This document discusses conditions for successful clean energy projects from an investor's perspective. It outlines key drivers of investment in clean technologies, including climate change, costs, competition, and growing global energy demand. While clean tech is an expanding sector, Ukraine faces challenges in attracting investment due to its ranking low on ease of doing business and political/economic stability risks. However, the document argues Ukraine has strengths like scientific capabilities, proximity to Europe, and potential in agriculture and forestry that could be leveraged with the right government policies to encourage green tech investment and the development of success stories.

1. Bohdan Kupych,
VP Business Development KMCore
CLEAN ENERGY PROJECTS
Conditions for Success
From an Investor Perspective

2. Google Search Results: Clean Technology: 32,900,000
Green Technology: 78,600,000
Clean Tech covers hundreds of related and non-related
products and services:
Solar
Wind Power
Biofuels
Biomaterials
Energy storage, fuel cells
Hydro, tidal, geothermal
Nanotechnology
…

3. What is Driving the
need for efficient use
of resources “6 C’s”
 Climate
 Costs
 Capital
 Competition
 Consumers
 “China”
 Transportation
 Agriculture
 Electricity
 Clean water
 Clean materials
 Manufacturing
 Construction
 Waste Management

4. Driven by effects of
climate change and
increased demand

5. Green is Just
Starting

6. Consumption
continues to Grow

7. Growing economies and
higher standards of living
require more energy
All countries want a
higher standard of living
The United States has
long been the world’s
largest consumer of
energy, but recently
China has surpassed the
US.
USA 4.5% population
uses 25% of global
energy

8. Energy is the
lifeblood of any
economy
The International Energy
Agency (IEA) projects
that by 2030 oil, gas,
and coal will still
provide more than 85%
of China’s energy

9. As Confucius is reputed to have said:
“If a man take no thought about what is
distant, he will find sorrow near at
hand.”
Energy sources take many years to
develop – they cannot simply be turned
“on” like a light switch.
Large Energy projects take many years
and huge capital investments

10. ROI for large infrastructure projects can take 7-10+ years
It’s a paradox that energy saving technologies such as solar
take a lot of energy to produce (polysilicon for solar)

11. Global Venture Capital has experienced significant growth since 2005.
Venture capital drives the innovation in green tech. Venture capital is
concentrated in US and Western Europe

12. What will Ukraine’s place be in this projected growth?

13. Attracting
Investment in
Green Tech
There are 196 countries
in the world competing
for investment in green-
tech projects
Investment flows to
countries with a
favorable investment
climate and where
conditions for
investment are good

14. 2011 World Bank
Report Ukraine:
"Ease of Doing
Business" rank 145
(out of 183)

15. Beyond creating favorable
conditions (economic
stimulus) for investment …
Government necessity &
private sector
entrepreneurship…
.. must lead to success
stories to pass the “Wall
Street Journal test”

16. Shimov Peres speech at Yalta
Economic Summit:
“Science is the Reserve for
Global Development”
Recognition by Israel that through science monumental
problems can be overcome:
Israel is small country in the desert (15X smaller than UA)
No water only two lakes – one dead and one dying
“Israel sells carrots to Russia and flowers to France”

17. Capitalizing on Ukraine’s strengths:
 Abundant Agricultural capacity
 Forestry Capacity
 Legacy of R&D
 Scientific and technical acumen
 Educational and research institutes
 Proximity to EU
 Capacity for reduction of energy
consumption

18. Green Tech Project Risks in Ukraine
 Reputational
 Political Stability
 Economic Stability
 Regulatory Environmental Support
 Tarrifs and Subsidies
 Understandable, Equitable Rules
 Competitive Tender
 Legal Protection
 Ease of Doing Business

19. Summary
 Ukraine presents great potential for
green tech investment
 Investors remain weary due to country
specific risks
 Ukraine has excellent, underutilized
scientific capabilities
 Ukrainian government plays an
important role in creating good
conditions for investment

20. KMCore is a technology Investment Company
based in Kyiv, Ukraine
Our portfolio includes datacenter, IT,
Software, Semiconductor, internet, biofuel
and solar in Ukraine, Russia, USA and Israel

21. Thank You
Bohdan Kupych
VP Business Development
KMCore
www.kmcore.com