ck_gradient_white 15 hild - 92288 Suresnes - FRANCE Fax : +33 (0)1 57 32 87 87 RÉFÉRENCES COULEUR Our Activities, Our Commitment Zone de protection 1 WHITE Zone de protection 2 Zone de protection 3 South Africa
Group profile 75bn in 2014 revenues Operations in 70 countries No.1 independent power producer (IPP) in the world 3 rd largest LNG supply portfolio in the world ENGIE develops its businesses (power, natural gas and services) around a model of responsible growth to take on the major challenges of the transition to a low-carbon economy: access to sustainable energy, climate-change mitigation, security of supply and the rational use of resources. The Group provides communities, governments, cities and businesses with highly efficient and innovative solutions based on its expertise in four key sectors: independent power production, natural gas, renewable energy and energy efficiency services. ENGIE employs 153,000 people worldwide and achieved revenues of 75 billion in 2014. The Group is listed on the Paris and Brussels stock exchanges and is represented in the main international indices. 2 ENGIE South Africa
ENGIE in South Africa 20 years presence in the country No.1 IPP in the country 7Mio man-hours employment created to date* in construction *Q1 2015 A long-term partnership South Africa has a power reserve margin of less than 5% and has daily load-shedding, which is particularly harmful for industrial customers and the economy as a whole. The country is looking at a balanced mix of solutions to help solve the energy crisis and to bring electricity to the 25% of the population that is still without access to power. The South African authorities have recognized the role that private producers like ENGIE (formerly GDF SUEZ) can play in securing the country s energy supply in the future, and production is to be shared between the state-owned operator Eskom (70%) and private producers (30%). To increase capacity, they are encouraging the development of solar, wind, nuclear, small-scale hydroelectric, and biomass energy sources, along with a program for coal-based generation. A five-stage plan was set up to reach 17 GW of renewables by 2030 compared with 3 GW currently. South Africa is a valued partner for ENGIE. Our Group originally entered the South African market through its environmental services activities in 1994. We developed the country s first IPP (Peakers) and have been an enthusiastic supporter of its ambitious and now highly successful renewable energy program focused on wind and solar projects. ENGIE will continue to make investments in the country and will actively support the government s efforts to increase the share of gas in South Africa s energy mix, leveraging its global expertise and technical capabilities that span the entire value chain. South Africa ENGIE 3
Our Presence Pretoria 2 Johannesburg 4 1 Cape Town 3 Durban Port Elizabeth ENGIE Offices Johannesburg 1 2 3 4 West Coast 1 Wind Farm Kathu Solar Park Parabolic trough Dedisa Peaking Power Open Cycle Gas Turbine Avon Peaking Power Open Cycle Gas Turbine Installed Capacity: 94 MW Installed Capacity: 100 MW Installed Capacity: 335MW Installed Capacity: 670 MW In Operation Under Development Under Construction Under Construction 4 ENGIE South Africa
Power West Coast 1 West Coast One is a 94 MW wind project, which is located 130 km north of Cape Town. It was developed under the world-class renewable energy IPP procurement program run by the South African Government. 94MW of installed capacity 160Mio of investment 47 wind turbines 5.6Mio tonnes estimated reduction of CO 2 over 20 years The joint venture company for this project, Aurora Wind Power, is owned by ENGIE, Investec Bank and Kagiso Tiso Holdings. 2.5% has been allocated to a Community Trust, with the purpose of developing and sustaining the surrounding communities. Construction started in mid-2013 and the wind farm is expected to reach commercial operation on schedule in June 2015. The power generated by the wind farm will be contracted to Eskom Holdings under a 20-year Power Purchase Agreement. Vestas supplied the forty-seven 2 MW wind turbines, and will also provide a long-term service contract. West Coast 1 directly supports South Africa s objective of increasing the contribution from renewable power in its generation mix, and specifically the Government s 20-year plan to generate 8 GW from onshore wind. The wind farm will allow to offset an estimated 5.6 million tonnes of CO 2 over the 20-year duration of its Power Purchase Agreement. 2.5Mio man-hours employment created during construction South Africa ENGIE 5
Power Peakers: Dedisa & Avon 1,000MW of combined installed capacity 335MW in 2015 (Dedisa) 670MW in 2016 (Avon) Peakers is the first large Independent Power Project tendered by the Department of Energy and ENGIE s first power generation project in the Republic of South Africa. The Dedisa and Avon diesel-fired OCGT Peaking units will have a combined capacity of more than 1,000 MW, which is a significant contribution to the country s constrained grid. Dedisa Dedisa is a 335 MW greenfield open-cycle turbine power plant, which is located in the Eastern Cape Province. The construction phase is nearly complete and Dedisa is expected to start producing power in the second half of 2015. Avon Avon is the larger of the two peaking units with a capacity of 670 MW. This power plant, which is expected to start producing power in 2016, is located in the KwaZulu-Natal Province, near Durban. Project structure The Project Companies that own the two open-cycle plants are each owned 38% by ENGIE, 27% by Legend Power Solutions (Pty) Ltd, 25% by Mitsui & Co and 10% by The Peaker Trust. The two plants will be contracted to supply electricity to Eskom Holdings, the Republic s stateowned utility, under 15-year Power Purchase Agreements. ENGIE will establish the Operations & Maintenance (O&M) company that will operate and maintain the two power plants once they are commercially operational. The cost of building both plants represents an investment in the South African energy sector of approximately 780 million. 6 ENGIE South Africa
