engie-africa.com

A Long-term Energy Partner for

Africa’s growing Energy Needs

ENGIE Africa

● Development and operation of thermal power and

renewable energy assets in several countries

● Strong positions in Energy Efficiency Services and

Facility Management

● Over 50 years of experience in the Engineering and

consulting business,

● Important gas expertise in Exploration & Production

and LNG supply

ENGIE Africa: Key facts and figures

2

2

~ 320employees

50 yearsof experience

Over

€306mturnover in 2015

ENGIE’s presence in Africa

• ENGIE Cofely

• ENGIE Ineo

• ENGIE Axima

• ENGIE Endel

• ENGIE Fabricom

POWER ASSETS

In Morocco:

• Tarfaya – Wind Farm – 301 MW

• Safi – Coal Power Plant – 1,386 MW

In South Africa:

• West Coast 1 – Wind Farm – 94 MW

• Dedisa – Fuel Power Plant – 342 MW

• Avon – Fuel Power Plant – 670 MW

• Kathu – Concentrated Solar Power Project – 100 MW

• Aurora and Vredendal (Solaire Direct) – 21 MW

Local Services entities and export services in all regions

• Algeria and Egypt

• Nigeria

• Tractebel

GAS ACTIVITIES

ENGINEERING ACTIVITIES ACROSS THE CONTINENT

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ENGIE – our businesses

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● Centralized and decentralized

Power Generation

● Energy Services and Efficiency

● Gas Expertise

● Engineering

● Centralized power with a balanced mix : depending on the availability of renewable and

gas resources

● Capacity in operation: 758 MW

● Capacity under construction: 2,056 MW

● Wind energy: 395 MW

● A first-mover in independent power generation in South Africa

● Construction and operation of Africa’s largest wind farm to date in Morocco

● Construction of one of the world’s largest CSP plants in South Africa

● Main positions:

‒ South Africa and Morocco

‒ With development offices in Kenya and Ivory Coast

Power generation: contributing much needed capacity.

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Morocco

● National Energy Policy favors development

of renewable energy. Aim to have 42% of

renewable energy by 2020 and 52% by 2030

● ENGIE develops power generation from both

thermal and renewable energy in the country:

‒ Tarfaya wind farm and Safi thermal

power plant

‒ Through LCV Morocco: development of

2 wind farms totaling 60.6 MW

Power generation: Morocco and Egypt

Safi Morocco

• 2 x 693 MW thermal power units

• ENGIE: 35%

• Ultra-supercrtical clean coal

technology

• 30 year PPA

• Commissioning : 2017

Tarfaya Morocco• 301 MW wind farm

• ENGIE: 50 %

• Launched: Jan 2015

• Utilization rate of 45%

• 20 year BOOT contract

• 40% of Morocco’s total

wind capacity

Egypt

● Development of several wind, PV and CSP

opportunities: Gulf of Suez (250 MW wind),

Ras Ghareb (2*50 MW wind), Benban

(2*50 MW photovoltaic), West of Nile

(wind, PV and CSP)

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● Largest electricity market in Africa with an installed capacity of more than 45 GW

● High level of renewable energy potential with a target of 10,000 GWh of renewables

● ENGIE develops power generation from both thermal and renewable energy in the country :

‒ Aurora Wind Power farm

‒ Kathu Concentrated Solar Power plant

‒ Aurora and Vredendal photovoltaic plants through Solairedirect

‒ Dedisa and Avon Peaking Power plants

● End 2015, ENGIE submitted bids for several solar and wind energy projects

Power generation: South Africa (1) – wind and thermal

Dedisa and Avon

• 335 MW and 670 MW open-

cycle gas turbine plants

• ENGIE : 38%

• 15 year PPA with ESKOM

• Avon: commissioned

October 2015

• Dedisa: commercial operation

second half of 2016

Aurora Wind Power

• 94 MW wind farm

• ENGIE: 43 %

• Commissioned: June 2015

• Part of the Government’s

renewable energy IPP

program

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Power generation: South Africa (2) – Solar: PV and CSP

