January 2015

Serbia-Energy.Eu

South East Europe Energy

MarketDigest Monthly Report

1 Serbia Energy Market Monitoring Service

Serbia-Energy.Eu

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SERBIA ENERGY

1. Serbia: State budget 2015, Bank loan guarantees for public enterprises go up to 350 MEUR

As previously announced by the proposal of the state budget, the Government of Serbia will provide a guarantee in the amount of 350 MEUR for public companies in the energy sector in 2015.

http://serbia-energy.eu/serbia-state-budget-2015-bank-loan-guarantees-for-public-enterprises-go-up-to-350-meur/

2. Serbia exclusive report: EPS Power utility prepares for imple-mentation of EU environment directives, projects underway and new plans to secure financing on facilities refurbishment

Harmonization with European regulations in the field of environ-ment, because of its volume and interconnections is very com-plex and expensive process. Accessing negotiations in this field are referring to 200 legal acts that make even third of European

regulations. According to evaluations, adjustment in this field will cost Serbia even 10, 6 billion euro by 2030.

http://serbia-energy.eu/serbia-exclusive-report-eps-power-utility-prepares-for-implementation-of-eu-environment-directives-projects-underway-and-new-plans-to-secure-financing-on-facilities-refurbishment/

3. Serbia-West Balkans (Serb,Cro,BiH,MNE, MK) exclusive re-port: The Balkans power generation systems ,Challenges along the European road

Energy systems in countries of West Balkans ( Serbia, Croatia, Bosnia, Macedonia, Montenegro) rely dominantly on the fact that its two thirds of total electricity quantity are being produced from coal, specifically for Serbia where 70% of electricity is be-ing produced from coal while the electricity from the renewable sources makes only a little bit over 20 percent of the total con-sumption.

http://serbia-energy.eu/serbia-west-balkans-serbcrobihmne-mk-exclusive-report-the-balkans-power-generation-systems-challenges-along-the-european-road/

4. Serbia exclusive report: Harsh reality of serbian energy bal-ance relying on 33% of electricity imports, too late or last mo-ment for new power generation units

www.serbia-energy.eu

Serbia Energy Market Report Digest

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It is imperative that we enter a new period of construction, be-cause soon, the revitalized plants will also demand new invest-ments. It is necessary that we build new 1.000 megawatts within the following period, because, according to the strategy, it has been envisaged that 1.200 megawatts of capacities, their degree of utilization having dropped below 30 percent, should be withdrawn from production by 2025, and these capacities will be more than 40 years old at that moment.

http://serbia-energy.eu/serbia-exclusive-report-harsh-reality-of-serbian-energy-balance-relying-on-33-of-electricity-imports-too-late-or-last-moment-for-new-power-generation-units/

5. Serbia: Households retail electricity market opens, traders awaiting for new increased regulated price

The electricity market in Serbia is completely open from Janu-ary 1st, which means that households will be able to choose the electricity supplier. Households will have the right to supply the free market with electricity, if they assess that it is more pay-able, but not the obligation, namely they will be able to remain on public supply also after January 1st, said in the Electric Power Industry of Serbia EPS.

http://serbia-energy.eu/serbia-households-retail-electricity-market-opens-traders-awaiting-for-new-increased-regulated-price/

6. Serbia: With New Energy Law towards Harmonization with EU Rules

New Energy Law should enable Serbia to reach the highest de-gree in the EU accession process within the energy sector so far. By the adoption of this Law, all the measures from the EU Third Energy Package within the field of gas and electric power sector [were] fully applied, whereas renewable energy re-sources [were] encompassed by this package only indirectly due to the changes in the manner of functioning of the electric power sector, the Minister of Mining and Energy Aleksandar An-tić said earlier.

http://serbia-energy.eu/serbia-with-new-energy-law-towards-harmonization-with-eu-rules/

7. Serbia: HPP “Đerdap 2“, production plan exceeded by 15 per-cent

Despite encountering many problems in this year, hydro power plant “Đerdap 2″ is completely ready for the upcoming winter days. All planned and unplanned works have been completed, said Ljiljana Milicanović, the director of HPP “Đerdap 2. Every-thing is ready for the upcoming cold days – says director Mili-canović.

http://serbia-energy.eu/serbia-hpp-derdap-2-production-plan-exceeded-by-15-percent/

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8. Serbia: New delay in starting Serbian regional energy ex-change SEEPEX

Due to the delay in adopting the new Energy Law, the begin-ning of establishing an organized SPOT electricity market in Serbia has also been postponed, with an adequate platform for the envisaged establishment of a regional day-ahead market having been provided, and this for the third quarter of 2015.

http://serbia-energy.eu/serbia-new-delay-in-starting-serbian-regional-energy-exchange-seepex/

9. Serbia exclusive: Electricity Market in Serbia, the EU Require-ments and power market liberalization

Since 2006, when the Law on establishment on European Com-munity has become effective, Serbia is a step closer to the Euro-pean Union: through the legal entity of the European Commu-nity, the harmonization of the prescriptions in the field of energy with the legal achievement of the EU is being followed and re-ported continuously. The Contract on EC establishment is con-firmed by the Stability and Joining Agreement, which pointed out the necessity of regional cooperation in this field.

http://serbia-energy.eu/serbia-exclusive-electricity-market-in-serbia-the-eu-requirements-and-power-market-liberalization/

10. Serbia exclusive Power utility EPS restructuring under IMF monitoring interview with EPS CEO Aleksandar Obradovic

In the history of “Electric Power Industry of Serbia”, 2014 will be remembered as the year when the catastrophic weather condi-tions have left the huge consequences in the operation of EPS. However, there have been very good results as well. We have managed to maintain a dominant position in the second wave of the liberalization of the electricity market, although everyone ex-pected that we would be “destroyed” by the competition, says Mr. Aleksandar Obradovic, the director of EPS, Serbian power utility company.

http://serbia-energy.eu/serbia-exclusive-power-utility-eps-restructuring-under-imf-monitoring-interview-with-eps-ceo-aleksandar-obradovic/

