1 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 1 Ivanpah SEGS: Case Study for Hybridization Binyamin Koretz Director, Strategic Planning & IP

2 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 2 What is Ivanpah SEGS? What were we trying to accomplish? What kind of hybrid system did we build? What can we do in the future? Outline

3 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 3 The Ivanpah SEGS Project Equity owners: NRG, Google, BrightSource Equity owners: NRG, Google, BrightSource Debt: $1.6B DOE Loan Guarantee Debt: $1.6B DOE Loan Guarantee EPC Contractor: Bechtel EPC Contractor: Bechtel STGs: Siemens STGs: Siemens SRSGs: Riley Power SRSGs: Riley Power Solar field supply chain mgmt: BrightSource Solar field supply chain mgmt: BrightSource 377 MW net electricity generation 377 MW net electricity generation 20+ year contracts with PG&E (2 units) and SCE (1 unit) 20+ year contracts with PG&E (2 units) and SCE (1 unit) Start of construction – October 2010 Start of construction – October 2010 $2.2B project financing – April 2011 $2.2B project financing – April 2011 commercial operations – 2013 commercial operations – 2013

4 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 4 The Ivanpah SEGS Project Forced-recirculation drum-type boilers with SH to 160 bar and RH Forced-recirculation drum-type boilers with SH to 160 bar and RH 140m towers 140m towers 173,500 heliostats, each 15m 2 173,500 heliostats, each 15m 2 Photo taken April 2013

5 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 5 Photo taken April 2013 Ivanpah SEGS

6 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 6 Photo taken April 2013 Ivanpah SEGS

7 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 7 Photo taken April 2013 Ivanpah SEGS

8 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 8 Ivanpah SEGS – last week

9 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 9 Full-size gas-fired boiler justified by a 15% gas allowance and the PPA tariff Our message to regulators was: Higher gas allowance can provide network reliability benefits to facilitate integration of solar thermal plants in the California grid, with lower carbon and other emissions than system power from incremental reserves and peaking units What were we trying to accomplish?

10 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 10 The California regulatory system still does not support hybrid solar-gas plants There has been no framework for procurement of renewable energy and resource adequacy in the same PPA Very difficult public permitting processes Environmental opposition to adding gas to renewables 2% de minimis use with incidental electricity generation (up to 5% under certain conditions) Overnight/startup use without incidental electricity generation not counted in the 2% 5% overall limit on fossil input as % of all heat inputs What did we accomplish?

11 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 11 A light hybrid (like the first Prius cars) We installed package boilers with output equivalent to ~17MWe at poor heat rate We use gas-fired steam for: Preheating SH and RH panels to accelerate morning startup Cooling-down SH and RH panels for pre-shutdown cooldown Night preservation boiler Solar boost at IP inlet IP-only turbine mode What kind of hybrid did we build?

12 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 12 Optimal hybrid configuration will depend on many factors Availability and cost of gas Public policy Site characteristics With little or no gas then MS tower could be more cost- effective if storage is required With limited gas (15-25%) direct steam towers with MS storage can provide an optimal solution with boiler or storage plus independent (gas-fired) superheater With enough gas there is no need for storage, and a gas-solar hybrid can be the lowest-cost solution for completely dispatchable power with a high renewable component – which may also be achieved with solar augmentation of fossil- fueled plants What can we do in the future?

13 Proprietary & Confidential © 2012 BrightSource Energy, Inc. All rights reserved. © BrightSource Energy, Inc. All rights reserved. 13 Thank you