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LOCAL and GLOBAL Highlights For The

BULGARIAN COMMUNITY OF CLEAN TECHNOLOGIES and SUSTAINABLE

DEVELOPMENT

Welcome to the first issue of the Bulgarian Cleantech community newsletter!

We, at Cleantech Bulgaria dedicate our efforts to develop the network that will bring together the business, society and policy makers for the sustainable future of Bulgaria. We believe that there can be few more pressing and critical goals for the future of humankind than to

ensure steady improvement in the quality of life for this and future generations, in a way that respects our common heritage –the planet we live on.

But moving towards greater sustainability will not happen without broad public demand for transformation – it will challenge individuals, institutions and societies to view tomorrow as a

day that belongs to all of us, or it will not belong to anyone. In other words, the change starts with the people.

Over the last three months, we have made further progress towards our objective of

fostering the development of the eco-conscious community in Bulgaria.

Among our various on-line and off-line supportive initiatives, our NEWSLETTER is designed to help you get oriented in the local attitudes and news, as well as in the global trends on

the sustainable business market. Each newsletter will arm you with the latest news, reports

and personal insights on a wide range of sustainable business topics so you can quickly and

easily keep on top of the rapidly shifting landscape of sustainable business.

The Newsletter will be issued on a quarterly basis (every 3 months) on an annual

subscription fee.

Membership in the Cleantech Bulgaria Network is free of charge. Join us here.

WHY we decided to start this NEWSLETTER?

:

Join us in instigating a cultural shift towards sustainable future!

:

3

CONTENT OVERVIEW:

What happened in the Bulgarian Cleantech

community in 2012?

Being the first attempt for periodic specialized

information and insights of the Bulgarian green

business scene, in this section of the newsletter

we aim to land some initial overview of the

activities and adjustments of this heterogenic

community.

Here you can find information for the major

events and initiatives of the Bulgarian clean

tech community that took place in 2012.

The importance of sustainability – diverse

perspectives is trying to present the insights

for sustainable development if a diverse group

of professionals – the point of view of a young

green-thinking entrepreneur, an

environmental- active NGO, a big eco-conscious company and last but not least – an innovative SME.

Think Global: Sustainability activity report is our financial overview for sept-nov 2012 for the global

cleantech scene trying to map the most important global activities on the clean technologies market and

translate it in a local context. Our report provides up-to-date information on the following topics:

Clean Energy M&A Transactions

Clean Energy Public Market Transactions

Clean Energy Project/Asset Finance

Clean Energy VC/PE Investments

Quarterly Feature Analysis

Upcoming events for the Bulgaran cleantech community in 2013 is our section intended to keep you

informed for the forthcoming events and initiatives at the Bulgarian green scene.

This issue features interview with the newest member of the Cleantech community – Mr. Doru

Dragomir who has just started the Cleantech Romania platform!

IN THIS ISSUE:

: CONTENT:

What happened in the Bulgarian Cleantech Community in 2012 :: p.3-6

The importance of sustainability – diverse perspectives :: p. 7-12

Think Global: Sustainability activity report :: p. 13-20

Forthcoming Cleantech Bulgaria initiatives in 2013 :: p.20-22

Disclaimer :: p. 22

Editorial team: Cleantech Bulgaria: Who are we? :: p. 23-26

4

2012 – SOME GREEN BUSINESS EVENTS :: BULGARIA

Forum for South-East Europe

Green Days 2012

Forum Green Economy 2012

Green Day Forum

Green Business Forum

Sustainability Forum Sofia

What happened in the Bulgarian Cleantech Community in 2012?

:

5

SOME OF THEM WERE:

SOFIA SUSTAINABILITY FORUM

PASSIVE HOUSE BULGARIA

HOW TO GROW

SOFIA DESIGN WEEK 2012 - LINK TOGETHER 2

GCCA LATER STAGE AWARD 2012, Atlanta

ENVORITECH & SLEAN ENERGY INVESTOR SUMMIT 2012, London

EUROPEAN CLEANTECH CHALLENGE 2012

GREEN ACADEMY TRAINING /AVAILABLE IN BULGARIAN/

EARTH HOUR 2012

2012 - CLEANTECH BULGARIA IN PARTNERSHIPS

PARTNERSHIP

:

6

2012 – WHAT DID WE ACHIEVE IN ONE YEAR?

Green Office Week 2012 - Changing the organization from the inside out Green Office Week

improves the working environment, integrates guidelines for environmentally sustainable behaviour,

motivates the employees and creates conditions for a more pleasant and healthy working

environment. In the campaign participate 40 Bulgarian big and medium companies and covered

about 15 employees.

Green HR Forum 2012 – An event is focused on current trends in the management and development

of sustainable business in Bulgaria in the Green HR field. The aim is to enforce the implementation of

sustainable "green" practices in the companies. Over 70 professionals took part in Green HR Forum

2012 and exchanged their views about the “green” path that the Bulgarian business should pass

through to achieve sustainable results.

Xmas Recycling Day 2012 – Between 26 November and 14 December, when Christmas is already at

our door-steps, the companies encourage responsible behaviour of their employees, trough creating

recycled Christmas office decorations, saving resources and motivating sustainable consciousness.

