AES Distributed Energy, Inc Solar + Energy Storage Project Kaua’i, Hawaii

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AES Serves 50M+

CUSTOMERS

36 GROSS GW

IN OPERATION

$15B Total 2015 Revenues

$7.8B of Projects

Under Construction

Founded 1981 4 Continents 17 Countries

S&P 200 20k+ Employees

$37B Total Assets

Owned & Managed

8 UTILITY

COMPANIES

About The AES Corporation Improving lives by providing safe, reliable and sustainable energy solutions in every market we serve

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AES Hawaii AES has a 25 year track record and presence in Hawaii and is committed to help the state reach its environmental goals

o  Supplying reliable electricity for ≈ 25 years o  Deliver ≈ 20% of HECO’s lowest cost energy

o  50 employees on island

o  Help Hawaii manage solid waste Ø  Tires, Spent fuels, Used oil

West Oahu Coal Power Plant

o  12 sites on Maui and Oahu ~9 MW o  AES has been selected by HECO to support

the evaluation of energy storage on Oahu

o  Active negotiations on wind in HI

Hawaii Projects in Development

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AES - Solar Experience

21 MW - Georgia

12 MW - Massachusetts 5.0 MW - Arizona

5.0 MW - US Virgin Islands 24 MW – Puerto Rico

Operating 158 MW

Under Construction 26 MW

Late Stage Development 300 MW

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Credit: GE

Kilroot Northern Ireland

Alamitos US-CA

Tait, US-OH

Laurel Mountain

US-WV

Northern Ireland Project #2

Angamos Chile

Cochrane Chile

Operations: 136 MW Construction: 67.5 MW Late Stage Development: 228 MW

IPL US-IN

Philippines Project

Texas Project

Dominican Republic Project

AdvancionTM Applications Center US-PA

Warrior Run, US-MD

Zeeland, Netherlands

Los Andes, Chile

AES - Energy Storage Projects 431.5 MW in Operation, Construction or Late Stage Development

SDG&E US-CA

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AES Lawai Project Location •  Lawa’i, Kaua’i, Hawaii

Basic Facts •  28 MW DC / 20 MW AC Solar PV

•  20 MW AC – 5 Hour Li-Ion Battery Energy Storage System (100 MWh)

•  51,226 MWh energy delivered year one

•  Single Axis Tracker crystalline PV plus Lithium Ion Energy Storage System

•  25 Year PPA and Interconnection Agreement Fully Executed with Kauai Island Utility Cooperative (KIUC)

•  100% of Energy Sold to KIUC

•  PPA and IA subject to Hawaii PUC approval

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AES Lawai Project Solar + Storage Concept •  The Solar PV system will be fully

integrated with the Battery Energy Storage System (BESS)

•  Energy from the solar will be stored in the BESS or delivered directly to the grid

System Purpose

•  KIUC will use the stored energy to reduce their evening peaks and provide consistent night-time power

•  This system will provide 11% of the islands power and offset an estimated 3.7 million gallons of fossil fuel usage per year

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Solar + Storage Design Concept l  Flexible Renewable Energy Dispatch

l  Simplified Integration / Improve Efficiency

l  Modular / Simple Design

l  Least Cost Integration

Advanced and optimized PV solar

plant integrated with a Battery Energy Storage

System (BESS).

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Project is on track for 2018 COD Project Status •  PPA and LGIA executed in January 2017 with

KIUC

•  Permitting activities ongoing in parallel with HPUC review of PPA and LGIA, both on track for completion in late 2017

•  Expected NTP and mobilization in late 2017 and COD in late 2018

•  Construction and commissioning will take approximately 12 months

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Project Costs - PPA rate is $0.11 / kWh ! In regards to the project… "It is remarkable that we are able to obtain fixed pricing for dispatchable solar-based renewable energy, backed by a significant battery system, at about half the cost of what a basic direct-to-grid solar project cost a few years ago.” - KIUC President and CEO David Bissell

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Value Drivers Summarized l  Reduce MWh produced by oil-fired generation (over 50,000 MWh per year) l  Limit oil-fired generation to the most efficient units (peakers shut down) l  Provide firm solar in the morning and evening peaks l  Allow headroom for existing and new solar without the need to curtail

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Mahalo!