TM

USA 1999 Harrison Street, Suite 500, Oakland, California 94612, Tel. (510) 550 8161, Fax. (510) 550 8165 www.BrightSourceEnergy.com

ISRAEL 11 Kiryat Mada St., Har Hotzvim, P.O.Box 45220, Jerusalem 91450, Tel. +972 77 202 5000, Fax. +972 2 571 1059 www.luz2.com

TM

Overview of Renewable Resources

v Several types of Renewable Resources- Geothermal- Biomass- Wind- Solar

v Different categories of Solar- Photovoltaic - Solar Thermal

v CSP – Concentrating Solar Power- Solar Thermal Power

TM

Renewable Technology Challenges

v Land- BLM - State- Private

v Transmission- Various transmission initiatives – RETI- Over 50,000 MW in CAISO queue- Intermittent resources

TM

Renewable Portfolio Standardswww.dsireusa.org

WECC Total = 8.6% in 2017☼ Minimum solar or customer-sited RE requirement

* Increased credit for solar or customer-sited RE**Includes separate tier of non-renewable “alternative” energy resources

WI: requirement varies by utility; 10% by 2015 goal

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

TX: 5,880 MW by 2015

☼ AZ: 15% by 2025

CA: 20% by 2010

☼ *NV: 20% by 2015

☼ CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)

MT: 15% by 2015

IL: 25% by 2025

*WA: 15% by 2020

OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)

MO: 11% by 2020

☼ NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)

☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)

ND: 10% by 2015

SD: 10% by 2015

*UT: 20% by 2025☼ OH: 25%** by 2025

State Goal

State RPS

Solar water heating eligible

TM

Company SnapshotMission: Become the world’s leading developer, builder, operator,

and owner of solar energy projects.v Business:

Ø Develop and build large-scale solar power generation plants at prices that compete with fossil-fuel plants, using proprietary technology

Ø Develop and build solar-to-steam plants for industrial applications, such as thermal Enhanced Oil Recovery (EOR)

v Financial Strength:Ø Over $160M in corporate financing from key strategic investors

including: VantagePoint Venture Partners, Google.org, BP Alternative Energy, Black River, Draper Fisher Jurvetson, DBL Investors (a spin-off from JP Morgan), and Chevron Technology Ventures.

v Locations:Ø Headquarters in Oakland, California, 25 full-time employeesØ Subsidiary Luz II in Jerusalem, Israel, 75 full-time employees

5Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

v Arnold Goldman: ChairmanØ Was Founder and CEO of original Luz International

v John Woolard: CEOØ Was Founder and CEO of Silicon Energy

v Jack Jenkins-Stark: CFOØ Was CFO of Silicon Valley Bank; SVP of PG&E

v Israel Kroizer: President, Luz II (Israel)Ø Was EVP of original Luz International

v Patrick Francois: Global Development and Finance ExecutiveØ Was Head of US Operations of original Luz International

v Yoel Gilon: SVP, Research and Development of Luz II (Israel)Ø Was VP System Design and Performance of original Luz International

v Charlie Ricker: SVP, Marketing & Business DevelopmentØ Has senior executive experience in power generation and project management

v Tom Doyle: SVP, Project DevelopmentØ Was SVP of InterGen

v Joshua Bar-Lev: VP, Regulatory AffairsØ Was Chief Counsel at PG&E and General Counsel of original Luz International

Experienced Management Team

6Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Market

7Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Solar Power Market Dynamics

8

Timing of solar power generation correlates with consumer demand

CO2 regulations increase cost of power

Other Factors Driving Solar Power Market:• Real or anticipated state regulatory actions vis-à-vis carbon emissions

and costs associated with compliance• Ratings agencies downgrading companies with large carbon footprints• Growing public support for clean power generation• Escalation of power prices due to increasing cost of fossil fuels

Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

California Renewables MarketAdditional RenewableRequired by RPSAdditional Renewable

Required by RPS

5.4GW 16.2GW

Notes: Total US renewables market is several times the size of the California renewables market.European renewables market is at least as big as the US renewables marketAsian renewables market, with focus on India and China, is 2-3 times the US renewables market.Potential total renewables market: US = 50GW, EU = 50GW, Asia = 150GW, World = 300GW.Addressable market for central solar power @ $2K/KW: US = $100B, World = $600B.

Sources: California Energy Commission and North American Electric Reliability Council

9Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Annual U.S. Solar Radiation (NREL)

10Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Economic Impact of 100MW Solar Plant

CALIFORNIA NEW MEXICO NEVADA

Private Investment $280 Million $198 Million Not Estimated

Gross State Product $626 Million $465 Million $482 Million

Employee Earnings $195 Million $75 Million $406 Million

Jobs 3,955 Job Years 2,120 Jobs 7, 170 Job Years

Note: The studies utilized differing assumptions and varying “high to low”scenarios, costs, and impact models for the different states.Source: NREL (National Renewable Energy Laboratory)

11Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Technology

12Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Principal Solar Thermal Technologies

Solar Parabolic Trough (US)

Stirling Solar Dish (US)

11MW Power Tower (Spain)

120m2

heliostats

115m tall tower

Tubes w/synthetic oil

Stirling engine

13Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Dynamic Power Towers (DPT)

14

Heliostats

Solar Boiler

Tower

PowerBlock *

7m2 Heliostat

* Air cooled

Heliostats

Solar Boiler

Tower

CalibrationTarget

Water & Steam

PowerBlock *

7m2 Heliostat

* Air cooledProprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

How Does DPT 550 Work?