You still have a chance to participate and create extraordinary Christmas mood in your offices. Don’t

miss it! This project was participated in European Week for Waste Reduction 2012.

Green Bulgaria Award - Cleantech Bulgaria won a prize of Ministry of Environment and water Green

Bulgaria 2012 for the successful initiative Green Office Week 2012.

7

CLEANTECH ENTREPRENEUR

BOGDANA RAKOVA

Expertise: technology, innovation, artificial antelligence and robotics

The PowerHome team led by Bogdana Rakova won the third edition of the Sofia

StartUP Weekend series – an integrated open-software and hardware solution for

smart management in household.

Is "green economy" becoming a need?

Slowly, at least in Bulgaria, however worldwide more and more people and emerging companies are

looking into cleantech. I think we need to take full advantage of the latest technologies, talk more

about the possibilities and follow other examples we can find in Germany, New Zealand, California

and others. Innovative emerging companies are bringing these latest technologies closer to the

people by making them more understandable and easy to manage. The truth is that most

homeowners could make changes to save energy, but don’t know which changes would make the

biggest difference. As a whole in the next 15 to 20 years clean technologies will definitely be part of

our lives and we would have tons of ways to manage them.

What does sustainability mean for you and your organization?

For me the future of cleantech is into improving energy storage and moving towards distributed

energy architecture. The current centralized architecture of energy is one that Edison,

Westinghouse, and Tesla would feel comfortable with: large power plants ‘out there’ that generate

electricity and millions of smaller ratepayers consuming it. We get a monthly, sometimes

indecipherable, and that’s the extent of our communications with the power provider or even our

understanding of our own power usage. What is emerging is a more distributed architecture where

independent power producers are generating electricity from thousands or millions of smaller

power plants.

Which are the "green" steps in the development of your organization?

The project I am working on now is all about being more energy efficient at home. Our idea is to

build a platform that would help people leverage the versatility of the smart grid by giving them

more granular access and control over their consumption. We are looking at this from the

perspective of giving the consumers a way to create measure and compare household specific

scenarios to save energy. We’re looking at the home as a key place that needs to change and help us

be more energy efficient. Our smart home-automation system relies on our own microcontroller

(based on open source hardware controller from Olimex) which can work together with existing

measuring devices and sensors. We would use Artificial Intelligence to learn from the everyday

usage and data generated by these otherwise passive devices. The measured data is anonymously

collected and analyzed on our servers where we run numerous algorithms to identify behavior

THE IMPORTANCE OF SUSTAINABILITY – DIVERSE PERSPECTIVES

:

8

patterns and to generate templates which we push back to each household to help them seamlessly

reduce the energy consumption without losing comfort. We call it Hut grip - a way to get a grip on

your home and make it more energy efficient!

CLEANTECH BUSINESS

OLGA STOICHKOVA

Expertise / Position : Leasing Manager of Sofia Airport Center, Tishman

International

Is "green economy" becoming a need?

The green economy is absolute necessary in modern business. In addition to reducing operating

costs, which has a direct financial impact through green policies the company take a position front of

customers as a socially responsible one. Employees are bound to cause. All this builds long-term and

stable position for the company.

What does sustainability mean for you and your organization?

For us sustainability is several things: value, purpose, need, a better future.

Which are the "green" steps in the development of your organization?

This is not a step, but way. The investment in green buildings is the result of long-term strategic

planning and we create this project in mind for the future.

Do you expect a positive change in the field of clean technologies in Bulgaria?

Is no other way and change will happen.

9

CLEANTECH BUSINESS

LIDIYA KOSTOVA

Expertise / Position : PhD, owner of Interiorprotect Ltd.

Is "green economy" becoming a need?

Business is facing the inevitable break down of the old economy model of ever-greater consumption,

with growth at any price. Globally, there is already clear features that differentiate sustainable

companies from the rest, including a clearly stated long-term view on their integration within the

community they operate in decision-making; taking moderate risks; applying resource-conscious

strategies, LEAN management and sustainable metrics, and learning from the environment.

What does sustainability mean for you and your organization?

I established my company, Interiorprotect Ltd. in 1997 as an innovative enterprise for development and

production of flame retardants applied for fire protection of textile materials. And since I strongly

believe that innovations and environmental consciousness are the key to progress, all the products and

services that the company is developing are inspired by this concept.

Which are the "green" steps in the development of your organization?

Actually, the success of my company is based extremely on its eco-orientation.

Our products are ecologically appropriate and environment friendly, they are biodegradable and

completely harmless with no acute toxicity to mammals, neither by oral, dermal or inhalation exposure.

It is also not classified as a skin or eye irritant. There are no indications of allergenic or mutagenic

potential.

So, I would say that Interiorprotect Ltd. owes it success entirely on thinking green, because our fire

retardants managed to do an international breakthrough because they surpass their competitors on the

global market namely with their environmental performance indicators.

Do you expect a positive change in the field of clean technologies in Bulgaria?

Positively yes!

