TPP Kostolac

TPP Kostolac is a coal-fired thermal power plant complex situated on the right bank of the Danube near Kostolac, in the Požarevac area of Serbia. It is operated within the Elektroprivreda Srbije (EPS) system and is one of the country's most important electricity-generating sites. The complex is generally described as Serbia's second-largest power plant after TPP Nikola Tesla. As of October 2020, its operating generation fleet consisted of four units organized into the Kostolac A and Kostolac B plants. Kostolac A contains two generating units: a 100 MW unit commissioned in 1967 and a 210 MW unit commissioned in 1980. Kostolac B contains two 350 MW units, B1 and B2, commissioned in 1987 and 1991, respectively. Together, the four units provide 1,060 MW of installed generation capacity. The A plant also supplies heat for district-heating systems serving Kostolac and Požarevac, giving the complex a role beyond electricity production. The facility is integrated with nearby lignite-mining operations. The Drmno and Cirikovac open-cast mines provide coal resources for the power station, and expansion of the Drmno mine was associated with plans for a further generating unit. The complex has been reported to account for approximately 10% of the available capacity of Serbia's electric-power system and almost 11% of electricity production within the EPS system, although these proportions are dependent on operating conditions and the period measured. A major proposed expansion was Kostolac B3, a planned 350 MW unit intended to be built alongside B1 and B2. In November 2013, EPS, the Kostolac thermal-power and mining company, and China Machinery Engineering Corporation signed an agreement covering the project. The Serbian authorities linked the project to financing from China Exim Bank and commercial lenders, supported by Serbian state guarantees. The expansion was also connected to a proposed increase in annual Drmno coal production from approximately 9 million to 12 million tonnes. Kostolac B3 generated controversy over both environmental governance and procurement. Environmental organizations argued that the impact assessment did not adequately address the mine expansion, heavy-metal emissions, alternative technologies, transboundary effects, or the plant's vulnerability to flooding. In June 2014, the Serbian organization CEKOR filed a complaint before the national administrative court challenging approval of the environmental-impact assessment. The construction agreement also attracted scrutiny because it was concluded without a conventional public tender; the government cited an exception in Serbia's public-procurement law for projects established through intergovernmental agreements. The site is exposed to wider infrastructure and environmental risks. During the May 2014 floods, employees, firefighters, and volunteers built embankments to protect the plant from rising water. The episode demonstrated the strategic importance of keeping the complex operating while other Serbian energy assets were suffering flood damage. Overall, TPP Kostolac remains a major Serbian coal-generation and district-heating installation, while its future is shaped by mine supply, environmental regulation, financing, and Serbia's longer-term energy transition.

TPP Kostolac developed as part of Serbia's coal-based electricity system and is located beside the Danube near the mining and industrial settlement of Kostolac. The complex is divided into the Kostolac A and Kostolac B plants, whose units were commissioned over several decades. Kostolac A's first unit, rated at 100 MW, entered service in 1967. A second unit, rated at 210 MW, followed in 1980. Kostolac B was subsequently built with two 350 MW units. Unit B1 was commissioned in 1987 and B2 in 1991, giving the B plant 700 MW of installed capacity. In addition to generating electricity, Kostolac A supplies heat to heating networks in Kostolac and Požarevac. The plant operates as part of the EPS generation portfolio and is supplied by nearby open-cast coal mines, notably Drmno and Cirikovac. With four operating units and a combined installed capacity of 1,060 MW, the complex is one of Serbia's principal power stations and is commonly identified as the country's second-largest after TPP Nikola Tesla. Its reported contribution to Serbia's available generating capacity and EPS electricity production has made the site strategically significant for national supply security. In the 2010s, Serbian authorities and EPS pursued the proposed Kostolac B3 project, an additional 350 MW unit. On 20 November 2013, an agreement was signed with China Machinery Engineering Corporation. The proposal was tied to an expansion of the Drmno mine, increasing planned annual coal output from about 9 million to 12 million tonnes. Financing discussions involved China Exim Bank, commercial banks, and Serbian state guarantees. The project was presented by its promoters as a modernized unit intended to meet stricter emissions requirements. The proposal nevertheless became the subject of environmental and legal criticism. NGOs argued that the environmental-impact assessment did not fully examine the mine expansion, heavy-metal emissions, alternative technologies, transboundary effects, or flood exposure. The site's proximity to the Danube and Romania heightened concerns about possible cross-border impacts. CEKOR filed a formal complaint in June 2014 against the government's approval of the assessment. The procurement route was also questioned because the agreement with CMEC was concluded without an open public tender. Serbian authorities defended the arrangement by referring to a public-procurement exemption for projects based on intergovernmental agreements. The plant's physical vulnerability was highlighted during the May 2014 floods. Workers, emergency personnel, and local volunteers constructed protective embankments to keep floodwater away from the facility. The event underscored the dependence of Serbia's electricity system on the continued availability of major thermal stations and their associated mining and transport infrastructure. TPP Kostolac therefore occupies a dual position: it is a crucial legacy coal and heat-generation asset, but also a site where environmental compliance, public financing, procurement rules, mine expansion, and climate-related risks intersect.

