Introduction:

Business Case for Clean Power in Mobile: The mobile industry presents a unique opportunity for clean power. As the mobile industry is aware, it is commonplace for many regions, most notably the emerging market to face grid power that is unreliable or non-existent. These regions are therefore heavily reliant on diesel generators, if the price of diesel is high ($1.00+ per litre), then solar, wind, battery cycling or a combination of these power sources presents a compelling business sense. *The following case study and business overview has been prepared to demonstrate a common opportunity in emerging markets and to highlight the value of the Clean Power Systems (CPS) products/services as they relate to such opportunities. GSMA Findings Summarized: 1. Off-grid Locations are prevalent & high in OPEX (diesel, maintenance) 2. Off-grid sites have rapidly increasing costs (costs should reflect delivered diesel costs) a. Delivered diesel costs are averaged at 30% more than retail price 3. Solar & Wind Power: Viable Solutions Today a. Proven in markets with delivered diesel prices over $1.00 per litre b. Solar/Wind Installed Cost should be considered, not retail cost* See Fig.1 Below Fig.1

4. 5.

CAPEX is high, but ROI is short a. ROI typically between 3-5 years Energy planning & green solutions are new to operators

* Extracted from the GSM Association statement 2008

Market Overview
Estimated green telecom infrastructure is a US$35 billion market*, 565,000 off grid cell sites deemed suitable for a renewable solution with an estimated growth rate of 75,000 per year of new installations, this represents 865,000 off grid sites by 2015 Fig. 2

 Current Challenges in the Mobile Network: Increased competition has meant the Average revenue per user (ARPU) continues to fall in much of the emerging markets. Generators remain the predominant source of power, relying solely on diesel to operate the sites; increasing diesel costs and maintenance with 24/7 diesel generator runtime policy means high OPEX costs for Off grid sites and in some cases On grid sites with limited or unreliable grid connections. Regrettably, theft of diesel is prominent and coupled with high distribution costs mean the price per litre of diesel is often doubled. Additionally, regular site maintenance visits increases site faults through human error, with current maintenance schedules set at every 250hrs this translates to as much 70-80% of site failure is power related. The CPS Solution: CPS designs and installs customized power solutions (hybrid & renewable) to ensure maximum OPEX reduction (approximately 30%-50%) with a focus on decreased generator runtime and lower fuel consumption. Therefore decreasing the distribution expenses, increasing battery life and decreasing maintenance visits. Our designs are modular allowing for the customer to fully customise the solution to meet ALL the parameters they require. Fig. 3 shows the benefits of each module. Fig. 3

Diesel Consump-on %
120 100 80 60 40 20 0 Hybrid Wind (Generator +Ba5ery+Wind) SolSite (Generator +Ba5ery+Solar+Wind) Generator GelSite (Generator +Ba5ery) SolSite (Generator +Ba5ery+Solar) SolSite (Ba5ery+Solar +Wind)

based on management

Business Case:
Project: Madagascar Address: Antananarivo
Executive Summary:

This document will highlight a simple design created by Clean Power Systems (CPS) for a client in Africa. This design represents the CPS SolSite, a Hybrid + Solar system which was cost effective and achieved good OPEX reductions. For best results to meet CAPEX and performance we advise the following hardware: 1. SolSite 200 series 191-220Wp PV Panels 8 panels 1.528kW COST: US$7,258.00 2. 190AH 12V Cells 4 Cells per string 2 Strings per site COST: US$5,787.50 3. SolSite Lite IP54 Outdoor Cabinet with the following: a. Fan cooling b. GEM3 & GT - generator monitoring system and generator management c. 48DC-to-24DC Converter (for Fans) d. PMM Power Management e. SPD & ATS Auto Transfer Switch f. Full remote monitoring - Batteries, fuel, BTS load etc g. Space for 4x2400W rectifier system COST: US$8,125.00 4. 19" rectifier rack fitted with: Hybrid controller, 6 rectifier Positions, 4x2400W rectifiers - system integrated within the battery cabinet COST: US$ 4,598.00 5. YXP20RSC - 20kVA diesel generator with an outdoor enclosure COST: US$13,860.70

RESULTS: HARDWARE ONLY a. CAPEX INVESTMENT OF US$42,113.20 FOB Basis

Fig.4 below shows the site configuration

 Fig.5 Location of Site:

SolSite (Solar+Hybrid) Investment & Performance Data:

Table 1 shows the site performance:

77% reduction in Generator runtime. Table 2 shows the CAPEX investment, OPEX costs and the payback period of the investment for the upgrade to a SolSite.

OPEX & CAPEX Benefits:

- - - - CAPEX investment of US$63,363 yields a 77% OPEX reduction, (US$224,087 saving over 5 years per site installed). Increased life of generators from 3 years to 5 years Reduced maintenance cost on generators by 50+% Payback of 17 months

Hardware prescribed:
1. 2. 3. SolSite Power Cabinet: A state of the art outdoor power cabinet that boasts the highest site and power monitoring systems in the market. This power cabinet offers remote monitoring as standard, grid & off-grid management, auto transfer switches, generator control and hybrid management, Fuel monitoring, Site load, battery monitoring (DoD, Temp, rate of discharge, cycles etc) and rectifiers. Each cabinet is installed with cooling systems to maintain an ambient temperature of between 25-30C to ensure maximum life from batteries, rectifiers and monitoring hardware. The cabinet is also designed to be fully customisable to fit numerous applications both off-grid and on-grid. The remote monitoring is also interchangeable to add or remove various measurement parameters depending on site and client requirements. SolSite PV Panels: Deep Cycle Batteries:

4. YXP20RSC - 16kVA AC Diesel generator:

Based on the info gathered CPS prescribed a 16kVA diesel generator for the following reasons: a. Estimated site load of 1440 - 1750 Watts

 b. Generators must be rated based on site conditions. The following act as a De-Rating Factor on the generator: i. Site Max. Temperature ii. Altitude iii. Site conditions i.e. Desert, Humidity, Jungle etc In this case the genset has a De-Rating Factor of 9% - meaning the genset has capacity of 14kW.

c.

Clean Power Systems Conclusions:

Based on the findings outlined above, CPS further simplifies the findings in the following ways: 1. Given: Off-grid BTS sites running on diesel generators (existing or planned) are prime and viable candidates for green power implementation, therefore any operator with given sites should consider clean energy solutions. 2. Given: Delivered Diesel Price per Litre is the accurate metric when evaluating the business case, therefore operators must assume a factor (suggested 20-30%) 3. Given: Solar, Wind and Battery Cycling are business-case viable today, therefore, they should be the primary considerations for operators who require a proven and viable solution. 4. Given: Typical industry ROI period is 3-5 years; therefore any ROI solution that is less than 3 years is leading the industry 5. Given: CAPEX is an issue for operators (budgets, expansion plans) therefore solutions that minimize CAPEX or eliminate it altogether are more favourable to operators. Financing & leasing options should be noted. 6. Given: Energy Planning & Green Solutions are new territory for operators, therefore, ongoing education, access to information, resources and tools is necessary to facilitate widespread implementation of clean power systems.