Since 2021 Energo-Pro has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption.

COP 2021



The International Hydropower Association (IHA) is a non-profit membership organisation and the voice for sustainable hydropower. Our mission is to advance sustainable hydropower by building and sharing knowledge on its role in renewable energy systems, responsible freshwater management and climate change solutions.

Find out more about IHA by visiting our website: www.hydropower.org

Copyright ©2021 Sustainalytics. All rights reserved. This article contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.

In 2022 Litostroj Power DOO obtained an EcoVadis Sustainability Silver Medal recognizing its efforts to create a more sustainable business.

News
October 11th, 2023
ENERGO-PRO ACQUIRES TEN HYDROPOWER PLANTS IN SPAIN FROM SIXTH STREET
Read more
October 5th, 2022
First Sustainability Report of ENERGO-PRO Group
ENERGO-PRO Group would like to introduce our first Sustainability Report for 2021. This report describes our sustainability strategy and ESG/Sustainability performance across our Business...
Read more
May 5th, 2022
ES assessment Report for Chorreritas Colombia
PROJECT DETAILS: Project name: PCH Chorreritas Project location: San Andrés River, San Andres de Cuerquia – Medellin - Colombia Installed capacity: 19.9 MW Project developer/owner:...
Read more
April 4th, 2022
ENERGO-PRO is building its first Hydropower Plant in auspicious Colombia
The Prague-based multinational energy group ENERGO-PRO will start the construction of the Chorreritas hydropower plant in Colombia this year. The 20 megawatt hydropower plant with two...
Read more
June 3th, 2021
Global Code of Conduct
ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces Global Code of Conduct. Code describes how we conduct business and how we engage with our stakeholders....
Read more
June 2th, 2021
SUSTAINABILITY POLICY
ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces "Sustainability Policy". The purpose of this document is to describe our sustainability commitments....
Read more
April 30th, 2021
Appointment of New Group CEO and Changes in Governance Bodies
The Company would like to announce changes in its management and governance bodies effective as of 1 May 2021. The Company\'s Board of Directors has appointed Petr Zafirov Milev...
Read more
April 27th, 2021
ENERGO-PRO Has Completed Alpaslan 2 Hydropower Plant in Turkey
Czech energy group ENERGO-PRO has successfully completed the construction of the hydropower plant Alpaslan 2 in Turkey. All 4 Francis turbines are now in operation, and 280 MW have...
Read more
November 1th, 2020
ENERGO-PRO launches two new Turkish hydropower plants
The Czech energy group Energo-Pro has successfully passed the necessary tests and obtained a permit to start operating two new hydropower plants, Karakurt and Alpaslan 2, in Turkey....
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August 27th, 2020
Litostroj will deliver equipment for a new hydropower station Mokrice, Slovenia
The Slovenian manufacturer of water turbines Litostroj Power from the Energo-Pro Group signed a contract with its client HESS (Hydroelectric power stations on the lower Sava River)...
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February 10th, 2020
The ENERGO-PRO group completed the dam construction in Turkey and started filling the reservoir
The multinational group ENERGO-PRO, which operates hydroelectric power plants and manufactures turbines and other hydraulic equipment, also presented itself as a major investor and...
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December 30th, 2019
Anti-Bribery and Anti-Money Laundering Policy
ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces an anti-bribery and anti-money laundering policy. This move reflects the commitment of our shareholder...
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April 15th, 2019
ENERGO-PRO begins filling the Karakurt dam this year and next year it intends to put hydraulic power plant into operation
ENERGO-PRO, the multinational operator of hydraulic power plants, enters the final stage of construction of two reservoir hydroelectric stations in eastern Turkey – Karakurt and Alpaslan...
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February 26th, 2019
JSC ENERGO-PRO GEORGIA presented 2018 Annual Report in Kakheti
Management of JSC ENERGO-PRO Georgia summoned operations results of 2018. In 2018 company purchased 5 927 mln kW/hrs electricity and pure consumption amounted 5 891.4 mln kW/hrs....
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February 22th, 2019
Turkey: Project Alpaslan 2
Alpaslan 2 is the 9th largest dam in Turkey with its reservoir area. First eight are owned by the state, Alpaslan 2 will be the largest reservoir project owned by private sector. ENERGO-PRO...
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May 16th, 2018
Czechs and Slovenians modernize iconic Austrian power stations
The companies that form the industrial core of the international group ENERGO-PRO based in Prague will modernize the famous pumped-storage hydroelectric plants in Austria. The Slovenian...
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April 30th, 2018
ENERGO-PRO has placed EUR 250 million Eurobond issue
ENERGO-PRO has placed EUR 250 million Eurobond issue in London. The bonds mature on 4 May 2024 and carry 4.500 % annual coupon; the issue price is 100%. The bonds will be listed on...
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November 30th, 2017
ENERGO-PRO has placed EUR 370 million debut Eurobond issue
ENERGO-PRO has placed EUR 370 million debut Eurobond issue in London today. The bonds mature on 7 December 2022 and carry 4.000 % annual coupon; the issue price was 100%. The bonds...
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October 9th, 2017
ENERGO-PRO assigned credit ratings by Fitch and S&P
ENERGO-PRO a.s. has today been assigned ratings by two international credit rating agencies. Fitch Ratings assigned the company an expected long-term local and foreign currency issuer...
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October 9th, 2017
ENERGO-PRO Georgia assigned a credit rating by Fitch
JSC ENERGO-PRO Georgia (“EPG”) has today been assigned an expected long-term local and foreign currency issuer default rating of ‘BB(EXP)’, with stable outlook, by Fitch Ratings....
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September 14th, 2017
ENERGO-PRO strengthens its position as a leader in Georgian Energy Sector
The ENERGO-PRO international group based in Prague strengthens its position as the biggest power company in Georgia. "We have successfully completed the acquisition of Kakheti Energy...
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September 13th, 2017
ENERGO-PRO has mandated Citi and J.P. Morgan to explore financing opportunities in the international markets
ENERGO-PRO a.s. has mandated Citi and J.P. Morgan to explore financing opportunities in the international debt capital markets. The proceeds from any such financing are expected to...
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August 9th, 2017
ENERGO-PRO to Deliver Turbines to India. They Are More Powerful than the Indians Expected.
The multinational ENERGO-PRO group will be delivering two turbines for the hydroelectric plant in Rongnich in northeast India. Their power is significantly higher than the customer...
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May 5th, 2017
ENERGO-PRO starts trading bonds at Bulgarian stock exchange in Sofia today
The trading of bonds issued by ENERGO-PRO Varna at the Bulgarian stock exchange in Sofia starts today. The bonds, authorized by the stock market chamber 28 April 2017, are septennial...
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May 4th, 2017
ENERGO-PRO will finish building the largest private dam with a hydroelectric power plant in Turkey
Supranational group ENERGO-PRO with its registered seat in Prague has taken charge of a project the aim of which is to build hydroelectric power plant and dam Alpaslan 2 in Turkey....
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April 18th, 2017
Turbines from ENERGO-PRO conquer Europe, Asia, and head to America
The engineering section of ENERGO-PRO Group is winning new contracts all over the globe – East to West, and North to South.                ...
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February 21th, 2017
Reconstruction at Dlouhé stráně will be performed by ČKD Blansko Engineering
ČKD Blansko Engineering secured a major reconstruction project at Dlouhé stráně – the most powerful Czech pumped-storage hydroelectric station. The company from Blansko became...
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January 12th, 2017
Reorganization at JSC ENERGO-PRO Georgia has been completed
On December 23rd reorganization at JSC ENERGO-PRO Georgia has been completed successfully, as a result of which legal entity – Joint Stock Company ENERGO-PRO Georgia Generation has...
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November 15th, 2016
ENERGO-PRO issues bonds with yield of 3.50 % p.a. for EUR 130 million
ENERGO-PRO Varna placed an issue of seven-year bonds with yield of 3.50 % p.a. on the Bulgarian market in the total volume of EUR 130 million. This issue of securities by one of the...
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November 13th, 2016
Slovenian and Czech supply of water turbines to Iran
The project of the new Khoda Afarin hydropower plant in Iran has opened the gates to Persia to Czech and Slovenian engineers as well. The multinational company ENERGO-PRO, with its...
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June 1th, 2016
ENERGO-PRO is upgrading the power plant in Bulgaria
Engineers from the Czech city of Blansko and turbines manufactures from Slovenian Litostroj are cooperating together on the Koprinka hydro power plant in Bulgaria. It is a project that...
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June 1th, 2016
Modernization of the Polish pumped-storage power plant is being designed in Czech Rep.
The Polish Porąbka‐Żar pumped-storage power plant is preparing a complex modernization according to a design being created in the Czech city Blansko. ČKD Blansko Engineering from...
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June 1th, 2016
Runners from ENERGO-PRO are already in operation in Peru
The new La Virgen hydropower plant in Peru can boast of three runners from the Czech Republic, more specifically with Pelton turbine runners (3x33 MW). They were supplied in the first...
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ENERGO-PRO ACQUIRES TEN HYDROPOWER PLANTS IN SPAIN FROM SIXTH STREET


 

ENERGO-PRO, a.s. an independent power producer based in the Czech Republic, is expanding its operations to Galicia, Spain. ENERGO-PRO has completed the acquisition of 100% of the share capital in Xallas Electricidad y Aleaciones, S.A.U. ("Xeal") and Feroe Ventures & Investments S.L.U. ("Feroe") from Sixth Street, a leading global investment firm. This is one of the largest Czech investments in Spain. To finance the transaction, ENERGO-PRO has obtained a EUR 300 million bridge loan from J.P. Morgan and Goldman Sachs.              

Xeal operates ten hydropower plants with a total capacity of 167 MW and two ferroalloy plants. Feroe has applied for the grant of a concession for a new pumped-storage plant with a planned capacity of 400 MW.

In 2022, the target group companies generated 386 GWh of electricity and recorded revenues of EUR 185 million, and EBITDA of EUR 45 million.

ENERGO-PRO is a renowned company in hydropower sector

ENERGO-PRO has been specializing in hydropower generation for almost 30 years. The company owns and operates 34 hydropower plants in Bulgaria, Georgia and Türkiye with a total installed capacity of 859 MW. It is also active in Latin America and is currently constructing a new hydropower plant in Colombia. The group operates electricity distribution networks in Bulgaria and Georgia, serving more than 2.5 million customers. It is a major employer with more than 9,000 employees.

Companies affiliated to ENERGO-PRO also own and operate two greenfield hydropower plants in Türkiye: Alpaslan II and Karakurt with a total installed capacity of 377 MW, as well as two hydropower plants in the Czech Republic. The group’s total installed capacity exceeds 1,248 MW. The industrial pillar of the group is the leading manufacturer of hydropower electro mechanical equipment for hydropower plants, Litostroj Group.

ENERGO-PRO enters the eurozone market with the purchase of XEAL

"The acquisition of hydropower plants in Galicia is part of the diversification of our activities which aims to spread macroeconomic and geopolitical risks. For the first time, we are targeting one of the largest electricity markets in the eurozone which we consider to be promising in terms of our strategic focus," said Petr Milev, Chief Executive Officer of ENERGO-PRO Group.

