EFT Group Annual Review 2011/2012 www.eft-group.net [email protected] St Gallen +41 71 226 1030 Belgrade +381 11 30 11 021

Athens Kalinovik Skopje EFT Hellas S.A. EFT HE Ulog d.o.o. EFT Makedonija DOOEL Kifisias Avenue 171 Karadjordjeva 19 Majakovski 3/M2 Marousi 151-24 71230 Kalinovik 1000 Skopje Athens Bosnia & Herzegovina Macedonia Greece Kiev Sofia Belgrade EFT Ukraine LLC EFT Bulgaria E.A.D. Energy Financing Team d.o.o. Office 54 2 Knyaginya Maria Louiza Blvd. Španskih boraca 3 9/2 Velyka Vasylkivska Street Sofia 1000 RE 11070 Belgrade 01004 Kyiv Bulgaria Republic of Serbia Ukraine St Gallen Bratislava Ljubljana Energy Financing Team (Switzerland) AG EFT Slovakia s.r.o. Elektricˇni Financˇni Tim d.o.o. Pestalozzistrasse 2 Karadzicova 8/A (CBC I) Business Center SMELT CH-9000 St Gallen 821 08 Bratislava Dunajska 160 Switzerland Slovakia 1000 Ljubljana Slovenia Stanari GEN Bucharest EFT Rudnik i Termoelektrana Stanari d.o.o. Energy Financing Team Romania S.R.L. London Stanari bb European Business Center EFT International Investments Holdings Ltd 74208 Stanari B-dul. Mircea Voda 111 Buckingham Palace Road Bosnia & Herzegovina Nr.24, Etaj 2, 030667 London SW1W 0SR Bucharest, Sector 3 UK Tirana Romania EFT Albania Sh.p.k. Maribor Gjergji Centre Budapest Elektricˇni Financˇni Tim d.o.o. Murat Toptani Street ER EFT Budapest Zrt. Titova cesta 2 (IV) Tirana Sas utca 10-12 2000 Maribor Albania HU1051 Budapest Slovenia Hungary Trebinje Nicosia Energy Financing Team d.o.o. Trebinje Copenhagen EFT Investments Ltd Obala Luke Vukalovi´ca b.b. EFT (Holdings) ApS Jacovides Tower 89 101 Trebinje Harbour House 81-83 Griva Digeni Avenue Bosnia & Herzegovina Sundkrogsgade 21 Office 130 ATION 2100 Copenhagen 1090 Nicosia Vilnius Denmark Cyprus UAB ‘EFT Lithuania’ 207 Office Herceg Novi Prague Vilniaus str. 31/Islandijos str. 1 Energy Financing Team d.o.o. Herceg Novi EFT Cˇesko a.s. LT-01402 Vilnius Sitnica b.b. Ovocny´ trh 572/11 Lithuania 85340 Herceg Novi 110 00 Prague 1 Montenegro Czech Republic Zagreb EFT Hrvatska d.o.o. Istanbul Trnjanska 37 EFT (Turkey) A.S¸. 10000 Zagreb 19 Mayis Mah. 19 Mayis Cad. UBM Plaza Croatia No:37 K:5 D:15 S¸is¸li, ˙Istanbul 34360 Turkey

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Contents

EFT GGrouproup REGENERATION – Our Theme this Year 02 Annual Review 2011 Results at a Glance 04 The Regional Energy Market in 2011 06

2011/2012 Group Structure 10

The Trading Floor 12

The Energy Financing Team Products and Services 14

Group is the leading energy Energy Exchanges 16 trading and investment firm operating in south-east, 2011 NEWS 18 central and western News from the Trading Floor 20 Europe, as well as Turkey Record Production at the Stanari Mine 21 and the Baltics. TPP Stanari Progress Report 22 EPC Contract Negotiations for Ulog HPP 22 EFT is striving to become Works Underway in Ulog 23 the first privately owned, EFT Donates Funds to the National Library of Serbia 24 integrated power company Chevening – EFT Scholarship Comes to Bosnia 25 in south-east Europe developed through greenfield Group Activities 26 – 45 investment in new power generation capacities. EFT Investments 46 Stanari Mine 48

TPP Stanari 50

Ulog HPP 52

Fatniˇcko Polje Tunnel 54

ENTSO – E Transmission Network 56 2 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 3

Regeneration – Our theme this year

The market backdrop against which EFT operates Coming at the end of a more than ten-year run of saw a dramatic transformation in 2011. For any year-on-year expansion of EFT’s operation, the events observers who imagined that the financial crisis was of 2011 prevented the Group from reporting anything confined to the years 2007–2009, the events of 2011 will more than minimal profits. But a period of reflection and have come as a shock. But despite the seriousness of the analysis has been strongly beneficial in other ways. problems for the Eurozone, what could not be predicted A close analysis of the structure of the Group and was an event that shocked the world’s energy industry to its expense base revealed a variety of efficiency its core – and that event was the tragic accident at the measures that were possible and which are now being Fukushima nuclear plant in Japan in March. implemented. The second half of the year saw a reduction in the number of offices, as it became apparent that Dramatic consequences followed worldwide, beyond harmonisation of market design allowed certain EFT the immediate local risks posed to health. Protests units to cover larger territories than in earlier times. against nuclear energy emerged in many locations, A renewed emphasis was placed on traditional markets and found establishment expression in Chancellor and counterparties for EFT, and the Group enters 2012 Angela Merkel’s announcement of a heavily politically with a strong financial position, a sensibly structured charged program of change for the German nuclear pattern of forward contracts with its clients, and a tighter industry. The eight oldest German nuclear plants were risk policy. taken offline within days of the Fukushima incident, leaving nine reactors in operation. The (possibly Looking to the longer term, the financing package for unintended) consequence was the overnight loss the EUR 550MM Stanari thermal power plant will close occasioned in the P & L accounts of almost all European in 2012. The Group is likely to partner with a major energy majors. The forward books of the constituent multilateral institution to develop the Ulog hydroelectric members of the European energy sector were unit in Bosnia. Thus long-term sources of supply constructed around a given amount of future German and significant financial strength underpin the future nuclear energy production, supported by an overall view of the Group. The temporary reversal of 2011, and the of the future of European nuclear energy policy. much-reduced profits associated, will be seen as an anomaly, and indeed in years to come it will be possible EFT, like its market peers of all sizes, could not anticipate to see the benefits of a period of reflection and the catastrophic accident in Japan in March 2011 that refocusing. The Group is still young and dynamic, yet would lead to decisions being taken at the highest level constantly developing in maturity. The energy market to alter the architecture of the European energy market. may have suffered a winter of limited growth, but the In response to these changes and the significant regeneration of spring follows on – and EFT has short-term losses they engendered, EFT took radical positioned itself well within its target market to take action to preserve its balance sheet and capital position, full advantage, emerging stronger and fitter than ever. to ensure its liquidity and strong cash reserves, to cut its exposure to market risk, to lock in profits for 2012–13 where possible, and to ensure the success of its major infrastructural projects which will become operational within five years and will generate very significant income streams. A renewed emphasis was placed on traditional markets and counterparties for EFT, and the Group enters 2012 with a strong financial position, a sensibly structured pattern of forward contracts with its clients, and a tighter risk policy. 4 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 5

AUSTRIA 4.0 1.5 AUSTRIA 2011 RESULTS AT A GLANCE ALBANIA 0.3 4.6 ALBANIA BULGARIA 5.3 0.2 BULGARIA BOSNIA & 5.6 3.3 BOSNIA & HERZEGOVINA HERZEGOVINA MONTENEGRO 0.6 0.4 MONTENEGRO CZECH REPUBLIC 4.6 2.1 CZECH REPUBLIC GERMANY 43.8 42.7 GERMANY ESTONIA 0.2 0.0 ESTONIA GREECE 0.6 2.4 GREECE CROATIA 0.0 6.2 CROATIA HUNGARY 14.5 14.2 HUNGARY ITALY 3.2 4.8 ITALY LITHUANIA 0.0 0.2 LITHUANIA MACEDONIA 0.4 4.7 MACEDONIA ROMANIA 8.3 6.6 ROMANIA SERBIA 2.4 EFT Purchases in 2011 (%) EFT Sales in 2011 (%) 1.4 SERBIA SLOVAKIA 0.7 1.0 SLOVAKIA SLOVENIA 3.3 2.8 SLOVENIA TURKEY 0.0 0.3 TURKEY KOSOVO 1.7 0.6 KOSOVO UKRAINE 0.4

Turnover 2002–2011 (EUR) Financial Turnover: Billion Euros '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

Billion 2.5

2

1.5

1

0.5

0

Million 45 40 2 .17 35

30

25

20

15

10

5

0

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Energy Delivered 2002–2011 (MWh) 41. 200Energy Delivered: GIgawatt Hours 6 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 7

Price movement in March 2011 following the Fukushima accident EUR/MWh 63 The immediate future 62 61 of large power utilities 60 59 will be determined 58 57 by their ability to innovate 56 55 and find new sources 54 53 of value. 52 51 50 49 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March April 2011 Q2 2011 The market in 2011 CAL 12 The architecture of the European energy market has been fundamentally transformed in 2011.

Two significant factors impacted the energy market Two huge consequences emerged: first, the immediate The situation is the same across the board in Monthly electricity production from hydro units in SEE in a dramatic manner: the tragic accident at the sharp spike in spot prices caused vast immediate losses Europe. The Norwegian power utility Statkraft GWh Fukushima nuclear power plant in Japan in March, on the books of most market participants. Secondly, has posted a EUR 204 million loss in Q3, 9000 and one of the driest periods on record during the market participants had to unwind long-term forward while the Czech power utility CEZ announced 8500 last three quarters of the year. positions which depended on German nuclear production. a year-on-year net income slump of 34%. 8000 The knock-on effect of these two direct market shocks ALPIQ, the Swiss utility also posted 7500 The Fukushima accident had dramatic consequences was a fundamental realignment of European energy unexpectedly poor results, as did a number 7000 worldwide, beyond the immediate local risks posed to markets, and in the wake of this we have seen successive of other utilities in Austria, Greece and across 6500 health. Acting as a catalyst for anti-nuclear sentiment announcements of large losses and corporate south-east Europe. 6000 and a populist drive towards renewable energy sources, restructurings from many large European energy firms. 5500 protests against nuclear energy emerged in many Just about the time the first financial results 5000 locations. For Europe, the most significant was the “The first half of 2011 has been the worst period in the for the year started coming though (Q3) 4500 protest in Germany by more than 200,000 people in history of our company” EON CEO Johannes Thyssen the south-east and central Europe region 4000 March. This was the month in which key local elections said at a press conference presenting the German giant's entered one of the driest periods on record. 3500 in Germany took place, and Chancellor Angela Merkel results for the year. In only the second quarter of 2011 EON The region is highly dependent on hydrology, 3000 fronted the announcement of a heavily politically posted a EUR 395 million loss, recording a staggering 71% with circa 30% of all energy produced 2500 charged programme of change for the German nuclear drop in year-on-year net income for the first half of 2011. in SEE coming from hydro units. Serbia, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec industry. The eight oldest German nuclear plants The other German giant, RWE, recorded a EUR 598 million Romania, Montenergo, Bosnia and were taken offline within days of the Fukushima loss in the first half of the year. ENbW, the third German Herzegovina and especially Albania are 2011 figures incident, leaving nine reactors in operation. By June, electricity producer fared similarly – it recorded EUR 552 dependent on production from their large 2010 FIGURES (record hydrology) the German Parliament had approved legislation million in losses in the period January – September 2011. hydro power plants. 2007 FIGURES (poor hydrology) to phase these out of operation on an accelerated Mean production during 15 year period timetable, commencing in 2015. continued over 8 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 9

