Nuclear Power Plant Belene

Energy News in Southeast Europe two issues per month № 2010-XI/2 •02.12.2010

About: In this issue:

Main focus of Balkan Energy NEWS is energy related news from coun- November (2) 2010 edition of Balkan Energy NEWS, tries of South East Europe. Countries involved are: Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Greece, FYR Macedonia, Montene- with 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 16.11.-30.11.2010. 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? »» Nuclear Power Plant Belene - More than six years in consulting business for SEE Energy Sector § § § - More than five years leading info provider for energy business News headlines in SEE.

For more information contact us on [email protected] Region »» EU demands third party access in South stream project Disclaimer: Albania »» Request for electricity price increase All rights reserved by Balkan Energy Solutions Team. No part of this publication may be reproduced, redistributed, or in any other way copied as »» Sale of four HPPs announced a whole or partially without written permission of Balkan Energy Solu- »» TPP Vlore not to produce electricity for at least 12 months tions Team. This includes internal distribution.

Balkan Energy Solutions Team does not warranty the accuracy of the Bosnia and Herzegovina: published data contained in this document, although Balkan Energy »» EP HZHB signed contract for consultancy services for wind Solutions Team did great efforts to collect the data from the respectable farm Mesihovina and accurate sources. »» BH Gas to provide natural gas for future TPP Zenica Contact: »» EP HZHB met annual production target Balkan Energy News office »» EP HZHB and Aluminum factory signed annual supply www.NEWS.BalkanEnergy.com contract for 2011 [email protected] »» Brod refinery processed 2 million tons of oil in two-year Subscriptions & info: period [email protected] »» HPP Visegrad to post record production in 2010 www.news.balkanenergy.com/request.php +381 64 820 90 31 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue No: 2007-III/1

Bulgaria: »» Investments in energy sector to reach 30 billion euros until »» Russian Inter RAO wants to takeover Enel’s assets 2020 »» The first photovoltaic park put in service »» Hidroelectrica yet to obtain environmental permit for HPP Islaz »» Government to preserve TPP Brikel in operation during heating season »» Hidroenergetica and Electra might be operational by year-end »» Government considers restructuring of BEH; NPP Kozloduy and TPP Maritsa Iztok 2 might rejoin with NEK Serbia: »» Intergovernmental agreement for natural gas pipeline »» NIS met annual production target Giurgiu – Ruse signed »» Consumption of LPG at 360,000 tons per year »» Bulgaria and Russia unexpectedly signed Memorandum of understanding for construction of NPP Belene, Rosatom to »» Gazpromexport: Zajecar to be entering point of South become shareholder in the project stream pipeline »» BEH and IGI Poseidon signed the agreement for new »» Srbijagas completed preliminary feasibility study on South natural gas pipeline stream pipeline »» NIS completed reconstruction of FCC facility in Pancevo refinery Croatia: »» EPS: electricity prices must rise by 60 % until 2013 »» INA opened bids for import of natural gas in 2011 »» Sources: INA to continue to operate natural gas supply § § § and trade division »» HEP to publish tender for construction of HPP Ombla in Tenders: (Electricity, Nuclear, Oil and gas, Wind) December »» Invitation for capacity reservation on new interconnection natural gas pipeline toward Hungary

Greece »» PPC Q3 profit fell 30% »» TAP pipeline study underway

Macedonia »» ELEM: revitalization of 6 HPPS and construction of wind park »» Macedonia invited to participate in Belene project »» Recod production of HPP Globocica »» Fifth package of SHPP locations

Montenegro: »» MOL interested in building the oil terminal »» CGES posted 4.7 million euros of profit in January- September »» EPCG posted 21.3 million euros of profit in January- September »» Government and Italian Terna signed the agreement for construction of submarine DC cable »» 400kV interconnection line toward Albania in trial operation »» EPCG signed 35 million euros loan contract with EBRD »» Government approved concession documentation for HPPs on Moraca River Romania: »» Gazprom and Transgaz completed feasibility study for South stream project »» Transelectrica published business plans for 2011-2013 »» Transgaz to upgrade natural gas pipeline toward Bulgaria 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: From 2005 till May 2014, we have published over 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.

Subscribers of Balkan Energy NEWS publication are entitled to additional discounts on Country Reports orders.

• 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-XI/2 - issue covers period 16.11.2010-30.11.2010Issue 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 16.11.2010 1718 1602 1574 1542 1540 1660 1900 2041 2119 2058 2005 2026 2016 1997 1981 1987 2092 2367 2354 2329 2201 2120 2040 1821 17.11.2010 1636 1537 1536 1529 1540 1590 1731 1948 2147 2179 2193 2180 2085 2073 2065 2083 2164 2409 2360 2312 2157 2046 1877 1757 18.11.2010 1603 1546 1526 1526 1519 1580 1803 1949 2076 2098 2069 2080 2035 2083 2098 2098 2179 2348 2380 2280 2183 1971 1922 1760 19.11.2010 1588 1524 1461 1456 1466 1520 1775 1985 2079 2120 2099 2124 2091 2099 2108 2084 2316 2516 2479 2433 2326 2239 1936 1788 20.11.2010 1658 1597 1575 1580 1582 1604 1747 1900 2037 2089 2091 2090 2047 2070 2081 2020 2277 2480 2434 2414 2297 2217 2100 1856 21.11.2010 1740 1647 1612 1603 1600 1623 1694 1792 1906 2001 2035 2106 2100 2079 2039 2048 2160 2438 2413 2380 2339 2260 2034 1835 22.11.2010 1696 1613 1558 1559 1562 1556 1807 2008 2195 2240 2248 2298 2264 2292 2294 2272 2405 2540 2522 2498 2310 2000 2014 1992 23.11.2010 1834 1610 1627 1632 1677 1764 1956 2140 2270 2359 2342 2333 2397 2395 2407 2422 2521 2588 2535 2473 2492 2389 2206 1973 24.11.2010 1850 1746 1736 1752 1742 1792 2018 2209 2422 2453 2475 2492 2481 2497 2489 2437 2560 2560 2580 2612 2600 2371 2213 2046 25.11.2010 1933 1813 1801 1807 1800 1821 1958 2149 2355 2405 2400 2396 2371 2356 2352 2362 2457 2579 2584 2604 2509 2431 2311 2049 26.11.2010 1930 1838 1826 1816 1825 1838 2052 2240 2433 2472 2493 2494 2465 2506 2527 2568 2665 2721 2706 2702 2539 2374 2278 2027 27.11.2010 1885 1807 1774 1773 1776 1778 1957 2196 2397 2438 2427 2447 2414 2431 2423 2413 2535 2707 2704 2674 2555 2425 2336 2159 28.11.2010 1931 1808 1752 1742 1737 1751 1857 2049 2188 2379 2490 2529 2548 2560 2486 2499 2580 2714 2705 2651 2615 2470 2374 2185 29.11.2010 1913 1838 1811 1816 1867 1927 2101 2348 2500 2504 2503 2435 2449 2463 2427 2442 2474 2494 2478 2451 2469 2472 2409 2222 30.11.2010 1945 1841 1817 1811 1805 1839 2062 2231 2342 2368 2339 2353 2343 2360 2375 2331 2371 2426 2409 2414 2373 2353 2167 2047 Average: 1791 1691 1666 1663 1669 1710 1895 2079 2231 2278 2281 2292 2274 2284 2277 2271 2384 2526 2510 2482 2398 2276 2148 1968

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 16.11.2010 1159 1061 1015 997 1003 1117 1344 1474 1481 1429 1380 1329 1311 1333 1318 1336 1466 1602 1569 1559 1489 1416 1340 1216 17.11.2010 1100 1024 979 962 975 1051 1206 1372 1482 1534 1536 1533 1517 1536 1520 1527 1624 1734 1684 1669 1586 1528 1419 1274 18.11.2010 1133 1053 1020 1011 1009 1103 1272 1439 1535 1560 1530 1507 1419 1532 1538 1540 1656 1775 1742 1703 1632 1563 1458 1289 19.11.2010 1148 1063 1021 1010 1026 1098 1267 1437 1524 1568 1537 1557 1539 1570 1568 1528 1623 1767 1725 1689 1615 1541 1440 1300 20.11.2010 1180 1086 1031 1018 1031 1082 1182 1354 1495 1559 1554 1543 1520 1561 1559 1525 1659 1807 1747 1711 1619 1541 1443 1315 21.11.2010 1192 1087 1027 1003 1008 1043 1102 1220 1376 1494 1520 1511 1481 1455 1420 1431 1583 1714 1672 1657 1595 1526 1368 1231 22.11.2010 1098 1030 977 970 991 1044 1233 1437 1574 1624 1621 1631 1610 1654 1650 1611 1713 1781 1716 1705 1614 1552 1467 1301 23.11.2010 1178 1077 1029 1016 1024 1093 1249 1447 1541 1570 1573 1605 1589 1637 1632 1632 1729 1797 1748 1729 1665 1592 1500 1335 24.11.2010 1194 1096 1058 1048 1054 1130 1316 1493 1591 1608 1616 1596 1477 1617 1616 1629 1728 1818 1780 1715 1644 1573 1487 1326 25.11.2010 1190 1099 1046 1025 1017 1088 1227 1369 1477 1557 1559 1557 1540 1588 1614 1624 1732 1807 1755 1729 1651 1591 1494 1328 26.11.2010 1184 1069 1045 1009 1025 1108 1317 1468 1588 1611 1621 1623 1610 1678 1704 1719 1787 1844 1781 1773 1678 1612 1520 1370 27.11.2010 1241 1136 1080 1067 1064 1123 1228 1376 1527 1613 1621 1628 1605 1663 1653 1650 1779 1854 1821 1779 1699 1619 1512 1400 28.11.2010 1246 1158 1094 1075 1075 1125 1186 1304 1436 1567 1628 1638 1639 1622 1582 1632 1767 1834 1796 1768 1711 1608 1477 1307 29.11.2010 1165 1086 1031 1014 1017 1104 1304 1490 1606 1632 1609 1592 1573 1629 1632 1610 1751 1842 1780 1761 1683 1611 1511 1359 30.11.2010 1213 1105 1043 1036 1059 1133 1327 1518 1635 1689 1686 1705 1685 1733 1735 1740 1835 1863 1800 1786 1707 1637 1542 1384 Average: 1175 1082 1033 1017 1025 1096 1251 1413 1525 1574 1573 1570 1541 1587 1583 1582 1695 1789 1741 1716 1639 1567 1465 1316

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 16.11.2010 559 541 559 545 537 543 556 567 638 629 625 697 705 664 663 651 626 765 785 770 712 704 700 605 17.11.2010 536 513 557 567 565 539 525 576 665 645 657 647 568 537 545 556 540 675 676 643 571 518 458 483 18.11.2010 470 493 506 515 510 477 531 510 541 538 539 573 616 551 560 558 523 573 638 577 551 408 464 471 19.11.2010 440 461 440 446 440 422 508 548 555 552 562 567 552 529 540 556 693 749 754 744 711 698 496 488 20.11.2010 478 511 544 562 551 522 565 546 542 530 537 547 527 509 522 495 618 673 687 703 678 676 657 541 21.11.2010 548 560 585 600 592 580 592 572 530 507 515 595 619 624 619 617 577 724 741 723 744 734 666 604 22.11.2010 598 583 581 589 571 512 574 571 621 616 627 667 654 638 644 661 692 759 806 793 696 448 547 691 23.11.2010 656 533 598 616 653 671 707 693 729 789 769 728 808 758 775 790 792 791 787 744 827 797 706 638 24.11.2010 656 650 678 704 688 662 702 716 831 845 859 896 1004 880 873 808 832 742 800 897 956 798 726 720 25.11.2010 743 714 755 782 783 733 731 780 878 848 841 839 831 768 738 738 725 772 829 875 858 840 817 721 26.11.2010 746 769 781 807 800 730 735 772 845 861 872 871 855 828 823 849 878 877 925 929 861 762 758 657 27.11.2010 644 671 694 706 712 655 729 820 870 825 806 819 809 768 770 763 756 853 883 895 856 806 824 759 28.11.2010 685 650 658 667 662 626 671 745 752 812 862 891 909 938 904 867 813 880 909 883 904 862 897 878 29.11.2010 748 752 780 802 850 823 797 858 894 872 894 843 876 834 795 832 723 652 698 690 786 861 898 863 30.11.2010 732 736 774 775 746 706 735 713 707 679 653 648 658 627 640 591 536 563 609 628 666 716 625 663 Average: 616 609 633 646 644 613 644 666 707 703 708 722 733 697 694 689 688 737 768 766 758 709 683 652

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

900 3000 800 700 2500 600 2000 500

MWh 400 1500 Production MWh 300 Consumption 1000 200 100 500 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 Hour Hour

5 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue 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 16.11.2010 5485 5296 5176 5177 5196 5392 5863 6458 6692 6720 6702 6609 6544 6569 6514 6422 6543 7207 7575 7515 7307 6950 6398 5846 17.11.2010 5588 5395 5289 5249 5298 5477 5993 6525 6737 6807 6740 6635 6567 6583 6517 6454 6571 7242 7609 7508 7309 6979 6398 5907 18.11.2010 5582 5389 5259 5269 5319 5512 6007 6620 6943 7047 7003 6909 6842 6859 6775 6698 6825 7495 7811 7732 7535 7084 6455 5913 19.11.2010 5631 5415 5305 5276 5315 5514 5969 6568 6820 6905 6831 6727 6661 6679 6576 6501 6675 7330 7625 7525 7380 7000 6448 5934 20.11.2010 5595 5424 5296 5237 5258 5374 5525 5745 5973 6087 6092 6024 5906 5829 5741 5711 5916 6700 7069 7042 6855 6520 6034 5596 21.11.2010 5344 5153 5004 4930 4929 5019 5119 5135 5302 5389 5390 5360 5339 5301 5230 5210 5437 6246 6612 6582 6463 6108 5739 5357 22.11.2010 4972 4798 4700 4701 4760 5043 5661 6355 6708 6875 6872 6797 6748 6802 6724 6668 6816 7463 7680 7580 7381 6993 6437 5877 23.11.2010 5548 5365 5265 5265 5294 5562 6089 6718 7114 7253 7208 7104 7049 7136 7070 6999 7091 7611 7790 7660 7464 7064 6485 5942 24.11.2010 5667 5452 5354 5334 5384 5605 6106 6728 7123 7265 7216 7097 7019 7118 7052 6955 7120 7760 7905 7758 7564 7200 6561 6000 25.11.2010 5721 5514 5409 5389 5459 5653 6129 6758 7075 7223 7173 7077 7009 7029 6930 6863 7106 7718 7897 7788 7569 7176 6614 6054 26.11.2010 5730 5555 5418 5385 5433 5659 6060 6775 6968 7018 6919 6810 6741 6721 6644 6578 6802 7566 7726 7655 7527 7171 6588 6002 27.11.2010 5775 5563 5431 5381 5388 5487 5631 5867 6142 6333 6384 6336 6238 6142 6066 6046 6349 7056 7281 7235 7041 6698 6228 5751 28.11.2010 5508 5322 5227 5175 5229 5279 5374 5573 5769 5854 5872 5842 5794 5754 5705 5651 5929 6729 6897 6846 6697 6406 6021 5596 29.11.2010 5250 5051 5003 4954 5005 5302 5837 6612 7050 7185 7140 7093 7045 7073 6978 6937 7149 7662 7730 7631 7470 7144 6512 5970 30.11.2010 5776 5562 5439 5418 5510 5754 6173 6845 7158 7211 7239 7116 7048 7045 6981 6945 7146 7683 7828 7748 7578 7243 6667 6171 Average: 5545 5350 5238 5209 5252 5442 5836 6352 6638 6745 6719 6636 6570 6576 6500 6443 6632 7298 7536 7454 7276 6916 6372 5861

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 16.11.2010 473 464 451 463 407 407 588 646 682 681 682 699 697 703 698 693 679 657 660 667 652 684 501 444 17.11.2010 442 444 444 442 437 425 581 625 716 714 715 731 731 733 734 731 711 752 756 763 731 743 534 539 18.11.2010 461 459 461 456 451 439 583 598 646 646 646 663 663 669 669 664 655 695 698 710 691 694 546 516 19.11.2010 550 547 516 505 470 468 662 687 742 742 734 736 735 735 745 740 723 749 752 761 759 771 643 609 20.11.2010 426 526 517 498 493 471 560 567 633 636 642 646 644 637 634 625 590 645 674 681 664 657 683 649 21.11.2010 547 539 542 538 510 512 542 515 525 527 529 531 521 530 529 524 560 588 593 596 588 599 532 527 22.11.2010 448 411 395 344 383 418 568 642 734 733 738 769 712 724 724 718 793 777 782 791 764 762 677 618 23.11.2010 440 410 460 487 473 474 608 595 681 680 652 660 659 665 665 664 750 766 767 770 727 728 611 439 24.11.2010 335 318 345 340 322 296 527 537 628 628 632 646 641 636 625 619 625 657 662 675 658 666 572 352 25.11.2010 163 150 131 132 127 120 520 535 554 556 557 564 565 570 568 564 547 526 531 538 543 569 389 350 26.11.2010 289 86 138 104 115 139 533 493 511 518 519 531 531 537 536 531 514 492 497 504 529 562 400 344 27.11.2010 358 331 347 399 397 413 595 508 576 588 599 600 603 592 590 580 565 559 564 573 586 596 546 550 28.11.2010 496 434 371 338 338 353 481 462 563 603 615 587 587 575 573 564 587 588 593 610 649 589 437 336 29.11.2010 245 213 212 165 159 193 403 457 547 548 555 568 564 568 567 570 570 613 567 577 573 534 336 322 30.11.2010 248 137 133 169 167 168 513 525 530 534 519 534 536 524 537 517 608 654 659 665 664 638 404 312 Average: 395 365 364 359 350 353 551 559 618 622 622 631 626 627 626 620 632 648 650 659 652 653 521 460

