1. Renewable Energy IPP Procurement Programme Window two Preferred Bidders announcement 21 May 2012 Slide 1

2. Introduction The procurement documents were released on the 03 of August 2011 and compulsory bidders conference for the first and second window on the 14 of September 2011. The document provides for procurement of 3725MW in five different rounds subject to the availability of the MW The Department. Under round one: –Received 53 Bids on the 4 th of November –Announced 28 preferred bidders in December 2011 With regards to round two: –Received 79 bids on the 5 th of March 2012 –These bids amount to 3255MW whilst the cap was 1275MW

3. Procurement documents Part A: General Requirements and Rules Part B: Qualification Criteria Part C: Economic Development Request for Proposals Wind PPA Solar PPA Small hydro CSP PPA Power Purchase Agreement Contract between the IPP and the Department Obligation for IPP to deliver on economic development In buyer default – Department to pay the IPP Implementation Agreement Procurement Process Background To be concluded in Phase 2

4. Contractual Arrangement IPPGovernmentEskom Government Framework Support Agreement Implementation Agreement Power Purchase Agreement

5. Request for Proposal (RFP) Requirements Rules RFP Part A Environment Land Economic Develop Finance Technical Price Capacity RFP Part B Qualification Price Job creation Local content Preferential Procurement Enterprise Development Socio-economic development RFP Part C Comparative Evaluation Procurement Process Background

6. PART C EVALUATION 6 Price 70 % 30 % ED Job creation Socio Economic Local content Project cost Rand/MW

7. OVERVIEW OF EVALUATION PROCESS 7

8. Evaluation team: International reviewers Legal review – Linklaters (UK) Technical review – Blueprint consult Financial review – cross-moderation between the two Financial Advisory firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan Edward Nathan Sonneberg Ledwaba Mazwai Webber Wentzel BKS Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC International reviewers Legal review – Linklaters (UK) Technical review – Blueprint consult Financial review – cross-moderation between the two Financial Advisory firms Governance review – Ernst & Young Legal evaluation team Bowman Gilfillan Edward Nathan Sonneberg Ledwaba Mazwai Webber Wentzel BKS Technical evaluation team Matt Macdonald Financial evaluation team Ernst & Young PWC Evaluation Streams: Legal Environment Environmental Authorization Legal Land Land right Notarial lease registration Proof of land use application Legal Commercial Acceptance of the PPA Project structure Economic Development Contributor status level 5 Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Legal Environment Environmental Authorization Legal Land Land right Notarial lease registration Proof of land use application Legal Commercial Acceptance of the PPA Project structure Economic Development Contributor status level 5 Compliance with threshold Financial Full and partial price indexation Technical Eligibility Energy resource Evaluation Composition

9. PREFERRED BIDDERS 9

10. Preferred Bidders Summary 10 No of Bids MW taken by Preferred Bidders Maximum MW allocated for round 2 Solar photovoltaic 9417.1450 Wind7562.5650 Small Hydro214.375 CSP150.0050 TOTAL 1 043.9

11. Preferred Bidders Solar Photovoltaic 11 IPPIDProject Name MW 168Solar Capital De Aar 375.0 207Sishen Solar Facility74.0 373Aurora9.0 375Vredendal8.8 523Linde36.8 527Dreunberg69.6 562Jasper Power Company75.0 750Boshoff Solar Park60.0 764Upington Solar PV8.9 TOTAL417.1

12. Preferred Bidders Salient Terms Solar Photovoltaic 12 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 1 645R 2 758 MW allocation417 MW 632 MW Total Project Cost (Rmillion)R12 048 R21 937 Local Content Value (Rmillion)R5 727R6 261 Local Content %47.5% 28.5% Job Creation : Construction (People) 4 557 10 386 Job Creation : Operations (People) 194221

13. Preferred Bidders Wind 13 IPPIDProject Name MW 014 Gouda Wind Facility135.2 240 Amakhala Emoyeni (Phase 1) Eastern Cape137.9 303 Tsitsikamma Community Wind Farm94.8 309 West Coast 190.8 362 Waainek23.4 364 Grassridge59.8 372 Chaba20.6 TOTAL562.5

14. Preferred Bidders Salient Terms Wind 14 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 897R 1 143 MW allocation563 MW 634 MW Total Project Cost (Rmillion)R 10 897 R 12 724 Local Content Value (Rmillion)R 4 001R 2 766 Local Content %36.7% 21.7% Job Creation : Construction (People) 1 5791 869 Job Creation : Operations (People) 65128

15. Preferred Bidders Small Hydro 15 IPPIDProject Name MW 490Stortemelk Hydro (Pty) Ltd 4.3 815Neusberg Hydro Electric Project A 10.0 TOTAL 14.3

16. Preferred Bidders Salient Terms Small Hydro 16 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 1 030N/A MW allocation14 MW N/A Total Project Cost (Rmillion)R 631 N/A Local Content Value (Rmillion)R 421N/A Local Content %66.7%N/A Job Creation : Construction (People) 261 N/A Job Creation : Operations (People) 7 N/A

17. Preferred Bidder Concentrated Solar Power 17 IPPIDProject Name MW 002Bokpoort CSP Project50.0 TOTAL 50.0

18. Preferred Bidder Salient Terms Concentrated Solar Power 18 Bid Window 2Bid Window 1 Price: Fully Indexed (Ave Rand per MWh) R 2 512R 2 686 MW allocation50 MW 150 MW Total Project Cost (Rmillion)R 4 483 R 11 365 Local Content Value (Rmillion)R 1 638R 2 391 Local Content %36.5% 21.0% Job Creation : Construction (People) 6621 165 Job Creation : Operations (People) 5070

19. Preferred Bidders Job creation per Province 19 Description Jobs during construction period Jobs during operations period BW2 Eastern Cape Province 1 02664 Free State Province 14032 Limpopo Province 00 Northern Cape Province 4 709151 North-West Province 00 Western Cape Province 1 18481 TOTAL7 059328

20. Preferred Bidders Investment per Province 20 Description Total Project Cost (ZAR million) Local content value (ZAR million) Northern Cape 12 359 5 837 Eastern Cape 8 649 3 171 Western Cape 4 684 1 829 Free State 2 367 950 TOTAL 28 059 11 787

21. Analysis of MW allocation and remaining MW Technology MW allocation in accordance with the Determination MW capacity allocated in the First Bid Submission Phase MW capacity allocated in the Second Bid Submission Phase MW capacity for allocation in future Bid Submission Phases Onshore wind1 850.0 MW634.0 MW562.5 MW 653.5 MW Solar photovoltaic1 450.0 MW631.5 MW417.1 MW 401.1 MW Concentrated solar power 200.0 MW150.0 MW50.0 MW 0.0 MW Small hydro ( 10MW)75.0 MW0.0 MW14.3 MW 60.7 MW Landfill gas25.0 MW0.0 MW 25.0 MW Biomass12.5 MW0.0 MW 12.5 MW Biogas12.5 MW0.0 MW 12.5 MW Total 3 625.0 MW 1 415.5 MW1 043.9 MW 1 165.6 MW

22. Preferred Bidders Geographic Distribution 22

23. THANK YOU 23