The 6th edition of the "Ecologically Friendly" Contest - the title of the "Patron of the Polish Ecology" granted to Mr Jan Tokarz, President of the PSPP Company Management Board

On the 18th of January 2005, the 6th edition of the "Ecologically Friendly" Contest was held. The Contest was organised under the auspices of Mr Aleksander Kwaśniewski, President of the Republic of Poland. The title of the "Patron of the Polish Ecology" was granted to Mr Jan Tokarz, President of the PSPP Company Management Board. The reward was handed over to Mr Jan Tokarz during the Grand Gala in the Victoria Hotel in Warsaw by Ms. Jolanta Szymanek - Deresz, Chief of the Chancellery of the President of the Republic of Poland.

The ecological contest "Ecologically Friendly" has been extremely popular in Poland. It is thanks to this contest that cities, regions and companies that are fully involved in supporting the ecological actions and educational activities linked to the environmental protection have the opportunity to present the results of their actions and pro-ecological approach. Over the years of its presence on the Polish electric energy market, the PSPP Company has been trying to take an active part in investing into new renewable sources of energy, as well as in promoting the new renewable sources of energy. The PSPP Company's activity related to the environmental protection was appreciated many times by the award committee of the "Environmentally Friendly" Contest. In the years 2002 - 2003, the Company was granted the certificate "Ecologically Friendly Company". Last year, the PSPP Company was granted the title of the "Patron of the Polish Ecology", which proves appreciation for the Company's investments into environmental protection, construction of ecological power stations and promoting symbiosis between industry and ecology. Since its establishment until the present day, the Pumped Storage Power Plants Company has been proving that it is possible to produce electric energy without causing any negative impact on the environment.

ECOLOGY IN THE PSPP COMPANY

The main area of PSPP Company's activity is to provide system services. The other significant source of the Company's income is the production of green energy. As a company dealing with hydro-energy, the PSPP has an every-day direct contact with the environment - rivers, agriculture, exploitation of water reservoirs, landscapes, as well as with transport and tourism. The Company was highly evaluated in the subsequent editions of the ecological contest "Environmentally Friendly" for minimisation of environmental impact. Many pro-ecological activities undertaken by the PSPP Company include mainly those oriented at securing the Company's own installation against negative impact on the environment. Risks such as oil or grease leakage from the machines exploited were eliminated by the appropriate structure of these machines and the careful leakage purification. Each of the plants built on weirs has its own oiled sewage purification station and in the newer power stations the bio-degradable greases are used, which means that they do not cause water pollution when entering in contact with it. In the areas surrounding the PSPP Company's power plants, we create the best possible conditions for the environment, for instance by building the special water flows making it possible for fish to migrate. It is worth mentioning the rubber weir closing for the Żagań II power plant on the Bóbr River, being unique in Poland and in this part of Europe. The fact that the Company exploits various types of water reservoirs makes it possible to store water to be used in case of flood and other disasters. Noise is also effectively minimised. The level of noise in the modern machines installed as a result of modernisation works is also much lower than it used to be before. Also, the PSPP Company makes it possible to exploit the plants' surroundings for the purpose of tourism. It may be illustrated by the Solina Water Power Plant, located in the very heart of the Polish Bieszczady Mountains. The Zalew Soliński, the biggest artificial lake in Poland, works as a magnet attracting tourists. The dam in Solina owned by the PSPP Company is an installation having particular scenic and flood-control values. Also, the PSPP Company's reservoirs are used by urban regions. The example for this is the Czarniecki Reservoir on the Sola River that is used to provide the Katowice City with drinking water. The PSPP Company also takes part in maintaining the water levels in co-operation with the water management financed from the state budget. The Company contributes significantly to the exploitation and maintenance of the water levels in compliance with the proper technical standards. The Pumped Storage Power Plants Company also takes an active part in promoting knowledge on the renewable sources of energy by publishing an informational bulletin "Ecoenergy".