Bosnia & Albania Herzegovina Bulgaria Croatia Greece Hungary Macedonia Montenegro Romania Serbia Slovenia

TWh 11 10 9 8 The Fukushima accident 7 6 had dramatic consequences 5 4 worldwide, beyond 3 2 the immediate local risks 1 0 posed to health. -1 -2 -3 -4 -5 -6 -7 -8 2005 2006 2007 2008 2009 2010 2011

Annual energy balance of SEE countries (2005 – 2011)

Hidroelectrica, Romania’s operator of hydro power plants called a force-majeure in the fourth quarter, which severely impacted Romania’s exports of energy. This triggered a major change in the regional electricity market, as Romania is the region’s TWh leading exporter of energy. Bosnia and Herzegovina, also one 290 of the region’s major exporters of energy followed suit – in the 285 fourth quarter its utilities were importing energy. By the fourth 280 quarter Albania also became a net importer of energy, as more 275 than 90% of its energy comes from hydro units. Croatia, Serbia 270 and Montenegro were also affected. 2005 2006 2007 2008 2009 2010 2011

These developments were reflected by the market prices Electricity consumption in SEE (2005 – 2011) both of energy and Cross Border Capacities (CBCs). The cost of transferring energy from Germany to the region reached the EUR 50/MWh mark, while energy easily surpassed the EUR Since these banks and hedge funds’ full-scale entry into the 100/MWh mark. This came against a backdrop in which the electricity market, the volume of electricity traded has grown price of energy was sold for most of the year in the region of exponentially. The size of trading positions taken up by banks EUR 55-60/MWh. and hedge funds, the size of funds at their disposal, their propensity to take higher risks, their skill and aggression have But the unexpected U-turn of the German political elite in lead to a major shift in the energy markets. The traditional power respect of nuclear energy does not fully explain the poorer brokers in the markets, the large utilities, are no longer able results of European energy companies in 2011. After all, losses to exert the same level of influence on price and market were recorded by companies which are in no way reliant on developments simply by tweaking their production portfolios. nuclear energy in the energy mix. By the third quarter of 2011 And this is making them very nervous. It seems that for all the it became clear that the main cause of concern in the energy cost cutting and restructuring efforts, the immediate future of community is the acknowledgement that investment banks and large power utilities will be determined by their ability to innovate hedge funds may have hijacked the market. and find new sources of value. 10 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 11

EFT Investments Ltd (Cyprus) EFT Lithuania UAB EFT Albania Sh.p.k. GROUP EFT International Investments Holdings Ltd (UK) * EFT Trade d.o.o. (Serbia) EFT (Turkey) A.S¸. J.V. ** STRUCTURE EFT (Holdings) ApS (Denmark) EFT Rudnik i Termoelektrana Stanari d.o.o. (BiH) Energy Financing Team d.o.o. Trebinje (BiH) EFT Bulgaria E.A.D. EFT Hrvatska d.o.o. (Croatia) EFT Cˇ esko a.s. (Czech Republic) EFT Hellas S.A. (Greece) EFT Budapest Zrt. (Hungary) Trading Licence Poland EFT Makedonija DOOEL (Macedonia) Energy Financing Team d.o.o. Herceg Novi (Montenegro) Energy Financing Team Romania S.R.L. Energy Financing Team d.o.o. Belgrade (Serbia) EFT Slovakia s.r.o.

Notes: Elekricˇni Financˇni Tim d.o.o. Ljubljana & Maribor (Slovenia) Trading Licence Bulgaria i) Energy Financing Team (Switzerland) AG is the Group’s principal energy trading company. ii) The main activity of all companies within EFT Group is energy trading, with the exception of: Energy Financing Team (Switzerland) AG EFT Ulog d.o.o. Kalinovik (BiH) EFT Investments Ltd – holding company. EFT International Investments Holdings Ltd – holding company. Energy Financing Team Limited (UK) Mineral Investments d.o.o. Belgrade (Serbia) EFT (Holdings) ApS – holding company. EFT Rudnik i Termoelektrana Stanari d.o.o. – mine and thermal power plant. EFT Ukraine LLC Trading Licence Czech Republic EFT Ulog d.o.o. Kalinovik (BiH) – hydro power plant. EFT Mineral Investments d.o.o. Belgrade (Serbia) – mine under development. Trading Licence Hungary iii) * Following a 2010/11 cost review conducted by PwC, EFT has moved some of its administrative functions from EFT (Holdings) ApS to a new UK company, EFT International Investments Trading Licence Kosovo Holdings Ltd. iv) All companies are 100% owned with the exception of EFT (Turkey) A.S¸. Trading Licence Romania v) ** EFT Turkey A.S¸. is a Joint Venture. EFT International Investments Holdings Ltd owns 51%. vi) The Group structure is currently under revision. Trading Licence Slovakia 12 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 13

The Trading Floor We led in 2000 by creating the first electricity trading floor in south east Europe. We continue to lead with a cutting-edge trading platform – an inspirational environment for the highly qualified, gifted and motivated young men and women of EFT.

EFT Group Trading Floor Settlements EFT’s Trading Floor is located in Belgrade, Serbia. The Settlements department deals with invoicing, and Its main task is to optimise the Group’s portfolio prepares the deal confirmations and statistics required of energy products, ensuring that clients’ demands by all local companies within the Group. are met, whatever the circumstances. The trading floor also enables EFT to respond to the ever-changing Customized IT platforms state of the region’s transmission grid and production The EFT Group’s Trading Floor operation relies on two capacities. custom made applications - EPOX and InBalance.

24/7 state-of-the-art trading EPOX is used internally. Its purpose is to facilitate all EFT runs an innovative 24-hour Scheduling Centre. activities connected with electricity trading, scheduling, This unique centre enables EFT to meet the needs and settlement. It also provides reports used in planning of a huge array of clients at any time day or night, activities. with intra-day trading. InBalance is used externally, by EFT’s clients in Romania Scheduling and Portfolio Management and Macedonia. The platform facilitates the exchange of The Scheduling and Portfolio Management departments electricity consumption data between the Group's clients make schedulers and long-term plans to optimize the and the Trading Floor. Group’s trading positions. They also manage purchase and sales contracts, as well as Cross Border Capacity rights and various analysis.

Analytics Team The Analytics Team makes medium- and long-term forecasts of the consumption, production and energy balances of the countries in south east and central Europe, as well as in Germany. The team also analyses global macroeconomic trends and the influence of other energy commodities on the forward price of electricity in the region. 14 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 15

Products and Services

The flexibility of EFT’s portfolio allows the Group Fixed for floating, with or without cap or floor to offer a number of tailor-made derivative products. These structures permit the customer to conclude These include: a contract now at a price slightly away from the real market price, in return for securing the ability Extendable delivery purchase and sales contracts to earn a better price in the future. To earn this price These contracts typically have an above- or below-market improvement, the contract specifies that on the day unit price, but with an imbedded option permitting the it is signed, an observation be made of the prevailing holder the right but not the obligation to extend the price in Germany. This first observation date is then contract term quantity and price for a pre-agreed period. compared with a second observation date, which must be before the commencement of the deliveries. Interruptible delivery purchase and sales contracts The difference between the two observation dates The buyer has the right to interrupt, stop or postpone is measured and then applied to the originally agreed In addition to standard base the delivery of energy. contract price. and peak energy, the Group Emergency delivery of energy on short- and In the event the customer wishes to protect himself/ long-term notice herself against an adverse change between the two can offer weekly base or The flexible nature of EFT’s portfolio allows the Group observation dates, EFT can provide a cap or floor, the opportunity to market reserve energy services subject to the inclusion of a co-efficient that limits peak, workday base, peak to several transmission system operators. Unlike a any positive benefit in the event of a favourable move stand-alone power plant, EFT is able to optimise its between the two observation periods (eg. EUR 1 real or off-peak, or weekend entire portfolio to provide the most efficient and most move might only alter the unit price by EUR 0.50). energy. This is scheduled for competitively priced reserve energy service. Upward reserve power full delivery across hourly, Delivery of reserve power – on a tertiary reserve basis daily, monthly, quarterly, with activation on minute and hourly notice. Downward reserve power yearly and longer term EFT is able to guarantee energy off-take for its partners periods. at times of unexpected surpluses in their portfolios. Physical location and time swaps These swaps aim to circumvent congested borders by swapping like-for-like quantities of physical energy in different countries according to a fixed or floating formula agreed by the parties. 16 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 17

EEX Leipzig, Germany Energy www.eex.de EXAA Vienna, Austria Exchanges www.exaa.at GME Rome, Italy www.mercatoelettrico.org

PXE Prague, Czech Republic EFT Group companies www.pxe.cz now trade daily on BSP SouthPool Ljubljana, Slovenia thirteen international www.bsp-southpool.com OPCOM Bucharest, Romania energy exchanges. www.opcom.ro Participation on international energy POOL Athens, Greece exchanges allows EFT to balance out www.desmie.gr its portfolio and achieve greater level of flexibility on the day-ahead markets. OTE Prague, Czech Republic In combination with greater access to www.ote-cr.cz Cross Border Capacity rights, it allows the Group to provide a wider range OKTE Bratislava, Slovakia of tailor-made products to its clients. www.okte.sk

HUPX Budapest, Hungary www.hupx.hu

PMUM Ankara, Turkey http://dgpys.teias.gov.tr/dgpys

BALTPOOL Vilnius, Lithuania www.baltpool.lt

NORDPOOL Lysaker, Norway www.nordpoolspot.com 18 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 19 EFT News

News from the Trading Floor Record Production at the Stanari Mine TPP Stanari Progress Report EFT Commences EPC Contract Negotiations for Ulog HPP Works Underway in Ulog EFT Donates Funds to the National Library of Serbia Chevening – EFT Scholarship Awarded in Bosnia and Herzegovina 20 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 21

01. News from the Trading Floor 02. Record Production at the Stanari Mine

The excavation at the Stanari mine continued its impressive growth in 2011 with yet another set of record-breaking results. 926,938 tons of coal was excavated, surpassing start-of-year plans by 13% . 7,980,695m3 of overburden was removed, 60% more than was expected at the beginning of the year. All this was achieved in tandem with a reduction of specific production costs. At the end of 2011 there were 2,000,000 tons of uncovered coal at the Stanari mine.

