brightsourceenergy.com

BrightSource Energy

Opportunities and

Case for CSP

Desert Solar Saud Arabia

September 17, 2014

Ambassador Thomas Riley

Strategic Partners & Customers

Project Equity Investors

Enhanced Oil Recovery Applications

International Business Expansion

Key Electricity Generation Customers

Engineering, Procurement & Construction

Proven Access to Growth Capital

Partners & Customers

© ALSTOM 2014. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Presentation title - 18/09/2014 – P 3

Alstom Presence: >400 people Main references

• Thermal Power

− 2013: Yanbu 3, 5x620 MW for power & desal

− 2013: Shuqaiq, 4x720MW STG

− 2012: Riyadh PP12 gas-fired power plant,

2x342MW ST and 8xHRSG

− 2008: Shoaiba III, 3x400MW

− 2004: Shoabia II, 6x400MW

− 1998: Shoaiba I, 5x400MW

− SWFGD in Marafiq, Yanbu 5+6

− 69xGT11

− 21xGT9

− 1xGT8

• Transport

− 2013: Metro Riyadh, 3 lines, €1.2 billion

• Grid

− 2012: Dawadmi substation, 21x380 kV gas-insulated switchgear

− 2009: Gulf largest HVDV converter station (3x600MW) and network management system

− 400 kV gas-insulated substation in Jubail − 18 substations

60+ years of presence

Corporate

Grid

Transport

Thermal Power

Riyadh

Grid

Al Khobar

Grid

Thermal Power

Jeddah

Thermal Power

Shoaiba

Alstom in Saudi Arabia

Concentrating

Solar Power (CSP)

How it Works

What is Concentrating Solar Power?

Where does CSP work best?

Source: CSP Alliance Technical Report dated September 2014

Integrating a Proprietary Technology with Conventional

Components to Deliver Highly Reliable, Renewable Power

HELIOSTATS Software-controlled field of

mirrors concentrate sunlight

on a boiler mounted on a

central tower.

OPTIMIZATION / CONTROL

SOFTWARE Proprietary optimization software and Solar Field

Integrated Control System manage heliostat

positioning to optimize concentrated sunlight on

the boiler.

STORAGE When integrated, cost-effective thermal energy

storage extends solar electricity production into

later parts of the day after the sun goes down.

AIR-COOLED

CONDENSER Low-impact design, using

over 90% less water than

competing solar thermal

technologies that use

conventional wet-cooling.

AUXILIARY GAS-

FIRED BOILER Allows for hybridization,

increased output and the

enabling of more reliable

electricity production.

TURBINE Steam powers turbine to produce

electricity – then is converted back to

water through an air-cooled condenser.

7

SOLAR RECEIVER / BOILER Concentrated sunlight converts water

in a boiler to high-temperature steam.1

1Jointly developed; includes both BrightSource and 3rd party intellectual property

Alstom & BrightSource Energy Partnership

Solar Receiver

Steam Generator

Solar field control system Power Block

Heliostats

Air Cooled Condenser

Storage

We combine Alstom’s extensive experience in the field of turnkey power

plants and key power equipment (e.g. steam turbines and solar receiver

steam generator) with BrightSource’s LPT solar thermal technology

Heliostats: Intelligent and Precise

Heliostats individually positioned in field to optimize annual plant output

Account for real time weather, sun location, and wind

Heliostats “communicate” with each other to optimize radiation collection

and solar receiver heat balance

Two flat glass mirrors (2.3m x 3.3m) mounted on a single pylon

equipped with a computer-controlled drive system

System delivers beam accuracy in excess of one mile

Solar Field Integration and Control System (SFINCS)

Algorithmic software determines the optimal position of each heliostat accounting

for the unique conditions of each project site

The SFINCS control system manages distribution of energy across the solar

receiver using real-time heliostat-aiming and closed-loop feedback

On-site weather systems, and visual and infrared cameras provide real-time

feedback into advanced algorithms for solar field management

Proprietary optimization and control software maximizes project performance and

power production efficiencies

Enhanced Oil Recovery

BrightSource Technology for Enhanced Oil Recovery

Hybridization for supplemental

production

Hybridization for extended

production

Complete Hybridization

- Integrated Solar Combined Cycle

(ISCC)

- Solar Hybrid Add-On

- Solar Boost

Solar Hybrid Applications for Fossil Baseload Power Plants (1/2)

Solar hybridization allows fossil baseload power plants to reduce fossil fuel

consumption, air pollutants and other regulated emissions.

We offer three unique solar thermal hybrid power plant

configurations for customer specific applications:

Solar Hybrid Applications for Fossil Baseload Power Plants (2/2)

Solar HP steam injected into HP Steam Turbine Energy collection and electricity production

decoupled and separated by a buffer, the thermal

energy storage system

Suitable medium for energy collection and

storage: Molten Salt

Integration of CCPP and Solar Plant

with Direct Steam generation Basic concept hybrid with

Molten Salt Central Receiver (MSCR)

CSP With

Storage

A Critical Role

In Renewable

Energy

Chart Source: NERC – Accommodating High Levels of Variable Generation

Load shape source: California’s Electricity System Supply and Demand Overview, presentation by Jeffrey Byron, Commissioner, State Energy Resources Conservation

and Development Commission (energy commission), to the California State Assembly Utilities and Commerce Committee, Informational Hearing, March 29, 2007.

