2

AL ANDALUS WIND POWER, S.L.

Financial Statements for the year ended 31 December 2013 and Directors' Report

AL ANDALUS WIND POWER, S.L. BALANCE SHEETS AT 31 DECEMBER 2013 AND 2012 (Expressed in euros)

The accompanying Notes 1 to 20 are an integral part of the balance sheet at 31 December 2013.

A S S E T S Notes 2013 2012

NON-CURRENT ASSETS 296,804,879 324,107,016

Intangible assets 5 - 3,035,906

Administrative concessions - 3,035,906

Property, plant and equipment 6 284,071,509 306,163,790

Land and buildings 284,071,509 306,163,790

Deferred tax assets 13.4 12,733,370 14,907,320

CURRENT ASSETS 70,754,685 69,074,076

Inventories 8 871,454 1,089,318

Trade and other receivables 7 8,904,942 5,066,965

Trade receivables for sales and services

8,878,949 5,059,848 Receivable from Group companies,

associates 16.1 21,387 - Other accounts receivable from public

authorities 13 4,606 7,117 Current investments in Group companies, associates 24,597,962 29,861,959

Current financial assets

7.1 and 16.1 24,597,962 29,861,959

Current financial investments 14,636,561 14,634,050

Current financial assets 7.2 14,636,561 14,634,050

Cash and cash equivalents 9 21,743,766 18,421,784

TOTAL ASSETS 367,559,564 393,181,092

AL ANDALUS WIND POWER, S.L. BALANCE SHEETS AT 31 DECEMBER 2013 AND 2012 (Expressed in euros)

E Q U I T Y A N D L I A B I L I T I E S Notes 201 3 2012

EQUITY (42,017,460) (44,839,060)

Shareholders' equity 11 (20,221,303) (14,530,270)

Share capital 17,155,410 17,155,410

Reserves 968,548 968,548

Previous years’ earnings (32,654,228) (23,364,935)

Profit/(Loss) for the year (5,691,033) (9,289,293)

ADJUSTMENTS FOR CHANGES IN VALUE (21,796,157) (30,308,790)

NON-CURRENT LIABILITIES 365,071,997 394,829,940

Non-current liabilities 283,328,731 311,730,430

Bank borrowings 12.1 252,191,363 268,432,158

Derivatives 10 31,137,368 43,298,271 Non-current liabilities to Group companies, associates 62,615,420 62,615,420

Non-current liabilities to Group companies, associates 12.2 62,615,420 62,615,420

Deferred tax liabilities 13.5 19,127,846 20,484,090

CURRENT LIABILITIES 44,505,027 43,190,212

Current liabilities 21,985,028 21,550,543

Bank borrowings 12.1 21,985,028 21,550,543

Current liabilities to Group companies, associa tes 15,480,389 11,997,985

Current liabilities to Group companies 12.2 15,480,389 11,997,985

Trade and other payables 7,039,610 9,641,684

Payable to suppliers - Group companies 12.2 3,377,540 7,507,221

Sundry accounts payable 12.3 2,797,632 2,129,868

Remuneration payable 12.3 2,328 2,327

Other accounts payable to public authorities 12.3 and 13 862,110 2,307

TOTAL EQUITY AND LIABILITIES 367,559,564 393,181,092

The accompanying Notes 1 to 20 are an integral part of the balance sheet at 31 December 2013.

5

AL ANDALUS WIND POWER, S.L. INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2 013 AND 2012 (Expressed in euros)

Notes 2013 2012

CONTINUING OPERATIONS

Revenue 15.1 47,190,042 37,890,097

Capitalised expenses of in-house work on assets 6 123,983 226,167

Other operating income 159,001 -

Staff costs 15.3 (52,320) (109,675)

Other operating expenses 15.4 (15,348,464) (12,131,240)

Depreciation and amortization charge 5 y 6 (22,263,928) (22,321,215)

Impairment and gains on the disposal of non-current assets 5 y 8 (3,206,106) -

Other profit/(loss)

50,210 -

OPERATING INCOME 6,652,418 3,554,134

Finance income 15.2 38,120 70,369

Finance costs 15.2 (14,827,036) (16,854,152)

FINANCIAL RESULTS (14,788,916) (16,783,783)

PROFIT/(LOSS) BEFORE TAX (8,136,497) (13,229,649)

Income tax 13 2,445,465 3,940,356

PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS (5,691,033) (9,289,293)

PROFIT/(LOSS) FOR THE PERIOD (5,691,033) (9,289,293)

The accompanying Notes 1 to 20 are an integral part of the income statement for 2013.

AL ANDALUS WIND POWER, S.L. STATEMENT OF CHANGES IN EQUITY (Expressed in euros) A) STATEMENTS OF RECOGNISED INCOME AND EXPENSE FOR THE YEARS ENDED 31 DECEMBER 2013 AND 2012

2013 2012

PROFIT/(LOSS) PER ABRIDGED INCOME STATEMENT (5,691, 033) (9,289,293)

Income and expense recognised directly in equity

Cash flow hedges 2,757,518 (14,991,498)

Tax effect (827,255 4,497,448 TOTAL INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY 1,930,263 (10,494,050)

Transfers to profit or loss

Cash flow hedges 9,403,385 8,054,829

Tax effect (2,821,015) (2,416,449)

TOTAL TRANSFERS TO PROFIT OR LOSS 6,582,370 5,638,380

TOTAL RECOGNISED INCOME AND EXPENSE 2,821,600 (14,144,963)

The accompanying Notes 1 to 20 are an integral part of the statement of changes in equity for 2013.

AL ANDALUS WIND POWER, S.L. STATEMENT OF CHANGES IN EQUITY (Expressed in euros) B) STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YE ARS ENDED 31 DECEMBER 2013 AND 2012

Registered share capital Reserves

Previous years’

earnings Profit/(Loss) for the year

Adjustments for changes in

value Total

Beginning balance at 31 December 2012 17,155,410 968,548 (23,364,935) (9,289,293) (30,308,790) (44,839,060)

I. Total recognised income and expense - - - (5,691,033) 8,512,633 2,821,600

II. Other changes in equity - - (9,289,293) 9,289,293 - -

Balance at 31 December 2013 17,155,410 968,548 (23,654,228) (5,691,033) (21,796,157) (42,017,460)

Registered share capital Reserves

Previous years’

earnings Profit/(Loss) for the year

Adjustments for changes in

value Total

Beginning balance at 31 December 2011 17,155,410 736,941 (13,930,747) (9,434,188) (25,453,120) (30,925,704)

I. Total recognised income and expense - - - (9,289,293) (4,855,670) (14,144,963)

II. Other changes in equity - 231,607 (9,434,188) 9,434,188 - 231,607

Balance at 31 December 2012 17,155,410 968,548 (23,364,935) (9,289,293) (30,308,790) (44,839,060)

The accompanying Notes 1 to 20 are an integral part of the statement of changes in equity for 2013.

AL ANDALUS WIND POWER, S.L. CASH FLOW STATEMENTS FOR 2013 AND 2012 (Expressed in euros) 2013 2012

A) CASH FLOWS FROM OPERATING ACTIVITIES 1. Profit/(Loss) before tax (8,136,497) (13,229,649) 2. Adjustments to profit/(loss): 40,258,951 39,104,998

a) Depreciation and amortisation (+) 22,481,792 22,321,215 b) Impairment and gains on the disposal of non-current assets (+/-) 2,988,243 - c) Finance costs 14,827,036 16,854,152 g) Finance income (-) (38,120) (70,369)

3. Changes in working capital (5,353,245) 1,581,473 a) Inventories (+/-). 1,089,318 (626,460) b) Trade and other receivables ( +/-) (3,837,977) (1,590,280) d) Payable to suppliers(+/-) (2,602,075) - f) Other non-current assets and liabilities (+/-) (2,511) 3,798,213

4. Other cash flows from operating activities: (14, 769,946) (14,114,521) a) Interest payable (-). (14,808,066) (14,183,937) c) Interest received (+). 38,120 69,416

5. Cash flows from operating activities (+/-1+/2+/- 3+/-4) 11,999,262 13,342,301

B) CASH FLOWS FROM INVESTING ACTIVITIES 6. Investment payable (-): (9,356,762) (226,167)

a) Group companies , associates (8,140,949) - c) Property, plant and equipment (1,213,301) (226,167) e) Current financial assets. (2,512) -

7. Proceeds from disposals (+): - 4,589,653 a) Group companies, associates - 4,554,543 e) Current financial assets. - 35,110

8. Cash flows from investing activities (7-6) (9,35 6,762) 4,363,486

C) CASH FLOWS FROM FINANCING ACTIVITIES 9. Proceeds and payments relating to equity instrum ents: - -

10. Liabilities instrument proceeds (and payments): 679,482 (11,556,581) a) Issues

3. Borrowing from Group companies and associates(+) 16,504,762 - b) Refund and repayment of

2. Bank borrowings (-). (15,825,280) (13,581,902) 3. Payable to Group companies, associates (+) - 2,025,321 5. Other payables (-) - - 12. Cash flows from financing activities (+/-9+/-10 -11) 679,482 (11,556,581)

D) EFFECT OF CHANGES IN EXCHANGE RATES E) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVAL ENTS (+/-

5+/-8+/-12+/-D) 3,321,982 6,149,206 Cash and cash equivalents at beginning of year 18,421,784 12,272,578 Cash and cash equivalents at end of year 21,743,766 18,421,784

The accompanying Notes 1 to 20 are an integral part of the cash flow statement for 2013.

AL ANDALUS WIND POWER, S.L. Notes to Financial Statements for the year ended 31 December 2013 1. Company activities

AL-ANDALUS WIND POWER, S.L. was incorporated in Madrid on 20 April 2007 before Madrid notary Mr. Ignacio Manrique Plaza under number 3,901 of his notary record under the name GALEASA, ENERGIAS AMBIENTALES DE GALICIA, S.L, which was changed in Madrid on 4 October 2007 before Madrid notary Mr. Segismundo Álvarez Royo-Villanova, under number 9,619 of his notary record. The Company's current registered office is at calle Cardenal Marcelo Spínola, nº 10, 28016 (Madrid). The Company object is the promotion, management, design, construction, operation and maintenance of facilities engaged in the production of alternative and renewable energies. The production, sale and/or operation of the energy generated by the facilities described above and, where appropriate, avail itself of the current and/or future legislation to promote the production of alternative and renewable energies. The performance of studies, consulting, projects, research and development services related to the aforementioned services. On 15 November 2007, the share capital was increased with a share premium through a non-monetary contribution with a charge to various financial investments. On 27 December 2007, and effective for accounting purposes on 1January 2007, there is a merger by absorption of Al-Andalus Wind Power, S.L., P.E. Santa Ana, S.L., Sistemas Energéticos Serón, S.A.U., Sistemas Energéticos Tíjola, S.A.U., Sistemas Energéticos Tinadas, S.A.U., P.E. El Colmenar II, S.L., P.E. La Noguera, S.L., P.E. Las Vegas, S.L., P.E. Los Isletes, S.L. and Agrupación Eólica Granadina, S.L. This merger qualified for the special mergers and absorption tax regime. Consequently, the balance sheets and income statements of the absorbed companies are included in those of the absorbing company, using the same amounts which would have been recognised in them. Information regarding the mergers and the tax benefits contributed by the absorbed companies were included in the financial statements for 2007. As a result of this merger, Al-Andalus Wind Power, S.L., became the owner of the various wind farms: P.E. El Colmenar II, P.E. Serón I, P.E. Serón II, P.E. Tijola, P.E. La Noguera, P.E. Santa Ana, P.E. Las Vegas and P.E. Los Isletes. At 31 December 2012, all of the wind farms are in operation. The activities that compose the company object may be carried out by the Company, either directly or indirectly, and through its ownership of other companies with an identical or similar company object. The Company belongs to a group of companies (ACS Group) which is managed in accordance with the Group's criteria. The ACS Group company Urbaenergía, S.L. is the primary shareholder of the Company which is in turn 100% owned by the ACS Group company Cobra Gestión de Infraestrucutras.