11. Serbia: Alstom Grid Turkey delivers new transfer to TPP Nik-ola Tesla

Alstom Grid Turkey successfully delivered the generator trans-former for installation at Nikola Tesla Power plant Tent-B for Public Enterprise- Electric Power Industry of Serbia (PE EPS).The 725MVA, 21/410kV generator step-up transformer can supply electricity from the generator to the point of con-sumption by means of high voltage transmission line.

http://serbia-energy.eu/serbia-alstom-grid-turkey-delivers-new-transfer-to-tpp-nikola-tesla/

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12. Serbia: Power utility EPS to start investing in new power generation facilities, conventional and RES

Electric Power Industry of Serbia (EPS) in 2015 will begin to in-vest in new thermal power plant after more than 25 years, and change the organization in order to save at least 36 MEUR per year said Aleksandar Obradovic CEO of EPS. He explained that the Serbian Government adopted a plan of reorganization in which the idea was to classify the production and distribution companies.

http://serbia-energy.eu/serbia-power-utility-eps-to-start-investing-in-new-power-generation-facilities-conventional-and-res/

13. Serbia: Kostolac B3 lignite plant loan agreement bypasses public debate and contains unacceptable conditions

The Serbian parliament will on Monday vote on the ratification of a USD 608 million loan agreement from the China ExIm Bank for the construction of the 350 MW Kostolac B3 lignite power plant by Chinese company CMEC. Serbia’s latest addi-tion to its huge debt burden is being presented as a great suc-cess, but a new lignite plant is more likely to end up as a weight around our necks as we move towards the EU and apply EU cli-mate policies.

http://serbia-energy.eu/serbia-kostolac-b3-lignite-plant-loan-agreement-bypasses-public-debate-and-contains-unacceptable-conditions/

14. Serbia exclusive: Privatization of Power utility company, sce-narios and benefits, the analysis

Possible privatization of Serbia Power Utility Company EPS would provide short-term “lank” financial benefit for the budget, while at the same time would bring great risks. The risks are – the risk of a gradual EPS transition in the majority ownership of foreign partner and the possibility of a substantial increase in the electricity price.

http://serbia-energy.eu/serbia-exclusive-privatization-of-power-utility-company-scenarios-and-benefits-the-analysis/

15. Serbia: Power Purchase Agreement – a problem for all RES developers

Serbian Wind Energy Association (SEWEA) says that 3-4 inves-tors already have building permits and agreements with banks, but they are waiting for the Power Purchase Agreement for Re-newable Energy. In July last year, the Ministry of Energy adopted the Draft Power Purchase Agreement, but it was not acceptable to banks so that investors could not been able to close deals on financing of their projects.

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http://serbia-energy.eu/serbia-power-purchase-agreement-a-problem-for-all-res-developers/

16. Serbia exclusive: Bidders for new TPP Kolubara 2 and TENT B3, China vs others, report

The development of electric power system is a key link in the development of the entire electric power system of Serbia and about nine billion EUR should be invested in this area by 2030th, according to the new Energy Development Strategy Draft. It was estimated that the demands for electricity until 2025 would increase by 10.5 percent, and 16.6 percent by 2030th. No power plant was built in Serbia more than twenty years.

http://serbia-energy.eu/serbia-exclusive-bidders-for-new-tpp-kolubara-2-and-tent-b3-china-vs-others-report/

17. Serbia exclusive: Energy projects at the beginning – HPPs “Middle Drina” and HPPs “Upper Drina”

“Power Utility Company of Republika Srpska ERS” and “Serbia Power Utility Company EPS” concluded in September 2010th an agreement on a joint draft of the feasibility study for HPPs “Middle Drina” with a concept design, after which a preliminary agreement on cooperation in the project entered into EPS and Italian “Secci energia”. The investment value is estimated at

830 MEUR. Start of the project was planned for 2014th, and completion is scheduled for the period from 2020th to 2023rd.

http://serbia-energy.eu/serbia-exclusive-energy-projects-at-the-beginning-hpps-middle-drina-and-hpps-upper-drina/

18. Serbia: State power monopolies EPS and “Srbijagas” will not lose the market share due to the low prices

Small customers and households may or may not have to choose their electricity and natural gas supplier starting from New Year, while all the others are obliged to do so, says Ljiljana Hadzibabic from the Energy Agency. She added that the market opening will not affect state monopolies Power utility EPS and “Srbijagas” which will not lose the market.

http://serbia-energy.eu/serbia-state-power-monopolies-eps-and-srbijagas-will-not-lose-the-market-share-due-to-the-low-prices/

19. Serbia: RES Wind developers satisfied with new Energy law

As say investors in renewable energy sources, a new Law on Energy has made significant progress in terms of the legal framework for investment in RES. As Ana Brnabic, director of “Continental Wind Serbia” and representative of Serbian Wind Energy Association (SEWEA) stated three significant improve-ments have been made by the new Law.

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http://serbia-energy.eu/serbia-res-wind-developers-satisfied-with-new-energy-law/

20. Serbia: New energy law to boost RES projects, 700MW cap for wind developers

The extent to which solar has fallen out of favor in Serbia since ambitious plans for a 1 GW solar farm fell through has been spelled out by the government’s announcement that its PV am-bitions amount to 10 MW of new capacity up to 2020. Although the Belgrade government rushed through the adoption of an EU measure last month to liberalize its electricity market, the chief beneficiaries are likely to be wind developers, with national policy-makers aiming for 700 MW of new capacity by 2020.

http://serbia-energy.eu/serbia-new-energy-law-to-boost-res-projects-700mw-cap-for-wind-developers/

21. Serbia: Energy minister claim China Exim Bank 608MUSD loan extremely favorable

China Exim Bank’s USD 608.3 million, 20-year loan with a grace period of seven years is “extremely favorable,” Energy Minister Aleksandar Antic has said. The loan, granted for the construction of a new unit at Serbia’s Kostolac B coal-fired power plant, “will ensure the stability of the country’s energy sys-tem,” he added.

http://serbia-energy.eu/serbia-energy-minister-claim-china-exim-bank-608musd-loan-extremely-favorable/

