The Ugljevik coal mine and thermal power plant (RiTE Ugljevik) has not yet started extracting coal from the Ugljevik-Istok 2 deposit, as the company’s shareholders have not yet approved all required resolutions. According to RS Minister of Energy and Mining Petar Djokic, a shareholders’ assembly is scheduled for 16 December, where the company must formally confirm its intention to take over the concession area before any further steps can proceed.
Minister Djokic explained that the final contract with Comsar has already been signed. The current focus is on transferring operational responsibility to RiTE Ugljevik, with GAS-RES handling the technical and procedural aspects. After the shareholders’ meeting, RiTE Ugljevik will notify GAS-RES, which will then submit a request to the Ministry to start the concession procedure. The Concessions Commission has been instructed to review the case promptly.
Once the commission issues its decision, the Ministry drafts the concession agreement and submits it to the Office of the Attorney General for review, after which the government gives final approval and the contract is concluded. Minister Djokic estimated that these steps could be completed within five days once shareholder consent is granted.
Coal stock shortages
When asked about the insufficient coal stocks at RiTE Ugljevik, which have recently caused operational disruptions, acting director Žarko Novaković cited several underlying issues:
- The Ugljevik-Istok 1 deposit contains less coal than originally indicated by geological studies, with fragmented seams requiring more overburden removal and additional machinery.
- The energy quality of coal has declined. Instead of burning 6,000 tons per day as planned, the plant now needs 8,500–9,000 tons daily to maintain production.
- Longer transport routes from the excavation site to coal processing facilities, coupled with a reduced vehicle fleet, have contributed to the shortfall.
Financial challenges
Luka Petrovic, general director of the power utility ERS, noted that RiTE Ugljevik cannot maintain positive financial results while supplying electricity to ERS at the current price of €56/MWh. He stated that ERS would need to pay a higher price for electricity from the plant. Potential ways to secure the necessary funds include: internal savings, tariff adjustments, state recapitalization, or new loans. While the government can help keep prices affordable, it cannot sustain unsustainably low levels indefinitely.
Regarding future electricity pricing, Petrovic confirmed that ERS will continue to submit requests for price adjustments to the regulatory agency RERS annually. However, such requests do not guarantee price increases; lower prices may also be possible if new hydropower plants like Dabar and Bistrica come online and hydrological conditions are favorable.