Grid Access Unit Small and Micro Generator frame-work key focus areas Date : 18 April 2013

Small and Micro-Generation (<1 MW) Framework Cost Recovery Process excellence,application, quotation, contracting Engagement with Industry/ Munics Technical requirements (Eskom Technology and Dx) Areas to be addressed Database Help desk and Organisation Measures to be put in place Aspiration (2013) Set up an additional leg to the GAU to manage service relationship, stakeholder management and interfaces related to SMG’s Define and implement technical rules for evaluation, connection and operation. Establish resource capability to integrate SMG’s across business Develop an optimised IPP connection process Define operations process for SMG Establish pricing policy and cost recovery framework Build IPP intelligence framework and capability (inside and out) Establish clear accountability Improve Eskom’s image and reputation in dealing with SMG’s Achieve non- discriminatory grid access for SMG’s Effective organization with process excellence in SMG connection and operation

Small and Micro Generation Types Gen Customer DB Distribution Network Own Use/ Load Reduction Meter (Load) Meter (Gen) Gen Customer DB Distribution Network Own Use Supplemental/ Energy Banking/Offset Meter (Load) Gen Distribution Network Third Party Wheeling Meter (Gen) Less than 1MW installed capacity and zero export at all times Category 1: less than 350kW export Category 2: greater than 350kW export

Process and resource interface for key stages Process and System to cater for multiple access points Physical connection established Application Evaluation Customer Quotation and Contracting Key Stages Monthly Reconcilliation of Account Customer Relationship Management Call Centers Walk in Centers GAU Energy Advisors Application Investigation and Engineering requirements assessment Budget Quotation for connection Connection and Use of System Agreement Establishment of new supply agreement Process Discrimination for <350kW Process Discrimination for >350kW Licensing and power purchase agreement applications Validation / PPA approval Upfront Costs Project Management & Construction of POC DOE Application IDM RE application Self Gen Application

Engagement with Industry / Municipalities Engagement with SABS on regulation of NRS standards, NERSA with respect to licensing, and DOE with the FIT’s Establish process for IDM renewable program integration Establish process used by large Munics and Metros Establish process for roll out SMG by DOE Integration with SALGA and AMEU

Technical Requirements Technical Planning guideline for connection available Resource and operational execution challenge NRS 097 – 2 complete and implementable Operational change management – DX (Wires) system integration Resource and training requirements Certification process and contractor accreditation Pilot sites for billing reconciliation Billing system adequate for pricing policy Update of Embedded Generation Standard Purchase Contract settlement Single Buyers Office integration – Budget management and monthly settlements Metering technology available AMI integration SPU application only technically possible but with system limitations PPU application not possible currently

Thank you