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

700 8000

600 7000

500 6000

5000 400 4000 MWh MWh 300 3000

200 2000

100 1000

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 16.11.2010 -152 -121 -95 -83 -79 -93 12 115 37 -7 -101 -169 -98 -131 -183 -143 -54 0 -87 -226 -234 -218 -203 -177 17.11.2010 -203 -222 -227 -220 -225 -226 -245 -205 -163 -107 -131 -145 -123 -118 -122 -85 -57 -40 -63 -92 -108 -100 -59 -96 18.11.2010 19.11.2010 20.11.2010 73 -26 -69 -52 -45 -51 -37 42 51 39 29 35 9 47 44 50 23 12 11 28 41 60 80 95 21.11.2010 33 -132 -108 -90 -82 -91 -111 -57 82 113 96 86 93 115 105 102 81 -5 28 50 48 78 97 127 22.11.2010 166 34 -102 -91 -62 -64 120 246 262 261 260 265 270 287 280 291 269 252 256 254 258 256 276 307 23.11.2010 341 375 406 414 424 415 380 334 304 286 274 264 268 269 259 257 238 210 229 209 218 220 243 278 24.11.2010 290 329 318 284 277 385 333 314 267 257 236 147 136 151 140 167 215 183 175 180 186 209 228 254 25.11.2010 304 314 329 347 349 341 315 258 251 252 218 233 250 238 258 235 218 186 191 194 216 223 242 277 26.11.2010 322 325 351 359 373 366 352 323 301 290 286 261 259 252 248 238 211 197 201 214 221 228 237 254 27.11.2010 289 317 347 357 361 351 334 293 243 193 182 188 174 203 211 252 209 190 200 188 208 216 226 215 28.11.2010 29.11.2010 305 341 372 388 391 381 340 329 300 274 283 298 290 269 281 262 235 215 217 224 226 225 247 281 30.11.2010 312 307 285 303 314 302 351 354 333 344 302 236 239 266 250 260 249 239 239 238 248 267 277 303 Average: 173 153 151 160 166 168 179 196 189 183 161 142 147 154 148 157 153 137 133 122 127 139 158 177

6 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue No: 2007-III/1

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

16.11.2010 17.11.2010 18.11.2010 19.11.2010 20.11.2010 21.11.2010 22.11.2010 23.11.2010 24.11.2010 25.11.2010 26.11.2010 27.11.2010 28.11.2010 29.11.2010 30.11.2010 Montenegro - Albania -2931 -2737 -2123 -1460 -2433 -2112 -1454 -1360 -994 -1426 -2480 -1858 Montenegro - BiH 1637 3449 887 -957 4462 4040 1298 1622 2087 476 2126 3000 Montenegro - Serbia -4606 -997 573 3038 2264 5725 6251 7824 6977 9657 9921 7308 Total -5900 -285 -663 621 4293 7653 6095 8086 8070 8707 9567 8450

Montenegro: Average Hourly exports in last 15 days

250

200

150

MWh 100

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

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 16.11.2010 4700 4370 4270 4130 4110 4200 4600 5260 5750 6200 6320 6400 6450 6420 6080 5860 5900 6470 6950 7050 6940 6460 5750 5260 17.11.2010 4770 4450 4380 4250 4220 4310 4800 5450 5850 6200 6310 6400 6450 6440 6200 5950 6000 6520 6980 7080 6980 6560 5850 5380 18.11.2010 4890 4560 4420 4320 4250 4350 4800 5420 5900 6300 6410 6490 6550 6520 6200 6020 6050 6640 7100 7110 6970 6560 5880 5410 19.11.2010 4787 4484 4312 4181 4175 4288 4762 5379 5748 6129 6095 6111 6121 6122 5904 5739 5859 6555 6923 6957 6779 6313 5713 5212 20.11.2010 5000 4640 4500 4320 4200 4200 4280 4520 5020 5550 5802 6000 6120 6100 5770 5620 5700 6250 6770 6780 6530 6200 5740 5400 21.11.2010 4742 4381 4219 4079 3990 3998 4059 4047 4400 4788 5092 5380 5537 5346 4940 4774 4920 5648 6177 6201 6129 5862 5440 5061 22.11.2010 4540 4150 4040 3950 3900 4040 4460 5050 5600 6040 6200 6330 6370 6350 6090 5880 6000 6480 6900 6920 6830 6440 5770 5300 23.11.2010 4800 4450 4360 4220 4170 4260 4730 5380 5820 6180 6290 6390 6450 6420 6060 5840 5900 6600 7030 7080 6960 6500 5840 5360 24.11.2010 4800 4480 4360 4220 4170 4240 4730 5380 5780 6150 6280 6370 6430 6390 6150 5900 5920 6450 6920 6950 6900 6470 5790 5300 25.11.2010 4790 4420 4300 4220 4170 4280 4750 5480 5820 6200 6300 6340 6400 6360 6050 5850 5930 6610 6980 7050 6950 6450 5800 5330 26.11.2010 4900 4520 4420 4320 4240 4390 4730 5310 5790 6240 6280 6310 6340 6310 6030 5830 5930 6630 7000 7050 6950 6520 5860 5420 27.11.2010 4980 4600 4430 4250 4180 4200 4320 4480 4940 5520 5900 6080 6210 6170 5760 5500 5650 6250 6800 6820 6550 6150 5650 5250 28.11.2010 4870 4500 4360 4200 4100 4100 4160 4160 4500 4890 5260 5550 5740 5540 5100 4900 5050 5730 6260 6300 6200 5960 5530 5180 29.11.2010 4620 4180 4120 4000 3970 4100 4560 5300 5700 6140 6200 6300 6420 6420 6200 5990 6040 6620 6940 6980 6900 6480 5800 5330 30.11.2010 4660 4320 4170 4040 4000 4100 4600 5280 5650 6070 6180 6250 6330 6300 5960 5820 5880 6560 6970 6980 6920 6410 5760 5280 Average: 4790 4434 4311 4180 4123 4204 4556 5060 5485 5906 6061 6180 6261 6214 5900 5698 5782 6401 6847 6887 6766 6356 5745 5298

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 16.11.2010 35.75 35.64 35.61 34.86 34.76 34.96 35.89 38.54 56.09 54.55 54.57 39.78 40.40 54.57 38.52 38.54 38.43 61.83 61.85 61.87 56.21 56.19 56.09 38.54 17.11.2010 56.03 37.77 36.79 36.45 36.27 36.39 37.15 61.62 61.72 93.51 61.82 61.74 61.73 61.73 61.69 61.63 61.64 63.88 63.83 61.88 61.86 61.71 61.62 56.09 18.11.2010 37.16 35.87 35.81 35.30 34.80 35.12 35.60 37.19 39.78 56.18 38.54 55.57 39.78 55.57 38.39 37.79 39.75 56.15 61.88 61.89 61.75 61.71 56.09 55.47 19.11.2010 36.87 36.53 36.41 35.61 34.86 35.62 36.53 55.33 56.09 56.16 61.83 56.19 56.17 56.18 55.41 40.50 56.12 61.80 61.87 92.00 61.85 56.18 56.09 55.33 20.11.2010 38.52 36.57 36.53 36.39 35.45 35.45 35.77 36.46 38.41 39.75 37.19 37.18 37.10 37.17 38.52 54.96 40.48 56.17 61.70 56.17 56.18 56.16 56.09 56.09 21.11.2010 35.60 35.32 35.28 35.27 34.74 34.73 34.75 35.25 35.32 35.46 35.65 35.63 35.44 35.64 36.47 35.94 35.97 36.56 36.54 36.54 36.55 36.57 36.57 35.98 22.11.2010 38.31 36.44 36.41 35.25 34.61 34.84 36.51 61.56 61.72 54.95 54.96 54.97 54.98 39.74 61.66 40.51 38.53 54.97 40.55 55.00 61.82 40.51 61.62 36.66 23.11.2010 36.60 36.33 35.31 34.88 34.82 35.02 36.58 54.87 54.87 36.94 36.88 36.65 36.58 36.57 35.63 35.64 35.99 36.65 37.86 37.19 37.17 37.13 37.12 36.65 24.11.2010 36.43 35.68 35.29 33.27 32.17 32.18 34.95 36.65 37.18 37.09 36.88 36.65 36.66 36.65 35.95 35.81 35.46 35.47 35.53 36.62 36.94 36.90 36.64 35.97 25.11.2010 35.42 33.39 32.99 32.62 32.62 33.35 35.41 36.96 36.65 36.63 36.63 36.57 36.58 35.46 34.79 35.64 35.98 39.78 55.60 38.49 37.01 36.66 36.63 36.64 26.11.2010 35.61 35.01 34.92 33.66 33.35 33.77 34.94 35.99 35.97 35.95 36.46 35.97 36.56 36.63 36.62 36.47 35.65 36.57 37.02 36.96 36.68 35.97 35.98 35.64 27.11.2010 35.45 33.09 32.79 32.75 32.62 32.74 33.46 33.57 35.78 35.79 35.65 35.63 35.62 35.77 35.79 35.80 35.93 36.56 36.68 36.92 36.58 36.54 36.54 35.65 28.11.2010 35.45 35.34 35.29 34.96 34.75 33.43 33.28 33.64 34.95 34.77 34.66 34.72 34.76 34.62 33.84 34.68 34.62 34.76 35.05 35.05 35.04 35.06 34.83 34.67 29.11.2010 33.77 32.62 32.61 0.00 0.00 0.00 32.72 35.65 36.62 36.61 36.62 36.64 36.65 36.65 36.62 35.97 36.55 36.66 37.96 40.56 37.01 36.90 36.63 35.65 30.11.2010 35.42 33.31 32.62 0.00 0.00 32.16 35.39 36.97 37.88 37.11 36.94 37.18 37.12 36.89 36.63 36.64 36.97 37.92 53.92 53.92 49.10 38.54 37.18 36.57 Average: 37.49 35.26 34.98 30.08 29.72 31.98 35.26 42.02 43.94 45.43 42.35 42.07 41.08 41.99 41.10 39.77 39.87 45.72 47.86 49.40 46.78 44.18 45.05 41.44

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

100.00 90.00 8000 80.00 7000 70.00 60.00 6000 50.00 40.00 5000 EUR/MWh 30.00 4000

20.00 MWh 10.00 3000 0.00 2000

1000

7 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue 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 16.11.2010 1001 984 971 967 980 955 948 1017 1035 1094 1097 1052 1047 1061 1019 950 916 889 859 901 968 918 915 989 17.11.2010 972 963 955 946 941 941 948 1014 1056 1116 1100 1079 1104 1117 1072 1001 968 895 844 893 1016 977 962 1002 18.11.2010 1023 1018 1003 993 1001 928 935 1023 1050 1084 1056 1037 1033 1061 1011 941 886 918 882 938 1009 931 932 963 19.11.2010 1014 1088 1093 1069 1074 962 938 1005 1028 1047 1029 1011 1021 1020 955 875 846 894 961 1017 1025 950 974 1001 20.11.2010 1110 982 988 963 949 975 880 1018 995 1026 967 979 968 956 940 922 966 932 1045 1082 1113 1018 1025 1049 21.11.2010 1016 912 914 905 904 915 869 867 876 864 871 867 854 850 851 854 860 902 1008 1041 1060 973 993 914 22.11.2010 1064 1062 1071 1101 1107 1059 942 1014 1100 1101 1124 1114 1141 1086 1047 978 952 864 855 894 952 1029 985 1131 23.11.2010 1194 1101 1111 1095 1097 1047 995 1087 1128 1154 1137 1107 1110 1121 1061 987 986 899 979 1000 1037 1024 1003 1064 24.11.2010 1098 1132 1135 1117 1132 1088 1085 1206 1183 1166 1224 1251 1256 1251 1215 1163 1152 980 936 909 952 1112 1119 1134 25.11.2010 1023 1043 1037 1031 1038 1063 1022 1148 1104 1119 1136 1220 1241 1226 1184 1111 1097 879 924 935 1014 1131 1103 1047 26.11.2010 1159 1180 1130 1116 1098 1128 1108 1122 1126 1168 1168 1143 1142 1147 1090 1024 1047 988 1076 1082 1137 1055 998 974 27.11.2010 1159 1180 1130 1116 1098 1128 1108 1122 1126 1168 1168 1143 1142 1147 1090 1024 1047 988 1076 1082 1137 1055 998 974 28.11.2010 1079 966 980 855 888 902 949 1061 1121 1183 1214 1189 1131 1124 1095 1079 1127 1156 1144 1231 1244 1248 1164 1032 29.11.2010 992 921 905 888 918 950 895 1007 1042 1098 1069 1030 1029 1047 997 944 925 1018 1003 1070 1083 984 982 1014 30.11.2010 1066 1066 1023 995 1050 1101 991 1095 1116 1197 1140 1104 1094 1118 1096 1034 1025 824 808 839 951 1051 1059 1097 Average: 1065 1040 1030 1011 1018 1010 974 1054 1072 1106 1100 1088 1088 1089 1048 993 987 935 960 994 1047 1030 1014 1026

Opcom, Romania: Prices in last 15 days (EUR/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 16.11.2010 34.98 25.65 20.99 20.99 23.32 34.75 39.64 40.58 41.97 43.84 42.91 41.97 41.97 42.44 41.74 39.64 41.74 51.54 53.87 53.63 44.31 41.74 34.98 34.98 17.11.2010 32.58 25.60 23.04 20.94 23.68 33.28 38.63 41.65 43.05 44.21 44.10 42.82 43.05 44.10 42.35 39.56 41.65 53.52 65.16 56.08 51.10 41.89 37.23 37.23 18.11.2010 32.62 25.63 23.07 20.97 23.30 32.62 37.29 39.38 39.62 41.95 39.62 37.29 37.29 37.29 34.96 30.53 34.96 44.63 53.60 53.60 46.61 39.62 37.29 37.29 19.11.2010 25.61 27.71 23.28 20.95 23.28 32.36 37.25 39.35 41.91 41.91 41.91 39.58 37.25 39.35 34.92 30.50 34.92 44.47 53.32 51.17 44.47 41.91 34.92 37.25 20.11.2010 41.67 33.05 34.68 31.19 32.36 34.91 37.24 38.87 37.24 37.24 34.92 20.95 20.95 20.95 20.48 19.79 20.95 41.67 50.59 48.04 45.16 41.90 39.57 39.57 21.11.2010 34.90 23.50 20.94 20.71 20.94 20.94 20.94 20.94 21.41 20.94 20.94 20.71 20.94 20.94 20.48 18.85 21.41 41.89 50.96 46.08 44.21 41.66 41.66 34.67 22.11.2010 20.94 20.94 20.94 20.71 20.94 20.94 37.00 53.52 48.64 46.54 44.68 44.42 44.42 43.98 42.35 41.89 41.89 67.25 67.25 67.25 62.83 43.05 39.33 41.66 23.11.2010 20.94 20.71 17.22 18.85 20.71 20.71 32.58 42.82 41.89 44.68 44.33 41.89 41.89 43.75 41.89 34.91 41.89 56.08 65.16 60.50 52.36 41.89 39.56 34.67 24.11.2010 32.59 20.95 18.86 20.72 20.95 26.02 37.48 44.46 50.98 52.38 50.98 46.56 46.56 46.56 44.35 44.35 44.46 65.18 67.28 67.28 66.35 48.65 42.83 43.18 25.11.2010 25.95 20.66 18.57 17.18 20.66 23.44 25.95 45.96 51.48 52.23 52.23 46.66 46.66 46.66 44.57 44.22 44.57 67.08 67.08 67.08 62.90 44.10 41.55 38.53 26.11.2010 32.50 20.89 18.34 16.95 18.57 23.21 25.77 42.48 42.48 44.11 44.11 43.87 42.71 42.71 41.78 41.78 44.11 55.94 55.94 52.23 50.84 41.78 34.59 32.50 27.11.2010 23.26 20.93 16.28 15.12 15.58 20.83 23.26 32.56 30.24 37.73 37.21 35.41 34.65 27.91 23.26 23.26 23.26 48.61 58.14 56.05 47.91 41.86 39.54 34.65 28.11.2010 32.45 30.14 20.86 20.86 20.86 20.86 34.77 38.48 39.18 43.58 43.81 43.58 41.73 41.73 39.18 38.48 42.19 52.16 60.27 53.09 50.77 45.90 41.50 26.66 29.11.2010 18.31 16.92 13.91 13.91 15.53 18.31 23.18 41.50 42.19 44.02 40.80 39.41 39.41 39.41 39.41 34.77 37.09 50.77 52.16 50.39 44.86 37.09 20.86 29.90 30.11.2010 25.50 17.15 13.91 15.07 16.23 20.86 22.95 41.73 44.05 44.95 44.16 43.81 44.05 44.74 44.16 44.02 44.74 67.00 67.00 64.91 57.95 43.81 39.41 36.86 Average: 28.99 23.36 20.33 19.67 21.13 25.60 31.60 40.29 41.09 42.69 41.78 39.26 38.90 38.83 37.06 35.10 37.32 53.85 59.19 56.49 51.51 42.46 37.65 35.97

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

16.11.2010 17.11.2010 18.11.2010 19.11.2010 20.11.2010 21.11.2010 22.11.2010 23.11.2010 24.11.2010 25.11.2010 26.11.2010 27.11.2010 28.11.2010 29.11.2010 30.11.2010 Base Price 38.92 40.27 36.71 36.65 34.33 27.98 41.81 38.41 43.75 42.33 37.92 31.98 38.46 33.50 39.54 Base Quantity 23535 23882 23658 23896 23848 21939 24771 25523 26997 25876 26408 26408 26162 23811 24942 Day Price 43.97 45.81 40.52 40.89 33.56 28.33 49.81 45.53 51.49 50.59 44.54 36.33 44.31 41.03 47.75 Day Quantity 15773 16199 15796 15621 15807 14467 16191 16812 18042 17491 17623 17623 18297 16241 16485 Night Price 28.83 29.20 29.10 28.17 35.88 27.28 25.80 24.17 28.26 25.82 24.69 23.27 26.77 18.46 23.12 Night Quatity 7763 7683 7861 8274 8041 7472 8579 8711 8955 8385 8784 8784 7865 7570 8457

