Energy News in Southeast Europe two issues per month ... · » 700 million euros needed for Radljevo lignite field » Energy minister: 10 % increase in electricity prices in 2010

Actual data » Power sector operational and market data for the period of

16.11.-30.11.2009 » Forecasted weather conditions for the following period

§ § §

Analysis: » Process of tender procedure for construction of NPP

Belene§ § §

News headlines

Albania » Evaluation of transmission losses » New small hydro power plants

Bosnia and Herzegovina: » EP BiH and coalmines signed Agreement on operation of

Concern » New management of Elektroprenos appointed » Government of RS and EFT signed concession contract for

HPP Ulog » EP BiH signed two contracts for renewal of unit 6 in TPP

Kakanj » Government delayed publishing of report on privatization

of Energopetrol » TPP Gacko back in service » Oil refinery in Brod celebrated first year of operation after

the renewal

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Balkan Energy Solutions Team does not warranty the accuracy of the published data contained in this document, although Balkan Energy Solutions Team did great efforts to collect the data from the respectable and accurate sources.

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Energy News in Southeast Europetwo issues per month № 2009-XI/2 •02.12.2009

Main focus of Balkan Energy NEWS is energy related news from coun-tries of South East Europe. Countries involved are: Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Greece, FYR Macedonia, Montene-gro, Romania, and Serbia. Besides all regional energy related news, 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 review of relevant power exchanges.

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2

Issue No: 2007-III/1Balkan Energy NEWS, e-journal Issue No: 2009-XI/2 - issue covers period 16.11.2009-30.11.2009

Bulgaria: » EU to grant 75 million euros of additional funds for NPP

Kozloduy » Maritsa Iztok coalmine posted 8.5 million euros of profit in

October » Government reconsiders construction of new unit in NPP

Kozloduy » EU to support construction of natural gas link toward

Serbia » ESO: electricity grid unfit for new RES power plants » Minister of energy: energy exchange to be established

Croatia: » HEP: CHPP Zagreb working at full capacity » Surgutneftegas denied negotiations on takeover of shares

in INA » INA to sell its Syrian oilfields to Janaf » Petrol, OMV and Lukoil interested in purchase of Crobenz » Janaf signed oil storage contracts with OMV and Lukoil » RP Global acquired location permits for three wind farms » HEP-OPS published new rules on cross-border capacities

Greece » New CEO of PPC to be appointed » Connection of island wind parks with mainland

Macedonia » Macedonia signed concession contract for 7 SHPP » ELEM and CWE to signed protocol for HPP Kozjak » 15% electricity price increase possible

Montenegro: » EBRD reconsiders 38 million euros loan to EPCG » Parliament debated on privatization of EPCG » Government presented tender documentation for small

HPPs » EPCG presented projects for construction of new HPPs » W. Morgan plans to build three small HPPs by 2012

Romania: » ANRM: oil and gas reserves sufficient for 15 years » Nuclearelectrica signed first electricity supply contracts in

2010 » Hidroelectrica published new tender for consultancy

services for HPP Tarnita-Lapustesti » HPP Movileni inaugurated » Hidroelectrica: EU could support construction of new

HPPs on Danube » Hidroelectrica to publish tender for HPP Islaz in 2010 » Hidroelectrica negotiates on purchase of wind power

projects

Serbia: » Srbijagas and Gazprom established South stream Serbia

Company » EPS and RWE signed protocol for construction of HPPs » Government approved feed-in tariffs » NIS: management confirmed 85 million euros loss in 2008 » 700 million euros needed for Radljevo lignite field » Energy minister: 10 % increase in electricity prices in 2010 » Srbijagas: natural gas prices to be reduced in 2010 » Power exchange to be established in 2010 » TPP Kostolac and China’s CMC signed cooperation protocol » EMS to invest 100 million euros in 2010 » Ministry of energy: construction of nuclear power plants

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5


Power exchanges data:

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

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

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

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

0

200

400

600

800

1000

1200

1400

1600

1800

2000

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

MW

h ProductionConsumption

Bosnia and Herzegovina: Average hourly export in last 15 days

0

20

40

60

80

100

120

140

160

180

200

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

MW

h

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 1203 1147 1133 1144 1142 1171 1368 1523 1594 1620 1590 1570 1552 1559 1563 1571 1666 1893 1846 1810 1717 1621 1456 130417.11.2009 1256 1164 1154 1149 1155 1198 1419 1562 1668 1666 1624 1607 1554 1604 1582 1575 1713 2014 1968 1954 1794 1710 1566 140318.11.2009 1254 1148 1127 1112 1119 1186 1414 1545 1635 1650 1597 1573 1551 1572 1582 1572 1703 1922 1891 1824 1731 1613 1483 137019.11.2009 1239 1144 1126 1124 1108 1159 1319 1479 1589 1610 1590 1587 1563 1585 1566 1559 1665 1894 1858 1814 1756 1668 1511 136220.11.2009 1205 1136 1087 1084 1082 1173 1349 1518 1626 1610 1618 1581 1525 1558 1564 1571 1700 2029 1984 1812 1735 1648 1516 137721.11.2009 1264 1153 1135 1118 1104 1121 1282 1405 1526 1564 1548 1597 1531 1566 1562 1554 1682 1882 1842 1804 1743 1658 1531 134122.11.2009 1238 1154 1086 1081 1079 1102 1225 1305 1469 1557 1560 1560 1535 1514 1473 1477 1653 1819 1820 1768 1734 1637 1485 129923.11.2009 1172 1099 1049 1055 1067 1104 1335 1539 1639 1641 1624 1585 1577 1600 1593 1602 1739 1934 1908 1823 1763 1678 1546 137124.11.2009 1201 1097 1067 1078 1078 1146 1358 1516 1597 1629 1601 1591 1550 1576 1549 1558 1686 1855 1826 1789 1732 1648 1503 134525.11.2009 1177 1063 1076 1053 1059 1139 1246 1392 1521 1562 1562 1539 1509 1534 1536 1551 1677 1850 1824 1783 1734 1643 1511 134726.11.2009 1250 1172 1117 1128 1131 1192 1371 1519 1645 1670 1650 1618 1612 1667 1690 1715 1870 2009 1996 1955 1909 1809 1660 149627.11.2009 1264 1164 1122 1077 1103 1183 1423 1554 1575 1550 1495 1464 1437 1434 1423 1464 1559 1722 1715 1682 1634 1542 1437 133528.11.2009 1304 1265 1213 1202 1183 1227 1342 1508 1611 1680 1696 1710 1690 1719 1705 1709 1778 1908 1882 1852 1797 1718 1613 148629.11.2009 1372 1288 1237 1223 1222 1248 1305 1402 1542 1648 1681 1660 1625 1603 1578 1584 1775 1931 1908 1877 1835 1758 1599 142930.11.2009Average: 1243 1157 1124 1116 1117 1168 1340 1483 1588 1618 1603 1589 1558 1578 1569 1576 1705 1904 1876 1825 1758 1668 1530 1376

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 1067 998 943 943 959 1039 1212 1391 1481 1514 1488 1456 1445 1460 1456 1465 1579 1686 1647 1615 1568 1478 1353 121317.11.2009 1089 1009 972 967 984 1062 1241 1390 1499 1492 1444 1430 1385 1433 1411 1400 1527 1720 1676 1665 1571 1497 1371 121318.11.2009 1103 997 979 967 982 1061 1241 1380 1473 1465 1419 1390 1389 1418 1417 1415 1564 1717 1677 1615 1535 1421 1312 121419.11.2009 1104 1012 961 949 953 1036 1182 1345 1466 1485 1464 1449 1429 1464 1446 1443 1559 1737 1702 1653 1608 1518 1373 124120.11.2009 1112 1023 985 976 992 1082 1251 1416 1538 1519 1504 1480 1438 1477 1471 1480 1619 1774 1730 1696 1613 1532 1407 128521.11.2009 1153 1053 1009 994 995 1049 1158 1274 1408 1457 1439 1429 1368 1413 1406 1396 1538 1681 1644 1613 1555 1461 1360 122522.11.2009 1128 1041 993 974 980 1023 1119 1210 1375 1457 1453 1448 1416 1412 1363 1373 1565 1718 1702 1667 1616 1512 1362 120223.11.2009 1081 1001 965 952 975 1061 1253 1452 1558 1581 1551 1517 1512 1547 1521 1535 1662 1762 1730 1702 1644 1557 1429 128624.11.2009 1131 1048 1000 1008 1020 1095 1306 1452 1548 1563 1535 1514 1482 1515 1485 1490 1618 1744 1710 1681 1629 1540 1412 127125.11.2009 1100 1046 1028 989 982 1082 1204 1328 1463 1503 1500 1468 1443 1482 1474 1491 1619 1756 1723 1681 1636 1546 1428 128526.11.2009 1117 1038 984 986 987 1066 1246 1411 1538 1553 1536 1504 1501 1566 1577 1611 1776 1893 1856 1827 1774 1673 1532 136727.11.2009 1174 1070 1012 991 1010 1115 1338 1480 1498 1467 1419 1381 1363 1361 1361 1398 1520 1641 1608 1578 1532 1435 1338 122128.11.2009 1107 1029 988 971 963 1011 1111 1243 1408 1480 1497 1504 1484 1537 1510 1496 1588 1679 1637 1609 1561 1471 1370 125329.11.2009 1131 1048 1011 979 979 1007 1086 1176 1344 1442 1471 1446 1413 1389 1365 1375 1575 1684 1669 1632 1594 1506 1351 120130.11.2009Average: 1114 1030 988 975 983 1056 1211 1353 1471 1498 1480 1458 1433 1462 1447 1455 1594 1728 1694 1660 1603 1511 1386 1248

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 136 149 190 201 183 132 156 132 113 106 102 114 107 99 107 106 87 207 199 195 149 143 103 9117.11.2009 167 155 182 182 171 136 178 172 169 174 180 177 169 171 171 175 186 294 292 289 223 213 195 19018.11.2009 151 151 148 145 137 125 173 165 162 185 178 183 162 154 165 157 139 205 214 209 196 192 171 15619.11.2009 135 132 165 175 155 123 137 134 123 125 126 138 134 121 120 116 106 157 156 161 148 150 138 12120.11.2009 93 113 102 108 90 91 98 102 88 91 114 101 87 81 93 91 81 255 254 116 122 116 109 9221.11.2009 111 100 126 124 109 72 124 131 118 107 109 168 163 153 156 158 144 201 198 191 188 197 171 11622.11.2009 110 113 93 107 99 79 106 95 94 100 107 112 119 102 110 104 88 101 118 101 118 125 123 9723.11.2009 91 98 84 103 92 43 82 87 81 60 73 68 65 53 72 67 77 172 178 121 119 121 117 8524.11.2009 70 49 67 70 58 51 52 64 49 66 66 77 68 61 64 68 68 111 116 108 103 108 91 7425.11.2009 77 17 48 64 77 57 42 64 58 59 62 71 66 52 62 60 58 94 101 102 98 97 83 6226.11.2009 133 134 133 142 144 126 125 108 107 117 114 114 111 101 113 104 94 116 140 128 135 136 128 12927.11.2009 90 94 110 86 93 68 85 74 77 83 76 83 74 73 62 66 39 81 107 104 102 107 99 11428.11.2009 197 236 225 231 220 216 231 265 203 200 199 206 206 182 195 213 190 229 245 243 236 247 243 23329.11.2009 241 240 226 244 243 241 219 226 198 206 210 214 212 214 213 209 200 247 239 245 241 252 248 22830.11.2009Average: 129 127 136 142 134 111 129 130 117 120 123 130 125 116 122 121 111 176 183 165 156 157 144 128

6


Romania: Electricity consumption in last 15 days (MWh)

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

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 2416.11.2009 -43 -69 -43 -31 -24 -37 -55 79 5 -47 -147 -148 -65 -128 -129 -137 28 68 -14 -10 -50 -190 -175 -15217.11.2009 -124 -38 -38 -33 -24 -36 -80 -126 -3 -59 -140 -133 -128 -122 -121 -121 66 87 90 90 17 -68 -179 -15218.11.2009 -108 -70 -46 -32 -30 -42 -84 2 138 11 -102 -162 -139 -132 -136 -127 107 65 69 66 46 73 25 -7319.11.2009 -108 -77 -56 -36 -28 -39 -84 63 121 125 94 74 106 93 93 106 117 74 44 -8 37 -3 85 11720.11.2009 45 -198 -189 -196 -205 -208 -5 15 76 87 164 173 185 211 196 203 136 90 86 123 139 115 94 8821.11.2009 25 -182 -264 -252 -246 -251 -234 -229 -119 -12 11 4 -69 -128 -201 -201 31 10 6 -1 -11 -83 -172 -17422.11.200923.11.2009 -62 -43 -43 -32 -27 -42 -8 -31 -58 -79 -72 -61 -70 -68 -76 -75 -77 -92 -123 -116 -111 -115 -141 -13224.11.2009 -106 -157 -193 -301 -316 -325 -149 -100 -54 -57 -69 -63 -77 -80 -78 -73 -75 -72 -65 -69 -72 -68 -83 -12525.11.2009 -311 -361 -338 -325 -322 -332 -163 -108 -58 -56 -48 -98 -99 -46 -49 -48 -51 -61 -69 -74 -77 -77 -83 -10726.11.2009 -125 -336 -343 -327 -323 -334 -139 -67 -70 -71 -69 -57 -107 -94 -57 -108 -66 -76 -77 -72 -75 -85 -85 -9727.11.2009 -97 -334 -349 -333 -326 -308 -142 -81 -86 -94 -97 -97 -110 -95 -86 -90 -83 -75 -72 -68 -69 -60 -63 -9128.11.2009 -80 -254 -342 -325 -318 -320 -345 -164 -43 -58 -76 -78 -72 -69 -72 -73 -60 -31 -24 -24 -40 -44 -27 -7729.11.2009 -204 -365 -335 -319 -310 -315 -336 -354 -280 -177 -168 -124 -99 2 4 -4 -46 -64 -65 -68 -76 -69 -69 -9230.11.2009 -224 -319 -298 -286 -277 -286 -217 -100 35 -24 -94 -199 -248 -301 -296 -237 -120 -56 -122 -209 -311 -323 -309 -345Average: -109 -200 -206 -202 -198 -205 -146 -86 -28 -37 -58 -69 -71 -68 -72 -70 -7 -10 -24 -31 -47 -71 -84 -101

Romania: Average hourly net export in last 15 days

0

50

100

150

200

250

300

350

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

MW

h

Romania: Average consumption in last 15 days

0

1000

2000

3000

4000

5000

6000

7000

8000

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

MW

h

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 5376 5456 5433 5403 5435 5461 5754 6294 6707 6923 6960 6890 6838 6822 6773 6676 6788 7341 7598 7517 7301 6881 6342 588517.11.2009 5719 5683 5621 5594 5630 5676 6152 6695 6916 7056 7049 6961 6878 6905 6845 6801 6876 7443 7683 7600 7370 6956 6492 604018.11.2009 5910 5843 5840 5836 5839 5857 6182 6696 6907 6972 6932 6852 6829 6817 6802 6771 6903 7389 7634 7556 7374 6968 6457 603919.11.2009 5874 5850 5826 5810 5848 5916 6196 6681 6904 7023 7010 6917 6880 6879 6812 6741 6883 7473 7697 7621 7420 6964 6423 594520.11.2009 5642 5586 5556 5526 5578 5605 6002 6547 6827 6923 6921 6837 6759 6716 6625 6594 6740 7202 7267 7268 7268 6882 6336 582021.11.2009 5557 5565 5491 5495 5498 5496 5529 5691 5965 6091 6122 6111 6083 6069 6045 5979 6073 6767 6949 6910 6743 6347 5892 555922.11.2009 5415 5320 5265 5338 5362 5361 5373 5433 5543 5558 5688 5672 5647 5650 5638 5616 5739 6299 6572 6533 6386 6094 5681 537023.11.2009 5296 5485 5471 5538 5561 5623 5930 6359 6746 6945 6961 6884 6859 6850 6778 6687 6786 7295 7361 7442 7312 6889 6380 594824.11.2009 5740 5699 5690 5702 5740 5772 6170 6598 6912 7034 7019 6924 6865 6858 6801 6771 6889 7470 7608 7567 7399 6986 6448 605725.11.2009 5917 6013 5962 5971 5992 6077 6379 6630 6903 7026 7033 6903 6853 6818 6785 6720 6844 7489 7628 7598 7426 6990 6459 613626.11.2009 5860 5802 5728 5743 5760 5903 6293 6713 6968 7105 7076 6945 6880 6868 6787 6693 6876 7544 7706 7650 7457 6999 6467 610327.11.2009 5665 5593 5620 5619 5682 5699 6118 6679 6942 7024 7006 6871 6782 6774 6704 6657 6818 7316 7368 7368 7256 6925 6418 593528.11.2009 5591 5467 5452 5471 5498 5520 5628 5716 5878 6003 6015 5963 5912 5842 5785 5770 6016 6650 6758 6711 6637 6409 5965 556429.11.2009 5455 5367 5344 5376 5414 5413 5453 5459 5513 5463 5492 5473 5473 5457 5465 5446 5662 6345 6444 6459 6412 6192 5870 546330.11.2009 5450 5371 5398 5389 5353 5442 5759 6330 6630 6805 6832 6735 6659 6642 6548 6491 6664 7177 7274 7242 7127 6858 6333 5860Average: 5631 5607 5580 5587 5613 5655 5928 6301 6551 6663 6674 6596 6546 6531 6480 6428 6571 7147 7303 7269 7126 6756 6264 5848

