Norman JacksonCEO - AGE Technologies www.age.co.za

Director – GO Solar (Mauritius) www.gosolar.mu Chairman - South African PhotoVoltaic Industry

Association (SAPVIA) – Manufacturing Sub-Committee. www.sapvia.co.za

1) Why Solar Energy2) Types of Solar Energy3) How to make Solar Energy work for you on a mine4) What is the Capital and Operational cost of a Solar plant5) Typical ROI calculations for a Solar Plant6) Summary

Mining Thought Leadership Presentation

What you need to know to decide on implementing a Solar System on

your mine

Tuesday 9 February, 14:00 – 14:15 Location – Roof Terrace RoomAGENDA

Yearly Solar Energy Potential

Total Finite Reserves

1,655 TWy

Solar Energy

Photo Voltaic (PV)GHI – Global Horizontal Irradiance

= DNI plusDHI - Diffuse Horizontal Irradiance

Concentrated Solar PowerDNI - Direct Normal Irradiance

Solar Water HeatingDNI - Direct Normal Irradiance

Types of Solar Energy

Solar Water Heating1) What is Solar Energy

Controller: Controls the pump to circulate the water between the Geyser and the collector. Ensures the water temperature is above the threshold value, by switching on the Electric element if and when required

2) How to make Solar Water Heating work for you on a mine Solar Water Heating

Assumptions:1) 80 litres of water per person per day2) Water Feed Temperature of 18 Degrees Celsius3) Required Minimum Temp. is 40 Degrees Celsius4) Staff of 100 Employees5) Usage 50% in Morning, 50% in Evening

Calculation:1) Size of Geyser is daily Requirement + 50%. (80x100x150% = 12,000 liters)2) If the Water needs to be 40 0C after the morning peak, then 400C = 33% Incoming of 18 0C and 67% of Morning

Start Temp. 3) Morning Start Temp = {40 0C – (33% of 18 0C)} / 67% = 580C4) If we assume we loose 5 0C overnight, then the Temp of the geyser must be 63 0C after the evening peak usage. 5) If the water has to be 63 0C after evening peak, then 630C = 33% Incoming of 18 0C and 67% of Evening Start Temp. 6) Evening Start Temp = {63 0C – (33% of 18 0C)} / 67% = 850C7) Energy To heat from 40 0C to 850C means we have 12,000 l * 4.2 kilo Joules/l 0C * 45 0C = 2 268 000 kJoules8) A Joules is the amount of energy (Watts) running for 1 second.9) kWh = kJ / 3600 Sec = 630 kW hours

2) How to make Solar Water Heating work for you on a mine Solar Water Heating

CAPEX Cost1) Energy Required for 100 Employees - 630kWh2) DNI (JHB) = 3.97kWh/m2

3) Efficiency of Collectors = 57% (Typical) 4) Number of hours available to heat = 7 hours5) M2 of Collectors required = Energy Required / Solar Energy per hr / Efficiency / Operating hours 630kWh/3.97kWh/m2 / 57% /7 = 40 m2

Item Description Qty Price Total1 Collector (m2) 40 $ 193.00 $ 7 720.00

2 Geysers (litres) 12000 $ 2.26 $ 27 120.00

3 Insulated Piping 600 $ 2.54 $ 1 524.00

4 Accessories (Controller, PV Panel, Pump, Wiring etc) 1 $ 1 060.00 $ 1 060.00

5 Labour to Install 20% $ 37 424.00 $ 7 485.00

$ 44 909.00

OPEX Cost1) Controller and Pump can need Maintenance2) Estimate of 1% of CAPEX per Annum.

3) What is the Capital and Operational cost of a Solar plant. Solar Water Heating

ROI - Solar Water HeatingUtility power at US$0.056

Solar Geysers Unit Day Year

kWh Requirement kWh 630.00 229 950 Cloudy / Rainy Days (JHB) % 14.20% 14.20%Solar Production - Average kWh 540.54 197 297.1

Year 1 2 3 4 5 10 20Energy consumption

[kWh] 229 950 229 950 229 950 229 950 229 950 229 950 229 950

Solar Energy production [kWh] 197297.1 197297.1 197297.1 197297.1 197297.1 197297.1 197297.1

Energy taken from the grid [kWh] 32 653 32 653 32 653 32 653 32 653 32 653 32 653