At the same time, the volume of sales denominated in euros will increase which correlates positively with ENERGO-PRO's capital structure. Part of the acquisition financing debt is denominated in euros. The Prague-based group is entering the eurozone market, with Spain's credit rating higher than that of Bulgaria, Georgia and Türkiye, where ENERGO-PRO has most of its assets.

 

Sixth Street’s responsible stewardship of assets

Since Sixth Street’s acquisition of the assets in 2019, significant investments were made to improve operational efficiency, update equipment, and enhance both safety and production capacity across the hydro assets and ferroalloy facilities.

“We are proud to have been a responsible steward of these assets along with our local operating partner at Ithaka, and we are pleased to see them on to a highly qualified, long-term owner with the history and expertise of Energo-Pro,” said Richard Sberlati, Partner at Sixth Street.

Sixth Street is a global investment firm with over $70 billion in assets under management. The firm’s Infrastructure team forms capital partnerships at scale with institutions operating infrastructure, energy transition, and renewable assets and has invested in over 6GW of renewable power since its founding.

Favourable conditions for hydropower plants

Galicia, in the north-western part of Spain, is the rainiest region of the country. With an annual rainfall of more than 2,100 litres per square metre, it offers favourable conditions for operating hydropower plants. Nine of Xeal's ten hydropower plants are located on the Xallas River. "Our goal is to diversify our portfolio of hydropower plants also in terms of hydrology. ENERGO-PRO will be less dependent on the hydrology of the countries around the Black Sea," adds Petr Milev.

Thanks to four dams and a cascade system, the hydropower plant operator will be able perfectly to exploit the potential of the Xallas River, to optimize revenue and power generation according to the needs of the transmission system, and to offer support services, the need for which will grow with a larger share of variable renewables in the grid.

Xeal is thus also a major player in the market of support services for the transmission system operator Red Eléctrica de España which is responsible for grid stability in times of fluctuating photovoltaic and wind generation.

According to the relevant concession agreement, all power plants on the Xallas River will remain in operation until at least 2060. The importance of existing water resources is reinforced by the fact that no new dams are planned to be developed in Spain.

Production of ferroalloys

The acquisition in Spain also includes two plants for the production of ferroalloys, which are used in the metallurgical and metalworking industries, and that currently operate under a long-term offtake contract. Final customers of the ferroalloy business are main steelmakers in Spain and Europe.

 

* * *

 

Crédit Agricole CIB, Gómez-Acebo & Pombo and E&Y have acted as financial, legal and accounting & tax advisors, respectively, to ENERGO-PRO.

Lazard and Pérez-Llorca acted as financial and legal advisors, respectively, to Sixth Street.

 

* * *

 

DATA SHEET

 

Xeal

ENERGO-PRO a.s.

Number of hydropower plants (HPPs)

10

34

Installed capacity

167 MW

859 MW

Renewable generation (2022)

386 GWh

2,527 GWh

Number of employees (2022)

249

9,204

Revenues (2022)

EUR 185 mil.

EUR 1,721 mil.

of which HPPs (2022)

EUR 45 mil.

EUR 188 mil.

EBITDA (2022)

EUR 45 mil.

EUR 308 mil.

of which HPPs (2022)

EUR 38 mil.

EUR 127 mil.

 

First Sustainability Report of ENERGO-PRO Group


ENERGO-PRO Group would like to introduce our first Sustainability Report for 2021. This report describes our sustainability strategy and ESG/Sustainability performance across our Business Units. It also describes our governance structure, results achieved and provides data on our Key Performance Indicators. We invite all our stakeholders to share any questions or suggestions via email address info@energo-pro.com.

Sustainability Report 2021 is available here.

 

ES assessment Report for Chorreritas Colombia


PROJECT DETAILS: Project name: PCH Chorreritas Project location: San Andrés River, San Andres de Cuerquia – Medellin - Colombia Installed capacity: 19.9 MW Project developer/owner: Energo-Pro Colombia ASSESSMENT DETAILS Assessment tool: Hydropower Sustainability ESG Gap Analysis Tool (HESG) Assessment stage: Preparation Assessment date: 14 – 21 February, 2022 Assessment overview

The full text of the document is available HERE 

The Chorreritas project achieved good practices in 11 social and environmental topics, and the assessment identified areas for improvement in the Communications and Consultation section due to the delay of communication with local communities leading to a lack of information. The report provides an action plan to address this gap.

Please leave a message via email adress info@energo-pro.com if you have a questions or comment.

The findings of the assessment are now open for a 60-day public comment period, which will end on Monday 4 July 2022.

ENERGO-PRO is building its first Hydropower Plant in auspicious Colombia


The Prague-based multinational energy group ENERGO-PRO will start the construction of the Chorreritas hydropower plant in Colombia this year. The 20 megawatt hydropower plant with two Francis turbines is expected to be operational in 2025. Construction costs will amount to just under USD 40 million.

Chorreritas will become the first hydropower facility to be operated by ENERGO-PRO Group on the American continent. "Colombia is an attractive market with interesting potential in hydro energy. It has the sixth largest potential in this field in the world, particularly for high-gradient power plants," Petr Milev, the CEO of ENERGO-PRO Group, said.

Generadora Chorreritas, a fully owned subsidiary of ENERGO-PRO Colombia, is the investor and developer. In the initial phase, the construction will be financed by its own resources, but later, according to Peter Milev, external financing may be considered.

ENERGO-PRO Group acquired the Chorreritas project from a local developer in autumn 2020 and had the opportunity to optimize it based on its experience. Modifications to the design and overall layout of the project will lead to cost optimization and faster construction.

"The size of the Chorreritas power plant project is ideal for ENERGO-PRO Group to gain experience with the energy market in Colombia," Petr Milev added.

Power plant on the Río San Andrés river

Both of the planned Francis turbines are expected to have an installed capacity of 10 MW, and the total electricity production at Chorreritas is expected to reach 120 GWh per year.

ENERGO-PRO is building a new hydropower plant on the Río San Andrés near the town of San Andrés de Cuerquia in the department of Antioquia. It will be a run-of-the-river hydropower plant without a reservoir. It will have a water gradient of 186 meters. The construction of the entire plant includes an intake structure, an inlet tunnel, the plant itself and the connection to the power transmission system. The Czech Energy Group is carrying out the construction in accordance with environmental and social standards to ensure that the entire project's impact on nature and the local community is as positive as possible. In this respect, ENERGO-PRO benefits, among other things, from the experience of the construction of the Alpaslan 2 hydropower plant in Turkey, which was implemented in accordance with the "IFC Environmental & Social Performance Standards".

Colombian trump cards

Colombia's promising hydropower potential is explained by its high rainfall and attractive topography, which makes it possible to build high-gradient power plants.

For ENERGO-PRO Group, the Colombian market represents an interesting opportunity to diversify its activities. "The Chorreritas project fits perfectly into our strategy for diversification of our hydropower portfolio in terms of both hydrology and macroeconomic and political risks," Petr Milev emphasizes.

The ENERGO-PRO Group entered the Colombian market in 2019 when it established its office there.

Energo-Pro Group owns and operates 38 hydropower plants in four countries - Bulgaria, Georgia, Turkey and the Czech Republic. In addition to hydropower, it is also involved in the sale of electricity to retail customers, with two and a half million clients using its distribution networks in Bulgaria and Georgia. The group also comprises the Litostroj Group, a manufacturer of turbines and machinery for the hydropower industry.

Global Code of Conduct


ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces Global Code of Conduct. Code describes how we conduct business and how we engage with our stakeholders. It also describes our expectations regarding human rights, sustainability and ESG.

The full text of the document "Global Code of Conduct" is available HERE

SUSTAINABILITY POLICY


ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces "Sustainability Policy". The purpose of this document is to describe our sustainability commitments. It describes leadership, environment and biodiversity, communities, governance, and human resource commitments.

The full text of the document "Sustainablity Policy" is available HERE

Appointment of New Group CEO and Changes in Governance Bodies


The Company would like to announce changes in its management and governance bodies effective as of 1 May 2021. The Company\'s Board of Directors has appointed Petr Zafirov Milev to serve as Group Chief Executive Officer. This appointment follows the decision by Jaromir Tesar, the Company\'s founder, to step down from his management role and focus primarily on strategy and business development in his position as Chairman of the Board of Directors, which he will retain.

Petr Milev and Vlastimil Ourada, Group Chief Financial Officer, will join the Company’s three-member Board of Directors. They will both relinquish their positions on the Company’s Supervisory Board. Pavel Vana will step down from the Board of Directors of the Company and will serve as Chief Executive Officer of Litostroj Group, an affiliate of ENERGO-PRO a.s. engaged in the design and manufacture of hydropower equipment.

Petr Tesar will step down from the Board of Directors of the Company and will join the two-member Supervisory Board. Christian Blatchford will join the Supervisory Board of the Company as Chairman.

Jaromir Tesar commented on the changes: “ENERGO-PRO has come a long way since its establishment in 1994. The Group has grown to become a major player in the electricity sector in Bulgaria and Georgia. Last year, we successfully completed the construction of two large hydropower projects in Turkey, which will become part of ENERGO-PRO in 2022 at the latest. And we have every reason to be optimistic for the future, validating our focus on clean energy. As the Group moves into the next stage of its development, I have decided to reflect this also in management and board structures. While I plan to take a less active role in the day-to-day management of the Group, I will continue to focus my energy on providing strategic guidance to the Company to facilitate its continued success. I have worked with Petr Milev for many years now and I am convinced that he is the best person to lead the Group going forward.”

Petr Milev said: “It is an honor to lead ENERGO-PRO Group in its next stage of development. The Company has been very successful in developing its operations in Bulgaria. Our business in Georgia is also very promising, as the country continues to implement energy sector reforms. We are most excited about the prospect of the upcoming addition of the Alpaslan 2 and Karakurt projects in Turkey into ENERGO-PRO’s generation portfolio, which will increase the scale and stability of our business for many years to come. The Group has excellent assets and many talented individuals, and I look forward to contributing to the development of the Company and our people.”

About the new CEO and the new members of the boards:

Petr Zafirov Milev

Petr Zafirov Milev has been with the Group since 2013 as a senior advisor to Jaromir Tesar, a member of the Supervisory Board of ENERGO-PRO a.s. and various subsidiary boards. Prior to ENERGO-PRO, Petr spent 13 years in financial services, working for PPF Group, the largest diversified private holding company in the Czech Republic, in various CEO, board or senior management roles. Petr graduated from the Faculty of Mathematics and Physics of the Charles University in Prague. He is a Bulgarian citizen.

Vlastimil Ourada

Vlastimil Ourada has been with the Group since 2013, in his primary capacity as Group Chief Financial Officer. He has also been the Chairman of the Supervisory Board of ENERGO-PRO a.s. and a member of various subsidiary boards. Prior to ENERGO-PRO, Vlastimil held CFO roles across CKD Group, a large Czech engineering company. Vlastimil graduated from the Faculty of Mechanical Engineering of the Czech Technical University in Prague and earned his MBA from Thunderbird School of Global Management at Arizona State University.

