The Kelag Group –

Contributions to �Energy Efficient Communities�

Dr. Michael MarketzBrdo pri Kranju, Slovenia, March 13th 2013

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Kelag - Kärntner Elektrizitäts-AG

� The Kelag Group is one of the leading energy service providers in Austria.

Subsidiaries of the Group are actively engaged in the fields of electricity, district

heating and natural gas. KELAG has comprehensive experience in the areas of

energy production, procurement, distribution and sales of grid-bound power.

� As a large energy producer, KELAG belongs to an elite group of Austrian companies

generating power from water.

� Our subsidiary KNG- Kärnten Netz GmbH is responsible for the operation and the � Our subsidiary KNG- Kärnten Netz GmbH is responsible for the operation and the

distribution of power and gas in Carinthia, Austria.

� As the Austrian market leader of district heating, KELAG Wärme GmbH delivers heat

generated biologically and recycles industrial waste heat.

� KI-KELAG International GmbH is responsible for the management of the international

business activities of the Group. With Interenergo as a key subsidiary of Kelag

intensifies project development activities in the areas of renewable energy and

energy trading activities in South Eastern Europe.

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Corporate Strategy

Growth

National:Expand strengths in hydropower

� Focus: Hydropower in Austria/Carinthia

� Growth in heating andbio-energy business

Innovation

Positioning as a "full-service provider for renewable energy and energy efficiency"

� Enhance image as "Green Company“

� Information and marketing

Value Orientation

Value orientationas a primary objective

� Ensuring a solid equity ratio and a reliable, sustainable credit rating

Strategic Orientation

bio-energy business

International:South Eastern Europe

� Sustainably manage the growth potential in the fields of renewable energy (hydro and wind-power)

� Information and marketing campaign “Generation Klimaschutz“

� Energy consulting

� Smart Grids, Smart Metering, Smart Home

� E-Mobility (Infrastructure enhancement)

� Photovoltaic Pilot Projects

� Research and Development

� Investment projects are subject to strict ROI criteria and are based on cash flows and capital availability

� Full use of company-wide economies of scale and synergy potentials

� Ensuring an efficient network and power plant operation

Value oriented growth and innovation strategy

based on renewable energies

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� Kelag’s initiative for energy efficiency

and active climate protection

� Customer and public awareness

� Key points of interest

� Energy efficiency

Climate Protection Generation

� Energy efficiency

� Energy consulting

� E-Mobility

� Hydro power generation

� District heating (waste heat recycling, biomass)

� Network operation

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Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

� City location - central Carinthia (population appx.13.600; landmass 51² km)

� Since the early 1990‘s the goal of St. Veit is highly focused on utilizing renewable

energy.

� Establishment of a reliable district heating network by partnering Kelag and an

industrial enterprise (today over 60% of district heating is generated utilizing biomass and

waste heat recycling)

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� Commercial and industrial priorities in the area of renewable energy (Companies dealing with solar power are among the market leaders)

On this basis, the establishment of �Sonnenstadt� (Sun City) Sankt Veit an

der Glan was accomplished. The Project was developed by working closely

with Kelag, industry and private investors (Project start 2009/2010)

Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

� Establishment of several photovoltaic plants by Kelag within the city limits

� Capabilities appx. 500 kWp from 5 locations

� A pilot project in terms of R&D and erected to demonstrate alternative power

generation technology (heterogeneous structure and orientation of the power stations;

use of divergent techniques, transverse performance comparison)

A summary of �Sonnenstadt� St. Veit

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� An appx 1.000 kWp power station constructed outside the city by private investor

� Community awareness created through an exhibition called �Experience Power�

which focuses on renewable energy, energy efficiency and alternative mobility

� Alternative Mobility (E-Autos und E-Bikes)

� LED upgrading of the street lights in cooperation with Kelag

Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

Photovoltaic plant at sport arena (136 kWp)

Photo: FritzPress/Stadt St. Veit

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Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

Photovoltaic plant on top of

tennis hall (96 kWp)

Photovoltaic plant on top of

Kelag operations facility (110 kWp)

Photo: Assam/Kelag

Photo: redwings

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Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

Photovoltaic plant Sonnenpark (1.000 kWp)

Photo: Schrotthammer/Stadt St. Veit

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Kelag – Project Partner of�Sonnenstadt� St. Veit an der Glan, Austria

Exhibition �Experience Power�

Photo: FritzPress/Stadt St. Veit www.stveit.com10

Summary

� The themes Climate Protection, Supply Secrurity and Remaining Competitve are clearly

defined as challengees for the future.

� In order to ensure a safe and pollution free power supply effectively, investments are

required in hydropower, renewable energy, efficient power plants and into network

infrastructure

� A crucial focus also needs to be developed for the enhancement of energy

efficiency as well as the use of new technologies.

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efficiency as well as the use of new technologies.

� Kelag will continue to make substantial contributions to climate protection and to

guarantee electric supply.

� Energy consulting, expanded use of innovative technologies and the support of

suitable research activities will continue to be the key focus of Kelag.

� To be able to reach the present energy policy targets, a concerted collaboration of

effort is absolutely necessary for ALL who are involved (public/customer,

politicians/legislators, administrative bodies, companies and enterprises).

Dipl-Ing. Dr.

Michael MarketzHead of Power Plant Operation and Maintenance,Assistant to the Board

Contact

+43 (0) 463 525-1237

michael.marketz@kelag.at

www.kelag.at

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www.kelag.at

KELAG-Kärntner Elektrizitäts-Aktiengesellschaft

Arnulfplatz 2

A-9020 Klagenfurt