Hélimax Energie inc Strategic Studyon Wind Energy Development in Africa Strategic Study on Wind Energy Development in Africa Presented by Mr. Louis Robert, MPM Vice-president, Helimax Energy Presented to African Development Bank (AfDB) Tunis Wind Energy Conference Presented by Mr. Louis Robert, MPM Vice-president, Helimax Energy Presented to African Development Bank (AfDB) Tunis Wind Energy Conference October 28th, 2004

Hélimax Énergie inc Page 2 Outline +Helimax in a few words +Wind Energy in the World +Presentation of the wind energy study –Background and Overall objective –Methodology –Results and conclusions of the reports –Recommendations

Hélimax Énergie inc Page 3 Helimax in a few Words +Leading wind energy consulting company in Canada –Projects/mandates in 9 of the 10 Canadian provinces / in 20 countries +Multidisciplinary team dedicated to wind energy. Among our team: –6 scientists including 4 meteorologists –11 engineers (various disciplines) –2 masters in project management –2 economists and specialists in the environment –3 support staff (administration and accounting) +Presence nationally and internationally: –Québec : 30% –Canada (outside Québec) : 40% –International : 30%

Hélimax Énergie inc Page 4 Wind Energy in the World +Wind energy is clean, community friendly, and renewable. +Wind Turbine Generator (WTG) is a proven and reliable technology. +Approximately 40,000 megawatts (MW) of wind installed worldwide by the end of Wind farms in operation in 52 countries by the end of Average annual growth rate of about 32% over the past 10 years.

Hélimax Énergie inc Page 5 Wind Energy in the World +Investments on the order of US$ 10 billion in Increasingly competitive with conventional generation due to ongoing reduction in price per kWh produced. +Major players in the energy and financing sectors have become involved. +Wind is no longer a marginal source of energy.

Hélimax Énergie inc Page 6 Wind Energy in the World

Hélimax Énergie inc Page 7 Background and Overall Objective of the Study Commissioned by:African Development Bank (AfDB) Supported by:Canadian International Development Agency (CIDA) Performed by:Helimax Energy Inc. The overall objective of the Study was to promote investments in wind energy projects in Africa.

Hélimax Énergie inc Page 8 Methodology The methodology was divided into 5 steps: A.Wind mapping of Africa continent (53 countries) at a resolution of 50 km. B. Analysis of institutional and regulatory framework of countries with high wind energy potential

Hélimax Énergie inc Page 9 Methodology (Cont’d) C. Technical, economic, social and environmental analysis of countries with high wind energy potential D. Development of a strategic plan for wind energy deployment in Africa. E. Search for financial partners interested in investing in wind energy projects in Africa.

Hélimax Énergie inc Page 10 A. Meso-scale Wind Mapping of Africa +Wind map produced using Helimax’s expertise with MC2-WEST. +WEST stands for Wind Energy Simulation Toolkit. +Dynamic, 3-Dimensional Atmospheric Model developed by Environment Canada, based on MC2. +Sources of information : NCEP/NCAR, Retscreen-NASA, Helimax knowledge, wind atlas, publically available information, pressure pattern, topographical maps.

Hélimax Énergie inc Page 11 A. Meso-scale Wind Mapping of Africa CONCLUSION report A : 15 countries endowed with excellent wind resource Southern Africa : South Africa, Lesotho, Madagascar, Mauritius Eastern Africa : Djibouti, Eritrea, Seychelles, Somalia North Africa : Algeria, Egypt, Morocco, Tunisia West Africa: Cape Verde, Mauritania Central Africa: Chad

Hélimax Énergie inc Page 12 B-C. Analysis of the country situations +Analysis of the 15 countries endowed with high wind energy potential +From a policy, institutional, legislative, and regulatory point of view +From a technical, economic, social, and environmental point of view CONCLUSION reports B & C : + the 15 countries can be grouped based on the similarities of their national situations

