Established: Established: 20012001

Office address: Office address: Skattoeraveien 17Skattoeraveien 17Postal address: Postal address: P.O.Box 413P.O.Box 413

N-9254 TROMSOEN-9254 TROMSOE..

WebsiteWebsite : : www.technorenergy.nowww.technorenergy.no

Target AreaTarget Area : Balkan region: Balkan region

Business areaBusiness area : Renewable Energy: Renewable Energy (Hydro Power)(Hydro Power)

WHY THE BALKANS?WHY THE BALKANS?

➪ ➪ Europe’s largest non-utilized Hydro Power Europe’s largest non-utilized Hydro Power potentialpotential

➪ ➪ Norwegian/Nordic – competence areaNorwegian/Nordic – competence area

➪ ➪ EU – focus on the Balkans EU – focus on the Balkans

➪ ➪ The Balkan countries are positioning in/for The Balkan countries are positioning in/for EU membership – rapidly adapting EU membership – rapidly adapting legislation etc.legislation etc.

➪ ➪ Athens-agreement (2002) - Energy Charter Athens-agreement (2002) - Energy Charter Treaty committing the countries toTreaty committing the countries to deregulation/-privatization of the energyderegulation/-privatization of the energy sector. Liberalized market from 01.01.2008sector. Liberalized market from 01.01.2008 ➪ ”➪ ”Green” energy is a positive focus area Green” energy is a positive focus area nationally and internationally nationally and internationally

➪ ”➪ ”Green” energy is a target area for TheGreen” energy is a target area for The World Bank and other international financeWorld Bank and other international finance institutionsinstitutions

➪ ➪ Security and Climate - demands Security and Climate - demands

➪ ➪ Profit and cooperation potentialProfit and cooperation potential

MAIN FOCUS AND STRATEGIES:MAIN FOCUS AND STRATEGIES:

1. 1. Generation of Hydro Power. Generation of Hydro Power.

➪ ➪ ””Greenfield” projects.Greenfield” projects.

➪ ➪ Acquistions of Hydro Power PlantsAcquistions of Hydro Power Plantsavailable in the market,available in the market,or those under or those under privatization, privatization,

according to the ongoing according to the ongoing deregulation process.deregulation process.

2.2. Trading: Trading: PhysicalPhysicalFinancial Financial

3. 3. Sales of consulting services, technical Sales of consulting services, technical soultions within our field of experience.soultions within our field of experience.

CHALLENGESCHALLENGES ! !

➪ ➪ Distance: Norway - BalkanDistance: Norway - Balkan

➪ ➪ Maintainance of realationshipsMaintainance of realationships

➪ ➪ Utilize existing ”Goodwill”Utilize existing ”Goodwill”

➪ ➪ Market analysesMarket analyses

➪ ➪ Market influenceMarket influence

➪ ➪ Contract designContract design

➪ ➪ Cultural differencesCultural differences ➪ ➪ Differently developed sets of rulesDifferently developed sets of rules

➪ ➪ Dependence of frequent changes in Dependence of frequent changes in politically appointed company managementpolitically appointed company management

➪ ➪ CorruptionCorruption

➪ ➪ Lack of bilateral system of agreements Lack of bilateral system of agreements Norway - BalkanNorway - Balkan

➪ ➪ Value creation – win/win – Spinn offsValue creation – win/win – Spinn offs

➪ ➪ Creation of visible transfer of valuesCreation of visible transfer of values

➪ ➪ Availability of international competenceAvailability of international competence

HISTORYHISTORY

➪➪ Worked on the Balkans since 2001.Worked on the Balkans since 2001.

➪ ➪ Carried out several projects together with Carried out several projects together with the Balkan countries to prepare for the the Balkan countries to prepare for the free energy market, based on our free energy market, based on our Norwegian and Nordic knowledge. Norwegian and Nordic knowledge.

➪ ➪ Cooperation has provided a lot of Cooperation has provided a lot of knowledge about the energy market, knowledge about the energy market, confidence and relationships. confidence and relationships.

➪ ➪ Offices in Sofia, Belgrade and Banja Luka.Offices in Sofia, Belgrade and Banja Luka.

➪ ➪ Established both separate and JV Established both separate and JV companies in different countries.companies in different countries.

➪➪ Acquired so far totally 7 concessions for Acquired so far totally 7 concessions for developing green field run-of river power developing green field run-of river power plants. (6 + 1 Joint venture plant)plants. (6 + 1 Joint venture plant)

➪ ➪ Are in position to buy hydro power plants Are in position to buy hydro power plants beeing privatized and/or developed. beeing privatized and/or developed. Strategic cooperation within transmisson Strategic cooperation within transmisson and generation. and generation.

➪➪ Work with education, efficient, Work with education, efficient, organization of production and organization of production and introduction of a de-regulated energy introduction of a de-regulated energy market. market.

OUR WORKOUR WORK

➪ ➪ Trade- and business development in aTrade- and business development in a broad cooperation, regional, national broad cooperation, regional, national and international. and international.

➪ ➪ Building up network and relationships Building up network and relationships

➪ ➪ Development of competanc:Development of competanc: local, regional,local, regional, and national levels. and national levels.

➪ ➪ Internationalization.Internationalization.

➪ ➪ Introduce Norwegian and NordicIntroduce Norwegian and Nordic products and industry to a new andproducts and industry to a new and exciting market.exciting market.

➪ ➪ Create visible value transferCreate visible value transfer local, regional, national and international.local, regional, national and international.

➪ ➪ Pilot projectsPilot projects in pilot areas.in pilot areas.

➪ ➪ Prepare for future export/import.Prepare for future export/import.

➪ ➪ Transfer of technology. Transfer of technology.

BULGARIABULGARIA

Project work 1.Project work 1.

Institutions reccomended to address:Institutions reccomended to address:

➪ ➪ Royal Norwegian Embassy, Sofia.Royal Norwegian Embassy, Sofia.

➪ ➪ Ministry of Economy and Energy.Ministry of Economy and Energy.

➪ ➪ National Electricity Company – NEKNational Electricity Company – NEK

➪ ➪ Agency for energy efficiencyAgency for energy efficiency

➪ ➪ The different private companies in the sectorThe different private companies in the sector

BULGARIABULGARIA

Project work 2.Project work 2.

TECHNOR ENERGY TECHNOR ENERGY Is at present in investment negotiations forIs at present in investment negotiations for

buying stakes in 5 small hydro power plantsbuying stakes in 5 small hydro power plants

in Bulgariain Bulgaria

Further the company is preparing for Further the company is preparing for

Partnership for cooperation in Partnership for cooperation in

electricity tradingelectricity trading

The company is pleasently surprisedThe company is pleasently surprised

by the interest and proactive attitude by the interest and proactive attitude

shown by all institutions andshown by all institutions and

companies, which have been companies, which have been

contacted for advice and assistance.contacted for advice and assistance.

They have all cooperated very well in orderThey have all cooperated very well in order

to facilitate all activities in the mostto facilitate all activities in the most

proficient manner.proficient manner.

BULGARIABULGARIA

Project work 3.Project work 3.

Dear seminar participants !Dear seminar participants !

Thank you all for yourThank you all for your

attention!attention!

Sofia 15th November 2007Sofia 15th November 2007

Oddbjørn PettersenOddbjørn Pettersen