OPCOM, Romania - Traded energy OPCOM, Romania - Prices 30000 80 70 25000 60

20000 50 40 15000 MWh EUR/MWh 30

10000 20 10 5000 0 0

16.11.2010 17.11.2010 18.11.2010 19.11.2010 20.11.2010 21.11.2010 22.11.2010 23.11.2010 24.11.2010 25.11.2010 26.11.2010 27.11.2010 28.11.2010 29.11.2010 30.11.2010 16.11.201017.11.201018.11.201019.11.201020.11.201021.11.201022.11.201023.11.201024.11.201025.11.201026.11.201027.11.201028.11.201029.11.201030.11.2010 minimal price average price maximal price

OPCOM, Romania - Prices 60

50 Day Energy (06-22h)

40 Base energy (00-24h) Night energy (22-06h) 30

EUR/MWh 20

16.11.2010 17.11.2010 18.11.2010 19.11.2010 20.11.2010 21.11.2010 22.11.2010 23.11.2010 24.11.2010 25.11.2010 26.11.2010 27.11.2010 28.11.2010 29.11.2010 30.11.2010

Night Day Base

8 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue No: 2007-III/1

Mepso, Macedonia: Production and consumption (MWh)

16.11.2010 17.11.2010 18.11.2010 19.11.2010 20.11.2010 21.11.2010 22.11.2010 23.11.2010 24.11.2010 25.11.2010 26.11.2010 27.11.2010 28.11.2010 29.11.2010 30.11.2010 Hydro generation 6925 8073 4965 4727 4557 3983 1680 1339 2222 4157 4500 2964 3793 3216 4024 Thermal generation 7634 7099 10662 10895 10969 11509 14348 15063 14750 15366 15541 15493 15441 14679 13686 Total production 14559 15172 15627 15622 15526 15492 16028 16402 16972 19523 20041 18457 19234 17895 17710 Import -9450 -9437 -9218 -9260 -9370 -9541 -8670 -8261 -8318 -6239 -6503 -6697 -6771 -6584 -7185 Total consumption in FYROM 24009 24609 24845 24882 24896 25033 24698 24663 25290 25762 26544 25154 26005 24479 24895

Consumption and production in last 15 days Macedonia 30000

25000

20000

15000 MWh

10000

5000

16.11.201017.11.201018.11.201019.11.201020.11.201021.11.201022.11.201023.11.201024.11.201025.11.201026.11.201027.11.201028.11.201029.11.201030.11.2010

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 02.12. T: 12 - 18 T: 2 - 9 T: 7 - 18 T: 0 - 3 T: 16 - 24 T: 10 - 18 T: 9 - 15 T: 1 - 8 T: 6 - 15 W: S 15 W: - W: - W: SW 10 W: S 21 W: - W: - W: NE 18 W: SE 20 R: 11 R: 4 R: 2 R: 2 R: 2 R: 4 R: 12 R: 1 R: 4 03.12. T: 8 - 18 T: 0 - 13 T: 6 - 17 T: -3 - 5 T: 17 - 23 T: 6 - 16 T: 6 - 12 T: 7 - 13 T: 3 - 14 W: SE 15 W: - W: E 9 W: S 11 W: S 15 W: SE 10 W: S 8 W: E 10 W: S 20 R: 29 R: 12 R: 3 R: 1 R: - R: 6 R: 33 R: 1 R: 6 04.12. T: 4 - 14 T: -3 - 8 T: 0 - 9 T: -4 - 0 T: 11 - 22 T: 1 - 12 T: 2 - 13 T: -2 - 11 T: 2 - 5 W: SW 10 W: 4 W: NE 30 W: NE 10 W: SW 19 W: NW 15 W: - W: SW 20 W: - R: 4 R: - R: 11 R: 5 R: - R: 2 R: 3 R: 1 R: 3 05.12. T: 5 - 13 T: 0 - 8 T: 0 - 8 T: 2 - 5 T: 10 - 17 T: 0 - 14 T: 3 - 11 T: 1 - 8 T: 3 - 8 W: - W: - W: NE 13 W: S 15 W: NW 20 W: N 9 W: - W: - W: SE 14 R: - R: - R: - R: - R: - R: - R: - R: - R: - 06.12. T: 6 - 16 T: 2 - 9 T: 1 - 10 T: 7 - 12 T: 11 - 18 T: 3 - 12 T: 6 - 12 T: 2 - 6 T: 8 - 10 W: - W: S 10 W: - W: SW 24 W: NE 10 W: - W: S 10 W: - W: SE 20 R: - R: 1 R: - R: - R: - R: - R: - R: - R: 1 07.12. T: 9 - 19 T: 7 - 15 T: 5 - 15 T: 8 - 16 T: 13 - 21 T: 4 - 16 T: 10 - 16 T: 4 - 9 T: 7 - 15 W: - W: - W: - W: SW 22 W: - W: - W: SE 12 W: SW 23 W: SE 9 R: - R: 1 R: - R: 1 R: - R: - R: 2 R: - R: 1 December Temp: 3-12 Temp: -2.8-3.5 Temp: -2.7-4 Temp: -1.8-4.4 Temp: 6.8-14 Temp: -2.2-5.3 Temp:2.9-11.1 Temp: -2.6-3.8 Temp: 0.2-5.3 Averages Rain: 140 Rain: 85 Rain: 40 Rain: 63 Rain: 69 Rain: 51 Rain: 217 Rain: 43 Rain: 58 Rain days: -: Rain days: 11 Rain days: 11 Rain days: 12 Rain days: 12 Rain days: 11 Rain days: 13 Rain days: 6 Rain days: 14

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-XI/2 - issue covers period 16.11.2010-30.11.2010

Tables with result of Allocated Aailable Transfer EMS - Serbia December 2010 Capacities (AATC) in Balkan region for December 2010 Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: IMPORT Albania > Serbia 260 50 210 25 80 79 0.77 01.-31.12.2010 NOS BIH - Bosnia & Herzegovina December 2010 BiH > Serbia 500 100 400 50 150 150 0.18 01.-31.12.2010 Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: Bulgaria > Serbia 550 100 450 50 175 175 1.51 01.-31.12.2010 IMPORT Croatia > Serbia 500 100 400 49 151 151 0.02 01.-31.12.2010 Croatia > BIH - - 450 - 125 125 0.10 01.-31.12.2010 Hungary > Serbia 700 100 600 50 250 249 0.03 01.-31.12.2010 Montenegro > BIH - - 300 - 150 75 0.00 01.-31.12.2010 Montenegro > Serbia 650 150 500 55 195 192 0.06 01.-31.12.2010 Serbia > BIH - - 350 - 175 170 0.00 01.-31.12.2010 Macedonia > Serbia 340 100 240 50 70 70 0.22 01.-31.12.2010 EXPORT 750 100 650 50 250 250 1.24 01.-09.12.2010 BIH > Croatia - - 800 - 285 285 0.65 01.-31.12.2010 Romania > Serbia 750 100 650 50 275 275 1.21 10.-31.12.2010 BIH > Montenegro - - 500 - 219 219 0.03 01.-31.12.2010 EXPORT BIH > Serbia - - 400 - 163 163 0.26 01.-31.12.2010 Serbia > Albania 260 50 210 25 80 80 2.86 01.-31.12.2010 Serbia > BiH 450 100 350 24 151 151 0.16 01.-31.12.2010 ESO - Bulgaria December 2010 Serbia > Bulgaria 450 100 350 25 150 140 0.00 01.-31.12.2010 Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: Serbia > Croatia 450 100 350 50 125 124 0.46 01.-31.12.2010 IMPORT Serbia > Hungary 700 100 600 50 250 249 0.42 01.-31.12.2010 Serbia > Bulgaria - - 350 - 155 155 0.03 01.-31.12.2010 Serbia > Montenegro 650 150 500 79 171 171 0.16 01.-31.12.2010 Romania > Bulgaria - - 300 - 200 200 0.36 01.-31.12.2010 Serbia > Macedonia 600 100 500 50 200 200 0.33 01.-31.12.2010 Macedonia > Bulgaria - - 150 - 75 75 0.00 01.-31.12.2010 250 100 150 50 25 25 0.12 01.-16.12.2010 Greece > Bulgaria - - 500 - 240 240 0.00 01.-31.12.2010 Serbia > Romania 400 100 300 50 100 98 0.03 17.-31.12.2010 EXPORT * - No information available Bulgaria > Serbia - - 450 - 190 190 2.40 01.-31.12.2010 Bulgaria > Romania - - 200 - 110 110 2.10 01.-31.12.2010 - TTC (Total Transfer Capacity) Bulgaria > Macedonia - - 300 - 100 100 2.58 01.-31.12.2010 Bulgaria > Greece - - 500 - 200 200 4.87 01.-31.12.2010 - TRM (Transmission Reliability Margin)

MAVIR - Hungary December 2010 - NTC (Net Transfer Capacity) values in previous tables, represents Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: commonly correlated values, given per each border and per each di- IMPORT rection on the respective border. (Please note that some of TSOs on 500 100 400 200 200 200 1.56 01.-16.12.2010 their web sites publish only one-half of the NTC value, i.e. their own Romania > Hungary 450 100 350 200 150 150 2.50 17.-22.12.2010 part of NTC, and therefore NTC data can be different) 500 100 400 200 200 200 1.58 23.-31.12.2010 Serbia > Hungary 700 100 600 50 250 245 0.52 01.-31.12.2010 - AAC (Already Allocated Capacity) value represents part of transmis- EXPORT 300 100 200 150 50 50 0.17 01.-16.12.2010 sion capacity allocated earlier by TSO in which table this value ap- Hungary > Romania 500 100 400 150 250 200 0.00 17.-22.12.2010 pears. 600 100 500 150 350 295 0.00 23.-31.12.2010 Hungary > Serbia 700 100 600 50 250 250 0.26 01.-31.12.2010 - ATC (Available Transfer Capacities) value represents amount of trans- *Romanian border - auction for 100% of ATC, held by Transelectrica mission capacity, which will be offered by the TSO in which table this value appears to the interested market participants through al- MEPSO - Macedonia December 2010 location procedure: usually by pro-rata or explicit auctions method. Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: (Please note that some of TSOs on their web sites within their ATC val- IMPORT ue publish ATC part of the neighboring TSO, and therefore ATC data Serbia > Macedonia 600 100 500 35 215 214 0.00 01.-31.12.2010 can be different Bulgaria > Macedonia 400 100 300 25 125 125 2.00 01.-31.12.2010 Greece > Macedonia 400 100 300 0 150 0 0.00 01.-31.12.2010 - AATC (ALLOCATED Available Transfer Capacities) values are the re- EXPORT sults of allocation procedure conducted by respective TSO in which Macedonia > Serbia 340 100 240 0 120 110 0.00 01.-31.12.2010 Macedonia > Bulgaria 250 100 150 0 75 20 0.00 01.-31.12.2010 table this value appears Macedonia > Greece 260 100 160 0 80 80 2.70 01.-31.12.2010

Transelectrica - Romania December 2010 Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period: IMPORT Bulgaria > Romania 300 100 200 90 110 110 2.10 01.-31.12.2010 250 100 75 50 25 25 0.15 01.-16.12.2010 Serbia > Romania 400 100 150 50 100 100 0.07 17.-31.12.2010 300 100 200 150 50 50 0.17 01.-16.12.2010 Hungary > Romania 500 100 400 150 250 200 0.00 17.-22.12.2010 600 100 500 150 350 295 0.00 23.-31.12.2010 150 100 50 50 0 0 0.00 01.-16.12.2010 Ucraine > Romania 200 100 100 50 50 45 0.00 17.-31.12.2010 EXPORT Romania > Bulgaria 400 100 300 100 200 200 0.36 01.-31.12.2010 750 100 350 50 300 300 0.97 01.-09.12.2010 Romania > Serbia 750 100 325 50 275 275 0.95 10.-31.12.2010 500 100 400 200 200 200 1.56 01.-16.12.2010 Romania > Hungary 450 100 350 200 150 150 2.50 17.-22.12.2010 500 100 400 200 200 200 1.58 23.-31.12.2010 Romania > Ucraine 150 100 50 50 0 0 0.00 01.-31.12.2010 *Bulgarian border - auction for 100% of ATC, held by ESO-EAD **Hungarian border - auction for 100% of ATC, held by Transelectrica ***Ukrainian border - auction for 100% of ATC

10 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010Issue No: 2007-III/1

Danube water-level in cm for last 30 days (in cm) Characteristic water stages (in cm)

relevant for: HPP Portile de Fier I, 1167 MW, Romania HPP Portile de Fier II, 270 MW, Romania HPP Djerdap I, 1058 MW, Serbia HPP Djerdap II, 270 MW Serbia (source: Republic Hydrometeorological Service of Serbia)

Analysis:

Technical info regarding AES-92 Nuclear Power Plant Belene Capacity: In this issue of Balkan Energy NEWS we will present basic -3000 MW (thermal) data regarding Nuclear Power Plant Belene, timeline of -1068 MW (electrical) all important developments and problems that emerged -Lifetime: 60 years, operational 7900 hours/year since project was presented. Primary coolant circuit: Introduction -4 loops -coolant flow rate through the reactor: 86000 m³/h -pressure (operational) 15,7 MPa (max 17.6) NPP Belane construction site is on the river Danube banks, -coolant temperature: in 291°C, out 321 °C 250 km northeast of Sofia and 7.5 km from Bulgarian-Ro- manian border. reactor core: -80t U The NPP should have two AES92 type pressurized water -fuel = VVER 1000 reactors, with overall capacity of 2,000 MW. The new reac- -average fuel burnup: 472 MWd/kgU (max 49.9) tors are based on VVER technology developed by Russian -fuel cycle: 3 to 4 years AtomStroyExport (ASE), which is the main constructor of the plant. For the main subcontractors, agreements were Secondary circuit: signed with Areva and Siemens, but Siemens later retreat- -pressure: 6,28 MPa ed from the project. Comparing to old VVER 1000 rectors, AES92 have advance security systems in line with Europe- Safety systems: an Utility Requirements (EUR) for Light Water Reactors. If -active: HPSI, LPSI, SS, EFWS: 4*100% all problems regarding financing and finding the strategic -passive: 2 systems, 4*33% per system partner are solved, construction works could start in 2011, while construction could be finished in 2017.

History: It has been decided that reactor will be AES-92 (VVER 1000/ V-466). AES-92 presents updated VVER 1000/320, soviet- type pressurized light water reactor. According to docu- The project design of NPP Belene was carried out in the mentation, The AES reactor has more backup systems for early 1980s jointly with Soviet Union. The construction safe shutdown and cooling the reactor than the old VVER started in 1987 with the following time schedule: unit 1 in 1000 version, and longer lifetime (60 years), with zero ac- 1995, unit 2 in 1997 and units 3&4 after 2000. Original plans cident chance. were for two Soviet-design WWER-1000 pressurized water reactors with two more units to be added later.

