DISCLAIMER This presentation contains certain forward looking - - PowerPoint PPT Presentation

EDC COMPANY PRESENTATION

DECEMBER 2013

S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L

2

This presentation contains certain “forward looking statements.” These forward looking statements include words or phrases such as EDC

• r its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly,

statements that describe EDC’s objectives, plans or goals also are forward-looking statements. All such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. EDC does not make expressed or implied representations or warranties as to the accuracy and completeness of the information contained herein and shall not accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice. This presentation does not constitute a prospectus or other offering memorandum in whole or in part. Information contained in this presentation is a summary only and is prepared for discussion purposes and is not a complete record of the discussions. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any security. There shall be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification under securities laws of such state or jurisdiction. By receiving this presentation, each investor is deemed to represent that it is a sophisticated investor and possesses sufficient investment expertise to understand the risks involved. Prospective investors should undertake their own assessment with regard to their investment and they should obtain independent advice on any such investment’s suitability, inherent risks and merits and any tax, legal and accounting implications which it may have for them.

DISCLAIMER

3

TABLE OF CONTENTS

Page

1

Key Investment Highlights 4 – 22

2

YTD 3Q 2013 Financial Highlights 23 – 33

3

Growth Projects 34 – 42

4

Summary 43 – 44

APPENDICES

Page

i

Stages of Geothermal Development 47 – 51

ii

WESM 52 – 54

iii

Feed-in-Tariff and Retail Open Access 55 – 57

4

KEY INVESTMENT HIGHLIGHTS

5

Key Investment Highlights

1

2nd largest vertically integrated geothermal company in the world

• Fully integrated in all

geothermal concession areas

• Diversifying into wind

energy Energy sales largely derived from long term revenue contracts

• Cash flows generated at

both Parent and Project Company level

• Geothermal concession

agreements start expiring in 2031 88% increase in generating capacity achieved in 2009 – 2010

• Power Plant acquisitions

driving revenue growth

• 8 concessions

successfully acquired in Chile (4) and Peru (4) Geothermal is a competitive, strategic and reliable energy source

• Grid marked by robust

demand and tightening reserves margin

• RE Act of 2008 provides

regulatory support to the sector Financial risks deliberately managed

• Superior financial and
• perating results to

stakeholders

• Robust credit and

investment profile maintained

Contract-based Cash Flows

II

Domaine Expertise

I

Track Record

• f Growth

III

Favorable Industry Dynamics

IV

Strong Credit & Investment Profile

V

6

Domaine Expertise

I

COMPANY COUNTRY

STEAM CAPACITY

(in MW)

PLANT CAPACITY

(in MW)

1

Calpine USA 1,310 1,310

2 EDC

Philippines 1,130 1,130 3

Comision Federal de Electricidad Mexico 958 958

4

Enel Green Power Italy 915 915

5

Chevron USA 1,329 887*

6

Ormat Israel 689 749

7

Mighty River Power New Zealand 385 385

8

Terra Gen USA 337 337

9

Contact Energy New Zealand 335 335

10

Orkuveita Reykjavikur Iceland 333 333

11

CalEnergy Generation USA 329 329

12

Star Energy Ltd. Indonesia 227 227

13

Northern California Power Agency USA 220 220

Note: * Not included is the 442 MW operated by the Indonesian Government through PLN Source: Bertani, Ruggero, 2010: Geothermal Power Generation in the World 2005-2010 Update Report

2ND LARGEST VERTICALLY INTEGRATED GEOTHERMAL COMPANY GLOBALLY

7

Domaine Expertise

I

LEGEND

694.4MW Geothermal steam field and power plant

(Integrated)

87MW Wind

(under development)

435MW Geothermal steam field and power plant

(EDC/EDC subsidiary)

132MW Hydro power plant

(EDC subsidiary)

1 1 1 1 2 3 2

NPC DUs WESM NGCP TOTAL %

LUZON

• 550

778 498 1,826 9 VISAYAS 8,245 7,789 550

• 16,584

84 MINDANAO 1,373

• 1,373

7

TOTAL 9,618 8,339 1,328 498 19,783

100 %

49 42 7 2

100

87MW Burgos (Under development) 120MW Pantabangan 12MW Masiway 110MW Bacman I 20MW Bacman II 112.5MW Tongonan 112.5MW Palinpinon I 80MW Palinpinon II 125MW Upper Mahiao 232.5MW Malitbog 180MW Mahanagdong 50.9MW Optimization 52 MW Mindanao I 54 MW Mindanao II

1 1 1 1 2 3 2

1,208 MW

1,129MW Geothermal 79MW Hydro Power

% share

7% of Installed Capacity 10% of Electricity Produced

87 MW

Wind Energy (under development)

TECHNOLOGY & GEOGRAPHICALLY DIVERSE

YTD 3Q 2013 Revenues

8

Domaine Expertise

I

Fluid Collection and Recycling Operations; Electricity Generation; Maintenance and Repair; Resource Management;

Exploration Development Production

Surface Exploration Geo-scientific Investigation Exploration and Well Testing Resource Assessment Feasibility Study Fluid and Recycling Systems Design and Construction Power Plant Development

FULLY INTEGRATED AND SPANS THE ENTIRE GEOTHERMAL VALUE CHAIN

9

Contract-based Cash Flows

II

EDC Parent (4) 2,076 32% EGC (3) 3,242 51% FGHPC 1,082 17% EDC Parent (4) 5,432 43% EGC (3) 5,710 45% FGHPC 1,526 12% EDC Parent (4) 9,618 49% EGC (3) 8,339 42% FGHPC 1,826 9%

(2) All figures in PHP millions as of Sept. 30, 2013 (3) EGC figures do not include Bacman revenues from own generation - capitalized

since these were incurred pre-operations as per accounting rules

(4) EDC Parent figures include, Drillco, EWEHI, and International

19,783

EBITDA (2) as of Sept. 2013

12,668

Net Income (2) as of Sept. 2013

6,400

First Gen Hydro Power Corporation (FGHPC)

120.0 MW Pantabangan 12.0 MW Masiway

60%

Wind Energy Projects

87.0 MW Burgos (Under Development)

100%

International Expansion

• Chile
• Peru
• Indonesia

100% EDC Geothermal Corporation (EGC) 100%

192.5 MW Palinpinon 112.5 MW Tongonan

Green Core Geothermal

• Inc. (GCGI)

