Abengoa Solar's Annual Report

ABENGOASOLARSolar Energy for a Sustainable World

Annual Report 2014

> Annual Report 2014 > Table of Contents p. 3ABENGOASOLAR

— 04Letter from the CEO

— 06Key Figures

— 11Our Technology

— 21Solar Plants

— 37Products and Services

— 51Social Responsibility

— 59Management Structure

Table of Contents

Copyright © 2015 Abengoa Solar, S.A. All rights reserved.

This report, along with Abengoa Solar’s Corporate Social Responsibility annual report, is available on www.abengoasolar.com

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ABENGOASOLAR > Annual Report 2014 > Letter from the CEO p. 5> Annual Report 2014 > Letter from the CEO p. 4

Letter from the CEO

Armando Zuluaga ZilbermannCEO of Abengoa Solar

It is a pleasure for me to share with you the company’s annual results for 2014. From many perspectives, 2014 was an excellent year. In the past twelve months, Abengoa Solar was able to maintain its growth in the solar thermal sector through advances in the development and implementation of new and more competitive technologies, in the development of new projects, and in the operation and maintenance of projects after completing their construction. Additionally, the company incorporated many interesting options to our offer in the area of photovoltaic technology.

2014 has been a particularly relevant year due to the consolidation of our Operations and Maintenance (O&M) division. With the start of the commercial operation of Mojave Solar in California (U.S.), which has an installed capacity of 280 MW and has recently started selling its power production to Pacific Gas and Electric, we have strengthened our position as the largest operator of Solar Thermal Electric (STE) plants in the world. At the close of the year, Abengoa Solar operated a portfolio of 1,591 MW of STE installed capacity, including both parabolic trough technology and tower technology plants. Our company is the only operator with more than five years of experience in the operation of both technologies. Due to their excellent design, high quality construction and the hard work of our experts in O&M, our plants reached more than 2,000 GWh last year. Given the large portfolio of assets in operation under its responsibility, Abengoa Solar has been able to implement an innovative and efficient program of standardization and benchmarking that allows for continuous improvement in all our plants. Thus we are able to make the most of the experience

curve resulting from the monitoring of the assets and the thorough optimization and automation of processes.

We have also increased our presence in the world. In 2014, we began construction of the Atacama 1 Complex in Chile, which will be the largest solar complex in Latin America. Atacama 1 will mark a milestone, not only in terms of solar generation capacity on the continent, but it is also the first plant to combine a 110 MW solar thermal technology with molten salts tower technology and 17 hours of thermal storage with a 100 MW photovoltaic plant with a single axis tracking system. This solar complex will be able to generate clean and affordable energy 24 hours a day and, for the first time, solar energy will be able to supply baseload power to an electric system in a way that is competitive with conventional sources. This flexibility permits our clients to meet their peak demand at any time, day or night.

Moreover, in 2014 we were able to secure financing, sign the power purchase agreement for, and start construction of Xina Solar One; our third power plant in South Africa. Xina Solar One will feature parabolic trough technology, with an installed capacity of 100 MW and a storage system that allows for continuing electricity generation for up to five hours without receiving solar radiation. This project helps us meeting the goal of continuing to grow in a country pioneering the integration of renewable energies in the energy mix. Thanks to this sustained development, the construction of our plants in South Africa keeps a high percentage of local content, which both enriches the region and generates high-quality jobs.

In line with the continuous growth and development of new opportunities, in 2014 we focused on asset rotation within Abengoa’s capital recycling strategy. Solana, Mojave, Solabén 2 and 3, and Solacor 1 and 2 were sold to Abengoa Yield, with Abengoa Solar remaining as operator, allowing for an early return on investment that provides for continued investment in new projects.

All of our projects are possible thanks to our continuous and dedicated efforts towards the development of our own technology. All of our plants are built with Abengoa technology, either independently or by means of strategic agreements with technology partners who are leaders in their sectors. Many of the components of our plants are also proprietary technology that we manufacture for third parties, thereby generating an added value to our R&D investments. Likewise, the operation of our plants is carried out using devices and tools developed in our R&D centers in Spain and the United States. The development of these tools, together with the extensive experience of our operators, increases the quality of our O&M services and differentiates ourselves in the marketplace. Similarly, our efforts in technology development have led us to a position where we can offer innovative thermal or electric storage solutions to our clients. In the coming years, the development of these storage systems will significantly change the configuration of electric systems in the most developed economies in the world.

But apart from that, Abengoa Solar has the vocation to affect sustainable economic development in the communities where it is present. In 2014, the company consolidated its responsible management model, which establishes guidelines for a business committed to economic, social and environmental local context. Every year, we attract local-talent to and stimulate wealth in economies by prioritizing local supply chains: a formula for added value. At the same time, the excellence of our innovations has permitted us to reduce the negative impacts of our activity and maximize the positive impacts.

Similarly, the company has encouraged relationships with local communities where it develops its projects. In 2014, we began to apply London Benchmarking Group’s (LBG) criteria for social action measuring, which permits us to value the return on social investment. Abengoa contributed to the development of infrastructures, education and the conservation of cultures. Responsible management is reinforced by the strict control that the company maintains at its facilities. For this reason, the Corporate Social Responsibility division of the company has, since 2011, provided a risk analysis to identify facilities which are vulnerable in Environmental, Social and Governance (ESG) matters and to put into practice specific action plans that permit these facilities to mitigate identified risks.

