NEFCO's investments in Estonian wind power Solveig Nordström Vice President NEFCO

Leading principles Promote the implementation of cost effective environmental projects in neighbouring countries in Eastern Europe aimed at achieving environmental benefits also for the Nordic region Think globally - act locally Polluter pays principle Unit abatement cost (UAC) - low compared to the alternative

Renewable energy & energy saving Major part of NEFCO's portfolio Direct and indirect reduction of emissions Annual reduction of CO2e - approx. 1.6 million tons Each person in Finland emits approx. 11 tons/year Pakri Wind Park (18.4MW) ton CO2e/year Potential for the wind parks - at least ton CO2e/year

Our wind power investments Estonia - the first of the Baltic countries with legal framework in place –obligation to off take –feed in tariff –Joint implementation procedures Finland and TGF early testers of Joint Implementation Competent Nordic investor active Several projects being developed

Future prospects TECHNICAL –Increased transmission capacity –Strengthened distribution networks –Improved availability FINANCIAL –Predictable price development - i.e. stable feed in tariff structure –Long term market –Market for sales of CO2e also after i.e. post Kyoto OTHER –Nordic business partner with adequate human and capital resource base and relevant experience