PV System Beyond Adder for Private Households, Commercial Buildings and

Industries in Thailand – Realized Cases, its Economics and Prospects

June 2013

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Content

| Annex Power company overview | From solar farms to solar rooftop systems | PV system choices for private households and small businesses| System set-up comparisons| Energy yields for solar rooftop systems | Tariff – Historical and forecasted tariffs| System sizing and cost | What are return expectations for current household owners and businessess| Needed government permits and hurdles| Final Conclusions

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Company Overview

| Annex Power spun-out of the Thai subsidiary of one of the largest renewable energy companies in the world, and has been operating independently since 2008

| The local head office is located in Bangkok, Thailand| 75 MW of projects contracted and over 50 MW of renewable energy projects constructed,

representing ~ 15% market share for EPC in the Thai solar VSPP market| More than 35% of the 100 full-time employees are experienced engineers with often multiple

engineering degrees

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Company Overview

| Annex Power is one of the leading renewableenergy company in Thailand and the SoutheastAsian region. Annex Power provides reliability,international experience and tier one equipmentto all projects. Annex Power means quality fromstart to finish.

| The Annex Power team includes experts fromevery relevant field in clean energy; engineers,technicians, biologists, financial and projectmanagers.

| Annex Power has a full time staff of 90employees, mostly engineers and technicians, alocal distribution center near Bangkok and heavyconstruction equipment to meet every projectneed.

| Together with our international and exclusivepartners, our point-of-sale outlets and our stronglocal teams, Annex Power is your one-stopcompany for renewable energy solutions inSoutheast Asia.

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Operations Overview

Solarpower

Hybrid/Wind

systems

Bioenergy

Consultancy

Projectdevelopment

On – Grid Systems Solar Power Plants Off – Grid Systems

Engineering, Procurement

and Construction

(“EPC”)Small Wind Systems Hybrid Systems

Biogas Power Plants

Wind PowerSolar Power Bio Power

Bioenergy Power Plants Solar Power Plants

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EPC Service Solutions

Plant layouts

Cost calculation

Yield analysis

Technical planning: conceptual, basic and detailed engineering

Consultancy

Commercial and technical management

Engineering Procurement Construction

PV, Wind, Biogas and Hybrid EPC Business Segment

Purchasing

Logistic services

Quality control

Consultancy

Installation

Coordination

Site supervision

Quality inspection

Commissioning

Consultancy

Technical monitoring & default analysis

Maintenance and service

Accounting

Contract controlling

Consultancy

ANNEX POWER IS AN EXPERT FROM PRE-DEVELOPMENT THROUGH CONSTRUCTION AND INTO OPERATIONS & MAINTENANCE OF RENEWABLE

PROJECTS

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O&M Service Solutions

Plant availability guaranteesFixed service ratesPreventive maintenancePlant monitoring and performance analysis24h on site plant management and controlSpare part control and stock keepingSpecial technical services

Annex Power’s local scale, technical breadth and specialization enables

them to provide premium O&M services at a lower cost than its

customers can manage independently

Technical Management Commercial Management

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Consultancy

General ConsultingDue DiligenceTechnical Consulting Environmental Issues Feasibility Studies Financial Projections Project Management Energy Audits

Annex Power enables successful development of renewable energy projects for our clients through

the following value-added consulting services:Annex Power’s Consulting services ensure that client

projects reach construction phase and are an effective entry point

from which to up-sell more substantial EPC services

Commercial and technical management

Engineering Procurement ConstructionCommercial

and technical management

ConstructionSitedevelopment Financing Engineering Procurement

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From Solar Farm to Solar Roof System

Solarta Sai Prapa PV Power Plant *

Indorama PV Power Plant ** Build by Annex Power

Carport System in the US

Commercial Rooftop System

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PV Systems for Private Households and Businesses

Pitched Roof Flat Roof

Car PortGround Mounted Custom Designs

Metal Sheet Roof

• The above systems are all project references installed by Annex Power in Thailand

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System Set-up Comparisons

PV Power Plants Small PV Systems

Installation Area Free Field Roof / Carport / Free Space

Shading Optimal shading or zero shading design Avoid shading / shading study designs

Tilt Angle Optimum design tilt and azimuth May not have the perfect tilt and azimuth

Grid Connection PEA Grid: 22kV ,115 KV 1-Phase 220V , 3-Phases 380V(No Power Transformer / MV Switchgear)

PV Modules Thin-filmCrystalline Higher focus on Crystalline More concerns on modules efficiency

Inverter Central Inverters String Inverter with 3 phases set-up

Single Phase String Inverter 3- Phases String InverterMicro-InverterMulti-MPPT inverters may be required

Monitoring Required Optional

System Sizing and Design

Maximum power output to match PPA Unlimited load model

Restricted by maximum available area Limited energy production

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Shading Effects PV Array Voltages