As an example of our commitment to meet the highest standards of transparent management, our accounts have been audited under the Public Accounting Oversight Board (PCAOB) standards. Our internal control system is audited according to the audit standard No. 5 of the PCAOB. Our Corporate Social Responsibility annual report is audited externally under the guidelines established by norms ISAE 3000 and AA1000.

Finally, I would like to publicly offer my gratitude to each and every person who is part of the excellent team of professionals at Abengoa Solar, and to all of our collaborators and partners in the projects currently under development, for the work done during the past year. The degree of efficiency and excellence reached is only possible with a committed team that works every day to become even better. And of course, my acknowledgement goes out to all of our clients for the trust they place in Abengoa Solar’s technology solutions for a sustainable world.

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1,653

1,863

2,283

> Annual Report 2014 > Key Figures p. 7> Annual Report 2014 > Key Figures p. 6

Installed capacity

At the end of 2014, Abengoa’s solar business had a total of 2,283 MW installed, of which 1,603 are in operation, 360 are under construction, and 320 are in pre-construction. These figures represent a 23 % increase in the installed capacity compared to the previous year. These figures include proprietary plants as well as plants operated by Abengoa Solar for third parties.

Patents

Abengoa Solar is a leader in the development of solar technology with 182 patents, 17 of them granted in 2014.

Production

With the coming online of new plants, the production of energy from our facilities increased 57% in 2014. This figure includes proprietary plants and plants operated by Abengoa Solar for third parties.

CO2 emissions prevented annually

Reducing CO2 emissions is one of Abengoa’s

commitments, and one of the main benefits that solar thermal plants offer to society. In 2014, our plants prevented the emission 720,776 tons of CO

2

into the atmosphere.

Employees

By the end of 2014, Abengoa Solar employed more than 1,500 people, including employees and operators, distributed among the five continents.

Power by geographic area

Abengoa Solar geographically diversified its installed capacity, including projects in operation, under construction and in pre-construction.

Total number of employees1,562

65.9% Spain 1,02921.1% North America 3301.2% Central and South America 19

5.7% Africa 895% Middle East 781.1% Other 17

910

430

360

320

320

743

138

160

182

964

65.9%

21.1%

5.7%5%

1.1%

1.2%

Spain 693U.S. 560Chile 420

South Africa 250 Other 360

Spain693

U.S.560

South Africa250

Chile420

Other360

in MW in GWh

patents filed and granted

in tons of CO2

in MWemployees by region

1,223

1,603

1,310

2,052

379,816

516,140

720,776

In operationUnder constructionPre-construction

KaXu Solar One• Construction of KaXu Solar One was completed in 2014. It is

the first solar thermal electric power plant in South Africa and

the largest parabolic trough plant in the Southern Hemisphere.

• With an installed capacity of 100 MW, it generates enough

electricity to supply approximately 80,000 households.

• It prevents the emission of 300,000 tons of CO2 tannually.

• The plant features a thermal molten salt storage system with

storage up to 2.5 hours, permiting the generation and supply

of clean energy to the grid in a stable way.

• The project has contributed to strengthening the local

business network.

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Abengoa is a worldwide leader in electricity generation through solar thermal energy due to constant development and innovation, along with its capacity to offer adaptable technology solutions to its clients.

Believing that technological leadership and innovation are keys for the development of its business activities, Abengoa is making an important effort in R&D and in the development of pilot plants in advance of the commercial development of its technology.

With 182 patents, 17 of them granted in 2014, Abengoa maintains a leadership position in the development of solar thermal technologies. To achieve these results, Abengoa collaborates with major solar energy research centers worldwide.

Our Technology

> Annual Report 2014 > Our Technology p. 11> Annual Report 2014 > Our Technology p. 10

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ABENGOASOLAR > Annual Report 2014 > Our Technology p. 13> Annual Report 2014 > Our Technology p. 12

Our Technology

Parabolic trough• With thermal oil as a heat transfer fluid

• With thermal storage with molten salts (1-24 hours)

Solar Thermal Electric Technology:clean and dispatchable

Hybrid technology:dispatchable and sustainable

Stand-alone storage technology

Photovoltaic technology:intermittent and clean

Tower• Steam towers

• Super-heated steam towers With steam storage (0-3 hours)

• Saturated steam towers With steam storage (0-3 hours)

• Moltensaltstowers With storage with molten salts (1-24 hours)

Hybrid• Solar + Gas

• ISCC – parabolic trough technology combined with natural gas combined cycle

• SolGasMix – tower technology combined with natural gas combined cycle

• Solar+Coal

• ISCoal – STE technology combined with a coal power plant

Photovoltaics• Conventional PV

• HCPV (High Concentration PV)

Mojave Solar, with 280 MW of installed capacity, is capable of supplying energy to 90,000 households PS20 was the world’s second solar thermal tower plant in commercial operation.

Solar Thermal Electric Technology: clean and dispatchable.Solar Thermal Electricity technology utilizes solar radiation to generate electricity on demand.

Abengoa Solar is the leader in the design, development, construction, and operation of tower and parabolic trough technologies with thermal storage systems.

Tower technology

In tower technology, a field of heliostats concentrates solar radiation onto a receiver located at the top of a tower. In the receiver, the heat is transferred to a Heat Transfer Fluid (HTF), which is used to produce the steam needed to drive a turbine and generate electricity.

• MoltensalttowerAbengoa develops molten salts towers which are able to produce super-heated steam at 1049º F and 130 bars of pressure. In 2014, this technology reached a degree of competitiveness with conventional sources in those areas with a high solar radiation level that do not have their own reserves of fossil fuels.

