CEZ WIND PARK IN ROMANIA

Energie verde, Bucharest, ROMANIANovember 29th, 2010

ADRIAN BOROTEACORPORATE AFFAIRS DIRECTOR - CEZ ROMANIA

Date: 11.11.2009 Version: Presented

CEZ GROUP IS STABLE INTERNATIONAL UTILITY ACTIVE IN MORE THAN 10 COUNTRIES OF CSEE

2

Date: 11.11.2009 Version: Presented

Timisoara

Arad

Oradea

Satu Mare

Alba lulia

Bistrita

Tîrgu Jiu

Deva

Drobeta-

Turnu Severi

n

Suceava

Botosani

Iasi

Vaslui

Sibiu

Zalau

Miercurea

Ciuc

Rîmnicu

Vîlcea

Brasov

Pitesti

Sfîntu Gheorg

he

Slatina

Focsani

Galati

Buzau Ploies

ti

Slobozia

Calarasi Giurgi

u Alexandria

Braila

Tirgoviste

Tulcea

Tîrgu Mures

Piatra Neamt

Bacau

Resita

Baia Mare

Cluj-Napoca

Constanta

Craiova

Bucuresti

Sales and distribution services

CEZ GROUP IN ROMANIA

Sales servicesFantanele & Cogealac wind farms

Fantanele and Cogealac Wind Park will be together the largest onshore wind park in Europe

The total capacity: 600 megawatts Total investment of CEZ Group into the project will reach € 1.1 billion

3

Date: 11.11.2009 Version: Presented

Law no.139/2010

4

It updates law 220/2008, incentivizing more such investments and answering to EC questions on notification

Some “clean” producers receive for each 1 MWh produced more than 1 GC: 2 GCs for wind energy for the electricity generated until 2017 and 1 GC starting 2018, 3 GCs for new hydro, 2 GCs for rehabilitated hydro and 6 GCs for solar energy

Supporting scheme applicable for units to be commissioned/rehabilitated until end of 2016: 15 yrs to new units, 10 yrs for rehabilitated hydro units below 10 MW, 7 yrs for second hand units and 3 yrs for non-rehabilitated hydro below 10 MW)

GC may be traded within price limits: from 27 EURO/CV to 55 EURO/CV in 2010; starting 2011 (until 2025), limits will be inflated with EU27 inflation index; after 2025, minimum value cannot be lower than 2025 one

If suppliers will not achieve mandatory quota at end year, they will pay 110 EURO/CV (inflated starting 2011 by EU27 index) to TSO who will allocate the amounts to residentials who will invest into renewable sources below 100 kW

New quota values to be supported until 2020 are:2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5,26% 6,28% 8,30% 10% 12% 14% 15% 16% 17% 18% 19% 19,5% 20%

Date: 11.11.2009 Version: Presented

0 8 14

7,000

Water Wind

MW/ Fuel

6,000

8,000

0

2,000

3,000

5,000

4,000

Coal Hydro-carbons

Nuclear

1,000

FANTANELE WIND PARK MULTIPLIED INSTALLED WIND CAPACITY IN ROMANIA BY 25 TIMES

Overview of the installed capacity and annual electricity production

Installed capacity Annual Electricity Production

2007

2008

2009

1 7 11

24,000

28,000

GWh

NuclearHydro-carbons

Coal Wind

20,000

16,000

Water0

4,000

8,000

12,000

2006

2008

2007

Source: CEZ research

Date: 11.11.2009 Version: Presented 6

MONTHLY EVOLUTION OF TRADED GC AND THEIR PRICES

Source: OPCOM

Date: 11.11.2009 Version: Presented 7

CV Total Eolian Hidro Biomasaianuarie 27532 1538 23068 2926februarie 21195 1396 15392 4407martie 28259 2334 21736 4189aprilie 33238 2133 26710 4393mai 35203 2077 28036 5090iunie 41278 2113 27206 11958iulie 36306 1620 24591 10095august 49840 22139 18718 8981

Sept. 77757 39775 20878 17103

GREEN CERTIFICATES ISSUES IN 2010

Date: 11.11.2009 Version: Presented

Two wind farms projects in Dobrogea county, between villages of Fantanele and Cogealac (north of Constanta, 17 km west of the Black Sea coast);

Total projected size: 240 WTGs(1) of 2.5MW– installed capacity of 600MW; The project will be the largest onshore wind farm in Europe; Once wind farms are operational, CEZ will have 10 % share on the Romanian market with renewable

energy, including big hydro.

