The studies, carried out by Energoprojekt Hidroinzenjering Co. Ltd (EHC), recommended a capacity increase from the original application case of 48MW to 58.4MW, with a corresponding increase in output from 189GWh/yr to 232GWh/yr. The study has also defined dam sites, provided recommendations for the design of the hydroelectric power plants and calculated preliminary cost estimates for their construction, as summarized in the table opposite.
The estimated construction costs are budgeted into three areas: EUR46.3M for construction works; EUR51.2M for equipment purchases; and EUR42.4M for other investments related to the hydroelectric power plant. EUR33.7M of the EUR42.4M that is anticipated to go into other investments is related to deviation of 7.31km of the state road M21, on the section Prijepolje - Bijelo Polje. The Company is currently working with local authorities for the permits required for the relocation of parts of the road along the River Lim, acquisition of surface rights affected by the project and construction of the hydroelectric installations.
The Italian and Serbian governments have signed a bilateral agreement whereby Serbia may export green energy into Italy and be issued green certificates (the cost of which are paid by consumers not government) for each kilowatt hour of electricity sold. The market price for electricity in Italy is presently approximately 5.5 Euro cents per kilowatt hour (EURcent/kWh) and the green certificates 8.5EURcent/kWh, implying a combined price for renewable energy of approximately 14EURcent/kWh. The electricity price and the green certificate price fell during the recent global recession, but these prices are expected to recover in the coming years with increased economic activity. From the Pre-Feasibility Studies EHC has determined that the breakeven price of electricity for the Brodarevo project is 7.65EURcent/kWh over a 25-year exploitation period using a discount rate of 8%. Reservoir continues discussions with various groups with the intent of securing certification and indicative agreements for the transmission and sale of electricity into the Italian market.
The EHC report also determined that the planned construction of Brodarevo 1 & 2 would bring the following benefits: generation of "green" electricity, extremely low disturbance of hydrology regime of the river, mitigation of the flood flow consequences, increased protection of low waters in dry seasons, development and economic effects such as: foreign capital flow during the construction period, positive impact to national currency stabilisation, possibility of engaging local construction companies, social and economic stabilisation of the region, economic development of the region in terms of employment, and improvement of the living standard of the population in a broader vicinity of the hydropower facility.
TablesPre-feasibility studies