100%

110.0 MW Bac-Man I 20.0 MW Bac-Man II

Bac-Man Geothermal

• Inc. (BGI)

100%

(1)

• 694.4 MW Power Plants

 588.4 MW Unified Leyte Power Project  106 MW Mindanao Power Project Note: 49 MW No. Negros was put

• n preservation mode starting July

2011 (1) Formerly First Luzon Geothermal Energy Corporation (FLGEC)

Lopez Group

IFC GIC Public

E: 49.93 % V: 33.62% E: 1.69 % V: 1.12 % V: 3.35 % E: 5.03 % V: 61.91 % E: 43.35 %

Revenues (2) as of Sept. 2013

GENERATES CASHFLOWS AT BOTH PARENT AND SUBSIDIARY LEVELS

10

Contract-based Cash Flows

II

Electric Cooperatives/ Third party customers

POSSESSES STABLE AND PREDICTABLE CASH FLOWS

Subsidiaries of EDC

National Power Corporation

Power Supply Agreements (PSA) Transition Supply Contracts (TSC) Percentage of Consolidated Revenues (2) Power Purchase Agreements

USD Linkage

Electricity Cashflow

Steam Sales Agreements (SSA)

Bac-Man (1) Geothermal

Geothermal Resources Sales Contracts (GRSC)

Green Core Geothermal FG Hydro

Electricity Cashflow Electricity Cashflow Electricity Cashflow Steam

Cashflow or Dividends

Steam

Cashflow or Dividends

Dividends

Electricity 49% 73%

Sovereign off-take

Electricity 51% 0%

Commercial off-take

(1) Undergoing rehabilitation (2) As of Sept. 30, 2013

11

Contract-based Cash Flows

II

NGCP 498 2% DU 8,340 42% NPC 9,618 49% WESM 1,328 7%

19,783

LIMITED EXPOSURE TO VOLATILE SPOT MARKET

LONG-TERM CONTRACTUAL AGREEMENTS

(1) Consolidated revenues as of Sept. 30, 2013

2031 Geothermal Renewable Energy Service Contract CONCESSION Power Purchase Agreements (sovereign) Power Supply Agreements (commercial) ELECTRICITY 2024 2022

REVENUE IN PHP MILLIONS REVENUE IN GWH TERM STRUCTURE OF CONTRACTS(1) In PHP Millions

2031

year concession agreements start expiring

7%

revenue from volatile spot market

42%

expanded revenue base from non-institutional clients

National Power Corporation 9,618 49% National Grid Corporation of the Philippines (Ancillary Services) 498 2% Distribution Utilities/Industrial 8,340 42% WESM 1,328 7% National Power Corporation 3,283 62% National Grid Corporation of the Philippines (Ancillary Services) 110 2% Distribution Utilities/Industrial 1,663 31% WESM 276 5%

9%

revenue from contract tenors of 3-5 yrs

SPOT 1-2 YRS 3-5 YRS >6 YRS WESM 7%

• NGCP
• 2%
• NPC
• 49%

DU

• 11%

9% 22%

12

Track Record of Growth III

• Limited to steam field operations

19,007

28,369

10,324

17,330

8,768

10,376

(+) 125.0 MW

Upper Mahiao

(+) 49.4 MW

• N. Negros

(+) 463.4 MW

Mahanagdong, Malitbog, and Optimization

(+) 132.0 MW

Pantabangan – Masiway

• Acquired

geothermal concessions

• verseas

(-) 49.4 MW

• N. Negros

(-) 20.0 MW

Botong

(+) 150.0 MW

Bac-Man I & II

(+) 106.0 MW

Mindanao I & II

(+) 305.0 MW

Palinpinon & Tongonan

SIGNIFICANT PORTFOLIO EXPANSION SINCE PRIVATIZATION

STEAMFIELD OPERATOR STEAMFIELD AND POWER PLANT OPERATOR

2007 2008 2009 2010 2011 2012 2006 1976 - 2005

current (MW) 125 512.8 132 411 150 (69.4)

• cum. (MW)

125 637.8 769.8 1,180.8 1,330.8 1,261.4 1,261.4

2007-2012

Revenues 49.3% EBITDA 67.9% Net Income 18.3%

13

Track Record of Growth III

1,046 6,555 8,186 10,563 1,247 2,140 2,408 4,753 3.68 3.58 4.38 4.93 3.90 6.10 4.50 5.40

• 1.00

1.00 3.00 5.00 7.00 9.00

• 1

2 5 8 11 2009 2010 2011 2012 2009 2010 2011 2012

DRIVERS OF REVENUE GROWTH

Leak-free “Vanessa” Valves increased plant output by 2.89 MW (ave.) NJA interconnection addresses a 2 MW shortfall without drilling a new well

INVESTMENT Php42 Million REVENUES

Php170 Million

INVESTMENT Php5.7 Million REVENUES

Php67 Million for 10 mos. GCGI

Revenues 900%

RECENT PLANT ACQUISITIONS RESTRUCTURING THE ORGANIZATION - FROM BEING FUNCTION-LED, TO BEING DRIVEN BY STRATEGIC BUSINESS UNITS (SBUs)

Revenue

(PHP Million)

SBUs will deliver long-term effect of deeper business insights for improved decision making

BOD PRESIDENT

• MT. APO

NEGROS ISLAND BACMAN LEYTE LATIN AMERICA INDONESIA FG HYDRO BURGOS WIND CENTERS OF EXCELLENCE SBUs

FG Hydro

Revenues 281%

• 2009 to 2011 are transition

years during which we planted the seeds of growth

• Investment in FG Hydro,

Tongonan and Palinpinon have started to yield robust results

Revenues (LHS)

• Ave. Price (RHS)
• Ave. Price

(P/KWh)

14

Track Record of Growth III

MAINTAINS A TRACK RECORD OF OPERATIONAL EXCELLENCE

Unified Leyte Palinpinon I Palinpinon II Mindanao I Mindanao II Tongonan

Availability Factor (1) (%) Reliability Factor(2) (%)

Visayas Mindanao

YTD 3Q ‘12

0% 20% 40% 60% 80% 100% 97% 74% 99% 97% 98% 85%

YTD 3Q ‘12

0% 20% 40% 60% 80% 100% 99% 77% 99% 99% 100% 85%

YTD 3Q ‘13

0% 20% 40% 60% 80% 100% 98% 92% 83% 99% 100% 100%

YTD 3Q ‘13

0% 20% 40% 60% 80% 100% 98% 100% 99% 100% 100% 94% Source: Company data as of the end of Sept. 30, 2013 (1) Availability Factor - Fraction of time a unit is capable of providing service, considering both planned and unplanned outages. (2) Reliability Factor - Measure of ability of generating units to perform their intended function, considering unplanned outages only.