22. Serbia: Power utility EPS published tender for TPP TENT unit A4 308MW; Feasibility study with reconstruction project for extension of operational life and increase of power

“The Feasibility study with the Conceptual reconstruction pro-ject in order to extend the operational life and increase the power of the block 4 (current power 308.5 MW) of TPP Nikola Tesla A”

http://serbia-energy.eu/serbia-power-utility-eps-published-tender-for-tpp-tent-unit-a4-308mw-feasibility-study-with-reconstruction-project-for-extension-of-operational-life-and-increase-of-power/

23. Serbia exclusive report: NIS and Gazprom – privatization, expansion across the region, power generation

Oil Industry of Serbia company NIS has been the largest and the most profitable company in Serbia meeting 75% of market demand for petroleum products and provides, on average, around 12% of the Republic budget. NIS has been among the biggest vertically integrated energy companies in the southeast-ern Europe. Retail network of the company includes over 500 service stations, fuel filling points and oil depots located in the Balkan countries.

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http://serbia-energy.eu/serbia-exclusive-report-nis-and-gazprom-privatization-expansion-across-the-region-power-generation/

24. Serbia: GazpromNeft NIS invests 326 MEUR in 2015th

Serbian Oil company NIS, owned by GazpromNeft, plans to in-vest 325 MEUR this year, the same as in 2014th, it was an-nounced from company. This year the company plans to begin the second phase of processing facilities modernization in the oil refinery in Pancevo, by the complex construction for deep oil refining. The company still considerably reduces the investment compared to the previously announced. NIS’s results for last year will not be great compared to 2013th due to an unexpect-edly high fall in oil and gas, higher depreciation and benefits, and tax increases from 10% to 15%.

http://serbia-energy.eu/serbia-gazpromneft-nis-invests-326-meur-in-2015th/

25. Serbia: Gov approves financing deal with China Exim Bank for new TPP Kostolac B

The Serbian government adopted on Monday the Bill on ratifica-tion of the preferential buyer loan agreement for the realization of the second phase of Kostolac B power plant project, which was concluded with China’s Export-Import Bank (Exim Bank).

http://serbia-energy.eu/serbia-gov-approves-financing-deal-with-china-exim-bank-for-new-tpp-kostolac-b/

26. Serbia: The real costs of RES projects, consumers associa-tion against the investors interest

Expensive undertaking: Green electricity will cost us 1, 3 billion EUR. In the next five years, Serbia will have to increase the par-ticipation of solar parks and wind farms, as well as other eco-energy sources from 21.2 to 27 per cent. Serbia is the only country in Europe that doesn’t have a wind farm and hasn’t pro-duced a single green watt so far, although it has all the natural conditions to be a leading producer of electricity from wind power in Europe.

http://serbia-energy.eu/serbia-the-real-costs-of-res-projects-consumers-association-against-the-investors-interest/

27. Serbia: TPP Morava 20MEUR overhaul to extend operation life span for 10years

Thermal power plant (TE) “Morava” from Svilajnac, part of Pub-lic Enterprise TPP “Nikola Tesla” Obrenovac, this year will have a capital repair that will extend its life for the next ten years. The repair will begin on June 1st and will run until 27 November and it will “cost” more than 20 million euros, stated director of “Mo-rava” Marija Stevanovic.

http://serbia-energy.eu/serbia-tpp-morava-20meur-overhaul-to-extend-operation-life-span-for-10years/

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28. Serbia: Direction shift for Serbian power utility EPS, inter-view with PhD. Branko Kovačević Chairman of the Supervisory Board of PE EPS

The status of the “Electric Power Industry of Serbia“ as a public enterprise must be changed and it is necessary that the EPS adapt to the modern time requirements. The EPS has to be-come a joint stock company and a profitable company, it has to earn for itself and for the state – Professor Dr. Branko Kovače-vić, dean of the Faculty of Electrical Engineering and Chairman of the Supervisory Board of the PE EPS says in the interview for our paper.

http://serbia-energy.eu/serbia-direction-shift-for-serbian-power-utility-eps-interview-with-phd-branko-kovacevic-chairman-of-the-supervisory-board-of-pe-eps/

29. Serbia: GazpromNeft manages reserves of 50 million tons of oil

The natural reservoirs in Serbia have reserves of 14 million tons of oil and gas, but it is estimated that Serbia has “black gold” four times more. Oil stocks grow every year, but also the annual production. So we drew 650,000 tons from the land four years ago, and in 2014th – nearly twice more. However, the state of Serbia “does not outburst” “black gold” directly in the money. All oil deposits held by Oil Industry of Serbia in the coun-try and the world belong to Russian “Gazpromneft”.

http://serbia-energy.eu/serbia-gazpromneft-manages-reserves-of-50-million-tons-of-oil/

30. Serbia: Reservoir Capital Canada and Inergia Italy signed a letter of intentions for HPPs Brodarevo

The Company Reservoir Capital and Inergia signed a letter on intentions in October last year to initiate the procedure for the construction of HPP Brodarevo in southern Serbia. In 2012th, Reservoir Capital made positive feasibility study for hydropower project Brodarevo. The company has worked for years in order to conclude an agreement with the Government of Serbia for the land use owned by the state, which is affected by the pro-ject.

http://serbia-energy.eu/serbia-reservoir-capital-canada-and-inergia-italy-signed-a-letter-of-intentions-for-hpps-brodarevo/

31. Serbia, SEE: SEE region & Energy community, introduction of National Emission Reduction Plans for TPPs

On 24th October 2013, the Ministerial Council of the Energy Community adopted two decisions containing the rules for the design and operation of large combustion plants. In the first de-cision, the Council adopted the Large Combustion Plants Direc-tive, whereas the other decision incorporates the Chapter III and the Annex V of the Industrial Emissions Directive and sets

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1st January 2018 as the implementation deadline for new plants.

http://serbia-energy.eu/serbiasee-see-region-energy-community-introduction-of-national-emission-reduction-plans-for-tpps/