Kathu

• 100 MW Concentrated Solar Power

plant

• ENGIE : 48.5%

• Notice to Proceed : end May 2016

• Parabolic trough technology

• Molten salt storage system providing

4.5 hours of battery life

Aurora - Vredendal

• 2 x 10.5 MW photovoltaic wind farms

• ENGIE through Solairedirect

• Vredendal: COD July 2014

• Aurora: COD December 2014

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Power generation: Senegal – Solar PV

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Senergy

• 30 MW photovoltaic power plant in the City of

Santhiou Mekhé.

• Solairedirect standalone EPC and O&M contractor

• Transmission system including the double 30 kV line

from the PV site to Mekhé Substation and its

extension will be built and transferred to SENELEC.

• 100% of the electricity output will be sold to

SENELEC under a 25-year PPA.

Where economically relevant, proposition of decentralized power generation:

● Off-grid and mini-grid solutions

● For local communities, remote populations and industries

(mining, forestry,…) not connected to central grid

● Choice of fuel (renewables, gas,…) and technology depend

on Clients’ needs, available resources and costs

Power Corner

● Mission : Provide clean and affordable electricity to rural

populations in developing countries through smart mini-grids

● Commissioning of the first 16 kW micro-grid unit, consisting

of solar panels batteries and diesel generator in Tanzania, March 2016

Partnership agreement with Orange

● Rural electrification and energy optimization of Orange telecom infrastructure

● Offer of domestic power solutions for rural populations

● Commercialization of the service by Orange

● Billing system via mobile through Orange Orange Money Solution

Power generation: Decentralized power production.

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● Offering appropriate solutions for distributed generation, for energy

efficiency, for challenges of smart cities, for carbon-free or digital

solutions or for customer expectations

● Operating in 3 key markets of energy transition:

‒ Buildings and industry

‒ Cities and territories

‒ Major infrastructures

● Over 300 employees

● Approximately 80 clients

● Present in more than 17 countries

● ENGIE Energy Services activities in Africa are managed via a number of

companies: ENGIE Cofely, ENGIE Ineo, Cofely Fabricom, ENGIE Axima,

ENGIE Endel

● Particularly strong presence in Algeria and Morocco

Energy Services and Efficiency.

ENGIE is

expanding its

range of products

and services in

energy efficiency

and services,

making its moves

into « smart »

networks

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Cofely Morocco:

● Since 2002 multi-technical maintenance, energy efficiency and facility management solutions

● Clients: major multi-national and local companies: Renault, Sanofi, Lafarge, AXA Assurances, RMA Watanya,…

● Supervision and maintenance of equipment for the Tangier Med Port

Cofely Tangier:

● Management of facility management contracts and multi-technical services

for Renault

● Business prospecting esp. in Northern Morocco

Cofely Contracting:

● Multi-technical works for local and multi-national companies

● Created in 2012 – clients such as Caixa, Olivim, Renault,..

ENGIE Ineo

● Communications infrastructure, operations support system and passenger

information of the Casablanca tramway

● Rail signalling, telecommunications of the future high-speed line Tangier – Rabat

● Tendering for the energy management, signalization solutions and telecom

systems for the Rabat and Casablanca tramways extension projects

ENGIE Axima

● Several projects and references: Dolidol, Roche, Mohammed V hospital

Energy Services and Efficiency – Morocco

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Cofely Algeria:

● Development of energy services, facility management and

multi-technical activities for teriiary and industrial clients

● Several multi-technical maintenance contracts for malls and

industrial buildings

● Created in 2015

Cofely Fabricom:

● Since 20 years in the Oil & Gas sector with Sonatrach, Sonelgaz

and subsidiaries

● EPC projects – automation and networks, SCADA and

remote field assistance

● Screening the sector of 200 and 400 kV electrical substations

and the development of mid-sized gas power stations

ENGIE Ineo:

● Present since 2000

● Executed telecom and security systems contracts for various clients : Conoco Philips, Sonatrach-Agip, Total-Sonatrach

● A future local subsidiary for development of activities in urban transportation management systems for trams and buses

ENGIE Axima

● Several projects and references : Lafarge, Bel Factory, Simap, Sanofi,…

● Prospection of different business development opportunities in HVAC, fluids, refrigeration and firefighting sectors

Energy Services and Efficiency – Algeria.

