parque eÓlico valcaire, s.l.parque eÓlico valcaire, s.l. was incorporated on 13 march 2003, as...

PARQUE EÓLICO VALCAIRE, S.L. Abridged Financial Statements for the year ended 31 December 2011

PARQUE EÓLICO VALCAIRE, S.L.

ABRIDGED BALANCE SHEET AT 31 DECEMBER 2011 AND 2010

Euros

A S S E T S 2011 2010

NON-CURRENT ASSETS 1,731,859 1,554,822

Property, plant and equipment (Note 5) 1,688,059 1,502,622 Investments in Group companies and associates 43,800 52,200

. Net Investments in associates (Note 6) 43,800 52,200

CURRENT ASSETS 167,787 408,251

Trade and other receivables 44,333 96,410

. Sundry accounts receivable 1,930 1,930

. Other accounts receivable from public authorities (Note 9) 42,403 94,480

Current financial investments 76,604 76,604

. Other financial assets 76,604 76,604

Cash and cash equivalents 46,850 235,237

TOTAL ASSETS 1,899,646 1,963,073

Euros

E Q U I T Y A N D L I A B I L I T I E S 2011 2010

EQUITY 302,585 302,585

Shareholders' equity 302,585 302,585 . Capital (Note 8) 305,000 305,000

. Previous years’ earning (2,415) (2,415)

. Profit/(Loss) for the year - -

NON-CURRENT LIABILITIES 1,507,833 1,412,118

Non-current payables to Group companies and associates (Note 7) 1,507,833 1,412,118

CURRENT LIABILITIES 89,228 248,370

Current payables to Group companies and associates 2,305 42,945

. Current payables to Group companies (Note 7) 2,305 42,945

Trade and other payables 86,923 205,425 . Payable to Group company suppliers 628 26

. Sundry accounts payable 86,201 205,308

. Other accounts payable to public authorities (Note 9) 94 91 TOTAL EQUITY AND LIABILITIES 1,899,646 1,963,073

The accompanying Notes are an integral part of the abridged balance sheet at 31 December 2011.


ABRIDGED INCOME STATEMENTS FOR THE YEARS ENDED 31 D ECEMBER 2011 AND 2010

Euros

2011 2010

CONTINUING OPERATIONS

Capitalized expenses of in -house work on assets 95,781 229,541

Procurements (28,297) (135,691)

Other operating expenses (67,484) (93,850)

OPERATING INCOME - -

Finance income 13 33

Borrowing costs capitalized on assets 89,656 51,705

Finance costs (89,670) (51,738)

FINANCIAL RESULTS - -

PROFIT/(LOSS) BEFORE TAX - -

Income tax - -

PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING - -

OPERATIONS

PROFIT/(LOSS) FOR THE PERIOD - -

The accompanying Notes are an integral part of the abridged income statement for 2011.


ABRIDGED STATEMENTS OF CHANGES IN EQUITY FOR THE YE ARS ENDED 31 DECEMBER 2011 AND 2010 A) ABRIDGED STATEMENTS OF RECOGNISED INCOME AND EXP ENSE FOR 2011 AND 2010

Euros

2011 2010

A) PROFIT/(LOSS) PER INCOME STATEMENT - -

INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY

B) TOTAL INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY - -

TRANSFERS TO PROFIT OR LOSS

C) TOTAL TRANSFERS TO PROFIT OR LOSS - -

TOTAL RECOGNISED INCOME AND EXPENSE - - The accompanying Notes are an integral part of the abridged income statement for 2011.

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Notes to the abridged financial statements for the year ended 31 December 2011

1. Company activities

PARQUE EÓLICO VALCAIRE, S.L. was incorporated on 13 March 2003, as recorded in a public deed executed before Madrid notary Mr. Martín María Recarte Casanova under number 994 of his notary record registered in the Mercantile Registry of Granada in volume 1,070, page 58, section 8, sheet M-23,280. The Company's current registered office is at calle Ayuntamiento, nº 7, 18640 Padul (Granada). The Company's object is specified in article 2 of its Bylaws as follows: "evaluation, development, construction and/or ownership of power generation facilities, and particularly wind power, subsequent compliance with the special administrative processes and requirements which may be legally enforceable. On 22 December 2011, as recorded in a public deed executed before Madrid notary Mr. Ignacio Gil-Antuñano Vizcaino under number 5,830 of his notary record registered in the Mercantile Registry of Madrid, Sinergía Andaluza, S.L. sold the 137,250 shares which it owned to Urbaenergía, S.L. The Company does not have any staff and, therefore, it will enter into an operations and maintenance agreement for the wind farm.

