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LIGNITE POWER<br />

Belchatow, pillar of Polish <strong>power</strong> – a utility perspective<br />

Piotr Szmaj, chief engineer, new unit, BOT Elektrownia Belchatow<br />

Even before the addition of the new 858 MWe <strong>supercritical</strong> unit (described in the<br />

main article), Belchatow hosted the largest <strong>coal</strong> (lignite) fired <strong>plant</strong> in Europe –<br />

with a current installed capacity of 4400 MWe (12 x 370 MWe) – and has been<br />

called the capital of the Polish <strong>power</strong> generation industry. Following completion<br />

of the modernisation programme started in 1997, which added 120 MWe to the<br />

installed capacity (by modernisation of the turbine LP stages), the <strong>plant</strong> fulfils all<br />

EU requirements and standards.<br />

Indeed, BOT Elektrownia Belchatow was the first company in Poland to receive<br />

a permit under the EU's Integrated Pollution Prevention Control (IPPC) scheme to<br />

run its installations in line with the IPPC directive.<br />

The <strong>power</strong> station being the lowest cost and the most efficient electricity<br />

producer in the country is a pillar of the Polish <strong>power</strong> generation industry,<br />

helping to stabilise the national energy market. Since the late 1990s, with an<br />

annual electricity output of about 28 TWh, Belchatow has provided some 20% of<br />

Poland's <strong>power</strong>, well ahead of any other <strong>power</strong> station.<br />

The design of the original Belchatow units was developed in the 1970s and did<br />

not anticipate any measures to limit emissions of sulphur oxides emissions because<br />

at that time flue gas desulphurisation technologies were largely unknown and only<br />

in the development phase. However, in the years 1988 to 1990, BOT Elektrownia<br />

Belchatow turned its attention to developments in Polish desulphurisation<br />

technologies as well as those being applied worldwide, and subsequently fitted<br />

FGD to ten of the 12 Belchatow units (numbers 3 to 12).<br />

To maintain a leading position in the Polish electricity market BOT Elektrownia<br />

Belchatow has adopted a strategy for capacity development, which entails<br />

comprehensive modernisation of Belchatow units 3 to 12, starting in 2007 – with the<br />

aim of enabling them to reach 320 thousand hours of operation, ie to operate until<br />

around 2035 – plus construction of the new unit, as described in the main article.<br />

The strategy, which assumes maintenance of high <strong>power</strong> production<br />

capabilities in association with optimal utilisation of available <strong>coal</strong> deposits<br />

(about 1 billion tonnes of lignite) in the Belchatow and Szczercow open cast<br />

mines, can be summarised as follows:<br />

• Construction of the new 858 MW <strong>power</strong> unit, with commercial operation scheduled<br />

for October 2010. This represents the largest investment of its kind yet in Poland.<br />

In 2001, official acceptance from the Ministry of the Treasury was obtained to<br />

commence a project to build a new 833 MW <strong>power</strong> unit. The capacity was<br />

subsequently increased to 858 MW, thanks to improved <strong>plant</strong> integration by EPC<br />

contractor Alstom. The tender procedure began in 2002 resulted in the selection<br />

of the Alstom consortium. The design was approved in 2005 and a construction<br />

permit issued. Construction work began in October 2006. The <strong>power</strong> <strong>plant</strong> will<br />

use best available technology (BAT), as required under IPPC, and will also fulfil the<br />

requirements of the EU Large Combustion Plant directive. First synchronisation<br />

with the Polish national grid is anticipated in February 2010. The project includes<br />

a new transmission link to the system switching station in Trebaczew.<br />

• Reconstruction and modernisation programme. Refurbishment of units 1 and 2<br />

(which do not have FGD) was done in 2004 and 2005, while modernisation of<br />

units 3-12 will be done according to the following schedule: unit 3 in 2007, unit 4<br />

