Energynews 2010 VII 1 – Wind Power Projects In

Energy News in Southeast Europe two issues per month № 2010-VII/1 •17.07.2010

About: In this issue:

Main focus of Balkan Energy NEWS is energy related news from coun- July (1) 2010 edition of Balkan Energy NEWS, with tries of South East Europe. Countries involved are: Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Greece, FYR Macedonia, Montene- limited data. gro, Romania, and Serbia. Besides all regional energy related news, You can request free trial / latest issue on we are giving you in each issue one market analysis and review of the tenders announced and held in this area. You will be also able to see [email protected] review of relevant power exchanges.

News are published to subscribers only as an .pdf edition, two times per month Actual data Balkan Energy NEWS consulting: »» Power sector operational and market data for the period of 1.07.-15.07.2010. BalkanEnergy NEWS Consulting »» ATC auctions for Balkan region Consulting, intellectual and assistance services »» Forecasted weather conditions for the following period related to energy business in South Eastern Europe § § § Analysis: Why Balkan Energy NEWS consulting? »» Wind power projects in Balkan region (part 1) - More than six years in consulting business for SEE Energy Sector - More than five years leading info provider for energy business § § § in SEE. News headlines For more information contact us on [email protected] Bosnia and Herzegovina: »» Swiss Alpiq single candidate in tender for unit 7 in TPP Disclaimer: Tuzla All rights reserved by Balkan Energy Solutions Team. No part of this pub- »» EP BiH: 3.5 % increase in electricity production in H1 lication may be reproduced, redistributed, or in any other way copied as »» General Electric interested in providing the equipment for a whole or partially without written permission of Balkan Energy Solu- CCGT power plant in Zenica tions Team. This includes internal distribution. »» TPP Ugljevik started large-scale overhaul Balkan Energy Solutions Team does not warranty the accuracy of the published data contained in this document, although Balkan Energy Bulgaria: Solutions Team did great efforts to collect the data from the respectable and accurate sources. »» Gazpromneft to takeover 200 petrol stations of Petrol »» NEK lost 45 million euros in electricity contracts with EFT, Contact: EFT denies allegations Balkan Energy News office »» TPP AES Galabovo to be put in service in autumn www.NEWS.BalkanEnergy.com »» Enel: contract for sale of TPP Maritsa Iztok 3 not finalized [email protected] yet Subscriptions & info: »» Regulator to fine major electricity distributors [email protected] »» Energy minister: operational license for NPP Kozloduy to be www.news.balkanenergy.com/request.php prolonged by 20 years +381 64 820 90 31 »» Bulgargaz negotiated on reduction of import natural gas Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1 prices Serbia: »» PM Borisov and Russian deputy PM Zubkov made break- »» EPS: electricity prices could rise by 35-40 % through on joint energy projects »» Energy minister: participation in Belene project seriously »» Minister of finance: government to postpone 280 million considered euros payment for NPP Belene »» EPS: electricity production rose by 0.9 % in H1 »» Maritsa Iztok Mines reduced lignite prices by 4 % »» Comico oil did not abandon plans for new refinery »» EPS and SECI Energia established joint venture company Croatia: »» INA: 16 % increase in natural gas prices for companies; § § § price for households remains unchanged Tenders: (Electricity, Nuclear, Oil and gas, Wind) »» Lukoil submitted the best bid for purchase of fuel distributor Crobenz »» HEP: request for increase in electricity prices by 8-10 % »» Until L in CHPP Zagreb celebrates first year of operation »» JANAF signed contract for construction of new oil warehouses Greece »» 500 petrol stations closed in 2010 »» State not to sale its stake in PPC »» PPC to reduce commercial power rates

Macedonia »» New power lines announced »» Increased production in small HPPs »» 12 criminal charges submitted to REK Bitola

Montenegro: »» EPCG and NTE established joint venture Zeta Energy »» Parliament ratified agreement for construction of submarine power cable toward Italy »» Parliament ratified Hydrocarbons law »» High electricity production in HPPs in period January-May »» Agreement for construction of wind farm Mozura signed »» Government selected concessionaries for construction of small HPPs »» EPCG cancelled tender for import of electricity in 2011

Romania: »» CEZ: wind farm in Fantanele near completion »» Report on energy resources in period January-May 2010 »» CEZ abandons project for modernization of TPP Galati »» Natural gas pipeline toward Hungary to be operational in July »» Sources: shareholders agreement for units 3 and 4 in NPP Cernavoda to be extended »» Enel to start construction of 140 MW wind farm in Tulcea »» Government to sell minority stake in electricity distributors »» Electrica to merge electricity supply branches

2 Balkan Energy NEWS publication

• Energy news for SEE countries • Power market data per country (consumption/generation/export) • Electricity exchange trading data (HUPX, OPCOM, EEX, BSP) • Market analysis • Auctions for allocation of Available Transmission Capacities (ATC) • Energy tenders

NEWS: Our articles cover everything what can be important for producers, consumers traders and investors: ongoing projects for electricity generation, announced projects for electricity generation, changes in legislation, privatizations, hot topics, announcements for tenders, tender results, renewable energy, investments in transmission and distribution grid, electricity generation, consumption, export info, actualities related to natural gas and oil sectors, in fields of production and exploration of hydrocarbons and pipeline projects.

DATA: Our publication gives you overview of all important data on electricity generation, consumption, export, for both hourly and daily values, which is also delivered to subscribers in excel file (including tables and graphs). Electricity trading data, for day ahead and futures on important European power exchanges (HUPX, OPCOM, EEX, BSP) is also published, with annual comparisons and dif- ferences. Monthly auctions for allocation of Available Transmission Capacity (ATC) for relevant borders are also included.

ANALYSES: What makes us different from other news providers? Beside all important energy related news, in each edition we are publishing one market analysis, on various topics. List of already published editions (with analyses) can be found on our website (issues from 2006, 2007 and 2008 are free for download, as well as sample issues from recent years).

TRADITION: Since 2005, we have published 210 editions of Balkan Energy NEWS publication. Balkan Energy NEWS service exists for over 10 years, and during that period, we earned trust of major European utilities, generators, energy traders and investment banks

Annual company subscription - 800 EUR Two editions each month - 24 editions per subscription! Country Reports on Energy Business

For our “We are more than a news service” campaign, we prepared several Country Reports on Energy Business in South Eastern Europe. At the moment we have available up-to-date country reports for Bulgaria, Romania, Slove- nia, Croatia, Bosnia and Herzegovina, Montenegro, Serbia and FYR Macedonia. For each country, our reports give description and data on:

• Overview of the electricity market, 40% discount on April 2014 • Consumption, production and export characteristics • Actualities – hot topics update of Country Reports • Key market players, (290 EUR instead of 490 EUR) • Legislation and electricity market opening • Electricity prices and tariffs, • Potentials for investments in power generation, • Privatizations in power industry • Current state of RES sector

Price of individual reports is 290 EUR per country, and they are updated every three months. For each ordered report, you will receive updates during one year period, free of charge. For ordering all of the reports together, additional discount can be applied.

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• Country Report on Energy Business in Bosnia and Herzegovina – 67 pages • Country Report on Energy Business in Bulgaria – 72 pages • Country Report on Energy Business in Croatia – 61 pages • Country Report on Energy Business in Macedonia – 51 pages • Country Report on Energy Business in Montenegro – 59 pages • Country Report on Energy Business in Romania – 72 pages • Country Report on Energy Business in Serbia – 80 pages (free to download) • Country Report on Energy Business in Slovenia – 42 pages

If you wish to order Country Reports on Energy Business or have any questions, contact us on: Email: [email protected] Tel: +381 64 820 90 31 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

Power exchanges data:

Bosnia and Herzegovina: Electricity production in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 1128 986 955 934 933 939 1119 1317 1491 1548 1561 1572 1561 1580 1596 1684 1665 1519 1471 1492 1529 1623 1442 1275 2.7.2010 1097 1017 969 968 957 934 1144 1311 1493 1587 1597 1642 1671 1665 1589 1546 1557 1490 1484 1495 1523 1571 1410 1286 3.7.2010 1084 977 935 914 895 897 1062 1191 1401 1488 1504 1512 1510 1527 1550 1514 1494 1439 1426 1429 1475 1532 1365 1209 4.7.2010 1060 959 944 916 907 873 990 1096 1234 1356 1406 1443 1454 1383 1351 1319 1306 1295 1280 1292 1367 1407 1324 1161 5.7.2010 982 912 851 785 777 786 978 1210 1282 1322 1366 1364 1353 1393 1372 1384 1350 1303 1271 1278 1337 1416 1276 1115 6.7.2010 949 814 800 796 791 826 1007 1154 1288 1358 1382 1403 1475 1489 1510 1499 1473 1432 1412 1424 1481 1535 1385 1228 7.7.2010 1058 965 922 907 875 904 1043 1256 1397 1448 1441 1447 1426 1436 1469 1449 1408 1374 1345 1334 1393 1500 1374 1175 8.7.2010 1073 968 930 921 915 922 1055 1236 1350 1415 1414 1435 1426 1422 1447 1439 1430 1414 1396 1394 1415 1505 1395 1239 9.7.2010 1106 967 935 927 914 935 1048 1234 1354 1425 1417 1463 1439 1447 1475 1461 1450 1416 1373 1377 1421 1507 1389 1238 10.7.2010 1086 980 970 968 955 948 999 1179 1335 1404 1427 1444 1442 1431 1438 1430 1389 1348 1357 1359 1386 1478 1402 1246 11.7.2010 1089 978 952 946 949 935 953 1056 1223 1312 1366 1356 1381 1352 1322 1291 1283 1264 1248 1290 1350 1456 1385 1212 12.7.2010 1075 951 933 933 929 922 1002 1195 1359 1407 1353 1352 1407 1424 1425 1447 1431 1390 1348 1347 1386 1475 1391 1197 13.7.2010 1036 961 929 928 926 927 1029 1229 1371 1406 1456 1483 1480 1486 1497 1487 1457 1412 1353 1361 1454 1511 1434 1257 14.7.2010 1059 942 933 920 928 924 1043 1216 1256 1333 1346 1359 1342 1326 1402 1396 1368 1292 1271 1242 1322 1428 1305 1168 15.7.2010 1030 941 935 927 889 867 988 1177 1251 1259 1280 1313 1372 1380 1426 1413 1374 1303 1268 1278 1410 1526 1429 1292 Average: 1061 955 926 913 903 903 1031 1204 1339 1405 1421 1439 1449 1449 1458 1451 1429 1379 1354 1359 1417 1498 1380 1220

Bosnia and Herzegovina: Electricity consumption in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 1069 974 926 914 909 912 1017 1200 1315 1373 1394 1407 1403 1437 1480 1450 1417 1353 1317 1321 1390 1500 1369 1223 2.7.2010 1073 962 918 910 902 911 1036 1218 1343 1410 1422 1444 1454 1442 1497 1466 1447 1374 1352 1339 1403 1505 1394 1256 3.7.2010 1103 976 939 913 907 898 986 1163 1294 1406 1420 1453 1459 1458 1474 1454 1417 1355 1357 1353 1393 1492 1380 1237 4.7.2010 1097 992 949 918 908 875 906 1019 1154 1264 1314 1309 1316 1288 1258 1244 1238 1222 1222 1231 1319 1385 1331 1169 5.7.2010 1029 951 904 879 883 893 1016 1239 1337 1397 1434 1444 1441 1469 1467 1442 1415 1352 1316 1321 1381 1472 1368 1207 6.7.2010 1058 958 944 924 913 906 1011 1205 1333 1398 1414 1434 1443 1451 1473 1448 1424 1375 1353 1372 1437 1485 1344 1206 7.7.2010 1058 961 914 916 911 916 1015 1210 1322 1379 1371 1387 1377 1385 1418 1400 1357 1307 1275 1284 1346 1442 1326 1193 8.7.2010 1063 967 919 905 902 919 1049 1231 1342 1407 1397 1417 1415 1415 1439 1423 1391 1340 1316 1310 1383 1504 1392 1234 9.7.2010 1067 975 924 906 903 913 1031 1224 1337 1411 1414 1450 1445 1439 1474 1450 1434 1367 1316 1330 1382 1492 1384 1236 10.7.2010 1078 987 941 916 914 903 1002 1187 1325 1388 1417 1430 1432 1425 1428 1419 1381 1338 1312 1324 1371 1499 1399 1234 11.7.2010 1081 982 929 908 912 880 930 1061 1222 1314 1360 1345 1366 1353 1320 1287 1283 1258 1242 1275 1353 1470 1368 1231 12.7.2010 1060 954 914 896 908 912 1023 1221 1354 1421 1437 1468 1465 1481 1496 1481 1442 1394 1339 1336 1380 1497 1410 1247 13.7.2010 1111 1011 957 932 939 952 1068 1267 1389 1452 1459 1503 1540 1537 1544 1520 1490 1444 1405 1395 1456 1551 1443 1283 14.7.2010 1115 1010 970 937 954 963 1083 1275 1397 1475 1493 1520 1533 1536 1558 1539 1515 1456 1429 1407 1459 1570 1458 1324 15.7.2010 1119 997 982 977 977 977 1071 1286 1407 1455 1455 1504 1521 1521 1525 1535 1515 1420 1397 1382 1481 1571 1482 1312 Average: 1079 977 935 917 916 915 1016 1200 1325 1397 1413 1434 1441 1442 1457 1437 1411 1357 1330 1332 1396 1496 1390 1239

Bosnia and Herzegovina: Electricity expots in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 59 12 29 20 24 27 102 117 176 175 167 165 158 143 116 234 248 166 154 171 139 123 73 52 2.7.2010 24 55 51 58 55 23 108 93 150 177 175 198 217 223 92 80 110 116 132 156 120 66 16 30 3.7.2010 -19 1 -4 1 -12 -1 76 28 107 82 84 59 51 69 76 60 77 84 69 76 82 40 -15 -28 4.7.2010 -37 -33 -5 -2 -1 -2 84 77 80 92 92 134 138 95 93 75 68 73 58 61 48 22 -7 -8 5.7.2010 -47 -39 -53 -94 -106 -107 -38 -29 -55 -75 -68 -80 -88 -76 -95 -58 -65 -49 -45 -43 -44 -56 -92 -92 6.7.2010 -109 -144 -144 -128 -122 -80 -4 -51 -45 -40 -32 -31 32 38 37 51 49 57 59 52 44 50 41 22 7.7.2010 0 4 8 -9 -36 -12 28 46 75 69 70 60 49 51 51 49 51 67 70 50 47 58 48 -18 8.7.2010 10 1 11 16 13 3 6 5 8 8 17 18 11 7 8 16 39 74 80 84 32 1 3 5 9.7.2010 39 -8 11 21 11 22 17 10 17 14 3 13 -6 8 1 11 16 49 57 47 39 15 5 2 10.7.2010 8 -7 29 52 41 45 -3 -8 10 16 10 14 10 6 10 11 8 10 45 35 15 -21 3 12 11.7.2010 8 -4 23 38 37 55 23 -5 1 -2 6 11 15 -1 2 4 0 6 6 15 -3 -14 17 -19 12.7.2010 15 -3 19 37 21 10 -21 -26 5 -14 -84 -116 -58 -57 -71 -34 -11 -4 9 11 6 -22 -19 -50 13.7.2010 -75 -50 -28 -4 -13 -25 -39 -38 -18 -46 -3 -20 -60 -51 -47 -33 -33 -32 -52 -34 -2 -40 -9 -26 14.7.2010 -56 -68 -37 -17 -26 -39 -40 -59 -141 -142 -147 -161 -191 -210 -156 -143 -147 -164 -158 -165 -137 -142 -153 -156 15.7.2010 -89 -56 -47 -50 -88 -110 -83 -109 -156 -196 -175 -191 -149 -141 -99 -122 -141 -117 -129 -104 -71 -45 -53 -20 Average: -18 -23 -9 -4 -13 -13 14 3 14 8 8 5 9 7 1 13 18 22 24 27 21 2 -9 -20

Bosnia and Herzegovina: Average hourly export in last 15 days Bosnia and Herzegovina: Average consumption and production in last 15 days

30 1600

20 1400 1200 10 1000

0 800 Production MWh 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MWh 600 Consumption -10 400