Christian Blatchford

Christian Blatchford is a dual qualified English and Czech lawyer who has cooperated with the Group since 2015, first as external counsel on a number of transactions and, since December 2019, as General Counsel. Christian has a background in projects, M&A and finance, but is also experienced with compliance issues. As General Counsel, he oversees the legal agenda of the group, reporting to the Board of Directors. Christian graduated from The University of Manchester and The University of Law in the United Kingdom. Christian is a dual British and Czech citizen.

 

ENERGO-PRO Has Completed Alpaslan 2 Hydropower Plant in Turkey


Czech energy group ENERGO-PRO has successfully completed the construction of the hydropower plant Alpaslan 2 in Turkey. All 4 Francis turbines are now in operation, and 280 MW have been installed. Alpaslan 2 has thus become the largest hydropower plant in the ENERGO-PRO Group's portfolio and is also the largest Czech investment in hydropower since 1989.

The hydropower plant is equipped with two turbines having an output of 110 MW and two with an output of 30 MW. "This is an ideal distribution from the point of view of optimizing energy production so that we can make full use of the dam's potential as well as the minimum ecological flow," explains Jakub Fajfr, Director of Strategy and Development at ENERGO-PRO. The runners of large turbines have a diameter of 3800 mm, of small ones 1960 mm. A technical curiosity lies in the fact that the large runners were made as one large cast - monoblock, and then machined. They are the largest Francis turbine runners produced by this method in Turkey.

The Alpaslan 2 hydropower plant was connected to the grid on October 24, 2020, after the successful installation of the first Francis turbine. ENERGO-PRO thus met all the conditions for obtaining a guaranteed dollar tariff, which applies from 1 January 2021 for the first ten years of operation of the hydropower plant. The total investment was around USD 600 million. ENERGO-PRO financed the construction mainly from its own resources, and in the final phase of the construction it used financing from the consortium of MUFG and ČEB banks in the amount of USD 175 million with insurance from the Export Guarantee and Insurance Company EGAP. "This is a unique success of the Czech investor abroad, moreover in the field of green energy. This project is also unique because of its financing model, as for the first time ever the renowned international bank MUFG (note: Mitsubishi Bank) was the leader of the banks´ club," says EGAP CEO Jan Procházka.

The guaranteed dollar tariff consists of two parts - for the first ten years of the hydropower plant operation it will be USD 73 per one megawatt-hour, and on top of that this tariff will be increased for the first five years, as the Turkish government has set clear favourable conditions if you build a turbine in Turkey. As the result, ENERGO-PRO sells energy from the Alpaslan 2 hydropower plant for USD 86 per megawatt hour. "The dollar tariff is, of course, a huge advantage, it provides investors in renewable sources with greater security, currency risk coverage and also allows them to finance such long-term infrastructure projects in green energy sector," confirms Jakub Fajfr, Director of Strategy and Development.

The hydropower plant should produce 850 GWh per year in full operation, this year ENERGO-PRO expects to produce over 650 GWh. After launching all four units, the hydropower plant produces approximately 3 GWh per day now.

The new dam with the Alpaslan 2 hydropower plant has been built up on the Murat River. With its water area of around 55 km2, it ranks among the 10 largest reservoirs in Turkey, and is the largest one operated by the private investor. ENERGO-PRO had started construction of the dam in September 2018 and completed it in two years. The volume of the dam body is 9.05 million cubic meters.


The construction proceeded 24 hours a day, seven days a week, and up to 1,900 workers were involved in the construction works.

The hydropower plants are currently the world's most important low-emission and renewable source of energy. They supply almost 17% of the world's electricity and about 70% of renewable electricity. ENERGO-PRO is the largest Czech company investing in hydropower for more than 25 years. At present, i.e. after the connection of both new Turkish hydropower plants, the company operates 38 hydropower plants in 4 countries around the world (in Georgia, Bulgaria, Turkey, and the Czech Republic). The total installed capacity in hydropower reaches 1,133 MW.

Contact for more detailed information:

Hana Hikelová, spokesperson of the ENERGO-PRO Group

e-mail: h.hikelova@ENERGO-PRO.com

 

ENERGO-PRO launches two new Turkish hydropower plants


The Czech energy group Energo-Pro has successfully passed the necessary tests and obtained a permit to start operating two new hydropower plants, Karakurt and Alpaslan 2, in Turkey. Both power plants were connected to the grid and commercial operation was started.

For both the Karakurt and Alpaslan 2 power plants, this is the launch of the first units, the first Francis turbines. “We managed to meet all the conditions for obtaining a guaranteed dollar tariff which will apply for the first ten years of the power plant operation,” adds Pavel Váňa, Executive Director of the Energo-Pro Group.

This is the largest Czech investment in hydropower industry since November 1989.

The new dam with the Karakurt hydropower plant is located in the Aras river basin.  3 Francis turbines with a total installed capacity of 99.5 MW will be installed in the power plant.  The first is already installed, while the other two units will be launched in November and December. The water area of the dam will cover an area of 14 km2 and the earth fill dam with asphalt core will reach a height of 137 meters. For the construction of the dam, Energo-Pro needed 6.4 million cubic meters of excavated rock.  Just for an idea, this is 360,000 loaded trucks. A total of 30,500 cubic meters of the asphalt mixture were then used for the asphalt core.

An even larger and more impressive new dam with the Alpaslan 2 hydropower plant is located on the Murat River. 4 Francis turbines with a total installed capacity of 280 MW will be installed in the power plant. The first unit is installed, and the remaining three will be launched in December and February. The water area of the dam will cover 55 km2. Energo-Pro began construction of the dam in September 2018 and completed it within two years. The volume of the dam body is 9.05 million cubic meters. The construction work ran 24 hours a day, seven days a week, with up to 1,900 workers taking part in the construction.

For both dams, ENERGO-PRO built an earth fill dam with an asphalt core. “ It proved to be the most suitable for the local seismological conditions, and it was also the fastest variant to execute”, adds Pavel Váňa. Both earth fill dams are completely unique in their parameters. Just for comparison, the Czech Republic now has the highest functional earth fill dam in Europe. It is located on the Dalešice water reservoir, which is exactly 100 meters high.

The connection of the power plants to the grid this year was a condition for obtaining a discounted guaranteed purchase price of electricity from January 2021. The warranty consists of two parts; in the first ten years of the power plant’s operation it will be $73 per megawatt-hour. In addition, this tariff will be increased in the first five years, as the Turkish government has set clear conditions for turbines or generators built in Turkey. As a result, Energo-Pro will sell electricity at $86 per megawatt-hour at Alpaslan 2 and $96 per megawatt-hour at Karakurt. “If we take into account the estimated electricity production, in this case we could earn about $ 520 million in the first five years.  Alpaslan 2 should produce 850 GWh and Karakurt 340 GWh per year. Of course, the advantage is also that we will have a fixed dollar tariff for 10 years; this provides investors in renewable sources with greater security and coverage of currency risk,  and it also allows them to finance these long-term infrastructure green energy projects,” confirms Pavel Váňa.

The total amount of investment in two new hydropower plants with dams exceeds USD 800 mil.

Hydropower plants are currently the world's most important low-emission and renewable source. They supply almost 17% of the world's electricity and about 70% of renewable electricity. Energo-Pro is the largest Czech company investing in hydropower for more than 25 years.  After connecting the two new Turkish power plants, the company will be operating a total of 38 hydropower plants in 4 countries around the world.

Litostroj will deliver equipment for a new hydropower station Mokrice, Slovenia


The Slovenian manufacturer of water turbines Litostroj Power from the Energo-Pro Group signed a contract with its client HESS (Hydroelectric power stations on the lower Sava River) and will participate in the development of a new hydropower station Mokrice. The delivery includes three horizontal Bulb units with a runner of 4.8 m in diameter as well as all the auxiliary systems. The value of the contract is less than EUR 19 million.

Mokrice is the fifth and the last hydropower station in the cascade on the lower Sava just before the border with Croatia. The installed capacity of the entire cascade will be 187 MW, while the capacity of Mokrice itself will be 28 MW. “Litostroj Power supplied equipment for all the other projects in this cascade – for the hydropower stations Boštanj, Arto-Blanca, Krško, and Brežice – therefore the current project is developed in continuation of our previous collaboration with this leading client in Slovenia,” adds Pavel Váňa, the Executive Director of Energo-Pro. The project of the new hydropower station Mokrice was adjusted several times to perfectly meet all the demanding conditions for a fully ecological operation without any adverse impact on the ecosystems of the Sava and Krka rivers.

In these days, the works on the project have started at the hydraulic laboratory of Litostroj Engineering in Blansko, Czech Republic, as the guaranteed performance of the turbines needs to be confirmed by a model test before the works can continue. To do so, the engineers in Blansko first had to design an accurate model of the new turbine.

Works started also on the design and technical documentation for the prototype units. After the collaboration with the Slovenian client is approved, Litostroj shall commence its production activities in order to guarantee a top final quality and timely delivery. Litostroj Power has 50 months to deliver the full contract including the installation and testing.

 

Technical data: 

Turbine type: Horizontal Bulb
Number of units: 3
Runner diameter: 4800 mm 
Rotational speed: 107 rpm
Nominal gradient: 6.4 m
Nominal discharge: 166.7 m3/s
Nominal power: 9.6 MW
Maximum gradient: 8.4 m
Maximum discharge: 166.7 m3/s
Maximum power: 12.8 MW

The ENERGO-PRO group completed the dam construction in Turkey and started filling the reservoir


The multinational group ENERGO-PRO, which operates hydroelectric power plants and manufactures turbines and other hydraulic equipment, also presented itself as a major investor and constructor of new hydraulic structures.

ENERGO-PRO's Turkish subsidiary completed the construction of the Karakurt dam, including the construction part of the power plant, at the beginning of this year and started filling the reservoir as of today.Karakurt hydro-plant in eastern Turkey is ranked among the highest asphalt-core dams in the world.

“With nearly 100 megawatts of installed capacity, Karakurt will be one of our three largest power plants. It is also an important reference for us, we were able to complete the construction according to the timetable and with significant financial savings compared to the original prognosis”said Pavel Váňa, CEO of the ENERGO-PRO Group, which has its headquarters in Prague.

The construction of the dam, which reaches a height of 137 meters, started in 2017. The construction of the power plant started a year later. Filling the embankments of the dam took about 20 months thanks to the chosen technology - it is a gravity dam with an asphalt sealing core. “This technology is still very rarely used in Turkey, as the laying of asphalt requires considerable precision both in the design of the mix and in the construction itself. In this respect, the investor plays an important role and must have the whole process closely monitored, ”adds Celal Kozumali, Director of Energo-Pro Turkey.

6.4 million cubic meters of rock was needed to build the Energo-Pro dam. This equals to approximately 360,000 loaded trucks. 30,500 cubic meters of asphalt mixture were consumed on the asphalt core itself.

Up to 1,200 workers were working on site during peak times of the dam and power plant construction, and the work was carried out in shifts 24 hours 7 days a week.

The power plant will be connected by two electric lines. The first is 7 km long, the second 40 km.