11 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

Nevertheless, in August 1991, Bulgarian government sus- In July 2008, the government of Bulgaria officially ap- pended construction, mainly due to the lack of funds, en- proved the start of construction of NPP Belene after min- vironmentalists’ protests and mounting concerns over the istry of regional development and public works issued region’s seismic stability. Since then only the preservation permit for start of construction. Both units were to be op- of the construction work and the equipment has been erational in 2015, at latest. carried out. In the mid-1990s the reactor vessel for unit 1 (Skoda reactor of the Russian WWER type), which had On September 3 2008, prime minister of Bulgaria Sergey been paid for several years earlier, was delivered to the site Stanishev officially marked a start of construction of from Czechoslovakia. Construction works for unit 1 is up to NPP. The first construction works were be related to dis- 40% complete and for the second unit roughly about 10% mantling of foundations of the old facilities. In the same complete. Nearly all major equipment, including circuitry, time, head of ASE confirmed that cost of the construction transformers and one Czech-made WWER-1000 reactor would not exceed contracted amount of 4 billion EUR. vessel, has already been delivered (from Skoda and others) and about of the 60% of the basic equipment on the site is In November 2008, NEK and ASE signed annex to the pre- usable. liminary agreement for construction of NPP Belene. The annex, signed by CEO of NEK Lyubomir Velkov and president of ASE, Leonid Reznikov, defined new deadlines for Construction: delivery of reactors, steam generators, turbines and electric generators as well as deadlines for financial payments. Bulgarian government approved construction of NPP Be- Russians did not reveal any details regarding the annex lene in April 2005, and tender documentation for design, as well as NEK who said that citizens would not be inter- construction, commissioning, and putting into operation ested in timetables for delivery of equipment, while pay- of units 1 and 2 was bought by only two companies, Rus- ments are considered as secret. Russian company OMZ sia’s Atomstroyexport (ASE) and Czech’s Consortium Skoda confirmed it had signed agreement for manufacturing Alliance. Since June 2005 till October 2006, after long gov- and delivering of reactors for nuclear power plant (NPP) ernment struggle for bid improvements, Russia’s ASE has Belene. The reactors will be manufactured by Izhorskiye been selected to be the constructor of nuclear power plant. Zavody, the part of the OMZ Group. Russian bid was considered better in terms of security and utilization of two units in NPP. During April 2009, ASE and French Areva have signed new agreement for construction of NPP Belene. Ministry ASE offered to produce electricity in new NPP at price be- of energy of Russia said that signing the new agreement low or equal 37 EUR per MWh, while Skoda offered 40 to 43 was done after member of original consortium, the Ger- EUR. They also offered to build NPP for 3.997 billion EUR, man Siemens, pulled out from consortium with Areva. while Skoda offered price of 4.098 billion EUR. According to new contract, the equipment for the plant will be delivered by Areva, while Siemens will be hired as ASE is 49% owned by Gazprom. Other members of consor- subcontractor. tium for construction of NPP were French Areva and Ger- man Siemens, but Siemens later stepped out. The blocks Till February 2010, works on technical project was per- have operational life of 60 years and shall be constructed formed, when NEK approved project for construction, in accordance to EU standards. which was developed by Atomenergoproekt, Hidropres, Silovie Mashini and Kurchatovskiya Institute. Head of NRA In the middle of 2007, there were disputes between Na- (Nuclear Regulatory Agency), Sergey Tsochev said that tional Electric Company (NEK) and ASE regarding usage regulator had concluded that project met seismic, met- and value of the equipment delivered by Skoda in 1990s. rological and hydrological criteria related to construction The ASE believed that some parts of the equipment will site. not be compatible to the new design of NPP and it is ready to pay funds to NEK for disassembling the equipment. NEK Halt in construction was resulted by several financial is- claims the equipment worth is 300 million EUR, while ASE sues. One of the issues was the fact that Bulgaria needed was ready to pay some 100 million EUR for it. to pay 280 million EUR for first 1 000 MW reactor by mid September to ASE. Government officials said that they On January 18 2008 in Sofia, NEK and ASE signed the engi- are not willing to invest any more funds in NPP Belene neering, procurement and construction (EPC) contract for without strategic partner, which made unclear how 280 construction and commissioning of units 1 and 2 of NPP million EUR would be paid. On the other hand, govern- Belene. The contract was signed by Lubomir Velkov, CEO of ment said that they do not have those 280 million EUR. NEK, and by Sergey Shmatko, president of ASE. The worth Minister Djankov said that state would try to postpone of the contract is 3.997 billion EUR, while the cost of the en- abovementioned payment. Bulgaria has already paid 300 tire project should reach 6 to 7 billion EUR. The technology, million EUR in advance in Belene project, while overall which has combination of active and passive safety and se- costs of two reactors will reach 580 million EUR. ASE start- curity systems, was approved by EU in December 2007. 12 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

ed preparations for construction of the first reactor in the would compromise its reputation by taking the part in beginning of 2010. Belene project. Greenpeace said that corruption and un- derdeveloped safety culture in Bulgaria could endanger In mid October 2010, NEK and ASE have signed the an- entire project. In the same time, use of Russian technolo- nex to the preliminary agreement for construction of NPP gy and earthquake prone construction site already raised Belene. The previous annex expired on September 30 and concerns in RWE board, Greenpeace said. Several ecologi- the new deadline for starting the project was set at March cal organizations in Bulgaria and Europe reminded that 30, 2011. region of Belene was hit by earthquake in 1977.

According to latest announcements from minister Ki- In March 2010, Bulgarian rightist party UDF presented riyenko, in September or October 2011, the construction proposal for halting the construction of NPP Belene. Ac- works could start, while the first unit should be completed cording to UDF, researches made by Academy of Sciences in 2016. He believes that project should be repaid in 20 in 1990, based on opinions of experts from former Soviet years. Kiriyenko also said that Russia is ready to provide Union, found that Belene site was not suitable for con- nuclear fuel for future NPP during its entire operational life struction of nuclear power plants. UDF said that site does of 60 years. not meet seismic criteria.

Enviromental issues: Financing:

In August 2005, Greenpeace announced battle against In the 2nd half of January 2007, NEK has published an nuclear policy in Bulgaria in favor of improvement of en- invitation for 250 million loan. The main purpose of the ergy efficiency. But Ministry of energy said that the Green- loan was to finance the project’s design, supply of equip- peace claims could not be supported by any relevant facts ment and the construction works during the first year of he also added that Energy strategy in Bulgaria predicts the project. The French bank BNP Paribas has won in the active presence of nuclear energy, which should be in ac- tender for providing the 250 million EUR bridge loan cordance to the key principles of safe operation of nuclear facilities. Again, in December 2007, Bulgarian green party In May 2007 NEK confirmed it has been negotiating with issued a press release in which it repeated its standpoint Euratom and European investment bank (among others) against construction of NPP Belene and NPPs in general. for funding the project. Later that year, a 300 million loan The EC’s approval of Belene project was also disapproved from Euratom has been granted. After long negotiations, by Greenpeace and other environmental NGO’s. government of Bulgaria has decided to grant 600 million EUR of state guarantees to the project for construction of In December 2007, European commission officially sup- NPP Belene. The guarantees were related to the loans from ported technology that will be used in NPP Belene and Euroatom and European Investment Bank. that the NPP Belene project was in accordance to articles 41 to 44 of Euroatom treaty. EC also confirmed that de- Government of Bulgaria also decided to establish fund sign of the plant includes various passive security systems for financing the university training of staff for future NPP and improved protection against external hazards, such Belene. The main problem was the fact that Bulgarian uni- as earthquakes and plain crashes. A month earlier, there versities do not produce enough nuclear engineers, which was a confusion, since NEK issued official press release on should be changed by new special fund. November 6 2007 in which it claimed that EU approved the project, which was denied by European commission, Some sources implied that NEK could take an export loan saying that final decision was not reached yet. from Russian Roseximbank. On the other hand, the ASE could also provide funds for the project, sources said. Till According to the study published by Bulgaria’s Academy March 2008, only two banks applied for providing the loan of Science, the construction site of NPP Belene is located for the project. Russia offered to finance the construction in the area with the lowest seismic activities in the country. of NPP Belene, which was rejected by Bulgaria. The study has been conducted in the period of two years, and it showed that construction site is in accordance to In the beginning of April 2008, French bank BNP Paribas the criteria of the International Atomic Energy Agency. On was selected to provide loan for funding the construc- the other hand, anti-nuclear activists claimed the NPP Be- tion of NPP Belene. Contract was signed on 4th of June. lene would be unsafe having in mind that earthquake in BNP Paribas should arrange most of the necessary funds 1977 in the Vrancea region in Romania damaged Bulgar- needed for the project. The smaller part of the funds will ian town of Svishtov, near the future plant. be provided through loans of Euroatom and European investment bank. The contract was signed after media pub- After RWE has been selected as partner in Belene project, lished rumors that BNP could withdraw from the project. Greenpeace issued a statement in which it said that RWE The competitor to the BNP Paribas was also French Bank, the Societe Generale. But, two months later, BNP Paribas 13 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

said it would not invest any of its funds for the project. BNP During May 2009, Deputy Minister of economy and en- will provide only advisory services and it would not be a ergy Yavor Kuyumdzhiev said that government will ask for lead arranger for the loan, company said in the statement. loan for construction of NPP Belene, but the loan will cover According to BNP Paribas, the agreement with NEK only only construction activities in that year. That meant that envisaged an option for the bank to invest its funds in the Bulgaria will not negotiate with Russia on acquiring 3.8 project, where NEK hoped this would be the case. Financial billion EUR loan, but on smaller amount that will be used experts said it was unusual that bank selected to arrange for construction of concrete foundation of the NPP, deputy the loan was not wiling to invest its own funds and that explained. Analysts believed that abovementioned state- this could be signal of caution for other potential inves- ment is another signal that construction of NPP Belene tors. Sources from BNP Paribas said the latest decision was would become more expensive and more delayed. reached by the highest officials of the bank due to high risks related to the project. But, in January 2010, BNP Pari- In June 2009, Bulgaria gave up hopes to get loan from BNP bas decided to leave the project after its mandate expired. Paribas bank and turned to Russia. The head of the project NEK said that cooperation with BNP Paribas ended by mu- management team for Belene project within Bulgarian En- tual consent. ergy Holding (BEH) and member of the board of directors of NEK Ivan Atanasov said that Russia has started proce- During May 2008, there were some disputes regarding dure for granting the 3.8 billion EUR loan for construction overall cost of the project. CEO of NEK, Lyubomir Velkov of NPP Belene. Atanasov said that Russian Prime Minister said the inflation rate could result in 20 % increase in over- Vladimir Putin had signed a decree on granting the loan, all cost of the project. In the same time, the contract with but the terms and guarantees for the loan are yet to be future constructor envisages that construction costs could agreed. Russia should provide export loan that will cover be only adjusted for average EU inflation. 80 % of the project cost, while the rest should be funded by NEK. Atanasov however said that Russia would grant Also, minister of economy and energy, Mr. Petar Dimitrov the loan only to joint venture company of NEK and strate- rejected recent claims said by Georgiou Kaschiev, an ex- gic partner RWE. . He also said that all participants in the pert with the risk research institute of the Vienna Univer- project agreed on acquiring the loan from Russia. Later, sity, who said the overall project costs could reach 9 billion Bulgaria announced it could decrease its 51% stake. EUR. Kaschiev said that estimations of NEK did not take into consideration the increase in price of goods (con- In December 2009, Russia proposed to provide temporary crete, steel, etc), price of nuclear fuel and adjacent electric- financing for construction of NPP Belene for following 24 ity grid. In the same time, NEK will face additional financial months in order not to halt the project until the new stra- costs related to repayment of the loan and advisory serv- tegic partner was selected. In return, Russian side should ices, Kaschiev said. NEK confirmed that construction costs become shareholder in the project. According to proposal, do not include purchase of nuclear fuel and construction Russia could acquire 15 % stake in Belene project. After of NPP’s electricity grid and substations. German RWE pull out from Belene project, Russia confirmed it was ready to acquire 100 % stake in the project. According to plans from the end of 2008, NEK should spend some 450 million EUR in Belene project by the end In June 2010, Prime Minister Boyko Borisov said that Bul- of 2009. The funds will be used for payments for the plant’s garia would freeze construction of NPP Belene until the equipment (it should be delivered in period of 34 months), new strategic partner was found. Borisov once again criti- for project’s documentation and for the first construction cized his predecessor Sergey Stanishev on promising that works. project would cost only 4 billion EUR. According to Bori- sov, the project would cost even 13 billion EUR. PM Borisov During the beginning of 2009, several problems regarding said during the meeting with EU ambassadors that Belene financing of the project emerged. Firstly, Russian Atom- project would be immediately restarted if there were in- StroyExport, asked from NEK to increase the costs of the vestors interested in it. Problem emerged in the fact that project in accordance to Bulgaria’s harmonized consumer Bulgaria needs to pay 280 million EUR for first 1 000 MW price index in the 2008. Later, government confirmed it reactor by mid September to ASE, which opposes to the is looking for alternative funds since strategic partner in claim that government will not invest any new funds. In the project, German RWE, decided to invest funds after July, Minister of finance Simeon Djankov confirmed that financial structuring of the project was completed, which state would not be able to pay agreed amount of 280 mil- should happen in 2010. Bulgaria expected that RWE would lion EUR. Minister Djankov said that state would try to invest funds since the very beginning. In the same time, postpone abovementioned payment. BNP Paribas, the bank selected to arrange the loan for the project, said it could not secure funding until end of 2009. Two months later, new figures regarding price of the Minister of economy and energy, Mr. Petar Dimitrov said project were reveiled by PM Borisov and Minister Traykov, that additional funds could come from Russia. According but their standpoints were different. PM Borisov said that to sources quoted by local press, Bulgaria has been asking Russian AtomStroyExport, which won the contract for con- for 1.5-1.7 billion EUR loan from Russia struction of NPP Belene, demands 2.8 billion EUR more for

14 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

the construction works. The original price was set at 4 bil- or to customers abroad). Details regarding the bids were lion EUR, but former government included inflationary ad- not revealed during that stage of the tender, and it was justments in the contract, Borisov explained. In the same announced that final agreement will be signed by the end time, some 500 million EUR should be paid to the consult- of 2007. ant and for the costs related to infrastructure and loan interest rates so that project’s cost should reach between 6 Later in December 2007, NEK invited qualified bidders in and 7 billion EUR. But, few days later, Minister Traykov said the tender for strategic partner to submit their improved that construction of NPP Belene should cost 9 billion EUR, offers for acquiring of 49 % stake in the project by Janu- according to current development. Traykov said that ASE ary 9, 2008. The improvements were supposed to be about has been demanding additional 2.5-3.5 billion EUR for the the future management of the plant and supervision of project. The project will also require additional 500 million the project. NEK explained that initial bids of all candidates EUR for architects and engineers and another 500 million implied that bidders wanted majority managerial rights in EUR for infrastructure, Traykov said. the project company, what was unacceptable for Bulgaria.

All five potential strategic partners in the project submit- Strategic partner: ted improved bids. Again, NEK did not want to reveal the details of the bids. NEK also expects that potential partners would offer a premium for the investments. This premium On 2nd of May 2007, NEK has published invitation of ex- would be the one of the key parameters for evaluation of pression of interest for strategic partner for NPP Belane. NEK bids. aimed to control at least 51 % in the future joint venture called Power Company Belene (PCB). The PCB will be the On March 11 2008, NEK announced it has selected German owner and operator of the NPP Belene. In the same time, RWE and Belgian Electrabel to enter final stage in the ten- NEK obliged itself to purchase electricity from the NPP in der for acquiring 49 % stake in the project for construction the period of 15-years. The main criteria for selection of and operation of NPP Belene. NEK preserved the right to future partners was the prior experience in construction invite Enel, CEZ and E.ON to restart negotiations in case of and operation of NPPs, the experience in electricity export need. and the financial capacity to fund the project. It was expected that strategic partner would contribute some 2 bil- According to sources, RWE and Electrabel made the high- lion EUR in funding. In that moment, it was expected that est bids in the tender. Two companies were given addi- final agreement would be signed by 2007, and construc- tional information on the project in order to carry out de- tion would start in 2008. tail analyses before submitting the final bids. The following companies have submitted bids: Enel (Italy), Sources said that two candidates have been negotiating CEZ (Czech Republic), RWE, EON (Germany), EDF (France), on sharing the minority stake, where leading investors ATEL, EGL (Switzerland), Endesa (Spain), Electrabel (Bel- would be RWE. Sources also said that RWE could offer 400 gium) and local company Cumerio Med. The potential million EUR in investments right away, which would enable partner will be entitled to sign 15-year contract for pur- start of the project. It was expected that NEK would select chase of NPP’s output. just one investor, while this investor would be allowed to sell part of its stake to potential partners. The media said Two months later, NEK officials announced that poten- that RWE established contacts with E.ON, CEZ and Enel re- tial investors are divided in two groups. The first group is garding this issue. According to some earlier unconfirmed made of the companies, which were invited in the second news, RWE and Electrabel also could be interested in the stage of the procedure and wanted to subscribe directly partnership. The sources said the main criteria for winning or through consortium model for up to 49 % of the shares the tender would be the cash offer as well as guarantees BPC. The potential partner were Electrabel (Belgium), Enel for providing the immediate funds for the projects. (Italy), E. ON, RWE (both from Germany), EDF (France) and CEZ (Czech Republic). The second group of the bidders was In April 2008, German newspaper published an article of made of companies willing to acquire up to 25 % of shares possible withdrawal of RWE. The paper quoted sources in the BPC and those were Endesa, EGL, Cumerio Med AD who said RWE plans to redirect funds to the purchase of and ATEL. NEK confirmed the companies from the second NPPs owned by British Energy. The sources also implied group might be invited to submit initial offers, depending that German banks are not willing to fund the project due on the outcome of negotiations between NEK and compa- to ecology and technology issues. This was demented by nies from the first group. minister of economy and energy, Petar Dimitrov. After deadline of the tender for 49%, EDF (first group) did Later, in May, it was announced that deadline has been set not submit the bid. The tender procedure included evalu- for 23rd of June. The original deadline was extended by 24 ation of bank guarantees, the readiness to purchase elec- days at the request of two finalists, NEK said. Minister Dim- tricity from new NPP in relation to the timeframe, quantity itrov said two candidates had demanded two additional and destination of purchased electricity (i.e. to domestic 15 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

