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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

A long history in South Africa

Alstom in South Africa for more than 100 years

Leading provider of Power Generation- 80% of the installed turbine generator capacity is manufactured by

Alstom,- 30% of boilers- Supplied major equipment to 12 out of 13 of SAs coal power plants,

and the only Nuclear Plant- Supplied boilers for 4 out of 13 of SAs coal power plants

Supplier of Turbine Islands and Control & Instrumentation systems toMedupi and Kusile projects with- 50% of localisation in the Turbine and Generator packages

Contributor to South Africas Clean Powerinitiatives through the retrofit ofArnot and Koeberg Power Stations, and Gariep Hydro project

Alstom South Africa is a status level 4 BBBEE contributor

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

REFIT should allow all CSP technologies

REFIT structure currently considered does not allow for bids using

direct-steam tower without integrated thermal storage

Recommendation: Implement a single tariff for all CSP technologies

- Encourages technological innovation and broad diversity of solutions

- Enhances flexibility of project developers & sponsors to optimize offeringto market and customer requirements over time

- Maximizes impact of a subsidy fostering selection of most sustainable,economically viable, efficient and long-term competitive technologies &

projects

Result: No artificial limitations and constraints on plant design

Implement a single, technology agnostic tariff for CSP

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

Diversity of Technologies

Market examples

Spain

Attractive tariffs enabled development ofvarious CSP technologies and configurations

United States

Technological neutral subsidy schemeInvestment Tax Credit (ITC) allows for utilityscale projects

Accelerated depreciat ion benefi t (MACRS)allows for tax equity monetization

Renewable Portfolio Standards (RPS)

mandates long-term renewable energy targetsin 37 states

No technology-specific subsidies

Parabolic trough Compact linear Fresnel

Power tower Parabolic dish

7 project / 92 MW55 project / 2.6GW

6 project / 3.3 MW

Utility scale projects under constructionlarger than 100 MWe:

Tower: Ivanpah 392 MW (w/o storage)Trough: Solana 280 MW (with storage)

12 project / 460 MW

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

Benefits of BrightSources technology

- Currentlyunder construction on the largest solarthermal facility in the world (Ivanpah)

- 392MWe / 1,000,000 MWh per year

- 1,000 construction jobs

- 140,000 typical U.S. homes powered per year

- $2.2 billion project is fully f inanced

- ~$500mm of third-party equity from NRG, Googleand others

- $1.6bn U.S. government loan guarantee

- Located in a highly competitive power market forrenewable energy solutions

- Technology advantages

- High temperature (550C) and pressure (160 bar)

- Direct steam power generation well-understoodby utilities and operators

- Compatible with thermal storage and fossil fuelhybridization

12 project / 460 MW

Tower without storage should be aviable option

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

Low tariff rates do not support projecteconomics and long-term market growth

REFIT rates are too low to support large-scale project

development and long-term investment in South Africa- Recent price reductions further erode project economics

- Penalizes projects already in the development phase

- Increases risk of project completion

Adverse outcome of low REFIT rates include:- Reduced or non-existent project stakeholder margins and economics

- Depressed volume commitment to South Africas renewable energy industry

- Reduced impact, if any, of economics of scale

- Less localization of supply, engineering and manufacturing

- Unattractive project economics leading to reduced financeability andinability to secure critical equity and debt capital commitments

Low prices create the risk of handicapping a critical industry before asingle project gets built

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

A key consideration for effective tariffs

Localisation requires certainty

Take-away

Step 1: Cost of technology will decrease with

increasing production volumes based on:

learning curves (from global operations)

scale effects (including size of installation)

standardisation to enable transfer of technology

Step 2: Further cost reduction may occur through

localisation of production

offsetting transportation costs

leveraging potential lower cost structures

Reducing LCoE requires scale

Components Invest. J ob creations

Receiver 40 M ~ 140 J obsMirrors 30 M ~ 300 J obsSteel structures 10M ~ 70 J obs

Typical factory loads of 200-400MW/yrrequire long term commitment

Low tariffs put at risklong-term market sustainability

Source: EER

Source: Frauenhofer-Institute

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ALSTOM 2010. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to anyparticular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, withoutexpress written authority, is strictly prohibited.

Conclusion

Alstom and BrightSource

Committed to develop Solar Thermal in South Africa

Together via our partnership

For the long-term