RSA Price per kWh [USD] $ 0.056 $ 0.061 $ 0.065 $ 0.072 $ 0.079 $ 0.127 $ 0.330

Saving on energy bill [USD] $ 11 053.15 $ 11 937.40 $ 12 892.39 $ 14 181.63 $ 15 599.80 $ 25 123.63 $ 65 164.23

Maintenance costs [USD] $ 449.04 $ 475.98 $ 504.54 $ 534.81 $ 566.90 $ 758.64 $ 1 358.62

Net profit [USD] $ 10 604.11 $ 11 461.42 $ 12 387.85 $ 13 646.82 $ 15 032.89 $ 24 364.99 $ 63 805.61 Initial Cost $ 44 909.00

Cash flow [ZAR] $ -34 304.89 $ 11 461.42 $ 12 387.85 $ 13 646.82 $ 15 032.89 $ 24 364.99 $ 63 805.61 Cumulative cash flow

[ZAR] $ -34 304.89 $ -22 843.47 $ -10 455.62 $ 3 191.20 $ 18 224.10 $ 119 598.83 $ 549 445.88

Price Increase 8% 8% 8% 10% 10% 10% 10%

4) Typical ROI calculations for a Solar Plant

ROI - Solar Water HeatingGenerator Power at US$0.33

Year 1 2 3 4 5 10 20Energy consumption

[kWh] 229 950 229 950 229 950 229 950 229 950 229 950 229 950

Solar Energy production [kWh] 197 297.1 197 297.1 197 297.1 197 297.1 197 297.1 197 297.1 197 297.1

Energy taken from the grid [kWh] 32 653 32 653 32 653 32 653 32 653 32 653 32 653

Diesel Gen. Price per kWh [USD] $ 0.330 $ 0.356 $ 0.385 $ 0.423 $ 0.466 $ 0.750 $ 1.946

Saving on energy bill [USD] $ 65 108.04 $ 70 316.69 $ 75 942.02 $ 83 536.22 $ 91 889.85 $ 147 989.52 $ 383 846.69

Maintenance costs [USD] $ 449.04 $ 475.98 $ 504.54 $ 534.81 $ 566.90 $ 758.64 $ 1 358.62

Net profit [USD] $ 64 659.00 $ 69 840.70 $ 75 437.48 $ 83 001.41 $ 91 322.94 $ 147 230.87 $ 382 488.08 Initial Cost $ 44 909.00

Cash flow [ZAR] $ 19 750.00 $ 69 840.70 $ 75 437.48 $ 83 001.41 $ 91 322.94 $ 147 230.87 $ 382 488.08 Cumulative cash flow

[ZAR] $ 19 750.00 $ 89 590.71 $ 165 028.19 $ 248 029.60 $ 339 352.54 $ 953 061.48 $ 3 536 890.91

Price Increase 8% 8% 8% 10% 10% 10% 10%

4) Typical ROI calculations for a Solar Plant.

Solar Geysers Unit Day Year

kWh Requirement kWh 630.00 229 950 Cloudy / Rainy Days (JHB) % 14.20% 14.20%Solar Production - Average kWh 540.54 197 297.1

ROI - Solar Water HeatingSustainability

Year 1 2 3 4 5 10 20Solar Energy

production [kWh] 197 297 197 297 197 297 197 297 197 297 197 297 197 297

Saving on CO2 Emission (MT) 200.26 200.26 200.26 200.26 200.26 200.26 200.26

Carbon Tax Rate $ 7.27 $ 7.85 $ 8.48 $ 9.33 $ 10.26 $ 16.53 $ 42.88

Saving on Carbon Tax [USD] $ 1 456.41 $ 1 572.92 $ 1 698.76 $ 1 868.63 $ 2 055.50 $ 3 310.40 $ 8 586.32

Cumulative cash flow [USD] $ 1 456.41 $ 3 029.34 $ 4 728.09 $ 6 596.73 $ 8 652.23 $ 22 456.14 $ 80 491.30

Price Increase 8% 8% 8% 10% 10% 10% 10%

86% Saving on Water Heating

4) Typical ROI calculations for a Solar Plant

Concentrated Solar Power

Parabolic Trough Fresnal Trough Solar Tower Parabolic Dish

1) What is Solar Energy

Parabolic Trough System – With Storage

1) What is CSP Energy

CSP StorageThe best CSP Plants in the world only can produce for 17 to 18 hours a day, this is done by storing the excess energy during the day and using it either in the evening peak or morning peak.