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 40 38 63 40 44 59 240 251 347 352 353 352 353 352 351 361 358 355 351 353 267 271 220 20717.11.2009 143 173 167 151 171 150 257 261 271 272 272 272 274 274 274 276 269 265 264 267 262 280 192 16618.11.2009 124 125 120 120 118 115 230 235 266 267 267 266 267 267 266 269 265 262 313 287 243 285 180 13819.11.2009 105 105 109 88 87 103 289 300 357 355 365 362 365 367 361 366 355 361 350 355 353 370 286 20920.11.2009 234 234 247 225 238 213 396 459 423 391 393 419 426 445 469 478 425 434 418 418 401 450 321 27821.11.2009 110 169 143 140 150 177 200 204 216 166 167 173 168 168 203 209 202 203 166 169 167 207 192 15822.11.2009 160 170 118 104 103 151 181 139 189 144 146 171 172 161 195 203 173 169 131 134 136 198 189 15323.11.2009 -192 -191 -226 -253 -250 -198 159 167 242 212 212 218 214 214 249 251 195 208 186 169 127 166 15 324.11.2009 -52 -51 -63 -89 -87 -75 280 272 267 248 248 254 249 249 284 286 278 264 243 246 245 303 142 12525.11.2009 -255 -230 -251 -267 -265 -261 225 280 295 255 255 261 256 257 292 294 235 257 246 258 217 256 129 11026.11.2009 8 -12 -50 -51 -48 -37 195 265 250 212 239 243 241 241 276 277 228 216 214 238 228 267 142 13227.11.2009 127 93 73 48 76 78 255 275 285 248 248 252 249 250 285 277 210 221 220 238 238 336 203 17528.11.2009 125 113 57 32 31 61 124 135 247 200 201 209 207 207 241 247 194 213 176 178 129 147 136 12429.11.2009 -53 -65 -101 -107 -108 -73 48 88 220 187 190 195 196 191 226 233 209 222 191 193 156 150 155 9430.11.2009 2 -18 -12 7 10 -17 196 265 346 343 353 357 345 330 330 332 299 300 299 302 247 252 123 148Average: 42 44 26 13 18 30 218 240 281 257 261 267 265 265 287 291 260 263 251 254 228 263 175 148

7


Greece: Electricity consumption in last 15 days (MWh)

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 2416.11.2009 35.16 32.13 28.70 24.84 25.24 25.27 28.98 48.32 45.91 44.57 48.37 44.57 44.57 44.57 35.32 32.96 32.95 32.33 48.54 44.61 34.93 34.01 34.02 34.1517.11.2009 48.21 30.60 28.86 28.69 26.68 28.70 30.02 34.77 48.35 48.36 48.37 48.37 48.38 48.36 48.35 48.35 48.35 48.91 81.01 77.00 48.96 48.91 48.35 48.3118.11.2009 48.22 30.47 26.73 25.28 0.00 25.28 29.01 34.09 48.35 48.36 48.38 48.38 48.39 48.37 44.57 44.55 44.56 48.41 48.96 48.55 48.51 48.37 34.12 33.8719.11.2009 35.17 32.68 28.82 28.70 25.53 25.55 30.45 44.59 48.35 44.57 48.37 48.39 48.40 48.39 44.57 44.54 35.40 48.43 77.00 48.96 48.96 48.39 48.35 44.6320.11.2009 35.18 30.61 28.95 0.00 0.00 24.88 30.20 34.86 44.55 48.36 44.57 44.57 44.57 44.57 44.57 44.57 44.57 48.45 48.96 48.51 48.53 48.43 44.56 34.0421.11.2009 34.74 33.86 32.70 30.52 30.43 30.37 30.59 33.77 34.06 34.91 35.39 44.57 48.36 44.57 34.86 34.11 35.42 44.57 48.53 48.54 48.44 44.57 44.53 44.6222.11.2009 30.47 30.47 30.46 30.11 29.04 28.88 28.82 28.69 29.24 30.22 30.59 34.91 44.53 35.40 30.63 30.53 30.57 44.54 48.91 48.39 48.36 48.35 32.86 30.6723.11.2009 48.18 30.39 28.91 28.75 26.65 28.66 29.15 30.66 48.35 48.35 48.36 48.37 48.38 48.91 48.35 48.35 48.35 48.91 77.00 48.96 48.95 48.91 48.35 48.3424.11.2009 48.21 33.94 29.08 26.71 0.00 26.71 30.43 48.32 48.35 48.36 48.91 48.91 48.91 48.91 48.35 48.35 48.35 48.91 48.96 48.96 48.96 48.39 48.35 48.3425.11.2009 48.23 33.85 28.72 26.72 25.54 26.72 30.44 48.30 48.35 48.38 48.91 48.91 48.91 48.91 48.35 48.35 48.35 62.58 62.64 62.90 62.64 48.91 48.35 48.3326.11.2009 44.66 32.16 29.53 28.86 28.70 28.94 48.21 30.50 44.57 44.57 44.57 48.40 48.41 48.41 44.57 44.57 44.57 48.47 79.00 48.51 44.61 44.57 34.89 34.1227.11.2009 30.40 29.63 30.17 28.82 24.88 28.72 30.59 34.01 44.56 44.57 48.39 48.39 48.40 44.57 44.57 34.72 34.85 48.47 48.51 48.51 44.61 35.16 44.55 34.1628.11.2009 33.95 33.88 32.73 30.47 29.98 29.07 29.13 29.99 48.33 48.34 44.56 44.57 44.57 44.57 34.73 34.22 34.22 44.57 48.96 48.96 48.48 48.39 44.55 34.8429.11.2009 32.79 33.95 30.68 29.08 28.73 27.43 27.44 25.27 28.96 30.40 30.66 30.71 32.98 34.09 30.68 30.59 30.57 34.02 48.39 48.41 48.38 35.31 34.86 34.1130.11.2009 44.66 30.67 29.97 28.76 28.67 28.80 30.58 44.58 81.00 48.91 48.91 48.91 44.57 44.57 44.57 44.57 44.57 34.96 44.63 48.97 34.28 32.36 33.99 32.86Average: 39.88 31.95 29.67 26.42 22.00 27.60 30.94 36.71 46.09 44.08 44.49 45.40 46.16 45.14 41.80 40.89 40.38 45.77 57.33 51.25 47.17 44.20 41.65 39.03

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 4850 4450 4350 4200 4120 4270 4740 5540 6080 6460 6500 6530 6550 6500 6300 6030 6080 6750 7250 7250 7150 6700 6000 555017.11.2009 5068 4647 4555 4418 4329 4436 4900 5646 6244 6719 6753 6832 6885 6848 6558 6367 6473 7078 7509 7568 7444 6958 6236 576518.11.2009 4950 4580 4480 4330 4230 4340 4800 5440 5980 6450 6540 6580 6600 6530 6270 6040 6110 6740 7220 7180 7080 6530 5860 540019.11.2009 4900 4540 4480 4350 4280 4380 4860 5580 5980 6430 6520 6600 6650 6600 6250 6000 6050 6800 7400 7350 7240 6600 5960 546020.11.2009 4950 4600 4520 4390 4320 4400 4900 5600 6000 6500 6600 6700 6700 6650 6400 6150 6200 6950 7420 7420 7338 6851 6185 577421.11.2009 5100 4700 4600 4420 4330 4340 4480 4700 5250 5850 6200 6400 6500 6480 6050 5850 5950 6500 7120 7150 6850 6400 5900 550022.11.2009 5000 4600 4500 4300 4160 4130 4200 4300 4560 5050 5480 5780 5900 5800 5250 5050 5250 5800 6400 6620 6480 6200 5730 540023.11.2009 4833 4424 4341 4204 4128 4240 4769 5523 6109 6567 6616 6670 6712 6713 6529 6250 6299 6771 7222 7369 7237 6784 6090 564124.11.2009 4920 4570 4480 4320 4250 4350 4840 5560 6040 6450 6490 6560 6600 6580 6350 6080 6160 6880 7400 7380 7240 6620 5980 545025.11.2009 5000 4620 4520 4400 4320 4400 4920 5650 6150 6580 6620 6650 6700 6680 6400 6250 6300 6950 7400 7380 7180 6750 6100 550026.11.2009 5050 4660 4590 4430 4330 4440 4930 5640 6070 6500 6650 6660 6720 6700 6400 6220 6360 7100 7550 7550 7410 6830 6120 564027.11.2009 5010 4690 4640 4480 4380 4490 5000 5700 6110 6520 6600 6630 6650 6610 6350 6130 6250 6970 7400 7380 7220 6740 6060 557028.11.2009 5230 4840 4750 4570 4440 4420 4580 4780 5330 5830 6120 6280 6400 6340 6020 5810 6000 6770 7280 7240 7000 6600 6020 555029.11.2009 5000 4610 4500 4300 4160 4170 4230 4290 4570 4980 5420 5720 5870 5660 5150 5010 5240 5950 6600 6700 6580 6320 5840 547030.11.2009 4820 4400 4330 4200 4140 4220 4830 5580 6040 6500 6550 6600 6640 6600 6400 6200 6340 7000 7430 7410 7240 6770 6110 5620Average: 4979 4595 4509 4354 4261 4335 4732 5302 5768 6226 6377 6479 6538 6486 6178 5962 6071 6734 7240 7263 7113 6644 6013 5553

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

Greece: Average hourly consumption in last 15 days

1000

2000

3000

4000

5000

6000

7000

8000

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

MW

h

Greece: Electricity prices, HTSO

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

16.1

1.20

09

17.1

1.20

09

18.1

1.20

09

19.1

1.20

09

20.1

1.20

09

21.1

1.20

09

22.1

1.20

09

23.1

1.20

09

24.1

1.20

09

25.1

1.20

09

26.1

1.20

09

27.1

1.20

09

28.1

1.20

09

29.1

1.20

09

30.1

1.20

09

EUR

/MW

h

minimal price average price maximal price

Montenegro: Average Hourly exports in last 15 days

-250

-200

-150

-100

-50

01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

MW

h

1.11.2009 2.11.2009 3.11.2009 4.11.2009 5.11.2009 6.11.2009 7.11.2009 8.11.2009 9.11.2009 10.11.2009 11.11.2009 12.11.2009 13.11.2009 14.11.200915.11.2009Montenegro - Albania -136 -447 730 756 328 352 851 788 717 665 1050 1451 1441 350Montenegro - BiH 1626 2985 1442 3472 3815 -925 -244 -307 -359 -680 -993 -3048 -4106 -1763Montenegro - Serbia -3004 -3913 -2853 -3318 -2918 -2169 -2361 -3308 -3719 -3245 -3363 -1419 -1268 -3753Total -1514 -1375 -681 910 1225 -2742 -1754 -2827 -3361 -3260 -3306 -3016 -3933 -5166

8


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

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

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 2416.11.2009 396 409 384 413 426 501 519 495 588 697 736 732 719 713 699 645 641 935 997 933 789 588 514 58217.11.2009 396 409 384 413 426 501 519 495 588 697 736 732 719 713 699 645 641 935 997 933 789 588 514 58218.11.2009 500 513 498 498 508 546 519 457 555 588 596 579 556 571 562 484 473 723 835 824 698 574 462 54219.11.2009 557 552 549 569 590 621 544 499 585 620 615 604 573 586 547 512 527 804 903 882 791 611 502 64420.11.2009 613 581 580 597 606 666 582 540 667 661 629 622 627 643 602 575 602 765 689 687 789 642 534 61021.11.2009 641 609 598 550 578 622 597 550 473 480 448 445 453 439 431 447 450 738 856 836 749 574 514 46722.11.2009 473 565 559 478 479 494 507 481 486 502 387 393 423 421 416 447 452 639 782 733 693 584 537 58923.11.2009 570 640 636 570 587 626 626 632 647 721 689 671 691 674 650 637 624 776 774 869 854 703 607 61424.11.2009 619 643 630 634 643 697 643 663 785 800 775 779 768 756 748 731 729 922 925 918 876 743 641 63325.11.2009 616 685 673 672 686 702 659 670 744 753 728 739 726 717 698 670 732 918 966 977 877 758 637 58226.11.2009 625 665 732 741 762 709 632 708 775 789 768 756 756 788 771 744 752 876 975 956 869 758 638 60527.11.2009 625 665 732 741 762 709 632 708 775 789 768 756 756 788 771 744 752 876 975 956 869 758 638 60528.11.2009 674 672 669 653 661 663 601 584 550 591 516 530 569 602 585 591 512 696 662 674 679 627 536 57329.11.2009 576 790 826 793 757 770 736 653 566 580 553 566 561 563 556 585 562 690 694 711 747 762 658 63230.11.2009 678 753 736 742 755 706 674 641 746 762 809 760 741 735 697 666 668 791 739 768 810 782 624 637Average: 571 610 612 604 615 635 599 585 635 669 650 644 643 647 629 608 608 806 851 844 792 670 570 593

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2416.11.2009 6.98 4.65 4.65 4.65 4.65 4.65 18.61 32.34 41.88 41.88 42.11 41.88 41.88 41.88 41.88 41.88 41.88 46.07 55.84 51.19 42.11 41.42 23.27 18.6117.11.2009 6.98 4.65 4.65 4.65 4.65 4.65 18.61 32.34 41.88 41.88 42.11 41.88 41.88 41.88 41.88 41.88 41.88 46.07 55.84 51.19 42.11 41.42 23.27 18.6118.11.2009 11.64 11.61 11.61 11.61 11.63 11.64 13.97 16.29 27.93 31.42 31.42 30.03 27.01 27.93 22.81 18.62 17.22 41.43 41.90 41.90 34.91 23.28 13.97 13.9719.11.2009 11.65 11.65 11.62 11.65 11.65 11.88 13.98 18.64 34.94 39.60 34.94 34.94 34.94 34.94 32.38 30.05 34.94 41.93 51.25 41.93 41.70 34.94 27.04 18.6420.11.2009 18.69 14.02 11.80 11.80 11.80 18.69 34.80 39.48 45.32 45.32 41.81 41.58 41.58 42.05 41.81 41.58 42.05 58.40 69.53 59.21 57.23 43.21 37.14 30.1321.11.2009 32.49 14.03 14.03 11.69 11.69 16.36 31.79 30.16 18.70 18.93 18.70 16.11 11.69 11.69 11.69 11.69 18.70 45.12 58.44 51.43 44.65 39.74 32.73 11.6922.11.2009 11.68 11.68 11.68 11.68 8.17 11.68 11.68 11.68 11.68 14.01 9.34 8.17 11.68 11.68 11.68 11.68 18.68 43.21 51.38 46.24 42.74 39.70 32.70 18.6823.11.2009 11.68 2.57 2.57 2.57 2.57 4.67 7.24 35.27 39.70 42.27 39.70 39.70 39.70 39.70 23.36 23.36 35.27 60.96 64.23 58.39 43.21 35.31 32.70 11.6824.11.2009 11.68 11.68 11.65 11.64 11.67 11.68 18.68 39.70 39.70 39.70 39.70 35.27 35.27 35.27 35.03 35.03 35.31 58.39 58.39 58.39 42.04 39.70 35.03 16.3525.11.2009 11.91 7.24 7.01 7.01 7.01 7.24 11.68 31.54 39.71 39.71 39.71 35.04 32.70 31.54 31.54 31.54 31.54 42.05 58.40 57.23 41.81 35.04 18.69 14.0226.11.2009 16.41 11.96 11.96 11.72 11.72 14.07 16.41 35.17 35.41 39.86 35.41 35.17 31.65 32.83 31.65 31.65 35.17 42.21 58.62 42.21 41.03 35.41 28.14 16.4127.11.2009 18.78 17.37 14.09 11.97 11.97 18.78 35.45 46.95 43.43 46.95 42.02 39.91 39.91 39.91 39.91 39.91 39.91 62.10 69.25 64.56 58.69 39.91 42.26 32.8728.11.2009 35.10 18.72 16.38 11.93 11.93 17.32 18.72 30.66 31.59 42.12 35.10 30.66 30.66 18.72 18.72 23.64 39.78 58.50 68.57 64.35 58.50 42.12 35.10 35.1029.11.2009 11.91 11.68 11.68 11.68 11.68 11.68 11.68 11.91 11.91 18.69 23.36 18.69 18.69 18.69 18.69 23.36 38.55 58.40 67.41 67.41 58.40 44.39 39.71 32.7030.11.2009 11.91 11.68 11.68 11.68 11.68 11.91 18.69 39.71 43.45 53.73 44.39 42.05 39.71 39.71 39.71 39.71 39.71 64.24 69.54 67.76 62.11 42.05 35.04 25.00Average: 15.30 11.01 10.47 9.86 9.63 11.79 18.80 30.12 33.82 37.07 34.65 32.74 31.93 31.23 29.52 29.71 34.04 51.27 59.91 54.89 47.42 38.51 30.45 20.13