10

CLEANTECH NGO SECTOR

VLADIMIR DIMITROV

Expertise / Position :: Managing director of Bulgarian Association of

Recycling

One of the most frequently cited definitions of green economy is the program of the United Nations

Environment Programme (UNDP), stating that this is an economy that results in improved human

well-being and social equity, with significantly reduced environmental risks. The increasing

consumption of resources, which we have seen in recent times resulting in the need for their

revision and preparation for reuse. For example, metal - metal is a commodity that can be recycled

an unlimited number of times, quality and value are preserved. Different types of metals are

discarded everywhere - such as auto parts, cans etc. Most of these materials can be recycled and

have great value. Recovering metals also benefit the economy, which helps the environment.

Through this recycling conserves natural resources such as metal is reused for different purposes.

This saves energy. Eco topic became all the rage in today's economy - a new fashion industry, food

and all of our lives. How sad is that it was therefore forced us to look around us. Each subsequent

issue of nature bothers us more and more. Eventually we got to the situation we have now. All

should become - responsible, but somehow late. The end result is there - steady decline in natural

resources, so do not waste your vain and recycle!

11

70

90

110

130

150

170

190

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Rebased - Q1 2011 = 100

0

50

100

150

200

250

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Rebased - Q1 2011 = 100

70

80

90

100

110

120

130

140

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Rebased - Q1 2011 = 100

Highlights

Global investment in clean energy totaled USD 56.6bn in the third

quarter of 2012. This was down 5% on the second quarter and 20%

lower than in Q3 2011

Asset finance of utility-scale projects such as wind farms, solar parks and

biofuel plants fell 10% to USD 32.3bn..

Venture capital and private equity investors ploughed just USD 1.3bn

into clean energy firms in Q3 this year, down 20% on the second quarter

and 34% lower than the third quarter of 2011. Among the few large

deals were a USD 200m funding round for US installer Solarcity

Corporation, and a USD 104m round for biofuel developer Elevance

Renewable Sciences, also of the US.

Investment in quoted clean energy companies on the public markets has

remained very sluggish. It totaled just USD 1.8bn in the third quarter,

although this was enough to represent an increase of 47% on the

second quarter and 28% on Q3 last year.

Clean energy share prices bobbed around in Q3, but ended up almost

where they started. The closing figure of 116.69 for the WilderHill New

Energy Global Innovation Index, or NEX, which tracks 98 clean energy

stocks worldwide, left it 8% down for the year as a whole.

A sector split of the Q3 investment total shows solar leading with USD

33.8bn, up 1% on Q2 but down 22% on the third quarter of last year;

wind is second with USD 15.5bn, down 26% on the quarter and 23% on

the year; small hydro (projects of 50MW or less) is a distant third with

USD 3.5bn; biomass and waste is fourth at USD 2bn, energy-smart

technologies fifth at USD 800m, and biofuels sixth at just USD 700m.

A geographical split shows investment in the US in Q3 at USD 7.3bn,

down 28% on Q2, and 62% on Q3 2011. China saw investment slip 17%

on the quarter to USD 14.8bn, although this was up 6% on the same

three months last year. India’s investment fell 16% on the quarter to

USD 1.5bn and was 60% down from the same quarter in 2011, while

Brazil showed a 94% increase on the quarter to USD 1.9bn, some 24%

up on the year. Investment in Europe was USD 18.2bn, down 2% on Q2

2012 and 29% on Q3 2011.

The challenges facing clean energy in the third quarter continued to

include policy uncertainty in key markets such as the US, the UK and

Italy, and the dampening effect of low sector share prices on public

market and venture capital investment. In addition, the recent sharp

falls in the costs of wind and solar photovoltaic technologies have meant

that the same megawatt capacity can now be purchased for significantly

fewer dollars.

Cleantech Bulgaria Monthly Investment Research:

Green Energy M&A Value

(Q1’ 2011 – Q3’2012)

Gleantech Indices (Q3’ 2012)

Public Market Green Energy Transactions

(Q1’ 2011 – Q3’2012)

Green Energy Project Finance

(Q1’ 2005 – Q3’2012)

Clean Energy Investments December 2012

12

53.9

71.8 70.7

58.0

48.0

59.656.6

0

10

20

30

40

50

60

70

80

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

All Investment in Clean Energy (2011-2012)

USD bn

Global investment in clean energy totaled USD 56.6bn in the third quarter of 2012. This was down 5% on the

second quarter and 20% lower than in Q3 2011. The drop was partly due to weaker figures from the US and

India as well as a lull in wind farm financings. The new figures suggest that the full-year 2012 figure for

investment in clean energy is likely to fall short of last year’s record USD 280bn. If so, 2012 would be the first

down-year for world investment in the sector for the last eight years. As a whole, investment was slightly down

in Q3 2012 as logical response to some negative regulatory developments (especially in Europe and the US) in

the second half of 2012 with largest investments going to the Asia-Oceania region. Within countries, largest

green energy investment projects went to China, Brazil and Morocco. Although investments in Europe and the

USA have been slightly decreasing, the long – term effect of the new regulations is still unclear and it could not

be expected that it will change the strong appeal of RES assets to a variety of investors. There have also been

some drops across all different investment classes – M&A, project finance and venture capital/private equity,

yet the effects are far from uniform as some investment classes showed upward movement.