• 2014

  Flood defenses deployed

  [1]TPP Kostolacen.wikipedia.org

  Emergency teams and volunteers built embankments to protect the plant during Serbia's major May floods.

• 2013

  Kostolac B3 agreement signed

  [1]TPP Kostolacen.wikipedia.org

  EPS, the Kostolac thermal-power and mining company, and CMEC signed an agreement for a proposed 350 MW expansion unit.

• 1991

  Kostolac B2 commissioned

  [1]TPP Kostolacen.wikipedia.org

  The second 350 MW Kostolac B unit entered operation, completing the existing 700 MW B plant.

• 1987

  Kostolac B1 commissioned

  [1]TPP Kostolacen.wikipedia.org

  The first 350 MW unit of Kostolac B entered operation.

• 1980

  Kostolac A2 commissioned

  [1]TPP Kostolacen.wikipedia.org

  The 210 MW second unit of Kostolac A was commissioned.

• 1967

  Kostolac A1 commissioned

  [1]TPP Kostolacen.wikipedia.org

  The 100 MW first unit of Kostolac A entered service.

A strategic baseload coal-generation complex within Serbia's state-owned electricity system, with an additional district-heating role in the local area.

• Coal-fired power generation

  Electricity generation

  The complex generates grid electricity from four operating coal-fired units: Kostolac A1 at 100 MW, A2 at 210 MW, B1 at 350 MW, and B2 at 350 MW. The combined installed capacity of the existing units is 1,060 MW. Electricity is delivered within the EPS system and contributes materially to Serbia's national supply.

• Heat supply

  District heating

  Kostolac A also produces heating energy for district-heating systems serving Kostolac and Požarevac. This cogeneration-related function gives the facility a local public-utility role in addition to its national electricity-generation role.

• 2014

  Challenge to the Kostolac B3 environmental assessment

  CEKOR challenged government approval of the environmental-impact assessment for the proposed Kostolac B3 unit. The organization argued that the assessment inadequately covered the associated Drmno mine expansion, heavy-metal emissions, alternative technologies, transboundary effects, and flood risks.

  Source

• 2013

  Questions over non-tendered construction agreement

  The agreement with CMEC for the proposed B3 unit was signed without a conventional public tender. Serbian authorities cited a statutory exception for projects concluded under intergovernmental agreements, while critics questioned compatibility with European public-procurement and state-aid principles.

  Source

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• 2013

  Proceed with the proposed Kostolac B3 expansionProduct launch

  Background

  Serbia and EPS sought additional thermal generation capacity and planned to connect the project with expanded coal production at the Drmno open-cast mine.

  Action taken

  EPS and the Kostolac thermal-power and mining company signed a construction agreement with CMEC for a proposed 350 MW unit.

  Aftermath

  The project became subject to environmental litigation and procurement criticism. Its financing plan involved China Exim Bank, commercial lenders, and Serbian state guarantees.

  Reported project value. US$715.6 million (2014 project financing and state-guarantee plans)

  Source

1. 1TPP Kostolacen.wikipedia.org