2. Basis of presentation of the financial statements

2.1) Regulatory financial reporting framework appli cable to the Company

These abridged financial statements were prepared by the directors in accordance with the regulatory financial reporting framework applicable to the Company, which consists of:

a) The Spanish Commercial Code and all other Spanish corporate law. b) The Spanish National Chart of Accounts approved by Royal Decree 1514/2007 and its industry

adaptations. c) The mandatory rules approved by the Spanish Accounting and Audit Institute in order to implement the

Spanish National Chart of Accounts and its supplementary rules. d) All other applicable Spanish accounting legislation.

2.2) Fair presentation

The accompanying abridged financial statements, which were obtained from the accounting records of PARQUE EÓLICO VALCAIRE, S.L., are presented in accordance with the regulatory financial reporting framework applicable to the Company and, in particular, with the accounting principles and rules contained therein and, accordingly, present fairly the Company’s equity, financial position, results of operations. The abridged financial statements at 31 December 2011, which were formally prepared by the Company's director, will be submitted for approval by the shareholders at the General Meeting, and it is considered that they will be approved without any changes. The financial statements for 2010 were approved by the shareholders at the Annual General Meeting held on 30 June 2011. 2.3) Accounting policies The principal accounting policies and measurement bases applied in preparing the Company's abridged financial statements for 2011 are summarised in Note 4. All obligatory accounting principles with a significant effect on the financial statements were applied in their preparation.

2.4) Key issues in relation to the measurement and estimation of uncertainty In preparing the accompanying financial statements estimates were made by the Company's director in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These estimates relate basically to the following: - The useful life of the property, plant and equipment and intangible assets (see Notes 4.1 and 4.2). - The assessment of possible impairment losses on certain assets (Note 4.1). - The fair value of certain financial instruments (Note 4.4). Although these estimates were made on the basis of the best information available at the date of preparation of these financial statements on the events analysed, events that take place in the future might make it necessary to change these estimates in coming years. Changes in accounting estimates would be applied prospectively, recognising the effects of the change in estimates in the financial statements. 2.5) Comparative information

On 24 September 2010, Royal Decree 1159/2010, of 17 September, introducing certain amendments to the Spanish National Chart of Accounts approved by Royal Decree 1514/2007, was published in the Official State Gazette. In accordance with the transition rules established, these amendments were applied prospectively from 1 January 2010, with no material impact. 2.6) Grouping of items

Certain items in the abridged balance sheet, abridged income statement and abridged statement of changes in equity are grouped together to facilitate their understanding; however, whenever the amounts involved are material, the information is broken down in the related notes to the abridged financial statements. 2.7) Changes in accounting policies

In 2011 there were no significant changes in accounting policies with respect to the policies applied in 2010.

2.8) Correction of errors

In the preparation of the accompanying abridged financial statements no significant errors were detected that would have made it necessary to restate the amounts included in the abridged financial statements for 2010.

3. Distribution of profit/(losses)

The balance of the results at 31 December 2011 in the income statement was zero euros. 4. Accounting Policies

The principal measurement bases used by PARQUE EÓLICO VALCAIRE, S.L. in preparing its abridged financial statements for 2011, in accordance with the Spanish National Chart of Accounts, were as follows:

4.1) Intangible assets As a general rule, intangible assets are recognised initially at acquisition or production cost. They are subsequently measured at cost less any accumulated amortisation and any accumulated impairment losses. These assets are amortised over their years of useful life. a) Research and development expenditure

The Company recognises research expenditure as an expense in the year in which it is incurred. Development expenditure is capitalised if the following conditions are met:

- It is specifically itemised by project and the related costs can be clearly identified. - There are sound reasons to foresee the technical success and economic and commercial

profitability of the related projects.