Figure 1: Total Global Investment in Clean Energy (2011-2012)

Source: Bloomberg New Energy Finance

Main challenges for the development of global green energy industry

The challenges facing clean energy in the third quarter continued to include policy uncertainty in key markets

such as the US, the UK and Italy, and the dampening effect of low sector share prices on public market and

venture capital investment. In addition, the recent sharp falls in the costs of wind and PV technologies have

meant that the same megawatt capacity can now be purchased for significantly fewer dollars.

Questions over policy-makers' commitments, an atmosphere of fiscal austerity in Europe and the USA and the

comparatively low clean energy share prices are decreasing investor enthusiasm. In addition, sharp falls in wind

and solar photovoltaic (PV) technology costs mean the same megawatt capacity can now be bought for fewer

dollars.

Clean energy trade tensions escalated. The European Commission launched an anti-dumping investigation of

Chinese PV equipment makers. The US unveiled preliminary duties on Chinese-made wind towers. China has

started an anti-dumping and anti-subsidy investigation of US polysilicon producers. The World Trade

Organization has appointed a dispute panel to examine US tariffs on Chinese-made PV equipment.

I. General Green Investment Overview

13

21.0

10.4

25.2

0.0 5.0 10.0 15.0 20.0 25.0 30.0

EMEA

Americas

ASOC

Geographic Breakdown

USDbn

Manufacturing Components Market Developments

Solar PV equipment prices in Q3 hit new all-time lows with the global average spot price for polysilicon falling

below USD 20/kg. Chinese-made multicrystallline modules slipped 9% from August to September alone to USD

0.77/W. The global price hit USD 0.88/W.

Wind turbine prices are leveling off and actually inched up 2% during the first half of 2012, as buyers turned to

newer, higher efficiency models that are pricier. Turbines for delivery in H2 2013 are now averaging EUR

0.95m/MW (USD 1.23m/MW).

The lithium-ion battery market remains massively over-supplied suggesting a decline in electric vehicle prices is

on the way soon.

Figure 2:Geographic Distribution of Green Investment Activity:

Source: Cleantech

EMEA

The quarter to quarter investment fall was not spread evenly across the three geographic regions. Total

investment in the Europe Middle East and Africa (EMEA) region actually rose to USD 21bn in Q3 from USD

19.6bn from Q2, but was off substantially from the USD 26.2bn invested in Q3 2011 and the all-time high

quarterly investment of USD 29.8bn in Q2 2011. EMEA investment was bolstered by financings of major solar

thermal and wind projects in Morocco.

II. Geographic Distribution of Green Investment Activity

14

13.4

16.7

27.6

16.017.5

11.78.5

0

5

10

15

20

25

30

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Acquisition Transactions (2011-2012)

USD bn

Americas

Investment in the Americas (AMER) region slipped to USD 10.4bn in Q3 from USD 13.8bn in Q2 and from USD

22bn in Q3 2011. The US was largely responsible for the region's decline as total investment in the country fell

to USD 7.3bn from USD 10bn in Q2 and from a record USD 18.9bn in Q3. Looming expiration of the federal

Production Tax Credit (PTC) supporting the wind sector was at least partially to blame. Meanwhile, Brazil

attracted USD 1.9bn in the quarter, up 94% from the prior quarter and up 24% from the same year-earlier

period.

ASOC

Investment in the Asia-Oceania (ASOC) region slipped only slightly to USD 25.2bn in Q3 from USD 26.1bn in Q2

but was up substantially from the USD 22.6bn invested in Q3 2011. China attracted USD 14.8bn in Q3, down

from USD 17.9bn in Q2 but up from USD 14bn in Q3 2011. India’s investment fell 16% on the quarter to USD

1.5bn and was 60% down from the same quarter in 2011.

M&A

M&A include only acquisitions of already existing plants, green energy utilities & related assets mainly by other

energy/utility companies (without institutional investors).

By the end of Q3 2012, the M&A market continued showing signs of cooling. In the final quarter, the value of

announced M&A acquistions declined 18% to USD 8.5bn compared to USD 11.7bn in Q2 2012. Table 1 shows the

largest transactions below (with announced values) highlights the sector’s appeal to a broad range of acquirers,

including utilities, financial investors and corporates around the world.

Figure 3: Global Green Energy M&A Transactions – acquisitions only

Source: Bloomberg New Energy Finance

III. Distribution by Investment Class

15

Name of Target Country Sector Value /mln/ AcquirerQ-Cells SE Germany Soar $313.10 Hanwha Group

Wind farms (900MW) - Gode Wind Germany Wind $193.30 DONG Energy A/S

Trattamento Rifiuti Metropolitani Spa Italy Recylcing & Waste $196.50European Investment Bank,

Undisclosed, BNP Parisbas SA

Wind farm (16 MW) - Bagmoor, Wind farm (65MW) - Scout

Moor, Wind farm (21.25 MW) - Tir MostynUK Wind $234.20 Munich Re

Solar plant (60.40 MW) Karadzhalevo Bulgaria Solar $219.90First Reserve Corp., Crescent Capital,

Acwa Power

Name of Target Country Sector Value /mln/ Acquirer(s) Acquirer's country Stake (%)SunPower Corp. USA Solar $1,380.00 Total SA France 60

Wind farms (480MW) - Iowa, Texas and others USA Wind $900.00 Algonquin Power & Utilities Corp. Canada 100

