1. 1 Schneider Electric Energy and Supply Services Efficiency in Israel: based on international roadmap For Energy experience Philippe Brami – March 5 th 2016

2. 2 Energy & Sustainability Services >As an unbiased, independent consultant, we work with clients in more than 100 countries; from regional companies to the world’s largest corporations Ranked 9th Schneider Electric is 9th in the 100 most sustainable corporations in the world 2014 Corporate sustainability is a critical element of business strategy. We take pride in helping our customers reduce their energy spend and impact on the environment. Jean-Pascal Tricoire CEO, Schneider Electric “ ” >We share your passion for sustainability and efficiency

3. 3 Confidential Property of Schneider Electric From a Supply & Demand Dilemma >Peak demand can present challenges to the electricity grid, especially in the event of severe weather >Reserve power fell to 800 MW and blackouts occurred in parts of the country last August when demand peaked to 12.8 GW during heat wave. >New all-time peak demand was set in September as a result of severe sandstorm (12.9 GW) >New winter peak demands have already been set this year >Israel’s reserve margin has been historically lower than developed nations >Growing reliance on gas for significant power generation has risk as infrastructure is developed >The guidelines set by the regulator (PUA) for gas shortages call for gasoil or fuel oil to be used by the IEC >Historical 2011-2012 gas shortage as example of impact on tariff pricing and reliability >In lieu of operating expensive peak load generation, greater utilization of demand response and energy efficiency programs can act as a “virtual power plant” >Our understanding of the local situation

4. 4 Enable your Roadmap Energy Funding Political Image Technology Facility operations People Engagement Tap new funding and invest little or nothing upfront Give the public high profile advances in sustainable energy projects Maximise energy and utility efficiency and plan for future use Educate and change behaviours that impact budgets and the environment Modernise technology and improve communications >Incorporating energy and sustainability management

5. 5 Confidential Property of Schneider Electric Creating the vision while maximising the investment return Every Kwh you save through conservation or efficiency measures is budget that can be spent elsewhere on capital improvements. Additional Budget for capital improvements Energy savedSchneider Electric’s know how

6. 6 Confidential Property of Schneider Electric Energy Efficiency & Reliability >Integrated building management systems >Power metering >Smart grid solutions >Power distribution >Mechanical and HVAC retrofits Renewable Technologies >Solar photovoltaic solutions >Electric vehicle (EV) charging stations >ENERGY STAR®/LEED® certifications >Wind energy solutions Lighting >Street lighting retrofits >Traffic signal retrofits >Occupancy sensors >Indoor lighting retrofits >Daylight harvesting Water/wastewater >Energy management control - SCADA >Blower control/VFD upgrades >Electrical infrastructure upgrades >Right-sizing blowers >Pump replacements 1 2 4 3 1 2 3 4 5 6 7 8 9 10 5 6 7 8 9 The possibilities 10 11 10 11 >Our capabilities can enable your ultimate vision. Energy Procurement Services >Tariff optimization >Sourcing of suppliers >Data visualization >Supplier bill checking

7. 7 Confidential Property of Schneider Electric The roadmap Strategic Legislative Exchange Project Design & Financial Model Execute & Deliver Construction Agreement Performance Guarantee OUTPUT Deep dive review Legislative benchmarking Data collections Facility optimization Sustainability insight Political & People engagement Energy efficiency & Demand response programs objective setting In depth review and benchmarking of legislation; creation of roadmap with globally best in class incentives scheme Co-develop energy conservation measures/scope Determine renewable energy scope/public-private partnership Determine final fixed cost of project Develop project cash flow scenarios Arrange financing Develop project scope, savings & cost Clarity around savings potential and objectives Provide professional project management Provide turnkey construction services Implement energy conservation measures (lighting, renewables, energy management, mechanical & HVAC, etc) Manage project timeline Commissioning Client training Deliver best-in-class installation Project design and financial model report Guaranteed energy savings project; upgraded infrastructure Your energy vision realized with guaranteed results Provide customized, continuous support and verification of energy savings Measurement and verification Remote system monitoring and optimization Renewable system performance On-going support services On-site energy and sustainability planning Training and technical support Savings reports Annual reconciliation 1 23 4 Local Schneider Electric Business Unit implementation and Project Management ……………………………… ESS Design

