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InvestinGreen

January2011

Contents Contents

TheGreekRESMarkettoday TheGreekInvestmentProposal Legislation&Regulation RESInvestmentProjects

TheGreekRESMarkettoday

TheGreekRESmarkethasshownstrong performance
EvolutionofShareofRESinelectricityproduction largehydroexcluded

3,75% 3,5%

Source:RAE

10

andhasreachedaconsiderablepercentage ofelectricityproduction
ElectricityProduction,2009
Hydro 10% RES 3,75% 70% Natural Gas 19% Lignite 62% Oil 5% 60% 50% 40% 30% 20% 10% 0% RES 4,3% 5% 0.30% 19%20% 10% 12% 3,7% 4,3% 3 7% 4 3% 8% 12% 62% 52%

ShareofallSourcesinElectricityBalance

ElectricityProduction,2010*

Hydro 14%

Natural Gas 22%

2009 Lignite g 60% Oil 0%

2010

11

Source:RAE Estimate yearend

withRESspreadingthroughoutGreece with RES spreading throughout Greece


WestMacedonia
ABC 6822364

CentralMacedonia
ABC 588179106

EasternMacedonia&Thrace
ABC 527209246

Epirus
ABC A B C 2284445

Thessaly
ABC 23915444

IonianIslands Ionian Islands


ABC 18511471

CentralGreece
ABC 25741129321

WestGreece
ABC 715329120

ATTIKI
ABC A B C 36721566

Peloponnese
ABC 1485749218

SouthAegeanIslands
ABC A B C 7642

A:Licensesatdifferentstages(MW) B:LicensesatthestageofSupply connection(MW) C:UnitsinOperation(MW)

Source:HTSO,ReportfortheDevelopmentoftheTransmissionSystem20102014

anddifferentRESSourcespenetrating inEveryRegion
CentralMacedonia: Wind:27MW Solar:20MW SmallHydro:53 Biomass:8 Other:45MW Epirus: Wind:80MW Wind: 80 MW Solar:4MW SmallHydro:46MW IonianIslands Ionian Islands Wind:71MW Solar:0,2MW Peloponnese: Wind:213MW Solar:18MW SmallHydro:3MW Cyclades: Wind:3MW Solar:2MW
Source:HTSO,ReportfortheDevelopmentoftheTransmissionSystem20102014

EasternMacedonia Thrace Wind:197MW Solar:4,6MW SmallHydro:2MW Other:63MW

CentralGreece: Central Greece: Wind:212MW Solar:20MW SmallHydro:59MW Biomass:2MW Other:4MW Oth 4 MW

Evia: Wind:216MW Attiki: Wind:2MW Solar:1MW Biomass:40MW SmallHydro:1MW Other:30MW

InvestmentsinRES,approvedforfunding throughtheInvestmentIncentivesLaw
88 projects,2,1 billion,224 newworkingplaces

ManufacturingFacilities 6projects,270,65mil. 672newworkingplaces

WindEnergy.TheBigPlayersinGreece Wind Energy The Big Players in Greece*

Company NAME Rokas Renewables (Iberdrola) EDF EN SA & Co Terna SA Enel Ellhnikh Texnodomikh SA Eunice Babcock & Brown PPC Renewables Acciona
Source:ELETAEN

Capacity (MW)* 287,60 149,35 149 35 141,97 86,23 76,70 46,00 42,00 39,25 34,85

Market Share 20,6% 13,7% 13 7% 12,1% 7,9% 7,1% 4,2% 3,9% 3,6% 3,2%

*Capacityofthecompanyswindprojectsoperatingorcurrentlyunderdevelopment

SolarEnergy.TheBigPlayersinGreece Solar Energy The Big Players in Greece

Thetopfive(5)ofCompanieswithProduction License*
Capacity (MW)

Thetopfive(5)ofCompanieswithOperation License*
Capacity (MW)

A/A CompanyName

A/A CompanyName

PPCRenewables

50

Iktinos SA

4,5

Aktina S.A

24

RokasSolarIILLC

3 4 5

SelectedVoltSA InternationalAirportofGreece Eleftherios Venizelos EDFENSA

10 8 8

3 4 5

ZafeiratosEnergyEE f AnemosSA Tekom A.B.E.T.E.