weeks, and they were given three. Commenting earlier of RWE Jurgen Grossman explained in a letter submitted news regarding joint bid of RWE and Electrabel, minister to Bulgarian officials that RWE decided to withdraw after said that the state would sell minority stake only to one deadlines for key stages of the project were not met. RWE shareholder. After bid submission and preliminary evalua- was not bound to pay penalties if it decides to leave the tion in August, minister Dimitrov called both sides for bid project. improvement. According to minister, some terms in the bids are not mandatory and some are against the interest Prime Minister Boyko Borisov said the current government of the country. done everything to save the project, but the former government failed to do its job. After winning in the elections, In the beginning of October 2008, minister Dimitrov con- the new government accused former government on bad firmed that German RWE has outbid Electrabel and will be management and on poor judgment of project’s cost. New selected as strategic partner in NPP Belene project. RWE government more than once said that cost should rise up will acquire 49 % stake in the project and it will be obliged to 10 billion EUR, instead of planned amount of 4 billion to invest 1.275 billion EUR in new company and to pay 550 EUR. million EUR as a premium to the majority owner of the NPP, the NEK. According to RWE’s bid, the premium of 550 According to estimations, selection of new strategic part- million EUR could be increased in case of rise of consumer ner could delay the project by year and a half. Deputy Min- prices in EU. According to stipulations, the premium would ister of economy Maya Hristova announced that tender for be exclusively used for covering NEK’s capital expenses in selection of the consultant that will prepare new analyses Belene project. RWE would also provide 300 million EUR of the project and procedure for selection of new investors loan for ordering the equipment for the NPP. In the same should take place in couple of months. The government time, RWE offered to provide corporate loan of 300 mil- earlier said it would reduce its stake in the project down lion EUR for payment of operational costs and purchase to 20-30 %. In addition, the government said it was not of equipment. According to abovementioned data, RWE ready to provide any kind of guarantees for loans for the would provide 2.125 billion EUR for the project. According project. to official estimations, the cost of the project should reach 4 billion EUR. NEK’s stake would be secured through fixed After RWE decided to abandon the project in October 2009, assets at the site of NPP and premium paid by RWE. It was the idea of hiring the consultant emerged. Soon after, in decided that agreement between NEK and RWE would be December 2009, BEH announced it would start tender signed by the end of October 2008, while the new com- procedure for selection of consultant in the project. The pany should be established in November. future consultant will be in charge for restructuring the project in financial way, for preparing the new sharehold- In November 2008, signs of possible withdrawal from the ers structure that will allow participation of new investors, project became visible. Signing the agreement, which was and for conducting the procedure for selection of strate- scheduled for the end of October, was moved to spring gic partner. Also, in that period, government announced 2009. Also, German papers said that Supervisory board of possible reduction of its share from 51% down to 20-30%, RWE could further delay decision for officially joining the possibly as measure to attract investors. Also in December project. The sources imply that RWE wants to make sure 2009, Russia proposed to provide temporary financing for that project was not risky, but also to wait for the develop- construction of NPP, for following 24 months in order not ment of global financial crisis. Later in November, RWE in- to halt the project until the new strategic partner was se- vited Electrabel to take part in the project, but in February lected. In return, Russian side should become shareholder 2009, Electrabel rejected this offer. in the project. According to proposal, Russia could acquire 15 % stake in Belene project. In December 2008, NEK and RWE signed agreement for establishment of joint venture company that will be in charge In February 2010, Bulgarian PM Boyko Borisov said that for construction and operation of nuclear power plant NPP NPP Belene would be built only if the project was fully re- Belene. But, final agreement signing was delayed. In June structured. Borisov said that experts have been trying to 2009, local press reported that strategic partner in Belene find the way to restructure the project. According to PM, project, German RWE, would probably wait after elections enormous funds have been wasted in the project so far. The for EU parliament, elections in Germany and elections in uncertainties regarding Bulgaria’s position in the project Bulgaria to reach final decision on its future steps in the for construction of NPP Belene again came in focus in the project. During the shareholders assembly of RWE in mid second half of February 2010 after minister of economy, April, Belene project was criticized because of seismic risks. energy and tourism Traycho Traykov and vice prime minis- In the same tame, RWE confirmed negotiations with Inter ter and minister of finances Simeon Djankov spoke before RAO and Fortum the national parliament. The parliament inquiry was initiated by rightist parties, which are against Belene project. On October 28 2009, after several months of rumors and Vice PM Djankov said that state should not invest any more contradictory information, German RWE decided to pull funds nor it would provide state or corporate guarantees out from the project for construction of NPP Belene. CEO for Belene project.

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Minister Traykov said to the parliament that Bulgaria would In November, Bulgaria sent the official invitations to Serbia complete the project without investing a cent more. Ac- and Croatia to take part in NPP Belene, projects, where two cording to him, if Bulgaria decides to develop project in countries were offered 1-2 % stake. Prime minister of Bul- cooperation with Russia, Bulgaria will hold 51 % stake in garia Boyko Borisov sent the letters of invitation to prime the project, since Bulgaria has invested some 1 billion EUR minister of Croatia Jadranka Kosor and president of Ser- in the project so far. Minister Traykov said that Russian loan bia Boris Tadic. Prime minister of Croatia Jadranka Kosor proposal, which does not require state guarantees or guar- said that Croatia would not accept invitation of her Bul- antees from NEK, was one-time opportunity. According to garian counterpart. On the other hand, minister of energy Traykov, Russian loan would be in fact construction loan. and mining of Serbia Petar Skundric said that Serbia was Russia will repay its loan from the profit of the NPP, and it interested in principle in Belene project, where final deci- is the risk Russia would take, minister said. However, both sion will be reached after completing the feasibility study. Bulgaria and Russia will be obliged to sell part of its share However, minister could not say when the decision would in the project after selecting the strategic partner, minister be reached. Also, Serbian media speculate that Serbia said. Minister Traykov said that future NPP would not sign could be interested in acquiring 5-7 % in Belene project or long-term electricity sale contracts, which is another risk even 10-15 %. Also, Macedonia has shown interest in NPP that future investors must take. However, Russia recently Belene more than once. said it was interested in acquiring the stake in NPP Belene, where new power plant should be profitable in free mar- Recently, Bulgarian media announced that source from ket. the government of Bulgaria said that German Siemens would be the most likely strategic partner in the project In March 2010, six companies have submitted the bids in for construction NPP Belene. The government of Bulgaria the tender for consultant for NPP Belene project: HSBC, So- did not confirm the rumors published by media, while Sie- ciete Generale, KPMG in a consortium with McGuire, Roth- mens did not comment the news. The rumors were backed schild, Argil, and Ernst & Young. Short-listed bidders were by the statement of PM Boyko Borisov who said that gov- invited to submit final bids and it was expected that the ernment has found a German company to become stra- consultant would be selected in mid June. In November tegic partner in the project and he refused to reveal the 2010, UK based bank HSBC was selected as a consultant in name of the company. Two other high Bulgarian officials, the project. Minister Traykov said that consultant would be Minister Traykov and speaker of the national parliament obliged to update financial assessments of the project, to Tsetska Tsacheva, also announced that news regarding propose new model for financing and to attract investors. strategic partner in Belene project would be published soon. Minister Traykov said that recent visit of PM Borisov In April 2010, Minister Traykov said that Russian offer for to Bavaria was related to finding the strategic partner in funding the construction of NPP could be accepted after Belene project. selection of strategic partner. Traykov said that Russian side has been informed about this. Several days before this But, in the end of November, during the energy confer- statement of Minister Traykov, deputy minister of econo- ence “Energy without Frontiers” in Sofia, Bulgaria and Rus- my, energy and tourism Maya Hristova said that Bulgaria sia surprisingly signed Memorandum of understanding did not ask nor it would accept Russian loan for Belene regarding establishment of joint venture company for con- project. Hristova said that Bulgaria would ask from EU in- struction of NPP Belene. During past 12 months, Bulgaria vestors to participate in the project. more than once refused offers of Russia for partnership in the project or for providing the loan. The MoU was signed on the sidelines of the conference by the CEO of Rosatom In June 2010, Prime Minister Boyko Borisov said that Bul- Sergey Kiriyenko and CEO of NEK Krasimir Parvanov on No- garia would freeze construction of NPP Belene until the vember 30. Rosatom is mother company of ASE. new strategic partner was found. Borisov once again criticized his predecessor Sergey Stanishev on promising that MoU consists of two agreements; one signed by NEK, Ro- project would cost only 4 billion EUR. According to Bori- satom and state-owned Finish energy company Fortum, sov, the project would cost even 13 billion EUR. PM Bori- and the second, signed by NEK, Rosatom and French engi- sov said during the meeting with EU ambassadors that neering company Altran Technologies. Fortum and Altran Belene project would be immediately restarted if there expressed interest in acquiring at least 1 % stake in the were investors interested in it. On the other hand, minister project. of regional development Rosen Plevneliev explained that Belene project would be frozen but it would be also re- NEK CEO, Mr. Krasimir Parvanov said that NEK should pre- vamped. Bulgaria wants to build NPP Belene, but without serve at least 20 % stake in the project, but in case of lack investing the state money, minister Rosen said. But soon of investors, NEK would fund 51 % stake of the project. after, Minister Traykov explained that project is not frozen, However, this was contradictory to the statement of PM yet the government will not invest any funds until new Borisov who said that state would not invest money from strategic partner was found. the budget in Belene project. CEO of Rosatom, Sergey Ki- riyenko and minister Traykov confirmed that maximum

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construction price for NPP Belene will be set at 6.298 bil- Medvedev added that South stream project would be cer- lion euros, regardless of inflation rate. Mr. Kiriyenko also tainly implemented, despite this potential disagreement said that future joint venture company would try to attract with EU. Medvedev said that Gazprom does not fear of investors from Europe. Nabucco project, because it could not be competitor to South stream due to different suppliers and customers. Minister Traykov added that all signed agreements were non-mandatory and signs of good will of all interested Russian media said that Russia’s business and political of- parties. According to MoUs, in this stage, NEK will maintain ficials are against third energy package principles in South 51 % stake in the project, Fortum and Altran Technologies stream project, since this would imply considerable reduc- should own 1 % each, while Rosatom should control re- tion in profit. maining stake. In the same time, minister of economy, energy and tour- News: ism of Bulgaria Traycho Traykov announced that shareholders in South stream project would demand from EU to allow them to reserve 50-70 % of pipeline’s capacity and EU demands third party access in South stream to limit third party access, despite EU regulations. Minis- project (Region) ter reminded that EU made such an exception in case of Nabucco pipeline, in which Bulgaria also participates. Spokesperson of EU energy commissioner Günther Oet- § § § tinger, Marlene Holzner, announced that Russia and Bul- garia should introduce changes in joint venture agreement for South stream project in order to comply with EU regulations. Holzner said that agreement should include Request for electricity price increase (Albania) article that would guarantee third party access to energy companies from EU. Albanian elctricity producers, distributors and transmisi- son company have asked the Regulatory Agency for Ener- European commission demands that that JV agreement gy (ERE) to raise electricity prices by an average of 12% (8 has to be in accordance to third EU energy package, which eurocent/kWh). The companies have also insisted on dif- implies competition on energy market, i.e. third party ac- ferentiating prices depending on the consumer : residen- cess, and separation of transport energy networks from tal, businesses, and public users. energy producers. Each company is seeking an increase based on their expec- As recalled, on November 13, during the visit of Russian tations of revenues, investments, losses in the system and Prime Minister Vladimir Putin to Bulgaria, Bulgarian energy maintenance. CEZ, owner of distributon company OSSH, holding (BEH) and Russian Gazprom signed the joint ven- previosly requested price increase, but ERE rejected this ture agreement for construction of South stream pipeline request. A decision by the ERE is expected to be reached in Bulgaria. According to the JV agreement, two countries on December 7th. Industrial companies want the regula- will hold equal stakes in the project. tor to ignore the request, saying CEZ must first improve its quality of supply and services. During the meeting in Sofia, Russian Prime Minister Vladimir Putin said that implementation of the third en- In January 2010, CEZ, has filled a lawsuit against Albanian ergy package could increase energy prices. Putin said that Regulatory Agency for Energy (ERE), after a decision to the fact that owners of the transport infrastructure would rise the electricity price was rejected. CEZ had requested a not have access to the infrastructure, while large number 24% increase in the price of electricity for 2010, while ERE of companies, which are not involved in energy produc- approved only 13%. tion, will be given access, will lead to increase in energy § § § prices.

Commenting the demands of EU in South stream project related to the third energy package, CEO of Gazpromex- Sale of four HPPs announced (Albania) port Alexander Medvedev said that there are several con- tradictories in the package. He added that Russia approved Albanian minister for economy and energy, Mr. Ilir Meta, establishment of the workgroup, which would oversee has announced sale of four Hydro Power Plants (HPPs). potential third party access in South stream project. CEO Two HPPs on river Mat will be offered for sale (HPP Ulza called EU to clarify what would third party access mean in and HPP Skopet), and two HPPs on river Bistrica, in south- this case. ern Albania.

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HPP Ulza was commenced in 1958, and it was first HPP on The worth of the contract is 1.98 million euros. Accord- Mat cascade, with 25 MW output. HPP Skopet is second ing to the main agreement for funding the construction HPP in Mat cascade, with slightly lower output, 24 MW. of wind farm Mesihovina, KfW bank will provide 1 million euros, while EP HZHB will provide rest of the funds for con- § § § sultancy services.

The consultant will be obliged to prepare the project doc- TPP Vlore not to produce electricity for at least 12 uments, to assist in and to implement purchase of equip- months (Albania) ment and services, to advise in signing contracts with suppliers, to monitor implementation of these contracts, and to put wind farm in service. According to latest announcements, commercial operation of TPP Vlore (Valona) could be delayed for 12 months, The future wind farm Mesihovina will have 22 generators due to malfunctions. Also, Regulatory Agency for Energy and 44 MW output. It will be the first wind farm in Bosnia (ERE) performed a study, which concluded that operation and Herzegovina. The project will be funded by 72 million of TPP would be more cheaper if it is altered to natural gas. euros loan provided by KfW Bank (loan agreement signed ERE has evaluated three possible options of TPP Vlore: in February this year) and by 6 million euros provided by EP HZHB itself. The farm should produce 115 GWh of elec- 1. Diesel operation – 0.183 USD/kWh tricity per year, where emission of CO2 should be reduced 2. LNG operation – 0.118 USD/kWh by 100,000 tons. 3. Natural gas operation – 0.110 USD/kWh The foundation stone for the wind farm Mesihovina was In August 2010, newly constructed TPP Vlore had malfunc- laid down in September. According to the latest plans, the tion in cooling system, and it had to be shut down, during wind farm should be operational in 2013. Tender for con- its test period. KESH did not issue permit for connection of struction works should be published in spring 2011. newly constructed TPP into system, since test period did not pass through. § § § Power plant has 97 MW output and 112 million dollar project was financed by the World bank (25 million dollars), EBRD (37.5 million dollars) and KESH (12.6 million BH Gas to provide natural gas for future TPP Zenica dollars). TPP has been constructed by Maire Engineering (Bosnia and Herzegovina) (part of Italian Maire Technimont). It is expected that TPP Vlore could cover 20% of Albanian electric energy deficit. In mid November, in the premises of Zenica municipality, general manager of natural gas supplier BH Gas, Almir Be- TPP Vlore is oil fired, and it can be connected to natural carevic, director of KTG Zenica, Haris Masic, and represent- gas pipeline and easily altered to gas fired. Oil supply will atives of KTG AG Lugano, Mose Franco and Franco Fenini, be performed by a newly opened Vlore terminal, which is signed the pre-investment contract for delivery of natural located only 6km from TPP Vlore. gas to future CCGT thermal power plant (TPP) Zenica.

§ § § In May this year, BH Gas and KTG Zenica signed the Memo- randum of understanding regarding delivery of 350 million cbm of natural gas for the future TPP. EP HZHB signed contract for consultancy services for wind farm Mesihovina (Bosnia and Herzegovina) Head of BH Gas, Almir Becarevic said that BH Gas would build necessary compressor substation until the beginning of operation of the TPP, where project would be funded by In the end of November, Power utility of Herzeg Bosnia BH Gas itself. Becarevic said that operational capacity of (EP HZHB) and German company Fichtner GmbH & CO KG the network would be increased from 650,000 million cbm signed the contract for providing the consultancy services up to 1 billion cbm. in the project for construction of wind farm Mesihovina. German company is the leader of the consortium, which Technical director of KTG AG Lugano, Mose Franco, said was established with local companies Habitat and Pro- that preparations for the project were going as planned. jekt. He said that construction works should start in spring 2011, while the TPP should be built in 2013. The procedure for evaluation of bids and selection of the consultant took part in period March-November 2010. EP The future power plant should have 250 MW of electricity HZHB said that 13 companies from Europe and USA sub- output and 170 MW of heat output, where the cost of the mitted bids. project is estimated at 250 million euros.

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The project in Zenica was initiated by signing the Mem- has been processed over 2 million tons of crude oil since orandum of understanding in March 2009. In June 2009, November 27, 2008. KTG AG Lugano and the municipality of Zenica established joint venture company KTG Zenica for the purpose of the This was the date when refinery was restarted by the new project. KTG AG owns 75 % of the stake in the project, while majority owner Russian NefteGazInkor, a subsidiary of Rus- municipality owns the rest. After initial disagreements, sian state-owned oil company Zarubeznfet. the project has acquired support from the government in March this year. However, the government said it would NefteGazInkor has purchased majority stake in Oil industry not provide guarantees for long-term electricity purchase of Republic of Srpska (RS), i.e. in Oil refinery Brod, fuel oil contracts. refinery Modrica and in fuel distributor Petrol in February § § § 2007. In March this year, NefteGazInkor reorganized all of its companies in RS under the brand name Nestro.

EP HZHB met annual production target (Bosnia and Deputy general manager of Optima Group, which is the Herzegovina) operator of the Brod refinery, also reminded that in the abovementioned period, the reconstruction of the facilities in the refinery also took place, so that oil products Power utility of Herzeg Bosnia (EP HZHB) said it had met should meet European environmental standards. annual production target in mid November. Compared to the same period last year, electricity production was 30 % The construction of own laboratory, the most sophisticat- higher, according to the general manager Matan Zaric. ed in whole Balkans, is the best prove that Nestro Group was committed to reaching high quality of products and Zaric also said that EP HZHB had posted 11.9 million eu- environmental protection, Scepanovic said. ros of profit in 2009, while the profit reached 12.2 million euros in the first half of 2010. Head of EP HZHB said that So far, overall investments of new owner in all three oil main reasons for favorable business results were favora- companies in RS reached some 280 million euros, out of ble hydrology, high availability of power plants and good which 80 million euros were invested for reconstruction of management. the refinery.

EP HZHB employs some 1,800 people and it is among 10 By 2015, Nestro Group plans to invest some 800 million eu- biggest companies in the country. ros for reconstruction and modernization of existing facilities, and for construction of new production facilities and § § § transportation infrastructure, Scepanovic said. According to him, in the last two years, overall export sales of the refinery reached 120 million euros, where oil products have EP HZHB and Aluminum factory signed annual supply been exported to countries of former Yugoslavia as well as contract for 2011 (Bosnia and Herzegovina) to other countries in Europe.

