Update on the power situation in Asia Edgar van der Meer Energy Analyst June 21, th World Chlor-Alkali Conference

June 21, th World Chlor-Alkali Conference2 Outline Generation Capacity Asia and Selected Countries Global Fuel Costs Demand Asian Demand Worldwide trends Energy Shortfall Outlook Where are the tariffs headed?

2013 Electricity Generation Capacity In 2013, over half of Asias Electricity Generation Capacity is fueled by Coal Over ¾ of supply will come from only 3 sources: Coal, Hydro & Gas June 21, th World Chlor-Alkali Conference3

2020 Electricity Generation Capacity While lower, Coal will still be the major source for installed capacity in 2020 Hydro and Gas remain in the number 2 and 3 spots but theres an increasing mix June 21, th World Chlor-Alkali Conference4

2020 Comparison Asia vs. World June 21, th World Chlor-Alkali Conference5

Generation Capacity (MW) China June 21, th World Chlor-Alkali Conference6

Generation Capacity (MW) India June 21, th World Chlor-Alkali Conference7

Generation Capacity (MW) Indonesia June 21, th World Chlor-Alkali Conference8

Generation Capacity (MW) Japan June 21, th World Chlor-Alkali Conference9

Generation Capacity (MW) Korea - South June 21, th World Chlor-Alkali Conference10

Price Effects of Coal-Fuelled Electricity Generation Positives Wide Availability Easy Transport High Energy Value Negatives Carbon Taxation High Capital Cost Environmental Cost Recovery June 21, th World Chlor-Alkali Conference11

Price Effects of Gas-Fuelled Electricity Generation Positives High Energy Value New Reserves Increasing Supply Efficiencies in use of Technology (CC / ACT) Negatives Difficult Transport Centralized Availability June 21, th World Chlor-Alkali Conference12

Generation Capacity Conclusions Asian Electricity Sector has a heavy reliance on Coal Disproportionate to the Rest of the World Gas influence Rising High Oil Prices Pushing Diversification June 21, th World Chlor-Alkali Conference13

Price Developments of Fuel June 21, th World Chlor-Alkali Conference14

Raw Fuel Costs per kWh June 21, th World Chlor-Alkali Conference15 Source: BP/EIA

What was your share? 17,691,480,000,000 kWh June 21, th World Chlor-Alkali Conference16 $4,560,834,057,610

Net Generation and Net Consumption June 21, th World Chlor-Alkali Conference17

June 21, th World Chlor-Alkali Conference18

So where are we headed? June 21, th World Chlor-Alkali Conference19

Conclusions Dependency on Coal High oil prices Lower cost of Gas More grid interconnections Middle East Stability June 21, th World Chlor-Alkali Conference20

Thank you June 21, th World Chlor-Alkali Conference21

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