Solar-PV in South AfricaMARKET UPDATE AND PROJECTS MAP 2013

PV Project Development Summit Africa

Identify PV project opportunities across Southern Africa to boost your pipeline in utility and industrial markets

The must attend event for PV developers, EPC groups, technology providers and investors who are looking to identify PV project opportunities across Southern Africa to boost their pipeline in utility and industrial markets.

www.pv-insider.com/africa

27-28 August, Johannesburg

REIPPP UPDATE • PROJECT LISTINGS • DIRECT NORMAL IRRADIATION DATA MAP

PV Insider are pleased to present you with the PV South Africa Market Update & Projects Map 2013, in association with the exciting launch of PV Project Development Africa 2013, taking place in Johannesburg on 27-28 August.

This guide details the very latest updates in South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP). Furthermore, we have provided two PV plant maps that detail the size and location of 27 PV projects that successfully won bids in the fi rst and second rounds of the REIPPP, as well as detailed Global Horizontal Irradiance (GHI) data for South Africa.

Renewable Energy Independent Power Producer Programme 2010-2013

In March 2011 South Africa’s Department of Energy (DOE) fi nalised details of the Integrated Resource Plan (IRP), a 20-year blueprint that showed the government’s commitment to energy from renewable sources. The IRP indicated that renewable energy will make up a substantial 42% of all new electricity generation (totalling 17,800MW) from 2010-2030, and gave strong backing to Wind, Solar Photovoltaics (PV) and Concentrated Solar Power (CSP) within this new energy mix. Under the IRP the DOE committed to produce 8400MW from PV, 8400MW from Wind and 1000MW from CSP through the Renewable Energy Independent Power Producer Programme (REIPPP).

REIPPP Round I

By December 2011 the Department of Energy had received 53 bids across all the different technologies, awarding 28 projects to independent power producers made up of 632MW of PV, 150MW of CSP and 634MW of Wind.

In total 18 PV projects were awarded preferred bid status, ranging from 5MW-75MW in capacity. (For further information on these projects see the REIPPP Round I - Project List & Map)

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Project Developer Net Capacity (MW) Location

SlimSun Swartland Solar Park SlimSun 5.0 Swartland, Western Cape

RustMo1 Solar Farm Momentous Energy 6.8 Rustenburg, North-West Province

Mulilo Renewable Energy Solar PV De Aar Gestamp Mulilo Consortium 9.7 De Aar, Northern Cape

Konkoonsies Solar Limarco 77 (Pty) Ltd 9.7 Pofadder, Northern Cape

Aries Solar Sevenstones 159 (Pty.) Ltd. 9.7 Kenhardt, Northern Cape

Greefspan PV Power Plant AE-AMD Independent Power Producer 1 (Pty) Ltd (AE–AMD Renewable Energy is a union between Spanish firm AMDAenergía SA and local renewable firm ALT-E Technologies 10.0 Douglas, Northern Cape

Herbert PV Power Plant AE-AMD Independent Power Producer 1 (Pty) Ltd 19.9 Douglas, Northern Cape

Mulilo Renewable Energy Solar PV Prieska Gestamp Mulilo Consortium 19.9 Prieska, Northern Cape

Soutpan Solar Park Erika Energy (Pty) Ltd 28.0 Waterberg, Limpopo

Witkop Solar Park Core Energy (Pty) Ltd 30.0 Waterberg, Limpopo

Touwsrivier Project Soitec Energy and Scheider Electric Energy. CPV Power Plant No. 1 36.0 Aquila Private Game Reserve. Touwsrivier, Western Cape

De Aar Solar PV South Africa Mainstream Renewable Power De Aar PV (Pty) Ltd 48.3 Pixley Ka seme, Northern Cape

South Africa Mainstream Renewable Power Droogfontein South Africa Mainstream Renewable Power Droogfontein (Proprietary) Ltd 48.3 Kimberley, Northern Cape

Letsatsi Power Company Intikon Energy, a South African developer of renewable energy projects,Consortium consisting of Kensani Capital Investments (Pty) Ltd, SolarReserve South Africa (Pty) Ltd and Oakleaf Investment Holdings 80 (Pty) Ltd 64.0 Bloemfontein, Free State

Lesedi Power Company Intikon Energy, a South African developer of renewable energy projects,Consortium consisting of SolarReserve South Africa (Pty) Ltd, Kensani Capital Investments (Pty) Ltd and Oakleaf Investment Holdings 80 (Pty) Ltd 64.0 Postmasburg, Northern Cape

Kalkbult Scatec Solar 72.5 Kalbult, North-West Province

Kathu Solar Energy Facility Lokian Trading & Investments (Pty) Limited 75.0 Kathu, Northern Cape

