Sources of financing renewable energy sources investments.

1. Sources of financing renewable energy sources investments.

2. Financial source for the RES investments AGENDA The Lodz regional operational programme 2007-2013 Operational programme INFRASTRUCTURE & ENVIRONMENT Programme of rural areas deveopment. National fund for environmental protection and water menagment. Banks 2

3. Regional Operational Programme of Lodz Province 2007-2013 Division of funds in Regional Operational Programme 2007-2013for different prioritys. First priority: Transport infrastructure…………….…………………………………………………………. ….241,5 mln euro Second priority: enviromental protection, prevention of threats and energetics ….…….… 171,1 mln euro Third priority: Industry, innovation, enterprenureship…………………………………………………… 271,7 mln euro Fourth priority: Information Society…………………..……………………………………………………………. 70,4 mln euro Fifth priority: Society infrastructure service………..…………………………………………………………. 120,8 mln euro Sixth priority: Renew of rural areas…………………..….……………………………………………………….. 100,6 mln euro Seventh priority: Technical support……….………………………………………………………………………… 30,2 mln euro Financing of projects in frames of Regional Operational Programme cannot be more then 85% of qualified cost. 3

4. Seond priority: Protection of natural environment, threat prevention and energetics. *Recruitment start will be announced depending on going live proper regulations concerning public support in scope of regional operational programs. 4

5. Seond priority: Protection of natural environment, threat prevention and energetics. • MAXIMAL VALUES OF PROJECTS WHICH ARE QUALIFIED TO CO-FINANCING: • Construction, development and modernization of infrastrucrure used to production and transfer power aquired from renewable energy sources– up to 20 mln PLN, • Institutions using modern technologies and „know-how” concerning renewable energy sources– up to 20 mln PLN, • Production of energy from Biomass or biogas– up to10 mln PLN, • Construction or development of small water power plants-up to 10 mln PLN, • Investments linked with production of energy friendly fuels which are not grown – up to 20 mln PLN. 5

6. Seond priority: Protection of natural environment, threat prevention and energetics. The evaluation system of projects ran within the scope of regional operational programme. In regional operational programme there are few ways of choosing projects: − course of action concerning individual projects; − course of action concerning competition offers; − course of action concerning concerning systemic projects. Competitive course of action : At II.9 date there are 24 960 433,6 EUR funds left. 6

7. Seond priority: Protection of natural environment, threat prevention and energetics. CRITERIA FOR PROJECTS SELECTION 7

8. Seond priority: Protection of natural environment, threat prevention and energetics. PRODUCTION COUNTER AND RESULTS 8

9. Operational Programme Infrastructure and Envionment Operational Programme Infrastructure and Environment is so far largest programme ever planned by European Union. 9

10. Operational Programme Infrastructure and Envionment Ninth Priority, nature-friendly infrastructure and power efficiency. Action course in scope of operational programme: • 9.1 – Highly efficient power prduction • 9.2 – Effective power distribution • 9.3 – Modification of public service buildings-Thermodynamics • 9.4 – Power production from renewable sources • 9.5 – Production of biofuels from renewable sources • 9.6 – Network enabling easier uptake of power produced from renewable souces. Supervisior/coordinating unit for actions 9.4, 9.5, 9.6 used to be institute of fuels and renewable energy untill the 30.03.2010, however his role will be taken over by Ministry of economy 10

11. Operational Programme Infrastructure and Envionment • Tenth priority, Energy security, including getting power from many sources and providers. • Course of action: • 10.1 Development of transfering network of gas, power, oil and creation/modernization of storage facilities for gas • 10.2 Creation of transfering network in gasless areas and modernization of existing distribution networks • 10.3 Development of renewable energy sources based industry 11

12. Programme of modernization for rural areas 2007-2013 Increase in competitivness of agricultural and forestry sectors • Modernization of farms. • Increase in agricultural and forestry sectors production. Going for non-agricultural activities on former rural areas • Non-agricultural trends in agricultural areas. • Creation and development of small enterprises. • Standard services for industry and rural areas population. 12

13. Types of investments: • Material investments such as: • Constructon, renovation, modernization of buildings used for agricultural production, storage and pre-sell preparation of goods; • Purchase, instalation of equipment including computer software and hardware; • Raise, modernization of orchards or perennial plantations; • Purchase, instalation or construction of infrastructure that directly influace agricultural activity including purchase and instalation of the RES equipment. • Non material investments such as: • Purchase of patents, licences, including software licences; • Services related with preparation of documents, technical schematics, business plans and technical managment of project. Action 121 Modernization of Farms 13

14. Assistance shall be granted for taking up or development activities that include for example .: • services for agricultural or forestry; • public services; • wholesale or retail; • construction and installation services; • the production of power out of biomass; • services related to tourism and sport, recreation and leisure; • transport services and works in scope of public services; • accountancy, consultancy and computer services; • craftsmanship or handicraft; • warehousing or storage of goods; • processing of agricultural products and edible products gathered in the forest. Oś III, Działanie 311 Różnicowanie w kierunku działalności nierolniczej 14

15. Assistance shall be granted if one starts or find occupation in scope of: • service for farms or forestry; • public service; • retail or wholesale; • construction and instalation service; • production of energy out of biomass; • tourism, leisure, sport, recreation related service; • transport service; • accountancy, consultancy or computer service; • rzemiosła lub rękodzielnictwa; • magazynowania lub przechowywania towarów; • przetwórstwa produktów rolnych lub jadalnych produktów leśnych. PROW Oś III, Działanie 312 Tworzenie i rozwój mikroprzedsiębiorstw 15