• Super-heatedsteamtowerAbengoa is currently building the first commercial tower with super-heated steam, Khi Solar One in South Africa, which is able to produce super-heated steam at 986º F and 120 bars of pressure as a result of the R&D efforts carried out by the company at the Solucar platform (Seville, Spain).

• SaturatedsteamtowerAbengoa designed, built and now operates the world’s two first commercial towers, PS10 and PS20. These towers feature a direct saturated steam generation technology at 482º F and 45 bars of pressure.

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Abengoa has 18 plants with parabolic trough technology in commercial operation in the world


Parabolic trough technology

This technology concentrates solar radiation using parabolic trough collectors by heating a Heat Transfer Fluid (HTF) that circulates inside receiver tubes located in the focal point of the collectors.

This fluid reaches approximately 752º F and is used to generate steam which powers a turbine that generates clean electricity. In 2014, two parabolic trough plants, KaXu Solar One with 100 MW and Mojave Solar with 280 MW, started commercial operation. Abengoa started operation of more than 1,400 MW of parabolic trough technology in the last five years.

Solar thermal R&D

•SolarfieldAccording to a statistical risk analysis, Abengoa’s heliostats and parabolic trough collectors achieved a structural optimization performance level when facing wind loads. The company is currently working on the optimization of the manufacturing processes, focusing on the production of various components, as well as automation during the assembly phase and field calibration.

•SolarreceiversAbengoa, within the BECMAT project, set up a full-scale test bench that simulates the operating conditions of the panels that form the solar receiver in molten salts solar thermal towers, thus enabling optimization of design and validation of future developments.

Storage technology

Thermal energy storage offers valuable advantages that make solar thermal technology different from other renewables and competitive with conventional sources. Abengoa develops, among others, the following thermal storage systems:

• StoragewithmoltensaltsThermal energy storage systems allow solar thermal plants to produce electricity without solar radiation being present. Mixtures of sodium nitrate and potassium nitrate can store heat at high temperatures. Storage temperatures for parabolic trough plants range between 536º and 752º F, but can reach above 1022º F for tower plants. This allows for the design of solar plants that can meet baseload or peak demand of the grid. This storage technology is used in Solana and KaXu Solar One, in addition to Atacama 1, which is currently under construction.

• SteamaccumulatorThis technology is utilized in PS10 and PS20 in Spain, and in Khi Solar One in South Africa. It is a thermally insulated pressure tank that accumulates steam. These plants can meet peaks of demand or allow for production of electricity during transient cloudy periods for up to 3 hours.

Stand-alone storage systems

Electric grids with a high percentage of its installed capacity coming from intermittent renewable sources present stability problems. Abengoa Solar has designed a stand-alone storage system that permits energy accumulation in order to cover the intermittency periods of other renewable sources. To achieve this, the system utilizes thermal energy storage technology to generate power to meet the electricity demand.

Storage R&D

Abengoa is currently conducting R&D studies in:

• Thermalstorage,atconstantorvariabletemperatures

Research is being done in new materials and fluids that allow for the storage and release of energy at higher temperatures and/or an increase in energy density per square meter of storage system.

• ThermochemicalstorageSolar energy is stored as chemical energy by means of a reversible chemical process that permits the release of energy adaptable to demand. Abengoa, together with the National Renewable Energy Laboratory (NREL) and the Colorado School of Mines (CSM), was selected by the U.S. Department of Energy (DOE) to develop a new storage technology for solar thermal plants, and to study thermochemical storage cycles with perovskites.

CO2: receiver and storage.

In Australia, Abengoa is leading a pilot project on solar thermal electric tower technology to assess the commercial viability of using CO

2 at high temperature

as a working fluid. The Commonwealth Scientific and Industrial Research Organization (CSIRO) is collaborating on the project.

Three key elements have been developed within the project: a solar receiver that uses high temperature CO

2 as a working fluid, a thermal storage system, and

a CO2 steam generator able to operate at 1382º F.

These developments will result in more efficient thermodynamic cycles and lower technological costs.

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Hybrid technology results in projects which reduce CO2 emissions and meet changes in demand in a flexible way


HCPV technology achieves concentration levels of more than 1,300 suns

Hybrid technology: dispatchable and sustainableAbengoa continues to pursue hybrid solar thermal-gas projects. The company was a pioneer in hybrid technology by developing the world’s first two ISCC (Integrated Solar Combined Cycle) plants, in Algeria and Morocco.

Hybrid technology offers the following advantages: • Continuousgenerationwithflexibilitytomeet

changes in demand • Drasticreductionofemissions• Highefficiency• Highsolarintegration• Competitivepricewithconventionalplants

Abengoa’s technology can be easily combined in processes as desalinization. Abengoa was awarded, in 2014, the construction of the first large-scale desalination plant to be powered by solar energy, in collaboration with Advanced Water Technology (AWT). This pioneer project, located in Saudi Arabia, incorporates a photovoltaic plant that will be capable of supplying the power required by the desalination process, significantly reducing the operational costs.

Photovoltaic technology: intermittent and clean

Abengoa offers conventional Photovoltaic (PV) technology and High Concentration Photovoltaic (HCPV) technology. HCPV offers higher efficiency and performance levels than conventional silicon modules in those locations with high direct solar radiation.

Photovoltaic R&D

Abengoa reached an agreement in 2014 with the École Polytechnique Fédérale de Lausanne (EPFL) to define the manufacturing process of photovoltaic cells based on perovskites. Abengoa also extended a CRADA agreement with NREL for the development of HCPV technology with cells II-V.

