Scatec Solar: Kalkbuilt Project Nersa IPP Public Hearing Kimberly 5 March 2012

Transcription

1 July 2011 page 1 Scatec Solar: Kalkbuilt Project Nersa IPP Public Hearing Kimberly 5 March 2012

2 July 2011 page 2 Scatec Solar a brief overview Established: 2007, HQ in Oslo Employees: 80 Main shareholders: Scatec* 62,5 %, Itochu 37.5 % Unique vertically integrated, scalable and flexible business model All required competences in-house to ensure a successful project Excellent track record across multiple markets in different roles and applications Track record of 180 MW installed, 60 MW under O&M, 50 MW sales of project rights Ownership of 22 MW of assets in Czech Republic, Italy and US Milano, Italy 2010, 7.2 MWp Healthy and diversified international project pipeline Gross pipeline of 2.3 GW across Europe, Africa, US and Japan Strong network of local and international partners Local developers and land owners Suppliers and sub-contractors Banks and financing institutions International government agencies Sulkov, Czech R 2010, 10 MWp * Includes Scatec controlled shares

3 July 2011 page 3 Solutions: In house EPC and O&M capabilities Solutions In-house capabilities Track record of around 180 MW in Germany, Czech Republic, Italy and France Engineering Design Supply chain management Project management Operation and Maintenance Triple ISO certified Sample projects: MW sized power plants World s first triple certified solar system integrator for Quality (ISO 9001) Environment (ISO 14001) Occupational Health and Safety (OHSAS 18001) Ground mounted PV Roof top PV PV Carports Sulkov, Czech R. 2010, 10 MWp DHL roof, Italy, 2010, 7.2 MWp Quinciuex, France, 2011, 8MWp

4 July 2011 page 4 Energy security: A large driver of PV installations - Mature, Proven and Bankable Technology - Predictable - Reliable - Power delivered for 30 yrs

5 July 2011 page 5 Job Creation & Local Economic Development - PV is, per MW installed, the most effective and efficient job creator of all energy sources* - Unskilled & semi-skilled laborers can be sourced from the local area for the construction phase - Manufacturing of the majority of components and equiptment can take place locally *Source: Solar Generation V 2008 by Greenpeace & European Photovoltaic Industry Association

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7 July 2011 page 7 Summary of Environmental Process : Kalkbuilt

8 July 2011 page 8 Interested & Affected Parties: A Summary No Negative environmental Impacts! 16 Comments - none negative Zero Objections 8 comments of Support (including NC Environment & Conservation) Creating 450 jobs

9 July 2011 page 9 Seamless integration with farming operation Panels to provide shade from a scorching sun Livestock kept safe : Provides protection from predators & stock thieves (currently big issues) Sharp edges are protected and cables hidden

10 July 2011 page 10 Site Selection Criteria, Solar Irradiation & Grid connection

11 Site selection July 2011 page 11

12 July 2011 page 12 No major issue foreseen to reach final close as planned November December January February March April May June July Item Activity Selected for beeing prefered bidder Project company establishment & staffing Finalise shareholders agreements Recruit/appoint top mangement Project development - land, permits and licences and grid Rezoning Building permit/approval Finalise land lease : Execute option, sign agreements and notarization Submit application Nersa licencse - Pending input from Jed Review Nersa generation license + sign Submit application ESKOM budget quote Eskom cost estimate received Conclusion and acceptance of buget quotes Finalise detailed design + approval EPCI & O&M delivery and contracts Prepare detailed contracts - EPCI, O&M, Management Prepare sub-epci & O&M contract Prepare equipment purchase contracts (modules, Inverters, HV equipment) Detailed execution planning and design Conclude all contracts Setup rural development Concept development HR/Training facilities with communities Searching/defining accomodation facilities Conditional rural HR-process (de Aar/Hanover) Setup training facilities Start training activities Senior debt - project financing Final legal, technical and insurance due diligence first draft ready Final conlusions - legal technical and insurance Due Diligence Prepare financial documents and agreements Finalise /update financial model Finacial model Audit Final Credit Commetie Approval Final financing documents and agreements & signing/commercial close CP satisfaction process Financial close EQUITY Final Close Equity financing process with DBSA for BEE holding Purchase and registration of shares of all shareholders Final investment committee approvals Satisfaction of equity CPs Finalise PPA, IM, Distribution agreement - incl all annexes Signing and final close

13 July 2011 page 13 Broad Based Execution Methodology Corporate Social Responsibilities Local Economic Development Skills Development Job Creation Wednesday 20 th October 2010

14 Broad Based Projects July 2011 page 14 Scatec Working with Communities before RFP! Scatec Solar has a long term LED and CSR outlook Hays Primary School (Rural School near Kalkbuilt & Phillips town) Procurement of illustrated dictionaries for learners School Bags Calculators, CD Players & Stationary Assisting primary school up to grade 7 Sprinkler System for Sports field Mamelani Project Youth Health care education Developing subsistence skills HIV training programs Living Skills Program

15 Welding Workshop Skills Development Facilities Trainees at work July 2011 page 15 Facilities On Previous Projects Training facility Boiler making and pipe fitting Welder on-site 15

16 History of Success Medupi Lecture Room July 2011 page 16 Examples of training on previous projects Chamdor Training Facility 16

17 July 2011 page 17 Kalkbuilt Job Creation Matrix Job Classification Construction Operations RSA Citizens 80% 80% Black Citizens 50% 51% Black skilled citizens 23% 33% Skilled jobs 18% 20% Citizens from Local Communities 21% 23% Employment People-Months Total Jobs Created*

18 Long Term Job Creation Potential July 2011 page 18 Submission of Mw s per Phase Jobs Created Per Phase Long Term Commitment Construction Phase 1 75Mw Phase 2 submitting 180Mw Phase 3 Submitting 175Mw Outcomes: 2480 jobs created over 5 years 96 jobs over a 25 year period Over 2500 people taking skills into a new national industry! Phase Phase Phase Total 2480 Operation & Maintenance Phase 1-18 Phase 2 40 Phase 3 38 Total 96

19 The Kalkbuilt Project will meet or exceed the threshold levels in all the required Economic Development areas July 2011 page 19 Target levels are achieved for a number of Economic Development Elements such as; Job Creation categories, Local Ownership, Management Control and Adjusted Socio-Economic Development In Addition value for money is created by; The Bid price submitted below the cap Substantial job creation Innovative and effective LED strategy Scatec s LED score increases per phase while the Price comes down to achieve sustainable value for money

20 July 2011 page 20 Scatec Solar: Kalkbuilt Project Power Production

21 July 2011 page 21 Power Production Year Max MW Total MWh Export MWh (75 MWp) (75 MWp) (75 MWp) (75 MWp) (75 MWp)

22 July 2011 page 22 Corporate Structure

23 July 2011 page 23 BEE & Broad Based Simacel Kalkbult Holding (Pty) Ltd is: Level 4 B-BBEE Contributor 65% black owned 10.5% black women owned through a community trust 12.5% owned by local communities as defined in the RFP

24 July 2011 page 24 Members of the Bidder Project Company Scatec Solar AS Equity Investor 60% Kalkbult Project Company (pty) LTD Kalkbult Local Community Trust* 10% 10% 20% Black Women Community Trust* Standard Bank of South Africa (pty) LTD Old Mutual Investment Group South Africa (pty) LTD 12.5% Simacel Kalkbult Holding (pty) LTD 40 % South African Participation

25 Thank you! July 2011 page 25 For the great opportunity to build a sustainable industry & create much needed jobs for South Africa Pfennighof, 1.7 MWp, Germany Built by Scatec Solar in 2007