Wind Power in Bulgaria and the Region: Key Challenges VERBUND Renewables Wind Power in Bulgaria and the Region: Key Challenges Dieter Meyer, Sofia, 4.4.2012

VERBUND at a glance Austria’s leading electricity company Covers some 40% of Austria’s electricity requirements – approx. 90% of which is derived from renewable hydropower Leading hydropower-producer in Europe 196 TWh trade volume, active in 18 European countries 24,2 TWh generation from renewables – enough to supply 7 mio. households International generation capacity in: Albania, Bulgaria, France, Germany, Italy, Romania, Spain and Turkey Some 3,000 employees Key Financials € mio. 2011 Sales revenue 3.865,4 EBIT 1.001,6 Consolidated net profit 352,6 Operating cashflow 829,9 18 November 2018

Portfolio VERBUND Renewables Status: 01.3.2012 Wind PV Total In operation MW 324 26 350 Under construction MW 318 - Production 2011 GWh 681 34 715 Wind Solar construction operation Dağpazarı 39 MW Bares 142 MW

Non-financial aspects Success factors for project development in Eastern Europe Support mechanism Non-financial aspects Grid access / dispatching Feed-in tariff Certificate system Tender Legal certainty Transparency Low risk of unpredictable changes Predictable duration of approval processes Grid access Dispatching / Balancing energy

Source: BWEA; Kommunalkredit, pwc, Invesetieren in Windenergie 2012 Wind Power in Bulgaria Support system New legal basis since May 2011 Fixed feed-in tariffs only for a limited number of projects Methodology for allocation of grid access is unclear Shortening of deadlines for approval process increases pressure for project developers Feed-in tariff is fixed at construction (uncertainty for investors) – duration 12 yrs) Tariff depending on installed capacity and load factor (9,64 ct/kWh – 8,78 ct/kWh) National Renewables Action Plan / Target National Renewables Action Plan only foresees 1256 MW Wind until 2020 Grid access limited at 1800 MW Wind potential very good Installed capacity end of 2011: 530 – 600 MW (BWEA estimate) 15.000 MW filed in old system EWEA: 3000 – 3500 MW could be realised until 2020 Main Issues Approval process Grid access Changes of regulatory environment Currency Lew (BGN) Area 111.002 km² Population (Mio) 7,46 BIP in EUR bn. 40,9 BIP / capita 5.485 BIP growth real in % 3,0% Inflation in % 2,9% Public indebtedness % BIP 20,5% Source. Prognosis 2012, IMF 09/2011 Source: BWEA; Kommunalkredit, pwc, Invesetieren in Windenergie 2012

VRP in Bulgaria 18.11.2018

Thank you for your attention! Dieter Meyer Dieter.Meyer@verbund.com VERBUND Renewable Power Schottengasse 4 1010 Wien