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Emission reduction plans for large combustion plants in BiH FAHRUDIN KULIC USAID EIA PROJECT UGLJEVIK, OCTOBER 20, 2015 Combustion Plant Emissions Air pollutants : Sulphur dioxide (SO2) Nitrogen oxides (NOx) Dust (particulate


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Emission reduction plans for large combustion plants in BiH

FAHRUDIN KULIC USAID EIA PROJECT UGLJEVIK, OCTOBER 20, 2015

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Combustion Plant Emissions

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  • Air pollutants:
  • Sulphur dioxide (SO2)
  • Nitrogen oxides (NOx)
  • Dust (particulate matter –

PM)

  • CO2 is not a pollutant.

It is a GHG and increased concentrations cause global warming. Source: EPA

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Why Reduce Emissions

  • Harmful effects on human health
  • Respiratory and cardiovascular illnesses (caused by direct emissions of

fine particles and particles formed by SO2 and NOx emissions in the atmosphere)

  • Respiratory illnesses (NOx emissions react in the atmosphere to form

ground-level ozone – a major component of smog)

  • Harmful effects on the environment
  • SO2 and NOx emissions react in the atmosphere to form acidic

compounds that harm lakes and streams (Acidification)

  • Acid deposition harms forests and trees, buildings
  • An oversupply of nitrogen in the soil or in the water - Eutrophication

(fish, seagrass beds)

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External costs

  • Harmful effects on human health and the environment

caused by some activity, expressed in monetary value, are called “external costs“ of that activity

  • External costs of electricity generation are caused by

pollutant emissions that adversely affect the environment and human health

  • External costs of electricity generation cost much more

than emission reduction measures

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Combustion Plants and Pollution in the EU

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SO2 emissions – sector share

Source: EEA

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Combustion Plants and Pollution in the EU

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Source: EEA

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Combustion Plants and Pollution in the EU

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Source: EEA

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Large Combustion Plants and EU Directives

  • Large Combustion Plants (LCPs) are those plants with

thermal input (fuel) equal to or greater than 50 MW

  • Air pollutants: sulphur dioxide (SO2), nitrogen oxides

(NOx) and dust

  • LCP Directive (2001/80/EC) sets Emission Limit Values

(ELVs) for LCPs

  • This Directive applies only to combustion plants

designed for production of energy with the exception

  • f those which make direct use of the products of

combustion in manufacturing processes

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Large Combustion Plants and EU Directives

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SO2 emissions in EU

Source: EEA

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Large Combustion Plants and EU Directives

  • Industrial Emission (IE) Directive (2010/75/EU)

encompasses all installations engaged in industrial activities including LCPs (Chapter III)

  • The IE Directive sets even lower ELVs for LCPs

compared to the LCP Directive

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Energy Community

  • The Energy Community Treaty signed in May 2005 in

Athens, Greece and entered into force in July 2006.

  • Treaty signed by the European Community and eight

Contracting Parties

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  • The

key aim

  • f

the

  • rganization

is to extend the EU internal energy market to South East Europe and beyond on the basis of a legally binding framework.

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Energy Community Article 2 of Energy Community Treaty:

  • The task of the Energy Community shall be to organize

the relations between the Parties and create a legal and economic framework in relation to “Network Energy“

  • “Network Energy” includes electricity, gas and oil

sectors

  • The “acquis communautaire on environment” of the

Treaty includes the LCP Directive 2001/80/EC

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Energy Community and Large Combustion Plants

  • On October 24, 2013 Energy Community (EnC)

Ministerial Council passed two decisions:

  • Decision D/2013/05/MC-EnC on the implementation of the

LCP Directive (2001/80 EC), which included application of ELVs from the Directive on Industrial Emissions (2010/75/EU) for 2026 and 2026

  • D/2013/06/MC-EnC on the implementation of the Directive on

Industrial Emissions (2010/75/EU) for NEW plants, which receive a permit after 1 January 2018

