Statkraft and Elektroprivreda Srbije sign Protocol of Cooperation

12.06.2006 08.00 | pressrelease

(Oslo, 12 June 2006)Statkraft and the Serbian electricity utility Elektroprivreda Srbije (EPS) have signed a protocol of cooperation to evaluate joint opportunities in Serbia in the area of hydropower generation and trading in the energy market.

Top management of Statkraft and EPS recently met with the Serbian Minister of Energy and Mining, Radomir Naumov, together with the Norwegian Ambassador, Haakon Blankenborg to discuss future possibilities of cooperation in hydropower generation and trading between Norway and Serbia. Naumov and Blankenborg emphasised that the existing cooperation between the two countries in the energy sector would be a good basis for further expansion in the area of hydropower and renewable energy sources.

Zoran Manasijevic, Deputy General Director of EPS, and Bård Mikkelsen, CEO and President of Statkraft signed the protocol which confirms the parties' intention to initiate preparatory activities for the revitalisation of Zvornik hydropower plant and close cooperation in the area of trading in the energy market.

"This agreement is an important signal of our interest in the Serbian market and the Balkan region as a whole. Statkraft and EPS are leading players in the fields of hydropower in their respective markets. Our two companies will work together to explore mutual business opportunities, using our combined knowledge, experience and resources", says Bård Mikkelsen.

At the meeting Manasijevic highlighted the investment potential in the Serbian electric industry and pointed to the significant investment opportunities in the hydropower sector. "The signing of the agreement is very positive for EPS. Statkraft's experience from rehabilitation of hydropower plants, and energy market restructuring and deregulation is very relevant for the Serbian energy market", says Zoran Manasijevic.

Statkraft is the second largest company in Europe operating in the field of renewable energy. We generate hydropower and wind power, we construct gas-fired power plants, and we invest in innovation with the clear aim of providing the energy solutions of the future. We are an important player in the European power exchanges, and we offer expertise in the fields of physical and financial power trading. In Norway, we supply electricity to more than 500,000 customers through our ownership interests in other companies. In 2005, revenues totalled some NOK 15 billion and the balance sheet had a total of around NOK 90 billion. The over 2,000 people that we employ in Norway, Sweden, Finland, Germany, the Netherlands and the United Kingdom are adding value all the time. Together, we are striving to become the European leader in the field of environment-friendly energy.

Elektroprivreda Srbije (EPS) is a Serbian state owned company with its main business activities within electricity and coal production, distribution, managing of electricity system and export-import of electricity. The company produces a total of 38 TWh per year. Main objectives are to reduce the electricity deficit in Serbia, improve finances, improve environmental protection and performance and establish a better cooperation with European electric power industries.