32. Serbia: Tender for electricity billing raises fierce investiga-tion of EPS power utility

Electric Power Industry of Serbia (EPS) announced a tender for a contract worth 15 million euros in which contains conditions suitable only to foreign companies while domestic companies are eliminated as they claim from domestic producers assoca-tion.

http://serbia-energy.eu/serbia-tender-for-electricity-billing-raises-fierce-investigation-of-eps-power-utility/

33. Serbia: Power utility EPS tender for IT system for electricity billing under public investigation

EPS has announced the tender for a job worth around 15 mil-lion euros in which such conditions have been set that they suit only one foreign company whereas domestic companies are thereby eliminated, ”Blic“ daily claimed

http://serbia-energy.eu/serbiapower-utility-eps-tender-for-it-system-for-electricity-billing-under-public-investigation/

34. Serbia, SEE: Guidelines for Determining VAT for Transac-tions Related to Cross-Border Electricity Exchange in Energy Community

In January, the Energy Community Secretariat announced the guidelines for determining the VAT rate for cross-border electric-ity trade between the contracting parties within the Energy Com-munity (EnC), aimed at harmonizing the approach for overcom-ing tax obstacles in cross-border electricity trade which is rele-vant to the implementation of the Treaty Establishing the EnC.

http://serbia-energy.eu/serbia-see-guidelines-for-determining-vat-for-transactions-related-to-cross-border-electricity-exchange-in-energy-community/

35. Power utility EPS, tender: Preparation of design study “Use of ash produced in TPP PE EPS for the construction and recon-struction of hydro-technical structures”

Public Enterprise “Electric Power Industry of Serbia” (EPS) has announced an open procedure for public procurement whose subject is the preparation of design study entitled “Use of ash produced in TPP PE EPS for the construction and reconstruc-tion of hydro-technical structures (river embankments, dams, etc.).”

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http://serbia-energy.eu/power-utility-eps-tender-preparation-of-design-study-use-of-ash-produced-in-tpp-pe-eps-for-the-construction-and-reconstruction-of-hydro-technical-structures/

36. EPS TPP Kostolac, tender: Design and Consulting Services “The drafting of hydro-construction conceptual design of water drainage from the Mlava and Danube coast, northwest of the contours of the Drmno open mine pit

The company “Thermal Power Plants and Mines Kostolac” (TE – KO Kostolac) announced a public procurement for design and consulting services ” The drafting of hydro-construction concep-tual design of water drainage from the Mlava and Danube coast, northwest of the contours of the Drmno open mine pit “.

http://serbia-energy.eu/eps-tpp-kostolac-tender-design-and-consulting-services-the-drafting-of-hydro-construction-conceptual-design-of-water-drainage-from-the-mlava-and-danube-coast-northwest-of-the-contours-of-the-drmn/

37. Serbia: World Bank claim Tamnava open mine pit water pumping financed project is clean, story revealed

World Bank financed projects such as water draining of open mine pit Tamnava – “West field”, prescribes mandatory tender announcement. Thus Vesna Kostic, advisor for public relations of this international financial institution, commented on the rea-sons why Power utility EPS had to announce a tender for the

selection of the company that will pump out water from the Kolu-bara which poured in Tamnava “West field” during last year’s floods. Why did BIRN omit the role of the World Bank in its analysis of transferring water from the open pit mine in the Kolu-bara?

http://serbia-energy.eu/serbia-world-bank-claim-tamnava-open-mine-pit-water-pumping-financed-project-is-clean-story-revealed/

38. Serbia: TPP Morava overhaul project 20MEUR to extend op-eration cycle

Thermal power plant (TPP) “Morava” from Svilajnac which work within the Public Enterprise “Nikola Tesla” Obrenovac will have capital repairs this year that will extend its life for the next ten years.The overhaul will begin on June 1st and will it run until Novem-ber 27th and it “will cost” more than 20 MEUR, told Marija Steva-novic director of “Morava”.

http://serbia-energy.eu/serbia-tpp-morava-overhaul-project-20meur-to-extend-operation-cycle/

39. Serbia: GazpromNeft NIS delays mining rent fees pay-ments?

GazpromNeft managed Oil Industry of Serbia (NIS) pays less and less on behalf of mining rents to Vojvodina and local gov-

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ernments, although official reports indicate that the company si-multaneously increases the volume of domestic oil and gas pro-duction , writes Vojvodjansko-istrazivacki centar (VOICE), refer-ring to the documents.

http://serbia-energy.eu/serbia-gazpromneft-nis-delays-mining-rent-fees-payments/

2 South East Europe• Hungary• Croatia• Bosnia• Bulgaria• Montenegro• Slovenia• Macedonia• Romania• Albania

SEE Energy Market

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1. Romania: Challenges on energy market, chance for Inves-tors

On the global level, the energy sector is under great pressure: the discovery and exploitation of oil shale, the encouragement of renewable energy resources development and the recent drop in the oil price, represent a pressure on the companies in the energy sector. Only the companies from the field of public services – energy and gas transmission and distribution – have not been affected by this. The situation is still not favorable for producers and suppliers, but opportunities for long-term inves-tors are starting to appear.

http://serbia-energy.eu/romania-challenges-on-energy-market-chance-for-investors/

2. Bosnia exclusive: Who are the new “Players” on the BiH elec-tricity market?

As of 1st January, the citizens of Bosnia and Herzegovina can choose among 24 electricity suppliers possessing the buyer supply licenses of regulatory bodies. In addition to the three ex-isting electric power industries, that will continue to dominate the market, some of the strong regional, but also European, companies appear as suppliers.

http://serbia-energy.eu/bosnia-who-are-the-new-players-on-the-bih-electricity-market/

3. Montenegro: The Power utility EPCG joint venture with A2A, Italians to decide on agreement renewal by april 2015

A2A published a note on its official website stating that the deci-sion to remain in EPCG could be made by April, and that obliga-tions and requirements under the existing agreement with the Montenegrin government will be effected by then. In the state-ment writes that during “intense negotiations” with representa-tives of the Montenegrin government during a meeting with Mon-tenegrin Prime Minister on December 20th and 21st, discussed the conditions for the renewal of the agreement.

