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Explore the untapped potential of Kosovo's vast lignite reserves for electricity production, presenting commercial opportunities and feasibility studies. Learn about the current mining operations, electricity needs, market summary, risks, ROI projections, and the strategic development plan to leverage coal reserves for economic growth. Delve into the details of existing power stations, export possibilities, and the importance of building a new, efficient power plant. Discover how Kosovo can enhance relationships with European countries and attract investors through the electrifying business propositions.
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Kosovo Lignite Exploitation Opportunities Commercialization Development Plan
Kosovo Lignite • Coal Reserves • Current reserves - 14.3bill tons of coal or 2.3 bill tons petroleum • Quality • 6.28-9.21 MJ/kg • Ash content 9.84–21.32 % • Moisture content of 38–48 % • Sulphur 0.64–1.51 % • Overburden to coal ratio vary 1 to 1 – 1.7 to 1 (1.7 cubic meters of overburden to 1 ton of lignite) • Current mining operations (type of mines) • Two main mines (Bardh and Mirash mine) • 50 million tons/year total current capability
Kosovo Electricity Production • Coal fired power stations • Kosovo A 1960s • Max. 330MW • Kosovo B 1980s • Max. 500MW
Market Summary • Domestic Target Market • Country needs 650-700 MW • Currently if countries power plant is working at full capacity it can produce at best 500MW • Still need of 150-200MW • International Target Market • Countries that depend on import of their energy and are in proximity of Kosovo • Greece will need extra 500MW per year by 2015 • Italy needs extra 1.2TW
The Opportunity Electricity Production Exporting Coal Using existent power plant 500 MW/year Power Plant (Kosovo B) Railway option Building a new Power Plant (Double Cycle) 830GWh/year • Costs • Repair and Running costs • € 39.72mil • Electricity prices (2002 - EU) • € 5.45/100kW/h • Costs • Repair and Running costs • € 1.014bil • Coal prices (2002-EU) • € 67/metric tone • Costs • Building Cost • € 93.83mil • Running Cost • € 31.94 bill • Electricity Prices • €5.45/100kW/h ROI = 4.45% After first year of full production ROI = .0013% After first year of full production and export ROI = .014% After first year of full production
Risks • Kosovo’s political instability • Plant building and maintenance resource allocation/imports constraints • Inability to reach enough investors • Competition outbids/outperforms us
Goals & Objectives • Further research into electricity production options for Kosovo • Arouse interest in Kosovo electricity production potential • Create and improve Kosovo-Europe countries business relationships through electricity business propositions
Conclusion • Electricity best opportunity for Kosovo lignite reserves • Long term investment into building new power plant with double cycle technology best option • Privatization of KEK in the future crucial to project success