Trading Floor Reorganised Ton (Thousands) m3 (Millions) In 2011 the Group moved to its new premises 1000 10 in Belgrade, and the move brought with it substantial 900 9 changes in the organisation of the Trading Floor. Customised Software Platforms Enhanced From a standard, linear structure, the Trading Floor Both of the Group’s customised software applications 800 8 is now a more compact structure in a single, open – EPOX and InBalance – were enhanced in 2011. 700 7 space. The change has enabled the development of more effective communication channels between EPOX, the Group's principal trading platform, has 600 6 various parts of the trading operation – Scheduling, among other developments seen the introduction of the 500 5 Portfolio and Settlement. This has resulted in a better Trade Interface. This allows the Group traders to input flow of ideas and closer co-operation between the deal information directly into a database through a 400 4 different parts of the Trading Floor. flexible, graphic user interface. Apart from the basic 300 3 deal information, the Trade Interface enables the traders Trading Team Expanded to pool together deals into hedge, spread or other types 200 2 The Group’s team of traders has been expanded of groups. This greatly assists portfolio analysis, both 100 1 in 2011, also signalling a shift in the Trading Floor from an energy and a financial point of view. The 600,000 600,803 600,000 713,949 712,000 794,363 720,000 927,755 4,398,000 3,453,332 4,310,000 5,149,962 5,200,000 5,423,056 5,000,000 7,980,695 re-organisation. Over 3500 applications were interface also allows for specification of the CBCs 0 0 submitted for the two positions the Group advertised. needed to transport the electricity between the trading '08 '09 '10 '11 '08 '09 '10 '11

The new arrivals have undergone EFT’s structured parties. In this way the interface converges input of 3 trader training course. critical information, reduces the potential for human Coal Excavation Stanari Mine (Tons) Overburden Excavation Stanari Mine (m ) ■ ■ ■ ■ error and enables greater automation in the system. Planned Realised Planned Realised New Focus on Intra-Day Trading The Group’s trading team has responded to ever- The other EFT Group application, InBalance, has also changing market circumstances by developing evolved and is now used for specialized communication a more comprehensive involvement in intra-day with end clients in Macedonia and Romania. Apart from In addition, several key activities have been completed during the year. These include: markets. The market in 2011 was characterised its main purpose as a forecast information exchange by one of the driest periods on record and some portal, InBalance now also serves as a basic Content – Successful land acquisition in the mine area, enabling unhindered development of the mine uncharacteristic weather conditions. Both factors Management platform for various Group websites. drastically impacted both the demand and supply Romanian, Macedonian and Turkish Group – Relationships with the three key clients in Bosnia and Herzegovina - NATRON-HAYAT, SISECAM sides, which lead to unexpected market opportunities web presentations are now served by InBalance, SODA and Elektroprivreda Bosne i Hercegovine – have been strengthened and expanded on intra-day markets. and allow for visitor tracking and statistics through integration with Google Analytics tools. They also – The mine has been re-certified to adhere with the international ISO standards, including ISO 9001 provide basic options for interaction with site visitors, (Quality Management System) and ISO 14001 (Environmental Management System); it has also and in the case of Turkey, for correspondence with acquired OHSAS 18001 (Safety Management Certification). The mine's laboratory has been certified prospective new clients. to adhere to ISO 1725 standards. 22 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 23

03. TPP Stanari Progress Report 05. Works underway in Ulog 2011 saw the continuation of activities related to the development of TPP Stanari

– All the relevant studies and documents have been updated and verified. Basic design for TPP Stanari was completed and approved (in conjunction with a Consortium made up of AF-Consult and Steinmüller Engineering)

– The contract for the coal supply system connecting the mine and TPP Stanari has been signed with German-based company FAM Förderanlagen Magdeburg

– The project documentation for buildings and structures which do not constitute part of the EPC contract has been completed, including the system of access roads, plant administration buildings, workshops, and the housing of Chinese engineers during construction – The contract for construction of the new 400/110 substation has been signed – The TPP Stanari construction site has been levelled and prepared for the The whole system commencement of full-scale EPC activities of access roads, totalling – The technical consultant acting as owner's engineer for the EPC activities has been chosen 8 kilometres, is scheduled – The water supply for the construction site has been secured to be completed – Additional geomechanical assessment has been conducted at the by the end of 2012. construction site

– Construction of the accommodation camp for the EPC contractor's workforce has begun

– The final construction permit for TPP Stanari has been issued by the Ministry of Spatial Planning, Construction and Ecology of Republika Srpska

– Contract negotiations for the operation and maintenance of TPP Stanari have been conducted with Dongfang Electric Corporation EFT commenced full-scale construction activities on the Ulog HPP project, with the building of a system of access roads at the locality. 5 kilometres of access roads had been built on both banks of the river Neretva by the end of 2011. The whole system of access roads, 04. EFT Commences EPC Contract totalling 8 kilometres, is scheduled to be completed by the end of 2012. The job has been contracted Negotiations for Ulog HPP to Prijedorputevi, the member of Fortis Group in Bosnia and Herzegovina.

Apart from access roads, 2011 also saw commencement In 2011 EFT commenced the process of choosing The Chinese contractors, Sinohydro and Hydrochina are of work on transmission infrastructure for the future Ulog the EPC (engineering, procurement and construction) real giants. Sinohydro has so far realized hundreds of HPP. A 35kV transmission line, totalling 16 kilometres contractor for the Ulog HPP. Following an international large- and medium-scale hydropower projects around the in length, has been built by Eling, a local, Teslic-based invitation seven companies submitted offers to build. world, with total installed capacity currently over 130,000MW. company. The line will be used to supply electricity to the Of these, four are being considered – two from Chinese Hydrochina Corporation also has a considerable track construction site. contractors, Hydrochina and Sinohydro, and two from record, with over 16,000MW of installed capacity completed regional companies, Croatia’s “Konstruktor” and “Primorje” in overseas projects alone. The year also saw the continuation of land acquisition from Slovenia. The Chinese offers include financing for the needed for the functioning of the Ulog HPP. So far the required works, while the offers from regional companies The EFT Group will finalise all EPC contract negotiations Group has acquired 42 acres of land from local owners. are for the construction works only. for the Ulog HPP in 2012. 24 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 25

06. EFT Donates Funds to the National 07. Chevening – EFT Scholarship Awarded Library of Serbia in Bosnia and Herzegovina

In 2012 the British Embassy in Sarajevo and EFT will be awarding a Chevening – EFT scholarship in Bosnia and Herzegovina. The expansion of the programme to Bosnia and Herzegovina follows the successful awarding of the scholarship in Serbia in 2010.

The British Embassy in Sarajevo, the British Council The EFT Group has donated EUR 250,000 to the in Bosnia and Herzegovina and the EFT Group hosted National Library of Serbia, enabling the completion a reception in Sarajevo on 26 January to launch of the long-running refurbishment of Serbia’s the Chevening – EFT scholarship for 2012/ 2013. oldest and most important cultural institution. The scheme is intended to support one year postgraduate study programmes in the United Kingdom. The funds have been used for the procurement of the The Chevening – EFT scholarship is a joint project entire IT infrastructure used at the Library – servers, between the British Foreign and Commonwealth Office EFT's Vice-Chairman, James Nye said the Group's clients, laptops, software, printers and other multimedia (FCO) and the EFT Group and has been administered support of the Chevening programme is a continuation of equipment. Virtual desktop infrastructure has also been in southeast Europe since 2010. its long-term dedication to supporting projects essential installed at the Library, enabling efficient and economic to the progress of our society – education, culture and use of a modern IT system. At the reception, attended by numerous young and healthcare. “Through its work at the Stanari lignite mine talented citizens of Bosnia and Herzegovina, former near Doboj and its extensive commitment to helping EFT’s funds have been used to equip the central, Thanks to this equipment, Chevening scholars, representatives of BiH and UK education in Bosnia and Herzegovina, EFT has over the electronic, multimedia and scientific reading rooms, businesses, government officials and media, British years proven its credentials as a socially responsible reference and periodicals reading rooms, as well as the the new, modernized Ambassador to Bosnia and Herzegovina H.E. Nigel company in the truest sense of the word. EFT’s strategic reading room for the blind. As a result, for the first time Casey and co-founder and Vice-Chairman of EFT, goal is to become the first modern, private owned power in Serbia, those with impaired vision will have access National Library of Serbia James Nye, signed a Memorandum of Understanding utility in the region. In order to modernise the energy to all the current publications in electronic form. on the Chevening – EFT scholarship for 2012/2013. sector it is necessary to modernise the whole of society. will be able to serve 1,000 And vice-versa. Our strategic business goals and the “Thanks to this equipment, the new, modernized National “We are delighted to be celebrating this evening goals of BiH society are therefore closely connected,” Library of Serbia will be able to serve 1,000 physical physical users daily. the agreement with EFT to sponsor an additional said James Nye. users daily and 20,000 users who access its records Chevening scholarship from this year onwards. EFT is online. In total, the Library will be able to serve 8 million one of the leading British-based investors in Bosnia Larisa Halilovic of the British Council in Bosnia and users annually”, said Sreten Ugricic, director of the and Herzegovina,” said Ambassador Nigel Casey. Herzegovina emphasised the importance of the National Library of Serbia. “We are delighted with the commitment they have Chevening scholarship scheme. “Being able to provide shown through supporting the education of some of the opportunity for talented young people to make the To mark the occasion, the British Ambassador to Serbia, EFT’s Vice-Chairman, Svetislav Bulatovic, explained the brightest and best in this country. The Chevening next step towards their immediate professional goal by H.E. Michael Davenport hosted a reception at the the reasons for the Group’s support of the project. scheme has been running in Bosnia and Herzegovina studying in the UK is hugely rewarding and helps bring National Library of Serbia on 31 August 2011. The event “Our strategic goal is to make EFT the first modern, since 1996 and we have already sponsored 130 a better future for Bosnia and Herzegovina. We take was attended by several hundred guests from the worlds privately owned power utility in the region. We feel that students to study in the United Kingdom. Many of great pride in the role the Chevening alumni network is of culture, science and academia, politics, media and only if society is modernised as a whole will the energy them have now returned to important positions in the playing in our society”. business. Speaking at the event, Ambassador Davenport sector be modernised as well. The two processes go public life of Bosnia and Herzegovina and are making expressed his satisfaction that “such a generous hand in hand.” a significant contribution to this country’s development. To learn more about the Chevening – EFT scholarship donation from a British company will help put the We are very pleased that EFT has become our partner,” scheme in Bosnia and Herzegovina, please visit resources of the National Library at the disposal Following a four year period, the National Library of said Ambassador Casey. www.eft-chevening.net of the widest possible audience in Serbia”. Serbia reopened its doors to visitors on 12 September 2011. To learn more about the National Library of Serbia please visit www.nb.rs

Chevening uk government scholarships 26 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 27