Assets thus generated are amortised on a straight-line basis over their years of useful life (over a maximum period of five years). If there are doubts as to the technical success or economic profitability of the related project, the amounts capitalised are recognised directly in profit or loss. b) Intellectual property

“Intellectual Property” is charged for the amounts paid for the acquisition of title to or the right to use the related items, or for the expenses incurred in registration of the rights developed by the Company.

c) Computer software

“Computer software” includes mainly the amount paid for title to or the right to use computer programs, including those developed in-house. These intangible assets are amortised on a straight-line basis over three years from the date of purchase. Impairment of intangible assets and property, plant and equipment At the end of each year, the Company performs an impairment test to determine the possible existence of impairment loss that might have reduced the recoverable amount of the assets to below their carrying amount. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income immediately. 4.2) Property, plant and equipment

Property, plant and equipment are initially recognised at acquisition cost and are subsequently reduced by the related accumulated depreciation and by any impairment losses recognised, as indicated in Note 4.1. Property, plant and equipment upkeep and maintenance expenses are recognised in the income statement for the year in which they are incurred. However, the costs of improvements leading to increased capacity or efficiency or to a lengthening of the useful lives of the assets are capitalised. For non-current assets that necessarily take a period of more than twelve months to get ready for their intended use, the capitalised costs include such borrowing costs as might have been incurred before the assets are ready for their intended use and which have been charged by the supplier or relate to loans or other borrowings directly attributable to the acquisition or production of the assets.

Capitalized expenses of in -house work on assets are measured at accumulated cost (external costs plus in-house costs, determined on the basis of in-house materials consumption, labour and general manufacturing costs calculated using absorption rates similar to those used for the measurement of inventories). 4.3) Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. All other leases are classified as operating leases. 4.4) Financial instruments 4.4.1) Financial assets

In the case of equity investments in Group companies affording control over the subsidiary, since 1 January 2010 the fees paid to legal advisors or other professionals relating to the acquisition of the investment have been recognised directly in profit or loss. The financial assets held by the Company are classified in the following categories:

a) Loans and receivables: financial assets arising from the sale of goods or the rendering of services in the ordinary course of the Company's business, or financial assets which, not having commercial substance, are not equity instruments or derivatives, have fixed or determinable payments and are not traded in an active market.

b) Held-to-maturity investments: debt securities with fixed maturity and determinable payments that are

traded in an active market and which the Company has the positive intention and ability to hold to the date of maturity.

c) Held-for-trading financial assets: assets acquired with the intention of selling them in the near term

and assets that form part of a portfolio for which there is evidence of a recent actual pattern of short-term profit-taking. This category also includes financial derivatives that are not financial guarantees (e.g. suretyships) and that have not been designated as hedging instruments.

d) Equity investments in Group companies, associates and jointly controlled entities: Group companies

are deemed to be those related to the Company as a result of a relationship of control and associates are companies over which the Company exercises significant influence. Jointly controlled entities include companies over which, by virtue of an agreement, the Company exercises joint control with one or more other venturers.

Financial assets are initially recognised at the fair value of the consideration given, plus any directly attributable transaction costs. Loans and receivables and held-to-maturity investments are measured at amortised cost. Held-for-trading financial assets and those classified as at fair value through profit or loss are measured at fair value and the gains and losses arising from changes in fair value are recognised in the net profit or loss for the year.

Investments in Group companies and associates and interests in jointly controlled entities are measured at cost net, where appropriate, of any accumulated impairment losses. These losses are calculated as the difference between the carrying amount of the investments and their recoverable amount. Recoverable amount is the higher of fair value less costs to sell and the present value of the future cash flows from the investment. Unless there is better evidence of the recoverable amount, it is based on the value of the equity of the investee, adjusted by the amount of the unrealised gains existing at the date of measurement (including any goodwill). The Company derecognises a financial asset when it expires or when the rights to the cash flows from the financial asset have been transferred and substantially all the risks and rewards incidental to ownership of the financial asset have been transferred, such as in the case of the outright sale of assets, factoring of trade receivables in which the Company does not retain any credit or interest rate risk, sale of financial assets under an agreement to repurchase them at their fair value or the securitisation of financial assets in which the transferor does not retain any subordinated debt, provide any type of guarantee or assume any other type of risk.