General manger of Power utility of Herzeg Bosnia (EP Scepanovic confirmed that regular annual maintenance HZHB) Matan Zaric and director of Aluminum factory in of the refinery should be completed on December 1, so Mostar, Ivo Lasic, have signed annual electricity purchase that refinery should operate continuously in the next 350 and sale contract for 2011. The worth of the contract is 50 days. million euros. Aluminum factory is the largest industrial customer in Bosnia and Herzegovina (BiH). Minister of industry, energy and mining of RS, Slobodan Puhalac believes that restart of Brod refinery was one of The company decided to purchase electricity as tariff cus- the biggest projects in not only the RS, but also in the re- tomer, so that electricity prices will be in accordance with gion. Puhalac confirmed that government would continue tariffs set by Regulatory Commission for Electricity in Fed- to support future investments in three oil companies. eration of Bosnia and Herzegovina (FERK). § § § § § §

HPP Visegrad to post record production in 2010 Brod refinery processed 2 million tons of oil in two- (Bosnia and Herzegovina) year period (Bosnia and Herzegovina) Since the beginning of the year until the end of Novem- In the end of November, deputy general manager of Opti- ber, hydropower plant (HPP) Visegrad (315 MW), operated ma Group, Slavko Scepanovic, said that oil refinery in Brod by Power utility of Republic of Srpska (ERS), has produced

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1.055 TWh of electricity, which was 26 % higher than up to 908 MW and construction of desulphurization fa- planned. The management of HPP believes that this year’s cilities. output should be the highest ever. § § §

In the end of November, HPP celebrated 21 years in operation, during which overall electricity production reached The first photovoltaic park put in service (Bulgaria) 18 TWh. § § § In the second half of November, the photovoltaic park near the city of Ihtiman was put in service, being the first such facility in the country. Russian Inter RAO wants to takeover Enel’s assets (Bulgaria) The project named Betapark, has been developed by Chinese company Polar Photovoltaic and the investment According to Russian media, Russian state-owned energy company Wiscom Systems, which own 90 % stake in the company Inter RAO is considering purchase of assets of project. The rest is owned by Bulgarian company Sun- Italian Enel in Bulgaria, where the main acquisition would Service. The majority investors have invested 5 million be 73 % stake in coal-fired thermal power plant (TPP) Mar- euros in the project. itsa Iztok 3 (908 MW), along with wind farms Kamen Bryag and Shabla (overall output of 42 MW). The power output of the park is 2 MWp, and it should produce some 2.5 GWh of electricity per year. The park Russian media said that Inter RAO could offer to Enel either was built in period of seven months by SunService, which its own shares or the controlling package in Enel OGK-5, was the main contractor in the project. one of the largest electricity producers in central Russia. Russian media also said that head of Inter RAO, Boris Ko- § § § valchuk, confirmed these negotiations with Enel. The state of Russia currently holds 26.4 % in Enel OGK-5, while Enel owns 56.4 %. Inter RAO is expected to takeover govern- Government to preserve TPP Brikel in operation ment’s stake in the beginning of the next year. during heating season (Bulgaria) If Inter RAO takeover Enel’s assets, it will become one of the biggest electricity producers in Bulgaria with 12 % Press office of the government of Bulgaria said that coal- market share. fired thermal power plant (TPP) Brikel (200 MW), owned by businessman Hristo Kovachki, will remain in opera- According Italian media, Inter RAO is the favorite among tion with minimal output in order to ensure heat supply five companies that have expressed interest in purchase of for Galabovo. TPP Maritsa Iztok 3. Earlier, Austrian EVN confirmed it has been involved in negotiation with Enel regarding purchase The government said that this decision was reached of majority stake in the TPP. Media also reported that US since it was not possible to find alternative solution for company AES, British company International Power and heat supply in Galabovo in short-term. Czech CEZ also expressed interest for the purchase. After the latest decision, TPP Brikel should be put out of The sale of TPP Maritsa Iztok 3 was the first time announced service until April 2011 at the latest. The operation of the by CEO of Enel Fulvio Conti in March, who said that Enel TPP will be monitored by the officials from ministry of was unsatisfied with company’s performance on Bulgar- environment during the heating season, in order to mini- ian market. At the time, sources said that Enel decided to mize violation of environmental standards. sell its assets in Bulgaria (and in Spain) in order to reduce accumulated debts. According to original plans, due to environmental concerns, outdated TPP Brikel should have been put out of In September, Conti said that sale of 73 % stake in the service after expiration of 20,000 hours in operation, i.e. plant should be completed during fall 2010. In October, in April this year. In the same time, until the end of 2007, Enel said it expects to acquire some 600 million euros from the state should have been built replacement capacity the sale of majority package in the TPP. In the same time, in Galabovo municipality for the purpose of heat supply. government of Bulgaria announced it could be also ready to sell its 27 % stake in TPP Maritsa Iztok 3. The deadline for shutting down the plant was set at Sep- tember 1, but TPP remained in operation, thus breaching In the past several years, Enel has invested some 700 mil- the regulations. The TPP continued to operate even after lion euros for modernization and upgrade of the TPP. The authorities set ultimatum for closing the TPP until the upgrade included increase of power output from 840 MW end of September, which caused protests of employees

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in TPP Brikel. After protests, government started to recon- of NEK in charge for management of transmission network, sider options for prolonging the operation of the TPP. will be separated from NEK.

On the other hand, Hristo Kovachki promised it should According to first option, new BEH should be established start construction of desulphurization installations in TPP by NEK, ESO, Bulgargaz and Bulgartransgaz. Brikel. In mid November, the businessman provided bank guarantees of some 30 million euros for the project. The second option envisages establishment of two “BEHs”, Nikolov said. The first company would include producers The ministry of environment said that providing of bank and suppliers, NEK and Bulgargaz, while the second com- guarantees was just one of the conditions that TPP needs pany would include network operators, ESO and Bulgar- to meet in order to continue to operate. Ministry said that transgaz. TPP Brikel should also provide guarantees for purchase of carbon credits (some 500,000 tons of CO2 in period of The restructuring of BEH should be completed by March two years) and for payments of potential penalties due to 2011, when Third energy package regarding liberalization breach of EU environmental regulations. of energy market in EU should be put in force.

§ § § § § §

Government considers restructuring of BEH; NPP Intergovernmental agreement for natural gas pipeline Kozloduy and TPP Maritsa Iztok 2 might rejoin with Giurgiu – Ruse signed (Bulgaria & Romania) NEK (Bulgaria) In the end of November, Bulgaria and Romania signed the Bulgaria and European Commission (EC) have been har- intergovernmental agreement for construction of inter- monized two final options for restructuring of Bulgarian connection natural gas pipeline Giurgiu (Romania) - Ruse energy holding (BEH). This was confirmed by the member (Bulgaria). of parliament of Bulgaria and member of ruling party Val- entin Nikolov. Nikolov is also the member of parliamentary The agreement was signed by minister of economy of Ro- commission for economy, energy and tourism and mem- mania Ion Ariton and minister of economy, energy and ber of task force in charge for preparation of new energy tourism of Bulgaria Traycho Traykov during the energy law. conference in Sofia called Energy without Frontiers. The agreement will speed up the project, which seemed stalled In 2008, former socialist-led government decided to es- a month ago. tablish mega structure named BEH, which incorporated all major state-owned energy companies in the country. Im- Natural gas transporters Bulgartransgaz and Transgaz have mediately after wining the elections, new right-wing gov- completed technical documentation for the project, so ernment called BEH a parasite structure, which needed to that investment decision should be reached by the end of be shutdown. However, so far, new government failed to the year. Sources said that that project was speed up in or- reach final decision on future of BEH. der not to lose EU funding. EU has allocated 8.9 million for the project under the EU economic recovery plan related According to plans announced in the beginning of 2010, to energy projects. BEH should have been transformed into two companies, one involved in electricity sector and the second involved The pipeline will be 23.8 km long (8.4 km in Romania and in natural gas sector. 15.4 in Bulgaria) and its annual capacity should be 1.5 billion cbm. Overall cost of the project is estimated at 24 mil- In this moment, members of BEH are nuclear power plant lion euros, where Transgaz should invest 10 million euros (NPP) Kozloduy, National electric company (NEK), thermal and the rest should be invested by Bulgartransgaz. power plant (TPP) Maritsa Iztok 2, Bulgargaz, Bulgartrans- gaz and Bulgartel. § § §

MP Nikolov confirmed that both abovementioned options for restructuring of BEH envisage rejoining NPP Kozloduy Bulgaria and Russia unexpectedly signed and TPP Maritsa Iztok 2 with NEK. This move should secure Memorandum of understanding for construction of competitiveness of NEK, Nikolov said. In this moment, NPP Belene, Rosatom to become shareholder in the NEK operates most of the hydropower plants (HPPs) in the project (Bulgaria) country and owns minority stake in TPP Maritsa Iztok 3. On the other hand, Electric system operator (ESO), a subsidiary In the end of November, during the energy conference En- ergy without Frontiers in Sofia, Bulgaria and Russia surpris- 22 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

ingly signed Memorandum of understanding regarding ernment lied on original construction price for NPP Belene establishment of joint venture company for construction and asked him to apologize for that. The original price for of nuclear power plant (NPP) Belene (2,000 MW). construction of NPP Belene was set at 4 billion euros by the agreement signed in 2006. Since the last year, when new right-wing government of Bulgaria was elected and after German RWE decided to Kiriyenko did not apologize but he said that mutual mis- abandon the project, Bulgaria and Russia were in deadlock take related to not specifying the formula for incorpora- regarding NPP Belene, mostly over the project’s costs. In tion of inflation rate in final construction price, was to be the same time, Bulgaria more than once refused offers of blamed for the dispute. Russia for partnership in the project or for providing the loan. Because of that, Russia decided to offer new, fixed price for construction of NPP Belene, while Russia proposed to The abovementioned MoU was signed on the sidelines of acquire 40-50 % stake in the project. CEO of Rosatom said the conference by the CEO of Rosatom Sergey Kiriyenko that government of Bulgaria was not willing to give out and CEO of National electric company (NEK) Krasimir controlling package in the project. Parvanov on November 30. Rosatom is mother company of AtomStroyExport (ASE), a selected constructor of NPP Kiriyenko also said that future joint venture company Belene. would try to attract investors from Europe. In September or October 2011, the construction works could start, while The MoU was promptly prepared after the meeting be- the first unit should be completed in 2016, Kiriyenko said. tween Kiriyenko and Prime Minister of Bulgaria Boyko Bori- He believes that project should be repaid in 20 years. Kiriy- sov, which took place on November 30. Kiriyenko was the enko also said that Russia is ready to provide nuclear fuel first to announce that MoU should be signed. for future NPP during its entire operational life of 60 years.

MoU consists of two agreements; one signed by NEK, Ro- § § § satom and state-owned Finish energy company Fortum, and the second, signed by NEK, Rosatom and French engineering company Altran Technologies. Fortum and Altran INA opened bids for import of natural gas in 2011 expressed interest in acquiring at least 1 % stake in the (Croatia) project.

CEO of NEK Krasimir Parvanov announced that project On November 18, Croatian oil industry (INA), i.e. its subsidi- company should be established in the next four months, ary involved in natural gas trade and supply, the Natural when stakes in the project should be further agreed. Dur- gas, opened bids in the restricted tender for import of nat- ing another six months, the final agreements between par- ural gas in the next year. ties in the project will be signed. Parvanov said that NEK should preserve at least 20 % stake in the project, but in INA did not reveal the bidders, but sources said that INA in- case of lack of investors, NEK would fund 51 % stake of the vited three companies to submit bids, Gazprom, E.ON and project. However, this was contradictory to the statement Eni. (Eni and INA jointly operate natural gas wells in Adri- of PM Borisov who said that state would not invest money atic). Media also speculate that Austrian OMV might have from the budget in Belene project. submitted the bid.

Minister of economy, energy and tourism of Bulgaria, Tray- This was the first time in history that INA would purchase cho Traykov explained that all signed agreements were natural gas through tender process. In the last 30 years, non-mandatory and signs of good will of all interested INA has been exclusively importing natural gas from Rus- parties. According to MoUs, in this stage, NEK will main- sia. The five-year supply contract with Gazprom expires in tain 51 % stake in the project, Fortum and Altran Technolo- the end of 2010. Croatia has been importing some 40 % of gies should own 1 % each, while Rosatom should control its natural gas consumption, or some 1.1 billion cbm per remaining stake. Bulgarian officials reminded that Serbia year. also expressed interested in acquiring up to 5 % stake in the project. E.ON’s sales director for Europe, Herald Draub, confirmed that his company wants to become natural gas supplier CEO of Rosatom, Sergey Kiriyenko and minister Traykov for Croatia. If it wins the contract, E.ON will deliver natural confirmed that maximum construction price for NPP Be- gas from its portfolio in Hungary and Austria, Draub said. lene will be set at 6.298 billion euros, regardless of inflation In the same time, he denied that E.ON would be interested rate. in takeover of Natural gas.

The same day when MoU was signed, PM Borisov asked INA, in which Hungarian MOL holds the largest stake and from Kiriyenko to admit that both Russia and former gov- managerial rights, decided to acquire necessary natural gas

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on free market instead of prolonging the long-term natural HEP to publish tender for construction of HPP Ombla gas supply contract with Gazprom. However, regardless of in December (Croatia) future supplier, INA will certainly import, in significant ex- tent, natural gas from Russia, since all other largest suppli- Local media reported that Croatian power utility (HEP) ers in Europe purchase natural gas from Russia. should publish tender for construction of hydropower plant (HPP) Ombla in December. The HPP will be built near Local media reported that MOL’s decision to purchase Dubrovnik, its power output will be 68 MW, while annual natural gas on free market was against the whishes of the production should be 225 GWh. government, which wanted to prolong supply contract with Gazprom and even to become part of South stream The general design, technical documentation and envi- project. ronmental impact study for the project have been already § § § made. In this moment, obtaining of necessary permits is under way.

Sources: INA to continue to operate natural gas supply HPP Ombla should be the second underground HPP in the and trade division (Croatia) World. The HPP should have underground accumulation lake and underground dam. Overall cost of the project is estimated at 110 million euros. According to previous in- In the second half of November, government of Croatia formation, the interest for the project was expressed by and Hungarian MOL, the holder of managerial rights in company Union D, run by investors from London, Russia Croatian oil industry (INA), have continued negotiations and Israel. regarding takeover of INA’s subsidiary Natural gas by the government. The takeover should have taken place until HEP also plans to publish tender for construction of ther- December 1 in accordance to the Annex to the Main agree- mal power plant (TPP) Plomin 3 in March 2011. The TPP ment on natural gas business signed by the government should have output of 500-800 MW. HEP earlier said it want and MOL in December 2009. to build new unit through strategic partnership, similar to the project in TPP Plomin 2, which was jointly developed In mid November, minister of finances Ivan Suker con- with German RWE. Germany company was seen as one of firmed that government most likely would not takeover the potential investors in TPP Plomin 3. Natural gas, due to high potential losses until introduction of market based natural gas prices. He also added that § § § natural gas prices had to rise, but he did not say when. The sources said that that increase in prices might reach 10 %.

Minister Suker also said that government has been consid- Invitation for capacity reservation on new ering introducing subsidies for natural gas bills for under- interconnection natural gas pipeline toward Hungary privileged customers. In Croatia, there are 650,000 house- (Croatia) holds connected to natural gas grid. In the end of November, state-owned natural gas trans- According to the latest information, new agreement be- porter Plinacro officially invited interested parties to tween the government and MOL will be signed for year reserve transmission capacity on recently completed period. INA should continue to operate natural gas sub- interconnection natural gas pipeline Donji Miholjac sidiary, but under new conditions, and it will be allowed (Croatia)- Dravaszerdahely (Hungary). The capacity re- to increase natural gas prices, but in cooperation with the quests could be submitted starting from December 1. government. The first increase in prices should take place in the beginning of 2011. Plinacro said that the inspections were completed on Croatian part of the pipeline (80.5 km long), while Hungar- In an interview to Hungarian media, char of the Manage- ian part of the pipeline should be completed very soon, ment board of MOL, Zsolt Hernadi said that MOL could so that pipeline should be put in commercial operation in agree to continue to operate natural gas divisions in INA, January 2011. but only if the future operations do not bring losses to MOL. Asked what if government and MOL failed to reach Through this pipeline, Croatia will get second route for im- an agreement until December 1, Hernadi said that some port of natural gas. In this moment, Croatia has only one kind of compromise should be agreed. interconnection pipeline toward Slovenia.

§ § § The new pipeline will have annual capacity of 6.5 billion cbm, and overall cost of the project (including internal network in Croatia and Hungary) will reach 395 million euros.

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§ § § ELEM: revitalization of 6 HPPS and construction of wind park (Macedonia)

PPC Q3 profit fell 30% (Greece) KfV bank has provided 60 million EUR loan to ELEM, Mac- edonian electricity production utility, which will be spent for revitalization of Hydro Power Plants (HPP) and construc- Public Power Corporation (PPC), Greek largest electric- tion of fist wind park in Macedonia. 27.1 million EUR of the ity producer, has posted 30% reduction in profit for Q3 of loan will be used for revitalization of HPPs Spilje, Vrutok, 2010. PPC net profit dropped to 520.2 million EUR. Vrben, Raven, Globocica and Tikves. This revitalization will increase output of 6 HPPs for 18.31 MW, while annual pro- PPC said that profit drop was resulted by higher fuel costs duction will be increased for 50 GWh. and lower power consumption. 32.9 million EUR will be spent for construction of wind park. “In the third quarter, market loss from clients yielding high Remaining 42 million EUR will be provided from ELEM own profit margins intensified,” Arthouros Zervos, PPC’s chief funds. Location is yet to be detirmined, but it will most executive officer, said in a statement. „PPC market share in probably be in near Bogdanci. This park could producte this customer segment fell to 87% from 90% in the previ- around 100 GWh annualy. ous quarter“ Zervos said. § § § Earnings before interest, tax, depreciation and amortiza- tion (EBITDA) declined 18% to 1.22 billion EUR. PPC paid 30% more for natural gas and 56% more for diesel fuel during the nine-month period, the company said. Macedonia invited to participate in Belene project (Macedonia) PPC said it will announce its business plan after the government releases its program. Bulgarian goverment has sent official letter to Macedonian goverment, regarding participation in NPP Belene project. “PPC is currently faced with important changes that impact Vice PM, Mr. Vladimir Pesevski said that goverment should both the regulatory framework of the energy market and detaily examine this offer and added that it is too soon to its operating model,” Zervos said. make decision. He also requested additional information related to project, ownership structure and involvement of § § § other parners.

