- Shall contribute to increase the supply of clean renewable energy

- Shall contribute to increase the supply of clean renewable energy

Selskapsstruktur 1% Class A shares 99% Class B shares Buskerud County Council Municipalities in Buskerud VARDAR AS HYDROPOWER Uste Nes AS ENERGI- SELSKAPET BUSKERUD BIOENERGY Hønefoss Fjernvarme AS Øvre Eiker Fjernvarme AS WIND POWER NORWAY Vardar Boreas AS WIND POWER ABROAD Vardar Eurus AS REAL ESTATE Vardar Eiendom AS

Wind power abroad comprises Vardar Eurus Vardar AS NEFCO VARDAR EURUS AS Estonia Lithuania Latvia Management Investments in renewable energy since establishment in 2004; windpower, biogas, technology Cooperation with the Estonian company Freenergy OÜ 10 operating windparks producing 340 GWh renewable energy pr year 5 windparks under construction, and Projects under developement 4 Energia OÜ

Overview of Renewable Energy Sector and the Company May 2011

Content Overview of 4energia Baltic energy market World energy outlook Electric power is everywhere present in unlimited quantities and can drive the world's machinery without the need of coal, oil, gas, or any other of the common fuels. - Nikolai Tesla 5

Overview of 4Energia 6

SPVs Investors 4E group ownership structure Solarcom 25% Atradius 25% development construction operating fund management trading balancing provider 25% 25% 90% Vardar A/S 10% NEFCO Vardar Eurus 33.7% EBRD Freenergy 66.7% Estonian private investors Management Biogas 5% Wind 90% Technology development 5% 7

Structure of 4Energia group Estonia 4Energia No empleyees 13 4Energia SIA 100% 95% 51% 40% Latvia Lithuania Baltics Estonia 4Energia UAB (3) Nordic Power Management (7) Empower 4Wind (13) Development, O&M Electricity trading Wind farm S&M The leading wind energy developer and operator in the Baltics 8

Activities of 4energia group Development choosing a suitable location for the Wind Farm, incl. measuring the wind and other procedures in order to ensure sufficient capacity of the Wind Farm for producing energy conducting the proceedings for building permits of the Wind Farm operations related to the right to use the land under the Wind Farm operations related to the network access of the Wind Farm conducting bids related to the equipment of the Wind Farm Construction project management of the construction of the Wind Farm, incl. exercising general control and supervision Operation management of the production process of the Wind Farm (incl. monitoring, maintenance, discovery and elimination of defects conclusion of insurance contracts Investor reporting Financial Trading feasibility study of the Wind Farm presentations to financial institutions and other persons finding resources for realisation of the Wind Farm Project, incl. mapping of possible financial institutions, conducting negotiations for organising the financing and introducing design documentation and information memorandum conducting contract negotiations necessary for the realisation of the Wind Farm Project trading of electricity incl forecasting, export, tendering, balancing etc balance provider in Estonian market, offering balance management services to customers representing and consulting electricity producers and related businesses in their production purchase and sale activity 9

Experienced team foto Martin Kruus (CEO of 4energia) Education: Tallinn Technical University - Thermal Engineering Previous employment: Eesti Energia, Director of Business Unit of Renewable Energy. Main responsibility was to establish and run power plants using renewable energy sources wind, hydro, biomass Ministry of Economic Affairs, Department of Management of State Companies Estonian Privatization Agency, Project Manager for IPO s Main accomplishments: Renovation of Estonian biggest hydro power plant Linnamäe HPP Building of Estonian first wind farm Virtsu wind farm Several feasibility studies and project management about CHPs foto Kalle Kiigske (CEO of Freenergy) Education: Estonian Business School Banking and Financial Management Previous employment: United Partners Group, Pan-Baltic investment bank, Partner, responsible for merchant banking and investments AS Hansa Capital leading asset-based finance company in the Baltics, Russia and Ukraine with total assets over EUR 1,7 billion, Hansa Capital is the industry s largest company in Eastern Europe and among top 50 in Europe, Member of Board and Head of Factoring and Trade Finance Several positions in Factor Chain International (Amsterdam, the Netherlands) - Member of the Communication Committee, Member of the Internal Audit foto Andrus Zavadskis (Technical Director) Education: Tallinn Technical University - M.Sc. Electrical Engineering, additional study in Aalborg University, Denmark Previous employment: Estonian Transmission System operator OÜ Põhivõrk, Analyst in Dispatch Centre Siemens Power Transmission and Distribution department, Project Manager in high voltage (10 kv 330 kv) substation turnkey building Main accomplishments: Construction of Harku substation (end-station for Estlink cable) Certificate of A-competence in all voltage levels from September 2002 Project Management IPMA-C level certificate 4Energia employs 14 professionals in Estonia and Lithuania 10