*Source:RAE

3 2 2

TheGreekInvestmentProposal

ThestrengthsoftheGreekRESmarketcreatea veryattractivebusinessopportunity
Bound by EU regulations and Kyoto Protocol agreements National target for RES at 20% of electricity production by g yp y 2020 Increased domestic demand for electrical energy, to surpass 80 000 GWh in 2020 from about 70 000 GWhin 80,000 70,000 2009 High feedin tariffs through 20 year PPA (power purchase agreement) Ideal conditions for wind and solar energy Decrease of RES production cost, attractive investment incentives 44 Billions Euros

Investment 210.000new Jobs


Projectswith strongcashflows andattractive Returnson Returns on Investment

Greeces attractivenessinRES (Ernst&Young,August2010)

Greecehasalongwaytogoinordertoreach the2020Europeantargets th 2020 E t t


1 2 3 4 5 6 7 8 9 9 10 11 12 13 14 15 16 17 18 19 20 20 21 22 23 24 25 26 26 27 EUMemberState UnitedKingdom Ireland Greece Denmark France Netherlands Spain EU Italy Latvia Latvia Belgium Cyprus Germany Luxembourg Malta Portugal Slovenia Finland Austria Lithuania Estonia Estonia Hungary Sweden Poland Slovakia Bulgaria Romania R i Czechrepublic 2008Figure 1,5% 2,9% 7,1% 17,2% 10,5% 2,7% 8,7% 9,2% 6,3% 31,4% 31 4 % 2,6% 2,7% 7,8% 1% 0% 21,5% 15,5% 28,9% 25,1% 14,6% 16,6% 16 6 % 5,1% 41,3% 7,5% 6,8% 8,9% 17% 17 % 6,5% 2020Target 15% 16% 20% 30% 23% 14% 20% 20% 17% 42% 42 % 13% 13% 18% 11% 10% 31% 25% 38% 34% 23% 25% 25 % 13% 49% 15% 14% 16% 24% 24 % 13% %Tocover: 13,5% 13,1% 12,9% 12,8% 12,5% 11,3% 11,3% 10,8% 10,7% 10,6% 10 6 % 10,4% 10,3% 10,2% 10% 10% 9,5% 9,5% 9,1% 8,9% 8,4% 8,4% 84% 7,9% 7,7% 7,5% 7,2% 7,1% 7% 7% 6,5%

TheGreekRESMarketisexpectedtogrow significantly
In20201MWoutof3MW shouldcomefromRES Theinfrastructurecostto meettargetsrepresents1/3 p y p y ofthepenaltytobepaidby Greeksincasethetargets arenotmet
ParticipationofRES&ConventionalTechnology inElectricityGenerationfortheyear2020 PV1,44% Geothermal 0,24% Hydro6,08% Biomass Biogas 0.53% 0 Hydro Conventional 66,90% Concetrated Solar0.73% 120 184 PV Capacity2010 NationalTargetsfortheyear2020 7,500

TargetedparticipationofRES&conventionaltechnologyinelectricity generationfortheyear2020inmarketshares&numericaltargets TargetssetbytheCommitteefortheNationalEnergyStrategy Targets set by the Committee for the National Energy Strategy TargetsarebindingfortheGreekgovernment WindenergyisexpectedtodominateelectricitygenerationfromRES

4,650 3,237 2,200 1,327 0 250 Wind 60 350

Wind24,09%

Geothermal

Concetraded Solar Target2020

Biomass

Source:YPEKA,National RenewableEnergyActionPlan

Source:Committee fortheNationalEnergyStrategy

TheRenewableEnergySourcessectorin Greecehasvariousopportunitiestooffer
Greenfieldinvestmentsinwindfarms

Wind

Cooperationwithexistingfirms Light manufacturing Lightmanufacturing GreenfieldinvestmentsinPV&Solar Thermalparks Li ht Lightmanufacturing f t i

PV&SolarThermal

Geothermal

Greenfieldinvestmentsingeothermal powerplants power plants

Biofuels

GreenfieldinvestmentsinBiofuelplants Biorefineries

Hydro H d

Greenfield investments in small hydro Greenfieldinvestmentsinsmallhydro plants

.accordingtotheWindEnergy productionPotential

andtheSolarenergyproduction potentialofeacharea

RESFeedinTariffs(1) RES Feedin Tariffs (1)


