Cleantech sector in the Czech Republic

1. Clean Technology
Investment
Opportunities in the
Czech Republic
Vojtech Helikar
Investment Development Manager
Cleantech & Nanotechnology
© Copyright, CzechInvest 2011. All rights reserved

2. Reasons to Invest in the Czech Republic
 Open and highly competitive economy
 Excellent location in the heart of Europe with easy access to Germany
and other key European markets
 High quality engineering at lower costs than comparable markets
 Transparent System of Investment Incentives
 High quality of life

3. Outline
1. Introducing CzechInvest
2. Czech Republic – Overview
3. National Renewable Energy Policy and Financial Support
4. Wind Energy in the Czech Republic
5. Biomass in the Czech Republic
6. Biofuels in the Czech Republic
7. Biogas in the Czech Republic
8. Photovoltaic in the Czech Republic
9. Hydro energy in the Czech Republic
10. Sourcing possibilities in the Czech Republic

4. RE INTRODUCTION
Legislation
Total share of renewable energy sources in the Czech Republic:
-- Share of gross domestic power generation on consumption in 2011– 9.4%
-- Directive 2009/28/EC of the European Parliament requests Member
States to publish a forecast on the use of the flexible cooperation
mechanisms laid down in the Directive for achieving their targets
The Czech Republic assumes that its share of renewable will reach 13%
-- National Action Plan for Renewables – approved on 25th September 2010
Source: National Renewable Energy Plan, 2011

5. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

6. 1. Introducing CzechInvest

7. CZECHINVEST
Investment & Business Development Agency
Ministry of Industry and Trade
CzechInvest
Investment and Business Development Agency
to support foreign direct investment
to develop local companies
mission
to implement business-development programs
to improve business environment
Source: CzechInvest, 2011

8. CzechInvest
Gateway to the Czech Republic
SERVICES FOR YOU COMPANY: MISSION:
Information, Research and Advice Attract and support FDI
Improve business environment
Tailor made visits to the Czech Republic
Develop local companies
Dedicated project management team
Finding business properties
Supplier identification
Aftercare services
Access to investment incentives and EU funding
All our services are free of charge
Source: CzechInvest, 2011

9. Czechinvest in Numbers
1993 – H1/2011
Mediated Projects (Total) : 1,565
New Jobs Created: 215,763
Total Investment Amount: 25,909 (USD million)
Prestigious Awards: 8
 Best Website among All Investment Promotion Agencies 2009, World Bank
 Inward Investment Team of the Year 2009, Business Destinations
 Best practices in Promotion Award 2004, World Investment Forum
 Best Advertisement Promotion Agency in the EU Accession Countries of 2002
 European Investment Promotion Agency of the year 2001
 European Investment Promotion Agency of the Year 2000
Source: CzechInvest, 2011

10. CZECHINVEST
Investment & Business Development Agency
Regional and Foreign Offices
Source: CzechInvest, 2011

11. 2. Czech Republic – Overview

12. Czech Republic
Country Profile
Population 10.5 million
Labour force 5.3 million
Unemployment 9.0 %
GDP p.c. (PPS EU-27) EUR 20 000
GDP growth 2.3 %
Annual inflation 1.5 %
Average monthly wage
(nominal) EUR 947
USD 1253
Source: Czech Statistical Office 2011, Czech Ministry of Finance, 2011

13. Czech Republic
Macroeconomic Data
INDICATORS 2008 2009 2010 2011f 2012f 2013f
GDP, growth rate
2.3 -4.0 2.2 2.5 2.4 3.0
%
GDP, USD bn,
216.5 187.6 191.8 213.2 229.4 239.6
current prices
Unemployment,
6.0 9.2 9.6 8.0 7.4 6.9
% of labour force
Current account
balance in % of -0.6 -3.2 -3.8 -4.1 -4.1 -4.5
GDP
FDI inflow
3.0 1.5 3.5 - - -
in % of GDP
CZK/EUR average 24.9 26.5 25.3 24.3 23.7 23.2
Industrial output,
-1.5 -13.4 10.2 9.4 6.2 6.1
growth rate, %
Note: f = forecast
Source: Patria, July 2011