Approximately 1,000 people had to be evicted due to the construction of the dam and power plant. Energo-Pro's purchase of land and resettlement costs amounted to nearly USD 21 million.

Turkish-Czech cooperation

Other companies from the ENERGO-PRO group also participated in the construction of the Karakurt hydroelectric plant. The impellers and spirals of the three Francis turbines as well as the generators for the power plant were manufactured by Litostroj Turkey at its new plant in Ankara. Turbines and generators were designed by the engineering company Litostroj Engineering (formerly ČKD Blansko Engineering) in the Czech town of Blansko. It was also responsible for the relevant calculations, elaboration of workshop documentation and the laboratory in Blansko ensured complete hydraulic tests.

The total estimated costs of the project are now around 220 million dollars, approximately five billion Czech korunas.

The project is in its final stage

As of February this year, all the main construction elements of the plant - the dam, the construction part of the power plant, the safety spillway, the substation and the supply tunnel to the power plant - were completed. In the coming months, the mechanical and electrical parts in the power plant, injection work to seal the rock massif in the immediate vicinity of the dam, relocation of roads and cable lines remain to be completed.

“The filling of the 36 km long reservoir began with the closing of the tunnel gate, which had been used to bypass the structure,” explains Jan Libus, the construction manager. Individual gate segments were gradually installed in the prepared concrete structure at the tunnel inlet, which prevented water access. Filling of the dam itself will take up to 6 months, but in May it is planned to test the first turbine.

“Thanks to the asphalt core technology it was possible not only to achieve a rapid pace of the dam construction, but also to reduce the overall volume of earthworks. This makes the dam more subtle, ”adds Jan Libus.

Another specific feature of the Karakurt project is that due to the relatively poor geological conditions, it is necessary to carry out a large volume of injection work. These works are carried out from an injection gallery and six tunnels in the sides of the dam. Overall, they had to drill 120,000 meters for the orifice plate, with the deepest boreholes measuring 140 meters.

Turkish thirst for energy

This year, the ENERGO-PRO Group will also finalize the construction of another hydroelectric power plant in the east of the country - the Alpaslan 2 dam. Its output will reach 280 MW and will become Turkey's largest privately owned dam.

Turkey considers the construction of new water resources to be one of the main ways to get rid of dependence on energy imports. The Turkish government expects that energy demand will increase due to long-term economic development and despite the country's economic problems in recent years.

A study by the University of Economics in Izmir has shown that hydroelectric power plants are the most suitable energy source for Turkey. Their share in the total installed capacity of Turkish power plants is already over 30 percent. By supporting investment in the past decade, Turkey has also managed to significantly increase its share of domestic energy sources, which account for up to two thirds of electricity productionThe Turkish government seeks to strengthen investor confidence by, inter alia, guaranteeing feed-in tariffs in dollars from newly built renewable sources.Thus protecting investors against exchange rate fluctuations in the domestic currency.

 

 

Dam and hydroelectic plant Karakurt

Location

Kars

River

Aras (Aras basin)

License validity

2060

Basin area

7 505 km2

Installed power

99,5 MW

Yearly production

340 GWh

Head

130 m

Dam

14 km2

Dam type

Gravity dam with asphalt core

Dam height

137 m

Anti-Bribery and Anti-Money Laundering Policy


ENERGO-PRO Group, together with Litostroj Group and all other affiliates, introduces an anti-bribery and anti-money laundering policy. This move reflects the commitment of our shareholder and top management to comply with applicable laws and international best practice in all areas of our business. It also reflects the fact that our business is increasing in size and complexity and needs to address key challenges consistently across all jurisdictions. 

The full text of the document "Anti-Bribery and Anti-Money Laundering Policy" is available HERE

ENERGO-PRO begins filling the Karakurt dam this year and next year it intends to put hydraulic power plant into operation


ENERGO-PRO, the multinational operator of hydraulic power plants, enters the final stage of construction of two reservoir hydroelectric stations in eastern Turkey – Karakurt and Alpaslan 2. During the next two years, the group with its headquarters in Prague will thus increase about five times the installed capacity of its water sources in this country.

ENERGO-PRO also marks another significant milestone in Turkey – two spiral casings have already arrived to the constructed Karakurt hydraulic power plant from its subsidiary Litostroj Türkiye. This company supplied them as very first parts from its new plant in Ankara where ENERGO-PRO begins the production of turbines and generators. “Owing to our projects in Turkey, we strengthen both our traditional business consisting in power generation from water sources and the industrial pillar of the group we have been building in recent years,” said Pavel Váňa, Executive Director of the Group.

 “The contract for Karakurt is performed in cooperation with another significant company from our industrial section – Czech company Litostroj Engineering (formerly ČKD Blansko Engineering), which provided both for development and comprehensive hydraulic tests of Francis turbines,” Pavel Váňa added. ENERGO-PRO operates hydraulic power plants also in Georgia, Bulgaria and in the Czech Republic and it manufactures water machines in Slovenia.

Filling will take place this year

The components for two larger Francis turbines, both with installed capacity of 44 megawatts, have already arrived in Karakurt in Turkey and the spiral casings will be embedded into concrete in the next days.  The capacity of the third, smaller Francis turbine will be 11.5 MW and the total capacity of the Karakurt power plant will thus be almost 100 MW. The filling of the dam reservoir is scheduled to begin at the end of this year and by next April the power plant, as the first of the two constructed sources, should be connected to the grid.

The rockfill dam in Karakurt will be 137 metres high and the building contractors have already built its asphalt core up to the height of more than 30 metres. “The work progress, including piling up the dam body, is in full conformity with the time schedule and, in addition, we are able to achieve financial savings throughout the entire project which could amount up to USD 25 million,” Pavel Váňa noted.

The total expected costs of the project are currently at the level of USD 220 million, i.e. approx. five billion Czech crowns. The power plant is currently two-thirds finished.

Largest private dam

The second constructed reservoir hydroelectric station Alpaslan 2 will supply much greater installed capacity to ENERGO-PRO’s portfolio – two big and two smaller Francis turbines will generate, in total, 280 MW. It is the largest dam project owned by the Turkish private sector with the ninth largest water area – the first eight dam reservoirs are owned by the Turkish state. Alpaslan 2 is scheduled to be put into commercial operation next year in August; currently, the power plant is completed by more than 50 percent.  The dam in Alpaslan 2 will be 103 metres high and it is also built using the asphalt-core rockfill dam technology.

The value of the entire project which also includes any and all infrastructure, including new roads and transmission grids, will exceed USD 500 million – more than 11 billion Czech crowns.

Development of power engineering in Turkey

Despite last year’s economic problems of the country, the Turkish power engineering is on its way to yet another significant development. The country intends to reduce its dependence on import of energy from abroad. Given the expected strong demand for power, renewable sources, including hydraulic power plants, are strongly supported by the state – Turkey guarantees guaranteed purchase prices in US dollars which gives the investors the necessary certainty and security against exchange rate fluctuations.

“The domestic market in Turkey continues to grow strongly. The Turkish private sector is very competitive and dynamic and the country may boast about overall developed infrastructure not only in transport and telecommunications but also in power engineering,” Pavel Váňa emphasized. Last year in September, the Turkish Central Bank increased the interest rates from 17.75% to 24% whereby it calmed down the financial markets.

 

 

Karakurt dam and hydraulic power plant

Alpaslan 2 dam and hydraulic power plant

Location

Kars Province

Muş Province

River

Aras (Aras river basin)

Murat (Euphrates river basin)

Term of license

2060

2059

River basin area

7,505 km2

17,505 km2

Installed capacity

99.5 MW

280 MW

Annual production

340 GWh

853 GWh

Head net

130 m

95 m

Dam

14 km2

55 km2

Dam type

asphalt-core rockfill dam

asphalt-core rockfill dam

Dam height

137 m

103 m

 

JSC ENERGO-PRO GEORGIA presented 2018 Annual Report in Kakheti


Management of JSC ENERGO-PRO Georgia summoned operations results of 2018. In 2018 company purchased 5 927 mln kW/hrs electricity and pure consumption amounted 5 891.4 mln kW/hrs. In 2018 alike in 2017 indicator of commercial losses calculates 8%.

In 2018 group income amounted GEL 962 mln, GEL 557 mln out of which was allotted for electricity purchase, GEL 147 mln was paid to the State budget, GEL 100 mln was used for investment projects. Company salary fund amounted GEL 77 mln, GEL 46 mln was allotted for the coverage of loan liabilities and other operational expenses amounted GEL 35 mln.

In 2019 company plans to carry out GEL 110.6 mln investment.

In 2018 EPG maintained “BB” rating assigned by rating agency Fitch Ratings. Mentioned rating underlines financial stability and successful operation of the company at the Georgian energy sector; EPG still remains one of the largest investors and employers in the country.

For the purpose of electricity supply improvement, projects were carried out in low and high voltage grid. In frame of 6/10 kv network rehabilitation projects 10 751 pc poles, 553 430 m wires, 44 541 m underground cables, 572 pc transformers were installed. In the 0.4 kV network 6 407 pc poles, 503 215 m Sip cables were installed. As for the new connections project, in frame of it 20872 pc poles, 735926 m Sip cables, 519 690 m wires, 35723 m 6/10 kV cables, 516 pc 6/10-0.4 kV transformers were installed. Also substations and transformer points were rehabilitated as well.

Substantial projects were implemented at HV substations Batumi 1, Batumi 2, Batumi 3, Batumi 5, Megepalace, Iveria, Zugdidi 2, Khidmaghala, Akhaltsikhe, Bakuriani, Dusheti and Lomisi. New voltage power transformers were installed at mentioned substations, 35 kV and 6 kV distribution fields were constructed, buildings of 10 kV distribution devices were repaired, new cells were installed at 10 kV distribution devices, 110 kV current transformers were installed and etc.

Cable line connecting Batumi 2 and Batumi 5 substations was constructed, construction-reconstruction of 110 kV electricity transmission line Marabda 2 was carried out, also 110 kV transmission lines Erge 1, Moashi, Tsemi 1 and Chkhari were rehabilitated. SCADA system revision, prophilactics and testing was carried out at substations Bakuriani, Gudauri, Kobi, Larsi, Poti 4, Goderdzi and Tetritskaro; while at substations Chiatura 1, Chiatura 2, Chiatura 3, Chiatura 4, Chiatura 5, Tkibuli 1, Tkibuli 2 and Tkibuli 3 SCADA system was installed and launched.

Kakheti Energy Distribution Company was moved to EPG ownership a year and a half ago. Mentioned network was in sever condition and its rehabilitation requires serious works and resources. Significant projects are being out at the service centers. The process will continue in 2019-20 years as well. In 2018 GEL 6 mln investment was carried out in Kakheti region.

Significant projects were carried out at Chitakhevi, Ortachala, Ladjanuri and Gumati HPPs. Company owned 15 HPPs showed great performance in view of high generation indicator which amounted 1 820 mln kW/hrs. Also number of successful projects were carried out at Gardabani gas turbine power plant, which was the precondition for the efficient operation of the power plant.

High quality customer service still remains one of the strategic priorities for the company. In this direction in 2018 number of substantial projects were implemented. Customers service management program was improved. Call center employees and customer service specialists undertook trainings in regulations of the sector and improvement of customers service.

