November 20 (SeeNews) - Bosnian power utility Elektroprivreda Republike Srpske (ERS) plans to build a combined heat and power (CHP) plant which will run on natural gas, local media reported.
The company will pay more than 70,000 marka ($39,591/35,790 euro) to a consultant to conduct a feasibility study on whether the plan is cost-effective, news portal Capital.ba reported on Monday.
ERS is producing electricity at coal-fired and hydro power plants at present.
The study should show where to build the plant since natural gas is only available in a small part of the Serb Republic, the Bosnian entity where ERS operates. As an advantage, ERS sees the favourable price of natural gas as well as the fact that only some 40,000 apartments in the Serb Republic are connected to central heating systems.
"If no location is found to be suitable, it is necessary to choose a site which the development of gas supply infrastructure will make suitable for construction in the forthcoming period," Capital.ba said, citing from the project assignment.
Bosnia receives natural gas via Zvornik, on the border with Serbia. From there, the gas is transported to Sarajevo and surrounding municipalities.
The Serb Republic is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Federation.
(1 euro = 195583 marka)