1) What is CSP Energy

Concentrated Solar Plant – With Storage2) How to make CSP work for you on a mine

2) How to make Solar Energy work for you on a mine.

Concentrated Solar Power

Economic value PropositionThreshold values of annual DNI suggested by some researchers. Threshold value of annual DNI (kWh/m2/year) Dawson and Schlyter,2012 1800

2) How to make Solar Energy work for you on a mine. Concentrated Solar Power

3) What is the Capital and Operational cost of a Solar plant.

The CAPEX for 100MW Solar Tower with 12 hours storage is about US$ 855 Million

The OPEX for a 100MW CSP plant with Storage would be about US$16 Million

Annual Output based upon a SM of 2.7DNI Hours a year kW kWh

2 000 4 500 100 000 450 000 000

2 200 4 800 100 000 480 000 000

2 400 5 100 100 000 510 000 000

2 600 5 400 100 000 540 000 000

2 800 5 700 100 000 570 000 000

CAPEX Cost

Concentrated Solar Power

4) Typical ROI calculations for a 100MW CSP Solar Plant.

Year 1 2 3 4 5 6 7 13 20Energy consumption

[GWh] 876 876 876 876 876 876 876 876 876Solar Energy

production [GWh] 510 510 510 510 510 510 510 510 510Energy taken from the

grid [GWh] 366 366 366 366 366 366 366 366 366Diesel Gen. Price per

kWh [USD] $ 0.330 $ 0.356 $ 0.385 $ 0.423 $ 0.466 $ 0.512 $ 0.564 $ 0.998 $ 1.946 Saving on energy bill

[USD Million] $ 168.30 $ 181.75 $ 196.31 $ 215.94 $ 237.53 $ 261.28 $ 287.41 $ 509.16 $ 992.21

Maintenance costs [USD Million]

$ 16.00 $ 16.96 $ 17. 98 $ 19.06 $ 20.20 $ 21.41 $ 22.70 $ 32.19 $ 48.41 Net profit [USD

Million] $ 152.30 $ 164.79 $178.33 $196.88 $ 217.33 $ 239.87 $ 264.71 $ 476.97 $ 943.80

Initial Cost [USD Million]

$ -885.00

Interest on Money 8%

$ -70.80 $ -64. 30 $ -56.20 $ -46.47 $ -34.449 $ -19.81 $ -2.20 $ 193.55 $ 783.03 Cash flow [USD

Million]$-803.50 $ 100.52 $ 122.09 $ 150.41 $ 182.89 $ 220.06 $ 262.51 $ 670.51 $ 1 726.84

Cumulative cash flow [USD Million]

$-803.50 $-702.98 $-580.89 $-430.48 $-247.59 $-27.52 $234.99 $3 089.83 $11 514.71

Price Increase 8% 8% 8% 10% 10% 10% 10% 10% 10%

4) Typical Sustainability calculations for a 100MW CSP Solar Plant.

Year 1 2 5 13 20

Solar Energy production [GWh] 510 510 510 510 510

Saving on CO2 Emission (Metric Ton) 517 650 517 650 517 650 517 650 517 650

Carbon Tax USD/MT $ 7.27 $ 7.85 $ 10.26 $ 22.00 $ 42.88

Saving on Carbon Tax [USD Million] $ 3.764 $ 4.066 $ 5.313 $11.389 $ 22.195

Cumulative cash flow [USD Million] $ 3.764 $ 7.831 $ 22.365 $ 89.204 $ 208.065

Price Increase 8% 8% 10% 10% 10%

Photo Voltaic (PV)1) What is PV Solar Energy

Photovoltaic (PV) effect: 1st observed with chemical solutions in 1839, by Antoine Becquerel. Then Einstein (1905) and Schottky (1930) added principle understanding. A 6% silicone cell was made in 1954, and this technology is used for orbiting space satellites since 1958.

PV effect is light falling on a two layer semi-conductor device produces a photo-voltage or potential difference between the layers. This voltage is capable of driving a current through an external circuit and thereby producing useful work.