http://serbia-energy.eu/montenegro-the-power-utility-epcg-joint-venture-with-a2a-italians-to-decide-on-agreement-renewal-by-april-2015/

www.serbia-energy.eu

South East Europe Energy Market

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4. Romania: Oltenia energy holding complains at regulator deci-sion to change tariffs (ova vest je stavljena dva puta u istom danu)

Tariffs for medium and high voltage power introduced by the Na-tional Authority for Energy Regulation affects large industrial customers, including Oltenia Energy Complex. On 15 Decem-ber 2014, the National Regulatory Authority for Energy (ANRE) issued for each distribution operator, which amended the order distribution tariffs high / medium / low voltage.

http://serbia-energy.eu/romania-oltenia-energy-holding-complains-at-regulator-decision-to-change-tariffs/

5. Bulgaria: Ministry of Energy considering sale of Bulgarian En-ergy Holding shares

The sale of shares of the Bulgarian Energy Holding (BEH) is en-visaged in the mid-term period. The envisaged plan is still in the design phase. The idea of listing a portion of shares of the state energy companies on the market appeared in 2009, but it faded afterwards.

http://serbia-energy.eu/bulgaria-ministry-of-energy-considering-sale-of-bulgarian-energy-holding-shares/

6. Montenegro exclusive: The new Government Strategy, The Large power plants on the Moraca and Komarnica Rivers

All investigations for hydropower plant (HPP) on the Moraca River are completed; the preliminary design and construction could begin as soon as they find a suitable offer. If the govern-ment wants to restore the tender process, the documentation is done and the procedure can begin immediately, according to the proposal of the Energy Development Strategy of Montene-gro by 2030th, which the government adopted recently.

http://serbia-energy.eu/montenegro-exclusive-the-new-government-strategy-the-large-power-plants-on-the-moraca-and-komarnica-rivers/

7. Albania exclusive: Energy investment plan 2014-2016; TSO and Power gen investments, gas and electricity interconnec-tions projects

During 2014 Albania is expected to adopt a new law on the elec-tricity sector.With the adoption of this law further liberalization of the energy market will be enabled, with a goal to reach full mar-ket opening by 1 January 2015in accordance with the objec-tives of the Energy Community Treaty, according to the govern-ment program.In accordance with the scenario envisaged with the adoption of the new law for electricity sector, provided the preparation of the new model of the electricity market.

http://serbia-energy.eu/albania-exclusive-energy-investment-plan-2014-2016-tso-and-power-gen-investments-gas-and-electricity-interconnections-projects/

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8. Macedonia exclusive: Restructuring of Macedonian Electric Power Industry

During 2005, significant changes occurred in the electric power sector in Macedonia. Since 1st January 2005, there have been two new, mutually independent electric power companies cre-ated by the demerger of the former vertically integrated com-pany ESM (Electric Power Industry of Macedonia). One of them performs the activities of electricity generation, distribution and supply and it has retained the old name ESM.

http://serbia-energy.eu/macedonia-exclusive-restructuring-of-macedonian-electric-power-industry/

9. Romania: Electricity Export to Serbia, Hungary and Bulgaria – 7.28 TWh

In accordance with the data registered by the European Net-work of Transmission System Operators (ENTSO-E), Romania exported 7.28 TWh of electricity last year. This is by 54 percent more in comparison with the year 2013. The fact that the import is higher even with respect to the year 2008, when 7 TWh were exported, is surprising. Around 12 percent of the Romanian elec-tricity production was exported to Serbia, Bulgaria and Hungary.

http://serbia-energy.eu/romania-electricity-export-to-serbia-hungary-and-bulgaria-7-28-twh/

10. Turkey: Soma B TPP 900MW sold for 685MUSD

Soma B Thermal Power Plant, in the Manisa province of Tur-key, was privatized on Tuesday through a tender which was won by Konya Seker Sanayi ve Ticaret, Konya Sugar Industry and Trade, for $685.5 million. The power plant, which is a lignite-fired production plant, has a capacity of 900 megawatts with six power units.

http://serbia-energy.eu/turkey-soma-b-tpp-900mw-sold-for-685musd/

11. Romania: Hidroelectrica sells 33,000 megawatt-hours of electricity

After breaking the ice on the new trading platform PCCB-LE two days ago, Hidreoelctrica announced a tender for sale of 33,600 megawatt-hours of electricity. The sale can be partial, and the delivery is scheduled for January, with a starting price of 42 Euros per megawatt-hour. The auction will be held on January 20th. PCCB-LE platform which is being managed by OPCOM, requires extended form of auctions, which does not allow price contracting and variable quantity.

http://serbia-energy.eu/romania-hidroelectrica-sells-33000-megawatt-hours-of-electricity/

12. Hungary: Energy trading connections of MET & Hungary, A network of companies that shares an address in Zug

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The opposition Democratic Coalition is calling on Prime Minister Viktor Orban to cancel all contracts between Hungary and MET, a Swiss-based energy trader. As FreeHungary reported earlier the Swiss newspaper Basler Zeitung published Berhard Odehnal’s article titled ‘A network of companies that shares an address in Zug and a loyalty to Hungrian prime miniser Vikor Orbán’. The article states, that Hungarian oligarchs want to par-ticipate in the international exchange of commodities. This is why the network of companies was formed in the canton of Zug.

http://serbia-energy.eu/hungary-energy-trading-connections-of-met-hungary-a-network-of-companies-that-shares-an-address-in-zug/

13. Bulgaria: 1600MW TPP Maritsa East 2 extends life span for another 20years after overhaul

Bulgarian coal-fired thermal power plant (TPP) Maritsa East 2 received a licence to operate its Unit 7 following an overhaul. The licence was granted on January 6 after the unit passed a 72-hour operational test, the TPP operator said in a notice pub-lished on its website.

http://serbia-energy.eu/bulgaria-1600mw-tpp-maritsa-east-2-extends-life-span-for-another-20years-after-overhaul/