In frame of the energy field popularization project, students summer employment program was launched, which represents a completely new initiative and envisages recruitment of young professional cadres. Mentioned project will continue in 2019 actively.

„We introduced regional media representatives with our business activity report of 2018, also discussed plans for 2019. We presented number of important and successful projects which were completed in 2018, discussed improved results in different directions, also talked about deficiencies and shortcomings, which improvement is the key objective of the company. We consider that 2019 will be one of the most important years in the development of the company. Number of investment projects and budget increases more.“ – said Director General of JSC ENERGO-PRO Georgia Mikheil Botsvadze.

According to Botsvadze company monitors ongoing legislative changes process, which implies creation of new legislative base. “We welcome implementation of European regulations and development of new market model in the country. These changes will provide maximal liberalization of the market, increase of competition and investments in the field. Accordingly on the one hand we will achieve improvement of the service quality and on the other volume of investments will increase at the HPPs owned by ENERGO-PRO” - remarked Mikheil Botsvadze.

Turkey: Project Alpaslan 2


Alpaslan 2 is the 9th largest dam in Turkey with its reservoir area. First eight are owned by the state, Alpaslan 2 will be the largest reservoir project owned by private sector. ENERGO-PRO purchased 100% of shares in Murat Nehri, a company developing Alpaslan 2 dan and HPP project, from Enerjisa Enerji, Turkish joint venture of German energy company E.ON and Turkish Sabanci Group.

Authorisation of ESIA process is pending. 

For more information, please click on the following link:
http://www.energo-pro.com/alpaslan2esia

Czechs and Slovenians modernize iconic Austrian power stations


The companies that form the industrial core of the international group ENERGO-PRO based in Prague will modernize the famous pumped-storage hydroelectric plants in Austria. The Slovenian company Litostroj Power, together with the Czech company ČKD Blansko Engineering, will replace two turbines in the pumped-storage hydropower plant Limberg I in the well-known tourist destination and skiing resort of Kaprun in the federal province of Salzburg. The water for Limberg I originates mostly from Pasterze glacier of Großglockenr, with its 3.798 m,

“The creative approach of the engineers from Blansko, together with the traditionally high quality of the hydroelectric installations produced by Litostroj won the competition, and was supported also by Verbund, the operator or power stations in Austria. Particularly in the case of Häusling we offered a unique solution of new impellers and proved that with them we will be able to increase the efficiency of the turbines,” said Pavel Váňa, the executive director of the ENERGO-PRO group.

Both Austrian power stations made the history of their country and became world-famous. The Limberg I power station, along with two reservoirs, became the icon of the post-war reconstruction of Austria, and also the theme of a play named The Works by the dramatic artist and Nobel Prize winner in 2004, Elfriede Jelinek, who incorporated the project and its wartime history into her text.

The Häusling power station boasts a world primacy with its 744 m high downward flow from the Zillergründl reservoir – a downward flow equalling to two Eiffel Towers. It is the highest downward flow onto a Francis turbine impeller in the world.

The ENERGO-PRO group is a leading international operator of hydroelectric power stations; in the past few years it has been focusing on the strengthening of its industrial pillar. Thanks to the production in Litostroj and the development of engineering solutions taking place in Blansko, it carries on with the famous engineering tradition of Central Europe.

The ČKD Blansko Engineering Corporation, currently as the general supplier, together with Litostroj, also delivers the reconstruction of the pumped-storage station in Dlouhé stráně – the most powerful hydroelectric plant in the Czech Republic, with the two strongest reverse turbines in Europe.

A success of Blansko engineers

The reconstruction of the two 180 MW turbines in Häusling will involve the replacement of the impellers, which aim to increase the efficiency of the power station by more than 1.5 %. The conditions of the Verbund initially required an increase of at least 0.5 %.

“We noted some sceptic voices, saying the efficiency of these turbines cannot be increased above the requirements of Verbund. The team of our colleagues from ČKD Blansko Engineering, led by the director of research Aleš Skoták, Ph.D., developed a new type of impeller, made a model, and proved to the client that it was possible to increase the efficiency even more than anyone expected,” said Jiří Kaňák, the commercial director of Litostroj Power, who is the main contractor in the reconstruction. Other parts of the turbine will not be replaced.

The first new impeller made according to the Blansko design will be delivered by Litostroj Power in January 2019.

In the footsteps of the Marshall Plan

The Limberg 1 project also represents an interesting technical challenge for both companies from the ENERGO-PRO group. The pumped-storage station started generating energy in 1956. The impeller of the reverse turbine in this plant is horizontal and not vertical as is common for this type of turbines-pumps. Moreover, to ensure a higher rigidity, the impeller and its shaft are made together from a single monolithic forged piece.

In Limberg I, the project involves the replacement of two reverse Francis turbines, with new ones with output of 80 MW each. “We are all extremely proud of working on such a unique project,” says Jiří Kaňák.

The Kaprun hydraulic structure is one of the major projects that received support from the Marshall Plan – an American programme funding the support of the post-war reconstruction of Europe.

 

 

ENERGO-PRO has placed EUR 250 million Eurobond issue


ENERGO-PRO has placed EUR 250 million Eurobond issue in London. The bonds mature on 4 May 2024 and carry 4.500 % annual coupon; the issue price is 100%. The bonds will be listed on the Irish Stock Exchange. S&P and Fitch assigned the bonds a rating of BB- and BB, respectively, in line with the corporate rating of ENERGO-PRO, which was assigned to the company in October last year.

The bonds were sold to a broad range of international institutional investors. The net proceeds will be used for repayment of existing Group indebtedness and general corporate purposes.

ENERGO-PRO operates hydroelectric power stations in the Central and East Europe, and the Black Sea and Caucasus regions. Originally a Czech company, it gradually expanded to Bulgaria, Georgia, and Turkey. Total installed capacity of power stations owned by ENERGO-PRO is 854 MW and annual production of electricity exceeds 2.5 TWh. ENERGO-PRO is also active in distribution and sale of electricity and owns and operates electricity distribution networks in Bulgaria and Georgia serving more than 2.4 million customers. The company is also active in cross-border power trading.

ENERGO-PRO has placed EUR 370 million debut Eurobond issue


ENERGO-PRO has placed EUR 370 million debut Eurobond issue in London today. The bonds mature on 7 December 2022 and carry 4.000 % annual coupon; the issue price was 100%. The bonds will be listed on the Irish Stock Exchange. S&P and Fitch assigned the bonds a rating of BB- and BB, respectively, in line with the corporate rating of ENERGO-PRO.

The bonds were sold to a broad range of international institutional investors across Europe. The net proceeds will be used for repayment of existing Group indebtedness and general corporate purposes.

“It was our debut issue on the international capital markets and it was a nice surprise for us to see such strong interest of more than 80 investors. It is an expression of trust in our strategy and a confirmation of our strong position in the energy sector,” said Hana Hikelová, spokeswoman for ENERGO-PRO.

Investors’ great interest is illustrated by the fact that the orderbook was in excess of EUR 800 million.

ENERGO-PRO operates hydroelectric power stations in the Black Sea and Caucasus regions. Originally a Czech company, it gradually expanded to Bulgaria, Georgia, and Turkey. Total installed capacity of power stations owned by ENERGO-PRO is 854 MW and annual production of electricity exceeds 3 TWh. ENERGO-PRO is also active in distribution and sale of electricity, and owns and operates electricity distribution networks in Bulgaria and Georgia serving more than two million customers. The company is also active in cross-border power trading.

ENERGO-PRO assigned credit ratings by Fitch and S&P


ENERGO-PRO a.s. has today been assigned ratings by two international credit rating agencies. Fitch Ratings assigned the company an expected long-term local and foreign currency issuer default rating of ‘BB(EXP)’, with stable outlook. S&P Global Ratings assigned the company a preliminary 'BB-' long-term corporate credit rating, also with stable outlook.

“We are very pleased with the result, which validates our strategy and confirms our position as a strong and transparent hydropower generation and electricity distribution company across Bulgaria, Georgia and Turkey, our three main markets of operation”, said Pavel Váňa, Executive Director of ENERGO-PRO group.

ENERGO-PRO Georgia assigned a credit rating by Fitch


JSC ENERGO-PRO Georgia (“EPG”) has today been assigned an expected long-term local and foreign currency issuer default rating of ‘BB(EXP)’, with stable outlook, by Fitch Ratings. The rating is at the level of Georgia country ceiling and one notch above Georgia’s actual issuer default rating of ‘BB-’. Mikheil Botsvadze, General Director of EPG, said: “This excellent result confirms our leading position as one of the largest energy companies in Georgia.”

ENERGO-PRO strengthens its position as a leader in Georgian Energy Sector


The ENERGO-PRO international group based in Prague strengthens its position as the biggest power company in Georgia. "We have successfully completed the acquisition of Kakheti Energy Distribution and we are now distributing electricity over 85 % of Georgia's territory," said Pavel Váňa, the Executive Director of ENERGO-PRO Group.

ENERGO-PRO Georgia is becoming the only distribution company outside the capital of Tbilisi. Its share on the power distribution market will increase to 64.6 %. The ENERGO-PRO group owns also 15 hydroelectric stations in Georgia, with the total installed output of over 482 MW. The group also runs one 110 MW gas power station. After the last acquisition, ENERGO-PRO Georgia will serve more than 1.2 million customers.

By the latest acquisition the ENERGO-PRO Group acknowledged its continuing interest in the Georgian assets, and intends to broaden its portfolio even further. “In 2015 we surveyed the investors’ interest in our assets in Georgia and I can confirm their persisting interest in further acquisitions. Due to the changes of legislation in Georgia and to the fact that Georgia has become a member of the Energy Community we decided to continue to participate in the development of this country’s power engineering system,” specified Pavel Váňa.

Purchase at auction

Since 2011 the distribution company Kakheti Energy Distribution (KED) had been insolvent and during this summer its liquidator put its assets up for auction in accordance with the Georgian law. The first auction was not successful, but in the second run ENERGO-PRO Georgia purchased KED at 22 million Georgian Lari (approximately CZK 200 million). This price covered also the fleet of vehicles, which was sold separately in the second auction.

The previous owner of KED was the Lithuanian concern Achemos Grupe. The majority of the sum that the liquidator gained through the auction will cover the existing debts (21 million Lari).

“From our point of view it is important that we only purchased the assets, not obligations. We consistently stick to our considerate approach to acquisitions,” said Pavel Váňa.

Major transformation

Until now, KED had a problem with great losses throughout the distribution network – almost twenty percent. The new owner wants to change this. “The conditions in the region are complicated, but it is our responsibility to improve them and we will start doing so right away,” said the General Manager of ENERGO-PRO Georgia Mikheil Botsvadze.

Botsvadze points out that ENERGO-PRO has an extensive experience with modernisation and maintenance of its assets in Georgia, where it continuously revitalizes its networks. “We are planning major investments in the KED distribution network infrastructure to improve the quality of delivery, to cut costs, and to transform the entire distribution company into a respected supplier of high quality services,” adds the general manager of ENERGO-PRO Georgia.