Wind portfolio under 4energia management Wind Park Subsidiary Status MW MWh/y FE/VE/ Other Capacity Pakri EST Pakri Tuulepark OÜ In operation 18,4 53 000 10/90 32,90% Virtsu I EST Roheline Ring Tuulepargid OÜ In operation 1,2 3 440 75/25 32,70% Virtsu II EST Roheline Ring Tuulepargid OÜ In operation 6,9 16 163 75/25 26,70% Sudenai LIT Vejo Elektra UAB, Lariteksas UAB In operation 14 35 566 50/50 29,00% Esivere EST Roheline Ring Tuulepargid OÜ In operation 8 20 863 75/25 29,80% Viru- Nigula EST Viru-Nigula Tuulepark OÜ In operation 24 64 400 0/100 30,60% Vanaküla EST Vanaküla Tuulepark OÜ In operation 9 24 020 0/100 30,50% Tooma I EST Tooma Tuulepark OÜ In operation 16 44 851 50/50 32,00& Virtsu III EST Roheline Ring Tuulepargid OÜ In operation 6,9 18 073 75/25 29,90% Mockiai LIT Eurolanas UAB, Iverneta UAB In operation 12 38 205 50/50 36,30% Tooma II EST Tooma Tuulepark OÜ Under construction Paldiski EST Paldiski Tuulepark OÜ Under construction Aseri EST Aseriaru Tuulepark OÜ Under construction Ciuteliai LIT Naojoji Energija UAB Under construction Dundaga LAT Enercon SIA Total in operation 116,4 318 581 Under development Kunda EST Oceanside OÜ Under development Silute LIT Silute Vejo Projektai UAB Under development Silale LIT Vejo Elektra UAB, Lariteksas UAB Hiiumaa Under construction Total onshore construction/development 268,4 773 660 EST Hiiumaa Offshore Tuulepark OÜ * - FE Freenergy, VE Vardar Eurus 8 22 426 50/50 32,00% 26,4 89 684 50/50 37,10% 24 71 061 50/50 33,80% 40 112 916 50/50 32,97% 50 130 000 50/50 29,70% 6 19 237 100/0 36,60% 100 287 490 50/50 32,80% 14 40 846 50/50 33,30% Planning 700 2 636 760 45/45/10 43,00% Total offshore development 700 2 636 760 TOTAL 1 085 3 729 001 32,75% Hiiumaa offshore Dundaga Sudenai Ciuteliai Mockiai Silute Tooma Esivere Virtsu II Paldiski Pakri Vanaküla Virtsu I Silale Virtsu III Kunda 4energia operating wind farm 4energia wind farm under development Viru-Nigula Aseri 11

Electricity generation by 4E wind farms, GWh 400 300 301,7 Forecast 200 211,3 100 110,9 139,9 60,5 0 2007 2008 2009 2010 2011 Plan to reach 300 GWh in electricity generation in 2011 12

EUR th Nordic Power Management JV with the company s management Financial performance Founded in April 2008 10 000 NPM offers services in all activities related to the purchase and sale of electricity Balance provider and a manager of energy portfolios for its customers 8 000 6 000 4 000 5 729 8 422 Currently portfolio under management: about 120 MW Largest non 4E related customers are Fortum Tartu, Estonian hydro power plants Traded 441 GWh in 2010 Wind farms accounted for 40% of traded electricity NPM employs 7 professionals with knowledge and long-time experience in financial and energy sector Key employees with Eesti Energia and Hansabank background 2 000 0 2009 2010 Sales Sales split, 2010 Great business potential as Estonian electricity market fully opens in 2013 14