14. Croatia: Power utility HEP to invest 218MEUR in NPP Krsko extension of operating span until 2043

NPP Krško will not stop its operation in 2023 because its operat-ing life is extended until 2043, meaning that Croatian power sys-tem will have another 28 years of electricity from this fundamen-tal, stable and reliable source. Based on the results of the study on economic justification of extension of Nuclear Power Plant operating life, created by PricewaterhouseCoopers from Lon-don, the members of the Supervisory Board of NPP Krško agreed on late November 2014 to extend its operating life until 2043. Regular operating lifetime of NPP Krško was supposed to end in 2023.

http://serbia-energy.eu/croatia-power-utility-hep-to-invest-218meur-in-npp-krsko-extension-of-operating-span-until-2043/

15. Montenegro: TSO company CGES business results 2014 successful says Head of Board of Directors

Montenegrin Transmission System (CGES) records the in-crease in the revenues on the basis of the transmission network use and rental of cross-border transmission capacity, which re-sults in lower tariffs for consumers in Montenegro, said the president of the Board of Directors of the company, Dragan Laketic. Laketic said that although they did not have all neces-

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sary information, they expected that last year’s operating result be good, maybe even excellent.

http://serbia-energy.eu/montenegro-tso-company-cges-business-results-2014-successful-says-head-of-board-of-directors/

16. Croatia: Power utility HEP plans 468MEUR investment cy-cle into HPP modernization

Croatian state-owned power utility HEP announced it should in-crease its hydro power capacity by an additional 111-124 MW thanks to a 468.9 million euro investment cycle, it was con-firmed to Serbia Energy. The implementation of these hydro power investments and upgrades should raise overall annual production by around 300 GWh.

http://serbia-energy.eu/croatia-power-utility-hep-plans-468meur-investment-cycle-into-hpp-modernization/

17. Bosnia/Republika Srpska: Power generation results for 2014

“Electric Power Industry of Republika Srpska” produced 5 mil-lion 655 gigawatt hours of electricity in 2014th , which is about 40 gigawatt hours more than the planned amount and we can be extremely pleased with this fact, stated Blagoje Supic, Ex-ecutive Director for Economic and Financial Affairs of that com-pany.

http://serbia-energy.eu/bosniarepublika-srpska-power-generation-results-for-2014/

18. Hungary: INA refineries reduce MOL’s profitability says MOL CEO Molnar

INA refinery capacities greatly exceed demand in Croatia and reduce the profitability of MOL’s refinery, said Jozsef Molnar, chief executive officer of the Hungarian oil and gas group MOL, which wants to retain its status as a strategic partner in INA. “Before INA consolidation, the refineries of Hungarian MOL were among the three most profitable in Europe, since INA’s re-fineries have been associated to them, we can no longer claim that”, said among other things Wirtschaftsblatt Molnar, who is also a member of INA Supervisory Board in an interview for Aus-trian business daily.

http://serbia-energy.eu/hungary-ina-refineries-reduce-mols-profitability-says-mol-ceo-molnar/

19. Romania: Hidroelectrica prepares to enter the stock ex-change in the first half of 2015th

The largest company for the electricity production in Romania, Hidroelectrica might come out on the stock exchange in the sec-ond half of 2015th, after it had to postpone its (IPO) scheduled for June 2014th due to the return of the bankruptcy. Another of-

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fer that will be found in the stock exchange in mid-next year will be energy complex Oltenia.

http://serbia-energy.eu/romania-hidroelectrica-prepares-to-enter-the-stock-exchange-in-the-first-half-of-2015th/

20. Hungary: Independent energy expert András Perger finds secrecy about Paks 2 project “distressing”

This interview offers you everything you ever wished to know of Hungary’s proposed, major nuclear project. The in-depth inter-view is like the transcript of a symposium about the pros and cons of Hungary’s planned life extension and expansion of the Paks nuclear power plant. The issues addressed are technical and financial but the language is for the general reader. A staf-fer of the Climate Policy Institute and Applied Communications since 2002, the interviewee, environmental engineer András Perger specializes in nuclear energy, conventional energy re-sources and energy policy.

http://serbia-energy.eu/hungary-independent-energy-expert-andras-perger-finds-secrecy-about-paks-2-project-distressing/

21. Hungary: Is it about NPP Paks or future energy security?

The question is not whether the two new reactors of Paks should be built but how other power plants will be built in the next decade so that Hungary’s electric power supply should re-main secure. MAVIR Pte. Ldt. [(the manager, operator and

owner of the Hungarian electricity transmission grid] says that in the period until 2030 Hungary will need additional electric ca-pacity of 7300 MW, especially to replace old, decommissioned power plants.

http://serbia-energy.eu/hungary-is-it-about-npp-paks-or-future-energy-security/

22. Bosnia: Gazprom reduces price for importer

Price of Russian gas which Gazprom supplies to Bosnia and Herzegovina has been lowered by 10 percent since January 1st 2015th, and now stands at 340 dollars per 1,000 cubic meters. The highest price of Russian gas was recorded two and a half years ago, when it stood at 540 dollars per 1,000 cubic meters. This means that gas is cheaper for about 200 dollars per 1,000 cubic meters, or about 35 percent.

http://serbia-energy.eu/bosnia-gazprom-reduces-price-for-importer/

23. Hungary: TSO starts investment cycle to upgrade power line pillars and optical connections

Transmission system operator MAVIR, part of the state-owned energy group MVM, will spend more than 12.5MEUR on the up-grade of power line pillars and the optical connection of power

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lines under two tenders, the latest issue of the Public Procure-ment Gazette shows.

http://serbia-energy.eu/hungary-tso-starts-investment-cycle-to-upgrade-power-line-pillars-and-optical-connections/

24. Croatia: Market operator halts new purchase agreement from RES

Croatian energy market operator (HROTE) announced, that in 2015 it will not continue concluding contracts on purchase of electricity on the basis of existing tariff system for generation from renewable energy sources and cogeneration, except con-tracts on purchase of electricity generated from facilities using solar energy and wind farms.

http://serbia-energy.eu/croatia-market-operator-halts-new-purchase-agreement-from-res/