780Mio of investment 15-year Power Purchase Agreement 4.5Mio man-hours of employment during construction to date Key projects for socio-economic development Avon and Dedisa Peaking Power are important projects for the socio-economic development in the areas where they are situated. The COEGA Development Corporation that develops and operates the 11,500 ha industrial development zone (IDZ) in Port Elizabeth, in which Dedisa Peaking Power is situated, underlines that the energy provided by the plant is a key enabler for major investments in the zone, such as smelters and aquaculture. The plant facilitates the strengthening of the grid in the Eastern Cape thereby contributing to the industrialization of a province that is challenged by poverty and unemployment. Dedisa is the largest investments in the IDZ and has provided (to date) more than 1,500 jobs during construction and more opportunities will be created during the operation of the plant. Beyond the direct jobs, COEGA also noted a significant impact on job creation from small and medium businesses. In Shakaskraal, Avon is working with the local municipalities to maximize the socio-economic benefits of the project. To date, more than 1,000 jobs have been created by the construction and around 450 workers have been recruited from local areas. Peaker Trust The Peaker Trust, which has a 10% share in the Project companies, was established to ensure that local broad-based black organizations and communities can benefit from the projects. All the dividends the Trust will get out of the plant operations will go to local socio-economic development initiatives for at least 15 years, i.e. for the duration of the Power Purchase Agreements and beyond. Next steps Avon & Dedisa Peaking Power are diesel-fired OCGT projects because natural gas is not available in Durban and Port Elizabeth. There are plans however to convert the projects into gas-fired combined-cycle base-load plants as soon as gas can be made available. That makes Peakers a good illustration of the possibilities that are open for ENGIE in South Africa. Leveraging on its global skills and expertise in both gas and power, ENGIE will indeed also be able to contribute to South Africa s objective of increasing the share of gas in its energy mix. South Africa ENGIE 7
Power Kathu Solar Park 100MW of installed capacity 4.5 hours of thermal energy storage 6Mio tonnes estimated reduction of CO 2 over 20 years The Kathu Solar Park is a 100 MW greenfield Concentrated Solar Power (CSP) project situated in the Northern Cape Province, 600 km south-west of the capital Pretoria. This large CSP project has parabolic trough technology and is equipped with a molten salt storage system that allows 4.5 hours of thermal energy storage. The Kathu Solar Park was nominated preferred bidder in the third (CSP) round of the Renewable Energy Independent Power Procurement Programme (REIPPP) led by the Department of Energy and will enter into a 20-year Power Purchase Agreement (PPA) with Eskom. Financial Close and start of construction are expected in the third quarter of 2015. The project is owned by an ENGIE-led consortium which also includes a group of South African investors comprising SIOC Community Development Trust, Investec Bank, Lereko Metier and Public Investment Corporation. Kathu Solar Park strengthens ENGIE s contribution to South Africa s objective of establishing sustainable energy generation as well as promoting local economic development. 20-year PPA on a self-dispatch base 2Mio man-hours of employment to be created during construction SENER 8 ENGIE South Africa
Energy services Energy engineering and consultancy services Delivering new energy Tractebel Engineering, an ENGIE company specialized in providing engineering and consultancy services to the energy, infrastructure and water sectors worldwide, aims to contribute its multidisciplinary expertise to the South African effort and the development of the power infrastructure of countries in the Southern African Development Community. For over 100 years, Tractebel Engineering has contributed to the successful development of ambitious coal, hydro, renewables and nuclear power generation projects in Africa. Since 2012, its subsidiary in South Africa has been mobilizing its resources to optimally manage its customers projects and build long-standing relationships. Tractebel Engineering as a Group is involved in several Concentrated Solar Power (CSP) projects and, notably, is assisting ESKOM, South Africa s National Electricity Utility, with all studies, bid management and Owner s Engineering for a large scale (100 MW) CSP plant, to be built in Upington, Northern Cape. In the Western Cape, Tractebel Engineering is completing the commissioning of the 94 MW West Coast 1 wind farm, an IPP project led by ENGIE. Tractebel Engineering also provides Owner s Engineering support for the Steam Generator Replacements of Koeberg Nuclear Power Station, owned by ESKOM Holdings. South Africa ENGIE 9
Community Involvement Engie is a company committed to citizenship, diversity and solidarity in the communities in which it operates. Valued Citizens Initiative By providing academic and social justice support programmes in schools, Valued Citizens Initiative promotes self-development to enable people to be value-driven and to improve their lives, thereby encouraging citizens to engage with South African democracy. Aurora Wind Power (West Coast 1) has signed a long-term agreement with Valued Citizens Initiative for the implementation of a life skills development program in public schools in Saldanha Bay Municipality. Avon & Dedisa Peaking Power are also working on a partnership with the NGO for their respective surrounding communities. A two-year program has already been set up in a community near the Avon site, in collaboration with school management and educators. valuedcitizens.co.za 10 ENGIE South Africa
IkamvaYouth Ikamva Lisezandleni Zethu is a South African non-profit organization focused on the empowerment of youth through education, e-literacy training and career guidance. ENGIE & IkamvaYouth have rolled out the FunMaths programme, which helped learners aged 14 and 15 from disadvantaged backgrounds struggling with Maths and English. The IkamvaYouth model draws from a large pool of volunteers made up of university students and local professionals, most of whom are ex-beneficiaries of the program. ENGIE financed the program s establishment in six of the association s ten branches, benefitting 247 children. Ikamvayouth.org South Africa ENGIE 11
our values drive commitment daring cohesion ENGIE South Africa Building 1 Ground Floor Country Club Estate 21 Woodlands Drive, Woodmead 2191 South Africa Tel. +27 10 612 0700 Tractebel Engineering South Africa Block E Lincolnwood Office Park Woodland Drive (Woodmead) Rivonia 2191 PO Box 320 RIVONIA 2128 Tel. +27 11 656 6513 ENGIE Headquarters 1, place Samuel de Champlain 92930 Paris La Défense France Tel. +33 1 44 22 00 00 engie.com