  • Policy Guidelines on the Preparation of the National

Emission Reduction Plans (NERPs) (PG 03/2014), EC Secretariat, December 19, 2014

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LCP Directive for Energy Community

  • Network energy- only LCPs that deliver all or a part
  • f produced electricity to the grid
  • Other LCPs excluded (generating electricity for plant needs)
  • Existing plant: license issued before 1 July 1992
  • New plant: license issued after 1 July 1992
  • Stricter (lower) ELVs for new plants
  • All thermal power plants in BiH are existing plants

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LCP Directive for Energy Community Options for LCP emission reduction:

  • Option 1: Compliance with the Emission Limit Values

(ELVs) by 1 Jan 2018

  • Option 2: Implementation of NERP (1 Jan 2018 – 31

Dec 2027)

  • Option 3: Limited service life (20,000 operational

hours between 1 Jan 2018 to 31 Dec 2023). From 1Jan 2024 shut-down or satisfy stricter ELVs under the IE Directive.

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Legislation regarding LCP emissions in BiH

  • FBiH Rulebook on Emission Limit Values for Large

Combustion Plants (FBiH Official Gazette, No. 3/2013)

  • Rulebook on Prevention and Reduction of Air Pollution

in the RS (RS Official Gazette, No. 3/2015 and amendments in 51/2015)

  • Both rulebooks are harmonized with the LCP Directive,

but not with the IE Directive

  • Both rulebooks give the LCP operators the same three
  • ptions (ELVs from the LCP Directive)

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Development of Emission Reduction Plans

  • MOFTER asked for tech. assist. from the USAID (EIA Project)
  • Working Groups (WG) formed in Feb 2015 (EIA, SEEC, EPs)
  • Methodology of work:

1. First draft of report created by SEEC and EIA 2. Presented to WGs 3. WG member review, comment, correct, suggest changes. 4. SEEC and EIA revise reports 5. Process repeated until final draft is agreed upon by WG 6. Draft reports submitted to competent authorities

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Development of Emission Reduction Plans

  • Working Groups developed draft reports:
  • Report on the Inventory of Combustion Plants
  • Report Current BiH legal and Regulatory Framework
  • Report of Best International Practices Costs Applicable to LCPs in BiH
  • Report on Different Scenarios for LCP Emission Reduction Plans
  • Report on Potential Environmental and Health benefits from National

Emission Reduction Plan (NERP) Implementation

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Large Combustion Plants in BiH

  • 12 LCPs are obligated to reduce emissions according

to the Energy Community Treaty obligations (Network energy-only LCPs that deliver electricity to the grid are covered by the LCP Directive)

  • Elektroprivreda FBiH – 9 LCPs
  • Elektroprivreda RS– 2 LCPs
  • Natron-Hayat – 3 LCPs
  • All LCPs are obligated to reduce emissions according

to the current entity rulebooks

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Emission Reduction Plans in BiH

  • Option 1: Compliance with the Emission Limit Values

(ELVs) by 1 Jan 2018

  • Not a realistic option for thermal power plants (TPP)
  • LCPs at Natron-Hayat already comply with the

LCP ELVs

  • Option 2: NERP – deadline Dec 31, 2015
  • Option 3: Limited service life (20,000 operational

hours between 1 Jan 2018 to 31 Dec 2023). As of 1Jan 2024 shut-down, or satisfy stricter ELVs from the IE Directive

  • Operators chose Option 2 and/or 3

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Guidelines for Preparation of NERP

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  • Emission ceilings are calculated
  • For each LCP
  • For SO2, Nox and PM
  • For each year from 2018 to 2027
  • Emission ceilings are calculated based on ELVs which are

gradually reduced from LCP ELVs in 2018 to IED ELVs in 2026:

  • Plant’s ceiling (t/y) = Flue gasses flow (Nm3/annually) × GVE

(mg/Nm3) ×10-9

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Guidelines for Preparation of NERP

