Development of renewable energy

1. Development of renewable energy A chance and a challenge for Poland

2. CONTINENTAL WIND PARTNERS & PS WIND MANAGEMENTLEADING WIND DEVELOPER 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 2007. 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. Existing Markets Poland 700 MW Romania 1100 MW Australia 1800 MW PL AU Prospective Markets RO HR Croatia 240 MW BG Bulgaria 320 MW TK Turkey 600 MW 2

3. POLAND IS AN ATTRACTIVE MARKET FOR RENEWABLE ENERGY INVESTMENTS CHANCE 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 Poland has good windconditions, not only in the northern regions

4. GRID CONNECTION CHALLENGE • 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 Many good projects fail because they cannot connect to the grid

5. REGULATIONS CHALLENGE • 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 Development of renewables requires a stabile and efficient legal system

6. PROPOSED SOLUTIONS CHANCE Cooperation between governmental authorities, grid operator and RES developerss is needed • 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

7. CONCLUSIONS The grid is the key to successful development of RES in Poland • 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