PROJECT UPDATE: CRESCENT DUNES SOLAR ENERGY PROJECTenergyinternet.cn/documents/csp.pdf · Plants combined will power more than 80,000 South African homes Lesedi & Letsatsi transaction

Copyright © 2014. SolarReserve, Inc. All rights reserved.

PROJECT UPDATE: CRESCENT DUNES SOLAR ENERGY PROJECT

Kevin B. Smith - CEO, SolarReserve May 6, 2014

2 Copyright © 2014. SolarReserve, Inc. All rights reserved.

SOLARRESERVE OVERVIEW

●  Leading global developer of large-scale solar power projects and advanced solar thermal technology

●  More than $1.8 billion of projects in construction around the world – both Concentrated Solar Power projects (CSP) and Photovoltaic (PV) projects

●  Development pipeline of more than 5,000 MW in Europe, Asia, the Middle East, Africa and Latin America

●  Commercialized world’s leading solar thermal technology (CSP) with integrated energy storage – providing reliable and non-intermittent electricity, day or night

●  Experienced and proven management team – previously built more than 15,000 MW and financed more than $15 billion in energy projects in more than fifteen countries

●  US Headquarters in Santa Monica, California with international offices in Dubai, Istanbul, Johannesburg, London, Madrid, Perth and Santiago


WORLD’S LEADING SOLAR THERMAL ENERGY STORAGE TECHNOLOGY


SOLARRESERVE - DIFFERENTIATED TECHNOLOGY

•  The most advanced solar energy storage technology available today •  Firm, non-intermittent supply of solar energy – day

or night

•  Fully integrated storage technology – not “bolt on” style storage

§  Minimizes complexity §  Minimizes tanks and salt volumes §  Minimizes transfers between mediums

•  No requirement for natural gas or oil ‘back up’ to prop up the system

•  Low-pressure, single phase flow receiver with atmospheric pressure storage tanks

•  Option to dry cool steam cycle

•  Lowest capital cost energy storage system

•  110 MW Utility scale installation in full operation end of 2014


SOLARRESERVE’S ENERGY STORAGE TECHNOLOGY

Sunlight heats the molten salt directly"

Fewer heat exchange steps, higher temperature"

Higher efficiency than other molten salt storage designs"

Energy storage with greater flexibility at

lower cost"


MOLTEN SALT STORAGE TANKS - SOLARRESERVE VS. TROUGH TECHNOLOGY WITH SECONDARY STORAGE

●  Troughs circulate hot oil through 1 mile per MW, even at night – often requiring fossil fuels to keep the oil hot

●  Temperature differential of 100⁰C – limited by the oil – requires more salt to hold the same amount of energy

●  Salt is circulated through the tower during the day, and held in storage tanks at night – requiring no fossil fuels

●  Salt temperature differential of 277 ⁰C stores more energy in less salt


CRESCENT DUNES – NEXT GENERATION OF SOLAR ENERGY STORAGE


THE CRESCENT DUNES SOLAR ENERGY PLANT

●  Location: Tonopah, Nevada ●  Technology: CSP with Molten Salt Thermal Energy Storage

●  Size: 110 MW facility output ●  Storage: 10 hours full load storage

●  Electricity Production: more than 500,000 MW-hours annually ●  Power Purchaser: NV Energy (25-year contract)

●  EPC Contractor: Cobra Thermasolar, Inc. (NV)


CRESCENT DUNES – PROJECT DETAILS

●  Renewable Energy Technology Advancement –  110MW capacity delivering 500,000 MW-hours annually to the Nevada energy market –  Reliable and firm renewable energy that can meet the utility’s peak demand into the evening hours – NV Energy peak

continues to 11PM or later –  Market leading energy storage provides 10 hours of ‘full load’ storage for grid stability and reliability

●  Schedule –  Current construction activities more than 95% complete –  First electricity generation scheduled for 3Q 2014 –  Commercial operation by the end of 2014

●  Power Purchase Agreement –  25-year power contract with NV Energy, Nevada’s largest utility, for 100% of output –  Fixed power price with 1% annual escalation, regardless as to world fuel prices