EUR m Empower 4Wind JV with Empower, one of the largest service providers in Finland and the Baltic countries in the field of energy and telecommunications Service and maintenance of wind farms Troubleshoot Planned maintenance Construction, installation and reparation Repair parts Sales in 2010 reached EUR 687 m Strong growth in sales expected as new winds farms will be constructed/ operated Forecast 450 MW in the market by 2013 Company employs 13 professionals 1,2 0,9 0,6 0,3 0,0 0,7 Sales forecast 0,9 Sales split by client, 2010 WinWind 47,7% 4Energia 50,8% 1,0 1,1 2010 2011 2012 2013 Nordex 1,2% Other 0,2% Empower 0,2% 15

Wind energy projects 16

Pakri Wind Park 18,4 MW Company: Pakri Tuulepark OÜ Shareholders: 90% Vardar Eurus AS 10% Freenergy AS Capacity: 18,4 MW (8 x Nordex N90, 2,3 MW hh 80m) Annual production: 53 000 MWh/year Total investment: 22,4 M ( 1,22 M per MW) Status: in operation since 2005 Viru-Nigula Wind Park 24 MW Company: Viru-Nigula Tuulepark OÜ Shareholders: 100% Vardar Eurus AS Capacity: 24 MW (8 x 3 WinWind WWD3 3 MW, hh 90m) Yearly production: 57 960 MWh/year Total investment: 26,1 million ( 1,09 M per MW) Launching: 2008 17

Virtsu I Wind Park 1,2 MW Company: Roheline Ring Tuulepargid OÜ Shareholders: 75% Freenergy AS 25% Vardar Eurus AS Capacity: 1,2 MW (2 x Enercon E44, 600 kw, hh 63 m) Yearly production: 3 440 MWh Total investment: 1,2 million ( 1,03 million per MW) Status: Operating since 2002 Virtsu II Wind Park 6,9 MW Company: Roheline Ring Tuulepargid OÜ Shareholders: 75% Freenergy AS 25% Vardar Eurus AS Capacity: 6,9 MW (3 x Enercon E70, 2,3 MW hh 85 m) Yearly production: 16 163 MWh/year Total investment: 7,8 million ( 1,13 million per MW) Status: Operating since IV Q 2008 Esivere Wind Park 8,0 MW Company: Roheline Ring Tuulepargid OÜ Shareholders: 75% Freenergy A 25% Vardar Eurus AS Capacity: 8,0 MW (4 x Enercon E70, 2,0 MW, hh 85 m) Yearly production: 20 863 MWh/year Total investment: 8,7 million ( 1,08 million per MW) Status: Operating since 2005 18

Sudenai Wind Park 14 MW Company: UAB Lariteksas, UAB Vejo Elektra Shareholders: 50% Vardar Eurus AS 50% Freenergy AS Capacity: 14,0 MW (7 x Enercon E82, 2,0 MW, hh 78 m) Yearly production: 35 566 MWh/year Total investment: 20,7 million ( 1,48 million per MW) Launching: 4Q 2008 Mockiai Wind Park 14 MW Company: UAB Eurolanas, UAB Iverneta Shareholders: 50% Vardar Eurus AS 50% Freenergy AS Capacity: 12,0 MW (6 x Enercon E82, 2,0 MW, hh 108 m) Yearly production: 38 205 MWh/year Total investment: 23,3 million ( 1,9 million per MW) Launching: 4Q 2010 19

Planned Hiiumaa offshore wind park Depth Distance from shore Geology Hiiumaa 10-30 m 5-15 km Sand, gravel, clay, limestone Example of geological gross section 20

Biofund projects 21

Biomass concepts Possible uses of biomass Solid biomass (wood) Wet biomass Anaerobic digestion Biogas Steam boiler / CHP Gas engine Electricity 1/3 Heat 2/3 Electricity 1/2 Heat 1/2 Capacity range 2 100 MWel 0,2 2 MWel Raw material collection area Max 100 km Max 10 20 km Critical partners Heat consumers Raw material suppliers 22

