CONCENTRATING SOLAR POWER THE NEXT GENERATION OF SOLAR ENERGY STORAGE BECOMES A REALITY Sustainable Energy Now– August 2016 Daniel Thompson Copyright © 2015. SolarReserve, LLC. All rights reserved. 1 Director of Development SolarReserve Overview ● Leading global developer of utility-scale solar power projects ● Developed and secured long-term power contracts for and advanced solar thermal storage technology 456 MW representing $2.5 billion of project capital ● Commercialised world’s leading solar thermal technology ● Development pipeline of more than 10 GW across the (CSP) with integrated energy storage – providing reliable and world’s most attractive high growth renewable energy markets non-intermittent electricity, day or night ● Proven management team – has built more than 27 GW and ● More than $1.8 billion of projects in operation globally financed over $48 billion in energy projects in 25 countries Copyright © 2015. SolarReserve, LLC. All rights reserved. 2 Global Reach Across Six Continents Development portfolio of 10 gigawatts across the world’s most attractive, high growth renewable markets Copyright © 2016. SolarReserve, LLC. All rights reserved. 3 Leading CSP and PV Project Developer More than 6 GW of Concentrating Solar Power Projects in Development Globally • Lead 110 MW project in commissioning operations – Crescent Dunes project in Tonopah, Nevada • 100 MW Redstone project in South Africa to commence construction in early 2016 • Late-stage development activities represent almost 1000 MW of fully permitted projects More than 4 GW of Photovoltaic Projects in Development Globally • 246 MW in operation in South Africa • Seven power contracts in North and Central America totaling 150 MW • Development projects in a dozen other countries Developing combined CSP and PV (hybrid) solutions to provide 24-hour baseload solar power that can compete with traditional generation Copyright © 2015. SolarReserve, LLC. All rights reserved. 4 SolarReserve’s Energy Storage Technology: Sunlight heats the molten salt directly, resulting in the most efficient and economical energy storage solution 1 Sunlight is concentrated and directed from a large field of heliostats to a receiver on a tall tower 2 Liquid salt from the cold salt tank is pumped through the receiver where it is heated to 565°C 3 The heated salt from the receiver is stored in the hot salt tank 4 Hot salt is pumped from the hot salt tank through a steam generator to create steam, which drives a steam turbine, generating electricity 1 5 Cold salt at 288°C flows back to the cold salt tank 6 Condensed steam from the steam turbine is recirculated for reuse 3 4 2 5 6 Copyright © 2015. SolarReserve, LLC. All rights reserved. 5 The Benefits of Solar Thermal with Integrated Storage ● Operates like a conventional power generation asset with no back-up fossil fuel system required ● Load-shifting to peak periods, ancillary services and zero fuel price risk over project life provides significant value ● A more stable and secure output alleviates intermittency issues and more fully utilises transmission assets ● Integrated molten salt in tower configuration stores energy more efficiently and cost effectively than other solar thermal storage solutions ● Storage technology is a fraction of the cost of utility scale battery storage Other than CSP with storage, no other ● Produces twice the output of similar sized solar solar technology can operate like a projects without storage conventional power plant. SolarReserve’s solar thermal with storage facility deploys the only commercially viable renewable technology that can displace fossil fuel generation Copyright © 2015. SolarReserve, LLC. All rights reserved. 6 The Value of CSP with Storage CSP with storage delivers multiple value streams which are increasingly important in the changing energy landscape Ancillary Intrinsic Energy and Risk Operating Services Stability Capacity Value Management Flexibility Frequency regulation Fault ride-through Time-shift generation to Hedges: Responsive curtailment capability the highest-value times Spinning reserve Power price Slow the net load ramps Non-spinning reserve Inertia / frequency Replace conventional Ancillary service price Smooth intra-hour response resources for flexibility variability Ramping support / load Integration costs Voltage / VAR support and reliability following Ease the integration of Higher utilization of Improved forecast error intermittent renewables Black start transmission assets Lower reserve Integration with other Less fuel / O&M from requirements thermal generators startup / cycling the fleet Long-term dispatch No “round-trip” losses flexibility Stable lifetime performance and value Curtailment issues and shifting of the net load peak will reduce