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ENGIE Ineo:

● Several projects and contracts in Burkina Faso, Burundi, Cameroon,

Comoros, Congo, Guinea, Madagascar, Gabon, Mali, Mauritania, Nigeria,

Senegal, Togo-Benin,…

● Global projects for industrial and tertiary sector electrical installations,

energy networks, public lighting, transportation and telecommunications

infrastructures, overall security, energy production, information systems and

outsourcing

ENGIE is present in Tunisia via its participation in SOMEM

● Development of multi-technical maintenance and energy efficiency services

● Clients : Alstom powre systems, Citroen, Scogat, Sergaz, Banque Africaine

de Developpement, Banque Centrale de Tunisie, Groupe El Kateb hotels, …

ENDEL ENGIE South Africa

● Awarded for the construction of Eskom Kusile power station

● 6 power generation units of each 800 MW

● Contract with Alstom for the Equipment and Piping installation of unit 3

Energy Services and Efficiency – other countries.

ENGIE is

active in a

variety of other

countries

throughout the

continent

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● 1st LNG chain between Algeria and France

● Top 5 LNG supply portfolio in the world

ENGIE Africa: Looking at opportunities for developing gas infrastructure:

● Particularly for import and transport and combined electricity/gas solutions

(« Power to Gas »)

● In countries with national resources

● And/or associated with import terminal and infrastructure developments

(North and South Africa)

Gas expertise.

In Africa,

ENGIE’s main

gas positions

are in Algeria

and Egypt via

its LNG and

E&P activities

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Algeria:

● 50 years cooperation with Sonatrach

● ENGIE : largest buyer of LNG and 3rd largest client of Sonatrach

● Long-term LNG contracts with Sonatrach (8.5 bcm/year)

● Long-term contract for delivery of pipegas via Medgas (1 bcm/year)

Egypt:

● 20 year LNG purchase contract from the Idku liquefaction plant

● 5% stake in train 1 of Idku

● April 2016 : cooperation agreement with EGAS for Egypt’s medium

term gas import needs

Nigeria:

● 20-year supply agreement with NLNG (started in 1992)

● Delivered to France’s Montoir-de-Bretagne terminal

Gas expertise – LNG.

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Algeria:

Touat project:

‒ Launched in 2011

‒ Drilling of 41 production wells

‒ Proven and probable reserves are 68.5 billion m³ of natural gas

and 8.5 million barrels of condensates

‒ Production should start in 2017

Sud-Est Illizi project:

‒ Launched in 2010 - 3rd and last exploration phase May 2015

‒ Operated by Repsol Exploracion Argelia SA

‒ ENGIE E&P: 20%

‒ Drilling of 9 wells so far

Egypt:

● ENGIE is active in 4 concessions: 2 exploration concessions as

operator and 2 production concessions

‒ West El Burullus wholly owned by ENGIE E&P, operator

‒ Wadi Dib & East Wadi Dib wholly owned by ENGIE E&P, operator

‒ Alam El Shawish West, ENGIE E&P 25%, non-operator

‒ Ashrafi, ENGIE E&P 50%, nont-operator

Gas expertise – Exploration & Production

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● Engineering services mainly for hydropower, power and gas, renewable