PV Array Shading Effects in Parallel PV Array Shading Effects in Series

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Shading Analysis Tools

| Shading analysis is crucial in the design phase| Shading calculations are important to estimate

yields and to avoid negative long-term effects on modules

Sun Eyes Shading Analysis Tools 3-D Model for Shading Calculations by PVsyst

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String Inverters

Single Phase String Inverter 3- Phase String Inverter Micro-Inverter

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Thailand Solar Irradiation Power Study

| Published by DEDE in 2010| Monthly irradiation on 7,416

Tamboons ( Sub-districts) | +/- 3 % with Meteonorm data | Average 1795 kWh/m2/Y

Irrad

iatio

n –

kWh/

m2 /y

No. of Tamboon

Distribution of Irradiation in Thailand

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System Yield Loss for PV Rooftop Systems

Field Installation Roof Installation Design Parameters

Tilt 0% - 0 % - 5.5% 0 to 40 Degree Roof Tilt

Azimuth Optimization - 0 % - 4% -90 to 90 Degree ( South facing )

Shading Loss 0.5-2 % Depends on Area

Temperature Loss 9%-13% 12%-17% Due to less air flow and heat from roof

Inverters Efficiency Loss (During Operation)

1.5%-2.0% 2%-3% Different String Set-upsDifferent Tilt and azimuth

Transformer Loss 1.5%-2.5% 0% No Transformer

Wiring Loss 1.5% 1% Shorter Wiring

Rooftop Performance Ratios are approximately > 3% less than field installations depending on site sepcifics

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PEA Electrical Price System

Type of Usage Normal TOU (Time of Usage) Peak/Off Peak

TOU Weight average for PV

Households 3.9361* 5.2674/2.1827** 4.2617

Small Business < 30 KW

3.9361* 5.2674/2.1827** 4.2617

Medium Business >30 kW , < 1 MW

2.8095** 3.9189/2.3027** 3.3920

Large Business >1 MW

TOD / 2.7815 3.7731/2.2695*** 3.2829

Hotel / Apartment >30 kW

3.9189/2.3027** 3.3920

NGO 3.5263 3.9189/2.3027** 3.3920

Agriculture Pumping 2.7549 3.7989/2.1827 3.2720

Temporary Use 6.4369 6.4369

Price = Service Charge + kWh ( Base Price or TOU +Ft+ Adder )

* > 400 kWh , ** > 22kKV *** 69KV

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Solar VSPP Electrical Sales Price (W/O) Adder

Average monthly increase over the last years; 0.66% per year

Adjust Based Price

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Ft Trends

Satang/kWh

• 3.468* % Annually increase• 1.38 Baht / kWh expected in the next 20 years

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System Size and Cost

| The costing is determined with PV roof installation

| Including BOS and installation | Study System size 1.4kWp – 43kWp | The systems cost are 104-58 Baht/Wp| The electricity cost are 78-42 Baht/KWh

Baht

System Capacity

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Small System Break Down Cost Analysis

Baht

System Size (KWp)

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Financial Models for a Tax Incentive Program

Assumptions;| New support scheme without special adder or FiT| TOU price below 22kV (Households and Small Business) | Irradiation at 1850 kWh/m2/Y | Fix Base Tariff + 3.4% increase for Ft rate| Performance Ratio 75%| IRR at 20 ,15 ,10 years| 3 different tax assumptions;

| 1- Normal cooperate tax rates (10 years depreciation, with 20% tax on profits) | 2- Normal cooperate tax rate (5 years double depreciation, 20% Tax on profits)| 3- Personal income tax rate (100% deductible on annual revenues, 30% tax on income)

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IRR – 20 Years IRR – 15 Years

Payback

Key Financial Model Results

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Key Results of the Financial Modeling

| PV rooftop systems bigger than 15kWp results in a payback within 7 years without any tax incentive scheme

| With a double depreciation tax incentive tax scheme; systems bigger than 4 kWp will result in a payback within 7 years

| With a single deducible on revenue tax incentive scheme; systems bigger than 5 kWp will result in a payback within 7 years

| A tax incentive program will increase the IRR by 5%-8%

| Off-grid systems on islands or remote areas will achieve high IRR and paybacks without any support shemes

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Required Permissions

PV System Size (kW) MEA or PEA EGAT ERC

Department of Industrial works ( Factory License

รง. 4)

Local Government

OfficeBOI

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Final Conclusions

| Technical designs and system choices are important for roof-top and off-grid systems| PV Roof systems will achieve a return of investments without any support schemes, if the

capacity of the system is big enough.| A possible TAX incentive scheme will have a direct impact on IRRs and will result in better

returns for Thai customers in the future| One main current hurdle for PV rooftop systems is the factories license requirement;

| The application process requires a lot know how, which is not available for private or small businesses

| Factories are not allowed near temples, school or in residential areas| Off-grid systems in remote areas or on islands for diesel replacements will achieve high returns

and are feasible now without any support schemes

YOUR RENEWABLE ENERGY PARTNER IN ASIA PACIFICIf you have further question, so please contact us at info@annexower.com or Tel: +66 (0) 2 660 6800