Opportunities for Solar PV in Indonesia Case Study Philippines Subtitle

18th july, 2012

Date

A sizeable independent solar developer

Enfinity snapshot

2011 installed MW B2B, B2I, B2R, Power

Americas 18.9% UK 3.2% Greece 3.6% France 8.7% India 4.4%

A truly international solar project developer realized 391 MWp of B2B & B2I and B2R projects in 11 countries to date presence in over 16 countries across Europe, North America and Asia over > 200 employees globally

Belgium 45.6%

Italy 15.5%

Total MW: 207

Realized 108MW in 2010 and 207 MWp in 2011 respectively, of which for 2011 25 MW in B2B 80 MW in B2I 44 MW B2R 59 MW Power business

B2B & B2I 2012 Gross pipeline (MW)

Malaysia 6.8% Philippines 6.8% Thailand 4.5% Belgium France Italy 0.4% 7.2% 11.4% Bulgaria 2.3% UK 0.9% Greece 5.1%

India 6.8% China 32.9%

USA 6.5%

2011 sales of 375m, up 70% from 2010

Total MW: 222

Canada 8.6%

Largest independent PV developer with proven development track record

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with a global presence and proven track record

Enfinity's track record (B2I & B2B)

UK Belgium Czech Republic Canada US France Spain Italy Greece UAE India Thailand Vietnam Malaysia Bulgaria China South Korea

Hong Kong Philippines

North America

Europe 47 33 149 27

Asia 335 61 771 124

Grid connected MW(a) 2012 pipeline MW, inc. under construction(a) 2013 14 pipeline MW No of employees

Grid connected MW(a) 2012 pipeline MW, inc. under construction(a) 2013 14 pipeline MW No of employees

Grid connected MW(a) 2012 pipeline MW, inc. under construction(a) 2013 14 pipeline MW No of employees

35 128 3,749 56

Geographical diversification with early stage local presence is a core strength

(a) As of 30 Dec 2011 (b) Excluding discontinued operations 3

Multiple channels into the end customers

B2B refers to the sale of solar installations to corporate customers Enfinity is responsible for project development, construction and O&M The Company has substantial experience in the creation and development of B2B projects for a wide range of business clients (multi-national clients)

B2B
Business to Business

B2I
Business to Investors

B2I refers to the sale of solar projects to external financial investors Development, financing, construction, operation and administration carried out by Enfinity Historically has been the main driver of Enfinitys sales

B2R refers to the sale of solar systems to residential clients via resellers Enfinity is responsible for providing PV systems as well as training and marketing support to the resellers In certain cases, Enfinity sells PV systems directly to the end-customer

B2R
Business to Retail

Multiple sources of revenue and customers enhance competitiveness and reduce risk
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Installations by system integrator/developer

(MW DC 2009 to 2014)

Source: PHOTON consulting, LLC. Note: All data are rought estimates. Estimates based on MW DC of completed construction/system installations, not MW interconnected.

Dunhuang China 10 MWp

PV market: GLOBAL

69 GW installed globally, 85 TWh/year

29.7 GW was connected to grid in 2011(16.8 GW in 2010) 21.9 GW was connected in Europe (75% of global market) Italy biggest market with 9.3 GW, followed by germany 7.5 GW six markets with more than 1 GW; Italy, Germany, China, US, Japan, France Solar produces 4% of peak demand in Europe In Germany solar produces 10% of peak demand

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Opportunities for solar PV in ASIA - Indonesia Fast growing demand for electricity production majority of people have no access today

regular brown outs in some regions

No need for electricity infrastructure in the country No need for fuel cost independency Solar is fast to install The cost of conventional electricity production is already today more expensive than solar PV
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Global Solar Electricity Potential

Solar energy in hours, received each day on an optimally tilted surface More than enough solar radiation available around the world to satisfy any demand for solar power systems 4% of the worlds very dry desert areas used for PV installations, would meet the whole worlds total primary energy demand

Considering the vast areas of unused space such as roofs, building and deserts, the potential is almost inexhaustible
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Solar Electricity Potential in Asia-Pacific

Very weak correlation between the solar adoption and the amount of sunlight in area. E.g. The southern part of China has about 50% radiation MORE than Germany the largest solar market. Average annual energy received in Europe ~1000 kWh per m Compares with ~1850 kWh in Bombay.
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Levelized Cost of Electricity (LCOE) by Technology

Total Electricity Cost Breakdown ($ / MWh)