Regulatory Framework The special regime electricity production business in Spain is regulated by Spanish Electricity Industry Law 54/1997, of 27 November, and by the subsequent implementing regulations which are as follows:

- Royal Decree 436/2004, in force from 1 April 2004 to 1 June 2007.

- Royal Decree 661/2007, in force from 1 June 2007. The remuneration framework supporting renewable energies under the special regime for facilities which were registered in the pre-assignment register at 28 January 2012 was regulated up until this year by this royal decree. This Royal Decree stipulates two tariff regimes for wind-powered facilities; the market price option through a representative where upper limits ("ceilings") and lower limits ("floors") are established at the aggregate price (market price plus the premium) applicable to the sale of energy on the market; and the tariff option in which the regulated tariff is received. The facilities may choose the sale option for periods of no less than one year.

- Likewise, Royal Decree 661/2007 recognises in its transitional provision one that solar thermal

facilities, among others, which started up prior to 1 January 2008 have the right to maintain the premiums and incentives established under the previous regime (RD 436/2004, of 12 March) until 31 December 2012 in the market price sale option.

- In addition, Royal Decree 6/2009, of 30 April, introduces the pre-assignment system such that it limits

the pre-assigned facilities to the amounts and premiums set forth in RD 661/2007, as well as for those established going forward once the objectives of the 2020 Renewable Energies Plan are reached.

- The objective of Royal Decree 1614/2010, of 7 December, is to modify and regulate matters related to

electricity production from solar thermal and wind technologies, in a deficit control scenario. The main developments are the establishment of a limit on the equivalent operating hours entitled to a premium for solar thermal and wind power technologies, the obligation of the solar thermal energy industry to sell at a regulated tariff for the 12 months following the entry into force of the RD, or the start-up of the plant, if it were subsequent thereto and a 35% reduction of the premiums for wind power technology qualifying under RD 661/2007 and for the period between the approval of the RD and 31 December 2012.

- On 28 January 2012, Royal Decree-Law 1/2012 (RDL 1/2012) was published in the Official State

Gazette (Boletín Oficial del Estado, BOE), taking effect on the same day, which eliminated the pre-assignment remuneration process and the economic incentives for new facilities which produce electricity from cogeneration, renewable energy sources and waste.

- On 28 December 2012, Law 15/2012, of 27 December, on tax measures for energy sustainability was

published in the BOE which affects all facilities which produce electricity in Spain from 2013. Noteworthy among these measures is the creation of a 7% tax on activities related to the production and incorporation of electricity measured at power station busbars in the electric system (mainland, island and non-mainland). Likewise, this law also amends the current economic framework of certain renewable energy facilities excluding from the premium economic regime energy attributable to the use of fuel produced in facilities which use non-consumable renewable energy as a primary source, unless they are hybrid facilities which use non-consumable and consumable renewable energy sources (in which case the energy attributable to the use of the consumable renewable source could have the right to the premium economic regime), and the Ministry of Industry, Energy and Tourism is responsible for establishing the methodology for calculating the aforementioned energy.

- Royal Decree Law 2/2013 on urgent measures for the electricity system and the financial sector establishing certain adjustment to certain electricity industry costs was approved on 1 February 2013. From 1 January 2013 premium of the technologies are set at zero, eliminating the floor and ceiling of the market sale option, and maintaining the tariff sale option. It also modifies the ratio for updating the aforementioned tariffs which is now tied to the underlying inflation rather than the CPI. This royal legislative decree establishes that the owners of the facilities must choose between the sale of energy under the regulated tariff option or the option to sell freely on the market without receiving their premium. Once the option is chosen it is irrevocable. For practical purposes, this RDL lead the Company to choose the fixed tariff option from 2013.

- On 12 July 2013, Royal Decree-Law 9/2013 was published on urgent measures to guarantee the financial stability and sustainability of the electricity system which affect the remuneration regime for facilities which produce electricity from cogeneration, renewable energy sources and waste This royal decree-law, which entered into force on 14 July 2013, repealed, among others, RDL 661/2007, of 25 May, and RDL 6/2009, of 30 April, under which the Company's facilities which produce electricity qualified, in accordance with that described in the previous paragraphs, for the remuneration framework supporting renewable energies.

This royal decree-law introduces substantial changes to the applicable legal and economic framework, which will be based on the following principles:

o The remuneration of facilities which produce electricity under the special regime will be determined by: i) the sale of energy generated valued at market price and ii) a specific remuneration consisting of a period per unit of installed power which covers, where appropriate, if necessary, the investment costs of a standard facility which cannot be recovered in the market through the sale of energy, as well as a period for the operation which covers, where applicable, the difference between the operating costs and the revenue from the aforementioned standard facility's participation in the market.

o In order to calculate the specific remuneration for a standard facility over the course of its regulatory

useful life, and based on the activity of an efficient and well-managed company, the following will be taken into account: i) the revenue from the sale of energy valued at market production price, ii) the average operating costs necessary to carry out the activity and iii) the initial value of the investment of a standard facility.

o The remuneration regime established for each standard facility will not exceed the minimum level

necessary to cover the costs which allow these facilities to compete on an equal basis in the electricity market and to be able to obtain "reasonable profitability" with regard to each standard facility. This reasonable profitability will, before tax, be based on the average performance in the secondary market of government bonds for the ten years prior to the entry into force of the royal decree-law, plus a margin of 300 basis points which may be revised every six years.

o In order to calculate the specific remuneration for a standard facility, under no circumstances will the costs

or investments determined by law or administrative acts which are not applicable throughout Spain be taken into account. Furthermore, only the costs and investments which respond exclusively to electricity production will be taken into account.

o Royal Decree-Law 9/2013 will enable the revision of the parameters for this remuneration regime every

six years. o Lastly, the following specialities are established for the facilities developed in the island and non-mainland

electricity systems: i) exceptionally specific standard facilities may be defined and ii) the remuneration regime for these facilities may include, exceptionally, an incentive for the investment and execution during a certain period, when its installation entails a significant reduction in costs for the aforementioned systems.

- The bases for this new remuneration framework are included primarily in article 14 of Spanish Electricity Industry Law 24/2013, of 26 December, which also specifies the criteria for and the manner in which the remuneration parameters are to be revised for facilities which produce electricity from renewable energy sources, high-efficiency cogeneration and waste with a specific remuneration regime. Thus, the remuneration parameters shall be set for regulatory periods which will be effective for six years. The remuneration parameters may be revised prior commencement of the regulatory period. If this revision is not performed the parameters will be understood as extended for the entirety of the following regulatory period. Law 24/2013, of 26 December, also establishes that the reasonable profitability value for the remainder of the regulatory life will be established by law prior to the start of each regulatory period and that under no circumstances may the regulatory useful life or the standard value of the initial investment of a facility be revised once recognised. In addition, this law stipulates that the estimates for revenue from the sale of the energy generated for the remainder of the regulatory period will be revised every three years, valued at the market production price, based on

the evolution of market prices and the forecast for operating hours. Lastly, it establishes that the values of the remuneration for the operation and extended operation for technologies whose operating costs depend essential on the price of fuel will be updated at least annually. In this connection, in February 2014, a draft Ministerial Order which sets all of the above-mentioned parameters necessary to determine the remuneration applicable to renewable energies, cogeneration and waste was provided to the interested parties in the context of the hearing process commenced by the Spanish National Securities market Commission (Comisión Nacional de los Mercados de la Competencia, CNMC). In practice, the Company's facilities are subject to the new remuneration model established by the Spanish Electricity Industry Law and by RDL 9/2013, since the latter's entry into force. Thus, the revenue received from the energy sales made since 14 July 2013 have been settled by means of a payment on account of the remuneration which ultimately applies.

In this connection, the Company has evaluated the primary implications that the current regulatory framework described above will have on its income and cash flows pursuant to the additional information available as a result of the draft ministerial order detailed. The sole director considers that its impact has not reduced the recoverable amount of property, plant and equipment to below its carrying amount. During the first half of 2013, the wind farms invoiced under the regulated tariff option.

2. Basis of presentation of the abridged financial sta tements

2.1) Regulatory financial reporting framework applicable to the Company

These financial statements were prepared by the sole director in accordance with the regulatory financial reporting framework applicable to the Company, which consists of:

a) The Spanish Commercial Code and all other Spanish corporate law. b) The Spanish National Chart of Accounts approved by Royal Decree 1514/2007. c) The mandatory rules approved by the Spanish Accounting and Audit Institute in order to implement

the Spanish National Chart of Accounts and its supplementary rules.

d) All other applicable Spanish accounting legislation.

2.2) Fair presentation

The financial statements, which were obtained from the accounting records of AL ANDALUS WIND POWER, S.L., are presented in accordance with Royal Decree 1514/2007 approving the Spanish National Chart of Accounts and, accordingly, present fairly the Company's equity, financial position and results of operations and cash flows. These financial statements at 31 December 2013, which were formally prepared by the Company’s sole director, will be submitted for approval by the sole shareholder, and it is considered that they will be approved without any changes. The financial statements for 2012 were approved by the shareholders at the Annual General Meeting held on 28 May 2013. 2.3) Going concern principle of accounting The wind farms currently being operated by the Company have not yet reached the optimum profitability established in the business plan and, consequently, the Company suffered losses in recent years which were greater than expected leading to an equity deficit at 31 December 2013. In this context, as indicated in Note 12, the Company's shareholders have granted a long-term participating loan to it for the purpose of restoring the equity balance. As a result, since the Company also has the financial support of the Group to which it belongs for its normal course of business and taking into account that in accordance with the Company's business plan it expects to generate future funds, the sole shareholder submits the financial statements in accordance with the going concern principle of accounting. The Company's sole director prepared the financial statements in accordance with the going concern principle of accounting taking into account the expected cash flows, credit facilities available, as well as the on-going financial support of the Group to which it belongs in order to meet the obligations it has undertaken so that it may realise its assets and settle its liabilities for the amounts and with the classification reflected in the financial statements. As indicated in Note 11.3, no grounds for dissolution apply to the Company.

2.4) Accounting policies The financial statements were prepared in accordance with the generally accepted accounting principles and measurement bases described in Note 4. All obligatory accounting principles with a material impact on the abridged financial statements were applied. 2.5) Key issues in relation to the measurement and estimation of uncertainty In preparing the accompanying financial statements estimates were made by the Company's sole director in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These estimates relate basically to the following: - The useful life of the property, plant and equipment and intangible assets (Notes 4.1 and 4.2). - Impairment of non-current assets (Note 4.1 and 4.2). - The fair value of certain financial instruments (Note 4.4). - The recovery of deferred tax assets recognised (Note 4.7) - Credit risk management (Note 20.1). Although these estimates were made on the basis of the best information available at the date of preparation of these financial statements on the events analysed, events that take place in the future might make it necessary to change these estimates in coming years. Changes in accounting estimates would be applied prospectively, recognising the effects of the change in estimates in the financial statements. 2.6) Comparative information The information relating to 2012 included in these notes to the financial statements is presented for comparison purposes with that relating to 2013. 2.7) Joint property entity The Company participates in the joint property entity “Promotora Zede Arcos”. At 31 December 2013 and 2012, however, the Company did not include its 8.31% ownership of the aforementioned joint property entity in its financial statements due to its understanding that the effect that its proportional inclusion would have would be entirely immaterial, as can be seen below in the analysis of the figures from the most financial statements at 31 December 2013:

2.8) Grouping of items

Certain items in the balance sheet, income statement, statement of changes in equity and cash flow statement are grouped together to facilitate their understanding; however, whenever the amounts involved are material, the information is broken down in the related notes to the financial statements. 2.9) Changes in accounting policies

In 2013 there were no changes in accounting policies with respect to those applied in 2012.