4e Biofund targets 4e Biofond is the investment company developed by 4energia to enhance the development of projects of power production in biogas plants and combined heat and power (CHP) plants There are extensive natural resources (wood, peat, arable land) as well as recently introduced favorable legislation (feed-in tariffs) in Estonia for developing and operating biogas plants and CHPs Baltic states total Biogas 20 MW CHP 85 MW Estonia Biogas 6 MW CHP 25 MW Currently there are 6 projects in pipeline with total capacity of 15 MW and total equity investment requirement of 15 M EUR Full value chain from the property of land and control over fuels (wood, peat, biogas) to sales of heat and power is being developed If successful, then the business concept will be used also for Ukraine and Russia Latvia Biogas 7 MW CHP 30 MW Total target capacities for Baltics is over 100 MW Lithuania Biogas 6 MW CHP 30 MW 23

Oisu biogas plant Company: Oisu Biogaas OÜ Shareholders: 60% Estonia OÜ 40% 4E Biofond OÜ El. capacity: 0,7 MW Heat capacity: 0,74 MW Heat production: 5 952 MWh/y Total investment: 2,6 MEUR Status: launching 2Q 2010 Oisu biogas plant s views and position plan Vinni biogas plant Company: Vinni Biogaas OÜ Shareholders: 50% Askoterm OÜ 50% 4E Biofond OÜ El. capacity: 1,1 MW Heat capacity: 1,7 MW Heat production: 6 587 MWh/y Total investment: 3,4 MEUR Status: launching 2Q 2010 24

Technology projects 25

4E Technology fund Growth potential of wind energy sector in Estonia New Estonian Energy Plan draft sets the share of wind energy to be increased to 900 MW by 2018. Leads to need for local balancing power solutions. The development of related technologies and services market is very important. Need for balancing and reserve power, MW 1400 1200 1000 800 600 400 200 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Target sectors Renewable energy technology (including design and production of prototypes); Development and production of renewable energy storage and balancing technologies; 20% of the investment amount can be invested to listed renewable energy and technology companies. Balancing power stations Peak load reserve stations Projects Offshore wind measurements SODAR (sound detection and ranging) system installed near Hiiumaa Service team for wind parks to provide S&M for operating wind parks Energiasalv hydro pumping power station to provide balance power incl to Hiiumaa Offshore in cooperation with Maardu Graniidikaevandus Development of fuel cell and hydrogen production Production of small scale wind turbines - new concept to reduce significantly visual and noise pollution. 26

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 $ nominal/barrel Main challenges of the energy sector Climate change Power capacity renewal in EU25 900 Existing Additional demand 800 700 600 500 400 300 200 100 0 2000 2005 2010 2015 2020 2025 2030 World oil prices, 1980-2030 (2 scenarios) 200 High Price 180 Reference 160 140 120 100 80 60 40 20 0 27

Global renewable energy market 28

Gigatonnes EU targets for the energy sector Individual country targets for renewable energy (2006) Reductions in energy-related CO2 emissions Target 2020 in% Sweden Latvia Finland Austria Portugal Denmark Slovenia Share of renewable energy 2006 in% 45 40 35 Nuclear CCS Renewables & biofuels Energy efficiency 550 Policy Scenario 450 Policy Scenario 9% 14% 23% Estonia Romania 30 54% Lithuania France 25 Spain Greece Germany Italy Ireland 20 2005 2010 2015 2020 2025 2030 Reference Scenario 550 Policy Scenario 450 Policy Scenario Bulgaria United Kingdom Poland Slovak Republic Netherlands Hungary Cyprus Czech Republic Belgium Luxembourg 0 10 20 30 40 50 60 29