However, the Company does not derecognise financial assets, and recognises a financial liability for an amount equal to the consideration received, in transfers of financial assets in which substantially all the risks and rewards of ownership are retained, such as in the case of bill discounting, with-recourse factoring, sales of financial assets under an agreement to repurchase them at a fixed price or at the selling price plus interest and the securitisation of financial assets in which the transferor retains a subordinated interest or any other kind of guarantee that absorbs substantially all the expected losses. 4.4.2) Financial liabilities Financial liabilities include accounts payable by the Company that have arisen from the purchase of goods or services in the normal course of the Company’s business and those which, not having commercial substance, cannot be classed as derivative financial instruments. Accounts payable are initially recognised at the fair value of the consideration received, adjusted by the directly attributable transaction costs. These liabilities are subsequently measured at amortised cost. Liability derivative financial instruments are measured at fair value, following the same criteria as for financial assets held for trading described in the previous section.

The Company derecognises financial liabilities when the obligations giving rise to them cease to exist. 4.5) Income tax

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income). The current income tax expense is the amount payable by the Company as a result of income tax settlements for a given year. Tax credits and other tax benefits, excluding tax withholdings and pre-payments, and tax loss carryforwards from prior years effectively offset in the current year reduce the current income tax expense. The deferred tax expense or income relates to the recognition and derecognition of deferred tax assets and liabilities. These include temporary differences measured at the amount expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled. Deferred tax liabilities are recognised for all taxable temporary differences, except for those arising from the initial recognition of goodwill or of other assets and liabilities in a transaction that is not a business combination and affects neither accounting profit/(loss) nor taxable profit (tax loss), and except for those associated with investments in subsidiaries, associates and joint ventures in which the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised to the extent that it is considered probable that the Company will have taxable profits in the future against which the deferred tax assets can be utilised. Deferred tax assets and liabilities arising from transactions charged or credited directly to equity are also recognised in equity. The deferred tax assets recognised are reassessed at the end of each reporting period and the appropriate adjustments are made to the extent that there are doubts as to their future recoverability. Also, unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that they will be recovered through future taxable profits.

4.6) Income and expense

Revenue and expenses are recognised in profit or loss for the year on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises. Revenue is measured at the fair value of the consideration received, net of discounts and taxes. Revenue from sales is recognised when the significant risks and rewards of ownership of the goods sold have been transferred to the buyer, and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at the end of the reporting period, provided the outcome of the transaction can be estimated reliably. Interest income from financial assets is recognised using the effective interest method and dividend income is recognised when the shareholder's right to receive payment has been established. Interest and dividends from financial assets accrued after the date of acquisition are recognised as income. However, in accordance with the accounting principle of prudence, only realised income at year-end is recognised, whereas foreseeable contingencies and losses, including possible losses, are recognised as soon as they become known.

4.7) Related-party transactions The Company performs all its transactions with related parties on an arm's length basis. Also, the transfer prices are adequately supported and, therefore, the Company’s director considers that there are no material risks in this connection that might give rise to significant liabilities in the future. 4.8) Provisions and contingencies When preparing the financial statements the Company’s directors made a distinction between: a) Provisions: credit balances covering present obligations arising from past events, the settlement of which is

likely to cause an outflow of resources, but which are uncertain as to their amount and/or timing. b) Contingent liabilities: possible obligations that arise from past events and whose existence will be

confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the Company's control.

The financial statements include all the provisions with respect to which it is considered that it is more likely than not that the obligation will have to be settled. Contingent liabilities are not recognised in the financial statements but rather are disclosed in the notes to the financial statements, unless the possibility of an outflow in settlement is considered to be remote. 4.9) Environmental assets and liabilities

Environmental assets are deemed to be assets used on a lasting basis in the Company's operations whose main purpose is to minimise environmental impact and protect and improve the environment, including the reduction or elimination of future pollution. 4.10) Current/non-current classification

Balances are classified as non-current and current in the accompanying balance sheet. Current balances include balances which the Company expects to sell, consume, pay or realise during its normal operating cycle. The remaining balances are classified as non-current.