Georgia – a traditional market

Besides Bulgaria and Turkey, Georgia is one of the key markets for ENERGO-PRO as the traditional operator of hydroelectric installations. And Georgia is where the group focuses on delivering electricity directly to end customers.

Aside of the power stations, ENERGO-PRO purchased two distribution companies in Georgia. That was ten years ago and since then the ongoing modernisation of the distribution network yielded profits for two other Czech companies that acquired approximately 80 % of the contracts worth hundreds of millions CZK.

In 2012, ENERGO-PRO used its experiences from the Georgian market in entering the power distribution market in Bulgaria.

ENERGO-PRO has mandated Citi and J.P. Morgan to explore financing opportunities in the international markets


ENERGO-PRO a.s. has mandated Citi and J.P. Morgan to explore financing opportunities in the international debt capital markets. The proceeds from any such financing are expected to be used for general corporate purposes as well as partial refinancing of existing debt.

*****

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

The information contained in this communication is not an offer of securities for sale, or a solicitation of an offer to purchase securities, in the United States or any other jurisdiction where to do so would be unlawful. ENERGO-PRO a.s. has not registered, and does not intend to register, any portion of any securities to which this communication relates in any of these jurisdictions and does not intend to conduct a public offering of securities in any of these jurisdictions.

This communication is not an offer of securities for sale in the United States. Any securities to which this communication relates have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws, or with any securities regulatory authority, of any state of the United States or other jurisdiction of the United States , and the securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state or local securities laws. There will be no public offer of securities in the United States. This communication does not constitute an offer of the securities to the public in the United Kingdom. This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom; or (ii) persons who are investment professionals within the meaning Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order; and (iv) any other persons to whom it may otherwise lawfully be communicated (all such persons in (i) to (iv) above together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.

In any EEA Member State that has implemented the Prospectus Directive, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. The "Prospectus Directive" means Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to the extent implemented in that Member State), and includes any relevant implementing measures in that Member State.

ENERGO-PRO to Deliver Turbines to India. They Are More Powerful than the Indians Expected.


The multinational ENERGO-PRO group will be delivering two turbines for the hydroelectric plant in Rongnich in northeast India. Their power is significantly higher than the customer expected. The installed power of each of the two Pelton turbines will be 55 megawatt although according to a previous estimate it was supposed to be 48 MW.

The turbines are made by the Slovenian company Litostroj Power, which is part of the Prague-based ENERGO-PRO group. “It will be possible to achieve higher power because we have presented to the client a solution different from those suggested by consultants and competitors, especially by the German company Voith,” says Litostroj’s Business Manager, Jiří Kaňák. The investor of the new power plant in Rongnich is a large Indian private group, SARDA, which has so far focused especially on extractive and iron and steel industry.

A scale model of the Pelton turbine for the Indian power plant was tested in July by the hydraulic laboratory of ČKD Blansko Engineering, which has been the industrial mainstay of ENEREGO-PRO, along with Litostroj, since 2014. “The cooperation between the Slovenian water turbines manufacturers and the engineers in Blansko has repeatedly proved effective. That is also true for testing turbine models in their unique hydraulic laboratory,” says ENERGO-PRO’s Executive Manager, Pavel Váňa.

The total value of the contract for the Rongnich hydroelectric plant is more than CZK 130 million. The tests in Blansko were also attended by the Indian customer’s representatives.

A more effective solution Litostroj Power and ČKD Blansko Engineering presented the Indian client with a solution containing a smaller diameter impeller – 2,22m instead of 2.70m – but with five nozzles instead of four. (Water enters the Pelton turbine impeller through the nozzles. In the circular nozzle, the fall of the water is transformed into kinetic energy.)

The new solution by the ENERGO-PRO companies also makes it possible to reduce the price of material and decrease the size of the power plant, so the total building costs will also be lower. Thanks to a new hydraulic solution it was possible to design a turbine with higher rated speed, which enabled the installation of smaller and, as a result, cheaper generators. “What also helped us convince the new client was the high flexibility of Litostroj, which accepted very tight deadlines,” explains Jiří Kaňák.

The impellers will be made from a single forged piece on a new five-axis machining tool from the Czech manufacturer, TOS Kuřim.

Power generation to start next year The new turbines will begin to generate electric power next June. According to the Indian client’s expectation, their lifespan will reach at least 35 years.

The SARDA investment group is building the flow hydroelectric plant in Rongnich on the river of the same name in the north-eastern Indian state of Sikkim. The ENERGO-PRO companies have already gained experience with the Indian market before. For example, the hydraulic laboratory in Blansko tested a model of an irrigation pump for the Indian pump station in Gangaram.

Blansko Laboratory The newest hydraulic laboratory in Blansko was put into operation at the end of 2011. Before starting to produce a water turbine, pump turbines or pumps, it is possible to test new hydraulic solutions on their physical models in the laboratory. Laboratory tests are also used for power engineering technologies as well as for agriculture even outside the Czech Republic. The laboratory has performed tests of Francis turbine models for the hydroelectric plant Toro 3 in Costa Rica or of a Kaplan turbine model for Khoda Afarin hydroelectric plant in Iran.

Other projects have concerned hydroelectric machines in India, Sweden, Finland, Norway, Slovenia, Costa Rica and other countries.

ENERGO-PRO starts trading bonds at Bulgarian stock exchange in Sofia today


The trading of bonds issued by ENERGO-PRO Varna at the Bulgarian stock exchange in Sofia starts today. The bonds, authorized by the stock market chamber 28 April 2017, are septennial with a 3.50 % p.a. coupon and were issued last November in the total value of EUR 130 million. The aim of this stock emission by one of the three Bulgarian power network operators is to support investments in Bulgarian energy and the development of capital market in Bulgaria.

The bonds were placed among institutional investors from Bulgaria, Austria, Central Europe, and south-eastern Europe. “The debut issue of our own bonds was an important step for us. It is historically the largest corporate stock emission placed on the Bulgarian market,” explained Pavel Váňa, executive director of ENERGO-PRO Group. Váňa is positive that the interest of domestic and foreign investors in the issued bonds confirms their trust in the distribution company as well as the growing stability of the regulatory environment in Bulgaria. “The introduction of our bonds on the stock exchange in Sofia today will support the development of the capital market, and the investors will surely appreciate the increased liquidity,” added Pavel Váňa.

ENERGO-PRO Varna is a daughter company of multinational ENERO-PRO Group based in Prague, a leading operator of hydro power stations and producer of technologies for hydroelectric facilities. The funds received upon the issue of the bonds will be used to finance a capital investment programme in distribution networks between the years 2017 and 2023. This investment programme covers the acquisition of existing power infrastructure, its reconstruction, and new investments into the development. Part of the funds can be invested jointly– depending on the overall result of the emission – into energy assets in Bulgaria, Georgia, Turkey, and Romania.

ENERGO-PRO Varna distributes power in north-eastern Bulgaria where it is the sole holder of an appropriate licence, and supplies electricity to over 1.2 million customers including households and businesses.

ENERGO-PRO will finish building the largest private dam with a hydroelectric power plant in Turkey


Supranational group ENERGO-PRO with its registered seat in Prague has taken charge of a project the aim of which is to build hydroelectric power plant and dam Alpaslan 2 in Turkey. It is the largest privately owned hydroelectric power plant in Turkey from the point of view of its water reservoir size and the ninth largest dam in Turkey in general. The first eight largest power plants are owned by the government of Turkey.

The hydroelectric power plant Alpaslan 2 project is scheduled for the installed capacity of 280 MW and the power production of 860 GWh per year. “It will be our largest power plant so far”, Pavel Váňa, CEO of the ENERGO-PRO Group, said. Apart from Turkey, ENERGO-PRO also operates hydroelectric stations in Bulgaria, Georgia and in the Czech Republic.

The ENERGO-PRO Group, which has Czech roots, bought the Turkish Alpaslan 2 project from Turkish and German owners – and gained control over 100 per cent of shares in the project company Murat Nehri, which was under property control of Enerjisa Enerji , joint venture of the Turkish Sabanci Group and the German energy company E.ON. “We completed the transaction at the end of April; and we expect the project to be put into operation within the period of three years”, Pavel Váňa said.

Licence till 2059

The previous owners invested about 250 million dollars in realizing the project; however, the ENERGO-PRO Group bought it for a significantly lower price. The construction was suspended more than a year ago and it took nearly one year to negotiate its sale. The new dam and electric power plant will be placed on the river Murat in the Mus province, in south-eastern Turkey. Together with the project acquisition, the ENERGO-PRO Group also obtained a licence to operate the Alpaslan 2 power plant till 2059. The guaranteed rate shall reach 73 USD/MWh in the first 10 years.

Currently, the hydroelectric dam Alpaslan 2 is nearly half-finished, it is necessary to finish the construction of the embankment dam. ENERGO-PRO shall use a new dam building technology, clay sealing of a fill dam shall be replaced with asphalt concrete core. The aim is to lower the costs as well as to enable the hydroelectric dam to be put into operation faster. Completion of the construction related costs shall be 240 million dollars.

Great demand in Turkey

The power industry in Turkey is now experiencing the period of a boom of new sources, which shall satisfy the growing demand for electric power with respect to the increasing needs of the local economy. President Recep Tayyip Erdogan said last year that Turkey needed investments reaching to USD 110 billion in energy industry projects in order to reach the goal to be ranked among the top ten largest economies in the world by 2023. Turkey also plans to reduce its dependence on energy exports from abroad significantly.

Turkish Minister of Energy and Natural Resources Berat Albayrak said in April this year that Turkey ranks among the largest consumers of energy among the Organisation for Economic Co-operation and Development (OECD) member countries; and also with respect to the aforementioned, the role of Turkey will be, according to the Minister, crucial taking the changing trends of the global energy sector into account. Renewable sources, including hydroelectric power plants, occupy important places in the energy mix of the country.

Turbines from ENERGO-PRO conquer Europe, Asia, and head to America


The engineering section of ENERGO-PRO Group is winning new contracts all over the globe – East to West, and North to South.                                                                                                    

Sweden, India, South Korea – these are just some of the countries where Litostroj Power, a leading manufacturer of hydroelectric engineering systems, has made new turbine delivery contracts. Litostroj is a part of ENERGO-PRO, an international power engineering group based in Prague. The new contracts will be delivered in collaboration with another company from the same group – Czech corporation ČKD Blansko Engineering.

Besides the traditional European markets, and after Iran and Philippines, Litostroj Power has extended its contract portfolio with new countries where water is a key power source. The company is preparing just another contract in Canada, and very promising contract negotiations are under way in the USA.

Since 2014, Litostroj Power and ČKD Blansko Engineering have been the main industrial pillars in ENERGO-PRO, a leading international operator of hydroelectric power facilities. “The decision to strengthen our industrial activities was a crucial milestone in the development of our group. And the success that both companies are making, demonstrates that this was the right way to go,” says Pavel Váňa, Executive Director of ENERGO-PRO.

