POWERING A NATIONPOWERING A NATION

MACEDONIAN POWER MACEDONIAN POWER PLANTS (ELEM)PLANTS (ELEM)

HISTORYHISTORY

JSC ELEM is a state owned Joint Stock Company for electric power JSC ELEM is a state owned Joint Stock Company for electric power generationgeneration

ELEM was established as an independent enterprise in 2005ELEM was established as an independent enterprise in 2005. . However, its business operations and generation capacities date as far back However, its business operations and generation capacities date as far back as the beginning of the 20th century in 1909, back to the first light bulb in as the beginning of the 20th century in 1909, back to the first light bulb in SkopjeSkopje

1909 – The construction of a small 44 kW diesel electrical generator1909 – The construction of a small 44 kW diesel electrical generator 1909 – 1924 – A few power generators were activated in Skopje1909 – 1924 – A few power generators were activated in Skopje 1957, 1958 – Commissioning of two 37.5 MW generators in HPP Vrutok1957, 1958 – Commissioning of two 37.5 MW generators in HPP Vrutok 1959 – Commissioning of 12.8 MW HPP Raven and 12.8 MW HPP Vrben1959 – Commissioning of 12.8 MW HPP Raven and 12.8 MW HPP Vrben 1965 – Commissioning of 42 MW HPP Globocica1965 – Commissioning of 42 MW HPP Globocica 1968 – Commissioning of 2 x 46 MW HPP Tikves1968 – Commissioning of 2 x 46 MW HPP Tikves 1969 – Commissioning of 70.2 MW HPP Spilje 1969 – Commissioning of 70.2 MW HPP Spilje 1980 – Commissioning of 125 MW TPP Oslomej1980 – Commissioning of 125 MW TPP Oslomej 1982 – 1988 – Commissioning of 3 x 225 MW TPP Bitola ( Bitola 1,2 & 3)1982 – 1988 – Commissioning of 3 x 225 MW TPP Bitola ( Bitola 1,2 & 3) 2004 – Commissioning of 80.5 MW HPP Kozjak2004 – Commissioning of 80.5 MW HPP Kozjak 2005 – Establishing of the JSC ELEM as a result of the transformation of ESM - Electric 2005 – Establishing of the JSC ELEM as a result of the transformation of ESM - Electric

power company of Macedoniapower company of Macedonia 2012 – Commissioning of 36.4 MW HPP Sveta Petka2012 – Commissioning of 36.4 MW HPP Sveta Petka 2014 –– Commissioning of 36.8 MW WP Bogdanci

ELEM & MACEDONIAELEM & MACEDONIA

Electricity is the most important factor for the economic Electricity is the most important factor for the economic development of a country development of a country and our prime goal is not only electricity and our prime goal is not only electricity production, but also finding new energy sources and raising environmental production, but also finding new energy sources and raising environmental awareness. We improve nature and we create energy.awareness. We improve nature and we create energy.

ELEM contributes to 96% of the entire domestic electricity ELEM contributes to 96% of the entire domestic electricity productionproduction

ELEM is one of the economy pillars of the countryELEM is one of the economy pillars of the country , without its , without its stability there is no better and safer future. We should therefore not delay stability there is no better and safer future. We should therefore not delay the development solution for the future of our system. Our hydro and the development solution for the future of our system. Our hydro and thermo capacities are working constantly and are maintained day and thermo capacities are working constantly and are maintained day and night.night.

ELEM IN NUMBERS 2014ELEM IN NUMBERS 2014

1.414,4 MW1.414,4 MW INSTALLED CAPACITY INSTALLED CAPACITY 4.565 GWh 4.565 GWh ANNUAL ELECTRICITY ANNUAL ELECTRICITY

PRODUCTIONPRODUCTION 22 TPP TPP 88 HPP HPP 11 WP WP 4.4004.400 EMPLOYEES EMPLOYEES 2626 GENERATORS GENERATORS (HPP+TPP)(HPP+TPP)

