Energy The primary task of the Energy division is to construct and maintain facilities for the generation and distribution of electric and heat energy from traditional and renewable sources. Mini cogeneration As part of its program of efficient utilization of gas resources, NIS has launched a project of equipping the oil fields with cogeneration facilities. The cogeneration module operating principle is based on the conversion of dissolved gas to heat and electrical energy. Heat energy generated in this process will be used for well infrastructure while the electrical energy will be delivered to external consumers. The cogeneration modules will reduce the fuel consumption for heat and electrical energy generation by 20-40%. Now NIS operates its own 13 mini power plants, i.e. cogeneration modules all over Serbia, with more than €15 million worth of investment into this realm of business. Electrical power generation has reached 11.6 МW, which is sufficient to supply electricity to an average of 10.000 households. In addition to the electrical power, NIS’ mini power plants also generate thermal energy required by its plants in the amount of 2 МW. This project will also result in the reduction of environmental risks by decreasing the volume of dissolved gas combustion products released into the atmosphere after gas flaring. In its operations, NIS makes a point of applying the latest technical and process solutions, maximizing operation efficiency and minimizing environmental and other kinds of risks. The cogeneration program will make it possible for NIS to access the electrical energy market in Serbia and in the Region, as well as to diversify and achieve a higher level of stability of electric power supply to its own industrial facilities and to the third parties. Electric Power Trade Electric power which is produced by NIS’ cogeneration units is placed on the market. NIS sold its first quantity of electric power in the fourth quarter of the last year. Thus, beside the Electric Power Industry of Serbia (EPS), the Company has become the sole producer in Serbia which supplies the free market with electric power. The Electric Power Trade Department, which operates within Energy Block, forecasts a significant growth in electricity trading volumes this year, both from its own generation and by active breaking into the open electricity market. Pursuing its strategic goal to become the regional energy leader, NIS intends to expand its electric power trading to all countries in the region. The licensing procedures for this line of business are underway in all subsidiaries outside Serbia, as to enable access to new markets and expand NIS’ partner network. Wind Energy NIS has started the construction of the first wind farm in Serbia in the Plandiste municipality. When complete, 34 wind power generation units with a total capacity of 102 MW will be installed in the Plandiste municipality. Capital investment in the project will amount to around 160 million Euros. This will be the first electric power generating facility built in Serbia in 25 years. The Plandište wind power plant will be the first wind farm in Serbia, with a production of at least 212 GW/hours of electric energy per year, which is enough to meet the annual needs of 42,000 households. Construction of the Plandiste wind power plant will bring Serbia closer to the fulfilment of EU requirements regarding the development of the “green” energy sector. Furthermore, it will diversify the production and delivery of electric energy and reduce impacts on the environment. Development of alternative energy industry on the whole, and the wind energy industry in particular, in Serbia meets the requirements of the EU, but is also aligned with regional tendencies in the field, and in compliance with the provisions of the National Plan for the Development of the Alternative Energy Industry, adopted by the Government of Serbia. CHP Plant The program for improving energy efficiency in the Company implies use of the best global practices in the field of electricity costs optimization. The major consumers of energy generating products in NIS are its refineries, and, for this reason, the facilities within corporate block “Refining” will become the focal point when it comes to increase of energy efficiency. Accordingly, in cooperation with “Gazprom Energo Holding”, construction of “Pančevo” Thermal Power and Heating Plant (TE-TO) has been planned on the grounds of Pančevo Oil Refinery, with intention to satisfy demands of NIS and the City of Pančevo, in the field of thermal energy, while the surplus of electric power would be put on the market. The newly-constructed power plant with a capacity of 140 MW is to provide for reliable supply of the Refinery with thermal energy, at reasonable prices and provided minimum possible environmental impact. The estimated value of this investment amounts to 140 million euro. Construction of a thermal power plant based on the steam and gas cycle technology represents the most effective solution in economic and environmental terms. This technology ensures a high coefficient of performance and, consequently, low fuel consumption. The thermal power plant will be using natural gas – environmentally the purest energy resource.