1. 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

2. Agenda EEEMF Jordan 2015 1.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

3. 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

4. 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

5. Optimizing energy value chain EEEMF Jordan 2015

6. © 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

7. 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

8. VPP financials EEEMF Jordan 2015 - VPP capacity - Profit and loss analysis - Scenario analysis - Cash flow from VPP - Total investment - Investment schedule - Investment schedule Local partners - Profit to local community

9. VPP capacity Risk limitation: Client availability 60% Risk limitation: Client availability 60% VPP capacity through years In MW FY0FY1FY2FY3FY4FY5 Total Available Capacity0100200300 MW offered on the market060120180 EEEMF Jordan2015

10. 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 revenues067321346520197 Cost of Goods Sold Total0507784831157510062 EBITDA016564981862210135 Depreciation0482730977 EBIT01173425276459158

11. 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 067321346520197 EBITDA016554980862210134 Low Sales Total 056101122016831 EBITDA01248400970338283 High Sales Total 078541570923563 EBITDA0206259531021011986

12. 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 Cashflow01373394967627906 Cumulative Operating Cashflow013725321120831998927895 Owner draw - dividends01098425796671599122316

13. 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 - dividends010984257104672044734596 Total Investment236137666444970273418166 Cumulative CF-2361-5029-7216-6451665533084

14. © cyberGRID 2012 Investment schedule In 000´ $FY0FY1FY2FY3FY4FY5 Total investment-1180-1666-1984 00 Dividends052320294608762310639 Cumulative CF-1180-2323-2278347797018609 Total investment and Dividends ( In 000´ $) P.B.P. Project profitability: NPV: $ 18.6 million IRR: 78% Payback: 2.8 years

15. Local partners investment schedule In 000´ $FY0FY1FY2FY3FY4FY5 Total investment-1180-2100 00 Dividends057422275058836811677 Net CF-1180-15251282959836811677 Cumulative CF-1180-2706-2578381874920426 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

16. 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 Average0303060599089 High03534706910603 Low0252550497574

17. Lebanon Demand Response Center cyberGRID GmbH