Technical Due Diligence Renewable Energy We build with Passion!

When investing in or developing major energy projects, you need to understand and mitigate all technical risks before you decide to commit. The technical due diligence report can help you understand the technical feasibility of your project with a full technical risk review. Main sectors of interest:  Photovoltaic  Wind  Biogas and Biomass  Geothermal  Hydroelectric Technical Due Diligence for Renewable Energy Projects We build with Passion!

Technical Due Diligence for Renewable Energy Projects We build with Passion! The Technical Due Diligence can definitely help you: Understand and mitigate a variety of technical and socio-environmental risks before you commit your valuable time and resources to the project Identify technical risks that could compromise your project’s profitability and bankability Ensure that the technical feasibility of the project makes for a sound investment Ensure that all factors have been accounted for in the development process

Technical Due Diligence for Renewable Energy Projects We build with Passion! Legal Frame for Renewables – National Regulatory Law no. 220/2008 regarding the promotion of renewable energy sources, successively amended and supplemented by:  Government Ordinance no. 29/2010  Government Emergency Ordinance no. 88/2011 Law no. 134/2012 for the approval of GEO 8011, amending and adjusting law 220/2008 8/2 Law no. 123/2012 regarding electricity and gas Government Emergency Ordinance no. 57/2013 published in the Romanian Official Gazette no. 335 dated 7 June 2013 which will enter into force on 1 July 2013 (“GEO 57”)

Technical Due Diligence for Renewable Energy Projects We build with Passion! Incentive Scheme – Number of Green Certificates On 4 June 2013, however, the Romanian Government approved by way of an Emergency Ordinance new measures applicable to the RES sector as of 1 July The new measures (described herein) aim at discouraging future investments in the renewables sector, but they are also impacting operational investments, thus breaching investors’ legitimate expectations. Temporary suspension of the number of GCs granted to certain technologies: Starting with 1 July 2013, the issuance of a certain number of GCs will be deferred, as follows: new hydro-power plants (below or at 10 MW): 1 GC deferred; wind: 1 GC deferred; photovoltaic: 2 GCs deferred. The deferred GCs shall be recovered starting with March 2017 for new hydro-power plants and solar, and with January 2018 for wind. The recovery of the deferred GCs will be done in steps, according to a methodology to be adopted by the regulator.

Technical Due Diligence for Renewable Energy Projects We build with Passion! THE PROJECT The Sponsor The developer of the Project The Bank The project submitted for funding or re-funding The technical advisor - understand the technical feasibility of your project with a full technical risk review

Our Area of Expertise on Renewable Energy Projects We build with Passion! The Due Diligence analysis is carried out taking into account all the relevant factors that might influence the project, and providing any practical suggestions to render the relevant Project bankable, according to the applicable Scope of Work. Normally, two phases are identified:  Pre-closing Phase: Due-Diligences are based on documentation provided by means of a comprehensive checklist and on-site surveys for site feasibility assessment. Due-Diligence activity includes site assessment, design review (including quality check of proposed components), authorization check, productibility/cash flow calculations, contract analysis (EPC, O&M)  Post-closing Phase: Construction Monitoring Reports, including supervision of work management construction and Acceptance Tests; Operation & Maintenance monitoring to assure the design performance

We build with Passion! Our Area of Expertise on Renewable Energy Projects Changes in Legislation Projects over the installed capacity Legal risk- Regulatory Off–take contracts Dispatching risk Market risk Permitting process Limited grid capacity Development risk Prices predictability [energy and green certificates] Green certificate price Revenue risk Main issues with impact on projects’ bankability Operational risk Inexperienced local operators Few international players with limited track record on local market

We build with Passion! Our Area of Expertise on Renewable Energy Projects Main issues with impact on projects’ bankability Risks- checks to be done ConclusionsObservations AuthorizationsThe permitting procedure appears to have been followed correctly and in partnership with the local authorities. Documentation was made available. Location/LandThe location has good access and good connection to the grid Location has good potential Components typeThe components are to be considered of adequate quality and performance for the design of the project. Project was developed in partnership with the local authorities. ConnectionThe connection is a sound and accessible one. The connection solution is a sound and accessible one. Electrical and power estimateThe outcome of the power data assessment is aligned with expectation, on the basis of the design documentation No major investment is required to connect the project. SchedulingThe project appears to be technically, economically and financially feasible. Project scheduling was streamlined. A legal due diligence could confirm inaccuracies. On a documental basis, no critical issues that could affect the construction of the plant have been identified.

Our Experience – Due Diligence Reports for Romanian Banks and Investors Project: Wind Farm 27,5 MW Nalbant, Tulcea County, Romania Status: Ready to build Reports: Preliminary Due Diligence Report and Independent Engineer Report We build with Passion! Project: 4 Hydro Plants Boia, Romania Status: Ready to build Reports: Preliminary Due Diligence Report and Independent Engineer Report

Our Experience – Due Diligence Reports for Romanian Banks and Investors Project: Wind Farm 27,5 MW Nalbant, Tulcea County Romania We build with Passion!

Contact DELIA RAUCESCU A Emanoil Porumbaru Street 3 rd floor Bucharest, Romania