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China Funds And Builds Europe’s New Coal Power Plants

September 21, 2016

By Paul Homewood 

 

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From GWPF:

 

The Balkan region’s first privately-funded power plant came online on Tuesday, increasing the region’s dependency on coal-fired power stations even as environmental concerns are driving them to the brink of the extinction elsewhere in Europe. It was built by China’s Dongfang Electric Corp and financed with the help of a 350 million euro ($391.13 million) loan from the China Development Bank.

 

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Coal-fired power plant Stanari

 

 Planned coal power plants in south-eastern Europe; source Bankwatch 

 

The 300-megawatt plant, in the northern Bosnian town of Stanari, is a foreign investment in a chronically impoverished country that remains heavily dependent on foreign aid more than 20 years after it emerged from war.

Even though the Western Balkans has a power deficit, European investors are reluctant to finance more polluting coal which forms the backbone of supply in the region, attracting Chinese financiers and contractors.

Work on the investment, by Serbian-run but British-based Energy Financing Team (EFT), started in 2013. It was built by China’s Dongfang Electric Corp and financed with the help of a 350 million euro ($391.13 million) loan from the China Development Bank.

EFT, which focuses on power markets in central and southeast Europe, won a 30-year concession in 2008 to build the Stanari plant and expand an adjacent coal mine that will feed it at a total cost of 560 million euros ($625.63 million).

Lignite – the most polluting type of coal – is widely available in the Balkans, making it appealing to governments seeking ways of ensuring security of supply and keeping energy prices low while also placating influential mining lobbies.

The new plant, which will generate 2,000 gigawatt-hours of electricity per year, creating 1,000 jobs, will strengthen Bosnia’s position as a leading energy exporter to the region.

It generates more than 40 percent of its electricity from hydroelectric power, making it, along with Bulgaria and Romania, one of the few Balkan countries with a domestic power surplus.

Environmentalists fear that the region’s cash-strapped governments will be tempted to cut corners in this and other projects, exposing them to costly upgrade costs once they join the European Union.

Some 2,800 megawatts of extra coal-fired capacity is planned across the region in coming years at a total cost of 4.5 billion euros, most of it financed by China.

Meanwhile:

 

SARAJEVO (Bosnia and Herzegovina), September 20 (SeeNews) – Bosnian state-controlled coal miner Banovici [SAJ:RMUBR] plans to sign a contract for the construction of a 350 MW thermal power plant (TPP) with China’s Dongfang Electric Corporation at the Riga summit in November, the government of Bosnia’s Muslim-Croat Federation has said.

Works on the project, which were planned to begin in the middle of 2016, have been delayed due to 14 contentious issues which surfaced in the negotiations between Banovici and the Chinese company, the Federation government said in a statement on Monday.

A meeting in China over two of those issues will be scheduled, to be attended by representatives of both firms and the Federation government, as well as the Industrial and Commercial Bank of China (ICBC) and China Export&Credit Insurance Corporation (SINOSURE).

Banovici signed a strategic cooperation agreement with Dongfang Electric Corporation for the plant’s construction in November.

RMU Banovici is one of the biggest coal mines in the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.

http://www.thegwpf.com/china-builds-funds-europes-new-coal-power-plants/

 

 

Idiots like Ambrose Evans–Pritchard think that China is serious about cutting the use of fossil fuels!

Meanwhile the West continues to be taken for a ride.

12 Comments leave one →
  1. September 21, 2016 1:47 pm

    And Obama kills coal in West Virginia. Hillary Clinton went to Ohio in May and vowed she “would put a lot of coal miners out of work”. Heck, thousands in my state are already out of work thanks to Barry.

  2. Broadlands permalink
    September 21, 2016 1:49 pm

    Aren’t we all being “taken for a ride”? None of this will make a meaningful difference to the climate although it will surely disrupt social and economic conditions while trying.

  3. September 21, 2016 1:50 pm

    Not far away Greece also continues to develop its lignite mining and burning industries:

    http://www.tornosnews.gr/en/tourism-businesses/new-investments/18177-greek-power-company-to-sign-mou-with-china-for-lignite-fired-unit.html

    Greece also does an excellent job of winding up BBC “green” propagandists such as Simon Reeve, what fun to see his angst about their lack of recycling (“they’ve not been forced to recycle!”) and their abundant low-cost electricity, thanks to the absence of wind farms.

    • Ex-expat Colin permalink
      September 21, 2016 2:51 pm

      Saw that…was in 2 parts (on Youtube now). An appalling situation and the EU (Germany) don’t give a flying f…! Meanwhile we tow along as fools.

  4. Gerry, England permalink
    September 21, 2016 4:25 pm

    China is stepping in to fund many power plants that western finance because of their green stance won’t. They are steadily growing their influence and time will tell if it is benign or sinister.

    • Graeme No.3 permalink
      September 21, 2016 4:30 pm

      Gerry:
      When the subsidies stop the real cost of renewable sources means these coal fired plants will put them out of business. The Chinese will then make lots of money – they are keen on that.

  5. Robin Guenier permalink
    September 21, 2016 4:39 pm

    There are, as they say, “multiple lines of evidence” that China is unconcerned about AGW. Perhaps my favourite is its island building in the South China Sea: LINK There are doubtless good military and economic reasons for this – but these islands are only slightly above sea level. So, if China really thought that, because of AGW, they were likely to be swamped by sea level rise (or even at risk of such eventuality) within the foreseeable future, they would hardly be spending billions on these developments.

    All this – and much more – is in the public domain. Yet the West continually panders to China (see my comment here). We must be mad.

  6. It doesn't add up... permalink
    September 21, 2016 6:26 pm

    This tweet from Gummer is worthy of your attention:

    If only the climate frauds could expect the same treatment.

  7. September 21, 2016 8:33 pm

    Reblogged this on Climatism and commented:
    Smart China – builds Windmils and solar panels for the eco-brainwashed West. And when they fail to deliver quality and reliable power, they end up building and funding coal-fired power plants!

    Another “you cannot make this stuff up” scenario from the knee-jerk world of climate hysteria.

  8. September 21, 2016 9:33 pm

    The Southern Hemisphere shows no warming at all in the month of December over the last seventy years. Does the greenhouse effect take a holiday in December?

    Three ways to look at the data:


  9. David Ashton permalink
    September 22, 2016 1:09 am

    You are very hard on Ambrose, he isn’t an idiot, however, he is dishonest. He goes along with the consensus to ensure his invite to Davos every January.

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  1. China Financing, Building Coal-Fired Power Plants | The Drinking Water Advisor

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