energy, transport and Transmission & Distribution

● Provides the full scope of consulting services from site reconnaissance to

start-up and initial operation of rehabilitation of a project, including

environmental protection

● Tractebel Delivered its expertise to the majority of African countries, among

them: Algeria, Angola, Benin, Botswana, Burkina Faso, Dem. Rep. of

Congo, Djibouti, Egypt, Ethiopia, Guinea, Kenya, Liberia, Libya,

Madagascar, Mali, Morocco, Namibia, Niger, Senegal, Sierra Leone,

South Africa, Tanzania, Tunisia, Uganda,…

Engineering

Delivering

Engineering

Services in

Africa since the

beginning of the

50’s through

Tractebel

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● With a balanced strategy:

‒ creating value for our stakeholders

‒ while respecting the lives of the people working or living around

our operations

‒ and preserving the environment

‒ and a Strong Stakeholder Dialogue Process

● In Africa – we go into partnerships with social enterprises and

innovative entrepreneurs

‒ Rassembleurs D’Energies

‒ ENGIE Foundation

‒ Initiatives

‒ Enactus

‒ International Social Observatory

‒ Valued Citizens

‒ Ikamva Youth

‒ Energy Assistance

Our Commitment

ENGIE:

We want to be a

responsible,

efficient and

successful actor

recognized as

such by its

stakeholders

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Our partners: Rassembleurs d’Energies - AN « IMPACT INVESTMENT » APPROACH

Relevance of the solutionFinancial

value

Synergies with the

Group

Social performance

Environmentalperformance

34

21

ENGIE Rassembleurs d’Energies is the €50M Corporate Impact Investment fund of ENGIE which invests in

social enterprises that market affordable energetic solutions for poor off-grid populations who lack access

to reliable and clean energy sources. These solutions must be economically sustainable and have a strong

social and environmental impact.

ENGIE Rassembleurs d’Energies has developed a multi criteria tool to assess investments opportunities :

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1

2

3

4

5

7

86

Our partners: Rassembleurs d’Energies’s investments in Africa

Solar Home Systems

1

2

3

Fenix international

PEG Ghana

BBOXX

Uganda

Ghana

Rwanda, Kenya

Micro-mini grids

4 Ausar Energy Western Africa

Biogaz

5 Simgas Tanzania

Under contract

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7

8

Biomass

Distribution water

- electricity

Solar systems

Uganda

Mauritania

Kenya

ENGIE Rassembleurs

d’Energies invests in

companies which

develop B to C

Business models in

decentralized

renewable energy

Solar Home Systems

Micro/mini-grids

Biogaz

Biomass and improved

cooking utensils

Water electricity

distribution

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● Providing skills and expertise to humanitarian projects with no - or limited - access to energy

● Energy Small scale projects

● Focus on: Health, education, economic development

● Characteristics of the projects:

‒ Small-scale energy projects

‒ Local demand

‒ Durability

‒ Sustainable development

‒ Security

● Workforce: Unpaid volunteers & small teams

● A non-profit association created in 2001 by employees from ENGIE (retired and current)

Our partners: Energy Assistance asbl/vzw

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Our partners: Energy Assistance asbl/vzw - Projects in Africa

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CountryDone in 15 years

Probablyin 2016 In portfolio

Benin 2

Burkina Faso 18 3

Burundi 7

Cameroon 1

DR Congo 56 7 10

Ethiopia 1 1

Guinea 1

Kenya 1

Madagascar 1

Mali 15

Mauritania 3

Mozambique 2

Rwanda 4

Senegal 3 3

Sierra Leone 1

South Africa 1 1

Tanzania 3 1

Togo 10 2

Zambia 3

Africa 130 11 20

All regions 190 11 27

● NGO which organizes educational

support and social programmes in

public schools

● Encouragement of personal

development and civic engagement

● ENGIE Foundation is a partner since

2002

● http://www.valuedcitizens.co.za/

Our partners: ENGIE Foundation / Valued Citizens

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● ENGIE Foundation has been funding the Inspire

programme since 2009

● Instrumental to help girls develop leadership skills

while fighting gender inequality and poverty in their

communities

● With ENGIE support, more than 600 girls have been

helped directly since ENGIE 2009

● ENGIE launches the new Schools, Lights &

Rights programme in 2015

● Valued Citizens Initiative is one of the associations

benefiting from the project

● A grant has been donated to promote the civil

registration of unregistered children

● 1700 portable solar lamps will be provided to

replace highly-polluting oil lamps

Our partners: ENGIE Foundation / Valued Citizens

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● Aurora Wind Power and Avon &

