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ESKOM South Africa CSP Augmentation ConferenceCase B2 - Spain

August 2013

Puerto Errado 2 Project Overview Project Profile and milestones

Puerto Errado 2 Key data

EPC Contractor Novatec Solar

Application Electricity generation through steam

Solarfield Layout28 rows of linear Fresnel collectors, conventional steam turbine equipment and generator

Solar Field Length 940.8m

Net Aperture Area 302,000m²

Turbine 2x 15 MW turbine generators GE Termodyne

Cooling Air cooled condensers

Operating Temperature

Up to 270°C

Operating Pressure Up to 55bar

Peak Thermal Output 150MWth

Peak Electrical Output

30MWel

Electrical Production 49 GWh p.a.

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Dec 2008: Due Diligence of EBL on PE1

June 2009: Signing Investment Agreement

April 2010: Start of Site Activities

April 2011: Financial Close

April 2012: Completion of Construction

Aug 2012: Start of Operations

June 2013: Final Acceptance Tests

Puerto Errado 2 Milestones

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Puerto Errado 2 Project Overview Project Stakeholders

Project

Company

PE2

Project

Company

PE2

EPC ContractorEPC Contractor

Off-takerOff-takerLendersLenders

Owner (5 Swiss utilities)Owner (5 Swiss utilities)

Lenders AdvisorsLenders Advisors

O&M ContractorO&M Contractor

Owner’s Technical AdvisorOwner’s Technical Advisor

85 %

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Lessons learnt I: Bankability is key for the project development strategy

Stepwise commercialization of technology– Demonstrator -> Small scale project -> Mid/large scale projects

Demonstration and testing in close cooperation with EPC contractors, technical advisors, customers and lenders

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Bankability is key for the project development strategy Technology Overview and Development History

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Up to 310°C(1)

Up to 100bar

Up to 550°C(1)

Up to 150bar

Up to 550°C(1)

No pressure limitation(2)

Nova-1

Nova-1

Nova-1

Water

Water

Molten Salt

Commercialisation Nova-1

Commercialisation Supernova

Commercialisation DMS

2005 2009 2011 2013

Non-vacuum Tube Receiver

Vacuum Tube Receiver

Vacuum Tube Receiver

Enhanced Oil Recovery (EOR)

Other low to medium temperature process heat

DMS(direct molten salt)

Nova-1 (direct saturated steam generation)

Supernova (direct superheated steam generation)

Steam Parameters

Solar Field Base Design(excl. Receiver)

Receiver Design

Heat Transfer Fluid

Target Application

Integrated Solar Combined Cycle

(ISCC) Augmentation Storable & dispatchable

power generation Combined Heat & Power(CHP)

Storable & dispatchable power generation at minimized cost

Combined Heat & Power(CHP)

Product Testing and Development

(1) Current temperature limit of absorber tube coating specified by suppliers(2) Water / steam cycle pressure not relevant for solar field design pressure due independent systems

2014

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Bankability is key for the project development strategy Supernova Demonstator in operation since 2011DMS Demonstrator will be built in 2013

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Puerto Errado 2 (PE2)

30MWel commercial plant

In operation since 2012:

Mirror surface of 300,000m²

Puerto Errado 1 (PE1)

9MWth/1.4MWel test plant

In operation since 2009

Mirror surface of 18,000m²

Supernova Demonstrator

In operation since 2011:

Demonstrates superheated steam generation at 550°C

DMS Demonstrator

Realization scheduled for 2013

Will demonstrate direct molten salt as heat transfer fluid

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Bankability is key for the project development strategy Live steam Augmentation with Supernova technologySmall scale project award expected for September 2013

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Bankability is key for the project development strategy Direct molten salt collector with 2 tank storagePilot plant realization scheduled for 2014

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Lessons learnt II: Focus on core competences

Novatec´s various roles in the PE2 realization required significant specialized resources and financial contribution

Focus in the future on the areas of real strength and leave other aspects to various Business Partners.

Establishment as a turn-key solarfield supplier including the operation and maintenance of the solarfield

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Focus on core competencesNovatec Solar’s share of PE2´s value chain

ProjectDevelopment

Turnkey SolarField Delivery

Solar FieldManufacturing

Balance of Plant

Operation &Maintenance

ProjectOwnership(15%)

Standard Raw Materials

Key Materials and Components

Primary ReflectorFabrication

ReceiverFabrication

Project and Site Management

Assembly

O & MSolar field

O & MBalance of Plant

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Customers/Partners/Others

Engineering, Procurement and Construction (EPC)

Novatec Solar Core activities

Balance of Plant

Commissioning

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Focus on core competencesNovatec Solar’s Future Activities along the Value Chain

ProjectDevelopment

Turnkey SolarField Delivery

Solar FieldManufacturing

Balance of Plant &Storage System

Operation &Maintenance

ProjectOwnership

Standard Raw Materials

Key Materials and Components

Primary ReflectorFabrication

ReceiverFabrication

Project and Site Management

Assembly

O & MSolar field

O & MBalance of Plant

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Customers/Partners/Others

Engineering, Procurement and Construction (EPC)

Novatec Solar Core activities Novatec Solar Potential Activities

Balance of Plant

Storage System

Commissioning

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Lessons learnt III: Focus on real markets

Real CSP market of Spain are considered to be moderate only

A special CSP tariff regime provided an attractive framework for long term investments and created an quite artificial market

Later on announced tariff reductions are a threat to the economics of the existing plants and perspective of future investments

Future focus on the most promising regions and markets based on a number of criteria, like: – Suitable DNI data;– Variety of industrial and power applications; and– Steam and/or power demand increase.

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Focus on real markets Middle East, Chile, Australia, South Africa

The region has high solar irradiance and access to finance capital

The Saudi Arabian Government has submitted a white paper for a 54GW renewable energy programme by 2032

Significant oil fired gas turbine capacity installed

Major market for Enhanced oil recovery (EOR)

Several CSP projects in the region are in operation or under construction

Novatec Solar has been awarded to execute a FEED study on EOR

Middle Eastern and North African (MENA)Australia has an immediate opportunity to build a 30MWel solar-gas hybrid plant

Australia has excellent solar resources and recent positive developments in the CSP sector are promoting growth

Novatec Solar has been supported with RATCH - Australia by the Australia Renewable Energy Agency (ARENA) to develop a 30MWel solar-gas hybrid plant

Excellent Very good Good Not suitable

Appropriate for solar thermal power plants:

Novatec Solar Project Locations

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Latin America and especially Chile represent an area of significant growth in CSP

Chile has the world’s best solar resource with annual DNI in the north in excess of 2700kWh/m2/year

Chile has set up a legal framework for utilities to progressively have a 10% share of renewables by 2024

Award for small scale augmentation project expected in September 2013

Expansion from Chile to other Latin American Countries like Brazil, Mexico and Peru

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Focus on real markets South Africa as Target Market

Excellent Solar Resources (DNI> 2900 kWh / m2) in some regions

South Africa has been exploring solar power generation for some time and set-up the 400MWel CSP program REIPPP

Established local economy and infrastructure with big potential of local sourcing

Green field opportunities in Power Generation as well as brown field potential in Solar Augmentation projects

Total installed capacity of coal fired plants: 37,681 MW offering brown field potential in Solar Augmentation projects

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Source: SolarGIS

Coal fired power station

South Africa has a considerable project pipeline4

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Liddell solar augmentation, Australia 2012Puerto Errado 1, Spain 2009

Puerto Errado 2, Spain 2012