I. Introduction, general information

The business project “Polskie Elektrownie Słoneczne” (Polish Solar Parks) is a joint-stock company prepared for two years by the initiators of this enterprise which consists in the development of investment projects for the construction and operation of photovoltaic power stations (solar parks) with a power of maximum 1 MW for the generation of electrical energy and the sale of the generated energy to the power grid, or the sale of ready projects to industrial/capital investors from the domestic market or abroad, for example from Germany, Great Britain or Portugal. The joint-stock company Polskie Elektrownie Słoneczne in Szczecin, al. Wojska Polskiego 99, was registered by the District Court Szczecin-Centrum in Szczecin, Commercial Department XIII of the National Court Register (KRS), under number KRS 0000588052, with the VAT-ID (NIP) 8522617407 and the statistical number (REGON) 363070019 on 25.11.2015. The business project began with the acquisition of five ready projects for photovoltaic power stations with a capacity of up to 1 MW located in Poddębice county in the Łódź voivodeship.
In December 2015, Polskie Elektrownie Słoneczne S.A. concluded a “Project development agreement” based on which the company acquired the right of first refusal for 8 PV projects in Poland, for which the developer has already obtained the legal title and presented an audit concerning the location conditions for photovoltaic power stations. The acquisition of another 14-18 projects is currently under negotiation.

CEO – Jacek Sych Deputy

Efficient manager with over twenty years experience in operational, projects and investment management in the
fields of power engineering services for the industry, renewable energy sources and broadband telecommunications networks. He specializes in the preparation and realization of investment projects and business process optimization.

He gathered his professional experience as regional technical director for the international corporation UPC Polska, as operational managing director of the telecommunications company Sat Mont Service, as CEO of a power engineering company of the Azoty Group with over 250 employees, as project development manager and consultant for photovoltaic power station investments, as project manager in a team for business process optimization in the field of technical infrastructure of PKP Polish State Railways. He graduated from the Faculty of Electrical Engineering of the Polytechnic University of Szczecin, with a specialization in the conversion and utilization of electrical energy. He completed a series of courses and trainings in project and business management.

Deputy CEO – Marek Śliwa

Successes in the development of investment projects and B2B transactions. Capable and efficient sales and project teams manager. Almost twenty years experience in the development of product markets as well as business
and commercial relations.

He gathered his professional experience with Saint-Gobain Construction Products, Baumit and STO, where he was responsible for market development, cooperation and investment coordination. He supported and developed projects for the improvement of energy efficiency with the use of renewable energy sources in cooperation with a manufacturer of photovoltaic panels and technology suppliers.
He graduated from the Faculty of Management and Economics of Services
of Szczecin University. He completed a series of courses and trainings
in marketing, sales, negotiation and product management.

III. Plans for business activity development and capital formation
In the years 2016 – 2017, the entrepreneurs will concentrate their activities on the development of ready projects and the acquisition of further locations in order to enlarge the investment portfolio by another 35 to 50 projects for photovoltaic power stations with a capacity of up to 1 MW and the achievement of the development stage, i.e. the procurement of the legal title for the location, the environmental decisions, the construction conditions, the grid connection agreements and the building permits.
In terms of capital formation the company plans to enter the NewConnect stock exchange (alternative trading system) in order to obtain an additional 1,400,000 PLN for the realization of the project. This takes place in close cooperation with the law office “Zarzecki, Lasota i Wspólnicy” Sp. z o.o. – an authorized NewConnect consultant.
The project benefits from considerable public funds, including EU funds, available for the realization of this type of projects. In view of the fact that by 2020 Poland is to achieve a 15% share of renewable energy sources in the final energy consumption, including electrical energy from RES, the Polish legal system, upon passing the Renewable Energy Sources Act of 20 February 2015, has approached the relevant standards applicable in other EU countries and has the chance to consolidate the position of Poland as a country with favourable conditions for investing in this industry.
Recently, in particular after passing the RES Act, the perspectives of power generation with photovoltaic systems were emphasized and perceived, among others, by investors such as the RWE AG.
The share of RES in Polish power engineering is steadily growing, mainly thanks to wind energy. Another significant RES technology which recorded a dynamic increase of the share in the generation and production capacities in Europe are photovoltaics. Despite solar conditions similar to Germany and better than in England, for example, Poland is still behind Europe concerning the shareof photovoltaic technologies in the energy mix.
In Poland, only just under 1W of power per inhabitant comes from photovoltaic plants, compared to an EU average of 170 W and to almost 500 W per person in the leading country with regard to the development of this technology, namely Germany, which means that the market potential is very high.

