NEW RELEASE - The project proposed by Bizando is characterized by a number of extremely positive factors: - Turnkey approach, by the acquisition of sites up to the plant in operation. - Very streamlined authorization process. - Rates of return on investment of high interest. - Ability to modulate the investment based on the needs of the investor. Bizando proposes a program development framework - focused in the southern regions of Italy - which includes: - Systematic search for suitable sites to be allocated to the installation of small wind turbines of 60KW. - Support for all administrative practices for the acquisition of sites and for obtaining all necessary approvals. - Design and construction of turnkey plants. - Management and operation of the plant for the entire period of its useful life.

1. Small
Wind
Plants
(Minieolico)
Opportunity
for
Investment
in
Italy
November
2013

2. Agenda
§
About
Us
§
Introduction
to
minieolico
(small
wind
plants)
§
The
market
§
The
regulatory
framework
§
The
financial
aspects
§
The
implementation
aspects.
§
Our
proposal
§
Findings

3. About
us
§
Since
2010
Bizando
has
been
active
in
the
renewable
energy
sector
by
supporting
the
production
of
energy
from
sources
which
use
does
not
affect
natural
resources.
§
Bizando
has
actively
participated
in
the
development
of
large
photovoltaic
and
wind
projects
in
different
Italian
regions,
including
Basilicata,
Campania,
Lazio
and
Sardinia
§
Bizando
operates
through
a
network
of
commercial
and
technical
partners
by
offering
personalized
and
comprehensive
services:
§
§
addressing
the
requirements
of
the
projects
satisfying
the
objectives
of
"value
for
money"
imposed
by
the
client
§
Bizando
is
able
to
offer
solutions
"turnkey"
in
the
field
of
renewable
energy,
with
particular
reference
to
the
mini
wind
turbines
and
hybrid
thermodynamic
systems.
§
Bizando
is
also
active
in
other
areas,
such
as
management
consulting
in
telecommunications,
the
supply
of
mass
SMS
mode
'managed
service'
and
the
development
of
apps
for
all
types
of
mobile
devices

4. The
origins
of
the
minieolico
(small
wind
plants)
§
Minieolico
was
born
and
developed
primarily
to
meet
the
electricity
requirements
of
isolated
users
(off-­‐grid).
§
Today
almost
all
of
the
installation
is
oriented
to
the
generation
and
transfer
of
the
generated
energy
into
the
grid.
§
The
development
is
supported
thanks
to
the
specific
incentive
policies
promoted
by
each
country

5. Definitions
§
The
definition
of
minieolico
does
not
follow
a
single
rule
because
it
is
tied
to
a
logic
based
on
the
regulatory
legislation
that
varies
from
country
to
country.
§
Regarding
Italy,
minieolico
plants
are
considered
those
that
have
power
in
a
range
of
20Kw
-­‐
200Kw
and
the
generator
can
be
placed
both
in
horizontal
than
vertical
way.
§
The
lower
limit
coincides
with
the
minimum
investment
threshold
for
structured
finance
operations.

6. Attractiveness
of
the
industry
§
I’s
appropriate
to
consider
that
the
traditional
minieolico
and
the
traditional
wind
power
plants,
have
similar
needs
(even
if
the
second
ones
belong
to
a
field
more
developed
and
mature,
beyond
the
evident
scale
factor)
§
However,
the
developmental
potentialities
of
the
minieolico
are
favored
by
some
peculiar
aspects
that
make
more
affordable
this
type
of
installation
compared
to
those
of
large
power
plants:
§
Simplicity
in
implementation
and
reduced
time
of
delivery
and
installation
§
Lower
investment
values
Reduced
time
for
the
authorization
procedure.
Acceptable
timeframe
for
connections.
Lower
problems
of
saturation
of
the
electrical
capacity
of
the
network.
Increased
availability
of
suitable
sites.
Perception
of
greater
stability
of
the
incentive
scheme.
Better
impact
on
public
opinion
and
public
administrations.
§
§
§
§
§
§

7. Global
wind
market
§
Globally,
wind
power
is
a
mature
and
spread
business
with
an
installed
capacity
of
238GW
in
2011
§
0.4
GW
are
represented
by
the
minieolico
industry,
distributed
mainly
among
China,
the
United
States,
Canada,
Great
Britain
200000
150000
100000
50000
0
179000
166000
42970
15000
USA
Cina
UK
12600
Germania
Canada
7020
Spagna
7000
Polonia
5900
Giappone
Cumulative
Installed
Capacity
(KW)
5030
Italia
1700
Svezia
1040
Corea
del
Sud

8. Forecasts
of
development
for
the
minieolico
The
forecasts
of
minieolico
installed
worldwide
up
to
2020
are
excellent
both
on
an
annual
basis
(industry
studies
provide
at
least
30%
/
year)
than
on
cumulated.

