1. BORUSAN EnBW Enerji
Wind Power Turkey - 2011
Istanbul
20 September2011

2. BORUSAN AND ENBW PARTNERSHIP
FIRST CONTACT DURING 2008 DAVOS SUMMIT – PARTNERSHIP WAS FOUNDED IN 2009
Borusan Enerji was established in 2007 as EnBW Holding A.S was founded in 2009
the energy arm of Borusan Holding, one of in Ankara as a 100% subsidiary of EnBW
the leading business conglomerates in AG which is the third-largest energy
Turkey active mainly in steel, logistics company in Germany active in
distributorship sectors. electricity generation, trading, grid, gas
& environmental services.
JUL 09
APR 09
Closing
Partnership
Agreement
Borusan Holding A.S. EnBW Holding A.S.
50% 50%
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3. STRATEGIC FOCUS AND TARGETS
JV HAS A PREDEFINED TARGET: 2000 MW INSTALLED CAPACITY BY 2020 WITH A RENEWABLE FOCUS
Critical Year
to lay the 1000 MW 1000 MW 2000 MW
2009 foundations 2014 licensed 2016 installed 2020 installed
of the projects capacity capacity
company
Current Portfolio Target Portfolio
(611 MW) (2.000 MW)
Target activity area
25%
includes all energy 43%
50%
sources particularly 57%
25%
renewable energy
Wind Hydro Others
2

4. TURKEY – WIND INSTALLED CAPACITY
CURRENT SITUATION
INSTALLED CAPACITY DEVELOPMENT BY RESOURCES CAPACITY – 2011 (50.985 MW)*
GW
60 3,07%
49,9 51,0 0,18%
50 44,8 15,96%
41,8
38,8 40,6 40,8 3,91%
40 35,6 36,8 33,08%
31,8
30 27,3 28,3 7,09%
20
10
0 36,70%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
INSTALLED CAPACITY DEVELOPMENT - WIND Wind installed capacity has been
MW
increasing slowly over the years
2.000 accounting for 3 % of the total
Wind Natural Gas Other Thermal 1.564 installed capacity by Sept 2011.
1.500 Geothermal Coal Added Wind 1.329 235
Hydro Lignite
1.000 537 Yet, with the finalization of
792
tendering process a visible
428
500 364 increase is likely to be observed in
19 19 19 19 19 20 59 146 217
3 - 4 years period.
39 87
0 1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
• TEIAS statistics as of September 2011
4 Multiple fuels (solid & liquid) included in the thermal heading except liquid
natural gas which is placed under natural gas heading

5. TURKEY – WIND INSTALLED CAPACITY
REACHING THE TARGET OF 20 GW SEEMS AS AN AMBITIOUS OBJECTIVE
 Energy Market and Supply Security Document
stipulated 2023 targets in the Turkish energy sector
including the target of wind installed capacity - 20
GW
 2010 - 2011 has been an important year for the
wind energy investors (adoption of FIT &
completion of evaluation of long-awaited 1st of
November applications)
Still half of the
 Existing WEPP Capacity 1.564 MW
way to go…
 Single WEPP applications1: 1.876 MW
 Multiple WEPP applications2: 5.587 MW
TOTAL (~) 9.000 MW
1) already licensed by EMRA
2) total capacity to be allocated in 13 packages
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6. EUROPE - WIND INSTALLED CAPACITY
BY THE END OF 2010
WIND INSTALLED CAPACITY (MW)
Turkey 1.329
Finland
Russia
European Union 84.278 197
9
Norway
Candidate Countries 1.418 441
Sweden Estonia
2.163 149
Total Europe 86.279 Latvia
31
Lithuania
Ireland
Renewable Energy Directive 1.428
154
UK
EU has target to reach: 5.204 Poland
NL 1.107
 a 20% share of energy from 2.245
Germany Ukraine
27.214 87
renewable sources by 2020 Belgium Czech Rep
911 215 Slovakia
 a 10% share of renewable energy 3
Austria
specifically in the transport sector Switzerland 1.011 Romania
462
 Envisages national support France
5.660
42
Crotia
mechanisms: 89
Bulgaria
375
 investment aid,
 tax incentives Spain
20.676 GR
TR
Portugal 1.329
 green certificates 3.898 1.208
 direct price support schemes
including feed-in tariffs and
premium payments
6 Source: EWEA Wind in Power 2010 European Statistics

