1. CEZ WIND PROJECT IN ROMANIA Fantanele & Cogealac ENERGY FORUM 2010 Central & SouthEastern Europe Bucharest– May 14, 2010 ADRIAN BOROTEA CORPORATE AFFAIRS DIRECTOR - CEZ ROMANIA

2. Date: 11.11.2009 Version: Presented CONTENTS  CEZ Group in Romania  General information  Fantanele & Cogealac Wind Farm  Regulatory aspects  Technical aspects  Financial aspects  Photos from construction 1

3. Date: 11.11.2009 Version: Presented CEZ GROUP IS STABLE INTERNATIONAL UTILITY ACTIVE IN MORE THAN 10 COUNTRIES OF CSEE 2 GENERAL INFORMATION

4. Date: 11.11.2009 Version: Presented Timisoara Arad Oradea Satu Mare Alba lulia Bistrita Tîrgu Jiu Deva Drobeta- Turnu Severin Suceava Botosani Iasi Vaslui Sibiu Zalau Miercurea Ciuc Rîmnicu Vîlcea Brasov Pitesti Sfîntu Gheorghe Slatina Focsani Galati Buzau Ploiesti Slobozia Calarasi Giurgiu Alexandria Braila Tirgoviste Tulcea Tîrgu Mures Piatra Neamt Bacau Resita Baia Mare Cluj-Napoca Constanta Craiova Bucuresti Sales and distribution services CEZ GROUP IN ROMANIA Sales services Electrocentrale Galati Powerplant  majority shareholder  objectives: new CCGT (400 MW) Fantanele & Cogealac wind farms  Fantanele and Cogealac Wind Park will be together the largest onshore wind park in Europe  The total capacity: 600 megawatts  Total investment of CEZ Group into the project will reach € 1.1 billion Cernavoda 3 and 4 Units  CEZ is partner of joint venture with 9.15 % participation 3 GENERAL INFORMATION

5. Date: 11.11.2009 Version: Presented CONTENTS  CEZ Group in Romania  General information  Fantanele & Cogealac Wind Farm  Regulatory aspects  Technical aspects  Financial aspects  Photos from construction 4

6. Date: 11.11.2009 Version: Presented Renewable Energy Sources (RES) supporting scheme – legislation 5  mandatory quota for suppliers combined with a system of green certificates (GC) trading  Eligible are producers generating energy from:  Wind energy, Solar energy, Geothermal energy, Biomas, Waves energy,  Hydro power plants less than 10 MW, commissioned or rehabilitated starting 2004  Each supplier has a given percentage (a mandatory quota) obligation for green certificates and can comply with its quota obligation by purchasing green certificates on the green certificates market (bilateral contracts at negotiated prices and/or monthly centralised market of green certificates).  Electricity can be sold via bilateral contracts at regulated prices (only for producers less than 1 MW), or free at negotiated price  The certificates are issued monthly by the TSO  OPCOM administrates trading and certificates ownership at the end of the period  The bids for GC are honoured once per month; the clearing price applies for all the participants.

7. Date: 11.11.2009 Version: Presented Law no.220/2008 6  Some “clean” producers receive for each 1 MWh produced more than 1 GC: 2 GCs for wind energy for the electricity generated until 2015 and 1 GC starting 2016, 3 GCs for biomass and 4 GCs for solar energy  GC may be traded within increased price limits set-up by new law: from 27 EURO/CV to 55 EURO/CV  If supplier will not achieve mandatory quota at end year, it will pay 70 EURO/CV to TSO who will allocate the amounts for strengthening T&D networks to easier other renewable producers connection to grids  New quota values for 2008 – 2020 period were set: 2008200920102011201220132014201520162017201820192020 5,26%6,28%8,30% 9,0%10,0%10,8%12,0%13,2%14,4%15,6%16,8%

8. Date: 11.11.2009 Version: Presented Law no.220/2008 increased no. of GC for 1MWh to incentive investors 7 RESType of group power stationIP(MW)Law 220Duration (years) GC/MWh - HYDRO energy - Produced in plants with installed powers < 10 MW Commissioned as of 1 January 2004 (new)<1MW2 GC15 > 1MW1 GC15 Commissioned as of 1 January 2004 (refurbished)< 1MW2 GC3 > 1MW0.5 GC3 Refurbished< 1MW2 GC10 > 1MW1 GC10 WIND energyCommissioned as of 1 January 2004 (new)Without IP limit 2 GC until 201515 1 GC from 2016 From import, which have been used before for the production of electric power on other states territory (secod hand) Without IP limit 2 GC until 20155 1 GC from 2016 - Biomass, - Biogass, - Waste fermentation gas, - Bioliquid Commissioned as of 1 January 2004Without IP limit 3 GC15 GEOTERMAL EnergyCommissioned as of 1 January 2004Without IP limit 3 GC15 SOLAR EnergyCommissioned as of 1 January 2004Without IP limit 4 GC15