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4,000 Solar kWh

1) What is PV Solar Energy Photo Voltaic (PV)

Photo Voltaic (PV)GHI – Global Horizontal Irradiance

Photo Voltaic (PV)Silicon Crystalline

Photo Voltaic (PV)Thin Film

Photo Voltaic (PV)Mono Crystalline

Photo Voltaic (PV)Poly/Multi Crystalline

Photo Voltaic (PV)Amorphous Thin Film

Photo Voltaic (PV)Non-Silicon Thin Film

Made using saw-cut from single cylindrical crystal of

Si

Caste from ingot of melted and recrystallized silicon

Silicon deposited in a continuous manner on a base material such as glass, metal or polymers Thin-film crystalline solar cell consists of layers about 10μm thick compared with 200-300μm layers for crystalline silicon cells

86% of PV market

90% of crystalline Si market

1) What is PV Solar Energy

Photo Voltaic (PV)Mounting Structures

Photo Voltaic (PV)FIXED

GHI – Global Horizontal Irradiance

Photo Voltaic (PV)Single Axis

GTI – Global Tilt Irradiance

Photo Voltaic (PV)Dual Axis

GTI – Global Tilt Irradiance

1) What is PV Solar Energy

1) What is PV Solar Energy

and

Photo Voltaic (PV) Grid Tie Inverter

1) What is PV Solar Energy

and

Diesel GeneratorHydro Plant

andBattery Storage

In Containers

Photo Voltaic (PV) Island Inverter

Photo Voltaic (PV)GHI – Global Horizontal

Irradiance= DNI plus

DHI - Diffuse Horizontal Irradiance

2) How to make Solar Energy work for you on a mine ?

2) How to make Solar Energy work for you on a mine ?

and

Diesel GeneratorHydro Plant

OPTIONBattery Storage

In Containers

Photo Voltaic (PV) Grid Tie

2) How to make Solar Energy work for you on a mine ?

and

Diesel GeneratorBiomass

Hydro Plant

andBattery Storage

In Containers

Photo Voltaic (PV) Diesel Power

3) What is the Capital and Operational cost of

a 100MW PV Solar plant.

Johannesburg- Budget Figures Fixed 1 Axis 2 Axis

kWp 100 300 100 300 100 300Annual GWh 194.82 234.51 266.47Cost /kWp $ 1 250 $ 1 400 $ 1 550

CAPEX [USD Million] $125.375 $140.42 $155.465 OPEX [USD Million] $ 0.627 $ 2.106 $ 3.109

Approx. Area Required (ha) 100.3 167.2 234

Photo Voltaic (PV)

Photo Voltaic (PV) Fixed PlaneUtility power at US$0.14

4) Typical ROI calculations for a 100MW Fixed PV Solar Plant. Vs Utility Power

Year 1 2 3 4 5 6 10 15 20Solar Energy

production [GWh] 194.8 193.4 192.1 190.8 189.4 188.1 182.9 176.6 170.5

Utility Price per kWh [USD] $ 0.140 $ 0.148 $ 0.157 $ 0.167 $ 0.177 $ 0.187 $ 0.237 $ 0.317 $ 0.424

Saving on energy bill [USD Million] $ 27.27 $ 28.71 $ 30.22 $ 31.81 $ 33.48 $ 35.24 $ 43.26 $ 55.89 $ 72.21

Maintenance costs [USD Million] $ 0.63 $ 0.66 $ 0.70 $ 0.75 $ 0.79 $ 0.83 $ 1.06 $1.42 $ 1.90

Net profit [USD Million]] $ 26.65 $ 28.04 $ 29.51 $ 31.06 $ 32.69 $ 34.40 $ 42.20 $ 54.47 $ 70.31

Initial Cost [USD Million] $ -125.38

Interest on Money 8% [USD Million] $ -10.03 $ -8.70 $ -7.15 $ -5.36 $ -3.31 $ -0.96 $ 10.26 $ 31.88 $ 75.01

Cash flow [USD Million] $ -108.75 $ 19.34 $ 22.36 $ 25.70 $ 29.38 $ 33.44 $ 52.45 $ 86.35 $ 145.25

Cumulative cash flow [USD Million] $ -108.75 $ -89.41 $ -67.05 $ -41.36 $ -11.98 $ 21.46 $ 180.65 $ 484.88 $ 1 082.96

Price Increase 6% 6% 6% 6% 6% 6% 6% 6% 6%

3) What is the Capital and Operational cost of a PV Solar plant.

