080101 Aeolus Group Portfolio vs 8

8/4/2019 080101 Aeolus Group Portfolio vs 8

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Aeolus Associated

Aeolus Associatedem ail: info@aeo lusassoc iate d.c om

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Aeolus Group Portfolio

Contents

1.Aeolus group2.Development corporation3.project portfolio4.Africas energy sector5.Aeolus on Africa6.product portfolio


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MissionThe Aeolus team is committed to assist the Africa n continent in enhanc ing the use of itsrenewable energy resources by

- Funding the deve lopment and implementation of financ ially viab le, c lean and

sustaina ble RE projec ts as distributed hybrid supply systems for rural area s.

- Transferring know-how in the fields of management, finance and tec hnology.

- Strengthening soc io-ec onomic deve lopment through the creation of job

opportunities (local ownership, assembly and production facilities) and by

supporting charity projects.

These c hallenges will be me t by a team of experts supported by a loc al pa rtnershipstruc ture as well as by a g loba l network of technology and financ ial Partners.

Aeo lus strongly be lieves and trusts in the c ombina tion of Econom ics and Passion.

Aeolus is comm itted to deve lop and fund renewable wind energy p rojec ts to Continent

and a s result to enlarge the energy c apac ity chain,

as it is like wise committed to bring local hybrid systems and distribution for thesustainable development distribution electricity develop the rural and remote areas.

Generating Power Together

Africa by night, showing the ab senc e of electricity


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Aeolus Associated

-Management Company

- RE /Finance expertise

External Partners

- Finance/financial closing

- Technology

- Consultantcy

- Project auditing

Local JV Partners

- Project Identification

- Pre-Feasibility Studies

-Local networks

- SPV start up

Aeolus AfricanDevelopmentCorporation

- Development funding

- Feasibillity study

- Sale of projects to SPVs

1. Aeolus GroupAeo lus Assoc iated (AA ) was founded as a Dutch ba sed comp any in 2004 to be come

ac tive in renew ab le energy (wind farm) projects. The c omp any is nam ed afte r the

ancient Olympian God in charge of the winds allowing the boats to sail across theAeg ea n Sea . The na me pays tribute to the o ldest histo rica lly known pe rson to use

renew ab le energy a s a natural resource.

AA started its activities in the renewable energy sector with wind and solar projects in

Greece, Italy and China. Africa became the focal continent subsequent to a

reconna issanc e visit to Na mib ia in Sep temb er 2005. The t rip resulted in the 92 MW wind

farm, of which the first p hase ha s completed its de velopm ent.

Objectives

Aeolus is orga nized to

to selec t and ac celerate the development o f attrac tive and b ankab le SPVs inthe renewa ble energy sec tor ac ross the A frican continent,

to enlarge the African energy ba se, to esta b lish Aeolus as a leader in Africa s RE sec to r, and To p rov ide investment op po rtunities for the financ ial sec to r.

Organization

Aeo lus Group is ba sed on four spe c ific centers of c ompe tenc e:

Aeolus Associated, who offers expertise, technology and finance; Aeolus local Ventures, based on a competent and well organized local

Partners structure, offe ring p er Count ry p rojec t initiatives and loca l networking;

Aeolus Africa Development Corporation, (AADC) offering the capability ofde veloping p rojec ts and the funding for the development of these p rojec ts;

An excellent global network of Partners with expertise in development, projectauditing a nd financ e.

The organiza tion trusts in a sma ll but

competent team and in outsourcing

to selected consultants and vendors

with proven track records in quality

standards and experience. As resultthe Aeolus Groups structure will be

lean and can therefore flexibly dealwith new challenges and additional

projects.

AADC represents a small butsignificant vehicle within the Aeolus

Group. In close consensus with AA,

and its loca l and its external partners it

channels, activates and accelerates

the Fea sibility Stud ies of p rom ising,

pre-selected projects.

The c ompa ny is young and dyna mic, yet c onstruc ted on a sta ff with a long expe rtise

and e xperienc e in RE tec hnology and projec t deve lopm ents. The result is a fast a nd

growing netw ork in Africa , and imp ressive list of p rojec ts under develop ment.