Solar Capital De Aar (Pty) Ltd Inca de Aar Solar (Pty). Solar Capital De Aar (Pty) Ltd 75.0 De Aar, Northern Cape

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REIPPP Round I - Project List

REIPPP Round I Project Map

Annual sum of direct normal irradiation, average 1994-2012

<1400 1550 18501700 2000 23002150 2450 2600 2900 2900 > kWh/m2

0 100 200 km0 100 200 km

DNI index

Cape Town ■

■ Pretoria

Johannesburg ■■ Soweto

■ Durban

■ Bloemfontein

■ Kimberly■ Upington

■ George

■ East london

■ Pietermaritzburg

■ Sihlangu

■ Mbabane

■ Port Elizabeth

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REIPPP Round II

The bidding for window II of the REIPPP closed on 5 March 2012 with a total of 79 bids received. The total capacity of bids amounted to 3,255MW, far exceeding the cap that was set at 1,275MW across all technologies. As with the fi rst round, wind and solar-PV dominated with 9 projects totalling 417.1MW for solar PV and 7 projects totalling 562.5MW for wind. In addition, 2 small hydro projects totalling 14.3MW and 1 CSP project

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totalling 50MW were also given preferred bidder status. The 19 projects together represent 1,043.9MW of a total of 1,225MW allocated for the second round.

In total 9 PV projects were awarded preferred bid status, ranging from 8.8MW-75MW in capacity. (For further information on these projects see the REIPPP Round II - Project List & Map).

Project Developer Net Capacity (MW) Location

Solar Capital De Aar 3 Moncada Energy Group SRL & Solar Capital (Pty) Ltd 75.0 De Aar, Northern Cape

Sishen Solar Facility ACCIONA Energy (ANA) and Aveng Grinaker-LTA (AGL) 74.0 Dibeng, Deben, Northern Cape

Aurora Solar Park Solairedirect 9.0 Aurora, West Coast DC, Western Cape

Vredendal Solar Park Solairedirect 8.8 Vredendal, Western Cape

Linde Scatec Solar 36.8 De Aar, Northern Cape

Dreunberg Scatec Solar 69.6 Dreunberg, Eastern Cape

Jasper PV Project SolarReserve 75 Postmasburg, Northern Cape

Boshoff Solar Park SunEdison 60 Boshof, Free State

Upington Solar PV Enel Green Power 8.9 Upington, Northern Cape

REIPPP Round 2 - Project List

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REIPPP Round II Project Map

Annual sum of direct normal irradiation, average 1994-2012

<1400 1550 18501700 2000 23002150 2450 2600 2900 2900 > kWh/m2

0 100 200 km0 100 200 km

DNI index

Cape Town ■

■ Pretoria

Johannesburg ■■ Soweto

■ Durban

■ Bloemfontein

■ Kimberly■ Upington

■ George

■ East london

■ Pietermaritzburg

■ Sihlangu

■ Mbabane

■ Port Elizabeth

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REIPPP Round III Delays In September 2012 the DOE announced delays to Round III of the REIPPP. These delays are mainly due to the diffi culty in advancing fi rst round projects to fi nancial close, with this deadline initially scheduled for 20 June 2012, being pushed back to October 2012.

The need to focus on fi nancial closure for projects selected during the fi rst two bidding rounds has had a knock on effect. Currently PV’s MW allocation in Round III stands at 405MW and the bid submission date is set for 19 August 2013, more than 12 months later than expected.

The signifi cance of the REIPPP delays for PV in South Africa is the impact this has had on long-term market certainty. Large investments have been made by developers, EPC groups and others in the development of projects. However, the push back in fi nancial close for Round I has resulted in a lack of clarity in how many MW’s will be available in the 4th and 5th Rounds. This in turn makes it diffi cult for developers, EPC groups, manufacturers, and lenders to commit more resources to the development of projects.

Round II delays

Bid submission date 5 March 2012

Financial closure deadline 13 December 2012 | 11 - 22 Feb 2013 | March 18/28 2013 | April 2013

Round III delays

Bid submission date 20 Aug 2012 | 1 October 2012 | 7 May 2013 | 19 August 2013

Financial closure deadline 31 May 2013 | 1 to 12 Jul 2013 | N/A

Round I delays

Bid submission date 4 November 2011

Financial closure deadline 20th June 2012 | 9 to 20 July 2012 | October 2012

Current Overview of REIPPP Delays

For any questions or feedback about the Market Update and Projects Map contact:

Jack Ahearne on jack@pv-insider.com

For more information about PV Project Development Africa 2013 (27-28 August, Johannesburg), including the full agenda, speaker list and networking opportunities please visit:

www.pv-insider.com/africa