Hélimax Énergie inc Page 13 B.-C. Similar country situations Group 1 Morocco Tunisia Group 2 South Africa Algeria Egypt SIMILARITIES + Policy in favour of wind energy + Legal/regulatory framework in place + Rapid growth of the electricity demand + Wind farms up and running, others under dev. + Fossil fuel imports SIMILARITIES + Abundant fossil fuel + Cheap electricity generation cost + Huge emission reduction potential + Strong interest from various stakeholders + Capacity to establish a new industry and create jobs

Hélimax Énergie inc Page 14 B.-C. Similar country situations Group 3 Cape Verde Eritrea Madagascar Mauritania Somalia Group 4 Djibouti Lesotho Mauritius Seychelles Chad SIMILARITIES + Interest in wind energy + Need to extend the supply of electricity to not served population + Small scale projects in remote areas or connected to small local grid + Investments restrictions SIMILARITIES + Not yet taken a stance + Possible environmental constraints (cyclone) + Possible other sources of energy more appropriate: - Geothermal, Djibouti - Hydro, Lesotho - Photovoltaic, Chad - Bio-combustibles, Mauritius/Seychelles

Hélimax Énergie inc Page 15 FIRST DISCUSSION PERIOD +Questions? +Commentaires / comments? +Suggestions?

Hélimax Énergie inc Page 16 D. Identification of the main barriers +Legal and regulatory –Lack of framework promoting private investment –Lack of framework promoting wind power production +Economic and Financial –Incremental cost of wind energy –Exacting financing conditions because of the risk +Technical –Limited knowledge of both the national wind resource and the electrical grid features –Lack of wind power projects portfolio +Lack of information and training –Limited knowledge of wind energy, lack of qualified people, little experience in IPP, lack of experience sharing and coordination

Hélimax Énergie inc Page 17 D. Profitability of large scale wind power projects

Hélimax Énergie inc Page 18 D. Strategic Plan Objective 1: +Implementation of the required conditions for the development of wind energy. +Design and implementation of adequate institutional and regulatory framework, specifically to favour private development +Production of wind maps of high resolution +Study of electrical grid integration +National capacity building in all aspects relating to wind +Development of demonstration projects +Promotion of wind energy to pertinent institutions.

Hélimax Énergie inc Page 19 D. Strategic Plan Objective 2: +Implementation of viable commercial wind energy projects. +Raising the interest of private sponsors and other potential investors in wind energy opportunities in Africa +Mobilizing required funds for project preparation +Performing feasibility studies and developing most promising wind energy projects +Financing and implementing two or three wind power projects totaling an installed capacity of 140 MW in Africa leading countries

Hélimax Énergie inc Page 20 Recommendations It is recommended that the AfDB: +Keep promoting wind energy projects as one of its focus areas of action during the period Focus its action on a limited number of countries showing a different situations such as: Tunisia, Morocco, South Africa Mauritania, Madagascar, Cape Verde, Mauritius, Eritrea Others,… Selection criteria: -Excellent wind resource -Mix of large scale and small scale projects -Mix of advanced and less advanced countries with regard to wind energy -Potential of greenhouse gas emission reductions -One or two countries showing industrial capacity to implement a manufacturing plant

Hélimax Énergie inc Page 21 Recommendations +Address the needs of rural areas through the development of small wind energy (hybrid) systems for remote areas and small local grids. +Address the needs of urban areas through the development of grid-connected utility scale wind farms. +Develop a close collaboration with the most interested financial/institutional/governmental partners. +Develop a close collaboration with one or two sponsor/IPPs developer that will show the highest interest.

Hélimax Énergie inc Page 22 Recommendations +Support, on a country by country basis, the design and the financing of specific wind energy programme/projects to be started in 2005 in the target countries. +Confirm the collaboration with the most interested partners and secure part of the required funds to launch/pursue wind/ energy programmes/projects in 2005.

Hélimax Énergie inc Page 23 SECOND DISCUSSION PERIOD +Questions? +Commentaires / comments? +Recommandations / recommendations?