OIL INDUSTRY

Since November 2011, the Head of Oil Industry and Petrochemistry department in ENA is Mr. Ivan Soucek, one of the best known experts in this field, a former president of Czech Refinery Company, the biggest refinery in the Czech Republic. Under his leadership, ENA has got the advantage of a detailed knowledge of a regional business in all the chain from oil production, transportation, processing and marketing of oil products including biofuels.

Consultation services include:

Strategic consultation and concept reports

Market studies and price development prognoses

Initial pre-investment assessment (scouting, pre-feasibility a feasibility studies)

GAS INDUSTRY

ENA is engaged in all fields of the energy industry; however, the gas business has a dominant position in the firm's activities. ENA cooperates with all gas companies in the Czech Republic and Slovakia.

The gas industry is the fastest growing energy industry in the region. Due to the extremely important position of the Czech and Slovak gas transmission systems as the main stream of Russian gas to Western European countries, the future prospects of the business are excellent. Despite these good prospects, there are many problems to solve. ENA prepared for the Czech Regulator a proposal of new legislation after gas market liberalization. The same project ENA carried out for the Slovak Regulator. Other tasks included the improvement of the domestic system of tariffs and tolls. ENA prepared several proposals of gas tariff system improvement, which were accepted and implemented by the Regulator. The growing importance of underground gas storage offers new interesting investment and trade opportunities.

In all these and many others areas, ENA offers its skills and expertise. Some of these areas are related to interdisciplinary problems, for instance coal bed methane production in the Czech Republic. A greater degree of utilisation of gas in electric power and district heating production brings the necessity to negotiate with utilities. ENA's good personal contacts in all energy industries may be of considerable assistance to their clients in preparing the best business strategy and solving the negotiating problems.

After gas market liberalization, ENA helps the biggest industrial gas consumers to optimize their gas sales contracts. ENA cooperates also with governmental institutions, mainly on strategically important topics relating to security of supply, as an input for the Czech energy policy.

ENA has got a good international reputation in gas business, see the list of main clients and list of presentations on energy conferences. ENA actively cooperates also with international institutions including international arbitration tribunals.

PRICE FORECASTS AND ANALYSES

Data on today's and future price trends are the necessary basis for all economic decisions, starting with the initial feasibility study to the risk analyses and investment evaluation. ENA is focusing mainly on problems related to pricing basic energy fuels, such as oil, gas, coal and their by-products, electricity and heat. These studies are offered with the focus on either individual types of fuel or combinations of alternatives, with their relationship and dependency.

The current price trends are analyzed on the basis of sources (domestic or import), international trends, costs, supply and demand, and other factors. For the individual fuel, the basic study structure includes:

• the position of the fuel in the international and domestic context of energy sources, timing, type of end use;

• the development of domestic demand and use and the alternate supply (local exploitation, import and potential alternatives or diversification);

• the cost of domestic production, transportation and transmission;

• the international price development, analyses of influencing factors;

• the domestic price development, its dependency on international price, inflation and currency exchange, state policy with regards to fuel and energy pricing, price differentiation in tariff systems.

This basic report structure could be modified to suit the client's needs.

Due to the fact that erratic fluctuations in fuel and energy prices occurs, providing information and continuing consultation are an essential part of ENA's service.

RENEWABLE ENERGY SOURCES

Construction of power-generating facilities utilising renewable energy sources (RES) has been developing fast in the Czech Republic, not only because of the ambitious RES utilisation targets, but above all because of the special support given to the purchase prices and green bonuses for renewable sources for power generating, the accessibility of investment support from EU funds for selected sources of heat and combined heat and power generation (CHP) based on RES, thanks to the improving efficiency and falling prices of technologies, and also thanks to the growing interest of investors and finance-providing banks at home and abroad.

The ENA Ltd company offers a wide range of services in the sphere of support of project preparation, implementation and operation of all types of RES projects based on the know-how in technology and technical solutions of RES projects, administrative and technical preparation of projects, technical and economic evaluation of projects, operation and technical supervision of projects during construction and certification of completed projects in the power generating, heating and gas industry. We offer these services to investors and developers but also to banks and other financial institutions.

