April 2015

Serbia-Energy.Eu

South East Europe Energy Market

Digest April ReportMarket Monitoring Service MMS

1 Serbia Energy Market Monitoring ServiceApril 2015

Serbia-Energy.Eu

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1. Serbia: New Insurance Law – conditions for liberalizing the insurance services market and additional harmonization with European Union law

On 18 December 2014 the National Assembly of the Republic of Serbia adopted a new Insurance Law (“Official Gazette of RS“, No. 139/2014), continuing the reformative process of im-proving the market of financial services in Serbia and harmoniz-ing with European Union law, and ensuring the necessary condi-tions for additional liberalization of the market of insurance serv-ices, whereby significant changes were made as compared to the legislative solutions so far: (a) more detailed regulation of the types of life and non-life insurance,

http://serbia-energy.eu/serbianew-insurance-law-conditions-for-liberalizing-the-insurance-services-market-and-additional-harmonization-with-european-union-law/

2. Serbia: RES electricity export project with Italy

Italy and Serbia have signed a memorandum of understanding on joint projects in 2011. Italy was interested to exploit hydro po-tentials in Serbia as part of joint projects to meet its 2020 tar-gets. The joint projects would be realized via an undersea cable from Montenegro to Italy that will be built by 2015.

http://serbia-energy.eu/serbia-res-electricity-export-project-with-italy/

3. Serbia: Investment cycle and modernization in biggest coal mine Kolubara

Kolubara lignite coal mine company which produces more than 60% of coal, supplied to thermal power plants Nikola Tesla TENT producing more than 50% of Serbian electricity, is the most important factor in energy balance chain. After the may 2014 floods the biggest open pit Tamnava was severely dam-aged, equipment and coal fields were damaged. Kolubara mines company at the end of 2014 entered the biggest moderni-zation and reconstruction cycle in its recent history.

http://serbia-energy.eu/serbia-investment-cycle-and-modernization-in-biggest-coal-mine-kolubara/

www.serbia-energy.eu

Serbia Energy Market Report DigestApril 2015

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4. SEE, Serbia: Regional grid development plans and increase of cross border capacity for export to EU

While the European Commission defined Projects of Common Interest (PCIs), the Energy Community in 2013 defined and adopted so called Projects of Energy Community Interest (PE-CIs) as key infrastructure projects, which will help countries to physically integrate their energy markets, enable them to diver-sify their energy sources and help to bring an end to the energy isolation some of them are facing.

http://serbia-energy.eu/see-serbia-regional-grid-development-plans-and-increase-of-cross-border-capacity-for-export-to-eu/

5. Serbia exclusive: EU Directives, Closure of Thermal Power Units, Costs and Alternatives

Considering that their capacity is below 300 megawatts, the blocks A1 and A2 of the TPPNT, both blocks A of the TPP Kosto-lac, the TPPs Morava, Kolubara and Panonske Power Plants are the thermal power facilities of the EPS for which a succes-sive withdrawal has been envisaged within the period up to 2025. Their average age amounts to more than 45 years, and their energy efficiency is below 30 percent.

http://serbia-energy.eu/serbia-exclusive-eu-directives-closure-of-thermal-power-units-costs-and-alternatives/

6. Serbia: EPS trading sells 240MW/43EUR on HUPX

Electricity trading “EPS Trading”, subsidiary company of “Elec-tric Power Industry of Serbia” founded in Slovenia has started last week the electricity trading on the Hungarian stock ex-change HUPX.

http://serbia-energy.eu/serbia-eps-trading-sells-240mw43eur-on-hupx/

7. Serbia: Power utility EPS financial structure of investments and overhaul, internal allocation and influence of kwh

Reference proportion of power utility company EPS capital, which represents a sustainable structure for simple reproduc-tion is 40% of investments in new, and 60% of investments in overhauls with the modernization of existing power facilities. By varying of this capital structure and the manner of its financing and taking into account the total operating costs of EPS, the fol-lowing cost prices of electricity have been calculated:

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http://serbia-energy.eu/serbia-power-utility-eps-financial-structure-of-investments-and-overhaul-internal-allocation-and-influence-of-kwh/

8. Serbia exclusive report: NIS and Gazprom – privatization, ex-pansion 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. GazpromNeft NIS has been among the biggest vertically integrated energy companies in the southeastern Europe. Retail network of the company in-cludes over 500 service stations, fuel filling points and oil de-pots located in the Balkan countries. In addition to Serbia, NIS is doing business in Bosnia and Herzegovina, Hungary, Bul-garia, Romania, Turkmenistan, Angola, Belgium and Russia.

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

9. Serbia: Environment investment projects in power utility EPS power generation plants

Preparations of Serbian Power utility company EPS facilities for the application of the two key directives, large furnaces and in-dustrial emissions, have already started and if it continues with

the same pace , it is expected that EPS will fulfill obligations on time. Harmonization with European regulations in the field of en-vironment, because of its volume and interconnections is very complex and expensive process. Accessing negotiations in this field are referring to 200 legal acts that make even third of Euro-pean regulations.

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/

10. Serbia: Windparks, status of ongoing projects

Certainly, one of the biggest challenges of today is to find a way to satisfy the ever-growing need for energy, at the same time minimizing environmental pollution. Using ecologically cleaner energy will be one of the priority tasks within the Serbian en-ergy sector on the way to the European Union. The current situation is such that the energy stability of our country depends on coal production.

http://serbia-energy.eu/serbia-exclusive-report-wind-still-not-powering-windmills-in-serbia-the-status-of-ongoing-projects/

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11. Serbia: New energy law will improve PPA and enable loan bank guaranties to investors

By-laws should regulate the section related to the model of con-tract for the purchase of electricity.This is necessary to be done so that banks could obtain the guarantees for approval of loans. Namely, the solutions from previous Energy Law didn’t provide sufficient guarantees to banks that they will be able to recover their money.

http://serbia-energy.eu/serbia-wind-energy-is-waiting-for-the-new-energy-by-laws-investors-race-for-cap-capacity/

12. Serbia: New Energy law introduces license wholesale sup-ply of electricity

Although the new Energy Law already formally started to apply, it will only gain full force and effect once the competent ministry has adopted a number of necessary additional bylaws and fur-ther regulations. The new Energy Law prescribes a period of one year from the day of its entry into force for the adoption of the necessary secondary legislation. Newly adopted Serbia’s Energy Law introduced encouraging investments in the renew-able energy sector and generally improving the Serbian energy sector’s regulatory framework by removing a number of obsta-cles contained in the previous energy law.

http://serbia-energy.eu/serbia-new-energy-law-improves-ppa-and-status-of-privileged-power-producer/

13. Serbia: TPP Nikola Tesla TENT Flue gas project 200MEUR , bidders await the decision on project status

After pre-qualification phase only three bidders remained in the game. Japanese consortium Mitsubishi-Hitachi and Andritz Aus-tria are considered as major competition, third bidder German-Japanese consortium Steinmuller NSENGI is the third player.

http://serbia-energy.eu/serbia-exclusive-possible-restart-of-fgd-200meur-tent-a-tender-retendering-may-bring-more-competition-and-benefits-for-eps-power-utility/

14. Serbia: Alstom to work with CMEC on new TPP Kostolac B unit

One of the key market players, foreign contractors and equip-ment suppliers is Alstom. In Serbia Alstom seem to be quite suc-cessful in TPPs modernization cycle. Their market niche was the overhaul business in areas of turbines and generators in TPPs. Their competition is Siemens and some local companies which are fighting their way thru lower market offers and dump-ing prices.

