Eskom CSP Solar Augmentation Conference CSP Project Development

Eskom CSP / Solar Augmentation Conference CSP Project Development Marc Immerman Director Solafrica

Contents • Bokpoort Introduction • Key Project Facts • Project Benefits • Regulatory & Licensing Challenges • Financial Challenges • Why?

Bokpoort CSP 50 MW Trough Major Project Participants EPC: TSK, Acciona, Sener, Crowie O&M: ACWA , Invest in Africa Senior Lenders: Investec, ABSA, OMSFIN Equity: Lereko Metier Funds, ACWA Power, PIC, Kurisani, Local Community Developers: Marc Immerman, Mike Goldblatt, Lereko, Metier, IDC, ACWA

Key Facts • Status: Successful bidder in R 2 of the REIPPP, plant in early construction • Technology: Trough • Capacity: 50 MW incorporating 9. 5 hrs storage • Size: Approximately 300 hectares • Location: South Africa, Northern Cape Province, Groblershoop. 120 km SE of Upington • DNI: 2800 • Grid Connection: Garona Substation situated on Bokpoort Farm • Development timeframe: 4 years • Construction timeframe: 30 months • PPA term: 20 years

Bokpoort Site: 120 km SE of Upington

Project Benefits • • Government Objectives • Renewable energy targets • Green economy priority (State of the Nation Address) • Industrial Policy Action Plan (CSP targets) • Electricity Integrated Resource Plan (CSP allocation) • Addressing South Africa’s severe energy shortage Economic Development • ED / SED: Significant % of revenue to flow to BEE farming and youth development • Capital investment: 40% local content • Local investment: civil engineering, roadworks, site preparation, metals fabrication, etc. • Construction employment: ± 1, 000 jobs from unskilled to highly skilled. • Permanent employment: ± 60 (formal, permanent jobs) • Numerous indirect benefits: transport, catering, tourism, real estate, fuel supply, maintenance, waste management, etc.

Development Challenges • Funding ~ risk-return • Timeframes • Complexity • Limited pool of partners • Grid, Water and Sun • Varied experience and skillsets required • Diverse technology options

Regulatory & Licensing Challenges • Time consuming • Expensive • Co-ordination between multiple local, national and provincial government departments • Trailblazing • Extensive detail required • Agricultural land ownership and subdivision complexity • Stakeholder engagement • Local community engagement

Bokpoort – Regulatory Permits Permit/Approval Regulatory Agency Environmental Authorisation (ROD) Department of Environmental Affairs Waste Management License Department of Environmental Affairs Water Use License Department of Water Affairs Obstacle Approval Civil Aviation Authority Grid Connection Confirmation Letter Eskom Land Use (Departure) Land Use (Rezoning) Biodiversity Consent Heritage Consent Local Municipality and Department of Agriculture Department of Forestry and Department of Nature Conservation Heritage Resource Agency

Financial Challenges • Significant investment tickets dictate large number of financing parties • Limited pool of operational partners • Scale of debt against average ticket size and number of banks in SA • Perceived level of technology risk • Scale of forex and interest rate swap • EPC balance sheet • O&M balance sheet

Why Develop CSP? • Commercially proven storage capability • Only large-scale renewable energy technology able to satisfy the peak demand profile in South Africa • ‘Less developed’ SS market and high level of local content presents an opportunity for SA to participate meaningfully in supply chains • Solar resource in SA • Less competitive than PV and Wind • Scale benefits

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