16. Standard service for industry and population of rural areas. Action aims is to improve standard services in rural areas that also influence socio-economic development of society Assistance is provided in the form of refund of costs associated with project implementation such as: • water and waste-water management; • establishment of collection, segregation and exports of waste; • the production or distribution of power acquired from renewable energysources . 16

17. PROW Oś III, Działanie 321 Podstawowe usługi dla gospodarki i ludności wiejskiej Beneficiary: Municipality or agency for which the organizer is j.s.t performing actions in scope of project The Financial support: Refundup to75% of investments cost. The maximal amount of financial aid for investment in one commune: 4 000 000 zł –for projects in the field of water and wastewater management , 200 000 zł –projects in the field of collection, segregation, the export of waste 3 000 000 zł – for projects in the field of production or distribution of power from renewable energy sources 17

18. National Fund for Environmental Protection and Water Management List of selected programs National Fund for Environmental Protection and Water Management, Planned to be financed in 2010 Programs that supported by the EU funds The program of co-financing projects in the field of highly efficient power production and distribution, thermodynamic modernization- such programs will be granted support via the European Union structural funds, points 9.1, 9.2, 9.3 and 9.4 of operational programme infrastructure and environment. 18

19. National Fund for Environmental Protection and Water Management 5. Climate protection 5.1. Program for projects in the field of renewable energy and high-efficiency cogeneration facilities 5.2. The functioning of the emissions trading programme 5.3. Co-financing of air protection programs and action plans 5.4. The system of nature friendly investments 5.5. Efficient use of energy 5.6. Co-financing of Operational Programme Infrastructure and Environment - Environment friendly energy infrastructure and energy efficiency, actions 9.1, 9.2, 9.3 and 9.4 5.7. Implementation of projects funded by government of Sweden 19

20. National Fund for Environmental Protection and Water Management The National Fund uses the following forms of compensation: 1) interest loans; 2) grants; 3) transfer of funds to local units; 4) awards for promoting environmental protection and water management, however those awards cannot be granted to government or local authorities employees for doing their job; 5)provision of funds to banks; 6) provision of funds to local government units dealing with nature protection and water management; 7) guarantee . 20

21. National Fund for Environmental Protection and Water Management „The conditions of funding from the National Fund are determined by the National Fund Board, the ecological impact on environment as well as financial security of funds in terms of funds return are taken in to account.” Resolution No.230/09 date 21.12.2009 r. taken from the RULES FOR GRANT FUNDS financing from NATIONAL FUND FOR ENVIRONMENTAL PROTECTION AND WATER MANAGEMENT 21

22. National Fund for Environmental Protection and Water Management Program of the Green Investment Scheme (GIS ) ENERGY MANAGEMENT IN PUBLIC SERVICES BUILDINGS Objective indicators Product Index:Number of objects of thermo-modernization - about 3000 objects Outcome indicator : Amount of energy savings from project of thermo-modernization - 7 000 000 GJ / year [1 950 000 MWh / year] Impact indicator Reduction and avoidance of CO2 emissions due to energy savings thanks to implementation of the project will be around - 750 000 tonnes per year The minimum estimated cost of the project : 10 mln zł. 22

23. National Fund for Environmental Protection and Water Management Forms of financing: 1) grant; 2) interest loan. Co-financing limits: 1) Co-financing in the form of grants up to 30% the project costs; 2) Co-financing in the form of loans: up to 60% of the project costs; 3) The minimum total cost of the project: 10 mln zł. Beneficiaries Owners or managers of public buildings. 23

24. National Fund for Environmental Protection and Water Management Types of possible modernizations 1) Thermo-modernization, in particular: a) weatherization; b) the replacement of old windows; c) the replacement of exterior doors; d) the reconstruction of heating systems (including the exchange of heat source); e) ventilation and air conditioning modernization; f) preparation of technical documentation, schematics for the project; g) energy management systems in buildings; h) the usage of renewable energy technologies. 2) The change to energy-efficient lighting (as additional tasks taking place besides thermo-modernization ). 24

25. Banks In the energy sector and environmental protection in Central Europe, including Poland, operate large banks and financial corporations such as: European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Nordic Environment Finance Corporation (NEFCO), Nordic Investment Bank (NIB). 25

26. Banks • Polish banks that are associated with lending funds for investments in the RES sector • Bank Ochrony Środowiska • BOŚ Bank works in scope of National fund of environmental protection and water management • in the field of credit and loan services related to energy saving. • Bank Gospodarki Żywnościowej • BGZ Bank offers new investment credit-Green Energy. The loan is for construction of wind • farms, power plants producing power or heat from biomass or biogas. • Bank Gospodarstwa Krajowego. • BGK bank manages the program for energy savings under the banner of Thermo-modernization Fund. • Kredyt Bank • Offers credit for thermo-modernization and thermo-modernization bonus, sponsored by the thermo-modernization Fund of BGK bank. Amount of the premium - up to 20% of the loan (the investor repays only 80% of the amount of credit used). 26

27. Banks Rating of Poland regions in matter of investment attractiveness in the field of renewable energy Source: Institute of Renewable Energy 27

28. Banks Loans for the RES (in the period 1991 - mid 2009) Source: www.bosbank.pl 28

29. Banks The number of loans for the RES related investments Source: www.bosbank.pl 29

30. SDG Pro-Akademia ul. Piotrkowska 238 90-360 Łódź tel. 0-42-636-12-59 fax 0-42-636-12-26 www.proakademia.eu www.bioenergiadlaregionu.eu kochanska@proakademia.eu Thank you for your attencion