ROMANIA WIND - around 500 MW in wind energy  - under development

Romania is considered to have one of the highest wind energy potentials in Central Eastern Europe as well as significant solar exposure. The key support system for renewable energy in Romania is a mix of the quota obligation system and Green Certificates trading, adopted in 2008. Secondary legislation to put up the mechanism approved in 2008 is expected to come into force in the first half of 2011. 

The Group's strategy for the Romanian market, as far as wind project development goes, has been to focus on building a strong portfolio of mid and large projects (ranging between 24 MW and 150 MW) which would be of interest for utilities, institutional investors or others looking to own and operate large and profitable renewable energy assets. 

Up to 2008, Renovatio was able to develop a wind pipeline of 800 MW. An 85% stake of the portfolio was sold to EDP Renovaveis, the Portuguese wind giant. Two projects, totaling 228 MW, have been successfully brought to construction and operational stage in the last Quarter of 2010. EDP Renovaveis is currently the third largest wind operator in the world and is listed on the Lisbon Euronext Stock Exchange.

ROMANIA SOLAR- around 55 MW in photovoltaic energy - under development

The solar market in Romania is in its incipient phase as far as project development, construction and operation are considered. Though regulatory framework is yet to be in place, development initiatives in the PV field are slowly coming into stream. 

Market situation and grid connection barriers are the same as in case of wind. The difference comes in the support scheme for PV, which is expected to consist of a higher number of Green Certificates than for any other technology. Romania has significant sun exposure, especially in the Southern part, and favorable topography, but the industry needs to rely on a consistent support scheme to go forward with notable investments. The CAPEX on markets such as Romania is still significantly higher when compared to mature markets like Italy, Germany or Spain, and additionally there is a higher country risk involved. In order to reach the binding RES quota assumed as an EU member, the Romanian Government will have to put in place an attractive support scheme that will transform PV into a fast growing industry. 

Renovatio's strategy for PV development in Romania targets medium size projects ranging from 5 MW to 7 MW. The portfolio that the company has managed to put together up to today consists of a total of 55 MW. Part of these projects will be directly owned and operated by the Group's subsidiaries in Romania, while the rest will be up for sale to institutional investors.