CONSIDERATIONS FOR FURTHER DIRECTION IN THE REGION SOUTH EAST EUROPE ENERGY MARKET SOUTH EAST EUROPE 2013

Agnar Aas

Director of Governmental Affairs

Statkraft at a glance

Peru

271 MW

Chile

232 MW

Turkey

20 MW

Nepal 34 MW

Philippines

305 MW

Brazil

71 MW

Panama

(project)

Zambia

11 MW

Norway

11 755 MW Sweden

1 509 MW Finland

66 MW

UK

231 MW

Sri Lanka

2 MW

Laos 98 MW

Germany

2 212 MW

India

136 MW

Installed

capacity

17 000 MW

Power

production (2012)

60 TWh

90% renewable

energy

3 500

employees

AGUA IMARA

SN POWER

STATKRAFT

Statkraft in Europe

3

Norway

The Netherlands

United Kingdom

Belgium

France

Sweden

Finland

Germany

Turkey Albania

Romania

Serbia

Bulgaria

Trading team for Central- and South East Europe

side 4

Düsseldorf: • Claus Urbanke, Head of New Markets

• Anna Meurer, Portfolio Management

• Adrian Ivanov, Trading

• Plamen Popov, Business Development and Managing Director Statkraft SEE

• Konstantinos Kollias, Trading Analyst

Bucharest: Daniel Pintilie, Business Development

Sofia: • Krassimira Bliznakova, Business Support

Belgrade: • Dragan Vignjevic, General Manager

• Biserka Tmusic, Business Support

Istanbul: • Akgün Anduvap Servet, General Manager

• Kasim Tugmaner, Trader

Project Scheme

5

Banja HPP

6

Moglice HPP

7

Project benefits after completion

Increasing production of electricity in

Albania by approx. 20%

Renewable (green) energy production

Improvement of grid stability

Development opportunities for the

region

Public-private partnership

State of art power plants

Nordic and European standards

8

9

10

The NWE Project develop solutions for Europe

Joint project 13 TSO’s and 3 stock exchanges

Greatest multinational market in the

World – 2300 TWh

Dayahed (spot market) and Intraday

The structure on decision complex Authorities are focused

11

Market Development in one Direction – Rapidly

Nordic Electricity Market

NWE one common El-market

United European El-market

AN ATTRACTIVE MARKET DESIGN: WHICH FEATURES ARE MOST IMPORTANT?

1.PRICES

2.PRICES

3.PRICES

side

12

FAIR

TRANSPARENT

To the benefit

of the TSO,

generators,

investors,

traders, and

ultimately

consumers

Less bilateral agreement;

Reduced credit risk;

Collaterals – only to the

exchange (clearing house);

Invoicing – only against the

exchange;

High automation and

standardization degree.

Power Exchange Advantages

PX

C

R

T

J

u

n

e

2

0

1

0

TRADING PRESENCE IN SOUTH EAST EUROPE

side 15

Düsseldorf

SI

GR

SK UA

RO

TR

AL

I

HR

HU

MK

BiH

BG SR

CG ME

MD A

Bucharest

Sofia

Belgrade

Istanbul

Extensive market coverage and trading activities in South East Europe

Local offices and trading staff in Bucharest, Belgrade, Sofia and Istanbul

KS

Explicit auctions

Market Coupling

Transit via service provider

TRADED BORDERS

side 16

SI

GR

SK UA

RO

TR

AL

I

HR

HU

MK

BiH

BG SR

CG ME

MD A

KS