Hydrounit 2 of HPP Chaira should be ready by the end of the year. HPP Belmeken has been completely rehabilitated on its 50th anniversary
The National Electricity Company (NEC) and the Romanian "Hydroelectrica" have submitted documents under the Connected Europe mechanism for the construction of a hydroelectric power station on the Danube between Nikopol and Turnu Magurele. This was stated independently by the Minister of Energy Rumen Radev and the Executive Director of NEC Marin Georgiev. "There are intensive talks with the Romanian side," Georgiev specified, reminding that Romania already manages two such plants together with Serbia. The plans are for a hydropower plant capacity of 800 megawatts, with an indicative value of around 6 billion euros (3 billion euros for each of the countries). A more accurate price will be able to be shared after a planned preliminary survey, given the necessary updating. The benefits of such a project, according to Martin Georgiev and Minister Radev, are not only from the activity of the hydropower plant, but from the overall infrastructure project - land connectivity, connectivity of the electric power systems, improvement of navigation, management of flood risks, strengthening ashore, defense, etc. The news was announced during the completion of the rehabilitation of HPP Belmeken, which coincides with the plant's 50th anniversary. Prime Minister Nikolay Denkov, Minister of Energy Rumen Radev, Valentin Scheider, from the EBRD and Gordon Kolak, Chairman of the Board of Directors of "Konchar" from the Konchar C.K.D., which is the executor of the rehabilitation activities of HPP Belmeken.
The Prime Minister and the Minister of Energy did not miss to visit HPP Chaira, where active work is currently underway on the rehabilitation of the hydro units.
The repair of hydro unit 2 at HPP Chaira (executed by ABB-Voith) is expected to be completed by the end of the year. "Physical work on the restoration of hydro unit 2 started last week. After that, the same technical solution will be implemented for hydro unit 3. It is expected that the work on it will also take no more than a year. This is the strategy," said NEC Executive Director Martin Georgiev. Four engineers from Austria are expected to start work on the turbine part literally in a day. Work is also underway on the modernization of the electrical part, as there are already works that have been completed.
With regard to hydrounit 4, which, after accidents and tests, is "irreparable", the intention is to hold a tender procedure under the PPA for the replacement of the turbine part of the unit (the generator remains). The company is already working on the preparation of the PPA procedure, and it is expected to be announced in March. The term desired by NEC for the completion of the task is 3 years, but whether it is feasible will become clear from the signals from the market.
Talks are also underway to rehabilitate hydro unit 1. "The first unit was shut down as a precaution (after the incident with hydro unit 4) without any rehabilitation work being carried out. It is in original Toshiba condition. It also has cracks. We are in talks with Toshiba for recovery. We expect a compelling offer from them," explained Martin Georgiev. He clarified that representatives of the company were in Sofia last week and talks were held with them.
The executive director of NEC, in response to a question, specified that for the repair of hydro unit 2 the company uses its own funds, as well as a combination of partial financing under the Kozloduy MF, while for hydro unit 4 the plans are the possibility of the state guarantee approved in the Budget Law for - favorable financing conditions.
"The real power that we can get is 210 megawatts from hydrounit 2 at Chaira HPP, and the maximum power in pumping mode is 197 megawatts," said Krasimir Dimitrov, Director of "Strategic Planning" at NEC. He specified that currently NEC has about 150 megawatts in pumping mode from HPP "Belmeken" and "Orpheus". When the power from hydrounit 2 comes in, it will become 350 megawatts of pumping power that NEC will have at its disposal. "Given the accumulative function of the dams, i.e. when there is a need, we can produce a much larger amount (of energy) depending on the need of the electricity system", pointed out Martin Georgiev, reminding that the resources must still be used optimally. "You know that if there is any production accident, it is the power of hydropower plants that guarantees supply and security," he added.