●  Financing –  Debt supported by U.S. Department of Energy Loan Guarantee Program –  $260 million of private equity from SolarReserve, ACS Cobra and Banco Santander

●  Construction Contract with ACS Cobra –  Fixed contract price, guaranteed completion date and guaranteed performance with liquidated damage payments for

any delays or shortfalls –  Cobra is primarily utilizing Nevada and regional subcontractors for construction activities


CRESCENT DUNES - PROJECT ARRANGEMENT

10,347 HELIOSTATS

OFFICES AND CONSTRUCTION LAYDOWN

EVAPORATION PONDS

640 FOOT TOWER

POWER BLOCK 1.75 MILE (2800M) DIAMETER

HELIOSTAT MANUFACTURING


CRESCENT DUNES – POWER BLOCK


CRESCENT DUNES – ECONOMIC BENEFITS

●  Job Creation: –  Over 900 workers currently on site –  4,300 direct, indirect and induced jobs created –  Equipment and services purchased across 25 states –  45% of craft workers are Nevada residents

●  Tax Revenues: Project forecasted to generate more than $73 million in local and state tax revenues over first 20 years of operation

●  Operating Expenses: During the 30+ year operating life, the project will expend more than $10 million per year in salaries and operating costs, much of this spent in the region

●  Capital Investment: Project will generate in excess of $700 million private capital cost investment in Nevada

All 1.2 million square meters of glass was U.S.

sourced, with assembly completed in an on-site

manufacturing facility that employed local workers in

a new industry.

" SolarReserve’s CSP projects provide local economic benefits including a high level of content & service localization


CRESCENT DUNES CONSTRUCTION – SOLARRESERVE DEVELOPED PROPRIETARY RECEIVER

Lifting first receiver panel in 2013 Receiver deck atop 540 foot tower

Receiver panel completed in less than 30 days SolarReserve holds exclusive worldwide license to receiver technology developed by rocket scientists at Rocketdyne


CRESCENT DUNES CONSTRUCTION – 10,347 HELIOSTATS

On-site heliostat assembly and installation Heliostat Control Unit (HCU) for individual control

Dual axis tracking for optimal electricity production Highly accurate GSP measurement + sophisticated control software precisely centers beam on target


CRESCENT DUNES CONSTRUCTION – POWER BLOCK

Able to provide peak or baseload power – day and night Molten salt (1050 degrees F) in hot storage tank provides 10 hours storage at nameplate capacity

Air cooled condenser for hybrid cooling system saves millions of gallons of water

Hot salt is sent to a heat exchanger to produce steam which drives a conventional steam turbine generator


SOLARRESERVE - GLOBAL REACH


GLOBAL EXPANSION

●  Balanced Portfolio of CSP and PV in the US and across the world

●  Hybrid CSP/PV plants in development ●  Expanding international activities

●  U.S. Headquarters in California ●  International offices in Madrid, Santiago,

Johannesburg, Istanbul, Perth and Dubai


SUCCESSFUL DEVELOPER OF BOTH CSP AND PV SOLAR PROJECTS

" Geographically diverse portfolio of more than 3,000 MW of Concentrated Solar Power Projects •  Lead 110 MW project in construction - Crescent Dunes

Solar Energy in Tonopah, Nevada

•  Late-stage projects represent more than 600 MW of fully permitted projects in US and overseas

•  10 advanced sites and more than 150,000 acres under control

" Expanded into Photovoltaic activities in early 2009 •  Three projects totaling 246 MW in construction in South

Africa with capital costs of $820 million

•  Development pipeline in the US and international of more than 2,000 MW

" Developing combined CSP and PV solutions that can provide competitive 24-hour solar energy


SOLARRESERVE SOUTH AFRICA PV PROJECTS IN CONSTRUCTION

●  Three projects totaling 246MW installed capacity

●  Combined capital cost of more than U.S. $816 million –  Lesedi and Letsatsi: two of the largest project finance

transactions ever completed in South Africa –  Japer: includes financial investment from Google – their

first renewable energy investment in South Africa

●  Creating hundreds of direct jobs on-site during construction plus indirect and induced jobs across the supply chain

●  % of total project revenues set aside for enterprise and socio-economic development, which will be invested for the benefit of the local communities surrounding the facilities