ENVIRONMENTALLY FRIENDLY INVESTMENTS

For many years now, the Pumped Storage Power Plants Company has been carrying out the programme for developing production capacity on the basis of the renewable sources of energy.
Over the years 1997 - 2003, the PSPP Company built or modernised ten new, small water power plants producing green energy. It increased the production capacity of the "green energy" for over 42 thousand MHh. In 2003, the modernisation of the Solina water power plant was finalised, as a result of which its installed power increased from 136 to 200 MW, which makes it possible to increase the production capacity by 106 thousand MWh yearly. It is an important installation that matches perfectly with the new trend in the European and world energy industry that consists in using the renewable energy sources and minimising the industry's impact on the environment. With its power of 200 MW, the Solina water power plant became the biggest and the most modern power plant built on a natural tributary in Poland.
The PSPP Company is also an active capital investor in building the new power of the flow water power plants. In 2004, the Krępna power plant, producing over 7 thousand MWh of green energy yearly, was put into operation. At present, the third power station in this cascade is being built - the Krapkowice power station. In 2005, the Rakowice water power plant is scheduled to be put into operation. It is located on the Bóbr River and has the power capacity of 1,9 MW that allows for a yearly production of up to 9 thousand MWh of the "green energy".
This year, the Pumped Storage Power Plants Company will mainly be proud of the finalised modernisation of the Dychów Water Power Plant, as a result of which the installed power will reach 90 MW and the capacity will reach the level of 93%. As a result of this modernisation, it is planned to increase the production capacity of the Dychów Water Power Plant to reach the level of 82 500 MWh of the "green energy" each year.
Independently of these activities, the PSPP Capital Group has undertaken intensive measures to realise the programme to reach the level of 350 MW of installed power in wind energy sector in 2007. On the 16th of December 2004, the Supervisory Board of the PSPP Company adopted the "Concept of the production sources development as an element of the strategy of the PSE S.A. (Polish Energy Networks)", which contains details concerning the programme for building eight wind parks all over the country in co-operation with national and foreign partners. These activities will make it possible to keep the share of the PSPP Capital Group in the green energy market in Poland on the level of 20% until the year 2010.
The example for an active presence of the PSPP Company on the wind energy market may be a newly established (the 9th of July 2003) company with the capital share of the PSPP Company - the Kamieńsk Wind Power Plant - having the power of 30 MW. Another wind farm is Wola Rafałowska, where the PSPP Company takes part in raising the capital of the Mega Company being the owner of this installation. Both power plants are scheduled to be put into operation this year. The PSPP Company is also in regular contacts oriented at initiating co-operation with the top foreign companies, such as GAMESA and EHN from Spain. In the years to come, within the framework of co-operation with these companies, the PSPP Company plans to build several wind farms located in various areas, having the power of 50 MW each. Also, the negotiations with an American company CANON are carried out, which may result in important projects in the area of wind energy production.
The Company is also involved in other activities oriented at processing energy on the basis of biomass and gas. The PSPP Company plans to develop projects based on biomass in co-operation with local governments partners oriented at developing the local thermal energy markets. In Elbląg, there is a bio-gas power plant owned by the Company that uses the urban waste and the garbage dump gas for producing electric and thermal energy.

WHAT TO DO TO BE ENVIRONMENTALLY FRIENDLY - RENEWABLE ENERGY ASSOCIATION

The Renewable Energy Association was established in 2001 with a goal to support the initiatives promoting the renewable energy sources, as well as to promote the development of the new multi-energy companies in Poland. The Renewable Energy Association gathers 12 top companies of the electric energy and fuel sectors. They include: The Pumped Storage Power Plants Company, The Polish Oil and Gas Mining Company, The Dychów Water Power Plants Complex Company, the Żarnowiec Water Power Plant. Since the 15th November 2002, Mr Jan Tokarz, President of the PSPP Company, performs the function of the President of the Association. The members of the Management Board are: Jan Tokarz - President of the Management Board, Zbigniew Zakrzewski - Deputy President of the Management Board, Lech Hryckiewicz - Deputy President of the Management Board.
Since its establishment, the Renewable Energy Association has been involved in promoting knowledge on the renewable sources of energy, including: biomass, windpower, water energy, sun and gas energy. The Association constitutes the platform for exchanging experiences and information between its various members. There are more and more companies applying to become members of the Association, which proves that the basic goals of its activity have met with a favourable response. The Renewable Energy Association is a member of the Polish Electric Energy Committee. Its role is appreciated not only in Poland, but also internationally. It provides promotional support for associate members, including the PSPP Company, to use the renewable energy sources to produce electric energy.
Therefore, both the Association's activity and the title "Patron of the Polish Ecology" granted to the President of the Management Board, Mr Jan Tokarz, may very well show what it means to be environmentally friendly.

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The Pumped Storage Power Plants Company (Elektrownie Szczytowo - Pompowe S.A.) - the Patron of the Polish Ecology - the award granted to the Company in the 5th edition of the "Environmentally Friendly" contest.

The PSPP Company was noticed and appreciated for the third time - in the 3rd, 4th and 5th editions of the "Environmentally Friendly" contest, organised under the auspices of Mr. Aleksander Kwaśniewski, President of the Republic of Poland. This time, the jury of the contest granted to the PSPP Company the title of the "Patron of the Polish Ecology".

On February 9, 2004 the Grand Gala of the companies honoured during the 5th edition of the "Environmentally Friendly" contest was held in the Teatr Polski (Polish Theatre) in Warsaw. The Pumped Storage Power Plants Company was among the companies awarded in the category of the "Patron of the Polish Ecology".

