Greek-Spanish Consortium Alpha Grissin and Preneal to develop wind farm in Bulgaria

ALPHA GRISSIN POWER AND ENVIRONMENTAL CONTROL SYSTEMS S.A., trading as ALPHA GRISSIN SA, informs investors that, a total area of 842, 4 hectares in the region of Karnobat in Central Bulgaria, was granted for a 30-year concession to the Consortium, in which ALPHA GRISSIN SA holds 40% and the Spanish company PRENEAL INTERNACIONAL SA 60%, in order to develop and operate a wind park of 111 MW.

The contract of the concession was signed on September 26, 2009, by the Mayor of the town of Karnobat and the representatives of the consortium, Mr. D.Parthenis and Mr. A. Sanchez, during an event where dignitaries, such as members of the Bulgarian parliament, the head of prefecture of Bourgas and the Greek ambassador Mrs Koumanakou. The event was covered by a large number of press and TV reporters due to the will of Bulgaria´s government for rapid development of Renewable Energy Source (RES) projects.

The Consortium ALPHA GRISSIN/PRENEAL was chosen among three powerful ventures, as the one satisfying all technical and financial criteria. The company PRENEAL INTERNACIONAL SA has a significant experience in development and operation of wind parks all over the world. PRENEAL is already operating 13 wind parks of 330 MW total power, while it participates in the development of projects of 2.590 MW of wind energy, both in Spain and globally. DEUTSCHE BANK AG participates in PRENEAL INTERNACIONAL´s shareholders´ capital.

The Consortium is already in process of receiving all necessary licenses, expected to be issued within 2009, for the production of a 111 MW wind park. The total investment is expected to reach euro 155 million.

ALPHA GRISSIN group has, since 2008, submitted 6 applications for wind parks of 150 MW total wind power, in Peloponnesus, Greece, through a joint-venture with DEUTSCHE BANK AG. Production licenses are being expected soon.

ALPHA GRISSIN SA´s management is in further discussions for the development of other Renewable Energy Source (RES) projects(such as photovoltaic systems) in Bulgaria and at the same time is seeking, continuously, for new investment opportunities in the sector of Renewable Energy Source (RES) in Greece, as well as abroad.

Preneal Group

“Wind energy is the ideal venture for the creation of regional wealth. Partnering with landowners, local residents, municipalities and regional governments is fundamental to our way of developing constructive business interests.” – Eduardo Merigó González, Chairman, PRENEAL Group

A family-owned and independently-operated business, PRENEAL, founded in 1996, is an international leader in the production of renewable energy. We develop, build and operate wind farms on a long-term basis, in collaboration with community, private and institutional partners. PRENEAL also invests in solar energy and is actively exploring tidal power, wave energy and energy storage research.

Our head office is located in Madrid. In Spain, we have built and operate wind farms in the northern region of Soria and in the province of Aragón, with a total electrical generating capacity of 440 Mw. An additional 670 Mw are currently under different stages of financing, construction and development in various provinces including Castilla y León.

PRENEAL is the main and reference shareholder of EOLIA RENOVABLES, the fourth-largest renewable energy developer in Spain, with a portfolio of 1400 Mw, of which 257 are in operation, 365 in construction and the rest in various stages of development.

The international activities of PRENEAL are grouped under PRENEAL Internacional S.A., in which Deutsche Bank Investment Banking, one of the largest German banks, has a 10% share.

Canada 800 MW in development
Spain 440 MW in operation
340 MW under construction or awaiting line connection
330 MW in development
Mexico 400 MW under construction or awaiting line connection
120 MW in development
Bulgaria 100 MW in development
Croatia 80 MW in development
Greece 200 MW in development
Hungary 100 MW in development

PRENEAL’s international subsidiaries have projects in various stages of development, financing and construction for a total of over 1500 MW.

Bulgaria is aiming to develop a potent wind energy infrastructure as the country is trying to comply with the designated EU strategy target that 20 per cent of all energy should come from renewable sources by 2020.

Bulgaria currently has 158 MW and is set to double that capacity when AES Corp. begins commercial operation on its 156 MW wind farm in Bulgarevo, near Kavarna in northeastern Bulgaria, in autumn 2009. Only Poland, with 472MW, has a larger wind energy capacity among the EU’s eastern member states, although eastern European countries are still lagging considerably behind their western counterparts.