16.11.2009 17.11.2009 18.11.2009 19.11.2009 20.11.2009 21.11.2009 22.11.2009 23.11.2009 24.11.2009 25.11.2009 26.11.2009 27.11.2009 28.11.2009 29.11.2009 30.11.2009Base Price 30.70 30.70 22.74 27.99 37.46 24.33 19.72 29.10 31.96 27.95 29.26 38.20 33.08 27.21 36.54Base Quantity 15049 15049 13661 14788 15111 13544 12520 16089 17700 17587 18148 18148 14672 15886 17421Day Price 41.55 41.55 28.00 34.75 46.56 27.45 22.20 39.21 40.35 36.92 36.24 46.80 38.28 31.89 46.64Day Quantity 11425 11425 9594 10202 10323 8966 8347 11238 12559 12334 12672 12672 9570 10084 11789Night Price 9.01 9.01 12.21 14.47 19.26 18.09 14.74 8.88 15.17 10.02 15.30 21.01 22.70 17.84 16.32Night Quatity 3624 3624 4067 4585 4788 4579 4173 4851 5141 5252 5476 5476 5102 5802 5632

Day Energy (06-22h)Base energy (00-24h) Night energy (22-06h)

OPCOM, Romania - Prices

0

10

20

30

40

50

60

70

80

16.1

1.20

09

17.1

1.20

09

18.1

1.20

09

19.1

1.20

09

20.1

1.20

09

21.1

1.20

09

22.1

1.20

09

23.1

1.20

09

24.1

1.20

09

25.1

1.20

09

26.1

1.20

09

27.1

1.20

09

28.1

1.20

09

29.1

1.20

09

30.1

1.20

09

EUR

/MW

h

minimal price average price maximal price

OPCOM, Romania - Prices

05

101520253035404550

16.1

1.20

09

17.1

1.20

09

18.1

1.20

09

19.1

1.20

09

20.1

1.20

09

21.1

1.20

09

22.1

1.20

09

23.1

1.20

09

24.1

1.20

09

25.1

1.20

09

26.1

1.20

09

27.1

1.20

09

28.1

1.20

09

29.1

1.20

09

30.1

1.20

09

EUR

/MW

h

Night Day Base

OPCOM, Romania - Traded energy

02000400060008000

100001200014000160001800020000

16.11

.2009

17.11

.2009

18.11

.2009

19.11

.2009

20.11

.2009

21.11

.2009

22.11

.2009

23.11

.2009

24.11

.2009

25.11

.2009

26.11

.2009

27.11

.2009

28.11

.2009

29.11

.2009

30.11

.2009

MW

h

9


Forecasted weather conditions for the following period

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

Date AlbaniaTirana

Bosnia and HerzegovinaSarajevo

BulgariaSofia

CroatiaZagreb

GreeceAthens

MacedoniaSkopje

MontenegroPodgorica

RomaniaBucharest

SerbiaBelgrade

2.12. T: 11-14W: NE 11R: 9

T: 4-11W: NE 11R: 3

T: 4-11W: E 10R: 10

T: 4-9W: E 6R: -

T: 13-17W: SE 30R: 24

T: 6-12W: NE 11R: 10

T: 9-15W: NE 13R: 9

T: 6-13W: SE 11R: -

T: 7-12W: NW 12R: 3

3.12. T: 8-17W: NW 6R: -

T: 0-10W: L-VR; -

T: 4-12W: NE 6R: -

T: -2-9W: L-VR: -

T: 13-18W: N 22R: -

T: 4-12W: NE 4R: -

T: 9-17W: SE 4R: -

T: 5-11W: NE 14R: -

T: 4-10W: SW 6R: -

4.12. T: 7-14W: SE 16R: 12

T: -1-9W: S 17R: -

T: 0-13W: S 8R: -

T: 1-4W: NE 8R: 5

T: 12-16W: SW 4R: -

T: 1-9W: SE 10R: -

T: 6-13W: SE 20R: 30

T: 3-9W: E 8R: -

T: 3-13 W: SE 19R: -

5.12. T: 9-13W: SW 17R: 27

T: 5-6W: SW 16R: -

T: 4-9W: SW 12R: 5

T: 4-6W: SW 12R: -

T: 12-16W: SW 20R: -

T: 4-9W: S 12R: 8

T: 8-15W: SW 16R: 9

T: 3-8W: S 11R: -

T: 6-9W: S 15R: 4.5

6.12. T: 6-16W: SE 14R:

T: 3-7 W: S 17R: -

T: 6-8W: SW 9R: -

T: 2-7W: S 14R: -

T: 12-17W: SW 9R: -

T: 4-8W: S 9R: -

T: 9-16W: S 14R: 15

T: 1-8W: SW 19R: -

T: 4-9W: SE 11R: -

7.12. T: 9-17W: SE 20R: 2

T: 2-9W: S 16R: -

T: 5-9W: SW 9 R:

T: 1-8W: S 12R: -

T: 12-17W: SW 11R: -

T: 2-11W: SE 11R: -

T: 7-14W: SE 20R: 9

T: 1-13W: SW 4R: -

T: 3-11W: SE 16R: -

8.12. T: 8-19W: SE 31R: -

T: 0-9W: SE 27R: YES

T: 3-11W: S 14R: -

T: 2-10W: SE 16R: YES

T: 11-16W: S 22R: -

T: 0-11W: SE 17R: -

T: 4-16W: SE 25R: -

T: 6-11W: S 8R: -

T: 3-9W: S 25R: -

9.12. T: 11-14W: SW 22R: -

T: 3-7W: SW 9R: YES

T: 2-7W: S 22R:

T: 6-8W: NW 11R: YES

T: 12-14W: SW 32R: YES

T: 1-8W: S 22R: YES

T: 7-13W: SW 14R: YES

T: 4-10W: SE 12R: YES

T: 2-7W: SW 15R: YES

10.12. T: 9-13W: NW 12R: -

T: 3-5W: NW 14R: -

T: 2-6W: NW 9R: -

T: 3-7W: N 13R: YES

T: 12-13W: W 27R: -

T: 3-7W: NW 11R: -

T: 8-14W: NW 11R: YES

T: 4-9W: W 12R: -

T: 2-7W: NW 22R: YES

11.12. T: 4-10W: N 20R: -

T: -4-4W: N 16R: -

T: -7-6W: NW 22R: -

T: -1-6W: N 11R: -

T: 9-13W: NW 25R: -

T: -4-7W: N 20R: YES

T: 4-14W: NE 20R: -

T: -1-0W: L-VR: N 15

T: -3-5W: NW 19R: -

12.12. T: -2-10W: NE 6R: -

T: -6-7W: L-VR: -

T: -5-6W: NW 10R: -

T: -4-9W: L-VR: -

T: 7-12W: NE 22R: -

T: -6-7W: N 6R: -

T: -1-16W: E 4R: -

T: -8--2W: NW 11R: -

T: -2-7W: L-VR: -

DecemberAverages

Temp: 3-12Rain: 140Rain days: -

Temp: -2.8-3.5Rain: 85Rain days: 11

Temp: -2.7-4Rain: 40Rain days: 11


Temp: 6.8-14Rain: 69Rain days: 12


Temp:2.9-11.1Rain: 217Rain days: 13


Temp: 0.2-5.3Rain: 58Rain days: 14

Consumption and production in last 15 daysMacedonia

0

5000

10000

15000

20000

25000

30000

19.11.2009

20.11.2009

21.11.2009

22.11.2009

23.11.2009

24.11.2009

25.11.2009

26.11.2009

27.11.2009

28.11.2009

29.11.2009

30.11.2009

MW

h

Production Total consumption in Macedonia

19.11.2009 20.11.2009 21.11.2009 22.11.2009 23.11.2009 24.11.2009 25.11.2009 26.11.2009 27.11.2009 28.11.2009 29.11.2009 30.11.2009Production 18517 18952 18448 18964 19574 20060 20574 20902 20217 19776 19484 20388Import 4471 4206 4496 4966 3977 3799 3400 3429 3767 3647 3956 3613Total consumption in FYROM 22988 23158 22944 23930 23551 23859 23974 24331 23984 23423 23440 24001

Mepso, Macedonia: Production and consumption (MWh)

10

Balkan Energy NEWS, e-journal Issue No: 2009-XI/2 - issue covers period 16.11.2009-30.11.2009

Tables with result of Allocated Aailable Transfer Capacities (AATC) in Balkan region for December 2009

- TTC (Total Transfer Capacity)

- TRM (Transmission Reliability Margin)

- NTC (Net Transfer Capacity) values in previous tables, represents common-ly correlated values, given per each border and per each direction on the respective border. (Please note that some of TSOs on their web sites publish only one-half of the NTC value, i.e. their own part of NTC, and therefore NTC data can be different)

- AAC (Already Allocated Capacity) value represents part of transmission ca-pacity allocated earlier by TSO in which table this value appears.

- ATC (Available Transfer Capacities) value represents amount of transmis-sion capacity, which will be offered by the TSO in which table this value ap-pears to the interested market participants through allocation procedure: usually by pro-rata or explicit auctions method. (Please note that some of TSOs on their web sites within their ATC value publish ATC part of the neigh-boring TSO, and therefore ATC data can be different

- AATC (ALLOCATED Available Transfer Capacities) values are the results of allocation procedure conducted by respective TSO in which table this value appears

NOS BIH - Bosnia & Herzegovina December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTCroatia > BIH - - 650 - 225 175 - 01.-31.12.2009.Montenegro > BIH - - 300 - 150 0 - 01.-31.12.2009.Serbia > BIH - - 350 - 175 25 - 01.-31.12.2009.

EXPORTBIH > Croatia - - 670 - 326 70 - 01.-31.12.2009.BIH > Montenegro - - 500 - 239 204 - 01.-31.12.2009.BIH > Serbia - - 350 - 171 120 - 01.-31.12.2009.

ESO - Bulgaria December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTSerbia > Bulgaria - - 250 - 50 40 0.00 01.-31.12.2009.Romania > Bulgaria - - 200 - 100 100 0.67 01.-31.12.2009.Macedonia > Bulgaria - - 0 - 0 0 0.00 01.-31.12.2009.Greece > Bulgaria - - 0 - 0 0 0.00 01.-31.12.2009.

EXPORTBulgaria > Serbia - - 350 - 250 250 0.28 01.-31.12.2009.Bulgaria > Romania - - 150 - 50 50 0.15 01.-31.12.2009.Bulgaria > Macedonia - - 150 - 0 0 0.00 01.-31.12.2009.Bulgaria > Greece - - 350 - 250 250 4.17 01.-31.12.2009.

MAVIR - Hungary December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTCroatia > Hungary 800 200 600 200 400 395 0.00 01.-31.12.2009.

Romania > Hungary550 100 450 150 300 300 0.23 01.-18.12.2009.625 100 525 150 375 350 0.15 19.-31.12.2009.

Serbia > Hungary 600 100 500 300 200 195 0.42 01.-31.12.2009.EXPORT

Hungary > Croatia 1200 200 1000 600 400 395 0.31 01.-31.12.2009.Hungary > Romania 500 100 400 146 254 254 0.24 01.-31.12.2009.Hungary > Serbia 700 100 600 350 250 245 0.22 01.-31.12.2009.

MEPSO - Macedonia December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTSerbia > Macedonia 560 100 460 40 420 410 0.00 01.-31.12.2009.Bulgaria > Macedonia 250 100 150 94 56 56 1.10 01.-31.12.2009.Greece > Macedonia 100 100 0 0 0 0 0.00 01.-31.12.2009.

EXPORTMacedonia > Serbia 250 100 150 0 150 0 0.00 01.-31.12.2009.Macedonia > Bulgaria 100 100 0 0 0 0 0.00 01.-31.12.2009.Macedonia > Greece 150 100 50 0 50 50 5.30 01.-31.12.2009.

Transelectrica - Romania December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTBulgaria > Romania 250 100 150 100 50 50 0.20 01.-31.12.2009.Serbia > Romania 300 100 200 100 100 100 0.23 01.-31.12.2009.Hungary > Romania 500 100 400 146 254 254 0.24 01.-31.12.2009.Ucraine > Romania 300 100 200 50 150 150 0.00 01.-31.12.2009.

EXPORTRomania > Bulgaria 300 100 200 100 100 100 1.98 01.-31.12.2009.

Romania > Serbia550 100 450 100 350 350 0.27 01.-18.12.2009.650 100 550 100 450 450 0.24 19.-31.12.2009.

Romania > Hungary550 100 450 150 300 300 0.23 01.-18.12.2009.625 100 525 150 375 350 0.15 19.-31.12.2009.

Romania > Ucraine 150 100 50 50 0 0 0.00 01.-31.12.2009.

EMS - Serbia December 2009.Border+Direction TTC TRM NTC AAC ATC AATC Price Validity period:

IMPORTAlbania > Serbia 260 50 210 50 160 160 0.05 01.-31.12.2009.BiH > Serbia 450 100 350 100 250 250 0.23 01.-31.12.2009.Bulgaria > Serbia 450 100 350 0 350 350 0.47 01.-31.12.2009.

Croatia > Serbia400 100 300 100 200 199 0.15 01.-13.12.2009.400 100 300 200 100 100 0.36 14.-31.12.2009.

Hungary > Serbia700 100 600 100 500 500 0.15 01.-13.12.2009.700 100 600 560 40 40 1.15 14.-31.12.2009.

Montenegro > Serbia 600 150 450 0 450 448 0.01 01.-31.12.2009.Macedonia > Serbia 250 100 150 50 100 100 0.19 01.-31.12.2009.

Romania > Serbia550 100 450 0 450 450 0.15 01.-18.12.2009.650 100 550 0 550 550 0.07 19.-31.12.2009.

EXPORTSerbia > Albania 260 50 210 50 160 160 1.80 01.-31.12.2009.Serbia > BiH 450 100 350 100 250 250 0.22 01.-31.12.2009.Serbia > Bulgaria 200 100 100 0 100 100 0.35 01.-31.12.2009.Serbia > Croatia 400 100 300 100 200 198 0.17 01.-31.12.2009.Serbia > Hungary 600 100 500 100 400 400 0.19 01.-31.12.2009.Serbia > Montenegro 620 150 470 110 360 360 0.11 01.-31.12.2009.Macedonia > Serbia 560 100 460 50 410 410 0.27 01.-31.12.2009.Romania > Serbia 300 100 200 0 200 198 0.15 01.-31.12.2009.

* - No information available

11


Process of tender procedure for construction of NPP Belene

Introduction

NPP Belane construction site is on the river Danube banks, 250 km northeast of Sofia and 7.5 km from Bulgarian-Romanian border.

The NPP should have two AES92 type pressurized water reac-tors, with overall capacity of 2,000 MW. The new reactors are based on VVER technology developed by Russian AtomStroyEx-port, which will be the main constructor of the plant. For the main subcontractors, agreements were signed with Areva and Siemens, but Siemens later retreated from the project. Compar-ing to old VVER 1000 rectors, AES92 have advance security sys-tems in line with European Utility Requirements (EUR) for Light Water Reactors, EC confirmed. If all problems regarding financ-ing and finding the strategic partner are solved, construction works could start in 2011, while construction could be finished in 2017.

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. There is no detailed information regarding this type. According to documentation, The AES re-actor has more backup systems for safe shutdown and cooling the reactor than the old VVER 1000 version, and longer lifetime (60 years), with zero accident chance.

Technical info regarding AES-92

Capacity: -3000 MW (thermal) -1068 MW (electrical)-Lifetime: 60 years, operational 7900 hours/year

Primary coolant circuit: -4 loops -coolant flow rate through the reactor: 86000 m³/h-pressure (operational) 15,7 MPa (max 17.6)-coolant temperature: in 291°C, out 321 °C

reactor core: -80t U-fuel = VVER 1000 -average fuel burnup: 472 MWd/kgU (max 49.9)-fuel cycle: 3 to 4 years

Secondary circuit:-pressure: 6,28 MPa

Safety systems:-active: HPSI, LPSI, SS, EFWS: 4*100%-passive: 2 systems, 4*33% per system

History:

The project design of NPP Belene was carried out in the early 1980s jointly with Soviet Union. The construction started in 1987 with the following time schedule: unit 1 in 1995, unit 2 in 1997 and units 3&4 after 2000. Original plans were for two Soviet-design WWER-1000 pressurized water reactors with two more units to be added later.

Nevertheless, in August 1991, Bulgarian government suspend-ed construction, mainly due to the lack of funds, environmental-ists’ protests and mounting concerns over the region’s seismic stability. Since then only the preservation of the construction work and the equipment has been carried out. In the mid-1990s the reactor vessel for unit 1 (Skoda reactor of the Russian WWER type), which had been paid for several years earlier, was deliv-ered to the site from Czechoslovakia. Construction works for unit 1 is up to 40% complete and for the second unit roughly about 10% complete. Nearly all major equipment, including cir-cuitry, transformers and one Czech-made WWER-1000 reactor vessel, has already been delivered (from Skoda and others) and about of the 60% of the basic equipment on the site is usable. Bulgaria spent 1.3 billion € till now at Belene.

Construction:

Bulgarian government approved construction of NPP Belene in April 2005, and tender documentation for design, construction, commissioning, and putting into operation of units 1 and 2 was bought by only two companies, Russia’s Atomstroyexport JSC and Czech’s Consortium Skoda Alliance. Since June 2005 till Oc-tober 2006, after long government struggle for bid improve-ments, Russia’s Atomstroyexport JSC has been selected to be the constructor of nuclear power plant. Russian bid was con-sidered better in terms of security and utilization of two units in NPP.