(euros)

Promotora Zede Arcos

Total assets 43,363 Sales 113 Profit/(Loss) for 2013 (Loss) (3,161)

2.10) Correction of errors

In preparing the accompanying financial statements no significant errors were detected that would have made it necessary to restate the amounts included in the financial statements for 2012.

3. Allocation of profit/(losses)

The proposed allocation of loss for 2013 that the Company's sole director will submit for approval by the shareholders at the General Meeting is as follows:

Euros

Profit/(Loss) for 2013 (Loss) (5,691,033) Allocation of profit/(loss): Prior years' losses (5,691,033)

3.1) Restrictions on the distribution of dividends As stated in Note 12, in accordance with the financing agreement entered into with various financial institutions, there are restrictions on the distribution of dividends to shareholders, unless the conditions established in provision 14 is met. The provisions are: - A Debt-Service Coverage Ratio of more than 1.1 in the annual verification of the audited data

corresponding to the previous year.

- No early maturity event has arisen and the distribution to shareholders does not give rise to any of the aforementioned events;

- Any other significant debts owed by the borrowers which have matured have been settled in full, including those arising from the main credit facility.

- The first instalment of the main credit facility has been repaid.

- The debt service reserve account is funded at any given time according to that envisaged in the financing agreement.

4. Accounting Policies

The principal measurement bases applied by AL ANDALUS WIND POWER, S.L. in preparing its financial statements, in accordance with the Spanish National Chart of Accounts, were as follows: 4.1) Intangible assets

This account includes the positive difference arising from the merger which took place in 2009 as a result of the Company's merger with several investees. This merger goodwill was credited to intangible assets as it corresponded mainly to administrative authorisations of certain of the farms developed by the Companies (administrative concession, see Note 5).

These assets are amortised on a straight-line basis over the period in which it is estimated that they will contribute to the obtainment of profit by the Group according to the following breakdown:

The Group recognises any impairment loss on the carrying amount of these assets as set forth in Notes 4.2 below, such that in 2013 all of the intangible assets were considered to be impaired.

4.2) Property, plant and equipment

Property, plant and equipment are initially recognised at acquisition cost and are subsequently reduced by the related accumulated depreciation and by any Impairment and gains on the disposal of non-current assets recognised. Property, plant and equipment upkeep and maintenance expenses are recognised in the income statement for the year in which they are incurred. However, the costs of improvements leading to increased capacity or efficiency or to a lengthening of the useful lives of the assets are capitalised. For non-current assets that necessarily take a period of more than twelve months to get ready for their intended use, the capitalised costs include such borrowing costs as might have been incurred before the assets are ready for their intended use and which have been charged by the supplier or relate to loans or other borrowings directly attributable to the acquisition or production of the assets. In-house work on non-current assets is measured at accumulated cost (external costs plus in-house costs, determined on the basis of in-house materials consumption, labour and general manufacturing costs calculated using absorption rates similar to those used for the measurement of inventories). The Company depreciates the cost of its property, plant and equipment using the straight-line method over the years of estimated useful life of the assets, the detail being as follows:

Impairment of property, plant and equipment At the end of each reporting period, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets might have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate itself cash flows that are independent from other assets, the Company estimates the recoverable amount of the smallest identifiable cash-generating unit to which the asset belongs. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately.

Years of Estimated Useful Life

Administrative concessions

30

Years of Estimated Useful Life

Construction and installation work

18

The recoverable amount is the higher of fair value less costs to sell and value in use. In order to calculate the value in use of this type of asset, a projection is made of the expected cash flows until the end of the asset's useful life. The projections include both known data (based on the project agreements) as well as basic assumptions supported by specific studies carried out by experts or other historical data (demand, production, etc.). Likewise, macroeconomic data projections are made: inflation, interest rate, etc. using the data provided by independent specialized sources. The discount rates used to discount these cash flows take into account the cost of equity and in each case includes the business risk. As a result of the analysis performed, the sole director recognised the corresponding impairment of the Company's assets (Note 5). 4.3) Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating leases. The Company as lessee Assets acquired under finance leases are classified based on the nature of the leased asset. A liability is recognised for the same amount, which is the lower of the fair value of the leased asset and the present value at the start of the lease of the agreed upon minimum lease payments. Lease payments are distributed between finance costs and the reduction of the liability. The same depreciation, impairment and derecognition criteria are applied to the leased assets as to assets of the same nature. Payments under operating leases are recognised as expenses in the income statement when incurred.

4.4) Financial instruments 4.4.1) Financial assets The financial assets held by the Company are classified in the following categories:

a) Loans and receivables: financial assets arising from the sale of goods or the rendering of services in the

ordinary course of the Company's business, or financial assets which, not having commercial substance, are not equity instruments or derivatives, have fixed or determinable payments and are not traded in an active market. Interest income is calculated in the year in which it accrues on a time proportion basis.

b) Held-to-maturity investments: debt securities with fixed maturity and determinable payments that are

traded in an active market and which the Company has the positive intention and ability to hold to the date of maturity.

Initial recognition Financial assets are initially recognised at the fair value of the consideration given, plus any directly attributable transaction costs.

Subsequent measurement Loans and receivables and held-to-maturity investments are measured at amortised cost. At least at each reporting date the Company tests financial assets not measured at fair value through profit or loss for impairment. Objective evidence of impairment is considered to exist when the recoverable amount of the financial asset is lower than its carrying amount. When this occurs, the impairment loss is recognised in the income statement. In particular, the Company calculates valuation adjustments relating to trade and other receivables, by taking into account the date on which the receivables are due to be settled and the solvency of the debtors. The Company derecognises a financial asset when it expires or when the rights to the cash flows from the financial asset have been transferred and substantially all the risks and rewards incidental to ownership of the financial asset have been transferred, such as in the case of the outright sale of assets, factoring of trade receivables in which the Company does not retain any credit or interest rate risk, sale of financial assets under an agreement to repurchase them at their fair value or the securitisation of financial assets in which the transferor does not retain any subordinated debt, provide any type of guarantee or assume any other type of risk. However, the Company does not derecognise financial assets, and recognises a financial liability for an amount equal to the consideration received, in transfers of financial assets in which substantially all the risks and rewards of ownership are retained, such as in the case of bill discounting, with-recourse factoring, sales of financial assets under an agreement to repurchase them at a fixed price or at the selling price plus interest and the securitisation of financial assets in which the transferor retains a subordinated interest or any other kind of guarantee that absorbs substantially all the expected losses. The Company derecognises financial liabilities when the obligations giving rise to them cease to exist. 4.4.2) Financial liabilities Financial liabilities include accounts payable by the Company that have arisen from the purchase of goods or services in the normal course of the Company’s business and those which, not having commercial substance, cannot be classed as derivative financial instruments. Accounts payable are initially recognised at the fair value of the consideration received, adjusted by the directly attributable transaction costs. These liabilities are subsequently measured at amortised cost. Liability derivative financial instruments are measured at fair value, following the same criteria as for financial assets held for trading described in the previous section. The Company derecognises financial liabilities when the obligations giving rise to them cease to exist. 4.4.3) Hedging financial instruments The Company uses derivative financial instruments to hedge the risks to which its business activities, operations and future cash flows are exposed. Basically, these risks relate to changes in interest rates. The Company arranges hedging financial instruments in this connection, mainly IRS (Interest Rate Swap). In order for these financial instruments to qualify for hedge accounting, they are initially designated as such and the hedging relationship is documented. Also, the Company verifies, both at inception and periodically over the term of the hedge (at least at the end of each reporting period), that the hedging relationship is effective, i.e. that it is prospectively foreseeable that the changes in the fair value or cash flows of the hedged item (attributable to the hedged risk) will be almost fully offset by those of the hedging instrument and that, retrospectively, the gain or loss on the hedge was within a range of 80-125% of the gain or loss on the hedged item.

In 2013 and 2012, the Company used only cash flow hedges. In hedges of this nature, the portion of the gain or loss on the hedging instrument that has been determined to be an effective hedge is recognised temporarily in equity and is recognised in the income statement in the same period during which the hedged item affects profit or loss, unless the hedge relates to a forecast transaction that results in the recognition of a non-financial asset or a non-financial liability, in which case the amounts recognised in equity are included in the initial cost of the asset or liability when it is acquired or assumed. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained in equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is transferred to net profit or loss for the year. The fair value of the hedging financial instruments used by the Company (interest rate swaps) is calculated by discounting future settlements between fixed and floating interest rates to their present value, in line with implicit market rates, obtained from long-term interest rate swap curves. Implicit volatility is used to calculate the fair values of caps and floors using option valuation models. The derivatives arranged by the Company at 31 December 2013 met all the requirements indicated above to qualify as hedges and, therefore, the changes in the fair value of these derivative financial instruments for the year ended 31 December 2013 were recognised under “Valuation adjustments” in equity. 4.5.) Inventories Inventories are recognised at acquisition price or production cost. The acquisition price includes the additional expenses incurred up until the goods are in the warehouse, such as customs', insurance and transport expenses, etc. The production cost is determined by adding to the acquisition price of the raw materials the direct or indirect costs attributable to the product. Inventories that require more than twelve months to get ready for sale include as part of their acquisition or production cost the borrowing costs which have been incurred up to that date. No valuation adjustments were made to the inventories in 2013 since the Company considered that the net realisable value of the goods at those dates was less than the acquisition price or production cost. 4.6) Cash and cash equivalents This heading includes the cash on hand, in bank current accounts and the deposits and temporary acquisitions of assets which meet all of the following requirements:

• They are convertible into cash. • At the acquisition date, their maturity was no more than three months. • They are not subject to a significant risk of changes in value. • They are part of the Company's ordinary cash management policy.

For cash flow purposes, the temporary overdrafts which form part of the Company's cash management are charged to cash and cash equivalents.

4.7) Income tax

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income). The current income tax expense is the amount payable by the Company as a result of income tax settlements for a given year. Tax credits and other tax benefits, excluding tax withholdings and pre-payments, and tax loss carryforwards from prior years effectively offset in the current year reduce the current income tax expense. The deferred tax expense or income relates to the recognition and derecognition of deferred tax assets and liabilities. These include temporary differences measured at the amount expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled. Deferred tax liabilities are recognised for all taxable temporary differences, except for those arising from the initial recognition of goodwill or of other assets and liabilities in a transaction that is not a business combination and affects neither accounting profit/(loss) nor taxable profit (tax loss). Deferred tax assets are recognised to the extent that it is considered probable that the Company will have taxable profits in the future against which the deferred tax assets can be utilised. In order to determine the amount of the deferred tax assets which may be recognised, the sole director estimates the amounts and the dates on which the future tax gains will be obtained and the reversal period of the temporary tax differences. Deferred tax assets and liabilities arising from transactions charged or credited directly to equity are also recognised in equity. The deferred tax assets recognised are reassessed at the end of each reporting period and the appropriate adjustments are made to the extent that there are doubts as to their future recoverability. Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that they will be recovered through future taxable profits. The Company is part of consolidated income tax group 30/90 headed by ACS Actividades de Construcción y Servicios, S.A. 4.8) Income and expense

Revenue and expenses are recognised in profit or loss for the year on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises. Revenue is measured at the fair value of the consideration received, net of discounts and taxes. Revenue from sales is recognised when the significant risks and rewards of ownership of the goods sold have been transferred to the buyer, and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at the end of the reporting period, provided the outcome of the transaction can be estimated reliably. Interest income from financial assets is recognised using the effective interest method and dividend income is recognised when the shareholder's right to receive payment has been established. Interest and dividends from financial assets accrued after the date of acquisition are recognised as income.

4.9) Related-party transactions The Company performs all its transactions with related parties on an arm's length basis. Also, the transfer prices are adequately supported and, therefore, the Company’s sole director considers that there are no material risks in this connection that might give rise to significant liabilities in the future. 4.10) Provisions and contingencies When preparing the financial statements, the Company’s sole director made a distinction between:

a) Provisions: credit balances covering present obligations arising from past events, the settlement of which is likely to cause an outflow of resources, but which are uncertain as to their amount and/or timing.

b) Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the Company's control.

