This document summarizes a proposed 38 MW photovoltaic plant in Giurgiu County, Romania. It would capitalize on government incentives for renewable energy including a green certificate scheme. The project involves installing solar panels on 75 hectares of privately owned land with good solar resources. It is estimated to generate annual revenues of EUR [...] million and have a payback period of [...] years based on assumptions about green certificate and electricity prices. Permits are being obtained with completion planned for April/March 2012.

1. 38 MW PV PLANT
IZVOARELE - Giurgiu County - ROMANIA
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January , 2012
Presentation to Potential Investors

2. Opportunity Background
The Big Picture
 Capitalize on Government-backed Green Certificate (GC) incentive scheme with top prices
achievable for early entrants (estimated top GC trading price at least 3 years from Renewable
Energy Law publishing)
 Tap in to high demand for renewable energy created by Romanian Government undertaking
targets vs. EU green energy policy.
 For the next 2-3 years at least, the revenues from green energy projects (MWh price plus GC price)
will slightly increase vs. the current price situation (no external market factors are considered).
Application of GC subsidies system is covered by a MWh price increasing (until 2020 it is estimated
a MWh price increasing up to 30%)
 Romania rated as the 3rd
fastest growing country in the EU for gaining planning permission for wind
turbine developments (according to European Wind Energy Association); After the coming into
force of Renewable Energy Law it is expected a similar growth for PV developments.
 Since launch of trading platform, GCs have been traded at the maximum price, i.e. 241.04 Ron. GC
are fully traded.
 Renewable Energy Law is applicable starting October 2011 (Government Order 88/12.10.2011)
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3. Tariff Review
 Romanian Government undertaking for renewable energy, including hydro, concerns an increasing
of renewable energy production vs. gross internal energy production at 38% by 2020
 Renewable energy, that benefits of GC system subsidies is set at 20% from total energy production
by 2020 (from 10% in 2011 and 12% in 2012)
 GC tariff schedule will operate for 15 years from commissioning date, providing project starts no
later then 2016
 Solar generated power will receive 6 GCs per MWh;
 GC prices: min. €27 to max. €55; starting with 2011, the GC price will be EU inflation-indexed at set
up in Ron based on average Eur/Ron at the BNR exchange rate established in December,
“previous” year.
 Current average electricity price €50 per MWh (average price for interval 1-24 h for 2011); tariff
used in the financial modelling, also.
 Penalties of €110 per non-purchased GC, payable by non-compliant electricity suppliers -> twice
the price of purchasing Green Certificates. The penalty is also EU inflation-indexed
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4. Project’s Specifics
 The Project has an installed power of 38 MW, being developed over a land with a surface of over 75
ha, divided in 3 plots interconnected with 20 kV underground power lines (see layout in page 6).
 The current use of land is agricultural; it is plane and free of any type of constraints (environmental
etc).
 The land is privately owned; the rights are secured for a period of 35 years, starting December
2011.
 The location is conveniently placed along a county road and within the close proximity of a railroad
station.
 There is a double 110 kV overhead power line crossing one of the 3 plots of land covered by the
project, owned by the local power distribution company (ENEL Muntenia); this line will be used to
connect the PV plant to the national power grid.
 The fixed ground-mounted PV panels will be of premium quality, supplied by REC Group – Norway
(type REC 235 PE), with an efficiency of up to 14.2%, a 10 year product warranty and a 25 year
linear power output warranty (max. degression in performance of 0.7% p.a.).
 The invertors will also be of premium quality, from SMA – Germany.
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5. Solar Resource
 Over 210 sunny days per annum
 1450-1500 kWh / sqm is the yearly sum of global irradiation
 The figures are submitted in kWh (per mp/year), on optimally – inclined PV modules, the most used
calculation method for energetic application.
 Photovoltaic Geographical Information Systems (PVGIS) is a software approved by the Centre for
Renewable Energy Sources
 The solar map related for Giurgiu area is developed and offered by Energy Research Institute – Italy,
entity under coordination of the EU
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6. Photovoltaic Engineering
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Solar Resource
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7. Photovoltaic Engineering
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Project’s
layout
IZVOARELE PV PLANTIZVOARELE PV PLANT

8. Permitting process – general overview:
 According to the Romania laws, there are two key-permits to be obtained:
1. The Construction Permit, as a result of a land use change procedure and an application file
including different additional permits (including Environmental Permit) and basic designs (civil
works and technical design) of the project;
2. The Connection-to-the-grid Permit, following a procedure that includes, among getting few
other additional permits, a Connection Solution Study performed by an authorized consultant.
Permitting process – project’s status:
 The procedure for the change of the land destination was initiated; civil works design and technical
designs are in progress already; the Construction Permit is expected to be issued in April 2012.
 The Connection Solution Study was contracted and initiated; the Connection Permit is expected to
be issued in March 2012.
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9. Financial figures for a ..... years investment :
 Estimated revenues: EUR ..... per year,
 Total investment costs: EUR .....,
 Estimated operation and maintenance costs per annum - 5% from total income
 Estimated debt / equity ratio: ....
 Recovering investment period: ..... years
 Other financial indicators:
 IRR project – .....%,
 EBITDA margin – .....%,
 Net margin profit – ......%,
 ROE – ......% (yearly average ROE – ......%),
 NPV – EUR ....., (@ assumed cost of capital ...% p.a.)
 ......
 ......
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10. Assumptions for revenues’ estimation:
Green Certificate price
 Considered the current price of EUR 56.16 (equiv. of RON 241 at an exchange rate of 4.25)
 Yearly adjusted with inflation rate (EUROSTAT data), estimated at 2.50% p.a. (average for 2005-2010 was
2.70%; for 2011 estimated at 2.70%)
 No changing negative adverse pricing up to 2015 (included)
 Starting with 2015 until 2020, we’ve considered a GC price decreasing of 30%, constantly distributed during
the analysed period.
Electricity Price
 2011 MWh price considered is EUR 50 (based on 2011 quantity electricity statistics, for 0-24h intervals; for
2011 the average price was EUR 51.75)
 From 2012 (included) to 2020 we estimate a price increasing of 27,5% (according to ANRE’s publication, the
price increasing of 30% is considered until 2017/2018), constantly distributed during the analysed period ;
 No external factors market considered which might affect the internal price energy
 No Romanian’s commitment considered to EU for market liberalisation of energy price
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11. Proposed Selling Structure
 ....
 ....
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