15

Favorable Industry Dynamics IV

PRINCIPAL TAX BENEFITS PRIMARY REVENUE & COST INCENTIVES OTHER KEY INCENTIVES

PREVIOUS

• Income Tax Holiday (“ITH”)
• 6 years under Pioneer Status
• Plus one year bonus
• Corporate income tax rate (after ITH period)
• f 30%
• Tax on carbon credits
• 30% income tax and 0% VAT
• Royalties
• Steam: Government share is 60% of net

proceeds

• Import of materials / equipment
• Zero duties
• Net operating loss carryover (“NOLCO”): 3

years

NOW

• Income Tax Holiday (“ITH”)
• 7-year ITH from start of commercial
• peration
• Corporate income tax rate (after ITH period)
• f 10%
• Even for existing operations, subject to

guidelines on pass-on savings

• Carbon credits tax exemption
• Royalties
• Steam: Government share is 1.5% of

gross margins

• Import of materials / equipment
• Zero duties
• Net operating loss carryover (“NOLCO”): 3

years

• Feed-in tariff(1)
• Renewable Portfolio Standard(2)
• Green Energy Option(3)

(1) Feed-in Tariff - A policy designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers. (2) Renewable Portfolio Standard - A market-based policy which requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. (3) Green Energy Option - A mechanism that empowers end-users to choose renewable energy in meeting their energy requirements.

RE ACT OF 2008 PROVIDES SUPPORT TO PHILIPPINE RENEWABLE ENERGY SECTOR

16

Favorable Industry Dynamics IV Luzon Visayas Mindanao

4.5% Average Demand Growth until 2030 4.6% Average Demand Growth until 2030 3.8% Average Demand Growth until 2030

• 100000000%
• 10,000,000,000,000,000.00

2009 2010f 2011f 2012f 2013f 2014f Current and Committed Dependable Capacity (LHS) Required Capacity to Maintain Reserve Margin (LHS) Peak Demand (LHS) Reserve Level (RHS) Minimum Reserve Margin (RHS)

Philippine Power Supply And Demand Profile

MW MW MW

• 20%
• 10%

0% 10% 20% 30% 40% 50% 2,000 4,000 6,000 8,000 10,000 12,000 14,000

• 20%
• 10%

0% 10% 20% 30% 40% 50% 500 1,000 1,500 2,000 2,500 3,000

• 20%
• 10%

0% 10% 20% 30% 40% 50% 500 1,000 1,500 2,000 2,500 Source: Company estimates

STRONG PHILIPPINE POWER DEMAND AND TIGHTENING RESERVE MARGINS WILL LEAD TO SIGNIFICANT NEW CAPACITY REQUIREMENTS

17

Favorable Industry Dynamics IV

Coal 5,568 33% Oil Based 3,074 18% Geothermal 1,848 11% Hydro 3,521 20% Natural Gas 2,862 17% New RE 153 1%

2012 POWER GENERATION IN THE PHILIPPINES

17,025 MW

NOTES: 1) Quoted production costs were derived from estimated weekly cost of Luzon grid power plants at 83% capacity factor as of August 29 2013, VAT inclusive 2) Despite P 1.87/kWh production cost, hydro capacity is still used for peaking because these are not run-of-river types used for base load. Only Casecnan is run-of-river

2012 INSTALLED CAPACITY IN THE PHILIPPINES

Source: DOE

• 2,000

4,000 6,000 8,000 10,000 12,000

Geothermal Coal Natural Gas Hydro Oil Based/Gas Turbine

LUZON DISPATCH AT FULL COST (1)

5.60–7.60 P/kWh WITH VAT 4.22 P/kWh 3.68 P/kWh 4.80–5.00 P/kWh 1.87 PHP/kWh(2) 4.96 PHP/kWh 12.59 PHP/kWh

2012 Peak Demand: 7,889 MW 2012 Required Reserve: 9,703 MW

• Ave. dependable capacity (MW)

GEOTHERMAL REMAINS TO BE A COMPETITIVE, RELIABLE AND STRATEGIC ENERGY RESOURCE

72,922 GWh

Coal 28,265 39% Oil Based 4,254 6% Geothermal 10,250 14% Hydro 10,252 14% Natural Gas 19,642 27% New RE 259 0%

18

Favorable Industry Dynamics IV

Technical Services 14% Engineering & Construction 4% Power Generation 29% Steam Field Operations 29% Others (2) 24%

BOARD OF DIRECTORS

LED BY AN EXPERIENCED BOARD OF DIRECTORS AND MANAGEMENT TEAM THAT IS COMMITTED TO BEST IN CLASS CORPORATE GOVERNANCE PRACTICES

• Key authorities in the power industry
• Long-standing relationships with key industry

stakeholders

• Advocates of good corporate governance
• Platinum Award for Corporate Governance from the Institute of Corporate Directors and Securities and Exchange Commission.
• 8th Placer in Finance Asia’s Best in Corporate Social Responsibility
• Four Philippine Quill Awards for HELEN, CAREERS & BINHI from the International Association of Business Communicators
• Three Seals of Approval for MGPF, LGPF & GCGI under DENR’s Philippine Environment Partnership Program for voluntary self-regulation &

improved environmental performance

• Five Anvil Awards for Corporate Sustainability Communications Program, annual report, BINHI and calendar & planner from Public Relations

Society of the Philippines

Average Years of Management Experience

15+

Average Years

• f Engineering

Experience

12

(1) As of June 30, 2013 (2) Includes Office of the President, Finance, HR, Business Development, Supply Chain,

and Environment & External Relations

TECHNICAL EXPERTISE (1) CORPORATE GOVERNANCE RECENT AWARDS

• Board works directly with President to determine

strategy

• EDC’s independent directors are active members of

committees.