A New Design for India

In February 2017 Litostroj Power signed a contract for two Pelton turbines to India at more than 130 million CZK. Each turbine has an installed capacity of 48 MW. The investor is a large Indian private group SARDA, operating predominantly in mining and metallurgy. Their newly developed Rognichu powerplant is located on the Rognichu river in East Sikkim, district of Sikkim state in the east of India.

“Litostroj designers teamed up with their group colleagues from Blansko to offer the client a solution that differed from the recommendations of other consultants and competitors, namely the German corporation Voith,” said Jiří Kaňák, the Business Director of Litostroj. Instead four discharge nozzles, Litostroj engineers designed a five-nozzle system with half-a-metre smaller runner diameter than the originally proposed (2.2 instead of 2.7 m). This reflected in the reduced price of materials as well as in a higher speed (smaller and cheaper generator) plus smaller powerhouse, enabling for generally lower building cost for the client.

The runners will be turned from a single forged piece on a newly installed five-axis machine tool supplied by a traditional Czech manufacturer TOS Kuřim. The hydraulic properties of the designed runner profile will be tested at ČKD Blansko Engineering laboratories under the supervision of the client. “We won this new client thanks to the high flexibility of Litostroj that was able to accept very short delivery deadlines,” added Jiří Kaňák. The client’s expectation also played an important role – they hope that with the Litostroj solution they will be able to significantly increase their turbines’ capacity.

A Historical Breakthrough in Korea

Another new contract is a delivery of compact direct current Kaplan-type turbine, so-called Bulb, to South Korea. For Litostroj it will be historically the first contract of this type.

The turbine with a 3.5 diameter runner will transform the energy of water falling down from approximately nine metres with a discharge of over 60 cubic metres per second. The turbine, including generator and all systems, will be assembled into three main parts at the Litostroj factory in Ljubljana, then shipped to Korea, and installed into the prepared construction. “This will save us the lengthy and costly assembly on the site,” explains business director Jiří Kaňák. In this case the end customer is a Korean state enterprise K-Water. The value of the contract is approximately 70 million CZK.

A Swedish Victory in a Tough Competition

An important and interesting new contract is also the renovation of two vertical Kaplan turbines, each of 24 WM capacity, at Morsil hydroelectric station in the central-western lake district of Sweden, some 600 km from Stockholm. The value of the contract exceeds 100 million CZK. Litostroj Power has won a multiple-round tender over the world’s leading hydroelectric turbine makers.

Litostroj will make brand new Kaplan-type runners of 4.7 m in diameter, weighing over 30 tons. Before that, a new hydraulic profile for their blades will be developed in the group’s laboratory at ČKD Blansko Engineering. With the presence of the client – the Scandinavian power holding Fortum – the model will be tested with different versions of changes in the construction part of the runout from the turbine, new distribution blades, etc.

The actual precision turning of the new turbine’s part will start after the client’s final decision on which of the versions is the best (each of the versions can impact the efficiency with +- 0.5 %). And why did Fortum commission Litostroj to modernise its power station? “The decisive factors included our flexibility in research and development, the high efficiency of the new runner, our watchmaker-precision approach to engineering, as well as an extremely high performance in the dismantling and installation of the turbine, which will shorten the necessary downtime of the power station to an absolute minimum,” says Jiří Kaňák.

Reconstruction at Dlouhé stráně will be performed by ČKD Blansko Engineering


ČKD Blansko Engineering secured a major reconstruction project at Dlouhé stráně – the most powerful Czech pumped-storage hydroelectric station. The company from Blansko became the general contractor to reconstruct the TG2 machine unit, with the production of a new turbine runner as the key part of the project. ČKD Blansko Engineering won a tender called by the operator of the Dlouhé stráně facility – ČEZ Corporation. The value of the project is CZK 145 million.

Two companies from ENERGO-PRO, a Prague-based multinational group, will participate in this project – the already mentioned ČKD Blansko Engineering joined by Litostroj Power, a manufacturer of hydroelectric technologies from Slovenia. “We already reconstructed the TG1 unit at Dlouhé stráně some years ago. Now we succeeded again in placing a winning bid that combined the requested technology and a competitive price. Our newly developed turbine runner profile is a world-class product for both pumped and turbine facilities,” said Petr Tesař, chair of board at ČKD Blansko Engineering.

Scope of the project

Besides the replacement of the existing seven-paddle runner wheel (with an initial diameter of 4540 mm) and the existing solid labyrinths the project will also include a complete reconstruction of the guide buckets and their bearing, reconstruction of the bucket wheels, replacement of the hi-strength screws and of the axial plug on the turbine shaft. Experts from ČKD Blansko Engineering will carry out a brand new design for the hydraulics with model gauging in their own hydraulic laboratory, deliver technical documentation as well as all the assembly and installation works followed by guarantee measurements and launching of the unit. The new runner wheel is planned to be produced by Litostroj Power. Other parts for the TG2 will be supplied by subcontractors from the Czech Republic. The replacement of the TG2 runner, including the general reconstruction of the key parts of the distribution mechanism, will take place between May and September 2018. “There will be quite a short time to perform the actual replacement, but our experience with the previous TG1 reconstruction shows that we are fully capable of achieving such a challenging task,” stated Petr Tesař.  

The record-breaking Dlouhé stráně power station

The pumped-storage hydro power station holds three records – it functions with two of the Europe’s largest reverse turbines with an output of 325 MW; this hydroelectric station has an installed capacity of 650 MW – the largest in the Czech Republic; and finally, it features the highest gradient of all hydroelectric schemes in the country – at stunning 510.7 m. The Dlouhé stráně power station is one of the country’s greatest tourist attractions – with over 80 thousand visitors coming every year. The elevated reservoir is located at an altitude of 1350 metres above sea level, and it is just a stone’s throw away from Praděd, the highest peak of the Jeseníky range, and is known there as the “magic eye”. It was voted the greatest technical wonder of the Czech Republic and of the Olomouc region several times. Since 2010 the elevated reservoir can be accessed by a cable car with six-seat gondolas from the nearby Kouty ski resort. The elevated reservoir is located on the top of the Dlouhé Stráně Mountain, and the lower reservoir lies on the Divoká Desná River. The actual power station with two Francis turbines is located inside an underground cavern to mitigate any environmental and landscape impacts. Two penstock shafts connect the cavern with the elevated reservoir, and two tunnels run down to the lower basin.

History of the power station

In 1978 the former Czech Energy Company started building the power station in the Mravenečník massif, but the project changed several times during the construction. In the 1980’s the works stopped due to lack of foreign currency available to purchase the technology from the West. The final verdict to complete the project was made in early 1989. The power station started generating in 1996. The “father” of this power station is Miroslav Kopřiva, who worked on the project preparation at the Czech Energy Company and later became the head engineer and director of constructions. “Mankind needs the energy from hydroelectric stations. This will always remain one of the purest energies available,” said Kopřiva in an interview with iDnes news web after the pumped-storage station was voted the greatest wonder of the Czech Republic in 2005. The turbines are currently switching between the pump and turbine regimes several times each day; since the end of the past decade the importance of this power station as a “stabilizer” of the transmission grid has been increasing due to the ascent of renewable power resources that depend on weather.

Previous reconstructions

The ČKD Blansko Engineering already performed a general reconstruction and modernisation of TG1 unit at the Dlouhé stráně power station. The key part of this project, completed in August 2012, was a brand new hydraulic solution for the runner wheel, which now allows the TG1 unit perform significantly better at its operation. These operating parameters were previously tested by ČKD Blansko Engineering in their unique hydraulic laboratory.

Reorganization at JSC ENERGO-PRO Georgia has been completed


On December 23rd reorganization at JSC ENERGO-PRO Georgia has been completed successfully, as a result of which legal entity – Joint Stock Company ENERGO-PRO Georgia Generation has been separated uniting company generation objects, while JSC ENERGO-PRO Georgia continues business with the distribution license, owns corresponding distribution assets, exploitation and electricity distribution.

On December 23rd reorganization at JSC ENERGO-PRO Georgia has been completed successfully, as a result of which legal entity – Joint Stock Company ENERGO-PRO Georgia Generation has been separated uniting company generation objects, while JSC ENERGO-PRO Georgia continues business with the distribution license, owns corresponding distribution assets, exploitation and electricity distribution.

Major factor for the reorganization are future legislative reforms, implementation of which is caused by the joining of Georgia to the energy community. In particular, 2009/72/EC directive was approved by European Parliament and European Council for the purpose of the liberalization of energy markets; the directive defines electricity generation, transmission, distribution, supply common rules and corresponding division of the license activities.

JSC ENERGO-PRO Georgia is a daughter company of the Czech ENERGO-PRO Group, which has the experience of the energy business regulated by the alike legislation in the member states of the European Union. Accordingly the Group applied the experience and completed first phase of reorganization successfully. As for the upcoming changes ENERGO-PRO Group welcomes closing of Georgian legislation to European regulations, market liberalization, creation of competitive environment, approaching the customer relations service quality to the European standard.

Worth mentioning is that, despite reorganization, company will maintain corresponding human and technical resources, which will foster efficient business conduct of the company.

ENERGO-PRO issues bonds with yield of 3.50 % p.a. for EUR 130 million


ENERGO-PRO Varna placed an issue of seven-year bonds with yield of 3.50 % p.a. on the Bulgarian market in the total volume of EUR 130 million. This issue of securities by one of the three Bulgarian power distribution network operators aims at boosting investments in the Bulgarian energy industry.

ENERGO-PRO Varna placed an issue of seven-year bonds with yield of 3.50 % p.a. on the Bulgarian market in the total volume of EUR 130 million. This issue of securities by one of the three Bulgarian power distribution network operators aims at boosting investments in the Bulgarian energy industry, as well as development of the Bulgarian capital market.

Balkan Advisory Company IP AD was the lead manager of the issue. The bonds were placed among institutional investors from Bulgaria, Austria, Central Europe and Southeast Europe. The Black Sea Trade and Development Bank (BSTDB) also invested EUR 40 million in the bonds issued by Energo-Pro Varna; BSTDB thus acts, for the first time, as an “anchor investor” in the early stage of a similar issue. ENERGO-PRO Varna is a subsidiary of ENERGO-PRO Group, a multinational group with its registered office in Prague, which is a leading hydro-electric power plant operator and hydro-electric power plant equipment manufacturer.

Capital Market Development
“The debut bond issue is an important step for use. It is historically the largest corporate bond issue placed on the Bulgarian market,” said Pavel Váňa, Executive Director of ENERGO-PRO Group. According to Váňa, interest by both domestic and foreign investors in the bond issue attests to the confidence in the distribution company and growing stability of the regulatory environment in Bulgaria. “Subsequent placement of the bonds on the Sofia Stock Exchange will boost capital market development and the investors will surely appreciate increased liquidity,” said Pavel Váňa.

Energy Efficiency Boost
Ugur Delikanli, President of BSTDB, pointed out that the bond issue will contribute to improving the energy efficiency in Bulgaria. “We are glad that by participating in this bond issue we support the investment programme of ENERGO-PRO Varna being the leading player on the Bulgarian energy market and an important investor in other countries of the Black Sea region,” said Ugur Delikanli. BSTDB is an international financial institution which supports economic development and regional cooperation. BSTDB has its headquarters in Thessaloniki, Greece.