WIND FARMS PROJECT IN FANTANELE AND COGEALAC WILL BE THE LARGEST ON-SHORE WIND FARM BUILT IN EUROPE

Basic information about wind farms CEZ project

Both wind farms

1st phase of the project – 139 wind turbines; Construction has started in October 2008 Currently, we have erected 120 WTGs, build 100

km of roads, laid more than 140 km of cables 33 kV and 110 kV

4 Transformer Substations 110 / 33 kV One Transformer Substation 400 / 110 kV,

connected to Transmission Grid

Fantanele Project Cogealac Project

2nd phase of the project – 101 wind turbines; To be finished in 2012; Signed contract for with GE for supply of 101

WTGs (same as for Fantanele project) more than 130 km of cables 33 kV and 110 kV 4 Transformer Substations 110 / 33 kV

Note: (1) WTG – Wind Turbine GeneratorSource: CEZ

8

Date: 11.11.2009 Version: Presented

FANTANELE & COGEALAC PROJECT IS DESIGNED TO PROVIDE 600 MW CAPACITY OF THE ECOLOGICAL ENERGY

Overview of the key technical parameters of Fantanele & Cogealac project

Technical parameter Description

Total generation capacity 600 MW

Wind turbine generators composition

240 generators (generation capacity 2.5 MW each) – 100m hub height, 99m rotor diameter

Energy transformation

Generators are connected to seven 33 kV/110kV substations, which deliver on 110kV level to the Main Transformer Station which connects the Fantanele wind farm on the 400kV grid line Constanta -Tulcea operated by Transelectrica.

Selected technical information on Wind Turbine Generators (WTG)

Producer: General ElectricMaximum speed: 73.6 m/sBlades material: fiber glass – epoxy resin/polyesterCut-in wind speed: 3 m/sCut-out wind speed: 25 m/sRated power output: 2.5 MWTower: tubular steel, 100m

Source: CEZ; General Electric

9

Date: 11.11.2009 Version: Presented

CEZ IS KEEPING A CONSISTENT PUBLIC FRIENDLY POLICY TO THE COMMUNITIES

Selected public related activities of CEZ

Long-term partner for the communities

Acknowledging its role and supporting their development

Partnership with communities

CEZ is currently building its relationship and involvement as partner, discussions with both the authorities and citizens

The village's infrastructure and facilities for the people are just some of the focus subjects

Dedicated to improving the quality of life in the community

Supporting the local infrastructure

projects

Creating jobs for local citizens

Choosing local companies as partners (Eraos, Fantanele – construction works)

Supporting commerce (economical development) of the area

Sub-constructing work to local companies

10

Date: 11.11.2009 Version: Presented 11

SUMMARY OF WIND PROJECT

11

Useful Life of wind farm - 25 years

Efficiency of Wind Turbines comparable with the most efficient Wind Farms

Positive trends in develpment of prices of energy and green certificates refflecting also inflation

2 Green certififcates till 2017

1 Green certificate for 2018-2025

Repairs and maintenance costs comparable with European standards

Start of full operation of Fantanele part in 10/2010

Only 12 full time employees

Positive legal environment supporting investments into green technologies

KEY ASSUMPTIONS USED IN PROJECT

1

Date: 11.11.2009 Version: Presented

CEZ TRADE responsible for ELECTRICITY OFF-TAKE, IMBALANCES and BROKER FOR GREEN CERTIFICATES MARKET

TOMIS TEAM

MW INVEST

ČEZ, a.s. Trading OTC market

DAM

MWh MWh

Balancing Market

Power plant

Power plant

Power plant

CEZ Trading team

Advisory and/or brokerage

Mutual delivery

agreements

Green certificates CEZ Vanzare

Other suppliers – OTC

OPCOMManagment of agreements, deliveries

Trading model – green certificates

12

Date: 11.11.2009 Version: Presented

Pouring of blinding concrete Mounting of ring for foundation

Pouring of blinding concrete Construction of adapter ring and steel installation

PICTURES FROM THE SITE (1)

13

Date: 11.11.2009 Version: Presented

Installation of cablesInstallation of adaptor ring

PICTURES FROM THE SITE (2)

14

Date: 11.11.2009 Version: Presented

Installation of first WTG (FE8) Installation of first WTG (FE8)

PICTURES FROM THE SITE (3)

15

Date: 11.11.2009 Version: Presented

Installation of blades

PICTURES FROM THE SITE (4)

16

Date: 11.11.2009 Version: Presented

PICTURES FROM THE SITE (5)

17

MTS 400kV side

Date: 11.11.2009 Version: Presented

PICTURES FROM THE SITE (6)

18

Date: 11.11.2009 Version: Presented

PICTURES FROM THE SITE (7)

19

Thank you very much for your kind attention!