Carbon costs for planned coal power plants in the Western Balkans and the risk of stranded assets
Briefing | 29 March 2017
This briefing analyses ten coal-fired power plant projects across the Western Balkans and finds that, once the cost of carbon emissions allowances are factored in, they could become a serious liability for both the companies involved and the public.
Promoters of new coal projects, primarily state owned utilities, have so far overlooked these extra costs. For example, the feasibility study summary for Serbia’s Kostolac B3 plant explains that carbon costs had been left out on the assumption that they would be covered by the state. In practice, however, state aid rules that apply to Serbia as a signatory to the Energy Community Treaty forbid this kind of payment.
- English version – download pdf
- Serbian version – download pdf
- Bosnia-Herzegovina version – download pdf
Theme: Energy & climate
Project: Banovici lignite power plant, Bosnia and Herzegovina | Kolubara B lignite-fired power plant, Serbia | Kosova e Re lignite power plant, Kosovo | Kostolac lignite power plant, Serbia | Pljevlja II lignite power plant, Montenegro | Stanari lignite power plant, Bosnia and Herzegovina | Tuzla 7 lignite power plant, Bosnia and Herzegovina | Ugljevik III lignite power plant, Bosnia and Herzegovina
Tags: CO2 allowances | Energy Community | carbon emissions | coal | emission limits | state aid | stranded assets
Never miss an update
We expose the risks of international public finance and bring critical updates from the ground. We believe that the billions of public money should work for people and the environment.