1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 15 – Energy Bilateral screening: Chapter 21 Trans European networks - Energy PRESENTATION OF MONTENEGRO Brussels, 10-11 April 2013

2. Chapter 21: Trans European Networks - Energy European Union’s „Energy 2020“ Energy Strategy of Energy Community (october 2012) Objectives: 1. Creating competitive Energy Market 2. Attracting investments in Energy 3. Provide secure and sustainable energy supply to customers M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN PROJECTS OF ENERGY COMMUNITY INTEREST

3. Chapter 21: Trans European Networks - Energy Deadline for submission of candidate projects for PECI - end 2012. Conditions to asses PECI: 1.Located in at least one Contracting Party 2.Impact at least two Contracting Parties, or a Contracting Party and an EU Member State Proposals for PECI for electricity, gas and oil sectors (submitted by promoters) Public consultation underway Consultant → the methodology for the assessment of the PECI PROJECTS OF ENERGY COMMUNITY INTEREST M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

4. Chapter 21: Trans European Networks - Energy Montenegro proposal for PECI: 1.400 kV OHL Visegrad (BA) – Pljevlja (ME) – 70 km (included in TYNDP 2012) Countries effected: Montenegro and Bosnia and Herzegovina (also Romania, Bulgaria and Italy) Investment – cca 8 mil E (teritory of Montenegro) Increase transsmision capacity around 400 MW PROJECTS OF ENERGY COMMUNITY INTEREST M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

5. Chapter 21: Trans European Networks - Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union 2.400 kV OHL B.Basta (RS) - Pljevlja (MN) – 86 km, (included in TYNDP 2012) Countries effected: Montenegro and Serbia (also Romania, Bulgaria and Italy) Investment cca 10,6 mil Euro (teritory of Montenegro) Increase transmission capacity in the range 500 – 900 MW PROJECTS OF ENERGY COMMUNITY INTEREST Chapter 21: TEN

6. Chapter 21: Trans European Networks - Energy 3. 400 kV OHL Pljevlja - Lastva (included in TYNDP) 151 km (Pljevlja- Lastva), 2x35 (connection of SS Lastva to the existing 400kV OHL Trebinje-Podgorica) Countries affected: Montenegro (Romania, Bulgaria and Italy indirectly) Investment cca 106 mil E Line connecting existing substation Pljevlja and new substation 400/110kV Lastva PROJECTS OF ENERGY COMMUNITY INTEREST M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

7. Chapter 21: Trans European Networks - Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union 4. Ćehotina – power generation Construction of hydropower plants system between Pljevlja and border Bosnia and Herzegovina – total capacity 32,566 MW Investment cca 44 mil E Countries affected: Montenegro and Bosnia and Herzegovina Contributes to increase of the share of RES in total production PROJECTS OF ENERGY COMMUNITY INTEREST Chapter 21: TEN

8. Chapter 21: Trans European Networks - Energy 5. Lim – power generation Construction of hydropower plants system from Andrijevica to border with Serbia – total capacity 92,7 MW Investment cca 167 mil E Countries affected: Montenegro and Serbia Contributes to increase of the share of RES in total production PROJECTS OF ENERGY COMMUNITY INTEREST M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

9. Chapter 21: Trans-European Networsk - Energy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union STRATEGIC GOALS Strategic documents in energy sector: Energy policy of Montenegro until 2030 Priorities: Energy Development Strategy up to 2025 (EDS) Chapter 21: TEN

10. Chapter 21: Trans European Networks - Energy Update of the EDS is underway Draft Energy Develpment Strategy (EDS 2030) untill 2030. prepared, project funded by EU delegation in Montenegro Draft SEA on the EDS prepared by consultants and delivered to the Ministry of Economy middle of March 2013. STRATEGIC GOALS M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

11. Chapter 21: Trans European Networks - Energy New power plants envisaged in draft EDS: 1. TPP Pljevlja II – 225 MW 2. TPP Maoce - 2x250 MW or 350 MW 3. HPP Moraca – 238 MW 4. HPP Komarnica – 168 MW 5. SHPP – 120,9 MW 6. Windpower plants 189,7 MW 7. Photovoltaic– 31,5 MWp 8. Waste Power Plant – 10 MW 9. Biomass Power Plant – 39 MW Main transmission projects: Construction of 400 kV and 110 kV ring Project of submarine cable Montenegro-Italy with associated infrastuctures Interconectors between Montenegro and Serbia and Bosnia and Herzegovina (400kV OHL Brezna -Buk Bijela subject of new regional development study) PROJECTS OF NATIONAL INTEREST M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

12. Chapter 21: Trans European Networks - Energy Project of undersea HVDC Montenegro-Italy M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

13. Chapter 21: Trans European Networks - Energy Project of undersea HVDC Montenegro-Italy Project contains 4 parts: HVDC – length 350km and convertor stations in Italy and Montenegro (investor TERNA); Construction of Substation and connection to 400kV network (investor CGES); Construction of OHL 400kV Lastva-Pljevlja, length 150km (investor CGES); Construction of interconnector between Montenegro and Serbia and/or Bosnia and Herzegovina; Commissioning – end of 2016; CGES investment - cca 105mil €. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 21: TEN

14. Thank you for your attention. QUESTIONS 14