-20 200

-30 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour Hour

5 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

Romania: Electricity consumption in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 5103 4850 4710 4681 4677 4677 4850 5414 5873 6130 6244 6244 6293 6333 6255 6121 6036 6015 5912 5916 5982 6248 6142 5548 2.7.2010 5211 4897 4750 4701 4701 4651 4847 5333 5910 6243 6392 6441 6441 6491 6342 6173 6068 5988 5922 5908 5952 6193 6124 5590 3.7.2010 5139 4898 4732 4675 4708 4570 4537 4791 5103 5338 5532 5577 5550 5521 5446 5345 5335 5308 5311 5323 5489 5903 5920 5341 4.7.2010 4939 4671 4543 4483 4404 4265 4135 4242 4510 4756 4902 4923 4970 4949 4904 4855 4874 4854 4872 4924 5072 5435 5532 5048 5.7.2010 4666 4397 4296 4236 4256 4235 4526 5198 5759 6062 6231 6289 6312 6339 6276 6152 6087 5995 5894 5879 5949 6193 6237 5562 6.7.2010 5143 4846 4698 4691 4701 4702 4873 5437 5954 6174 6277 6323 6407 6446 6350 6227 6186 6095 5976 5951 5998 6241 6291 5661 7.7.2010 5237 4959 4870 4820 4800 4799 4972 5583 6067 6296 6365 6375 6384 6463 6364 6236 6117 6017 5921 5893 6020 6294 6247 5662 8.7.2010 5200 4946 4796 4676 4723 4667 4816 5380 5921 6213 6292 6262 6291 6361 6292 6164 6114 6038 5976 5987 6071 6290 6268 5679 9.7.2010 5222 4972 4850 4780 4780 4761 4952 5445 5929 6220 6318 6338 6366 6377 6267 6150 6071 5971 5892 5865 5954 6239 6173 5639 10.7.2010 5294 5024 4865 4796 4770 4678 4631 4846 5232 5503 5606 5644 5644 5604 5493 5397 5388 5389 5387 5397 5546 5840 5822 5379 11.7.2010 4968 4695 4558 4418 4348 4229 4079 4267 4505 4731 4840 4889 4937 4915 4829 4790 4809 4818 4846 4895 5060 5397 5436 4990 12.7.2010 4689 4442 4323 4273 4293 4263 4535 5249 5828 6114 6273 6352 6397 6427 6328 6198 6096 5998 5923 5906 6079 6326 6227 5649 13.7.2010 5303 5041 4917 4889 4869 4887 5012 5439 5959 6347 6572 6702 6772 6872 6672 6522 6374 6299 6203 6155 6240 6526 6425 5767 14.7.2010 5421 5253 5088 5069 5069 5019 5145 5714 6279 6606 6723 6818 6848 6947 6898 6720 6574 6484 6389 6345 6417 6714 6615 5954 15.7.2010 5477 5230 5074 4977 4986 4906 5112 5635 6174 6542 6678 6788 6776 6796 6676 6551 6432 6303 6138 6097 6164 6529 6489 5901 Average: 5134 4875 4738 4678 4672 4621 4735 5198 5667 5952 6083 6131 6159 6189 6093 5973 5904 5838 5771 5763 5866 6158 6130 5558

Romania: Electricity net export in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 436 436 426 425 423 442 464 479 600 597 597 591 593 594 595 596 598 598 598 594 514 453 407 413 2.7.2010 564 565 524 555 543 556 598 675 716 715 714 711 711 711 713 713 713 713 712 710 610 562 584 530 3.7.2010 598 599 600 601 601 615 640 651 674 681 680 679 680 643 681 643 642 642 642 638 563 546 587 547 4.7.2010 442 443 444 446 446 470 497 497 579 578 578 579 579 529 529 530 530 530 530 527 464 463 483 459 5.7.2010 458 461 461 463 461 472 509 605 635 634 633 630 630 582 583 584 585 585 585 585 495 477 439 409 6.7.2010 546 548 549 551 550 550 592 583 683 682 681 678 677 678 678 680 681 681 682 679 554 552 551 513 7.7.2010 453 453 451 456 456 450 489 466 500 498 519 493 493 495 494 496 497 508 521 510 454 454 355 360 8.7.2010 503 500 506 445 506 501 438 448 474 492 492 492 467 467 494 471 477 497 498 495 372 346 341 285 9.7.2010 515 518 518 519 530 523 444 450 514 513 511 511 513 512 528 529 530 529 579 557 407 360 376 344 10.7.2010 538 539 540 585 585 564 617 620 538 536 536 537 537 539 533 534 534 533 533 537 431 427 468 447 11.7.2010 458 396 410 423 423 439 501 504 529 550 548 549 550 550 550 532 532 531 529 527 511 511 501 471 12.7.2010 418 395 411 419 418 437 545 545 647 646 645 646 645 646 646 648 648 650 650 653 575 576 501 460 13.7.2010 583 586 569 560 570 572 614 653 676 685 669 668 669 669 685 686 688 682 682 681 643 556 614 531 14.7.2010 476 479 473 475 476 494 521 551 691 702 700 700 655 701 701 702 692 698 701 698 521 488 570 484 15.7.2010 502 504 515 504 522 519 605 666 742 741 740 740 740 737 741 743 744 744 745 743 651 572 594 574 Average: 499 495 493 495 501 507 538 560 613 617 616 614 609 604 610 606 606 608 612 609 518 490 491 455

Romania: Average consumption in last 15 days Romania: Average hourly net export in last 15 days

7000 700

6000 600

5000 500

4000 400 MWh 3000 MWh 300

2000 200

1000 100

0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Montenegro: Electricity export in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 2.7.2010 3.7.2010 -96 -185 -174 -164 -165 -153 -177 -189 -164 -117 -72 11 -1 15 15 11 -43 -41 25 1 -28 -56 -56 -105 4.7.2010 -166 -205 -193 -202 -166 -172 -180 -161 -178 -194 -187 -217 -205 -241 -131 -181 -212 -198 -195 -208 -199 -175 -248 -299 5.7.2010 -215 -169 -145 -141 -124 -125 -122 -115 -66 25 45 120 82 70 53 -10 -65 -65 -74 -64 -80 -48 -96 -231 6.7.2010 -222 -179 -179 -170 -169 -155 -152 -189 -111 -13 -20 21 51 30 37 -34 -70 -117 -149 -133 -4 -46 -88 -212 7.7.2010 -225 -191 -191 -176 -159 -157 -160 -175 -109 -110 -98 -121 -130 -129 -124 -116 -122 -124 -127 -159 -226 -171 -232 -234 8.7.2010 -202 -180 -185 -167 -163 -144 -151 -169 -93 -98 -93 -73 -88 -95 -96 -87 -89 -79 -88 -116 -99 -15 -147 -256 9.7.2010 -217 -167 -154 -136 -121 -130 -144 -121 -91 -14 59 123 65 3 -77 -86 -73 -65 -77 -122 -74 -66 -165 -262 10.7.2010 -407 -364 -332 -320 -309 -307 -339 -348 -329 -343 -229 -140 -254 -322 -315 -304 -297 -297 -322 -352 -294 -224 -265 -401 11.7.2010 -393 -351 -330 -320 -311 -307 -334 -376 -377 -374 -376 -373 -373 -374 -372 -364 -376 -376 -381 -400 -320 -265 -298 -328 12.7.2010 -379 -351 -332 -322 -314 -310 -346 -349 -147 -102 -66 -51 -72 -69 -57 -57 -72 -62 -86 -53 -71 -76 -78 -45 13.7.2010 -74 -170 -172 -162 -150 -136 -126 12 48 45 40 63 49 48 57 62 65 37 28 -17 -83 -106 -91 -105 14.7.2010 -199 -198 -178 -167 -157 -156 -175 -159 -16 -33 -65 -18 -31 -49 -101 -106 -29 -49 -170 -199 -139 -89 -165 -271 15.7.2010 -218 -194 -179 -167 -158 -159 -188 -209 -234 -223 -108 -45 -72 -117 -127 -115 -70 -107 -124 -132 -122 -111 -117 -156 Average: -232 -223 -211 -201 -190 -185 -200 -196 -144 -119 -90 -54 -75 -95 -95 -107 -112 -119 -134 -150 -134 -111 -157 -223

6 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

Montenegro: Electricity exports in last 15 days per border (MWh)

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010 10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010 Montenegro - Albania 1898 1977 1674 1314 1301 1869 1475 1877 1365 916 748 381 450 Montenegro - BiH -4255 -4908 -378 -1548 -2903 -3308 -1876 -6014 -5621 -1044 974 -453 -624 Montenegro - Serbia 603 -3146 -5414 -4327 -4823 -3667 -4096 -6148 -7786 -7840 -6086 -6537 -7584 Total -1754 -6077 -4118 -4561 -6425 -5106 -4497 -10285 -12042 -7968 -4364 -6609 -7758

Montenegro: Average Hourly exports in last 15 days

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 -50

-100 MWh -150

-200

-250 Hour

Greece: Electricity consumption in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 5650 5170 4870 4720 4650 4720 4900 5600 6340 6900 7150 7350 7500 7480 7140 6700 6500 6600 6730 6770 6950 7230 6780 6230 2.7.2010 6100 5580 5280 5130 5060 5100 5300 6120 6850 7330 7630 7850 8000 7980 7650 7200 7000 7050 7200 7150 7250 7550 7150 6650 3.7.2010 6000 5550 5250 5100 5000 4950 4900 5220 5950 6550 6950 7250 7500 7450 7000 6600 6450 6440 6500 6530 6700 7250 6800 6300 4.7.2010 5950 5500 5180 5000 4860 4800 4620 4750 5200 5630 6100 6500 6650 6530 6100 5850 5750 5800 5900 6000 6360 7050 6750 6380 5.7.2010 5909 5417 5118 4963 4893 4944 5151 5955 6934 7620 7946 8249 8523 8600 8309 7825 7445 7258 7274 7271 7648 7962 7456 6814 6.7.2010 6280 5740 5400 5250 5170 5200 5370 6130 7100 7820 8220 8550 8880 8880 8530 8050 7700 7570 7650 7600 7720 7950 7500 6950 7.7.2010 6620 6080 5730 5550 5460 5460 5580 6400 7290 8100 8410 8750 8950 9000 8770 8330 8000 7900 7900 7900 7900 8200 7900 7400 8.7.2010 6790 6220 5900 5660 5510 5500 5600 6450 7280 7940 8300 8650 8860 8900 8610 8300 8030 8000 8050 8000 8000 8130 7820 7350 9.7.2010 6420 5920 5620 5420 5340 5360 5540 6280 7120 7840 8140 8350 8550 8550 8300 7960 7700 7650 7650 7600 7650 8000 7600 7200 10.7.2010 6390 5920 5610 5420 5300 5230 5150 5510 6210 6840 7260 7530 7730 7740 7410 7030 6850 6850 6870 6820 6960 7470 7170 6710 11.7.2010 5950 5500 5210 5000 4880 4780 4580 4750 5200 5600 6100 6450 6600 6500 6200 6000 6000 6100 6230 6300 6500 7100 7070 6550 12.7.2010 6130 5620 5300 5100 5030 5050 5240 5950 6700 7550 7900 8200 8450 8570 8340 7930 7650 7580 7560 7560 7620 8000 7550 7120 13.7.2010 6730 6200 5820 5620 5520 5520 5640 6380 7160 7980 8320 8660 8980 9050 8760 8380 8160 8100 8160 8100 8100 8250 7850 7500 14.7.2010 7120 6600 6140 5900 5780 5830 6040 6760 7600 8420 8900 9300 9650 9850 9720 9400 9100 8900 8800 8550 8500 8650 8400 8000 15.7.2010 7220 6680 6260 6050 5950 5920 6050 6760 7680 8500 8950 9350 9700 9950 9800 9550 9300 9280 9280 9130 9020 9120 8700 8350 Average: 6351 5846 5513 5326 5227 5224 5311 5934 6708 7375 7752 8066 8302 8335 8043 7674 7442 7405 7450 7419 7525 7861 7500 7034

Greece: System Marginal Prices in last 15 days

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 66.14 31.96 31.75 31.24 31.11 31.00 31.16 31.93 35.13 66.26 66.33 66.25 66.22 66.12 60.36 34.51 32.14 60.26 60.26 60.27 32.30 32.99 34.52 32.31 2.7.2010 34.48 32.24 31.88 31.86 31.78 31.78 31.87 35.11 66.25 66.26 66.25 66.45 66.50 66.40 66.26 66.23 66.19 60.34 66.23 60.36 32.32 32.38 60.36 35.21 3.7.2010 31.86 31.86 31.34 31.18 30.90 30.87 30.48 30.91 32.13 34.50 68.50 59.52 59.52 35.18 34.55 32.14 32.07 32.27 32.14 32.27 32.94 59.52 35.16 31.94 4.7.2010 31.86 32.12 31.88 31.77 31.26 31.13 30.21 28.13 31.34 32.04 31.93 31.88 31.88 31.88 31.85 31.87 31.86 31.94 31.95 32.06 31.85 31.90 32.08 31.98 5.7.2010 66.14 31.86 31.33 31.19 31.02 31.15 31.21 31.96 34.54 66.25 60.43 60.45 66.45 66.57 35.41 34.57 60.02 60.33 60.02 60.33 60.02 66.30 60.02 60.28 6.7.2010 66.24 34.45 31.95 31.88 30.77 30.89 31.79 33.44 68.27 66.34 68.35 68.44 69.01 66.69 66.56 66.40 66.28 68.20 66.26 66.25 32.21 60.43 66.22 66.28 7.7.2010 59.11 42.05 32.91 31.77 30.88 30.08 30.87 32.90 42.11 46.29 69.01 69.01 69.01 69.01 59.64 46.34 46.29 46.27 59.41 46.37 46.27 46.29 46.37 46.26 8.7.2010 42.09 42.08 31.95 31.76 31.31 31.20 31.16 34.50 46.21 69.00 69.00 69.01 69.01 69.01 60.12 69.01 69.01 69.00 60.11 59.43 46.29 46.29 46.24 46.18 9.7.2010 32.14 31.86 31.18 30.91 30.77 30.50 30.87 32.32 60.11 46.15 46.19 46.24 46.40 46.40 46.32 46.29 46.20 46.19 46.09 46.08 46.09 46.29 69.00 59.36 10.7.2010 32.07 31.95 31.76 31.21 31.03 30.89 30.50 31.02 31.76 32.96 35.20 46.07 42.12 42.12 34.54 32.00 31.90 31.90 31.98 31.97 32.11 32.31 33.54 35.15 11.7.2010 31.01 31.33 31.16 30.86 30.71 30.43 30.23 29.33 31.19 31.84 31.95 31.98 32.07 32.14 32.25 32.31 32.25 32.30 32.31 32.32 32.27 32.19 35.27 46.05 12.7.2010 46.15 32.04 31.34 31.18 30.76 30.49 31.05 31.87 46.16 46.17 46.27 46.29 46.28 46.40 46.34 32.43 32.33 35.20 35.26 34.53 46.08 42.19 42.09 42.14 13.7.2010 59.11 46.16 32.26 31.68 31.28 31.03 31.16 31.95 42.15 46.29 46.33 46.42 46.52 46.52 46.45 46.35 46.29 46.29 46.29 69.01 60.12 69.01 68.24 68.20 14.7.2010 68.27 46.16 32.30 31.95 31.85 31.87 31.94 46.17 68.09 68.30 68.54 68.71 69.01 69.01 69.01 69.01 69.01 68.54 69.01 68.44 68.43 68.47 69.01 69.00 15.7.2010 59.11 46.15 31.94 31.85 31.78 31.34 31.32 32.08 46.19 68.43 69.01 69.01 69.01 69.01 69.01 69.01 69.01 69.01 69.01 68.65 68.59 69.01 69.01 69.00 Average: 48.39 36.28 31.80 31.49 31.15 30.98 31.05 32.91 45.44 52.47 56.22 56.38 56.60 54.83 50.58 47.23 48.72 50.54 51.09 51.22 44.53 49.04 51.14 49.29

Greece: Electricity prices, HTSO Greece: Average hourly consumption in last 15 days

80.00 9000 70.00 60.00 8000 50.00 7000

40.00 6000 30.00 EUR/MWh 5000 20.00 10.00 MWh 4000 0.00 3000

2000

1000 1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010

10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010

minimal price average price maximal price 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour

7 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

Opcom, Romania: Traded energy in last 15 days (MWh)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.7.2010 1140 1105 1069 1046 1046 1068 1084 977 1054 1192 1229 1201 1223 1226 1211 1202 1155 1096 1057 1035 1028 1029 1048 1112 2.7.2010 1062 1107 1094 1037 1078 1078 1024 982 1147 1194 1227 1232 1205 1234 1228 1174 1135 1108 1121 1099 1110 1063 1059 1231 3.7.2010 1222 1151 1148 1139 1150 1123 1063 1016 1071 1145 1175 1155 1162 1165 1093 1101 1028 1035 1030 1053 1092 1082 1078 1194 4.7.2010 1070 953 939 899 897 889 811 769 798 912 920 930 935 924 864 861 856 855 840 840 873 877 943 966 5.7.2010 954 1009 981 976 994 1026 1099 986 1196 1238 1267 1271 1243 1241 1143 1092 1054 999 973 950 965 954 1023 1104 6.7.2010 1172 1267 1230 1232 1245 1273 1235 1154 1208 1315 1340 1362 1288 1279 1252 1195 1153 1104 1076 1052 1037 967 1084 1205 7.7.2010 1179 1092 1082 1107 1114 1144 1163 1012 1089 957 964 947 950 945 931 922 919 944 970 989 955 918 884 1057 8.7.2010 1033 1113 1095 1142 1102 1183 1158 967 1014 1004 1005 996 964 954 958 941 966 973 991 970 981 867 906 1011 9.7.2010 945 1141 1131 1113 1108 1132 1088 913 968 983 1012 1012 973 1184 942 936 940 995 990 1008 1013 896 1001 1041 10.7.2010 1216 1289 1310 1199 1169 1150 1034 1007 1018 925 951 910 917 922 900 874 851 853 853 875 922 836 839 988 11.7.2010 1132 1122 1033 986 992 977 870 873 911 971 995 998 997 999 995 983 958 950 930 925 941 982 1126 1111 12.7.2010 1132 1122 1033 986 992 977 870 873 911 971 995 998 997 999 995 983 958 950 930 925 941 982 1126 1111 13.7.2010 1205 1201 1181 1165 1155 1193 1209 1063 1187 1238 1264 1239 1196 1150 1176 1204 1185 1161 1151 1136 1132 1084 1114 1401 14.7.2010 1339 1219 1178 1160 1172 1201 1217 1133 1241 1438 1484 1465 1460 1391 1427 1449 1411 1331 1269 1281 1278 1138 1207 1390 15.7.2010 1316 1224 1192 1190 1189 1230 1266 1211 1342 1385 1440 1428 1380 1376 1366 1381 1362 1352 1298 1266 1308 1201 1242 1437 Average: 1141 1141 1113 1092 1093 1110 1079 996 1077 1124 1151 1143 1126 1133 1099 1086 1062 1047 1032 1027 1038 992 1045 1157

Opcom, Romania: Prices in last 15 days (EUR/MWh)

Opcom, Romania: Prices and quantities in last 15 days (EUR/MWh)

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010 10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010 Base Price 30.39 36.40 35.20 19.49 30.63 31.78 43.73 42.09 41.35 12.72 12.70 37.56 42.28 35.84 41.84 Base Quantity 26633 27030 26670 21420 25735 28723 24233 24293 24464 23807 23756 23756 28390 31281 31381 Day Price 36.23 42.83 38.10 19.30 37.14 37.37 48.50 46.98 48.10 11.60 11.75 46.37 46.26 41.91 45.83 Day Quantity 17999 18283 17466 13863 17669 19016 15575 15708 15852 14648 15276 15276 18775 21413 21361 Night Price 18.71 23.55 29.40 19.89 17.63 20.59 34.20 32.29 27.86 14.96 14.60 19.94 34.34 23.72 33.88 Night Quatity 8634 8747 9205 7557 8067 9708 8658 8585 8612 9159 8480 8480 9614 9867 10020

OPCOM, Romania - Traded energy OPCOM, Romania - Prices 35000 60

30000 50

25000 40

20000 30 MWh 15000 EUR/MWh 20

10000 10 5000 0 0

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010

10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010 1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010 10.7.201011.7.201012.7.201013.7.201014.7.201015.7.2010 minimal price average price maximal price

OPCOM, Romania - Prices 60 Day Energy (06-22h) 50 Base energy (00-24h) 40 Night energy (22-06h)

30 EUR/MWh 20

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010

10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010

Night Day Base

8 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

Mepso, Macedonia: Production and consumption (MWh)

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010 10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010 Hydro generation 3071 3349 3125 3506 2754 3669 3490 3219 2968 2914 3056 3385 3125 3859 3839 Thermal generation 13960 13904 13643 13305 14030 13872 13894 13945 14033 13987 15408 15652 15223 15755 15886 Total production 17031 17253 16768 16811 16784 17541 17384 17164 17001 16901 18464 19037 18348 19614 19725 Import -1816 -1430 -1728 -1842 -1544 -1345 -943 -1275 -1455 -1758 -432 -96 143 -222 1 Total consumption in FYROM 18847 18683 18496 18653 18328 18886 18327 18439 18456 18659 18896 19133 18205 19836 19724

Consumption and production in last 15 days Macedonia 20500 20000 19500 19000 18500 18000

MWh 17500 17000 16500 16000 15500 15000

1.7.2010 2.7.2010 3.7.2010 4.7.2010 5.7.2010 6.7.2010 7.7.2010 8.7.2010 9.7.2010 10.7.2010 11.7.2010 12.7.2010 13.7.2010 14.7.2010 15.7.2010

Total production Total consumption

Forecasted weather conditions for the following period

Date Albania Bosnia and Bulgaria Croatia Greece Macedonia Montenegro Romania Serbia Tirana Herzegovina Sofia Zagreb Athens Skopje Podgorica Bucharest Belgrade Sarajevo 17.07. T: 23 - 35 T: 20 - 33 T: 16 - 33 T: 20 - 35 T: 23 - 33 T: 16 - 34 T: 25 - 37 T: 19 - 33 T: 21 - 34 W: NW 20 W: - W: NE 15 W: E 10 W: NE 30 W: - W: NE 10 W: NE 9 W: E 9 R: 1 R: 1 R: - R: 4 R: - R: - R: 1 R: R: - 18.07. T: 21 - 33 T: 17 - 28 T: 15 - 31 T: 16 - 27 T: 24 - 33 T: 14 - 34 T: 24 - 35 T: 19 - 35 T: 19 - 34 W: NE 17 W: NW 10 W: NE 10 W: NE 17 W: NE 25 W: NE 10 W: SE 10 W: NE 9 W: SE 13 R: 2 R: 3 R: - R: 8 R: - R: - R: 5 R: - R: 19.07. T: 20 - 32 T: 15 - 29 T: 17 - 30 T: 20 - 30 T: 24 - 35 T: 16 - 31 T: 23 - 32 T: 20 - 34 T: 21 - 33 W: NE 13 W: - W: NE 10 W: NE 10 W: NW 28 W: - W: E 20 W: NE 8 W: NE 14 R: - R: 3 R: - R: - R: - R: - R: 1 R: - R: 5 20.07. T: 19 - 32 T: 15 - 29 T: 17 - 30 T: 18 - 30 T: 24 -34 T: 19 - 31 T: 20 - 33 T: 18 - 32 T: 21 - 31 W: N 20 W: SW 15 W: - W: - W: NE 28 W: - W: N 10 W: N 9 W: - R: - R: 8 R: - R: 1 R: - R: - R: - R: - R: 4 21.07. T: 17 - 31 T: 15 - 27 T: 19 - 30 T: 17 - 31 T: 25 - 34 T: 18 - 31 T: 16 - 34 T: 18 - 32 T: 21 - 30 W: NW 20 W: - W: NE 9 W: SW 15 W: NE 25 W: NE 10 W: S 15 W: - W: - R: - R: 1 R: 1 R: - R: - R: - R: - R: 2 R: 1 22.07. T: 22 - 32 T: 13 - 29 T: 17 - 29 T: 16 - 33 T: 26 - 34 T: 19 - 31 T: 24 - 33 T: 20 - 33 T: 18 - 33 W: N 23 W: - W: - W: SE 10 W: NE 25 W: - W: - W: NE 15 W: NW 13 R: - R: - R: 1 R: - R: - R: - R: 1 R: - R: - July Temp: 17-31 Temp: 12.8-25.5 Temp: 14-26 Temp: 14.2-26.7 Temp: 20.8-33 Temp: 15-29.8 Temp:20.3-31.8 Temp: 15.6-29 Temp: 16-27.3 Averages Rain: 40 Rain: 79 Rain: 63 Rain: 81 Rain: 5.8 Rain: 34 Rain: 38 Rain: 64 Rain: 66 Rain days: - Rain days: 9 Rain days: 10 Rain days: 11 Rain days: 2 Rain days: 7 Rain days: 5 Rain days: 7 Rain days: 10

T: Temperature in celsius degrees W: Wind speed in km/h, S – South, W – West, N – North, E – East and variables; “-” - no wind; “L-V” - Light and variable R: Rain in mm S: Snow in mm

9 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

Tables with offered Aailable Transfer Capacities (ATC) in Transelectrica - Romania August 2010. Balkan region for August 2010 Border+Direction TTC TRM NTC AAC ATC Validity period: IMPORT NOS BIH - Bosnia & Herzegovina August 2010. Bulgaria > Romania 300 100 200 90 110 01.-31.08.2010 Border+Direction TTC TRM NTC AAC ATC Validity period: Serbia > Romania 400 100 150 50 100 01.-31.08.2010 IMPORT Hungary > Romania 700 100 600 150 450 01.-31.08.2010 Croatia > BIH - - 400 - 100 01.-31.08.2010 Ucraine > Romania 300 100 200 50 150 01.-31.08.2010 Montenegro > BIH - - 350 - 175 01.-31.08.2010 EXPORT Serbia > BIH - - 450 - 225 01.-31.08.2010 Romania > Bulgaria 300 100 200 100 100 01.-31.08.2010 EXPORT 600 100 250 50 200 01.-08.08.2010 BIH > Croatia - - 720 - 280 01.-31.08.2010 500 100 200 50 150 09.-14.08.2010 Romania > Serbia BIH > Montenegro - - 350 - 174 01.-31.08.2010 600 100 250 50 200 15.-21.08.2010 BIH > Serbia - - 400 - 195 01.-31.08.2010 700 100 300 50 250 22.-31.08.2010 400 100 300 200 100 01.-08.08.2010 ESO - Bulgaria August 2010. 300 100 200 200 0 09.-14.08.2010 Romania > Hungary Border+Direction TTC TRM NTC AAC ATC Validity period: 400 100 300 200 100 15.-22.08.2010 IMPORT 450 100 350 200 150 23.-31.08.2010 Serbia > Bulgaria - - 200 - 80 01.-31.08.2010 Romania > Ucraine 150 100 50 50 0 01.-31.08.2010 Romania > Bulgaria - - 200 - 100 01.-31.08.2010 *Bulgarian border - auction for 100% of ATC, held by ESO-EAD Macedonia > Bulgaria - - 0 - 0 01.-31.08.2010 **Hungarian border - auction for 100% of ATC, held by Transelectrica ***Ukrainian border - auction for 100% of ATC Greece > Bulgaria - - 200 - 90 01.-31.08.2010 EXPORT EMS - Serbia August 2010. Bulgaria > Serbia - - 550 - 240 01.-31.08.2010 Border+Direction TTC TRM NTC AAC ATC Validity period: Bulgaria > Romania - - 200 - 110 01.-31.08.2010 IMPORT Bulgaria > Macedonia - - 300 - 100 01.-31.08.2010 Albania > Serbia 260 50 210 25 80 01.-31.08.2010 Bulgaria > Greece - - 850 - 325 01.-31.08.2010 BiH > Serbia 500 100 400 50 150 01.-31.08.2010 Bulgaria > Serbia 650 100 550 50 225 01.-31.08.2010 MAVIR - Hungary August 2010. Croatia > Serbia 500 100 400 49 151 01.-31.08.2010 Border+Direction TTC TRM NTC AAC ATC Validity period: Hungary > Serbia 700 100 600 50 250 01.-31.08.2010 IMPORT Montenegro > Serbia 500 150 350 55 120 01.-31.08.2010 400 100 300 200 100 01.-08.08.2010 Macedonia > Serbia 300 100 200 50 50 01.-31.08.2010 300 100 200 200 0 09.-14.08.2010 Romania > Hungary 600 100 500 50 200 01.-08.08.2010 400 100 300 200 100 15.-22.08.2010 500 100 400 50 150 09.-14.08.2010 450 100 350 200 150 23.-31.08.2010 Romania > Serbia 600 100 500 50 200 15.-21.08.2010 Serbia > Hungary 550 100 450 50 175 01.-31.08.2010 700 100 600 50 250 22.-31.08.2010 EXPORT EXPORT Hungary > Romania 700 100 600 150 450 01.-31.08.2010 Serbia > Albania 260 50 210 25 80 01.-31.08.2010 Hungary > Serbia 700 100 600 50 250 01.-31.08.2010 Serbia > BiH 550 100 450 24 201 01.-31.08.2010 *Romanian border - auction for 100% of ATC, held by Transelectrica Serbia > Bulgaria 300 100 200 25 75 01.-31.08.2010 Serbia > Croatia 550 100 450 50 175 01.-31.08.2010 MEPSO - Macedonia August 2010. Serbia > Hungary 550 100 450 50 175 01.-31.08.2010 Border+Direction TTC TRM NTC AAC ATC Validity period: Serbia > Montenegro 650 150 500 79 171 01.-31.08.2010 IMPORT Serbia > Macedonia 650 100 550 50 225 01.-31.08.2010 Serbia > Macedonia 650 100 550 35 240 01.-31.08.2010 Serbia > Romania 400 100 300 50 100 01.-31.08.2010 Bulgaria > Macedonia 400 100 300 25 125 01.-31.08.2010 * - No information available Greece > Macedonia 400 100 300 0 150 01.-31.08.2010 EXPORT Macedonia > Serbia 300 100 200 0 100 01.-31.08.2010 Macedonia > Bulgaria 100 100 0 0 0 01.-31.08.2010 Macedonia > Greece 220 100 120 0 60 01.-31.08.2010

TSO EPCG - Montenegro August 2010. Border+Direction TTC TRM NTC AAC ATC Validity period: IMPORT Albania > Montenegro - - - - 50 01.-31.08.2010 BIH > Montenegro - - - - 100 01.-31.08.2010 Serbia > Montenegro - - - - 120 01.-31.08.2010 EXPORT Montenegro > Albania - - - - 50 01.-31.08.2010 Montenegro > BIH - - - - 100 01.-31.08.2010 Montenegro > Serbia - - - - 100 01.-31.08.2010

10 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers periodIssue 1.7.2010-15.7.2010 No: 2007-III/1

- TTC (Total Transfer Capacity) Analysis:

- TRM (Transmission Reliability Margin) Wind power projects in Balkan region (part 1) - NTC (Net Transfer Capacity) values in previous tables, represents commonly correlated values, given per each border and per each Albania direction on the respective border. (Please note that some of TSOs on their web sites publish only one-half of the NTC value, i.e. their own part of NTC, and therefore NTC data can be different) According to some studies, it is estimated that by 2020, only 4% of the generated power can come from wind en- - AAC (Already Allocated Capacity) value represents part of trans- ergy that is some 400 GWh per year (with 100-150 MW mission capacity allocated earlier by TSO in which table this value installed). Most interesting sites for wind power farms are appears. located along the Adriatic coast, nearby pumping stations that safeguard the land from floods. In these zones, aver- - ATC (Available Transfer Capacities) value represents amount of age annual speed of wind is 4-6 m/s at 10 m height, and transmission capacity, which will be offered by the TSO in which the average annual energy density is 150 W/m2. There are table this value appears to the interested market participants through allocation procedure: usually by pro-rata or explicit auc- no operational wind farms in Albania. tions method. (Please note that some of TSOs on their web sites within their ATC value publish ATC part of the neighboring TSO, Ongoing and announced projects: and therefore ATC data can be different

Lezha Energy Pole project

In January 2010, Government of Albania has approved construction of two wind farms. Project has been granted Danube water-level in cm for last 30 days (in cm) to Biopower Green Energy SHPK, which is subsidiary of Marseglia group, from Italy. Two wind farms will have output of 234 MW, and they will be located in Shengjin area.

First wind farm, BPGE1 will have 126 MW output (42 wind turbines), with generation of 400 GWh

Second wind farm, BPGE2 will have 108 MW output (36 wind turbines), with generation of 350 GWh

These power plants would deliver electricity to Italy by 1 000 MW undersea power cable.