14. SELECTED INVESTORS
IN THE CZECH REPUBLIC
USTI REGION OLOMOUC REGION
Koycera Onamba
LIBEREC ZLIN REGION
PRAGUE REGION
USTI NAD LABEM Sunline Carl-Zeiss-Stiftung
Iberdrola
KARLOVY VARY British Nuclear Fuels
BRNO REGION
PRAGUE HRADEC KRALOVE Darfon Electronics
AU Optronics
CENTRAL BOHEMIA
PARDUBICE
REGION
PLZEN
OLOMOUC
OSTRAVA
JIHLAVA
PLZEN REGION
Antaris Solar
CESKE BUDEJOVICE ZLIN
BRNO NON-SPECIFIED
CENTRAL BOHEMIA
Itochu
REGION
Bewag
Astris Engergi
Tereos
Virtual Utility
SOUTH BOHEMIA REGION Shriram EPC
Meinl Bank Vyncke Corporation
Japan Wind Development
Donauer Solartechnik Vetriebs
Source: CzechInvest 2010, fDi Markets 2010

15. ADVANCED RENEWABLE
ENERGY INTO CR
Top Companies by Capital Investment in USD
Source
Company 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
Country
Gehrlicher Solar Germany 624.60 624.60
Virtual Utility UK 524.00 524.00
WELtec BioPower Germany 269.70 269.70
Shriram EPC India 269.70 269.70
Conergy Germany 214.20 214.20
Juwi Germany 214.20 214.20
Itochu Japan 197.30 197.30
Japan Wind Deve... Japan 197.30 197.30
Carl-Zeiss-Stif... Germany 25.00 79.36 104.36
Eab Group Germany 77.30 77.30
Other Companies 29.00 18.90 16.50 59.40 3.60 30.30 3.60 39.60 29.88 230.78
Overall Total 29.00 567.90 16.50 59.40 160.26 424.90 273.30 1,110.60 299.58 2,941.44
Note: Renewable Energy; year 2011 – till November
Source: fDi Markets, 2012

16. ADVANCED RENEWABLE
ENERGY INTO CR
Top 10 Companies by Yearly Jobs Created
Source
Company 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
Country
Carl-Zeiss-Stif... Germany 300 400 700
Gehrlicher Solar Germany 345 345
Astris Energi Canada 190 81 271
Tereos France 170 170
Kyocera Japan 150 150
Virtual Utility UK 138 138
Conergy Germany 115 115
Juwi Germany 115 115
WELtec BioPower Germany 106 106
Shriram EPC India 106 106
Other Companies 0 0 101 33 8 213 8 42 7 412
Overall Total 190 669 101 203 408 213 114 617 113 2,628
Note: Renewable Energy; year 2011 – till November
Source: fDi Markets, 2012

17. 3. National Renewable Energy
Policy and Financial Support

18. Czech National Renewable
Energy Policy
The Czech Republic is aiming for the mandatory target of a 13,5% share of energy from
renewable sources in gross final energy consumption by 2020. This includes a mandatory
target of a 10% share of energy from renewable sources in all kinds of transport in gross
final energy consumption.
Financial support
╌ Subsidy schemes for the introduction of renewable energy
and heat production for non-profit organizations, universities, cities, towns,
municipalities and districts
╌ Feed-in tariffs and green bonuses to subsidise renewable energy
production
╌ Tax exemptions or reductions and tax refunds
Feed-in tariffs – all the Green bonuses:
electricity produced can premium on the market
be sold to the relevant price of electricity
distribution system produced from
operator renewable sources
Source: National Action Plan for Renewable Energy, 2010

19. Investment Policy in the
Czech Republic
OPEN PROGRAMMES
Financed
Financial support Max amount of How the investor Application
from the Availability
Purpose of support support qualifies Deadline
budget
-- Min. investment in long-term
no max assets EUR 2-4 mil.
amount (depending on region)
Investment incentives up to 40 % of -- At least half of the above
All regions
Support of production National eligible costs minimum investment must be No time limit except
(assets) (30 % in covered by own equity Prague
Southwest -- At least 60 % from the total
region) investment must be made into
new machinery
8 mil EUR -- Min. investment into long- September
(200 mil CZK) term assets EUR 400,000 All regions
Potential programme 30, 2011;
EU up to 40 % of -- Maintaining the investment except
Support of R&D eligible costs for 5 years Another call
(till 2013) Prague
activities (assets) (30 % in -- Financial health of the expected in
Southwest applicant
early 2012
region)
Source: CzechInvest, 2011