Atomstroyexport offered to produce electricity in new NPP at price below or equal 37 euros per MWh, while Skoda offered 40 to 43 euros. They also offered to build NPP for 3.997 billion euros, while Skoda offered price of 4.098 billion euros.

One of the demands of NEK was reduction of construction deadline from 10 to 6 years. The main reason for such request was the forecasted lack of power capacity in 2011th- 2012th. During October 2006, Czech Skoda has reduced construction period for the first unit from 10 to 4 years for unit1 and, for unit 2, from 10 to 7.5 years. Russian company offered similar tim-ings, depending on usage of already delivered equipment, but better timing for unit 2. In that moment (October of 2006) it was estimated that first unit in NPP could be put in operation in 2012th at the earliest.

According to contract signed by NEK and Russian company, 30 % of project should be granted to local companies, which should be equal to 1.2 billion euros. The future subcontractors should be selected through tender procedure. Over 100 Bul-garian companies submitted applications to AtomStroyExport in order to become subcontractors in Belene project.

Atomstroyexport is 49% owned by Gazprom. Other members of consortium for construction of NPP were French Areva and

Analysis:

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German Siemens, but Siemens later stepped out. Russian com-pany will build two 1,000 MW blocks with B466 reactors. The blocks have operational life of 60 years and shall be construct-ed in accordance to EU standards.

In the middle of 2007, there were disputes between NEK and Atomstroyexport regarding usage and value of the equipment delivered by Skoda in 1990s. The AtomStroyExport believes that some parts of the equipment will not be compatible to the new design of NPP and it is ready to pay funds to NEK for dis-assembling the equipment. NEK claims the equipment worth is 300 million euros, while Atomstroyexport was ready to pay some 100 million euros for it.

On January 18 in Sofia, NEK and AtomStroyExport signed the engineering, procurement and construction (EPC) contract for construction and commissioning of units 1 and 2 of NPP Be-lene.

The contract was signed by Lubomir Velkov, CEO of NEK, and by Sergey Shmatko, president of AtomStroyExport. The worth of the contract is 3.997 billion euros, while the cost of the entire project should reach 6 to 7 billion euros. The Russian company will install AES-92 type of nuclear reactors in the NPP. The tech-nology, which has combination of active and passive safety and security systems, was approved by EU in December 2007.

The head of Russian nuclear agency (Rosatom), Sergey Kirienko said that AtomStroyExport expects to build two more units in NPP Belene in the future.

According to the contract, construction of the units should start in the second half of 2008, and the two units should be operational in 2014 and 2015. In October 2006, it was expected that first unit could be operational by the end of 2012.

In July 2008, the government of Bulgaria officially approved the start of construction of nuclear power plant (NPP) Belene after ministry of regional development and public works issued per-mit for start of construction.

On September 3, prime minister of Bulgaria Sergey Stanishev officially marked a start of construction of NPP Belene, the larg-est project in Bulgaria in the last 18 years. The first construc-tion works will be related to dismantling of foundations of the old facilities. Minister of economy and energy Petar Dimitrov confirmed that equipment for the plant were to be ordered by the end of the 2008, while the main construction works should start in May 2009, after Bulgaria’s Nuclear regulatory agency (NRA) issues official approval. In the same time, head of Atom-StroyExport confirmed that cost of the construction would not exceed contracted amount of 4 billion euros.

In November 2008, NEK and AtomStroyExport signed annex to the preliminary agreement for construction of NPP Belene. The annex, signed by CEO of NEK Lyubomir Velkov and president of AtomStroyExport Leonid Reznikov, defined new deadlines for delivery of reactors, steam generators, turbines and electric generators as well as deadlines for financial payments. Russians did not reveal any details regarding the annex as well as NEK who said that citizens would not be interested in timetables for delivery of equipment, while payments are considered as secret. Russian company OMZ confirmed it had signed agree-ment for manufacturing and delivering of reactors for nuclear

power plant (NPP) Belene. The reactors will be manufactured by Izhorskiye Zavody, the part of the OMZ Group.

During April 2009, AtomStroyExport and French Areva have signed new agreement for construction of NPP Belene. Min-istry of energy of Russia said that signing the new agreement was done after member of original consortium, the German Siemens, pulled out from consortium with Areva. According to new contract, the equipment for the plant will be delivered by Areva, while Siemens will be hired as subcontractor.

The contract signed by National electric company (NEK) and At-omStroyExport set the construction price at 4 billion euros, but the latest analyses suggest that costs could rise up to 10 billion euros. It is estimated that 10 000 people would be employed during the construction, while 2 000 people would work in new power plant.

Enviromental issues:

In August 2005, Greenpeace announced battle against nuclear policy in Bulgaria in favor of improvement of energy efficiency. But Ministry of energy said that the Greenpeace claims could not be supported by any relevant facts he also added that En-ergy strategy in Bulgaria predicts active presence of nuclear energy, which should be in accordance to the key principles of safe operation of nuclear facilities. Again, in December 2007, Bulgarian green party issued a press release in which it repeat-ed its standpoint against construction of NPP Belene and NPPs in general. The EC’s approval of Belene project was also disap-proved by Greenpeace and other environmental NGO’s.

In December 2007, European commission officially support-ed technology that will be used in nuclear power plant (NPP) Belene and that the NPP Belene project was in accordance to articles 41 to 44 of Euroatom treaty. EC also confirmed that de-sign of the plant includes various passive security systems and improved protection against external hazards, such as earth-quakes and plain crashes. A month earlier, there was a confu-sion, since NEK issued official press release on November 6 in which it claimed that EU approved the project, which was de-nied by European commission, saying that final decision was not reached yet.

According to the study published by Bulgaria’s Academy of Sci-ence, the construction site of nuclear power plant (NPP) Belene is located in the area with the lowest seismic activities in the country. The study has been conducted in the period of two years, and it showed that construction site is in accordance to the criteria of the International Atomic Energy Agency. On the other hand, anti-nuclear activists claimed the NPP Belene would be unsafe having in mind that earthquake in 1977 in the Vrancea region in Romania damaged Bulgarian town of Svish-tov, near the future plant.

After RWE has been selected as partner in Belene project, Greenpeace issued a statement in which it said that RWE would compromise its reputation by taking the part in Belene project. Greenpeace said that corruption and underdeveloped safety culture in Bulgaria could endanger entire project. In the same time, use of Russian technology and earthquake prone construction site already raised concerns in RWE board, Green-

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peace said. Several ecological organizations in Bulgaria and Eu-rope reminded that region of Belene was hit by earthquake in 1977.

Financing:

On the 2nd half of January 2007, NEK has published an invita-tion for 250 million loan. The main purpose of the loan is to finance the project’s design, supply of equipment and the con-struction works during the first year of the project. The French bank BNP Paribas has won in the tender for providing the 250 million euros bridge loan

In May 2007 NEK confirmed it has been negotiating with Euratom and European investment bank (among others) for funding the project. Later this year, a 300 million loan from Euratom has been granted. After long negotiations, govern-ment of Bulgaria has decided to grant 600 million euros of state guarantees to the project for construction of NPP Belene. The guarantees are related to the loans from Euroatom and Eu-ropean Investment Bank.

Government of Bulgaria also decided to establish fund for fi-nancing the university training of staff for future NPP Belene. The main problem was the fact that Bulgarian universities do not produce enough nuclear engineers, which should be changed by new special fund.

A bank that will be a leader for arranging and providing the long-term, possibly 15-year loan, for the project has not been selected yet. After signing an agreement on 18th of January 2008, Russian president Vladimir Putin said that Russia is ready to fund the construction of NPP Belene and offered 3.8 billion euros loan to Bulgaria.

Some sources imply that NEK could take an export loan from Russian Roseximbank. On the other hand, the AtomStroyEx-port could also provide funds for the project, sources said. Till March 2008, only two banks applied for providing the loan for the project. Russia offered to finance the construction of NPP Belene, which was rejected by Bulgaria.

In the beginning of April 2008, French bank BNP Paribas was selected to provide loan for funding the construction of NPP Belene. Contract was signed on 4th of June. BNP Paribas should arrange most of the necessary funds needed for the project. The smaller part of the funds will be provided through loans of Euroatom and European investment bank. The contract was signed after media published rumors that BNP could withdraw from the project. The competitor to the BNP Paribas was also French Bank, the Societe Generale. But, two months later, BNP Paribas said it would not invest any of its funds for the project. BNP will provide only advisory services and it would not be a lead arranger for the loan, company said in the statement. Ac-cording to BNP Paribas, the agreement with NEK only envis-aged an option for the bank to invest its funds in the project, where NEK hoped this would be the case. Financial experts said it was unusual that bank selected to arrange the loan was not wiling to invest its own funds and that this could be signal of caution for other potential investors. Sources from BNP Paribas said the latest decision was reached by the highest officials of the bank due to high risks related to the project.

During May 2008, there were some disputes regarding overall cost of the project. CEO of NEK, Lyubomir Velkov said the in-flation rate could result in 20 % increase in overall cost of the project. In the same time, the contract with future constructor envisages that construction costs could be only adjusted for average EU inflation.

Also, minister of economy and energy, Mr. Petar Dimitrov re-jected recent claims said by Georgiou Kaschiev, an expert with the risk research institute of the Vienna University, who said the overall project costs could reach 9 billion euros. Kaschiev said that estimations of NEK did not take into consideration the increase in price of goods (concrete, steel, etc), price of nu-clear fuel and adjacent electricity grid. In the same time, NEK will face additional financial costs related to repayment of the loan and advisory services, Kaschiev said. NEK confirmed that construction costs do not include purchase of nuclear fuel and construction of NPP’s electricity grid and substations.

According to plans from the end of 2008, NEK should spend some 450 million euros in Belene project by the end of 2009. The funds will be used for payments for the plant’s equipment (it should be delivered in period of 34 months), for project’s documentation and for the first construction works.

During the beginning of 2009, several problems regarding fi-nancing of the project emerged. Firstly, Russian AtomStroyEx-port, asked from National electric company (NEK) to increase the costs of the project in accordance to Bulgaria’s harmo-nized consumer price index in the 2008. Later, government confirmed it is looking for alternative funds since strategic partner in the project, German RWE, decided to invest funds after financial structuring of the project was completed, which should happen in 2010. Bulgaria expected that RWE would invest funds since the very beginning. In the same time, BNP Paribas, the bank selected to arrange the loan for the project, said it could not secure funding until end of 2009. Minister of economy and energy, Mr. Petar Dimitrov said that additional funds could come from Russia. According to sources quoted by local press, Bulgaria has been asking for 1.5-1.7 billion euros loan from Russia. This would cover expenses for Belene project during 2009 and 2010.

During May 2009, Deputy Minister of economy and energy Yavor Kuyumdzhiev said that government will ask for loan for construction of NPP Belene, but the loan will cover only con-struction activities in this year. This means that Bulgaria will not negotiate with Russia on acquiring 3.8 billion euros loan, but on smaller amount that will be used for construction of concrete foundation of the NPP, deputy explained. Analysts believe that abovementioned statement is another signal that construction of NPP Belene would become more expensive and more delayed.

In June 2009, Bulgaria gave up hopes to get loan from BNP Paribas bank and turned to Russia. The head of the project management team for Belene project within Bulgarian energy holding (BEH) and member of the board of directors of NEK Ivan Atanasov said that Russia has started procedure for grant-ing the 3.8 billion euros loan for construction of NPP Belene. Atanasov said that Russian Prime Minister Vladimir Putin had signed a decree on granting the loan, but the terms and guar-antees for the loan are yet to be agreed. Russia should provide export loan that will cover 80 % of the project cost, while the

14


rest should be funded by NEK. Atanasov however said that Rus-sia would grant the loan only to joint venture company of NEK and strategic partner RWE. . He also said that all participants in the project agreed on acquiring the loan from Russia. Later, Bulgaria announced it could decrease its 51% stake.

Some 430 million euros was spent for construction of NPP Be-lene so far. Some 161 million euros was spent for blueprints, 78 million euros for clearing the construction site, 89.5 million euros for purchase of equipment, 90 million euros for consul-tancy services and finally, 12 million euros was spent for inter-est rates.

Strategic partner:

On 2nd of May 2007, NEK has published invitation of expres-sion of interest for strategic partner for NPP Belane. NEK should control at least 51 % in the future joint venture called Power Company Belene (PCB). The PCB will be the owner and opera-tor of the NPP Belene. In the same time, NEK obliged itself to purchase electricity from the NPP in the period of 15-years. The main criteria for selection of future partners will be the prior experience in construction and operation of NPPs, the experience in electricity export and the financial capacity to fund the project. It is expected that strategic partner would contribute some 2 billion euros in funding. In that moment, it was expected that final agreement would be signed by 2007, and construction would start in 2008.

The following companies have submitted bids: Enel (Italy), CEZ (Czech Republic), RWE, EON (Germany), EDF (France), ATEL, EGL (Switzerland), Endesa (Spain), Electrabel (Belgium) and local company Cumerio Med. The potential partner will be entitled to sign 15-year contract for purchase of NPP’s output.

Two months later, NEK officials announced that potential in-vestors are divided in two groups. The first group is made of the companies, which were invited in the second stage of the procedure and wanted to subscribe directly or through con-sortium model for up to 49 % of the shares BPC. The potential partner are Electrabel (Belgium), Enel (Italy), E. ON, RWE (both from Germany), EDF (France) and CEZ (Czech Republic). The second group of the bidders was made of companies willing to acquire up to 25 % of shares in the BPC and those were Endesa, EGL, Cumerio Med AD and ATEL. NEK confirmed the companies from the second group might be invited to submit initial offers, depending on the outcome of negotiations between NEK and companies from the first group.

After deadline of the tender for 49%, EDF (first group) did not submit the bid. The tender procedure included evaluation of bank guarantees, the readiness to purchase electricity from new NPP in relation to the timeframe, quantity and destina-tion of purchased electricity (i.e. to domestic or to customers abroad). Details regarding the bids were not revealed during that stage of the tender, and it was announced that final agree-ment will be signed by the end of 2007.

Later in December 2007, NEK invited qualified bidders in the tender for strategic partner to submit their improved offers for acquiring of 49 % stake in the project by January 9, 2008. The improvements were supposed to be about the future manage-

ment of the plant and supervision of the project. NEK explained that initial bids of all candidates implied that bidders wanted majority managerial rights in the project company, what was unacceptable for Bulgaria.

All five potential strategic partners in the project submitted 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 would be the one of the key parameters for evaluation of bids.

On March 11, National electric company (NEK) announced it selected German RWE and Belgian Electrabel to enter final stage in the tender for acquiring 49 % stake in the project for construction and operation of nuclear power plant (NPP) Be-lene. NEK preserved the right to invite Enel, CEZ and E.ON to restart negotiations in case of need.

According to sources, RWE and Electrabel made the highest bids in the tender. Two companies will be given additional in-formation on the project in order to carry out detail analyses before submitting the final bids. Bulgaria expects that strate-gic partner should offers signing the long-term electricity pur-chase agreement.

Sources said that two candidates have been negotiating on sharing the minority stake, where leading investors would be RWE. Sources say that RWE could offer 400 million euros in in-vestments right away, which would enable start of the project. It is expected that NEK would select just one investor, while this investor would be allowed to sell part of its stake to potential partners. The media said that RWE established contacts with E.ON, CEZ and Enel regarding this issue. According to some earlier unconfirmed news, RWE and Electrabel also could be interested in the partnership. The sources said the main criteria for winning the tender would be the cash offer as well as guar-antees for providing the immediate funds for the projects.

In April 2008, German newspaper published an article of pos-sible withdrawal of RWE. The paper quoted sources who said RWE plans to redirect funds to the purchase of NPPs owned by British Energy. The sources also imply that German banks are not willing to fund the project due to ecology and technology issues. This was demented by minister of economy and energy Petar Dimitrov.

Later, in May, it was announced that deadline has been set for 23rd of June. The original deadline was extended by 24 days at the request of two finalists, NEK said. Bulgarian minister of economy and energy Petar Dimitrov said two candidates had demanded two additional weeks, and they were given three. Commenting earlier news regarding joint bid of RWE and Elec-trabel, minister said that the state would sell minority stake only to one shareholder. After bid submission and preliminary evaluation in August, minister Dimitrov called both sides for bid improvement. According to minister, some terms in the bids are not mandatory and some are against the interest of the country.

In the beginning of October 2008, minister Dimitrov confirmed that German RWE has outbid Electrabel and will be selected as strategic partner in NPP Belene project. RWE will acquire 49 % stake in the project and it will be obliged to invest 1.275 bil-lion euros in new company and to pay 550 million euros as a

15


premium to the majority owner of the NPP, the NEK. Accord-ing to RWE’s bid, the premium of 550 million euros could be increased in case of rise of consumer prices in EU. According to stipulations, the premium would be exclusively used for cov-ering NEK’s capital expenses in Belene project. RWE will also provide 300 million euros loan for ordering the equipment for the NPP. In the same time, RWE offered to provide corporate loan of 300 million euros for payment of operational costs and purchase of equipment. According to abovementioned data, RWE will provide 2.125 billion euros for the project. According to official estimations, the cost of the project should reach 4 billion euros. NEK’s stake will be secured through fixed assets at the site of NPP and premium paid by RWE. It was decided that agreement between NEK and RWE would be signed by the end of October 2008, while the new company should be estab-lished in November.