Vlora wind park Characteristic water stages (in cm)

This project is proposed by Moncada group, and it will be consisted of 250 wind mills, with total output of 500 MW. It will have output of 1 TWh, while overall investment is estimated to 750 million EUR. It will deliver electricity by 500 MW undersea link with italy.

Bosnia and Herzegovina

Preliminary selection of potential locations for installing wind power plants shows that 12 locations have good po- relevant for: tential, and they are mainly located in the southern part HPP Portile de Fier I, 1167 MW, Romania of the country. Total estimated potential installed capacity HPP Portile de Fier II, 270 MW, Romania is 720-950 MW, implying annual production of 1440-1950 HPP Djerdap I, 1058 MW, Serbia GWh. According to some analysis, the best sites for con- HPP Djerdap II, 270 MW Serbia struction of wind farms are near cities Bihac, Tomislavgrad, (source: Republic Hydrometeorological Service of Serbia) Livno, Glamoc, Mostar, Trebinje and Gacko.

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In mid February 2010, government of Federation of Bosnia the decision for establishment of joint venture company and Herzegovina (B&H) reached the decision for establish- EP BiH Wind Mostar. Head of EP BiH, Amer Jerlagic said ing the common interest status for construction of six wind that company would build the wind farm by itself. Jerlagic farms: Podvelezje 1 (46 MW), Podvelezje 2 (24 MW), Livno explained that joint venture agreement was canceled af- (52 MW), Mesihovina (44 MW), Velika Vlajna (32 MW) and ter Cantonal authorities canceled the concession contract Poklecani (72 MW). Overall output is estimated to 270 MW. with Vjetroenergetika. In the same time, Vjetroenergetika Also, there were talks of wind farm Borova Glava (around earlier said it would cancel agreement with EP BiH. 90 MW, near Livno) and wind farms near Sokolac. German Energy Holding (EH) expressed interest to construct wind Jerlagic said that EP BiH and Vjetroenergetika have been farms near Sokolac, with overall cost of 300 million EUR. negotiating on purchase of documentation related to the Overall output of the wind farms would be 300 MW. project. In addition, in mid October 2009, EP BiH has submitted a self-initiative bid for acquiring the concession EP HZHB currently evaluates wind power potential in Livno contract for construction of particular wind farm. and Tomislavgrad. The company has been engaged in negotiations with EBRD regarding loans for construction of wind farms Borova Glava and Velika Vlajna (overall output Bulgaria of 128 MW and annual production of 366 GWh).

Bulgaria is one of the countries with the highest possibili- Current feed in tariffs for wind generators are: ties to utilitise wind potential in the region (above 16 000 MW). There are several areas with very good wind resource: EP HZHB – 65.3 EUR/MWh three areas with wind speeds in excess of 9 m/s, two areas EP BIH – 57.2 EUR/MWh with wind speeds in excess of 7 m/s and several areas with speeds between 4.5 and 7 m/s (all at 10 m above ground). Ongoing and announced projects: At the typical turbine height of 50 m, wind speeds are estimated between 5 and 13 m/s. The most promising sites are in the northern Black Sea Coast, the central mountain Wind farm Mesihovina – EP HZHB range and the Rhodop Mountains in the southwest. Ac- cording to official data, interest has been expressed for Recently, Government has approved construction of wind more than 16,000 MW so far, but approvals have been is- farm Mesihovina, and environmental permit has been ob- sued for only 3,000 MW, due to stability of the system. tained. Bulgaria has high speed trend for installation of wind gen- The future wind farm will be built near Tomislavgrad. It will erators, which is mostly supported by guaranteed electric- have 22 generators and overall output of 44 MW. With ex- ity price. In past two years, large number of companies has pected average wind speed of 6 m/s, the farm should pro- applied for license or expressed interest in construction of duce 115 GWh of electricity per year. Cost of the project wind farms. According to Energy efficiency law, the share should reach 72 million EUR. The farm should be put in of RES in overall electricity production in Bulgaria should service in 2012 reach 11 % by 2011, and 16 % by 2020.

On February 23, German KfW bank, Power utility of Herzeg Current feed in tariffs for wind generators are: Bosnia (EP HZHB) and Minister of Finance of Federation of Bosnia and Herzegovina (B&H) signed the agreement regarding 71 million EUR loan and 1 million EUR donation - Over 800 kW, up to 2 250 hours of operation – 97 EUR/ for construction of wind farm Mesihovina. EP HZHB will MWh provide another 3 million EUR for the project. - Over 2 250 hours of annual operation – 89 EUR/MWh

Wind farm Podvelezje 1 – EP BiH Operational wind farms:

Wind farm Podvelezje 1 should have 16 wind turbines with Wind farm Kaliakra Cape - Mitsubishi overall output of 46 MW. In the end of 2008, Power utility of Bosnia and Herzegovina (EP BiH) and Vjetroenergetika July 2008, Japanese Mitsubishi Heavy Industries put in established the joint venture company EP BiH-VINK Mos- service 35 MW wind farm in Black Sea cost on Kaliakra tar that will be in charge for construction of wind farms in Cape. The cost of the project was 60 million euros. Accord- the area of Podvelezje near city of Mostar. EP BiH owned ing to studies, wind farm should be in operation some 67.8% in the join venture. 2,100 hours during the year. For the first 6 months of operation, wind farm produced some 50 GWh of electricity. But, in October 2009, shareholders assembly of Power util- According to the farm’s manager, 35 MW wind farm oper- ity of Bosnia and Herzegovina (EP BiH) decided to cancel ated in favorable windy conditions during entire above- 12 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

mentioned period. Entire electricity output was purchased In construction/announced: by National electric company (NEK). Wind farm in Kavarna region, Bulgarevo – EVN Naturkraft Equipment is manufactured at MHI’s Nagasaki Shipyard and Machinery Works and Yokohama Machinery Works. MHI also coordinated the wind farm’s construction, and In the end of 2006, Energy Invest has put in service wind participates in its operation together with inos Ltd. and farm with four wind generators and small output (2.4 MW Mitsubishi Power Systems Europe, Ltd. total). Two years later, EVN Naturkraft, EVN’s subsidiary in charge for small hydropower plants and wind farms activi- Wind farm in Kavarna, Bulgarevo – Energy Invest ties, announced it would develop wind farm at Kavarna, on Black Sea cost.

In the end of 2006, the company Energy Invest has put The wind farm has been developed by Universum Energy service wind farm in Kavarna area. The wind farm has four and it will be jointly built by EVN Naturkraft and German 600 kW wind generators and they area connected in the Enertrag, one of German leading wind farm develop- power grid of local distribution company in Varna. The ers. EVN will hold 70 % in the joint venture EVN-Enertrag, overall worth of the project was 1.2 million euros, where while the rest will be controlled by Germans. The project 0.9 million was the loan from EBRD. Energy Invest believes was purchased from Universum Energy. The takeover was that annual income from electricity sales in new farm announced in December last year, while the transaction would reach 350,000 euros. was finalized in this year.

Wind farms at Shabla - ENEL During the first phase of the project, the wind farm will have overall output of 50 MW (it will have 25 Vestas tur- In May 2010, Enel Green Power (EGP), subsidiary of Ital- bines), while annual production should reach some 140 ian Enel, has finished construction of wind farm in Shabla, GWh. which has 7 generators and total output of 21 MW. Annual The cost of the project is estimated at 100 million euros. output should reach some 55 GWh. The construction of concrete posts for the 25 wind turbines has already started. During the second phase, the The farms should cover annual consumption of 19,000 wind farm’s output will be increased up to 80 MW. households and it should reduce emission of CO2 by 45,000 tons per year, EGP said. The new farm is the second The wind farm should be put in service in 2010. In the past one operated by EGP in Bulgaria three years, several investors wanted to build wind farms in Kavarna region, but projects failed due to environmen- Wind farm in Kavarna region, St. Nicholas - AES tal reasons.

Wind farm in central Bulgaria – Electra The wind farm St. Nicholas near Kavarna has 52 wind generators, overall power output of 156 MW and annual production of 340 GWh which will result in savings of 500,000 In april 2010, Spanish company Electra Holding expressed tons of CO2 emissions. The equipment will be delivered by plans to build 100 MW wind farm in central Bulgaria. The Danish Vestas. The cost of the project was 270 million eu- company said it had already acquired land for the project. ros, while wind farm was put in service in October 2009. Electra has initiated its activities in Bulgaria six months General manager of AES Geo Energy, Teodor Bobochikov, ago. In the end of 2009, the company said it wanted to said that power output of wind park should be increased invest 650 million euros for purchase and development up to 200 MW during the second phase of the project. of renewable energy projects in Bulgaria in period of four years. Electra wants to raise necessary funds from inves- Wind farm in Kamen Bryag – ENEL tors.

Wind farms near Burgas – Electrawinds The wind farm Kamen bryag is located on 70 hectares near Kavarna, it has seven wind generators and its overall power output is 21 MW. The farm should produce some 56.5 GWh Electrawinds is engaged in construction of two wind farms. of electricity per year. This amount is equivalent to annual Near Burgas, the company is building 70 MW wind farm. consumption of 19,000 households. The farm should re- The cost of the project is 60 million euros, and the farm duce emission of CO2 by 50,000 tons per year. should be operational in 2011. In 2013, the farm’s output will be enlarged up to 100 MW, development director of Electrawinds Jean Deulf said.

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Deulf said that another wind farm is being built near Shab- The company announced to build a wind farm in the area la and it should be put in service in spring 2010. The cost of of Stara Planina Mountain. The wind farm will have 58 this project is 50 million euros. wind generators with 2 MW power output each.

Wind farm on Black Sea Coast - Verbund The Danish company previously agreed with Chiprovtsi municipality on the construction of 60 wind generators in the area. The project should be completed by the end of Austrian utility Verbund has aquired 16 MW wind farm 2010. project (eight generators). The company provided no financial details on the deal. The wind farm, on the Black Sea Coast, is under construction and is due to be connected to Wind farm Suvorovo – Eolica Bulgaria the grid by the end of 2009. Expected annual electricity generation is around 50 GWh. Eolica Bulgaria consortium (Spanish (65 %)-Bulgarian (35 %)) announced it would invest some 90 million euros for Wind farm in Kazanlak, Stara Zagora region - Alpiq construction of 60 MW wind farm, in the coastal area near city of Varna. The wind farm should be built near the village of Suvorovo, which was selected as the most favora- In the beginning of 2009, Swiss company Alpiq expressed ble construction site by the Spain’s National Renewable intension, through its subsidiary Vetrokom, to build 50 Energies Center. The wind farm will be located on the area MW wind farm (20x2.5 MW) near city of Kazanlak, in Stara of 1.2 million square meters. Zagora province. The cost of the project is estimated at 80 million euros. In May, construction works have started, and Construction of wind farm started in beginning of 2010. they are expected to finish by the end of 2010.

Alpiq, established by Atel and EOS (Energie Ouest Suisse) Wind farm Pernik - Marivent is involved in providing energy management services, electricity production and electricity trade. The Greek company, Marivent Ltd, announced it would invest 500 million euros for construction of wind farm near Wind farm in Dobrich region – Balkan Energy city of Pernik. The power output of wind farm should be 800 MW. During the middle of 2007, local company Balkan Energy The Greek company said it signed construction contract in announced to invest some 120 million euros for construc- October 2007. The wind farm will sell electricity to Nation- tion of 200 MW wind farm in Dobrich region. The project al electricity company (NEK) in a period of 20 years, during should start in 2009th. The company also applied for 35- which the Greeks expect to post some 4.5 billion euros of year license for electricity production. incomes. The project should be completed in 2010. During the first phase of the project, Balkan Energy should install 35 wind generators with power output of 2.3 MW Wind farms on Back Sea coast - E.ON and with estimated annual output of 169 GWh. Another 53 generators, with annual power output of 420 GWh, should In the beginning of 2008, chairman of the management be installed during the second stage of the project. board of E.ON Bulgaria, Manfred Paasch, announced company’s plans for investments in wind farms. The three pilot Balkan Energy is co-owned by Roal Resort and Maccap. projects should be launched during 2009. The company said the project would be partially financed by the local Corporate bank. The initial project should be related to construction of small wind farms with power output between 5 to 8 MW. The investors have been negotiating with National electric The main aim of E.ON is to build large wind farms with company (NEK) regarding the connection of wind farm to power output between 100 and 150 MW. power grid, which should include construction of new substations and 30 km of power lines. In mid May, E.ON Bulgaria said it had started wind tests near Varna, on Black Sea cost, in order to find sites suitable Wind farm Stara Planina - Greentech for installation of wind farms. The member of the Board of Directors, Reinhard Aschendorff, said the company had selected sites on the northern Black sea cost for construc- Danish company Greentech has announced its plans to in- tion of three wind farms. If the researches are favorable, vest overall amount of 180 million euros for construction the pilot projects will be developed into the wind farms, of wind farms in Bulgaria. Aschendorff said. E.ON wants to become the largest wind power producer in Bulgaria.

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Wind farm - Greek Alpha Grissin Infotech Wind farm in Pleven – Dei Energy

In Mid 2008, Greek Alpha Grissin Infotech announced plans Mitsubishi and local company Dei Energy plan to build for construction of 400 MW wind farm in Bulgaria, where 200 million euros worth energy park in Pleven. The park the cost of the project is estimated at 2500 million euros. will include wind farm and photovoltaic plant with over- This was said by CEO of the company, Vassilis Grissin. Con- all output of 160 MW. The construction works should struction works have been delayed, but according to press, start next year and the project should be completed in company will continue with its plans. 2012. Dei Energy should be also involved in construction of another wind farm with 150 MW output. The company In 2007, Alpha Grissin Infotech and Germany’s Deutsche should be involved in construction of renewable energy Bank established joint venture Deutsche Aeolia. The ven- parks with total output between 500 and 600 MW. ture is involved in renewable energy sources and it is currently developing three projects with overall power output Wind farm in Dobrich - Enertrag of 52 MW and overall investments of 65 million euros.

German company, Enertrag said it plans to invest 1 billion Wind farm in Russe – Vestas Windsystems euros for construction of three wind farms, with overall output of 600 MW, in the area of Dobrich. The projects During August 2008, Danish producer of wind turbines, should be completed by 2017, where the company should Vestas Windsystems, has been looking for construction site invest 30 % of its own funds in the projects. The company near Danube River in municipality of Ruse in order to build should complete one wind farm on Black sea cost by the a wind farm. This was said by the local officials from Ruse, end of the year. who confirmed that Vestas sent a letter of intent regarding this project. Wind farm in Kyustendil – N - Vision

Wind farm in Krumovgrad - NECO German company N-Vision Energy announced it should build 100 MW wind farm near city of Kyustendil. The farm In the beginning of 2009, Greek registered company NECO, should have between 25 and 45 turbines and it should be the joint venture of National electric company (NEK), PRO- put in service in 2011. The cost of the project is estimated METHEUS GAS, and Copelouzos Group announced it would at 140 million euros, and it should be funded by EBRD and build 72 MW wind farm near Bulgarian city of Krumovgrad. export credit agencies.The farm should provide electric- The new wind farm should have 36 wind turbines and it ity for 90,000 households; it should save some 170,000 should be put in service in 2010. But, there is a possibility tons of coal, while emission of CO2 should be reduced by that NECO would abandon the project due to environmen- 500,000 tons per year. tal reasons. Wind farm by Energoni Later, in beginning of 2010, NECO expressed plans to build 56 MW wind farm near Kresna. The wind farm should be built in 2012. Bulgarian company Energoni, owned by Greek investors, announced it plans to build wind farms in Bulgaria with NECO, 50 % owned by NEK, was established in 2002. The overall output of 100 MW. Overall investment should company was established for the purpose of electricity ex- reach 160 million euros. This was announced by execu- port from Bulgaria to Greece and reinvestments in power tive director of Energoni, Dimitris Aivaliotis during the plants in Bulgaria. company’s presentation on Stock Exchange.