7. FEED-IN TARIFF FOR WIND ENERGY IN EUROPE - I
GERMANY WILL APPLY EEG 2012 AS OF JANUARY 2012
GERMANY
Scheme Description
EEG – 2012 Legal Basis: Renewable Energy Sources Act – EEG (adopted 19.03.2000 – revised on
01.08.2004 & 01.01.2009 – to be revised in 01.01.2012)
FIT – based on Duration: 20 years (15 years for large hydro plants) plus start-up year
specific
electricity Caps: No caps as to the amount generated or installed capacity
generation costs On–Shore Scheme:
-plant operator
receives FIT  8,93 € cent/kWh – initial compensation (first 5 years of commissioning)
from the grid  4,87 € cent/kWh – basic compensation applicable after 5 years
operator  System service bonus (0,48 € cent/kWh)
Bonuses Off-Shore Scheme:
 15.00 € cent/kWh – initial compensation (12 years) prolonged
Low-cost loans  0.5 months for each mile > 12 nautical miles
 1.7 months for each meter water depth (ground) > 20 meters
 19 € cent/kWh – optional shrinking model: Initial FIT increases but for a
duration of 8 years
 3.50 € cent/kWh – basic compensation > 12years (20 years) Begin of
commissioning before January 1st, 2018)
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8. FEED-IN TARIFF FOR WIND ENERGY IN EUROPE - II
SPAIN OFFERS TWO ALTERNATIVES FOR THE WIND INVESTORS
SPAIN
Scheme Description
FIT or Legal Basis: Royal Decree 667/2007
Premium on the Duration: Whole project life time
Wholesale
Market Price Caps: No caps as to the amount generated
floor and ceiling
prices On–Shore Scheme:
 ≤ 25 years - 7,7471 € cent/kWh OR reference premium floor – 7,5405; ceiling
8,9866 € cent/kWh
 > 25 years - 6,4746 € cent/kWh
Off-Shore Scheme:
 ONLY Reference premium - 8,918 € cent/kWh ceiling 17,3502 € cent/kWh
8

9. FEED-IN TARIFF FOR WIND ENERGY IN TURKEY
FIT FOR WIND ENERGY INCENTIVE REVITALISED THE SECTOR COUPLED WITH THE DOMESTIC
MANUFACTURING ADDITION
 FIT was introduced in 2005 as a unique tariff $/MWh Price Development
2011 Day Ahead Price , FIT & 2010 Day Ahead Price
btw 5 – 5,5 €cents, applicable for defined 120
renewable energy sources 110
 Implementation Regulation of FIT was not 100
adopted at that time.
 New RES Law was adopted in Dec 2010
90
 It proposes below mentioned FIT at
80
differentiated rates (7,3 10,5 – 13,3 $ cents) 70
for different renewable energy sources. 60
 Implementation Reg. is adopted & Domestic 50
Jan Feb March April May June July Aug
Manufacturing incentive introduced.
FIT Tariff Price Day Ahead System Price 2011 Day Ahead System Price 2010
9

10. EVALUATION OF FIT SCHEME IN TURKEY
Feed-in Tariff:
 Approximately at the same rate with previous incentive
 Investors’ expectations are closer to European levels (i.e. Greece,
Germany, Spain)
 Compared to the average system price in 2010 & 2011 it seems that
there is no visible attractiveness for FIT
Domestic Manufacture Incentive:
 Positive development – additional incentives for 5 years
 Tower and blades can be locally manufactured (thus max.
8.7$cent/kWh.
 Even if there was an investment for locally produced wind turbines by
today, the time frame is too tight for the generation companies to get
benefit from domestic production incentive.
 Unfair competition for projects and plants already in operation or
developed
Currency Difference:
 New FIT stipulates incentives over dollar cent
 Main turbine manufacturers are European-based companies
 Investors are exposed to the euro/dollar parity risks
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11. RECOMMENDATIONS FOR FURTHER INVESTMENTS
SEVERAL HINDERANCES EXIST AGAINST WIND ENERGY INVESTORS
 Incentive System
 FIT still not a real incentive, should be reconsidered in
relation to system prices and be above this reference
price to be regarded as an “incentive”
 Alternatively an incentive scheme should be
considered also by defining system prices
 Legislative
 Indexation of Wind Pennies with inflation by
stagnating, even decreasing electricity prices
 Tenders held for substations, for which there is no
investment budget. Proposal: effective
reimbursement mechanism, when the WEPP investors
need to build the substation
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12. RECOMMENDATIONS FOR FURTHER INVESTMENTS
SEVERAL HINDERANCES EXIST AGAINST WIND ENERGY INVESTORS
 Administrative
 Coordination within MENR needed to solve
overlapping of mining areas with WEPP’s
 Project Financing, Purchasing & Social issues
 Project design should be made to facilitate
international financing which will be a major issue for
the coming years.
 Long term purchasing agreements with turbine
suppliers is important to assure ROI.
 Projects should be developed by taking into account
environmental and social impacts
 Non-investors
 Entrance to the market should be more difficult for
non-investors, protecting real investors.
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13. Thank you…