Kalahari Grid Energy — Appendices

Supporting appendices - the full 12-year portfolio model, the bankable-path model, the assumptions register, the downside scenario, the sources and the glossary and abbreviations underpinning the Kalahari Grid business plan and financial model.

Kalahari Grid Energy Business PlanSection 14 › Appendices

Section 14 · Business Plan

Appendices

Supporting appendices – the full 12-year portfolio model, the bankable-path model, the assumptions register, the downside scenario, the sources and the glossary and abbreviations underpinning the Kalahari Grid business plan and financial model.

Appendix A — Full 12-Year Portfolio Model

Revenue, EBITDA and capacity

  ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’34 ’35 ’36 ’37
Operational GW (avg) 0.30 1.05 1.95 2.85 3.75 4.60 5.00 5.00 5.00 5.00 5.00
Revenue ($m) 37 129 240 351 462 567 616 616 616 616 616
EBITDA ($m) 23 85 166 246 328 408 444 444 444 444 444
Margin % 62 66 69 70 71 72 72 72 72 72 72
Depreciation ($m) (27) (66) (106) (146) (186) (221) (221) (221) (221) (221) (221)
Interest ($m) (30) (74) (117) (157) (195) (225) (214) (200) (186) (173) (159)
NPAT ($m) (33) (55) (57) (57) (52) (38) 9 22 35 48 60

Cash flow and financing ($m)

  ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’34 ’35 ’36 ’37
Construction capex (950) (1,050) (1,000) (900) (700)
Debt draws 394 592 592 592 592 526
Equity draws 242 363 363 363 363 322
Debt service (30) (96) (172) (245) (315) (378) (396) (383) (369) (355) (341)
Debt balance 394 964 1,501 2,005 2,476 2,848 2,665 2,483 2,300 2,118 1,935
DSCR (x) 0.70 0.83 0.93 0.98 1.02 1.06 1.11 1.16 1.20 1.24 1.29

Appendix B — Bankable-Path Model ($0.070/kWh)

The reconciliation model at a blended $0.070/kWh, reflecting a
corporate-PPA- and wheeling-weighted offtake mix. This is the structure
the Company targets to reach infrastructure-grade returns and a bankable
DSCR.

  ’27 ’28 ’29 ’30 ’31 ’32 ’33 ’34 ’35 ’36 ’37
Revenue ($m) 47 165 306 447 588 721 784 784 784 784 784
EBITDA ($m) 29 109 211 313 418 519 565 565 565 565 565
DSCR (x) 0.89 1.06 1.18 1.24 1.30 1.35 1.42 1.48 1.53 1.59 1.65
Metric Base $0.055/kWh Bankable $0.070/kWh
Steady-state revenue ($m) 616 784
Steady-state EBITDA ($m) 444 565
Peak DSCR (x) 1.29 1.65
Portfolio equity IRR (%) 7.1 15.3

Appendix C — Assumptions Register

Assumptions marked ◆ are sponsor anchors preserved exactly; all
others are analyst-derived.

# Assumption Value Basis
1 Portfolio mix ◆ 2.8 GW solar / 1.7 GW wind / 0.5 GW BESS Sponsor
2 Total capex ◆ $5.3bn ($0.75m/MW solar, $1.3m/MW wind, $0.6m/MWh BESS) Sponsor
3 Blended tariff ◆ $0.055/kWh Sponsor; bankability tested §7.6
4 Steady-state revenue ◆ $616m Sponsor; 11.2 TWh × $55/MWh
5 Steady-state EBITDA ◆ $444m (72% margin) Sponsor
6 Portfolio capacity factor ~25.6% blended Derived from 11.2 TWh / 5 GW
7 Build-out phasing 1.5 / 2.0 / 1.5 GW (2026–32) Sponsor phases; COD-lagged
8 Gearing (bankable case) 62% debt / 38% equity Analyst — 75% not serviceable §7.1
9 Debt rate (USD) 7.5% Analyst; DFI/commercial blend
10 Debt amortisation 18-year, against 20-yr PPAs Analyst
11 Asset life (depreciation) 24-yr blended (BESS 12-yr) Analyst
12 Corporate tax 27% + s20 loss carry-forward Income Tax Act
13 Working capital 6% of revenue PPA receivables ~45 days
14 Exit multiple 11x EV/EBITDA (2037) Contracted renewables 10–12x
15 Bankable-path tariff $0.070/kWh Analyst; C&I/wheeling-weighted mix
16 CO₂ factor ~1.6 Mt/GW/yr avoided SA grid emissions factor

Appendix D — Downside Scenario

The downside combines sustained grid curtailment with a tariff
shortfall — the two correlated risks that dominate this investment.
Revenue is reduced 30% against base throughout (curtailment plus weaker
offtake pricing), compressing EBITDA through operating leverage.

