Bals 1 PV Project Presentation

George Ciubotaru Phone: +40726359574 george.ciubotaru@electroalfa.ro

Paul Voicu Phone: +40744355200 paul.voicu@ibcoenerg.ro

Key investment highlights

Bals 1 project is part of solar PV Portfolio of projects located in Oltenia area, in Olt & Dolj counties: Among the best areas in terms of radiation in Romania The area is still not crowded and suitable for solar PV developments (the first projects to obtain the connection permit in the corresponding substations); In an area not influenced by wind parks, with a good stability of the grid.

Portfolio Area

Project location
The project is developed through the SPV Green Solar Power;

The location is represented by one land plot with an area of 15 Ha; The estimated installed capacity is 8 MWp; Average GHR radiation in site is of 1443 KWh/m; The access to the site is assured by a European road (E574/DN65) and a exploitation road (2,4 KM from asphalt to the entry in the site);

The ownership of the land is the direct property of the SPV.

Site photos

Project Plot of land Flat area

Bals Substation 300 m from site

Exploitation Road in site access

Status of the project

Bobicesti Location/SPV Status Installed Capacity (MW) 8.0

The solution study for grid connection has been approved and the grid connection permit (ATR) has been issued at the End of February 2012;

Prefeasibility Study

Land rights

Certificate of urbanism

Environmental Approval

The project has obtained all the necessary permits and approvals;

Removal of land from agricultural use (ANIF, OSPA, OCPI)

Other permits (Compet, Public Health, General Staff, CFR, ISU)

Location Permit

Distance to substation of only 800 m;

Solution Study For Grid Connection

Grid Connection Permit (ATR)

Grid connection cost (according to the ATR

Building Permit

is of 240 thou euro VAT excluded).

Transmission line easement rights and building permit

Technical Details
Bobicesti Location/SPV Installed Capacity (MW) 8.0

Land Size (Ha)

15

Distance to Substation (Km)

0.8

Global Horizontal Radiation

1400-1480

Estimated Net Production (kWp/KWh/year)

1250-1270

Mounting System

fixed tilt

Transmission Line

UGL

Substation

20 kV

The Developer
is one of the most important producers of LV and MV equipment as well as and integrated solutions. The company is structured in several business units: Low Voltage, Medium Voltage, Power Distribution Equipment, Turnkey Projects, Steel parts, Maintenance

Over 36 Mil Euro turnover and over 350 employees at the end of 2011 As secondary fields of activity the company operates in: Industry (Chemical and petrochemical, Metal processing , Industrial appliances, Food processing, Transportation and others) Real Estate (Industrial and Residential) Entered the renewable energy market in 2010 with the intention of capitalizing on the electrical works and project management expertize The company holds the following certificates: Certificate for electrical works issued by National Authority for the Energy Regulation (ANRE); Certificate of registered supplier for TRANSELECTRICA, ELECTRICA and E-ON Moldova; Authorization for land improvement projects (civil works and installation and commissioning works) issued by the Agriculture, Woods and Rural Development Ministry Turnover evolution (MIL. EURO)

Project structure

INVESTOR 1
Developers

INVESTOR 2
New investor at fully permitted stage

Project Companies

Bank loan/ supplier credit

The deal structure can be flexible as the projects can be acquired individually or as a pipeline depending on the investors

Romanian Power Market Summary

Romania is a fast-growing early stage Renewable energy market within the European Union, with a solid legal framework in place. At the end of August 2012 there were over 521 MW of solar PV projects with grid connection contracts and 1,032 MW with ATR (grid connection permit) A new incentive scheme was approved in July 2010 (Law 139/2010, revising the Law 220/2008), and has been reinforced through the Government Emergency Ordinance (GEO) number 88/ October 12, 2011 on the E-RES support mechanism. According to this Law, Romania has set overall renewable energy targets for final consumption of electricity (including hydropower) as follows: 33% in 2010, 35% in 2015, and 38% in 2020. Also, in July 2012, Law 123/2012 has been issued and published in the Official Gazette. The law establishes, among others, energy market liberalization. PV power generators are remunerated in 2 ways: Sale of the electricity generated; Sale of Green Certificates attributed. Regarding electricity, generators from renewable sources have priority access to the transport and distribution grids, and are able to sell electricity generated in the Wholesale market at the market price, or alternatively, at a regulated price set yearly by the regulator.

Romanian Power Market Summary

The Green Certificate system has improved significantly with the last change in law: Solar PV power
plants receive 6 Green Certificates (GC) per MWh generated, until reaching 15 years from the start of operations; The price of Green Certificates is capped and floored each year until 2025 at 55 /GC and 27/GC at the beginning of the year, based on the exchange rate of December previous year. Cap and floor values are adjusted yearly with inflation (EU27) and floor value for the period starting with 2026 cannot be lower than the 2025 value;

Green Certificates Scheme Provisions of GCs Regulator Quota obligation

Eligible RES producers

Trading Platform Bilateral Centralized Market Transelectrica

Power Suppliers
Penalty for quota unfulfillment

National Environment Fund

Romanian Power Market Summary

Electricity distributors have to redeem Green Certificates at the end of each year, as a percentage of their energy sales. The quotas have been increased compared to the previous version of the law in order to further encourage the quota fulfillment;

Quotas for the post-2020 period will be defined later by the Government, but will be no lower than the 2020 quota; Penalty for electricity suppliers that are unable to fulfill the mandatory quotas is set at EUR 110; Currently there is a significant undersupply of GCs needed to achieve the renewable share in generation mix; Secondary legislation elaborated by ANRE (The National Regulatory Authority) was approved in early November 2011; Thus for the first time Romania has an attractive and applicable supporting mechanism for renewables.