• Board Strategic Planning sessions are regularly

conducted

19

Favorable Industry Dynamics IV

Health 4% Education 48% Livelihood 23% Environment 17% Others 8%

EDC HAS VARIOUS CORPORATE SOCIAL RESPONSIBILITY PARTNERSHIPS AND PROGRAMS

OUR SOCIAL AND ENVIRONMENTAL COMMITMENTS CSR INVESTMENTS FOR 2012

Note: Data is as of year 2012, except for the no. of students studying in UP which is as of September 2013.

Php103 MM

Total CSR Investment in 2012

• We believe that education is the most dependable way out of

poverty

• 143 new trainees admitted to Kananga – EDC institute of

Technology (KEITECH)

• 735 students enrolled at the Leyte Schools for Excellence

(SFE) project

• Scholarships program: 22,947 (elementary), 1,176 (high

school), 34 (college).

• We believe in being a partner in progress of the communities

in which we operate

• 15,888 individuals served during medical, dental, surgical
• utreach activities across 5 project sites.
• Assisted in 17 major livelihood projects earning a total net

income of PHP12.3M.

• 2,253 small scale contracts worth PHP301M awarded to

local farmer federations.

• We believe in protecting and nurturing our environment

because failing this - our resources will suffer

• BINHI Project – 1,550,341 trees planted for specific module

(Tree for the Future, Tree for Life and Tree for Food)

20

Strong Credit & Investment Profile

V

DELIBERATELY MANAGING FINANCIAL RISKS

DEBT MATURITY PROFILE1 Sculpted to support EDC’s growth trajectory LOANS BY STRUCTURE2 Predominantly fixed debt matches nature of energy projects

Average Loan Life (Years)

5.6 yrs

Average Interest Cost

7.1%

Type Currency Outstanding

(MM)

Repayment Interest Tenor

(Yrs)

Maturity Club Loan3 USD 158 Amortizing LIBOR+1.75% 6.0 2017 Reg S Bonds USD 300 Bullet 6.50% 10.0 2021 IFC Loan 1 PHP 3,416 Amortizing 7.40% (2) 15.0 2023 IFC Loan 2 PHP 3,137 Amortizing 6.66% 15.0 2025 PHP FXCN PHP 6,930 Amortizing 6.62% 10.0 2022 PHP Bonds PHP 12,000 Bullet 8.64%, 9.33% 5.5, 7.0 2015, 2016 PHP Bonds PHP 7,000 Bullet 4.16%, 4.73% 7.0, 10.0 2020, 2023

(1) In USD Millions as of September 30, 2013 (3) USD65MM converted to PHP via Cross Currency Swap (2) First 5 years, subject to re-pricing for another 5-10 years

LOANS BY CURRENCY3 US$ indexed revenues provide natural hedge LOANS

• 100

200 300 400 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 USD Debt PHP Debt

Fixed 1,105 92% Floating 99 8% USD1,204 PHP Debt 805 67% USD Debt 399 33% PHP Revenues 392 65% USD Revenues 213 35% USD1,204

21

Strong Credit & Investment Profile

V

• Sept. 2013

Dec-12 Dec-11 Dec-10

2.75x 3.24x 2.14x 2.51x

• Sept. 2013

Dec-12 Dec-11 Dec-10

PHP 29.96 PHP 29.84 PHP 29.30 PHP 26.47

• Sept. 2013

Dec-12 Dec-11 Dec-10

2.29x 2.17x 2.95x 2.56x

• Sept. 2013

Dec-12 Dec-11 Dec-10

1.12x 1.06x 1.32x 1.09x

• Sept. 2013

Dec-12 Dec-11 Dec-10

0.37x 0.30x 0.33x 0.32x

Notes: (1) Figures computed on a consolidated basis ending Sept. 30, 2013 (2) EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization, Trailing 12 months (3) Debt Service Coverage Ratio = Net Cashflow from Operating Activities / (Short Term Debt + Long Term Debt + Projected Interest Service for the next 12 months) (4) PHP Million per MW

NET DEBT TO MARKET CAPITALIZATION Deteriorated with drop in price per share NET DEBT TO EQUITY Allows for additional fund raising NET DEBT TO EBITDA (2) Well within our targeted 3.6x NET DEBT PER MW POWER (4) Declined with the pre-funding of Burgos Project DEBT SERVICE COVERAGE RATIO (3) Higher than the minimum covenanted 1.2x

MAINTAINING A ROBUST CREDIT PROFILE (1)

1.2x 3.6x

22

Strong Credit & Investment Profile

V

13,748 13,238 17,330 16,448 16,508

57% 54% 61% 59% 62% 0% 20% 40% 60% 80% 100% 3,000 6,000 9,000 12,000 15,000 18,000 Dec-10 Dec-11 Dec-12 YTD 3Q'12 (12 mos) YTD 3Q'13 (12 mos)

• 3,000

6,000 9,000 12,000 Dec-10 Dec-11 Dec-12 YTD 3Q'12 YTD 3Q'13

7,238 5,245 9,895 7,772 6,400 4,395 615 10,376 8,566 5,925

400 2,400 4,400 6,400 8,400 10,400 Dec-10 Dec-11 Dec-12 YTD 3Q'12 YTD 3Q'13

CONSOLIDATED NET INCOME To decrease with lower ancillary revenues RECURRING NET INCOME To remain at the same level as last year

• 6,000

12,000 18,000 24,000 30,000 36,000 Dec-10 Dec-11 Dec-12 YTD 3Q'12 YTD 3Q'13

24,153 24,540 28,369 21,443 19,783

EBITDA MARGIN To remain robust & stable CONSOLIDATED REVENUES To remain at the same level as last year

(1) Consolidated revenues and net income in PHP mm for the period ended Sept. 30, 2013 (2) EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization, Impairment and Non-Cash Provisions in PHP mm for the period ended Sept. 30, 2013 (3) Recurring Net Income = Net Income – FX Gains – Derivative Gains – Impairments and other one-time expenses

DELIVERING SUPERIOR FINANCIAL AND OPERATING RESULTS TO STAKEHOLDERS

23

YTD 3Q 2013 FINANCIAL HIGHLIGHTS

24

YTD 3Q 2013 Financial Highlights

2

21.4 0.6 (1.9) (0.3)

Revenues,

• Sept. 2012

GCGI FG Hydro Mindanao and Leyte Revenues,

• Sept. 2013

22.0 20.1 19.8 19.8

YTD SEPTEMBER 2013 CONSOLIDATED REVENUES DECLINED BY PHP1.6 BILLION DUE MAINLY TO DECREASED CONTRIBUTION FROM FG HYDRO

In PHP Billions

• Pantabangan-Masiway’s revenues decreased by P1,943.1 M (51.6%), for sale of ancillary services to

NGCP.

