George CiubotaruGeorge Ciubotaru

BalsBals 11

PV PV Project Project

PresentationPresentation

Paul Voicu

Phone: +40744355200

paul.voicu@ibcoenerg.ro

George Ciubotaru

Phone: +40726359574

george.ciubotaru@electroalfa.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 AreaPortfolio Area

• 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;

Project location

• Average GHR radiation in site is of 1443 KWh/m²;

• 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

• The solution study for grid connection has

been approved and the grid connection

permit (ATR) has been issued at the End of

February 2012;

• The project has obtained all the necessary

Location/SPV

Bobicesti

Status

Installed Capacity (MW) 8.0

Prefeasibility Study

Land rights

Certificate of urbanism

Environmental Approval • The project has obtained all the necessary

permits and approvals;

• Distance to substation of only 800 m;

• Grid connection cost (according to the ATR

is of 240 thou euro VAT excluded).

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

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

Location Permit

Solution Study For Grid Connection

Grid Connection Permit (ATR)

Building Permit

Transmission line – easement rights and building permit

Technical Details

Location/SPV

Bobicesti

Installed Capacity (MW) 8.0

Land Size (Ha) 15

Distance to Substation (Km) 0.8

Global Horizontal Radiation 1400-1480

6

Estimated Net Production (kWp/KWh/year) 1250-1270

Mounting System fixed tilt

Transmission Line UGL

Substation 20 kV

The Developer

• 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

Turnover evolution (MIL. EURO)

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

•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

Project structure

Project Companies

INVESTOR 2New investor at fully

permitted stage

INVESTOR 1Developers

Project Companies

INVESTOR 2New investor at fully

permitted stage

INVESTOR 1Developers

Project Companies

Bank loan/ supplier credit

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• 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.

• 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;

Romanian Power Market Summary

Green Certificates Scheme

Regulator

Power Suppliers

Transelectrica

Trading Platform

Bilateral

Centralized Market

Quota obligationProvisions of GCs

Eligible RES

producers

Penalty for quota

unfulfillment

Green Certificates Scheme

National

Environment Fund

Romanian Power Market Summary

• Quotas for the post-2020 period will be defined later by the Government, but will be no lower

• 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;

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.