Wind farms (443MW) - Castilla y Leon province Spain Wind $877.00 Bridgepoint UK 100

Wind farm (277MW) - Borkum Riffgrund 1 Germany Wind $836.00 KIRKBI A/S, Oticaon Foundation Denmark 50

Hansen Transmissions International NV Belgium Wind $725.00 ZF Friedrichshafen AG Germany 26

NVP SA Brazil Wind $621.00 CPFL Energias Renovaveis SA Brazil 100

Solar plants (86MW) - Ontario Canada Solar $454.00 TransCanada Corp Canada 100

Desenvix Energias Renovaveis SA Brazil Wind $440.00 Statkraft Norfund Norway 40.65

Nuova Rete Solare Srl Italy Solar $376.00 Terra Firma Capital Parnters Ltd. UK 100

Lac Alfred Canada Wind $330.00 Enbridge Inc. Canada 50

Marubeni Corp., Innovation Newtwork

Corp. of Japan$324.00WindGunfleet Sands

Wind farms (140MW) - Galicia, Castilla-La

Mancha, Catalunia and La RojaSpain Wind $315.00 Canepa Asset Management

Seajacks International Ltd. UK Wind $850.00

Hydro

Spain 100

Marubeni Corp., Innovation Newtwork

Corp. of Japan100

Demeter Partners Cube Infrastructure

Fund

Japan

France

JapanUK

Renewable Power International SL Spain and Portugal 100

49.9

$330.00

Table 1: Global Most Significant M&A Green Energy Transactions (May’2011-

Q3’2012)

Source: KPMG

Table 2: Q3 2012 Most Significant M&A Green Energy Transactions in Europe

Source: Clean Energy Pipeline

Project Finance and Venture Capital/Private Equity Investments

Project finance statistics include all greenhouse investments e.g. financing the brand new projects

(solar/wind/biofuel plants) throughout the world. Venture capital/private equity investments encompass

investments by institutional investors only.

Asset finance of utility-scale projects such as wind farms, solar parks and biofuel plants fell 10% in Q3 to USD

32.3bn from the prior quarter. There was a bigger decline when compared to Q3 2011, when asset finance

reached USD 49.5bn thanks in large part to the final rounds of the American Reinvestment and Recovery Act,

(ARRA) which funded innovative technology projects under the US federal loan guarantee program.

The location of some of the biggest projects financed highlighted a geographical shift, with established markets

such as the US, Europe and China losing momentum while newer markets in South America, Asia and Africa

picked up steam. For the top project finance investments for the last 18 months are present in Table 4. The top

three projects getting the financial go-ahead between July and September 2012 were:

16

29.5

47.349.5

38.4

24.0

36.032.3

0

10

20

30

40

50

60

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Project Finance Investment (2011-2012)

USD bn

12.7

6.0

3.8 3.6

2.1 1.8 1.4 1.0

0

2

4

6

8

10

12

14

China Europe United States

Other ASOC

Other EMEA

Brazil India Other AMER

Total Project Finance Q3 2012 - Geographical

Breakdown USD bn

Masen Ouarzazate solar thermal plant phase one in Morocco, at 160MW

and USD 1.2bn;

Nareva and International Power Tarfaya wind farm, also in Morocco, at

300MW and USD 563m;

Verace wind portfolio in Brazil, at 258MW and USD 497m.

The fourth largest asset finance deal was a Chinese wind farm, and the

fifth an Australian wind project. The largest financing of undisclosed value

was the Ukrhydroenergo Dnieper River Small Hydro Portfolio consisting

of 22 projects with a cumulative capacity of 980MW in Ukraine.

Venture capital and private equity investors ploughed just USD 1.3bn into clean energy firms in Q3, down 20%

from Q2 and 34% lower than Q3 2011. Among the few large deals were:

USD 200m funding round for US installer Solar City Corporation

USD 104m round for biofuel developer Elevance Renewable Corporation

Figure 4: Green Energy Project Finance Investment (2011-2012)

Source: Bloomberg New Energy Finance

Figure 5: Green Energy Project Finance Investment (2011-2012) – Geographical

Breakdown

Source: Bloomberg New Energy Finance

17

15.1

11.2

3.42.0

0.4 0.2 0.020

2

4

6

8

10

12

14

16

Total Project Finance Q3 2012 - Subsector

BreakdownUSD bn

Name of Target Country Sector Value /mln/ Deal Status Transaction Type

Nareva & International Power Tarfaya Turkey Wind $563.30 Completed New build

Datang Aqi Hanshan Wind Farm Site China Wind $463.50 Completed New build

TrustPower Snowtown Wind Farm Phase II Australia Wind $459.00 Completed New build

Canadian Hills Wind Farm USA Wind $440.00 Completed New build

South Korea West Sea Offshore Wind Farm Phase I South Korea Wind $373.00 Completed New build

Kyocera Nanatsujima PV Plant Japan Solar $280.60 Completed New build

Hebei Construction Weichang Yudaokou Village Wi China Wind $332.80 Completed New build

Northland Power Eastern & Central Ontario PV Port Canada Solar $280.60 Completed New build