Germany<br />

Belchatow<br />

in 2009, units 5 and 6 in 2010, units 7 and 8 in 2011, units 9 and 10 in 2012, and units 11 and 12 in 2013. The basic goals of the modernisation process<br />

include: extension of the operating lifetime of units 1 and 2 (to 2016) and of units 3-12 (to 2030-2035); improvement of operating performance; reduction<br />

in environmental impact, including compliance with EU Directive 2001/80/EC; and increase in turbine-generator unit <strong>power</strong> from 370 MW to 380 MW.<br />

The total investment cost (new build plus refurbishment) is 1.6 billion euro, with banks providing 880 million euro. The project won the<br />

Euromoney/Project Finance award for best European <strong>power</strong> deal of 2006.<br />

The new unit and the refurbishment programme are in line with BOT Elektrownia Belchatow's policy of striving to continuously upgrade and improve<br />

its <strong>power</strong> technology assets. The management system is also being continuously improved. The <strong>power</strong> <strong>plant</strong> holds a PCBC and IQNet certificate for an<br />

Integrated Management System for Quality, Environment, Occupational Safety and Information Security (IMS-ISO), compliant with the requirements of<br />

the PN-EN ISO 9001:2001, PN-N-18001:1999, PN-EN ISO 14001:1998 and PN-I-07799-2.<br />

Lodz<br />

Baltic Sea<br />

Piotrkow<br />

Trybunalski<br />

Poland<br />

Lodz<br />

Warsaw<br />

Slovakia<br />

Lithuania<br />

Belarus<br />

Ukraine<br />

Belchatow site, showing<br />

the 12 existing units<br />

Visualisation of the new 858 MWe unit at Belchatow, with<br />

existing units, right<br />

Poland's biggest<br />

The Belchatow extension will be the largest<br />

generating unit ever built in Poland and also the<br />

most efficient lignite <strong>plant</strong>, expected to achieve<br />

almost 42%.<br />

Alstom is supplying the <strong>plant</strong> to utility BOT<br />

Elektrownia Belchatow SA (which is owned by<br />

the state <strong>power</strong> generation holding company<br />

BOT Gornictwo i Energetyka) under a full<br />

turnkey EPC (engineering, procurement,<br />

construction and commissioning) contract. The<br />

contract was signed in December 2004 and the<br />

pre-engineering phase started immediately.<br />

Financial close and the official launch of the<br />

project (notice to proceed) was obtained in<br />

October 2006. Commercial operation is<br />

scheduled for the last quarter of 2010.<br />

There are already twelve 370 MWe lignite fired<br />

units at the Belchatow site, which started operation<br />

in the early 1980s and run in baseload mode. There<br />

was an urgent need to rehabilitate these units due<br />

to their age, emissions and economics.<br />

Ten of the units will be upgraded, over the period<br />

2007 to 2013, while the oldest two will be shut<br />

down permanently before 2016, with the new <strong>plant</strong><br />

more than making up the loss of <strong>power</strong> production.<br />

The end result will be increased electricity<br />

production in full compliance with European<br />

environmental regulations, including the Large<br />

Combustion Plant and Integrated Pollution<br />

Prevention and Control Directives.<br />

The total cost of the new <strong>plant</strong> plus the<br />

refurbishment of the existing units is estimated<br />

to be around 1.7 billion euros. The EBRD is<br />

providing a loan of 125 million euros for the<br />

new <strong>plant</strong>. Other investors include EIB, 220<br />

million euro, Nordic Investment Bank, 150<br />

million euro, and ING and Citibank, which are<br />

providing various facilities totalling 604<br />

million euro.<br />

BOT Elektrownia Belchatow decided to build<br />

the new 858 MWe unit as an extension of the<br />

existing unit in order to secure continuous<br />

deliveries of electricity to customers as well as<br />

maintaining a constant level of lignite<br />

consumption from the local open mine (a major<br />

cost factor for the <strong>power</strong> <strong>plant</strong>).<br />

Thanks to the project BOT Elektrownia<br />

Belchatow will:<br />

• secure its income by maintaining electricity<br />

production;

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