160 140 120 100 80 60 40 20 0 CCGT Coal Nuclear Wind- On Solar TF - '10

Permanent Cost Distribution & Transmission Fuel Costs CO Costs Fixed Cost ROCE

Levelized Cost of Electricity (LCOE) by Technology

Units MW $/ MW Yrs % GWh % $/ MWh $/ MW $/ MWh $M $/ MWh $/ MM BTU BTU/ MWh $/ MWh $/ MWh $/ MWh $/ MWh $/ MWh CCGT 100 1005 40 40 350 7 20.1 2.5 7.2 5.3 15.0 3.5 10,500 36.8 79.0 25.5 15.0 119.5 Coal 100 2700 40 70 613 7 30.8 6.8 11.0 18.4 30.0 3.8 11,500 43.1 115.0 25.5 15.0 155.5 Nuclear 100 5100 60 85 745 7 47.9 12.8 17.1 0.0 0.0 Wind- On 100 2400 20 30 263 7 63.9 12.0 45.7 Solar TF - '10 100 3000 25 35 307 7 68.5 12.0 39.1

Installed capacity Construction cost Plant life Load factor Production Expected ROCE Required return USD per MWh produced Fixed Costs Fixed O&M USD per MWh produced CO Costs Tot. Cost USD per MWh produced Fuel Costs Fuel Price Heat Rate USD per MWh produced Total Generation Cost Distribution & Transmission Permanent Cost Total Electricity Cost

0.0

0.0

4.0 69.1 25.5 15.0 109.6

0.0 109.6 25.5 15.0 150.1

0.0 107.6 0.0 0.0 107.6

Source: Barclays Capital Research

GRID Parity is around the corner

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Grid Parity
Average retail power price (USD/KWh)
0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02
China Canada Germany Japan Czech Republic IL South Korea France United Kingdom NY NJ Spain TX Italy CA 2010E

Lev cos ene US

FL AZ

2014E

Australia United States India

0.00 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Average insolation (KWh/m2/day) (Kw h/m^2day)

Opportunities for Solar PV in remote areas of ASIA Case study Philippines 17.500 islands in Indonesia majority are running on diesel generators

diesel generators are old and inefficient

many of islands have electricity for limited hours/day frequent brown-outs some areas very remote to bring fuelincreasing fuel prices Conclusion: to expensive

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Opportunities for Solar PV in remote areas in ASIA Case study Philippines yearly, an increasing 162 mio$ losses by national power company responsible for these areas We are studying 9 islands in the case study Findings
total generation 39 GWh/year 6 - 8 pesos/kWh paid by consumer 6 18 pesos/kWh paid by electrification fund rest of cost is born by national utility responsible for off-grid islands total cost/kWh is 0.33$ -1.41$/kWh in 2010 2011 - 30% increase in fuel cost Cost 0.39$ - 1.49$/kWh
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Opportunities for Solar PV in remote areas in ASIA Case study Philippines Our solution for the case study of 9 islands Replace 50% of diesel generators by solar parks:
50% of Energy/Daytime
Avoid buying more Generator sets Savings on fuel cost year 1 : 4.4 million us$ assuming price increase of fuel of 5%/year (30% increase between 2010 2011) Savings on fuel cost in year 25 : 14 million us$ Savings over period of 25 years : 211 million us$ We need to install 12 MWp of solar to cover 50% current consumption Cost of 12 MWp = 36 million us$ + 9 million O&M = 56 million us$ SAVINGS of 150 mio us$
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Opportunities for Solar PV in remote areas in ASIA Case study Philippines There is more ... Figures on 150 areas with 290 diesel generators
Savings on fuel cost year 1 : 53 mio us$ Assuming price increase of fuel of 5%/year Savings on fuel cost in year 25 : 172 mio us$ Savings over period of 25 years : 2.5 bio us$ We need to install 168 MWp of solar to cover 50% of consumption or run same gensets to increase daily coverage from 9-12 hours to 12-16 hours Cost of 168 MWp = 504 mio us$ + 126 mio O&M = 630 mio us$ WE CAN SAVE 2 BIO us$ Or 1% of the GDP in philipinnes

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Opportunities for solar PV in remote areas in ASIA Case study Philippines Solution 1 government raise money to invest Solution 2 IPP model
Sign bankable PPA with islands for 25 years
PPA is guaranteed by government Collecting of money done by government institution Equity and debt can be raised to cover the capex operation by IPP

Solution 3 Introduce a feed inn tariff for islands

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Opportunities for solar PV in remote areas in ASIA rest of Asia

20.000 to 30.000 pacific islands 17508 islands in Indonesia 4200 islands in Korea 1200 islands in Maldives how many remote areas in asia pacific ? are we really going to use centralised electricity production and built 100 km of grid Or is it time to install smart local grids with adapted electricity production units

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ITS TIME FOR SOLAR ENERGY Thank You !

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