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 50MW 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 R2 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: 120km 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

Permit/ApprovalRegulatory Agency Environmental Authorisation (ROD)Department of Environmental Affairs Waste Management LicenseDepartment of Environmental Affairs Water Use LicenseDepartment of Water Affairs Obstacle ApprovalCivil Aviation Authority Grid Connection Confirmation LetterEskom Land Use (Departure) Local Municipality and Department of Agriculture Land Use (Rezoning) Local Municipality and Department of Agriculture Biodiversity Consent Department of Forestry and Department of Nature Conservation Heritage ConsentHeritage Resource Agency Bokpoort – Regulatory Permits

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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