In addition, Abengoa is involved in the development and evaluation of Low Concentration Photovoltaic solutions using the synergies between parabolic trough collectors and high efficiency photovoltaic cells.

Soland Center, located in Sanlúcar la Mayor (Seville), is Abengoa’s research center for the development of photovoltaic technology. It has contributed improvements in the process from the research phase to the commercial use of new technologies.

Mojave Solar• Mojave Solar started commercial operation at the end of 2014.

• With a total installed capacity of 280 MW gross, Mojave Solar

can provide clean energy to 90,000 households in California.

• It prevents the emission to the atmosphere of approximately

200,000 tons of CO2 annually.

• It contributes toward the target set by California’s governor

of generating 50% of the overall electric production with

renewable energy sources by 2030.

• It is an environmentally committed project, which has been

supported by California’s major environmental associations

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ABENGOASOLAR > Annual Report 2014 > Solar Plants p. 21> Annual Report 2014 > Solar Plants p. 20

Abengoa Solar develops, builds and operates solar thermal and photovoltaic proprietary plants for itself and for third parties. It currently has a total installed capacity of 1,603 MW in commercial operation, 360 MW under construction and 320 MW in pre-construction, distributed among 32 plants worldwide.

Solar Plants

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Solana

Atacama 1

Parabolic trough

Hybrid

Tower

Photovoltaics

Offices

Atacama 2

Hassi R MelMojave Solar

El Carpio Solar Complex

Shams – 1

Ashalim

Extremadura Solar Complex

Castilla La Mancha Solar Complex

Solucar Complex

Ecija Solar Complex

KaXu Solar One Khi Solar One

Xina Solar One

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Solana Solana, a parabolic trough plant with an installed capacity of 280 MW gross, achieved its first year of commercial operation in 2014, producing clean energy to meet a demand equivalent to 71,000 households in Arizona.

Mojave Solar The start of the commercial operation of Mojave Solar, in December 2014, was an important contribution to California’s energy future, helping to meet the target set by the governor of generating 50% of the production of electricity with renewable sources by 2030.

Location: Arizona, U.S.Output: 280 MW grossTechnology: Parabolic trough with molten salts storage (6 hours)Householdssuppliedwithcleanenergy: 71,000Tons of CO2 emissions prevented per year: 427,000Status: In OperationOperator: Abengoa Solar

Location: California, U.S.Output: 280 MW grossTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 90,000Tons of CO2 emissions prevented per year: 200,000Status: In OperationOperator: Abengoa Solar

Thermalstoragesystemwithmoltensaltsallowstheplanttoproduceelectricityatmaximumoutputduring6hourswithoutsun.

It guarantees stable production, day and night.

MojaveSolarprovidesenoughcleanenergy,free from greenhouse gases, to supply approximately 90,000 households.

It prevents the emission of 200,000 tons of CO2 annually.

TheprojecthasbeensupportedbyCalifornia’smajorenvironmentalorganizations

> Annual Report 2014 > Solar Plants p. 25> Annual Report 2014 > Solar Plants p. 24

Solucar ComplexSolucar Complex is a unique technological center that houses all existing types of solar technologies in commercial plants, pilot plants and R&D labs.It has an overall installed capacity of 183 MW distributed among two STE tower plants, three STE parabolic trough plants, and two photovoltaic plants. It features the world’s first two commercial solar thermal plants with tower technology, PS10 and PS20.

Extremadura Solar Complex

Location: Seville, SpainOutput: 183 MW (5 independent commercial plants)Technology: Tower (20 MW, 11 MW) with steam storage, Parabolic trough (3x50 MW) and PV (2x1 MW) Householdssuppliedwithcleanenergy:94,000Tons of CO2 emissions prevented per year: 114,000Status: In OperationOperator: Abengoa Solar

Location: Cáceres, SpainOutput: 4 x 50 MWTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 104,000Tons of CO2 emissions prevented per year: 125,000Status: In OperationOperator: Abengoa Solar

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Ecija Solar Complex

El Carpio Solar Complex

Location: Seville, SpainOutput: 2 x 50 MWTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 52,000Tons of CO2 emissions prevented per year: 62,800Status: In OperationOperator: Abengoa Solar

Location: Córdoba, SpainOutput: 2 x 50 MWTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 52,000Tons of CO2 emissions prevented per year: 62,800Status: In OperationOperator: Abengoa Solar

Castilla-La Mancha Solar Complex

Photovoltaic plants in Spain Abengoa has five photovoltaic plants in different locations in Spain, adding an additional 12 MW to its portfolio.

Location: Ciudad Real, SpainOutput: 2 x 50 MWTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 52,000Tons of CO2 emissions prevented per year: 62,800Status: In OperationOperator: Abengoa Solar

LasCabezasPV CasaquemadaPV SevillaPV CoperoPV LinaresPV

Output 5.7 MW 1.9 MW 1.2 MW 1 MW 1.9 MW

Technology Single axis tracking system

Two axis tracking system with high and low concentration modules

Two axis tracking system with low concentration modules

Two axis tracking system

Two axis tracking system

Location Las Cabezas de San Juan, Seville

Sanlúcar la Mayor, Seville

Sanlúcar la Mayor, Seville

Dos Hermanas, Seville Linares, Jaen

Start of operation 2008 2008 2006 2008 2008

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Location: Northern Cape, South AfricaOutput: 100 MWTechnology: Parabolic trough with molten salts storage (2.5 hours)Householdssuppliedwithcleanenergy: 80,000Tons of CO2 emissions prevented per year: 300,000Status: In OperationOperator: Abengoa Solar

Location: Northern Cape, South AfricaOutput: 100 MWTechnology: Parabolic trough with molten salts storage (5 hours)Householdssuppliedwithcleanenergy: 90,000Tons of CO2 emissions prevented per year: 398,000Status: Under constructionPartners: Abengoa Solar, IDC, PIC, and Kaxu Community Trust

It incorporates an advanced dry cooling systemthatallowsforareductionintheconsumptionofwater.