Electricity generating costs : offshore vs. other technologies Electricity generation costs EUR per MWh 140 140 120 Offshore Installed cost 3MEUR /MW 120 100 80 60 40 20 Range CO2 cost Lowest price Range Lowest price Range CO2 cost Lowest price Onshore Installed cost 1,3MEUR /MW Typical cost of gas and coal generation, 70EUR /MWh Onshore Installed cost 1,7MEUR /MW 100 80 60 40 20 0 Coal Nuclear Gas 6 7 8 9 Mean annual wind speed at hh, m/s 0 30 Source: Wind Power Monthly

Global wind energy market Leading wind markets, cumulative MW installed Wind power installed in Europe by the end of 2009, (cum. MW) USA 35 159 Germany 25 777 Sweden 1 560 China Spain India France UK Portugal Denmark 25 104 19 149 10 926 4 492 4 051 3 535 3 465 0 10 000 20 000 30 000 40 000 2009 2008 Rep. of Ireland 1 260 Portugal 3 535 UK 4 051 Spain 19 149 France 3 404 Norway 431 Denmark 3 465 Netherlands 2 229 Poland Germany Belgium 725 25 777 Czech 563 Republic Luxembourg 192 Slovakia 3 35 Austria Hungary 995 201 Switzerland 18 Italy 4 850 Croatia 28 Finland 146 Estonia 142 Latvia 28 Lithuania 91 Greece 1 087 Romania 14 Ukraine 94 Bulgaria 177 Turkey 801 Russia 9 31 Source: EWEA, Global Wind Energy Council

Baltic renewable energy market 32

2007 2008 2009 2010 2011 2012 2013 2014 2015 MW Energy sources in Baltics Three distinctive modes of electricity generation represented on a large scale Comments Projected demand and generation capacities Electricity generation split Origin of energy sources: Estonia local, Latvia local hydro, imported electric energy and natural gas, Lithuania imported Total annual consumption of electric energy: Estonia 7 TWh/year, Latvia 6 TWh/year, Lithuania 12 TWh/year, total about 25 TWh/year Major shutdown of amortized energy plants: Lithuania decommissioned Ignalina nuclear plant in 2009, Estonia to shut down 75 % of capacity of oil shale power plants in 2013 There will be gap between production and consumption capacities in Baltic states in the amount of 3 000 MW by 2015 Additionally, 1 500 MW of capacities will be based on natural gas imported from Russia, being therefore with limited reliability and having upwards price pressure Although the new plants are planned to be developed, these will require huge investments and will not be probably completed before 2016 Estonian oil-shale based electricity production, albeit with relatively low energy efficiency, is a dominating energy source in the country In Latvia electricity is generated mostly by three Daugava hydro power plants After the decommissioning of INPP Lithuania relies heavily on local gas PP and electricity import Importance of the issues of energy security and energy independence is increasing in the Baltics 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Shutdown of Elektrenai Lithuanian Power Plant Peak demand Shutdown of Ignalina NPP (Lithuania) Shutdown of old energy blocks in Narva power plants (Estonia) Gap to be filled Installed capacity Note: Generating capacities to be constructed in the future are not taken into account, as no definite plans on the time of their completion exist yet Gas 20% Oil shale 91% Imports 30% Natural gas 35% Gas 4% Wind 1% Hydro 47% Imports 59% Other 3% Hydro 3% Other 4% Other 3% Note: Electricity generation split i for Lithuania after Ignalina NPP decommission is estimated based on experts opinion Source: Freenergy, Eesti Energia

Energy System Integration Baltic power systems are connected to each other and Russia and Byelorussia Since the end of 2006 Estlink (350 MW) connects Estonian and Finnish power systems, allowing to exchange the electricity between Baltics and Nordpool Planned new interconnections: 2010 Fennoscan 2: Finland-Sweden 500/800 MW 2011-2013 Estlink2, 650 MW 2013-2016 Lithuania-Poland, 1000 MW 2015-2016 Lithuania-Sweden, 1000 MW connection allows entering to German electricity market Possibly additional Latvia-Sweden and/or Estonia-Sweden links will be built NordPool market: ca 50 EUR/MWh Sweden 1000 MW 800 MW Finland 350 MW 650 MW Existing grid connection Baltic Sea Estonia 400 MW 1000 MW Russia Planned grid connection Access to German electricity market: ca 60 EUR/MWh 1000 MW 2000 MW Lithuania 700 MW Russia 1000 MW 2000 MW 1000 MW Source: COWI report 2005 34

