Green Electricity Clearing & Settlement Company Private-Public-Partnership for the Austrian green electricity promotion system Implementation & handling and impacts of the promotion system for renewables Horst Brandlmaier Executive Director

Introduction statement Preliminary statement: “Feed-in tariffs as more efficient than investment grants (according to international expertises).” Reasons: Investors are less exposed to price volatility of the market Investors have more reliability in their cash-flows and can set up more reliable business plans That way private banks or donors have more confidence in the creditworthiness of their debtors Less speculative conditions for investments – independence from market price Promotion systems for renewable electricity power plants based on feed- in tariffs, are effective but quite complicated to handle. Somebody has to take the risk of balance energy, to run the daily forecast, clearing, billing system, cash settlement and reports to stakeholders. Public administration cannot do this  PPP-Model with an independent and reliable institution!

Introduction of OeMAG (Austrian PPP-Modell) OeMAG was established Oct Field A) The concession for handling the Austrian feed-in tariffs for renewable energy; given by the ministry in September 2006, start October 2006 Field B) Handling the investment grants for combined heat & power (biggest plant about 800 MW capacity) and middle hydro plants (more than 10 until 20 MW); since October 2007 Field C) Investment grants for small hydro plants (capacity until 10 MW); since October 2009 Some economic key figures Total turnover in 2008 ca. € 680 Mio Total of the balance sheet 2008 ca. € 147 Mio Administration volume about plants, more than 1000 different feed-in tariffs

Central duties & responsibilities of OeMAG A) Balance Group Responsible Forecast of production capacity  power-flow scheduling Balance energy management  risk taker - minimizing quantity Allocation of the renewable electricity to the trades (forecasted load flow progr.) B) Renewable Electricity Trader Technical and financial clearing & settlement Clearing, billing & cash settlement o about plants o more than different tariffs Customer service, contract handling, hosting datas... Homepage & Information (electronic application) IT & Data management Statistics Reporting to stakeholder and ministry

Austrian promotion model Balance group model and special case renewable electricity balance group Quelle: E-Control GmbH

Special case renewable electricity balance group

Challenge forecast effectivness (problem weather forecast & individual characteristics of the plant) Forecast model for windpower, hydropower and other plants Data baseLoad flow of feed in datas/ cut off Forecast of rainfall & river stage Weather forecast for wind power Forecast small hydro Forecast wind power & others

Flexibility of gas turbines  Green energy production – especially wind energy – requires an immense volume of balance energy  Besides hydroelectric power production, gas thermal power plants offer a readily available source of balance energy  Gas TPP’s may also be used for balancing gas-net  the offered flexibility can also be used for power spot and intraday markets GAS:0100% some hours to 3 minutes Coal:0100%½ day to 2 days Nuclear: 0100%week(s)

Energy statistics of the Austrian renewable electricity balance group Feed-in volume and costs 2008 Quelle: E-Control GmbH

Feed-in volume 2008 each category

11 Total of approved capacity of photovoltaic in Austria (partly in construction and not yet installed, 4Q/2001-4Q/2008)

Thank you for your attention! OeMAG Abwicklungsstelle für Ökostrom AG Alserbachstraße 14-16, 1090 Wien Dr. Horst Brandlmaier, MBA Tel.: +43 (0) – 90 Fax: +43 (0) – 96