Energy efficiency/renewable energy of Ukraine emerging market for investments L/O/G/O

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1 Energy efficiency/renewable energy of Ukraine emerging market for investments L/O/G/O

2 Market opportunities Market started to develop from 2010 due to introduction of green tariff for electricity out of renewables Solar energy Wind energy Biomass Biogas Hydro power

3 Current situation and targets Total production is just over 1% in overall energy balance Target to raise this indicator to 15% by 2020

4 State incentives Green tariff & tax exemptions Green tariff special tariff at which electricity produced from alternative energy sources the state of Ukraine takes an obligation to purchase 4 types of renewables are eligible for green tariff: wind, solar, biomass and small hydro energy Green tariff is effective until 2030 Additional incentives: 0 % profit tax rate until % VAT rate until custom duties and VAT for imported equipment Company Logo

5 Wind Energy in Ukraine- Current Market Potential of Ukraine 24 GW Potential of Crimea 10 GW Average wind speed (from 10 m height) 5 m/s Littoral coastal surfaces 1650 km Actually installed power above 100 MW Declared projects capacity MW Green tariff from 0,06 0,11 Euro/KW depending on installed turbine capacities

6 Solar energy in Ukraine Current Market Average solar radiation KWh/per square meter (Southern Ukraine) Yearly technically achievable potential of solar energy in Ukraine - 6 mln t.o.e Declared project capacity more than 300 МW Actually installed power near 100 MW Green tariff from 0,42 to 0,46 Euro/KW depending on ground or roof surface and capacities (one of the highest tariffs in Europe)

7 Solar market opportunities Solar park construction in Southern Ukraine Location: Kherson region Sadovo solar station Capacity: 5 MW (1 stage), 10 MW (2 stage) Land, grid connection secured CAPEX: 10 mln euro (1 stage) Pay back up to 4 years

8 Biomass energy in Ukraine Potential in Ukraine Main sources: Fuel type Grain straw (excl.corn) 5,6 Corn 2,4 Sunflower husk 2,3 Wood residuals 2,0 Fuel pellets from municipal solid wastes Fluid fuel (biodiesel, bioethanol) Energy potential Mil.t. fuel equivalent/hour 1,9 2,2 Energy crops 5,1 agricultural residuals; sunflower production; corn production; straw of grain crops ; straw of rape; wood residuals; energy crops (miscantus, willow, poplar). Peat 0,6 Total 20,9

9 Chernigov biomass CHP 6 MW biomass CHP Brown field ( reconstruction of former power plant) Green tariff 0,12 euro/kw Wood fuel Long term wood supply agreement Wood logistics company in place CAPEX: up to 12 mln euro Pay back up to 5 years Support of local administration

10 Potential of small hydro in Ukraine Potential MW Potential in use Annual production of electricity Annual equivalent of replacing natural gas Amount of investments billion kwt/h billion m billion USD

11 Small hydro market opportunity Ivano-Frankovsk small hydro investment program One of the best regions of Ukraine for development of small hydro Investment program for construction of up to 15 stations with total capacity of up to 50 MW Strong regional administration support Good standing local partner capable of delivering all required permitting with first site having building permit in place 1 MW CAPEX: up to 2,5 mln euro Green tariff: 0,08 euro/kw

12 ICC Ukraine program on «green» energy development in Ukraine Actual, strategic, priority Activity directions: Creation of favorable conditions for development Investment attraction Support of projects implementation

13 Local partner in project implementation Within Program the following Projects are being implemented: Electricity and heat plants on biomass Biogas plants Small hydro power stations Wind power stations Solar power plants Energy crops Coal mines degasation MSW landfills degasation Energy saving projects

14 Investors are welcome! Open for cooperation with the companies interested in entering Ukrainian market and developing energy efficiency/ renewable energy projects. Presented by Darya Revina ICC Ukraine Vice-Chairman on energy efficiency, Head of Commission on green investments, alternative and renewable sources of energy under Cabinet of Ministers