Ireland Norway Germany Portugal Spain Italy Denmark Austria Czech Republic Luxembourg Slovenia Belgium Sweden Malta Finland EU Slovakia Croatia France UK Poland Hungary Cyprus Turkey Latvia Greece Lithuania Romania Estonia Bulgaria EUR/MWh EUR/MWh Electricity prices Power prices are to converge with Finland Nord Pool area Comments Electricity prices in the Baltics are among the lowest in the EU on the back of fully amortized production facilities of power plants Since April 2010 Estonia partly liberalized its electricity market: clients with annual consumption exceeding 2 GWh should buy electricity in the open market Consumers with annual demand of more than 2 GWh constitute approximately 1/3 of the total market Full market liberalization is scheduled in 2012 Since April 2010 Estonia became a part of Nord Pool Spot, largest electrical energy market in the world Estlink connects Estonia to the Nordic power market, offering Baltic participants a liquid market and a trustworthy reference price Export to Finland has been very active: most of the time Estilink grid connection is used at the maximum available capacity Estonian electricity prices should converge with the Finnish level, especially after construction of undersea grid connection EstLink 2 Electricity prices on Nord Pool s 1 spot market remain mainly influenced in the long run by the level of water in the reservoirs of the Norwegian and Swedish hydropower plants 2 Electricity price forecast in Estonia by International Energy Agency 100 80 60 40 20 0 European electricity prices for domestic users (with taxes) in 2009 500 400 300 200 100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EU average EUR 173.5/MWh 105,3 101,1 94,5 0 Source: International Energy Agency, Eurostat 1) Nord Pool is the trade name of the Nordic power exchange where electricity is traded on a day-ahead basis 2) It is estimated that around 76% of observed variation in Nord Pool spot price is explained by Nordic hydrological balance 35

Wind conditions Distribution of full load hours in Europe (80 m hh onshore, 120 m hh offshore Source: EEA, 2008 The best wind conditions in Europe lie on Norwegian and British isles coasts Wind conditions in the coastal areas of Baltics are comparable with those on the coast of Spain and the inland of France and Germany (average wind speed 5.5-6.5 m/s) The most attractive wind areas in Baltics are comparable with those of inland of Denmark, the leading wind energy country in Europe 36

GWh Source: 4E, Eurostat, countries statistical offices. Gross electricity consumption for 2010 is projected on the same level as in the period 12m2008-11m2009 EU targets drive RES electricity development 2010: Additional RES capacity to be installed in Latvia to fulfill EU targets 15 000 12 000 9 000 6 000 3 000 0 Electricity eee consumption and RES share 8 839 8,7% 5,1% 7 242 49,3% 40,5% 11 376 7,0% EST LAT LIT 7,1% Projected gross electricity consumption 2010, GWh Projected RES share in 2010 EU target for RES share in 2010 50% 40% 30% 20% 10% 0% Estimated renewable electricity generation in 2010* 2010 Estonia Latvia Lithuania Hydro Installed capacity, MW 5 1 536 115 Generated electricity, GWh 21 2 800 400 Share in electricity consumption 0,24% 38,66% 3,52% Wind Installed capacity, MW 140 28 153 Generated electricity, GWh 350 74 309 Share in electricity consumption 3,96% 1,02% 2,71% Biomass Installed capacity, MW 65 10 31 Generated electricity, GWh 400 60 100 Share in electricity consumption 4,53% 0,83% 0,88% Total RES share 8,72% 40,51% 7,11% EU target share 5,10% 49,30% 7,00% Difference with EU target +3,62% -9,79% +0,11% Need for additional renewable electricity to meet EU targets (GWh) * 4E indicative scenario based on projected operational capacities in 2010 0 637 0 Estonia due to usage of Narva PP partly as a biomass PP and due to installation of wind capacities and Lithuania due to additional wind capacities are expected to fulfill 2010 EU targets for RES share in gross electricity consumption Installation of new RES capacities in Latvia is minimal; despite the expected decrease in electricity consumption Latvia needs approximately 637 GWh of renewable electricity to reach EU targets 37