9. The
development
in
Italy
§
In
Italy,
the
installed
capacity
in
2011
was
14MW.
§
In
2012
it
grew
by
50%
to
a
total
of
21MW,
with
less
than
400
installations
§
The
installed
capacity
in
2020
is
estimated
to
1GW.
§
The
presence
of
historical
wind
data
in
the
localities
where
the
great
plants
were
installed
facilitates
the
development
of
minielico
especially
in
the
southern
regions.
(*)
Various
sources,
Legambiente,
Politecnico
di
Milano
Diffusion
of
minieolico
in
Italian
municipalities

10. The
authorization
aspects
§
Regulatory
compliance
is
one
of
the
assessment
criteria
in
financing
transactions
since
a
not
completely
outlined
picture
may
cause
situations
of
potential
administrative
litigation.
§
Article.
12
of
Legislative
Decree
no.
N.
387/2003
and
national
guidelines
in
DM
10/9/2010
state
that
single
interventions
depending
on
the
installed
power
may
be
subject
to
Prior
communication,
Report
of
Home
Activity
(DIA)
or
Single
Authorization
(AU).
§
Wind
power
plants
with
a
capacity
of
no
more
than
60KW
can
be
made
with
the
discipline
of
the
DIA
(today
PAS,
the
simplified
authorization
procedure).

11. The
incentives
§
The
incentive
mechanism
of
the
Ministerial
Decree
of
18/12/2008,
which
is
valid
for
all
systems
that
will
be
entered
into
operation
before
31
December
2012
(with
subsequent
extension
of
four
months
in
2013),
allows
qualified
plants
IAFR,
for
size
from
1
kW
up
to
200
kW,
the
ability
to
access
at
an
"all-­‐
inclusive"fixed
rate
delivered
by
the
Energy
Services
Operator
(GSE),
which
provides
for
15
years
€
300
/
MWh,
provided
that
there
is
a
total
sale
of
energy
produced.
§
The
Implementing
Decrees,
the
so-­‐called
Romani
Decree
published
in
July
2012,
introduce
a
new
pricing
system
for
plants
that
will
come
into
service
after
December
31,
2012
and
after
the
transitional
period
of
4
months.
§
Specifically,
there
is
a
incentive
tariff
basis,
for
20
years
of
useful
life
of
the
plants,
amounting
to
291
€
/
MWh
for
power
up
to
20
kW
and
268
€
/
MWh
for
power
between
20
and
200
kW.

12. Turnkey
Project
§
We
are
able
to
offer
an
investment
characterized
by:
§
”Turnkey”
approach
§
Payment
methods
based
on
the
phases
of
the
development
(progressive
"development
fee")
§
We
performed
a
thorough
scouting
for
lands
and
for
turbines
§
For
economic
evaluations,
our
reference
turbine
was
considered;
at
the
same
time
we
are
open
to
consider
alternative
scenarios,
with
other
turbines
selected
by
us
or
chosen
by
the
investor.

13. The
turbine
(60KW)
§
Truly
innovative
project
based
on
a
highly
efficient
generator
with
unique
patent
that
allows
you
to
minimize
the
size
of
the
system
in
general:
§
§
§
Hub
height:
25.33
mt.
Tower
with
hydraulic
scrubber
Rotor
diameter:
14.4
mt.
§
Chinese
manufacturing
with
German
(Siemens
PLC)
and
Swedish
/
Japanese
(SKF
/
NKS)
components
§
Inverter
Power
One
of
the
latest
generation
§
Annual
energy
production:
§
§
169MWh
at
6.0
m
/
s
211MWh
at
6.5
m
/
s

