Future Jordan Virtual Power Plant EEEMF Jordan 2015 Energy Economy & Energy Management Forum For Mena & Fourth Renewable Energy National Dialogue –Amman May 2015 By Eng. S.Mohamad ALAYA LEBANON

Agenda EEEMF Jordan Introduction 2.Jordan electricity market 3.Jordan Virtual Power Plant 4.Jordan financials - VPP capacity - Profit and loss analysis - Scenario analysis - Cash flow from VPP - Total investment - Investment schedule - Investment schedule Local partners - Profit to local community

Introduction  Teaming up with is a leading technology owner company in the field of development and deployment Virtual Power Plants (VPP´s) having proven record in the VPP application and implementation

Why Virtual Power Plants ? -Costly infrastructure with long lead times for new projects -Public resistance against new projects (transmission and distribution lines, nuclear, coal, etc.) -Increasing share of RES -Higher security of supply -Increasing consumption -Environmental issues -Value chain optimization -Increasing revenues EEEMF Jordan 2015

Optimizing energy value chain EEEMF Jordan 2015

© cyberGRID 2012 Current situation in energy market Energy shortage: Demand 2500 MW Supply 1560 MW Current cost of providing energy: $5.5 million a day $2 Billion yearly Demand: Increasing demand average 10% annually $2,3 mio of peak demand in February 2012 Power rationing 6-12 hours Current proposed solution: Power boats 270 MW Cost of 0,33$ per kWh

Jordan VPP solution Capacity: 300 MW through 3 years Demand response: Emergency situations (tertiary reserve) Requested response ( maintenance works) Investors: SUPERGRID, Local partners Investment $14.1 million through 3 years Timeline: Technical investigation proposal 2 nd half of 2015 Demonstrational project 2015/2016 EEEMF Jordan 2015

VPP financials EEEMF Jordan VPP capacity - Profit and loss analysis - Scenario analysis - Cash flow from VPP - Total investment - Investment schedule - Investment schedule Local partners - Profit to local community

VPP capacity Risk limitation: Client availability 60% Risk limitation: Client availability 60% VPP capacity through years In MW FY0FY1FY2FY3FY4FY5 Total Available Capacity MW offered on the market EEEMF Jordan2015

Profit and Loss analysis Total sales: $6.7 mio (FY1) to $20.1 mio (FY3) (Revenue per kWh 19 $cents) Gross margin: Approaching 50% Depreciation: 10 years linear EBIT $1,17 mio (FY1) to $9.16 mio (FY3) Total sales and EBITDA In 000´ $ EEEMF Jordan 2015 In 000´ $FY0FY1FY2FY3FY4FY5 Total revenues Cost of Goods Sold Total EBITDA Depreciation EBIT

Scenario analysis Sales revenue in scenario analysis In 000´ $ Scenario parameters (market risk): Load size (0,2-0,3) Client availability ( 50-70%) EEEMF 2015 In 000´ $FY0FY1FY2FY3FY4FY5 Average Sales Total EBITDA Low Sales Total EBITDA High Sales Total EBITDA

CF and profit distribution EEEMF Jordan 2015 Operating CF and profit distribution In 000´ $ Income tax assumed: 25% Payout ratio: 0.8 Assuming investments from partners In 000´ $FY0FY1FY2FY3FY4FY5 Operating Cashflow Cumulative Operating Cashflow Owner draw - dividends

Total Investment with expansion: $14.1 million Total investment EEEMF Jordan 2015 Total investment and Dividends In 000´ $ Project profitability: NPV: $ 39 million IRR: 78% Payback: 2.8 years P.B.P. In 000´ $FY0FY1FY2FY3FY4FY5 Owner draw - dividends Total Investment Cumulative CF

© cyberGRID 2012 Investment schedule In 000´ $FY0FY1FY2FY3FY4FY5 Total investment Dividends Cumulative CF Total investment and Dividends ( In 000´ $) P.B.P. Project profitability: NPV: $ 18.6 million IRR: 78% Payback: 2.8 years

Local partners investment schedule In 000´ $FY0FY1FY2FY3FY4FY5 Total investment Dividends Net CF Cumulative CF Total investment and Dividends Local partners ( In 000´ $) P.B.P. Project profitability: NPV: $ 20.4 million IRR: 78% Payback: 2.8 years EEEMF Jordan 2015

Profit distribution to community Share of revenues to the industries: 30% (COGS) Excess capacity payment: 50% Payments to industries in Lebanon In 000´ $ EEEMF Jordan 2015 Profit distribution to local community (In 000' $)FY0FY1FY2FY3FY4FY5 Average High Low

Lebanon Demand Response Center cyberGRID GmbH