Business Case v29-11-2007page 2 of 14Satalite map of Pakość II with Wind Turbine Generators location:
Pr o jec t:
-Value drivers in this location are:
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On of the best areas for wind conditions in Poland average wind speed about 6,5 m/s,
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grid application process in progress,
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in this location there are already some smaller turbines set by another investors;-
General
Market situation:
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Wind energy production in Poland rapidly grows. In 2004 142,3GWh was producedwith wind, in 2006 it was 245,5GWh. Still it was just 0,16% of total energy productionin Poland; according to the plans in 2010 there should be 2,3% coming from windenergy of the total consumption (7,5% renewable energy in years 2010-2014);
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local energy utilities are obliged to buy all renewable electricity produced on itsdistribution area (the green certificate which follows the produced energy, dependingon the contract between to parties can be sold together or on the Polish Power Exchange to anybody), energy produced by a wind farm has to be bought at themarket price which right now is rapidly growing – approx. 185PLN per MW/h plus theamount you can get from green certificates which is always close to 240PLN per MW/h – the so called buy out price which you have to pay to fulfil your obligationregarding the percentage of green energy bought each year; Total income
is
t
here
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ore
approx 425 PLN/MWh (=~ 110 euro/MWh)
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In 2008 in Poland starts a new EU found programme called The OperationalProgramme Infrastructure and Environment. For years 2007-2013 the total amount of subsidy will reach 37,6 bilion EUR (27,9 bilion from UE and 9,7 bilion from polishgovernment). The percentage of the subsidy to the total amount of investment,possible to obtain is not known yet but for wind parks subsidy only apply to those inwhich to total amount of investment exceed 20milion PLN. Development applicationsshould be ready in February 2008. The responsible organization for theimplementation of this programme is The Ministry of Regional Development (moreinformation will be available in February 2008. For now is difficult to say if we arealready entitled on this stage of our projects to apply for this subsidy so we have nottaken this subsidy into account in the feasibility calculations..-Off taker of electricity will be one of the energy operators in this case – Enea. The seller of green energy will have to sign a contract with the Energy Company and energy will be sold onat the current market price. Certificates of origin are registered on the Polish Power Exchangewhich is responsible for their managing and trade.
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