Steam Condenser

Solar TowerHeliostat

Steam 550°C

165 BarElectric

Generator

AirCooling

Solar Boiler

ConventionalPower Block

Solar Field

15Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

DPT Plant Components

16Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

400MW Ivanpah Solar Power Complex

Complex will provide enough power for 250,000 homes, and reduce CO2 by 500,000 TPY

17Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Solar Energy Development Center *

* Built and operated by Luz II, Ltd., BrightSource’s wholly owned subsidiary

Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved. 18

TM

6 MW Demonstration Plant in Rotem

TM

Factor SEGS VI (Trough)

OptimumTrough BPT 550 BPT 650

Temperature (0C) 3700 4000 5500 6500

Solar to ThermalEfficiency

35% 40% 50% 50%

Gross Thermal toElectrical Efficiency

37% 39% 43% 46%

Parasitic Power 14% 12% 5% 6%

Solar to ElectricalEfficiency

11% 14% 20% 22%

Relative CostPer kWh

100% 90% 70% 63%

Comparison: Troughs vs. DPT

20Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Solar Thermal CompaniesTECHNOLOGY COMPANY COMMENTS

Parabolic Troughs Solel (Israel) Proven technology, less efficient, higher capital cost, new to project development

Parabolic Troughs Solar Millennium (Germany)

Similar characteristics to Solel

Parabolic Troughs Acciona / Solargenix (Spain)

Proven technology, new trough plants in Nevada and Spain, strong owner

Parabolic TroughsPower Towers

Abengoa / Solucar (Spain)

Proven technology, new trough plant and new 11MW power tower in Spain, financially strong.

Distributed Power Towers BrightSource (US) Proven technology, more efficient, lower capital cost, most solar experience, solid financing

21Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Solar Thermal Companies, continued

TECHNOLOGY COMPANY COMMENTS

Fresnel Reflectors Ausra (US & Australia)

Operates below trough temperatures, less capital cost than troughs, relies on storage

Conventional Power Tower

Solar Reserve (US) Original power tower technology, which depends on molten salt storage to be cost-effective

Power Towers eSolar (US) Variant of power tower design - no details available

Stirling Engines Stirling Energy (US) Direct power production, has had difficulties scaling up technology, engine maintenance is a cost issue

Other Solar Thermal Start-Ups

Various Different issues for different companies, including technology questions, project development experience, and financial strength

22Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Project Development

23Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Pisgah Substation

Primary BSE Development Sites

24

Mormon Mesa

Siberia

Ivanpah

Eldorado

Lugo

Broadwell

Victorville

Mesquite Valley

Kramer

BrightSource Development Sites Transmission Substations Major Transmission Lines

Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Primary Development Site DetailsSITE ACRES MW TRANSMISSION COMMENTS

Ivanpah, CA 3,500 400 (1) Applied to Cal ISO Applied to BLM for ROW, submitted first solar thermal AFC to CEC in 20 years

Broadwell Lake, CA 6,500 800 (2) Applied to Cal ISO Applied to BLM

Siberia, CA 3,500 400 Applied to Cal ISO Applied to BLM

Mormon Mesa, NV 15,000 2,000 NV transmission Site recommended by BLM

Mesquite Valley, CA 6,000 600 Studying

requirements Site recommended by BLM

GRAND TOTALS 34,500 4,200

25Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

1. Two 100MW plants and one 200MW plant2. Four 200MW plants

TM

Summary

26Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

v Strong management team:Ø Includes all of the key senior managers of Luz International, which designed and built

more than 350 MW of solar thermal plants built in the 1980’sØ World class project development team with over 20GW of power projects developed,

constructed, and managed

v Advanced business activities:Ø Signed largest solar power contract ever made – 900MW with PG&EØ In detailed negotiations with other major utilities for additional PPAsØ Actively developing sites for more than 4GW of solar thermal generating capacityØ First project, the Ivanpah 400MW Solar Power Complex, is well advanced with

construction expected to start in 2009

BrightSource Energy Summary

27Proprietary & Confidential © 2008 BrightSource Energy, Inc. All rights reserved.

TM

Renewable Industry Summary

vRenewables are the Future- Reduce carbon emissions- Improve economy by decreasing dependence on foreign oil- Provide long term jobs

v Challenges that must be met- Investment tax credits to bridge gap- Land acquisition- Transmission of 21st century

v Leadership

TM

TM

TM