1. The New Energy Landscape: Key drivers of the Energy Future

2. Kazakhstan has extensive natural resources Kazakhstan is the world’s 8th by the amount of proven reserves of coal and 9th by the proven reserves of oil fact ► Estimated lifetime of proven reserves, years Main energy sources for power industry in Kazakhstan 70% 14,6% 10,6% 4,9% Coal Hydro Gas Oil Source: Statistics Agency of RK

3. Kazakhstan power generation industry is not efficient Kazakhstan power generating capacity, GW Kazakhstan energy balance More than 40% of all Kazakhstan’s energy is produced by only 3 major power plant located near coal mines fact ► 82,7 85,9 77,9 67,9 71,7 76,6 83,8 87,9 80,3 78,7 65 70 75 80 85 90 2006200720082009201020112012 bln kWh Electricity consumptionElectricity production Source: Statistics Agency of RK

4. Power generation system doesn’t fit the inhabitation pattern fact ► Over 60% of Kazakhstan population lives in small towns and rural areas Population density, people/km 2 & energy network map 23 2 Power networkGas network Source: Statistics Agency of RK

5. Kazakhstan has a potential for alternative power generation fact ► In Kazakhstan now only 0,2% of energy is produced from renewables sources Wind speed distribution & solar irradiation map 9 m/s 3 m/s wind speed 5-6 DNI> 7 DNIsolar activity (For example, Spain average DNI is 5) Source: Statistics Agency of RK

6. Decreasing costs of renewables makes them affordable fact ► Every 250 km distance from the mine adds 1 cent to the cost of electricity produced from coal Cost of solar power generation (LCOE) Cost of wind power generation (LCOE) Source: Alternative Energy eTrack, www.alternativeenergyetrack.com 0 0,05 0,1 0,15 0,2 0,25 2011201220132014201520162017 Diesel generator LCOE Coal power plant LCOE 0 0,02 0,04 0,06 0,08 0,1 2011201220132014201520162017 Coal power plant LCOE

7. Energy storage provides utilities with reliable low-cost energy source fact ► Power storage implementation allows to:  Enhance profitability & adoption of renewable generation  Unlink supply and demand to reduce peak-power infrastructure Capital cost of storage, $/kWh 2500 2200 1500 1200 800 600 400 0 500 1000 1500 2000 250 0 3000 201120122013201420152016 2017 Cost per cycle, cent/kWh 15 20 10 8 6 4 3 0 5 15 20 25 2011201220132014201520162017 Source: Alternative Energy eTrack, www.alternativeenergyetrack.com

8. Energy efficient solutions can alleviate the energy deficit fact ► Kazakhstan Government aims to save up to 10% of electric energy through implementation of energy efficient technologies in 3 years Methods increasing energy efficiency Waste-heat utilization Power usage optimization Digital control systems Boiler Insulation Results of implementation (energy savings)Energy-efficient solutions 10% 4-5% 7-8% 2-3%

9. Kazakhstan power generation damages environment fact ► Kazakhstan is the global leader in CO 2 emissions per capita 84,89 99,21 104 107 101,89 95,57 96,2 80 85 90 95 100 105 110 2005200620072008200920102011 CO 2 emissions from power production, total (million tons) CO 2 emissions (tons per capita) 7,5 8 8,1 8,3 8,1 8 12 11,7 14,2 14,6 14 14,1 6 7 8 9 10 11 12 13 14 15 16 2005200620072008200920102011 Kazakhstan Average of Western EU countries Source: IndexMundi

10. Selected Bright Capital’s Portfolio Energy Efficiency Renewable energy

11. Kazakhstan government sees the importance of innovations in energy sector, and more to be done fact ► Our recommendations: Access to the cutting edge technology through technology transfer as the major vehicle, leveraged by sovereign capital Fast forward integration of modern technology through: - investing in and co-operation with leading international venture capital and PE funds; -Setting up local technologies deployment and seed funds. Support local academic institutions and international research collaboration to find talent and educate specialists in respective fields

12. Contacts Managing Partner Bright Capital rba@bright-capital.com Boris Ryabov