1. POWERING A NATION MACEDONIAN POWER PLANTS (ELEM)

2. HISTORY  JSC ELEM is a state owned Joint Stock Company for electric power generation  ELEM was established as an independent enterprise in 2005. 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 Skopje  1909 – The construction of a small 44 kW diesel electrical generator  1909 – 1924 – A few power generators were activated in Skopje  1957, 1958 – Commissioning of two 37.5 MW generators in HPP Vrutok  1959 – Commissioning of 12.8 MW HPP Raven and 12.8 MW HPP Vrben  1965 – Commissioning of 42 MW HPP Globocica  1968 – Commissioning of 2 x 46 MW HPP Tikves  1969 – Commissioning of 70.2 MW HPP Spilje  1980 – Commissioning of 125 MW TPP Oslomej  1982 – 1988 – Commissioning of 3 x 225 MW TPP Bitola ( Bitola 1,2 & 3)  2004 – Commissioning of 80.5 MW HPP Kozjak  2005 – Establishing of the JSC ELEM as a result of the transformation of ESM - Electric power company of Macedonia  2012 – Commissioning of 36.4 MW HPP Sveta Petka –  2014 – Commissioning of 36.8 MW WP Bogdanci

3. ELEM & MACEDONIA  Electricity is the most important factor for the economic development of a country and our prime goal is not only electricity production, but also finding new energy sources and raising environmental awareness. We improve nature and we create energy.  ELEM contributes to 96% of the entire domestic electricity production  ELEM is one of the economy pillars of the country, without its 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 thermo capacities are working constantly and are maintained day and night.

4. ELEM IN NUMBERS 2014  1.414,4 MW INSTALLED CAPACITY  4.565 GWh ANNUAL ELECTRICITY PRODUCTION  2 TPP  8 HPP  1 WP  4.400 EMPLOYEES  26 GENERATORS (HPP+TPP)  7,5 MILION TONS OF COAL

5. MANAGEMENT STRUCTURE  ELEM is a 100% state owned company  The Management Board is appointed by a Supervisory Board (appointed by the Macedonian Government), and composed of 7 members:  General Manager and Chairman of the Management Board  Deputy General Manager  Manager for Electricity Generation  Commercial Manager  Manager for Development and Investments  Financial Manager  Manager for Legal Affairs

6. TOTAL INSTALLED CAPACITY Total 1414,4 MW

7. Energy Balance Macedonia 2014

8. ELEM Existing Power Plants

9. INVESTMENTS

10. INVESTEMENT POLICY  One of JSC ELEM’s priorities is to consistently and continuously implement its investment policy. The company makes efforts to find the most suitable means and possibilities for investments in development projects.  In 2014, JSC ELEM invested more than 57 millions of Euros.  These investments clearly confirm that ELEM is one of the pillars of our country’s economy and the main drive for economic activities.

11. Storage Lukovo Pole and Intake of Korabski vodi  TECHNICAL PARAMETERS  Average flow 2.54 m 3 /s  Annual Generation106.8 GWh  Dam height 71.00 m  Construction period 4 years Project cost: 84 mil euro Loan: 71.4 milion euro from World Bank

12. HPP Boskov Most HPP Boskov Most TECHNICAL PARAMETERS  Average flow 5.21 m 3 /s  Generation 117.55 GWh  Dam height 31.80 m  Installed capacity2x35.70 MW  Construction period 4 years Project cost: 107 mil euro Loan: 65 million euro from EBRD

13. HPP Spilje Extension HPP Spilje Extension TECHNICAL PARAMETERS EXISTING HPP SPILJE  NUMBER OF UNITS 3  RATED FLOW108 (3x36)m 3 /s  AVERAGE ANNUAL GENERATION320 GWh  TOTAL INSTALLED CAPACITY84 MW SPILJE II (Extension)  Generation 12-20 GWh  Installed capacity 28 MW  Construction period 3 years Project cost: 22 mil euro Loan: 18.7 milion euro from KfW