In November 2008, signs of possible withdrawal from the project became visible. Signing the agreement, which was scheduled for the end of October, was moved to spring 2009. Also, Ger-man papers said that Supervisory board of RWE could further delay decision for officially joining the project. The sources im-ply that RWE wants to make sure that project was not risky, but also to wait for the development of global financial crisis. Later in November, RWE invited Electrabel to take part in the project, but in February 2009, Electrabel rejected this offer.

In December, NEK and RWE signed agreement for establish-ment of joint venture ompany that will be in charge for con-struction and operation of nuclear power plant NPP Belene. But, final agreement signing was delayed. In June 2009, local press reported that strategic partner in Belene project, Ger-man RWE, would probably wait after elections for EU parlia-ment, elections in Germany and elections in Bulgaria to reach final decision on its future steps in the project. During the shareholders assembly of RWE in mid April, Belene project was criticized because of seismic risks. In the same tame, RWE con-firmed negotiations with Inter RAO and Fortum

On October 28, after several months of rumors and contradic-tory information, German RWE decided to pull out from the project for construction of NPP Belene. CEO of RWE Jurgen Grossman explained in a letter submitted to Bulgarian officials that RWE decided to withdraw after deadlines for key stages of the project were not met. RWE was not bound to pay penalties if it decides to leave the project.

Prime Minister Boyko Borisov said the current government done everything to save the project, but the former govern-ment failed to do its job. After winning in the elections, the new government accused former government on bad man-agement and on poor judgment of project’s cost. New govern-ment more than once said that cost should rise up to 10 billion euros, instead of planned amount of 4 billion euros.

According to estimations, selection of new strategic partner could delay the project by year and a half. Deputy Minister of economy Maya Hristova announced that tender for selection of the consultant that will prepare new analyses of the project and procedure for selection of new investors should take place in couple of months. The government earlier said it would re-duce its stake in the project down to 20-30 %. In addition, the government said it was not ready to provide any kind of guar-antees for loans for the project.

Evaluation of transmission losses (Albania)

Albanian minister for trade and energy, Mr. Dritan Prifti said that government has signed an agreement for evaluation of losses in electric grid. Minister said that company is independ-ent, but he did not reveile its name. Evaluation should resolve problems between distribution company OSSH (owned by CEZ) and Albanian Regulatory Agency (ERE).

Problem emerged when CEZ requested incease of electric-ity price due to high losses, and stated that losses are 35.7%, which is 3% higher from official information. ERE allowed in-crease, but lower from 23%, requested by CEZ. Higher increase will be possible only if evaluation shows higher-than-official losses.

CEZ plans to invest 58 million EUR in OSSH during 2010.

§ § §

New small hydro power plants (Albania)

Albanian government approved new concession contracts to Advisor C and Italian companies Polistamp System and Energia e Territorio. According to contract, stated companies will con-struct SHPP Bjeshke. SHPP Sllove and HPP Velesnica system, which will be consisted of 6 SHPPs.

Albanian government has granted total 50 contracts for con-struction of small hydro power plants. According to official data, these contracts are 200 million EUR worth, with overall installed capacity of 216 MW and annual production of 700 GWh.

§ § §

EP BiH and coalmines signed Agreement on operation of Concern (Bosnia and Herzegovina)

On November 16, Power utility of Bosnia and Herzegovina (EP BiH), the mother company in Concern of EP BiH, and seven coalmines from Federation of BiH, subsidiaries of Concern of EP BiH, signed the Agreement on operation of the Concern.

General manager of EP BiH, Amer Jerlagic, said that the agree-ment had defined business environment, responsibilities and jurisdictions within the Concern.

He added that EP BiH should invest some 125 million euros in coalmines during period of three years. The funds, eight times the current annual amortization of the coalmines, will be in-vested for modernization projects.

Speaking at the occasion, the minister of energy, mining and industry of Federation of BiH Vahid Heco expressed its satisfac-tion with continuation of activities in new company that will

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be driving force of entire economy. The Concern should pro-vide energy security in Federation of BiH and entire country, the minister said.

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New management of Elektroprenos appointed (Bosnia and Herzegovina)

In mid November, prime ministers of Federation of Bosnia and Herzegovina (BiH) and Republic of Srpska (RS), Mustafa Mujezi-novic and Milorad Dodik, in the presence of shareholders of national electricity transmission company Elektroprenos, have approved the decision of management board of Elektroprenos, which appointed Dusan Mijatovic an acting general manager. The management also appointed three acting executive direc-tors.

In the same time, the management board of Elektroprenos has published public employment advertisement for hiring general manager and three executive directors (in charge for operational activities, finances administration and legal affairs) for period of three years.

The latest decisions were in accordance to the conclusions of the meeting held by PMs Dodik and Mujezinovic on November 6.

PM Dodik pointed out that latest decisions had revoked previ-ous decision of High Representative of Valentin Inzko related to Elektroprenos. Earlier, the government of RS said that Inzko’s decisions were against ownership rights of shareholders.

As recalled, in mid September, High Representative Valentin Inzko imposed the new laws in Elektroprenos, aimed to resolve deadlock in the company, since two owners, governments of Federation of BiH (59 %) and RS (41 %) failed to resolve issue of investments.

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Government of RS and EFT signed concession contract for HPP Ulog (Bosnia and Herzegovina)

In the second half of November, minister of industry, energy and mining of Republic of Srpska (RS) Slobodan Puhalac and EFT signed the concession contract for construction of hydro-power plant (HPP) Ulog on Neretva River. The worth of the con-tract is 65 million euros.

Chair of EFT Group Vuk Hamovic said that RS and Federation of Bosnia and Herzegovina (BiH) should cooperate in construc-tion of HPPs on Neretva River. In this way, HPP Ulog, as a part of larger system, should bring more benefits to both entities in BiH.

HPP Ulog will have power output of 35 MW and annual output of 86 GWh. The concession contract will be valid for 30 years, where construction of the HPP should last four years.

As recalled, in August this year, the government of RS decided to award concession contract for HPP Ulog to EFT. At the time,

officials from EFT said that cost of the construction should reach 100 million euros. EFT will be also obliged to build 110kV power line and road infrastructure. In RS, EFT is also involved in construction of thermal power plant Stanari, near Doboj.

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EP BiH signed two contracts for renewal of unit 6 in TPP Kakanj (Bosnia and Herzegovina)

On November 23, general manager of Power utility of Bosnia and Herzegovina (EP BiH) Amer Jerlagic and director of Aus-trian Energy, Helmut Katzenberger signed the Contract for re-construction of boiler and management systems of unit 6 (110 MW) in thermal power plant (TPP) Kakanj (450 MW). The worth of the contract is 25 million euros and the works should be completed by October 2011.

Several days after, on November 26, head of EP BiH and Skoda Power signed the 12.5 million euros contract for renewal of unit 6 in TPP Kakanj. Skoda Power will be in charge for maintenance and renewal of turbine and generator.

Two contracts are the most important parts of the project for renewal of unit 6, which overall cost should reach 48.5 million euros. The project should prolong operational life of the unit by 15 years, i.e. by 2027, while the output of the unit should be increased by 7-10 %. Unit 6 was commissioned in 1977, and it has been in operation for 160,000 hours.

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Government delayed publishing of report on privatization of Energopetrol (Bosnia and

Herzegovina)

Secretary of government of Federation of Bosnia and Herze-govina (BiH) Ismet Trumic said that relevant ministries and in-stitutions did not submit their opinions regarding fulfillment of contract for privatization of local oil distributor of Energopetrol on time. Because of that, the government would delay session related to this subject.

Trumic said that status of bank guarantees and potential an-nexes were not revealed too. He added that secretariat, ministry of energy and Privatization agency (PA) do not know whether annexes to the contract exist, i.e. they are not in possession of such documents.

According to Trumic, consortium of INA-MOL, the new owner of Energopetrol, had submitted three bank guarantees, with overall worth of 20 million euros. On the other hand, ministry of finances said they are not in possession of those guarantees.

As recalled, in the past several months, government’s officials announced that privatization contract for Energopetrol should be cancelled since new owner failed to meet planned invest-ments. Officials from PA said that INA-MOL had invested only 3 million euros in Energopetrol instead of 75 million euros, which was set by privatization contract, signed in 2006.

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On the other hand, officials from Energopetrol argued that in-vestments were far above the estimations of PA.

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TPP Gacko back in service (Bosnia and Herzegovina)

In the end of November, thermal power plant (TPP) Gacko (300 MW) was back in service after 20-day standstill caused by bad weather, which caused tripping of 400 kV and 110 kV power lines and subsequent damage to generator.

Director of TPP Gacko, Branislav Rupar, said that outage would not affect the annual production target of 1.54 TWh. He said that several maintenance works have been performed during the forced standstill.

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Oil refinery in Brod celebrated first year of operation after the renewal (Bosnia and Herzegovina)

In the end of November, oil refinery in Brod has celebrated first year of operation after the new majority owner, Russian compa-ny Zarubezneft, i.e. its subsidiary NefteGazInkor, had restarted the production.

The official ceremony was attended by prime minister of Re-public of Srpska (RS) Milorad Dodik and Russian ambassador to Bosnia and Herzegovina (BiH) Aleksandar Bocan-Harcenko.

Director of the Brod refinery Aleksandar Danilovic Litvinenko said that company has processed over 1 million tons of crude oil during 2009, where oil derivatives have been sold to domes-tic customers and in neighboring countries. In this year, the re-finery started production of euro diesel in accordance to Euro 4 and 5 standards. In 2010, the company should start production of gasoline in accordance to EU standards.

Litvinenko said that 90 million euros was invested in the refin-ery in this year, while 107 million euros should be invested in the next year. By 2015, Zarubezneft and NefteGazInkor should invest some 1 billion euros in the refinery, Motor oil refinery in Modrica and in fuel retailer Petrol. The largest amount will be invested in the refinery.

Minister of industry, energy and mining of RS Slobodan Puhalac said that restart of the refinery had reduced import of oil de-rivatives in BiH by 50 %. In the past, some 20 % of imported oil products had questionable origin and quality, minister said.

Ambassador Bocan-Harcenko expressed full support to the project, which is one of the main axes of bilateral cooperation between RS and Russian Federation.

Director of Optima Group, the operator of Zarubezneft’s com-panies in RS, Jury Nikolayevich Belov, announced that two pet-rol stations should be built by the end of 2009, while, in 2010, another 12 petrol stations should be built and reconstructed. Belov said that the company is interested in purchase of petrol stations in rest of the BiH, Croatia and Serbia. Belov said that an-

nual output of Brod refinery would be increased up to 3 mil-lion tons, which would be far above domestic needs. In this moment, Petrol has 78 petrol stations in RS.

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EU to grant 75 million euros of additional funds for NPP Kozloduy (Bulgaria)

European Union has allocated 75 million euros in its 2010 budget for additional compensations for decommissioning of four units in nuclear power plant (NPP) Kozloduy.

The amount is part of additional 300 million euros earlier ap-proved by European commission, which should be paid in period 2010-2013. The decision on this issue needs to be ap-proved by European Council and EU parliament, and the final decision should be reached in the beginning of December.

In the past ten years, Bulgaria has received 550 million euros in compensation for closure of old reactors.

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Maritsa Iztok coalmine posted 8.5 million euros of profit in October (Bulgaria)

Maritsa Iztok coalmine posted 8.5 million euros of profit in Oc-tober. In this way, accumulated loss of 9.5 million euros in the end of September has been reduced down to 1 million euros. In the same period last year, the company has posted 3.2 mil-lion euros of profit.

In October, company’s income reached 25.2 million euros. In the same time, coal production amounted to 2.85 million tons, which was 1 % higher than planed and 19 % higher com-pared to the last year, while overburden removal reached 7.6 million cbm.

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Government reconsiders construction of new unit in NPP Kozloduy (Bulgaria)

Government of Bulgaria has been reconsidering an option for construction of new units in nuclear power plant (NPPP) Ko-zloduy.

Minister of economy, energy and tourism, Traycho Traykov said that the government should publish results of the feasi-bility studies related to enlargement of the NPP. Traykov be-lieves that NPP Kozloduy should be enlarged, where neces-sary infrastructure already exists.

In this moment, only two out of six units in the plant are op-erational. The operational units have 1,000 MW output each, while government plans to build one or two 1,000 MW units.

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In the same time, minister Traykov said he expects that compa-nies from USA should express interest for construction of NPP Belene. Minister confirmed that government would start pro-cedure for selection of consultant in the project very soon, in order to propose model for continuation of the project.

As recalled, German RWE pulled out from the project recently. After RWE abandoned the project, the government has been reconsidering to sell 80% of its stake in the project, since it was unable to provide funds.

Local analysts said that it would be cheaper to build new units in NPP Kozloduy instead of building the NPP Belene. Minister Traykov earlier said that overall costs for construction of NPP Belene (2,000 MW) should reach 10 billion euros.

Earlier, minister of foreign affairs, Rumyana Zeleva asked from US secretary of state, Hillary Clinton to support participation of US companies in energy projects, especially in Belene project. Zeleva said that current energy projects must be restructured in order to become interesting for investors from USA.

Media reported that Bulgaria demanded help from USA in or-der to reduce dependence on Russian energy supplies.

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EU to support construction of natural gas link toward Serbia (Bulgaria)

Bulgaria should receive 60 million euros under Regional devel-opment program of EU for construction of bidirectional natu-ral gas pipeline toward Serbia. In this way, EU should support construction of three new natural gas links, having in mind that EU had earlier approved funds for construction of natu-ral gas pipelines toward Greece (45 million euros) and Roma-nia (10 million euros). This was said by the deputy minister of economy, energy and tourism Maya Hristova.

Hristova said that Bulgaria recently solved technical problems related to applications for funding the pipelines toward Greece and Romania. The funding should be officially approved by the end of the year.

Hristova said that Bulgaria was given option to apply for fund-ing the project for construction of natural gas pipeline toward Serbia (between Dupnica and Nis) or toward Turkey, where government had chosen the first option since this pipeline should be connected to existing transit network. Deputy min-ister said that link toward Turkey should be built by Bulgarian energy holding (BEH) by itself.

The pipeline toward Serbia should be built in period of two and half years since the start of construction, Hristova said. In the same time, the pipelines toward Greece and Hungary should be built in 2012, so that dependence on Russian natural gas should be reduced by 30 %.

During the same occasion, Hristova confirmed that agree-ment, signed between Bulgaraz and Greek DEPA in January this year, related to emergency delivery of 3 million cbm per day by DEPA to Bulgaria, was still in power. Deputy minister

added that works for enlargement of natural gas storage facil-ity in Chiren should be completed in 2011, so that its current working capacity should be increased from 450/600 million cbm up to 850 million cbm. The facility will be able to deliver 10-12 million cbm of natural gas per day, compared to current 4.3 million cbm.

Deputy minister also confirmed that government and con-cessionaire have halted negotiations regarding conversion of natural gas filed in Galata into storage facility. According to plans, the new storage facility should be able to store 250 mil-lion cbm of natural gas starting from 2010, where this capacity should be increased at 400 million cbm and later at 800 million cbm.

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ESO: electricity grid unfit for new RES power plants (Bulgaria)

Ivan Ayolov, executive director of Electricity system operator (ESO), said that national electricity grid would be in danger due to rapid growth of renewable energy projects in Bulgaria. Ayolov called government to impose stricter rules in order to limit potential speculators.

The planned renewable energy projects exploded after gov-ernment imposed incentives for construction of wind, solar and biomass power plants. Overall planned output of such projects has amounted to 11,000 MW. Ayolov believes that current capacity of the grid to absorb power plants that use renewable energy sources (RES) is limited at 1,800 MW.

Ayolov said that Bulgaria should have strategy for sustainable development of renewable energy projects, which would not affect electricity grid. Because of that, ESO proposed that the state should demand from potential investors to deposit 5 % of the project’s value in order to show their reliability and se-riousness.

In this year, wind power output of Bulgaria has been increased up to 330 MW compared to 103 MW in the last year. Existing network is not able to handle connection of new wind farms and National electric company (NEK) has temporarily frozen connection of new wind turbines in Varna region.

According to current laws, NEK and three major electricity dis-tributors, CEZ, EVN and E.On are obliged to connect renewable energy based power plants to the grid.

According to experts, some 30 million euros needs to be invest-ed for connection of 100 MW power plant to electricity grid. As a comparison, NEK has been investing some 150-180 million euros per year only for annual maintenance of the grid.

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Minister of energy: energy exchange to be established (Bulgaria)

Minister of economy, energy and tourism, Traycho Traykov, an-nounced that Bulgaria should establish energy exchange very soon. The state should also undertake measures to speed up liberalization of electricity and natural gas markets. Minister said this during the discussion in parliament regarding national energy strategy until 2020.

In this moment, some 20 % of companies buy electricity on free market, while they had no choice on natural gas market. The government’s goal is to give option to customers to change their suppliers and to establish free access to distribution net-works, Traykov said. According to him, liberalization of natural gas market will be related to the development of new natural gas pipelines toward Greece and Romania and liquefied natu-ral gas (LNG) terminal in Greece.