4.11) Discontinued operations A discontinued operation is any component of the Company that has been sold or disposed of in any other way or has been classified as held for sale and, among other conditions, represents a line of business or significant area that can be distinguished from the rest. For operations of this nature, the Company includes in the income statement under a single heading entitled “Profit/(Loss) for the Period from Discontinued Operations Net of Tax” both the profit or loss after tax of discontinued operations and the gain or loss after tax resulting from the measurement of the operations at fair value less costs to sell or from the sale or disposal of the items constituting the discontinued operation. Also, when operations are classified as discontinued, the Company presents under the aforementioned heading the amount for the preceding year relating to the operations that have been discontinued at the end of the reporting period to which the financial statements refer.

5. Property, plant and equipment

The breakdown of the balance of “Cash and cash equivalents” in the balance sheets at 31 December 2011 and 2010 is as follows:

Euros Balance at

31/12/2010 Additions or charges for

the year

Transfers

Disposals or reductions

Balance at 31/12/2011

Cost: Land and natural resources Buildings

24,000 1,478,622

- 185,438

- -

- -

24,000 1,664,059

Total cost 1,502,622 185,438 - - 1,688,059

Total property, plant and equipment, net

1,502,622 185,438 - - 1,688,059

Euros Balance at

31/12/2009 Additions or charges for

the year

Transfers

Disposals or reductions

Balance at 31/12/2010

Cost: Land and natural resources Buildings

24,000 1,197,376

- 281,246

- -

- -

24,000 1,478,622

Total cost 1,221,376 281,246 - - 1,502,622

Total property, plant and equipment, net

1,221,376 281,246 - - 1,502,622

6. Investments in Group companies, associates, joint v entures and non-current financial assets

6.1) Net investments in Group companies The detail of the net investments in Group companies and associates at 31 December 2011 and 2010 and the

information relating thereto is as follows:

2011

Euros

Company and registered office

% of Ownership

Carrying amount of the

investment

Subscribed share capital

SET Valcaire 25 % 43,800 43,800 2010

Euros

Company and registered office

% of Ownership

Carrying amount of the

investment

Subscribed share capital

SET Valcaire 29.79 % 52,200 52,200

This Company is not listed. In 2011 and 2010 this company did not recognise any other significant profits or losses.

7. Balances with Group companies and associates

The detail of the current balances with Group companies and associates at 31 December 2011 and 2010 is as follows:

2011

Euros Payable to suppliers

Loans Interest

D/(C) D/(C) D/(C) Urbaenergía, S.L. - (1,507,833) (1,255) Sinergia Andaluza. S.L. - (1,050) Total - (1,507,833) (205)

2010

Euros Payable to suppliers

Loans Interest

D/(C) D/(C) D/(C) Urbaenergía, S.L. (26) (769,089) (23,389) Sinergia Andaluza, S.L. - (643,029) (19,556) Total (26) (1,412,118) (42,945)

The purpose of the loan granted by Urbaenergía, S.L. on 20 December 2005 for a maximum amount of up to EUR 660,000.00 is to strengthen the financial situation of Parque Eólico Valcaire. The loan's final maturity occurs on 15 December 2021 and it accrues interest at a rate of 4% until 15 June 2006, from which point the interest rate will be the rate resulting from adding a 1% spread to the interest rate applied to the long-term credit facility of the financing agreements for the same interest period. In the absence of the financing agreements at 15 June 2006, the interest rate will be the rate resulting from adding an annual 1% spread to 6-month Euribor which appears on the EURIBOR 01 screen of REUTERS at 11:00 am on the second day prior to the settlement of each new interest period. On 1 March 2006, the aforementioned loan was increased under the same conditions up to EUR 800,000. The purpose of the loan granted by Sinergia Andaluza, S.L. on 19 December 2005 for a maximum amount of up to EUR 540,000.00, with the option to capitalise a portion of the interest accrued, is to strengthen the financial situation of Parque Eólico Valcaire. The loan's final maturity occurs on 15 December 2021 and it accrues interest at a rate of 4% until 15 June 2006, from which point the interest rate will be the rate resulting from adding a 1% spread to the interest rate applied to the long-term credit facility of the financing agreements for the same interest period. In the absence of the financing agreements at 15 June 2006, the interest rate will