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http://serbia-energy.eu/serbia-alstom-market-position-in-power-plants-modernization-and-effects-of-ge-takeover/

15. Serbia: Despite the power market liberalization Power utility EPS kept most customers

Despite the liberalization, the Serbian Electric Industry has kept most customers. Only a small number of companies have cho-sen another supplier, although only a month after the opening of the market, EPS raised the price by 70 percent on January 31st last year.

http://serbia-energy.eu/serbiacroatiabihstate-owned-power-utilities-survived-the-electricity-market-opening/

16. Serbia: Harsh path of 2015 power utility EPS restructuring & development

Efficient management of power utility EPS ( Elektroprivreda Srbije) largely depends on its owner, i.e. what the State expects from EPS, but also on the expertise, experience and skills of the company management. If the owner (State) wants EPS to become a very efficient and profitable company, such as Czech ČEZ, then EPS must do what a private owner would do.

http://serbia-energy.eu/serbia-exclusive-analyses-of-state-power-utility-eps-restructuring-realistic-swot-view/

17. Serbia: EPEX SPOT says there is still no date for the launch of a SEEPEX power exchange

From the European Energy Exchange EPEX SPOT it was an-nounced that there was still no date for the opening of electricity stock exchange (Seepex) in south-eastern Europe, which has being developed in partnership with EMS, Serbian transmission system operator.

http://serbia-energy.eu/serbia-epex-spot-says-there-is-still-no-date-for-the-launch-of-a-seepex-power-exchange/

18. SEE/Serbia, Bosnia, Montenegro, Macedonia, Albania: Bal-ancing framework, regional balancing integration in SEE

Serbia is a part of SMM control block together with Montenegro and Macedonia. EMS as Transmission System Operator is obliged to provide System services for the control area. Procure-ment of balancing capacity and balancing energy are based on the fact that, in Serbia,there is currently only one party with the role of Balancing Service Provider that can offer balancing serv-ices.

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http://serbia-energy.eu/seeserbia-bosnia-montenegro-macedonia-albania-balancing-framework-regional-balancing-integration-in-see/

19. Serbia: RES investments in Serbia and existing electricity producers

There are 95 privileged producers of electricity from renewable energy sources in Serbia, which refers to the capacity of 51 megawatt of power, while the temporary status of privileged pro-ducer has 74 of them, with a total capacity of 40 megawatts.

http://serbia-energy.eu/serbia-res-investments-in-serbia-and-existing-electricity-producers/

20. Serbia: Cross border electricity trading characteristics 2014

TSO grid network operator company EMS performs daily auc-tions for 100% ATC on borders with Romania, Bulgaria and Croatia, and on other borders, for 50% of ATC. For long term auctions, EMS performs auctions for 100% ATC on border with Hungary, and auctions for 50% of ATC on borders with Macedo-nia, Montenegro, Albania and Bosnia and Herzegovina.

http://serbia-energy.eu/serbia-cross-border-electricity-trading-characteristics-2014/

21. Serbia mining: Procurement of new equipment in lignite coal mines,Sandwick, Kopex and Krupp with dominant market position in new technology supply

Kolubara, Largest lignite mine in Serbia, needs to invest 700-800 million EUR for opening of new, Radljevo field, in order to cover lignite demand of new capacities (TPP Kolubara B and unit 3 in TPP Nikola Tesla B).

http://serbia-energy.eu/serbia-mining-procurement-of-new-equipment-in-lignite-coal-mines-sandwick-and-krupp-with-dominant-market-position-in-new-technology-supply/

22. Serbia: Electricity traders guide for new market entrants, ex-isting traders and their market challenges

There are many international electricity trading companies es-tablished in Serbia since local legislation requires establishing of local company for any electricity trading and transiting activ-ity. Licence for electricity trading is at the same time licence for electricity supply (BRP contract with TSO grid operator EMS must be signed). Serbia is very important for electricity transit-ing and bilateral trading between trading companies since it rep-resents a trading hub of the region due to bordering with eight countries.

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http://serbia-energy.eu/serbia-electricity-traders-guide-for-new-market-entrants-existing-traders-and-their-market-challenges/

23. Serbia: Edison & EPS power utility JV project New TPP Ko-lubara B, status unclear

The project should be jointly developed by EPS and Italian Edi-son. TPP Kolubara B will be lignite fired plant and it will be re-placement capacity for several older TPPs in Serbia. New power plant will have 750 MW output, while overall cost of the project is estimated to around 1 billion EUR.

http://serbia-energy.eu/serbia-edison-eps-power-utility-jv-project-new-tpp-kolubara-b-status-unclear/

24. Serbia: Electricity market overview 2015

The main feature of Serbian electricity market is the one player dominance – of a public company Electric Power Industry of Serbia; then the dominant use of conventional energy sources, primarily coal; and full liberalization of the market. About 75 per-cent of electricity in Serbia is produced in coal fired thermal power plants.

http://serbia-energy.eu/serbia-electricity-market-overview-2015/

25. Serbia: Emergency repairs and overhaul of flooded equip-ment in coal mines as priority

Repairs and overhaul projects in “Electric power industry of Ser-bia” this year will be under the weight of the last year huge floods. Priorities are drives that were under water and lubrica-tion at the other plants.

http://serbia-energy.eu/serbia-emergency-repairs-and-overhaul-of-flooded-equipment-in-coal-mines-as-priority/

26. Serbia: EU invested 500MEUR in TPPs environment im-provements & TSO cross border grid upgrade

European Union has invested some €555 million in Serbian en-ergy sector mainly in modernization of coal fired thermal power plants Nikola Tesla TENT. Main priorities of the EU support in Serbian energy sector concern support to the alignment of na-tional legislation with EU acquis in the area of energy, invest-ments in environmental improvements, institution strengthen-ing, strengthening the capacity of the transmission systems (electricity and gas sector), support for feasibility studies to pre-pare investments (working with IFIs) confirmed the EU delega-tion in statement to Serbia Energy magazine.

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http://serbia-energy.eu/serbia-eu-invested-500meur-in-tpps-environment-improvements-tso-cross-border-grid-upgrade/

27. Serbia: Power utility EPS tender, assessment of extension of operational cycle of old TPPs units

EPS, tender, “Analysis of the possibilities and further prospects for the use of small blocks TPP EPS (TENT A1 and A2, KOLU-BARA A5, KOSTOLAC A1 and A2 and MORAVA)”

http://serbia-energy.eu/serbia-power-utility-eps-tender-assessment-of-extension-of-operational-cycle-of-old-tpps-units/

28. Serbia: Nuclear power plants, real need as reality

The high price and insecure supply of fuel and the environ-mental issues concerning the combustion of fossil fuels (coal, oil and gas) have caused a new interest in nuclear energy which was long neglected. The Moratorium on the Development of Nuclear Plants in Serbia expires in 2015, and energy experts believe that, in the distant future, we will not be able to satisfy domestic needs without this electricity source but we will have to import electricity.

http://serbia-energy.eu/serbia-nuclear-power-plants-real-need-as-reality/

29. Serbia: The future of energy security, reality check

In the modern world, energy policy represents a strategic prior-ity of every country and it is an integral part of the country’s de-velopment strategy. The security of a modern state depends on energy stability. The state objective should be oriented towards satisfying energy needs in all operating conditions. Today, more than ever before, there is a need for predicting energy risks and threats, by eliminating the consequences after their occurrence, as well as through prevention.

http://serbia-energy.eu/serbia-the-future-of-energy-security-reality-check/

30. Serbia: EBRD to grant 200MEUR loan to power utility EPS

Serbian power utility EPS company restructuring is being imple-mented under the close watch of key stakeholders EBRD and World Bank. EBRD is a strong loan provider to EPS moderniza-tion cycle in power generation sector.

http://serbia-energy.eu/serbia-ebrd-to-grant-200meur-loan-to-power-utility-eps/

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31. Serbia: Elicio NV takes over 50MW Electrawinds projects

Elicio NV took over Electrawinds wind park projects in Serbia, Alibunar 8MW construction will start end of 2015.

