Energy: Šoštanj Thermal Power Plant Unit 6
Executive summary
The construction of a new 600 MW power generating unit of the Šoštanj Thermal Power Plant has been endorsed by the Slovenian Government in the Resolution on National Development Projects 2007–2023 with the aim to ensure reliable power supply in line with the environmental and other requirements laid down in EU legislation by using the best available technology.
Current status
With the capacity of 791 MW, Šoštanj Thermal Power Plant, the largest power production facility in the HSE Group, generates one third of electricity produced in Slovenia. Šoštanj is a vital and indispensable source of electricity and thermal energy for industrial use and district heating supplying a large part of the Saleška Valley. It is a coal-fired power plant that burns coal mined in the nearby Velenje lignite mine with the obsolete facilities approaching the end of their useful lives. There are five units, where Unit 4 and Unit 5 have been upgraded by adding a gas turbine set. Unit 2 was decommissioned in 2008, Unit 1 has been shut down earlier this year. Units 3, 4 and 5 and two gas turbines are in operation.
Investment opportunity
A decision was taken to invest in the construction of a new modern and highly efficient coal-fired power generating unit of 600 MW rated power - Unit 6, which will replace the obsolete units 1, 2, 3 and partially also Unit 4, which will remain as cold reserve. Taking into account the ever-increasing demand for electric energy fuelled by rising consumption, the Šoštanj facility needs more than a face-lift it had a couple of years ago in order to preserve its position in Slovenia’s energy sector and to comply with more stringent environmental standards. Very high availability, low unplanned outage rate and long periods between shutdowns for maintenance and inspection make steam power plants a viable business with low environmental impact. The investment will maximize power generation efficiency and earnings.
The project is in the development phase: the old cooling towers have been demolished and the construction of the new cooling tower for Unit 6 should start in autumn 2010. The construction of the whole facility will be finished at the end of 2014 and the start of production is planned for the end of 2015.
Project budget / Total cost
The total amount of the investment in Unit 6 is €1,103 million with the internal rate of return (IRR) estimated to be 7% after the works are completed in 4 years.
Project finance / support
Finance contracts to cover approximately 60% of the total investment.
Project advantages
A national development project offering the potential investor(s) make their money work and to enter the Slovenian and the regional electricity markets as a partner of the biggest Slovenian producer of electricity.
Ever-increasing power consumption calls for a larger coal-fired unit using locally mined lignite. The studies have shown that the present site can accommodate a 600 MW unit designed in line with modern dust incineration technologies with critical parameters and an output ratio of 43% in compliance with all environmental regulations. A new link to the Slovenian electrical grid would present no difficulties. Economic calculations show that a competitive electricity production price is achievable. Average annual production would amount to 3234 GWh at the power plant gate, with a total of 2.93 million tons of Velenje-mined coal burned. Within Unit 6, a new heat station is foreseen for remote heating of the Šaleška Valley with 120 MWth of power and 50 MWth of average annual heat emissions. At this power level, the unit's electrical power at unchanged boiler pressure would be reduced by13 MW while increasing the unit's net output by 45.6%.
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
Thermal Power Plant Šoštanj