be the rate resulting from adding an annual 1% spread to 6-month Euribor which appears on the EURIBOR 01 screen of REUTERS at 11:00 am on the second day prior to the settlement of each new interest period. On 22 December 2011, the position in the loan held by Sinergía Andaluza, S.L. was assigned to Urbaenergía, which acquired its entire position.

8. Equity and shareholders’ equity

8.1) Share capital

At 31 December 2011 and 2010, the share capital amounted to THREE HUNDRED AND FIVE THOUSAND EUROS comprised of 305,000 fully subscribed and paid indivisible shares of EUR 1 each and the detail of the shareholding was as follows:

% Ownership Number of

shares Ownership Amount

Urbaenergía, S.A. 55 305,000 305.000 Euros Total 100 305,000 Euros 305,000

The Company’s shares are not listed on the stock exchange. 8.2) Legal reserve

Under the Consolidated Spanish Corporate Enterprises Law (Texto Refundido de la Ley de Sociedades de Capital), the limited liability company (sociedad de responsabilidad limitada) must transfer 10% of net profit to the legal reserve until the balance of this reserve reaches 20% of the share capital.

The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount.

Otherwise, until the legal reserve exceeds 20% of share capital, it can only be used to offset losses, provided that sufficient other reserves are not available for this purpose.

9. Tax matters

9.1) Current tax receivables and payables

The detail of "Current tax receivables and payables" in the balance sheets at 31 December 2011 and 2010 is as follows:

2011

ASSETS Euros 2011 VAT receivable Withholdings and prepayments

42,383

20

42,403

LIABILITIES Euros 2011 Income tax payable Tax withholdings payable

113 (19)

94

2010

ASSETS Euros 2010 VAT receivable Withholdings and prepayments

94,456

24

94,480

LIABILITIES Euros 2010 Income tax payable Tax withholdings payable

113 (22)

92

9.2) Reconciliation of the accounting profit/(loss) to the taxable base amount

The reconciliation of the accounting profit/(loss) for 2011 and 2010 to the corresponding taxable base amount is as follows:

2011 Euros

Total

Accounting profit/(loss) for the year before tax - Taxable base amount -

2010 Euros Total

Accounting profit/(loss) for the year before tax - Taxable base amount -

9.3) Reconciliation of accounting profit/(loss) to the income tax expense

The income tax expense is calculated on the basis of accounting profit or loss, determined by application of generally accepted accounting principles, which does not necessarily coincide with the taxable profit (tax loss), the latter being understood to be the taxable base amount.

The reconciliation of the accounting profit or loss for 2011 and 2010 to the corresponding income tax expense and current income tax is as follows:

2011 Euros Total

Accounting profit/(loss) for the year before tax - Taxable base amount - Tax rate of 30.0% - Withholdings and prepayments Income tax payable -

2010 Euros Total

Accounting profit/(loss) for the year before tax - Taxable base amount - Tax rate of 30.0% - Withholdings and prepayments Income tax payable -

9.4) Years open for review by the tax authorities a nd tax audits

In relation to the years open for review of the various taxes applicable to the operations of Parque Eólico

Valcaire, S.L., there might be contingent tax liabilities which cannot be objectively quantified, since they would depend on the outcome of the tax audits of the open years beginning from 2006 (inclusive) for income tax, and from 2007 (inclusive) for all other taxes. No additional material liabilities that might have a material impact on equity are expected to arise for the Company as a result of an audit of the years open for review.

If obligations have been acquired in relation to the tax incentives applied during the year, their nature and

amount will be detailed. In addition, accrued tax incentives will be disclosed, indicating the amount used and the amount pending use.

The system for determining transfer prices is adequately designed with a view to complying with tax legislation.

