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GE Power & Water Break-Through in Uncertain World Imagination At Work

GE Beliefs

Customers Determine Our Success

Stay Lean to Go Fast

Learn and Adopt to Win

Empower and Inspire Each Other

Deliver Results in an Uncertain World

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Customer Business Environment Economy

System Marginal Price

Power Development Plan Japanese Crude Cocktail

JCC & SMP

2007 2015

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© 2015 General Electric Company - All rights reserved.

Customers’ Problems

Load Factor Projection – F GTCCs

GTCC A

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

GTCC B

Reserve Margin

Scrap & Rebuild = Permission

No Action = Sunk Cost / Fixed Cost

Alternative Fuel = Take Or Pay / GSA (Optional)

DH Conversion = No Heat Demand / High Uncertainty

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U.S., re-export from a third country, or release to a foreign national wherever located

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It is All About Efficiency Upgrade F GTs to HA GTs

GE 7HA.02 = 330MW

2 Units X F GTs = 300~350MW @ 56% eff. LHV

1 Unit X HA GTs = 330MW @ +61% eff. LHV

Visibility Insight Actions

Fuel (Variable) Cost = 9.1% ↓ CO2 Emission Reduction = 163,000 Ton/year (1 GW @ 70% load factor)

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U.S., re-export from a third country, or release to a foreign national wherever located

© 2015 General Electric Company - All rights reserved.

What do to NEXT? Scenario Planning for target Efficiency HA Upgrade IRR sensitivity - Efficiency

Step 1. Load Factor Projection – 60% / 61% / 62%eff.

Step 2. SMP / Fuel Cost Projection for next 6 years

Step 3. Define Work Scope with Engineering

Step. 4. Feasibility Study Report with Economics

(eff. CC LHV)

IRR

O&M Know-How Export Potential

-30%

-20%

-10%

0%

10%

20%

30%

57.0% 58.0% 59.0% 60.0% 61.0% 62.0% 63.0%

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U.S., re-export from a third country, or release to a foreign national wherever located

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NO ACTION is not an ANSWER

Policy

Power Market

Fuel Market Power Demand

Degradation HA UPGRADE

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