PROJECTS photovoltaic power plants in the FBiH

EPBIH

• Generation, distribution & supply of electricity

• Established in 1946

• Share Capital 1.144 billion EUR (90 % state & 10 % private share)

• Operates with 2 TPPs, 3 HPPs & 8 small HPPs

• The biggest company in B&H

Company profile

TPP Tuzla

• 90% state • 10% private

Generation Distribution & Supply

TPP Kakanj

HPP on Neretva

ED Bihac

ED Tuzla

ED Zenica

ED Sarajevo

ED Mostar

Company structure

2014Current facts

Description Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Shareholders capital 1,144 1,144 1,144 mil. €

Operational revenues 482,6 497,3 454.0 mil. €

Operational expenditures 396,1 392,5 378.3 mil. €

EBITDA 86,5 104,8 75.7 mil. €

Profit/Loss 1,6 18,9 3.6 mil. €

Production 7,404 7,473 6,509 GWh

Installed capacity 1,682 1,682 1,682 MW

Number of customers 733.600 724.607 715.411

Number of employees 4.855 4.848 4.873

Company’s key indicators

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Assets Equity & Liabilities

Short term liabilities

Long term liabilities

Equity

Current assets

Fixed assets

Balance Sheet 2014

(€ million)

*excluding coal mines

Financial results 2014(€ million)

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Revenues Costs Depreciation Profit

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Material for gen.

other revenues

financing

services

heat

electricity

01.0002.000

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8.000

2007200820092010 2011 20122013 2014

Thermal

Hydro Thermal

Production indicators

010002000300040005000600070008000

92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `12 `13 `14

G Wh

GWh 2013 2014 %

Production 7,473 7,404 - 0,9%

Thermal 5,550 5,787 +4,3%

Hydro 1,923 1,617 -15,9%

Hydro % 26% 22%

End users (Gross)

4,980 4,953 -0,5%

Production and coal supply

01000200030004000500060007000

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 `11 `12 `13 `14

000 t

Coal purchase in 20145,536 thousand tons+ 4,9% compared to 2013

• Thermal power generation is dominant and is participating in total production between 70 – 80%

• Hydro power generation is inferior and is participating in total production between 20 – 30%

• EPBiH is 100% owner of seven coal mines within FBiH

• More than 85% of the total coal is produced within own coal mines

• Price of coal is defined by the FBiH Government (90% owner of EPBiH)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

3,488 3,409 4,087 4,306 4,606 4,622 4,985 5,139 5,73 5,657 5,362 6,192 6,232 5,536 5,809

Average electricity market sales price

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2006 2007 2008 2009 2010 2011 2012 2013 2014

Average price (€/MWh)

Year 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average price (€/MWh) 35.4 47.0 56.3 64.9 44.9 51.1 53.3 51.1 44.8

NEW CAPITAL INVESTMENTS IN EPBiH

Background of the opportunity

Bosnia and Herzegovina is the country with the highest energy potential in Southeastern Europe:

• Bosnia and Herzegovina is a net exporter of electric power• 8.1% of Bosnia’s total exports is related to electric power• Total currently installed and operating capacity - 3.400 MW• Energy production capacities are not fully exploited.• The total estimated hydro potential in BIH is estimated of 23,395 GWh/per year (of which only approx. 25% are being utilized)• BIH has significant reserves of coal (3.7 billion tons of lignite and 2.2 billion tons of brown coal)

which allow development of new thermal power plants.• The Government of the Federation of BIH announced a series of projects in the energy sector in

the total value of € 5 billion as a major building block of the economic strategy of the country

Investment environment

• Reliable energy supplier in

the country and region;

• Meet the requirements of EU

& increase of generation

from renewable energy

sources;

• Massive investments needed

in energy sector

• Increasing demand for

energy

• Volatility in energy prices

DRIVERS

What will we do?