Minister Traykov announced that natural gas transmission system operator Bulgartransgaz and electricity transmission system operator ESO will be separated from Bulgarian energy holding (BEH) by 2011, at the latest. Two companies will be di-rectly subordinated to minister of energy.

According to the strategy, the state-owned companies will be-come public, while up to 15 % stake should be listed on stock exchange. Before this happens, BEH should be restructured, minister Traykov said.

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HEP: CHPP Zagreb working at full capacity (Croatia)

In mid November, Croatian power utility (HEP) said in official re-lease that combined heat and power plant (CHPP) Zagreb has been working at full capacity.

HEP said that, at its peak output on November 11, the plant managed to produce 401 MWh/h or 23 % of overall electricity in the country, which was the highest ever output of the CHPP Zagreb. In the same time, heat output was 200 MWh/h.

In mid November, CHPP Zagreb has been operating with old unit C (120 MW of electricity output and 200 MW of heat out-put), modern CCGT unit K (209 MW/140 MW) and the newest unit L (115 MW/80 MW), which will be in trial operation by the end of the year.

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Surgutneftegas denied negotiations on takeover of shares in INA (Croatia)

Russian oil company Surgutneftegas said in an official release that it has not been engaged in negotiations with MOL nor with government of Croatia regarding takeover of stake in Croatian oil industry (INA). By this statement, Russian company denied recent claims in local press.

In spring this year, Surgutneftegas managed to acquire 21.2 % stake (from OMV) in MOL, the strategic partner and holder of managerial rights in INA. Hungarian press said that Russian company could be interested in share swap with MOL’s stake in INA.

MOL, who considered Surgutneftegas’s acquisition as hostile, also denied claims on share swap, saying it was committed to partnership with INA. In this moment, MOL holds 47.15 % stake in INA.

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INA to sell its Syrian oilfields to Janaf (Croatia)

According to local press, Croatian oil industry (INA) has been reconsidering to sell its oil concessions in Syria to consortium of Croatian companies led by natural gas transporter Adriatic pipeline (Janaf ). In this way, INA would acquire funds for pay-ment of debts to the state budget, but also would acquire funds for investments in new oil drills.

Sources say that INA abandoned plans for selling 50 % share in Syrian oil fields to its strategic partner MOL.

The second option for INA could be sale of 25 % stake in oil con-cessions in international tender, while the third option could be acquiring new loan in order to provide funds for tax debts and new investments.

Prime minister Jadranka Kosor and minister of finances Ivan Suker several times said that INA needs to pays its debts to the state by the end of the year.

INA operates two blocks of oilfields in Syria, Aphemia and Hayan, which are the most successful concessions of INA so far. INA’s researches found several million cbm of crude oil reserves and several hundreds thousands cbm of natural gas reserves.

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Petrol, OMV and Lukoil interested in purchase of Crobenz (Croatia)

Local media said that Croatian oil industry (INA) has received three letters of interests for purchase of its subsidiary Crobenz. Slovenian Petrol has officially confirmed its interest in Crobenz, while sources said that two other bids were submitted by Aus-trian OMV and Russian Lukoil.

Spokesperson of Slovenian Petrol Aleksandar Salkic confirmed they had submitted letter of interest for purchase of Crobenz. Salkic refused to comment potential financial offer. Petrol is the second largest fuel retailer in Croatia, with 70 petrol stations.

Officials from OMV and Lukoil did not comment the rumors. INA also refused to comment information published by local media citing confidentiality reasons.

As recalled, Croatian Competition Agency (CCA) demanded from INA to sell oil distributor Crobenz in June this year, after

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MOL, INA’s strategic partner, had acquired managerial rights in INA and after its market share in oil sector increased up to 55-65 %. Crobenz operates 14 attractive petrol stations across Croatia. During next five years, INA and MOL are banned from purchasing Crobenz and from opening the petrol stations along new highways.

Initially, INA set the deadline for submission of letters of interest on November 20, but deadline was prolonged until November 25. INA was given nine months to complete the sale.

According to local media, the worth of Crobenz is estimated at 200 million euros, where 170 million euros refers to whole-sale segment of the company. However, although CCA ordered INA to sell entire Crobenz, the emphasis is on sale of retail seg-ment.

Sources say that INA is trying to avoid sale of wholesale seg-ment of Crobenz. Apart from INA, Crobenz is the only company that has long-term license for wholesale of oil derivatives. INA denied these rumors.

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Janaf signed oil storage contracts with OMV and Lukoil (Croatia)

Adriatic oil pipeline (Janaf ) said in separated releases that it had signed the contracts on storage of oil derivatives with OMV Croatia and Lukoil Croatia. According to releases, the contracts refer to oil terminals in Omisalj in Zitnjak in period January 1, 2010 until December 31, 2013.

In the first nine months of 2009, Janaf has posted net profit of 11.5 million euros.

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RP Global acquired location permits for three wind farms (Croatia)

Local media reported that company RP Global CSE, a member off RP Global Group, which is active in Spain, Portugal, France, Poland and Chile, had obtained location permits for construc-tion of three wind farms in Sibenik-Knin County.

The cost of construction of future wind farms is estimated at 64 million euros. Sources said that overall output of wind farms would be 90 MW. The wind turbines should be installed at sites Velika Glava, Bubrig and Crni Vrh.

During the first phase of the project, 21 wind turbines with overall power output of 43 MW and annual production of 104 GWh should be installed. The energy license for this phase of the project was acquired. The construction works should start in autumn next year, while the farms should be operational in 2011.

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HEP-OPS published new rules on cross-border capacities (Croatia)

In mid November, Croatian electricity transmission system op-erator, the HEP-OPS adopted the new Rules on allocation and usage of cross-border capacities. The rules are in accordance to Electricity market law and they were approved by Croatian Energy Regulatory Agency (HERA).

According to Rules, HEP-OPS will conduct yearly, monthly and daily auctions of Croatian part of available transfer capacities (ATC) on borders with Slovenia, Serbia and Bosnia and Herze-govina.

The integral part of the Rules are the rules for joint annual auc-tion and joint monthly auctions on border with Hungary con-ducted by HEP-OPS and rules for joint daily auctions on border with Hungary conducted by Hungarian transmission system operator Mavir.

HEP-OPS published data on annual ATC on November 23, while annual auction will take place on December 8. The ATC for January 2010 will be published on December 14, 2009, while monthly auction for January should take place on December 17, 2009, HEP-OPS said.

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New CEO of PPC to be appointed (Greece)

Public Power Corporation (PPC), Greek power utility will get new CEO, Mr. Arthouros Zarvos, who is expert in renewable energy. Government will present Mr. Zavros as CEO of PPC on its meeting which will be held on 15th of December. This was stated by Ministry of finance and Ministry for environment, en-ergy and climate change

Mr. Zavros is executive director of the European Wind Energy Association and member of PPCs board of directors (BoD) for renewable energy.

New Greek government promised “green growth”, which will promote usage of renewable energy sources. Most of Greek electricity needs is produced in TPPs from lignite, and Greece is under pressure from EU to reduce CO2 emissions, increase energy efficiency and usage of renewable energy sources.

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Connection of island wind parks with mainland (Greece)

Ministry for environment, energy and climate change an-nounced a plan which will enable renewable energy produc-ers to build a cable link that will allow wind farms located on Evia islands to transfer produced electricity to mainland. These parks are 500 million EUR worth. The undersea cable will be laid by Public Power Corporation (PPC).

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The wind park projects whose licenses are currently pending would have a total planned output of 400 MW. After comple-tion in three years, the project will generate about 1200 GWh annually and prevent the emission of 1 million tons of CO2, benefiting the economy by about 25 million euros a year, the ministry said.

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Macedonia signed concession contract for 7 SHPP (Macedonia)

Macedonian government has signed a contract for construc-tion of 7 Small Hydro Power Plants (SHPP) with Slovenian-Mac-edonian consortium. Minister of Economy, Mr. Fatmir Besimi signed 20 year contract in name of the government. Accord-ing to contract, consortium must put in operation 7 SHPP in period of 3 years. Overall investment is around 10 million EUR, while installed output will be 5.45 MW. Annual generation is estimated to 23 GWh.

Slovenian-Macedonian consortium named “Male hidroele-ktrane” and it is consisted of Slovenian Turboinstitut Ljubljana and Macedonian companies Fero invest Veles, Granit Skopje and Toplifikacija Skopje.

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ELEM and CWE to signed protocol for HPP Kozjak (Macedonia)

Macedonian electricity producer ELEM has signed protocol with Chinese company “CWE” (China International water and electric corporation) for project and works related to construc-tion of HPP Kozjak. According to protocol, HPP Kozjak has been entirely finished and operational, which concludes involve-ment of CWE.

HPP Kozjak has 80 MW of installed capacity, with annual pro-duction of 156 GWh. Two 40 MW units were put in operation during 2004.

In 2008, Macedonian police has arrested former director of ESM and ELEM, Mr. Pande Lazarov.. According to sources, Mr. Lazarov has received 700 000 euros from chinese company Hainen, which delivered equipment for HPP Kozjak

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15% electricity price increase possible (Macedonia)

According to director of ELEM, Mr. Vlatko Cingovski, electricity price will be increased up to 15%. ELEM has submitted price increase request to Regulatory Comission for Energy, but it was returned and improvement of report has been requested.

“There is space for 10-15% increase. That is up to Regulatory Comission only. Price increase also depends on other two com-panies”, Mr. Cingovski said.

According to Mr. Cingovski, electricity price must be increased due to necessary investments during 2010. New price will be known until the end of 2009, and it will be valid for entire 2010.

Last electricity price increase was in 2008, when electricity price was increased for 9 %

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EBRD reconsiders 38 million euros loan to EPCG (Montenegro)

European bank for reconstruction and development (EBRD) said it has been reconsidering 38 million euros loan to Power utility of Montenegro (EPCG). The loan would be used for pur-chase and installation of 69,000 modern electricity meters, in-cluding necessary software and infrastructure.

The main aim of the project is to reduce losses in distribution network from present value of 24 % down to 14 % and to in-crease collection rate of electricity bills at 90 %. Overall worth of the project is 43 million euros.

EBRD said it should reconsider loan application during the ses-sion of Board of directors scheduled on January 26 next year.

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Parliament debated on privatization of EPCG (Montenegro)

In the second half of November, parliamentary Commission for supervision and monitoring of privatization of Power utility of Montenegro (EPCG) ended the debate without reaching the clear concussion. The Commission said it would issue report on privatization.

The debate was attended by Vujica Lazovic, vice prime minister and head of Tender commission for privatization of EPCG, and Srdjan Kovacevic, chair of the Board of directors of EPCG.

During the debate, ruling parties were in favor of selection pro-cedure, while opposition parties were not convinced that bid of Italian A2A was the best option for national power company. Opposition parties argued that privatization was the result of secret agreement between prime ministers of Montenegro and Italy, Milo Djukanovic and Silvio Berlusconi.

Vujica Lazovic said that state got respectable strategic partner in the right time. According to Lazovic, A2A, which holds 43.7 % stake in EPCG, is owned by two largest municipalities in north-ern Italy. He rejected claims of opposition parties that A2A is communal company.

Lazovic said that state had managed to obtain sale price of 8.4 euros/share compared to initial price of 1 euro/share and that overall worth of privatization of EPCG was 430 million euros. He also said that offer of consortium of Greek companies PPC and Golden Energy, although 100 million euros higher, was il-legal since the consortium demanded rights for construction

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of hydropower plants, concession for coalmines and freezing of municipality taxes.

Srdjan Kovacevic said that after the privatization, the worth of EPCG was increased by 100 million euros. In the same time, EPCG should post 15-20 million euros of profit in this year.

According to privatization contract, A2A should invest 290 mil-lion euros in power plants and distribution networks of EPCG during five-year period. The company will earn the right to ac-quire majority stake in EPCG if it managed to post 240 million euros profit in five-year period.

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Government presented tender documentation for small HPPs (Montenegro)

On November 25, ministry of economy said that qualified bid-ders were allowed to takeover tender documentation for con-struction of small hydropower plants.

As recalled, prequalification tender for granting the concession contracts for construction of small HPPs was published on Sep-tember 1. Tender refers to construction, operation and mainte-nance of small HPPs on ten river flows, where overall output of all HPPs is 18 MW and annual output is estimated at 77.1 GWh. Overall worth of investments is estimated at 60 million euros.

Ministry of economy confirmed that ten out of 14 bidders met the criteria: Tehnoenergy ASA and Bast, Elna Kabel, Kroling, ECG-MHE, Kelag Strabag, consortiums Haider extrem hydro-power, MAH-Korona Inzenjering and MHIDROCG, PORR Tech-nobau und Umwelt and Elektrotehna-Radius. Ten bidders have submitted 17 bids.

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EPCG presented projects for construction of new HPPs (Montenegro)

In mid November, Power utility of Montenegro (EPCG) and min-istry of economy of Montenegro officially presented projects for construction of four hydropower plants (HPPs) on Moraca, and projects for construction of HPP Komarnica and HPP Kru-sevo.

On Moraca River, HPPs Andrijevo (127.4 MW), Raslovici, Milu-novici and Zlatica (37 MW each) should be built. According to plans, HPPs should be built in the next six years. The cost of the project is estimated at 531 million euros, while annual produc-tion of four cascade HPPs will be 721 GWh. EPCG reminded that this project is more than 50 years old. The HPPs will be built near capital Podgorica.

EPCG said that HPP Andrijevo should be built in period of two and half years, while HPPs Zlatica, Raslovici and Milunovici should be operational in 2017. The HPPs should be built and operated under 30-year concession agreement.

HE Andrijevo will have 150-meter dam, while length of accu-mulation lake will be 14.5 km. Downstream will be HPP Raslo-vici, with 59-meter dam, while accumulation lake will be 8km long. HPP Milunovici will have 62-meter dam and 7.5 km long accumulation lake. Finally, HPP Zlatica will have 62.5-meter dam and 8 km long accumulation lake.

Nikola Jablan, advisor in ministry of economy and project co-ordinator, said that system of HPPs on Moraca River should be operational in 2016, at the earliest. He said that prequalification tender for construction of HPPs could be published in the end of 2009 or in the beginning of 2010. The ministry has been fi-nalizing technical and economic analyses, spatial plans and en-vironmental impact studies, Jablan said. The future concession-aires should be selected by the end of 2010, and they would be obliged to build HPPs in period of six years.

Jablan said that technical documentation for HPPs on Moraca River is the most researched hydropower project in Montene-gro. Overall cost of documentation is 15 million euros.

During the same occasion, EPCG said that HPP Komarnica, with output of 168 MW, should produce 230 GWh of electricity per year. The construction of HPP should last seven years and it should cost some 200 million euros.

HPP Krusevo on Piva River should have power output of 130 MW and annual production of 300 GWh. The HPP should be built downstream from HPP Piva and two peak HPPs should op-erate in the cascade.

§ § §

W. Morgan plans to build three small HPPs by 2012 (Montenegro)

Norwegian-Montenegrin company W. Morgan announced plans for construction of three small hydropower plants (HPPs) near Kolasin by 2012. The HPPs should be built on tributaries of Moraca and Tara and overall cost of the projects is estimated at 30 million euros.

§ § §

ANRM: oil and gas reserves sufficient for 15 years (Romania)

Alexandru Patruti, the president of National Agency for Mineral Resources (ANRM) said that Romania has oil and natural gas re-serves for some 15 years.

In this moment, natural gas reserves stand at some 185 billion cbm, while crude oil reserves stand at 74 million tons, Patruti said. The annual natural gas production stand at 12 billion cbm, which is produced by Romgaz and Petrom. In the same time, Petrom produces some 5 million tons of crude oil per year.

In the same time, coal reserves should cover domestic con-sumption in the next 30 years. The reserves of coal stand at 755 million tons, where only 100 million tons could be exploited.

23


Patruti did not reveal the amount of uranium reserves, yet he said the reserves could cover demand of NPP Cernavoda until 2017.

§ § §

Nuclearelectrica signed first electricity supply contracts in 2010 (Romania)

In November, Nuclearelectrica, the operator of nuclear power plant (NPP) Cernavoda, signed the first electricity supply con-tracts in 2010.

The company has sold five lots of electricity of 20 MWh/h each during entire 2010, or 167.2 GWh for each lot (the amount in-cludes possible outage of units in NPP Cernavoda in period of maximum of 400 hours).

The company demanded at least 37 euros/MWh, and obliga-tion of potential buyer to deliver 100 MWh/h of electricity at price of 42 euros/MWh in period of maximum 400 hours in case of unplanned outage of two units in NPP Cernavoda.

Nuclearelectrica sold electricity to Elcomex (at price of 40 eu-ros/MWh), Electromagnetica (40.7 euros/MWh), Rudnap (39 euros/MWh), Tinmar (38.7 euros/MWh) and EFT Romania (38.5 euros/MWh).

The electricity was sold on Centralized Markets for Bilateral Contracts of Romanian power market operator (OPCOM). The auctions took place on November 16 and 20.

§ § §

Hidroelectrica published new tender for consultancy services for HPP Tarnita-Lapustesti (Romania)

In the beginning of November, electricity producer Hidroelec-trica has published new tender for consultancy services in the project for construction of pump storage hydropower plant (HPP) Tarnita-Lapustesti (4x250 MW). The first tender, which was cancelled earlier, was published in June this year. The deadline in new tender was set at December 10.