  • Alternative to ELV is the MDR - minimum rate of desulphurization
  • MDR option: Plant’s ceiling (t/y) = Amount of sulphur in fuel (t/y) ×

(1 – (MDR*/100) × 2

  • Agregation rule: Units capacities are added if connected to the

same smokestack (lower ELV)

  • Entity/National Ceiling equals the sum of individual LCP ceilings

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Guidelines for preparation of the NERP

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  • The NERP allows flexibility in implementation:
  • If a financing agreement is signed and a timetable for

implementation is submitted, the expected emission reductions will be considered to be achieved

  • Emissions reductions from one plant can be „transferred“ to

another plant as long as overall emissions are below the ceiling

  • 1 Jan 2019: start of annual reporting on NERP implementation
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Annual Emissions of LCPs in 2014

Operator SO2 emissions (tons) NOx emissions (tons) Dust emissions (tons) EP BiH 141.218 14.197 2.175 EP RS 131.027 5.997 4.363 Natron-Hayat 1.332 317 77 Total 273.577 20.511 2.252

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Large Combustion Plants in BiH

  • The Working Groups identified two issues open to

interpretation, discussion and negotiation:

1. Non-application of aggregation rule during the LCP Directive period 2018-23 for TPP Kakanj 2. Application of Minimum Desulphurization Rate

  • The Secretariat approved the above requests for

revised ceiling calculation methods

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Large Combustion Plants in BiH cont’d

  • The Secretariat-approved calculation methods were

rolled into the proposed ERPs, which have recently been circulated to the competent authorities for approval

  • The approved calculations benefit BiH by:

1. Resulting in 55 million KM savings in investment costs for EPRS (TPP Gacko) 2. Increasing EPBiH’s annual income by about 15 million KM from additional electricity sales during 2018-27, based on the current market value

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2014 EPRS TPP Unit Emission Values compared to LCPD ELVs and IED ELVs

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No TPP LCP ID Qth Emission value LCPD ELV 2018-2023 IED ELV 2026-2027 SO2 NOx PM SO2 NOx PM SO2 NOx PM MW mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 mg/m3 1 Ugljevik U-1 800 16,661 424 377 1,343 500/200 50 895 200 20 2 Gacko G-1 800 1500 450 250 400 500/200 50 200 200 20

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EPRS TPP SO2 Emissions 2018-2027

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SO2 Emission Ceilings (ton/year) SO2 Planned Emissions (ton/year)

No TPP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 Gacko 2,435 2,435 2,435 2,435 2,435 2,435 2,029 1,623 1,217 1,217 2 Ugljevik 9,089 9,089 9,089 9,089 9,089 9,089 8,079 7,070 6,060 6,060

11,524 11,524 11,524 11,524 11,524 11,524 10,108 8,693 7,277 7,277 EPRS Total

No TPP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 Gacko 9,128 9,128 9,128 9,128 9,128 9,128 8,755 7,339 5,923 5,923 2 Ugljevik 1,354 1,354 1,354 1,354 1,354 1,354 1,354 1,354 1,354 1,354

10,482 10,482 10,482 10,482 10,482 10,482 10,108 8,693 7,277 7,277 EPRS Total

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EPRS TPP SO2 Emissions 2018-2027

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SO2 Emissions (ton/year)

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EPRS TPP NOx Emissions 2018-2027

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NOx Emissions (ton/year)

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EPRS TPP PM Emissions 2018-2027

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PM Emissions (ton/year)

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EPRS TPP Emissions 2014-2027

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2014 2018 2027 SO2 131,027 10,482 7,277 NOx 5,997 5,611 2,571 PM 4,363 257 257

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EPRS – Emission reduction measures and costs

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Pollutant TPP Technology to be applied Capital cost MM KM O&M cost, KM/MWh G HLI 16 1 U WLS FGD 200 7 G LNB + OFA 14 1 U LNB + OFA 14 1 G ESP+BF 20 0.1 U New ESP 20 0.1 284 SO2 NOx PM Total Investment cost