The financial statements include all the provisions with respect to which it is considered that it is more likely than not that the obligation will have to be settled. Contingent liabilities are not recognised in the financial statements but rather are disclosed in the notes to the financial statements, unless the possibility of an outflow in settlement is considered to be remote. Provisions are measured at the present value of the best possible estimate of the amount required to settle or transfer the obligation, taking into account the information available on the event and its consequences, recording the adjustments which arise as a result of the update of these provisions as a finance cost as it accrues. 4.11) Current/non-current classification

Balances are classified as non-current and current in the accompanying balance sheet. Current balances include balances which the Company expects to sell, consume, pay or realise during its normal operating cycle. The remaining balances are classified as non-current. 4.12) Company actions which impact the environment Any operation, the main aim of which is to prevent, reduce or repair environmental damage is considered to be an environmental activity. Investments made in connection with environmental activities are measured at acquisition cost and are capitalised to non-current assets in the year in which the related expenses are incurred. The costs arising from the business activities aimed at protecting and improving the environment are accounted for as an expense of the year in which they are incurred. The costs incurred on items of property, plant and equipment the purpose of which is to minimise the environmental impact and protect and improve the environment are recognised as an addition to property, plant and equipment. 4.13) Termination benefits

Under current labour legislation, the Company is required to pay termination benefits to employees terminated without just cause. Termination benefits that can be reasonably quantified are recognised as an expense in the year in which the decision to terminate the employment relationship is taken. The Company's sole director does not expect any significant dismissals or terminations to arise and, accordingly, no provision was recognised in this connection in the accompanying balance sheet at 31 December 2013.

5. Intangible assets

The breakdown of the balance of “Intangible Assets” in the balance sheets at 31 December 2013 and 2012 is as follows (in euros): 2013

2012

Balance at 31/12/2011

Additions or charges for the year

Balance at 31/12/2012

Administrative concessions 3,431,796 - 3,431,796 Total administrative concessions 3,431,796 - 3,431,796 Accumulated depreciation (281,497) (114,393) (395,890) Total accumulated depreciation (281,497) (114,393) (395,890) Total intangible assets 3,150,300 (114,393) 3,035,906

At 31 December 2013, the Company recognised impairment losses related to the value of its intangible assets corresponding to grid connection rights, wind studies and administrative licences and authorisations for the start-up of the wind farms, amounting to EUR 2,988,242 which was recorded under “Impairment and gains or losses on disposals of non-current assets” in the income statement. These values arose as merger goodwill and were recorded as an addition to intangible assets. The wind farms to which they were allocated were the following:

Net carrying amount

Administrative concessions distribution

31/12/2013 31/12/2012

P.E. LAS VEGAS - 877,574

P.E. LA NOGUERA - 1,159,074

P.E. LOS ISLETES - 999,258

TOTAL - 3,035,906

Balance at 31/12/2012

Additions or charges for the year

Balance at 31/12/2013

Administrative concessions 3,431,796 - 3,431,796 Total administrative concessions 3,431,796 - 3,431,796 Accumulated depreciation (395,890) (47,664) (443,554) Total accumulated depreciation (395,890) (47,664) (443,554)

Valuation adjustments:

Total Impairment and gains on the disposal of non-current assets - (2,988,242) (2,988,242)

Total intangible assets 3,035,906 - -

6. Property, plant and equipment

The breakdown of the balance in “Property, Plant and Equipment” in the balance sheets at 31 December 2013 and 2012 is as follows:

(euros) 31/12/2011 Additions and

charges for the year 31/12/2012

Cost:

Plant

P.E. SANTA ANA 58,374,302 9,718 58,384,020 P.E. SANTA ANA (EXPANSION) 17,390,989 - 17,390,989 P.E. TIJOLA 59,653,274 - 59,653,274 P.E. EL COLMENAR II 36,330,262 318,269 36,648,531 P.E. SERON 75,636,880 - 75,636,880 P.E. SERON II 15,340,960 - 15,340,960 P.E. LA NOGUERA 51,022,281 - 51,022,281 P.E. LAS VEGAS 36,248,996 - 36,248,996 P.E. LOS ISLETES 43,087,357 129,787 43,217,144 393,085,301 457,774 393,543,075

Accumulated depreciation:

Plant

P.E. SANTA ANA (13,468,211) (4,296,804) (17,765,015) P.E. TIJOLA (10,684,462) (3,357,864) (14,042,326) P.E. EL COLMENAR II (7,673,390) (2,063,750) (9,737,140) P.E. SERON (13,520,881) (4,235,184) (17,756,065) P.E. SERON II (2,864,937) (865,392) (3,730,329) P.E. LA NOGUERA (6,523,821) (2,049,900) (7,550,387) P.E. LAS VEGAS (5,500,487) (2,870,868) (9,394,689) P.E. LOS ISLETES (4,936,274) (2,467,060) (7,403,333) (65,172,463) (22,206,822) (87,379,285)

Net carrying amount 327,912,838 (22,206,822) 306,163,790

(euros)

31/12/2012

Additions and

charges for the year

31/12/2013

Cost:

Plant

P.E. SANTA ANA 58,384,020 - 58,384,020 P.E. SANTA ANA (EXPANSION) 17,390,989 - 17,390,989 P.E. TIJOLA 59,653,274 - 59,653,272 P.E. EL COLMENAR II 36,648,531 - 36,648,531 P.E. SERON 75,636,880 123,983 75,760,683 P.E. SERON II 15,340,960 - 15,340,960 P.E. LA NOGUERA 51,022,281 - 51,022,281 P.E. LAS VEGAS 36,248,996 - 36,248,996 P.E. LOS ISLETES 43,217,144 - 43,217,144 393,543,075 123,983 393,667,058

Accumulated depreciation:

Plant

P.E. SANTA ANA (17,765,015) (4,297,032) (22,062,047) P.E. TIJOLA (14,042,326) (3,357,864) (17,400,190) P.E. EL COLMENAR II (9,737,141) (2,070,108) (11,807,249) P.E. SERON (17,756,065) (4,235,184) (21,991,249) P.E. SERON II (3,730,329) (865,391) (4,595,721) P.E. LA NOGUERA (9,394,689) (2,870,868) (12,265,557) P.E. LAS VEGAS (7,550,387) (2,049,900) (9,600,287) P.E. LOS ISLETES (7,403,333) (2,469,917) (9,873,250) (87,379,285) (22,216,264) (109,595,549)

Net carrying amount 306,163,790 (22,092,281) 284,071,509

The start-up dates for each of the farms were the following:

Start-up date Start-up certificate date

P.E. SERÓN 29/12/2008 26/09/2008

P.E. SERON II 17/07/2008 05/10/2008

P.E. TIJOLA 22/10/2008 29/07/2008

P.E. EL COLMENAR 22/02/2008 12/12/2007

P.E. SANTA ANA 12/09/2008 06/06/2008

SANTA ANA EXPANSION 25/08/2009 27/07/2009

P.E. LOS ISLETES 30/12/2009 26/08/2009

P.E. LAS VEGAS 23/02/2009 26/11/2008

P.E. LA NOGUERA 01/08/2009 16/04/2009

The additions recognised in 2013 correspond in full to the capitalisation of the expenses related to the construction work in progress corresponding to compulsory purchases of land. There are no fully amortised assets under the Company's property, plant and equipment at 31 December 2013 and 2012. The Company takes out insurance policies to cover the possible risks to which its property, plant and equipment are subject. At 2013 and 2012 year end these risks were adequately covered. To secure compliance with the obligations arising from the financing agreement described in Note 12, the Company definitively assigned to the lenders all of the collection and other rights and the guarantees arising from the plant construction, operation, maintenance and refurbishment agreements, management and administration services, as well as land use and energy sale and purchase agreements and indemnities for the insurance policies taken out by the Company. Since new and significant regulatory changes occurred in the Spanish electricity system in 2013 (see Note 1), the Company's sole director tested the property, plant and equipment for impairment at 31 December 2013.

In order to carry out the aforementioned impairment test, in compliance with the corresponding current legislation, the recoverable amount of all of the assets was established as the higher of value in use and the net sale price that would be obtained from the assets.

The directors deemed the recoverable amount the value in use of the assets.

In order to calculate the value in use of this type of asset, a projection is made of the expected cash flows until the end of the asset's useful life (20 years from its entry into service, plus 5 additional years as a procedure for calculating the residual value), including the best estimate of the income which they expect to receive pursuant to Royal Decree-Law 9/2013 and its definitive implementing provisions in the process of approval. The projections include both known data (based on the project agreements) as well as basic assumptions supported by specific studies carried out by experts or other historical data (demand, production, etc.). Likewise, macroeconomic data projections are made: inflation, interest rate, etc. using the data provided by independent specialized sources.

The project's operating cash flows are discounted at an average floating WACC rate based on the evolution of the gearing envisaged for the project in the remainder of its useful life. The discount rate used by the Company in its impairment test ranges from 5.5% to 6.5%. Taking into account the analysis carried out by the Company with respect to the evolution of the regulatory environment described in Note 1, no impairment losses were recognised on property, plant and equipment in the income statement for the year, which was not the case for the associated intangible assets (Note 5). The estimated income in accordance with the new regulations was obtained based on the parameters of the draft ministerial order described in Note 1 which, at the reporting date, is pending approval and constitutes the best estimate at said date.

7. Trade receivables and current financial assets

The detail of the financial assets at 31 December 2013 and 2012 is as follows:

(euros) 2013 Current financial assets

Trade receivables for sales and services 8,878,949 Receivable from Group companies, associates 21,387 Current financial assets_ Current accounts with Group companies (Note 7.1) 24,597,962 Current financial assets_ Guarantees and deposits (Note 7.2) 14,636,561

48,134,859

(euros) 2012 Current financial assets

Trade receivables for sales and services 5,059,848 Other accounts receivable from public authorities (Note 13) 7,117 Current financial assets_ Current accounts with Group companies (Note 7.1) 29,861,959 Current financial assets_ Guarantees and deposits (Note 7.2) 14,634,050

49,562,974

7.1.) Current financial investments in Group companies, associates This heading includes the current accounts with Group companies, associates, the detail of which at 31 December 2013 and 2012 is as follows:

2013

(euros) Other current

accounts Total

Cobra Instalaciones y Servicios, S.A. 24,597,962 24,597,962

Total tax receivables 24,597,962 24,597,962

2012

(euros) Other current

accounts Current tax (Note 13) Total

Cobra Instalaciones y Servicios, S.A. 29,142,206 - 29,142,206

ACS, Actividades de Construcción y Servicios, S.A. - 719,753 719,753

Total tax receivables 29,142,206 719,753 29,861,959

At 31 December 2013, the current account with Cobra Instalaciones y Servicios, S.A. is composed mainly of the amounts related to prepayments and income tax statements from prior years in the Company's favour pending settlement amounting to EUR 24,590,935.

7.2.) Current financial investments This heading includes the Company's deposits and guarantees. The detail at 31 December 2013 and 2012 is as follows:

2013

(euros) Beginning

balance Additions Derecognitions Transfers Ending balance

Debt service reserve fund 14,570,052 570 (58) - 14,570,563 Short-term guarantees given 65,517 76,000 (74,000) - 67,517 Promotora Zede Arcos, CB deposit (1,519) - - - (1,519) Total 14,634,050 63,917 (99,026) - 14,636,561

2012

(euros) Beginning

balance Additions Derecognitions Transfers Ending balance

Fondo de reserva al servicio de la deuda 14,609,828 46,109 (85,884) - 14,570,052 Short-term guarantees given 56,026 17,808 (8,317) - 65,517 Promotora Zede Arcos, CB deposit 3,306 - (4,825) - (1,519) Total 14,669,160 63,917 (99,026) - 14,634,050

This heading is comprised mainly of the deposit made by the Company in relation to the debt service reserve fund amounting to EUR 14,570,563 and EUR 14,570,052 in 2013 and 2012, respectively. This fund will be maintained until all of the payment obligations arising from the financing agreement described in Note 12 have been settled.