It encourages socioeconomic development in theregionbycreatingmorethan1,000jobsduringconstructionand80permanentjobsduring the operation and maintenance of the plant.

Morethan1,300jobswillbecreatedduringconstruction.

XinaSolarOnewillbelocatedclosetoPofadder, in Northern Cape, next to KaXu Solar One.

KaXu Solar One KaXu Solar One is the first solar thermal power plant to come online in South Africa. The project is integrated in the South African government strategy to satisfy energy demands of the country. It incorporates a storage system able to produce electricity for up to 2.5 hours during transitory cloudy periods or after sunset.

Xina Solar OneIn 2014, Abengoa started the construction of Xina Solar One, which will be located in Pofadder, next to KaXu Solar One. This plant, with an installed capacity of 100 MW, features parabolic trough technology and a thermal energy storage system with molten salts of five hours. Together, these two plants of 100 MW each will shape the largest solar complex in the Sub-Saharan region and in the Southern Hemisphere.

Khi Solar One Khi Solar One features technological advancements in its design that will make this project one of the most innovative on the African continent. It will incorporate tower technology and thermal storage with steam for up to two hours to bring stability to electric production in the region. In 2014, Abengoa completed the construction of the solar field and the receiver.

Shams-1 Shams-1 features, among other innovations, a dry cooling system. The project was developed through a joint venture formed by Masdar Total and Abengoa Solar.

Location: Northern Cape, South AfricaOutput: 50 MWTechnology: Tower with steam storage (2 hours)Householdssuppliedwithcleanenergy: 45,000Tons of CO2 emissions prevented per year: 183,000Status: Under constructionPartners: Abengoa Solar, IDC and Khi Community Trust

Location: Abu Dhabi, United Arab EmiratesOutput: 100 MWTechnology: Parabolic trough Householdssuppliedwithcleanenergy: 20,000Tons of CO2 emissions prevented per year: 175,000Status: In OperationOperator: Abengoa Solar and Total

RepresentsanimportantsteptowardstheintegrationofrenewablesinAbuDhabi,whichhasatargetof7%oftheoverallenergyproducedtocomefromrenewablesources by 2020.

The plant prevents the emission of approximately 175,000 tons of CO2 each year.

It incorporates an innovative dry cooling systemthatreduceswaterconsumptionup to 80%

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Hassi R’Mel This plant features solar hybrid technology with combined cycle and has an installed capacity of 150 MW, 20 MW of which come from a solar field of parabolic trough collectors with thermal oil and a reflecting surface of 180,000 m2. The innovative aspect of the project is the use of the heat generated in the steam turbine, which utilized the residual heat of the gas turbine.

Ashalim This facility, with 110 MW and of parabolic trough technology, will be the largest solar thermal plant in Israel. The plant will feature the latest technology, designed by Abengoa, and will store energy to produce electricity on demand after sunset.

Location: Hassi R’Mel, AlgeriaOutput: 150 MWTechnology: Hybrid with combined cycle gas-solar Tons of CO2 emissions prevented per year: 175,000Status: In OperationOperator: Abengoa

Location: Negev, IsraelOutput: 110 MW Technology: Parabolic trough with storageHouseholdssuppliedwithcleanenergy:63,000Tons of CO2 emissions prevented per year: 300,000Status: Pre-constructionPartners: Shikun & Binui and Abengoa Solar

Atacama1 Atacama 1 will be the largest solar complex in Latin America. Located in the Atacama desert, an area with one of the best radiation levels in the world, it will feature a 100 MW photovoltaic plant and the first solar thermal plant in Latin America, with 110 MW and 17.5 hours of thermal storage.

Atacama 2

Location: Maria Elena, ChileOutput: 210 MW (2 independent commercial plants)Technology: Tower with molten salts storage (17.5 hours) and photovoltaics Householdssuppliedwithcleanenergy: 410,000Tons of CO2 emissions prevented per year: 864,000Status: Construction

Location: Sierra Gorda, ChileOutput: 210 MW (2 independent commercial plants)Technology: Tower with molten salts storage (15 hours) and photovoltaics Householdssuppliedwithcleanenergy:410,000Tons of CO2 emissions prevented per year: 864,000Status: Pre-construction

Thesolarthermalplantwillprovideastablesupply of electricity 24 hours a day to mining companies and households in Northern Chile, aswellastoregulatedclientsinChiletomeetthe needs of Chilean electric system.

