Energy: Kozjak Pumped Storage Plant
Executive summary
The construction of the Kozjak Pumped Storage Plant on the Drava River some 25 km west of Maribor and 2.2 km upstream of the existing Fala Hydroelectric Power Plant is included in the Government Resolution on National Development Projects for the Period 2007-2023. The new storage dam and reservoir standing 700 m above the riverbed will help ensure a safe and high-quality supply of electricity by eliminating the shortage of peak energy at the electricity energy system and provide tertiary regulation energy, contributing to more reliable electricity energy system operation.
Current status
Relevant investigations (geological and geomechanical, seismic, hydrogeological, environmental impact…) have been carried out and the documentation required under the National Spatial Plan prepared. The necessary permits should be issued by the Slovenian Government by the end of the year.
Investment opportunity
Pumped storage hydroelectric plants use excessive electricity available during the night to pump water into the higher reservoir, and at the time of increased electricity demand during the day the accumulated water is used for electricity generation. The Kozjak facility with the installed power of 2 x 220 MW in the turbine mode and 2 x 176 MW in the pumping mode will generate 985 GWh of electrictricity a year to ensure high availability and reliability for peak load operation: high during the daytime and low during the night.
Budget / Total cost
The required investment is estimated at €323 million with the internal rate of return (IRR) of 8%. The construction of the plant is scheduled to be completed in five years.
Project finance / Support
Finance contract(s) to cover approximately 50% of the total investment.
Project advantages
In addition to the extra annual production of electricity, the project is expected to give impetus to the development of local communities in the area of the new hydroelectric power plants, raise the level of environmental protection, and enable better regional development, as – parallel to the energy project – additional infrastructural projects are implemented. The project will ensure adaptable and cost-efficient functioning within the group and the energy system as well as improved operating conditions of the Drava power plant chain in terms of increased available power both in time and volume. The project will ensure system services – particularly tertiary reserves – and indirectly better system stability and reliability of Slovenia's electricity system. The project will cover daily peaks and in this way ensure better commercial conditions on the electricity market, at the same time rationalizing the operation of large energy blocks in Slovenia’s electricity system. Kozjak will contribute to regional development and to obtaining additional skills and experience in line with the Lisbon Strategy.
The potential investor through participation in project has opportunity to refine capital invested, to be a partner to the biggest Slovenian producer of electricity and get a foothold in the Slovenian power market and a springboard to the regional markets.
Contact point
Holding Slovenske elektrarne d.o.o. (HSE d.o.o.)
Address: Koprska ulica 92, SI-1000 Ljubljana
Phone: +386 (0)1 470 41 00
Fax: +386 (0)1 470 41 01
Email: hse[@]hse.si; info[@]hse.si
URL: www.hse.si
Pumped Storage Plant Kozjak
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