Smart Solar is on Its way to become the leading EPC and O&M company in Southeast Europe

1. Who we are? Smart Solar is on Its way to become the leading EPC and O&M company in Southeast Europe Smart Solar • is the Engineering, Procurement & Construction (EPC) and Operation and Management company of Smart Energy Group (SEG) which is established by Turkish entrepreneurs. • has proven skills in managing and leading projects built on experience accumulated 17+ years in business throughout Europe (incl. Turkey), Germany and United States. • SEG has companies registered in Turkey, Greece, Romania, Bulgaria, Serbia and others are on the way. • SEG successfully finished the turn-key construction of PV parks with capacity more than 40 MWpin Southeast Europe • successfully obtained its EPC certificate from TUV SUD certifying the design, engineering, puchase of materials, construction and operation and management of PV Parks is in internationalstandards. • successfully obtained ISO 9001:2008 certification from Bureau Veritas • Is reputable and can be bankable because the PV Parks can receive technical DD from any international audit company accepted by different banks • Smart Solar can support the investors with bridge finance. The investors which have equity, and the banks want to release the credit after turnkey we are a solution.

2. New Energy resources:Solar power

3. Solar energy is completely natural and renewable The solar energy reaching the Earth’s surface is so great that in six months, it’s about equal to all of the energy that can be obtained from all of the Earth‘s non-renewable resources of coal, oil, natural gas and mined uranium combined. Theoretically limitless, the sun has an estimated life span of another 5 billion years and is one of the most passive forms of power generation with zero emissions.

4. Solar power is non-polluting. It does not emit greenhouse gases, carbon dioxide or carcinogens into the air and soil.

5. More population means more energy consumption

6. Solar is a resource to be harvested! Some countries have petrol and develop a large income from extracting that. For 2Ha of land, a 1MW PV park can produce 1,250MWh with an international minimum market value of EUR 40MW/h we can have an income of EUR 50,000 from this piece of land. The same land size, even of the highest agricultural productivity will not generate a comparable income value, but in reality less then 1/10 of that amount ! …. For PV parks , however, any land quality will do !

7. Major part of the electricity consumption is during the day

8. Average PV park electricity production Most of the energy we use is during the day. The daytime load is almost double the night time load. Solar energy is 100% consumable and the market price is sometimes much higher than the feed-in-tariff. After the feed-in-tariff period is over, we can continue to sell the power to the grid, so the total business life is as long as the life of the system.

9. Winning combination Winning combination • No sun means night, rain or wind. So to balance the system of Turkey which is hydro-dependant on renewable, solar power is the most important balance. • The main problem in Romanian electric market is during the daytime and summer time the problem becomes much bigger. • Only for this partially high demand during the day solar is more than sufficient solution. • There is no reason to continue to increase the band energy of Romania because of the peak demand. • If we want to export all the importers are looking for peak time energy. • If we establish 5 000 MW solar power they will compensate the peak problems and Romania will need less nuclear or thermo power plants which will increase the band for no demand. Hydro and wind will be a natural balance for rainy days in the summer.

10. BULGARIAN Business Model WHAT WE FOUND UPON OUR ARRIVAL IN THE BULGARIAN MARKET : • Inexperienced market participants such as : • Banks • Insurance companies • Legal firms • Investors • EPC companies • Main concerns : • Real system output • System long term efficiency levels • EPC performance (Just In Time) • Grid connection • Electricity market predictability

11. Solving these Challenges • As a TUV certified EPC company we were in a position to issue satisfactory Technical DD according to the strict bank request. • Presenting the banks with credible licenced forecasts for electricity production volumes which guaranteed the future income predictions in the financial DD. • We have chosen international Law Firms, accepted by the banks to clear the legal DD • We have used best International Insurance Companies accepted by banks for insuring the construction risk, all risk property insurance and loss of income due to damage or construction defects. • We have never asked for our funding in advance, but first connected the system to the grid and guaranteed to the bank the future sale of the electricity produced. • We are were pioneers in this industry in Bulgaria and could confirm production expectations by real production achieved. • At the end of this process our highest achievement was that we have proven wrong all those pessimists who claimed that banks in Bulgaria were not likely to supply the funding. • The problem however was the high interest rates, which is why we have also attracted loans from Turkish banks. • We became a specialist Consultants and Partners not only for investors, but also for the banks themselves in evaluating other PV project finance requests.