http://serbia-energy.eu/serbia-elicio-nv-takes-over-50mw-electrawinds-projects/

32. Serbia, Bosnia, Montenegro: Energy & China expansion in SEE, new TPPs and financial frameworks

China’s economy is now the most influential economy in the world. While the Germans and Italians gave up, the Chinese have already entered the serious jobs in the region. Is it better for Serbia to consider other strategic partners for projects that are of national importance? And how to do it? The development of Serbian energy sector obviously depends on the possible an-swers to these questions.

http://serbia-energy.eu/serbia-exclusive-are-the-chinese-the-most-serious-energy-investment-players-in-the-region/

33. Serbia: Delayed restructuring of power utility EPS, case studies in the region

State owned energy company Elektroprivreda Srbije EPS is also preparing for the necessary changes that Croatian and Montenegrin national electricity companies went through. Ac-cording to announcements from EPS’ Director Aleksandar Obra-dović, the restructuring of EPS, in accordance with adopted Statute, includes introduction of unique management and stan-dardization of processes and procedures within EPS’ system.

http://serbia-energy.eu/serbia-exclusive-analysis-restructuring-of-power-company-eps-comparison-with-experiences-power-companies-of-croatia-hep-and-epcg-montenegro/

34. Serbia: Challenges of restructuring for power utility EPS

Preparation for 2016 stock market entrance and sale of shares is under way. Restructuring of power utility Elektroprivreda Srbije EPS is under close watch of IMF and EBRD. The state as owner has to be consistent in implementing business changes, which implies the application of market principles, without delaying the rationalization and elimination of internal loss generators.

http://serbia-energy.eu/serbia-exclusive-energy-company-elektroprovreda-srbije-eps-as-a-producer-has-an-advantage-toward-electricity-traders/

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35. Serbia: Gas energy supply, Azerbaijan Gas is nice but unre-alistic political story

By the end of year, Serbia should agree with the European Commission upon the financing of the construction of a gas con-nector with Bulgaria, by which our country would gain access to the gas from Azerbaijan, the Minister of Mining and Energy, Aleksandar Antic, announced after the delegation of the Ser-bian Government returned from this country.

http://serbia-energy.eu/serbia-gas-energy-supply-azerbaijan-gas-is-nice-but-unrealistic-political-story/

36. Serbia: Implementation of EBRD/KfW financed 182MEUR Green credit project in Kolubara mine company, delivery of new excavation equipment

Environmental protection and improvement in Kolubara coal ba-sin project is underway. The total project cost amounts to € 182 million. In addition to the EBRD, KfW Bank and EPS also partici-pate in its funding. In the forthcoming period, the intensification of works on the erection of the excavator is expected, followed by the accelerated receipt of a large part of the equipment, while at several points in “Metal” works on some parts of the structure are being performed.

http://serbia-energy.eu/serbia-implementation-of-ebrdkfw-financed-182meur-green-credit-project-in-kolubara-mine-company-delivery-of-new-excavation-equipment/

37. Serbia: Energy complex TPP Kostolac plans stable produc-tion in 2015

Performance goals of the Subsidiary Company “Thermal Power Plants and Mines Kostolac” in the current year are close to the results achieved in 2013th, which otherwise was a year of re-cord production. In 2015th, according to power utility Elektro-privreda Srbije (EPS) energy balance in TPP “TE – KO Kosto-lac”, it is planned to excavate a little more than 9 million tons of coal and produce 6.4 billion kilowatt – hours of electricity.

http://serbia-energy.eu/serbia-energy-complex-tpp-kostolac-plans-stable-production-in-2015/

38. Serbia: Challenges for new energy project developers, In-vestors ignorance of ESIA/SEP and failure to mitigate NGOs

Two projects of construction of HPPs on the river Lim in south-west Serbia are planned to be completed within four years. In-vestor Canadian company Reservoir Capital faced huge chal-lenges in project development and main issues came from miss

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management of public, local communities, NGOs, medias and finally the circle closed covering all major stakeholders. ESIA Ac-tion plan as well as Stakeholder Engagement Plan realization failed on many focus areas.

http://serbia-energy.eu/serbia-challenges-for-new-hpps-project-developers-investors-ignorance-of-esiasep-and-failure-to-mitigate-ngos/

39. Serbia: PM announces regional market expansion of power utility EPS

Prime Minister Aleksandar Vucic announced that “Electric Power Industry of Serbia” will try to team up with power utility Montenegro and power utility of Republika Srpska or to buy them.

http://serbia-energy.eu/serbia-pm-announces-regional-market-expansion-of-power-utility-eps/

40. Serbia: Kolubara mine company to restore full production and supply to TPPs Nikola Tesla TENT

Flooded parts of Serbia’s biggest coal mine Kolubara, which supplies the country’s biggest power plant complex Nikola Tesla

TENT, are expected to resume production in June, stated Milo-rad Grcic director of Kolubara mines.

http://serbia-energy.eu/serbia-kolubara-mine-company-to-restore-full-production-and-supply-to-tpps-nikola-tesla-tent/

41. Serbia: TSO company initiates the regional Coordination Center with cross border TSOs

Serbian TSO power grid operator Elektromreze Srbije (EMS) and its Bosnia and Montenegro cross border grid operators, HOS BiH and CGES, have signed an agreement to set up a Se-curity Coordination Center (SCC), EMS announced.

http://serbia-energy.eu/serbia-tso-company-initiates-the-regional-coordination-center-with-cross-border-tsos/

42. Serbia: Power utility EPS marks decreased electricity pro-duction in 2014

Record floods damaged the Serbia state’s energy infrastructure in May 2014, decreased electricity production and the operation of biggest coal mine Kolubara that supply EPS’ biggest power stations Nikola Tesla TENT.

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http://serbia-energy.eu/serbia-power-utility-eps-marks-decreased-electricity-production-in-2014/

43. Serbia: Power utility EPS invites consultancy bidders for wind park feasibility

Serbian power utility EPS ( Elektroprivreda Srbije) pushes for-ward the RES market share increase with Kostolac wind park project and invited consultants to bid for a production of feasibil-ity study and concept design.

http://serbia-energy.eu/serbia-power-utility-eps-invites-consultancy-bidders-for-wind-park-feasibility/

44. Serbia mining: SNC Lavalin completes the new smelter acid plant for Bor copper company

“Outotec” and “SNC Lavalin completed the project for copper mining company Bor. SNC “Lavalin” in charge of construction of new smelter and the plant for sulphur acid at the Mining and smelter basin Bor, handed in to copper combine all facilities within the project for usage and management.

http://serbia-energy.eu/serbia-mining-snc-lavalin-completes-the-new-smelter-acid-plant-for-bor-copper-company/

45. Serbia mining: Foreign companies success case stories and exploration of copper, gold, zink & lead

In the anticipation of new regulations, several large investors have been carrying out the explorations of mineral deposits for years already. Since 2003, foreign companies have invested around 300 million euros in potential projects. These are long-term projects, and the so far achieved results give reason for op-timism. Investments would multiply if mines were opened; they could be measured in billions of euros.

http://serbia-energy.eu/serbia-mining-exclusive-in-anticipation-of-new-mining-law-and-new-investments-success-case-stories-of-foreign-investors/

46. Serbia mining: The future of state owned copper mine Bor

In Serbia, mainly small mines and quarries were privatized. Larger mining complexes, such as copper mine company RTB Bor are still waiting for bidders. Some of the existing mines in Serbia, RTB Bor and Farmakom’s Lece and Zajača, are facing major problems due to debts incurred on various basis. How-ever, RTB Bor has no obligation to pay its debts before the com-pletion of the restructuring process. This mining giant remained in state’s ownership, after three unsuccessful attempts of privati-zation.

