DOE WorkshopBusiness Opportunities Available in Energy Sector31August 2012

Act.Change.Power.

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Energy is everywhere.

Cennergi aims to be the leading cleaner energy producer in Southern Africa.

Our VISION is to become the leading cleaner energy Independent Power Producer in Southern Africa, serving an expanding energy market

We endeavor to win a significant share of a planned 16 GW by 2025 in Southern

Africa

Gas40%

Generation mix.3

Renewables45%

Coal15%

Aspirational target of of 0.3 - 0.5 grid emission factor

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Company formation.

2nd March 2012: 50:50 joint venture between Exxaro and Tata Power creates Cennergi (Pty) Limited

+ =

Created by companies from

developing nations to serve developing

nations

Play a key role in the African electricity generation market

Focus on the investigation of

feasibility, development,

ownership, operation, maintenance,

acquisition and management of

electricity generation

The initial project pipeline focuses on renewable energy projects in South

Africa and Cennergi’ s strategy is to create a balanced portfolio of

generation assets

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• Launched by SA Government’s Department of Energy – 3 August 2011

• Programme objectives:– Job creation– Entrepreneurial development and support– Education and development of skills– Socio-economic development through support of community programmes– Community participation through equity shareholding in the wind project

• Programme was designed to:– Procure 3725MW of renewable energy through 5 bidding windows

(November 2011 – March 2013)– Start and stimulate the renewable energy industry in South Africa

South Africa’s IPP procurement programme.

21st May 2012: Cennergi was awarded preferred bidder status for 2 wind farm projects

Cennergi- preferred bidder status.

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• Tsitsikamma• 95MW• 75% Cennergi• 16% Watt Energy• 9% Trust

• Bedford• 139MW• 95% Cennergi• 5% Trusts

Tsistikamma Community Wind Farm

Amakhala Emoyeni Wind Farm

Tsitsikamma Community wind farm.• Technology: Onshore Wind

• Capacity: 95MW (31 wind turbines)

• Location: Portions 3-9 of Wittekleibosch Farm 787, Tsitsikamma Region, Eastern Cape

• Substation: Melkhout (via Dieprivier)

• Project Structure:

75% Cennergi (Pty) Ltd,

16% Watt Energy

9% Tsitsikamma Community Trust

• EPC and O&M Contractor: Vestas Southern Africa

• MLA: Nedbank Limited

• Committed to spending 1.5% of its revenue on socio-economic development and 0.6% on enterprise development

Tsistikamma

Amakhala Emoyeni wind farm.• Technology: Onshore Wind

• Capacity: 139MW (66 x 2.1MW turbines)

• Location: Blue Crane Route District Municipality of the Eastern Cape Province

• Substation: Kopleegte switching station (132kV) and Poseidon (400kV)

• Project Structure:

95% Cennergi (Pty) Ltd,

5% Community Trusts

• EPC and O&M Contractor: Suzlon Wind Energy South Africa (Pty) Ltd

• MLA: Standard Bank of South Africa

• Committed to spending 1.5% of its revenue on socio-economic development and 0.6% on enterprise development

Amakhala Emoyeni

Tsitsikamma Wind FarmConstruction Period

Total Construction PeriodCivil WorksElectrical WorksDeliveryInstallationCommissioning

Total Construction period approx. 20 months22 February 2013

Construction Period: Local BusinessJobs to be sourced from the local community

Transport, Crane, Installation

Civil Works Electrical Works

- Equipment rental (forklifts, trailers, cranes)

- Safety gear

- Material supply (concrete, rebar, piping, earthing, etc.)

- Equipment Supply- Fencing- Engineering- Equipment Rental (Drilling

rigs, earth movers, cars, trucks)

- Temporary offices/ accommodation

- safety gear- security during construction- accommodation, restaurants

- equipment supply (cables, substation equipment, switchgear, transformers, etc.)

- Engineering- safety gear- security during

construction- accommodation,

restaurants- Fencing

Construction Period: JobsJobs to be sourced from the local community

Transport, Crane, Installation

Civil Works Electrical Works

- General Labour- Transport assistants (eyes

on the ground)- Flagmen- Assistant Riggers- Forklift drivers- Security- Clerk (administration- Cleaners // House

Keeping

- General Labour- Pipe-laying- Trench backfilling- Foundation base

preparations- Steel fixing- Erect & Strip Formwork- Pouring of concrete

- General Labour- Trenching and

backfilling - Excavate - Bolt structures - Pull cables- Messengers - Cleaners - Security - Making good – cleaning,

removing rubble, etc - Any other unskilled

work

Cennergi’s Business Principles

Sustainable Communities Model

Cennergi’s Growth Strategy (MW capacity growth)

Regional Growth Offtaker Technology

Cennergi’s Vision, Mission and Values

Financial Capital Manufactured Capital Human Capital Social Capital Natural Capital

• Superior returns• Community ownership• Local financial benefit• Energy Impact Fund

• Quality funding

• Energy and supporting infrastructure

• Support local manufacturing

• Representative workforce

• Training programmes• Fair and transparent

• Safe and healthy

• Understand community needs

• Energy solutions• Respect

• Building trust

• GEF < Regional• Minimise impact of operations and office

• Responsible, efficient resource use

Global Objectives: MDG, UNGC

Regional Objectives: NEPAD

National Objectives e.g. National Growth Plan

• Thriving Financially• Equitable

• Equipped to contribute

• Fair labour practices

• Well Run• Well Served

• Fair for everyone• Active, inclusive and

safe

• Well Connected• Adequate utilities• Well designed and

built

• Environmentally Sensitive

Sustainable Communities

• With expertise, resolve and resources we strive to create benefit for all

• Cennergi, making a positive difference in the communities we work with

Social and Economic Development.

People

Economy

Environment

Shareholders

Energy is everywhere.

Cennergi aims to be the leading cleaner energy producer in Southern Africa.

Thank you.

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