9. Date: 11.11.2009 Version: Presented 8 Technology to produce E/RES GC grantedAverage reference price for electricity (€/Mwh) 5134 Average price GC (€/GC) 27552755 Average price E-RES (€/MWh) 123=col.2*27+514=col.2*55+515=col.2*55+346=col.2*27+34 Wind electric stations2M*105/78161/10688/61144/89 Hydro electric stations new or refurbished with 1<IP< 10MW 1781066189 Hydro electric stations not refurbished with 1<IP < 10MW 0.564.578.547.561.5 Hydro electric stations with IP < 10MW 210516188144 Photovoltaic electric stations 4159271142254 Electric stations based on biomass, biogas, bioliquids, geothermal energy 3132216115199 *2GC until 2015, 1 GC beginning with 2016 Estimation of Min/Max price of the energy from RES

10. Date: 11.11.2009 Version: Presented Law no.220/2008 was informally notified to European Commision – October 2009  Romania starts in October 2009 an informal consultation with EC on the support system in the light of communitarian legislation of State Aid  We consider that the supporting scheme settled by Law 220/2008 (mandatory quota combined with GC) is a market based system and does not constitute an not allowed State Aid  Law 220/2008 also stipulates a series of facilities to be granted to investors, susceptible to be State aid (art. 8 par. (2), art. 13 and art. 18). Such facilities are the object of a future Government Decision, will be applied only in compliance with the State aid legislation and will be notified separately.  Ro authorities based the argumentation on EC practice in the case of N 415/A/01- Belgia, N 504/2000 – Marea Britanie, cauza N 474/2005 – Marea Britanie 9

11. Date: 11.11.2009 Version: Presented 1,413 6,414 7,000 Water 6,377 7,278 6,352 Wind MW/ Fuel 6,000 8,000 0 1,413 5,110 7,374 5,089 1,413 7,472 2,000 3,000 5,000 4,000 Coal Hydro-carbons Nuclear 5,036 1,000 CURRENTLY, WIND ENERGY SECTOR IS ALMOST NON EXISTENT IN ROMANIA Overview of the installed capacity and annual electricity production Installed capacityAnnual Electricity Production 2007 2008 2009 24,000 28,000 GWh 17,105 15,916 Nuclear 17,105 7,708 5,616 Hydro-carbons 8,902 11,054 11,509 CoalWind 20,000 16,000 Water 0 27,531 26,711 26,975 4,000 8,000 18,327 12,000 2006 2008 2007 Source: CEZ research

12. Date: 11.11.2009 Version: Presented  Two wind farms projects in Dobrogea county, between villages of Fantanele and Cogealac (north of Constanta, 17 km west of the Black Sea coast);  Total projected size: 240 WTGs (1) of 2.5MW– installed capacity of 600MW;  The project will be the largest onshore wind farm in Europe;  Once wind farms are operational, CEZ will have 10 % share on the Romanian market with renewable energy, including big hydro. WIND FARMS PROJECT IN FANTANELE AND COGEALAC WILL BE THE LARGEST ON-SHORE WIND FARM BUILT IN EUROPE Basic information about wind farms CEZ project Both wind farms  1 st phase of the project – 139 wind turbines;  To be finished in 2010;  Construction has started in October 2008  Currently, we have erected 50 WTGs, build 100 km of roads, laid more than 140 km of cables 33 kV and 110 kV  4 Transformer Substations 110 / 33 kV  One Transformer Substation 400 / 110 kV, connected to Transmission Grid Fantanele Project Cogealac Project  2 nd phase of the project – 101 wind turbines;  To be finished at beginning of 2011;  Signed contract for with GE for supply of 101 WTGs (same as for Fantanele project)  more than 130 km of cables 33 kV and 110 kV  4 Transformer Substations 110 / 33 kV Note: (1) WTG – Wind Turbine Generator Source: CEZ 11 TECHNICAL ASPECTS

13. Date: 11.11.2009 Version: Presented TWO PROJECTS ARE LOCATED NEAR COMMUNITIES OF COGEALAC AND FANTANELE, IN DOBROGEA COUNTY, NORTH OF CONSTANTA CITY Schematic plan of projects Construction site of MTS 110/400kV National road N22 Tulcea-Contanta Village of Fantanele Village of Cogealac Fantanele West 2 (35 WTG) Fantanele West 1 (35 WTG) Cogealac Project (101 WTG) Source.:CEZ, maps.google.com  Constanta 45 km Construction stopped/ not startedReady for constructionIn construction FW3 FW2 FW1 Fantanele FE Cogealac Fantanele West 3 (35 WTG) Schematic borders of communes Fantanele and Cogealac Fantanele East (34 WTG) 12 TECHNICAL ASPECTS