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Developmentdevelopment fundingAeolus local companies

Project

SPV

12

3

4

Aeolus Africa

Development Corporation

Aeolus Africa Development Corporation

Aeolus Africa

development corporationAeolus local companies

South Africa, Namibia,

Ethiopia, Nigeria, Kenya,

Tanzania, etc.

Equity

Debt

Initiative

Development

. 2. Development CorporationThe financ ial world has a serious interest to finance and invest into bankab le RE

projects; but it has also a natural hesitation to stimulate and contribute to the

development phase of such projects. Hence many initiatives and projects getfrustrate d by lac k of resources and ge t insuffic ient c hanc e to rea ch a ba nkable stag e.

Aeolus Africa Development Corporation (AADC) was founded in order to overcome

this problem, and to a ccelerate the implementation of ec onom ically viab le RE projec ts

across the continent by funding the development phase of such projects. AADCs

main function is to increase the number of simultaneously development of projects,

and to implement them faster and more efficiently than under current market

conditions.AADC can be understood as a development vehicle acting in between the energy

ma rket and the investme nt comm unity.

Project de velopment

AA in cooperation with its local

Joint Ventures and representatives in

SubSahara Africa ident ify and

select project opportunities andsubsequently applies to AADC for

development funding. AADC willgrant funding and resources if the

project fundamentals and

parameters indicate a probability

ratio of over 85% for a future

financial closing and a successfulcomp letion of the projec t.

Projec t sc reening

The sc reening proc ess with w ell de fined filte rs assists in selec ting the a ttrac tive p rojec t

proposals already in an early stage, and efficiently handling the process of project

development. It comprises a sequence of activities which guide Aeolus through the

selec tion and the e valuation o f p rojec ts be ing offered. The p roc ed ure involves four

d istinc t stage s during which the informa tion on the p rojec t is cont inuously refined :

Assessment of fund am enta l projec t d ata Pre-qualificat ion on b asis of 35 pa ram ete rs Feasibility Study Auditing

A proven methodology will be applied, strictly followed and constantly monitored byexternal aud itors in order to reac h and keep the highest p rofessional sta ndards.

Funding

AA has agreements with Dutch FMO for (sub)debt funding and financial leadarrange ments. Similar arrange ments have b een ma de w ith eq uity investors and w ith

the Dutch Gove rnment o n Carbon Cred its.The manage me nt of AA ha s been develop ing susta inab le RE projec ts in the ta rge t

region for the past 25 years. It has gathered ample experience in managing and

mitigating the associated risk profile, and has demonstrated that projects withcom merc ial retu rns can be rea lized . Its c lear strategy and the lac k of significant

investments into RE projects in Africa to-date will allow AADC and its partners to route

the first fund s for the d eve lopm ent of p rojec ts with the highest returns.


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3. Project Portfolio

Projec ts - predom inantly large r wind fa rms and b io fuels - totalling ove r 2,700 MW have

be en initiate d in Namibia, South Africa , Kenya , Ethiop ia, Tanzania, Nige ria, Djibout i,Som aliland , Sudan, Sierra Leone with new prop osa ls being rec eived at an increa singrate.

Wind is the predominant RE resource in the list of 7 projects to be developed in 2008

with a tota l of 439 MW and an ad d itiona l 10 p rojec ts will sta rt deve lopm ent in 2009.

The first p hase w ind fa rm o f 36 MW of a tot al projec t of 92 MW along the Nam ib ian

coa st a nd the 30 MW Kinangop in Kenya will rea ch its construct ion pha se in Q1 2008.

All projects have been / will be developed by own financial strength and own

de velopm ent cap ac ity. They have gone through the early deve lopme nt phases, have

been screened and realized a bankable feasibility study, followed by a technicalaud iting. Projec ts will be imp lemented and op erated unde r an IPP or hybrid scheme .


Projects and project locations

>2750 MW under development

11 Countries

The Aeo lus logo windmills represent the numb er and loc ation off planned pf planned wind farms.

Aeolus plans additionally to wind farms: hybrid and distribution systems for rural

areas, and bio fuel plantations.


