DRAFT

1. STRICTLY PRIVATE & CONFIDENTIAL! Support Mechanisms – Who (still) cares? Views from Central & Eastern Europe CONFIDENTIAL DRAFT v2.01

2. Renewable Energy in Central & Eastern Europe Ideal combination of economic and geographic/meteorological factors Solar Potential – Germany vs Romania • Share of RES generally behind WE and 2020 targets • Higher economic growth (compared to rest of EU) • High portion of fossil fuels in current power mix • Obsolete conventional power infrastructure • Availability of prime locations with superior meteorological and orographic conditions • Population density 1/3 of WE, and generally stronger popular support Source: Šúri M., Huld T.A., Dunlop E.D. Ossenbrink H.A., 2007. Potential of solar electricity generation in the European Union member states and candidate countries. Solar Energy, 81, 1295–1305, http://re.jrc.ec.europa.eu/pvgis/ Share of CEE countries in European… Share of Fossil Fuels in Electricity Generation Other Source: European Commission 2012 (data for 2009) Source: EWEA, February 2012

3. GEC’s Current Project Pipeline in CEE GEC observing significant development activity across (almost) the entire CEE region • GEC originates transactions directly from developers and selected M&A advisors through a proprietary network created over the last 15 years • Since June 2012 alone, reviewed 78 new projects with 4.9 GW, and expect to review over 300 potential projects over the next four years • Main markets within CEE: Poland, Romania, Former Yugoslav Republics, and (potentially) Bulgaria • Expect over 11 GW of onshore wind in CEE until 2020, plus capacity additions in solar and small hydro in selected countries • Beyond CEE: Turkey, Ukraine, Belarus… • However, overall CEE market impacted by financial and sovereign risk crisis and by several incidents of national political decisions on support mechanisms: • Czech Republic • Hungary • Poland • Bulgaria Solar PV Wind Small-Hydro 0-50 MW 501-1500 MW 51-500 MW Source: GEC internal data, Jan 2013

4. Support Mechanisms in Europe A broad variety of different support mechanisms in use across Europe • Feed-in tariff (FiT), Green Certificate or hybrid systems in use almost everywhere in Europe • Level of success depending on variety of factors (not just the support mechanism itself) • Several countries made adjustments to their support mechanisms (some on-going) • Expect further changes to occur as national markets mature • Nature of changes will determine impact on build-out Feed-in tariff / premium feed-in tariff Tradable REC Mixed/hybrid systems No support mechanism System under review Source: GEC analysis, Feb 2013

5. Support Mechanisms – Who (still) cares? Key drivers for investments in renewable energy assets – a complex system of interdependencies Resource Wind / Solar / Hydro RES Targets Level / Timeline Power Market Price level / Outlook Regulation Permitting process Finance Equity / Debt Supply Chain Availability / Cost Grid Access / Quality Support Mechanism Level / Outlook Sources: EWEA; GEC

6. Support Mechanisms – What is happening? Observations about incidents in various support mechanisms across Europe • Actual adjustments • Planned / Unexpected • Partial / Global • Forward looking / Retroactive • Uncertainties / Potential adjustments • Macro economical • Fiscal constraints • EU concerns • EUR concern / FX issues • Political • Intentional / Negligence • Austerity measures • Elections • Physical / Factual • Grid capacity • Demand development • Power prices

7. Support Mechanisms – Who (still) cares? SCENARIO 1: Planned adaptation of a support mechanism Resource Wind / Solar / Hydro RES Targets Level / Timeline Power Market Price level / Outlook Regulation Permitting process Finance Equity / Debt Equity and debt providers adapting to new level Supply Chain Availability / Cost Grid Access / Quality ? Support Mechanism Level / Outlook Sources: EWEA; GEC Planned adaptation

8. Support Mechanisms – Who (still) cares? SCENARIO 2: Unforeseen/retroactive adaptation of a support mechanism in a mature/established market Resource Wind / Solar / Hydro RES Targets Level / Timeline Power Market Price level / Outlook Regulation Permitting process Finance Equity / Debt Equity and debt providers “shutting down” Supply Chain Availability / Cost Grid Access / Quality ! Support Mechanism Level / Outlook Unforeseen/retroactive adaptation or Substantial uncertainty regarding outlook Sources: EWEA; GEC

9. Support Mechanisms – Who (still) cares? SCENARIO 3: Unforeseen/retroactive adaptation of a support mechanism in an emerging market Resource Wind / Solar / Hydro RES Targets Level / Timeline Power Market Price level / Outlook Regulation Permitting process Finance Equity / Debt Equity and debt providers “shutting down” Supply Chain Availability / Cost Grid Access / Quality ! Support Mechanism Level / Outlook Unforeseen/retroactive adaptation or Substantial uncertainty regarding outlook Sources: EWEA; GEC

10. Support Mechanisms – Quo Vadis? In summary… • Short term: • Getting worse – before it gets better? • Medium term: • New / different support mechanisms • Long term: • Grid parity / Power purchase agreements

11. Contacts Kim Christian Köhler Partner Tel.: +44 20 3205 3996 Mob.: +44 77 1521 0370 kkoehler@greenevolutioncapital.com George Köteles Partner Tel.: +44 20 3205 3995 Mob.: +44 77 0336 8060 gkoeteles@greenevolutioncapital.com London Office 7 Hanover Square London W1S 1HQ United Kingdom Vienna Office Hohenstauffengasse 12 1010 Vienna Austria www.greenevolutioncapital.com