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Name of the plant MW Technology Location

PS10 11 Tower with steam storage Seville, Spain

PS20 20 Tower with steam storage Seville, Spain

Solnova 1, Solnova 3 and Solnova 4 150 (50 x 3) Parabolic trough Seville, Spain

EcijaSolarComplex 100 (2 x 50) Parabolic trough Seville, Spain

El Carpio Solar Complex 100 (2 x 50) Parabolic trough Cordoba, Spain

CastillaLaManchaSolarComplex 100 (2 x 50) Parabolic trough Castilla-La Mancha, Spain

Extremadura Solar Complex 200 (4 x 50) Parabolic trough Extremadura, Spain

Solana 280 Parabolic trough with molten salt storage Arizona, United States

MojaveSolar 280 Parabolic trough California, United States

HassiR’Mel 150 Hybrid ISCC Hassi R Mel, Algeria

Shams – 1 100 Parabolic trough Abu Dhabi, United Arab Emirates

KaXu Solar One 100 Parabolic trough with molten salt storage Northern Cape, South Africa

Photovoltaic (x 5) 12 Photovoltaic Spain


Khi Solar One 50 Tower with steam storage Northern Cape, South Africa

Xina Solar One 100 Parabolic trough with molten salt storage Northern Cape, South Africa

Atacama 1 210 Tower with molten salt storage + PV Maria Elena, Chile


Atacama 2 210 Tower with molten salt storage + PV Sierra Gorda, Chile

Ashalim 110 Parabolic trough with molten salt storage Negev, Israel

Plants in operation

Plants under construction

Plants in pre-construction

Abengoa has 25 plants in commercial operation worldwide

Atacama 1• Abengoa started the construction of Atacama 1 in 2014.

• It will be the largest solar complex in Latin America.

• It is formed by a 110 MW solar thermal plant with 17.5 hours

of storage, and a 100 MW photovoltaic plant.

• It will be able to supply clean energy to the mining industry

and households, as well as to regulated clients in Chile in

order to meet the needs of the electric system.

• It reduces annual emissions by 864,00 tons of CO2.

• By means of the storage system, Atacama 1 will be able to

provide a stable supply of clean energy 24 hours a day.

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Products and Services

> Annual Report 2014 > Products and Services p. 37> Annual Report 2014 > Products and Services p. 36

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O&M Services

2014 has been a year of major advances in our O&M business unit. The ground base for such development is the standardization of operation procedures, management, indicators and preventive maintenance processes. By means of such standardization we collect all knowledge resulting from the operation experience of Abengoa Solar – the company with the most plants in operation in the world – assuring a regulated application in all the plants operated by the company. Thus, we optimize the quality of our O&M services, guaranteeing the reliability of the plants through their decades in operation and reach the most competitive O&M prices in the market. In this

Abengoa offers its know-how for plant O&M to third parties


Areas of specialization:

• Operation

Our long-term experience provides us with highly qualified personnel in the management of STE plants. The operation of plants encompasses the following activities:

- Weather forecasting - Production model execution - Interaction with electric markets - Production monitoring and analysis - Tracking and planning for solar field cleanning

In addition to these centralized services of operation, Abengoa Solar offers commissioning and performance optimization to third parties.

• Maintenance

Abengoa has experts in different disciplines such as mechanics, electricity, solar field cleaning, water treatment plants, software control, and instrumentation of the solar field.

The preventive maintenance team, created in the first quarter of 2013, performs tasks necessary to reduce the number of corrective actions, anticipating potential failures of equipment through comprehensive monitoring and post-analysis of selected component performance.

• Technicalauditsandoptimizationofplants

Abengoa Solar offers other companies technical audits and plant optimization services. Audits identify critical areas to offer solutions to heighten plant production. We guarantee greater electrical generation and resource optimization, leading to higher revenues.

• Managementcenter

In 2014, Abengoa developed management centers to centralize services of engineering processes, communications support, electronics and control, documentation, new projects, and reporting. All of this has made it possible to optimize the O&M services of our plants, with significant improvements in production.

regard, managing lessons learned is a fundamental tool, which we have been using successfully for years.

Abengoa offers different options to external partners to assist their specific needs:

- Complete management of O&M services in the solar thermal plants

- Specific outsourcing of areas of O&M- Specific products: components, optimization and

outsourcing

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O&M Equipment

Abengoa Solar designs, develops and manufactures a diversified portfolio of products for the evaluation, optimization and efficient procedure of both our own plants and third-party projects.

Condor reflectometer

This is a portable device used to accurately measure the reflectivity of both curved and flat mirrors of different thicknesses. It automatically provides the mirror’s Solar Weighted (SW) reflectivity measured in 6 wavelength across the solar spectrum. It can be used both in the solar field and the lab due to its speed, strength and accuracy of measurement.

Testing bank for tubes

This is a component for the complete and high accuracy evaluation of the optical and thermal properties of the receiving tubes in the parabolic trough collectors. It can carry out a complete characterization of the performance of any receiving tube through a contactless system.

Condor reflectometer

SFMA

Mini Incus

Cleaning trucks


Mini Incus spectophotometer

This is a unique device on the market that evaluates the optical performance of the receiving tubes. It measures the solar transmittance of the external crystal tube and the absorbance of the inner tube. Both parameters are evaluated in 15 wavelengths in the solar spectrum. It includes a system to verify that both tubes are placed in a concentric position.

SFMA

This tool is used for the characterization, monitoring and management of the solar field from mobile devices. It was created to monitor and optimize any incident in the solar field, as well as cleaning tasks, enhancing the information in real time, thereby saving time and resources.

Cleaning trucks

Abengoa Solar offers the services of cleaning trucks for both heliostats and parabolic trough mirrors. The implementation of the appropriate cleaning strategy results in higher electricity production and less water consumption. Different interchangeable tools provide versatility and operability in cleaning jobs, including sensors for thorough cleaning and decreasing risk of mirror breakage.

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Technological Products Abengoa designs, manufactures and markets key components both for its own plants and for third-party projects, either directly or in collaboration with partners.

Heliostats

ASUP 140 is a design for a heliostat of 140 square meters that has enabled a 30% reduction in solar field costs due to an optimized structure, which minimizes material requirements. The latest generation (v. 3) of the heliostat ASUP 140 has been installed in projects such as Atacama 1, in Chile.