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http://serbia-energy.eu/serbia-mining-the-future-of-state-owned-copper-mine-bor/

47. Serbia mining: Payment of mining rent under the existing Law on Mining and geological exploration

The subject of exploitation that has been granted conduction of mining activities pays a fee for utilization of mineral raw materi-als and geothermal resources in accordance with the Law on Mining and geological research.

http://serbia-energy.eu/serbia-mining-payment-of-mining-rent-under-the-existing-law-on-mining-and-geological-exploration/

48. Serbia mining: Privatization of small mines, FDI in precious metals exploration

The privatization of the mines can be successful. The evidence is the example of lead and zinc mine Rudnik near Gornji Milano-vac, owned by UK company Mineco and its partners since 2004.

http://serbia-energy.eu/serbia-mining-privatization-of-small-mines-fdi-in-precious-metals-exploration/

49. Montenegro mining: Balamara Resources eyes lead-zinc ore reserves

Proved reserves of lead and zinc ore at the mine Brskovo in Mojkovac amount to 27 million tons, three times bigger than pre-viously thought, according to representatives of the Australian company Balamara Resources Limited (BRL).

http://serbia-energy.eu/montenegro-mining-balamara-resources-eyes-lead-zinc-ore-reserves/

50. Serbia mining: Mineko Ltd marks production increase in its Veliki Majdan lead & ore cinc mine

Despite interruptions in ore production and processing due to the floods in May last year, lead and zinc mine Veliki Majdan, whose majority owner is the British company Mineco Ltd., ex-ceeded the annual lead and zinc concentrate production plan by 24 percent. Although app. 47 000 tons of ore was excavated, 2 562 tons of lead concentrate and 3 582 tons of zinc concen-trate was obtained, exceeding that way the planned production of lead and zinc concentrate by 16 and 31 percent respectively.

http://serbia-energy.eu/serbia-mining-mineko-ltd-marks-production-increase-in-its-veliki-majdan-lead-ore-cinc-mine/

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51. Serbia mining: Private investment in mining exploitation, for-eign capital leads the exploitation

Exploration of unused minerals and metals represents a major challenge, and requires time and significant resources. It often takes even 10 or more years to identify and confirm the quality and the scope of deposits. It is therefore necessary that by us-ing the legislative framework, tax and fiscal regime to encour-age exploration in Serbia that later evolves into exploitation – a moment until when the companies engaged in geological stud-ies have negative cash balance. They invest time and money, but revenues for the company and for the state don’t exist until the ore is being exploited. Mineral resources and metals have no value until they are dug.

http://serbia-energy.eu/serbia-mining-private-investment-in-mining-exploitation-foreign-capital-leads-the-exploitation/

52. Serbia mining: Life Stone Capital leases from Gov the Lece lead and zinc mine

Lece mine with exploration rights on gold, lead and zince which belonged to Farmakom company will be leased to Dubai based Life Stone Capital company.

http://serbia-energy.eu/serbia-mining-life-stone-capital-leases-from-gov-the-lece-lead-and-zinc-mine/

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

SEE Energy Market

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1. Romania: TSO Co Transelectrica continues 100MEUR invest-ment cycle

Romania TSO company continues investment cycle in 2015. Ac-cording to the company’s investment plan for the current year, the total investment expenses will amount 111MEUR.

http://serbia-energy.eu/romania-tso-co-transelectrica-continues-100meur-investment-cycle/

2. Romania: Energy regulator to consider requests for the re-placement of green certificates system

Producers of energy from renewable sources require from regu-latory agency ANRE replacement of green certificates system, because the existing support schemes do not meet the criteria of investors.

http://serbia-energy.eu/romania-energy-regulator-to-consider-requests-for-the-replacement-of-green-certificates-system/

3. Bulgaria: The future of energy company NEK and electricity prices

National Electric Power Industry of Bulgaria NEK believes that the company can be profitable with current electricity prices said NEK CEO Petar Iliev. Demanding an electricity price in-crease was his biggest issue but then, the announcement of Standard & Poor’s about NEK’s reduced credit rating ensued.

http://serbia-energy.eu/bulgaria-the-future-of-energy-company-nek-and-electricity-prices/

4. Bosnia: The first kWh of electricity produced by windmills at the end of 2016

The installation of the first wind turbine for the electricity produc-tion within Wind farm Mesihovina will begin near the village of Gornji Brisnik in Bosnia and Herzegovina in the spring of next year.

http://serbia-energy.eu/bosnia-the-first-kwh-of-electricity-produced-by-windmills-at-the-end-of-2016/

www.serbia-energy.eu

South East Europe Energy Market April 2015

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5. Bosnia: Electricity exports targeted toward cross border re-gional trading

The ambitions of the Western Balkan countries in electricity ex-port could prove to be very risky, and it is anticipated that in the case of the planned scenario the region will have an electricity surplus of as much as 56 percent, while the countries with the most electricity available for export will be BiH and Serbia.

http://serbia-energy.eu/bosnia-electricity-exports-targeted-toward-cross-border-regional-trading/

6. Bosnia: Environment NGOs raise regional camping against new TPPs

NGOs environment campaign against the new coal fired power plants in the countries of West Balkans is increasing. From Croatia to Bosnia and Serbia NGOs are protesting against the coal TPPs. The coordinator of the campaign “Stop the dirty en-ergy, because the future is renewable”, in front of the Centre for Environment from Banja Luka, Igor Kalaba believes that the citi-zens of BiH and the whole region should look to the people of Labin, who declared against the construction of coal-fired ther-mal power plant.

http://serbia-energy.eu/bosnia-environment-ngos-raise-regional-camping-against-new-tpps/

7. Croatia: Energy company HEP has no reason to stop Plomin C despite environment campaigns claim from Green NGOs

Before the referendum on Sunday when 25,000 citizens of Lab-instina replied NO to the question on the building a thermal power plant Plomin C on coal, the mayor of Labin Tulio Demet-lika said that he was solely committed for the use of gas as a fuel, while the director of this project Ljubica Cvenic pointed out that studies showed that the gas was unprofitable at that loca-tion and that, regardless of the referendum result, HEP had no reason to stop the project.

http://serbia-energy.eu/croatia-energy-company-hep-has-no-reason-to-stop-plomin-c-despite-environment-campaigns-claim-from-hep/

8. Montenegro: New TPP Pljevlja China CMEC vs Skoda Praha, offers revealed

Skoda Praha wants to build a second unit of TPP Pljevlja with power output of 254 MW of electricity with an efficiency of 39.5 percent at a cost of 338.5 MEUR, and China Machinery Engi-

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neering Corporation CMEC is ready for construction of Unit II of 250 MW with an efficiency of 39 percent at a cost of 326 MEUR, according to the two companies offers.

http://serbia-energy.eu/montenegro-new-tpp-pljevlja-china-cmec-vs-skoda-praha-offers-revealed/

9. Montenegro: TERNA CEO, Submarine power cable between Montenegro and Italy operative of 2018th

Submarine power cable from Italy to Montenegro will be opera-tional in 2018th, said executive director of Terna Giovanni Ar-mani at the presentation of the business plan of the company from 2015th to 2019th.

http://serbia-energy.eu/montenegro-terna-ceo-submarine-power-cable-between-montenegro-and-italy-operative-of-2018th/

10. Montenegro: Terna contractors Nexans and Prysmian placed first underwater cable connection Italy-Balkans

Norwegian Nexans, partner of Italian Terna, laid the first 140 km of the first of two underwater electrical cables from Pescara to Montenegro.The process of protecting cable is underway, per-formed according to standard procedures in order not to dam-age the various risk factors. This is the first part of the cable

whose setting up began on February 27th, and about what have reported Montenegrin media.

http://serbia-energy.eu/montenegro-terna-contractors-nexans-and-prysmian-placed-first-underwater-cable-connection-italy-balkans/

