Tricase Wind Farm

Business Plan
Jul 2011

Topics
– Tricase Site: Authorization process

Phase 1) Tricase Park: Costs for Development Completion:

Phase 2) – Construction of Tricase Park

Phase 3) – Explotation of Tricase Park

Tricase Site
• Sky Saver is developing Blue H’s world first deep water wind farm,
“Tricase”, far off the coast of Puglia in Southern Italy. In 2004, Sky Saver submitted a request to the Italian Government for public funding within the PIA-program (Pacchetto Integrato Agevolazioni) for funding of new production technologies. The application was approved in March of 2006 with a sum of approximately € 5.2 million to be provided by the Italian Ministry of Industry (Ministero delle Attività Produttive).

• In January 2007 Sky Saver obtained the final formal authorizations to
install its large scale prototype in the water 11.5 nautical miles from shore. It has subsequently applied for the required authorizations to build a 90 MW offshore wind farm in the same area, 20 kilometers from the coast in waters 100 – 120 meters in depth, to cover needs of more than 75.000 households. The project has the strong support of the Regional Government of Puglia and other local authorities.

Tricase Site

TRICASE SITE
LAND CABLE AND SUBSTATION

Tricase Site
• Sky
Saver expects to be granted the concession (“Autorizzazione Unica”) for the Tricase wind farm over the next 3-4 months; the final step (“Conferenza dei Servizi”) started in March 2011. In this regard, the key steps in the formal authorization procedure have all passed without objection.

• Sky Saver in fact already obtained:
– Environmental Impact Evaluation (“V.I.A.”), – “Concessione Demaniale” for the area in the sea required for the Tricase Park by the Transportation Ministry.

• With TERNA has been also agreed and accepted the solution to
connect the site to the national electric grid.

Phase 1)
• TRICASE PARK - Costs for Development Completion:
ITEM PAID VALUE 2006/2010 Euro 2.114.900 ESTIMATED COSTS FOR COMPLETION 2011 Euro ESTIMATED COSTS FOR COMPLETION 2012 Euro

Costs for Permission 2006/2010 Estimated costs for permissions issue Expenses for permission and fee Bank guarantee or Insuranc e guarantee for dec ommissioning Additional Design for grid c onnec tion Legal Advic e Administrative and tec hnic al c osts Sky Saver inc luding salaries and taxes Estimated costs for bankability Expenses for permission and fee Wind measurements on site and layout revisions Additional Meteo and Wave c onditions studies for installation Additional Seabed Analysis on site and other studies for installation Detailed c able layout Activities related to Environmental Impact Permission Land for substation Administrative and tec hnic al c osts Sky Saver inc luding salaries and taxes Other costs Total

35.400 24.000 35.000 30.000 100.000

200.000

5.000 295.000 60.000

85.000 200.000 150.000 150.000 30.000 20.000 135.000 20.000 790.000

784.400

Total costs are estimate in Euro 1,6 Mln

Phase 2)
• Construction:
Key Highlights Total rated power Total electricity production Full load hours Capac ity fac tor Average REFIT (20 years) Average revenue (sales) per year Total investment Total Equity External loan Investment per WT Revenue index Investment index Value 90.000 240.077.400 2.668 30,5% 21,79 47.616.655 320.712.193 80.178.048 240.534.145 16.035.610 1,34 3.563.469 Unit kW kWh/a h/a % Cent/kWh EUR/a EUR EUR EUR EUR/WT EUR/KWh EUR/kW

Data set Start of operation Energy price €/kwh Green Cert. price €/kwh x coefficient Green certificates lenght Inflation Number of turbines Wind turbines rated power Installed power Net annual energy production

Values 2012 0,0700 0,1320 20 2,00% 20 4,5 90,0 240.077.400

Unit year EUR/kWh EUR/kWh years % WT MW MW KWh/a

Total investment costs/MW is estimated in Euro 3,5 Mln

Phase 3)
• Explotation:
Key Highlights of the Tricase Park Total rated pow er Total electricity production Data set Value 90.000 240.077.400 Values Unit kW kWh/a Unit

Start of operation Energy price €/kwh Green Certificates price €/kwh x coefficient Green certificates lenght Inflation Number of turbines Wind turbines rated power Installed power Net annual energy production

2016 0,0700 0,1320 20 2,00% 20 4,5 90,0 240.077.400

Year Euros Euros N % Years Mw Mw KWh/a

Total investments costs are estimated in Euro 320,7 Mln

Phase 3)
• Explotation:
Operational costs Values

Energy losses Electricity transportation losses Turbines availability Accessibility Substation and grid availability Other losses Total losses Construction insurances Cost of financing Interest rate for money in bank Depreciation period

% 4,0% 4,0% 2,0% 4,0% 1,0% 15,0% 2,30% 2,00% 1,90% 20

Area fee and others Insurances Operation & maintenance
Financing

12.000 140.000 250.000
%

Decommissioning (restoration of sites at the end 16.000 of life)

External Share Capital - Financing EURIBOR at 12 months Spread Interest rate for financing Reimbursement period Loan rata

80% 1,90% 3,60% 5,50% 20 19.322.627

Considering a financial structure of 20% Equity and 80% Debt, the estimated IRR for 20 years is about 15%