7,5 MILION 7,5 MILION TONS OF COALTONS OF COAL

MANAGEMENT STRUCTUREMANAGEMENT STRUCTURE

ELEM is a 100% state owned companyELEM is a 100% state owned company

The Management Board is appointed by a Supervisory Board The Management Board is appointed by a Supervisory Board ((appointed by the Macedonian Governmentappointed by the Macedonian Government), and composed of 7 members: ), and composed of 7 members:

General Manager and Chairman of the Management BoardGeneral Manager and Chairman of the Management Board Deputy General ManagerDeputy General Manager Manager for Electricity GenerationManager for Electricity Generation Commercial ManagerCommercial Manager Manager for Development and InvestmentsManager for Development and Investments Financial ManagerFinancial Manager Manager for Legal AffairsManager for Legal Affairs

TOTAL INSTALLED CAPACITYTOTAL INSTALLED CAPACITY

Total 1414,4 Total 1414,4 MW MW

Energy Balance Macedonia Energy Balance Macedonia 20142014

ELEM production

56,3%

fotonapon0,18%

independent CGHP 2,37%

independent small HPP 3%

import 38,15%

ELEM Existing Power Plants ELEM Existing Power Plants

INVESTMENTSINVESTMENTS

INVESTEMENT POLICYINVESTEMENT POLICY

One of JSC ELEM’s priorities is to consistently and One of JSC ELEM’s priorities is to consistently and continuously implement its investment policy. continuously implement its investment policy. The The company makes efforts to find the most suitable means and company makes efforts to find the most suitable means and possibilities for investments in development projects. possibilities for investments in development projects.

In 2014, JSC ELEM invested more than 57 millions of In 2014, JSC ELEM invested more than 57 millions of Euros. Euros.

These investments clearly confirm that These investments clearly confirm that ELEM is one of ELEM is one of the pillars of our country’s economy the pillars of our country’s economy and the main and the main drive for economic activities.drive for economic activities.

Storage Lukovo Pole and Storage Lukovo Pole and Intake of Korabski vodiIntake of Korabski vodi

TECHNICAL PARAMETERS TECHNICAL PARAMETERS

Average flow Average flow 2.54 m2.54 m33/s/s Annual GenerationAnnual Generation 106.8 GWh106.8 GWh Dam heightDam height 71.00 m71.00 m Construction period Construction period 4 years4 years

Project cost: 84 mil euroLoan: 71.4 milion euro from World Bank

HPP Boskov Most HPP Boskov Most

TECHNICAL PARAMETERSTECHNICAL PARAMETERS

Average flow Average flow 5.21 m5.21 m33/s/s Generation Generation 117.55 GWh117.55 GWh Dam heightDam height 31.80 m31.80 m Installed capacityInstalled capacity 2x35.70 MW2x35.70 MW Construction period Construction period 4 years4 years

Project cost: 107 mil euroLoan: 65 million euro from EBRD

HPP Spilje ExtensionHPP Spilje Extension

TECHNICAL PARAMETERSTECHNICAL PARAMETERS

EXISTING HPP SPILJEEXISTING HPP SPILJE   NUMBER OF UNITS NUMBER OF UNITS 33 RATED FLOWRATED FLOW 108 (3x36)m108 (3x36)m33/s/s AVERAGE ANNUAL GENERATIONAVERAGE ANNUAL GENERATION 320 GWh320 GWh TOTAL INSTALLED CAPACITYTOTAL INSTALLED CAPACITY 84 MW84 MW

SPILJE II (Extension)SPILJE II (Extension)

Generation Generation 12-20 GWh12-20 GWh Installed capacityInstalled capacity 28 MW28 MW Construction period Construction period 3 years3 years

Project cost: 22 mil euroLoan: 18.7 milion euro from KfW

DISTRICT HEATING OF DISTRICT HEATING OF BITOLA, MOGILA AND NOVACIBITOLA, MOGILA AND NOVACI

This project will be implemented in two phases:This project will be implemented in two phases:

1. First phase :1. First phase :

Main project design (for two phases) for 200MWth and Main project design (for two phases) for 200MWth and Infrastructure designInfrastructure design

Land acquisitionLand acquisition Construction of: Construction of:

Heating station in Bitola (2x50)MWth heat Heating station in Bitola (2x50)MWth heat exchangers)exchangers)