Interconnected System ( (Euro/MWh) ) 87,85 Noninterconnected Islands ( (Euro/MWh) ) 99,45 250 87,85 87 85 550 264,85 284,85 150 99,45

ElectricityProductionfrom: OnshoreWindFarms>50kW WindEnergy50kW Hydro< Hydro < 15MW PV 10KW onrooftops SolarThermal SolarThermalwithstoragesystemwhich ensures2operationalhours. Geothermalenergy oflowenthalpy gy py Geothermalenergy ofhighenthalpy

RESFeedinTariffs(2) RES Feedin Tariffs (2)


Interconnected System ( (Euro/MWh) ) Noninterconnected Islands ( (Euro/MWh) ) 200 175 150 120 99,45 220 200 87,85 87 85 99,45 99 45

ElectricityProductionfrom: Biomass 1MW 1MW<Biomass 5MW Biomass > 5MW >5MW Biogas 2MW Biogas> 2MW Biogasoutof biomass3MW Biogasoutofbiomass>3MW Cogeneration Co generation

PVFeedinTariffs PV Feedin Tariffs


Tariffs(/Wh) YearMonth InterconnectedSystem >100KW 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 February August February August F b February August February August February August 400.00 392.04 392 04 372.83 351.01 333.81 333 81 314.27 298.87 281.38 268.94 260.97 1.3*SMCn1 <=100KW 450.00 441.05 441 05 419.43 394.88 375.54 375 54 353.55 336.23 316.55 302.56 293.59 1.4*SMCn1 450.00 441.05 441 05 419.43 394.89 375.54 375 54 353.55 336.23 316.55 302.56 293.59 1.4*SMCn1

NoninterconnectedIslands Non interconnected Islands

Year n from 2015 onwards SMC = System Marginal Cost

ComparativeEuropeanFeedinTariffs Comparative European FeedinTariffs


UK SPAINFIT SLOVAKREPUBLIC PORTUGAL NETHERLANDS LUXEMBOURG LATVIA IRELAND
300 58 114.22 97.14 97 85.9414 130 92 65 95 128.9 51.76 70.62 135.3 135 3 107.77 166 86.24 75.4 138.5 142.3 190 114.22 450 319.4 391.2 300 128.9 51.76 67.15 464.52 447.37 350 403.41 504.8 386.47 282.63 91.79 91 79 370 94 516.33 69.9 395 427.65 376.17 437.25 107.81 68.76 333.33 330 324.85396.96 277.46

UK SPAINPrem SLOVENIA ROMANIA POLAND MALTA LITHUANIA ITALYGC IRELAND

107.81 68.76 129.21 70.47 71.76 95 38 95.38 76.46 91.79 94.5 94 186 114 69.9 82.7 82 7 75.31 145.31 148.79

GREECE Greece FRANCE ESTONIA CZECHREPUBLICGP CYPRUS BELGIUM EU27AVERAGE 0 100 PV 200

550 550

Greece GREECE G C
FRANCE ESTONIA CZECHREPUBLICGP CZECH REPUBLIC GP CYPRUS BELGIUM EU27AVERAGE 0

421.08 400 500 600

129.31 102.88

300

50 Offshore

100 150 Onshore

200

250

300

350

PVFullyorPartiallyIntegated

Source:EuropeanRenewableEnergiesFederation(EREF),Report2009
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Legislation&Regulations

NewFlexibleframeworkforRES N Fl ibl f k f RES


NationalRESTargets fortheyear2020 Contributionofthe energyproduced fromRES: (a)tothegrossfinal energyconsumption energy consumption by20% (b)tothegross electricalenergy consumptionofat least40% least 40% (c)tothefinalenergy consumptionfor heating&coolingof atleast40% (d)Tothegross energyconsumption intransportationby 10% CasesExcludedofthe productionlicense issue Geothermalstations withcapacityless than0.5MW biomass,biogasand biofuel production p withcapacityless than1MW PVorsolarthermal stationswith capacitylessthan1 capacity less than 1 MW windparkssmaller than100KW combinedcyrcle stationswith capacitylessthan1 MW standaloneREor combinedcircle stationsnot connectedwiththe grid withcapacity lessthan5MW Onestopshopfor RES AnIndependent ServiceforRESis introducedinthe MinistryOf Environment,Energy, Environment, Energy, andClimateChange whichwillactasan onestopshopand willberesponsible forproviding for providing informationtoall potentialinvestors whoaareinterested inRES