$m ’28 ’30 ’32 ’33 ’35 ’37
Revenue (−30%) 91 246 397 431 431 431
EBITDA 53 152 253 275 275 275
Debt service (96) (245) (378) (396) (369) (341)
DSCR (x) 0.55 0.62 0.67 0.69 0.75 0.81
Downside reading

In the downside the portfolio cannot service its debt from operating
cash through most of the build and early operating years — DSCR sits
well below 1.0x — and equity value depends entirely on the eventual exit
and on lender forbearance or restructuring. This is the scenario that a
75%-geared structure at $0.055/kWh effectively resembles even in the
base case, and it is why the plan insists on lower gearing, a
corporate-PPA-weighted tariff, DFI concessional support and a rigorous
grid-first close discipline. It is the case against which lenders should
size the DSRA, completion support and equity cushion.

Appendix E — Sources

  • DMRE / DEE & IPP Office — REIPPPP Bid Window 7: solar 8.5 GW
    bids vs 1.8 GW allocation; wind zero awards; 20-year PPAs; 24-month
    build requirement
  • IPP Office / ESI-Africa / Green Building Africa — grid capacity
    as binding constraint; BW6–7 wind outcomes; BESIPPPP BW2 615 MW;
    Independent Transmission Projects programme (2025)
  • GreenCape Market Intelligence Report 2025 & Mordor
    Intelligence — installed solar ~8 GW (2025) to 14–17 GW by 2030–31;
    Eskom ~R100bn grid upgrade need; 60–70% curtailment/queue exposure; ~20%
    Northern Cape corridor output loss
  • Mordor / market reporting — BW7 solar ~R0.60/kWh;
    C&I/wheeling PPAs; recent corporate PPAs (Sibanye-Stillwater 420 MW,
    Teraco 120 MW, Scatec Kenhardt 540 MW solar-plus-storage)
  • REIPPPP programme data — R256bn private investment; 7,300+ MW
    awarded; standardised PPA/IA/GFSA/Direct Agreement; no awarded project
    has failed
  • Sponsor brief — 5 GW portfolio, $5.3bn capex, $0.055/kWh, 75:25
    target structure (tested and re-derived herein)

Appendix F — Glossary & Abbreviations

Term Definition
BESS Battery Energy Storage System — stores energy for shifting, firming and ancillary services
BESIPPPP Battery Energy Storage IPP Procurement Programme
C&I Commercial & Industrial (offtakers) — mining, industrial and data-centre power buyers
CEL Cost Estimate Letter — first stage of the NTCSA grid-connection process
COD Commercial Operation Date — when a project begins generating revenue
Curtailment Forced reduction of output when the grid cannot absorb generation
DFI Development Finance Institution (e.g. IFC, DBSA, AfDB)
DSCR Debt-Service Cover Ratio — cash available for debt service ÷ debt service
DSRA Debt-Service Reserve Account — reserve funding future debt service
EPC Engineering, Procurement & Construction (turnkey contractor)
GFSA Government Framework Support Agreement — backs REIPPPP offtaker obligations
IA Implementation Agreement — REIPPPP agreement with government
IPP Independent Power Producer
IRP Integrated Resource Plan — South Africa’s electricity capacity plan
ITP Independent Transmission Projects — private transmission procurement (2025)
LLCR Loan Life Cover Ratio
NTCSA National Transmission Company South Africa — grid operator
PPA Power Purchase Agreement — long-term electricity offtake contract
REIPPPP Renewable Energy IPP Procurement Programme
SPV Special Purpose Vehicle — ring-fenced project company
Wheeling Transmitting power over the grid from generator to an off-site offtaker

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Kalahari Grid Energy (Pty) Ltd.