20. 4. Wind Energy in the Czech
Republic

21. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

22. Wind Energy Production in
the Czech Republic
Source: ERÚ (Energy Regulatory Office), 2011

23. Feed-in Tariffs in the Czech
Republic
Premium Tariffs /
Feed in Tariffs
Wind power; Start of operation Green Bonus
CZK/MWh CZK/MWh
Wind power put into operation between
2230 / 90,96€ 1830 / 74,65€
1st of January and 31st of December 2011
Wind power put into operation between 1st
2280 1880
of January and 31st of December 2010
Wind power put into operation between 1st
2440 2040
of January and 31st of December 2009
Wind power put into operation between 1st
2670 2270
of January and 31st of December 2008
Wind power put into operation between 1st
2740 2340
of January and 31st of December 2007
Wind power put into operation between 1st
2790 2390
of January and 31st of December 2006
Wind power put into operation between 1st
3050 2650
of January and 31st of December 2005
Wind power put into operation between 1st
3210 2810
of January and 31st of December 2004
Wind power put into operation between
3550 3150
before 1st of January 2004
Source: Svaz podnikatelů pro využití energetických zdrojů; http://www.spvez.cz, 22nd of August 2011

24. Overview of Wind Farms in
the Czech Republic
Situation in 2009:
Map of Wind Farms in the Czech Republic Wind farms with
power higher than
100 kW
Source: ČSVE, 2011

25. Latest News concerning Wind
Energy in Czech Republic
The total of 93 wind turbines were operated in the Czech Republic at the end of
2010. Compared with 2009, the number increased by eight. The total installed
capacity of these resources by the end of the year amounted to 214.78 MW, which
is by 11.37% more YOY. Interest of investors in wind projects has been
continually growing since 2006.
Source: CIA, 21st July 2011
Power utility CEZ (CEZ Group; ČEZ, a. s.) is not considering any other own
photovoltaic power plant projects and/or acquisitions of existing plants outside
its current portfolio. According to Mr. Kožušník, general director of CEZ Reneable
Energy, CEZ sees potential for the raising the volume of hydro sources, wind
energy and/or the usage of biomass.
Source: CIA, 10th August 2011

26. 5. Biomass in the Czech Republic

27. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

28. Biomass in the Czech Rep.
Map of pellets, briquets, chips in the Czech Republic
Source: CZBIOM, 2011

29. Biomass in the Czech Rep.
Share of Biomass in CR since 1st of September 2011
Number of business establishments
Installed Capacity [MWe]
Source: Institute for Information on Education, 2011

30. Biomass in the Czech Rep.
Key information about biomass in the Czech Republic:
-- Gross electricity production from biomass amounted to about a 1000 GWh.
-- Heat production from biomass amounted to 16 000 TJ
-- Potential investment in the Czech Republic:
 Farming fast growing trees
 Transforming Coal power plants into Biomass power plants
 Wood pellet/ briquette production
-- List of power plants in the Czech Republic owned by CEZ.

31. 6. Biofuels in the Czech Republic

32. Biofuels in the Czech Rep.
-- The most common biofuels:
• Rapeseed oil methylester
• Bioethanol
-- Pure biofuels & high-biofuel blends
• Fuel E85
• Fuel E95
-- The Czech Republic currently ranks 6th
highest among the EU25 in terms of
biodiesel production capacity.
With a capacity of 203 ktoe per year in
2006, it clearly surpasses the production
capacity of bioethanol (1.1 ktoe in 2005)
Source: European Commission, January 2007
Source: European Biodiesel Board, June 2010

33. Biofuels in the Czech Rep.
Key information about biofuels in the Czech Republic:
-- There are 16 biodiesel plants in the Czech Republic (leader in # of sites)
-- There are 4 Czech producers of Bioethanol
-- Rapid increase in production, slow increase in biofuels consumption (we are not
reaching 60% of consumption in Germany/ France).
-- There is a common negative attitude against using biofuels of first generation.
-- Increase of MEŘO addition (up to 10% by 2020) into diesel -> higher
consumption & production of rapeseed oil.

34. 7. Biogas in the Czech Republic

35. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

36. Biogas in the Czech Rep.
Map of biogas plant in the Czech Republic
Source: CZBIOM, 2011

37. 8. Photovoltaic in the Czech
Republic

38. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

39. MAJOR SOLAR MODULES
MANUFACTRURES IN THE CR

40. THE PHOTOVOLTAIC SYSTEM
IN CZECH REPUBLIC

41. KYOCERA SOLAR EUROPE
-- leading company in photovoltaic
technology
-- located in the town of Kadaň (Ústí region)
-- in operation since 2004
-- first European solar production plant of
Kyocera
-- manufacturing of solar inverters and high
efficiency multicrystalline photovoltaic
modules
-- 306 employees

