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PRESS RELEASE

05 September 2024

Standard & Poor's upgrades NEK credit rating outlook to positive

The international rating agency Standard & Poor's has upgraded their outlook on NEK from stable to positive and affirmed their 'BB' long-term issuer credit rating on the company The enhanced outlook means the company is managing its funds and borrowings in a reliable and balanced manner. The improved outlook represents another step forward after the agency upgraded NEK's rating from BB- to BB last year due to improved credit metrics.

S&P expects the company's profitability to improve and its leverage to decline after the retail market liberalisation in 2026, which in turn could lead to a credit rating upgrade.

"The increased outlook and the expectation of a credit rating upgrade by the leading international rating agency S&P is an important success for the Bulgarian energy sector. This is the result of the consistent work and strategic support of the state. I am confident that this success will contribute to the sustainability and development of our energy system," said Energy Minister Vladimir Malinov.

S&P views NEK as a subsidiary of strategic importance to BEH, given NEK's important role in Bulgaria's energy system as a producer of emission-free hydropower, a supplier of last resort and a public electricity supplier. The rating agency also takes into account the fact that NEK has managed to transform itself from a loss-making company in a certain past period to a company that contributes nearly 10% of BEH's gross profit.

PRESS RELEASE

31 July 2024

The renewed TURNU MĂGURELE–NIKOPOL HYDRAULIC STRUCTURES ASSEMBLY project has been proposed for the status of a cross-border renewable energy project with EU funding opportunities

The joint project of National Electricity Company EAD and the Romanian company Hydroelectrica for the construction of the Turnu Măgurele - Nikopol Hydraulic Structures Assembly (TMNHSA) has successfully passed the evaluation stage and has been included in the List of the European Union's cross-border renewable energy projects. The list is pending final approval and publication in the Official Journal of the European Union.

The project is one of three projects approved for the whole of Europe in 2024. Its inclusion in the list and the prospect of obtaining the status of a cross-border renewable energy project is a significant milestone in its development, opening up opportunities for project support through the Connecting Europe Facility.

Turnu Măgurele - Nikopol Hydraulic Structures Assembly project is an important cross-border initiative between Romania and Bulgaria aimed at the optimal use of the Danube's hydropower potential. The project provides for two run-of-river hydropower plants using state-of-the-art technology and a large-capacity storage reservoir.

The project focuses on environmental sustainability and renewable energy production while meeting the needs of the local population and industry. The implementation of this project will support the joint commitment of Bulgaria and Romania to accelerate the achievement of the EU's sustainable energy targets and promote regional cooperation, and should serve as a model for international cooperation in the field of sustainable infrastructure. Additional benefits of the project are road, rail and energy connectivity, improved navigability and flood prevention.

The project will apply to the European Climate, Infrastructure and Environment Executive Agency (CINEA) for funding for feasibility studies.

Additional Information

The Connecting Europe Facility (CEF) Cross-Border Renewable Energy Projects (CB RES) list in the field of energy was launched for the first time in August 2022 and already includes eight projects.

The implementation of the cross-border projects will contribute to achieving the ambitious renewable energy targets of the European Green Deal as well as the objectives of the REPowerEU plan.

Due to the official CB RES status, the eight projects are eligible for financial support for studies and works under the ICE Energy Programme. They also enjoy greater visibility, increased certainty for investors and stronger support from Member States. Some projects have already received funding in 2023 and 2024.

CB RES projects are defined by the Connecting Europe Facility Regulation and aim to promote cross-border cooperation between EU countries (and between EU and non-EU countries) in the planning, development and cost-effective operation of renewable energy sources. CB RES projects can facilitate the integration of RES through energy storage or hydrogen production facilities to contribute to the EU's long-term decarbonisation strategy. CB RES projects must be set up through a cooperation mechanism as defined in the text of the Renewable Energy Directive.

Kardzhali HPP celebrates 60 years since its commissioning

18 July 2024

The remarkable anniversary was celebrated in a close professional circle in the presence of veteran long-time employees of the plant. "The excellent condition of Kardzhali HPP is proof that good maintenance of the facilities is the most important part of their operation and therefore the NEK management is making systematic efforts to improve the expertise and professional qualifications of the managers and employees," emphasized NEK Executive Director Eng. Martin Georgiev. "With its more than 60 years of history, Kardzhali HPP is an excellent example of the consistency and professionalism of the Bulgarian power engineers to maintain the operational reliability of the plants at a high global level. The jubilee is an occasion of well-deserved pride for all former and current employees of Kardzhali HPP," he added.

Kardzhali hydropower plant is built on the downstream base of Kardzhali Dam. The plant is part of the first step of Arda Cascade incorporating two other hydropower plants - Ivailovgrad and Studen Kladenets. The cascade is located in the Eastern Rhodopes along the middle and lower reaches of the Arda river and plays a key role in renewable energy production. The plant has 4 hydro units with a total installed capacity of 122.4 MW in the generating mode.

In the period 2007-2010 Kardzhali HPP was rehabilitated, aa a result of which the total installed capacity was increased from 106.4 MW to 122.4 MW.

In its 60 years of operation, the plant has generated an impressive 6 743 551 814 kW/h of renewable energy.

An interesting and unique detail in the machine hall of Kardzhali HPP is the panel created by the artist Nikolay Tyurkedjiev in 1985. The figures in the panel symbolize energy, which is at the heart of any economy, and peace, which united create the rise. There is also much symbolism woven into the painting related to the energy of water.