Development of renewable energyA chance and a challenge for Poland

CWP has over 4 GW under

development as well as a

proven track record of

execution across the

region

CWP is a leading developer of wind projects in Central Europe and Australia & New Zealand. The company has 4 GW of capacity under development across five countries.

CWP was established in 2007. Since then, CWP has developed and sold Europe’s largest wind farm (600 MW)

CWP is extending its activities to fast growing new markets like Turkey and Bulgaria.

CWP employs over 40 people across Europe and the Asia-Pacific region and cooperates with both international companies and its local advisors.

Continental Wind Partners’ investors comprise institutions and high net worth individuals based in the US and Europe.

CONTINENTAL WIND PARTNERS & PS WIND MANAGEMENTLEADING WIND DEVELOPER

2

Existing Markets

Poland

Romania

Australia

700 MW

1100 MW

1800 MW

Prospective Markets

Croatia

Bulgaria

Turkey

240 MW

320 MW

600 MW

TK

PL

RO

BGHR

AU

Poland has good windconditions,

not only in the northern regions

POLAND IS AN ATTRACTIVE MARKET FOR RENEWABLE ENERGY INVESTMENTS

The main incentives for development of renewable energy projects in Poland are:

A good and stable Green Certificate system supporting renewable energy sources Current spot market price close to the substitution fee (currently 248,5 PLN) Total price for „black” energy and green certificates ~85 EUR

Good conditions for development of renewable energy(Wind, Biomass, Biogas)

Growing demand for electricity

CHANCE

Many good projects fail because they

cannot connect to the grid

GRID CONNECTION

Technical barriers Weak grid in the windiest regions Problems with balancing due to dominating of coal fired production

Changing and unclear regulations for obtaining grid connection conditions Thousands MW of virtual projects Blocking grid capacity – a way to block competition Grid Operator flooded with applications Delays in delivery of necessary grid data Highly overstated grid modernization requirements

High costs of grid connection Tendency to surcharge the wind developers with additional costs of

grid upgrades Bureaucracy

Long process of getting grid connection conditions and Long, costly and bureaucratic process of signing a grid connection agreement

CHALLENGE

Development of renewables

requires a stabile and efficient legal system

REGULATIONS

Environmental Regulations Lack of clear standards for environmental procedures. Constantly changing regulations

Zoning Plans Changing or creating the Zoning Plan is a long (usually at least a year), costly

and bureaucratic procedure

Structure of landownership The plots are very small in most of the country and the process off leasing

and acquiring necessary land is very time consuming and difficult The big plots very often belong to the Agricultural Agency and the tender

process required to lease from the Agency is bureaucratic and long

CHALLENGE

Cooperation between

governmental authorities, grid

operator and RES developerss is

needed

PROPOSED SOLUTIONS

Grid Modernization of the grid taking into account the future development of

renewable energy Clear rules of issuing Grid Connection Conditions Combining different energy sources which allows for storage and efficient

balancing of energy

Environmental Regulations Creating clear standards for environmental procedures

Zoning Plans and Permitting Process Changing the current regulations More transparent and shorter procedures

CHANCE

The grid is the key to

successful development of RES in Poland

CONCLUSIONS

Poland has big potential for wind energy development

The big challenge is to solve the main problem – GRID

Solving all other problems will not allow the renewable industry to move forward