Switzerland & UK p.28 Austria & Germany p.29 Italy p.30 Czech Republic p.31 Slovakia p.32 Hungary p.33 Slovenia p.34 Croatia p.35 GROUP Romania p.36 Bulgaria p.37 Serbia p.38 Kosovo p.39 Bosnia & Herzegovina p.40 ACTIVITIES Montenegro p.41 Macedonia p.42 Greece p.43 Albania p.44 Turkey & Lithuania p.45 28 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 29

Share of Austrian and German markets in EFT portfolio 2002 - 2011 % As the largest and most 60 50 liquid energy market in 40 EFT London has 30 Europe, Germany sets the EFT AG has the strongest 20 a strong in-house legal 10 pace of the electricity market balance sheet of all the 0 capacity and a team 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 for most of the continent. Group trading companies Energy with extensive experience SALEs Purchases It is the single biggest

and generates most % in structured finance 50 market for the EFT Group, of the Group income. 45 and commodity trading. 40 accounting for 43% of all 35 30 Group sales, and 44% 25 20 of EFT Group purchases 15 Switzerland UK 10 in 2011. It continues to be 5 Energy Financing Team (Switzerland) AG EFT International Investments Holdings Ltd 0 the single most important Pestalozzistrasse 2 111 Buckingham Palace Road 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 CH-9000 St Gallen London SW1W 0SR Turnover balancing and hedging hub Switzerland UK Tel: +41 71 226 1030 Tel: +44 207 518 9250 for the EFT Group portfolio, EFT in Austria and Germany 2002 – 2011 TWh 25 but also provides numerous 20 15 opportunities on long-term, Energy Financing Team AG (Switzerland) is the The London office provides the Group companies with 10 principal operating company within the EFT Group. a wide range of support services, including financial 5 spot and intra-day markets. modelling, legal and treasury advice, documentation 0 The Swiss company has the strongest balance sheet control and public relations. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 of all the Group trading companies and generates SOld energy Purchased energy Switmost of the Group income. It is responsible for a large These EFT professionals− have decades of experience Aus− percentage of EFT’s client business and also covers in the management of all kinds of financial risks, built Austria tasks related to Group risk management, treasury, through careers in commercial and investment banking, controlling and marketing. the capital markets, the trade finance and forfeit Population: 8,210,281 markets, as well as accountancy and law. GDP (PPP*): $331.2 billion The Swiss office is managed and supported GDP per capita (PPP*): $40,400 by professional staff with extensive experience In terms of documentation support, EFT London has Area: 83,871 sq km in energy trading, risk management, financing, a strong in-house legal capacity and a team with Market: Completely liquid accounting and law. extensive experience in structured finance and Power exchanges: EXAA commodity trading. Alongside the Swiss office, London looks after the documentary standards and risk control zer−through adequate contractual protection for the Group triaGermany & and all its businesses. The London office is also in charge of legal aspects related to company formation Population: 82,329,758 within the Group. GDP (PPP*): $2,925 billion GDP per capita (PPP*): $35,500 The financial experience of the London team supports Area: 357,022 sq km the treasury work carried out in the Swiss unit. Market: Completely liquid EFT London also undertakes the task of financial Power exchanges: EEX modelling for various Group investment projects. OTC platforms: SPECTRON land Ger*purchasing− power parity & UK many 30 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 31

The Czech Republic remains The nuclear accident an important source market in Japan impacted the for the EFT Group. The Italian market more than country is an important route most others in Europe. into the Hungarian market for the Group, while the high liquidity of its market ItalyItaly Czech provides much-needed Population: 58,126,212 GDP (PPP*): $1,827 billion flexibility for the optimisation GDP per capita (PPP*): $31,400 Area: 301,340 sq km of the Group portfolio. Market: Semi-liquid Power exchanges: GME OTC platforms: SPECTRON The Czech Republic *purchasing power parity Re−Population: 10,211,904 Share of Italian market in EFT portfolio GDP (PPP*): $264.8 billion 2004 – 2011 GDP per capita (PPP*): $25,900

% Although EFT’s results in Italy declined in 2011, Area: 78,867 sq km 10 against the backdrop of severe post-Fukushima market Share of Czech market in EFT portfolio Market: Semi-liquid 9 circumstances they reflect the soundness of the Group’s 2006 – 2011 Power exchanges: OTE, PXE 8 business model. The nuclear accident in Japan impacted % 7 the Italian market more than most others in Europe. It 25 6 resulted in an immediate price rise, which was followed 20 *purchasing power parity 5 by a severe fall in liquidity in the market. While the 15 4 Fukushima accident did not have a major impact on 10 3 prices in the long run, the severity of the immediate pub−5 2 shock led to enormous losses for many energy 0 1 companies and generally a sharp decrease in market 2006 2007 2008 2009 2010 2011 0 appetite for risk throughout the year. Energy 2004 2005 2006 2007 2008 2009 2010 2011 SALEs Purchases Energy EFT uses the Italian market as a primary hedging hub SALEs Purchases due to its high liquidity and strong correlation to the % other markets. A small portion of EFT’s portfolio in Italy 3.5 is dedicated to speculative trading. In 2012 the Group % 3 12 will focus more on the intra-day market. With the addition 2.5 10 of new traders and some structural changes on the 2 8 trading floor, EFT is looking into possibilities of li1.5 c 6 developing this highly volatile market segment. 1 4 0.5 2 0 0 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011 Turnover Turnover

EFT in Czech Republic 2005 – 2011 TWh EFT in Italy 2004 – 2011 3.5 TWh 2.5 3 2 2.5 1.5 2 1 1.5 0.5 1 0 0.5 2004 2005 2006 2007 2008 2009 2010 2011 0 SOld energy Purchased energy 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy 32 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 33

The Slovak energy market In Hungary EFT in 2011 has been largely demonstrated considerable defined by the introduction creativity and mobility once of a significant number again in 2011. SLO−of solar power units. HUN−

Slovakia Hungary

Population: 5,463,046 Population: 9,905,596 Share of Slovakian market in EFT portfolio GDP (PPP*): $79.77 billion GDP (PPP*): $196.7 billion

% 2005 – 2011 GDP per capita (PPP*): $22,000 GDP per capita (PPP*): $19,800 10 Area: 49,035 sq km Area: 93,028 sq km VAKIA9 Market: Semi-liquid GARYMarket: Semi-liquid 8 OTC platforms: OKTE – MA OTC platforms: GFI, TFS 7 Share of Hungarian market in EFT portfolio 6 2002 – 2011 % 5 *purchasing power parity *purchasing power parity 35 4 30 3 25 2 EFT delivered MWh 429,682 and purchased MWh The deregulated electricity market in Hungary allows 20 1 280,584 of electricity in Slovakia in 2011. This result for opportunities in product development, and EFT once 15 0 reflects a shift in the strategy employed by the Group, in again demonstrated considerable creativity and mobility 10 2006 2007 2008 2009 2010 2011 which Slovakia became primarily a transit market enabling in 2011 in this respect. The Group developed new trading 5 Energy better optimization for the rest of the Group portfolio. relationships with counterparties primarily in the 0 SALEs Purchases generation segment, including those without considerable 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 The year also saw EFT transferring all trading activities credit and compliance progress (AES, Vértes, Mátra, Energy from the local subsidiary to EFT AG Switzerland. The Gy ˝or city cogeneration plant CHP, Budapest city SALEs Purchases % 5 Group's most important partners in Slovakia include waste-to-energy plant). The Group also regained its Slovenske elektrarne a.s., all three local distribution position as the supplier of tertiary reserve power to 4.5 % 4 companies (ZSE Energia a.s. - Eon, Stredoslovenska MAVIR, the Hungarian transmission system operator. 16 3.5 energetika a.s. - EdF, Vychodoslovenska energetika a.s. In relying on the Gy ˝or power plant to develop the product 14 3 - RWE), and all significant international and regional for MAVIR, EFT has also given a valuable boost to 12 2.5 traders. EFT is also present on local energy platforms, domestic energy production at a time of considerable 10 2 such as the SPX power exchange and the ISOT platform market difficulty. Prices in Hungary followed the 8 1.5 of the OKTE market operator. European trend throughout the year – a post-Fukushima 6 1 spike was evened out by a period of deep recession, 4 0.5 The Slovak energy market in 2011 has been largely while poor hydrology in the second half of the year once 2 0 defined by the introduction of a significant number of again resulted in price hikes. 0 2005 2006 2007 2008 2009 2010 2011 solar power units, stimulated by the country’s positive 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover regulatory framework and policies. New units in the Turnover range of 100kW to 4MW now account for a more than 200MW total installed capacity. In 2012 it is expected EFT in Slovakia 2005 – 2011 that the extension of the NPP Mochovce (owned and EFT in Hungary 2002 – 2011 TWh TWh 1.4 operated by Slovenske elektrarne a.s. / Enel) will be 7 1.2 partially completed and that the third block of the unit 6 1 will become operational. This will significantly alter the 5 0.8 Slovakian energy market, with NPP Mochovce delivering 4 0.6 approximately 45% of the country’s total production. 3 0.4 2 0.2 1 0 0 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy SOld energy Purchased energy 34 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 35

The Slovenian electricity Share of Croatian market in EFT portfolio 2002 – 2011 market in 2011 was % EFT maintained its position 14 characterised by the major 12 as one of the leading trading 10 organisational changes 8 partners of Croatia’s Power 6 of the Group’s main 4 Utility (HEP) in 2011. 2 clients, the five electricity 0 Slo− 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 distribution companies. Energy SALEs Purchases

% Slovenia 18 Croatia 16 Population: 2,005,692 14 GDP (PPP*): $55.49 billion Population: 4,489,409 12 GDP per capita (PPP*): $29,600 GDP (PPP*): $82.58 billion 10 Area: 20,273 sq km GDP per capita (PPP*): $18,400 8 veniaShare of Slovenian market in EFT portfolio Market: Semi-liquid Area: 56,594 sq km 6 % 2002 – 2011 OTC platforms: TFS, BSP Market: Non-liquid 4 14 2 12 0 10 *purchasing power parity *purchasing power parity 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 8 Turnover 6 4 For the first time, in 2011 EFT managed to acquire a EFT maintained its position as one of the leading trading EFT in Croatia 2002 – 2011 2 substantial portfolio of energy products on the Slovenian partners of Croatia’s Power Utility (HEP) in 2011. TWh 0 market. Market oversupply and an excess of power in The Group recorded a 35% increase in year-on-year 3 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 certain periods allowed the Group the rare opportunity deliveries to HEP. The market was characterised 2.5 Energy to buy electricity in Slovenia. EFT purchased over 1.3TWh by higher than normal prices of electricity, resulting from 2 SALEs Purchases of electricity from various suppliers during the year, the effects of the Fukushima accident and subsequent 1.5 including from HTPP Ljubljana at its annual tender. closure of nuclear plants in Germany. The balance 1 of the Croatian power utility was also negatively 0.5 % 16 The Slovenian electricity market in 2011 was characterised impacted by the poor hydrology. With Croatia’s ascension 0 14 by major organisational changes among the Group’s to the EU and the resulting market deregulation, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12 main clients, the five electricity distribution companies. in the coming period the Group will look to opportunities SOld energy Purchased energy 10 They have unbundled their trading and sales activities in the retail market. 8 into newly formed daughter companies. The unbundling 6 process has been a part of transposition and enforcement 4 of the European Union third energy package. Another 2 important development was the consolidation process 0 between GEN-I and Petrol, following Petrol’s acquisition 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 of a 50% share in GEN-I. The two companies are major Turnover suppliers of electricity to the Slovenian market.