11. Montenegro: The second unit of new TPP Pljevlja will not be cost effective?

Montenegro cannot afford to spend money that does not have for energy facilities that will not be profitable claim local and re-gional environment protection experts. Electricity production from the second unit of the thermal power plant in Pljevlja will not be profitable and that is probably the reason why the Italian partner in Electric Power Industry, the company A2A, does not want to build, said an expert in energy international organiza-tion CEE Bankwatch Network Pippa Gallop.

http://serbia-energy.eu/montenegro-the-second-unit-of-new-tpp-pljevlja-will-not-be-cost-effective/

12. Macedonia: Progressive feed-in tariffs for small hydropower plants in Macedonia

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Around 1,100 GWh of electricity can be generated from small hydropower plants in Macedonia, which represents a significant part of country’s hydro potential (17.5 percent). In the future, this potential will improve the ratio between renewable and non-renewable energy sources.

http://serbia-energy.eu/macedonia-progressive-feed-in-tariffs-for-small-hydropower-plants-in-macedonia/

13. SEE: More RES electricity requires a system overhaul in op-eration and regulation says Energy community Director

The Renewable Energy Directive and the binding 2020 targets for the Energy Community Contracting Parties (CPs) were adopted in 2012. Since then EC members have started to trans-pose the requirements for the creation of a conducive invest-ment climate for renewable energy producers in national legisla-tion.

http://serbia-energy.eu/see-more-res-electricity-requires-a-system-overhaul-in-operation-and-regulation-says-energy-community-director/

14. Hungary: China New Energy Ltd to construct Viontai Bioe-tanol plant

Chinese bioethanol and biobutanol projects developer China New Energy Ltd (CNE) said it is expecting to commence work this year on three ethanol production plants in Hungary.

http://serbia-energy.eu/hungary-china-new-energy-ltd-to-construct-viontai-bioetanol-plant/

15. Montenegro: 72MW Wind park joint venture project Mitsubishi-Ivicom Austria

Ivicom Consulting GmbH Austria and Mitsubishi Heavy Industry (MHI) formed a Consortium and thus signed an Agreement on the land lease and construction of Wind Power Plan with the Ministry of Economy representing the State Montenegro. Execu-tion of the project and said agreement has been assigned in fa-vour of Project Company (project proponent) whereas MHI was keeping an American call option for taking majority equity stake over Project Company.

http://serbia-energy.eu/montenegro-72mw-wind-park-joint-venture-project-mitsubishi-ivicom-austria/

16. Bosnia: Abengoa in race vs Chinese bidders Gezhouba-Dongfang-Shanghai for 350MW TPP Banovici

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New 350MW TPP Banovici project estimated at 574MEUR value attracted bidders from China dominantly, only European prequalified bidder is Spanish Abengoa SA.

http://serbia-energy.eu/bosnia-abengoa-in-race-vs-chinese-bidders-gezhouba-dongfang-shanghai-for-350mw-tpp-banovici/

17. Croatia: Morgan Stanley-Sberbank-Unicredit to advise Power utility HEP on IPO, HEP eyes acquisitions in SEE region

Croatian state-owned energy utility HEP will contract Morgan Stanley, Sberbank and UniCredit as consultants on plans for an initial public offering (IPO). The proceeds from the IPO would be used to strengthen HEP’s position on the local as well as on foreign markets, especially in the region.

http://serbia-energy.eu/croatia-morgan-stanley-sberbank-unicredit-to-advise-power-utility-hep-on-ipo-hep-eyes-acquisitions-in-see-region/

18. Albania: Energy regulator awards electricity licences to Ayen Energy & Devoll Hydro

Albania’s energy regulator awarded an electricity production li-cence to local company Ayen AS Energji which operates sev-

eral hydro power plants in Albania with more than 100MW out-put.

http://serbia-energy.eu/albania-energy-regulator-awards-electricity-licences-to-ayen-energy-devoll-hydro/

19. Slovenia/Croatia: GEN-I new NPP Krsko2 unit projected for electricity exports, Westinghouse, Areva and Mitsubishi as con-tractors

Nuclear power plant Krsko provides, on average, about 36 per-cent of the total electricity produced in Slovenia, where half of production delivers Croatia. For more than three decades, for how long it operates, in this nuclear power plant is produced 149.4 terawatt hours of electricity, and Krsko “retirement” is not yet in sight.

http://serbia-energy.eu/balkans-croatiaslovenia-nuclear-power-plant-of-regional-importance-gen-i-plans-to-utilize-krsko-2-for-electricity-exports/

20. Bosnia/Republika Srpska: Electricity price hike may influ-ence industrial production and overall price basket

Government of Bosnian entity Republika Srpska does not en-dorse any significant increase in electricity prices in RS, while

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employers warn that the price increase is unacceptable for them even for the one percent. If there is a price increase, em-ployers are cautioned that it is possible to expect the wages re-duction by percent of increase in the electricity price.

http://serbia-energy.eu/bosniarepublika-srpska-electricity-price-hike-may-influence-industrial-production-and-overall-price-basket/

21. Croatia: RWE offers technical supervision to Marubeni for new TPP Plomin unit

The Thermal Power Plant Plomin consists of two blocks, with the capacities of 115 and 210 megawatts. The Block 1 was built in 1969, whereas the block 2 was built in 2000. The owners of the thermal power plant are the German RWE Power and the Croatian Electric Power Industry (HEP), with the shares of 50 percent each. HEP Production has a multi-year contract with the TPP Plomin on managing and maintaining the block B. The envisaged contract duration is until 2020.

http://serbia-energy.eu/croatia-exclusive-rwe-and-power-utility-hep-to-decide-on-new-strategic-partners-for-new-tpp-plomin-unit-3/

22. Romania: Marubeni wins 1billion euro deals for 2 major power generation projects in SEE

Marubeni will build new gas power plant in Romania, in accor-dance with the agreement signed last year with the Romanian Electrocentrale Bucuresti (ELCEN), which is owned by the state. According to the agreement the plant of installed capacity of 250 megawatts will be built, and the total investment value is about 170 million euros. The construction works will take 18 months, and operating start of the plant is planned for 2017.

http://serbia-energy.eu/croatiaromania-exclusive-marubeni-japan-new-power-plant-market-actor-in-the-region-of-see/

23. Bosnia/Republika Srpska: 100MEUR Flue gas desulphuriza-tion plant project funded by Japanese loan, delayed and expen-sive project, the report

Power plant in Ugljevik had to drastically decrease sulfur diox-ide in its smoke, so it took out a 90MEUR loan for a desulfuriza-tion plant. The loan is coming due and the construction has not even begun. When BiH joined the Energy Community, RITE started to work more actively to decrease SO2. Tokyo-based TEPSCO made a project and the Japanese Investment Bank approved a 181 million KM loan with an annual interest rate of

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0.65 percent at the end of 2009. According to EPRS, the Euro-pean banks were not interested in this project.

http://serbia-energy.eu/bosniarepublika-srpska-100meur-flue-gas-desulphurization-plant-project-funded-by-japanese-loan-delayed-and-expensive-project-the-report/

24. SEE/Serbia, Bosnia, Montenegro, Macedonia, Albania: Bal-ancing framework, regional balancing integration in SEE

Serbia is a part of SMM control block together with Montenegro and Macedonia. EMS as Transmission System Operator is obliged to provide System services for the control area. Procure-ment of balancing capacity and balancing energy are based on the fact that, in Serbia,there is currently only one party with the role of Balancing Service Provider that can offer balancing serv-ices.

http://serbia-energy.eu/seeserbia-bosnia-montenegro-macedonia-albania-balancing-framework-regional-balancing-integration-in-see/

25. Bosnia: Electricity market overview 2015

Bosnia and Herzegovina is the only net electricity exporter in this group of countries, even though the capacities for electricity

production are not fully utilized, and therefore there is room for significant increases in production.

http://serbia-energy.eu/bosnia-electricity-market-overview-2015/

26. Bulgaria: US Contour Global & AES investments in coal fired power plants

In 2011, the ENEL sold its shares in the plant to the Contour-Global for 230 million euros. At this moment, the power plant is owned by the Energiina Kompaniya Maritsa Iztok 3, and the American company ContourGlobal owns 73%, and National En-ergy Company 27% of the shares. This is the third largest power plant in Bulgaria with the installed power of 900 MW.

http://serbia-energy.eu/bulgaria-exclusive-contour-global-energy-investments-in-tpps-market-influence-on-energy-balances/

27. Bosnia/Republika Srpska: The lack of coal stocks turns off TPP Gacko?

Mine and Thermal Power Plant (RiTE) “Gacko”, part of energy company of Republika Srpska, could cease electricity produc-tion from June 1 this year, because of a shortage of stocks of coal.