14. Date: 11.11.2009 Version: Presented FANTANELE & COGEALAC PROJECT IS DESIGNED TO PROVIDE 600 MW CAPACITY OF THE ECOLOGICAL ENERGY Overview of the key technical parameters of Fantanele & Cogealac project Technical parameterDescription Total generation capacity 600 MW Wind turbine generators composition 240 generators (generation capacity 2.5 MW each) – 100m hub height, 99m rotor diameter Energy transformation Generators are connected to seven 33 kV/110kV substations, which deliver on 110kV level to the Main Transformer Station which connects the Fantanele wind farm on the 400kV grid line Constanta -Tulcea operated by Transelectrica. Selected technical information on Wind Turbine Generators (WTG) Producer: General Electric Maximum speed: 73.6 m/s Blades material: fiber glass – epoxy resin/polyester Cut-in wind speed: 3 m/s Cut-out wind speed: 25 m/s Rated power output: 2.5 MW Tower: tubular steel, 100m Source: CEZ; General Electric 13 TECHNICAL ASPECTS

15. Date: 11.11.2009 Version: Presented FANTANELE & COGEALAC PROJECT CONDITIONS FOR REACTIVE POWER COMPENSATION WindFREE Reactive Power Technology is used Source: CEZ; General Electric 14 TECHNICAL ASPECTS  Wind turbines are GE 2.5xl – 50 Hz, cos  0.9 type;  Electric generator is a permanent magnet and in 4 –quadrant IGBT Converter;  By using GE technology with LVRT WindRIDE-THRU operating system is ensured uninterrupted operation in case of network perturbations;  By using WindCONTROL System the power and voltage adjusting is possible to operate the wind farm as a conventional electrical generator;  Through WindFREE Reactive Power Technology, the turbines can generate / absorb reactive power even with No wind;  40 turbines can operate with WindFREE Reactive Power system and can absorb up to 48 000 kVA with NO wind. Only 34 such turbines would be needed to compensate for reactive generated by the cable grid which is 40 719 kVA (about); In Conclusion  The system is able to compensate reactive power from wind farm grid, regardless of wind speed.

16. Date: 11.11.2009 Version: Presented CEZ IS DEDICATED TO KEEPING A CONSISTENT PUBLIC FRIENDLY POLICY TO THE COMMUNITIES Selected public related activities of CEZ  Long-term partner for the communities  Acknowledging its role and supporting their development Partnership with communities  CEZ is currently building its relationship and involvement as partner, discussions with both the authorities and citizens  The village's infrastructure and facilities for the people are just some of the focus subjects  Dedicated to improving the quality of life in the community Supporting the local infrastructure projects  Creating jobs for local citizens  Choosing local companies as partners (Eraos, Fantanele – construction works)  Supporting commerce (economical development) of the area Sub-constructing work to local companies 15 TECHNICAL ASPECTS

17. Date: 11.11.2009 Version: Presented CONTENTS  CEZ Group in Romania  General information  Fantanele & Cogealac Wind Farm  Technical aspects  Financial aspects  Photos from construction 16

18. Date: 11.11.2009 Version: Presented 17 SUMMARY OF WIND PROJECT 17  Useful Life of wind farm - 25 years  Efficiency of Wind Turbines comparable with the most efficient Wind Farms  Positive trends in develpment of prices of energy and green certificates refflecting also inflation  2 Green certififcates till 2015  1 Green certificate till 2025  Repairs and maintenance costs comparable with European standards  Start of full operation of Fantanele part in 5/2010  Only 12 full time employees  Positive legal environment supporting investments into green technologies KEY ASSUMPTIONS USED IN PROJECT 1 FINANCIAL ASPECTS

19. Date: 11.11.2009 Version: Presented CEZ TRADE responsible for ELECTRICITY OFF-TAKE, IMBALANCES and BROKER FOR GREEN CERTIFICATES MARKET TOMIS TEAM MW INVEST ČEZ, a.s. Trading OTC market DAM MWh Balancing Market Power plant CEZ Trading team Advisory and/or brokerage Mutual delivery agreements Green certificates CEZ Vanzare Other suppliers – OTC OPCOM Managment of agreements, deliveries Trading model – green certificates 18 FINANCIAL ASPECTS

20. Date: 11.11.2009 Version: Presented CONTENTS  CEZ Group in Romania  General information  Fantanele & Cogealac Wind Farm  Technical aspects  Financial aspects  Photos from construction 19

21. Date: 11.11.2009 Version: Presented Pouring of blinding concreteMounting of ring for foundation Pouring of blinding concrete Construction of adapter ring and steel installation PICTURES FROM THE SITE (1) 20

22. Date: 11.11.2009 Version: Presented Installation of cablesInstallation of adaptor ring PICTURES FROM THE SITE (2) 21

23. Date: 11.11.2009 Version: Presented Installation of first WTG (FE8) PICTURES FROM THE SITE (3) 22

24. Date: 11.11.2009 Version: Presented Installation of blades PICTURES FROM THE SITE (4) 23

25. Date: 11.11.2009 Version: Presented PICTURES FROM THE SITE (5) 24

26. Date: 11.11.2009 Version: Presented PICTURES FROM THE SITE (6) 25

27. Date: 11.11.2009 Version: Presented PICTURES FROM THE SITE (7) 26

28. Thank you very much for your kind attention!