8. Inventories

"Inventories" in the balance sheet at 31 December 2013 and 31 December 2012 relates to spare parts which, in accordance with the maintenance and guarantee agreement entered into with the supplier Siemens, S.A. (Spain) on 20 July 2007, are held in the Company's facilities. In 2013 a loss for spare parts amounting to EUR 217,864 was charged under "Impairment and gains or losses on disposals of non-current assets" in the income statement.

9. Cash and cash equivalents

The detail of the assets classified under "Cash and cash equivalents" at 31 December 2013 and 2012 is as follows:

(euros) 2013

Cash and cash equivalents

Cash equivalents 53

Demand deposits 21,743,713

21,743,766

(euros) 2012

Cash and cash equivalents

Cash equivalents 14

Demand deposits 18,421,770

18,421,784 The balance recognised under "Other cash equivalents" corresponds mainly to the investment of one-off cash surpluses in various financial assets for a period of no more than three months. At 2013 and 2012 year end, the entire balance included under "Cash" is unrestricted.

10. Derivative financial instruments

The detail of the financial liabilities classified under “Derivatives and Other” at 31 December 2013 and 2012 is as follows:

(euros) 2013

Long term:

Hedging derivatives 31,137,368

31,137,368

(euros) 2012 Long term:

Hedging derivatives 43,298,271

43,298,271

The Company uses derivative financial products mainly to eliminate or significantly reduce the interest rate risk related to the syndicated loan and, therefore, they are considered hedging transactions. These products were arranged to hedge the risk of fluctuations in the interest rate on the syndicated loan taken out on 13 July 2007 which is described in Note 12.1. At 31 December 2013 and 2012, the Company had arranged transactions which related, basically, to interest rate swaps, the detail being as follows:

(euros) 2013 2012

Notional amount (euros) .Banesto .BBVA .Caixa .Natixis

201,443,654 50,360,911 50,360,911 50,360,911 50,360,911

212,904,350 53,226,088 53,226,088 53,226,088 53,226,088

Date arranged 17/07/2007 17/07/2007 Effective commencement date 13/07/2007 13/07/2007 Maturity date 13/07/2019 13/07/2019 Strike 4.874% 4.874%

Indicator 6-month Euribor 6-month Euribor The Company met the requirements described in Note 4 on measurement bases in order to classify the financial instruments detailed as hedges. At 31 December 2013 and 2012, the fair values of these financial instruments are reflected in financial assets and financial liabilities as follows:

(euros) 2013 2012 Non-current liabilities - Derivatives (Receivable) .Banesto .BBVA .Caixa .Natixis

7,784,3427,784,342

7,784,342 7,784,342

10,824,568 10,824,568 10,824,568 10,824,568

Total 31,137,368 43,298,271

The notional amount of the financial swap is reduced in a manner similar to the principal of the syndicated loan mentioned above and its final maturity is 13 July 2019. The Group determines the fair value of interest rate derivatives (fixed-rate swaps or IRSs) by discounting cash flows on the basis of the implicit euro interest rate calculated on the basis of market conditions at the measurement date. The pertinent hedging relationships were designated at 31 December 2013 by the Parent and are fully effective. In these hedging relationships, the changes in the floating Euribor rate of the hedged borrowings constitute the hedged risk. At 31 December 2013, EUR 2,757,518 was recognised directly in equity in relation to the effective portion of the cash flow hedging relationships of the IRSs and had accrued interest at the aforementioned date amounting to EUR 9,403,385, which are included under "Finance costs" in the income statement for the year

ended 31 December 2013 (Note 15.2) and are fully effective. In these hedging relationships, the changes in the floating Euribor rate of the hedged borrowings constitute the hedged risk.

11. Equity and shareholders’ equity 11.1) Share capital At 31 December 2013 and 2012, the share capital was EUR 17,155,410 comprised of 694,551 fully subscribed and paid indivisible shares of EUR 24.70 par value each and the detail of the shareholding was as follows:

(euros) %

Ownership

Shares

Urbaenergía, S.L. (Grupo ACS) 66.2 459,787 Energía y Recursos Ambientales, S.A. (Grupo ACS) 33.8 234,764 Total 100 694,551

11.2) Legal reserve

Under the Consolidated Spanish Corporate Enterprises Law (Texto Refundido de la Ley de Sociedades de Capital), 10% of net profit must be transferred to the legal reserve until the balance of this reserve reaches 20% of the share capital. The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount. Except as mentioned above, until the legal reserve exceeds 20% of share capital, it can only be used to offset losses, provided that other reserves are not available for this purpose. At 31 December 2013 the legal reserve had not been constituted.

11.3) Equity situation

In accordance with Article 363 of the Spanish Corporate Enterprises Law, the company will be dissolved when losses incurred reduce its equity to less than one-half of its share capital, unless capital is increased or decreased by a sufficient amount, and provided that the Company does not need to declare insolvency.

In accordance with Royal Decree-Law 10/2008, the valuation adjustments arising from cash flow hedges which are pending recognition in the income statement do not need to be recognised in equity for the purposes of profit distribution, capital reductions and obligatory dissolution.

Likewise, Royal Decree-Law 10/2008, of 12 December, established that during a two-year period the decrease in a company's equity due to impairment losses arising from property, plant and equipment, real estate investments and inventories would not be taken into account for the purpose of capital reductions and grounds for mandatory dissolution. This two-year period was subsequently extended on three occasions, the last being RDL 4/2014, of 7 March, which extended its effectiveness until the year ended 31 December 2014.

Furthermore, transitional provision three of Law 16/2007 on accounting reform stipulates that the participating loans regulated in article 20 of Royal Decree-Law 7/1996 are considered equity for the purposes of capital reductions and the liquidation of companies. Thus, despite the equity deficit at 31 December 2013, due to the participating loan granted by the shareholders of the Company (Note 12.2), the Company's equity for the purpose of article 363 of the Spanish Corporate Enterprises Law, is that detailed below and, therefore, the Company is not subject to dissolution at 31 December 2013.

Thousands Euros

Equity as per the financial statements at 31/12/2013 (42,017,460) Impairment of non-current assets (net of the tax effect) 2,091,769 Minus adjustments for changes in value from cash flow hedges 21,796,157 Plus subordinated participating loan (Note 12.2) 32,373,547 Equity at 31 December 2013 for the calculation stip ulated in article 363 of the Corporate Enterprises Law 14,244,013

12. Financial liabilities

The detail of “Financial Liabilities” at 31 December 2013 and 2012 is as follows:

2013

(euros)

Bank borrowings

Group companies and related

parties Derivatives

Sundry accounts

payable and staff costs

Total (Note 12.1) (Notes 12.2 and 12.3) (Note 10) (Note 12.3)

Non-current financial liabilities

Accounts payable 252,191,363 62,615,420 31,137,368 - 345,944,151

Current financial liabilities

Accounts payable 21,985,028 14,163,037 - - 36,148,065

Trade and other payables - 3,377,540 - 3,662,070 9,227,620

Total 274,176,391 80,155,997 31,137,368 3,662,070 391,319,836

2012

(euros)

Bank borrowings

Group companies and related

parties Derivatives Other

Total (Note 12.1) (Notes 12.2 and 12.3) (Note 10) (Note 12.3)

Non-current financial liabilities

Accounts payable 268,432,158 62,615,420 43,298,271 - 374,345,849

Current financial liabilities

Accounts payable 21,550,543 11,997,985 - - 33,548,528

Trade and other payables - 7,507,221 - 2,134,463 9,641,684

Total 289,982,701 82,120,626 43,298,271 2,134,463 417,536,061

12.1) Bank borrowings

The detail of “Bank Borrowings” at 31 December 2013 and 2012 is as follows:

2013

(euros) Short Term Long Term Total

Syndicated loan 16,259,765 252,331,765 268,591,530 Debt arrangement expenses - (140,402) (140,402) Interest payable 5,725,263 - 5,725,263

21,985,028 252,191,363 274,176,391

2012

(euros) Short Term Long Term Total

Syndicated loan 15,280,928 268,591,530 283,872,458 Debt arrangement expenses - (159,372) (159,372) Interest payable 6,269,615 - 6,269,615

21,550,543 268,432,158 289,982,701

The investment in the wind farms operated by the Company was financed through a project finance structure. These financing structures are applied to projects capable in their own right of providing sufficient guarantees to the participating financial institutions with regard to the repayment of the funds borrowed to finance them. The project's assets are financed, on the one hand, through a contribution of funds by the developers, which is limited to a given amount, and on the other, generally of a larger amount, through borrowed funds in the form of long-term debt. The debt servicing of these credit facilities or loans is supported mainly by the cash flows to be generated by the project in the future and by security interests in the project's assets. In 2007 the Company entered into a financing agreement (syndicated credit facility) with a mortgage commitment and a pledge on rights of up to EUR 323,000,000 with Banco Español de Crédito, S.A. (agent bank), Banco Bilbao Vizcaya Argentaria, S.A., Caja de Ahorros y Pensiones de Barcelona, Instituto de Crédito Oficial and Natixis (Spain’s Office) to finance the construction and start-up of the wind farms described in Notes 1 and 5. This credit facility accrues interest at a floating rate which is calculated in addition to the reference interest rate (Euribor) plus a spread which varies based on the annual debt service coverage ratio with a final maturity scheduled for 2027. In 2013 the Company did not may any drawdown on the syndicated credit facility and amortised EUR 15,280,927. On 29 July 2011, the partial assignment and modifying novation of the financing agreement was signed and the main change to the financing agreement was a 1.5 increase in the annual debt service coverage ratio for grounds for termination. In accordance with the financing agreement, in addition to the basic obligation to repay the principal, interest, fees and taxes, the Company undertakes to comply throughout the term of the agreement with the obligations detailed in provision 14, section 2 (affirmative covenants), among which the following are included:

- Not to dispose, sell, mortgage or encumber in any other way any of the assets or items of its property

plant and equipment, either as a whole or one or various assets, for an amount greater than EUR 500,000 (according to the acquisition's carrying amount) throughout the term of this agreement. Maintain a senior debt/equity ratio equal to or less than 85 per cent throughout the term of the loan.

- Maintain a DSCR greater than 1.05.