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4. Africas energy sectorConsumption and generation

With 13.1% of the worlds total population, Africa consumes only 5.5% and generates

only 3,1% of the w orld energy. Its pe r ca p ita energy consump tion is 0.5 TOE com pa redto the wo rld average of 1.2 TOE. Its ge nerat ing is ma inly based on c oa l (46%) and fossil

fuels, as gas (23%), hydro (18%), oil (11%) and nuclear 2%. In 2002, the continents

electricity consumption was only 514 kWh per capita, lowest of all other world regions.

Ac cess averag es a t o f 23% for sub-Saharan Africa , howeve r with large d isparities

be tween individual countries, and b etween urban and rural areas.

In large p arts of A fric a 70 80% of the pop ulation is without elec tric ity co nnec tion.

Resources

Africas energy resource base is both diverse and relatively abundant, but so far

largely untapped. Proven oil, gas and coal reserves as well as hydropower potential

are estimated as 9.4%, 7.9%, 5.54% and 13% respectively of the world total. Energy isproduc ed ma inly from b iomass (47%), oil (24.8%), coa l (16.5%), ga s (10.4%), and on a

limited sc ale by renewab le resources such as hydro, solar and ge othermal.

Africa ha s abundant renewa b le energy resource s: high solar irrad iation; a strong w ind

po tential, with wind speeds reac hing up to 10 m/s; and a po tential cap ac ity of well over

10,000 MW. The ge otherma l po tentia l in East A frica s Rift Va lley is estima ted as 9,000

MW. A well-balanced energy generation mix has not yet been achieved due to a

number of d evelopment b arriers.

Renewa b le ene rgy tec hnolog ies (RETs) p rov ide environmentally supp ortive and

technically sound options for Africas electricity industry. In most countries they would

offset a significant proportion of foreign currency spent for oil imports for power

ge nerat ion. Being mod ular, they are we ll suited fo r me eting d ec ent ra lized rural energy

demand. The relat ively low investment levels of the increme nta l ad d itions make RETs

quite attractive for capital-constrained African countries. Additionally, they will

maximize the utilization of locally available resources and expertise, and would

therefore provide employment op po rtunities for the loc als.

The grow ing interest in RETs is d rive n p rimarily by three issues:

the continuous inc rea se in o il prices at a time when A frica s c onvertible c urrenc yea rnings are low d ue to po or world ma rket p rices and de c rea sed volumes of its

commodity exports,

the difficulties recurrently experienced by most African countries, many of whichfaced unprecedented power rationing which adversely affect their economies,

The g loba l awa reness of c lima te c hange and its likely imp ac ts is grow ing.Although the contribution of African countries to global greenhouse emissions is

relatively mode st, Africa is likely to be dispropo rtionately affec ted by the imp ac ts

of climate change. Of particular concern is the dependence of poor Africans on

rain-fed ag riculture, which is under threa t from unpredicta ble w ea ther pa tterns resulting in droughts and severe floods.

The glob a l rising interest fo r Africa , and as result grow ing financ ial funding andsponsorships, specifically for (renewable) energy as an important economicengine to ac celerate deve lop ment.


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KENYA

Aeolus in Africa

SOUTH AFRICA

NIGERIA

NAMIBIA

ETHIOPIA

AEOLUS COMPANIESREPRESENTATIVES +AEOLUS COMPANIES EST IN 2008AA/AADC

SIERRA LEONE

SUDAN

DJIBOUTI

SOMALILAND

TANZANIA

AA/AADC

LESHOTO

5. Aeolus in Africa

AA started in 2005 and built a convincing portfolio of wind and other RE projects in

Africa and Southern Europ e. As from 2007 it is selling its assets elsewhere, foc usingent irely on Africa a nd c rea ting a strong netwo rk of rep uted partners in supp ort of itsmotto:

Generating Power TogetherThe ob jective of Ae olus Assoc iated (AA) is to b uild a lead po sition on rene wa b le

energy in Sub-Saha ra Afric a with a target of ove r 2,500 MW of w ind cap ac ity a nd a

total investment of 3 b illion. Projec ts involving b io-fuel, land fill, desalination and ruralelec tric ity will be c onc urrently de velop ed . Each successful p rojec t will be transferred to

its ow n SPV, with the ma in criteria b eing a positive c ash flow d uring an op erat ionalpe riod o f ove r 20 yea rs, and an averag e return of eq uity on 20%.

