PROJECT PAPER

PROJEK INTERGRASI GASIFIKASI SISA PEPEJAL & SOLAR POWER

BANDAR-BANDAR DI TERENGGANU

Prepared by: Dato’ Ir. Hj. Mat Isa Kadir

PRESENTATION CONTENTS

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FASA 1- 650TPD Waste To Energy Gasification Power Plant FASA 2- 30 MW Solar Photovoltaic Power Plant 2.1 Introduction& Purpose 2.2 Company Profile 2.3 What Photovoltaic Power Plant 2.4 Our Experience 2.5 The Proposed Solar Project 2.5.1 Site Location 2.5.2 Financial Forecast 2.5.3 Project Schedule 2.6 Our Request to Terengganu State

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PROPOSED 50MW SOLAR POWER PLANT AT KUALA TERENGGANU

( PHASE 2)

2.1 Introduction & Purpose

OBJECTIVE OF PROPOSAL

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1. To brief YAB Menteri Besar on technical and financial aspects of the proposal to build and operate a large scale 50MW Solar Power Plant at Kampong Sungai Ikan in Kuala Terengganu.

2. To seek UPEN/State approval to develop the 50MW Solar

Photovoltaic Power plant at Kpg Sungai Ikan, Kuala Terengganu. 3. To seek Terengganu State Approval to acquire the Land of 120 acres

at Kg. Sungai Ikan Government Land for the building the Solar Power Plant. 4. To seek YAB Menteri Besar’s support letter for us to apply for Power

Purchase Agreement (PPA) with TNB via Kementerian Tenaga, Tenaga Hijau, dan Air ( KETTHA) and/or SEDA.

BENEFITS TO TERENGGANU & MSIA

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1. Environmental: Reduction of more than 90,000 tons of CO2 emission per year

2. Environmental: Reduce annual fossil fuel usage equivalent to 360,000Gj of Gas or 16,750 tons of Coal.

3. Social: Supply of clean, GREEN electric power to 20,500 rural houses.

4. Economic: Spur the state economic stance by creating of employment to the local population.

5. Education: Educating public on RE, become a study/research center for TATIUC, UMT, etc

6. Manpower: To be the center of trining for undergraduate under TVET scheme, Ministry of Higher Education

7. Tourism: Establishing land-mark as one of the biggest single solar power plant in Malaysia

2.2 Company Profile

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Tati Pro Energy Sdn Bhd

Tati Pro Energy Sdn. Bhd. (TPE) is collaborating with Pengasus Capital. USA under TPE-PCA Consortium to build a 50MWp Solar Power Plant in Kuala Terengganu. TATI Pro Energy Sdn. Bhd. was established as a competent management & EPCC & investment arm company serving the power generation, oil & gas, and petrochemical industries. We have our expertise in the renewable energy, power cogeneration system. & oil /gas system

Over the years, TPE had evolved into a multi-discipline engineering company, executing reputable projects together with reputable EPCC contractor . TATI has gained an enviable reputation through provision of high engineering solutions, on scheduled completion, competitive process and an invaluable customers services to our customer.

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Pegasus Capital LLC TPE - PCA Consortium is owned by Pegasus Capital. Pegasus Capital Advisors, L.P. is a private equity fund manager that has been providing creative capital and strategic solutions to companies across a variety of industries since 1996. Pegasus partners with management teams of growth companies, with a focus on those that benefit from the business implications of global resource scarcity. Sectors where this trend is most pronounced are food, water, energy, health & wellness and security.

PEGASUS is currently manage approximately USD1.8 billion in assets. Our investment team comprises over 50 talented investment professionals and operating/strategic advisors.

