1. Potential hazards and risks in the offshore wind park development process in Poland Stefan Simon, CEO Green Energy World

2. www.green-energy-world.ch Content 1.Who is Green Energy World 2.Wind Power Market in Poland 3.Surrounding Conditions for Offshore Development 4.Risks & Hazards in Offshore Wind Park Investments 5.Conclusion

3. www.green-energy-world.ch Who is www.Green-Energy-World.ch ? Suisse Company with Offices in Basel and Berlin Trading Platform for Renewable Energy Projects Link between Project Developers and Investors

4. www.green-energy-world.ch Providing Services  International Network, High Quality Energy Projects (RE)  Common services are: - Marketing of projects - Share sales - Tenders - Subsidies acquisition - Emission reduction certificates - Consultancy, Market Analysis - Due Diligence - Draft of sales contracts - Additional services through partner companies  GEW management has over 20 years of international experience in project development, marketing and analysis.

5. www.green-energy-world.ch 5 Installed Wind Energy Capacity Poland 2007 Sources: Polish Wind Energy Association (2007)‏; * based on EC BREC (2004) under construction

6. www.green-energy-world.ch EU Target for Renewable Energy: 20% by 2020 March 2007 (EU Summit, Nuremberg 2007)

7. www.green-energy-world.ch Peak of World Oil Production Source: Oil & Gas Journal (2004) scenario 1: 2007scenario 2: 2010 World oil production scenario 1 World oil production scenario 2 [oil production billion barrel/year]

8. www.green-energy-world.ch 8 During 2006 / 07, more than 4.5 billion Euro have been spend on wind park acquisition in Europe 20062007 Scan Energy 34 Mio €, Germany Northland Power 16 Mio €, Germany International Power 567 Mio €, Germany EDF 63.1 Mio €, Italy Babcock & Brown 110.3 Mio €, Spain Prudential M&G 1,050 Mio €, UK Electrabel 55 Mio €, Portugal Babcock & Brown 18.3 Mio €, Spain Centrica 62 Mio €, Scotland International Power 1,839 Mio €, Italy/Germany E.on 722 Mio €, Spain/Portugal Iberdrola 30 Mio €, Germany Source: Mergermarket et communiqués de presse (2007)‏

9. www.green-energy-world.ch 9 Target for Poland: 2,000 MW capacity by 2010 Sources: Polish Wind Energy Association (2007)‏; * Wind Energy Barometer (2007)  2.3% of wind generation in domestic energy consumption (7,5% target)  for 2006-2010 approx. 1,800 MW new installations needed  ca. 450 MW/a

10. www.green-energy-world.ch 10 20% Renewable Energy in Poland ?  Only possible with Offshore Wind Farms  ~ 6 GW needed  Larger Steps towards the 20% Goal

11. www.green-energy-world.ch 11 Potential Risks and Hazards... “the possibility of an event occuring that will have an impact on the achievement of objectives.“ What is risk?... “the situation, which poses a level of threat to life, property or environment.“ What is a hazard?

12. www.green-energy-world.ch 12 Planning Operation Construction Risks and Hazards in Offshore Wind Farms

13. www.green-energy-world.ch Risks and Hazards in the Planning Phase Basic Site Criteria Location (EEZ, 12-Mile-Zone, etc.) Environmental (Flora, Fauna, Fish, Marine Mammals, Marine Birds, etc. Wind Speeds (average, extremes, etc.) Water Depth Wave Impacts Fishery Shipping Routes Air Traffic (Restrictions, etc.) Power Cable (new or existing, Type, Capacity, etc.) Grid Connections (Distance, Capacity etc.) Power Transfer (offshore / on-shore)

14. www.green-energy-world.ch Risks and Hazards in the Planning Phase Regulatory, Legal and Political Situation Feed-in Tariff / Certificate Structure Reliability of Agreements / Permit Securities Regulatory Permitting Process Transparency of the Process Responsibilities Predictability (Go/No-Go Criteria) Delays Costs Development

15. www.green-energy-world.ch Risks and Hazards in the Planning Phase Situation in Poland  No clear Criteria for Site Selection  1 % Down Payment for Construction Permit Application  No Transparency in the permitting process  Lack of Long-term Strategy for Renewable Energy  No attractive Feed-In Tariffs  Missing Infrastructure for Offshore Power

16. www.green-energy-world.ch Recommendations  Clear Planning Criteria  Target: First Offshore Wind Farm in 2010  Providing an adequate Grid Infrastructure  Attractive Feed-In Tariffs  Collaborative Engagement with other maritime sectors  Polish Offshore Wind Industry Advisory Group

17. www.green-energy-world.ch Thank you very much! Dziekuje bardzo!