GAMMA SOLAR HOLDING

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Legislative framework for renewable energy

Europe:

The European Union, through its member states has had since a long time a policy to encourage the development of renewable energy. The reduction of carbon dioxide emissions and the development of renewable energy sources particularly energy from wind and sun and biomass is a major aim of the European Commission’s Energy Policy. The European Directive of 2008 calls for a binding target of 20% share of renewable energies in the overall EU energy consumption by 2020. In turn each country has adopted a legal framework to encourage the development of renewable energy mostly through Feed-in-tariffs and targets to achieve. This has led to the development of new opportunities in the renewable energy business that Gamma Solar Holding a company established in 2006 in Cyprus, and with presence in both the Greek and Italian markets has used to develop ground photovoltaic installations and biomass installations.

Africa:

Even though the most countries around the world have adopted similar laws regarding Feed-in-tariff and market share quotas of renewable energy, our strategy is not to sell to government entities in Africa but to use the rights granted to independent power producers to sell to the private sector . An in-depth study of power production, grid usage, net metering etc… is part of our approach.

Revenues (feed-in-tariff)

Depending on the size of the project and the connection date, the tariff received from the sale of the electricity varies from € 0.178 cents to € 0.29 cents per kWh. The tariff is guaranteed by a 20 year contract from the date of connection, so most of our projects have 16 to 17 years left under this tariff. Upon expiration of this tariff, we are entitled to sell the electricity at market prices (€ 0.0835/kWh for another 7 years) This retribution is paid for all the energy produced by any independent power producer.

Investment

For each specific project, a special purpose vehicle is set. Investors can acquire participations in the SPV. Gamma Solar Holding will retain a minority share in each project (30% to 40% average). Our engineering team, who is responsible for the operations and maintenance will also be a shareholder at 5% participation.

Financing

Most projects have been built on a full equity basis. Some projects have obtained the financing from local banks. However, due to the difficult market of debt in the south of Europe, we have opted to pay-off all outstanding loans for our projects.

Tax Benefits

Under certain conditions, some countries offer tax deductions for investments in renewable energy. This could be done on a case by case study.

Salvage Value

We have not taken into account the resale value of the equipment in our IRR calculations.

Contact

Bachir Tabbara

Makariou III, 33, Frixos Center, 6036 Larnaca, CYPRUS.

e-mail: bachir@gammasolarholding.com

phone: +33 6 85 84 30 45

Important information

All projects are built according to international standards, we only use internationally renown EPC contractors. We require from our EPC contractors bank guarantees for the first 2 years of production. Our local teams supervises the direction of works.The modules we choose are all guaranteed for 25 years, with a maximum loss in production of 15% over the life of the module. Our team provides inspection before installation.