One of the NECO’s shareholders, Damco Energy, the part Energoni should provide some 70 million euros for the of Copelouzos Group, has been developing 236 MW wind project, while the rest should be provided by investors. farm in the same area. Damco plans to build wind farm The company still needs to find suitable sites for future with 118 wind generators near Bulgarian-Turkish border, wind farms. and the farm should be also operational in 2010. Aivaliotis announced that company should be also in- In February 2010, Elika Bulgaria, majority owned by Damco volved in construction of solar power plants in Bulgaria. Energy, submitted the request for changes in electricity production license in order to build four wind farms with Wind farm in Kavarna – Haos Invest EAD overall output of 212 MW near Kresna. The farms should be built in 2012. Local company Haos Invest EAD has submitted request to According to original license issued in last year, Elika Bul- the State Energy and Water Regulatory Commission (SE- garia should have built 236 MW wind farm near Krumov- WRC) for obtaining 25-year electricity production license. grad. The request should be reviewed by SEWRC in mid July. 15 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

The company, 100 % owned by Austrian Aquavento Hold- Croatia ing, presented plans for construction of 16 MW wind farm near Kavarna. The farm should have eight turbines (type Croatia has a promising wind potential, particularly on V90, manufactured by Vestas), and they should be in- the islands and in the costal region. The highest measured stalled by the end of October. wind speeds were 7.3 m/s at 25 m above ground level (ap- proximately 8 m/s at 50m height). According to the EN- Aquavento Holding is part of Austrian company Anton Kit- WIND National Energy Programme, total energy potential tel Muehle Plaika, which operates 11 hydropower plants of wind is 209 MW on islands, while it is 163 MW on the and 11 wind farms in Austria. Adriatic coast. Very interesting fact is that autonomous wind energy systems could provide islands with power Wind farm in Dobrich region – Technomash and more importantly with clean water by using Reverse Osmosis desalination systems by the two or three times Technomash Bulgarian Industrial Group is constructing lower prices. wind farm in Dobrich region. Indian wind turbine manu- facturer, Suzlon Energy Ltd, has entered into an agree- In this moment, there are over hundred requests for con- ment with Technomash to deliver six 2.1 MW. Wind farm struction of wind farms in Croatia. According to local laws, will have 12.6 MW output. all wind farms, with more than 60 % of the equipment produced in Croatia, are entitled to subsidy of 0.09 eurocents/ kWh. Wind farm by Plambeck Neue Energien (PBW) Local company Koncar has started with production of 1 The German wind farm developer Plambeck Neue En- MW wind turbines in 2010. ergien founded a Bulgarian Joint Venture in 2008. Joint venture plans to build wind farms in Bulgaria with total There are 3 operational wind farms in Croatia: output of 250 MW, and with level of investments of 350 million EUR. 1. Wind farm Orlice has 9.6 MW output, with 25 GWh annual generation. It is owned by WPD Enersys, and it was Wind farm in Gulyantsi – GP Energy completed in 2009. 2. Wind farm Trtar-Krtolin has 12 MW output, with 30 GWh A Bulgarian - Greek joint venture has announced plans for annual generation. It is also owned by WDP Enersys, and the construction of a 500MW wind park in Bulgaria’s Guly- it was completed in 2006. Both wind farms are located in antsi municipality, on the Danube River. Sibenik region. 3. Wind farm on Pag islad has 5.95 MW output, with 14 The investment project was submitted by the GP Energy. GWh annual generation. It is owned by German-Croatian The park will consist of 25 wind-powered generators de- company Adria Wind Power (AWP). It was put in service in ployed in the area of the Somovit and Dolni Vit villages 2005, and it is the first wind farm in Croatia and a further 35 generators installed near the villages of Gigen and Iskar, all in the Pleven region. Gulyantsi mayor Current feed in tariffs for wind generators are: Violin Ivanov said several companies have indicated their interest in harnessing the power of the wind in the area. - up to 1 MW – 88 EUR/MWh - over 1 MW – 89 EUR/MWh Wind farm Stanata – WE2 Ongoing and announced projects: During 2007, German windpower company WE2 and its local subsidiary Wind Park Stanata received a permission for Wind farm Vratarusa building a 32.5MW windfarm near Odartsi village in the north-western region of Dobrich. The company will invest This project is being developed by local company Valalta 38 million EUR in commissioning 13 wind-power genera- and German company Wallenborn Projektentwicklung, tors and will consider further expansion of the windfarm where two companies have equal shares in the project. at a later stage that could bring the total investment to The construction of the wind farm started in the end of more than 100 million EUR. The German parent company 2007. The farm will have power output of 42 MW, while will provide 25% of the financing while the remaining 75% annual electricity production should reach 125 GWh. This will come from creditors. WE2 is part of the Bremen-head- wind farm is under construction. The project is 57 million quartered holding WPD, which has participated in wind- euros worth. power projects with total installed capacity of 900MW.

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Wind farm near Split - Koncar News:

Local company Koncar-renewable sources plans to construct wind farm near city of Split. Wind farm will have 16 Swiss Alpiq single candidate in tender for unit 7 in TPP generators (15 1 MW generator and pilot 2.5 MW genera- Tuzla (Bosnia and Herzegovina) tor). The cost of construction of entire wind farm will reach 30 million euros. The farm should produce 35 GWh of elec- Swiss Alpiq is the only company that has submitted bid in tricity per year, which will bring 3 million euros of annual the international tender for construction of unit 7 in ther- income for the company. The construction works will start mal power plant (TPP) Tuzla. this summer 2010 and it will be completed in the end of 2011. The future coal-fired unit will have 450 MW of electricity output and 320 MW of heat output. The cost of the project Wind farm near Gracac - Dalekovod is estimated at 840 million euros. The construction works should start in 2012 and it should be completed in 2017. Local company Dalekovod also plans to construct wind The new unit will be replacement capacity for older units 3 farm near city Gracac. The wind farm will have four tur- and 4 in TPP Tuzla. The general design of unit 7 was already bines with overall output of 9.2 MW while its annual out- completed as well as environmental impact study. put should reach 26 GWh. Turbines will be delivered by Siemens, where cost of the project is estimated at 16.2 mil- The tender was published in the end of March and original lion euros. The farm should be completed by the end of deadline was set at May 13. However, in mid May, the gov- 2010. ernment of Federation of Bosnia and Herzegovina (BiH) published the changed and amended Public invitation for Wind farm Zelengrad-Obrovac - EKO-Energija strategic partnership in the project and new deadline was set at June 18. The project is being developed by local company Eko- The new invitation included recent decision of the govern- Energija, which is the subsidiary of Austrian company CE ment, which implied that strategic partners could fund the Energy Holding (EH). Wind farm will have 99 MW output, construction of new power plants through long-term elec- and inviromental impact study has been aprooved 3 years tricity supply contracts or through providing the loans, ago, but construction has not started yet. where strategic partner and EP BiH will not be obliged to establish joint venture company. According to terms published in Public invitation, the state will be 100 % owner of the unit 7, while strategic partner will repay its investments through sale of electricity.

General manager of Power utility of Bosnia and Herzegovi- na (EP BiH) Amer Jerlagic said the company expected more investors to submit bids. In April, local media reported that eight respectable companies, from USA, Europe and China, had purchased tender documentation.

Jerlagic said that tender procedure should be continued, where Alpiq will be invited to submit financial bid. He added that Alpiq met all tender criteria. The most important criteria in the tender are annual income of 5 billion euros in the last three years, and overall profit of 400 million euros in the last three years.

Head of EP BiH said that one of the reasons for low interest in the project could be the fact that large German companies have been waiting for cancellation of moratorium on construction of nuclear power plants, which would enable new large investments. Jerlagic rejected allegations on too high tender criteria and said that some twenty companies and consortia could easily provide funds for this project.

Head of EP BiH also said that recent terrorist attack in Bugojno caused alarm in Alpiq, which board of directors

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immediately held special session in order to discuss future Pecotic reminded that GE has delivered equipment for investments in BiH. similar facilities in Croatia, Romania and Greece. GE hopes § § § it should deliver natural gas and steam turbines, generators and other equipment for the project in Zenica.

Head of the municipality Husein Smajlovic said that project EP BiH: 3.5 % increase in electricity production in H1 has acquired location permits and the next step would be (Bosnia and Herzegovina) construction permit. The main project blueprints should be completed in the next 3-4 months and the construction During the first half of 2010, Power utility of Bosnia and works should start in this year, Smajlovic hopes. Herzegovina (EP BiH) produced 3.5 % more electricity compared to the same period last year. In the same period, The future power plant should have 250 MW of electricity electricity consumption was 1.7 % higher compared to output and 170 MW of heat output, where the cost of the 2009. This was said by the general manager of EP BiH Amer project is estimated at 250 million euros. Jerlagic on a press conference. The project for construction of power plant was initiated Jerlagic also said that electricity production in hydropower by signing the Memorandum of understanding in March plants (HPPs) in the same period was 23 % higher. In ad- 2009. In June 2009, KTG AG Lugano and the municipality dition, electricity export rose by 9.5 %, while company’s established joint venture company KTG Zenica for the pur- profit amounted to some 11.5 million euros. pose of the project. KTG AG owns 75 % of the stake in the project and the rest is owned by the municipality, which Jerlagic reminded that, in 2009, EP BiH posted net profit of was obliged to provide land and necessary permits. 31.6 million euros, where 40 % of the amount will be paid as dividend. EP BiH believes that 2010 profit would be cer- In March, after initially being opposed to the project, the tainly lower than the one posted in 2009. government of Federation of Bosnia and Herzegovina (BiH) decided to support it, but without providing long- In 2010 and 2011, EP BiH should invest some 60 million term electricity purchase contracts. euros for recapitalization of seven coalmines. Jerlagic also said that construction of unit 7 in thermal power plant In May, KTG Zenica and state-owned natural gas company (TPP) Tuzla, unit 8 in TPP Kakanj and hydropower plant BH Gas signed the Memorandum of understanding aimed (HPP) Vranduk would be the three top priority projects for to secure 350 million cbm of natural gas per year for new the company in the incoming years. power plant. § § § Very soon, feasibility study for construction of 100 MW natural gas fired unit in TPP Kakanj should be completed. EP BiH was also instructed by the government to make study on hydropower potential of Bosnia River. The project TPP Ugljevik started large-scale overhaul (Bosnia and should include construction of 350 MW in HPPs as well Herzegovina) as integral management of the river flow. The cost of the project is estimated at 500 million euros. On July 1, thermal power plant (TPP) Ugljevik (300 MW) has started large-scale overhaul, which will last 100 days. § § § Apart from standard maintenance, the overhaul will include reconstruction of boiler, cooling tower, turbine, generator and high voltage substation. General Electric interested in providing the Director of the TPP, Anto Gajic, said that large-scale over- equipment for CCGT power plant in Zenica (Bosnia haul of the turbine and the generator will be done for the and Herzegovina) first time in plant’s history. Gajic reminded that TPP Uglje- vik celebrates 25 years of operation in this year. US company General Electric (GE) is interested in the project for construction of CCGT power plant near city of The overhaul is aimed to prolong operation life of the Zenica. The project is being jointly developed by Swiss plant by next 30 years. Overall cost of the overhaul will branch of KazTransGaz (KTG), KTG Lugano, and municipal- reach some 27 million euros. The part of the funds will be ity of Zenica. provided by World Bank under Power 4 programme.

Executive director of GE for energy facilities in Southeast- Minister of industry, energy and mining of Republic of Srp- ern Europe, Neven Pecotic, said that project in Zenica was ska (RS), Slobodan Puhalac, who visited the TPP at the start the most interesting project in the region. He said this after of overhaul, reminded that TPP Ugljevik provides one third the meeting with head of Zenica municipality, Husein Sma- jlovic, and representative of KTG Lugano, Mose Franco. 18 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

of electricity in RS, and because of that incoming overhaul NEK lost 45 million euros in electricity contracts with is very important. EFT, EFT denies allegations (Bulgaria)

Minister confirmed that TPP had posted net profit of 1.9 Local media said that Sofia city prosecutor found that million euros and income of 23 million euros in period state-owned National electric company (NEK) has lost January-May 2010. In 2010, TPP Ugljevik has produced 900 some 45 million euros by signing the unfavorable electric- GWh of electricity, which was 6.8 % higher than planned. ity sale contracts with EFT.

In 2009, TPP Ugljevik produced 1.6 TWh of electricity and The particular contracts were signed in period 2004-2007 posted net profit of some 0.7 million euros. by the CEO’s at the time, Vasil Atanasov and Lyubomir Velk- ov. The prosecutor is expected to interrogate 30 other of- § § § ficials from NEK as well as energy ministers at the time.

Spokesperson of the Prosecution office said that no charg- Gazpromneft to takeover 200 petrol stations of Petrol es were submitted yet, since the investigation was in early (Bulgaria) phase.

In 2004, EFT and NEK signed first electricity sale contracts. Local media reported that Russian Gazpromneft has start- Until the end of 2007, overall sale amounted to 9 TWh of ed negotiation with local fuel distributor Petrol regarding electricity, the worth of which was 350 million euros. takeover of 200 attractive petrol stations. However, media said that recent expertise showed that The estimated cost of the transaction is 200-300 million NEK sold electricity to EFT at prices lower than domestic euros, while it should be completed by mid 2011. Howev- ones. Commenting the price of electricity, NEK said that, er, sources say that Gazpromneft is ready to pay only 100 after termination of long-term electricity export to Turkey, million euros for the stations. the company had high surpluses. Officials from Petrol confirmed that negotiations were un- In the same time, NEK sold electricity to EFT directly, with- der way, while Gazpromneft declined to comment. Sources out carrying out any kind of tender or selection procedure, also said that there is also slight chance for two companies prosecutor said. NEK, on other hand, said that it had invited to establish joint venture company. several companies from Europe, but no one was interested. Prosecutor argued that these invitations were faked. Petrol is one of the leading fuel distributors in Bulgaria. The company is owned by Petrol Holding of Mitko Sabev and The investigation has also showed that NEK and EFT fre- Denis Ershov. quently signed annexes to main agreement, but only in case when electricity prices on international market were Local media said that Petrol was involved in both mana- low. When prices jumped, there were no annexes, investi- gerial and financial problems lately. Two major sharehold- gation showed. ers Mitko Sabev and Denis Ershov have been in serious row over leadership issues. In the same time, by October On the other hand, electricity trader EFT dismissed al- 2011, Petrol will be obliged to pay 100 million euros worth leged findings of the prosecutor in the official press re- bonds, where this should be difficult to achieve having in lease. James Nye, co-founder and managing director of mind reduced cash flow and equity. EFT Group, said that EFT always purchased electricity from NEK at market prices. Nye added that most of the contracts Petrol has 15 % share (some 225 million euros) in retail were favorable for NEK, where EFT helped NEK to avoid se- market in Bulgaria as well as 20 % share (some 270 million rious losses. EFT’s official believes that methodology used euros) in wholesale market. by prosecutor was certainly inaccurate. Nye called for not involving politics in this case. In the end of June, general manager of Gazpromneft Ale- ksandar Dyukov said that company was interested in pur- § § § chase of petrol stations in Balkans, especially in Serbia, Bulgaria and Romania. He also said that purchase of oil refineries could be the option in case if they were efficient and if they could be purchased under reasonable price. TPP AES Galabovo to be put in service in autumn (Bulgaria) § § § AES Bulgaria announced that first 335 MW unit in the thermal power plant (TPP) AES Galabovo (former Maritsa Iztok 1) should be put in commercial operation in mid Sep-

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tember, while the second unit should be put in service in According to previous reports, the potential buyer should mid October. Official inauguration of the new power plant be interested in purchase of 100 % stake in TPP. The rumor should take place in the end of 2010. was supported by the statement of Bulgarian energy minister Traycho Traykov who said that state could sell its 27 % The construction of TPP AES Galabovo started in June stake in the plant. 2006, while overall cost the project should reach 1.3 billion § § § euros. New TPP should produce some 4.7 TWh of electricity per year, for which it should spend between 5 and 8 million tons of coal. The coal supply contract is already signed Regulator to fine major electricity distributors with Maritsa Iztok Mines. New plant will have some 350 (Bulgaria) employees. The project is the largest investment in energy sector in Bulgaria in the last 20 years. State Energy and Water Regulatory Commission (SEWRC) In 2009, AES has completed 156 MW wind farm near Ka- announced it would impose fines on three major electric- varna. The wind farm and new TPP should produce some 9 ity distributors, the CEZ, E.ON and EVN. % of electricity in Bulgaria. The fines will be based on audits conducted by SEWRC, § § § which were officially approved in mid July. As recalled, audits were part of the large-scale audit in energy sector requested by the government of Bulgaria in April.

