Andrew Cullen

Head Renewable Energy ROI

Bank of Ireland Business Banking

Green Economy Expo 2010

Growing Renewable Energy in Ireland…

A Lender’s Perspective

3The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

• Current Irish Electricity Fuel Sources

• Renewable Energy Generation Targets

• Roll Out of Wind Generation in Ireland

• Windfarm development in Ireland

• Financing Renewable Energy Projects

• BOI Renewable Energy Fund

• BOI & Project Finance

• BOI Experience

Presentation Overview

The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

4The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Current Irish Electricity Fuel Sources

*Indicative, based on provisional data from TSO and SEMO/Analysis Eirgrid

5The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Renewable Energy Generation Targets

14% Renewable Energy Generation Target by 2010

40% Renewable Energy Generation Target by 2020

6The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Rollout of Wind Generation in Ireland

• Connected (Gate 1 & 2) 1,260 MW - operational• Contracted (Gate 2) 1,360 MW - development• Gate 3 3,990 MW - development=> Approved Capacity 6,610 MW

• In Queue 11,000 MW

• National annualised peak usage circa 5,000 MW

Source: Eirgrid

7The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Windfarm Development in Ireland

8The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Financing RenewableEnergy Projects

Two specific types of debt finance:

1) Recourse Finance – standard debt finance, Bank seeks security and repayment capacity that is independent of the proposed project.

2) Non-recourse Finance – project specific debt finance, Bank ring fences a project’s assets and associated cashflows in order to service the debt finance.

9The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Bank of Ireland – Renewable Energy Fund

• Dedicated €200m Fund• Launched March 2009• Irish based Renewable Energy Projects• New or Expanding Projects• Area of significant growth potential• Fund – focus primarily on small to medium sized deals

…. very much “open for business” for larger deals too

10The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Bank of Ireland & Project Finance

The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Energy,Waste and Renewables Trends in Bank of Ireland Portfolio (€'m)

-

200

400

600

2004 2006 2008

Waste & Water

Renewables

Power Generation

11The Governor and Company of the Bank of Ireland is regulated by the Financial Regulator in Ireland. A member of Bank of Ireland Group.

Bank of Ireland – Experience

A Leading Financier in

• Irish Wind Farm transactions

• UK Waste Management transactions

• European Renewable Energy

• A highly experienced team of 40 professionals based in Dublin, London,

New York, Sydney

• High quality structuring and arranging capability – support timely and

successful completion of projects

• Key growth area for the Bank – long term commitment to the market