Therefore, transfer prices are adequately supported and there are no material risks in this connection. 10. Guarantee given to third parties

At 31 December 2011, Caja de Ahorros y Pensiones de Barcelona has provided three guarantees on behalf of Sinergia Andaluza, S.L. to the Provincial Department of Economy and Finance of the Autonomous Community Government of Andalusia as security for establishing economic solvency and viability funds for the common infrastructure of the Aulagar (for EUR 600,000), Valcaire (for EUR 144,000) and Tajos de Bazán (for EUR 300,000) wind farms. Parque Eólico Valcaire, S.L. owns the aforementioned wind farms and, therefore, the expenses arising from the aforementioned guarantees are borne by the Company.

In 2009 two guarantees, for Valcaire (for EUR 680,000) and Tajos de Bazán (for EUR 320,000), where requested for the Directorate-General of Energy Policy and Mines under the Ministry of Industry for the application for registration in the pre-assignment register of special regime facilities in accordance with Royal Decree 6/2009.

At 31 December 2011 these guarantees remain in force for EUR 2,192,000.

Euros 2011 2010 Guarantees

2,192,000

2,192,000

Total 2,192,000 2,192,000 The guarantees outstanding at 31 December 2011 are not expected to give rise to liabilities additional to those

recognised in the Company's financial statements at that date.

11. Related-party balances and transactions

11.1) Related-party transactions The transactions carried out by Parque Eólico Valcaire, S.L. with Group companies and associates in 2011

and 2010 were as follows:

2011 Euros

2011 Euros

Finance costs

Payable to suppliers

Urbaenergía, S.L. 29,819 - Sinergía Andaluza, S.L. Aldebarán SME, S.A.

25,257 -

- 2,279

Total 55,076 2,279

2010

Euros 2010 Euros

Finance costs

Payable to suppliers

Urbaenergía, S.L. 22,175 - Sinergía Andaluza, S.L. 18,890 -

Total 41,065 - 11.2) Remuneration of the director and senior execu tives

The members of the director did not receive any remuneration in 2011.

The Company has not granted any loans or advances to the members of the director and it does not have any pension obligations to them. The Company has not granted any advances or loans to any of the members of the director and it has not provided any guarantees for them. The Company does not have any staff. The senior executive functions are discharged by the directors. 11.3) Detail of investments in companies engaging i n similar activities and of the activities carried on by the director as independent professionals or as employees. At 1 January 2011, the director did not hold any investments in non-Group companies engaging in an activity that is identical, similar or complementary to the activity that constitutes the Company’s object.

Antonio Gómez Zamora

Name of Company

Company activities

Position

Al-Andalus Wind Power, S.L.

Aldebarán Servicios de

Mantenimiento Eólico, S.A.

Aldeire Solar, S.L.

Renewable energies

Renewable energies

Renewable energies

Individual appointed to discharge the functions of

the sole director, Energía y Recursos Ambientales,

S.A.



S.A.


the sole director, Cobra Sistemas y Redes, S.A.

Aldeire Solar-2, S.L.

Altomira Eólica, S.L.

Andasol-3 Central

Termosolar Tres, S.L.

Andasol-4 Central

Termosolar Cuatro, S.L.

Andasol-5 Central

Termosolar Cinco, S.L.

Andasol-6 Central

Termosolar Seis, S.L.

Andasol-7 Central

Termosolar Siete, S.L.

Berea Eólica, S.L.

Calvache Eólica, S.L.

Carta Valley Wind Power

USA, LLC

Cobra Termosolar USA, S.L.

Cobra Solar del Sur, S.L.

Cobra Sun Power USA, INC

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies





S.A.












the chairman of the Board of Directors, Energía y

Recursos Ambientales, S.A.





the sole director, Eyra Wind Power USA, Inc.


the sole director, Cobra Instalaciones y Servicios,

S.A.




the sole director, Cobra Termosolar USA, S.L.

Centro de Control Villadiego,

S.L.

Desarrollos Energéticos

Asturianos, S.L.

Desarrollos Energéticos

Riojanos, S.L.

El Chaparral Wind Power,

S.L.

El Otero Wind Power, S.L.

El Recuenco Eólica, S.L.