HLI – Hydrated Lime Injection WLS FGD – Wet Limestone Flue Gas Desulfurization LNB – Low Nox Burner OFA – Over-Fire Air ESP – Electrostatic Precipitator BF – Bag Filter

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EPRS – Emission reduction measures and costs

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SO2 NOx PM Total Gacko 1.33 1.57 1.21 4.11 Ugljevik 17.62 1.33 1.10 20.06 EPRS 9.88 1.44 1.15 12.48 Total costs (Investment and O&M) (KM/MWh) TPP

Calculation based on a 15-year period

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2014 EPBIH TPP Unit Emission Values compared to LCPD and IED ELVs

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K5, K6, K7

  • Connected to same smoke stack
  • Aggregation rule only for IE Directive validity period
  • MDR used in calculation of ceilings
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SO2 emissions from EPBIH TPPS for period 2018-2027

SO2 ceilings emissions (t/annualy)

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No TPP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 T-3 2 T-4 2,110 2,110 2,110 2,110 2,110 2,110 1,758 1,407 1,055 1,055 3 T-5 1,816 1,816 1,816 1,816 1,816 1,816 1,513 1,211 908 908 4 T-6 1,859 1,859 1,859 1,859 1,859 1,859 1,549 1,239 930 930 5 K-5 2,480 2,480 2,480 2,480 2,480 2,480 1,984 1,488 992 992 6 K-6 1,874 1,874 1,874 1,874 1,874 1,874 1,499 1,124 750 750 7+ K-7 3,101 3,101 3,101 3,101 3,101 3,101 2,756 2,412 2,067 2,067

13,240 13,240 13,240 13,240 13,240 13,240 11,059 8,881 6,702 6,702 EPBiH Total

Planned emissions of SO2 (t/annualy)

No TPP 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 T-3 2 T-4 9,262 9,264 9,264 8,321 7,476 2,832 2,447 2,447

  • 3

T-5 1,002 1,002 1,002 708 553 439 425 425 581 581 4 T-6 999 999 999 999 820 955 955 955 955 955 5 K-5 288 261 261 261 257 253 237 237 85 85 6 K-6 527 552 552 552 552 552 527 304 264 264 7+ K-7 1,162 1,162 1,162 1,162 1,162 1,133 1,082 1,082 981 981

13,240 13,240 13,240 12,003 10,820 6,164 5,673 5,450 2,866 2,866 EPBiH Total

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SO2 emissions from EPBIH TPPS for period 2018- 2027

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SO2 emissions (t/annualy)

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NOx emissions from EPBIH TPPS for period 2018 - 2027

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NOx emissions (t/annualy)

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Particulate Matters emissions from EPBIH TPPS for period 2018 -2027

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Emissions of particulate matters (t/annualy)

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EPBIH TPP Emissions for period 2014-2027

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2014 2018 2027 SO2 141,218 13,241 2,866 NOx 14,197 12,205 3,356 PM 2,175 562 180

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EPBiH – Emission reduction measures and costs

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WLS FGD – wet lime stone flue gas desulfurization SNCR – Selective Non Catalytic Reduction SCR – Selective Catalytic Reduction

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EPBiH – Additional measures for emission reduction

  • Tuzla 4
  • No investments in the emission reduction

equipment

  • Reduced number of operational hours and use of

coal with less sulphur content (Kreka) in period 2018-2020

  • Cease operation at the end of 2025
  • New blocks in Tuzla and Kakanj planned to be put into
  • peration

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EPBiH – emission reduction measures and costs

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Calculation based on 15 years period

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Reduced emissions and costs for EPBIH and EPRS for period 2014-2027

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Polutant Investment costs M KM SO2 521 Nox 103 PM 40 Total 664

Total Costs (Investment and O&M) (KM/MWh) ERS 11,65 EPBIH 12,48

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THANK YOU FOR YOUR ATTENTION Fahrudin Kulic fkulic@usaideia.ba www.usaideia.ba