25. Bosnia: Power company EPBiH delays Wind park Podve-lezje for 2016

Building Wind park Podvelezje was supposed to start in the last, and to be completed this year. However, work has not be-gun yet and it is not known when it will exactly start. Mostar Mayor Ljubo Beslic has recently warned BiH Electric Power In-dustry that if it does not start with the building in the first six months of this year, it could be left without the necessary per-mits.

http://serbia-energy.eu/bosnia-power-company-epbih-delays-wind-park-podvelezje-for-2016/

26. Bosnia: Gov approves EIB loan for HPP Vranduk

BiH Federation Government approved a decision on accep-tance of FBiH responsibilities under the Finance Contract be-tween European Investment Bank (EIB) and Bosnia and Herze-govina for the Project “Renewable Energy in HPP Vranduk” in the amount of 37.5 MEUR for PE BiH Electric Power Industry j.s.c. Sarajevo.

http://serbia-energy.eu/bosnia-gov-approves-eib-loan-for-hpp-vranduk/

27. Croatia: Famous consulting firms in race for Krk island gas terminal advisory services

Eight bids were submitted on the tender for legal, business and financial advisors of LNG Croatia Company for assisting in the implementation of the gas terminal on Krk island. Some offers are not satisfactory because the bank guarantee was not sub-mitted, and all received documents will be evaluated in the next 30 days. The crucial will not be the offers financial weight but the expertise to do the job and references, and the contract is estimated at 1, 7 MEUR excluding VAT.

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http://serbia-energy.eu/croatia-famous-consulting-firms-in-race-for-krk-island-gas-terminal-advisory-services/

28. Romania: E.ON merges two DSO companies to increase market share

According to press release E.ON Romania, completed the merger of two distribution companies in the first integrated gas and electricity distribution company on the Romanian market. The company started its operation on January 1, and operates with over 20,000 kilometers of natural gas distribution network and more than 80,000 kilometers of electricity distribution net-work for around three million customers.

http://serbia-energy.eu/romania-e-on-merges-two-dso-companies-to-increase-market-share/

29. Romania: Regional stock exchange does not affect the elec-tricity price for now

According to the suppliers, after two months of regional electric-ity market, there was no significant price fluctuation on the do-mestic market. Active energy traders believe that trading on the regional stock exchanges led to lower prices on the SPOT mar-ket during December. Most operators consider that the effects have come from the region and that local prices have tradition-ally fallen during December due to the holiday season, when

most companies did not work, and accordingly, recorded a lower consumption.

http://serbia-energy.eu/romania-regional-stock-exchange-does-not-affect-the-electricity-price-for-now/

30. Macedonia: Disputable cost of EBRD financed new HPP Boskov Most, ELEM Power utility will be under critical financial burden

he total costs of the Boskov Most hydropower plant project in Macedonia will possibly cost more than twice the projected EUR 84 million, considering that many aspects have so far not been studied or remain unresolved, claim from Ecosvest NGO. The project includes a dam of 33 metres height and a power plant with a total capacity of 68MW. In 2011 the European Bank for Reconstruction and Development (EBRD) approved a loan over EUR 65 million plus a EUR 19 million equity share in the project company ELEM.

http://serbia-energy.eu/macedonia-disputable-cost-of-ebrd-financed-new-hpp-boskov-most-elem-power-utility-will-be-under-critical-financial-burden/

31. SEE: Guidelines for Determining VAT for Transactions Re-lated to Cross-Border Electricity Exchange in Energy Commu-nity

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In January, the Energy Community Secretariat announced the guidelines for determining the VAT rate for cross-border electric-ity trade between the contracting parties within the Energy Com-munity (EnC), aimed at harmonizing the approach for overcom-ing tax obstacles in cross-border electricity trade which is rele-vant to the implementation of the Treaty Establishing the EnC.

http://serbia-energy.eu/serbia-see-guidelines-for-determining-vat-for-transactions-related-to-cross-border-electricity-exchange-in-energy-community/

32. Hungary: NIS GazpromNeft Serbia failed to fulfill its deal with Falcon Oil & Gas

Falcon Oil & Gas co has announced the expiry of the extension granted to its partner GazpromNeft Oil industry of Serbia NIS regarding their obligatory three-well drilling programme in Fal-con’s Makó Trough Licence in Hungary. In January 2013, Fal-con and NIS agreed to complete a three-well drilling pro-gramme targeting the relatively shallow Algyo Play, by July 2014.

http://serbia-energy.eu/hungary-nis-gazpromneft-serbia-failed-to-fulfill-its-deal-with-falcon-oil-gas/

33. Croatia: Oil price games, storage and forward contracts

Adriatic oil storage Janaf signed an agreement on oil transporta-tion in 2015th with GazpromNeft NIS, the largest Serbian com-pany for oil and gas, referring to the 1.700.000 tons of oil.The value of the cash flows of this job was not disclosed, and the amount was slightly lower than last year’s 1.750.000 tons and 1.800.000 tons contracted in 2013th.

http://serbia-energy.eu/croatia-oil-price-games-storage-and-forward-contracts/

34. Macedonia report: Draft Energy Strategy until 2035th, reduc-tion of the coal production & RES growth in the core of the en-ergy strategy

Macedonian Energy Association MEA presented a detailed en-ergy strategy for Macedonia, drafted by the Academy of Sci-ence and Arts, which is based on greater energy efficiency and greater use of renewable sources in energy production. The strategy covers the period up to 2035th and provides an in-crease in the average energy consumption of 2.3 percent per year.

http://serbia-energy.eu/macedonia-report-draft-energy-strategy-until-2035th-reduction-of-the-coal-production-res-growth-in-the-core-of-the-energy-strategy/

35. Serbia: EU energy harmonization, progress report for power market and market framework

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In the annual Implementation Report, the Energy Community noted that, in recent years, Serbia had shown a high level of commitment and reliability in the energy sector reform, particu-larly within the field of electricity. The market was opened within the deadline agreed with the Energy Community Secretariat. On this market, the creation of real competition will require fur-ther deregulation of prices. Regarding its importance within the region, the national transmission system operator EMS (The Power Grids of Serbia), cannot stay outside the regional initia-tives for capacity allocation any longer.