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http://serbia-energy.eu/bosniarepublika-srpska-the-lack-of-coal-stocks-turns-off-tpp-gacko/

28. Montenegro: Electricity market overview 2015

Report on the energy balance of Montenegro for 2014th con-firmed once again that domestic production could not meet the demand for electricity. Montenegro will face with the electricity lack accounting for 9.2 percent of total consumption.

http://serbia-energy.eu/montenegro-electricity-market-overview-2015/

29. Romania: Chinese CEE Fund will invest 50M USD in en-ergy sector

Chinese CEE Fund plans to invest between 20 and 50 million dollars in energy infrastructure projects, high efficiency co-generation and energy efficiency in Romania in 2015th stated Octavian Vidu, director of fund management company CEE Eq-uity Partners for Romania. He could not specify the details of the investment.

http://serbia-energy.eu/romania-chinese-cee-fund-will-invest-50m-usd-in-energy-sector/

30. Croatia: PWC dominant market position, competition com-plain to OLAF

Two consulting companies sue LNG Croatia to European Anti-fraud Office (OLAF) because of the competition for consultant selection who will lead the business, financial and legal advice on the LNG project, because they think that elected consultant Price Waterhouse Coopers was privileged.

http://serbia-energy.eu/croatia-pwc-dominant-market-position-competition-complain-to-olaf/

31. Republika Srpska: UK EFT CEO Vuk Hamovic expects new TPP Stanari connected to the grid in 2015

President of EFT Company Vuk Hamovic said that the construc-tion of thermal power plant “Stanari” runs according to plan and that the first delivery of electricity will begin this year, and that the following year will be a year of normal operation.

http://serbia-energy.eu/bosniarepublika-srpska-uk-eft-ceo-vuk-hamovic-expects-new-tpp-stanari-connected-to-the-grid-in-2015/

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32. Republika Srpska: MINECO UK Ltd obtained concession for construction of small HPP

The British company Mineco Limited, a member of Mineco Group, which represents one of the biggest investors in the min-ing and energy sector in the Balkan region, won a concession in the tender of the Ministry of Industry, Mining and Energy of the Government of Republika Srpska for the construction and utilization of small hydropower plant on the river Drinjača in the territory of Zvornik municipality.

http://serbia-energy.eu/bosnia-republika-srpska-mineco-uk-ltd-obtained-concession-for-construction-of-small-hpp/

33. Romania: Electricity exports boosted in jan-feb 2015

Romania’s electricity output and imports totalled 11.53 billion KWh in the first two months of the year, up 3.9% on the year. Romania’s energy output rose by an annual 4.2% in the first two months of 2015, while imports fell 9.5%, the National Statis-tics Institute, INS said in report published on their website.

http://serbia-energy.eu/romania-electricity-exports-boosted-in-jan-feb-2015/

34. Croatia: Power utility HEP & Marubeni JV deal TPP Plomin C, in depth analysis

The power utility company HEP position in the liberalized mar-ket is even more difficult, so the entry into investments is in-creasingly risky; because it derives that market is increasingly responsible for the security of supply. HEP less and less im-ports electricity because it has fewer needs and market share had declined: it lost supply of 4.3 TWh, with a tendency to lose further 1.6 TWh. Do they really need 3.6 TWh of TE Plomin C?

http://serbia-energy.eu/croatia-power-utility-hep-marubeni-jv-deal-tpp-plomin-c-in-depth-analysis/

35. Bulgaria: US AES-3C is a long term investor in power mar-ket says Olivier Marquette CEO AES Bulgaria

There is a complete discrepancy between Martitsa TPP AES-Galabovo and AES wind farm Kavarna St. Nikola Wind Farm, public image of the company is quite strange. AES is described as an American company, as the reason for the high prices for electricity and the problems in the energy sector. The reality is totally different.

http://serbia-energy.eu/bulgaria-us-aes-3c-is-a-long-term-investor-in-power-market-says-olivier-marquette-ceo-aes-bulgaria/

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36. Bosnia: New 300MW TPP Banovici feasibility analysis and project investment structure, competition between Chinese bid-ders

Brown coal mine “Banovići” is a mine in the Tuzla Canton with a very rich mining tradition. Mass production of coal from this mine begins with surface exploitation in 1946. After the Second World War, the municipality of Banovići developed as well on the resources of this mine’s high quality brown coal. The maxi-mum recorded production from this mine was during the eight-ies of the last century in the amount of around 2.5 million tons of coal per year. Today, the mine’s coal production ranges ap-proximately 1.5 million tons per year.

http://serbia-energy.eu/bosnia-new-300mw-tpp-banovici-feasibility-analysis-and-project-investment-structure-competition-between-chinese-bidders/

37. Romania: Structure, values and cross border directions of electricity trading in 2014

OPCOM data indicate that the weighted average price energy traded on the spot market last year was 35.76 euros / MWh, while the European average was 40 euro / MWh. Electricity traded on the spot market increased by about 12% in average

price of 32.66eur/ 144.62 lei / MWh in the first quarter of 2014 to 36.52/161.7 lei / MWh in the first quarter of this year accord-ing to statistics of power market OPCOM.

http://serbia-energy.eu/romania-structure-values-and-cross-border-directions-of-electricity-trading-in-2014/

38. Romania: Electrica fails to overtake DSO companies from Fondul Proprietatea

Romanian electric power distribution holding Electrica and local investment fund Fondul Proprietatea didn’t reach an agreement about the minority stake of the company Electrica which are owned by the fund.

http://serbia-energy.eu/romania-electrica-fails-to-overtake-dso-companies-from-fondul-proprietatea/

39. Croatia: Gas company LNG Croatia seeks a FEED consult-ant

The company LNG Croatia has announced a public invitation for proposals for the drafting project documentation and docu-mentation required to obtain permits for the construction of LNG terminals Krk.

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http://serbia-energy.eu/croatia-gas-company-lng-croatia-seeks-a-feed-consultant/

40. Bosnia: TSO company contracted 15MEUR for grid moderni-zation

The Company “Elektroprenos BiH” signed more than 45 con-tracts in the first three months of this year with companies from BiH and neighborhood for the implementation of various pro-jects with a total value of about 15 MEUR.

http://serbia-energy.eu/bosnia-tso-company-contracted-15meur-for-grid-modernization/

41. Romania: RES electricity boost endangers power plants and triggers TPP shut down

In Romania renewable energy has an installed capacity of ap-proximately 4,500 MWh, over 90 per cent of it consisting of wind and solar power. By law, the entire production of wind and solar farms is automatically absorbed by the energy system.

http://serbia-energy.eu/romania-res-electricity-boost-endangers-power-plants-and-triggers-tpp-shut-down/

42. Albania: Ayen Enerji Turkey 110MW HPP & Statkraft 256MW HPP may export electricity to Italy via new underwater power cable?