• Lower revenues by P176.7 M due mainly to the decline in sales volume from Unified Leyte.
• Lower revenues by P119.1 M due mainly to adjustment for prior year’s short fall generation for

Mindanao.

• Revenues from 192.5 MW Palinpinon and 112.5 MW Tongonan power plants are higher by P579.6 M

(7.5%).

Leyte 8,422 Mindanao 1,492 Tongonan I 2,376 Palinpinon 5,384 Pantabangan

• Masiway

3,770

YTD 3Q 2012 REVENUES

(P millions) Leyte 8,245 Mindanao 1,373

Tongonan I 3,112 Palinpinon 5,227

Pantabangan- Masiway 1,826

YTD 3Q 2013 REVENUES

(P millions)

25

YTD 3Q 2013 Financial Highlights

2

7.8 6.4 5.8 0.6 0.3* (0.6) ( 1.7) 0.6

RNI, June 2012 GCGI BGI EDC Parent FG Hydro RNI, June 2013 NCI RNI Attributable to EDC

8.7 8.1 5.8 6.4

In PHP Billions

Note: * excludes own generation offset against Property, Plant & Equipment

8.4

• Lower revenue contribution mainly from FG

Hydro resulted to a decline in Consolidated Net Income (NI)

• Lower

ancillary revenues (P1,364.5 M) decreased FG Hydro’s NI and RNI contribution by P1,692.4 M and P1,692.6 M, respectively.

• GCGI partially offset the decline as its NI and

RNI contribution increased by P257.5 M and P554.5 M due to P579.6 M (7.5%) in additional revenues.

CONSOLIDATED RECURRING NET INCOME DOWN BY PHP1.4 BILLION

RNI Computation

YTD 3Q 2013 YTD 3Q 2012 NET INCOME (LOSS) 5,925 8,566 ADD (DEDUCT) NON-RECURRING ITEMS: Foreign exchange (gain)/loss 901 (814) Capitalization of interest expense to property, plant & equipment (191) (174) Write-off of 2006 input VAT claims 220

• Recognition of costs related to BGI’s testing generation

(401)

• Miscellaneous (income)/charges

16 104 Income tax provision for (benefits from) non-recurring items (70) 90 RECURRING NET INCOME 6,400 7,772

26

YTD 3Q 2013 Financial Highlights

2

BCQs 270.1 BCQs 117.6 WESM 84.8 WESM 156.3

• Sept. 2012
• Sept. 2013

Sales Volume

(GWh)

• 22.8%

PHP435 Million 5.37 4.85

• Sept. 2012
• Sept. 2013
• Ave. Tariff

(PHP/KWh)

• 9.7%

PHP144 Million

3,769 1,826

Ancillary Services, 1,862 Ancillary Services, 498

• Sept. 2012
• Sept. 2013

Revenues

(PHP Million)

• 51.6%

1,943 2,774 1,082

• Sept. 2012
• Sept. 2013

Net Income

(PHP Million)

• 61.0%

1,692 Drivers Lower Ancillary services (1,364) Lower tariff (144) Lower volume (435) (1,943) Drivers Lower revenues (1,943) Lower expenses mainly interest expense 251 (1,692) Net income attributable to: Non-controlling interest 575 EDC 507 1,082

Contracted 551 30% WESM 778 43% Ancillary 498 27%

YTD 3Q 2013 Revenues

(PHP Millions)

FG HYDRO’S REVENUE AND NET INCOME DECREASED DUE TO LOWER REVENUES FROM ANCILLARY SERVICES AND LOWER TARIFF

27

YTD 3Q 2013 Financial Highlights

2

1,587 1,665

• Sept. 2012
• Sept. 2013

Sales Volume

(GWh) PHP381 Million + 4.9%

7,759 8,339

• Sept. 2012
• Sept. 2013

Revenues

(PHP Million)

+ 7.5%

580 Drivers Higher tariff 199 Higher volume 381 580 4,010 4,267

• Sept. 2012
• Sept. 2013

Net Income

(PHP Million)

+ 6.4%

258 Drivers Higher revenues 580 Lower operating expenses 48 Others, mainly foreign exchange loss (328) Higher provision for income tax (42) 258

4.89 5.01

• Sept. 2012
• Sept. 2013
• Ave. Tariff

(PHP/KWh) Php199 Million + 2.4%

Contracted 7,789 93% WESM 550 7%

YTD 3Q 2013 Revenues

(PHP Million)

GCGI’s INTEGRATED NET INCOME INCREASED BY 6% DUE TO HIGHER REVENUES PARTIALLY OFFSET BY FX LOSS

28

YTD 3Q 2013 Financial Highlights

2

Drivers Lower operating costs 686 Others, mainly foreign exchange loss (249) 437 1,402** 417* 440* 1,379 Gross Cash Generated Cost from WESM Net Cash Generated

Bacman Geothermal Inc.