The executive director of NEC did not miss the implementation of the company's investment program in 2023, which, in his words, was "record" - with a total value of BGN 72 million, and the implementation is between BGN 35-36 million. As he explained, this over 50 percent increase over the previous year. The intentions for 2024 are even more ambitious.
"You see yourself that the facilities are of a respectable age. Some of them are over 50 years old. Belmeken - a key plant is 50 years old. All major facilities, plus dams, pressure pipes, pipelines, etc. are 50-70 years old and it is normal for them to have serious depreciation and need serious modernization. Transformers, for example, are also 50-60 years old," Georgiev said and compared it to how a 50-year-old car driver would feel.
"This is not in line with current trends and technologies," he added. In this regard, the intentions laid down in the new investment program will be directed in all directions.
NEC's investment program is not related to commercial commitments, Georgiev also commented, referring to the loss of the company's role as a public supplier. "Rather, stepping down as a public supplier will allow us to more effectively manage our business and maximize the value of the energy we produce." At the moment, the first priority is to satisfy the needs of final suppliers with the electricity produced by NEC, and only if there is energy left, if the market creates the conditions, then we can sell it on the free market. Indeed, in order to be able to manage the commercial activity, there must be predictability and clarity for making decisions and concluding transactions for the sale of energy," explained Georgiev.
He pointed out that the legislator in the amendments to the Law on Energy took into account the fact that NEC's contract with AES lasts until the middle of 2026, where the purchase prices under it now, compared to the current market prices, are twice as high. "The purchase prices there, compared to the current market prices, are twice as high. That is, in the law there is a definition of a compensatory mechanism for NEC difference between purchase prices and market, selling prices, but it should also be spelled out in the by-law framework as a mechanism for how it works, since NEC bears all the responsibilities," he said. Georgiev drew attention to the fact that there is no mechanism to decide the company's payments in case of excess quantities from the final suppliers and explained that the signing of such is of key importance for NEC, otherwise everything is at the expense of the company. Against this background, Martin Georgiev drew attention to the 100% dividend paid by NEC to the state. "Importantly, NEC was still able to settle years of accumulated borrowing for 2022 and pay a dividend," he said.
As another limiting NEC component is the marginal price for producers... "Especially in the decision, in force until the end of last year, the price for production from NEC, i.e. from hydropower plants, is BGN 200. This measure was extended for the upcoming year as well and we are waiting for a decision by the Ministry of Energy on what the value will be, that is, over what the received sales price will be charged to us for the Energy System Security Fund (ESSF)," said Martin Georgiev.
He explained that with the ambitious investment program, it includes two new HPP, rehabilitation of HPP "Chaira", and NEC needs to be in good financial condition "so that the banks can be a reliable recipient, but also have a successful financial activity, so it can finance these projects, as they have a lifetime for tens of years and benefits for society, for consumers in Bulgaria".
The executive director of NEC also did not miss the question regarding the funds from the sale of the equipment for the Belene NPP. As is known, it property of the company. At the same time, the decision for now is that the funds from the sale of the equipment for the Belene NPP will be used for the new units of the Kozloduy NPP
"I do not know how it will happen. It is difficult for me to comment," said Martin Georgiev. "The question is by what mechanism it will happen. The right way is, since NEC has a significant loan of 2 billion to BEH, when the equipment is sold one day, we will partially recover the debt to BEH and already, if the parliament decides, BEH will give them to "New capacities". "We have borrowed and our balance sheets themselves on one side there is a liability that is a loan and on the other side we have these assets that balance it out," he explained. Otherwise, decapitalization of the NEC may occur if the company's assets are reduced without affecting the company's liabilities.
“No market can be seen as an isolated island anymore. The whole of Europe is energy-connected, this happened with gas as well," Martin Georgiev also pointed out in response to a question about regionalization of the markets, citing as an example the construction of the many terminals and bringing the fuel to a new level. "So all projects, trends, development plans are viewed from a European, regional and then national perspective."