2011 was also a year in which the Slovenian economy EFT in Slovenia 2002 – 2011 TWh struggled to neutralize the knock-on effects of the 2.5 debt crisis. Industry was squeezed between stand-still 2 markets and tight money lending. Vast numbers of 1.5 Slovenian companies are facing insolvency, while the 1 governmental reforms have as yet failed to improve 0.5 market conditions. Cro 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Energy consumption in all segments other than steel and SOld energy Purchased energy aluminium production hovered at around the same level as in 2010. On the other hand, steel smelters' capacities were fully utilized and energy demand increased by around 30%. This resulted in an overall energy demand increase of 6%. −atia 36 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 37

2011 was also the year At 10.73 TWh, 2011 was when the group’s Swiss a record year for export subsidiary, EFT AG, started of Bulgarian energy. to trade in Romania. The average annual export in the previous 6 years Ro−Romania Bulwas 6.5 TWh − Population: 22,215,42 GDP (PPP*): $272 billion GDP per capita (PPP*): $12,200 Area: 238,391 sq km Market: Semi-liquid Bulgaria Power exchanges: OPCOM OTC platforms: SPECTRON Population: 7,024,687 GDP (PPP*): $93.98 billion GDP per capita (PPP*): $12,900 mania*purchasing power parity gariaArea: 110,879 sq km Share of Bulgarian market in EFT portfolio Market: Non-liquid 2002 – 2011

% Share of Romanian market in EFT portfolio 2011 was another good year for EFT Romania. 45

% 2002 – 2011 It was also the year when the Group’s Swiss subsidiary, *purchasing power parity 40 30 EFT AG, started to trade in Romania. Both Group 35 25 companies achieved a higher turnover compared to 30 20 2010 results. EFT increased its offtake in Bulgaria during 2011, as a 25 15 result of the total increase of Bulgarian export potential 20 10 The year was characterised by higher than usual market during the year. At 10.73 TWh, 2011 was a record year 15 5 prices in the country. Prices began to increase at the for exports of Bulgarian energy. The average annual 10 0 start of the year, particularly on the DAM, then soared export in the previous 6 years (from 2005 to 2010) 5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 steeply following the Fukushima incident. This pattern was 6.5 TWh. The Fukushima disaster did not make 0 Energy continued due to poor hydrology later on in the year. an impact on the current Bulgarian energy market, 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SALEs Purchases but questions of reliability and safety were raised with Energy EFT Romania implemented the strategy of diversifying regards to NPP Kozloduy current blocks, as well as SALEs Purchases its purchase portfolio and expanding its client portfolio. planned future NPP blocks (NPP Belene and a possible % The Group counts Lafarge Romania among its new clients. new block at NPP Kozloduy). Unfavourable hydrology 14 % 12 and an increase in domestic consumption caused a 8 10 drastic decrease of export CBC in the final quarter, 7 8 severely impacting the yearly trading positions. 6 6 5 4 4 2 3 0 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1 Turnover 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover EFT in Romania 2002 – 2011 TWh 4 EFT in Bulgaria 2002 – 2011 3.5 TWh 3 6 2.5 5 2 4 1.5 3 1 2 0.5 1 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy SOld energy Purchased energy 38 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 39

EFT maintained its position From an energy trading as one of Kosovo Power perspective, Serbia Utility’s (KEK) leading maintains its importance trading partners. as a key transit hub for Ser−the regional market. Kos Kosovo

Population: 1,804,838 Serbia GDP (PPP*): $5.3 billion GDP per capita (PPP*): $2,500 Population: 7,379,339 Area: 10,887 sq km GDP (PPP*): $79.77 billion Market: Non-liquid GDP per capita (PPP*): $10,800 Area: 88,361 sq km bia Market: Semi-liquid *purchasing power parity −ovo Share of Serbian market in EFT portfolio OTC platforms: TFS, BSP Share of Kosovan market in EFT portfolio

% 2002 – 2011 % 2002 – 2011 40 Like most of the region, Kosovo’s energy market remains 4.5 35 *purchasing power parity stagnant, primarily as a result of a lack of investment. 4 30 EFT maintained its position as one of Kosovo Power 3.5 25 Utility’s (KEK) leading trading partners. The flexibility of 3 20 Serbia’s energy sector remained stagnant in 2011. the Group's portfolio and its ability to adapt to Kosovo’s 2.5 15 Although a new energy law has been passed, in practice constantly changing needs meant that the Group 2 10 there have been no major developments towards covered nearly 60% of all purchases by KEK – be this 1.5 5 deregulating the electricity market and enabling new band energy, modulated products or emergency services. 1 0 investment. The electricity sector is still dominated by the 0.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 monopoly of the state power utility EPS, prices are fully 0 Energy regulated and there is no functioning internal electricity 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SALEs Purchases market. The country continued its slide towards a Energy balance energy deficit and increasing dependence on SALEs Purchases energy imports. The situation was worsened by a period % of extremely unfavourable hydrology and drought in the 45 % 40 second half of 2011. From an energy trading perspective, 6 35 Serbia maintains its importance as a key transit hub for 5 30 the regional market. 4 25 3 20 2 15 1 10 0 5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 Turnover 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover EFT in Kosovo 2002 – 2011 TWh 0.4 EFT in Serbia 2002 – 2011 TWh 0.35 3 0.3 2.5 0.25 2 0.2 1.5 0.15 1 0.1 0.5 0.05 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy SOld energy Purchased energy 40 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 41

Share of Montenegrin market in EFT portfolio

% 2002 – 2011 25 20 15 In 2011 the EFT Group EPCG remains the Group’s 10 5 recorded a year-on-year sole client in Montenegro, 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 increase in both sales as there is still no Energy and purchases in Bosnia functioning electricity SALEs Purchases % and Herzegovina. market in the country. 25 20 15 BOS− 10 5 0 Bosnia and Herzegovina Montenegro 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover Population: 4,613,414 Population: 672,180 GDP (PPP*): $29.77 billion GDP (PPP*): $6.83 billion GDP per capita (PPP*): $6,500 GDP per capita (PPP*): $10,100 EFT in Montenegro 2002 – 2011 TWh Area: 51,197 sq km Area: 13,812 sq km 1.6 Market: Non-liquid Market: Non-liquid 1.4 1.2 NIA & 1.0 *purchasing power parity *purchasing power parity 0.8 0.6 0.4 Share of Bosnia & Herzegovina markets in EFT portfolio In 2011 the EFT Group recorded a year-on-year increase In terms of hydrology, 2011 was a poor year for the 0.2 % 2002 – 2011 in both sales and purchases in Bosnia and Herzegovina. Montenegrin state power utility EPCG. This resulted 0 40 This result reflects the impact of hydrology on the balances in higher imports, organised through monthly tenders. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 35 of Bosnia and Herzegovina’s three power utilities. The first EPCG remains the Group’s sole client in Montenegro, SOld energy Purchased energy 30 half of the year was favourable, resulting in high balance as there is still no functioning electricity market in the 25 exports from the country. The second half of the year country. The regulatory framework and the relevant 20 was characterised by a prolonged drought and in turn by-laws needed to set up a market are still pending, HERZ−15 considerable imports of energy by all three utilities. despite the new energy law being passed in 2010. 10 A positive development though has been the opening 5 of a new transmission line towards Albania. The project 0 was financed by the German development bank KWF 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 and increases the relevance of Montenegro to both the Energy Albanian and Greek electricity markets. SALEs Purchases

% 12 10 EGO−8 Mon− 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover

EFT in Bosnia & Herzegovina 2002 – 2011 TWh 3 VENIA2.5 te− 2 1.5 1 0.5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy negro 42 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 43

During the year the Group EFT Hellas has also delivered 1,929,183MWh achieved 100% higher to its clients in Macedonia, exports compared to with total revenue reaching previous years. Ma−the EUR 105 million mark. Gre

Greece Macedonia Population: 10,737,428 Population: 2,066,718 GDP (PPP*): $343.8 billion GDP (PPP*): $18.83 billion GDP per capita (PPP*): $32,100 GDP per capita (PPP): $9,100 Area: 131,957 sq km cedoArea: −25,713 sq km Market: −Non-liquid Ece Market: Semi-liquid Power exchanges: POOL Share of Macedonian market in EFT portfolio

% 2002 – 2011 16 *purchasing power parity *purchasing power parity 14 12 Share of Greek market in EFT portfolio

10 EFT was the leading energy supplier to the Macedonian EFT Hellas achieved a positive financial result in 2011 % 2002 – 2011 8 market in 2011. During the year the Group delivered by capitalizing on its forecasts and price differences 25 6 1,929,183MWh to its clients in Macedonia, with total between the Greek pool and the markets of south-east 20 4 revenue reaching the EUR 105 million mark. The result Europe. In the same period EFT Hellas achieved 100% 15 nia2 represented a 35% increase in delivered quantities and higher exports of electricity from Greece compared to 10 0 comes as a result of increased consumption of electricity the year before. The company has maintained the same 5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 by the large industrial consumers. Another factor which level of imports of electricity as in previous years, which 0 Energy affected the increase in imports of electric energy by it delivered to the Greek pool and to the PPC. In line 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SALEs Purchases the state power utility ELEM was poor hydrology during with the Group strategy, EFT Hellas wound down its Energy the year. retail activity in 2011 and solely focused on the SALEs Purchases wholesale market. % EFT’s strategy in 2011 was to maintain the Group’s 18 % 16 market share and to purchase as much electricity 25 14 as possible on the domestic market. For this purpose 20 12 the Group commenced a trading relationship with the 15 10 electricity producer TE-TO AD Skopje. Other EFT Group 10 8 clients in Macedonia include Feni, Bucim, Jugohrom, 5 6 Skopski Leguri, Makstil, Arcelor Mittal, Titan, Power 0 4 plant TE-TO, Distribution Company EVN, as well as 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2 the Macedonian Transmission Operator MEPSO Turnover 0 and the State Power Utility ELEM. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Turnover EFT in Greece 2002 – 2011 With new market regulations expected in 2012, EFT will TWh aim to form a balance group for its consumers. This will 3 decrease balancing costs for the Group's clients and 2.5 EFT in Macedonia 2002 – 2011 will in turn make EFT more competitive on the domestic 2 TWh 2.5 market. In accordance with Law on Energy, from March 1.5 2 2011 all companies having more than 50 employees 1 1.5 and more than EUR 10 Million in assets, became eligible 0.5 1 consumers, liberalizing the Macedonian market to the 0 0.5 tune of an additional 1000GWh. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 SOld energy Purchased energy 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 SOld energy Purchased energy 44 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 45