ENERGO-PRO Varna will use the funds gained by the bond issue to finance capital investment programme in the area of distribution network development in 2016-2023. This investment programme includes acquisition, reconstruction and new investments in the development of the existing energy infrastructure. The company may invest part of the funds – depending on the total outcome of the issue – in energy assets in Bulgaria, Georgia, Turkey and Romania.

ENERGO-PRO Varna is engaged in power distribution in north-eastern Bulgaria, where it is the sole license holder, as well as in selling power to more than 1.2 million customers, including households and companies.

Slovenian and Czech supply of water turbines to Iran


The project of the new Khoda Afarin hydropower plant in Iran has opened the gates to Persia to Czech and Slovenian engineers as well. The multinational company ENERGO-PRO, with its headquarters in Prague, has acquired a contract to supply two Kaplan turbines worth almost EUR 15 million.

The project of the new Khoda Afarin hydropower plant in Iran has opened the gates to Persia to Czech and Slovenian engineers as well. The multinational company ENERGO-PRO, with its headquarters in Prague, has acquired a contract to supply two Kaplan turbines worth almost EUR 15 million. The contract has been concluded between Slovenian company Litostroj Power, a member of the ENERGO-PRO group and a leading manufacturer of water turbines, and the giant Iranian industrial and energy company FARAB. 

“Cooperation with the energy company FARAB is very important for us. The water energy sector is one of the strategic fields in Iran and we are expecting further cooperation on other projects in the future,” Pavel Váňa, ENERGO-PRO Executive Director, commented on this transaction.
In mid-April, a meeting was held between FARAB representatives and the Deputy Minister of Foreign Affairs, Martin Tlapa, in Teheran.  He was there on a working visit and was accompanied by 27 businessmen from the area of the mining industry, mining technology and related energy sector. “This water turbines supply is the biggest contract for Czech companies after the lifting of sanctions in Iran. After the Teheran meeting, I can confirm Iranian interest in further cooperation in the area of hydro energy,” Martin Tlapa commented on the agreement. 

The complete hydraulic design and model tests of the turbines have already been worked out by ČKD Blansko Engineering - another member of the ENERGO-PRO Group. The project of the Khoda Afarin impoundment hydropower plant is one of the first projects in Iran to involve Czech companies after the lifting of international sanctions against the Islamic Republic of Iran this year. The companies Litostroj Power and ČKD Blansko Engineering form the industrial branch of the ENERGO-PRO group, one of the leading international operators of hydropower plants, and are following and developing the industrial tradition in Central Europe.

The Iranian contract for Litostroj Power includes construction works, manufacture of the water turbines, their installation and putting them into operation. Each of the turbines will have an installed capacity of 51 MW. Iranian company FARAB, which among its other activities is a significant operator of hydropower plants, is currently building a new plant on the Aras River on the Azerbaijani-Iranian border. The construction began in 2010 and is expected to be completed in 2018. This means a 2-year contract for Litostroj.
 
The Khoda Afarin hydropower plant is situated about one kilometre from the world-famous bridges known under the same name. These ancient bridges, built over the Aras River in the 11th – 13th centuries, connect Iran with the territory of Nagorno-Karabakh, which is de iure a part of Azerbaijan. 

After completing the design documentation, Litostroj Power will manufacture turbines with runners weighing 50 tons and with a diameter of 4.5 metres. The company is also preparing the production of spiral chasing of 190 tons and with dimensions of 20-20-10 metres. Litostroj has also acquired an option for the production of two spherical valves of a diameter of over 6 metres.

ENERGO-PRO is upgrading the power plant in Bulgaria


Engineers from the Czech city of Blansko and turbines manufactures from Slovenian Litostroj are cooperating together on the Koprinka hydro power plant in Bulgaria. It is a project that is being completely realized within the ENERGO-PRO group. 

Engineers from the Czech city of Blansko and turbines manufactures from Slovenian Litostroj are cooperating together on the Koprinka hydro power plant in Bulgaria. It is a project that is being completely realized within the ENERGO-PRO group. The end customer is Energo-Pro Bulgaria, the hydraulic design is being processed by ČKD Blansko Engineering and Litostroj will manufacture the new turbine. 

The contract between the above-mentioned companies was concluded in January this year. The small Koprinka hydropower plant is equipped with a vertical Kaplan turbine. The new runner will have 6 runner blades with a diameter of 2150 mm. After the reconstruction the maximum output will reach 9 MW.

Besides the new turbine (including the hydraulic design), the supply of a new DN300 valve, a new hydraulic, lubrication and cooling system, the bearings of the generator, the upper and the lower supporting structure and brakes (the spiral and discharge casing remains original) is also part of the modernization. The auxiliary operations and repairs will be carried out by local Bulgarian companies. 

Dismantling works should start in September 2016, refitting in December 2016 and the final putting into operation is scheduled for mid-March 2017.

Modernization of the Polish pumped-storage power plant is being designed in Czech Rep.


The Polish Porąbka‐Żar pumped-storage power plant is preparing a complex modernization according to a design being created in the Czech city Blansko. ČKD Blansko Engineering from the ENERGO-PRO group is working on the overall concept of modernization of the local pumping set.

The Polish Porąbka‐Żar pumped-storage power plant is preparing a complex modernization according to a design being created in the Czech city Blansko. ČKD Blansko Engineering from the ENERGO-PRO group is working on the overall concept of modernization of the local pumping set. The engineers from Blansko have already completed part of the necessary calculations and analyses. The contract for ČKD Blansko Engineering was concluded at the end of the year 2015.

Four pumping sets with reverse Francis turbines with a unit output of 125 MW have been working in the Porąbka‐Żar power plant for almost 40 years.

ČKD Blansko Engineering has already completed the first phase of the works. The first phase consisted of collecting the output data by measurement of the efficiency and measurement of the dynamic properties taken on one of the sets, of the performance of non-destructive testing in the agreed scope, and of scanning the hydraulic profile of the current runner.

The second phase is now in process – stress calculations of selected parts of the set, analyses of the current construction and calculations of the operating life of the original runner. The third, final phase will follow – designing the complex modernization of the pumping set.

After the completion of the contract, the Polish customer will be provided with detailed information on the current state of the set and with an expert technical and economic study on the design of its modernization.

Runners from ENERGO-PRO are already in operation in Peru


The new La Virgen hydropower plant in Peru can boast of three runners from the Czech Republic, more specifically with Pelton turbine runners (3x33 MW). They were supplied in the first quarter of the year by ČKD Blansko Engineering from the ENERGO-PRO group.

The new La Virgen hydropower plant in Peru can boast of three runners from the Czech Republic, more specifically with Pelton turbine runners (3x33 MW). They were supplied in the first quarter of the year by ČKD Blansko Engineering from the ENERGO-PRO group. 

The contract was signed in 2014. Apart from the supply of the runners with a pitch diameter of 1830 mm, it included drafting of a new hydraulic design, and construction and design documentation. According to the customer’s request, the runners were coated with HVOF spray, which will protect them against abrasion caused by sand in the water and will thus ensure a longer operating life.

During January and February, a supervisor from ČKD Blansko Engineering carried out a successful final inspection of the runners. The results from the check of the coating’s roughness and thickness were satisfactory. After the successful inspection, the runners were sent to the customer.

Our projects

Sandanska Bistritsa Cascade, Bulgaria
The cascade of hydropower plants is located by the spa town of Sandanski at the foot of the Pirin Mountains in the southeast of Bulgaria. The cascade consists of three high-pressure hydropower plants with accumulative function with a total installed capacity of 56.40 MW.

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Shaori-Tkibuli Cascade, Georgia
Shaori and Tkibuli, the two lakes that provide water for the Shaori-Tkibuli Cascade of hydropower plants, are located in the heart of unspoiled mountain nature. Lake Shaori is the largest natural reservoir in the Racha-Lechkhumi and Svaneti Region.

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Ladjanuri Hydropower Plant, Georgia
The Ladjanuri Hydropower Plant in the west of Georgia is built with respect to its natural surroundings in the rock that existed on the site of the hydropower plant before its construction. The machinery hall is located underground, in a cavernous limestone space.

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The Reşadiye Cascade, Turkey
This three-step cascade is located on the Kelkit River. One of the three hydropower plants, the furthest one upstream, is located in the vicinity of Sivas City. The other two are near the town of Tokat.

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Sandanska Bistritsa Cascade, Bulgaria


The cascade of hydropower plants is located by the spa town of Sandanski at the foot of the Pirin Mountains in the southeast of Bulgaria. The cascade consists of three high-pressure hydropower plants with accumulative function with a total installed capacity of 56.40 MW. A natural waterfall is situated in the vicinity of the Popina Laka Hydropower Plant.

The hydropower plants process mountain water. There is a large number of headwater channels and reservoirs, which enable daily water accumulation and operation in a peak load regime. The cascade was built between 1969 – 1971, and was acquired by ENERGO-PRO in 2002. In the years 2004 – 2006, the cascade underwent complete reconstruction, which was carried out with the participation of Czech companies.

Shaori-Tkibuli Cascade, Georgia


Shaori and Tkibuli, the two lakes that provide water for the Shaori-Tkibuli Cascade of hydropower plants, are located in the heart of unspoiled mountain nature.

Lake Shaori is the largest natural reservoir in the Racha-Lechkhumi and Svaneti Region. It is located at 1,124.74 metres above sea level near the village of Khorga. The length of the lake is 7.10 km; the distance between its shores is 2.70 km at its widest part, and the depth of the lake is 14.50 m. The water area of the lake is 9.20 sq.km.

Both lakes are set in beautiful landscape. They are surrounded by pine woods and alpine meadows that radiate in colour every season of the year. The pure water provides the opportunity to relax; it is an angler’s paradise.

The Shaori-Tkibuli Cascade consists of two hydropower plants with a total installed capacity of 120.32 MW. It has been operating since 1956. ENERGO-PRO acquired the cascade in 2007.

Ladjanuri Hydropower Plant, Georgia


The Ladjanuri Hydropower Plant in the west of Georgia is built with respect to its natural surroundings in the rock that existed on the site of the hydropower plant before its construction. The machinery hall is located underground, in a cavernous limestone space. The height of the building is 57 metres and the breadth 18 metres.

The hydropower plant has a total installed capacity of 113.70MW and is located on the watercourse created by the redirection of the Tskhenistkali River into the Ladjanuri River. It has been operating since 1960, and was acquired by ENERGO-PRO in 2007. It is located east of Tsageri.

Complete reconstruction of the gravity supply line that brings water from the Tskhenistkali River to the Ladjanuri Reservoir was carried out in 2012. The supply line tunnel is constructed as a circular reinforced concrete profile.

The Reşadiye Cascade, Turkey


This three-step cascade is located on the Kelkit River. One of the three hydropower plants, the furthest one upstream, is located in the vicinity of Sivas City. The other two are near the town of Tokat.

Water for the cascade is supplied from the Kilicka Reservoir. Its total installed capacity is 65.60 MW. The individual power plants were put into operation between 2009 – 2010, and the whole cascade was acquired by ENERGO-PRO in 2010.

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