Histo ry in Africa

Aeo lus has sta rted its Africa projec t d evelop ment , by attend ing the Sep tembe r 2005

SADC conference on ene rgy, organized in Windhoek, Nam ibia. A network of conta c ts

was developed with the Ministry of Energy and Mines and with the ECB (Electricity

Control Boa rd). These c ontac ts have resulted into a viab le wind fa rm p rojec t of 92 MW,

which p rojec t c onstitutes the largest IPP wind fa rm d eve lopm ent in Sub Sahara A frica .

The result could be ac hieved grac e to a careful pa rtnerselection. United Africa is a healthy and successful

business enterprise in Namibia with an excellent politicaland business network. The o rganiza tion - esta blished a nd

organized in Namibia - is a role model for the

organization in other African countries, and has resultedin a numb er of add itional powe r generat ion p rojec ts and

renew ab le energy a c tivities in Nam ibia.

Joint Venture structure

Based on the positive Namibian experience AA

de veloped a strategy in which loca l pa rtnership should

not b e b ased on a n ag ent struc ture, but involves eq ual

pa rtners with a c lear and a ccepte d a dd ed va lue from

eac h pa rty:

AA and AADC will bring technology, expertiseand finance in both d evelopment of p rojects andtheir subseq uent fund ing

The loca l pa rtner will ident ify at trac tive projec tsand will co ordinate loc al a c tivities and resources.

Local Partners in JVs have an equal percentage in

ownership and cost. Both parties have equal partnership.

On basis of this experience and model Aeolus has

conc luded Joint Ventures with loc al pa rtne rs in a g row ing

numb er of c ount ries such a s Namibia, South Africa ,

Ethiop ia, Kenya, and Nigeria. This netwo rk will be

considerab ly extend ed to other co untries in 2008.

As a good example of its Partner structure, Aeolus and its partner reached a first

project in Kenya by acquiring the developed wind farms of Kinangop and Ngong

which w ill ultimate ly a c ap ac ity of 120 MW.


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7. Product PortfolioAeolus Associated product expertise

AA as system integrator and p roject deve loper is c losely affiliated with reputab le co mpaniesin the field of renewab le energy , notab ly in wind, solar and bio ma ss and sma ll hyd ro

tec hnology. We concentrate and foc us on three different sides of the renewable

spectrum:

Grid connected wind farm projects, with machines, rated from 600 KW -2,5 MW forwhich Aeolus will find turnkey project solutions, including deve lopme nt; developm entfunding , feasibility studies, financ ial eng ineering, IPP arrangem ents, etc . Considering

circumstances and conditions Aeolus will be involved in and responsible for the

installation and operation of such plants.

Bio fuels, as palm oil and jatropha Rural and distributed electrification with Hybrid systems as a sustainable energy

solution for rural and non-elec trified areas, with a m ultiple of technology:

- Sma ll and medium sized wind dieselhybrids

- Solar p ane ls and plants;- 250/ 500 KW Biom ass pla nts on basis of ag ro

waste;

- Med ium sized hyd ro installations;Complete Home Energy solutions with the hea t and energy ba ll, texo lite housing, sola rgeysers, etc .Competence center

Aeo lus is a deve lope r and system integ ra to r in the RE field. The c ompany ma intains

exce llent conta c ts with the innova tive and qua lified industry in wind, solar and bioma ss

energy, hydro technology, and with consultancy expertise. It is interested in large wind

pa rks; and in develop ing d istributed hybrid solutions for the d eve lopm ent o f rura l areas.

Solutions include - but a re no t limited to - cost effe c tive ene rgy supp ly schemes

applying natural resources, with such spin-offs as sustainable housing and building

materials provided by local production, effectively bringing economic development.

AA is active in developing and financing projects for renewable energy, for which it

applies systems specifically tailored to each projects requirements. Although thecompany itself is young, it works closely with strong partnerships and can rely on a

team experienced for over 20 years in virtually all phases of the project developmentcycle.

Aeolus project selection criteria and solutions are clean energy and profitableeconomics.

Generating Power together

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080101 Aeolus Group Portfolio vs 8