the value of renewables without storage in the future Geo Wind Nuclear Coal Imports NV Power: Perez et al (2008) CA Case Study: Mills and Wiser (2012) Studies have shown Combined cycle Hydro Pumped storage Gas turbine PV CA Case Study: Jones (2012) APA - Tracking: R.W. Beck (2009) APS - Fixed: R.W. Beck (2009) WestConnect: GE Energy (2010) how the value of Toronto: Pelland and Abboud (2008) PGE: Perez et al (2008) 60,000 renewables without 80 storage declines as 50,000 70 penetration increase 40,000 60 50 30,000 In contrast, storage 40 20,000 30 allows CSP to 20 10,000 Capacity credit(%) deliver superior 10 value over the long 0 0 term Base (no PV) 2% 6% 10% 0 5 10 15 20 25 30 PV penetration and hour PV penetration (% annual energy) Copyright © 2016. SolarReserve, LLC. All rights reserved. 7 Dispatchable Generation Delivers Firm Output On Demand 8 Hour Photovoltaic Generation Profile Direct Steam 16 Hour Generation Profile 24 Hour Baseload Generation Profile Integrated energy storage provides the ability to shift electricity generation to meet different profile needs and deliver firm reliable power at high capacity value Copyright © 2015. SolarReserve, LLC. All rights reserved. 8 CRESCENT DUNES NEXT GENERATION OF SOLAR ENERGY STORAGE BECOMES A REALITY Copyright © 2015. SolarReserve, LLC. All rights reserved. 9 Crescent Dunes – Power Block Molten Salt Receiver Steam Turbine/Generator Water Treatment Facility Air Cooled Condenser Steam Generation System Cold Salt Tank Hot Salt Tank Copyright © 2015. SolarReserve, LLC. All rights reserved. 10 Crescent Dunes – Project Highlights 195 Meter Tower Tonopah, Nevada Power Block 10,347 Heliostats 2,800 Meter Diameter ● Technology: SolarReserve’s proprietary solar thermal energy ● Equity Investment: $260 million of private equity from storage technology that enables reliable, on-demand energy SolarReserve (managing partner), ACS Cobra and Banco production – day and night. Santander. ● Electricity Production: 110 MW capacity delivering more ● Debt Financing: Debt supported by U.S. Department of than 500,000 megawatt hours of electricity per year to the Energy Loan Guarantee Program. Nevada energy market. ● Power Purchaser: 25-year power contract with NV Energy, ● Storage: Market leading energy storage provides 10 hours of Nevada’s largest utility, for 100% of output at a fixed price full load electricity generation. with 1% annual escalation, regardless of world fuel prices. Copyright © 2015. SolarReserve, LLC. All rights reserved. 11 Crescent Dunes – Construction & Commissioning Highlights ● Construction Contract with ACS Cobra : Fixed price contract with guaranteed performance. ● Construction Status: Commissioning complete with over 3.9 million man-hours expended. ● Safety: Strong safety record with merit award for excellence in safety from Engineering News Record (ENR). ● Workforce: Primarily utilised Nevada and regional union and non-union subcontractors. ● Commissioning Status: Complete - commercial operations commenced Copyright © 2015. SolarReserve, LLC. All rights reserved. 12 Crescent Dunes – Local Economic Benefits ● Job Creation: – 1,050 construction workers on site at the peak period – 4,300 direct, indirect and induced jobs created by the project during construction – 26 states provided equipment and services – 60% of the project subcontractors were Nevada based ● Tax Revenues: Project forecasted to generate more than $73 million in local and state tax revenues over first 20 years of operation All 1.2 million square meters of glass was ● Operating Expenses: During the 30+ year operating life, the project will expend more than $10 million per U.S. sourced, with assembly completed in year in salaries and operating costs, much of this an on-site manufacturing facility that spent in the region employed local workers. ● Capital Investment: Project will generate in excess of $750 million private capital cost investment in Nevada SolarReserve’s CSP projects provide local economic benefits including a high level of content & service localization Copyright © 2015. SolarReserve, LLC. All rights reserved. 13 Crescent Dunes – Operation & Maintenance Status ● PIC (Atlanta-based) contracted as the O&M contractor, managed by SolarReserve on behalf of Tonopah Solar Energy ● O&M staff in place – 45 positions ● 45% of staff hired from Tonopah area Copyright © 2015. SolarReserve, LLC. All rights reserved. 14 The Aurora (Port Augusta) Solar Energy Project Copyright © 2016. SolarReserve, LLC. All rights reserved. 15 Port Augusta: The Past “The health of the people in Port Augusta has been affected by this coal-fired power station for the last 40 years and statistics prove this… We need to see solar thermal energy developed in South Australia and for us to become world