ASUP 140 SpaceTube®: New generation of parabolic trough collector with 8-meter-plus aperture width


Tower solar receivers

Abengoa commercializes advanced high technology solar receivers for STE superheated steam plants with technology developed in collaboration with partner institutions.

These products are the result of all the efforts in research carried out by Abengoa in its facilities in the Solucar Complex (Seville, Spain).

Parabolic trough collectors

Abengoa now commercializes its new large aperture trough collector, SpaceTube®. This new design is a great leap forward towards the increase of efficiency and the reduction of costs. Abengoa is collaborating with the U.S. DOE, based on a two year contract within the “Sunshot Initiative” program, to update different aspects of production and assembly of this collector.

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HCPV modules

Abengoa’s HCPV modules offer great advantages in terms of efficiency, production curve, tracking and accuracy.

HCPV technology works with concentration factors higher than 100, reaching levels above 1,300x. It uses Multi-Junction cells (MJ).

In 2014, Abengoa supplied modules for HCPV pilot plants in KAUST, Saudi Arabia; FASEP, Tunisia; and SolarTac, U.S.

Also in 2014, the HCPV plant in Coquillon, France, was launched, for which Abengoa Solar is supplying HCPV modules of 400 kW. For this project, Abengoa participated as a partner of the Compagnie Nationale du Rhône (CNR).

Abengoa also provided M300 modules, certified as IEC 62108 by TÜV PTl-Arizona, for this project.

HCPV technology works with concentration factors higher than 100, increasing the performance of the plants


In2014,theHCPVplantinCoquillon,France,forwhichAbengoa Solar supplied HCPVmodulesof400kW,waslaunched.

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ABENGOASOLAR > Annual Report 2014 > Products and Services p. 47> Annual Report 2014 > Products and Services p. 46

Abengoa offers products to meet industrial client demands Abengoa has five plants in Chile and South Africa, either under construction or in operation

EPC services Abengoa offers its vast experience to third parties via EPC services. It can design and build a solar plant and deliver a turnkey installation, or cater to the specific needs of clients in any phase of plant construction.

Industrial applications

Abengoa supplies clean energy to clients worldwide to generate heated water, low pressure steam, or electricity in order to meet the power demands of industrial facilities in markets such as mining, food processing, industrial cold, heating systems, or household consumption.

Abengoa is collaborating with the Brazilian fuel company Petrobras to prove the viability of using solar energy in its treatment processes of hydrocarbons in the Guarané Refinery in Brazil. Abengoa will supply Petrobras with necessary equipment and materials for the construction of a pilot plant with an initial peak power of 250 kW. It will also supervise the assembly of solar collectors, their installation, and the start-up of this plant. Additionally, the plant will incorporate a control and data acquisition system, developed by Abengoa, to monitor the thermal performance.

To meet industrial client demands, Abengoa offers the following products:

• ParabolictroughcollectorPT-1

One of the leaders in solar thermal technology in the industrial sector, this is a proprietary design optimized over the last 20 years. It now reaches high efficiency levels and includes the possibility of storage that allows for an increase in operation during cloudy periods and even after sunset. This system is capable of reaching temperatures up to 482° F to generate hot water or low pressure steam.

• RMT™collector

This collector generates hot water or low pressure steam, operating at temperatures up to 482° F.

Integral O&M ManagementIn 2014, Abengoa took a step forward in the standardization

of O&M processes with the creation of a vertical area

responsible for organizing and managing the resources in

every one of its solar plants.

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ABENGOASOLAR > Annual Report 2014 > Social Responsibility p. 51> Annual Report 2014 > Social Responsibility p. 50

Abengoa guarantees that its activities contribute to the socio-economic development and growth of the communities where it operates.

Abengoa establishes strong and long-lasting relationships with local communities and other interest groups to face present and future challenges. To accomplish this, it has a responsible management model that sets guidelines for business development with a positive economic, social and environmental impact in those areas where Abengoa’s projects are located. Also, Abengoa carries out multiple social and environmental initiatives, as well as socio-economic and business development programs, which are currently underway in various regions of South America, Africa, Europe and Asia.

Social Responsibility

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Local community Local communities are considered part of every project from the very initial phase of development. Of primary importance is Abengoa’s strong commitment to local recruitment and the business network in the areas where it operates, enhancing value generation.

KaXu Community Trust & Khi Community Trust

KaXu Community Trust and Khi Community Trust are shareholding partners in Abengoa Solar STE projects in South Africa. These entities include members of the local communities and their goal is to provide support to improve skills and know-how in areas such as entrepreneurship, leadership, education, infrastructure, and personal development within the communities.

Social commitment in South Africa

Abengoa worked extensively with South African communities in 2014. Through the initial phase of work, there were monthly meetings between the management team of KaXu Solar One and the locals. With counseling from Abengoa staff, these meetings focused on analyzing major needs and improving community initiatives and business proposals in education, tourism, employment, and youth. Visits to the Solana solar power plant in Arizona during that year.

Abengoa works in social development in fields like education

> Annual Report 2014 > Social Responsibility p. 53> Annual Report 2014 > Social Responsibility p. 52

In2014agreementsweresignedwiththemunicipalitiesofElCarpio(Cordoba), Logrosán (Cáceres), and Arenas de San Juan (Ciudad Real).

Social commitment became a reality in 2014 with Abengoa’s participation in various local initiatives, such as Mandela Day, World AIDS Day and sponsorship of the Christmas Lights Festival in the region of Kai Garib, all in collaboration with local entities and organizations.