Transmission hot water lineTransmission hot water line Primary pumping-heating station Primary pumping-heating station

BitolaBitola Main hot water line Bitola (for Main hot water line Bitola (for

settlements with high heat settlements with high heat density)density) Indirect heating substationsIndirect heating substations Boiler houses – peak load in the city Boiler houses – peak load in the city

(20MWth)(20MWth) Consultant costsConsultant costs

DISTRICT HEATING OF DISTRICT HEATING OF BITOLA, MOGILA AND NOVACIBITOLA, MOGILA AND NOVACI

2. Second phase (additional 100MWth):2. Second phase (additional 100MWth):

Land acquisitionLand acquisition Construction of:Construction of:

Main hot water line for the remaining Main hot water line for the remaining settlements with settlements with lowest heat densitylowest heat density Additional heat exchangers in heating Additional heat exchangers in heating station Bitola station Bitola (2x50)MWth(2x50)MWth Investment in boiler houses – peak Investment in boiler houses – peak load in the city load in the city (20MWth)(20MWth)

Project cost: 87 mil euroProject cost: 87 mil euroFirst phase: 67 mil euroFirst phase: 67 mil euroPeriod of implementation 2015-2017Period of implementation 2015-2017

MODERNIZATION OF TPP MODERNIZATION OF TPP OSLOMEJOSLOMEJ

TPP Oslomej is located near city of Kicevo, with an TPP Oslomej is located near city of Kicevo, with an installed capacity of 125 MW and at this moment uses installed capacity of 125 MW and at this moment uses final quantities of coal as a basic fuel from open pit final quantities of coal as a basic fuel from open pit mine Oslomej, located near the power plant.mine Oslomej, located near the power plant.

Feasibility study (phase 1) for Modernization of TPP Feasibility study (phase 1) for Modernization of TPP Oslomej by using import coal with high caloric value Oslomej by using import coal with high caloric value (24-26 MJ/kg) is prepared in 2015. (24-26 MJ/kg) is prepared in 2015.

Next phases: providing finances; tendering; Next phases: providing finances; tendering; implementation implementation

MODERNIZATION OF TPP MODERNIZATION OF TPP OSLOMEJOSLOMEJ

POWER PLANT AFTER POWER PLANT AFTER MODERNIZATIONMODERNIZATION

Capacity Capacity ≈130 MW ≈130 MW Life span (year) Life span (year) 30 30 Efficiency of the plant Efficiency of the plant 37% 37% Generated electricity (GWh/year) Generated electricity (GWh/year) 800 800 Annual coal consumption Annual coal consumption 350.000 t 350.000 t

Strategic objective is :Strategic objective is :-Obtaining import fuel (bituminous coal) for this operation -Obtaining import fuel (bituminous coal) for this operation including including market surveymarket survey-Complying with EU Directives (LCP Directive 2010/75/EU)-Complying with EU Directives (LCP Directive 2010/75/EU)-Usage of BAT (Best Available Technology)-Usage of BAT (Best Available Technology)

Strategic objective is :Strategic objective is :-Obtaining import fuel (bituminous coal) for this operation -Obtaining import fuel (bituminous coal) for this operation including including market surveymarket survey-Complying with EU Directives (LCP Directive 2010/75/EU)-Complying with EU Directives (LCP Directive 2010/75/EU)-Usage of BAT (Best Available Technology)-Usage of BAT (Best Available Technology)

Project cost : ≈ 125 mil euroProject cost : ≈ 125 mil euroThe project is planned to be realized in The project is planned to be realized in 2017-20202017-2020

CCHPP ENERGETIKACCHPP ENERGETIKA

Models for realization:Models for realization:1.1.Private Investment Private Investment 2.2.PPP (Public Private Partnership)PPP (Public Private Partnership)

New Cogeneration plant shall use New Cogeneration plant shall use the existing installations of plant the existing installations of plant Energetika, ownership of ELEM. Energetika, ownership of ELEM.

This project should meet the This project should meet the increased needs of electricity, as increased needs of electricity, as well as at the exploitation of the well as at the exploitation of the available natural gas and the available natural gas and the current heating system.current heating system.