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KNM Renewable Energy Sdn Bhd

• Subsidiary of KNM Group Berhad

• Established in 1990

• Malaysian Home Grown Multi-

National Head office in MALAYSIA

• Listed on the Bursa Malaysia

Securities Berhad since 2003

• Revenue : About RM 2.5 Billion per

annum

• Over 5,500 employees worldwide

• One Stop Centre for World Class

Process Equipment & Industrial

Plants

• Strong portfolio of international

brands KNM, BORSIG, FBM-Hudson

& W.E. Smith

• More than 170 years of project

experience across the world in over

80 countries

Innova Benelux

Innova Benelux-WCT Ltd, an international project development company from Germany/Belgium, with an established networks in solar energy, and renewable energy expertise, will provide project management and project development support and assume the role of EPC.

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2.3 What Photovoltaic Power Plant

Solar Power System

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Solar PV System , also known as Photovotaic system, is a process whereby the sun's radiation is converted into usable electricity by using photovoltaics arranging in several components, including

solar panels to absorb and directly convert sunlight into electricity,

a solar inverter to change the electrical current from DC to AC,

as well as mounting, cabling and other electrical accessories

to set-up a working system.

Schematics of a typical Grid-connected Solar PV system

Efficiency of Solar Panel

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The viability &profitability of the project depend upon the amount of sunshine

that can be captured and the technology and proven durability of the Solar

PV Technology installed. The Power of the sun is about 1 kW/m, on the Earth's

surface, to a plane that is perpendicular to the sun's rays and solar panels

have an efficiency ranging from 17% to 27%.

With an effectiveness of 150 W/sq. M with 7000 m per sq. hectare, the power

output per one hectare will be around 1 MWp. (7000 sq. M x 150 Wp).

Hence 50 Hectares land size for modules will generate a peak power of 50

MW. The “p” or peak period will be less before and after noon at 12 O’ clock

on cloudless day

A system with a size of 1 kWp installed delivers about 1310 kWh per year

(Crystalline silica or Polysilicon modules) and varies with locations.

2.4 Our Experience

Our Experience 1

Our Experience 2

Our Experience 3

Our Experience 4

Our Experience 5

Oct/4/2013 22

Process of installation of Solar Power Plant in Germany

1. PLANNING

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7.

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4.

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Our Experience 6

2.5 The Proposed 30MW PV Solar Power Plant

2.5.1 Site Location

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Location : Kg Sg Ikan Kuala Terengganu, Terengganu, 30km West Kuala Terengganu,20km from KT Airport Land Area : 120 acres, situated by side of main federal road and having ease access to neighbouring roadways 50MW require: Solar farm Land requirement 120 acres if using Benelux Technology Distance PMU: Within the site area with capacity of 33KV/11KV Others infor: This site is a vacant government area owned by the State Government ( as on September 2015)

Brief Site Information

Proposed Location

26 At Kg Sg Ikan Kuala Terengganu

Proposed Location

27 At Kg Sg Ikan Kuala Terengganu

Proposed Location

28 At Kg Sg Ikan Kuala Terengganu

2.5.2 Financial Forecast

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Total project cost: USD83 million (RM332 million)

Cost per MW: USD1.7 million (competitive market price)

Potential yield per year: 1,230 KWh/ Ha

Minimum (DSCR): 1.30 Debt Service Coverage Ratio

Finance cost of interest: 0% per annum

IRR Project: 17.4%

NPV: Positive

Payback: 5.66 years

Financial Summary

Expected Profitability

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Expected Profitability

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Expected Profitability

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2.5.3 Project Schedule

TIME-LINE

2.6 Our Request to Terengganu State

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1. Strong support letter to Tati Pro Energy from the State Government in order for us to apply for PPA

(Power Purchase Agreement) to KETTHA (Kementerian Tenaga & Tenaga Hijau dan Air) 2. State to provide land under Terengganu GLC as the GLC will be the Co-developer/owner of the project partnering TPE-PCA Consortium. 3. Others relevant approval/permits such as Majlis Perbandaran, etc, etc

Our Request to State Government

Conditions for PPA eligibility set by KETTHA 1) Strong State support letter to Tati Pro

Energy Sdn Bhd 2) Land availability, suitability & near to

PMU 3) Technically sounds company having

proven solar technology 4) Project funding capability 5) Experience in Solar power plants

installation

Conditions for PPA