Finally, Abengoa worked in 2014 to establish its People, Education and Communities (PE&C) program. Present in nine countries, the program focuses on the social development of the most vulnerable groups in areas such as non-formal education, sports for integration, or fighting against drug addiction and alcoholism.

Relationships with U.S. communities

Abengoa promotes education, as well as the conservation and protection of cultural and historic values of the U.S. One highlight in 2014 is Abengoa’s support to the native community in the regions where the plants are located. This resulted last year in the collaboration agreement with the indigenous group San Manuel Band, in the area of Mojave Solar.

Several training activities related to renewable energy were also carried out in 2014. Abengoa sponsored activities focused on teaching solar energy values and principles to children, and there were many school visits to the Solana plant during that year.

Relationships with communities in Chile

Abengoa believes in the value of establishing strong links with local communities in Northern Chile, where Atacama 1 is located, beginning with Abengoa’s social, education, and health development program, PE&C, in Maria Elena community. There have also been conferences about renewables organized with students in Maria Elena Secondary School.

Collaboration agreements with municipalities in Spain

In 2014, Abengoa participated in multiple socio-economic development programs and made investments earmarked to preserve culture, art, and historic heritage, as well as encourage sports and raise awareness of healthy life habits.

Several agreements have recently been signed with the municipalities of El Carpio (Cordoba), Logrosan (Caceres), and Arenas de San Juan (Ciudad Real). For three consecutive years, Abengoa also renewed its agreement with Aznalcollar (Seville), located in the vicinity of the Solucar Complex.

Abengoa has been a sponsor of the Lights Festival in the province of Northern Cape, South Africa

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EmployeesIn the past year, Abengoa encouraged a greater buy-in by its employees into the CSR philosophy. In order to do so, there were training sessions and improved communication channels to guarantee all employees applied the corporate responsibility values in their daily activities.

For example, in 2014, Abengoa organized a reforestation activity in the area of Aznalcázar (Seville) for employees and their relatives.

Suppliers Abengoa requires its suppliers and subcontractors to abide by a Social Responsibility Code. In 2014, Abengoa Solar continued supporting suppliers with training to produce their own Greenhouse Gas Inventory. This strategy allows Abengoa to measure the real environmental impact of its economic activities.

Abengoa believes in the creation of value in the communities where it operates

> Annual Report 2014 > Social Responsibility p. 55> Annual Report 2014 > Social Responsibility p. 54

Society Abengoa is an active member of the world’s major renewable energy associations. This way, it can collaborate with other companies, as well as public and private entities, in pursuing the goal of achieving a sustainable future for society and generations to come.

In 2014, Abengoa also promoted the development of solar energy by sponsoring international events such as Solar Paces 2014, which focused on technology development for solar production.

CSR risk management in solar facilitiesAbengoa analyzes and manages possible risks related to business responsibility in every solar plant, and sets up mitigation plans. In 2014, the company completed the analysis of risks via surveys in the main interest groups with the goal of increasing the results value.

This practice allows for the establishment of risk reduction measures. For instance, the technical conference about solar energy celebrated in Castilla-La Mancha University last year, aimed to avoid risks related to lack of awareness about technologica features and their impact on the local community.

Analysis of the solar business as a responsible modelAbengoa establishes information control systems through quarterly analysis of 91 indicators. These indicators, designed by the international organization GRI, measure business activity and its impact in three areas: social, economic and environmental. This allows for the identification of trends and facilitates informed decision-making processes.

In 2014, Abengoa celebrated the achievement of 1,000 days with no-leave work accidents in the PS10 & PS20 plants

Solana• The largest parabolic trough plant with storage in the world

celebrated its first year of operation in 2014.

• It offers clean energy able to meet the power demands of

71,000 households.

• Its thermal storage system increases its dispatchability, being

able to meet the peaks of demand of the grid.

• Solana’s storage system can produce electricity at maximum

capacity for six hours, even at night.

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ABENGOASOLAR > Annual Report 2014 > Management Structure p. 59> Informe Anual 2014 > p. 58

Management Structure

Board of DirectorsChairman JavierBenjumeaVice-Chairman Armando ZuluagaDirector Santiago SeageDirector* Guadalupe SundheimDirector* BernardoVillazánDirector* Javier SalasDirector* ManuelGassetDirector ManuelSánchezDirector JoséDomínguezNon-member Board Secretary Fernando de las Cuevas

ManagementChief Executive Officer Armando ZuluagaSpain AntonioGonzálezCasasUnited States FrederickRedellEurope, Africa and Abu Dhabi MichaelGeyerMiddle East, Asia and Australia CraigWindramO&M Eduardo DuqueSecretary General Fernando de las CuevasTechnical Secretary General DavidGámezTechnical Secretary General United States HankPriceFinance Javier AlbarracínAdministration DavidFernándezEngineering MiguelÁngelCruzConstruction Supervision LaraÁlvarezInternal Audit SaraMigueláñezHuman Resources Pablo BarrasaQuality, H & S, Environment Antonio de la Torre

Solar Complexes ManagementSolucar/ Ecija ManuelCarlosGonzálezEl Carpio / Castilla-La Mancha José Emilio CamachoExtremadura RafaelSánchezSolana (O & M) Scott NolanMojave Solar (O & M) NicholasPotrovitzaKaXu Solar One / Khi Solar One José Esteban del CorralShams-1 (O & M) BorjaSanz

*Independent director

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Abengoa Solar's Annual Report

Technology

Transcript of Abengoa Solar's Annual Report