APER: EWEA Annual Conference Vienna, February 5, 2013

1. APER: EWEA Annual Conference Vienna, February 5, 2013 SUPPORT MECHANISMS The Italian job: Italy reverses course on green certificates Dott. Luciano Santi APER

2. About APER Founded in 1987, APER gathers and represents the electricity producers from renewable sources with the aim to protect their rights and promote their interests in Italy and worldwide. APER is the main Italian association in renewable energy field and one of the largest in Europe for the number of members and installed power. Currently its members are more than 450 with a capacityof about 9,000 MW. APER is the voice and the reference for professionals in the wind, hydroelectric, photovoltaic andbioenergy sectors. Main activities: Institutional representation and lobby for renewable energy producers vs. National and Local Government, as such as vs. European Institutions; Support members on technical, legal, regulatory and market issues; Analysis and studies on regulatory and market tools related to the world of renewables; Promotion and dissemination of a culture concerning environmental sustainability and renewable resources, by organizing courses, seminars, conferences and studies, articles and interviews.

3. About Veronagest VRG Wind 060 (48.0 MW) WTG: Repower; BOP: Siemens Status: Op. 01/2009 Cammarata (2.9 MWp) PV: Sunpower Connected to the grid: Dec. ‘10 Calamonaci (3.0 MWp) PV: Sunpower Connected to the grid: Dec. ‘10 VRG Wind 129 (22.1 MW) WTG: Gamesa; BOP: Siemens Status: Op. 10/2009 Licata (3.2 MWp) PV: Sunpower Connected to the grid: Dec. ‘10 Parco eolico Mineo (42.5 MW) WTG: Gamesa; BOP: Siemens Status: Op. 3/2011 Mussomeli (1.0 MWp) PV: Sunpower Connected to the grid: Dec. ‘10 Since 2006, Veronagest developed and financed 353 MW and now operates, 282.4 MW of Wind and 16.5 MW of PV. Dedicated team of 50 people to manage origination, project finance, engineering & construction, operation & maintenance. VRG Wind 030 (60.0 MW) WTG: Gamesa; BOP: Siemens Status: Op. 01/2010 Cerami (2.9 MWp) PV: Sunpower Connected to the grid: Dec. ‘10 VRG Wind 040 (29.8 MW) WTG: Gamesa; BOP: Siemens Status: Op. 01/2009 282.4 MW of WIND Caltanissetta (3.5 MWp) PV: Sunpower Connectedto the grid: Dec. ‘10 Gemsa (60.0 MW) WTG: Gamesa; BOP: ABB Status: Op. 03/2011 Cortale Energia (20.0 MW) WTG: Gamesa; BOP: Siemens Status: Op. 06/2012 16.5 MW of PV

4. The new incentive framework The Italian Legislative Decree n. 28/2011 transposes the Directive n. 2009/28/EC, and introduces ​​several significant changes in the incentive mechanisms of energy from renewable sources. These changes were subsequently implemented by Ministerial Decree July 6, 2012 The new support framework came in force from 01.01.2013 and provides different procedures for granting incentives, taking into account the size of the new plants and the type of renewable sources. New RES PlantsP≤ 1 MW Feed-in tariff :omni-comprehensive incentive that includes also the revenues from the sale of the power produced (feed in tariff base value) Feed-in premium: the omni-comprehensive tariff net of the revenues from the sale of the energy produced. Feed in premium = (feed in tariff base value- hourly electricity market price). New RES PlantsP> 1 MW ACCESS TO THE INCENTIVES DIRECT ACCESS ACCESS by REGISTER ACCESS by AUCTION Wind, P≤ 60 kW Hydro, P≤ 50 kW Biomass, P≤ 200 kW Biogas, P≤ 100 kW Wind, 60 kW<P≤ 5,000 kW Hydro, 50 kW<P≤ 10,000 kW Biomass, 200<P≤ 5,000 kW Biogas, 100<P≤ 5,000 kW Wind, P> 5,000 kW Hydro, P> 10,000 kW Biomass/Biogas, P> 5,000 kW Geothermal, P> 20,000 kW The new incentives will be granted for a period of 20-25 years (depending on average lifetime that it’s different for types of plant: i.e. on shore or off shore windplants). Special registers are foreseen for refurbishment, with a dedicated capacity quotas. The maximum tariff for a refurbishment (variable to intervention costs) corresponds to 50% of tariffs related to new power plant.

5. The new incentive framework In summary for the wind power: • New plants from 01/01/2013 • (MINISTERIAL DECREE July 6, 2012) Plants >60 kW and <5 MW Access to incentives through register subscription Plants <60 kW Free access to incentives Plants >5 MW Access to incentives through a mechanism based on “Dutch auction model” (descending-price auction)

6. The new incentive framework: Tariffs Plants <60 kW Free access to incentives 60 kW<Plants<5 MW Register Plants > 5 MW Dutch Auction

7. How does the “Italian Dutch auction” work? The “Dutch auction model” aims to promote competition and to reduce costs for incentives; It’s an auction where the prices go down instead of up; The “Dutch auction” are held once a year In the Italian “Dutch auction model”, the multiple buyers offer to GSE, by electronic ways, specific percentage reduction from the base tariff (from -2% to -30%) to win a certain amount of power. Maximum capacity threshold 500 MW

8. The wind power in Italy Source: Statistical Report 2011, GSE * Prevision of new power. • 2000 – 2012 has been of 29,6% and since 2007, CAGR has been 24,5% (almost 1 GW per year installed). • What has been the result of the first Dutch Auction held in Italy from 8th October to 6th December 2012 ?

9. Dutchauction: the first results in Italy DutchAuction (Plants > 5MW) Register (60 kW < Plants < 5 MW)

10. Thankyou for yourattention info@aper.it www.aper.it l.santi@veronagest.com