IRP 2010 – Public Hearings

Midrand, 2 December 2010

Mark Boneham

Alstom Power – Comments and Responses

© ALSTOM 2009. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom's submission to IRP 2010_MB - 20100607 - P 2

IRP 2010: Energy MixIRP 2010: Energy Mix

Our Group: A major industry player

Agenda

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 3

Alstom Group: Three sectors

Employees by SectorSales by Sector (proforma figures)

Source: Alstom 2008/09

Power14 €bn

Transport6 €bn

Grid3.5 €bn(2009)

Supplier of 1 metro/tram in each 4 Leadership in key markets and fast-growing technologies

Major supplier in 25% of worldwide installed base

Rail transport infrastructure Power transmission infrastructurePower generation infrastructure

Transport26,500

Power50,000

Grid20,000

21%

52%27%

19%

30%

51%

© ALSTOM 2009. All rights reserved. Information contained in this document is provided without liability for information purposes only and is subject to change without notice. No representation or warranty is given or to be implied as to the completeness of information or fitness for any particular purpose. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom's submission to IRP 2010_MB - 20100607 - P 4

Agenda

Our Group: A major industry playerOur Group: A major industry player

IRP 2010: Energy Mix

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 5

Installed base per technologyInstalled Base 2008 Future Installed base 2030

Non CO2 technologies could account for 50% of global installed base

20%

8%

3%

Hydro

Wind

Nuclear

GT plant21%

Steam48%

17%

6%

Tide & WaveGeothermalSolar

Wind

Hydro

Nuclear GT plant26%

Biomass/ waste3%

Steam18% - 9%38% - 24%

6%-2%

7%

Europe

7%

North America18%

Latin America

Rest of Asia17%

ChinaMiddle

East Africa

MiddleEast Africa

7%

North America25% Latin America

6%

Rest of Asia17%

China

17%Europe 28% 18%35%

Status @ end 2008 4775 GW

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 6

Efficiency: Plant optimisation &

retrofit

First CO2 capture demo plant in the

world

Alstom is the world leader in clean integrated solutions

Alstom Clean Power strategy

Wind, solar & geothermal

N° 1 nuclear*

& biomass

Emissions CO2(Gt/y)

2005 Ref 2030 1000 ppm

+6oC

Stabilize emissions 550 ppm

+30C

Needed path

450ppm +20C max

Technology Mix

Efficiency

CCS

N° 1 hydro

* Conventional islands

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 7

Life Cycle

Management

Gas Hydro

Geothermal SolarBiomass

Oil

CoalNuclear

(Conv. Island)

Wind

Alstom Power:Technologies adapted to all energy sources

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 8

Maximum dam levelMaximum dam level Maximum dam levelMaximum dam level

Energy transferMinimum levelMinimum levelMinimum levelMinimum level

Upper reservoir

Lower reservoirUndergroundPower Plant

Turbining Mode(Power generation)

Pumping Mode(Power storage)

Ancillary services:- Frequency and Voltage Regulation- Reserve capacity (Spinning or still)- Synchronous condenser modes- Black start capability

Global cycle efficiency ~80 %

Pump storage: an efficient way of storing large quantity of energy

Tubatse Pumped Storage 1.5 GWe capacity = 7.8m tons per year CO2 avoided

Tubatse Pumped Storage is not part of the hydro plan

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 9

Wind onshore: energy potential from wind

Planned wind capacity approx 800 MWe = 5.2m tons CO2 avoidedPotential of wind capacity far greater

• Committed build capacity is800MWe by 2014

• Transmission Network permitting the initial phase should be increased to 1200MWe

• New Build Options + 3200MWe by 2019 – increasedcommittment build would assistwith investor confidence

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 10

Planned solar capacity approx 200 MWe = 1.0m tons CO2 avoidedPotential of solar capacity is significantly under stated

Solar: an untapped Energy Source

• IRP indicates CSP committed build of 200 MWe by 2015• Total of 400 MWe New Build Options by 2019• Huge shortfall relative to solar potential in South Africa• Recommended Target should be in excess of 2000 MWe –

facilitated through REFIT by 2019• Solar target will not motivate localisation of technology