Enel: contract for sale of TPP Maritsa Iztok 3 not The potential fines vary between 10,000 and 500,000 eu- finalized yet (Bulgaria) ros, where SEWRC said that, at this point, violations could not lead to revoking the licenses of three companies. Italian Enel confirmed that negotiations for sale of its share in thermal power plant (TPP) Maritsa Iztok 3 (908 MW) to SEWRC has earlier said that electricity distributors have ar- Russian Inter RAO or to any other candidate were not com- tificially increased their costs through outsourcing, where pleted yet. this was done through contracting the external services from parent companies, and this was considered as license Enel’s statement came as a response to news published violation. In addition, the audits found accounting viola- by local media, which said that Enel and Inter RAO should tions, while all three companies have hidden certain data sign the sale agreement by the end of July. requested by the regulator.

However, in April, Enel and Inter RAO signed Memoran- Head of SEWRC, Angel Semerdzhiev, said the regulator dum of cooperation in energy sector, which includes nu- would send official protocols on audits to distributors, af- clear energy, energy distribution, and construction and re- ter which they would be obliged to pay respective fines. construction of power plants. Two companies announced plans to build new power plant in Russia by 2016. However, Semerdzhiev said that violations made by the distributors did not affect electricity prices for end custom- In May, local media reported that Austrian EVN, US com- ers. Semerdzhiev also believes that audits should result in pany AES and British company International Power are improving the competition and price of services. interested in acquiring the 73 % stake in TPP owned by Enel. On the other hand, electricity distributor CEZ believes that report on regulatory audit was made public in inappropri- The potential sale of TPP Maritsa Iztok 3 was announced ate manner. This was said by regional manager of CEZ Bul- by CEO of Enel Fulvio Conti in March. Conti said at the time garia, Ian Vavera. that Enel was unsatisfied with company’s performance on Bulgarian market. However, sources said that sale would be Vavera said that data from the report were taken out of the used for payment of accumulated debts of the concern. context, while the company was not previously informed on the audit. This led to unjustified public pressure to Sources say that sale price could reach some 800 million CEZ’s companies in Bulgaria. CEZ wants the audit to be of- euros compared to 900 million euros invested by Enel in ficially delivered by SEWRC, in order to analyze it, so that the TPP over the years. In 2009, the power output of the company could issue its official opinion, Vavera said. TPP was increased from 840 MW up to 908 MW, while construction of desulphurization installations was completed. The attitude of SEWRC toward CEZ was tendentious and Overall cost of the modernization reached 700 million eu- company was treated unequally compared to two other ros. major distributors, E.ON and EVN, Vavera said. According to Vavera, CEZ has been facing some kind of discrimina- tion from the government and energy regulator in the

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past three years. He added that CEZ has been working in CEO of Bulgargaz Dimitar Gogov said on a press confer- accordance to Bulgarian legislation. ence after returning from Moscow, that company would demand significant reduction in prices in long-term agree- Head of CEZ reminded that CEZ is the largest electricity dis- ments, which will come in force in 2011. Gogov said that tributor with highest number of customers. In the past five two sides did not agree on figures, but he believes that years, CEZ has invested some 200 million euros for mod- prices could be reduced by 15 %. ernization of the grid and for improvement of customer services. With acquisition of TPP Varna, overall investments Bulgargaz also wants to eliminate intermediaries from of CEZ in Bulgaria amounted to some 600 million euros, long-term supply contracts and to sign contracts directly CEZ said. with Gazprom or with its daughter companies, i.e. to ex- § § § clude current intermediaries Overgas and Wintershall.

By August 10, Gazprom should answer to Bulgargaz’s re- Energy minister: operational license for NPP Kozloduy quests, after which negotiations will be continued. to be prolonged by 20 years (Bulgaria) § § § Minister of economy, energy and tourism Traycho Traykov said that operational licenses of units 5 and 6 (1,000 MW each) in nuclear power plant (NPP) Kozloduy would be PM Borisov and Russian deputy PM Zubkov made prolonged for another 20 years. breakthrough on joint energy projects (Bulgaria)

In 2008, NPP Kozloduy underwent large-scale overhaul, In the beginning of July in Sofia, prime minister of Bulgaria after which Nuclear regulatory agency (NRA) prolonged Boyko Borisov and first deputy prime minister of Russia operational licenses of units 5 and 6 until November 2017 Viktor Zubkov, who is also chair of the Board of directors and October 2019, respectively. of Gazprom, have talked on development of joint energy projects, i.e. nuclear power plant (NPP) Belene, South In the related news, Russian TVEL, which delivers nucle- stream pipeline, Burgas-Alexandropoulos oil pipeline, and ar fuel to NPP Kozloduy, denied allegations of Bulgarian on cooperation in natural gas supply. physicist Georgi Kotev, who said that TVEL delivers reproc- essed instead of fresh uranium to the NPP. Kotev said that Russian media said that Zubkov’s visit was arranged during decision for replacing the fuel was reached two years ago the telephone conversation between PM Borisov and his under corruption scheme. Russian counterpart Vladimir Putin. After the meeting in Sofia, both sides confirmed the improvement in dialogue TVEL said that nuclear fuel for NPP Kozloduy was made regarding the development of energy projects. from fresh uranium under the license issued by NRA and in accordance to highest international standards. In the same Deputy PM Zubkov announced that Russia and Bulgaria time, experts from NPP Kozloduy were allowed to partici- should sign roadmap agreement regarding South stream pate in quality control during the fuel production, TVEL project in Varna on July 16, during the meeting of minister said. TVEL said that neither NPP Kozloduy nor Bulgarian of economy and energy of Bulgaria Traycho Traykov and supervisor ever complained to the quality of the fuel. vice chair of the Management committee of Gazprom Al- exander Medvedev. § § § PM Borisov said after the meeting that Bulgaria would profit from participation in South stream project. In this Bulgargaz negotiated on reduction of import natural way, Borisov dismissed his own claims that Bulgaria might gas prices (Bulgaria) abandon all joint projects with Russia.

As for Belene project, Borisov and Zubkov said that road- In the first half of July in Moscow, natural gas supplier Bul- map was already prepared. The roadmap defined tasks gargaz has continued negotiations with Gazprom regard- that needed to be resolved: finding investors from Europe, ing reduction of price of natural gas imported from Rus- restructuring of the project, the cost of the project and fi- sia. nancing the project. Zubkov praised the project by saying it was the best nuclear power project in whole World. The meeting in Moscow took place several days after the visit of Russian deputy prime minister Viktor Zubkov to Exact cost of the project and formula for calculation of Sofia, who was surprised with high natural gas prices in electricity prices from future NPP should be known by Bulgaria. September, PM Borisov said. Borisov also said that Bulgaria

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wants to limit costs for construction of NPP Belene at 7 bil- National electric company (NEK) and ASE, NEK is obliged lion euros compared to original cost of 4 billion euros. to fund the project until selection of the strategic partner.

PM Borisov said that Bulgaria needed to pay 280 million Bulgaria has already paid 300 million euros in advance euros for the first 1,000 MW reactor by mid September. in Belene project, while overall costs of two reactors will reach 580 million euros. ASE started preparations for con- The negotiations regarding NPP Belene and South stream struction of the first reactor in the beginning of 2010. pipeline were continued several days later in Moscow, during the visit of delegation of natural gas company Bulgar- In the related news, minister of economy and energy Tray- gaz and ministry of economy and energy. cho Traykov said that Bulgaria should select advisor in Belene project by September. The advisor’s tasks will be Minister of economy and energy of Bulgaria Traycho Trayk- restructuring of the project and attracting the strategic ov, who attended talks with deputy PM Zubkov, confirmed partners. Six companies have submitted bids in the tender that two sides made the greatest breakthrough in nego- for the advisor: HSBC, Societe Generale, KPMG in a consor- tiations related to the South stream project. The new de- tium with McGuire, Rothschild, Argil, and Ernst & Young. velopment is related to use of existing natural gas network in Bulgaria. § § §

Originally, Russia wanted to use only existing network in Bulgaria for the purpose of South stream project, while Maritsa Iztok Mines reduced lignite prices by 4 % Bulgaria demanded construction of new pipelines. After (Bulgaria) the latest meeting, two sides reached compromise and decided that some 17 billion cbm out of planned 63 billion cbm, which will be annually transported by South stream The largest coalmining company in Bulgaria, Maritsa Iztok pipeline, should be transported through existing network. Mines, said it had reduced price of lignite by 4 % down The rest should be transported through newly built pipe- to 36.5 euros/ton. In the first half of 2010, the company lines on Bulgarian soil. The new pipelines will be equally produced some 11 million tons of lignite, which was 4 % owned by Bulgaria and Gazprom, while existing pipelines lower than planed. will remain 100 % owned by Bulgaria. § § §

Minister Traykov said that country would not lose transit fees by allowing transport through existing network. In INA: 16 % increase in natural gas prices for this moment, Bulgaria transits 17 billion cbm of natural companies; price for households remains unchanged gas per year from Russia toward Greece and Turkey. (Croatia)

§ § § Croatian oil industry (INA) confirmed that wholesale natural gas prices for companies would be increased by 16 % starting from July 1. New wholesale price was set at 320 Minister of finance: government to postpone 280 euros/1,000 cbm. The natural gas prices for households million euros payment for NPP Belene (Bulgaria) will remain unchanged, INA said.

Minister of finance Simeon Djankov confirmed that state This was the third increase in prices for companies during would not be able to pay agreed amount of 280 million this year, and industry believes that latest increase was too euros for the first reactor in future nuclear power plant drastic. The industry also said that energy prices in Croatia (NPP) Belene. The state does not have necessary funds continue to rise despite the crisis, as a contrary to neigh- that need to be paid to Russian AtomStroyExport (ASE) by boring countries. INA explained the increase with rise in mid September, minister Djankov said. prices of oil derivatives and US dollar exchange rate.

Minster’s statement was the response to the statement of The officials from heating company in Zagreb, which de- prime minister Boyko Borisov, who announced future pay- livers natural gas to 13,000 industrial customers, said that ment for NPP Belene after talks with deputy prime minister end price for companies will be 530 euros/1,000 cbm. of Russia Viktor Zubkov in Sofia in the beginning of July. § § § Minister Djankov said that state would try to postpone abovementioned payment. He also said that government would continue to look for European investors in the project. According to agreement signed by state-owned

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Lukoil submitted the best bid for purchase of fuel Until L in CHPP Zagreb celebrates first year of distributor Crobenz (Croatia) operation (Croatia)

The commissioner in charge for sale of fuel distributor In the beginning of July, Croatian power utility (HEP) re- Crobenz confirmed that Russian company Lukoil has sub- minded in press release that CCGT unit L in combined heat mitted the best bid for purchase of Crobenz. The bids were and power plant (CHPP) Zagreb had been in service for a also submitted by Slovenian Petrol and Slovak investment year. The unit was put in service on July 6 last year, and it fund Slavia Capital Group. was put in commercial operation in April this year.

According to unofficial sources, Petrol’s financial offer was The unit has 100 MW of electricity output and 80 MW of unfavorable, while Slavia Capital Group, which financial of- heat output. With unit L, overall electricity output of CHPP fer was far better, once again did not prove it had sufficient Zagreb was increased up to 420 MW, while heat output knowledge and experience. was increased at 900 MW.

It is expected that sale agreement should be signed in Since July last year, the unit was in service for 4,300 hours the second half of July. However, head of Lukoil Croatia, and it has produced 367 GWh of electricity. Nikolay Ivchikov, did not want to comment ongoing sale procedure. Lukoil currently has 21 petrol stations in § § § Croatia, while another two should be opened soon. In the same time, Crobenz has 14 petrol stations. JANAF signed contract for construction of new oil As recalled, in May, the procedure for sale of Crobenz, warehouses (Croatia) owned by Croatian oil industry (INA), was restarted by the commissioner appointed by Croatian Competition Agency (CCA). The previous procedure, conducted by INA, was can- Adriatic oil pipeline (JANAF) said in a release published on celled by CCA, who said that selected buyer Slavia Capital Zagreb Stock Exchange that it had signed the contract for Group, did not meet tender criteria. construction of three new oil warehouses.

The sale of Crobenz was mandatory for INA since June last The warehouses, will be built by local company Montmon- year, after INA’s strategic partner MOL acquired managerial taza. Overall worth of the contract is 22 million euros and rights in INA and thus acquired some 60 % market share. the warehouses should be built in period of 20 months. The particular project is the part of 55 million euros invest- § § § ment program in 2010.

§ § § HEP: request for increase in electricity prices by 8-10 % (Croatia) 500 petrol stations closed in 2010 (Greece) Croatian power utility (HEP) confirmed it had submitted request for increase in electricity prices. Head of HEP, Leo Be- 500 petrol stations in Greece were closed since beginning govic, said that rise in prices should be between 8 and 10 of 2010, due to reduced demands. Around 1000 more %. He did not reveal when the prices should be increased. works only several days a week.

HEP said the increase was related with last year’s increase From the beginning of 2010, petrol demand has been re- in natural gas prices. HEP spends some 700 million cbm of duced for 30 percent. According to petrol station union, natural gas per year. In addition, HEP said that rise in prices increase of petrol taxes forced Greek to purchase petrol in is necessary in order to support projects for construction Macedonia and Bulgaria. of new power plants, with estimated costs of 3 billion euros. § § §

The company said that, thanks to favorable business results in the first half of the year, the requested increase was State not to sale its stake in PPC (Greece) lower than originally anticipated. HEP said the company managed to stabilize its activities and to cancel unfavorable contracts. The state of Greece is not considering to sell a stake or § § § a part of PPC. PPC will not be allowed to exercise its call option to acquire a 30% stake in Natural Gas Corpora-

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tion (DEPA), Minister of Environment, Energy and Climate ing H1 2010, EVN Macedonia has produced 150 GWh, Change said. which is the same amount as entire production during 2009. This is resulted by favorable hydrology and revitali- The minister also said that tariff increases (within the zation of several small HPPs (by Czech Hydropol). scheduled rebalancing) will take place in 2011. 2009 was marked as record year for production of elec- § § § tricity from small HPPs.

§ § § PPC to reduce commercial power rates (Greece)

Electricity rates for commercial sectors will be reduced by 12 criminal charges submitted to REK Bitola the end of year, cheaf executive of PPC, Mr. Arthuros Zev- (Macedonia) ros, said in the statement. Police department of Bitola has submitted criminal Head of PPC said that rate cuts will range from 5 to 15 % charges agains 12 employees from REK Bitola (consisted depending on the power rate category, the amount of con- of mine and TPP Bitola). They are charged for “Abuse of sumption and the time of use. PPC has already submitted official position”, by which they gained 4 million EUR. a relevant proposal to the Regulatory Authority for Energy asking for rate reduction to go into effect as of September According to police deparment, during 2008 financial 1 2010. and technical director signed 72 invoices with total amount of 7 million EUR for payments to various com- The proposed commercial rate cuts are due to PPC’s being panies, related to reconstruction of TPP Bitola, although obligated by EU legislation to make the transition to regu- only 3 million EUR were planned for works. Also, during latory monitoring rates. Greece, according to the memo- 2008, financial and technical director signed 86 invoices randum it has signed with the European Commission (EC), for various services. will have to have the new rates approved by September. § § §

The total proposal from PPC also provides for increases of as much as 40% in domestic rates and 60% in farmers EPCG and NTE established joint venture Zeta Energy rates. (Montenegro) In Q1 2010, commercial electricity consumption dropped 8 percent compared with the same period in 2009. In the beginning of July, Power utility of Montenegro (EPCG) and Norway’s NTE officially established joint ven- § § § ture company Zeta Energy, with head office in Danilov- grad. Official ceremony was attended by Hakon Blank- enborg, ambassador of Norway to Montenegro, Havard Balbo from NTE and deputy minister of economy of Mon- New power lines announced (Macedonia) tenegro Miodrag Canovic.

