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38 MW PV PLANT Giurgiu County - ROMANIA

48 MW PV PLANTCONTESTI DB - Dambovita County - ROMANIAJanuary , 2012Presentation to Potential InvestorsPhotovoltaic EngineeringBORRA Energy Danube Srl

Opportunity Background The Big PictureCapitalize 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)

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Tariff Review

Romanian Government undertaking for renewable energy, including hydro, concerns an increasing of renewable energy production vs. gross internal energy production at 48% 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-indexedCONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Projects Specifics

The Project has an installed power of 48 MW, being developed over a land with a surface of over 98 ha, divided in 5 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 30 years, starting January / March 2012. The location is conveniently placed from the access roads point of view and also in a very close proximity to one 110/20 kV distribution sub-station, owned by the local power distribution company (Electrica Muntenia), where The Project will be connected to the national power grid.

There is a double 110 kV overhead power line and a 20kV one crossing one of the 3 plots of land covered by the project, owned by the local power distribution company (Electrica Muntenia); the 20kV line will be used to connect the PV plant to the national power grid, for the internal services.

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.

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

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 Dambovita area is developed and offered by Energy Research Institute Italy, entity under coordination of the EU

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Solar Resource

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Projects layout

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Permitting process general overview:

According to the Romania laws, there are two key-permits to be obtained:

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;

The Connection-to-the-grid Permit (Connection Permit), following a procedure that includes, among getting few other additional permits, a Connection Solution Study performed by an authorized consultant.

Permitting process projects 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 May 2012.

The Connection Solution Study was conducted and the First Phase approval of the connection solution was obtained; Connection Permit is expected to be issued no later than April 2012.

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

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.)............

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Assumptions for revenues estimation:

Green Certificate priceConsidered 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, weve 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 ANREs 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 energyNo Romanians commitment considered to EU for market liberalisation of energy price

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

Proposed Selling Structure

.... ....

CONTESTI DB PV PLANTPhotovoltaic EngineeringBORRA Energy Danube Srl

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