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 11

Gas: Open Cycle Gas Power Plants

Planned Gas Capacity OCGT Capacity = 6.8 GWe (35% efficiency)CCGT = 1.9 GWe (58% efficiency)

HRSGGas Turbine

TurbogeneratorSteam Turbine

Combined-cycle Power Plant Open-cycle Power Plant

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 12

Biomass co-firing: significant potential to reduce CO2 emissions

• DRAX- UK’s largest coal fired plant – 4GW• 1.5 million tons/year biomass co-firing at 10%

heat input• 400 MWe of green power• 2 million tons/year CO2 avoided• Fully Commissioned early 2010

Potential of biomass

• Up to 20 % CO2 avoided• Retrofitable to existing coal plants • Flexibility – low incremental cost• Biomass combusted in highly efficient

boilers

Nothing included in committed build – potential existsClarity required for New build options of Renewables

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 13

• Encouraged with inclusion of Nuclear in New Build Options• Earlier commitment encouraged to ensure continued localisation

and upskilling after committed build programs

Nuclear conventional island: ARABELLETM

Planned nuclear capacity 9.6 GWe = 50m tons CO2 avoided

Credits to EDF

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 14

Efficiency: Plant optimisation &

retrofit

First CO2 capture demo plant in the

world

Alstom is the world leader in clean integrated solutions

Alstom Clean Power strategy

Wind, solar & geothermal

N° 1 nuclear*

& biomass

Emissions CO2(Gt/y)

2005 Ref 2030 1000 ppm

+6oC

Stabilize emissions 550 ppm

+30C

Needed path

450ppm +20C max

Technology Mix

Efficiency

CCS

* Conventional islands

N° 1 hydro

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 15

Average Age in-ServiceEskom Plants

0 5 10 15 20 25 30 35 40 45

M ajuba

Kendal

M at imba

Lethabo

Tutuka

Duvha

M at la

Kriel

Hendrina

Arnot

Camden

Years

Production Efficiency – Existing Plant

Retrofit

60% of Carbon emitted in 2030 will come from today’s installed base

Plant Optimisation: -5% CO2 Turbine retrofit: -5% CO2 Boiler retrofit: -3% CO2

All efficiency improvement programs in DSM Lost opportunity to ensure highest efficiency at point of production

• Increased cycle efficiency • Increased capacity avoiding need to build

additional capacity• Extended utilisation of existing assets• Reduced CO2, NOx & SOx emissions

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 16

Efficiency: Plant optimisation &

retrofit

Alstom is the world leader in clean integrated solutions

Alstom Clean Power strategy

Wind, solar &

geothermal

N° 1 nuclear*

& biomass

Emissions CO2(Gt/y)

2005 Ref 2030 1000 ppm

+6oC

Stabilize emissions 550 ppm

+30C

Needed path

450ppm +20C max

Technology Mix

Efficiency

CCS

* Conventional islands

N° 1 hydro

First CO2 capture demo plant in the

world

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 17

Alstom CO2 capture technologies

CCS must also be applied to the installed baseNothing included for New or existing fleets

Source: Vattenfall

Pre-combustion(New only)

Power Plant with CO2 capture

Solutions developed by Alstom

Post-combustion Oxy-combustion(New + retrofit) (New + retrofit)

• CCS will be commercially available - 2015• CCS capturable CO2 in South Africa ~ 240m t/yr• Cost of electricity production (kw/hr) from Coal + CCS = similar to Nuclear

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 18

South Africa – on a path to diversified energy production

IRP 2010 – Summary

• IRP 2010 – A good start in diversifying energy mix

• Highest levels of production efficiency from all technologies –not just DSM -

• Concider CCGT v OCGT• Improve efficiency from installed base

• Potential from Solar capacity far greater

• Earlier start for Nuclear program

• Risk of skills gap due to late introduction of Clean Coal

• CCS must be accommodated in energy mix

© 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.

Alstom's submission to IRP 2010_MB - 20100607 - P 19

www.power.alstom.com