PV Output Variability

… Requiring additional flexible generation to maintain reliability

Output Variability Impacts Grid Reliability and Increases Costs …

Wind and PV Have Lower Reliability Due to Poor Alignment With System Peak Demand

Additional resources are needed to meet reliability requirements

Load shape source: California’s Electricity System Supply and Demand Overview, presentation by Jeffrey Byron, Commissioner, State Energy Resources Conservation and

Development Commission (energy commission), to the California State Assembly Utilities and Commerce Committee, Informational Hearing, March 29, 2007.

Production output of wind and PV are illustrative. Not drawn to scale with load shape curve.

Integration costs are increasingly being assigned by utilities

to intermittent resources within the selection process

Chart Source: Wiser, Ryan and Bolinger, Mark, Lawrence Berkeley National Laboratory, “2009 Wind Technologies Market Report”, pg 65; and, Navigant Consulting et

al; Large Scale PV Integration Study, Prepared for NV Energy; July 2011 1"Competitive Market Analysis Prepared for BrightSource Energy" (E3, March 2012).

The California Public Utilities Commission Long Term Planning Process methodology applies $7.50/MWh, as a “penalty” for all wind and solar resources in resource ranking and selection.1

According to Energy and

Environmental Economic (E3),

while integration cost estimates

vary by study, there is a

clear upward trend in

integration costs,

per megawatt hour,

as renewables penetration

increases.1

CSP Avoids Real Integration Costs Imposed by Intermittent Resources

Note: CA utility time-of-use factors based on PG&E and SCE data

Load shape source: California’s Electricity System Supply and Demand Overview, presentation by Jeffrey Byron, Commissioner, State Energy Resources Conservation

and Development Commission (energy commission), to the California State Assembly Utilities and Commerce Committee, Informational Hearing, March 29, 2007.

Production output of PV and BrightSource Power Tower are illustrative. Not drawn to scale with load shape curve

Net System Cost is Used by Utilities to Evaluate Cost Competitiveness

Energy storage increases asset utilization and transforms

solar thermal into a high-value, flexible resource

Storage is discharged when most economic to dispatch the power plant

Energy storage enables optimization of

production profile against market prices Production output of PV and CSP are illustrative. Market Price / System Value are representative, not actual, prices.

Integrating Storage Transforms a Solar Thermal Plant into a High-value, Flexible Resource

Capacity value refers to a power plant’s expected available production during peak demand

hours multiplied by forward capacity prices.

Capacity Value = On-Peak Availability Factor % × Plant Capacity (MW) × Capacity Price

Reliable resources, such as solar thermal and natural gas,

have higher capacity value

1On-peak availability factors used for planning from California’s 2010 Long Term Planning Process (LTPP), except Solar Thermal with Storage from Western Wind

and Solar Integration Study, Prepared for NREL by GE Energy, May 2010 and Simple Cycle Natural Gas is a BrightSource management estimate.

Capacity Value Varies According to the Availability of a Resource at System Peak

Projects

Chevron Solar-to-Steam for Thermal EOR

23

Capacity: 29 MWth for thermal EOR

Solar field: 3,822 heliostats

Location: Coalinga, CA

Delivered fully operational project to Chevron (Oct 2011)

Ivanpah Valley Pre-Construction

25

Integration of Supply and Assembly at Site

26

Transportation of Heliostats to Solar Field

22,000,000 key

heliostat components

30,000 ton of heliostat

support structural steel

(~3x the total metal

in Eiffel Tower)

2,000 Km of cables

(~1/6 of Earth's diameter)

4,000 truck loads;

avg of 55 per week

Over 7,000 schedule tasks

Import/Export via ~10 ports

(Shanghai, Ningbo, Hamburg, Bremen…)

BrightSource Supply Chain Key Figures

Ivanpah: World’s Largest Solar Thermal Project

Photo taken October 2012

Substation (SCE)

BrightSource Energy: Ivanpah - World’s Largest Concentrating Solar Power Plant

3 power plants

- Total 377 MW of electricity generation

- 20+ year contracts with PG&E and SCE

- 140,000 homes served annually

- 173,500 heliostats installed

$2.2B project financing - April 2011

- Equity Investors: NRG, Google & BrightSource

- $1.63B DOE loan guarantee

Key dates

- Commenced construction – October 2010

- Substantial completion – Dec 2013

Unit 3

Unit 2

Construction logistics area

Unit 1

Common Area

Substation (SCE)

Conclusions

BrightSource Solar Plant with Thermal Energy Storage

Extends electricity production into later parts of the day and after sundown,

when valued most by utilities

Reduces the cost of renewable power: - Increases a plant’s capacity factor / higher asset utilization

- Offers higher efficiencies than competing solar thermal power plants

Provides utilities with greater operational flexibility to shape production to account

for variable production of other intermittent resources

Offers utilities and grid operators additional operational and market value: - Balancing and shaping capabilities

- Ancillary services to support a reliable grid

CSP with storage

compares

favorably with PV

and wind when

considering grid

system costs

Impact is greater

as non-

dispatchable

renewables exceed

5% of total

generation

Benefits can

exceed

$60US/MWh

The Benefits of CSP vs PV

Net System Cost = Levelized

Cost of Energy + Transmission Cost

+ Integration Cost – Energy Benefits

–Ancillary Benefits –Capacity

Benefits

Free Report:

http://www.brightsourceenergy.com/new-

report#.VBNAaufwmVu

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