The rehabilitation of HPP Belmeken
The rehabilitation of HPP Belmeken, which started in 2021, ended with the installation of the fifth last unit of the plant. Thus, on the cusp of its 50th anniversary, it has already been completely renewed. "I am very glad that the rehabilitation process ended, specifically on this cascade, with the last installed fifth unit. The first two units in Belmeken were put into operation in 2022, in 2023 - the next two, and now the fifth one is being completed," Minister of Energy Rumen Radev said at an official ceremony. The units at HPP Belmeken have a capacity in battery mode of 376 MWh. and in the pump - 104 MWh.The water supplied to one unit is 360 cubic meters per minute.
Prime Minister Nikolay Denkov, who officially opened the already rehabilitated plant, drew attention to the importance of the facility, built in the seventies of the last century. "The generation of the 60s and 70s of the last century turned Bulgaria into one of the leading countries in terms of pumped storage hydropower plants. With HPP "Belmeken" and "Chaira" Bulgaria stood as one of the leading engineering examples of how to use natural resources for the benefit of energy. Today, the role of these facilities has become significantly greater, even than what their creators thought," said Prime Minister Denkov. He emphasized the importance of HPP, their efficiency and flexibility in the presence of relevant natural resources.
In his words, one of the tasks set for the coming years is, "to step on the shoulders of those who came before us and to build even more ambitious projects in places where Bulgaria has opportunities for HPP, which correspond to the need not only of Bulgaria, but also of neighboring countries in the region".
Minister Rumen Radev, for his part, repeated the already shared ambitions for the construction of two new HPP - the "Golyam Beglik" and "Shiroka Polyana" dams in the Rhodopes, where the necessary water potential exists. "There, we have the potential to reach between 30,000 and 40,000 MWh of electricity storage per day. This is already a good potential," said Minister Radev.
The rehabilitation project of HPP "Belmeken" has a value of nearly 10 million euros, of which 70 percent is provided by the International Fund "Kozloduy", and 30 percent is from NEC's own financing. Huge credit for the project also goes to the EBRD.
"The rehabilitation of HPP "Belmeken" announced as completed today is the third that we have celebrated in the last 12 months," said NEC executive director Martin Georgiev. Not so long ago, the company celebrated the completion of the projects for the rehabilitation of the "Momina Klisura" and "Vacha 1" HPPs, and the overall rehabilitation of the cascade is worth BGN 39 million.
"It is a pleasure to be here and to see this power plant completely rehabilitated so that it is ready to work reliably, I hope, for at least another 50 years," said Valentin Scheider, project manager for the rehabilitation of HPP "Belmeken" at the EBRD, who was also among the official guests.
Gordon Kolak, chairman of the board of directors of Konchar C.K.D., who are among the main suppliers of equipment and are also responsible for the already rehabilitated plants, said that our country has raised renewable sources and clean energy to the highest level in recent years level, paying attention to water an important source.
On the occasion of the 50th anniversary of HPP, Martin Georgiev presented a plaque to Georgi Paskalev, executive director of HPP "Belmeken".
HPP Belmeken is considered an exceptional achievement for its time, given the fact that construction began in the 1960s and lasted for 10 years - it was put into operation in 1975.
The Belmeken-Sestrimo-Momina Gorge cascade includes the Belmeken Pumped Storage Hydroelectric Power Station (SHP), the Sestrimo Hydroelectric Power Station, the Momina Gorge Hydroelectric Plant, the Belmeken Dam, the Stankovi baraki day leveler and the Momina Gorge Day leveler. It is located on the northeastern slopes of the Rila mountain and extends from 1920 m above sea level. at the Belmeken dam up to 251 m above sea level at the Momina Klisura hydroelectric power station. The total installed capacity of the cascade is 735 MW in generator mode and 104 MW in pump mode.
The system of dams, HPPs and HPPs operated by NEC allow flexible management of production capacities and successful energy storage, which is of essential importance in the context of the construction of new RES capacities.