Company Profile 14.08.2013

Fast deployment of Small Hydropower Plants in Indonesia with smarT

smarT – the instant powerplant, 4th May 2017 Markus Straub, President Director, PT. axerna renewable energy

1. introduction

Dec. 2012 Setup of PT. Axerna Renewable Energy (ARE) Renewable Energy Project Developer with focus on Indonesia - Project development, design & engineering in Small Hydropower Mar. 2013 Teaming up with GLOBAL Hydro Energy, Austria - ARE becomes Sales Representative & Partner of GLOBAL Hydro Jan. 2014 First contract for supply of M&E equipment in Indonesia May 2015 Founding of PT. Axerna Hidro Energi (AHE) - Project Management & Construction Supervision M&E - Local purchase balance of plant (transformer, switchgear) - Metal works (intake gates, trash racks, automated gates / cleaning machines, runner overhaul) Dec. 2016 JV with GLOBAL Hydro: PT. GLOBAL Hydro Indonesia (GHI) - Restructuring M&E activities for hydropower into GHI - AHE focuses on Project Management & Construction Supervision (EPCM) - Turnkey-Supplier (EPC) for smarT Business Line

Company Overview

Civil construction Mechanical and electrical

equipment Steel Metal works

Plant operation (M&E) Maintenance

Desk study Site Identification Pre-feasibility study Feasibility Study Detailed Engineering

Design Licensing & PPA Project Financing Civil and M&E Design

Review Contractor and Equipment

supplier advise/selection

PHASE 1 Project Development

PT. AXERNA RENWABLE ENERGY

PHASE 2 Project Management &

Construction Supervision, EPC/M

PT. AXERNA HIDRO ENERGI

PHASE 3 Service & Maintenance

PT. GLOBAL HYDRO INDONESIA

Fields of activities

PHASE 1 Project Development

PT. AXERNA RENWABLE ENERGY

PHASE 2 Project Management &

Construction Supervision, EPC/M

PT. AXERNA HIDRO ENERGI

PHASE 3 Service & Maintenance

PT. GLOBAL HYDRO INDONESIA

> 10 hydropower projects with total > 85 MW under project development (ARE)

> 50 MW of hydropower projects under service

Strong local presence with expertise and track record in small hydropower from development until operation in

“one hand”

> 75 MW of hydropower projects M&E equipment (AHE in co-operation with GLOBAL Hydro)

Experience and track record

PHASE 1 Project Development

PT. AXERNA RENWABLE ENERGY

PHASE 2 Project Management &

Construction Supervision, EPC/M

PT. AXERNA HIDRO ENERGI

PHASE 3 Service & Maintenance

PT. GLOBAL HYDRO INDONESIA

Structure and team

Boy Gustiawan – Hydropower Engineer

Kusyatmo Widodo – Hydropower Engineer

Risky Mountazea – Director of Global Hydro Indonesia

M. Zahir Fathoni – Procurement Manager

Hari W. Adiputro – SmarT Project Manager Zamzam Zakaria – Engineer Manager

Rudolf Leitner – Project Manager

Eufrasia Inti Alphatia Putri – Electrical Designer

Fajri Al Kautsar – Site Manager & Comm. Engineer

2. concept & design

Main challenges when developing Small Hydropower plants in Indonesia: Licenses & Legal, Project Management • Feed-in-Tariff (FIT) uncertainty • Licensing troublesome with frequent changes • Resources and time required almost the same for all sizes of plants

Commercial • Project financing currently very difficult to get • High interest rate and hidden costs, high project risk require high FIT

Design & Technology • Powerplant design should be optimum for given location:

=>Lengthy design and development process (topography, FS, Design) => Optimum output, but not necessary best IRR

• However, many locations do have limited grid capacity => No grid, no optimum capacity

smarT – Why ?

Conclusion: => “traditional approach” requires long time and relative big resources to develop and construct small hydropower plants < 1-2 MW => current FIT does not reward this risk appropriately Solution: => simplify and speed-up development and construction cycle of small hydropower projects (< 1-2 MW) to become competitive How: => utilizing modular, pre-designed/pre-assembled products as well as “standardized” services and methodologies

smarT – Why ? (conclusion)

When fully utilizing the smarT concept, project costs of USD 2.000 - 2.500 / kW (and lower) can be achieved for

hydropower projects in the range 0,5 – 2 MW

Weir (PW)

Intake (CI)

Pipe / Penstock (HP/GP)

Power Units (PU/CU/IU)

Foundations & Tailrace (PT)

Low-height weir, pre-designed/engineered and extended according to riverbed width

Scalable Intake structures using Coanda screens

Simple penstock using GRP, HDPE or steel

Modular powerhouse using smarT power unit(s), grid connection units and island operation units (micro-grids)

Foundations for power unit modules; adding tailrace module

smarT - modules

Weir (PW)

Simple Weir with height of 0.5 - 1m, pre-engineered; adopted to width of river

Minimize civil works by using side-intake with Coanda screen

Side-Intake using Coanda screen module (CI)

• Low-Medium flow: GRP (Glassfibre Reinforced Plastics), buried or put on support blocks; DN 400 – DN 2200, PN 10

Penstock / Pressure Pipe – GRP (GP)

Power Unit (PU)