In 2011 EFT Turkey delivered 35,000MWh of energy on EFT was the main supplier the local market. The Group of energy to KESH, imported 108,000MWh covering circa 70% of of energy, and exported the company’s purchases 5,000MWh in the period Al− on the international market. Tur−between June and December 2011, following the beginning of the ENTSO-E parallel operation. Albania

Population: 3,639,453 EFT began the year focused mainly on developing GDP (PPP*): $21.86 billion its industrial client portfolio, but following the change GDP per capita (PPP*): $6,000 in energy legislation, the Group shifted its customer BAniArea: a 28,748 sq km keyportfolio towards shopping malls, restaurants, hotels, Market: Non-liquid EFT Lithuania commenced its trading operations in November and various other retail clients. The Group will however Share of Albanian market in EFT portfolio 2010. In 2011 the company traded successfully on the two move away from the retail market in 2012 and will focus % 2002 – 2011 regional power exchanges, Nordpoolspot and Baltpool. EFT on cross-border trading activities. 16 *purchasing power parity Lithuania has also initiated co-operation with the Belarusian State 14 Enterprise, Belenergo, and successfully imported energy from 12 Belarus, which was subsequently sold in Lithuania and Estonia 10 Extremely dry periods and poor hydrology in 2011 on the day-ahead markets. Turkey 8 provided a very different market backdrop in Albania to 6 that seen in 2010. Albania is extremely dependent on Due to the isolation of the Baltic region's power industry in relation Population: 72,561,312 4 hydrology, more than 90% of electricity it produces to that of the CEE region, the market developments triggered by GDP (PPP*): $880.061 billion 2 comes from hydro units. In 2010 Albania had favourable the Fukushima accident have not had a significant impact on GDP per capita (PPP*): $12,476 0 hydrology, and as a result the county was a net electricity market prices in Estonia and Lithuania. In fact, in comparison to the Area: 783,562 sq km 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 exporter. In 2011 however, prolonged dry periods meant previous year, 2011 was characterized by lower prices, mostly due Market: Semi-liquid Energy that Albania became a net energy importer. to milder winter and summer weather conditions, and extremely Power exchanges: PMUM SALEs Purchases good hydrology in the second half of the year in the Nordic countries. EFT has two important clients in Albania – the distribution company CEZ-Shperndarje and the state EFT’s strategy in the Baltic region in 2011 was to enhance trading % 16 power utility KESH. In 2011 CEZ-Shperndarje imported on the two power exchanges, establish necessary contacts with 14 electricity from 11 different companies. EFT covered local producers and traders, and initiate bilateral trades with 12 55% of all deliveries. Similarly, EFT was the main counterparties. In 2011, EFT Lithuania’s strategy was to increase 10 supplier of energy to KESH, covering circa 70% of its presence in terms of MWh turnover on the regional wholesale 8 the company’s purchases on the international market. electricity market. In 2011 EFT Lithuania 6 4 The changes in energy law in 2011 have brought EFT’s main objectives in the Baltics are to increase bilateral trades traded successfully 2 numerous changes to the market, with the qualified in Lithuania and Estonia, to establish and increase co-operation with 0 consumer market segment likely to become the main local producers and to enter the Latvian market in the coming period. on the two regional 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 focus for market participants in the near future. Turnover power exchanges.

EFT in Albania 2002 – 2011

TWh Lith− 2.5 Lithuania 2 1.5 Population: 3,244,000 1 GDP (PPP*): $35.152 billion 0.5 GDP per capita (PPP*): $10,605 0 Area: 65,200 sq km 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Market: Semi-liquid SOld energy Purchased energy uania*purchasing power parity Power exchanges: BALTPOOL, NORDPOOL 46 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 47 EFT

INVEST−EFT’s strategic goal is to become the first privately owned, modern power generation company in To date the EFT Group is the leading foreign investor in the energy sector of Bosnia south-east Europe. To this and Herzegovina. All of the Group's investment projects are developed using the best end, the Group is pursuing available technology (BAT) and fully in line with the relevant European Union directives MENTSan ambitious plan of on the protection of the environment. developing its own asset So far, EFT has successfully realised the building of the Fatniˇcko Polje – Bile ´ca base, which will form the accumulation tunnel and since 2005 has successfully been operating the Stanari mine basis of its trading activities in Bosnia and Herzegovina. The Group is currently developing two major investment in the future. projects in Bosnia and Herzegovina – the Stanari thermal power plant and the Ulog hydro power plant project on the river Neretva.

Stanari Mine p.48 EFT always aims to fully employ locally available workforce, expertise and technology, Stanari Thermal Power Plant p.50 thereby creating the best effects for the local economy. The Group’s ability to utilise the Ulog Hydro Power Plant p.52 local human and technological resources to achieve internationally recognised standards Fatniˇcko Polje – Bile ´ca Accumulation Tunnel p.54 has already yielded impressive results. 48 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 49

Since taking over the mine in May 2005, the EFT Group has invested over EUR 45 million in Million Tons its rehabilitation and 108 modernization. 9100LHV kj/kg Stanari Mine

The Stanari mine is located approximately 70km to In November 2006, as the successful bidder in the the east of Banja Luka in Republika Srpska, Bosnia public international tender, EFT (Holdings) ApS bought and Herzegovina. Total proven lignite coal reserves the remaining 28% of shares and became the 100% % Moisture at the Stanari basin are 108 million tons. The coal quality owner of the Stanari mine. is measured at LHV 9100 kJ/kg, moisture at 49%, with ash at 7.5% and sulphur at 0.13%. Since taking over the mine in May 2005, the EFT 49 Group has invested over EUR 45 million in its Excavation at the mine started in 1948 and the destiny rehabilitation and modernization. The number of of the surrounding area has been closely linked to that employees has risen from 250 (2005) to 460 (2011). of the mine ever since. The Stanari mine achieved annual The Stanari Mine will increase its annual production coal sales of 600,000 tons in 1989. During the 1990s, to 2.5 million tons by 2015, of which 2.3 million will production figures and overall conditions at the mine be supplied to TPP Stanari. deteriorated sharply, due to lack of investment and hostilities in Bosnia and Herzegovina. The Company has achieved an international standard of operation, and has been awarded ISO 9001 % Ash In 2004, the Government of Republika Srpska (Quality Management System), ISO 14001 commissioned an international public tender to find a (Environmental Management System) and OHSAS strategic partner for rehabilitation and development of 18001 (Safety Management System) certification. 7. 5 the Stanari mine. EFT Holdings submitted the strongest In 2011, coal sales reached 927,000 tons and bid and became the majority shareholder of the Stanari nearly 8 million m3 of overburden was excavated. Mine Company with 72% of shares. The company was awarded a 30 year concession for exploitation of the To learn more about the Stanari mine and TPP Stanari mine, which is extendable by an additional 15 years. project, please visit www.eft-stanari.net 0 .13% Sulphur 50 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 51

In May 2010, EFT and Dongfang Electric Corporation of China signed an EPC (Engineering, Procurement and Construction) Environmental aspect contract to build the 300MW TPP Stanari will fully abide by EU emission directives. The plant will set new standards in south-east Europe thermal power plant unit in the in relation to maximising energy efficiency and vicinity of the Stanari mine. minimizing harmful impacts on the environment. Dongfang Electric Corporation With over 30,000MW of annual production capacity Dongfang Electric Corporation (DEC) is a leading Chinese company specialized in power equipment manufacturing and power projects across the globe. DEC was founded back in 1958. Today the company TPP Stanari employs 20,000 employees in 11 subsidiaries and produces equipment for thermal, nuclear, wind, gas and hydro power plants. Key parameters of the TPP Stanari EPC contract The EPC contract for TPP Stanari is the first DEC – Single unit design contract for a coal-fired power plant on European soil. The company has designed, constructed and installed – Gross/net power capacity 300/262.5 MW units in numerous countries, including India, Vietnam, Indonesia, Pakistan, Saudi Arabia, Iran, Iraq, Turkey, – Planned annual energy production 2,000,000 MWh Belarus, Brazil, Chile and of course China.

– Gross unit efficiency 38.5% DEC’s CFB technology 300MW units have a proven track record. To date, DEC has successfully designed, – Circulating fluidised bed boiler with subcritical steam parameters constructed and installed more than 250 such units. These use very advanced green coal technology which – Dry cooling system with air-cooled condenser adheres with the strictest EU environmental standards.

– EPC time schedule: 45 months from NTP To learn more about the TPP Stanari project, please visit www.eft-stanari.net

Financing of the TPP Stanari project

The overall Stanari project investment cost is estimated at EUR 550 million. Financing of the project with be provided as follows:

– China Development Bank loan – EUR 350 million (85% of EPC + IDC + political insurance) with 4 year grace period and 10 year repayment period.

– Loans from local/regional commercial banks – to finance coal supply system from mine to TPP, 400/110 kV substation, discontinuous mining machinery.

– EFT Group equity 52 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 53

Project development The concession The following project development activities have been completed: includes a 3.5 year – Preliminary Feasibility Study with Conceptual Design In November 2009, the Government of Republika Srpska Ulog HPPawarded the concession for the construction and operation preparatory, and a – Preliminary EIA Study of the Ulog HPP on the river Neretva to the EFT Group. The concession includes a 3.5 year preparatory, and 30 year construction – HPP Ulog Zone Regulation Plan adopted by the Municipality a 30 year construction and operation period. The concession of Kalinovik in February 2010 is extendable by an additional period of 15 years. and operation period. – Report on Zone Planning Conditions of the HPP Ulog

– Report on protection measures of cultural and natural heritage in the HPP Ulog zone

– Feasibility Study with Basic Design

– Geological Study

– Seismological Study

– Ichthyology Study

– Environmental Impact Assessment Study

– Connection to the 110kV Transmission Network Study

– Initial environmental monitoring of water quality, air quality and noise pollution Main characteristics – Land expropriation report of the Ulog HPP – Main design of access roads – Tender documents

Total dam height (m) 53 Project completion schedule Headrace tunnel - length/diameter (m) 2,500/4.0 The HPP Ulog Project time schedule is divided in following phases: Penstock- length/diameter (m) 163/2x2.1 Phase 1 – Project Development Installed flow (m3) 35 +0.52 SHPP – Technical and environmental documentation, exploration works, construction of access roads. Completion of this phase expected Total head (m) 120 in the second half of 2012

Net head (m) 109 Phase 2 – Tender procedure for the construction of the HPP Ulog Installed power capacity (MW) 35 – Contract finalization planned by the end of 2012 Average annual energy production (MWh) 85,000 Phase 3 – Civil works, including detailed design, equipment Type and number of turbines 2 Francis manufacturing, commissioning, performance testing and +1 SHPP trial run

Water storage volume (million m3) 6.5 – Completion expected by 2016

Phase 4 – Commissioning

– Completion expected by 2016 54 EFT Group Annual Review 2011/2012 EFT Group Annual Review 2011/2012 55

In August 2007, the Fatniˇcko Polje – Bile´ca accumulation tunnel was officially put into use, signalling successful completion of the biggest civil engineering project in Herzegovina.