Energisa Renascenca Wind Portfolio Brazil Wind $278.60 Completed New build

Mt Merser Wind Farm Australia Wind $267.00 Completed New build

MVV Umwelt Plymouth Waste-t-Energy Plant UK Biomass & Waste $244.54 Completed New build

Lodos Elektrik Karaburun Wund Farm Turkey Wind $227.00 Completed New build

ERB Dow Aratu Biomass Plant Brazil Biomass & Waste $133.00 Completed New build

Newcom Salkhit Wind Farm Mongolia Wind $122.10 Completed New build

JGC Oita Sunflower PV Plant Japan Solar $100.80 Completed New build

ReNew Jatj Wind Farm Idia Wind $88.21 Completed New build

RP Global Danilo Wind Farm Croatia Wind $86.60 Completed New build

Datang Eryan Wind Farm Phase IV Enzhaoshan China Wind $75.30 Completed New build

Guodian Yuanmou Leiyingshan Wind Farm Phase I China Wind $74.00 Completed New build

PdVSA Guajira Wind Farm Phase I Brazil Wind $70.00 Completed New build

Figure 6: Green Energy Project Finance Investment (2011-2012) –Subsector

Breakdown

Source: Bloomberg New Energy Finance

Table 3: Most Significant Global Project Finance Investments (May’2011-Present)

Source: KPMG

As is the case with businesses at large, renewable energy production did not remain unaffected by the

current crisis. In addition, the current unfavorable policy changes surrounding the green energy industry also

have some negative impacts however the long-term effect of this is still unclear. In terms of new investment and

institutional investments, USA will continue to be the leader while Asia is most active in building the RES sector

as well. So-called “frontier markets” such as countries in Latin America and the Middle East show exponential

growth trends.

IV. Quarterly Feature: Policy Framework & Outlook for the Sector

Development

18

Spain 14-Sep 6% additional tax on revenues

generated from electricity

Subject to parliamentary approval

Bulgaria 17-Sep Up to 39% on solar and 10%

onshore wind – additional tax on

revenues from renewable electricity

to pay for "difficulties in integrating

renewable power supply"

18 September, immediately after

announcement

Greece 28-Sep Temporary tax on renewable power

producers proposed by the deputy

energy minister Asimakis

Papageorgiou

Not yet specified

Country Date of announcement Tax Date of enforcement

Europe

Policy makers in a number of markets where clean energy has traditionally thrived continued to scale back subsidies

and other supports through Q3. In the cases of heavily leveraged nations, fiscal austerity concerns are partly to

blame. In others, policy-makers are simply seeking to stretch taxpayer or ratepayer funds further while keeping pace

with the extraordinary drops in clean energy costs.

Until recently, tax policy as it has been applied by policy-makers around the globe has been used to subsidize clean

energy or punish dirtier forms of generation. Tax credits have been applied in the US and elsewhere to spur growth.

Carbon taxes, climate change levies and the like have always encompassed the "polluter pays" principle and been

used elsewhere. In Q3 2012, however, policy-makers in three EU nations have replied to somewhat populist claims

for the cost of the share of renewable energy in utility bills and further began to regard the clean energy sector as a

source of potential tax revenue generation.

Table 4: Q3 Green Energy Tax Introduction in Europe

Source: Relevant National Ministries

All three measures supposedly aim to help utilities and transmission system operators cope with the rising costs of

absorbing increasing supply of intermittent, renewable power – whether it is the tariff cost (Spain) or the increasing

costs of balancing electricity supplies (Bulgaria). While the proposed tax in Spain is moderate and was expected by

the industry, the radical announcement in Bulgaria and its retroactive effect were an unpleasant surprise to the PV

sector.

This is visible throughout Europe and beyond, taking the form of a faded support for renewable energy

development. Yet, some countries are willing and able to maintain their transition toward renewables as a way to

sustainability in the long run, while others seem poised to throw out the baby with the bath water.

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Germany is an example of the former case, holding firmly to its decision to move from nuclear to renewable

energy production, despite the price associated with such an abrupt move. Germany has gradually reduced

incentives for RES development, while not killing the industry and breaking World records in renewable

energy production in the process (i.e. on May 26, 2012, the country met 50% of its midday electricity needs by

generating 22GW per hour from solar). The Germans proved more resilient in their transition to renewables

retaining popular support for RES and against nuclear, as compared to the British population, for example.

Once a forerunner in the renewables discourse, the UK is currently lost in rhetoric, and its self-proclaimed

“greenest government ever” has been most active in watering down more decisive action on climate change

at the EU level. Newer member countries also stand divided in their RES discourse. Romania proclaimed its

intention to substantially develop its RES industry (e.g., solar) in the coming few years, while Bulgaria is

essentially driving out RES investors with its new law on renewable energy. Further, among other forerunners

in the North of Europe, Norway most notably retains a sizeable support for the development of renewable

energy production not only at home, but also abroad.

Americas

Across the ocean, the USA in a unique position with a shale gas revolution that generally reduces the urge to

develop RES. Yet, despite heavy critique over subsidizing the RES industry and a handful of bankruptcy cases of solar

producers, President Obama has reiterated his support for developing US’ renewable energy sector as a long-term

strategy for energy independence and sustainability. Moreover, together with Israel, the US retains its support for

R&D in the field of renewables, with some of the most innovative ideas (e.g., solar highways or double-sided solar

panels that can be mounted to highway noise barriers) stemming from these two countries.

