Lahmeyer International 2013 Lahmeyer International GmbH Engineering and Consulting Services Energy Division; Business Unit Renewables and Economics CSP Technology Selection Kuno Schallenberg August 2013

Lahmeyer International 2013 Water Supply & Sanitation Hydropower & Water Resources Energy 2 Company Data Lahmeyer Group: 12 Affiliated Consolidated Companies Foundation: 1966 Headquarter: Bad Vilbel, Germany Employees (2012): 1560 (Group) Turnover (2012):157 million Euro (Group) Sites: Company Sites and Subsidiaries in 21 Countries Projects: In 165 Countries Activity: Technical and economic planning and consulting services Fields (Group): Building & Transportation

Lahmeyer International 2013 Biomass & Waste Wind Solar 3 Key Data Business Unit Renewables and Economics (BU2) Lahmeyer Historyworking in hydropower business since 50 years, in new and renewable energy in Renewables:business since 25 years Scope BU2:all non-traditional renewable energies: solar, wind, biomass&waste, geothermal energy Employees (2012): 59 Turnover (2012):12 million Euro Projects: In more than 90 Countries Activity: Technical and economic planning and consulting services Geothermal Energy

Lahmeyer International 2013 Range of Services Betriebsphase Feasibility Studies Due Diligence Conceptual Planning Project Management and Quality Assurance Planning, Tendering and Purchasing Design Review Operation and Maintenance Management Construction and Erection Supervision Training for Design, Project Management and Operation Commissioning Operation PhasePre-Investment PhaseImplementation Phase Start of Operation Market Analyses, Energy Economic Studies Defects Liability Management Option: Contract Award EPC Rehabilitation 4 Detailed Design Contract Management

Lahmeyer International 2013 General Process Diagram CSP Plant 5 Reflector Absorber Thermodynamic Process Thermal Energy Generator Kinetic Energy Concentrated Solar Radiation Storage Fuel Emissions Auxiliary Input Fuel Inputs Power Block Thermal Energy Storage Solar Field Thermal Energy Parabolic Trough (PT) Tower (T)Fresnel (F)Dish (D) Solar Field Technologies

Lahmeyer International 2013 Possibilities for CSP Integration in Conventional Plants 6 GLPTHPT Selective Catalytic Reduction Economizer Steam Gen. Superheater Reheater Feedwater Heater Deaerator Secondary Air Desulphurisation

Lahmeyer International 2013 Annual solar to electric efficiency vs. Technical maturity 77

Lahmeyer International 2013 Site Sensitive Conditions 8 Parabolic Trough (PT) Tower (T)Fresnel (F)Dish (D) Site Shape/Slope Wind Speed Modularity Water Consumption Financing /

Lahmeyer International 2013 High Risk Components/Characteristics 9 End hoses and ball joints Steam generator Limited cost reduction possibilities Receiver functionality and longevity Heliostat Control System Limited storage options Steam control during transient conditions Leakage of working fluid from Sterling Engine Optics Limited and unproven storage options

Lahmeyer International 2013 Solar Collectors/Field Solar Absorbers/Receiver/Engine Steam Generator Steam Turbine and Generator Thermal Energy Storage Plant Control Systems Performance Simulation/Model Construction Geotechnical 10 Potential Risk Categories (Examples)

Lahmeyer International 2013 Technology Risks (Examples) 11 RiskCausesMitigation Reduced availabilitymultiple technical failuresperformance guarantees Component failuresadverse environmental conditions poor maintenance accredited suppliers sufficient warranties on key components regular maintenance process monitoring spare part management supplier audits Interruptionscomponent breakdownbusiness interruption insurance Weak O&M qualityinexperienced contractorsverify availability and experience of O&M contractor assign experienced contractors conclude guarantees care for acceptance trial runs insure operational risks

Lahmeyer International 2013 LCOE Estimations Parabolic Trough – USD/MWh Tower – USD/MWh 12 Source (Trough) 2011 [USD/MWh]2020 [USD/MWh] Notes LowHighLowHigh IEA 2010a % dr 1 Fichtner S. Africa, 8% dr India wet/dry cooling Morocco wet/dry cooling Kutscher United States Hinkley Australia, 7% dr AT Kearney (Tower) Fichtner S. Africa, 8% dr India wet/dry cooling Morocco 220 wet/dry cooling Kolb United States Hinkley Australia, 7% dr AT Kearney : dr = Discount Rate Source: IEA-ETSAP and IRENA Technology Brief E10 – January 2013

Lahmeyer International 2013 Cost Uncertainty Level Source: World Bank, ESMAP, Cost Drivers Overview, % Parabolic Trough (PT) 20% Tower (T) >30% Fresnel (F) >30% Dish (D)

Lahmeyer International 2013 Cost Comparison Cost is a sensitive issue, and an important one Influencing factors on cost of CSP plants – Competitive situation of component suppliers (e.g. oligopoly) – Competitive situation of markets (e.g. generous Spanish CSP-tariffs) – Risk evaluation (e.g. new technologies, countries, companies’ infrastructure) – Irradiation influences energy yield and hence LEC 14

Lahmeyer International 2013 Bankability 15 Dish Sterling Solar Tower Linear Fresnel LOW HIGH LOW Perceived Risk Bankability Parabolic Trough

Lahmeyer International 2013 Market Status of CSP Technologies Source: CSP Today 16

Lahmeyer International 2013 Thank you for your Attention Questions? 17