Fatnicˇko Polje Bilec´a Accumulation Tunnel

The Fatni ˇcko Polje – Bile´ca accumulation tunnel In August 2007, the Fatniˇcko Polje – Bile ´ca accumulation is an integral part of the ‘Upper Horizons’ hydro – tunnel was officially put into use, signalling successful system in eastern Herzegovina. The basic concept completion of the biggest civil engineering project in of the system is to accumulate waters in the fields of Herzegovina. The tunnel now produces some 150GWh eastern Herzegovina during rainy periods and later move of energy per year by supplying additional flood waters to it through a system of tunnels, thereby producing energy existing hydroelectric power plants in eastern Herzegovina. and creating arable land. The project directly employed some 400 people during Construction of the Upper Horizons hydro-system construction, and several hundred more indirectly. began in 1969 but was not completed due to construction It is environmentally sound and sustainable, and has issues, followed by conflicts in the region. Among the no adverse effects on the surroundings. unfinished parts of the system was the Fatniˇcko Polje - Bile ´ca accumulation tunnel. Financing through energy offtake Because of the inability of the local power utility In 2001 the authorities in Bosnia and Herzegovina called to directly finance the project, the completion of the an international tender for the completion of the tunnel. tunnel was paid through offtake of the energy produced EFT’s bid, in consortium with Bosnia's Hidrogradnja, was from additional flood waters supplied by the tunnel, by far the strongest. The company committed to invest over a 7-year period. Ownership of the tunnel EUR 26 million in digging of the tunnel, completion of and accompanying infrastructure remained with its concrete lining and installation of control mechanisms Republika Srpska power utility EPRS. Upon expiry and infrastructure. of the 7-year period, in November 2008, the surplus energy produced by the tunnel has become a part of EPRS' portfolio. Süd Unna Büren Schwarze Bārwalde Zhitomir Eindhoven Würgassen Wolkramshausen Schkopau Pumpe Pasikurowice Bilotserkivska Dnipropetrovska Urfort Czarna Khmelnitskaya AES Polyana Twistetal Gōttingen Lippendorf Taucha Trębaczew Ostrowiec Kremenchug Dniprodzergynska Strumen Boxberg Kielce Kielce Piaski Ohligs Sandershausen Pulgar Dobrotvirska WDGMK Mol Witten Nehden Schmōlln Klecina Großdalzig Mikulowa Ratkowice St. Wola Shepetivka Promet Van Neurath Eula Biskupice Aniolów Arpe Bergshausen DDZ Eyck Siersdorf Waldeck Niederwartha Huta Częstochowa Joachimów Radziviliv Kozyatyn Opladen Erfurt-Nord Vieselbach Nauerbau Turow Świebodzice Wroclaw Chmielów Langerlo Cieplice Dobrzeń Wryosowa Graetheide Dniprovska Sechtem Niederwiesa Dresden-Süd Opole Seraing Borken Eisenach Boguszów Groszowice Polaniec Bressoux Dillenburg Großschwabhausen Lagisza Lośnice Lviv 2 UKRAINA Zaporizka Siegburg Mecklar Röhrsdorf Awirs Lixhe Weida Bezděčin Ząbkowice Rokitnica Lviv Pivd Taine Oberzier Crossen Tucznawa Javoriv Angleur Chotejovice Pořiči Kopanina Rzeszów Lviv Rudna Ließem Hohenwarte Zwönitz Halemba 1 Koksochemia Ternopil Vinnitsa 750 Pershotravneva Dnipro HPP Jupille Dauersberg Aßlar Gießen/Nord Babylon K. Zdroj Blachownia 2 Zakhidna Ukrainka Markersbach Chomutov Lubocza Romsèe Neuwied Dipperz Remptendorf Tušimice Pocerady Mělnik Laziska 9 Kopanina Klikowa Paffendorf Azoty Boguchwala Khmelnitski Vinnitsa 330 Kirova Brume Altenfeld Kędzierzyn Siersza Rosdil Gramme Limburg Náchod Dlouhé Stráně 4 Zakhidnoukrainska Rimière Weißenthurm Prunerov Vyškov Neznášov 3 Skawina Wanda Nikopol Achêne Dörnigheim Wielopole 10 11 Bar Ladyzhinska TPP Pivdennoukrainska NPP Coo Dahlem Ems Kerben Goldisthal Mechlenreuth Vřesová Rybnik 4 Tarnow Marcourt Koblenz Tynec 5 6 Pivdenna F.-West Redwitz Vitkov Hradec Malesice Quarzit Houffalize Nieder- Staudinger Schweinfurt 8 Bujaków Krosno-Iskrzynia Frankfurt Tisová Hradec Východ Řeporyje Opočinek H. Životice Dětmarovice POLSKA Drogobych Stryi Villeroux stedem Großkrotzenburg Grafenrheinfeld Chvaletice Pogwizdow Bursthtyn TPP Ferosplavna Wengerohr Kriftel Západ Chodov Albrechtice Darkov Marxheim Eltmann Mnisztwo Porąbka Żar Nemiya Kryvorizka TPP Vianden Kelsterbach Wűrgau Č. Střed Krasikov Liskovec Gomaya Heinsch Bauler CESKÁ Ustron Boryslav Dnistrovska HPSPP Pobuzhzya Mainz Trinec Kalushska CHPP Dnistrovska HPP Aubange LUX.Flebour Niederhausen Urberach Oberhaid Chrast Ropice Kalush Roost Nošovice Tashlyk HPSPP Latour Quint Saint-Mard Biblis REPUBLIKA K. Podilsk Heisdorf Trennfeld Etzenricht K.N.Mesto Shahta Poroghi Trier Bischofsheim Kriegenbrunn Orlik GPP-1 Ivano Frankivsk Uchtelfangen Mirovka Mt.-St.- Bűrstadt Happurg Milin Čebin Široká Saarwellingen Bexbach Weinheim Reisach Preštice Prosenice Čadca Varin SLOVENSKO Martin Höpfingen Liptovská Mara Lemešany Nelypivtsy Otaci Kakhovska GPP Catlenom BASF Beerfelden Tabor Sokolnice Střelná Vol'a Brich GKM Soroca Landres Ludersheim Schwandorf Temelin Otrokovice Larga Ocniţa Kotovsk Moulaine Neurott Obringheim Raitersaich Ensdorf HütteWeiher Čierny Vah Spišská Velké Volovets Chernivtsy Primorska-750 Kakhovska HPP Montois Philippsburg Kupferzell Dalešice Nova Ves Kapušany Bogorodchanyi Kočin Považská Râbnaţi Kr. Okny Trihaty La Maxe Bystrica USSKVojany Heilbronn Slavětice Hodonin Sućany Moldava Bălţi CET Nord Mikolaiv Rele Vigy Daxlanden Großgartach Mukachevo Costești Saargemūnd DEUTSCHLAND Dukovany Medzibrod Kakhovska-750 Vantières St. Neckarwestheim Stånca Petite- Dettwiller Hoheneck Dasny Tvrdonice Holič Bošáca Novaky Kisvárda Khust Berzan Blenod Avold Pulver- Rosselle Iffezheim Mühlhauses Regensburg Senica Bystričany MOLDOVA Vasilevk Titan Bezaumont dingen Greifenstein Suceava Komintern Suisse Sarrebourg Winnenden Ingolstadt Sittling Jaslovské Rimavska Sobota DGES Rozdilna Kherson Void Metz Kuppen- Goldshöfe Irsching Isar Pleinting Lipno H. Ždaňa Sajóivánka Soda Endersbach Bohunice Mochovce Strașeni heim Birkenfeld Altenwörth Korneuburg Donaustadt Felsözsolca Tisza IITiszalōk CET-1 Centrolit Custines Laneuveville Rotensohl Meitingen Ungheni Gambsheim Grundrem- Zohor CET-2 Neuves-Maisons Bünzwangen Altheim Jochenstein Chișinău Marlenheim Wendlingen mingen Vetiș Iași Chervonoperekopska Bűhl Ober- Zolling Passau Aschach Abwinden-Asten Theiß Stupava Križovany Roșiori Baia Mare jettingen Matzinger Schärding Ottensheim Dūrnrohr Levice Sajószöged Ţuţora Usatovo Houdreville Etival Weier Oberbachern Ering Wallsee Melk Bisamberg Ostrivska Niedestotzingen Egglfing Ybbs-P. Šala Vincey Lechhausen Sarasdorf Veliký Ďúr Roman Nord HBK Laichingen H.Linz Freudenau P. Biskupice Cioara N. Odeska Anould Menzing Ottenhofen Pirach Simmering Mátra Detk Jeuxey Engstlatt Wien CERS Moldova Zakhidnokrymska Vittel Lac Noir Oberottmars- Töging Etzersdorf Freudenau ROMÂNIA Husi Eichstetten Trossingen Vöhringen Föhring St. Peter Südost Göd Dumbrava Herbertingen hausen Braunau Gabčikovo Maryanivka Rolampont St.Nabord Villingen Hausruck Sattledt Ybbsfeld Neusiedl Stejaru Logelbach Oberbrunn Riedersbach Ernsthofen Pottenbrunn Belyaevka Vogelgrun Marienberg Debrecen Sălaj Vaduri Munteni Starokazachye Guebwiller Salzach Timelkam Gönyü Zugló Bacău Sud Elevatorna Memmingen Großramming Tihău Racova La Thur Muhlbach Fessenheim Leitzachwerk Ternitz Albertfalva Gheorghieni Lilieci Hirsingue Gyōr Lutterbach Wehr Klaus Pyhrn Oroszlány Ócsa Donuzlav Argiesans Sierentz Grűnkraut Walchensee- Gădălin Pusy Kűhmoos Tiengen Obermoo- Leupolz werk ÖSTERREICH Dunameti Oradea Munteni Oberaudolf Weißenbach Cluj Floresti Simferopolska CHPP Etupes Eglisau weiler Hieflau Martonvásár Szolnok Borzești Artsyz Asphard Krűn Achensee Kirchbichl Albertirsa Gilau Cluj Est Pernegg Ungheni Siret Mambelin Langenegg Strass Remeţi Cåmpia Gutinaș Breite Tauern Palente Westtirol Zell/Ziller Sőlk Hessenberg Szombathely Turzii Fåntånele Werben Thaur Südburhenland Litér Mărişelu Somesul Vulcănești Bolgrad Meiningen