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The Serbian government is planning a new 350 MW lignite plant at Kostolac in the country’s north-east. In spite of high level support and Chinese financing, the project is being plagued by concerns over pollution, state-aid and legal challenges.

Croatian plans to more than double the capacity of the Plomin coal power plant would have resulted in increased carbon-emissions for several decades. The project’s profitability was questionable and the plans were facing local opposition and conflicting regional legislation.

The Kolubara B thermal power plant site is situated near Kalenic village, 60 km south-west of Belgrade, at the northern side of the Tamnava Open Cast Mine. The decision to build the 2x350 MW plant was taken in 1983 and construction started in 1988. Construction progressed slowly until 1992, when work was suspended due to sanctions against Serbia. At this stage about 40 percent of the facility had already been constructed, partly with the assistance of a World Bank loan.

Linked to a slew of controversies, the Kolubara lignite mine in Serbia will receive loans from European public banks. Corruption allegations, pollution at local level, irregularities in resettlement of local populations and not to forget a climate damaging approach to energy investments should be reason enough to find alternatives to lignite mining.