Private funded new HPP projects which are in different phase of development total almost 1.1GwH of green electricity which may be exported to Italian power market via new underwater power cable which is being planned by Albanian government. Albanian government signed a memorandum of understanding with German engineering company Streicher to establish a con-sortium to develop the project of cross border export line of elec-tricity to Italy.

http://serbia-energy.eu/albania-ayen-enerji-turkey-110mw-hpp-statkraft-256mw-hpp-may-export-electricity-to-italy-via-new-underwater-power-cable/

43. Croatia: Extensive oil reserves in Adriatic awaits concession-aires

200 million tons of oil and 62.5 billion m3 of gas, including un-conventional reservoirs could be won in Croatia, bidders for con-cessions for research and exploration await decision. Potential and proven hydrocarbons reserves on land and in the Adriatic are significant and, therefore, there is indeed an economic, eco-logical and technological justification for trying to use it, it was

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said at the 46th annual general meeting of the Scientific Council for oil and gas in HAZ.

http://serbia-energy.eu/croatia-extensive-oil-reserves-in-adriatic-awaits-concessionaires/

44. Bosnia: Oil importer Energopetrol marks 2014 loss

The company “Energopetrol” operated with the loss in 2014th after tax of 4, 84 MEUR, after it operated with a net loss of 6MEUR a year earlier, based on the company financial report published on the Sarajevo Stock Exchange .

http://serbia-energy.eu/bosnia-oil-importer-energopetrol-marks-2014-loss/

45. Romania: CEZ has to pay compensation for unfulfilled obli-gations in privatization process of Electrica Oltenia

The International Court of Arbitration has made the final deci-sion in the case of the lawsuit of Romania against the Czech CEZ group, by which a compensation of 81 million euros was demanded for unfulfilled obligations in the process of privatiza-tion of the company Electrica Oltenia.

http://serbia-energy.eu/romania-cez-has-to-pay-compensation-for-unfulfilled-obligations-in-privatization-process-of-electrica-oltenia/

46. Montenegro: Fersa Energias to sell its wind park project

Construction of the first wind farm in Montenegro, on the hill Krnovo between Niksic and Savnik will start in early May; it was officially announced in the Ministry of Economy. The exact date of wind farm construction on the hill Mozura near Bar is not known yet, since the first investor gave up the building and de-manded the transfer of the contract to another company, which is interested in the realization of this project in our country.

http://serbia-energy.eu/montenegro-fersa-energias-to-sell-its-wind-park-project/

47. Croatia: RWE enters the Slovenian market with electricity

Croatian subsidiary company of German RWE soon enters the Slovenian electricity market. “RWE is closely monitoring the de-velopment of the energy sector in Slovenia. Our interest is fo-cused on retail, the network and the electricity production”, says in RWE Croatia.

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http://serbia-energy.eu/croatia-rwe-enters-the-slovenian-market-with-electricity/

48. Hungary: Alpiq privatization of TPP Csepel 2, success case story?

The company Alpiq Suiss is the owner of the gas-fired combined-cycle thermal power plant Csepel II, located on the bank of the Danube in Budapest. Built in 2000, Csepel II is the first thermal power plant in Hungary funded by private capital. The power plant capacity amounts to 403 megawatts and, with the average generation of 992 gigawatt-hours annually, it cov-ers around six percent of the country’s energy needs.

http://serbia-energy.eu/hungary-alpiq-privatization-of-tpp-csepel-2-success-case-story/

49. Croatia: RWE management role in TPP Plomin

The Thermal Power Plant Plomin consists of two blocks, with the capacities of 115 and 210 megawatts. The Block 1 was built in 1969, whereas the block 2 was built in 2000. The owners of the thermal power plant are the German RWE Power and the Electric Power Industry of Croatia (HEP), with 50 percent shares. HEP Generation and the TPP Plomin have concluded a

multi-annual contract on managing and maintaining the Block B. The contract is envisaged to last until 2020.

http://serbia-energy.eu/croatia-rwe-management-role-in-tpp-plomin/

50. Croatia: Power utility to sell 25% of its shares, regional mar-ket expansion as strategy

Croatia will offer this year for sale 25 percent of the Croatian Electric Power Industry(HEP)through an initial public offer (IPO) in London and Zagreb, and it could announce a new competi-tion for the Croatian Postal Bank (HPB) in June, stated Mladen Pejnovic.

http://serbia-energy.eu/croatia-power-utility-to-sell-25-of-its-shares-regional-market-expansion-as-strategy/

51. Bosnia/Republika Srpska: EFT TPP Stanari biggest green-field energy FDI in Balkans

The thermal power plant Stanari which is built by the EFT group is the biggest investment in the energy sector of BiH. This plant, with the capacity of 300 megawatts, will produce two million megawatt-hours of electricity annually. The concession agree-ment for the construction and use of the TPP Stanari was

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signed with the Government of the Republic of Srpska in 2008. Considering the compensations paid so far, EFT is the biggest concessionaire in the BiH.

http://serbia-energy.eu/bosniarepublika-srpska-eft-tpp-stanari-biggest-greenfield-energy-fdi-in-balkans/

52. Bulgaria: US co AES & ContourGlobal privatization of coal fired TPPs

In Bulgaria, the American power distribution company AES has built a coal-fired thermal power plant, with the capacity of 670 megawatts, within the mine and plant Maritza East. The con-struction began in 2006 and the plant was completely finished and put into commercial use in 2011. The newest and most modern power plant in Bulgaria uses only the local lignite from the basin Maritza.

http://serbia-energy.eu/bulgaria-us-co-aes-contourglobal-privatization-of-coal-fired-tpps/

53. Croatia: Before the privatization Power utility HEP de-creases the value of thermal power plants warns from workers union

With the decision of HEP Supervisory Board, before the an-nounced privatization, the value of 315 MEUR has been written off by the initial public shares offering, how much are worth the seven power plants in Sisak, Rijeka, Plomin, Jertovac, Zagreb and Osijek, according to statements from the HEP workers un-ion.

http://serbia-energy.eu/croatia-before-the-privatization-power-utility-hep-decreases-the-value-of-thermal-power-plants-warns-from-workers-union/

54. Bosnia: Power utility HZBiH marks 1Q 20MEUR profit

Power utility company HZBiH which operates 860MW in HPPs marked a successful 1st Quarter with excellent production re-sults and export of electricity.

http://serbia-energy.eu/bosnia-power-utility-hzbih-marks-1q-20meur-profit/

55. Croatia: Changes to the rules on acquiring the status of privi-leged electricity producer

Croatian Ministry of Economy adopted amendments to the Rules on acquiring the status of privileged electricity producer

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from renewable sources, in accordance with the Law on Electric-ity Market.

http://serbia-energy.eu/croatia-changes-to-the-rules-on-acquiring-the-status-of-privileged-electricity-producer/

56. Romania: Hidroelectrica targets 300MEUR profit in 2015

State-controlled Hidroelectrica has been undergoing reorganisa-tion since February 2014. It was first declared insolvent in June 2012 and exited insolvency proceedings in June 2013.

http://serbia-energy.eu/romania-hidroelectrica-targets-300meur-profit-in-2015/

57. Hungary/Croatia: MOL continues talks with INA on its future status

Croatia minister of economy recently stated that talks between INA and MOL on INA future, after announcement from MOL that it plans to sell its shares in INA, are never ending story. MOL is also quite determined to set the future of INA within its business strategy.

http://serbia-energy.eu/hungarycroatia-mol-continues-talks-with-ina-on-its-future-status/

58. Croatia: Partial sale of power utility HEP, assets value as-sessment underestimated?

Initiative to gather financing for regional market expansion of power utility HEP thru IPO offering on stock markets raised fierce discussions on company value. Unions and local experts raised the questions on company assets value. HEP wrote off thermal power plants worth 318 MEUR, and it seems that the unprofitable distributions and central heating systems in all cit-ies are the next.

http://serbia-energy.eu/croatia-partial-sale-of-power-utility-hep-assets-value-assessment-underestimated/

59. Republika Srpska: Power utility ERS earned 40MEUR from electricity sales in 2014

Power utility of Republika Srpska ERS company marked posi-tive electricity export results in 2014, prices gained in direct sales were satisfactory according to the ERS representative.

http://serbia-energy.eu/republika-srpska-power-utility-ers-earned-40meur-from-electricity-sales-in-2014/

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60. Bulgaria: Nord Pool Spot enters Bulgarian market, competi-tion to EPEX Spot deal in Serbia?

