CSP Today CSP vs PV Felicia Bellows June

CSP Today -- CSP vs PV Felicia Bellows June 29, 2011

Who is Torresol Energy? 60% Founded in 1956, SENER ranks as the largest privately owned engineering company in Spain. The company is recognized for its capacity to deliver innovative and highly complex multi-disciplinary projects. © TORRESOL ENERGY – April 2011 40% Owned by the government of Abu Dhabi (UAE) through the Mubadala Development Company, Masdar is committed to developing and delivering energy solutions. 2

Gemasolar: Need I Say More? Molten salt receiver, 120 MWth, 20 Mwe, 15 hrs. TES, 6, 500 hr/yr © TORRESOL ENERGY – April 2011 3

SENER CSP Experience Gijón Santander Bilbao Oviedo La Coruña Plant San Sebastian Vitoria Vigo Pamplona Burgos Valladolid Zaragoza Lleida Segovia Salamanca Madrid Cáceres Ciudad Real Badajoz Palma Valencia Albacete Customer Type of contract Spain Spain EPC EPC EPC Engineering SAMCA II Spain SAMCA III Spain Termosol II Spain ACS-Cobra ACS-Cobra SAMCA Renovables Next. Era Energy Barcelona Tarragona Cuenca Country Andasol II Extresol III SAMCA I Genesis I USA Genesis II USA Gemasolar ASTE II Orellana Spain Alicante Córdoba Sevilla Cádiz Jaén Murcia Cartagena Granada Málaga Marbella Next. Era Energy Almeria El Ejido Gibraltar Engineering EPCM Basic design whole plant, EPCM solar Field EPC, solar field Torresol Elecnor Acciona Energía FCC - ABANTIA EPC, solar field Soluz Spain Guzman Valle I Spain Torresol Valle II Spain Torresol La Africana Spain TSK - Ortiz In blue: projects in operation EPC EPC, solar field SENER has participated in the design and construction of 20 CSP units in Spain and the USA with a total installed capacity, once in operation, of more than 1, 100 MW. © TORRESOL ENERGY – April 2011 4

• • Established in April 2006, Masdar (the Abu Dhabi Future Energy Company) is focused on development, commercialization and deployment of renewable energy solutions and clean technologies. The first major hydrocarbon-producing nation to take such a step, it has established its leadership position by launching the Masdar Initiative, a global cooperative platform for open engagement in the search for solutions to some of mankind's most pressing issues: energy security, climate change and truly sustainable human development. • Masdar consists of three business units and one investment arm: Ø Ø Masdar Carbon specializes in developing energy efficiency and clean fossil fuel projects to bring about reductions in carbon emissions Masdar City is a clean technology cluster being developed on the outskirts of Abu Dhabi that is expected to be powered entirely by renewable energy Masdar Power builds and invests in utility scale renewable energy power projects Masdar Venture Capital manages the Masdar Clean Tech Funds, a series of diversified venture capital investment vehicles focused on building portfolios of direct investments in clean technology and renewable energy • MASDAR, without Torresol Energy, also is developing CSP plants in Abu Dhabi, and their first plant “Shams 1” is expected to be completed in 2011. © TORRESOL ENERGY – April 2011 5

CSP & PV – The Product Not the same product Not the same cost Not the same value Not comparable PV’s product represents a portion of CSP’s PV offers energy only CSP offers energy, storage, full dispatchability & grid ancillary services • Utilities want what CSP provides, but cannot justify purchasing with current regulation • Translation ……. Regulatory issue • Without incentives, heading toward price driven decisions which are not good in the long-term for the grid • • © TORRESOL ENERGY – April 2011 6

SENER Spain Experience: Gemasolar 20 MW GENERAL DATA Name of the Plant Location GEMASOLAR Fuentes de Andalucía - Sevilla (Spain) Owner Role of SENER Status TORRESOL EPC risk sharing partner + complete design responsability In construction Start of operation April 2011 TECHNICAL DATA Total mirror surface 3. 3 MM sq. feet Number of heliostats 2, 650 Field surface area 355 Acres Nominal receiver capacity 120 MWth Tower height Thermal Storage Capacity 459 feet 670 MWhth (15 h) Turbine capacity 20 MWe Thermal Cycle Efficiency 40% Annual DNI 2. 172 KWh/m 2 OPERATION NG hibridation Annual equivalent hours 15% 6. 500 h/year Annual Capacity Factor © TORRESOL ENERGY – April 2011 74% 7

Advantage of a SENERTower Plant with Thermal Storage During the summertime, Gemasolar can supply energy continuously to the grid. *Gemasolar computer simulation for July © TORRESOL ENERGY – April 2011 8

CSP vs PV -- Financing PV is considered more easily financeable US financing for CSP has mostly been DOE Internationally, CSP has been project financed Key is size. Mega projects do not make sense for project financing. US CSP developers need to rethink approach here to secure project financing. • Torresol Energy & SENER are examples of successful project financings for CSP. • • © TORRESOL ENERGY – April 2011 9

Gemasolar Financing November, 2008 – Closed Project Financing 73 M€ Equity 29, 9% 171 M€ Debt 70, 01% 33, 33% 244 M€ Total Investment 0 50 100 150 200 250 Characteristics Amount Number of heliostats 2600 Total reflective area (m 2) 300 Tower height (m) 140 Turbine power (MWe) 19. 9 Storage size (hours) 15 300 November 2009 - Refinancing EIB 80 M€ 46, 8% 91 M€ Remaining Banks Total Debt 53, 2% 171 M€ 0 50 100 150 200 250 300 Digital Image of Gemasolar is the first SENERTower in the world. It has 15 hours of storage. © TORRESOL ENERGY – April 2011 10

Valle 1 & Valle 2 Financing July, 2009 – Closed Project Financing 17, 6% 156 M€ Equity 17, 6% 540 M€ Debt 16, 3% 696 M€ Total Investment 0 100 200 300 400 500 600 700 800 Technical Data Valle 1 Valle 2 Reflective Surface 510. 000 m 2 Number of Collectors 156 14, 6% 8, 8% Valle 1 & Valle 2 -Europe Clean Technology Deal of the Year (February 2010) Thermal Storage Capacity 6. 8 hours Power of the turbine 50 MW Valle 1 & Valle 2 are the only simultaneously closed project financed projects involving twin plants in Spain to date © TORRESOL ENERGY – April 2011 11