LandPlanningforRES InstallationofRESin compliancewiththeGeneral andSpecialFrameworkfor LandPlanningandSustainable DevelopmentforRES Development for RES InstallationofRESin compliancewiththeGeneral andSpecialFrameworkfor LandPlanningandSustainable DevelopmentforRES Development for RES Permissiongrantedforusing highproductivityagricultural land,providingthatitcovers lessthan1%ofallfarmlandin thespecificprefecture Permissiongrantedforusing highproductivityagricultural land,providingthatitcovers lessthan1%ofallfarmlandin thespecificprefecture

RESinBuildings TheuseofRESin newbuildingsis mandatory Specialprovision (KENAK)forenergy savingsinthe i i th buildingsector ProgramSave Energyathome (expectedtobe introducedin introduced in January2011)

PleaserefertothefulltextofthenewLaw3851/2010fordetailed andanalyticalinformation

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OffshoreWindFarms: ff thelightjustturnedon
AccordingtothenewRESLaw3851/2010: Theinstallationofwindfarmsfortheproductionof electricalenergywithinthenationalseaterritoryis electrical energy within the national sea territory is allowed. Fortheconstructionandtheoperationofeachoff shorewindfarm,thecontractorfollowstheprocedure ofenvironmentalApproval. Aftertheissueoftheinstallationlicense,anopen publictenderingisannounced,fortheexecutionwith financingorself financingoftheconstructionworksof financing or selffinancing of the construction works of theoffshorewindfarmanditsconnectiontothe network. TheOneStop ShopbelongstotheMinistryof Environment&ClimateChange(YPEKA)isresponsible fortheplanningandthecoordinationofoffshore windfarms. The evaluation of the proposed area is under progress Theevaluationoftheproposedareaisunderprogress

TheIndependentOfficeofRES, whichbelongstotheMinistryof Environment&ClimateChange (YPEKA)isresponsibleforthe planningandthecoordinationof offshorewindfarms.

Thepotentialistremendousformanyareasofthecountry

OffshoreWindFarms: ff ProposedAreas
Theproposedareas*forthe developmentofoffshorewind farms,accordingtothe f di h preliminaryreportconducted bytheIndependentOfficefor RES,arethefollowing: , g Alexandroupolis Fanari Thassos S Samothraki th ki Limnos Kymi Petalion Kerkyra
Pleasenotethattheevaluationofthe p p proposedareasisunderprogress. p g

LicensingProcedure&TimeSaving Licensing Procedure & Time Saving

Licensing Procedure - Steps Production License (a) (b) (c) (a) (b) (c) connection offer, Approval of A l f environmental terms, forestal license Installation License contract for connection contract of purchase of electric power

Time Needed 3 months 4 months

RAE / Production License

Region in charge / Operation License

4 months

Region in charge / Application for: (a) connection offer, (b) approval of , environmental terms, (c) forestal license

Region in charge / (a)Installation License (b)contract for connection (c)contract of purchase of electric power

Operation License Total Time Needed

1 month 12 MONTHS

LicensingProgressof RESprojects(bytechnology)
TECHNOLOGY WithOPERATION License WithINSTALATION License WithPRODUCTION License

Totalcapacity(MW) Totalcapacity(MW) Totalcapacity(MW) p y( ) p y( ) p y( ) Wind Biomass Geothermal SmallHydro PV SolarThermal Hybrid TotalCapacity(MW) 1218,5 43,3 0 185,1 139,7 0 0 1586,6 1198,3 21,2 0 84,9 232,2 0 0 1536,6 9504 319,6 8 754,4 1026,8 0 150,1 11762,9

Source:YPEKA,October2010

SuccessStories Success Stories

SuccessStories Success Stories

Iberdrola RokasWindFarminEvoia

MytilinaiosWindFarminThrace

YourInvestmentPartnerintheregion 3MitropoleosSt. 10557Athens,Greece t.+302103355700 f.+302103242079 e.info@investingreece.gov.gr