Macedonian Economy Minister, Mr. Fatmir Besimi an- EPCG, which will own 51 % in the joint venture, has in- nounced construction of new power lines. Minister said vested small hydropower plants (HPPs) Glava Zete and that two new 400 KV lines will be constructed toward Al- Slap Zete in new company. bania and toward Kosovo. CEO of EPCG, Enrico Malerba, said on a press conference On same occasion, Mr. Besimi has signed Memorandum that new company would be involved in modernization for development in energy sector with Kosovo. Mr. Besimi and overhaul of small and mid size HPPs in Montenegro. also announced cooperation with Kosovo in oil, gas and small HPP sector. NTE will invest 8 million euros in new company and will § § § control 49 % stake in Zeta Energy. NTE said that establishment of new company was turning point in relations with EPCG after successful cooperation in the past ten years. Increased production in small HPPs (Macedonia) Board of directors of Zeta Energy will have five members, In first 6 months of 2010, electricity production from small three from EPCG and two from NTE. Chair of the board HPPs, which are operated by EVN Macedonia, has been increased for 100%, comparing to same period in 2009. Dur- 24 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

will be NTE’s Ove Sodeberg, while CEO of Zeta Energy will Parliament ratified Hydrocarbons law (Montenegro) be Momir Dzaric. In the beginning of July, parliament of Montenegro ap- According to plans, annual output of two existing small proved Hydrocarbons exploration and production Law. HPPs should be increased from current 15 GWh up to 80 The law has been in procedure since 2008. GWh. In April, EPCG and NTE announced they could be engaged in construction of small HPP Rosca. The government said that new law would create founda- tions for development of oil sector in Montenegro. It was § § § confirmed that public invitation for concessions for oil and natural gas production in Adriatic, which waited for law approval, would be published very soon. Parliament ratified agreement for construction of submarine power cable toward Italy (Montenegro) According to government’s data, Montenegro’s reserves of hydrocarbons stand at some 7 billion barrels of crude oil and 425 billion cbm of natural gas. In the beginning of July, the parliament of Montenegro has approved Law on ratification of agreement for con- § § § struction of submarine power cable toward Italy. The law defines strategic partnership between transmission system operators of two countries, Prenos and Terna, which will provide institutional framework for implementation of High electricity production in HPPs in period January- the project. May (Montenegro)

As recalled, the agreement for construction of high volt- Chamber of commerce of Montenegro (PKCG) said that age submarine DC cable between Pescara (Italy) and Tivat electricity production in hydropower plants (HPPs) in pe- (Montenegro) was signed by ministers of economy of Italy riod January-May reached 1.6 TWh compared to planned and Montenegro, Claudio Scajola and Branko Vujovic in annual production of 1.75 TWh. Rome in February. The agreement is in accordance with Memorandum of understanding signed by Italy and Mon- Two large HPPs, HPP Perucica (300 MW) and HPP Piva (340 tenegro in June 2009. MW), have reported highest ever production in their history, PKCG said. PKCG also said that high production was According to the agreement, Italian electricity transmis- consequence of favorable hydrology as well as high avail- sion system operator, Terna, will provide entire funds for ability of the HPPs. construction of 1,000 MW DC cable. The cable should be completed in 2013 and the cost of the project is estimated PKCG expects that only thermal power plant (TPP) in the at 600 million euros. country, TPP Pljevlja (200 MW), should meet annual production target, despite unplanned outages. In the same time, Terna will acquire 22 % stake in Montene- gro’s counterpart Prenos through recapitalization. Terna is According to PKCG’s data, in period January-June 2010, expected to pay some 30 million euros for this transac- coalmine Pljevlja has produced 670,000 tons of coal. tion. § § § Prenos and Terna should build 400kV interconnection power lines toward Serbia and Bosnia and Herzegovina. On the other hand, Prenos will be obliged to build high voltage substation in Tivat (by June 2013) and 400kV power line Agreement for construction of wind farm Mozura between Tivat and Pljevlja (by the end of 2015). Prenos signed (Montenegro) should invest some 90 million euros in these projects. In the beginning of July, government of Montenegro and According to minister of economy Branko Vukovic, who representatives of Spanish Fersa Energias Renovables S.A. spoke before the parliament during the law approval pro- signed the 20-year concession agreement for lease of the cedure, Montenegro would be entitled to 20 % of the ca- land for purpose of construction of wind farm Mozura (46 pacity and transit fees from the future DC cable. Minister MW), near cities of Ulcinj and Bar. The state has leased some said that Montenegro is expected to earn up to 40 million 500,000 m2 of the land at price of 0.37 euros/m2. euros per year from transit fees once the entire project was completed. Fersa, in consortium with local construction company § § § Celebic, submitted the best bid in the tender published in December last year.

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The wind farm should be built in period of two years after EPCG cancelled tender for import of electricity in 2011 obtaining the necessary permits, and the cost of the project (Montenegro) is estimated at 65 million euros. The farm is expected to produce some 100 GWh of electricity per year. On July 7, Power utility of Montenegro (EPCG) published decision on canceling the tender for import of 545.95 GWh Minister of economy Montenegro said that lease contract of electricity in 2011. has possibility of extension for another 10 years. He confirmed that state was obliged to purchase entire electricity The tender was published in the end of May, while ten output from the wind farm at fixed price of 96 euros/MWh qualified bidders, EGL, RE Trading, HSE, EFT, Alpiq, GEN-I, in period of 12 years. Rudnap and Korlea Invest, EPCG Belgrade and Interenergo, submitted bids in June. Representative of Fersa, Jose Maria Roger, believes that project should be certainly successsfully completed, hav- The management of EPCG estimated that offered prices ing in mind that company has over 2,000 MW installed in were too high, while new tender could be published in Au- wind farms all over the World and 30-year experience. gust or September.

§ § § EPCG said that prices varied from 50.75 to 58.65 euros/ MWh. The lowest price was offered by Rudnap, EPCG confirmed. Government selected concessionaries for construction § § § of small HPPs (Montenegro)

In the beginning of July, tender commission of the govern- CEZ: wind farm in Fantanele near completion ment of Montenegro has decided on the winners in the (Romania) tender for granting the concessions for construction of small hydropower plants (HPPs). Czech CEZ announced that construction of wind farm near Fantanele, Constanta County, was near completion. The commission decided that first ranked bidder for rivers The company said that 115 turbines were already erected, Tusina and Komaraca was local company Kroling. For rivers where 20 turbines were operational in the beginning of Murinska and Trepacka, first ranked bidder was consortium July. of local companies Elektrotehna and Radius. For river Vrb- nica, the first ranked bidder was consortium mHidroCG. The wind farm Fantanele will have 139 turbines, each with 2.5 MW output. The farm should be completed and put in Tender commission has rejected two bids submitted by service in September. consortium Haider Extrem Hydropower, after it did not submit bank guarantees. Along with 101 turbines in nearby wind farm Cogelac, combined output of two wind farms will be 600 MW and Tender commission also said that for river Krastica there this should be the largest onshore wind farm in Europe. were no bids, while for rivers Bukovica, Bijela, Velicka and The construction works in Cogelac should start in 2011. Djuricka, the bids did not meet tender criteria. Overall cost of the project is estimated at 1.1 billion euros.

The future concessionaries will be in charge for designing, § § § construction, operation and maintenance of future small HPPs. According to government’s data, overall output of future HPPs should be 18 MW, while annual output should reach 77 GWh. The overall worth of investments is estimat- Report on energy resources in period January-May ed at 60 million euros. 2010 (Romania)

As recalled, prequalification tender for construction of According to National Institute of Statistics (INS), primary small HPPs was published in n September last year. In Oc- energy resources in period January-May 2010, reached tober last year, tender commission selected ten eligible 13.894 million tons of oil equivalent (toe), which was 0.7 bidders: Tehnoenergy ASA and Bast, Elna Kabel, Kroling, % lower compared to same period last year. The domestic ECG-MHE, Kelag Strabag, consortiums Haider extrem hy- production reached 9.308 million toe (-4.6 %), while im- dropower, MAH-Korona Inzenjering and mHidroCG, PORR port of primary energy resources reached 4.587 million toe Technobau und Umwelt and Elektrotehna-Radius. (+8.5 %).

§ § §

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The coal resources amounted to 2.421 million toe (-12.8 %), CEZ, Termoelectrica and TPP Galati signed Memorandum where domestic production reached 2.232 million toe (-9.0 of understanding regarding the project in 2008. The MoU %) and import reached 0.189 million toe (-41.8 %). expired in 2009, but two sides continued negotiations. In March this year, CEZ even announced that construction Oil resources amounted to 4.275 million toe (-9.3 %), where works might start in 2012. domestic production reached 1.699 million toe (-3 %) and import reached 2.576 million toe (-13 %). CEZ said it would divert planned investments into other projects in Romania, i.e. in the project for construction of Natural gas resources amounted to 4.556 million toe (+9.4 wind farms at Fantanele and Cogelac and in the project for %), where domestic production reached 3.583 million toe construction of units 3 and 4 in nuclear power plant (NPP) (-5.1 %) and import reached 0.973 million toe (+150.3 %). Cernavoda. § § § Electrical energy resources reached 24.698 TWh, which was 0.449 TWh or 1.8 % lower compared to the same period last year. Natural gas pipeline toward Hungary to be operational in July (Romania) The electricity production was decreased by 0.484 TWh (-2.0 %) The production in thermal power plants (TPPs) was reduced by 0.935 TWh (-7.3%) down to 11.833 TWh, while Romania’s natural gas transporter Transgaz and its Hungar- the production in hydropower plants (HPPs) was increased ian counterpart FGSZ should put in service interconnection by 0.586 TWh (+8.0 %) up to 7.904 TWh. The production pipeline between two countries on July 20. The pipeline in nuclear power plant (NPP) Cernavoda was reduced by will connect Arad (Romania) and Szeged (Hungary) and its 0.135 TWh (-2.9 %) down to 4.542 TWh. annual capacity will be 1.75 billion cbm.

The domestic electricity production amounted to 98.3 The project for construction of new pipeline was initiated % of overall electricity resources, while electricity import by signing the memorandum of understanding between amounted to 1.7 % of overall electricity resources. The pro- Transgaz and FSGZ in January 2008. The pipeline should duction in thermal power plants amounted to 48.7 % of have been put in service in mid 2009, but the construction overall electricity production, production in hydropower works were delayed due to Hungarian elections. The con- plants amounted to 32.6 %, while production in nuclear struction of cross-border section of the pipeline required power plants amounted to 18.7 % of overall electricity pro- signing the intergovernmental agreement, which was duction. signed in May.

64.5 % of overall electricity produced in the country was In the beginning, natural gas will flow from Hungary to Ro- spent by industry, 19.7 % by households, 12.6 % was tech- mania, but the flow could be reversed in case of need. nological consumption in power plants and electricity networks, 1.9 % of electricity was exported, while 1.3 % was § § § spent by public lightning.

Final electricity consumption amounted to 21.136 TWh Sources: shareholders agreement for units 3 and 4 in (+3.5 %), where consumption of households was increased NPP Cernavoda to be extended (Romania) by 2.7 %. In the same period, electricity export was reduced by 1.345 TWh (-74.5 %). According to local media, the shareholders agreement in the project for construction of units 3 and 4 (700 MW each) § § § in nuclear power plant (NPP) Cernavoda could be extended by six months at least. The existing agreement was signed in November 2008 and it is due to expire in September. CEZ abandons project for modernization of TPP Galati (Romania) 4 billion euros project has been developed by joint venture company EnergoNuclear, in which government controls 51 Czech CEZ announced it has abandoned the project for % stake, while the rest is owned by RWE, Enel, GDF Suez construction of 400 MW natural gas fired unit in thermal and CEZ (9.15 % each) and ArcelorMittal and Iberdrola (6.2 power plant (TPP) Galati. CEZ said that pre-feasibility study % each). showed unexpected costs, i.e. construction of new electricity and natural gas network, and need for demolition of Sources said that certain issues still need to be resolved, existing assets in TPP Galati. which is the main reason for prolonging the existing agreement. The project is yet to secure financing.

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Since the beginning of year, minister of economy of Ro- the ceremony that marked five years of operation of E.ON mania and other officials announced more than once that on Romanian market. government has been considering reducing its stake in the project. In 2005, E.ON purchased majority stake in electricity dis- § § § tributor Electrica Moldova and in natural gas distributor Distrigaz Nord. E.ON paid some 100 million euros for 51 % stake in Electrica Moldova and some 300 million euros for 51 % stake in Distrigaz Nord. After merging these two com- Enel to start construction of 140 MW wind farm in panies into E.ON Romania in January 2009, E.ON became Tulcea (Romania) the largest integrated electricity and natural gas supplier in Romania. Italian Enel, i.e. its subsidiary Enel Green Power, announced it would start construction of 140 MW wind farm near vil- In period 2005-2009, E.ON has invested some 140 million lage Valea Nucarilor in Tulcea County in this year. The euros for modernization and enlargement of electricity project will be developed in two stages, each with 70 MW. grid and another 150 million euros in natural gas grid. In 2010, Enel should put in service 40 MW, while another 30 MW should be put in service next spring. § § §

The company expects to obtain approval for another 70 MW in this project, while the entire project should be completed next year. Electrica to merge electricity supply branches (Romania) In the same time, in mid July, Enel should start testing of already built 34 MW wind farm in Agighiol, also in Tulcea State-owned electricity distributor and supplier Electrica County. announced it should merge its electricity supply branches Transilvania Nord, Transilvania Sud and Muntenia Nord Several days after abovementioned announcement, Enel into single entity, the Electrica Furnizare. Green Power reached an agreement with local company Elcomex regarding development of 272 MW wind farm in The establishment of new company will be in accordance Constanta County. The future farm will be located 30km to government’s draft resolution. The main business activ- from Black Sea cost. According to the agreement, Enel will ity of new company will be electricity trade. have option to purchase the project after all necessary permits are obtained. In this moment, Electrica has seven branches in three areas, i.e. three distributions branches, three supply branches In the related news, Romanian Wind Power Association and one maintenance branch. said that some 1,800 MW in wind farms should be installed in Romania by 2013. § § § § § §

EPS: electricity prices could rise by 35-40 % (Serbia) Government to sell minority stake in electricity distributors (Romania) Chair of the Management board of Power utility of Serbia (EPS) Aca Markovic said that real increase in electricity pric- Minister of economy Adrien Videanu confirmed that mines in Serbia should be 35-40 %. Markovic said that percent- istry has been in very advanced negotiations with Ital- age of increase was supported by Energy agency (EA), an ian Enel and German E.ON regarding sale of state-owned independent regulatory body, but the final decision needs shares in electricity distributors owned by two companies. to be reached by the government. Videanu believes that sale procedure could be completed in 2-3 months. Speaking at the energy conference in the beginning of July, Markovic did not confirm whether EPS would demand Enel is the majority owner of electricity distributors Enel second increase in prices in this year. In March, the gov- Distributie Muntenia (former Electrica Muntenia Sud), Enel ernment of Serbia approved 10 % increase. EPS has earlier Distributie Banat and Enel Distributie Dobrogea, while requested from the government to approve two increases E.ON is majority owner of electricity distributor Electrica in electricity prices, on January 1 and July 1, each by 10 %. Moldova. According to EPS, average electricity prices in Serbia stand at some 5 eurocents/kWh. Head of E.ON Romania, Frank Hajdinjak also confirmed that negotiations regarding takeover of minority stakes Head of EPS said that planned maintenance works of EPS could be ended in 2-3 months. Hajdinjak said this during during this year, 65 million euros worth, should be reduced 28 Balkan Energy NEWS, e-journal Issue No: 2010-VII/1 - issue covers period 1.7.2010-15.7.2010

by third if government does not approve second increase In period January-June 2010, EPS has sold 710 GWh of in prices. He reminded that, thanks to investments in past electricity on free market, which was considerably higher several years, EPS has managed to increase annual produc- compared to the last year and compared to the plans. tion in thermal power plants by 3 TWh. § § § In mid July, prime minister Mirko Cvetkovic said that government would not approve second increase in electricity prices in this year in order to maintain current inflation Comico oil did not abandon plans for new refinery rate. However, if government were forced to approve the (Serbia) increase, it would be certainly much lower than 35-40 %, PM Cvetkovic said. § § § Comico oil (CO), a local subsidiary of Comico Overseas, confirmed it would proceed with project for construction of oil refinery in Serbia despite recent deadlock in city of Smederevo. Energy minister: participation in Belene project seriously considered (Serbia) In the beginning of July, the municipality of Smederevo decided to hold referendum regarding construction of the Minister of energy and mining Petar Skundric confirmed refinery on August 8. If the outcome was negative, CO will that government has been seriously considering to take try to build new refinery near Belgrade or Pozarevac, also part in construction of nuclear power plant (NPP) Belene on the right bank of Danube River. (2,000 MW) in Bulgaria. As recalled, CO and the municipality of Smederevo signed Minister said to press reporters that he was personally in fa- Memorandum of understanding regarding construction of vor of the project. According to him, the project would pro- 250 million dollars worth oil refinery in 2008. vide cheaper electricity for Serbia and it would strengthen country’s position in electricity sector in the region. In the first half of July, Comico Overseas presented details regarding the project to the prime minister of Serbia Mirko Officials from the government of Serbia earlier said that Cvetkovic. Deputy director of CO, Radomir Radivojevic re- negotiations with Bulgaria were only in principle, where no minded that CO intends to invest in infrastructure in Sme- document was signed. However, local experts support the derevo, i.e. in construction of natural gas, water supply, idea having in mind limited national coal reserves. sewer and telecommunication networks.

