First Solar FuelSmart ™: Powering Energy Security

© Copyright 2013, First Solar, Inc.© Copyright 2013, First Solar, Inc.

First Solar FuelSmart™: Powering Energy Security

Dr Raed Bkayrat, VP Business Development, Saudi Arabia

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First Solar at a Glance

Driving innovation across entire value chain and plant solution

Strongest Financial Stability & Bankability in the industry

Facilitated approx. $9B USD worth of project financing

Over 8GW installed worldwide and over 3GW contracted pipeline

Founded in 1999 and publicly traded on Nasdaq (FSLR)

Cost competitive with conventional energy sources today

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site: San Luis Obispo, USA

size: 550MW owners:MidAmerican Energy

Holdings Company

TOPAZ SOLAR FARM

Largest investment grade renewable bond in history

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The First Solar Advantage

PV energy solutions with superior value and less risk

= More Value

& Less Risk

= More Cost

& More Risk

Other PV Providers’ Model

First Solar’s Model

© Copyright 2013, First Solar, Inc.

Making the Case for Fuel Replacement

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Solar is Less Expensive than Diesel• PV electricity prices have reduced over 50%

Sources: Diesel Pricing US Energy Information Administration; Solar Pricing: DOE, Lawrence Berkley National Laboratory

• Diesel prices remain highly volatile and have steadily increased

Small PV System Median Installed Price 2003–2012 WTI Crude Oil Prices 2003–2013

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Coal NuclearU.S. (NG) Japan (LNG)

U.S. (NG)

Gas Peaking EU (NG)

Japan (LNG) India

Diesel Australia EU

First Solar $0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Solar is Cost Competitive with Conventional Energy Sources Today

Sources: Coal and Nuclear: Bloomberg New Energy Finance LCOE Update: Q2 2013; Gas Combined Cycle, Gas Peaking, and Diesel: Lazard LCOE Sensitivity Analysis June 2013; First Solar: Internal data. (a) Does not include cost of carbon capture. (b) NG = natural gas. LNG = liquefied natural gas. Data assumes natural gas prices of $10 in Northern Europe and $18 in Japan (all in US$ per MMBTU). (c) Assumes diesel prices of $3.00 for India, $4.30 for Australia, and $7.00 for Northern Europe (all in US$ per gallon). Diesel assumes a high end capacity factor of 30% representing intermittent utilization and low end capacity factor of 95% representing base load utilization, O&M cost of $15 per KW/year, heat rate of 10,000 BTU/KWh and total capital costs of $500-$800 per KW of capacity.

a b b cGas Combined Cycle

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PV is Highly Compatible with High Ambient Temperatures • Thermal energy output decreases when PV energy output increases

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PV Hybrid Systems combine PV solar generation with a fossil fuel engine generator to reduce fuel consumption and save costs.

Solution: The PV Hybrid

Compatible with any thermal engine technology

Mid Speed EngineLow Speed Engine

Combustion Turbine High Speed Engine

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• Operate as a secondary power source

• Will not replace existing thermal infrastructure/fleet

• Are commercially viable due to operational fuel savings alone

First Solar FuelSmart™ Hybrid Systems

Think of solar as a source of fuel, not just additional capacity.

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First Solar FuelSmart™ Benefits

• Economic

• Operational

• Environmental

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• Economic

• Operational

• Environmental

— Reduces fuel consumption—Saves fuel costs—Mitigates fuel price volatility risk

— PV is highly scalable and repeatable—Allows for phased implementation —Reduces technical and financial risk

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• Economic

• Operational

• Environmental

— Reduces fuel consumption—Reduces imports and increases energy

independence—Reduces fuel transportation and logistics

— Reduces thermal plant operation time—Extends asset life—Increases redundancy—Reduces O&M

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• Economic

• Operational

• Environmental

— Increases potential revenue via trading credits

— Reduces CO2 emissions and noise

— Contributes to positive community and PR potential

— Aids in overcoming regulatory boundaries for additional capacity for brownfield expansion

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How It Works – Typical Day

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Key TakeawaysSolar is cheaper than diesel. With fixed pricing and no fuel-price volatility, solar represents a meaningful value proposition for anyone burning liquid fuel as their primary energy source.

Think of solar as a source of fuel, not just additional generation capacity. PV hybrid systems are designed to operate as a secondary power source to reduce fuel consumption and are not intended to replace the existing thermal infrastructure.

First Solar’s FuelSmart™ solutions effectively combine photovoltaic (PV) solar generation with a fossil fuel engine generator to reduce fuel consumption and save costs.

First Solar FuelSmart ™: Powering Energy Security

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