33 968 40 612 49 637 59 347 57 739 69 034 EU targets drive RES electricity development 2020 targets: lots of new capacities to be installed 80 000 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 Final energy sss consumption and RES share 25,0% 17,5% 40,0% 29,9% EST LAT LIT Final Energy consumption 2008, GWh Final Energy consumption 2020, GWh RES in Final energy consumption 2008, % RES share in final energy consumption targets for 2020 2020 Estonia Latvia Lithuania Final energy consumption, GWh 40 612 59 347 69 034 RES in final energy consumption, % 25% 40% 23% RES energy, GWh 10 153 23 739 15 878 Growth in RES compared to 2008, GWh 4 209 9 760 6 871 New installed capacities* to fulfill EU 2020 targets 4E s scenario Biomass new istalled capacity*, MWel 100 270 200 Biomass electricity from CHP 2020, GWh 500 1 350 1 000 Biomass heat from CHP 2020, GWh 500 1 350 1 000 Wind new installed capacity*, MW 783 1 864 997 Wind total installed capacity 2020, MW 860 1 892 1 051 Wind electricity 2020, GWh 1 920 4 898 2 621 Biogas new installed capacity*, MWel 10 40 30 Biogas energy 2020, GWh 98 360 270 Hydro new installed capacity*, MW 0 2,5 10 Hydro electricity 2020, GWh 0 10 40 Biofuels increase in consumption 2020*, GWh 1 130 1 687 1 787 * New compared to 2008 According 4E s indicative scenario around 3,600 MW of wind energy capacity and 650 MWel of biomass/biogas energy capacity should be additionally installed in the Baltics to meet EU 2020 targets Most of growth potential in renewable energy in the Baltics lies in the development of wind energy in Latvia and Lithuania and biomass CHP in all three Baltic countries Source: 4E indicative scenario, countries statistical offices, Eurostat 23,0% 15,6% RES in Final energy consumption 2020, % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 38

2002 2004 2006 2008 2010 2012 2014 2016 2018 2002 2004 2006 2008 2010 2012 2014 2016 2018 2002 2004 2006 2008 2010 2012 2014 2016 2018 Legal framework Estonia Latvia Lithuania Support type Feed-in premium Feed-in tariff Feed-in tariff Subsidy, EUR/MWh 53.7 100 87 Can sell to Market (~40 EUR/MWh) Market/ GridCo GridCo Balance responsibility Yes Yes No Imbalance responsibility Hourly prices set by TSO 0.8/1.2 coefficients 1 Generators not responsible Final price 2, EUR/MWh 93.7 100 87 Notes: 1) Deficit imbalance price 1.2 x fixed price; surplus imbalance price 0.8 x fixed price 2) Approximate resulting income of wind generator per each generated MWh in 2009 based on current market price and imbalance cost assessment for 20 MW wind park Estonian wind energy capacity estimate Latvian wind energy capacity estimate Lithuanian wind energy capacity estimate MW 1000 800 600 400 Capacity, MW Capacity, MW (Estonian Energy Policy estimate) Cap (GWh/y) GWh/y 1200 1100 1000 900 800 700 600 MW 2000 1600 1200 800 Capacity, MW Capacity, MW (Estimated according to EU Climate Pacage) MW 2000 1600 1200 800 Capacity, MW Capacity, MW (Estimated according to EU Climate Pacage) 200 500 400 400 400 0 300 0 0

4 Contacts Martin Kruus Chairman of the management board Nelja Energia OÜ (4energia) Tel. +372 640 90 90 E-mail martin@4energia.ee Kalle Kiigske Chairman of the management board Freenergy AS Tel. +372 640 90 90 E-mail kalle@4energia.ee Tor Ottar Karlsen Chairman of the board Vardar Eurus as +47 97 16 59 08 E-mail: tor-ottar.karlsen@vardar.no Johannes Rauboti CEO Vardar +47 91 64 52 64 E-mail: johannes.rauboti@vardar.no