●  Plants combined will power more than 80,000 South African homes

Lesedi & Letsatsi transaction named “African Renewable Energy Deal of the Year” by Project Finance Magazine in 2012

" Among the largest renewable energy projects in Continental Africa, totaling 246 MW of generation capacity


OPPORTUNITIES FOR THE MENA REGION


SOLARRESERVE ACTIVITIES IN THE MENA REGION

Dubai: •  Regional office established in 2013 to service all current MENA activities including North

Africa, Kuwait, Oman, Qatar, Saudi Arabia, Dubai and Abu Dhabi

•  Kingdom of Saudi Arabia: •  Actively forging new relationships with developers and contractors in the region in

readiness for Saudi Arabia’s anticipated solar renewable procurement program

•  Morocco: •  Qualified and bidding with partners GDF Suez and Masdar for MASEN’s Ouarzazate

Phase II solar project - 150MWe Tower Project with Molten Salt Storage

•  Jordan: •  Pursuing opportunities under Ministry of Energy and Mineral Resource (MEMR) direct

proposals for phases I, II and III

Turkey: •  Strategic local office

•  Sites identified for both CSP and PV projects


OPPORTUNITIES FOR MENA REGION

●  Game-changing energy solution: world-leading, patented solar thermal technology with integrated molten salt storage offers the MENA region a valuable renewable energy solution:

–  Cost-effective and cost competitive with new-build conventional power sources

–  Reliable, predictable and flexible solar energy

–  Baseload solar energy

–  Dry cooling

–  Hybrid solutions

●  This solar thermal technology, either alone or coupled with photovoltaics (PV), can provide a cost effective and reliable alternative to fossil fuel generation with the reduction in emissions to near zero.

●  SolarReserve is committed to:

–  developing and fostering long-term relationships and investment in the region

–  growing the local supply chain and workforce expertise in solar thermal power plants

–  transferring knowledge through partnerships, research projects and intern programs with local universities.


OPPORTUNITIES IN MENA REGION: JOB CREATION

●  Jobs created include services (legal, engineering, environmental and consultancy services), on-site construction, operations and maintenance and indirect/induced.

●  SolarReserve’s Crescent Dunes 110 megawatt (MW) project in the U.S. is an example of potential job creation – it has created over 4,300 direct, indirect and induced jobs over the life of the project, with peak on-site employment of over 1,000 construction jobs, including more than 70 subcontractors (almost 70% of the total) just from the state of Nevada where the project is located.

●  Examples of jobs created are as follows:

CONSTRUCTION OPERATIONS INDIRECT/INDUCED

Boilermakers Carpenters, Electricians Ironworkers, Laborers

Cement masons Construction management

Millwrights, Heliostat assembly craft Operating engineers

Painters, Pipefitters, Teamsters

Security guard, Plant chemist Heliostat wash crews

Mechanical technicians Electrical technicians Semi-skilled laborers

Maintenance manager Maintenance planner

Operations superintendent

Foodservice Lodging / hospitality

Materials supply Maintenance services

Transportation / shipping Tourism


OPPORTUNITIES FOR MENA REGION: LOCALIZATION OF MANUFACTURING

●  SolarReserve’s analysis identifies that projects within the MENA region can achieve 75% to 80% local content through the local supply chain and the various finance institutions and equity participation.

●  The potential for local supply of components and equipment include:

–  Solar field (heliostats) – a large percentage of the components, including glass and steel, are currently available locally with the opportunity to establish on-site manufacturing/assembly

–  Molten salt system, including piping and tanks

–  Power block

–  Balance of plant

–  General contractor (EPC) and qualified subcontractors


" www.SolarReserve.com

" [email protected]

Corporate Headquarters (US):

" 2425 Olympic Blvd.

" Suite 500 East

" Santa Monica, CA 90404

" Phone: (310) 315-2200

" Toll-Free: (866) 622-2778

" Fax: (310) 315-2201

CONTACT INFORMATION

PROJECT UPDATE: CRESCENT DUNES SOLAR ENERGY PROJECTenergyinternet.cn/documents/csp.pdf · Plants combined will power more than 80,000 South African homes Lesedi & Letsatsi transaction

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