEE WITH HQ in Belgrade, member PHLG for transport EU-SEE Road Corridor E7 and E10 in strategic priority EU for West Balkans and Serbia. He has participated in numerous conferences in support of strong relations between the EU and the West Balkans. From 2004 2008 Mr. eperkovi was minister counselor Missione Serbia to the EUBrussels. He is currently the chairman of the JP Transnafta Managing Board and Executive Manager at EPS (Electric Power Industry of Serbia). He is also special advisor to the Deputy Prime Minister of Serbia, engaged in foreign affairs and EU integration issues. He speaks English and German. He lives in Belgrade. Among the Mr. eperkovi countless awards we may exctract Belgrade October award and Nikola Tesla award.

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