http://serbia-energy.eu/serbia-eu-energy-harmonization-progress-report-for-power-market-and-market-framework/

36. Bosnia/Republika Srpska: HPPs Visegrad fulfilled 2014 pro-duction plan

Hydropower plant Visegrad produced 999.986 GWh of electric-ity in 2014th, by which the basic plan is shifted for about 10 per-cent, said director of the Subsidiary “Hydropower plants on the Drina” Mile Lakic.

http://serbia-energy.eu/bosniarepublika-srpska-hpps-visegrad-fulfilled-2014-production-plan/

37. Croatia: Power utility HEP plans CHP power plant in opera-tion by 2018

Croatia power utility HEP reported it planned and put into opera-tion to build the new combined cycle cogeneration plant at the site EL-TO Zagreb by 2018th. As stated, the new power plant will have a net efficiency of 89.5% and will serve as the funda-mental power, or will fully adapt to the requirements for the ther-mal energy delivery (hot water and steam) and electricity pro-duction will be secondary.

http://serbia-energy.eu/croatia-power-utility-hep-plans-chp-power-plant-in-operation-by-2018/

38. Montenegro: Power utility company EPCG has successful electricity trading model, 2015 1Q 73,2 GWh of sold electricity

The first quarter is a period when the electricity is a competitive commodity, because in the winter the demand and consumption are at their peak. Power utility company Elektroprivreda (EPCG) in the tender for the first quarter of this year has al-ready sold 73.2 gigawatt hours (GWh) of peak profile electricity, at the average price of EUR 58.35 per megawatt hour (MWh), based on which the company will generate the revenue of EUR 4.3 million.

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http://serbia-energy.eu/montenegro-power-utility-company-epcg-has-successful-electricity-trading-model-2015-1q-732-gwh-of-sold-electricity/

39. Romania: E.ON Romania Distribution to continue investing in grid networks

According to the public release of the company, E.ON com-pleted the merger of two distribution companies in the first inte-grated gas company and electricity distribution on the Roma-nian market. The company started its operation from January 1st, and works with over 20,000 kilometers of natural gas distri-bution network and more than 80,000 kilometers of electricity distribution network for around three million customers.

http://serbia-energy.eu/romania-e-on-romania-distribution-to-continue-investing-in-grid-networks/

40. Macedonia: Power utility ELEM Electricity generation in ac-cordance with the needs of the tariff consumers

Existing plants within power company ELEM supply electricity in accordance with the needs of tariff customers in Macedonia. “The company fully delivers the announced electricity amount to the power system, based on energy consumption by house-holds and small businesses”, it was announced from AD ELEM as response to Atanasko Tunevski from SDSM. From ELEM

say to SDSM to stop the manipulation with thesis that the pro-duction is the only factor that determines the electricity price for tariff customers.

http://serbia-energy.eu/macedonia-power-utility-elem-electricity-generation-in-accordance-with-the-needs-of-the-tariff-consumers/

41. Croatia: The Testing of the unit C of TPP Sisak starts

Croatia power utility HEP takes over the TPP Sisak unit C at the end of this year or early next year, it confirmed director of TPP Sisak Matija Horžić . “All construction and assembly works are completed. The construction lasted more than three years be-cause of the public procurement, production equipment, har-monization of domestic contractors and foreign supervisors.

http://serbia-energy.eu/croatia-the-testing-of-the-unit-c-of-tpp-sisak-starts/

42. Hungary: MVM Energy trading gets electricity supply deal for HU National asset management

Hungarian National Asset Management (MNV) completed 6 bil-lion EUR worth selection process of this year’s electricity sup-plier. They will save more than 250 MEUR on the energy bills.

http://serbia-energy.eu/hungary-mvm-energy-trading-gets-electricity-supply-deal-for-hu-national-asset-management/

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43. Montenegro: Oil exploration concession advisory awarded to Norway Advokatfirmaet Simonsen Vogt Wiig

The Montenegrin economy ministry said it has signed a con-tract with Norway’s Advokatfirmaet Simonsen Vogt Wiig for con-sulting services in the negotiating process for the award of a concession for offshore hydrocarbons production. The total value of the 12-month contract is 300,000 euro the contract posted on Friday on the ministry’s website indicated.

http://serbia-energy.eu/montenegro-oil-exploration-concession-advisory-awarded-to-norway-advokatfirmaet-simonsen-vogt-wiig/

44. Montenegro: TERNA starts works on undersea power cable connection with Balkans

The Italian transmission system operator Terna confirmed that construction of the undersea cable connection with Balkans thru Montenegro is due to start in Italy on Thursday, although delays on the other side of the Adriatic Sea remain because of ongoing “expropriation processes”. http://serbia-energy.eu/montenegro-terna-starts-works-on-undersea-power-cable-connection-with-balkans/

45. Romania: Hidroelectrica sold 33 small hydropower plants

Romania’s largest electricity producer, Hidroelectrica, will held auction in February for sale of 33 small hydropower plants, of a

total of 128 small hydropower plants in its property. The total ca-pacity of hydropower plants offered at auction is 26 megawatts. The initial selling price is 18.8 MEUR.

http://serbia-energy.eu/romania-hidroelectrica-sold-33-small-hydropower-plants/

46. Slovenia: GEN Energija TPP Brestanica tender for 40MW gas turbines

Slovenian thermal power plant (TPP) Brestanica published a tender for the procurement of two gas turbines with capacity of 40-70 MW. Bids should be sent by March 16, the notice is pub-lished in the Tenders Electronic Daily (TED).

http://serbia-energy.eu/slovenia-gen-energija-tpp-brestanica-tender-for-40mw-gas-turbines/

47. Bulgaria: Gov negotiate electricity supply from AES & Con-tour Global TPPs

Bulgaria hopes that by the end of March will again negotiate on the contract with AES Corporation and ContourGlobal to pur-chase electricity from thermal power plants AES Maritsa East 1 and ContourGlobal Maritsa 3.

http://serbia-energy.eu/bulgaria-gov-negotiate-electricity-supply-from-aes-contour-global-tpps/