As in the first tender, Hidroelectrica said that future advisor should provide financial and legal services in order to attract future investors and to establish project company, and the task should be completed in 18 months. The worth of the contract will be some 5 million euros.

According to previous information, the model for construc-tion of HPP Tarnita-Lapustesti will be similar to the model for construction of units 3 and 4 in NPP Cernavoda. The cost of the project is estimated at 1.3 billion euros. So far, the interest for the project has been expressed by Verbund, MVM Hungary, EDF, GDF SUEZ, as well as financial institutions EBRD and EIB.

§ § §

HPP Movileni inaugurated (Romania)

In mid November, interim prime minister Emil Boc and interim minister of economy Adrien Videanu inaugurated hydropower plant (HPP) Movileni. The power output of HPP is 34 MW and annual production should reach 112.5 GWh. The worth of the project was 150 million euros.

The HPP will help preventing floods and it will be used for ir-rigation. PM Boc said that some 135 million euros needed to be invested in order to complete the entire investment on Siret River.

§ § §

Hidroelectrica: EU could support construction of new HPPs on Danube (Romania)

Operation director of Hidroelectrica Dragos Corneliu Zachia said that Romania and Bulgaria have been negotiating on con-struction of new hydropower plants (HPPs) downstream from HPP Iron Gate 2, i.e. in Turnu Magurele, Macin and Silistra-Ca-larasi. Zachia confirmed that Romania had positive signals from EU authorities regarding these projects.

During the same occasion, Zachia said that company would continue with renewals of old units. The annual investments should reach some 300 million euros, where 60 % should be invested for construction of new units, while the rest should be allocated for renewals. In period 2009-2012, overall invest-ments should reach 560 million euros, where overall electricity output should be increased by 1 TWh.

According to company’s plans, by 2025, Hidroelectrica should utilize some 60 % of national hydropower potential.

§ § §

Hidroelectrica to publish tender for HPP Islaz in 2010 (Romania)

General manager of Hidroelectrica, Mihai David, said that tender documentation for construction of hydropower plant (HPPs) Islaz is almost completed and that tender should be published in spring next year. David said this after the meeting of Romanian-Serbian joint commission for exploitation of HPPs on Danube River.

The HPP will be built near village Islaz and it will have four units with overall output of 28 MW. The construction should start next year and it should last four years.

David also said that Romania had asked Serbia on its stand-point regarding construction of two HPPs that Romania wants to develop with Bulgaria on Danube. He said that Serbia’s ap-proval is needed in this regard and that Romania and Bulgaria have been negotiating on construction of these two HPPs for 35 years.

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David said that Serbia should present its opinion regarding this issue in May 2010, during the next meeting of Joint com-mission. Serbia should decide whether to participate in the project directly or to use its rights on its share of hydropower potential of Danube in some other way.

David said that hydropower potential of Danube River from Bazias to Macin is 22 TWh per year. Romania’s share is 11.8 TWh per year, where 6.5-7 TWh is being generated.

In the related news, Mihai David confirmed that Hidroelectrica signed 60 million euros loan agreement, while three more loan agreements should be signed by the end of the year, i.e. 30 mil-lion euros, 70 million euros and 135 million euros loan agree-ment.

§ § §

Hidroelectrica negotiates on purchase of wind power projects (Romania)

General manager of electricity producer Hidroelectrica, Mihai David, said that company has been negotiating with three companies regarding purchase of wind power projects.

During the first phase, the company should acquire the best of the three projects, David said. He did not reveal the name of the companies involved or worth of the projects. Sources said that output of particular wind farms is 100 MW.

The company earlier announced it would start construction of biomass power plant in 2010, where cost of the project should reach 40 million euros. Hidroelectrica plans to build five of such power plants.

§ § §

Srbijagas and Gazprom established South stream Serbia Company (Serbia)

On November 17, Serbian natural gas company and Russian Gazprom formed joint venture company for construction of South stream pipeline in Serbia. The company was named South stream Serbia (SSS) and it was registered in Swiss city of Zug.

The agreement for establishment of the first joint venture com-pany by Gazprom and participants in South stream project was signed in Bern by director of Srbijagas Dusan Bajatovic and Pavel Oderov, director of Gazprom’s South stream project. Ba-jatovic said that foundation of SSS marked the end of activities, which have started 18 months ago.

As it was earlier agreed, Srbijagas will own 49 % stake in SSS, while the majority stake will be owned by Gazprom.

Director of Srbijagas Dusan Bajatovic said that it might be necessary for SSS to establish its subsidiary in Serbia in the fu-ture, having in mind current laws in Serbia. This should hap-pen when company starts to acquire licenses and permits and when it starts construction works in Serbia.

Bajatovic announced that new company would continue with preparation of feasibility study for Serbian part of the project. This study should be completed by the end of this year, while main feasibility study for entire project should be completed in March 2010, Bajatovic said.

The Serbian section of the pipeline should be 450 km long, while its capacity should be 36-41 billion cbm, according to latest estimations of Srbijagas. The pipeline will enter Serbia on border with Bulgaria; the main hub will be near capital Bel-grade, while exit point will be on Hungarian border. The pipe-line should have an extension to Republic of Srpska (RS).

The cost of the project is estimated at 700 million euros, while director of Srbijagas believes that Serbia should earn some 500 million euros per year from transit fees.

Bajatovic said that Serbia, which should be able to store some 5-7 billion cbm of natural gas in the future, should become re-gional hub for transport, distribution and trade of natural gas and even to become regional energy hub, which will include electricity and oil.

As recalled, South stream project has been initiated by Gazprom and Italian Eni. The pipeline should run from Rus-sian port Novorossiysk under Black Sea (900 km long section) toward Varna (Bulgaria), from where the pipeline should run across Serbia, Hungary and Austria toward Italy.

The cost of the project is estimated at 20 billion euros, the pipe-line capacity should be 63 billion cbm, its construction should start in 2011 and the pipeline should be operational in 2015. So far, partnership agreements regarding the project have been signed by Serbia, Bulgaria, Greece, Hungary and recently Slov-enia.

Russian officials confirmed that they have been negotiating on partnership agreements for South stream project with Croatia, Austria and Romania.

§ § §

EPS and RWE signed protocol for construction of HPPs (Serbia)

In mid October in Germany, Power utility of Serbia (EPS) and German RWE signed a memorandum of understanding re-garding construction of hydropower plants (HPPs) in Serbia. The agreement was signed during official visit of president of Serbia Boris Tadic to Germany.

The MoU was signed by general manager of EPS Dragomir Markovic and CEO of RWE Jurgen Grossman and CEO of RWE Innogy (renewable energy unit of RWE) Fritz Varenholt in the presence of president Tadic and minister of economy of Ger-many Rainer Brüderle.

The MoU refers to construction of large pump storage HPP Djerdap 3, HPPs on Morava River and HPP Gornja Drina (the project jointly developed by EPS and Power utility of Republic of Srpska), with estimated overall power output of 3,000 MW.

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Head of EPS Dragomir Markovic said that overall worth of abovementioned projects is some 5 billion euros. By these projects, EPS wants to improve its green energy portfolio. Markovic hopes that start of the projects, i.e. related studies and analyses, should be initiated in this year.

PR official of RWE Annett Urbaczka said that MoU paved the way for the start of feasibility studies, which would determine which of the projects are the most viable. Analysts in Germany pointed out that RWE decided to focus its development projects in Eastern Europe. However, RWE has re-cently abandoned projects for construction of NPP Belene in Bulgaria, construction of LNG terminal in Croatia and construc-tion of TPP Kosovo Re.

On the other hand, RWE passed the first stage of the tender of EPS for construction of unit 3 in thermal power plant (TPP) Nikola Tesla B and TPP Kolubara B (700 MW each).

§ § §

Government approved feed-in tariffs (Serbia)

In the second half of November, after almost year of prepara-tions, the government of Serbia has adopted Bylaw on incen-tives for production of electricity from renewable energy sourc-es (RES) and in cogeneration power plants. During the same occasion, the government approved annexes and amendments to Program for implementation of national energy strategy of Serbia until 2012.

New legislation set guaranteed feed-in tariffs for entire output in RES power plants in period of 12 years since the start of op-erations.

According to bylaw, starting from January 1, 2010, investors will be entitled for incentives for electricity produced from green energy. The guaranteed feed-in tariffs will vary from 6.7 euro-cents/kWh up to 23 eurocents/kWh.

The feed-in tariff for municipal solid waste power plants will be 6.7 eurocents/kWh, for small hydropower plants 7.8-9.7 eurocents/kWh, for cogeneration power plants 7.6-10.4 euro-cents/kWh, for geothermal power plants 7.5 eurocents/kWh, for waste fired power plants 8.5-9.2 eurocents/kWh , for wind farms 9.5 eurocents/kWh, for biomass power plants 11.4-13.6 eurocents/kWh, for biogas power plants 12-16 eurocents/kWh, and finally, the feed-in tariff for solar power plants was set at 23 eurocents/kWh.

The new legislation should help Serbia to increase its RES out-put in 2012 by 735 GWh or by 7.4 % compared to 2007, minister of energy and mining, Petar Skundric said. In the same time, emission of greenhouse gasses should be reduced by 1 million tons.

According to the minister, by 2012, some 45 MW in small hydro-power plants should be built, as well as 45 MW in wind farms, 5 MW in solar power plants, 2 MW in biomass power plants and 5 MW in biogas power plants. The overall cost of the projects

should reach 200 million euros, and they should be developed by private investors.

Minister Skundric said that two small HPPs should be opera-tional by the end of the year, while ten licenses for construction of small HPPs and six licenses for construction of wind farms (overall output of 1,000 MW) had been issued so far.

Minister also said that overall annual renewable energy po-tential of Serbia is 4.3 million tons of oil equivalent, where 63 % should come from biomass, and 14 % from both water and sun, 5 % from wind and 4 % from geothermal sources. By 2012, share of bio-fuels in national transport should be 2.2 %, i.e. some 60,000 tons. Estimated annual output of bio-diesel in Serbia is some 140-250,000 tons.

§ § §

NIS: management confirmed 85 million euros loss in 2008 (Serbia)

In the second half of November, the management board of Oil industry of Serbia (NIS) approved the special audit presented by Ernst & Young in the first half of November, and confirmed that company had posted 85 million euros loss in 2008.

As recalled, the special audit was performed at the request of the government of Serbia, which holds 49 % stake in NIS. The special audit was in line with the original audit made by KPMG.

During the same session, the management approved the fi-nancial report for period January-September 2009, according to which NIS has posted net profit of 33.5 million euros during the third quarter. This result did not include payment of voluntarily dismissal wages, the company said.

The financial report for 2008 needs to be approved by the shareholders assembly. The representative of Serbia in the management board, Dusan Petrovic said that decision on how the loss would be covered should be reached during the first half of 2010. He implied that potential decision would be re-duction of nominal capital of the company.

Commenting the financial report for 2008, originally prepared by the former management (prior privatization of NIS), accord-ing to which company had posted 24 million euros of profit, Petrovic said that report had been made in accordance to com-mon accounting standards in NIS at the time. Petrovic also add-ed that government used NIS, a state-owned company at the time, to settle its debts. In addition, the objective reasons for losses were the sharp drop in oil prices in the end of 2008 and currency differences. Petrovic said that operational profit of NIS in 2008 was 52 million euros.

Minister of energy and mining Petar Skundric said that, de-spite loss of NIS in 2008, the government has no obligations toward majority owner, while ownership stakes would remain unchanged. He also said that nominal capital of NIS should be reduced by 85 million euros.

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General manager of NIS Kiril Kravchenko said that Gazprom Neft will not ask revision of privatization of NIS, despite the loss in 2008 and despite the compensation rights stemming from privatization contract. Kravchenko said that loss was the con-sequence of drop in oil prices, as well as inventory mistakes and non-implementation of international accounting standards.

Kravchenko said there would be no changes in ownership structure and changes in purchase price of majority stake in NIS. He said that shareholders decided to undertake all neces-sary measures in order to improve efficiency of the company in this moment and in the future.

Head of NIS said that last year’s loss would not affect already started investments, i.e. modernization of refineries will be continued in accordance to privatization contract.

Kravchenko said that, in the first nine months of 2009, NIS man-aged to reduce losses, to start production of euro diesel, to in-crease production of non-leaded gasoline and production of oil and natural gas. So far, over 1,050 workers voluntarily left the company, where overall dismissal wages amounted to 28.6 million euros.

In the related news, local media published that NIS was the largest company in Serbia in 2008. The company posted overall income of 3.7 billion euros.

§ § §

700 million euros needed for Radljevo lignite field (Serbia)

General manager of Kolubara lignite mine, Nebojsa Ceran, an-nounced that some 700 million euros should be invested for opening of Radljevo field. Before opening of Radljevo field, fields C and G should be opened in order to provide sufficient amounts of lignite for existing thermal power plants (TPPs) Nikola Tesla A and B, Kolubara and Morava and for future TPPs Kolubara B and unit 3 in TPP Nikola Tesla B.

Ceran said that annual investments should reach some 150 million euros during next 7-8 years, which should be one of the largest investment cycles in company’s history. The company plans to invest 800 million euros for new mining equipment.

Ceran announced that project for installation of new overbur-den removal system on Tamnava West field should be complet-ed soon. The cost of the project is 77 million euros. The funds were provided by EBRD and KfW Bank, while the equipment was produced by local and German companies.

In mid November, Kolubara started production on field E, which reserves are estimated at 350 million tons. During the first phase, the company will be able to produce 100 million tons from this field.

In 2008, Kolubara produced 30.5 million tons of lignite, from which 50 % of overall electricity in Serbia was produced.

§ § §

Energy minister: 10 % increase in electricity prices in 2010 (Serbia)

Minister of energy and mining Petar Skundric announced that electricity prices should be increased by 10 % starting from January 1.

Final decision on electricity prices should be reached by the end of this year. Minister was not able to say whether there would be only one increase in electricity prices during 2010.

Recently, Power utility of Serbia (EPS) demanded from the government to approve 20 % increase in prices starting from January 1. General manager of EPS, Dragomir Markovic, had said that electricity prices should be increased by 30 % in or-der EPS to have sustainable operation.

Spokesperson of EPS, Momcilo Cebalovic, reminded that electricity prices in Serbia have been unchanged since Au-gust last year. Cebalovic said that, according to current meth-odology for calculation of electricity prices, EPS could ask 20 % increase, but the government, most likely, would not ap-prove this high increase.

Spokesperson of Regulatory energy agency (REA) Dusan Dakovic said that EPS should submit request for increase in prices to REA, while the final decision would be reached by the government in accordance to recommendation of REA.

§ § §

Srbijagas: natural gas prices to be reduced in 2010 (Serbia)

General manager of natural gas company Srbijagas, Dusan Ba-jatovic, confirmed that natural gas prices should be reduced in 2010. Bajatovic said that natural gas prices for households should be reduced from present value of 325 euros/1,000 cbm down to 282 euros/1,000 cbm.

Despite the drop in global natural gas prices during 2009, Sr-bijagas was not able to reduce prices for domestic customers due to currency differences. Bajatovic reminded that compa-ny has posted 120 million euros loss during the last heating season.

Srbijagas will also propose introduction of subsides for un-derprivileged customers. Bajatovic also reminded that Sr-bijagas allows local distributors to issue delayed bills to its customers.

During the same occasion, Bajatovic said that first phase of construction of storage facility in Banatski Dvor should be completed by the end of 2009. The facility will be able to store 300 million cbm and to deliver 5 million cbm per day. Head of Srbijagas reminded that company had signed agree-ment with E.On regarding storage of 200 million cbm of natu-ral gas in Hungary. In this way, Srbijagas will be able to cover national natural gas consumption during 60 days in case of disruptions in natural gas import.

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So far, Srbijagas has invested 45 million euros for development of Banatski Dvor facility. Russian Gazprom, strategic partner of Srbijagas in this project, will officially enter the project in March 2010. Russian partner was obliged to deliver 350 million cbm of initial natural gas necessary for operation of the facility.

§ § §

Power exchange to be established in 2010 (Serbia)

By the end of 2010, Serbia should establish power exchange. This was said during the international conference organized by Belgrade Stock Exchange (BSE) in the second half of Novem-ber.

The power exchange should be established in cooperation with strategic partner, which should hold minority stake. The main task of strategic partner will be to establish trading plat-form, to develop settlement function and to enable expansion in the region.

Milos Mladenovic, executive director for system and market operation in Serbian transmission system and market opera-tor (EMS), said it was agreed that Power utility of Serbia (EPS) should be market maker of the future power exchange, which is vital during the initial stage of the exchange.

Mladenovic pointed out that Serbia, with eight electric borders, has natural advantage for establishment of successful power exchange, unlike to some non-successful examples in the re-gion.

§ § §

TPP Kostolac and China’s CMC signed cooperation protocol (Serbia)

In the end of November, director of thermal power plant (TPP) Kostolac Dragan Jovanovic, and vice president of China Nation-al Machinery and Equipment Import and Export Corporation (CMC) Jin Chun Sheng signed the protocol for development of TPP Kostolac B.