Modular “powerhouse” fully pre-assembled in 20” containers: • Fast, simple and easy to install • Limited custom design required • Significant overall cost reduction possible • Flow per Power Unit between 0,6m3/s and 2,2m3/s • Concrete foundation and tailrace using standardized design

3. commercial aspects

2253

1689 1463

1348

1282

3041

2235 1875 1681

1475

3396

2820

2312

2025

1761

25 30 35 40 45 50 55 60 65 70 75 80 85

Proj

ect C

ost (

USD)

/ pe

r kW

Gross Head

smarT 500 kW – 1 MW @ 2 m3/s, 1 PU

500m

1000m

1500m

Power (500m)

Power (1000m)

Power (1500m)

smarT – Total project cost (estimation)

smarT – Total project cost (estimation)

3700

2755 2223 1862

4857

3568

2831 2358

6150

4438

3484

2881

25 30 35 40 45 50 55 60 65 70 75

Proj

ect C

ost (

USD)

/ pe

r kW

Gross Head

smarT 250 kW - 500 kW @ 1 m3/s, 1PU

500m

1000m

1500m

Power (500m)

Power (1000m)

Power (1500m)

General Layout

Typical of PH Arrangement

Case study: 1 x 750kW Sumatera Utara

Cost per MW: IDR 27,770 Mrd Annual Output: 5,4 GWh Feed-in-Tariff: Rp. 1.050,- / kWh Capacity Factor: 76,2% IRR: 13,02%

4. smarT Offers

smarT related offers

A: Equipment Supply • GLOBAL Hydro/axerna supply required equipment • Inclusive of “standard” application documentation • Other engineering and construction made by customer • Operation of powerplant by customer • Service & maintenance contracts for smarT Power Units are possible

B: Profit Sharing / Equipment Leasing • Complete or part of powerplant from axerna • Inclusive “adaption” of standard design & overall design supervision • Construction and supervision project construction • Complete monitoring, operation and maintenance of powerplant • Leasing/profit sharing model with option for BOT

C: Co-Ownernship • Additionally axerna covers also site related works/expenses (civil)

Equipment Supply

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

Equipment Supply

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

• 100% of commercial and overall technical risk by customer • Service and maintenance contracts for smarT equipment

possible

Intake - Coanda Screen (CI)

Coanda screen modules CI-2213 500 03

• Width: 2.2m • Drop Height: 1.3m • Debit: 0.4 – 0.5m3/sec • Max. mesh size: 0.3mm • Price: EUR 9.980,- EXW Jakarta

Pipes / Penstock GRP (GP)

GRP Pipes • Max Pressure: PN 10 (Safety-factor 2) • Length per Pipe: 6m

GP-600 10 • Diameter: 600mm • Max. Debit: 0,6m3/sec @ 5% head-loss / 500m pipe length • Price: EUR 65.000,- / 500m (EUR 130,- /m) EXW Jakarta

GP-800 10: • Diameter: 800mm • Max. Debit: 1,2m3/sec @ 5% head-loss / 500m pipe length • Price: EUR 90.000,- / 500m (EUR 180,- /m) EXW Jakarta

GP-1000 10: • Diameter: 1000mm • Max. Debit: 2,25m3/sec @ 5% head-loss / 500m pipe length • Price: EUR 120.000,- / 500m (EUR 240,- /m) EXW Jakarta

Main Power Units (PU)

smarT Power Unit (PU); fully assembled in 20” powerhouse container

• Turbine: Francis Spiral Horizontal • Generator: Synchron Generator • Power Output: 250kW – 1100 kW • Head: 20m – 80m • Debit: 0,6m3/s – 2m3/s • Grid Voltage: 400V • Price Range: EUR 208.000,- until 338.500,- (EXW Jakarta)

Main Power Units (PU-FSP 1300 68)

Equipment Leasing (Profit Sharing)

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

Equipment Leasing (Profit Sharing)

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

• smarT equipment and site un-related costs by axerna/GLOBAL Hydro (app. 20-50%)

• Civil construction & site related costs by customer (app. 50-80%)

• 5 – 10 years Profit Sharing Contract • Build-Operate-Transfer (BOT) after agreement period • Project specific proposal with terms & conditions

Project/Site Co-Ownership

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

Project/Site Co-Ownership

Coanda Screens (CI)

HDPE/GRP Pipes (HP/GP)

Power Units (PU/CU/IU)

Design & Engineering

Project Management &

Supervision

axerna

Project Development Construction Operation & Maintenance

Operations & Monitoring

Maintenance

Licenses & PPA

Land Ownership

Site specific Civil

Construction

Project Management &

Supervision

Customer

• smarT equipment, civil construction and site related/un-related costs by axerna/GLOBAL Hydro/investor (app. 80 - 90%)

• Co-operating during complete PPA period • Project assessment and site specific terms & conditions

5. summary and conclusion

Investment Merits

1. Simple, reliable, and cost efficient solution smarT solution offers modular, pre-designed and pre-assembled products and methodology for hydropower projects < 2 MW

2. Ideal for fast deployment in remote areas with smaller potential Install multiple, small units at sites where FIT are best

3. “Solve” grid availability problem Install small power unit first, then increase capacity with availability of larger grid sizes by adding additional power units.

4. Quick construction

Construction period of the overall several months compared to 1.5 – 2 years

smarT – summary and conclusion