NEFCO's investments in Estonian wind power

Solveig Nordström

Vice President

NEFCO

Leading principles

• Promote the implementation of cost effective environmental projects in neighbouring countries in Eastern Europe aimed at achieving environmental benefits also for the Nordic region

• Think globally - act locally

• Polluter pays principle

• Unit abatement cost (UAC) - low compared to the alternative

Renewable energy & energy saving

•Major part of NEFCO's portfolio

• Direct and indirect reduction of emissions

• Annual reduction of CO2e - approx. 1.6 million tons

• Each person in Finland emits approx. 11 tons/year

• Pakri Wind Park (18.4MW) - 53 000 ton CO2e/year

• Potential for the wind parks - at least 250 000 ton CO2e/year

Our wind power investments

• Estonia - the first of the Baltic countries with legal framework in place – obligation to off take– feed in tariff– Joint implementation procedures

• Finland and TGF early testers of Joint Implementation

• Competent Nordic investor active

• Several projects being developed

Future prospects• TECHNICAL

– Increased transmission capacity – Strengthened distribution networks– Improved availability

• FINANCIAL– Predictable price development - i.e. stable feed in tariff

structure– Long term market– Market for sales of CO2e also after 2012 - i.e. post

Kyoto• OTHER

– Nordic business partner with adequate human and capital resource base and relevant experience