RESITA HYDRO PROJECT CEZ GROUP ROMANIAN HYDRO POWER

RESITA HYDRO PROJECT CEZ GROUP ROMANIAN HYDRO POWER SUMMIT 2014 20 February 2014

Project location and main parameters of Resita hydro system – refurbishment and modernization of 4 old hydro power plants Synoptic scheme of Resita water system 1012 m a. s. l. Location: Romania, west part of country, Banat Region, Caras Severin county Semenic channel max 2, 34 mc/s Semenic water chamber, HWL=996 m a. s. l Safra water chamber, HWL=863 m a. s. l TTA pumps (2 x 0, 3 mc/s) Safra channel Timis Trei Ape pumping station, 834 m a. s. l. Hbr=342 m Semenic river Timis Trei Ape lake 4, 4 mio mc Main channel Rankina water chamber, HWL=464 m a. s. l. Timis river Breazova water chamber, 514 m a. s. l. Hbr=474 m Barzava river Superior channel Hbr=37 m HPP Breazova, Hbr=37 m, 477 m a. s. l. Pi=0, 656 MW, E=1, 84 GWh Gozna dam&lake (597 m a. s. l. ) 10, 3 mio. mc Hbr=75 m HPP Crainicel 1, TWL=521 m a. s. l. Pi=4, 16 MW, E-8, 33 GWh/year HPP Crainicel 2, TWL=521 m a. s. l. Pi=9, 2 MW, E=23, 18 GWh/year Valiug dam &lake 0, 9 mio. mc Water pipes for Resita municipality Birzava river Secu dam & lake, 300 m a. s. l. 7, 96 mio. mc Grebla HHP, Hbr=215 m, 249 m a. s. l. Pi=7, 968 MW, E=2854 GWh/year Grebla pumping station 2

Refurbishment of old hydro system – main data for old technology Resita project started with achievement from TMK Resita (steel factory), in 2010, of existing old hydro energetic system, in operation, located on the west part of Romania, on Semenic Mountains. The hydro system included mainly: 4 hydropower plants (Grebla, Crainicel 1, Crainicel 2 and Breazova); 1 pumping station (Timis Trei Ape); 4 dams/lakes: Gozna (10, 27 millions mc), Secu (7, 96 millions mc), Valiug (0, 92 million mc), Timis Trei Ape (4, 4 millions mc); 64 km of channels, 12 tunnels and 4 main metallic aqueducts; 32 km of electrical networks 6 k. V and 35 k. V, 5 transformer stations MV/MV or MV/LV. The energy generated in old HPPs it was used by steel factory using medium voltage network and substations; The technology used in HPPs it was very old, the commissioning was as follows: HPP Grebla – 1970, HPP Crainicel 1 – 1956, HPP Crainicel 2 – 1997, HPP Breazova – 1950. Old system included historical monuments, most important are the buildings(power houses) for HPP Grebla and HPP Breazova. Total maximum power produced by the old equipment was around 18 MW. HPP Grebla – old transformer station 6/35 k. V HPP Grebla – old equipment on machines room 3

Refurbishment of old hydro system – images with old technology HPP Breazova – Power house (historical monument) HPP Breazova – oldest Francis turbine, manufactured by GANZ in 1916 HPP Crainicel 1 – Old machines room HPP Crainicel 2 – Old machines room 4

Needed for refurbishment of small hydro power plants were coming as a result of the high degree of wear and tear of initial old equipment and risk for negative potential environmental impact. HPP Crainicel 2 – Works for foundation of new turbine, generator and anchor blocks HPP Breazova– Reinforcement steel and concrete pouring for foundation of new turbine and generator HPP Crainicel 1– Reinforcement steel and concrete pouring for foundation of new turbine and generator PS TTA – Desassembly of old technology 5