Jovanovic said that the capital projects, which have been initi-ated in April this year, will include renewal of two 350 MW units, construction of desulphurization facility, enlargement of the lignite mine and construction of unit 3. Estimated worth of all projects is 700 million dollars.

Vice president of CMC said that government of China has ap-proved economic measures for helping Chinese companies during economic recession, which include granting preferen-tial loans to other countries. He believes that this option should be used in order to start projects in TPP Kostolac in 2010.

According to release of Power utility of Serbia (EPS), ministry of energy and mining of Serbia has initiated the talks with CMC. Chair of the management board of EPS, Aca Markovic, said that the Board, in mid November, reached the decision for submit-ting the proposal for project in TPP Kostolac B to the govern-

ment of Serbia. Markovic expressed hope that government should reach the decision regarding this project very soon.

§ § §

EMS to invest 100 million euros in 2010 (Serbia)

General manager of Serbian transmission system and market operator (EMS), Milos Milankovic announced that company would invest 100 million euros in 2010. Out of this amount, 55 million euros will be provided from company’s income, while 45 million euros should be provided from loans and donations.

Milankovic hopes that EU should provide 20 million euros of donations to EMS in 2010. According to him, since 2001, EU has donated 75 million euros to EMS. The funds have been invested for several studies, technical assistance and for construction of power line toward Macedonia.

During 2010, EMS should initiate projects for construction of new interconnection lines toward Romania, Croatia, Hungary and Montenegro. In capital Belgrade, EMS should build new high voltage substation.

Head of EMS said that security of transmission system has been improved, while losses in transmission grid have been reduced down to 2.7 %.

§ § §

Ministry of energy: construction of nuclear power plants not an option (Serbia)

Ministry of energy and mining of Serbia said that construction of nuclear power plants (NPP) in Serbia is not possible due to moratorium on construction of NPPs.

The ministry issued this statement after Russian ambassador to Serbia Aleksandar Konuzin said that Russia is ready to build NPP in Serbia.

Ambassador Konuzin said that the first high-level talks related to nuclear energy have already taken place. Konuzin said that Russia was ready to cooperate with Serbia if it decided to de-velop NPP, but he said he was aware that construction of NPP has been banned in Serbia.

Minister of energy and mining Petar Skundric denied latest in-formation regarding nuclear energy and said that Strategy of energy development of Serbia until 2015 did not envisage con-struction of NPPs.

Local media reminded that, in the past, several highest officials in Serbia more than once announced plans for construction of NPP despite the moratorium. Analysts see the latest statements as another trial balloon.

§ § §

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Company / organization: EBRD, related Romania

Timisoara District Heating Project

Content: CET Colterm S.A. (“Colterm” or the “Company”), the district heating company owned by the City of Timi-soara, has applied for a loan from the European Bank for Reconstruction and Development (the “Bank”) for the modernisation of the municipal district heating system. The Company intends using the proceeds of the loan for the installation of new gas and steam turbines with hot water recovery boilers for cogen-eration of heat and electricity of 20 MW gross elec-tricity production with a 29 MW thermal output and for district heating and corporate management con-sultants. Colterm will be the implementing agency.The proposed project, which has a total estimated cost of EURO 22.5 million, will require the procure-ment of works and services for the following com-ponents:(a) Erection, Procurement and Construction (EPC) Contract;(b) procurement and implementation supervision (already contracted);(c) corporate development programme (already contracted)Contracts to be financed with the proceeds of a loan from the Bank will be subject to the Bank’s Procure-ment Policies and Rules and will be open to firms from any country. The proceeds of the Bank’s loan will not be used for the purpose of any payment to persons or entities, of 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 of official regulation of the Purchaser’s country.

Deadline: 24 Mar 2010 at 23:00, Timisoarad time

Contact: MR. Aurel MateiDeputy General ManagerTel: +40 256 434 614Fax: +40 256 431 616Email: [email protected]

Company / organization: EPS, related Serbia

Preliminary invitation

Content: Public Enterprise ‘Electric Power Industry of Serbia’ as the Employer notifies interested persons on its inten-tion to conduct an open procedure for the public pro-curement of services ‘Development and Implementa-tion of Business Efficiency Improvement Programme at Electric Power Industry of Serbia’, with approximate value of over 50.000.000 Dinars.

Public procurement procedure for the subject service will approximately start in the third quarter of 2009.

Contact: Mr. Aleksandar Jakovljevic,Tel: +381 11 3972 994, e-mail: [email protected].

Company / organization: EBRD, related Bulgaria

National Radioactive Waste Disposal Facility

Content: . The Kozloduy International Decommissioning Support Fund (KIDSF) has been established and is administered by the European Bank for Reconstruc-tion and Development (EBRD). One of the purposes of this Fund is to finance, or co-finance preparation and implementation of selected projects, which would require procurement of goods, works and services for establishment of the National Disposal Facility for Low and Intermediate Level Short Lived Radioactive Waste in an environmentally safe and cost effective manner.A Project Management Unit has been established and is in operation at State En-terprise Radioactive Waste to manage the projects notified below.This General Procurement Notice draws attention to the following new upcoming procurement activi-ties:• Pre-disposal Monitoring of the Radiana Site - Geo-desic Monitoring• Pre-disposal Monitoring of the Radiana Site – Geo-technical Monitoring and AnalysisThis project is for Geotechnical monitoring and anal-ysis of the Radiana site. The work • Pre-disposal Monitoring of the Radiana Site - Seis-mic Monitoring• Pre-disposal Monitoring of the Radiana Site – Geo-dynamic Monitoring• Pre-disposal Monitoring of the Radiana Site – Hydr-ogeological Monitoring and Geochemical Analysis• Pre-disposal Monitoring of the Radiana Site – Ra-diological Monitoring

• Pre-disposal Monitoring of the Radiana Site – Me-teorological Monitoring• Preparation of the Radiana Site• Technical Design and ISAR preparation for National Disposal Facility

More info on: http://www.ebrd.com/oppor/procure/opps/goods/general/091130a.htm

Deadline: 29 Nov 2010 at 23:59, Bulgaria time

Contact: Mr. Boris PekovExecutive DirectorState Enterprise Radioactive WasteBlvd, James Bourchier 51, fl.18Sofia 1407BulgariaFax. + 359 2962 5078e-mail: [email protected]


Energy efficiency rehabilitation at Martisa East mines

Content: . “Mini Maritza East” EAD (the “Employer”) intends using the proceeds of the grant funds provided by the “Kozloduy International Decommissioning Sup-port Fund” (the “KIDSF”), administered by the Eu-ropean Bank for Reconstruction and Development (the “Bank”) and of its own financial sources towards the cost of design, implementation and consultancy services for:A. Construction (Supply and Installation of Plant and Equipment) of on-line load control of the operation of the belt conveyors and excavators at “Mini Mar-itza East” EAD, Bulgaria.

Tenders:

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Content: . It shall include design, engineering, procurement, delivery, construction, installation, pre-commis-sioning and commissioning of on-line load control system (including software) to overburden removal, transportation and spreading facilities of Troy-anovo-1, Troyanovo-North and Troyanovo-3 Mines.The procurement of the contract is expected do be-gin in the beginning of the second quarter of 2010.

B. Rehabilitation (Supply and Installation of Plant and Equipment) of the power supply system that shall include design, engineering, procurement, delivery, construction and installation of plant and equipment of 4 off installation platforms required for the construction of new mobile sub-stations 20/6 kV and their transfer in Troyanovo-North Mines at “Mini Maritza East” EAD, Bulgaria

C. Rehabilitation (Supply and Installation of Plant and Equipment) of the substations, including instal-lation of new power transformers for Troyanovo-North and Troyanovo-3 Mines at “Mini Maritza East” EAD, Bulgaria.

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

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

Deadline: 24 Sept 2010 at 24:00, Stara Zagora time

Contact: Mr. Todor TodorovExecutive Director“Mini Maritza Iztok” EAD6260 Radnevo13 Georgy Dimitrov Str.Stara Zagora districtBulgariaFax : + 359 417 82417Email: [email protected]

Company / organization: EBRD, related Montenegro

EPCG Metering Proj. Goods, works, services & consultancy

Content: . Elektroprivreda Crne Gore (“EPCG”) has applied for a loan from the European Bank for Reconstruction and Development (the “Bank”) towards the cost of modernising the electricity distribution infrastruc-ture in Montenegro to enable EPCG to reduce losses, improve the quality and reliability of supply, and im-prove energy efficiency.

The proposed project has a total estimated cost of Euro 43 million, of which EUR 38 million is proposed to be financed by the EBRD, and will require the procurement of the following consultancy services, goods, works and services for:

(a) Goods and related services for purchasing of me-tering equipment for medium voltage, and the in-stallation of the aforementioned items;

(b) Goods and related services for purchasing of me-tering equipment for low voltage with remote read-ing and remote disconnection capabilities, and for cables, pillars, metering boxes, and auxiliary equip-ment for the installation of the aforementioned items;

Content: (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 Nov 2010 at 23:00, local time time

Contact: Mr Velimir StrugarDeputy DirectorFunctional Unit DistributionUl. Ivana Milutinovića 12,PodgoricaMontenegroFax: +382 20 241 235E-mail: [email protected]


T

Content: . Bulgartransgaz Silistra, Kozloduy, Oryahovo Devel-opmentBulgartransgaz EAD (the “Employer”) intends to use the proceeds of the Grant funds provided by the Kozloduy International Decommissioning Support Fund (the “KIDSF”), administered by the European Bank for Reconstruction and Development (the “Bank”) and its own resources to finance the cost and complete the Project for delivery and construc-tion of high pressure gas pipeline to, and gas regula-tion stations in Silistra, Kozloduy and Oryiahovo.The Project, which has a total estimated cost of EUR 23.2 million, will require the following deliveries and construction services:A. Delivery of steel pipes and fittings for a gas pipe-line. B. Delivery of gas valves. C. Automatic Gas Regulation Stations (AGRS). D. Construction of high pressure gas pipelines and gas regulation stations. Construction and Commissioning of about 70 km gas transmission pipeline, optical fiber cable line within the gas pipeline easement and two AGRS.

More info on:http://www.ebrd.com/oppor/procure/opps/goods/general/090901a.htm

Deadline: 1 Sept 2010 at 00:00, Sofia time

Contact: Mr. Angel SemerdjievExecutive Director Bulgartransgaz EAD66, Pancho Vladigerov Blvd. Sofia 1336 BulgariaFax : + 359 29396462e-mail: [email protected]

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Construction of wood biomass heating plant in town Triavna

Content: The project announced within this procurement no-tice will be partially financed from the Kozloduy In-ternational Decommissioning Support Fund (KIDSF), established in 2001 for supporting the decommis-sioning of Units 1-4 of the Kozloduy Nuclear Power Plant. One of the purposes of this Fund is to finance or co-finance preparation and implementation of se-lected projects that aim the necessary restructuring, upgrading and modernisation in the energy sector and improving energy efficiency.This General Procurement Notice draws attention to the forthcoming tender/s for supply of goods and installation of equipment for the construction of a modern biomass fired heating plant and the related district heating network in the town of Triavna.The tendering includes:1. Supply of loading machine and specialised wood transporting truck;2. Supply of district heating network pipes;3. Supply and installation of heating substations to customer sites.Overall budget for the project is Euro 4 million, from which Euro 0.8 million will be financed from KIDSF.The tendering for the above contract/s is expected to begin in the third quarter of 2009.

Deadline: 21 May 2010 at 00:00, Sofia time

Contact: Mr. Svetozar TodorovInvestor’s representativeBioEnergia Triavna OOD4 Trapezitsa str., entr. 4, fl. 4Sofia 1000, Bulgariae-mail: [email protected]/Telefax: +359 2 989 89 50


Purchase of OPGW cable

Content: JP “Elektroprivreda Srbije” (hereinafter refer to as JP EPS) for the purpose of realization of theproject “EPS Telecommunication System Establish-ment” publish the invitation for procurement ofOPGW cable with associated equipment.This Public Invitation for Tenders shall be published in the “Official Gazette of the Republic ofSerbia” and on the Portal of Public Procurement.JP EPS now invites Tenderers to submit sealed ten-ders for the following contract:Procurement of OPGW cable with associated equip-ment, Tender no. 06/09/PT.This contract will include:• Optical Ground Wire (OPGW) – app. 400.000 m;• Necessary installation accessories and fittings;• Underground non-metalic optical cable – app. 35.000 m;• All Dielectric Self Support Cable (ADSS) – app. 18.000 m;• Pigtails with E 2000 connectors – app. 1.000 pcs;• Optical joint boxes – app. 150 pcs;• Optical Distribution Frames (ODFs) – 16 pcs;• Inspection and Testing;• Operating and Maintenance manuals;• Training.

Contact: Mr. Predrag MitrovicTel: +381112628627Fax: +381112628992; Email: [email protected]


Rehabilitation and Modernisation of Power Units 3 & 6

Content: S.C. Complexul Energetic Turceni S.A. has applied for a loan from the European Bank for Reconstruction and Development [the Bank] and intends to use the pro-ceeds to finance the Rehabilitation and Modernisation of Power Units 3 & 6 – Phase I-Rehabilitation and Mod-ernisation of Unit 6 at its coal fired thermal power plant located in Turceni, Gorj County, Romania and the con-sultancy services related to this project. The proposed project, which has a total estimated cost of EUR 234 million (excluding VAT), will aim at the achievement of the following objectives:- increasing time and energy availability;- extending the unit operation period with 15 years;- improving technical-economic parameters;- improving environment conditions by reducing the noxes emissions to comply with the laws in force;- achieving technical conditions imposed by the inter-connectivity to UCTE.and will require the procurement of the following goods, works and services for:a) Rehabilitation and modernisation of the 1,035 t/h boiler and auxiliary plants;b) Rehabilitation and modernisation of the 330 MW turbine and auxiliary plants;c) Modernisation of the control, protection and regu-lating system within the UCTE norms;d) Related consultancy services.The tendering procedure and the works to be financed with the proceeds of a loan from the Bank will be sub-ject to the Bank’s Procurement Policies and Rules and will be opened to firms from any country. The proceeds of the Bank’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 of official regulation of the Purchaser’s country

Deadline: 9 Apr 2010 at 00:00, Turceni time

Contact: Eugen TunaruS.C. Complexul Energetic Turceni S.A.Uzinei Street, 1, Turceni, Gorj County, RomaniaTel: +40253 335 247Fax: +40253 335 122


Purchase of OPGW cable

Content: JP “Elektroprivreda Srbije” (hereinafter refer to as JP EPS) for the purpose of realization of theproject “EPS Telecommunication System Establish-ment” publish the invitation for procurement ofOPGW cable with associated equipment.This Public Invitation for Tenders shall be published in the “Official Gazette of the Republic ofSerbia” and on the Portal of Public Procurement.JP EPS now invites Tenderers to submit sealed ten-ders for the following contract:Procurement of OPGW cable with associated equip-ment, Tender no. 06/09/PT.This contract will include:• Optical Ground Wire (OPGW) – app. 400.000 m;• Necessary installation accessories and fittings;• Underground non-metalic optical cable – app. 35.000 m;• All Dielectric Self Support Cable (ADSS) – app. 18.000 m;

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Content: • All Dielectric Self Support Cable (ADSS) – app. 18.000 m;• Pigtails with E 2000 connectors – app. 1.000 pcs;• Optical joint boxes – app. 150 pcs;• Optical Distribution Frames (ODFs) – 16 pcs;• Inspection and Testing;• Operating and Maintenance manuals;• Training.

Contact: Mr. Predrag MitrovicTel: +381112628627Fax: +381112628992; Email: [email protected]


Rehabilitation and Modernisation of Power Units 3 & 6

Content: S.C. Complexul Energetic Turceni S.A. has applied for a loan from the European Bank for Reconstruction and De-velopment [the Bank] and intends to use the proceeds to finance the Rehabilitation and Modernisation of Power Units 3 & 6 – Phase I-Rehabilitation and Modernisation of Unit 6 at its coal fired thermal power plant located in Tur-ceni, Gorj County, Romania and the consultancy services related to this project. The proposed project, which has a total estimated cost of EUR 234 million (excluding VAT), will aim at the achievement of the following objectives:- increasing time and energy availability;- extending the unit operation period with 15 years;- improving technical-economic parameters;- improving environment conditions by reducing the noxes emissions to comply with the laws in force;- achieving technical conditions imposed by the intercon-nectivity to UCTE.and will require the procurement of the following goods, works and services for:a) Rehabilitation and modernisation of the 1,035 t/h boil-er and auxiliary plants;b) Rehabilitation and modernisation of the 330 MW tur-bine and auxiliary plants;c) Modernisation of the control, protection and regulat-ing system within the UCTE norms;d) Related consultancy services.The tendering procedure and the works to be financed with the proceeds of a loan from the Bank will be subject to the Bank’s Procurement Policies and Rules and will be opened to firms from any country. The proceeds of the Bank’s loan will not be used for the purpose of any pay-ment 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 of official regulation of the Purchaser’s country

Deadline: 9 Apr 2010 at 00:00, Turceni time

Contact: Eugen TunaruS.C. Complexul Energetic Turceni S.A.Uzinei Street, 1, Turceni, Gorj County, RomaniaTel: +40253 335 247Fax: +40253 335 122

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