Wind & Storage Project Duqm| 19/05/2015| Page 1 RAPϞ/P/2A003/BRE/15/035 – Rev0 Wind to power the city of Duqm: the need and opportunities for storage for enjoying the full benefits of an energy transition In cooperation with

Wind & Storage Project Duqm| 19/05/2015| Page 2 RAPϞ/P/2A003/BRE/15/035 – Rev0 Who are we? Combining wind and sea-water pumped storage in Duqm? What an idea… Renewable, unaffordable source of energy? Storage, why is this necessary? Why in Duqm? Why not a combined wind and storage project on the MIS? What conclusions? Content

Wind & Storage Project Duqm| 19/05/2015| Page 3 RAPϞ/P/2A003/BRE/15/035 – Rev0 RAP Energy : Project investor and developer in the field of renewable energy generation, transmission and storage, providing Technical/design solutions Financing solutions Construction and operation Projects Offshore wind farms Innovative storage solutions Offshore grids Rent-A-Port Energy

Wind & Storage Project Duqm| 19/05/2015| Page 4 RAPϞ/P/2A003/BRE/15/035 – Rev0 OTARY : participations in 3 offshore wind farms (based on experience from C-Power/Thornton Bank) Rentel Seastar ~ 780MW RAPϞ : ~ 80 MW Mermaid Plug at Sea : participation in the structure aimed to develop the project of a common infrastructure connecting 4 future OWF as a first step of Belgian Offshore Grid, together with Belgian TSO Elia Storage Luxembourg : participation in a project to develop a PHS plant in Belgium based on project financing Storage Zeebrugge: participation in a project of offshore energy island Storage Duqm : participation in a project of combined renewable + sea water pumped storage for Off-grid application Rent-A-Port Energy - participations

Wind & Storage Project Duqm| 19/05/2015| Page 5 RAPϞ/P/2A003/BRE/15/035 – Rev0 What an idea…

Wind & Storage Project Duqm| 19/05/2015| Page 6 RAPϞ/P/2A003/BRE/15/035 – Rev0 What an idea… Wind to Power a new city in Oman High wind potential - capacity factors of about 40% in Duqm (Spain: 20-25%, Germany: 15-20%) Feed-in tariff of 115USD/MWh enough to cover cost of debts of 8% and cost of equity of 14% Good match with MIS demand seasonal pattern

Wind & Storage Project Duqm| 19/05/2015| Page 7 RAPϞ/P/2A003/BRE/15/035 – Rev0 What an idea… Okinawa – JapanIsland of El Hiero - Spain Sea Water Pumped Hydro Energy Storage Balancing on the grid. Fresh Water Pumped Hydro Energy Storage combined with on-shore wind farm to power an isolated grid. Pumped Hydro Storage possible with cliffs along the sea

Wind & Storage Project Duqm| 19/05/2015| Page 8 RAPϞ/P/2A003/BRE/15/035 – Rev0 What an idea… Pumped Hydro Storage possible with cliffs along the sea

Wind & Storage Project Duqm| 19/05/2015| Page 9 RAPϞ/P/2A003/BRE/15/035 – Rev0 What an idea… Pumped Hydro Storage possible with cliffs along the sea

Wind & Storage Project Duqm| 19/05/2015| Page 10 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is it affordable? Is renewable affordable? Generation costs Diesel (CAPEX 300USD/kW) Vs. Wind Power & Solar PV power (CAPEX prices 2013)

Wind & Storage Project Duqm| 19/05/2015| Page 11 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is it affordable? Is renewable affordable, even after being stored? Additional costs for storage, energy losses (efficiency 73%)

Wind & Storage Project Duqm| 19/05/2015| Page 12 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? But why is storage necessary then, if making renewable more expensive? Because renewable cannot be controlled (ramped up/dimmed) on demand... Because above certain shares in the mix, Renewable sources need to be curtailed during low demand situations and high production Significant back-up capacity needed in case no renewable source would be available (no or few wind) Frequency regulation becomes challenging

Wind & Storage Project Duqm| 19/05/2015| Page 13 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? Above a certain share in the mix? Which share? Solar: +/- 15% || Wind: +/- 10%

Wind & Storage Project Duqm| 19/05/2015| Page 14 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? Above a certain share in the mix? Which share? Solar: +/- 15% || Wind: +/- 10%

Wind & Storage Project Duqm| 19/05/2015| Page 15 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? To what extent can storage help? From intermittent RES to RES “on demand”

Wind & Storage Project Duqm| 19/05/2015| Page 16 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? To what extent can storage help? Storage can also provide other services Peak shaving and thermal generation stabilization

Wind & Storage Project Duqm| 19/05/2015| Page 17 RAPϞ/P/2A003/BRE/15/035 – Rev0 Is storage necessary? To what extent can storage help? Storage can also provide other services Peak shaving and thermal generation stabilization Reserve and balancing services

Wind & Storage Project Duqm| 19/05/2015| Page 18 RAPϞ/P/2A003/BRE/15/035 – Rev0 Sharply increasing demand and high peaks: l ow plant factors and cost-efficiency for diesel Starting from “green field”. Low demand at early stages, even with low installed capacity, wind can quickly represent significant share in the mix. Integration as full alternative from the first stages of development. Why in Duqm?

Wind & Storage Project Duqm| 19/05/2015| Page 19 RAPϞ/P/2A003/BRE/15/035 – Rev0 Few social-environmental constraints Possible modular growth Why in Duqm?

Wind & Storage Project Duqm| 19/05/2015| Page 20 RAPϞ/P/2A003/BRE/15/035 – Rev0 Why not on the MIS? Because a huge renewable shares potential already exists without needing storage? 10% max share is 700MW today (1.2 bnUSD CAPEX) growing with 250MW (425 mUSD) every 5 years...

Wind & Storage Project Duqm| 19/05/2015| Page 21 RAPϞ/P/2A003/BRE/15/035 – Rev0 Because stored renewables are less competitive on the MIS, as MIS is not an “off-grid” context. On grid environments are rather conducive for grid services for storage plants, not for combination with renewables. Why not on the MIS?

Wind & Storage Project Duqm| 19/05/2015| Page 22 RAPϞ/P/2A003/BRE/15/035 – Rev0 Purpose of storage on the MIS would be: Peak shaving and thermal generation stabilization Reserve and balancing services Why not on the MIS?

Wind & Storage Project Duqm| 19/05/2015| Page 23 RAPϞ/P/2A003/BRE/15/035 – Rev0 A storage facility of 20MW would allow to produce about 50% of the energy needs for Duqm for the 10 next years with a gradually growing wind farm (from about 50MW in first phases to 150MW after 10 years). Wind up to a share of 50%, facilitated with storage, heads towards cost-optimal mix with diesel. Generation costs decrease with 15% compared to 100% diesel. 6 mio barrels saved (ecologic footprint halved!). Without that storage facility, potential share in the mix for wind power is restricted to 15%. On the longer term, a 20MW storage can also provide balancing services on a much larger grid (Cf. Okinawa 30 MW) Conclusions of Feasibility Study?

Wind & Storage Project Duqm| 19/05/2015| Page 24 RAPϞ/P/2A003/BRE/15/035 – Rev0 Thank You - شكرا Questions?