1. Project: Investment Options in the Energy Sector C2- 1 OPTIMISATION OF THE CRNA RIVER SYSTEM FOR ELECTRICITY PRODUCTION Objective Hydropower exploitation for peak-load electricity and inter-seasonal, inter-annual water storage

2. Project: Investment Options in the Energy Sector C2- 2 OVERALL CONCEPT Incorporation of reversible units to supply peak-load electricity using: the Crna river inflows low cost pumping during night hours Investment considered in the frame of the electricity market of the region

3. Project: Investment Options in the Energy Sector C2- 3 VARIANS FOR DEVELOPMENT OF CRNA RIVER A large number of variants have been examined related to: number of dams height of dams choice between reversible and conventional units Variant 5 Variant 8, Two variants, namely Variant 5 and Variant 8, ranked first

4. Project: Investment Options in the Energy Sector C2- 4 CRNA RIVER HYDROPOWER PROJECTS (HEP) CASCADE HEP TIKVES Rockfill dam (in operation) h=113,5 m a.s.v.=310 mil. m 3 HEP GALISTE Rockfill dam h=141,5 m a.s.v.=256 mil. m 3 (V5) or a.s.v.= 132 mil. m 3 (V6) HEP CEBREN Arch dam h=192,5 m a.s.v.=200 mil. m 3 ORLOV KAMEN Arch dam (auxiliary dam-only for V5) h=55 m a.s.v.=14,9 mil. m 3 Note: h=height, a.s.v.=active storage volume

5. Project: Investment Options in the Energy Sector C2- 5 CRNA RIVER EXPLOITATION SCHEME VARIANT 5 Totals (incl. Tikves) Installed Capacity 618MW Energy Production: 1294 GWh/y primary 1003 GWh/y secondary291 GWh/y net*1178 GWh/y Energy Consumption (pumping) 786 GWh/y *net energy = primary + 60% secondary HEP CEBREN (reversible units) 347,3 MW pumping mode ORLOV KAMEN dam HEP GALISTE (conventional units) 193,5 MW HEP TIKVES (in operation) 92 MW 332,8 MW turbine mode

6. Project: Investment Options in the Energy Sector C2- 6 270,4 MW turbine mode 258,9 MW pumping mode 191,7 MW pumping mode 201,5 MW turbine mode Totals (incl. Tikves) Installed Capacity 564MW Energy Production: 1544 GWh/y primary 1178 GWh/y secondary 366 GWh/y net* 1397 GWh/y Energy Consumption (pumping) 1119 GWh/y *net energy = primary + 60% secondary CRNA RIVER EXPLOITATION SCHEME VARIANT 8 HEP TIKVES (in operation) 92 MW HEP GALISTE (Reversible units) HEP CEBREN (reversible units)

7. Project: Investment Options in the Energy Sector C2- 7 IMPLEMENTATION OF INVESTMENT Consideration of use of Roller Compacted Concrete (RCC) technology Realisation of the investment under a concession agreement (BOT) Consideration for granting to the investor exploitation of the existing HEP Tikves (under a fee to be paid in advance) Development of the project in two stages

8. Project: Investment Options in the Energy Sector C2- 8 INVESTMENT LIFECYCLE ASSESSMENT (with Tikves and use of RCC technology) Investment characteristicsVariant 5 Variant 8 Total installed capacity (incl. Tikves) in MWe618564 Investment capital requirements in M€: excluding interest during construction including interest during construction 506 551 487 532 Dynamic unit production cost in €/MWh46,847,7 IRR on equity %14,514,3