The future of Greek Gas and Power Markets Looking ahead with optimism and realism

«The future of power generation»

Dinos BenroubiExecutive Director – General Manager

29th April 2014

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• Protergia is the largest independent (private) power producer in Greece, being the owner and/or operator of a balanced portfolio of thermal (1,2 GW) and renewable plants with an asset value of 1 billion euros.

• Protergia trades electricity on international platforms as well as physically through cross border trading.

• Protergia recently entered the retail electricity market.

• Protergia is 100% subsidiary of MYTILINEOS Holdings and is the holding company of the Group’s power division.

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ALUMINIUM S.A.

334 MW CHP

Management Only

PROTERGIA AGIOS NIKOLAOS SA

444 MW CCGT

KORINTHOS POWER S.A.

437 MW CCGT

RES Subsidiaries •54 MW in operation

•52 MW (wind farms) under construction

•700 MW under development

100% 65%

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The future of power generation

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The future of Greek Gas and Power

Markets: Looking ahead with optimism and realism

• Future of gas to power

• Liberalization Progress

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Gas’ role in the Greek electricity system:

Gas remains a basic fuel for power generation

Exhausted capabilities?Future

Yearly variability

Future ?

20% of total System needsFuture

Future

Maximum usage of Interconnection Capacity

Future ?

Jan-Apr 2014 - SCADA

Jan-Apr 2013 - SCADA

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Gas’ role in the Greek electricity system: The example of February

2014

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Gas’ role in the Greek electricity system: Generation adequacy Study prepared by

ENTSO-E

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Gas’ role in the Greek electricity system: Load following through

ramping capabilityInterconnected System’s net load, 14.03.2014

Ramp Up

Ramp Up

Ramp Down

Ramp Down

5hours

3 GW

4hours

1,0 GW

2 GW

4hours

2hours

1,5 GW

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Current VS Intended situation of the Greek

electricity market

Asymmetry

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Transforming optimism to realism: Restructuring of the Greek electricity market

RAE’s roadmap, November 2012Ministerial Council’s Act, July 2013

Transitory Measures•Modification of wholesale market rules•NOME type products (third party access to lignite energy)

• Small PPC• Strategic investor in PPC• TSO’s ownership unbundling

Long Term Permanent Status•Adaptation to EU’s target model

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To be elaborated and defined by the Regulator ensuring short, medium and long term capacity adequacy

and response to peak demand in a cost effective way and

in compliance with relevant EU guidelines.

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NOME-type procedures

• NOME-type procedures aim at opening the retail market.

• NOME-type procedures shall ensure third-party access to energy produced by lignite-fired plants owned and operated by PPC and not directly to the plants.

• No impact on power plants’ financials.

• NOME is a transitional measure to be abolished by the time small PPC is transferred to third party ownership.

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• In principle, positive move, towards real energy market liberalization.

• Forced transfer of consumers instead of voluntary - competition driven - change of supplier (should already be realized through NOME if successfully designed)

Small PPC Recent Draft Law for selling 30% of

PPC

• Should aim to create symmetric competition in generation, leading to long term competition in retail and lower prices to the consumer.

Issues TBD:• Inclusion of PPC’s lowest efficiency CCGT in the package

Thank you!