First Solar FuelSmart ™: Powering Energy Security

transcript

First Solar FuelSmart™: Powering Energy Security

Dr Raed Bkayrat, VP Business Development, Saudi Arabia

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

site: San Luis Obispo, USA

size: 550MW owners:MidAmerican Energy

Holdings Company

TOPAZ SOLAR FARM

Largest investment grade renewable bond in history

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

Making the Case for Fuel Replacement

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

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

U.S. (NG)

Gas Peaking EU (NG)

Japan (LNG) India

Diesel Australia EU

First Solar $0.00

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

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

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

• 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.

First Solar FuelSmart™ Benefits

• Economic

• Operational

• Environmental

• 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

• 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

• 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

How It Works – Typical Day

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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