Development of renewable energy A chance and a challenge for Poland

CWP has over 4 GW under development as well as a proven track record of execution across the region  CWP is a leading developer of wind projects in Central Europe and Australia & New Zealand. The company has 4 GW of capacity under development across five countries.  CWP was established in Since then, CWP has developed and sold Europe’s largest wind farm (600 MW)  CWP is extending its activities to fast growing new markets like Turkey and Bulgaria.  CWP employs over 40 people across Europe and the Asia-Pacific region and cooperates with both international companies and its local advisors.  Continental Wind Partners’ investors comprise institutions and high net worth individuals based in the US and Europe. CONTINENTAL WIND PARTNERS & PS WIND MANAGEMENT LEADING WIND DEVELOPER 2 Existing Markets Poland Romania Australia 700 MW 1100 MW 1800 MW Prospective Markets Croatia Bulgaria Turkey 240 MW 320 MW 600 MW TK PL RO BG HR AU

Poland has good windconditions, not only in the northern regions POLAND IS AN ATTRACTIVE MARKET FOR RENEWABLE ENERGY INVESTMENTS The main incentives for development of renewable energy projects in Poland are:  A good and stable Green Certificate system supporting renewable energy sources  Current spot market price close to the substitution fee (currently 248,5 PLN)  Total price for „black” energy and green certificates ~85 EUR  Good conditions for development of renewable energy (Wind, Biomass, Biogas)  Growing demand for electricity CHANCE

Many good projects fail because they cannot connect to the grid GRID CONNECTION  Technical barriers  Weak grid in the windiest regions  Problems with balancing due to dominating of coal fired production  Changing and unclear regulations for obtaining grid connection conditions  Thousands MW of virtual projects  Blocking grid capacity – a way to block competition  Grid Operator flooded with applications  Delays in delivery of necessary grid data  Highly overstated grid modernization requirements  High costs of grid connection  Tendency to surcharge the wind developers with additional costs of grid upgrades  Bureaucracy  Long process of getting grid connection conditions and  Long, costly and bureaucratic process of signing a grid connection agreement CHALLENGE

Development of renewables requires a stabile and efficient legal system REGULATIONS  Environmental Regulations  Lack of clear standards for environmental procedures.  Constantly changing regulations  Zoning Plans  Changing or creating the Zoning Plan is a long (usually at least a year), costly and bureaucratic procedure  Structure of landownership  The plots are very small in most of the country and the process off leasing and acquiring necessary land is very time consuming and difficult  The big plots very often belong to the Agricultural Agency and the tender process required to lease from the Agency is bureaucratic and long CHALLENGE

Cooperation between governmental authorities, grid operator and RES developerss is needed PROPOSED SOLUTIONS  Grid  Modernization of the grid taking into account the future development of renewable energy  Clear rules of issuing Grid Connection Conditions  Combining different energy sources which allows for storage and efficient balancing of energy  Environmental Regulations  Creating clear standards for environmental procedures  Zoning Plans and Permitting Process  Changing the current regulations  More transparent and shorter procedures CHANCE

The grid is the key to successful development of RES in Poland CONCLUSIONS  Poland has big potential for wind energy development  The big challenge is to solve the main problem – GRID  Solving all other problems will not allow the renewable industry to move forward