> Uptake new technologies

> Significantly reduce CO2 emissions

> Increase the efficiency of existing thermal power plants (replacement project)

> Diversify the energy portfolio and increase the reliability

> Improve distribution network

> Jobs creation• Frequent outages

• Resource endowment

• Technical Capacity

Projects are based on Strategic plan and program of development of energy sector inFederation of B&H and Government decisions

• WF Podveležje • WF Vlašić

Thermal PP

• TPP Kakanj, Unit 8• TPP Bugojno, Unit 1• TPP Tuzla, Unit 7 in tendering stage

Renewable Energy PP - Hydro

• HPP Vranduk in tendering stage• HPP Una Kostela• HPP Janici • HPP Kovanici• HPP Babino Selo• HPP Krusevo & Zeleni vir• HPP Ustikolina• SHPP on Neretvica river

List of ongoing projects

Renewable Energy PP - Wind

• WF Vlasic• WF Podvelezje in tendering stage

Thermal power plants - planned projects (Investors/strategic partner/JV)

TPP KAKANJ, UNIT 8

Investment ready

TPP & COAL MINE BUGOJNO, UNIT 1

Planning phase

TPP TUZLA, UNIT 7

In tendering phase

Replacing cogeneration unit at the existing location450 MW /2.756 GWh

Investment: 842 mill. €

Replacing cogeneration unit at the existing location300 MW / 1.755 GWh


The new cogeneration unit and coal mine 300 MW / 1.755 GWh Investment: 681 mill. €

Hydro power plants - planned projects I

HPP VRANDUK

In tendering phase

Run-of-river, diversion plant20 MW /96 GWh

Investment: 64,6 mill. €

HPP USTIKOLNA

Investment ready

Run-of-river, plant inside dam60 MW / 247 GWh


SHPP’s ON NERETVICA RIVERPlanning phase


15 plants to be constructed in 3 phases26,1 MW / 102 GWh

HPP KRUSEVO & ZELENI VIR

Planning phase

Kruševo: Accumulation,Zeleni Vir: Run-of-river, plant inside dam9,7+2,1 MW / 21,7+8,4 GWh


Hydro power plants - planned projects II

HPP KOVANIĆI

Planning phase

HPP UNA KOSTELA

Planning phase

run-of derivation power plant6.46 MW / 21.42 GWh


HPP JANJIĆI

Planning phase Investment: 35 mill. €

run of dam power plant13.3 MW / 68 GWh

HPP BABINO SELO

Planning phase

run-of derivation power plant11,5 MW / 59,5 GWh


run of dam power plant13.3 MW / 68 GWh

Wind farm - planned projects

WF Podveležje

In tendering phase

New project on new location46 MW /93 GWh


WF Vlašić

Planning phase

New project on new location48 MW / 98 GWh Investment: 64 mill. €

Project description TPP Kakanj

History of the plant & new project

• The TPP «Kakanj» is located in the center of Bosnia, 40 km from Sarajevo. • The first units of the TPP were completed in 1956. • The current installed power amounts to 578 MW with an annual output of 2.300 GWh. • Yearly consumption of coal amounts to 1,8 million tons.• The planned construction of the new TPP Unit will provide replacement capacities for the part of

the existing units which will be shut down.• All the required infrastructure for the construction of the replacement TPP Unit is available• Connection to a 400 kV grid (currently under - loaded) is secured.• Long-term supply of coal for the duration of the project and beyond is secured.• The new Unit will be designed as a cogeneration unit to provide long term supply of heating

energy to the nearby towns.

Environmental impacts

• Increased energy efficiency and accordingly reduced emission of greenhouse gases • The new Unit is designed in compliance with technologies, which assures the emission of all

pollutants to be below the permissible limit values and in accordance with the EU legislation

Project description TPP Kakanj – current statusProject preparation progress as of today

Requireddecisions by the Government

CompletedStudies &Preparation

Permitsobtained &documents inpreparation

• Completed

• Preliminary design of the plant• Investment study• Environmental study

•Enviromental permit obtained•Land permit obtained•Grid connection permit obtained

Planned activities

Tender forthe investitors

Joint projectpreparation

Start ofconstruction& operations

•Closing of the financial structure•Decision on equipment supplier •Issuance of the construction permit

