NERSA public hearing May 5 & 6, 2011

Proprietary & Confidential 2010 BrightSource Energy, Inc. All rights reserved.

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 to Medupi and Kusile projects with - 50% of localisation in the Turbine and Generator packages Contributor to South Africas Clean Power initiatives through the retrofit of Arnot and Koeberg Power Stations, and Gariep Hydro project Alstom South Africa is a status level 4 BBBEE contributor

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 any particular 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, without express 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 offering to 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

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 any particular 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, without express written authority, is strictly prohibited.

Diversity of Technologies
Market examples
55 project / 2.6GW 7 project / 92 MW

Spain Attractive tariffs enabled development of various CSP technologies and configurations
Parabolic trough Power tower Compact linear Fresnel Parabolic dish

United States Technological neutral subsidy scheme Investment Tax Credit (ITC) allows for utility scale projects Accelerated depreciation benefit (MACRS) allows for tax equity monetization

12 project / 460 MW

6 project / 3.3 MW

Utility scale projects under construction larger than 100 MWe: Tower: Ivanpah 392 MW (w/o storage) Trough: Solana 280 MW (with storage)

Renewable Portfolio Standards (RPS) mandates long-term renewable energy targets in 37 states No technology-specific subsidies

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 any particular 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, without express written authority, is strictly prohibited.

Benefits of BrightSources technology

- Currently under construction on the largest solar thermal 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 financed - ~$500mm of third-party equity from NRG, Google and others - $1.6bn U.S. government loan guarantee - Located in a highly competitive power market for renewable energy solutions 12 project / 460 MW - Technology advantages - High temperature (550C) and pressure (160 bar) - Direct steam power generation well-understood by utilities and operators - Compatible with thermal storage and fossil fuel hybridization

Tower without storage should be a viable option

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 any particular 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, without express written authority, is strictly prohibited.

Low tariff rates do not support project economics 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 and inability to secure critical equity and debt capital commitments

Low prices create the risk of handicapping a critical industry before a single project gets built
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 any particular 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, without express written authority, is strictly prohibited.

A key consideration for effective tariffs

Reducing LCoE requires scale

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

Source: EER

Localisation requires certainty Components Receiver Mirrors Steel structures Invest. 40 M 30 M 10M Job creations ~ 140 Jobs ~ 300 Jobs ~ 70 Jobs

Step 2: Further cost reduction may occur through localisation of production offsetting transportation costs leveraging potential lower cost structures

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

Source: Frauenhofer-Institute

Low tariffs put at risk long-term market sustainability

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 any particular 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, without express 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

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 any particular 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, without express written authority, is strictly prohibited.