- The long-term syndicated credit facility shall be amortised beginning 13 January 2010 in accordance with the following schedule:

TRANCHE A TRANCHE B TRANCHE BEI

13 January 13 July 13 January 13 July 13 January 13 July 2014 5,029,842 5,354,024 115,955 123,430 2,730,249 2,906,235 2015 5,354,054 5,652,767 123,430 130,315 2,906,235 3,068,379 2016 5,652,767 6,010,857 130,315 138,571 3,068,379 3,262,754 2017 6,010,857 5,587,924 138,571 128,821 3,262,754 3,033,182

2018 5,587,924 5,260,616 128,821 121,276 3,033,182 2,855,515 2019 5,260,616 5,609,053 121,276 129,308 2,855,515 3,044,650 2020 5,609,053 6,041,093 129,308 139,268 3,044,650 3,279,166

2021 6,041,093 6,387,890 139,268 147,263 3,279,166 3,467,411 2022 6,387,890 6,725,581 147,263 155,048 3,467,411 3,650,713 2023 6,725,581 7,186,217 155,048 165,667 3,650,713 3,900,751 2024 7,186,217 7,638,111 165,667 176,085 3,900,751 4,146,044 2025 7,638,111 7,456,880 176,085 171,907 4,146,044 4,047,670

2026 - - 8,967,863 9,625,825 - - 2027 - - 9,625,825 9,571,482 - -

12.2) Payables to Group companies and related parties

The following is a breakdown of the current and Non-current liabilities to Group companies, associates:

2013

(euros) Loans with

shareholders Supplier

Interest payable

Total

Current accounts

(D)

Current tax (Note

13.1)

Urbaenergía, S.L. 41,551,629 932,204 662,000

8,546,841 -

51,019,274

Centro de Control Villadiego, S.L. (Cecovi) - 100,122 -

- -

32,448

Energía y Recursos Ambientales, S.A. 21,063,791 1,969,645 338,813

4,610,231 -

26,535,541

Aldebarán, S.M.E, S.A. - 89,235 -

- -

89,235

P.E. Santa Catalina, S.L. - - 5,152

- -

5,152

Cobra Instalaciones y Servicios, S.L. - 286,335 -

- -

286,335

ACS, Actividades de Construcción y Servicios, S.A. - - -

- 1,317,352

Total accounts payable 62,615,420 3,377,540 1,005,965

13,157,072 1,317,352

80,155,997

Non-current liabilities 62,615,420 - -

- -

62,615,420

Current liabilities - 3,377,540 1,005,965

13,157,072 1,317,352

18,857,929

2012

(euros) Loans with

shareholders Supplier Interest payable

Total VAT

Urbaenergía, S.L. 41,551,629 2,006,916 7,211,216 - 50,769,761

Centro de Control Villadiego, S.L. (Cecovi) - 191,644 - - 191,644

Energía y Recursos Ambientales, S.A. 21,063,791 4,370,884 3,934,991 - 29,369,666

Aldebarán, S.M.E, S.A. - 787,352 - - 787,352

P.E. Santa Catalina, S.L. - - 5,151 - 5,151

Cobra Instalaciones y Servicios, S.L. - 150,425 - - 324,586

Cobra Gestión e Infraestructuras, S.L. - - - 846,626 846,626

(euros) Loans with

shareholders Supplier Interest payable

Total

Total accounts payable 62,615,420 7,507,221 11,151,358 846,626 82,120,625

Non-current liabilities 62,615,420 - - - 62,615,420

Current liabilities - 7,507,221 11,151,358 846,626 19,505,205

Subordinate loans with shareholders: - On 6 April 2006, Parque Eólico El Colmenar II, S.L. signed a loan agreement with Urbaenergía, S.L. for a

maximum amount of up to EUR 4,000,000. On the same date, Sistemas Energéticos Serón, S.A. Sistemas Energéticos Tíjola, S.A., Sistemas Energéticos Tinadas signed two credit facilities with Energía y Recursos Ambientales, S.A. each one for a maximum amount of up to EUR 4,000,000.

- On 23 March 2006, Parque Eólico Santa Ana, S.L., signed a credit facility with Energía y Recursos Ambientales, S.A. for a maximum amount of up to EUR 4,000,000.

- On 18 May 2006, Parque Eólico La Noguera, S.L., Parque Eólico Las Vegas, S.L. and Parque Eólico Los Isletes, S.L. all signed two credit facilities with Urbaenergía, S.L. for a maximum amount of up to EUR 4,000,000.

- On 13 July 2007, Sistemas Energéticos Serón, S.A., Sistemas Energéticos Tíjola, S.A., Sistemas Energéticos Tinadas, S.A., Parque Eólico La Noguera, S.L., Parque Eólico Las Vegas, S.L., Parque Eólico El Colmenar II, S.L., Parque Eólico Santa Ana, S.L. and Parque Eólico Los Isletes, S.L. signed the obligation agreement with the developers in which, among other obligations, the developers undertook the obligation to contribute funds to the project companies. Likewise, on this same date, the aforementioned credit facilities and loan agreement were novated in accordance with the terms of the developer´s agreement and they all became subordinated debt.

- After the merger by absorption mentioned in Note 1, the Company subrogated the absorbed companies by universal succession in relation to the rights and obligations of the aforementioned novation agreements.

- On 24 June 2008, the modifying novation of the subordinated debt agreements was carried out and, as a result, the amount of the subordinated debt was increased by EUR 12,200,000, setting the new subordinated debt limit at EUR 44,200,000. On 29 December 2012, the aforementioned subordinated debt modifying novation agreement was novated and the increased amount became participating (see Note 11.3).

- On 23 December 2009, the Company's shareholders signed an additional subordinated debt agreement amounting to EUR 20.173.547 to expand Parque Eólico Santa Ana. On 23 December 2010, the aforementioned subordinated debt agreement was novated and became a participating loan (see Note 11.3).

- On 8 July 2013, the Company's shareholders entered into a novation agreement for the conversion of a

credit facility into a participating loan amounting to EUR 12,200,000 maturing on 31 December 2016.

The subordinated debt agreements were drawn down by EUR 62,615,420 at 31 December 2013 and accrue interest at the same rate as the financing agreement entered into with banks described in note 12.1) above. The principal of the subordinated loan must be repaid in full at the final maturity date, 22 December 2027. However, the Company may amortise the subordinated debt early, totally or partially, provided that it meets the subordination conditions. At 31 December 2013, the shareholders have stated that they do not require a partial maturity of the subordinated loan over the coming 12 months and, therefore, the debt is classified as non-current.

The Company maintains its income tax balances with the Group since it is part of the consolidated tax group (see Note 7.1).

Payable to suppliers

The balances under "Payable to suppliers" relate mainly to the management and maintenance of the wind farms.

12.3) Sundry accounts payable and other payables to Group companies

The detail of “Trade and other payables” at 2013 and 2012 year end is as follows:

EQUITY AND LIABILITIES 2013

Payable to suppliers - Group companies (Note 12.2) 3,377,540 Sundry accounts payable 2,797,632 Remuneration payable 2,328 Other accounts payable to public authorities (Note 13) 862,110

7,039,610

EQUITY AND LIABILITIES 2012

Payable to suppliers - Group companies (Note 12.2) 7,507,221 Sundry accounts payable 2,129,828 Remuneration payable 2,327 Other accounts payable to public authorities (Note 13) 2,307

9,641,684

Deferred payment to suppliers for commercial transactions In relation to the disclosures required by additional provision three of Law 15/2010, of 5 July, for these first financial statements prepared since the entry into force of the aforementioned law on 31 December 2013, there were balances payable to suppliers that were past due by more than the maximum legal payment period amounting to EUR 913,026. This balance relates to suppliers which, due to their nature, are trade payables to suppliers of goods and services, such that the information includes data relating to “Current liabilities - Payable to suppliers - Group companies” and “Current liabilities - Sundry accounts payable” in the balance sheet. The maximum legal payment period applicable to the Company according to Law 3/2004, of 29 December, establishing measures combating late payment in commercial transactions and in accordance with the transitional provisions established in Law 15/2010, of 5 July, is 85 days between the entry into force of the law and 31 December 2011, and 75 days in 2012 and 60 days in 2013.

The following table includes the volume of payments with VAT made during the year and the volume of payments made during the period established under the law.

Payments made and payable at the closing date of th e balance sheet

2013 2012

Amount Distributed % Amount

Distributed %

Within maximum legal period 2,846,705 17% 8,639,998 61%

Other 13,692,230 83% 5,592,825 39%

Total payments in the year 16,538,935 100% 14,232,822 100%

Deferred payments which at year end exceed the maximum period

913,026 2,309,699

13. Tax matters

Under current legislation, taxes cannot be deemed to have been definitively settled until the tax returns filed have been reviewed by the tax authorities or until the statute-of-limitations period, currently established at four years, has expired.

13.1) Current tax receivables and payables

Tax receivables

(euros) 2013 2012 Withholdings and prepayments 4,606 7,117

Total 4,606 7,117

Tax payables (euros) 2013 2012 Personal income tax withholdings 955 804 VAT 310,002 - Social security costs 407 1,503 Electricity tax payable 550,746 -

Total 862,110 2,307

13.2) Reconciliation of the accounting profit/(loss), taxable base amount and receivables and payables

Since its incorporation, the Company has filed consolidated tax returns as part of the ACS Group. For this period income tax expense purposes the calculations for each company in the tax group were made individually.

The reconciliation of the accounting profit/(loss) for 2013 and 2012 to the corresponding taxable base amount and current income tax is as follows:

2013 Euros

Total

Accounting profit/(loss) for the year before tax (8,136,497)

Accelerated depreciation 4,132,321

Non-deductible accounting amortisation and depreciation 5,255,864

Non-deductible net finance costs 3,139,485

Taxable base amount 4,391,173

Tax rate of 30% (1,317,352)

Withholdings and prepayments -

Income tax payable to the tax group (Note 12.2) (1, 317,352)

2012 Euros Total

Accounting profit/(loss) for the year before tax (13,229,649) Accelerated depreciation 4,342,551 Financial expenses not deductible 6,392,794 Taxable base amount (2,494,304) Tax rate of 30%

748,291

Withholdings and prepayments - Other items (28,538) Income tax receivable 719,753

The current income tax was recognised as an accounts payable to ACS Actividades de Construcción y Servicios, S.A. (Notes 1 and 12.2).

13.3) Income tax income/expense

The income tax income for 2013 and 2012 was calculated as follows:

Thousands of euros

2013 2012

Profit/(Loss) before tax

(8,136,497) (13,229,649)

Taxable amount multiplied by 30%

2,440,949 3,968,894

Other adjustments 4,516 (28,538)

Total 2,445,465 3,940,356

13.4) Deferred tax assets

Balance at 31.12.2012 Additions

Derecognitions

Balance at 31.12.2013

Temporary differences (deferred tax assets)

Hedging instruments 12,989,480 - (3,648,270) 9,341,210

Amortisation - 1,576,759 - 1,576,759

Net finance costs 1,917,840 941,845 (1,044,284) 1,815,401

Total deferred tax assets 14,907,320 2,518,604 (4,692,554) 12,733,370

The amount of the temporary differences relates to the tax effect of following items: - The value of the derivative hedging instrument at 2013 and 2012 year end.

- The net non-deductible finance costs for the year based on Royal Decree-Law 12/2012, of 30 March,

limiting the deduction of "net finance costs", in general, to a maximum of 30% of the "operating profit for the year". For these purposes, the law determines "net finance costs" as the excess finance costs with respect to the income arising from the transfer to third parties of equity incurred in the tax period. In any case, up to EUR 1 million in net finance costs for the period, without any limit, are deductible. The net finance costs which have not been deducted may be deducted in the tax periods which conclude in the immediate and consecutive 18 years, together with those of the corresponding tax period. In order to calculate the non-

deductible "net finance costs" the finance costs of the subordinated debt were not taken into account since they are eliminated in the consolidated tax group.

- Non-deductible amortisation and depreciation expenses for the year: in accordance with the change implemented by Law 16/2012 effective for tax periods beginning in 2013 and 2014, the accounting amortisation and depreciation of property, plant and equipment, intangible assets and real estate investments may only be deducted up to 70% of the amount which would have been deductible for tax purposes in accordance with sections 1 and 4 of article 11 of the Consolidated Text of the Spanish Income Tax Law. The accounting amortisation and depreciation which is not deductible for tax purposes due to the application of this restriction, will not be considered impairment and will be deducted beginning from the first tax period of 2015 on a straight-line basis over a period of 10 years or over the course of the asset's useful life, at the Company's choice.

