Canada's Reservoir Capital Advised To Raise Further Capacity of Serbian Hydro Project
BELGRADE (Serbia), July 14 (SeeNews) – Canadian-based renewable energy developer Reservoir Capital Corp. said it has been advised by a Serbian engineering company to raise further the projected installed capacity of two hydro power plants it plans to build in the Balkan country’s southwest.
“EHC [Energoprojekt Hidroinzenjering] has recommended a capacity increase from the original application case of 48 megawatts (MW) to 58.4 MW, with a corresponding increase in output from 189 gigawatthours per year (GWh) to 232 GWh per year,” Reservoir Capital said in a statement on Tuesday.
Energoprojekt Hidroinzenjering made the recommendations after completing a pre-feasibility study for the Brodarevo 1 and Brodarevo 2 hydroelectric projects on the Lim river.
In February, when the pre-feasibility study was still in progress, Reservoir Capital said it had been advised by the engineering companies involved in the project to raise the projected installed capacity from 48 MW to 55.2 MW.
According to the feasibility study, the combined construction costs for the two power stations are seen at 139.9 million euro ($176 million). In February, Reservoir Capital estimated the construction costs at 91.7 million.
The estimated construction costs are budgeted into three areas: 46.3 million euro going towards construction works, 51.2 million euro for equipment purchases and 42.4 million euro for other investments related to the projects, the statement said.
The Italian and Serbian governments have signed an agreement whereby Serbia will export green energy into Italy at prices substantially above those of the local market.
Reservoir Capital said it is engaged in discussions with various energy trading groups with the intent of securing certification and agreements for the sale of electricity into the Italian market.
Energoprojekt Hidroinzenjering has determined that the breakeven price of electricity for the Brodarevo project is 0.0765 euro/kilowatthour over a 25-year exploitation period using a discount rate of 8.0%, the statement said.