Photon Energy N.V.: Czech President and Senators betray investors - again

Photon Energy is appalled by the extension of the Czech Solar Levy.

Solar power plant built by Photon Energy in the Czech Republic

Amsterdam (pta010/18.09.2013/10:36 UTC+2) Photon Energy is appalled by the vote in the Czech Senate to extend the retroactive Solar Levy which was followed by the President's confirmation yesterday. The Senate and the President have wasted the last opportunity to restore investors' faith in the country and to avoid further international lawsuits against the Czech Republic.

The Czech president Milos Zeman signed a Bill on 17 September 2013 extending the controversial Levy for the remainder of the applicable Feed-in-Tariff period for PV plants connected in 2010 (about 1,400 MWp affected) at the level of 10% of revenues. The Bill had previously been passed by the Czech Senate on 13 Septembers.

"The Czech Senators could not have chosen a more fitting time to pass the bill than shafting investors on Friday the 13th", says Photon Energy CEO and Co-Founder Georg Hotar. "In terms of investor confidence and financial stability this decision really is like straight out of a horror film", he added.

By rejecting the Bill the Czech Senators failed to avoid hurting investors and to protect their country against further impending lawsuits.

The Bill to extend the Solar Levy had been put forward by a resigning government, which had not been elected by the people and failed to get a vote of confidence from Parliament. It was then adopted by an outgoing parliament, which dissolved after the previous government had been brought down by a corruption and spying scandal. "The Senate, as the upper house of parliament, should be the respected and elder watchdog of the Czech democracy", Photon Energy CEO Georg Hotar explains. "Instead they have opted to come down to the level of the tabloid-style politics of the government and the Lower House of Parliament. Of course we could not have expected the President to veto a Bill brought forward by his puppy government".

Based on the law Photon Energy will have to write down the value of 14.2 MWp of PV plants in the Czech Republic in the portfolio of its fully-owned subsidiary Photon Energy Investments by approximately EUR 5.25 million. Based on energy production performance in 2011 and 2012, the lower Solar Levy would lead to an additional pre-tax cash flow of approximately EUR 1.25 million annually going forward.

Following the extension of the Solar Levy the management board of the Company is intent on protecting its rights and the value of its investment via international arbitration in cooperation with numerous other international investors. In response to the 26% Solar Levy introduced in 2010, two groups of international investors have initiated international arbitration against the Czech Republic based on the Energy Charter Treaty and Bilateral Investment Treaties between their home countries and the Czech Republic.

ABOUT PHOTON ENERGY
Photon Energy NV is a global solar power solutions and services company with six divisions of expertise that together cover the entire lifecycle of solar power systems. The company serves the needs of clients with extensive know-how in project development, investment management, project finance, insurance, technology solutions, EPC and O&M. Photon Energy is headquartered in Amsterdam, Netherlands and has offices in Germany, Australia, Canada, Czech Republic, Slovakia and Italy. For more information please visit www.photonenergy.com.

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