After the entrance of EPEX SPOT in Balkans, agreement with Serbian TSO co EMS, Nord Pool Spot is entering Bulgarian market. Nord Pool Spot announced, that it signed a Coopera-tion Agreement with the Independent Bulgarian Energy Ex-change (IBEX), part of Bulgarian Energy Holding.

http://serbia-energy.eu/bulgaria-nord-pool-spot-enters-bulgarian-market-competition-to-epex-spot-deal-in-serbia/

61. Croatia: Gov supports power utility HEP acquisitions in the region of South East Europe

Economy Minister Ivan Vrdoljak stated that he is expecting re-gional expansion of state owned power utility company HEP. “Personally, I am happy because of every investment in Croa-tia, and somehow I especially look forward to see that the Croa-tian entrepreneurs, Croatian companies managed to buy in re-gional markets.

http://serbia-energy.eu/croatia-gov-supports-power-utility-hep-acquisitions-in-the-region-of-south-east-europe/

62. Bosnia/Croatia: Cross border nuclear waste issue triggers environment concerns

The Government of the Republic of Srpska opposes the possi-bility of construction of a radioactive waste dump site at the loca-tion Trgovinska gora, in the Municipality of Dvor, located on the border between Croatia and Bosnia and Herzegovina. The Gov-ernment of the Republic of Srpska has announced the imple-mentation of all necessary measures for making this project im-possible.

http://serbia-energy.eu/bosniacroatia-cross-border-nuclear-waste-issue-triggers-environment-concerns/

63. Romania: Hidroelectrica increases profit for 1st Q 2015

Hidroelectrica recorded in the first quarter of 2015, gross profit of 91MEUR, more than double compared to the same period last year. The performance was due to the high level of electric-ity production in this period being produced and delivered a quantity of electricity from 4711 GWh, 37% higher than the 3,443 GWh produced and delivered in the same period last year, but especially the implementation of a proactive manage-ment, visionary and committed resources management and company values, writes the company statement.

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http://serbia-energy.eu/romania-hidroelectrica-increases-profit-for-1st-q-2015-2/

64. Romania: EC approves 37MEUR financial aid to Hunedoara Energy Complex

European Commission approves financial rescue aid for Hune-doara Energy Complex, considering that it complies with EU rules on state aid and, in addition, Romania has committed to submit a restructuring plan designed to ensure the future viabil-ity of EC Hunedoara, where the undertaking will not be able to repay the rescue aid after six months.

http://serbia-energy.eu/romania-ec-approves-37meur-financial-aid-to-hunedoara-energy-complex/

65. Serbia, Bosnia, Montenegro: Energy & China expansion in SEE, new TPPs and financial frameworks

China’s economy is now the most influential economy in the world. While the Germans and Italians gave up, the Chinese have already entered the serious jobs in the region. Is it better for Serbia to consider other strategic partners for projects that are of national importance? And how to do it? The development

of Serbian energy sector obviously depends on the possible an-swers to these questions.

http://serbia-energy.eu/serbia-exclusive-are-the-chinese-the-most-serious-energy-investment-players-in-the-region/

66. Serbia, Bosnia, Croatia, Macedonia, Montenegro: Electricity markets, wholesale and retail

Electricity markets in the region of Balkans-South East Europe are fully liberalized. Prices of the electricity are volatile and dif-ferent in each market. Active traders have different strategies for big and retail clients. Prices still influence the level of devel-opment of the each market.

http://serbia-energy.eu/serbia-balkans-electricity-market-supply-market-in-balkan-countries-and-market-participants-local-electricity-traders-compete-with-eu-traders/

67. Bosnia: Green NGOs stopped the HPP project on Sutjeska river

The studies on the construction of hydropower plants in the Sutjeska and Hrcavka canyons were disputed. District Court in Banja Luka, ruled the second time in favor of the Center for the Environment. The District Court in Banja Luka also annulled the

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Decision on approving the Study of the environmental impact of small hydropower plants planned in the canyon of the river Sutjeska in the National Park “Sutjeska” and so ruled in favor of the Center for the Environment. Before that, already in Febru-ary, the Study for hydropower plants on the river Hrcavka has been canceled.

http://serbia-energy.eu/bosnia-green-ngos-stopped-the-hpp-project-on-sutjeska-river/

68. Bosnia: TSO grid fee to influence electricity price increase

The management of TSO company BiH “Elektroprenos” has sent the request to the State Electricity Regulatory Commission (DERK), which requires a determination of new tariffs for elec-tricity transmission.

http://serbia-energy.eu/bosnia-tso-grid-fee-to-influence-electricity-price-increase/

69. Montenegro: Power utility marks 35MEUR/2014 from elec-tricity exports

EPCG Electric Power Industry of Montenegro imported about 886,000 megawatt hours MWh of electricity last year worth nearly 34MEUR, while at the same time earned 35 MEUR from

the sale of electricity produced in the Montenegrin power plants.

http://serbia-energy.eu/montenegro-power-utility-marks-35meur2014-from-electricity-exports/

70. Montenegro: TSO co CGES to construct key substation for Italy-Mne power connection

The preparatory works for the substation Lastva have begun in Montenegro, which is part of a linking project of the power sys-tems of Montenegro and Italy by submarine cable, and it was announced from the Montenegrin Electric Transmission System (CGES).

http://serbia-energy.eu/montenegro-tso-co-cges-to-construct-key-substation-for-italy-mne-power-connection/

71. Hungary: E.ON quits retail gas supply business

E.ON Hungary quits the business activities in retail gas sales. Energy regulator will invite other service providers to take over E.ONs client base.

http://serbia-energy.eu/hungary-e-on-quits-retail-gas-supply-business/

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72. Montenegro: TPP Pljevlja starts annual overhaul cycle

Thermal Power Plant “Pljevlja” enters at the regular annual over-haul, which will last until May 25th Until then, this production fa-cility will be out of service. There will be derived type works at key facilities during the overhaul, as well as completed the planned investment activities initiated in previous years, it was announced from the Directorate of Public Relations of Electric Power Industry of Montenegro (EPCG).

http://serbia-energy.eu/montenegro-tpp-pljevlja-starts-annual-overhaul-cycle/

73. Croatia: Electricity supplier HEP won tender for supply of Slovenia capital

Croatian Electric Power Industry confirmed on Wednesday that it had given the best offer for the tender for the electricity supply to the capital of Slovenia. Other details about the offer were not disclosed.

http://serbia-energy.eu/croatia-electricity-supplier-hep-won-tender-for-supply-of-slovenia-capital/

74. Macedonia: Energy Community requests MK to rectify fail-ure to liberalize electricity market in line with binding deadline

Energy Community Secretariat submitted a Reasoned Opinion as the next step in the dispute settlement case against the for-mer Yugoslav Republic of Macedonia for its postponement of electricity market opening.

http://serbia-energy.eu/macedonia-energy-community-requests-mk-to-rectify-failure-to-liberalize-electricity-market-in-line-with-binding-deadline/

75. SEE: Coal overshadows EU membership prospects of the Western Balkans

EU accession for Western Balkans countries must go hand in hand with environmental and climate action, writes Dragana Mileusnic. Dragana Mileusnic is energy policy coordinator for South East Europe at Climate Action Network Europe

http://serbia-energy.eu/see-coal-overshadows-eu-membership-prospects-of-the-western-balkans/