Location: Location: Eastern part of SkopjeEastern part of SkopjeDistance: 5 km to the city centreDistance: 5 km to the city centre

CCHPP ENERGETIKACCHPP ENERGETIKA

CCHPP is planned to be in operation in CCHPP is planned to be in operation in year 2019year 2019

Installed capacity-electricity Installed capacity-electricity 150 MW150 MW

Installed capacity-heat Installed capacity-heat 100 MW100 MW

Electricity generation Electricity generation 900 900 GWhGWh

Heat productionHeat production 300 300 GWhGWh

Gas consumption Gas consumption 275 mil nm275 mil nm33

TECHNICAL PARAMETERS TECHNICAL PARAMETERS

COAL DEPOSIT ZIVOJNOCOAL DEPOSIT ZIVOJNO

Quantity: Quantity: 100.000.000t coal (total 100.000.000t coal (total geological reserves, old estimates)geological reserves, old estimates)

According to Pre-Feasibility Study According to Pre-Feasibility Study (2013) for mine exploitation, there (2013) for mine exploitation, there are valid possibilities for excavation are valid possibilities for excavation of coal with annual capacity of 1 of coal with annual capacity of 1 million tons. million tons.

The estimated total geological coal The estimated total geological coal reserves in the Zivojno deposit, the reserves in the Zivojno deposit, the possibility for their exploitation and possibility for their exploitation and the vicinity of MPC Bitola the vicinity of MPC Bitola (approximately 20km ), justifies the (approximately 20km ), justifies the efforts for its utilization over a longer efforts for its utilization over a longer time period. time period.

COAL DEPOSIT ZIVOJNOCOAL DEPOSIT ZIVOJNO

Future activities:Future activities:Preparation of Detailed Mining Design for opening, preparation and Preparation of Detailed Mining Design for opening, preparation and exploitation of coal from the Zivojno with underground technology exploitation of coal from the Zivojno with underground technology Procedure for procurement of electro - mechanical equipment for Procedure for procurement of electro - mechanical equipment for mine Zivojnomine ZivojnoStarting with the construction of an underground mine (first stage - Starting with the construction of an underground mine (first stage - opening)opening)

Project cost: 104 mil euroProject cost: 104 mil euro

Project realization: 2015-2020Project realization: 2015-2020

COAL DEPOSIT MARIOVOCOAL DEPOSIT MARIOVO

Coal (lignite) deposit located Coal (lignite) deposit located south of the city of Prilep. south of the city of Prilep. Extensive investigations and Extensive investigations and technical documentation was technical documentation was prepared during 1965-1985. prepared during 1965-1985. Latest investigations (2010) Latest investigations (2010) presented presented 97 mil. t of coal 97 mil. t of coal reserves in total.reserves in total. Approximately Approximately 62 mil. t are 62 mil. t are exploitable exploitable with underground with underground exploitation, according to the latest exploitation, according to the latest design for opening of this mine.design for opening of this mine. Planned capacity: Planned capacity: 2.000.000 t 2.000.000 t coal/annually coal/annually Quality:Quality: LHV>6500 kJ/kg LHV>6500 kJ/kg

There are two options for utilization of the lignite from Mariovo: There are two options for utilization of the lignite from Mariovo: - Construction of new TPP Mariovo- Construction of new TPP Mariovo- Supplying of the existing TPP Bitola- Supplying of the existing TPP Bitola

COAL DEPOSIT MARIOVOCOAL DEPOSIT MARIOVO

Future activities:Future activities:

Feasibility Study for coal transport from Mariovo to TPP Feasibility Study for coal transport from Mariovo to TPP BitolaBitolaFeasibility Study for location of new TPP Bitola 4 or TPP Feasibility Study for location of new TPP Bitola 4 or TPP MariovoMariovo

Feasibility Study in year 2015Feasibility Study in year 2015Project cost : 126 mil Project cost : 126 mil euroeuroModels for realization:Models for realization:1.1.Private Investment Private Investment 2.2.PPP (Public Private Partnership)PPP (Public Private Partnership)

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