Road Map for a SOLAR PARABOLIC TROUGH THERMAL POWER PLANT at Kirtland AFB and Mesa del Sol

1. Road Map for a SOLAR PARABOLIC TROUGH THERMAL POWER PLANTat Kirtland AFB and Mesa del Sol July 22,2008

2. Objective Collaborate with a diverse team of interested parties to plan, build and operate a large scale, grid connected, concentrated solar trough power plant adjacent to Kirtland AFB that will deliver reliable green power to DOE, DOD and Mesa del Sol while simultaneously promoting research and innovation and delivering power at the lowest economical cost. This project will stimulate the solar industry in the Southwest which has among the best solar resource in the world.

3. Mesa del Sol La Semilla: Planned Concentrated Solar Plant outlined in red

4. This Presentation • Define Scope of Project • Overview of Economics of the Plant • Base Consumption • Structure of the Power Purchase Agreement • Sensitivity Analysis Estimated Cost to DOE & DOD • Implementation Possible Cost Savings Measures • Potential Enhancements to the Project

5. I. Define Scope of Project

6. II. Overview of Economics of the Plant Current Technology High End Technical Innovations • Lighter SCA Frames • Thin Film Mirrors • Wireless Communications Low End

7. Basis of LCOE Estimate

8. III. Kirtland AFB – Potential SolarBase Consumption

9. Kirtland AFB – Potential Solar

10. IV. Structure of the PPA 100 megawatt PNM60 megawatt DOE24 megawatt WAPA40 megawatt DOD16 megawatt

11. V. Sensitivity Analysis – estimated cost to DOE and DOD 15 cents

12. DOE – Albuquerque Office • Approve proposed use and enter into sublease with plant operator. • Enter into power purchase agreement with WAPA.

13. DOE – Washington Office • Provide loan guarantee for 80% of the plant eligible costs fund $40-50M towards storage project. • Allocate sufficient funds for green power purchase agreement. • Enable procurement of a long term power purchase agreement based upon a benchmark which considers long term electrical costs.

14. DOD (Kirtland AFB) • Allocate sufficient funds for green power purchase agreement. • Authorize a long term agreement based upon a benchmark which consider long term electrical costs.

15. VII. Potential Enhancements to the Project 3-6 hours of storage While this technology has not been commercialized, it would be an important aspect to the potential success of concentrated solar technology in the United States. Without storage, utility companies would be forced to provide backup generators to cover peak load demands. The Mesa del Sol site which is adjacent to Sandia's research facilities would be an ideal location to implement the next generation of thermal storage. Improvements from this research could be utilized in future plants which would lower the cost of concentrated solar and make it a more effective power generation source at subsequent plants. Redundant power source for Kirtland AFB By incorporating a gas fired boiler into a CSP, Kirtland AFB could effectively have up to 20 megawatts of firm independent backup generation. This would be a significant asset for the base which could effectively provide power to it’s operations even if the grid fails.