Recently, as a result of the situation in the market, the interests of ENA’s clients have been focusing above all on photovoltaic projects from those in small units of kWp to those large in scores of MWp.  During 2010 alone the ENA company carried out energy audits, technical due-diligence assessments, technological supervision, financial analyses and further assessments of photovoltaic projects with the total output over 250 MWp.

However, the portfolio of renewable sources includes a comprehensive range of RES –  solar photovoltaic and photothermic, utilisation of wind energy, utilisation of hydro energy in small hydro power stations, utilisation of biogas and biomass, utilisation of geothermal energy and environment energy. In 2010, ENA company experts worked on technical due-diligence of several wind power stations and energy audits and reports on feasibility of projects utilising biogas. Because of the strong expert background and references in the gas industry, the ENA company deals also with legislation and technical and economic aspects pumping biogas into gas networks and the utilisation of biogas in innovative technologies - in fuel cells.

Consultation services offered in the sphere of support of RES utilisation include:

Strategic consultation, concept reports and initial pre-project assessment

Preliminary feasibility, technical-economic consultation with the aim of selection of the best location, selection of technological solutions, selection of suppliers of technologies and means of financing.

Processing of applications for network connection, processing of reports on feasibility of connections.

Technical dilligence projects on RES utilisation, in all stages of preparation and supervision.

Technical supervision of projects of RES utilisation; certification for financial institutions on finance drawing, certification of project completion and commissioning

Energy audits of RES utilisation in harmony with legislative requirements as set by the Public notice 213/2001 coll., in valid wording and certified by an authorised person.

Financial analyses of RES utilisation projects.

Applications for the support of projects of RES utilisation from EU funds in the framework of relevant operational programmes.

Market research in the sphere of projects and technologies of RES utilisation.

Publications and mentoring in RES utilisation.

Energy policy and legislation in the sphere of support of RES utilization.

RES in the framework of regional energy planning.

	Direct contact: ENA, s.r.o., Lublanská 48, 120 00 Praha 2 Ing. Jaroslav Jakubes, RES division director Tel.: +420 222 515 445, GSM: +420 725 309 810, e-mail: jakubes@ena.cz

ECONOMIC EVALUATION OF INVESTMENT

The price forecast and development of markets' bank rates, purchasing power parity and exchange ratio of currency, inflation and the capital market situation, are the initial basis for economic analyses. ENA is offering economic evaluation and comparison of investment alternatives using the internationally accepted methodology of the Discounted Cash Flow (DCF). Net present value, internal rate of return, payback period, minimal price of production, maximum price of fuel and other break-even points are used for evaluation. Sensitivity analysis is applied to reduce the risk following from uncertainty of input data in the long-term period.

Differences between the economies of Central and Eastern European countries and well developed countries may be one of the possible sources of misunderstanding between domestic and foreign partners during the negotiating and preliminary phases of investment. There are different tax rules and systems of state regulation, large discrepancy between purchasing power parity and exchange ratio of currency, discrepancies in price relations, and many other factors. ENA's knowledge of both domestic and foreign economic systems and methodologies can be of considerable assistance for efficient negotiating, highly professional investment assessment, and better understanding between partners.

With regard to growing attention to environmental protection, these aspects are discussed as well. Environmental fees and penalties according to domestic laws are included in economic evaluation. ENA offers environmental and economic evaluation of investments in a comprehensive and easily understandable form. ENA's studies can serve as a basis for further negotiating with both domestic and international financial institutions.

MARKETING STUDIES AND OTHER SERVICES

ENA's detailed knowledge of the Central European energy markets, technology and raw material suppliers is the basis for marketing activities. The establishment of new business contacts, in a time of frequent changes in organization and management and rapid development of markets, is difficult and risky. The well prepared marketing study, evaluating the current market situation and further development of demand and supply, can help ENA's clients to identify the risk and to reduce its level.

ENA can prepare proposals for business meetings and strategies, presentations of the companies and their offers, seminars or direct representation. Personal contacts and the professional reputation of the management of ENA will assure the best possible access in the Czech and Slovak business worlds.

ENA is offering its services in arranging advertising in the local technical press, recommending the most effective advertising approach, or other form of accelerating the success of the client in the marketplace.