„We must get familliar with all aspects of the project. In this TAP pipeline study underway (Greece) moment, we are not in position to give our final answer“, Mr. Pesevski said. § § § The consortium behind the Trans-Adriatic Pipeline (TAP) has launched a study in northern Greece to minimize the social and environmental impact of the planned project in the region along with any possible damage to the area cul- Recod production of HPP Globocica (Macedonia) tural heritage. From January 1st 2010 till mid November 2010, HPP Glabo- TAP, a pipeline which will transport natural gas from the cica has produced 252 GWh, which is record production Caspian region to Europe via Greece, Albania and Italy, will since it was put into operation in 1966. Previous record was bring together 28 experts over the next three months to 250 GWh, from 1986. Planned production for 2010 (181 examine the proposed route of the project, along with pos- GWh) was achieved in July. sible alternatives. TAP is a joint venture consisting of Swiss EGL, Norwegian Statoil and German E.ON Ruhrgas. HPP Globocica was designed and constructed with installed capacity of 42 MW and annual production of 191 “The engineers, geologists, seismic and logistics experts, GWh. as well as environmental and social professionals and cul- § § § tural heritage specialists, will survey various 2-kilometer wide corridors along the TAP route with a total length of 500 kilometers,” TAP official said in a statement. The routing optimization study has been completed for Albania and is Fifth package of SHPP locations (Macedonia) well advanced in Italy, the company added. Macedonian minister of economy, Mr. Fatmir Besimi, has § § § announced construction of new Small Hydro Power Plants

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(SHPP), offering new, fifth package of locations. Also, min- EPCG posted 21.3 million euros of profit in January- ister Besimi announced speed up of procedures. This state- September (Montenegro) ment was resulted by complains of investors regarding long administrative procedures, which caused realization Power utility of Montenegro (EPCG) had posted 21.3 mil- of only 65 SHPPs, from 400 offered locations. lion euros of profit in period January-September, which was 12.7 % higher compared to the same period last year. § § § The net profit from core activities reached 14.4 million euros (-23.3 %).

MOL interested in building the oil terminal According to data of Securities commission (SC), overall in- (Montenegro) come of the company reached 217.3 million euros (-3 %). In the same time, overall business expenses were reduced to 206.5 million euros (-0.9 %). In the end of September, Hungarian oil company MOL is interested in building the overall active capital of EPCG stood at 1.05 billion euros oil terminal in Montenegro, which would be used for oil (+0.5 %). supply in Montenegro and in neighboring countries. This was confirmed after the second meeting of Montenegrin- The state owns 55 % stake in EPCG, but Italian A2A, which Hungarian joint commission for economic cooperation, owns 43.7 % stake, holds managerial rights in EPCG ac- which took place in Montenegro in mid November. cording to privatization contract signed last year. The state secretary in ministry of international economic § § § affairs of Hungary and co-chair of the joint commission, Balasz Botoz said that MOL, in cooperation with Croatian INA, was interested in projects in oil and natural gas sector in Montenegro, i.e. in future oil and natural gas research- Government and Italian Terna signed the agreement es. for construction of submarine DC cable (Montenegro)

Botoz also said that that MOL was interested in privatiza- On November 23, minister of economy Branko Vujovic, tion of Montenegro’s state oil company Montenegrobo- chair of the Board of directors of Montenegrin transmis- nus. sion system operator (CGES), Zoran Djukanovic, and CEO of Italian transmission system operator (Terna), Flavio Cat- Minister of environment and spatial planning of Montene- taneo signed the agreement for construction of 400 kV gro and second co-chair of the joint commission, Branko submarine DC cable between two countries. The signing Gvozdenovic, also confirmed that Hungary has expressed ceremony was attended by Prime Minister of Montenegro interest in projects in oil and natural gas sector as well as Milo Djukanovic and minister of economic development in providing financial and technical assistance in energy of Italy Paolo Romani. efficiency projects. § § § The future 1,000 MW DC cable will be 450 km long, where submarine section will be 375 km long. The cable will be built between Tivat (Montenegro) and Pescara (Italy). Ac- CGES posted 4.7 million euros of profit in January- cording to the latest announcements, the construction of September (Montenegro) the cable should start next year, and it should be completed in 2015. In period January-September 2010, Montenegrin trans- Estimated cost of the investment is some 750 million euros. mission system operator (CGES) reported 4.7 million euros Terna is expected to provide 100 % of funds for construc- of profit. In the same time, company’s capital stood at 121 tion of the cable. In the same time, Terna will be allowed to million euros, while nominal share price reached 1.06 eu- acquire 22 % stake in CGES through recapitalization. The ros. The state is majority owner of CGES with 70 % stake. worth of the stake is estimated at 35 million euros. CGES operates 250 km of 400 kV lines, 370 km of 220 kV Minister of economy Branko Vujovic said that the latest power lines and 600 km of 110 kV lines. Montenegro has agreement created conditions for start of the project. He nine interconnection power lines. In this moment, the con- added that Montenegro would be entitled to 20 % of the struction of new 400kV interconnection power line toward capacity of cable, which should bring some 40 million eu- Albania is under way. ros of annual income to Montenegro. § § § In the same time, minister reminded that CGES would be obliged to fund construction of 400 kV power line Tivat- Pljevlja and high-voltage substation in Tivat (overall cost of

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70 million euros), which should be put in service in 2016. In Montenegro, the worth of the project was 12 million eu- Montenegro also wants to build other interconnection ros, and it included enlargement of high voltage substa- power lines in cooperation with Serbia and Bosnia and tion in Podgorica. The project was funded by KfW Bank. Herzegovina, minister Vujovic said. CEO of CGES, Dragan Laketic said that new interconnec- Asked about the site of future substation near Tivat, minis- tion will increase cross-border capacity, reliability and se- ter Vujovic said that exact location should be proposed in curity of supply and it will support development of elec- the beginning of December. He said that the workgroup tricity market on national and regional level. The new line has been analyzing these issues for several months. will also reduce transmission losses and congestions in the network, Laketic added. CEO of Terna, Flavio Cattaneo believes that construction of the cable would bring numerous benefits to Montene- CEO said that overall investments of CGES in 2010 should gro, in geopolitical and economic terms. Cattaneo remind- reach over 20 million euros. In the beginning of December, ed that worth of the investment accounts to one third CGES should complete construction works in Ribarevine of Montenegro’s GDP, so that project should create large high voltage substation, Laketic said. number of jobs in Montenegro. CEO believes that overall investments of Terna in Montenegro should reach 100 mil- § § § lion euros.

On the other hand, minister of economic development of EPCG signed 35 million euros loan contract with EBRD Italy Romani believes that, after the construction of DC ca- (Montenegro) ble, Montenegro would become energy hub of this part of Europe. In the end of November, European bank for reconstruction Ministry of spatial planning and environment of Montene- and development (EBRD) and Power utility of Montenegro gro confirmed that preparation of necessary documenta- (EPCG) signed the 35 million euros loan contract. The loan tion for the future DC cable toward has already begun. The was approved by EBRD in the end of October. ministry said it had adopted project’s task, which should analyze several options before proposing the best solution The loan will be used for the purchase of 69,000 modern regarding cable’s route and environmental impact. The electricity meters and related software. Overall cost of the documentation will be prepared until April 2011 and the electricity meters and related equipment and software will proposed solutions will be subject to public debate. reach 43.5 million euros, where the rest of 8.5 million euros will be provided by EPCG from its own income.

In the related news, local media reported that opposition The project should be implemented in period March 2011- parties in Pescara municipality, with support of several September 2014, it should lead to reduction of distribu- councilors from ruling parties, asked for urgent session of tion losses from 24 % down to 14 %, and it should assist in local parliament in order to reconsider plans for construc- increasing the bill collections. tion of 400kV DC cable Tivat-Pescara. The councilors said that launching the corruption investigation regarding this § § § project by the prosecution office of Pescara had shed the new light on the project. Opposition also said that the project was approved by the municipality without proper Government approved concession documentation for public debate and voting procedure, i.e. in non-transpar- HPPs on Moraca River (Montenegro) ent manner. § § § In the second half of November, government of Montene- gro adopted all necessary documents for construction of hydropower plants (HPPs) on Moraca River. The docu- 400kV interconnection line toward Albania in trial ments envisaged three scenarios for construction of four operation (Montenegro) HPPs (Andrijevo (127 MW), Raslovici, Milunovici and Zlati- ca (37 MW each)). Montenegrin transmission system operator (CGES) confirmed that new 400kV interconnection power line The government published on its website Concession act, Podgorica-Tirana was put in trial operation in the end of Draft concession contract, Public debate report, Evalua- November. tion of economic effects of future HPP, Draft sponsorship contract as well as instructions for qualified bidders in the project.

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The complete documentation was sent to qualified bid- ers agreement for construction of South stream pipeline ders, i.e. to the consortium of Power utility of Montenegro across Bulgaria. and Italian A2A, Italian Enel and Chinese Sinohidro, who are expected to submit their bids until April 15, 2011. Ger- According to the latest estimations, the first sections of the man Strabag, decided to abandoned the project. South stream pipeline should be built in 2015. The pipeline’s maximum capacity should reach 63 billion cbm per HPPs should be built until 2016 and the cost of the project year or some 35 % of current Gazprom’s export to Europe. should reach 540 million euros. The minimum concession period was set at 25 years, while minimum annual output § § § was set at 600 GWh. The minimum concession fee was set at 2 % of income from electricity sales. The project envisages three options for construction of the highest dam, Transelectrica published business plans for 2011-2013 the Andrijevo. The proposals for dam with the lower alti- (Romania) tude will be favored, due to more favorable environmental impact. National electricity transmission company Transelectrica Minister of economy Branko Vujovic said that the conces- (TEL) published its business plan for period 2011-2013, as sionaire should be selected in mid 2011, while the parlia- well as the latest projection for this financial year. ment would approve final concession agreement. He added that the state would be obliged to provide 60 million According to estimations, in 2010, TEL should post some euros for expropriation expenses. 625 million euros of operating revenue, while operating expenses should reach 615 million euros. The operat- Minister rejected accusations that Italian A2A, strategic ing profit should reach 10.4 million euros, while financial partner of EPCG, was favored in this tender procedure, say- losses should reach 8.7 million euros, so that pre-tax profit ing that project was initiated before privatization of EPCG. should reach 1.5 million euros.

§ § § In 2011, TEL expects to report pre-tax profit of 4.7 million euros, which should be increased at 7 million euros by 2013.

Gazprom and Transgaz completed feasibility study for In the related news, in mid November, Stelian Gal was of- South stream project (Romania) ficially appointed new CEO of TEL. Gal’s appointment was announced in October, immediately after resignation of In the second half of November, Russian Gazprom and former CEO Adrian Baicusi. Gal was CEO of TEL in period Romanian Transgaz completed feasibility study regard- 2005-2009. ing potential construction of natural gas pipeline South § § § stream in Romania.

Gazprom said in the official statement that two companies Transgaz to upgrade natural gas pipeline toward have concluded that this option was feasible. As recalled, Bulgaria (Romania) on October 13, two companies have signed Memorandum of understanding regarding the study. Natural gas transporter Transgaz will invest 7.2 million Gazprom and Transgaz also agreed that next step would euros for upgrade of natural gas pipeline Isaccea – Negru be to sign the agreement for construction of the pipeline’s Voda. The project is aimed to create better link of Roma- branch in Romania, having in mind strong reasons for its nian and Bulgarian natural gas systems by increasing the construction. pipeline’s reverse-flow capacity.

Romania imported some 2.5 billion cbm of natural gas Transgaz should publish tender for construction works in from Russia in 2009, while annual transit of Russian natu- December, while works are expected to last six months. ral gas (toward Bulgaria, Macedonia and Turkey) stands at 12.5 billion cbm. The long-term supply contracts between § § § Gazprom and Romania are due to expire in 2030.

Since the start of negotiations between Gazprom and Investments in energy sector to reach 30 billion euros Transgaz, the most of the local and foreign experts be- until 2020 (Romania) lieved that option for construction of the pipeline across Romania was a leverage for negotiations with Bulgaria. Chair of the Senate’s economic, industry and services Recently, Russia and Bulgaria finally signed sharehold- committee Varujan Vosganian said during 2010 Energy fo- 28 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

rum that overall investments in energy sector in Romania The state secretary in ministry of economy, Claudiu Stafie should reach 30 billion euros until 2020. said that two integrated energy companies, Hidroener- getica and Electra, should be established by the end of According to Vosganian, the largest companies in energy the year. In the same time, general manager of the largest sector are expected to invest overall amount of 1.5 billion electricity producer in the country, Hidroelectrica, Mihai euros per year. In the same time, the funds should be invest- David, believes that two companies could start operations ed for construction of units 3 and 4 in nuclear power plant on the market in the beginning of 2011. Cernavoda (700 MW each), in renewable energy projects, for construction of pump-storage hydropower plant (HPP) The official inauguration of two companies, approved by Tarnita-Lapustesti (1,000 MW), for thermal power projects the government in January, was delayed since July 1, due in Galati, Braila, Doicesti, and for small HPPs on Olt River. to legal complaints submitted by several companies and unions, which questioned the mergers. Vosganian believes that main source of funding for abovementioned projects should be Bucharest Stock Exchange According to plans, Electra will include energy complexes (BSE). Turceni, Rovinari and Craiova, Nuclearelectrica, Hidroelec- § § § trica’s branches Ramnicu Valcea, Sibiu and Targu Jiu and National lignite company Oltenia (SNLO). On the other hand, Hidroenergetica will incorporate Electrocentrale Deva, Electrocentrale Bucharest, thermal power plant Hidroelectrica yet to obtain environmental permit for Paroseni, Hidroelectrica’s subsidiaries in Bistrita, Buzau, HPP Islaz (Romania) Cluj, Curtea de Arges Hateg, Iron Gates, Oradea, Sebes and Slatina and National coal company (CNH). Head of electricity producer Hidroelectrica, Mihai David, said that project for construction of hydropower plant § § § (HPP) Islaz should obtain environmental permit in the beginning of 2011, after which construction works should start. NIS met annual production target (Serbia) David said that the permit was not obtained due to recent discovery of two rare bird species in the area. European Oil industry of Serbia (NIS), majority owned by Russian regulations allow construction in protected areas, but Gazpromneft, said it had met annual production target in certain measures needs to be undertaken. In this case, it mid November. The company’s production of oil and natu- would mean construction of artificial bird nests near the ral gas reached 1 million tons of oil equivalent. future HPP. NIS said in official release that it had continued growth HPP Islaz will have 29 MW output, and the worth of invest- trend related to both production and reserves of hydrocar- ment is estimated at 360 million euros. bons. The growth started last year by introduction of new technologies and new business organization in accord- § § § ance to Gazpromneft’s standards. The increase was the consequence of more efficient and productive operation of all divisions, the company’s release said. Hidroenergetica and Electra might be operational by NIS said that local communities also benefited from the year-end (Romania) increased production. In the period January-October, the company paid overall amount of 9 million euros for min- Ministry of economy said in press release that, on Novem- ing fees, which was 73 % higher compared to the planned ber 19, shareholders of all but one energy company that amount. will be merged into two integrated energy companies, § § § Hidroenergetica and Electra, voted in favor of the mergers during their separate shareholders assemblies. Sharehold- ers of Energy complex (EC) Craiova decided to postpone their final decision due to lawsuit submitted by Property Consumption of LPG at 360,000 tons per year (Serbia) fund (PF). The annual consumption of liquefied petroleum gas (LPG) In the same time, Property fund, which owns minority in Serbia stands at 360,000 tons, where 300,000 tons is re- stakes in all energy companies, said it would oppose to lated to car usage. the establishment of integrated energy companies, since it questions their profitability and future. The LPG association Autogas said that LPG consumption in Serbia has been constant in the last two years. The LGP

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consumption was steeply increased after 2003, when con- construction of pipeline’s extensions toward Bosnia and sumption stood at 66,000 tons. Herzegovina and Croatia, Bajatovic said. General manager said that the cost of the project in Serbia should reach be- According to Autogas, there are 580 LPG stations in Ser- tween 1 and 1.5 billion euros. bia, and 350,000-400,000 cars using LPG. However, the number of cars, with newly installed LPG installation, has In the related news, according to the latest estimations been reducing. published by Gazprom on its official website, overall cost § § § of the South stream project should reach 15.5 billion euros. The cost of the 900-km long submarine section under the Black sea should reach 10 billion euros. The pipeline should be put in service in 2015 and its annual capacity Gazpromexport: Zajecar to be entering point of South will be 63 billion cbm. Gazprom also said that profitability stream pipeline (Serbia) of the project would depend on whether the EU’s would insist on third party access in the project. CEO of Gazpromexport, Alexander Medvedev, confirmed that entering point of the South stream pipeline in Serbia § § § would be near city of Zajecar, on Serbian-Bulgarian border. Medvedev said that this was approved by both Serbia and Bulgaria. NIS completed reconstruction of FCC facility in Medvedev also confirmed that Gazpromexport and Ser- Pancevo refinery (Serbia) bian natural gas company Srbijagas have recently agreed details regarding the joint development of second stage Oil industry of Serbia (NIS) said it had completed 45-day of enlargement of underground storage facility in Banat- overhaul in Pancevo oil refinery. According to the official ski Dvor. The reason for delays of Gazpromexport’s invest- release, it was the most extensive overhaul ever in Pan- ments in this project was related to land ownership pro- cevo refinery. cedure, Medvedev said. He believes that facility should be operational in 2011. Apart from regular maintenance works, the first phase of reconstruction of the facility for production of gaso- As recalled, in October last year, Srbijagas and Gazprom line and gasoline components, the Fluid catalytic cracker have established joint venture company called Banatski (FCC), was completed. The reconstruction of FCC should Dvor UGS Joint Venture, in which Gazprom owns 51 % be completed in mid 2011 and it should considerably re- stake. The JV will be responsible for operation and enlarge- duce emission of harmful particles. ment of the facility. § § § The cost of regular maintenance reached 5 million euros, while cost of reconstruction of FCC reached 14 million euros, NIS said. § § § Srbijagas completed preliminary feasibility study on South stream pipeline (Serbia)