14. DISTRICT HEATING OF BITOLA, MOGILA AND NOVACI This project will be implemented in two phases: 1. First phase :  Main project design (for two phases) for 200MWth and Infrastructure design  Land acquisition  Construction of:  Heating station in Bitola (2x50)MWth heat exchangers)  Transmission hot water line  Primary pumping-heating station Bitola  Main hot water line Bitola (for settlements with high heat density)  Indirect heating substations  Boiler houses – peak load in the city (20MWth)  Consultant costs

15. DISTRICT HEATING OF BITOLA, MOGILA AND NOVACI 2. Second phase (additional 100MWth):  Land acquisition  Construction of:  Main hot water line for the remaining settlements with lowest heat density  Additional heat exchangers in heating station Bitola (2x50)MWth  Investment in boiler houses – peak load in the city (20MWth) Project cost: 87 mil euro First phase: 67 mil euro Period of implementation 2015-2017

16. MODERNIZATION OF TPP OSLOMEJ  TPP Oslomej is located near city of Kicevo, with an installed capacity of 125 MW and at this moment uses final quantities of coal as a basic fuel from open pit mine Oslomej, located near the power plant.  Feasibility study (phase 1) for Modernization of TPP Oslomej by using import coal with high caloric value (24-26 MJ/kg) is prepared in 2015.  Next phases: providing finances; tendering; implementation

17. MODERNIZATION OF TPP OSLOMEJ POWER PLANT AFTER MODERNIZATION  Capacity ≈130 MW  Life span (year) 30  Efficiency of the plant 37%  Generated electricity (GWh/year) 800  Annual coal consumption 350.000 t Strategic objective is : -Obtaining import fuel (bituminous coal) for this operation including market survey -Complying with EU Directives (LCP Directive 2010/75/EU) -Usage of BAT (Best Available Technology) Project cost : ≈ 125 mil euro The project is planned to be realized in 2017- 2020

18. CCHPP ENERGETIKA Models for realization: 1.Private Investment 2.PPP (Public Private Partnership) New Cogeneration plant shall use the existing installations of plant Energetika, ownership of ELEM. This project should meet the increased needs of electricity, as well as at the exploitation of the available natural gas and the current heating system. Location: Eastern part of Skopje Distance: 5 km to the city centre

19. CCHPP ENERGETIKA CCHPP is planned to be in operation in year 2019  Installed capacity-electricity 150 MW  Installed capacity-heat 100 MW  Electricity generation 900 GWh  Heat production300 GWh  Gas consumption 275 mil nm 3 TECHNICAL PARAMETERS

20. COAL DEPOSIT ZIVOJNO  Quantity:  100.000.000t coal (total geological reserves, old estimates)  According to Pre-Feasibility Study (2013) for mine exploitation, there are valid possibilities for excavation of coal with annual capacity of 1 million tons.  The estimated total geological coal reserves in the Zivojno deposit, the possibility for their exploitation and the vicinity of MPC Bitola (approximately 20km ), justifies the efforts for its utilization over a longer time period.

21. COAL DEPOSIT ZIVOJNO Future activities:  Preparation of Detailed Mining Design for opening, preparation and exploitation of coal from the Zivojno with underground technology  Procedure for procurement of electro - mechanical equipment for mine Zivojno  Starting with the construction of an underground mine (first stage - opening) Project cost: 104 mil euro Project realization: 2015-2020

22. COAL DEPOSIT MARIOVO Coal (lignite) deposit located south of the city of Prilep.  Coal (lignite) deposit located south of the city of Prilep.  Extensive investigations and technical documentation was prepared during 1965- 1985.  Latest investigations (2010) presented 97 mil. t of coal reserves in total.  Approximately 62 mil. t are exploitable with underground exploitation, according to the latest design for opening of this mine. Planned capacity: 2.000.000 t coal/annually Quality: LHV>6500 kJ/kg There are two options for utilization of the lignite from Mariovo: - Construction of new TPP Mariovo - Supplying of the existing TPP Bitola

23. COAL DEPOSIT MARIOVO Future activities:  Feasibility Study for coal transport from Mariovo to TPP Bitola  Feasibility Study for location of new TPP Bitola 4 or TPP Mariovo Feasibility Study in year 2015 Project cost : 126 mil euro Models for realization: 1.Private Investment 2.PPP (Public Private Partnership)

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