42. SOLARTEC
-- founded in 1993 by R&D workers of
former Tesla
-- located in the town of Rožnov (Zlínský
region)
-- in operation since 1994
-- production of solar cells from
monocrystalline silicon and modules
-- 100 employees
-- cooperation with universities since 1993

43. RWE SCHOTT SOLAR
-- founded in 2004 as subsidiary of RWE
Schott Solar GmbH
-- located in the town of Valašské Meziříčí
(Zlínský region)
-- new production facility, new modul lines
and start of production in 2005
-- production of crystalline solar cells and
modules
-- 300 employees

44. 9. Hydro energy in the Czech
Republic

45. Renewable Energy Sources
Connected or Planned Power Plants
Agreement
Connected to the Concluded Subject to
Overview as of 31 July Grid (powerplant not
Total
Negotiations
2011 yet built)
MW MW MW MW
Total in Photovoltaic 1 906 698 2 604 -
the Wind 213 802 1 015 1
Czech Hydro 1 103 49 1 152 2
Republic Power pl a nts < 1 MW 137 25 162 2
Power pl a nts =, >1 <10
MW 141 11 152 -
Power pl a nts =, > 10 MW 825 13 838 -
Biogas 122 340 462 43
Mine Gas 42 - 42 -
Geothermal - 10 10 8
Biomass 111 89 200 29
Total 3 497 1 988 5 485 84
Source: CSRES, 2011

46. Hydropower in the Czech
Republic
-- 1888 – first hydropower plant built in the Czech
Republic
Hydro power stations
Number of
hydro power Installed capacity [MWe]
plants
Source: ERU (Energy Regulatory Office), April 2010

47. MAJOR SOLAR MODULES
MANUFACTRURES IN THE CR
Source: CEZ, 2012

48. Hydropower in the Czech
Republic
-- Tradition, long-time experience, technical skills

49. Potential Investment in Water
Management
-- Industrial waste water treatment (WWT):
Production for mechanical pre-treatment,
technology
Supply for municipal, industrial and agricultural
WWT plants
Production and supply of aerating systems and
small waste water treatment plants
Filtration membranes – use new materials (nano-
materials)
Water supply stream, potable water production
Rebuilding or modernisation of municipal

50. 10. Sourcing possibilities in the
Czech Republic

51. Energy Engineering sector
Tradition & Progress
╌ Wide supplier infrastructure exists comprehensive of 500 engineering
suppliers and almost 300 000 workforce.
╌ Long tradition of Czech energy engineering from the beginning of 20.
century – supplier no. 1 of energy components for Soviet block – quick
restructuring during last 20 years
╌ Synergy across the whole engineering sector – Extensive collaboration
in contract manufacturing and design in electrical engineering (ABB,
Vishay, ON Semiconductor, GE)
╌ Fully – conected network of suppliers energy engineering due to
presence of big traditional engineering companies and new investment
during last years
╌ The machinery park was renewed in the massive investment wave
over the last 10 years
source: CzechInvest 2011

52. Local sourcing opportunities
for overseas companies
╌ Experienced engineering suppliers base in metal processing (300
companies), plastic processing (150 companies), electro assemblies
(300 companies)
╌ Full scale of metal processing (machining, casting, stamping, forging,
surface treatment, tooling), plastic processing (inj. Moulding,
composites treatment) and electro assemblies (cable harnesses,
control units, PCb´s)
╌ Material for energy engineering is produced in the Czech Republic
directly
╌ Experience in quality standards is available for US QS
source: CzechInvest 2011

53. Czechinvest Sourcing Services
for overseas companies
╌ Support of feasibility studies for local purchasing and local market
investigation
╌ B2B promotion, sourcing events organization, tailor-made supplier
forums
╌ Supplier identification and organization of business trips
╌ Mergers & Acqusition & Joint ventures target identification
╌ IT tool development for local sourcing http://suppliers.czechinvest.org
╌ Reference of U:S: based companies: Clipper Wind, Caterpillar, GE,
United Technologies
source: CzechInvest 2011

54. Nanotech in the Czech Rep.
Thank you for your attention.
Vojtech Helikar
Business Development Manager
Department of Investment Development
Phone: (+420) 296 342 809
Fax: (+420) 296 342 613
E-mail: vojtech.helikar@czechinvest.org
www.czechinvest.org
CzechInvest, the Investment and Business Development Agency, is an organization
of the Ministry of Industry and Trade of the Czech Republic
© Copyright, CzechInvest 2006. All rights reserved

55. SEE YOU IN THE CZECH REPUBLIC !!!