In April, prime minister of Bulgaria Boyko Borisov invited CO said that new refinery should meet highest ecologi- Serbia to take part in the project. In the beginning of July, cal standards and the construction works should be com- after talks with vice prime minister of Russia Viktor Zubkov, pleted three years after they are started. New refinery PM Borisov said that Serbia should become partner in Be- should import oil from Nigeria and its daily output should lene project. be 4,000 tons of gasoline, euro diesel and kerosene. Some 2,000 people should be employeed during the construc- According to preliminary announcements, Serbia could tion, while some 700 people should be employed in refin- acquire 5 % stake in the project, which would require in- ery after it was built. vestments of some 300-350 million euros, according to the § § § latest estimations. § § § EPS and SECI Energia established joint venture company (Serbia) EPS: electricity production rose by 0.9 % in H1 (Serbia) In the beginning of July, Power utility of Serbia (EPS) and Power utility of Serbia (EPS) said it had produced 18.47 TWh Italian SECI Energia signed the agreement for establish- of electricity in the first half of 2010, which was 170 GWh or ment of joint venture company Ibarske Hidroelektrane 0.9 % higher compared to the same period last year. In the (IH). same time, the production was 300 GWh or 1.7 % higher than planned, the company said. The joint venture company IH will have head office in Kraljevo and it will be involved in designing, construction Electricity production in thermal power plants amounted and operation of ten hydropower plants (HPPs) on Ibar to 11.6 TWh, while hydropower plants produced 6.9 TWh. River. Overall power output of future HPPs will be 103 MW, The production target for this year was set at 36 TWh. and annual output should reach 420 GWh of electricity.

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The joint venture agreement was signed by general manager of EPS Dragomir Markovic and chair of Maccaferri Tenders: Group, parent company of SECI Energia, Gaetano Macca- ferri. Earlier in April, these two officials signed Protocol for construction of HPPs on Ibar River. Company / EBRD, related Bulgaria organization: The signing ceremony was attended by minister of energy Announcement: Energy efficiency rehabilitation at Martisa East mines and mining of Serbia Petar Skundric and Italian ambassa- Content: . “Mini Maritza East” EAD (the “Employer”) intends dor to Serbia Armando Varricchio. The signing of the joint using the proceeds of the grant funds provided by venture agreement was in accordance with Protocol on the “Kozloduy International Decommissioning Sup- cooperation in energy sector signed by Serbia and Italy in port Fund” (the “KIDSF”), administered by the Eu- March 2009. ropean Bank for Reconstruction and Development (the “Bank”) and of its own financial sources towards the cost of design, implementation and consultancy Italian company will provide entire funds for the project services for: and it will be granted 51 % stake in IH, while EPS will own the rest. The cost of the project is estimated at 285 million A. Construction (Supply and Installation of Plant and Equipment) of on-line load control of the operation euros. EPS announced that first tenders for the project of the belt conveyors and excavators at “Mini Mar- should be published in 2011. itza East” EAD, Bulgaria.

Head of EPS said that project on Ibar River should be the It shall include design, engineering, procurement, first market oriented project developed by EPS. Markovic delivery, construction, installation, pre-commissioning and commissioning of on-line load control reminded that project would be profitable thanks to the in- system (including software) to overburden remov- centives for renewable energy sources that will be granted al, transportation and spreading facilities of Troy by Italy. According to plans, after investment was repaid, anovo-1, Troyanovo-North and Troyanovo-3 Mines. EPS and SECI Energia will agree on future electricity sales. The procurement of the contract is expected do begin in the beginning of the second quarter of 2010.

Commenting the protests of environmentalists against the B. Rehabilitation (Supply and Installation of Plant project, Markovic said that protests were expected. He be- and Equipment) of the power supply system that lieves that Environmental impact study, which was under shall include design, engineering, procurement, way, should show that project would not harm the natural delivery, construction and installation of plant and equipment of 4 off installation platforms required environment. for the construction of new mobile sub-stations 20/6 kV and their transfer in Troyanovo-North Mines In the same time, several experts warned that manage- at “Mini Maritza East” EAD, Bulgaria C. Rehabilitation ment of national renewable energy sources should not be (Supply and Installation of Plant and Equipment) of the substations, including installation of new power given to foreign countries, although this was not against transformers for Troyanovo-North and Troyanovo-3 EU energy directives. Mines at “Mini Maritza East” EAD, Bulgaria.

§ § § D. PIU Consultancy service for advising the Employer in the procurement of the projects financed and co- financed from the Kozloduy International Decom- missioning Support Fund.

More info on: http://www.ebrd.com/oppor/procure/opps/goods/ general/090925a.htm

Deadline: 24 September 2010 at 24:00, Stara Zagora time Contact: Mr. Todor Todorov Executive Director “Mini Maritza Iztok” EAD 6260 Radnevo 13 Georgy Dimitrov Str. Stara Zagora district Bulgaria Fax : + 359 417 82417 Email: [email protected]

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Company / Deadline: 1 September 2010 at 00:00, Sofia time EBRD, related Serbia organization: Contact: Mr. Angel Semerdjiev Announcement: Srbijagas - Services, Works, Goods Executive Director Bulgartransgaz EAD Content: Srbjiagas intends using the proceeds of a loan from 66, Pancho Vladigerov Blvd. Sofia 1336 Bulgaria the European Bank for Reconstruction and Develop- Fax : + 359 29396462 ment for a project to optimize its capital structure e-mail: [email protected] through replacing emergency bridge loans with long term financing; undertake urgent works aimed Company / EBRD, related Serbia at preserving the pipeline network integrity, and organization: build a new underground gas storage facility. The Announcement: EPS: Consultancy Services, Services, Works, Goods proposed project, which has a total estimated cost of EUR150 million equivalent, will require the procure- Content: EPS has applied for a loan from the European Bank ment of the following goods, works and services: for Reconstruction and Development towards the cost of modernizing the electricity distribution in- - Works: Pipeline network rehabilitation, including frastructure in Serbia to enable EPS to reduce losses, environmental protection and safety upgrade; and improve the quality and reliability of supply, and im- construction of a new underground gas storage fa- prove energy efficiency. cility - Goods: Components for the pipeline network reha- The proposed project has a total estimated cost of bilitation (pipes, valves and fittings); Equipment and 80 million EUR, of which 40 million EUR is proposed components for the new underground gas storage to be financed by the EBRD, and 40 million EUR by facility the European Investment Bank (EIB). The project will - Consultancy services: PIG survey fitness for pur- require the procurement of the following consultan- pose study; PIU support including procurement; Ba- cy services, goods, works and services to be funded sic design for the underground gas storage facility; by the EBRD for: feasibility study for storage/design/preparation of tender documents; feasibility study for interconnec- 1. Goods and related services for purchasing of me- tion; Integrated Strategic Expansion plan study for tering equipment for medium voltage, and the in- Srbjiagas; and a Lenders Technical Monitor stallation of the aforementioned items; Tendering for the above contracts is expected to begin at the end of the first quarter of 2010 for the 2. Goods and related services for purchasing of me- consultancy services, and during the third quarter of tering equipment for low voltage with remote read- 2010 for goods and works contracts. ing and remote disconnection capabilities, and for cables, poles, metering boxes, and auxiliary equip- Deadline: 17 February 2011, Belgrade time ment for the installation of the aforementioned Contact: JP Srbijagas, 12 Narodnog Fronta, items; 21000 Novi Sad, Serbia Tel: +381 21 481 2703 3. Supplies and services for supply, implementation Fax: +381 21 481 4305 and training of hardware and software with the ca- Email: [email protected] pabilities of remote management, remote reading, and a measurement database Company / EBRD, related Bulgaria organization: 4. Consulting services to support the Project Imple- mentation Unit established by EPS. Announcement: Bulgartransgaz Silistra, Kozloduy, Oryahovo Developmen Content: Bulgartransgaz Silistra, Kozloduy, Oryahovo De- Deadline: 17 February 2011 at 23:00, Belgrade time velopment Bulgartransgaz EAD (the “Employer”) Contact: EPS, Balkanska 13 intends to use the proceeds of the Grant funds Belgarde 11000, Serbia provided by the Kozloduy International Decommis- Email: [email protected] sioning Support Fund (the “KIDSF”), administered by Tel: +381 11 3611 434 the European Bank for Reconstruction and Develop- Fax: +381 11 3611 908 ment (the “Bank”) and its own resources to finance the cost and complete the Project for delivery and Company / construction of high pressure gas pipeline to, and EBRD, related Montenegro organization: gas regulation stations in Silistra, Kozloduy and Oryiahovo. Announcement: EPCG Metering Proj. Goods, works, services & consultancy The Project, which has a total estimated cost of EUR Content: Elektroprivreda Crne Gore (“EPCG”) has applied for 23.2 million, will require the following deliveries and a loan from the European Bank for Reconstruction construction services: and Development (the “Bank”) towards the cost of A. Delivery of steel pipes and fittings for a gas pipe- modernising the electricity distribution infrastruc- line. ture in Montenegro to enable EPCG to reduce losses, B. Delivery of gas valves. improve the quality and reliability of supply, and im- C. Automatic Gas Regulation Stations (AGRS). prove energy efficiency. D. Construction of high pressure gas pipelines and gas regulation stations. The proposed project has a total estimated cost of Construction and Commissioning of about 70 km Euro 43 million, of which EUR 38 million is proposed gas transmission pipeline, optical fiber cable line to be financed by the EBRD, and will require the within the gas pipeline easement and two AGRS. procurement of the following consultancy services, More info on: goods, works and services for: http://www.ebrd.com/oppor/procure/opps/goods/ general/090901a.htm

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Content: Company / (a) Goods and related services for purchasing of me- EBRD, related Bulgaria tering equipment for medium voltage, and the in- organization: stallation of the aforementioned items; Announcement: National Radioactive Waste Disposal Facility Content: The Kozloduy International Decommissioning Sup- (b) Goods and related services for purchasing of me- port Fund (KIDSF) has been established and is ad- tering equipment for low voltage with remote read- ministered by the European Bank for Reconstruction ing and remote disconnection capabilities, and for and Development (EBRD). One of the purposes of cables, pillars, metering boxes, and auxiliary equip- this Fund is to finance, or co-finance preparation ment for the installation of the aforementioned and implementation of selected projects, which items; would require procurement of goods, works and services for establishment of the National Disposal (c) Supplies and services for supply, implementation Facility for Low and Intermediate Level Short Lived and training of software for remote management, Radioactive Waste in an environmentally safe and remote reading, and measurement database cost effective manner. (d) Consulting services to support the Project Imple- A Project Management Unit has been established mentation Unit established by EPCG. and is in operation at State Enterprise Radioactive Waste to manage the projects notified below. Tendering for contracts under (d) above is expected to begin in the final quarter of 2009, and for the rest This General Procurement Notice draws attention to of the Project in the second quarter of 2010. These the following new upcoming procurement activi- components are anticipated to be financed princi ties: pally by the EBRD. • Pre-disposal Monitoring of the Radiana Site - Geo- desic Monitoring Contracts to be financed with the proceeds of a loan from the EBRD will be subject to its Procurement • Pre-disposal Monitoring of the Radiana Site – Geo- Policies and Rules and will be open to firms from any technical Monitoring and Analysis country. The proceeds of the EBRD’s loan will not be used for the purpose of any payment to persons or This project is for Geotechnical monitoring and anal- entities, or for any import of goods, if such payment ysis of the Radiana site. The work or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of • Pre-disposal Monitoring of the Radiana Site - Seis- the Charter of the United Nations or under a law or mic Monitoring official regulation of the purchaser’s country. • Pre-disposal Monitoring of the Radiana Site – Geo- Deadline: 3 November 2010 at 23:00, local time time dynamic Monitoring Contact: Mr Velimir Strugar Deputy Director • Pre-disposal Monitoring of the Radiana Site – Hydr- Functional Unit Distribution ogeological Monitoring and Geochemical Analysis Ul. Ivana Milutinovića 12, Podgorica • Pre-disposal Monitoring of the Radiana Site – Ra- Montenegro diological Monitoring Fax: +382 20 241 235 E-mail: [email protected] • Pre-disposal Monitoring of the Radiana Site – Me- teorological Monitoring

• Preparation of the Radiana Site

• Technical Design and ISAR preparation for National Disposal Facility

More info on: http://www.ebrd.com/oppor/procure/opps/goods/ general/091130a.htm Deadline: 29 November 2010 at 23:59, Bulgaria time Contact: Mr. Boris Pekov Executive Director State Enterprise Radioactive Waste Blvd, James Bourchier 51, fl.18 Sofia 1407 Bulgaria Fax. + 359 2962 5078 e-mail: [email protected]

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Company / Company / EBRD, related Bulgaria EBRD, related Bosnia and Herzegovina organization: organization: Announcement: Sofia District Heating Rehabilitation Announcement: BH Gas D.O.O. Sarajevo (General) Content: The Kozloduy International Decommissioning Sup- Content: BH-Gas intends to use the proceeds of a loan from port Fund (KIDSF), administered by the European the European Bank for Reconstruction and Devel- Bank for Reconstruction and Development (EBRD), opment („EBRD“) and its own resources towards was established in 2001 for the support of the de- the costs of high-pressure gas pipeline construc- commissioning of Units 1-4 of the Kozloduy Nuclear tion in Central Bosnia Canton enabling gasification Power Plant. One of the purposes of this Fund is to of 4 municipalities - Travnik, Vitez, Busovaca, Novi finance or co-finance preparation and implemen- Travnik - in this Canton. tation of selected projects that aim the necessary restructuring, upgrading and modernization in vari- The proposed project has an estimated cost of EUR ous Bulgarian industry sectors consequential to fi- 17,0 million, proposed to be financed by the EBRD, nal shutdown of Units 1-4 of the Kozliduy Nuclear and will require the following deliveries and con- Power Plant. struction services:

Toplofikacia Sofia EAD, the single owned joint stock A. Line Pipe Supply: Delivery of steel pipes for high district heating company serving the city of Sofia pressure gas pipeline, which are DN 400 (16, cca 41 carried out the rehabilitation of the centralized dis- km) and DN 200 (8, cca 7 km) trict heating system in the city. The District Heating Rehabilitation Project comprised the modernization B. Basic Equipment Supply: 4 block stations, 2 Pig of district heating substations, replacement of pipe- Launcher/Receiver Stations lines, compensators, valves, thermal insulation of over-ground pipelines, conversion to variable flow C. Metering & Regulator Station Supply: 4 MRS of the Sofia district heating network. D. Pipeline Construction Toplofikacia Sofia EAD intends to use additional grant funds of the Kozloduy International Decom- E. Construction Supervision missioning Support Fund (KIDSF) for continuation of the Project for replacement of the left, old, not au- Prequalification for all of the above contracts is ex- tomated substations in Sofia district heating system. pected to begin by the end of second quarter 2010. These funds shall be used for delivery, installation, Deadline: 8 April 2011 at 24:0, Sarajevo time testing and commissioning of: individual heating substations units for space heating and domestic Contact: BH-Gas d.o.o. Sarajevo hot water including. heat exchangers, circulation Hamdije Cemerlica 2 pumps, control valves and automation devices. 71000 Sarajevo, Bosnia and Herzegovina Tel: +387 33 279 000 Tendering for the above contracts is expected to be- Fax: 00 387 33 661 621 gin in the first half of 2010. In case the KIDSF does Email: [email protected] not grant these additional funds to Toplofikacia So- [email protected] fia, the tender procedure shall be cancelled.

The budget for the project, subject of this GPN is about EUR 10 million. Deadline: 19 January 2011 at 23:59, Bulgaria time Contact: “Toplofikacia Sofia” EAD Mrs. Anastasiya Markova, PIU Manager Tel: +359 2 8593171 Fax: +359 2 8599124 Email: [email protected]