CLEAN ENERGY AND SMART GRID TECHNOLOGY

ISO 9001:2008 CERTIFIED

INNOVATION & LOCALIZATION

OUTLOOK

THE CHALLENGE / THE OPPORTUNITY

Background

• Local Talent Development

• Quality ISO, 6-Sigma

• Sustainability

• Customization

• Local service

• Affordable

• Smart Electric & Water Meters

• PM Generators

• Control CENTER Distribution Automation

• Electronics & Embedded Software

• Communication

• Control platform

• Electro-Mechanics

Technology Clean Energy & Advance

Transportation

Localization Design to

Manufacturing

Emerging Market

Utility Metering Solutions: Smart electric meter (1 & 3 Phase)

Smart water meter systems

PRODUCT FOCUS

Variable Speed PM Generators &

Converters: Small: 10 -150 kW

Medium: 200-600 KW

Large: 650 kW-1 MW

Custom engineering of components and systems. “Expertise in system integration”

End to End Solution

Danotek Motion Technologies - Confidential 5

EV Electric Steering Drives (UK )

Permanent Magnet Generators up to 3 MW

Electronics Power Converters

Clean & Energy Efficient

Transportation System Energy & Generators

CHP generator (USA)

Proven Record for US & EU market

USA

dVentus Ethiopia Engineering & Production

Addis Ababa: Engineering Center => <= HQ & Grid Monitoring

Development Center

Bahir Dar: Electronics & Smart Meter Manufacturing (to be commissioned 1Q 2016)

2 Million Smart Meter Capacity

OUTLOOK

57

5452

90

65

Ethiopia vs United Kingdom

Source: IMF. 2015

Population size, Share of GDP in the world

(2015, million, %)

0.14%

2.35%

Un

ite

d

Kin

gd

om

Share of GDP

Eth

iop

ia

Population

26%

100%

Un

ite

d

Kin

gd

om

E

thio

pia

Access to Electricity

Energy Consumption

Electric per capita consumption, access to electricity

(2015, kWh, % of population)

06 07 08 09 10 11 12 13 14 1506 07 08 09 10 11 12 13 14 15

The country as well as the continent has been experiencing a sustainable economic growth for the past 10 years

Source: IMF. 2015

CAGR 9%

ETHIOPIA

740 $

1774 $

GDP per capita (2006- 2015, in PPP USD $)

2,648 $

3,833 $

GDP per capita (2006- 2015, in PPP USD $)

CAGR 4%

AFRICA

4,475 $

CAGR 6%

2030

CAGR 6% CAGR 5%

7,589 $

2,500 MW

8,336 MW

34,035 MW

2015 2018 2030

Demand projection is in line with EEPCo demand planning

Installed power

Ethiopia’s Electricity Generation (2015-2030, in GW)

With this growth rate the demand for electricity and energy is

expected to reach ~34GW by 2030

Growth size – 31GW

2011 2015 2040

World energy outlook

96,000 MW

132,000 MW

385,000 MW

Installed power

Africa’s Electricity Generation (2011-2030, in GW)

Growth size – 290GW

Source: EEPCo; World energy council, 2007

70 GW

The continent has an enormous resource potential specially in

renewable energy

Geothermal 10 GW

Solar 100 MW

Wind 10 GW

Biomass 0.4 GW

Hydro 45 GW

Geothermal 15 GW

Solar 480 MW

Wind 1300 GW

Hydro 283 GW

1.5 TW

THE CHALLENGE

National electrification rate%

Urbanelectrification rate

%

Ruralelectrification rate

%

43%

68%

26%

32%

59%

16%

23%

85%

10%

Ethiopia Sub-Saharan Africa Africa

LOW RATE OF ELECTRICITY ACCESS IN THE RURAL AREAS

CURRENTLY

PROMISING OUTLOOK

1 billion people are projected to

gain access to electricity

Renewables will provide >40% of

power generation capacity

However, 530 million people are

projected to remain without

electricity mainly in rural areas

because of rapid population

growth.

