Intersolar India Conference November 11 th, 2013 FROM NSM TO GRID PARITY MODELS: FEED-BACK FROM EXPERIENCE

SOLAIREDIRECT, GLOBAL PIONEER OF COMPETITIVE SOLAR POWER ENGINEERING AND GENERATION 2006: foundation of Solairedirect 2013: in the global top 10 solar power companies with 400 MW in operation/construction and MW under development Innovative integrated business model designed to cut costs and risks : project development, design and EPC, structured financing and legal engineering, O&M, power sales and grid services Mission: making solar power competitive with other sources of energy Public/private partnerships and local content manufacturing Innovative approach in engaging communities Presence across 5 continents Competitive bidder in government tenders and PPAs in France, India, South Africa, Chile and the US with prices down to less than 6 Rs/kWh Revenues of 126 M€ and net profit of 10 M€ (2012) with 250 employees 700 M€ raised in equity and project finance

SOLAIREDIRECT INDIA: SETTING THE STANDARDS IN COMPETITIVENESS AND DOMESTIC CONTENT Competitive solar power generation December 2011: best bidder in the NSM with a 7.49 Rs/kWh bid June 2013: selected in Punjab tender (20 MW) Domestic content manufacturing First projects (Pokaran, 16 MW) with cells, modules and inverters 100% made in India Official recognition Inauguration by his Excellency Dr. Farooq Abdullah in June 2013 Innovative offers and business models Private PPAs, hybrid power offers…

FEEDBACK FROM EXPERIENCE: HIGHLIGHTS AND CHALLENGES HIGHLIGHTS  Record timing for development, construction, grid connection and debt financing December 2011: selection of Solairedirect India as the best bidder in the NSM auction April 2012: securing of land and conversion June 2012: procurement of locally manufactured electrical systems (Schneider Electric), cells and modules (PV, crystalline silicon) August 2012: launch of construction of double 16 MW project by Solairedirect teams January 2013: completion of grid transmission line February 2013: commissioning of the solar park March 2013: closing of non recourse debt financing with State Bank of India  Optimal quality standards (joint Indian/European approach)  Record EPC costing (especially BOS) CHALLENGES  Availability of proper evacuation capacity  Availability/affordability of land in certain states (Punjab)  Maturity of equity markets (matching the risk/return profile of solar generation assets)

BEYOND GOVERNMENT TENDERS: INDIA’S POWER DEFICIT AS A CHANCE TO LEAPFROG Solar power generation still minuscule in India Only 1.7 GW installed at FYE 2013 (1.5% of world capacity, 0.2% of India’s total power generation) Present industry focus: government tenders NSM Phase 2 (750 MW), state programs (with mixed experience such as in Gujarat, Tamil Nadu…) The real opportunity: India’s growing power deficit Compelling case for an abundant, competitive, quick-to-deploy energy source, displacing imports (diesel…) How to unlock this extraordinarily huge potential? At around 6 Rs/kWh (escalated), everything becomes possible if… Global power shortfall (in GW, exc. OECD and China, source: Aggreko)

THE PATH TO GRID PARITY: DEVELOPING NEW BUSINESS MODELS, OVERCOMING CHALLENGES DEVELOPING NEW BUSINESS MODELS PPAs with large power users: private (cement, steel, manufacturing, retailers…) or public (municipalities, townships, business parks, utilities…) Trading on power markets (electricity and RECs) Energy services (hybrid power offers, rooftop leasing, demand response, mini-grids, smart grids…) Solar IPP and/or service provider, third-party financing OVERCOMING CHALLENGES Competitiveness versus otherwise subsidized energies Load profile matching Bankability of revenue models and counterparties Access to land and power evacuation Open access regulation and terms