China

In the midst of the above rhetoric, China is quietly building its own RES sector (e.g., especially notable are its rates

of installing solar capacity). China is well suited to do so, as the biggest player on the solar panels market, a country

faced with a rapidly growing demand for energy, and a nation having the necessary financial resources and human

capital to develop its RES sector. India has opted for wind, while Japan is yet to decide on its post-Fukushima

discourse. All in all, in light of climbing prices of conventional energy sources (i.e. with the exception of US shale gas,

the exploration of conventional sources through unconventional means is expected to increase prices), sustaining a

transition toward renewable energy production (the prices of which are notably falling) is a long-term strategy for a

stable and more sustainable development.

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Green Business Network The new business club in Bulgaria. Green Business Network encourage

business representatives to develop sustainable corporate culture issues, green jobs, healthy environment,

care for the environment and employees, new business perspectives, opportunities and markets. Host of

the meetings will be Sofia Airport Center – the first green business building in Bulgaria.

Green Academy Green Academy is focused on the development and application of innovative ideas

about organizational culture and change in the environmental context, based on a guiding philosophy of

client-based innovation. The Academy promotes new thinking on achieving breakthroughs in higher

performance, developed through active collaboration with clients and thought leaders around the world. The project is focused on 3 main fields: Green Management, Green Jobs and Green Future.

Waste Office Week 2013 This will be the second part of annual initiatives which are dedicated to

the employees in different Bulgarian companies and their environmental responsibility. The initiative will

be accompanied by interesting and motivating materials, online communication architecture for

employees, recycling challenges and workshops. The concept is based on past Green Office Week.

Open Innovation Challenges Innovative online approach used in the global market as one of the

most successful ways for companies to reach the most innovative solutions for their business, relying on

external experts and specialists. The method makes it possible to save financial and human resources and

has a strong image effect.

We have the pleasure to introduce you our new follower!

Mr. Doru Dragomir is managing partner of one of the leading HR consultancy companies in Romania.

Inspired by the high start of Cleantech Bulgaria, Mr. Dragomir decided to initiate the creation space for the

green community in Romania starting from 2013.

We wish him good sustainable start! Here are some thoughts from Doru for the importance of sustainable

development:

FORTHCOMING CLEANTECH BULGARIA INITIATIVES IN 2013

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CLEANTECH INTERNATIONAL

DORU DRAGOMIR

Expertise / Position: Founder of Cleantech Romania

Is "green economy" becoming a need?

Let’s start the discussion by clarifying this term. What is the “need” for our economy and especially for our society,

and is this different from what the economy and society “want”? Because, if we are looking around us we are seeing

that most of the new technologies that we are developing are created in order to undo the harm that older ones are

making. And there is also another important point that we have to take in consideration: all this new technologies,

more efficient in making new products, are helping the economy to produce more things, therefore unit price goes

down and consumption goes up. If we agree to say green economy means any type of innovative technology or

activity that is sustainable for sure we can say is a need.

What does sustainability mean for you and your organization?

I don’t believe that can be more than one definitions for the term of sustainability. Or at least this term should have

same meaning and that is the only solution for our society for getting to the next level. In Cleantech Romania we

believe that the new challenge in our life and in our economy is the art of keeping the life standards that mankind

have without harming the environment around us. And this is why our organization mainly exist, to link the interests

of all the stakeholders in economy and to protect our environment in the process.

Which are the "green" steps in the development of your organization?

We in Cleantech Romania do not believe in extreme solutions, we believe in development in a sustainable way that

will help us to have the vital resources we need for getting to our goals. We are still at the beginning of our journey,

but we all believe that innovation is the right answer for the future of all organizations. And when I say innovation,

that not necessary mean to invent new technologies but to think of the small details that can make the difference

and can make you or your organization to become more productive with less resources.

Do you expect a positive change in the field of clean technologies in Romania?

Romania already made some steps in the right direction. And when I’m saying Romania I’m referring to most of the

stakeholders of Cleantech Romania. Investors in green areas are already present in Romania, in all green energy

fields – wind, water, PV. Our construction field developed already a couple of projects that include Green Buildings

certified by different international authorities. Most of the new construction projects in Bucharest especially are

green buildings. A big number of companies are starting to involved themselves in green projects, projects dedicated

to regenerate the environment. At the legislative level Romania comply with all EU laws regarding environment.

Also very important is the level of awareness among people this topic has. There are a lot of projects that were

made or still are in progress that started as personal ideas of individuals and were considered by different entities –

companies, NGO, others – good programs and where putted in practice.

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Cleantech Bulgaria is also the first professional network for clean technologies and sustainable

development. We want to introduce you several free charge options for your active involvement and

cooperation in the platform which you can use:

In the Marketplace section you can:

Create your Company or Service Provider profile, extending your activities among a large Cleantech

community of professionals, entrepreneurs, companies and institutions.

Post vacant positions in your company and reach high qualified specialists in the field of clean

technologies

Explore new Cleantech projects in the field of clean technologies, renewable energy, energy efficiency etc.