12. “The sun does not shine equally for every investor” Smart Solar electricity production levels have been approx. 20% higher than the radiation readings based on CLASSIC PVGIS fixed angle projections • Smart Solar overperformed audit by PVGIS Classic data by approx. 20% in its • Rakovskovo PV plant in Bulgaria which is in operation for 18 months • You can increase your production by optimizing the system in many ways.

13. Location • It is better the plot to be clean of old buildings and square shaped. That will help you to decrease the cost for construction and cables • Should be very close to the grid or substation for less expenses in grid connection • If there are big stones ramming metal structures becomes almost impossible and we go to concrete or screw foundations which increase the cost. • Bad experience in Bulgaria: A company found historical heritage underground and they had to stop the construction. • So we suggest before you buy the land to make excavation and check the plot not only for historical heritage but also for underground geo structure. • Slope of the land is also very important. • 20 000 sq. m for 1MW with 250 Wp panels is not the best choice. In winter times the shading is more than 10 m so if you are looking for almost 0% shading loss we need 24 000 sq.m/MW. If we use a tracking system the optimal plot of land can go up to 40 000 sq.m

14. Smart frame On 21st of December the optimal angle is about 60° looking to south On 21st of July it should be about 8° During the day we have east-west move of the sun.We have few solutions, we can use trackers to track the sun every day;1. One axis east-west which brings up to 25% additional income;2. Two axis tracking system – up to 35%;3. Seasonal manual changeable metal structure produced by Smart Solar which is 33° in the winter and 10° in the summer. Smart frame will bring up to 8% additional income.4. Seasonal manual change with automatic east-west tracking system which brings up to 30% is also produced by Smart Solar.Smart conclusion: Since the land is not enough in most of the cases we suggest seasonal manual change which will bring up to 8% additional income.

15. Smart Module • In hot countries like Turkey we better chose modules with lower heat coefficient . The loss from heat is the biggest loss in PV systems – up to 20% in the summer. • The degradation of modules should be low. • The product should be bankable with all international standards, also insurance is a good choice for future bankruptcy of the supplier. • We have done a test field in Bulgaria which is comparing monocrystalline, polycrystalline and mono-like modules one beside another. • Modules must be sorted.

16. Smart Inverter • When producers are selling inverters they speak about efficiency, which is under standard conditions. • You have to be careful what is the decrease in the efficiency with temperature increase. The minimum and maximum working temperatures are very important as well. • We prefer liquid system that cools the working parts within high temperature. There are cases when the room is cooled but better is cooling the working parts. Liquid cooling system brings long life and more productivity to inverters. • A project made with central inverters can decrease the DC loss down to 0.65%. The inverters are with 1200 V DC input which allows us to make longer strings. • Higher voltage means lower loss. That is why we are working with central inverters for projects bigger than 200 kWp.

17. Smart String box • It is very important to have string current monitoring. • We have 4000 modules in 1MW project. • If there is a problem in the system, string current monitoring compares all the strings and shows us where exactly the problem is. • The other case is to check by hand every string until you find the problem. • The rows and the strings are designed for minimum loss from shadings

18. MCTP /Metal complete transformer posts/ • We use oil transformers specially designed for lower loss. The loss will go from 2.5% down to 0.4%. Thanks to these transformers the total loss can be decreased to 0.7% on the MV side. • MCTP’s are completely isolated, produced according to the requirements of standard EN 622 71 – 202:2007. Provide fire security, comfort, safety and harmlessness during technical maintenance; deleterious substances are not released. MCPTs are made of metal structural elements with high quality sandwich panels with polyurethane filling and are completed with the ordered electrical equipment. Very strong metal structure, protected from formation of condensate. Excellent anticorrosive protection. MCPTs are intended for a long operation mode in conditions of climate in the region, without restrictions to use in seismic regions. • With additional insulation to protect the equipment in severe conditions of the climate in the region. • Equipped with MV equipment, power transformer. Small dimensions and weight, quick and easy installation upon preliminary prepared armored concrete foundation. • During the production time – tests, various certificates. Modern outward appearance and fit very well in the surrounding space.

19. Smart approach • Whoever is your EPC Contractor ask for : • System performance guarantee • System guarantee available • Insurance availability which will cover also your income loss from construction problems or system defects. • Bankable and certified company for design and EPC • Operation and maintenance guarantee minimum 10 years up to 25 years which is the guaranteed life of the system

20. Thank you for your attention!