The deferred tax assets indicated above were recognised in the balance sheet because the Company’s sole director considered that, based on his best estimate of the project and the estimates of the tax group to which it belongs, in accordance with the Company's economic and financial model and the expected cash flows, it is likely that these assets will be recovered. The derecognitions for the year are due to adjustments to the definitive provision for non-deductible net finance costs considered in the definitive income tax settlement corresponding to the previous year. 13.5) Deferred tax liabilities

The detail of this account at 31 December 2013 and 2012 is as follows:

2012 Decreases 2013

Adjustment to the taxable base amount arising from the application of accelerated depreciation to investments in property, plant and equipment which generate employment

20,484,090 (1,356,244) 19,127,846

Total deferred tax liabilities 20,484,090 (1,356,244) 19,127,846

2011 Decreases 2012 Adjustment to the taxable base amount arising from the application of accelerated depreciation to investments in property, plant and equipment which generate employment

21,786,856 (1,302,766) 20,484,090

Total deferred tax liabilities 21,786,856 (1,302,766) 20,484,090

The amount recognised under "Deferred tax liabilities" at 31 December 2013 and 2012 corresponds to 30% of the amortisation for tax purposes in addition to the amortisation for accounting purposes, which amounts to EUR 68,280,300 and EUR 72,622,853, respectively, pursuant to additional provision 11 of Royal Legislative Decree 4/2009, of 5 March, approving the Consolidated Spanish Income Tax Law and regulating accelerated depreciation of investments in new items of property, plant and equipment related to economic activities which generate employment. The Company met the requirements necessary to apply the aforementioned law in 2009 and 2010 and, currently, it is taking the deferred tax liability generated. The derecognitions for the year include an adjustment to the reversal of the accelerated depreciation in the definitive income tax settlement corresponding to the previous year amounting to EUR 116,548.

13.6) Years open for review by the tax authorities and tax audits

In relation to the years open for review of the various taxes applicable to the operations of AL ANDALUS WIND POWER, S.L., there might be contingent tax liabilities which cannot be objectively quantified, since they would depend on the outcome of the tax audits of the open years beginning from 2009 (inclusive) for income tax, and from 2010 (inclusive) for all other taxes. No additional material liabilities that might have a material impact on equity are expected to arise for the Company as a result of an audit of the years open for review. The system for determining transfer prices is adequately designed with a view to complying with tax legislation. Therefore, transfer prices are adequately supported and there are no material risks in this connection. Since the Company files consolidated tax returns, its tax loss carryforwards have been offset by the rest of the group included in the scope of consolidation.

14. Guarantee given to third parties

At 31 December 2013 and 2012, AL ANDALUS WIND POWER, S.L. had provided bank guarantees to third parties mainly for the purpose of securing certain of its normal business operations, the detail being as follows:

(euros) 2013 2012

MEFF Services, S.A. 100,000 100,000

Tíjola Municipal Council 525,110 525,110

Turrillas Municipal Council 532,115 532,115

Lucainena de las Torres Municipal Council 40,665 40,665

Abrucena Municipal Council 275,375 275,375

Fiñana Municipal Council 1,218,138 1,218,138

Medina Sidonia Municipal Council 494,000 494,000

Jerez de la Frontera Municipal Urban Planning 583,000 583,000 Public works and the environment Head of the motorway operations department Operation of motorways - Provisional Government of Almeria

66,237 66,237

Serón Municipal Council 818,437 818,437

Pozo Lorente Municipal Council 104,436 104,436

Department of Industry, Energy and the Environment of the Castilla la Mancha Autonomous Community Government

121,150 121,150

Jerez de la Frontera Municipal Council 27,261 27,261

Total 4,905,924

4,905,924

The guarantees outstanding at 31 December 2013 are not expected to give rise to liabilities additional to those recognised in the Company's financial statements at that date.

15. Income and expense

15.1) Revenue

The sales relate in full to the production of electricity generated in Spain which is billed to Axpo. and to the Spanish National Securities Market and Competition Commission.

Income is recognised net of the possible energy purchases made due to the fact that the Company does not act as an intermediary in the energy market, since the economic basis of the transaction is not a sale in and of itself but rather a regulatory mechanism to reconcile supply and demand. Thus, the revenue reflects the income form the energy actually produced.

15.2) Finance income and costs

The finance income relates to the placement of cash surpluses and interest from current accounts.

2013 2012

Finance income 38,120 70,369

The detail of the finance costs is as follows:

2013 2012

Interest on subordinated debt 2,012,694 2,670,215

Interest on bank loan 3,189,958 5,843,333

Interests on the derivative 9,403,385 8,054,829

Fee and commission expense 220,999 285,776

TOTAL 14,827,036 16,854,152

15.3) Staff costs

The following items are recognised under "Staff costs":

2013 2012

Wages and salaries 40,858 90,156

Social security costs 11,462 19,520

TOTAL 52,320 109,675 The average number of employees at the Company in 2013 and 2012, by category, was as follows:

Categories

2013

2012

Senior executives Line personnel and middle management Clerical staff Manual workers

- 1 - -

- 2 - -

Total 1 2 Also, the headcount at the end of 2013 and 2012, by category and gender, was as follows:

2013 2012

Categories

Men

Women

Men Women

Senior executives Line personnel and middle management Clerical staff Manual workers

- 1 - -

- - - -

- 1 - -

- - - -

Total 1 - 1 -

15.4) Other operating expenses

The detail of “Other operating expenses” in the accompanying income statements for 2013 and 2012 is as follows:

Item

Euros

2013 2012 Research and development expenditure 297,785 114,810

Rent and royalties 2,064,023 2,066,596

Independent professional services 97,272 541,428

Insurance premiums 496,106 443,897

Banking services 13,550 3,083

Supplies 277,932 277,426

Other services 7,941,720 6,869,560

Taxes other than income tax 4,160,076 1,814,440

Total 15,348,464 12,131,240

"Other services" mainly includes the amount corresponding to the expenses for the farms' operation and maintenance services provided by Aldebarán SME, S.A., Energía y Recursos Ambientales, S.A. and Urbaenergía S.L. amounting to EUR 13,896, EUR 403,092 and EUR 840,447, respectively, in 2013 (see Note 16.1) and by Aldebarán SME, S.A., Energía y Recursos Ambientales, S.A. and Urbaenergía S.L. amounting to EUR 11,531, EUR 2,717,006 and EUR 1,657,897 in 2012. "Other taxes" includes mainly the 7% tax on electricity production measured at power station busbars (Note 1). At the end of 2013 the Company had contracted with tenants for the following minimum lease payments, based on the leases currently in force, without taking into account the charging of common expenses, future increases in the CPI or future contractual lease payment revisions (in euros):

Operating leases

Minimum lease payments

Nominal value Nominal value

2013 2012

Within one year 1,480,000 1,480,000 Between one and five years 5,920,000 5,920,000 Over five years 29,600,000 31,080,000 Total 37,000,000 38,480,000

16. Related-party transactions 16.1) Related-party transactions

The transactions with shareholders and other and related parties in 2013 and 2012 were as follows: 2013

Euros Overheads and O&M expenses

Financial expenses

Energía y Recursos Ambientales, S.A. 5,159,261 677,069 Urbaenergía, S.L. 2,408,021 1,335,625 Aldebarán SME, S.A. (707,957) - Centro de Control Villadiego, S.L. 309,484 - Cobra Instalaciones y Servicios, S.A. 112,323 -

TOTAL 7,281,132 2,012,694 2012

Euros Overheads and O&M expenses

Financial expenses

Energía y Recursos Ambientales, S.A. 4,201,447 1,038,079 Urbaenergía, S.L. 2,199,347 1,632,136 Aldebarán SME, S.A. 793,522 - Centro de Control Villadiego, S.L. 42,228 - Cobra Instalaciones y Servicios, S.A. 125,068 -

TOTAL 7,361,612 2,670,215

16.2) Remuneration of the sole director and senior executives

The sole director did not receive any remuneration in 2013 or 2012. The Company has not granted any loans or advances to its sole director and it does not have any pension obligations to him. The sole director has not received any advances or loans from the Company, nor has the Company provided him with any guarantees. The Company does not have senior executives. The aforementioned functions are performed by the Group to which it belongs.

17. Information on the environment

In view of the business activities carried on by the Company, it does not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to its equity, financial position or results. Therefore, no specific disclosures relating to environmental issues are included in these notes to the financial statements for 2013.

18. Other disclosures 18.1) Fees paid to auditors

The fees for audit services provided to the Company amounted to:

Description

Euros

2013 2012

Services provided by the auditor and by related com panies Services provided by

the auditor and by related companies

Audit services 19,266 19,266

Other attest services 1,000 1,000

Total audit and related services 20,266 20,266

19. Other disclosures

19.1) Information on the nature and level of risk of financial instruments

The Company's financial risk management is centralised in its financial department, which has established the mechanisms required to control exposure to interest rate and exchange rate fluctuations and credit and liquidity risk. The main financial risks that affect the Company are as follows:

Price risk

The remuneration of facilities which produce electricity under the special regime will be determined by: i) the sale of energy generated valued at market price and ii) a specific remuneration consisting of a period per unit of installed power which covers, where appropriate, if necessary, the investment costs of a standard facility which cannot be recovered in the market through the sale of energy, as well as a period for the operation which covers, where applicable, the difference between the operating costs and the revenue from the aforementioned standard facility's participation in the market; thus, the risk of long-term variations are noticeably reduced as a whole. Regulatory change

The Company's activities are subject to a wide range of government regulations. Any changes to these regulations could affect activities and earnings (see Note 1). Its electricity production from renewable energies is subject to a comprehensive law on tariffs and other aspects of its activities in Spain. The introduction of new laws or regulations, or the amendment of existing laws and regulations, could have an adverse or positive effect on the business activities and the results of operations. Also, the current legislative framework governing the tariff review system, including the remuneration of electricity generated, constitutes the main support mechanism for the development of these renewable sources.

Other external factors with an impact on the Company's business activities

The Company's business activity is influenced by weather, an external factor which may adversely affect its operations, results and financial situation.

Credit risk:

In general, the Company holds its cash and cash equivalents at banks with high credit ratings.

Liquidity risk:

The Company, for the purpose of ensuring liquidity and enabling it to meet all the payment obligations arising from its business activities, has the cash and cash equivalents disclosed in its balance sheet, together with the credit and financing facilities, in accordance with the project finance structure, detailed in Note 12 and it has the financial support of the Group to which it belongs mentioned in Note 2.2.

Market risk (includes interest rate, foreign currency and other price risks):

Both the Company's cash and its bank borrowings are exposed to interest rate risk, which could have an adverse effect on financial results and cash flows. Therefore, Company policy is to ensure that at least 82% of its bank borrowings at any given time are tied to fixed interest rates.

19.2) Detail of investments in companies engaging in similar activities and of the activities carried on by the sole director as independent professionals or as employees. On 11 May 2012 in a deed executed before Madrid notary Mr. Segismundo Álvarez Rollo Villanova, under number 2,108 of his notary record, Mr. Ramón Jiménez Serrano was appointed as an individual representative of the sole director of Energías y Recursos Ambientales, S.A. At 31 December 2013, the director did not held any investments in non-Group companies engaging in an activity that is identical, similar or complementary to the activity that constitutes the Company’s object. Additionally, the sole director discharges the following functions at companies engaging in an activity that is identical, similar or complementary to the activity that constitutes the Company’s object.

Ramón Jiménez Serrano

Investee Line of Business Ownership

Interest Function

Técnicas de Desalinización de Aguas,

S.A.

Construction of all types of public

and private works 0%

Sole director

(Tedagua Renovables,

S.L.)

Depuradoras del Bajo Aragón, S.A. Construction and operation of a

water-treatment plant 0% Board member

Cobra Gestión de Infraestructuras,

S.L.

Management, administration,

operation and maintenance of all

manner of structures

0% Board Member

Sociedad Aguas Residuales Pirineos,

S.A.

Construction and operation of

infrastructures for waste water

treatment

0% Board member

Planta de Tratamiento de Aguas

Residuales Taboada, S.A. (Peru)

Treatment and management of all

types of natural resources 0% Chairman

Cotefy, S.A. de C.V. Construction and operation of

industrial facilities 0% Board member

Tedagua México, S.A. de CV. Construction of all types of public

and private works 0% Sole director

Golden State Tedagua

Environmental Corporation, S.A.

Infrastructures, concessions and

constructions 0%

Sole director (Tedagua,

S.A.)

Cobra Infraestructuras

Internacional, S.A.

Assembly and installation of

electrical, gas and communication

systems, etc.

