1. Hélimax Energie inc. www.helimax.com 20-10- 2004 Strategic Studyon Wind Energy Development in Africa Strategic Study on Wind Energy Development in Africa Presented by Mr. Louis Robert, MPM Vice-president, Helimax Energy Presented to African Development Bank (AfDB) Tunis Wind Energy Conference Presented by Mr. Louis Robert, MPM Vice-president, Helimax Energy Presented to African Development Bank (AfDB) Tunis Wind Energy Conference October 28th, 2004

2. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 2 Outline +Helimax in a few words +Wind Energy in the World +Presentation of the wind energy study –Background and Overall objective –Methodology –Results and conclusions of the reports –Recommendations

3. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 3 Helimax in a few Words +Leading wind energy consulting company in Canada –Projects/mandates in 9 of the 10 Canadian provinces / in 20 countries +Multidisciplinary team dedicated to wind energy. Among our team: –6 scientists including 4 meteorologists –11 engineers (various disciplines) –2 masters in project management –2 economists and specialists in the environment –3 support staff (administration and accounting) +Presence nationally and internationally: –Québec : 30% –Canada (outside Québec) : 40% –International : 30%

4. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 4 Wind Energy in the World +Wind energy is clean, community friendly, and renewable. +Wind Turbine Generator (WTG) is a proven and reliable technology. +Approximately 40,000 megawatts (MW) of wind installed worldwide by the end of 2003. +Wind farms in operation in 52 countries by the end of 2003. +Average annual growth rate of about 32% over the past 10 years.

5. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 5 Wind Energy in the World +Investments on the order of US$ 10 billion in 2003. +Increasingly competitive with conventional generation due to ongoing reduction in price per kWh produced. +Major players in the energy and financing sectors have become involved. +Wind is no longer a marginal source of energy.

6. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 6 Wind Energy in the World

7. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 7 Background and Overall Objective of the Study Commissioned by:African Development Bank (AfDB) Supported by:Canadian International Development Agency (CIDA) Performed by:Helimax Energy Inc. The overall objective of the Study was to promote investments in wind energy projects in Africa.

8. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 8 Methodology The methodology was divided into 5 steps: A.Wind mapping of Africa continent (53 countries) at a resolution of 50 km. B. Analysis of institutional and regulatory framework of countries with high wind energy potential

9. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 9 Methodology (Cont’d) C. Technical, economic, social and environmental analysis of countries with high wind energy potential D. Development of a strategic plan for wind energy deployment in Africa. E. Search for financial partners interested in investing in wind energy projects in Africa.

10. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 10 A. Meso-scale Wind Mapping of Africa +Wind map produced using Helimax’s expertise with MC2-WEST. +WEST stands for Wind Energy Simulation Toolkit. +Dynamic, 3-Dimensional Atmospheric Model developed by Environment Canada, based on MC2. +Sources of information : NCEP/NCAR, Retscreen-NASA, Helimax knowledge, wind atlas, publically available information, pressure pattern, topographical maps.

11. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 11 A. Meso-scale Wind Mapping of Africa CONCLUSION report A : 15 countries endowed with excellent wind resource Southern Africa : South Africa, Lesotho, Madagascar, Mauritius Eastern Africa : Djibouti, Eritrea, Seychelles, Somalia North Africa : Algeria, Egypt, Morocco, Tunisia West Africa: Cape Verde, Mauritania Central Africa: Chad

12. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 12 B-C. Analysis of the country situations +Analysis of the 15 countries endowed with high wind energy potential +From a policy, institutional, legislative, and regulatory point of view +From a technical, economic, social, and environmental point of view CONCLUSION reports B & C : + the 15 countries can be grouped based on the similarities of their national situations

13. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 13 B.-C. Similar country situations Group 1 Morocco Tunisia Group 2 South Africa Algeria Egypt SIMILARITIES + Policy in favour of wind energy + Legal/regulatory framework in place + Rapid growth of the electricity demand + Wind farms up and running, others under dev. + Fossil fuel imports SIMILARITIES + Abundant fossil fuel + Cheap electricity generation cost + Huge emission reduction potential + Strong interest from various stakeholders + Capacity to establish a new industry and create jobs

14. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 14 B.-C. Similar country situations Group 3 Cape Verde Eritrea Madagascar Mauritania Somalia Group 4 Djibouti Lesotho Mauritius Seychelles Chad SIMILARITIES + Interest in wind energy + Need to extend the supply of electricity to not served population + Small scale projects in remote areas or connected to small local grid + Investments restrictions SIMILARITIES + Not yet taken a stance + Possible environmental constraints (cyclone) + Possible other sources of energy more appropriate: - Geothermal, Djibouti - Hydro, Lesotho - Photovoltaic, Chad - Bio-combustibles, Mauritius/Seychelles

15. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 15 FIRST DISCUSSION PERIOD +Questions? +Commentaires / comments? +Suggestions?

16. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 16 D. Identification of the main barriers +Legal and regulatory –Lack of framework promoting private investment –Lack of framework promoting wind power production +Economic and Financial –Incremental cost of wind energy –Exacting financing conditions because of the risk +Technical –Limited knowledge of both the national wind resource and the electrical grid features –Lack of wind power projects portfolio +Lack of information and training –Limited knowledge of wind energy, lack of qualified people, little experience in IPP, lack of experience sharing and coordination

17. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 17 D. Profitability of large scale wind power projects

18. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 18 D. Strategic Plan 2005-2010 Objective 1: +Implementation of the required conditions for the development of wind energy. +Design and implementation of adequate institutional and regulatory framework, specifically to favour private development +Production of wind maps of high resolution +Study of electrical grid integration +National capacity building in all aspects relating to wind +Development of demonstration projects +Promotion of wind energy to pertinent institutions.

19. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 19 D. Strategic Plan 2005-2010 Objective 2: +Implementation of viable commercial wind energy projects. +Raising the interest of private sponsors and other potential investors in wind energy opportunities in Africa +Mobilizing required funds for project preparation +Performing feasibility studies and developing most promising wind energy projects +Financing and implementing two or three wind power projects totaling an installed capacity of 140 MW in Africa leading countries

20. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 20 Recommendations It is recommended that the AfDB: +Keep promoting wind energy projects as one of its focus areas of action during the period 2005-2010. +Focus its action on a limited number of countries showing a different situations such as: Tunisia, Morocco, South Africa Mauritania, Madagascar, Cape Verde, Mauritius, Eritrea Others,… Selection criteria: -Excellent wind resource -Mix of large scale and small scale projects -Mix of advanced and less advanced countries with regard to wind energy -Potential of greenhouse gas emission reductions -One or two countries showing industrial capacity to implement a manufacturing plant

21. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 21 Recommendations +Address the needs of rural areas through the development of small wind energy (hybrid) systems for remote areas and small local grids. +Address the needs of urban areas through the development of grid-connected utility scale wind farms. +Develop a close collaboration with the most interested financial/institutional/governmental partners. +Develop a close collaboration with one or two sponsor/IPPs developer that will show the highest interest.

22. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 22 Recommendations +Support, on a country by country basis, the design and the financing of specific wind energy programme/projects to be started in 2005 in the target countries. +Confirm the collaboration with the most interested partners and secure part of the required funds to launch/pursue wind/ energy programmes/projects in 2005.

23. Hélimax Énergie inc. www.helimax.com 28-10-2004 Page 23 SECOND DISCUSSION PERIOD +Questions? +Commentaires / comments? +Recommandations / recommendations?