IV. Legal and financial factors

Primary relevant legal acts and documents:
– Energy Law of 10 April 1997 – Journal of Laws 1997 no. 54 item 348
– Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources
– Polish Energy Policy until 2030 – Ministry of Economy 2009
– Polish Energy Policy until 2050 – Ministry of Economy 2014
– Renewable Energy Sources Act of 20 February 2015 – Journal of Laws 2015 of 3.04 ., item 348*

* The act introduced an auction mechanism based on tariffs guaranteed for 15 years for producers who offer the lowest price for energy from RES. The auction system is meant by the legislator to replace the previous RES support system based on the obligation of energy suppliers to purchase energy from RES and green certificates. The act provides for 25 percent of renewable energy to come from plants with a capacity of up to 1 MW.
According to the legislator, this is to guarantee that their owners will not lose against larger producers with lower production costs. In the execution of the act* on 13 November 2015, the Minister of Economy issued a directive concerning the reference price for electrical energy from renewable energy sources in 2016 (Journal of Laws from 8 December 2015, item 2063). For photovoltaic power stations with a total installed power of maximum 1 MW,
the reference price for the purchase of energy in the guaranteed 15-year period is set at 465 PLN/MWh.
The section above 1 MW of installed generating capacity is dominated by wind turbine generators which are decidedly less strongly represented in the range of up to 1 MW. Therefore, photovoltaic power station projects are decidedly less competitive in the generating power section above 1 MW.

V. Why photovoltaic power stations with up to 1 MW ?
1. The power of a generation source with up to 1 MW is relatively easily absorbed by the 15 kV grid of the distribution grid operator. The 15 kV medium voltage ‘MV’ grids are the main distribution grids in the Polish power system and distribute the power from the substations to towns, between towns and to larger consumers. In view of the above aspects, including also the relatively high density of the 15 kV grids, sources with a power of up to 1 MW provide a better chance (probability) of obtaining grid connection conditions and agreements from the distribution grid
operator.
2. The auctions will be held separately for objects with an installed power of up to 1 MW and with an installed power of over 1 MW. The act assumes that at least 25% of the electrical energy from renewable energy sources sold by auction should be generated in RES plants with a total installed power of up to 1 MW. The investment costs and, consequently, the energy generation price for plants with up to 1 MW preserve a similar structure and proportions, which ensures the maintenance of realistic price competition conditions during the auctions.

3. For photovoltaic power stations with a capacity of up to 1 MW, the procedures for obtaining approvals and building permits is comparatively faster than for other RES projects. If no environmental impact assessment is required, the building permit can be obtained within 21 months, assuming maximum duration for all processes. For wind farms, the whole process takes at least about 5 years and often 7-8 years.
4. The construction and operation of photovoltaic power stations have no impact on the environment, nor do they affect or change the immediate surroundings and scenic assets.
5. If it becomes necessary to terminate a project in the approval phase, for example because of a negative decision, the costs are incomparably lower(than in the case of wind farms).

VI. General information about the power station projects

1. The investment projects are planned in central Poland, in Poddębice county in the Łódź voivodeship.
2. The planned photovoltaic power stations are located in three neighbouring municipalities, Poddębice, Wartkowice and Dalików, in the villages Bronów, Nowa Wieś, Sworawa, Tarnowa and Krzemieniew, all within a radius of 7 km.
3. The legal title to the properties concerned by the investments, including the necessary easements, has been obtained based on 25- to 27-year lease agreements. The rights of the lessee, PSE S.A., were entered in the land register.
4. For each location an agreement was concluded with PGE Dystrybucja S.A. for the connection of a photovoltaic power plant with a capacity of up to 0.999 MW to the 15 kV grid.
5. Final and binding building permits have been obtained.
6. The fact that the power plants are located close to each other will translate into lower operation costs during the operating phase.
7. The projects are ready for realization upon obtaining the financing.

VIII. Proposals for investors

 Investment in the dynamically developing market of Renewable Energy Sources in the EU perspective 2016 – 2050.
 Acquisition of privileged shares in the company before the planned entry of the NewConnect stock exchange of companies active mainly in the so-called New Technologies sectors: IT, electronic media, biotechnology, renewable alternative energy sources.
 Possibility to have a seat in the supervisory board of the company in case of a larger investment.
 Investment with a high growth perspective for the next 2 years, in view of the investment in the company shares at the present stage and their anticipated value in 2017, i.e. after the first auctions organized by the chairman of the Polish Energy Regulatory Office (URE).
 The plan to enter the NewConnect stock exchange leaves the investor free to decide to “withdraw from the investment and realize the profits” in the short or long term, without requiring a consent from other shareholders.
 The company, as the “know-how investor”, develops business projects in which private investors can participate.
 Growing interest in the Polish market on the part of important players and RES developers from other European markets.
 Possibility to invest in shares promising above-average profits. Anxious and impatient investors will soon witness inevitable changes on the conservative Polish energy market subject to the growing competitive pressure in the sector of RES and proven modern market models supported by technological progress. The impulse of the change of the current conservative market with its conventional technologies has a great chance to generate significant demand for the offered projects.