0%

Sole director

(Cobra Instalaciones y

Servicios, S.A.)

Tedagua Renovables, S.L. Treatment and management of all 0% Sole director (Tedagua,

Investee Line of Business Ownership

Interest Function

types of natural resources S.A.)

Tedagua Internacional, S.L.

Construction of all types of public

and private works 0%

Sole director (Tedagua,

S.A.)

Tedra Australia PTY LTD Water desalination, distribution

and treatment 0% Board member

Infraestructuras Energéticas

Aragonesas, S.L.

All types of construction work 0%

Sole director

(Cobra Instalaciones y

Servicios, S.A.)

Energías Ambientales de

Guadalajara, S.L. Renewable energies 0%

Sole director

(Urbaenergía, S.L.)

Agua Tratada de Hermosillo, S.A. de

C.V.

Water desalination, distribution

and treatment 0% Board member

Sociedad Aragonesa de Estaciones

Depuradoras, S.A.

Water desalination, distribution

and treatment 0%

Board member

(Cobra Concesiones, S.L.)

Cobra Ingeniería de Montajes, S.A.

All types of construction and

engineering work 0%

Sole director

(ACS Servicios,

Comunicaciones y

Energía, S.L.)

Cobra Thermosolar Plants, INC Solar thermal facilities 0% Board member

Cobra Energy Investment, LLC Investment company 0% Chairman

Cobra Great Island Limited Industrial facilities 0% Chairman

Cobra Group Australia Pty Ltd Industrial facilities 0% Board member

Planta de Reserva Fría de

Generación de Eten, S.A.

Electricity generation and

transmission 0% Board member

Escal UGS, S.L. Oil and gas storage 0% Board member

Central Solar Termoeléctrica

Cáceres, S.L.

Construction and operation of the

solar thermal plant in Caceres 0%

Sole director (Cobra

Concesiones, S.L.)

Serrezuela Solar II, S.L. Development and promotion of

energy projects 0%

Joint director (Cobra

Concesiones, S.L.)

Torre de Miguel Solar, S.L.

Promotion, management, design,

construction and maintenance of

facilities engaged in the

production of renewable energies

0% Joint director

Al-Andalus Wind Power, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Adebarán Servicios de

Mantenimiento Eólico, S.A. Maintenance of wind farms 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Aldeire Solar, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Aldeire Solar 2, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Altomira Eólica, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Andasol-1 Central Termosolar Uno,

S.A. Renewable energies 0%

Board member (Cobra

Sistemas y Redes, S.A.)

Andasol-2 Central Termosolar Dos,

S.A. Renewable energies 0%

Board member (Cobra

Sistemas y Redes, S.A.)

Andasol-3 Central Termosolar Tres,

S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Andasol-4 Central Termosolar Renewable energies 0% Sole director (Cobra

Investee Line of Business Ownership

Interest Function

Cuatro, S.L. Sistemas y Redes, S.A.)

Andasol-5 Central Termosolar Cinco,

S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Andasol-6 Central Termosolar Seis,

S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Andasol-7 Central Termosolar Siete,

S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Berea Eólica, S.L. Renewable energies 0% Chairman

California Sun Power, LLC Renewable energies 0% Chairman

Calvache Eólica, S.L. Renewable energies 0% Chairman

Carta Valley Wind Power USA, LLC Renewable energies 0% Chairman and sole

director

Centro de Control Villadiego, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Cobra Solar del Sur, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Cobra Sun Power USA, INC Renewable energies 0%

Sole director (Cobra

Termosolar USA, S.L.)

and chairman

Cobra Termosolar USA, S.L. Renewable energies 0%

Sole director (Cobra

Instalaciones y Servicios,

S.A.)

Desarrollos Energéticos Asturianos,

S.L. Renewable energies 0%

Sole director

(Urbaenergía, S.L.)

Electra de Montánchez, S.L. Renewable energies 0%

Board member (Energía y

Recursos Ambientales,

S.A.)

El Chaparral Wind Power, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

El Otero Wind Power, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

El Recuenco Eólica, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

El Robledo Eólica, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Energía Sierrezuela, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Energía y Recursos Ambientales

Internacional, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Energía y Recursos Ambientales,

S.A. Renewable energies 0%

Sole director (Cobra

Instalaciones y Servicios,

S.A.)

Energías Ambientales de Soria, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Energías Renovables Andorranas,

S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Energías Renovables de Ricobayo,

S.L. Renewable energies 0%

Board member (Energía y

Recursos Ambientales,

S.A.)

Eólica del Guadiana, S.L. Renewable energies 0% Sole director (Energía y

Recursos Ambientales,

Investee Line of Business Ownership

Interest Function

S.A.)

Eólica Majadillas, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Extresol 1, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Extresol 2, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Extresol 3, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Extresol 4, S.L. Renewable energies 0% Sole director (Cobra

Sistemas y Redes, S.A.)

Extresol Almacenamiento GNL, A.I.E Renewable energies 0% Sole director (Extresol-1,

S.L.)

Evacuación Valdecaballeros, S.L. Renewable energies 0% Board member (Cobra

Sistemas y Redes, S.A.)

Eyra Instalaciones y Servicios, S.L. Renewable energies 0%

Sole director (Cobra

Instalaciones y Servicios,

S.A.)

Eyra Wind Power USA, Inc Renewable energies 0% Sole director and

chairman

Garby Aprovechamientos

Energéticos, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Infraestructuras Energéticas

Extremeñas, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

La Caldera Energía Burgos, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Manchasol-1, Central Termosolar

Uno, S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Manchasol-2, Central Termosolar

Uno, S.L. Renewable energies 0%

Sole director (Cobra

Sistemas y Redes, S.A.)

Parque Eólico Buseco, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Cortado Alto, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Donado, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Parque Eólico La Val, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Monte das Augas, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Monte dos Nenos, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Santa Catalina, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Sierra de las Carbas, Renewable energies 0% Chairman (Energía y

Investee Line of Business Ownership

Interest Function

S.L. Recursos Ambientales,

S.A.)

Parque Eólico Tesosanto, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Valdecarro, S.L. Renewable energies 0%

Sole director (Energía y

Recursos Ambientales,

S.A.)

Recursos Ambientales de

Guadalajara, S.L. Renewable energies 0%

Sole director

(Urbaenergía, S.L.)

Red Top Wind Power, LLC Renewable energies 0%

Sole director (Eyra Wind

Power USA, Inc.) and

chairman

Riansares Eólica, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Ribagrande Energía, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Somozas Energías Renovables, S.A. Renewable energies 0% Board member

(Urbaenergía, S.L.)

Urbaenergía, S.L. Renewable energies 0%

Sole director (Cobra

Instalaciones y Servicios,

S.A.)

Urbaenergía Instalaciones y

Servicios, S.L. Renewable energies 0%

Sole director (Cobra

Instalaciones y Servicios,

S.A.)

Valdelagua Wind Power, S.L. Renewable energies 0% Sole director

(Urbaenergía, S.L.)

Cobra CSP USA, Inc Renewable energies 0% Sole director and

chairman

Cobra Industrial Services Inc Holding company 0% Director, secretary and

treasurer

Grupo Cobra South Africa (PTY) LTD Holding company 0% Board Member

OPADE, S.A. Organisation of sports events 0% Sole director (Cobra

Servicios Auxiliares)

Cobra Instalaciones y Servicios

Internacional, S.L.

Assembly and installation of

electrical, gas and communication

systems, etc.

0%

Sole director (Cobra

Inversiones y Gestión,

S.L.)

Parque Eólico Las Tadeas, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Valdehierro, S.L. Renewable energies 0%

Chairman (Energía y

Recursos Ambientales,

S.A.)

Parque Eólico Valcaire, S.L. Renewable energies 0% Sole director

(Urbaenergía)

20. Events after the reporting period

In February 2014, a draft Ministerial Order which sets all of the parameters described above necessary to determine the remuneration applicable to renewable energies, cogeneration and waste was provided to the interested parties in the context of the hearing process commenced by the Spanish National Securities Market and Competition Commission (Comisión Nacional de los Mercados y la Competencia, CNMC). In practice, the Company's facilities are subject to the new remuneration model established by the Spanish Electricity Industry Law and by RDL 9/2013, since the latter's entry into force. Thus, the revenue received from the energy sales made since 14 July 2013 have been settled by means of a payment on account of the remuneration which ultimately applies.

Despite the fact that at the date of preparation of these financial statements the provisions necessary to fully apply the royal decree which governs the new legal and economic regime applicable to the wind farm are still pending approval, since, once the regulations are approved, the new remuneration model will be applicable from the entry into force of Royal Decree-Law 9/2013, i.e., 14 July 2013, the Company's sole director has calculated the impact on said period of the new methodology mentioned in this Note, and included it in the financial statements for 2013 – adjusting revenue in the income statement and the corresponding amount for trade receivables and deferred tax assets in the balance sheet. Thus, the Company will receive payments on account for the amounts accrued which may be settled pursuant to this transitional regime and once the regulatory provisions necessary for application of the new economic regime are approved, they will be subject to the corresponding regulations for collection rights or payment obligations resulting from applying the new methodology effective from the entry into force of the royal decree-law.

AL ANDALUS WIND POWER, S.L. DIRECTORS’ REPORT

Business performance and situation of the Company In the year ended 31 December 2013, the Company recognised EUR 47,190,042 in revenue and made a loss of EUR 5,691,033. In 2013 the Company will continue with its business activity and expects that it will perform positively. Research and development activities The Company did not allocate any of its funds to activities of this nature during the year. Acquisition of treasury shares In this period the Company did not acquire any treasury shares and no treasury shares were held at year end. Information on the environment The Company's business activity is aimed at preserving and caring for the environment. The production of energy from renewable sources contributes directly to decreasing CO2 levels in the atmosphere and helps combat climate changes. In addition, apart from the costs incurred to install the wind farms and other production facilities, no investment was made in specific projects to protect the environment. Allocation of profit/(losses) The allocation of 2013 profit/(loss) proposed by the Board of Directors and pending approval by the shareholders consists of transferring it to: - Prior years' losses EUR 5,691,033 Events after the reporting period

In February 2014, a draft Ministerial Order which sets all of the parameters described above necessary to determine the remuneration applicable to renewable energies, cogeneration and waste was provided to the interested parties in the context of the hearing process commenced by the Spanish National Securities Market and Competition Commission. In practice, the Company's facilities are subject to the new remuneration model established by the Spanish Electricity Industry Law and by RDL 9/2013, since the latter's entry into force. Thus, the revenue received from the energy sales made since 14 July 2013 have been settled by means of a payment on account of the remuneration which ultimately applies.

Despite the fact that at the date of preparation of these financial statements the provisions necessary to fully apply the royal decree which governs the new legal and economic regime applicable to the wind farm are still pending approval, since, once the regulations are approved, the new remuneration model will be applicable from the entry into force of Royal Decree-Law 9/2013, i.e., 14 July 2013, the Company's sole director has calculated the impact on said period of the new methodology mentioned in this Note, and included it in the financial statements for 2013 – adjusting revenue in the income statement and the corresponding amount for trade receivables and deferred tax assets in the balance sheet. Thus, the Company will receive payments on account for the amounts accrued which may be settled pursuant to this transitional regime and once the regulatory provisions necessary for application of the new economic regime are approved, they will be subject to the corresponding regulations for collection rights or payment obligations resulting from applying the new methodology effective from the entry into force of the royal decree-law.

AL ANDALUS WIND POWER, S.L.

PREPARATION OF THE FINANCIAL STATEMENTS: Madrid, 2 June 2014

The sole director of AL ANDALUS WIND POWER, S.L. prepares these financial statements for the year ended 31 December 2013 which will be submitted to the Shareholders' Meeting for definitive approval.

The sole director, ________________________________________ Energía y Recursos Ambientales, S.A. Represented by: Mr. Ramón Jiménez Serrano