Example Costing:100 MW for 5 Min = 8,333kWh

Average CAPEX is US$ 900 / kWh = $75 MillionOPEX is 3% of CAPEX.

Improves Power quality and stabilises supply

Photo Voltaic (PV)Battery Backup

Year 1 2 3 4 5 6 10 15 20Solar Energy

production [GWh] 194.8 193.4 192.1 190.8 189.4 188.1 182.9 176.6 170.5

Utility Price per kWh [USD] $ 0.330 $ 0.356 $ 0.385 $ 0.423 $ 0.466 $ 0.512 $ 0.750 $ 1.208 $ 1.946

Saving on energy bill [USD Million] $ 64.29 $ 68.95 $ 73.94 $ 80.77 $ 88.22 $ 96.36 $ 137.12 $ 213.30 $ 331.67

Maintenance costs [USD Million] $ 3.63 $ 3.84 $ 4.08 $ 4.32 $ 4.58 $ 4.85 $ 6.13 $8.20 $ 10.97

Net profit [USD Million]] $60.66 $ 65.10 $ 69.87 $ 76.45 $ 83.64 $ 91.51 $ 131.05 $ 205.10 $ 320.69

Initial Cost [USD Million] $-215.375

Interest on Money 8% [USD Million] $ -17.23 $ -13.76 $-9.65 $ -4.83 $ 0.90 $ 7.665 $ 42.58 $ 118.94 $ 289.21

Cash flow [USD Million] $ -171.94 $ 51.35 $ 60.22 $ 71.62 $ 84.54 $ 99.17 $ 173.63 $324.04 $609.90

Cumulative cash flow [USD Million] $ -171.94 $-120.60 $ -60.38 $ 11.24 $ 95.78 $ 194.95 $ 705.89 $ 1 810.77 $ 4 250.31

Price Increase 8% 8% 8% 10% 10% 10% 10% 10% 10%

Photo Voltaic (PV) Fixed Plane with Battery B/U vs Diesel Generator Power

4) Typical ROI calculations for a 100MW Fixed PV Solar Plant (With Battery Backup). Vs Diesel

4) Typical Sustainability calculations for a 100 MW Fixed PV Solar Plant.

Year 1 5 10 15 20

Solar Energy production [GWh] 194.82 189.42 182.88 176.57 170.48

Saving on CO2 Emission (M Ton) 197 700 192 300 185 600 179 200 173 000

Carbon Tax Rate USD/MT $ 7.27 $ 10.26 $ 16.53 $ 26.62 $ 42.88

Saving on Carbon Tax [USD Million] $ 1.44 $ 1.97 $ 3.07 $ 4.77 $7.42

Cumulative cash flow [USD Million] $ 1.44 $ 8.41 $ 19.85 $ 36.12 $ 67.46

Price Increase 8% 10% 10% 10% 10%

Type of Solar Energy Water Heating Concentrated Solar Power (CSP) Photo Voltaic (PV)

Type of Plant Standalone Base Load Power Plant Supplementary Power

Description of System

“ Is a Solar Water Heater, used only for heating water, it does

not produce Electricity”

“Uses the Direct Sunlight and concentrates it on a Heating Fluid. This heat is used through a heat exchanger to produce steam to

drive a turbine”

“Uses Direct or Reflected Sunlight onto a two layer semi conductor material to produce a Voltage potential (Electricity)“

Size of System 100 Employees 100MW 100MW

Storage System Used Hot Water usually stored in a Geyser.

The heat can be stored in specially designed vessels or

bunkers.Batteries, Flywheel or Pumped

Storage Systems.

CAPEX US$ 45,000 < US$ 885 Million < US$ 215 Million

OPEX / Year US$ 450 US$ 16 Million US$ 3.63 Million

ROI vs Utility Power < 4 Years Not Suitable 6 Years

ROI vs Diesel Power 9 Months 7 Years 4 Years

CO2 Saving 200T > 500 000T 198 000T

Carbon Tax / Year US$1,450 US$ 3.764 Million US$1.44 Million

Norman@age.co.zawww.age.co.za Stand 1208

Tomorrow’s Technology, TODAY.

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