El Robledo Eólica, S.L.

Electra de Montanchez, S.A.

Energía Sierrezuela, S.L.

Energía y Recursos

Ambientales, S.A.

Energía y Recursos

Ambientales Internacional,

S.L.

Energías Alternativas Eólicas

Riojanas, S.L.

Energías Ambientales de

Soria, S.L.

Energías Renovables de

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies



S.A.

Chairman of the Board of Directors

Chairman of the Board of Directors


the sole director, Urbaenergía, S.L.







Individual appointed to discharge the functions of a

member of the Board of Directors, Energía y






S.A.



S.A.

Member of the Board of Directors




Ricobayo, S.A.

Manchasol-1 Central

Termosolar Uno, S.L.

Manchasol-2 Central

Termosolar Dos, S.L.

Eólica del Guadiana, S.L.

Eólica Majadillas, S.L.

Eólica Torrellana, S.L.

Extresol-1, S.L.

Extresol-2, S.L.

Extresol-3, S.L.

Eyra Instalaciones y

Servicios, S.L.

Eyra Wind Power USA, INC

Garby Aprovechamientos

Energéticos, S.L.

Infraestructuras Energéticas y

Medioambientales

Extremañas, S.L.

La Caldera Energía Burgos,

S.L.

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies







S.A.













S.A.

Sole director



S.A.



S.A.




Parque Eólico Bandelera,

S.L.

Parque Eólico Buseco, S.L.

Parque Eólico Valdecarro,

S.L.

Parque Eólico Donado, S.L.

Parque Eólico La Boga, S.L.

Parque Eólico Las Tadeas,

S.L.

Parque Eólico Marmellar, S.L.

Parque Eólico Monte das

Augas, S.L.

Parque Eólico Monte dos

Nenos, S.L.

Parque Eólico Rodera Alta,

S.L.

Parque Eólico Santa

Catalina, S.L.

Parque Eólico Sierra de las

Carbas, S.L.

Parque Eólico Tesosanto,

S.L.

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Joint director






S.A.














S.A.



S.A.

Joint director



S.A.







Parque Eólico Valcaire, S.L.

Parque Eólico Valdehierro,

S.L.

Parques Eólicos de la Región

de Murcia, S.A.

Recursos Ambientales de

Guadalajara, S.L.

Red Top Wind Power, LLC

Riansares Eólica, S.L.

Ribagrande Energía, S.L.

Sociedad de Generación

Eólica Manchega, S.L.

Somozas Energías

Renovables, S.A.

Torre de Miguel Solar, S.L.

Urbaenergía, S.L.

Urbaenergía Instalaciones y

Servicios, S.L.

Valdelagua Wind Power, S.L.

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies










the chairman, Eyra Wind Power USA, Inc.






Joint director

Individual appointed to discharge the functions of a

member of the Board of Directors, Urbaenergía,

S.L.


the joint director, Cobra Sistemas y Redes, S.A.



S.A.



S.A.



Energías Renovables

Andorranas, S.L.

Extresol 4, S.L.

Serrezuela Solar II, S.L.

Parque Eólico La Val, S.L.

Parque Eólico Cortado Alto,

S.L.

Renewable energies

Renewable energies

Renewable energies

Renewable energies

Renewable energies



S.L.




the joint director, Cobra Sistemas y Redes, S.A.







12. Information on the environment and on greenhouse ga s emission allowances

In accordance with point 5 of "Rule 4. Preparation of abridged financial statements" the Company hereby discloses that it has not recognised any items of an environmental nature. In view of the business activities carried on by the Company, it does not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to its equity, financial position or results. Therefore, no specific disclosures relating to environmental issues are included in these notes to the financial statements for 2011.

13.- Events after the reporting period

No events took place after the reporting period which might have a material effect on the accompanying financial statements for 2011.

PARQUE EÓLICO VALCAIRE, S.L. Certificate

Granada, 31 March 2012 The director, Urbaenergía, S.L. (Represented by Mr. Antonio Gómez Zamora)

parque eÓlico valcaire, s.l.parque eÓlico valcaire, s.l. was incorporated on 13 march 2003, as...

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