Africa Talks

Lucas Hautvast, CEO & PresidentENGIE - South Asia, Middle & East Africa

10 June 2015

Three core businesses: Power – Gas – Energy Services

Serving governments, cities, industries & businesses

Expertise in four key sectors: independent power production, renewable energy, natural gas, energy services

ENGIE – Global Energy Leader

2

3

One of the major private power producers in Thailand

Generation and supply of electricity, steam, demineralized water and energy services to large industrial customers located in Map Ta Phut industrial & petro-chemical complex

ENGIE is the leading IPP in the Gulf countries:

— 27.5 GW gross (gas-fired) capacity awarded since 1996 (i.e. 60% of all MW capacities in the Gulf)

Long-term Power Purchase Agreements with state-owned utilities

Success factors: competitive tariffs, strong partnerships, innovative technical and financial structuring

Gulf CountriesUAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman

27,500 MWin operation & under construction

Largest IPP in Brazil, representing ca. 7% of the country’s total installed power generation capacity

Tractebel Energia is publicly-listed with public pension funds, central bank as key shareholders

Tractebel Energia Brazil – ca.13,000 MWin operation & under construction

IPP business models

Glow GroupThailand

3,200 MW

ENGIE has 73.9 GW gross capacity in operation and 10.1 GW gross

capacity of IPP projects under construction outside of Europe

(31 Dec 2014)

Utilities to industriesElectricity to Governments Power to the Public

What are private investors looking for?

• Transparency in the process

• Institutional strength

• Certainty & stability of policies and regulations

• Clear and consistent policies

• Effective administration, reducing barriers to business entry & expansion

Investment climate & attractiveness

4

• Cost-competitiveness of renewable power has reached historic levels

5

• Levelised cost of electricity (LCOE) of solar PV has halved between 2010 and 2014

• The most competitive utility-scale solar PV projects are now at USD 0.08 per kWh without subsidies, compared to a range of USD 0.045 to USD 0.14/kWh for fossil fuel power

• The recent tender in Dubai resulted in a successful bid for a solar PV PPA for under USD 0.06/kWh

• Onshore wind is now a very competitive source of electricity available; the recent bid in Egypt drawing the lowest bid under 4 UScents / Kwh

Africa: rich in resources … but with immediate & growing needs

Source: IEA 2014

Where will Africa’s energy come from ? Renewables, yes …

Renewables from 22% to 44% of installed capacity:

50% of total growth in capacity

66% of growth for mini-grid and off-grid in rural areas

Source: IEA 2014

Safe and clean; can be stored, so perfect buffer when used alongside intermittent renewables

Flexible dispatch in power generation: short start-up, shut-down times

Competitive base-load option for countries with gas reserves

Technically recoverable reserves of natural gas in Africa are estimated to be about 75 tcm, almost 10% of the world’s total

While major recent discoveries have been in and off Mozambique and Tanzania, Algeria, Egypt, Nigeria are expected to continue to tap into their gas reserves to serve

Governments are keen to target gas for domestic use, for example in Nigeria, which has a domestic gas supply obligation

Substantial shale gas resources in RSA

But also natural gas

8

IPP should be part of the solution

Renewables (and gas) should be part of the solution

Africa going forward …

9

West Coast 1 wind farm (RSA) Commercial Operation on 9 June 2015

Thank you !