• Jan. – Sept. 2013

1,819 1,379

Replacement Power Own Generation

In PHP Millions

WESM 101 28% Own Generation 261 72%

Supply Power

• Jan. – Sept. 2013

In GWh

Net cash generated from BGI’s operations is PHP 1,379 M

(1,302) (865)

• Sept. 2012
• Sept. 2013

Net Loss

(PHP Million)

• 33.6%

437

IMPROVEMENTS IN OPERATING COSTS RESULTED TO A LOWER NET LOSS FOR BACMAN

* Trading revenues and replacement power costs are presented net in the P&L ** Php1,402 million in testing revenues generated by Bacman are netted off from PPE as required by Philippine Accounting Standards (PAS) 16

29

YTD 3Q 2013 Financial Highlights

2

1,492 1,373

• Sept. 2012
• Sept. 2013

Revenues

(PHP Million)

• 8.0%

119 240 19

• Sept. 2012
• Sept. 2013

Net Income

(PHP Million)

• 92.0%

221 Drivers Lower revenues (119) Higher operating expenses (32) Others (mainly foreign exchange loss) (70) (221) Drivers Lower tariff (11) Lower Volume (32) Q1 2013 adjustment for prior year’s shortfall generation (none in Q1 2012) (76) (119)

2.80 2.78

• Sept. 2012
• Sept. 2013
• Ave. Tariff

(PHP/KWh) PHP11 Million

• 0.8%

533 521

• Sept. 2012
• Sept. 2013

Sales Volume

(GWh)

• 2.2%

PHP32 Million

MINDANAO I & II’s NET INCOME DECREASED DUE TO 2012 SHORTFALL ADJUSTMENT EFFECTED IN 2013 AND FX LOSS

100% Contracted

NPC Revenues

30

YTD 3Q 2013 Financial Highlights

2

8,422 8,245

• Sept. 2012
• Sept. 2013

Revenues

(PHP Million)

• 2.1%

Drivers Higher tariff 2 Lower volume (179) (177) 2,972 2,228

• Sept. 2012
• Sept. 2013

Net Income

(PHP Million)

• 25.0%

Drivers Lower revenues (177) Lower expenses 128 Others, mainly foreign exchange loss (695) (744)

2.985 2.986

• Sept. 2012
• Sept. 2013
• Ave. Tariff

(PHP/KWh) 0.03% 2,821 2,761

• Sept. 2012
• Sept. 2013

Sales Volume

(GWh)

• 2.1%

PHP179 Million PHP2 Million

UNIFIED LEYTE‘s NET INCOME DECREASED DUE TO LOWER VOLUME AND FX LOSS

177 744

100% Contracted

NPC Revenues

31

YTD 3Q 2013 Financial Highlights

2

In PHP Billions

CASH GENERATED FROM OPERATIONS AND PESO BOND ISSUANCE SERVICED DEBT AND FUNDED CAPEX

11.4 18.2 11.9 6.9 3.4 2.5 6.1

Cash Balance, Dec 2012 Cash generated from

• perations

Peso Bonds proceeds Debt Servicing Cash Dvidends PPE Acquisition, & Others Cash Balance,

• Sept. 2013

23.3 30.2 26.8 24.3 18.2

• Cash generated increased by 59.7% due mainly to the P11,929.0 M cash generated from operations and the P6,908.9 M

proceeds from the Peso Bond issuance. These were offset by the following:

P6,107.7 M property, plant and equipment acquisition P2,458.7 M payment of cash dividends P3,429.4 M interest, financing charges paid and payment of long term debts

32

YTD 3Q 2013 Financial Highlights

2

Current ratio improved due to higher current assets brought about by higher cash balance from Peso Bond issuance. Net debt-to-equity improved mainly due to higher equity brought about by the additional net income for the past 12 months. Net debt-to-EBITDA improved mainly due to higher annualized EBITDA

• Sept. 2012
• Sept. 2013

2.11 2.48

Current Ratio

• Sept. 2012
• Sept. 2013

1.12 1.03

Net Debt-to-Equity

• Sept. 2012
• Sept. 2013

2.33 2.29

Net Debt-to-EBITDA*

Note: *- trailing 12 months

DEBT RATIOS ALSO GENERALLY IMPROVED AS A RESULT OF HIGHER NET INCOME

33

YTD 3Q 2013 Financial Highlights

2

DIVIDEND POLICY IS TO DECLARE 30% OF PRIOR YEAR’S RNI

Dividend Policy Statement

At or about 30% of previous year’s Recurring Net Income subject to i) debt service requirements and loan covenants, and ii) the implementation of business plans, operating expenses, budgets, funding for new investments and acquisitions, appropriate reserves and working capital. 1,485 1,875 2,175 1,863 2,250 3,000 1,875 750 1,500 1,500

500 1,000 1,500 2,000 2,500 3,000 3,500 2007 2008 2008 (special) 2009 2010 2011 2012 2012 (special) 2013 2013 (special)

PHP Million

Dividends on Common Shares

PHP/share 0.099 0.125 0.145 0.125 0.120 0.160 0.100 0.040 0.080 0.080 Yield 1.7% 2.0% 2.4% 3.3% 2.4% 2.7% 1.7% 0.7% 1.2% 1.4% % of RNI 30% 30% 35% 33% 31% 45% 42% 16% 18% 18%

34

GROWTH PROJECTS

35

Growth Projects

3

EDC’S GROWTH AGENDA

305 MW Palinpinon-

Tongonan in 2009

130 MW Bacman in

2010

 Unified Leyte IPPA  87 MW Burgos Wind to

be commissioned in 4Q ’14; plan to upsize development to 150 MW is underway

 Wind measurement

studies on-going in other prospects

 ~25 MW Nasulo to be

commissioned in 2H’14

 5 MW NNGP Plant

development is on-going

 ~120 MW for

commissioning by 2018

8 concessions

successfully acquired in Chile (4) and Peru (4)

Established local offices

in Latin America and Indonesia

1 2 3 4

ACQUIRE DEVELOP CONQUER DIVERSIFY

Win key government geothermal privatization projects Install 261MW of greenfield geothermal capacity to address new demand Establish viable

• perations in

Asia, Latin America, and Africa Build 200MW

• f wind capacity,

while expanding RE portfolio

36

Growth Projects

3

NASULO WILL CONTRIBUTE AN ADDITIONAL 20~25 MW, OR ~PHP800-900MM IN REVENUES ANNUALLY

Phase 1 contract awarded to First Balfour Phase 2 contract awarded to Sumitomo, including novation of the Phase 1 contract Target COD