8. 8 Our expertise : What happening with Legislation elsewhere? Pag e 8 Confidential Property of Schneider Electric |

9. 9 Confidential Property of Schneider Electric Energy Efficiency in EU >EU Energy Efficiency -EU has committed to increasing energy efficiency by 20% to meet 2020 objectives in-line with Kyoto Protocol. Initiatives were delegated to individual countries within the EU to address this EU-wide target. -In 2012, the EU introduced the Energy Efficiency Directive, which was required to be transposed into law in each Member State, which continued supporting voluntary initiatives across industries in EU or in certain cases and for certain target groups actually driving a shift from voluntary targets to compliance -In-country individual initiatives: Around 20 voluntary agreements of different types (completely voluntary or enforced via tax or regulations) have been introduced across the EU, some of them were revisited or abolished, while in other countries are still in place including (Belgium, Finland, France, Ireland, Italy, Germany, Luxembourg, Netherlands, UK) -Review Process: There is no pan-EU strategy on EE agreements. In some countries voluntary agreements still remained as a key tool to achieve EE target and proved to be quite successful in achieving overall country EE and GHG reduction targets: -Netherlands (22% from industrial sector in 1990-2000), -Germany (reduction of 35% of emissions compared to 1990 emissions was achieved in 2010) -Finland ( 9% annual energy saving for 2008-2016 with nearly 70% of the reported annual energy savings attained in industry. European EE results

10. 10 Page 10 Confidential Property of Schneider Electric | Energy Incentive Industry Overview >Utilities offer rebates for multiple reasons: >New power plants & distribution lines are expensive to build >Regulatory hurdles to building a power plant >Costs of running a power plant are variable (fuel, labor, maintenance) >Mandates by local Public Utility Commissions to reduce energy usage >Each year in the U.S., $4 billion+ is available in rebates/incentives dedicated to energy-efficiency projects. >Currently, utilities offer approximately 35,000 rebate/incentive opportunities for energy-efficiency technologies for commercial businesses. Custom and Prescriptive Processing in North America

11. 11 Incentives Available by State/Territory

12. 12 Confidential Property of Schneider Electric Demand Side Response in EU >Overview >EU Energy Efficiency Directive Art. 15 >Multiple Countries have active DSR programs or in process of design >Differing options available, Examples -Price based Capacity Provision -Balancing -Ancillary – Frequency Response/Fast Reserve -Consumer Cost Incentive >Schneider Electric Active Scheme Expertise, Examples -EU Wide: Strategic Orientation for End-User participation. Understanding of multiple options. -UK: TRIAD Management/Scheduling. 20 Years Experience. Influencing ~350MW per annum. -France: Capacity Provision/Scheduling -Norway: Interruption Contracts Map of European DSR Market

13. 13 Confidential Property of Schneider Electric The European Standard EN 15232 A key contribution to worldwide energy efficiency: >The standard describes methods for evaluating the influence of building automation and technical building management on the energy consumption of buildings.

14. 14 Confidential Property of Schneider Electric The European Standard EN 15232 A key contribution to worldwide energy efficiency:

15. 15 Confidential Property of Schneider Electric Germany - Energiewende

16. 16 Confidential Property of Schneider Electric Germany – Stromsteuer – Energy tax >A tax was implemented on energy cost >Part of it is aimed to finance renewable energy >This tax can be reduced under specific conditions >Renewable energy implemented >Energy saving action implemented

17. 17 Confidential Property of Schneider Electric France – Energy Efficiency Certificate

18. 18 Confidential Property of Schneider Electric France – Energy Efficiency Certificate >Compulsory Energy saving actions for the Energy vendors/distributors >For consumers: >Budgetary measure to encourage credit granting for renovation and energy efficiency actions >When done, the consumer is granted to Energy Efficiency Certificate – to free themselves from the obligation >Possibility to trade the certificate (similar to CO2 trade) >Applied in France since 2006 >Being reviewed in 2014

19. 19 Confidential Property of Schneider Electric Palestinian Authority – Revolving funds >Funding of project via “revolving funds” >Grants given to the end customer to finance part of EE projects >Savings are coming back to the fund – to finance other new projects >A dedicated team of technical experts validating the projects >Project promoted by the French government via AFD

20. 20 Pag e 20 Confidential Property of Schneider Electric |