14. Capex
&
Opex
Capex:
§
§
§
Turnkey
Plant
Cost:
Enel
Connection:
Land
acquisition:
Total:
210K€
5K€
30K€
~245K€
Opex
:
§
§
§
Maintenance
Insurance
General
and
administrative
expenses
Total:
~2K€/year

15. Annual
revenues*
§
Value
of
annual
electricity
production:
169MWh
§
Comprehensive
rate
as
incentive
system:
€
262,64€/
MWh**
§
Value
of
annual
electricity
sales:
0,26264€
X
169MWh
=
44,4K€
(*)
Conservative
assumptions,
with
average
wind
at
6m
/
s
(**)
Updated
with
2014
values

16. Costs
/
Revenue
Analysis
x
20
years*
§
Capital
employed:
€
245K
§
Values
of
annual
electricity
sales:
€
44.4
K
§
Annual
operating
costs:
€
2K
§
Gross
income:
42.4K€
§
ISTAT
adjustment:
2%
§
PBP:
6
Years
§
TIR:
~
15%
(*)
Conservative
assumptions,
with
average
wind
at
6m
/
s

17. BP
(6m/s)
Years
kWh
/
year
GSE
Revenues
Costs
(Maintenance
and
Insurance)
Net
Revenues
Cumulated
flows

18. Costs
/
Revenue
Analysis
x
20
years
(wind:
6.5
m/s)
§
Capital
employed:
€
245K
§
Values
of
annual
electricity
sales:
€
55.4K
§
Annual
operating
costs:
€
2K
§
Gross
income:
53.4K€
§
ISTAT
adjustment:
2%
§
PBP:
5
Years
§
TIR:
~
19%

19. BP
(6,5m/s)
Years
kWh
/
year
GSE
Revenues
Costs
(Maintenance
and
Insurance)
Net
Revenues
Cumulated
flows

20. Phases
of
work
(indicative)
Project
Development
Site
Autorization
Production
Project
Construction
Installation
• Identification
• Technical
• Preparation
of
• Realization
of
of
the
site
documentation
project
the
plinth
documentation
support.
• Letter
of
intent
for
the
by
the
owners
connection
• Realization
of
of
the
land
• Application
on
the
related
works.
• Site
report
&
the
portal
feasibility
study
"Manufacturers
• Delivery
of
the
turbine
to
the
• Business
plan
Enel"
• Quotation
for
port.
the
connection
Constitution
to
Enel
of
vehicle
company
• Turbine
installation
at
the
site.
• Testing
• Documents
of
compliance.
GSE
• Administrative
practice
with
Operations
the
GSE.
&
• Manual
for
Maintenance
operation
and
maintenance
of
the
turbine.

21. The
timing
of
completion
(indicative)
Month
1
Month
2
Month
3
STMG
Project
Month
5
Month
6
about
180
days
Overall
Site
Month
4
20
35*
45
Construction
Installation
GSE
(*)
Net
of
timing
for
contracting
between
Customer
and
Owner
of
the
land
70
5
10

22. Our
proposal
§
Bizando
proposes
a
program
development
framework
-­‐
focused
in
the
southern
regions
of
Italy
-­‐
which
includes:
§
Systematic
search
for
suitable
sites
to
be
allocated
to
the
installation
of
small
wind
turbines
of
60KW.
§
Support
for
all
administrative
practices
for
the
acquisition
of
sites
and
for
obtaining
all
necessary
approvals.
§
Design
and
construction
of
turnkey
plants.
§
Management
and
operation
of
the
plant
for
the
entire
period
of
its
useful
life.

23. Findings
The
project
proposed
by
Bizando
is
characterized
by
a
number
of
extremely
positive
factors:
§
Turnkey
approach,
by
the
acquisition
of
sites
up
to
the
plant
in
operation.
§
Very
streamlined
authorization
process.
§
Rates
of
return
on
investment
of
high
interest.
§
Ability
to
modulate
the
investment
based
on
the
needs
of
the
investor.

24. Contacts
info@bizando.com
This
document
is
only
a
general
overview
of
the
subject
treated
in
it.
In
no
way
is
meant
complete,
especially
without
adequate
technical
explanation
and
necessary
deepening.