NNGP TO NASULO (N2N) RELOCATION PROJECT

CIVIL WORKS ELECTRO- MECHANICAL DISASSEMBLY WORKS ELECTRO- MECHANICAL INSTALLATION WORKS

*as of Sept 17

POWERHOUSE BUILDING GAS REMOVAL SYSTEM (BEFORE) HOTWELL PUMP FOUNDATION COOLING TOWER

PHASE 1 PHASE 2 AUG ‘12 DEC ‘12 2H '14

GAS REMOVAL SYSTEM (AFTER)

37

Growth Projects

3

EDC decided to shut down NNGP due to the declining resource. Completed Optimization Tests, revealed 5-8 MW NNGP as sustainable resource potential

6 MW NORTHERN NEGROS PLANT

Target COD

NORTHERN NEGROS PLANT WILL BE RESIZED TO A MORE SUSTAINABLE UNIT

JUL ‘11 NOV ‘12 2H '15

DISMANTLING NEW LOCATION OF 6MW NNGP PLANT 49MW NNGP PLANT

38

Growth Projects

3

• EST. ANNUAL ENERGY GENERATION ~233GWH
• EST. ANNUAL REVENUES PHP2 BILLION

87 MW BURGOS WIND PROJECT

Installation Target:

200 MW

Projects:

326 MW

87 MW: EDC Burgos 80 MW: UPC Pagudpud 56 MW: Alternergy Pililia 54 MW: TransAsia Guimaras 50 MW: PetroEnergy Aklan

THE WIND INSTALLATION TARGET IS OVER-SUBSCRIBED

Conducted groundbreaking ceremony Signed $300 M deal with Vestas of Denmark

• Granted DOE Certification for Commerciality
• Secured financing through P7 B bond

issuance NTP issued to EPC Contractors:

• Wind Farm: Vestas
• Substation: Alstom
• Transmission Line: First Balfour

Target COD

MAR ‘13 APR ‘13 MAY ‘13 JUN ‘13 4Q ‘14

PLAN TO UPSIZE TOTAL DEVELOPMENT TO 150 MW IS UNDERWAY

Note: FIT Allocation to be determined upon completion of the project

39

Growth Projects

3

BEFORE AFTER BEFORE AFTER

UNIT 2 COOLING TOWER GAS REMOVAL SYSTEM UNIT 1 - On extended shutdown after hairline cracks were detected during the September 12 interim

• inspection. Steam rotor is for

inspection, re-certification and repair in a machine shop in Manila duly accredited by Sulzer Turbo Services. UNIT 2 - shut down last February 28, 2013 due to high vibrations; Steam rotor is with Sulzer Turbo Services in Indonesia for inspection, re-certification and repair. UNIT 3 - being operated at rated capacity starting June 2013; initial guidance given was de-rated operation.

130 MW BACMAN PROJECT

COMPLETION OF BACMAN REHABILATION WORKS REMAINS A CHALLENGE

40

Growth Projects

3

LOCAL GEOTHERMAL PROJECTS WILL BE THE MAIN SOURCE OF GROWTH IN THE MEDIUM TERM

EXECUTION ADVANCED EXPLORATION RESOURCE CONFIRMATION

2 1 1 1 2 1 3 3 2 4 5 3 PROJECT CAPACITY 2014 2015 2016 2017

Beyond

2018

Nasulo 20 MW X

• No. Negros

6 MW X Bacman 3 30+ MW X Botong-Rangas 40+ MW X Mindanao 3 50 MW X Labo 25 MW X Kayabon 50 MW X Dauin 40 MW X

2

1 2 3 4 5 1 3 2 2 1 1 2 3

FRONTIER AREAS

Mandalangan, Negros Occidental Lakewood, Zamboanga del Sur Ampiro, Misamis Occidental Balingasag, Misamis Oriental

• Mt. Zion, North Cotabato

5 FRONTIER GEOTHERMAL AREAS ADDING TO THE 261 MW IN THE EXPANSION SPACE

41

Growth Projects

3

OVERSEAS EXPANSION - INDONESIA

• EDC has a Representative Office in Jakarta and incorporated two local entities in Indonesia to facilitate

the identification and exploration of new geothermal projects

• Expansion of the local team is ongoing -- EDC hired a country head earlier this year and plans to engage

additional key personnel

• On 13 Dec 2012, EDC was granted Preliminary Survey (“PS”) Rights to 1 site in Sumatra. The PS Rights

grants EDC one year to conduct surface exploration activities and geoscientific surveys.

EDC REPRESENTATIVE OFFICE JAKARTA, INDONESIA

ENTRY MODE IS EITHER BY DIRECT APPLICATION OR IN JV WITH EXISTING CONCESSION HOLDERS

42

Growth Projects

3

OVERSEAS EXPANSION – LATIN AMERICA

JAN ‘12 APR ‘13 ‘14-‘15 MAY ‘12 JUN ‘13

Awarded 3 geothermal concessions in Chile: Newen, San Rafael and Batea

• Executed Shareholders

Agreements with Hot Rock Limited Calerias and Longavi in Chile and Quellaapacheta and Chocopata in Peru.

• EDC will hold 70%

interest in each of the project companies Commenced the incorporation process for the Quellaapacheta Project Company

• Executed Shareholders

Agreements with Alterra Power Corp. For the Mariposa concession in Chile and 3 areas in Peru: Tutupaca, Loricota and Crucero.

• EDC will hold 70% interest

in each of the project companies. Drilling of Wells in Mariposa and Quellaapacheta

OVERSEAS EXPANSION WILL BE THE MAJOR GROWTH DRIVER IN THE LONG TERM

43

SUMMARY

44

Summary

4

MOVING FORWARD, WE OUTLINE THESE OBJECTIVES FOR 2014 AND BEYOND

Priorities 2014+ Objectives Domestic Organic Growth

Implement and commission the N2N project by 2014 Complete exploration well drilling needed to firm up resource estimates for Bacman 3 and Mindanao 3

Diversify to

• ther RE Sources

Commission 87 MW Burgos Wind project by 4Q 2014 and upsize to 150 MW by 1Q 2015

Overseas Expansion

Drill wells in Mariposa, Chile by 2014 and continue to look for prime geothermal sites in Peru and Indonesia either on our

• wn or in joint venture with existing concession holders

Balance Sheet Management

Term out forthcoming bullet maturities Lower further interest costs and continually manage currency risk exposure

