Serbia

Serbia has substantial lignite resources which are easily accessible for exploitation. The country relies on lignite for 45% of its total primary energy supply. For electricity generation, the share of lignite was 65.1% in 2014 with hydro (34.1%) accounting for most of the remainder and natural gas making only a very small contribution (0.7%).

General data		2015
Population	million	7.1
GDP	€ billion	33.5

The state-owned Electric Power Industry of Serbia (ELEKTROPRIVREDA SRBIJE – EPS) is a vertically integrated enterprise with thirteen subsidiaries and three enterprises in Kosovo. Since June 1999, EPS has not been able to use or operate its power and mining facilities in Kosovo and Metohija.

The main activity of EPS is electricity supply. The production, processing and transport of coal, electricity generation, electricity distribution and distribution system management, and steam and hot water production in cogeneration plants are all performed by EPS subsidiaries.

With a staff of 36 500 employees, including workers from Kosovo, and 3.5 million consumers, EPS is the largest enterprise in the country. The installed capacity of EPS power plants totals 7 322 MW net: lignite-fired power plants 4 032 MW; gas-and oil-fired combined heat and power plants 353 MW; and hydro power plants 2 937 MW.

In order to increase the efficiency of the power sector through market mechanisms, the Serbian government has been gradually introducing competition in the electricity sector since adoption of the Law on Energy in 2004. Opening of the electricity market will continue until it is fully opened in line with the country’s ratification of the Energy Community Treaty.

EPS’s mission is to secure electricity supply to all customers, under the most favourable market conditions, with the continuous upgrading of its services, improvements to environmental protection and greater welfare for the community. The company’s vision is a socially responsible, market-oriented and profitable company, competitive on the European market, with a major impact in the region and recognised as a reliable partner among local and international companies.

In the first phase of a restructuring process adopted in November 2014, electricity generation and coal exploitation subsidiaries were integrated within EPS. All five existing distribution companies will be integrated into a single legal entity, while the EPS supply business remains in its existing form. The second phase saw EPS become a joint-stock company on 1 July 2016.

Lignite

Production of lignite, with an average calorific value of 7 850 kJ/kg, takes places at open-pit mines in the Kolubara and Kostolac mining basins. The Field C, Field D, Veliki Crljeni and Tamnava West Field open-pit mines in the Kolubara basin account for around 75% of Serbian lignite production and supply Kolubara thermal power plant (TPP), TPP Nikola Tesla A and B and TPP Morava. Lignite from open-pit mines in the Kostolac basin accounts for the remaining 25% of production which supplies TPP Kostolac A and B.

In 2015, EPS extracted 37.0 million tonnes of lignite in the Kolubara and Kostolac mining basins, with overburden-to-production ratios of 2.5 cubic metres per tonne in Kolubara and 4.5 cubic metres per tonne in Kostolac.

In May 2014, heavy rains hit the Kolubara and Kostolac lignite basins, flooding mines and damaging associated facilities, including TPP Nikola Tesla and TPP Kostolac. The worst situation occurred in the Kolubara mining basin where an artificial lake of 20 square kilometres and 50 metres depth formed at the open-pit mine Tamnava West Field. Mining machinery and equipment was trapped underwater, affecting production for almost a year. The flood damage was estimated at €100 million and cut Serbian power generation by 40%, forcing the country to boost electricity and coal imports. The World Bank approved a $300 million loan (€230 million) for the flood mitigation. This loan supported Serbia in meeting the critical need for electricity generation and supply infrastructure. After many difficulties, EPS succeeded in recovering the flooded mines and repairing machinery and equipment.

In December 2014, a loan agreement was signed by the Serbian government with the Exim Bank of China for a $715.6 million project to build a new 350 MW unit (B3) at TPP Kostolac and to extend the annual capacity of Drmno mine from 9 million tonnes to 12 million tonnes of lignite. Construction is expected to take 58 months and the new unit should be operational by 2020. Unit B3 of TPP Kostolac will help stabilise Serbia’s energy system while respecting European Union environmental standards.

After many years when available funds were invested only in the maintenance of production capacities, environmental protection has now become a business priority for EPS. This priority change is due to the Serbian government’s policy to join the European Union. Almost one third of regulatory commitments and standards in environmental protection are in place, as well as the country’s commitments under the Energy Community Treaty. EPS must harmonise the operation of its facilities with the EU acquis from 2015.

Serbia

Coal resources and reserves
Resources hard coal	Mt	182
Resources lignite	Mt	5 295
Reserves hard coal	Mt	173
Reserves lignite	Mt	3 546

Primary energy production		2015
Total primary energy production	Mtce	15.5
Lignite (saleable output)	Mt / Mtce	37.0 / 10.1

Saleable coal quality
Hard coal net calorific value	kJ/kg	12 000‑18 000
Lignite net calorific value	kJ/kg	7 500‑8 200
Hard coal ash content	% a.r.	12.0‑35.0
Lignite ash content	% a.r.	14.0‑18.0
Hard coal moisture content	% a.r.	45.0‑54.0
Lignite moisture content	% a.r.	48.0‑52.0
Hard coal sulphur content	% a.r.	0.9‑3.8
Lignite sulphur content	% a.r.	0.4‑0.9

Coal imports / exports		2015
Hard coal imports	Mt	0.4

Primary energy consumption		2015
Total primary energy consumption	Mtce	19.0
Hard coal consumption	Mtce	0.4
Lignite consumption	Mtce	8.5

Power supply		2015
Total gross power generation	TWh	35.7
Net power imports (exports)	TWh	1.0
Total power consumption	TWh	33.4
Power generation from lignite	TWh	25.1
Lignite power generation capacity	MW	4 032