Schwarzach Zeltweg Cald Champvans Bassecourt Imst Kaprun Dunaújváros Békéscsaba Tarnita Walgau Gerlos Iernut Filești Silz Mayrhofen -Hauptstufe Oststeiermarkt Etulija Bickingen Bürs -Oberstufe Lünersee Kühtai Mellach Reni Kosa Siebnen Rodund Innerfragrant Malta Héviz MűhlebergGiswil Roßhag -Oberstufe Werndorf MAGYARORSZÁG Nădab Smårdan Pontarlier Kops I+II Focșani Vest Budzhak Kaunertal Häusling Außerfragrant -Hauptstufe Kainachtal Alba Iulia Mathod Pradella Koralpe M. Otok Paks Arpastu Galaţi Champagnole Vermunt Amlach Schwabeck St. Andrā Lenti Brasov SCHWEIZ Reißeck Vuhred Ozbalt Sándorfalva Arad Pymont Lienz Oberrsielach Sibiu Romanel Ova Spin Zlatoličje Mintia Dârste Lacu Tulcea Vaux Sils Rosegg Ferlach Szeged Şugag Scoreiu Nehoiaș Barboși Isaccea Handeck Lana Formin Sărat Banlieue-Ouest Vuzenica Fala Varaždin Toponár Calea Aradului Totesti Gâlceag Cornetu Buzău aval Brăila Dravograd Maribor Cardano Čakovec Pestiş Cirnesti St. Triphon Mőrel Premadio Edling Subotica Vidraru Stâlpu Somplago Moste Šoštanj Jimbolia Săcălaz Hăşdat Orlea Lotru Chamoson Lavorno Edolo Mavčiče Nedeljanec C.E.R.N. Soazza Grosio Floriano Okroglo Podlog Dubrava Pécs Baru Mare Arefu GabiPonte Doblar Sombor Brădişor Bois-Tollot Mese Robbia Buia Cirkovce B. Manastir Timișoara Clăbucet Teleajen Siklós Râul Mare Turnu Oiesti Izernore Cornier Avce Medvode Bostanj Paroşeni Albesi Doicești G.Ialomitei Verbois Verampio Lanzada S. Fiorano Laviz Soverzene Udine Trbovlje Apatin Iaz Govora Riddes Serra Gondo Fadalto Plave Klece Blanca Brestanica Kikinda Noaptes Gorduno Sondrio Pordenone Solkan Vrhovo Råureni Brazi Vest Vallorcine Manno TOL Chavanod Krško Zagreb Žerjavinec Motru Stupărei Pallanzeno Musignano Mandrisio Conegliano Tårgu Jiu Targoviste Passy Cordignano D.Miholjac Ruieni Brazi Serriéres Ugine Valpelline Roncovalgrande Magadino Bulciago P. Camuno Redipuglia SLOVENIJA Srbobran Zrenjanin Reșiţa Tismana Bradu Bugey Beričevo Mraclin Cernavoda Creys Mantagny- La Bathie Cagno Gorlago Planais Tumbri Ionesti Constanta Nord Les-Lanches Cislago Verderio Torbole Bussolengo Vellai Oderzo Salgareda Divača HRVATSKA Ernestinovo Urechești Nave Novi Sad Zavideni Piteşti Sud Fundeni La Marnise Mercallo Sandrigo Torviscosa Padriciano Rovinari Grozavesti Albertville Malgovert Ospiate BovisioCassano Trav. I.Bistrica Ðakovo Pelicanu Medgidia Turbigo Monfalcone Medurić Sărdănești Tånţăreni Dragasani Bucureşti Palas Randens Baggio Lonato Scorzi Koper Nijemci Pančevo Mostistea Sud Aoste Biella CiseranoChiari Pehlin Sisak Slavonski Brod 2 Mitrovica Drobeta Sud Les Brevieres Sandri Venezia N. Šid Drmno Porţile de Fier 1 Grande-lle Brugherio Monteviale Turceni Domneşti La Coche Magenta Tavazzano Flero Županja Beograd 3 Bgd 20 Slatina Le Cheylas Fusina Buje Matulji Melina Gura Văii Crolles Villarodin Rondissone Dugale Malcontenta Tr. Craiova Nord Progresu Longefan Mincio Gojak Smederevo Bucureşti Praz Leyni Trino N. Lacchiarella Camin Bosanski Brod Mladost Sip Severin Froges Ferrera Nogarole Mantova Plomin Drăgăneşti Olt Vest Giurgiu Lancey Villarodin Chivasso La CasellaCremona Ostiglia Rijeka Orašje Isalnita Vaujany Erbognone Pieve Marcaria Gradačac Bijeljina Beograd 8 Porţile de Fier 2 Gradişte Ghizdaru Venaus Albignola Saussaz Trino Caorso Brinje Prijedor Ugljevik TENT B Ðerdap Ostrovu Frunzaru S. Bissorte Piacenza Adria Banja Luka Obrenovac Mare St.Guillerme Vinodol Bihać Lesnica TENT A Rusăneşti Voghera S. Rocco Porto Tolle Senj Kusjak Cetate Obraztsow Chiflik Casanova Castelnuovo Šabac Morava Cordeau Sermide Ferrara Izbiceni Dobrudzha Colorno K. Vakuf Zvornik Kolubara Bor Tr. Măgurele Varna Le Sautet Piossasco Focomorto BOSNA I Valjevo Vignole Vidin Tuzla Zaječar Grisolles Bistagno Calafat Parma V. S. Damaso Kragujevac Morigallo HERCEGOVINA Kula Kozloduy Porto Corsini Pleven Curbans Serre-Poncon Magliano Savona Rubiera Velebit Zenica Madara Varna Gračac B.Bašta Čačak Martignone Colunga Enipower B. Grahovo Jajce Kakanj Požega Sisteron Erzelli Genova Ravenna Jagodina B.B. Boychinovtsi S. Colombano Bargi Tsarevets Gorna Oryakhovitsa Salignac Vado Ligure Sarajevo 10 Kruševac Forli Knin Entrancque Višegrad Vardište Kraljevo St. Auban Oraziana Sarajevo 20 Bistrica Niš La Spezia SAN MARINO Peruća Rama Kremikovtsi Mizia Burgas St. Tulle Oraison FRANCE San Marino Balkan Karnobat Le Broc-Carros Campochiesa Avenza Poggio B. Blato Tvarditsa Fano Bilice Konjsko Jablanica Potpec Sofia Baptin Manosque Lingostiere Trinite-Victor Camporosso Marginone Calenzano Grabovica SRBIJA Tore-Supra Zamrsten Metalurgichna St.Croix Menton Casellina Orlovac Salakovac Sofia-Zapad BULGARIA Stolnik Maritsa 2 Boutre Quinson Tavarnuzze Pirot Stara Zagora MONACO Zakučac Mostar Zlatitsa La Palun Biancon Livorno Pljevlja Vrla Tour-Lascaris Acciaiolo S. Barbara Breznik Chudomir Ereğli Vins Mougins Grude Leskovac Kazichene Enco Arezzo Candia Kraljevac Piva Maritsa 3 Trans Fréjus Digue-des-Francais P.D. Speranza Gacko Podujevo Sestrimo Maritsa 1 Cagnes sur Mer Imotski Čapljina Ribarevina Ch. Mogila Sofia-Yug Neoules Nikšić Aleko Plan de Grasse Rosen Opuzen Maritsa Le Coudon Bileća Mojkovac Stomana Vetren Le Garde Larderello CRNA Belmeken Neum Kosovo B Bobov dol L`Escaillon Vranje Trebinje Uzundzhovo Hamitabat Pietraffita Kosovo A Chaira Plovdiv Babaeski Alibey Osmanca Suvereto Ston GORA Blagoevgrad Paşaköy Rosara Glogovac Skakavica Peshtera Habibler Priština Orfey Piombino Komolac Podgorica K. Palanka Adapazari Akyazi H.Novi Fierze Dubrovnik Koman Skopje 5 Ikitelli DG Prizren Devin Űmtaniye Villavalle Perućica Koplik Skopje 4 S. Giacomo Teramo Tepeören Bastia Skopje 1 Teshel Izmit Seka Akyazi Villanova Štip Sant Lucciana Aslanbey Montalto Providenza Doğal Gaz Montorio Vau i Negotino Dejes Petrich Platanovrisi Aurelia S. Lucia Dissi N. Santa Thissavros Popoli Ulza Vrutok Dubrovo Sušica Cayirhan Torvaldaliga Nord ITALIA Termoli Energia Burrel Corse Komotini Bursa Torvaldaliga Sud Filippi Yenice Roma/N. Shkopet Civitavecchia Larino MAKEDONIJA B. Sanayi Tirana 2 Tirana 1 Içdaș Saricakay Gokçekaya Roma/O. Roma/E. S. Paolo Valmontone Durres Bitola Roma/S. 1 2 Ceprano Capriati Foggia Edessos Elbasan Lagadas Can Bonifacio Presenzano Florina Enthes Latina Bari Thessaloniki Fier Amyndeo Ag. Dimitrios Candela Balikesir Garigliano Andria Agras S. Teresa Maddaloni Benevento SHQIPERIA Ptolemaida Assomata S. Maria S. Sofia Seyitömer Brindisi /N. Zemblak Tutes Şalt Frattamaggiore Brindisi P. Sfikia TÜRKIYE Fiume Santo Patria Kardia Polyphyto Limnos Giugliano Matera Montecorvino Vlore Levante Torre Brindisi /S. Soma Condrongianus S. Valentino Taranto Afyon Salerno Legend Pisticci Sardegna 1 Piges Plants and stations: Lines: Galatina Bistrice Lesvos Ottana Larissa Izmir DGKC Enichem Laino 2 HELLAS 750kV transmission line Trikala Rotonda Messochora 500kV transmission line Pournari Aliağa Taloro Hydro Power Plant Kerkyra Jeotermal Oristano Busachi Mourtos 380-400kV transmission line N. Plastiras Wind Farm Altomonte Rossano Louros Arachthos 300-330kV transmission line Işiklar Uzundere Thermal Power Plant Lamia Lodo Res 220kV transmission line Denizli Mucone Kremasta Chios Villasor Substation 132-150kV transmission line Aliveri Germencik Kastraki Ghiona Larymna Selarguis DC line Acheloos Substation + power plant Scandale Distomo Interconnection for voltage<220kV Stratos Portoscuso Heron Varsak Converter station Acharnes Sulcis Rumianca Ag. Stefanos One circuit (diff. colours) Feroleto Aluuminio Sarlux Under construction Yenikoy Under construction (diff. colours) Koumoundourou Pallini Yatağan Patra Double circuit (diff. colours) Ag. Georgios Argyroupoli Double circuit with 1 circuit mounted PeloponnisosKorinthos Lavrio Kemerkoy Sant >=3 circuit (diff. colours) Rizzioni Ladonas S. F. Mela Kos Bellolampo Corriolo Megalopoli Termini Sorgente Particino Rodos Trapani Caracoli Ciminna Soroni Rodos Scale 1 : 2 500 000 Partanna Sicilia Paterno Misterbianco

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