Dedisa Peaking Power have signed

agreements with Valued Citizens

● Implementation of life skills

development program in public schools

for surrounding communities

● Ikamva Lisezandleni Zethu is an NGO that supports and

assists young people in their development

● ENGIE & Ikamva developed FunMaths programme for

pupils from disadvantaged environments with subjects like

maths and English

● www.ikamvayouth.org

Our partners: South Africa - Ikamva Youth

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● ENGIE established an independent fund to benefit

local black organisations and communities

● The Peaker Trust has a 10% stake in the project

companies

● The Trust’s dividends will go to local socio-economic

development initiatives for at least 15 years (duration

of the Power Purchase Agreements)

● Created in 2000 by several partners around the

ENGIE Group

● Part of the UN Global Compact

● Laboratory of initiatives and social innovation

● Conducted research on topics such as literacy,

education, youth unemployment,…

● ENGIE (Cofely Morocco) is an active member of

the association Initiatives

● Supports young high school students from disadvantaged backgrounds

● ENGIE funds renovations, organizes company visits and offers training

● In Morocco, ENGIE signed a partnership with Enactus Morocco

● International non-profit organization urging students to improve the word

through entrepreneurial action

● ENGIE supports the development of Cleantech and Environment

projects and mobilizes teams to provide monitoring

Our partners: Morocco - Initiatives / Enactus / OSI

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Creating value . . .

Develop sustainable and profitable

business models,

knowing and controlling operational

and financial risks

with respect for our environmental,

ethical and human rights standards

Our way forward

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. . . Meeting the needs of Africa

Become a business partner of

social and economic

development,

Contribute providing access to

reliable and affordable energy,

and key competences

while offering sustainable

solutions and creating local jobs

Appendix

BU Africa Strategy

Africa is made of 54 countries and they are substantially different from one another

30

Sources : IRENA (updated with Statistics refer to UN 2015 (Population), 2014 World Bank (GDP, Electrification Rate)

187

349

330

127

191

1993

1410

1 136

694

246

Africa is made of 54 countries and they are substantially different from one another but some general trends can be observed

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• Half of world population

growth between now and

2050 (1.2 to 2.5 billion)

• Forecast of huge

urbanisation (50 to 70% in

2050)

DEMOGRAPHY and

URBANISATION

• Over 4% of GPD Growth in

last 10 years and for the

next 15 years

• External financial flows to

Africa increased six-fold

since 2000 and will continue

ENVIRONMENTAL

PRESSURE

Sources : Oxford Economics, African Economic Outlook data, IMF,

Massive Transformation:

Energy & infrastructure need,

especially for cities

ECONOMICS &

FINANCING

Improvement of

macroeconomic policies is a

key factors of Africa’s growth

GEOPOLITICS & SOCIAL

CONTEXT

• Democratization vs stability

• Governments are more open toward private sector

• Not one Africa : different languages, cultures, border and trade agreements

Climate Change,

deforestation, population

growth are environmental key

issues

Africa becomes overall less

risky than before but remains

at high to very risk levels

• Diversity of ecosystems : desert and semi-desert, forest and grassland, tropical forest, savanna

• Issues: access to water and water quality preservation, desertification, protection of fauna and flora – high sensitivity index

ENGIE Africa will develop its activities and enter new countries where attractiveness combines with opportunity to create value and where risks are well understood