The "Environmentally Friendly" ecological contest has been extremely popular in Poland for years. It is thanks to this contest that cities, regions and companies that are fully involved in supporting the ecological actions and educational activities linked to the environmental protection have an opportunity to present the results of their actions and pro-ecological approach.

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The Company Elektrownie Szczytowo Pompowe S.A. (PSPP Company) received for the second time the title of the "Environmentally Friendly Company".

In February 2003, the Company Elektrownie Szczytowo - Pompowe S.A. (PSPP Company) for the second time received the title and the certificate for the "Environmentally Friendly Company" in the 4th edition of the contest "Environmentally Friendly", organised under the auspices of the President of the Republic of Poland, Mr Aleksander Kwaśniewski.

The certificates were presented in the Column Room of the Senate of the Republic of Poland. The Deputy Prime Minister, Minister of Infrastructure, Mr Marek Pol, presented the President of the Management Board of the ESP S.A., Mr Jan Tokarz, with the certificate.

Therefore the efforts of the Management Board investing and promoting the renewable energy sources were rewarded.

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The Eco-friendly Company" - the certificate goes to Pumped Storage Power Plants Co.

On 23 January, 2002, the seat of the Senate of the Republic of Poland was the venue for presenting the most deserving organisations and individuals with certificates, awards and honourable of the 3rd issue of the ecological contest: "The Environmentally Friendly". The contest was organised by The Centre for Promoting Non-Government Initiatives - the "Our Home" association. The award presenting ceremony was combined with "The Gala of the Honoured", whose achievements were displayed at a special exhibition.

The citizen's ecological awareness has grown considerably during the past years, therefore it was only natural to hold such a contest. The contest is in four different categories, namely:

- The Eco-Friendly Commune,
- The Eco-Friendly Company/Organisation,
- The Technology to recommend, and
- The Eco-Originator.

The Contest Organisers will shortly be introducing a next category, "The Eco-Friendly Product". This will be for businesses that promote Polish foodstuffs which : a) are made from domestic or local ingredients, b) are manufactured with ecologically friendly methods and technologies, and c) meet the highest health and quality standards..
For a good few years, the Contest has -enjoyed ever increasing popularity. It is also thanks to this Contest that all towns communes and companies that have that have the ecological activity and education close at heart win an opportunity to present their pro-ecological achievements and activities to larger audiences.
Yet, ecology is no longer left in the domain of the local authorities. S an issue of importance, it has also been recognised by the State an the central authorities. For this reason, the Contest was held under the auspices of Mr Aleksander KWASNIEWSKI, President of the Republic of Poland. What is more, the participants admitted to the Contest received their nominations at the Ministry of Environment.

In this year's issue of the Contest, one of the nominees was the PUMPED STORAGE POWER PLANTS Co., a member of the Polish Power Grid Capital Group Co..

The Certificate for "The Eco-Friendly Company" went to PSPP Co.. It was presented by Mr Longin PASTUSIAK, the Speaker of the Poland's Senate, and received by Mr Jan TOKARZ, Chairman of the PSPP' Board, who acted on behalf of both the Board and the company associates. Pumped Storage Power Plants Co. is involved in various programmes for development of the management of water reserves. The Company collaborates with the Ministry of Environment, Regional and Provincial Centre for Water supplies Management, The National Fund for Protection of Environment, as well as with numerous companies and businesses involved in water supply management, environmental protection and "clean" or" Eco-energy".
This not only facilitates the most effective management and exploitation of the country's water reserves, but it also creates prospects for the future to come.

In order to comply with the requirements for environment protection, as well as to facilitate fish migrations, PSPP Co. is having purpose-designed fish-passes installed in its currently overhauled and expanded Water Power Plant PRZYSIEKA, on the Nysa Łuzycka River. Apart from that, it has become common practice to use biodegradable lubricants which do not harm the environment. Another innovation which should not be passed over is the dam shutter at ZAGAN II power plant on the BOBR River. Made entirely of rubber, the device is unquestionably an absolute novelty in this part of Europe.

PSPP Co. is also planning its participation in the construction of new damming-up facilities which take advantage of the "difference-of-levels" water energy. The GORNA ODRA (the Upper Odra) CASCADE can be an example of such a facility. So can the new dam and the water power plant on the VISTULA River. The Company also embarks upon ventures in conversion and utilisation of gas and wind energy.

PSPP Co. is also active in popularising scientific knowledge, as well as in promoting renewable energy sources. For the last five years, the Company has been a regular participant in "ECOENERGIA" trade fair, which is co-organised by The Ministry of Environment. During the fourth event in the series, the Organisers highly commended the PSPP's display stand at the fair.

For every trade fair event, the Company issues its occasional magazine "EKOENERGIA" ("Eco-energy"), which is distributed among both the exhibitors and young visitors to the fair.