1. Pump Storage Power Plant Pyhäsalmi Concept - Background and current status Ari Aalto LAGUNA – LBNO General Meeting Paris 16.9.2013

2. Finland is a part of Nordic power system Increasing demand of regulation power due to increase of wind & solar power large nuclear and back pressure capacity Decreasing regulation availability from Nord-Pool increasing own needs in Sweden new and stronger connections to Middle Europe Market drivers in future Power balance in Finland 13.9.2013 Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

5. Source: Eurelectric 2011 Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

7. Source: GTK Hitura H = 630 m Jussarö / Tammisaari H = 246 m Kylkynlahti H = 800 m Kemi H = 500 m Pyhäsalmi H = 1400 m Possible mine locations for pumped storage Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

8. Pyhäsalmi Mine 1450 m Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

9. Together with four regional electricity companies Vantaan Energia Turku Energia Oulu Energia Oulun Seudun sähkö Pyhäsalmi Mine These electricity companies had 2012 revenues of 980 M€ and 100 M€ profit 10 TWh electricity distribution to 600.000 customers PSPP Pyhäsalmi developers Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

10. Almost optimal location in terms of Finnish national grid Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

12. Pit excavated for backfilling of mine is used as upper storage reservoir Open mine pit not used as upper reservoir PSPP Pyhäsalmi water gallery vertical penstock down to 1400 m depth Pit excavated for backfilling of mine V > 3 Mm 3 Open mine pit PSPP Pyhäsalmi water gallery Pyhäjärvi (12`178.5 ha) Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

13. Hydraulic system Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

14. Underground storage Speicher Nassfeld 2007 Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

15. PSP Pyhäsalmi -Dual unit Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

16. Linth- Limmern Switzerland 1000 MW Start up 2015 Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

17. Pyhäsalmi Mine - in 1400 m depth Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

18. PSPP Pyhäsalmi current schedule 2013 Pre-Feasibility Study more detailed technical concepts corresponding cost estimates revenue generation possibilities coordination with Laguna project discussions with Fingrid legal aspects, permiting issues commercial viability in general review of feasibility among the partners Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

19. PSPP Pyhäsalmi current schedule II 2014 Full scale Feasibility Study selection of technical concept pre-engineering, modell tests main machinery bids in detailed construction plan & schedule detailed cost structure revenue generation & financial modell legal issues, final partners, risks etc. 2015 Financing, permitting, investment decisions 2016 – 2020 Construction & installations Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris

20. Pump Storage Power Plant Pyhäsalmi Concept - Background and current status Thank you for attention! Ari Aalto Paris 16.9.2013 Ari Aalto, LAGUNA-LBNO 16.9.2013 Paris