Resita project – reconstruction in images Refurbishment project was complex and was divided into eight major sections : HPP Grebla , HPP Crăinicel II, HPP Breazova , Water channels, Pumping Station Timis Three Waters (TTA) , Transformer station 6/35/110 Grebla and OHL 35 k. V OHL from hydro system and last one Connection to the national electrical distribution network 110 k. V. In May 2011 started the refurbishment project of old existing assets technology from Resita hydro system, which consist mainly in design and execution of the replacement of existing equipment with new ones, repairs of channels, aqueducts, electrical networks 35 k. V and new connection to the national electrical system, including main transformer station. The design and permitting stages were developed in 2011 -2012 in parallel with the operation of old HPPs. The hydropower plants were in operation till end of July 2012, when started the execution works, in parallel for sections HPPs, PS Timis Trei Ape and Channels. Electrical execution works started in March 2013. Grebla transformer station 6/35/110 k. V– Foundations reinforcement steel HPP Grebla– Installing of new technology 6

Refurbishment – refurbishment in images The refurbishment works are made base on fully yellow turn-key contract, signed by CEZ Romania with Hydropol; The main stages of this project were: Disassembly of old machines; Carrying out construction works necessary for assembly of new equipment; Installation of new equipment; Testing and commissioning of new equipment. Effectively execution of the work began in July 2012 based on Building Permits obtained, by disassembling old machinery. Complex tests started in October 2013 and first coupling of new generators were in November 2013. All new generators were ready for continuous operation in first part of December 2013, as it was planned. HPP Grebla – Penstocks and anchors blocks refurbishment HPP Grebla – Dispatcher control room 7

Refurbishment of Resita hydro system – new technology in operation The new equipment installed in the 4 small HHPs (Grebla, Crainicel I, Cranicel II and Breazova) meet high performance criteria and include turbines, generators and transformers, GIS module, electric cells and automation panels, automated equipment for water cleaning and were produced by companies with experience in domain from countries like Germany, Italy and Norway. The general contractor of the work collaborated with Romanian companies throughout the project, supporting local economic development environment. Also, one of the major advantages of refurbishment for the community is the direct link to the National Energy System for Brebu Nou and Garana villages and reserve supply for the area Valiug - Semenic Mountain. Following the commissioning of new equipment, total installed power in the 4 hydro power plants increased from 18 to 22 MW and confirmed increased efficiency of production of hydro power (about 20%), and an improved level of environmental protection. Al hydro system is leaded on SCADA from Grebla dispatching (control) room and from Craiova DED 110 k. V for local electrical grid. End of refurbishment and modernization works was registered in December 2013 and fully commercial operation in January 2014 Grebla transformer station 6/35/110 k. V – connection with SEN HPP Grebla– Works finished 8

Refurbishment of Resita hydro system – new equipment ready for operation HPP Crainicel 2 – New technology installed HPP Breazova– New turbine and generator installed HPP Crainicel 1– Final stage of refurbishment Channels – New steel gates installed and channel refurbished 9

BACK - UP 10

Refurbishment of Resita hydro system – technical parameters of HPPs Unit Discharge (mc/s) Design Head (m) Turbine type Rotation (RPM) Generator type Generator active power (k. W) Estimated yearly net energy generated (GWh)* HPP Grebla – G 1 1, 5 209, 7 Francis horizontal 1000 Synchronous, 6 k. V 2640 9, 45 HPP Grebla –G 2 3 209, 4 Francis horizontal 750 Synchronous, 6 k. V 5328 19, 09 4, 5 - - 7968 28, 54 2 67, 8 Francis horizontal, 2 units 750 Synchronous, 6 k. V 1280 5, 29 HPP Crainicel 1 Safra head 0, 8 236, 3 Pelton vertical, 6 jets 1000 Synchronous, 6 k. V 1600 3, 04 HPP Crainicel 1 4, 8 - - 4160 8, 33 HPP Crainicel 2 2, 43 451 Pelton vertical, 6 jets 750 Synchronous, 6 k. V 9200 23, 18 Breazova – Francis 2, 24 34, 6 Francis horizontal 600 Synchronous, 6 k. V 656 1, 84 - - - 21. 984 61, 88 HPP Grebla HPP Crainicel 1 – Gozna head (2 units) TOTAL HPPs units *) Source: Hydropol CZ, General Contractor 11

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