By 2040

OFF-GRID INVESTMENT

OPPORTUNITIES

High Voltage (400KV/120KV)

Load dispatch center (LDC)

High Voltage

Medium Voltage (33KV/15KV)

Low voltage ( 230/380)

Pre-paid meter

Analog meter

Switching Stations

3ɸ

INEFFICIENT DISTRIBUTION Frequent outages

Overload Unbalanced load Poor power quality Poor revenue collection Outdated infrastructure Energy Theft

25-35% Loss

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2011 2013 2015 2017 2019 2021 2023 2025 2027 2029

Challenges

[mil. $]

Cumulative capacity costs (2011- 2030, in mil. $)

Source: EEPCo Strategic Plan Summary (December 2009), own calculations

65,071

2030

By 2030 Cumulative Investment = $65 Billion USD to reach Capacity

Generation Transmitions Distribution

• Substations • Secondary Substations • Transformers • Distribution lines

Additional

IPP Feed In Tariff Low cost electricity $/KWhr Poor distribution network

POWERING AFRICA Smart Grid Solution

High Voltage (400KV/120KV)

Load dispatch center (LDC)

High Voltage

Medium Voltage (33KV/15KV)

Data

concentrator

with transformer

station systems

Low voltage ( 230/380

Smart meter

Condominiums Villas

DCU meter

Smart meter

Switching Stations

SCADA meter

3ɸ

dVentus Meter Data Management System (dMDMS)

Reduced outage Maintenance Load balancing Load shading Demand side

management Power quality Reduced loss Forecasting Ease of scale up

Accurate billing Pre-Post Pay Theft control Asset

management Better customer

service

dVentus Grid Monitoring System

Smart Metering & Distribution Automation System

dVentus Technologies 19

Replacement & Expansion

Ethiopia: Replacement: 2 Million meters Market: 5 Million meters

Africa: $3 Billion USD Market

12371

58,695

8919

48,306

53,500

27.9%

26.0%

23.6%

21.2%

19.0%

17.9% 17.9% 17.9% 17.8% 17.7%

14.0% 13.0%

11.8%

10.6%

9.5% 9.0% 9.0% 9.0% 8.9% 8.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0

10000

20000

30000

40000

50000

60000

70000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Po

we

r Lo

ss

Ge

ne

rati

on

, [G

Wh

]

Year

Energy delivery and estimated reduction of losses with Smart metering system 10 years forecast

Generation [GWh]

Sales Net [GWh]

Sales Net with SM [GWh]

Estimate Loss [%]

Estimate Loss with SM

Source: Simulation based on Parsons Brinkerhoff’s EEPCo master plan 2013

10% -15%

Business Case for Smart Meters

Payback period 4.2

IRR 58.7%

Increased earning over 10 years

$ 667.7 M

Entry Point

• Project Financing

• Investment (private equity)

• Partnership

• Corporate Establishment

Don’t wait too long!

Not needed

Thank YOU

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2011 2012 2013 2014 2015 2016 2017 2018

1) Actual according to EEPCo Strategic Plan Summary (December 2009) Source: EEPCo Strategic Plan Summary (December 2009); IMF World Economic Outlook Database (April 2010); Center for Strategy and Leadership: Export Opportunities for Ethiopian Wind Turbines (2009), based on UN data, CIA World Factbook; NEFAS calculations on basis of GDP forecast and increase of electricity demand over time to 250 Wh per 1$ of GDP PPP

[GWh]

Electricity demand – EEPCo supply and GIZ demand projection 2011 - 2018 (in GWh)

Gibe IV 1,472 MW

Gibe III 1,870 MW

~ 50% of supply increase

depends on only two projects in

Gibe which have experienced

long delays in the past

Supply planning

Delayed supply scenario2)

Demand projection

Opportunity costs: 8,823 mil. US$1)

Opportunity costs: 236 mil. US$1)

Demand increases to 28,9 TWh

until 2018

Average capacity factor

improves from 28% today to

43% in 2018

Additional capacity requirement

until 2018 is 6,836 MW

Supply assumptions

Supply gaps have occurred and will continue to occur due to failure to

make the required investment