In the Community section you can:

Publish and share news and knowledge, distributing important for the Bulgarian and global Cleantech

community information

Announce upcoming Cleantech events

Discuss current topics and create new contacts

This document has been issued by Cleantech Bulgaria (“Cleantech Bulgaria”), which is Authorised and

Regulated by the Financial Services Authority in Bulgaria. Cleantech Bulgaria only undertakes engagements

involving “Professional Clients” and “Eligible Counterparties” as defined by the Markets in Financial

Instruments Directive (“MiFID”). This document has been prepared by Cleantech Bulgaria for informational

purposes only. Although the information in this document has been obtained from sources which Cleantech

Bulgaria believes to be reliable, we do not represent or warrant its accuracy and such information may be

incomplete or condensed. This document does not constitute a prospectus and is not intended to provide

the sole basis for any evaluation of the opportunity discussed herein. All estimates and opinions included in

this document constitute our judgment as of the date of the document and may be subject to change

without notice. Changes to assumptions may have a material impact on any recommendations made herein.

Cleantech Bulgaria will not be responsible for the consequences of reliance upon any opinion or statement

contained herein or for any omission. This document is confidential and is being submitted to selected

recipients only. It may not be reproduced (in whole or in part) to any other person without the prior written

permission of Cleantech Bulgaria.

ONLINE PLATFORM

DISCLAIMER

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All rights reserved. Reproduction by permission only of the Author of this document, Cleantech Bulgaria.

Copyright and Intellectual Property Right Ownership: This document and all Information therein, contains

material owned by either Cleantech Bulgaria or its Information Providers which is protected under copyright,

trademark and other intellectual property laws. Neither this report nor any part of it may be reproduced,

stored in a retrieval place or transmitted by any means, electronic, mechanical, photocopying, recording or

otherwise without the prior written permission of Cleantech Bulgaria. Cleantech Bulgaria and its Information

Providers, as applicable, own the copyright to all Information and works of authorship. All trademarks,

service marks, and logos used on the document are the trademarks, service marks, or logos of Cleantech

Bulgaria or its Information Providers, as applicable.

Mariana Hamanova an entrepreneur, co-founder of the Expert Network Cleantech

Bulgaria, which seeks to develop clean technologies and to support sustainable business in Bulgaria.

Mariana is the creator and the "heart" of Cleantech Bulgaria. She is the engine of all projects,

campaigns and Cleantech Bulgaria’s national and international partnerships.

Mariyana graduated sociology in Konstanz, Germany and holds MBA degree. She returned to

Bulgaria and started with a group of young enthusiastic people the initiative Back2BG, already 4

years old. Mariyana is Chairman of the Foundation "Identity for Bulgaria" and believes strongly in

the potential of the country.

“The project Cleantech Bulgaria is the next challenge for me. Clean technologies and sustainable

development topics are discussed widely nowadays and I believe Cleantech.BG platform gives

Bulgaria a great opportunity to build its Cleantech Community of companies, professionals and

organizations and makes the country a competitive partner on the European and the world

Cleantech scene.”

OUR TEAM

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Temenushka Spirova is a project manager at Cleantech Bulgaria, a conceptual and

operational contribution to any successful event or project organization. With never-ending

enthusiasm she guides the interactive communication platform and unconventional initiatives and

helps to build the sustainable relationship between the companies and the environment.

Temenuzhka graduated Public Administration at the Sofia University St. Kliment Ohridski. and an

international master program "EU Law" - joint program of Sofia University and European university

center of Nancy, Strasbourg.

Her previous work experience is related to event management and marketing in the field of

renewable energy, energy efficiency and EU projects. At the moment she is a part of Cleantech

Bulgaria team and is responsible for developing partnerships with potentional clients and partners-

cleantech companies, NGOs and public sector.

Maria Alexandrova project and open innovation manager in the Cleantech Bulgaria

and is working for the development of the Web 2.0 based platform dedicated to the green business

community.

Maria has a degree in textile engineering technology at the Technical University in Sofia and Master

of International Economic Relations of the World Economy.

She has extensive experience as a consultant on innovation development and transfer of technology

and managed a number of industry focused European projects. Among her professional interest are

the topics of innovation potential assessment, foresight prognostic tool and environmental

performance.

Martin Tsanov is an Analyst at the Economic Program of the Center for the Study of

Democracy, while also contributing as a Research Analyst at Cleantech Bulgaria. Mr. Tsanov’s work

at CSD covers macroeconomic competitiveness, financial flow analysis, energy security, green

energy economics, hidden economy and anti-corruption.

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Martin holds a MSc in European Political Economy, London School of Economics and Political

Science, London, UK and a B.A. degree in Political Science and International Relations, Whittier

College, Los Angeles, California, USA.

Mr. Tsanov worked as Research Analyst at Grisons Peak LLP in London (boutique M&A investment

bank) where he was responsible for designing the quarterly M&A research publication “China

Outbound Investments” by collecting information on M&A/equity and non-equity Chinese

outbound investments (including intergovernmental trade agreements and bank loans) and writing

the quarterly report documents. He also prepared macroeconomic newsletter materials for

proprietary research clients on key macroeconomic trends and developments in the Central and

East Europe (CEE) region.

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