1. Global Hybrid Power Systems Global Hybrid Power Systems Interactive Analyst Briefing Colin O’Hanlon 1st April 2003

2. Global Hybrid Power Systems 1st April 2003 Agenda Definitions Report Rational Market Overview Challenges Drivers Restraints The Hybrid Market Recommendations Questions and Answers

3. Global Hybrid Power Systems 1st April 2003 Definitions Frost and Sullivan defines a hybrid system as: “a system that includes two or more different sources of power, where at least one of them is a renewable.”

4. Global Hybrid Power Systems 1st April 2003 How do the technologies interact? 2002 2010? Biomass Fuel Cells Small Hydro Gen-sets Small Wind Photovoltaic Biomass Fuel Cells Small Hydro Gen-sets Small Wind Photovoltaic

5. Global Hybrid Power Systems 1st April 2003 Report Rational Market in developing countries showing potential for hybrid power systems. Market showing real signs of fast paced development (Dutch companies, Enel, Turbowinds all developing new products). No other report gives such a detailed insight in the global market. The market potential is there. This report was able to quantify this potential.

6. Global Hybrid Power Systems 1st April 2003 Market Overview CAGR is 22% Future growth from village electrification Telecoms currently a niche market

7. Global Hybrid Power Systems 1st April 2003 Market Potential Analysis

8. Global Hybrid Power Systems 1st April 2003 Challenges Working closely with government and decision-making bodies will be vital to provide rural electrification solutions Increased sales volumes will lead to dramatic reduction in hybrid system costs Development without joint agreements between different manufacturers jeopardises mutual benefits Establishment of pilot projects will be critical in building confidence in systems

9. Global Hybrid Power Systems 1st April 2003 Drivers and Restraints Legislation/Government incentives Lowering costs of systems Success of pilot projects Developing countries High capital cost Lack decision maker’s awareness Lack of standardisation Lack of track record

10. Global Hybrid Power Systems 1st April 2003 The Hybrid Market Market Size was $169.9 million in 2002 Wind hybrid market leader is Southwest Windpower - agreements with solar companies such as BP Solar and Shell Solar Bergey - manufacturing in China.

11. Global Hybrid Power Systems 1st April 2003 Recommendations What are the strategies for success? Clear Definitions of Ownership for Projects Pilot Projects Partnerships Joint Agreements Distribution Networks

12. Global Hybrid Power Systems 1st April 2003 Any Questions? For more information call: +44 (0)20 7343 8383 email: enquiries@frost.com www.power.frost.com