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Promising and sustained Economic development

Rising energy demand, new energy needs

GDP growth driven by strong economic fundamentals

Increasing population and per capita consumption

Affordability and living standards, emergence of a middle class

Financial attractiveness

Strong, sustainable returns

Acceptable payment risk and sufficiently reliable customers

Availability of government guarantees

Financing by international institutions, bankable projects, low cost

finance

Access to opportunities

Governments that welcome foreign investments

Availability of resources to implement projects, including fuel

reserves/security, access to primary energy resources, EPC

contractors and local talents

Business/market growth potential

Size of opportunity matches our strategic plan for the country

Reliable strategic partners

Fvourable business environment

● Compliance with ENGIE Human Rights,

Ethical standards and policies

● Acceptable country risk at competitive return

requirements

● Stable political environment and favourable

regulation

● Favourable competitive environment. Legal

system that protects investors and contracts

In 2016, ENGIE will focus Business Development efforts and market analysis in countries where we have a strong presence, plus 12 target countries

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Ghana

Kenya

Tanzania

Nigeria

To grow in the countries where ENGIE is already present

Mozambique

Ivory Coast

Senegal

Ethiopia

ENGIE development activities in Africa in 2016

Already present

New Country

New Country Solar only

Botswana

Zambia

Namibia

Uganda

solar only 8 target countries

+

To aim at entering a number of target countries

ENGIE Africa will further develop centralized solutions

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ENGIE Africa aims at developing centralised power generation,

and related infrastructure, depending on the availability of

renewable and gas resources and based on rigorous risk/return

analysis:

• Potential for Wind mainly in North Africa, East Africa, South and South

Eastern Africa

• Potential for Solar projects (PV and CSP) in our target countries

depending on local radiation resources (DNI for CSP and GHI for PV).

• Biomass availability mainly in Gulf of Guinea countries, Eastern and

South Africa

• Hydro potential located in Gulf of Guinea countries, South and Eastern

Africa

• Geothermal resources available mainly in Eastern Africa

• Gas to power, in countries with national resources, i.e. countries of Gulf

of Guinea and Eastern Africa, and/or associated with import terminal and

infrastructure developments (North and South Africa) Sources : IEA African Energy Outlook

Centralised solutions

Decentralised power generation,

where economically relevant, will be proposed to local communities and

remote populations with off-grid or micro-grid solutions. Decentralised

generation for remote industries, such as mining horticulture or forestry, will

also be developed. The choice of fuel (RES including biomass, gas, diesel)

and technology will depend on the clients needs and on the resources

availability and costs.

ENGIE will propose solutions to industries, commercials, public sector, communities and cities:

Services to Businesses

for which Engie has developed competitive advantages (energy efficiency,

facility management, …) will be offered, to large industrial and commercial

clients and to public facilities, providing acceptable counterpart risk. Potential

opportunities of integrated solution for cities will be explored.

… as well as decentralized solutions

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Access to and use of natural resources, including land

Increasing Control of environmental impacts mainly on water and biodiversity

Climate change agenda and commitments

The diversity in geopolitical situations, socio-economic contexts, demographic trends and strains on the environment steer the evolution of national Energy Regulatory Frameworks

Many countries still rely on oil products

imports

Different natural resources are

available in different regions

(renewables, coal, gas, oil)

Current electricity prices reflect

scarcity and are heavily subsidized

Insufficient infrastructure and

insufficient access to reliable energy

Limited interconnections between

systems

Geo-Political situations / cross border

relationships

Demographics (trends, age structure, gini

index, urbanization rates)

Electrification of rural/remote area

Access to cheaper energy to sustain

economic growth

Development of Infrastructure

Improvement of energy efficiency

Country balance of payments

New build costs vs price acceptability and

affordability

Competitive environment

Socio-economics

Environment

Security of supply

ERF

Socio-economic context

Strains on the environment

Security of supply and

geo-political context

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