45

END OF PRESENTATION

www.energy.com.ph

46

APPENDICES

47

STAGES OF GEOTHERMAL EXPLORATION

48

Stages of Geothermal Development

i

VOLCANOES, HOT SPRINGS, FUMAROLES AND SOLFATARAS INDICATE THE PRESENCE OF GEOTHERMAL RESOURCES

Temperature/Chemical Measurements Surface Thermal Manifestations

49

Stages of Geothermal Development

i

Geophysical Surveys

GEOSCIENTIFIC SURFACE STUDIES DELIMIT THE GEOTHERMAL PROSPECT AND IDENTIFY TARGETS FOR EXPLORATION DRILLING

Deep Well Drilling

50

Stages of Geothermal Development

i

DISCHARGE TESTING OF WELLS CONFIRM THE CHEMISTRY OF THE RESERVOIR FLUIDS AND THE PRODUCTIVITY OF THE WELLS

Well Discharge Testing

51

Stages of Geothermal Development

i

• Geothermal Exploration

and Development

• Reservoir Engineering

and Management

• Engineering Design
• Construction
• Environmental

Management

• Energy Research and

Development

320oC 180oC 165oC Geothermal fluid extracted Geothermal water injected Geowater recycled

VERTICAL INTEGRATION OF GEOTHERMAL SERVICES

OUR IN-HOUSE EXPERTISE SPANS THE ENTIRE GEOTHERMAL VALUE CHAIN: FROM EXPLORATION TO POWER PLANT OPERATIONS

52

WESM

53

WESM

ii

2010 2011

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave Luz Ave

5.64 7.58 5.20 4.11 4.05 3.83 3.76 3.78 4.09 4.08 3.24 3.24 3.37 4.16 3.93 3.83

3.79 Luz Ave Peak

9.53 12.95 8.21 6.11 6.16 5.66 5.79 5.67 6.37 6.58 5.03 5.03 5.42 6.72 6.06 5.75

5.86 Vis Ave

3.60 2.26 3.08 2.59 2.70 4.22 4.07 3.30 3.30 3.51 4.87 4.29 4.18

3.54 Vis Ave Peak

5.63 3.22 4.42 3.30 3.44 6.60 6.59 5.18 5.18 5.80 7.76 6.72 6.47

5.40

• 6.00
• 4.00
• 2.00

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00

P/KWh

High WESM prices due to tight supply caused by: (1) Malampaya outage; (2) DOE mandated Power Plants to conduct maintenance before May elections, (3) Prolonged El Nino lowered hydro power generation Lower Demand due to Cold Season and Extended Holidays Lower prices due to “Limay Must-Run” situation Lower prices with normalized supply in the grid Baseload Plant Outages (Masinloc, Calaca, Sual)

WESM WEEKLY AVERAGE PRICES (JANUARY 1, 2009 TO DECEMBER 31, 2011)

Source: Philippine Electricity Market Corporation

Luzon Baseload Plant Outages Increased demand due to Summer Season Merging of WESM LUZON – VISAYAS

FROM THE SPIKE IN ELECTRICITY PRICES IN 1Q 2010, WESM PRICES HAVE SINCE THEN MODERATED

54

WESM

ii

PRICES PEAKED IN MAY 2011, WHEN DEMAND INCREASED DUE TO HIGH TEMPERATURES, AND IN OCTOBER 2011 AND JUNE 2012, WHEN THE MARKET EXPERIENCED TIGHT SUPPLY CONDITIONS

Jan-11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-13 Feb Mar Apr May June Jul Aug Sep Luzon 3.68 3.06 2.38 3.26 6.01 3.90 4.48 3.67 3.77 6.98 5.02 5.03 5.03 3.40 4.43 3.72 5.37 8.12 7.70 2.39 4.30 6.40 5.40 6.10 3.04 2.79 4.89 6.99 6.02 4.31 2.87 3.20 2.68 Visayas 2.82 3.43 2.72 2.69 5.60 3.86 4.51 3.78 3.94 5.89 5.46 5.32 4.71 3.80 4.58 3.67 5.37 8.13 7.49 2.60 4.72 5.60 5.50 6.20 3.25 2.63 4.23 7.16 6.01 4.05 2.88 2.95 3.03

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

2011 – 2013 Luzon and Visayas Monthly Ave Prices (ex-Ante)

55

FEED-IN-TARIFF & RETAIL OPEN ACCESS

56

Feed-in-Tariff and Retail Open Access iii Incentives Under the RE Act Feed-in tariff (FIT) – a renewable energy policy that provides guaranteed tariff on a fixed rate per kWh for emerging renewable energy sources. Technology Approved FIT Rate (P/kWh) First Installation Target (MW)

Solar 9.68 50 Wind 8.53 200 Biomass 6.63 250 Run-of- River Hydro 5.90 250 Ocean 17.65 * (proposed) 10 Total 760

Renewable Portfolio Standards – a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. Net Metering – refers to a system in which a distribution grid has a two-way connection, it is charged for its electricity consumption and credited for any renewable contribution. Green Energy Option – a mechanism that empowers end-users to choose a renewable energy in meeting their energy requirements.

Renewable Energy Law (RA 9513) Non-Fiscal Incentives FIT Scheme Renewable Portfolio Standards Net Metering Green Energy Option Fiscal Incentives * The ERC deferred fixing the FIT rate for ocean thermal projects pending more studies and data gathering.

FEED-IN-TARIFF MECHANISM : A CATALYST FOR DOMESTIC CAPACITY TO SCALE UP

57

Feed-in-Tariff and Retail Open Access iii

EDC CONSIDERS THE OPEN ACCESS MARKET AS AN OPTION TO IMPROVE REVENUE CERTAINTY

Retail Open Access

EDC IS PREPARED TO MARKET TO END CONSUMERS.

• Open

access will provide EDC an additional customer segment available to sell its existing and future capacities.

• EDC will not be limited to serve and contract with

DUs, specifically electric coops, at contract prices which requires approval from the ERC.

• The scheme poses challenge in tapping new

customers with demand of as low as 1MW

• Contracts management and billing system has to be

in place to effectively handle the increasing number of retail customers.

BENEFITS CHALLENGES