•Start of civil works •Start of commercial production

•Issuance of the tender•Application deadline •Decision on the investitors

Project description TPP Kakanj - summaryBasic project data

Items Values

Installed power 300 MW

Production (based on 6.500 hours of production) 1.755 GWh

Efficiency in condensing mode 39%

Efficiency in co generation mode‐ > 70%

Coal consumption 1,3 million tons/year

Emission SO2 < 150 mg/Nm3

Emission Nox < 200 mg/Nm3

Emission Dust < 10 mg/Nm3Total Investment

Items Values

Estimated total investment costs

€ 529 millionProject development timelines

Items Values

Call for expresesion for interest June 2014

Selection of project partner May 2015

Closing of partnership aggreement December 2015

Project implementation January 2016

Issuance of the construction permit May 2016

Start of civil works for the main power building (MPB) May 2016

Start of commercial production September 2020

Project description TPP Kakanj - Heating pipelineBasic project data

Items Values

Lenght from Kakanj to Zenica 33 km

Heat Capacity 200MW th

Estimated total investment cost € 61,6 milion

EPBiH interest

• Efficiency increasing of existing and future units• Assure market for heating energy in long term period• Revenue increasing• Meet the requirements of EU and Reducing of

emissions

Local community interest

• Stable heating sistem• Less polution• Energy efficiency• Job creation

Items Values

Lenght from Kakanj to Sarajevo 40 km

Heat Capacity 450MWth

Estimated total investment cost € 61,6 milion

HPP Ustikolina Project description

Overview

• The HPP «Ustikolina» is located on the Drina river• 4 HPP already exist on river Drina• HPP «Ustikolina» is run-of-river power plant• Connection to a grid is enabled on existing 110 kV OHL

Positive & Enviromental impacts

• Independent energy production source for the region• Production of energy from renewable energy sources• Waterflow control system improvement • Economical benefit to local communities• Development of local infrastructure • Local tourism development

HPP Ustikolina project description – current status

Project preparation progress as of today




• Completed

• Prefeasibility study • Preliminary design & Environmental impact assessment study

• Preliminary water approval • Certification for connection on transmission grid• Environmental permit

Planned activities

Projectpreparation


• Urban permit Concession agreement• Issuance of the construction permit

• Start of construction• Start of commercial production

• Closing of the financial structureLoan agreement

Urban permit for investigation works

• Ongoing activities

Project description HPP Ustikolina - summary

Basic project data

Items Values

Installed power 60,48 MW

Annual production 237 GWh

Total InvestmentItems Values

Estimated total investment costs € 139 million

Project development timelines

Items Values

Preliminary designEnvironmental permit

December 2013 February 2014

Urban permit December 2015

Ensuring of financial sources June 2016

Issuance of the pre-construction permit December 2016

EPC tender completness February 2017

Start of HPP construction September2017

Start of commercial production 2022

Project description HPP Kruševo & Zeleni Vir

Overview

• HPP Kruševo & HPP Zeleni Vir is located on the Bioštica river, Olovo Municipality• HPP kruševo is peak HPP; HPP Zeleni Vir is compensation HPP• Connection to a grid is enabled on existing 110 kV & 35kV network

Positive & Enviromental impacts

• Production of energy from renewable energy sources• Increasing of energy production in Electro energetic system• Waterflow control system improvement • Economical benefit to local communities• Development of local infrastructure

Project description HPP Kruševo & HPP Zeleni Vir – current status

Project preparation progress as of today




• Completed

• Prefeasibility study • Preliminary environmental impact assessment

• Mine clearance certification obtained

Planned activities

Projectpreparation


• Urban permit• Concession agreement• Issuance of the construction permit

•Start of construction•Start of commercial production

•Closing of the financial structureLoan agreement

WBIF funds approved

•Environmental impact assessment &Preliminary design

Project description HPP Kruševo & HPP Zeleni Vir - summary

Basic project data

Items Values

Installed power 10,97 MW & 2,36 MW

Annual production 30,76 GWh & 9,64 GWh

Total InvestmentItems Values

Estimated total investment costs 33,75 mil € & 9.63 mil. €

Project development timelines

Items Values

Preliminary design & Envoronmental studyEnvironmental permit

May 2015August 2015

Urban permit September 2015

Ensuring of financial sources October 2015

Issuance of the pre-construction permit December 2015

EPC tender completness april 2016

Start of HPP construction December 2016

Start of commercial production 2020

Elvedin Grabovica - General manager e-mail: [email protected]

Tel: +387 33 751 005Fax: +387 33 751 003

mailto:[email protected]

mailto:[email protected]

Documents

PROJECTS photovoltaic power plants in the FBiH