General manager of natural gas company Srbijagas, Du- EPS: electricity prices must rise by 60 % until 2013 san Bajatovic, confirmed that feasibility study for Serbian (Serbia) part of South stream pipeline was completed and sent to Gazprom. Deputy director of Department of strategy and investments in Power utility of Serbia (EPS) Slobodan Mitrovic Bajatovic pointed out that Serbia was the first of the coun- said that electricity prices in Serbia needs to be increased tries that participate in the project, which established joint by 60 % until 2013 or otherwise EPS will not be able to venture company (in November last year) and completed fund planned investments. According to EPS, the aver- feasibility study. age electricity price in Serbia stand at 4.5 eurocents/kWh, which was some 60 % lower compared to average price in According to the study, prepared by Srbijagas in coopera- the region. tion with Gazprom, the length of the pipeline in Serbia will be 470 km, and the annual capacity should be between 36 EPS plans to invest over 9 billion euros until 2015. Mitrovic and 41 billion cbm. said that EPS should invest 3.4 billion euros from its own income, where this could be achieved only in case of above- Entry point of the pipeline will be near Zajecar, on border mentioned increase in prices. 3.8 billions euros should be with Bulgaria, while two possible exit points will be near acquired through loans, while 1.8 billion euros should be Subotica, on Hungarian border. The study also envisaged

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provided by strategic partners. Some 200 million euros should be provided by other sources, Mitrovic said. Tenders:

He added that without increase in prices, the investments would be delayed or even cancelled. According to Mitro- vic, EPS had prepared investments plans, but government and responsible institutions need to provide necessary support. Company / EBRD, related Montenegro organization: Mitrovic said that lack of investments would reduce reli- Announcement: EPCG Metering Proj. Goods, works, services & consultancy ability of power system, i.e. EPS could be forced to intro- Content: Elektroprivreda Crne Gore (“EPCG”) has applied for duce planned power cuts and to import even 4 TWh of a loan from the European Bank for Reconstruction electricity in 2014. and Development (the “Bank”) towards the cost of modernising the electricity distribution infrastructure in Montenegro to enable EPCG to reduce losses, In a separate occasion, general manager of EPS Dragomir improve the quality and reliability of supply, and im- Markovic also said that electricity prices must rise by 60 prove energy efficiency. % until 2013, which needs to be done if Serbia wants to The proposed project has a total estimated cost of liberalize electricity market. Markovic said that EPS has Euro 43 million, of which EUR 38 million is proposed been constantly asking for increase in prices, so that prices to be financed by the EBRD, and will require the would reach economic level. procurement of the following consultancy services, goods, works and services for: Markovic believes that policy of low electricity prices was (a) Goods and related services for purchasing of me- the wrong way for preserving the social peace. He said tering equipment for medium voltage, and the in- that, in case of real price of electricity, EPS would be able to stallation of the aforementioned items; subsidize electricity bills for even 350,000 underprivileged customers, compared to some 35,000 in this moment. (b) Goods and related services for purchasing of metering equipment for low voltage with remote reading and remote disconnection capabilities, and for During the same occasion, Markovic said that overall debt cables, pillars, metering boxes, and auxiliary equip- of EPS toward suppliers reached 93 million euros, while ment for the installation of the aforementioned overall debts of customers toward EPS stand at 650 million items; euros. (c) Supplies and services for supply, implementation and training of software for remote management, remote reading, and measurement database

(d) Consulting services to support the Project Imple- mentation Unit established by EPCG.

Tendering for contracts under (d) above is expected to begin in the final quarter of 2009, and for the rest of the Project in the second quarter of 2010. These components are anticipated to be financed princi pally by the EBRD.

Contracts to be financed with the proceeds of a loan from the EBRD will be subject to its Procurement Policies and Rules and will be open to firms from any country. The proceeds of the EBRD’s loan will not be used for the purpose of any payment to persons or entities, or for any import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations or under a law or official regulation of the purchaser’s country.

Deadline: 3 November 2010 at 23:00, local time time Contact: Mr Velimir Strugar Deputy Director Functional Unit Distribution Ul. Ivana Milutinovića 12, Podgorica Montenegro Fax: +382 20 241 235 E-mail: [email protected]

31 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

Company / Company / EBRD, related Bulgaria EBRD, related Bulgaria organization: organization: Energy efficiency rehabilitation of Maritza East mines Bulgartransgaz Silistra, Kozloduy, Oryahovo Gas Pipelines Content: General procurement notice Content: General procurement notice

Maritza East Mines (Mini Maritza Iztok EAD, the Bulgartransgaz EAD (the “Employer”) intends to “Employer”) intends to use the proceeds of the use the proceeds of the Grant funds provided Grant funds provided by the Kozloduy Inter- by the Kozloduy International Decommission- national Decommissioning Support Fund (the ing Support Fund (the “KIDSF”), administered by “KIDSF”), administered by the European Bank for the European Bank for Reconstruction and De- Reconstruction and Development (the “Bank”) to- velopment (the “Bank”) and its own resources wards the cost of: to finance the cost and complete the Project for 1. Design, supply and installation of plant delivery and construction of high pressure gas and equipment for the on-line load control of the pipeline to, and gas regulation stations in Silistra, operation of the belt conveyors and excavators at Kozloduy and Oryiahovo. Mini Maritza Iztok EAD and rehabilitation (design, The Project will require the procurement of the supply and installation of plant and equipment) following goods, works or services: of the power supply system: energy management of equipment through remote reading and A. Delivery of steel pipes and fittings for a gas power quality analysis at Mini Maritza Iztok EAD, pipeline. Kozloduy and Oryahovo: Bulgaria. Delivery of about 70 km of steel pipes for high The procurement of the contract is expected to pressure gas pipeline, most of which are DN 300 begin in the first quarter of 2011. (14”) and other pipes of smaller diameter DN 150 B. Rehabilitation of the main transformer sta- as well as fittings and two gas pigging stations tions and construction of new mobile ones (launching trap and receiving trap) required for together with the respective switchgears and the construction of the gas pipelines. connecting equipment for increasing the power supply from 6 kV to 20 kV for Troyanovo-North B. Delivery of gas valves. Kozloduy and Orya- Mine and Troyanovo-3 Mine of Mini Maritza Iztok hovo: EAD, Bulgaria. Delivery of gas valves for high pressure gas pipe- The procurement of the contract is expected to line (ANSI 600), delivery of gas valves for high begin in the first quarter of 2011. pressure gas pipeline, mainly DN 300 (14”) and Procurement will be carried out in accordance others of smaller diameter. with EBRD Procurement Policies and Rules with the exception of country eligibility restrictions C. Automatic Gas Regulation Stations (AGRS). defined within the KIDSF rules and will be open Kozloduy and Oryahovo: to Tenderers from eligible countries as of 1 Sep- Delivery, Supervision and Commissioning of two tember 2010: the EU member states, Switzerland complete sets of technological equipment for the and the EBRD’s countries of operation. All goods Construction of two Automatic Gas Regulation and services must also originate from an eligible Stations. country. D. Construction of high pressure gas pipelines The proceeds of the Grant shall not be used for and gas regulation stations. Silistra: the purpose of any payment to persons or enti- Construction and Commissioning of about 80 km ties, or for any import of goods, if such payment high pressure gas pipeline, optical fiber cable line or import is prohibited by a decision of the United within the gas pipeline easement and an AGRS. Nations Security Council taken under Chapter VII Kozloduy and Oryahovo: of the Charter of the United Nations or under a Construction and Commissioning of about 70 km law or official regulation of the purchaser’s coun- high pressure gas pipeline, optical fiber cable line try. within the gas pipeline easement and two AGRS.

Deadline: 24 September 2011 The estimated maximum budget for the above Contact: Mr. Todor Todorov contracts is €17,0 million. Executive Director Mini Maritza Iztok EAD 6260 Radnevo Deadline: 1 September 2011 13 Georgy Dimitrov Str. Contact: Mr. Ivan Drenovichki Stara Zagora district Executive Director Bulgaria Bulgartransgaz EAD Fax : + 359 417 82417 66, Pancho Vladigerov Blvd. Email: [email protected] Sofia 1336 Bulgaria

Fax : + 359 29396462 e-mail: [email protected]

32 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

Company / Company / EBRD, related Bulgaria EBRD, related Bulgaria organization: organization: Kozloduy Nuclear Power Plant Plc Announcement: Sofia District Heating Rehabilitation Content: General procurement notice Content: The Kozloduy International Decommissioning Sup- port Fund (KIDSF), administered by the European This General Procurement Notice is an update to Bank for Reconstruction and Development (EBRD), the General Procurement Notice published on 7th was established in 2001 for the support of the de- August 2009, and draws attention to the following commissioning of Units 1-4 of the Kozloduy Nuclear upcoming procurement activities: Power Plant. One of the purposes of this Fund is to finance or co-finance preparation and implemen- Complex Vehicle Weighbridge for KNPP Units 1-4 tation of selected projects that aim the necessary Supply of different types of containers for transport restructuring, upgrading and modernization in vari- and storage of materials resulting from dismantling ous Bulgarian industry sectors consequential to fi- works nal shutdown of Units 1-4 of the Kozliduy Nuclear Size Reduction Areas in Turbine Hall Power Plant. Supply of Hand Operated Equipment for Size Reduc- tion and Decontamination Active Workshop Toplofikacia Sofia EAD, the single owned joint stock Dismantling and Decontamination Tools and Equip- district heating company serving the city of Sofia ment carried out the rehabilitation of the centralized dis- Implementation of New Pipelines trict heating system in the city. The District Heating Construction of Heat Generation Plant Rehabilitation Project comprised the modernization Elaboration of Environmental Impact Assessment of district heating substations, replacement of pipe- for Heat Generation Plant lines, compensators, valves, thermal insulation of Decay Storage Site for Transitional Radioactive over-ground pipelines, conversion to variable flow Waste of the Sofia district heating network. Information Centres for Decommissioning Site for Conventional Waste from Decommissioning Toplofikacia Sofia EAD intends to use additional Inventory, Treatment and Conditioning of Contami- grant funds of the Kozloduy International Decom- nated Soil missioning Support Fund (KIDSF) for continuation Concrete Core Sampling Analyses of the Project for replacement of the left, old, not au- Asbestos Removal Equipment tomated substations in Sofia district heating system. Equipment for Demolishing Structures inside the These funds shall be used for delivery, installation, Turbine Hall, Ancillary Buildings and Reactor Build- testing and commissioning of: individual heating ings substations units for space heating and domestic Waste Backlog Treatment hot water including. heat exchangers, circulation Development of management options for the stor- pumps, control valves and automation devices. age of very low level radioactive waste Tendering for the above contracts is expected to be- The estimated total budget for the above projects is gin in the first half of 2010. In case the KIDSF does 58,000,000 Euros. not grant these additional funds to Toplofikacia So- Tendering for contracts to be financed from grants fia, the tender procedure shall be cancelled. of the KIDSF will be in line with the EBRD Procure- ment Policies and Rules and will be open to firms The budget for the project, subject of this GPN is from eligible countries as of 1 August 2010: EU about EUR 10 million. member states, Switzerland and the EBRD countries Deadline: 19 January 2011 at 23:59, Bulgaria time of operation. Contact: “Toplofikacia Sofia” EAD Deadline: 9 August 2011 Mrs. Anastasiya Markova, PIU Manager Contact: Mr. John Bourke Tel: +359 2 8593171 KPMU Commercial Manager Fax: +359 2 8599124 Kozloduy Nuclear Power Plant Email: [email protected] Kozloduy Bulgaria Fax. + 359 973 7 4508 E-mail: [email protected]

33 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

Company / Contact: EBRD, related Romania BH-Gas d.o.o. Sarajevo organization: Hamdije Cemerlica 2 Stejaru HPP Rehabilitation Project 71000 Sarajevo, Bosnia and Herzegovina Tel: +387 33 279 000 Content: S.C. Hidroelectrica S.A. (“Hidro”) intends using the Fax: 00 387 33 661 621 proceeds of a loan from the European Bank for Re- Email: [email protected] construction and Development (the “Bank”) to fund [email protected] the rehabilitation and modernization of Stejaru hydro power plant (the “Project”). Company / EBRD, related Serbia The Project, which has a total estimated cost of organization: around EUR 110 million, will require the procure- Announcement: Srbijagas - Services, Works, Goods ment of the goods, works and services to be used Content: to: Srbjiagas intends using the proceeds of a loan from the European Bank for Reconstruction and Develop- • Replace of the electromechanical equipment for ment for a project to optimize its capital structure the 6 units, i.e. turbines, generators and related aux- through replacing emergency bridge loans with iliary systems; long term financing; undertake urgent works aimed • Rehabilitate or replacing the hydro-mechanical at preserving the pipeline network integrity, and equipment and penstocks; build a new underground gas storage facility. The • Upgrade the electrical equipment, instrumentation proposed project, which has a total estimated cost of and control system, SCADA of the power plant; EUR150 million equivalent, will require the procure- • Rehabilitate the 110 kV and 220 kV substations; ment of the following goods, works and services: and • Consulting services to support the Project Imple- - Works: Pipeline network rehabilitation, including mentation Unit environmental protection and safety upgrade; and construction of a new underground gas storage fa- Deadline: 27 July 2011 cility - Goods: Components for the pipeline network reha- Contact: S.C. HIDROELECTRICA S.A. bilitation (pipes, valves and fittings); Equipment and Bucharest, 3 Constantin Nacu Street, Sector 2, components for the new underground gas storage 020995 Romania facility Telephone: +4021 3032500 - Consultancy services: PIG survey fitness for pur- Fax: +4021 3032564 pose study; PIU support including procurement; Ba- Email: [email protected] sic design for the underground gas storage facility; feasibility study for storage/design/preparation of Company / tender documents; feasibility study for interconnec- EBRD, related Bosnia and Herzegovina organization: tion; Integrated Strategic Expansion plan study for Announcement: BH Gas D.O.O. Sarajevo (General) Srbjiagas; and a Lenders Technical Monitor Tendering for the above contracts is expected to Content: BH-Gas intends to use the proceeds of a loan from begin at the end of the first quarter of 2010 for the the European Bank for Reconstruction and Devel- consultancy services, and during the third quarter of opment („EBRD“) and its own resources towards 2010 for goods and works contracts. the costs of high-pressure gas pipeline construction in Central Bosnia Canton enabling gasification Deadline: 17 February 2011, Belgrade time of 4 municipalities - Travnik, Vitez, Busovaca, Novi Contact: JP Srbijagas, 12 Narodnog Fronta, Travnik - in this Canton. 21000 Novi Sad, Serbia Tel: +381 21 481 2703 The proposed project has an estimated cost of EUR Fax: +381 21 481 4305 17,0 million, proposed to be financed by the EBRD, Email: [email protected] and will require the following deliveries and construction services:

A. Line Pipe Supply: Delivery of steel pipes for high pressure gas pipeline, which are DN 400 (16, cca 41 km) and DN 200 (8, cca 7 km)

B. Basic Equipment Supply: 4 block stations, 2 Pig Launcher/Receiver Stations

C. Metering & Regulator Station Supply: 4 MRS

D. Pipeline Construction

E. Construction Supervision

Prequalification for all of the above contracts is expected to begin by the end of second quarter 2010. Deadline: 8 April 2011 at 24:0, Sarajevo time

34 Balkan Energy NEWS, e-journal Issue No: 2010-XI/2 - issue covers period 16.11.2010-30.11.2010

Company / EBRD, related Serbia organization: Announcement: EPS: Consultancy Services, Services, Works, Goods Content: EPS has applied for a loan from the European Bank for Reconstruction and Development towards the cost of modernizing the electricity distribution infrastructure in Serbia to enable EPS to reduce losses, improve the quality and reliability of supply, and improve energy efficiency.

The proposed project has a total estimated cost of 80 million EUR, of which 40 million EUR is proposed to be financed by the EBRD, and 40 million EUR by the European Investment Bank (EIB). The project will require the procurement of the following consultancy services, goods, works and services to be funded by the EBRD for:

1. Goods and related services for purchasing of metering equipment for medium voltage, and the installation of the aforementioned items;

2. Goods and related services for purchasing of metering equipment for low voltage with remote reading and remote disconnection capabilities, and for cables, poles, metering boxes, and auxiliary equipment for the installation of the aforementioned items;

3. Supplies and services for supply, implementation and training of hardware and software with the capabilities of remote management, remote reading, and a measurement database

4. Consulting services to support the Project Imple- mentation Unit established by EPS.

Deadline: 17 February 2011 at 23:00, Belgrade time Contact: EPS, Balkanska 13 Belgarde 11000, Serbia Email: [email protected] Tel: +381 11 3611 434 Fax: +381 11 3611 908