Kalahari Grid Energy Business Plan › Section 13 › Conclusion

Kalahari Grid Energy is positioned to build a 5 GW utility-scale
renewable portfolio into one of the world’s most supply-constrained and
structurally attractive power markets. The demand case is beyond
question: chronic generation deficit, an ageing coal fleet, a
corporate-decarbonisation wave, and the lowest-cost new-build economics
of solar, wind and storage. The strategy — scale-first clustering,
grid-corridor control and hybrid integration — is the right one, and it
is the approach that has allowed the market’s leading IPPs to build
multi-gigawatt pipelines.

The independent analysis is candid about what determines success. It
preserves the sponsor’s portfolio, capex and steady-state economics
exactly, but reaches three decision-critical conclusions. First, grid
capacity — not demand or capital — is the binding constraint: wind won
zero REIPPPP capacity in the last two windows and most prospective
projects face curtailment or connection queues, so the build-out is
gated by grid access above all else. Second, the tariff does not support
the gearing: at a blended $0.055/kWh the portfolio is, at best,
marginally bankable, with a DSCR that never reaches 1.30x under prudent
gearing and an equity IRR near 7%. Third, and constructively, the
structure becomes a genuine mid-teens-return, comfortably-covered
infrastructure investment at a blended tariff around $0.070/kWh —
achievable through a corporate-PPA- and wheeling-weighted offtake mix —
and requires roughly $2.0bn of equity, not the $1.33bn a 75:25 split
implies.

For IFC, DBSA, AfDB and climate-finance investors, the project
delivers squarely on climate and infrastructure mandates — some 8 Mt of
CO₂ avoided annually, thousands of jobs, and a material contribution to
the energy transition — and the return gap at the base-case tariff is
precisely the kind of gap that concessional and blended finance exist to
bridge. For infrastructure-equity investors, the opportunity is a scale
platform in a scarcity-priced market, contingent on two things the plan
makes central: securing grid capacity, and originating premium offtake.
Those, not the capex or the technology, are the questions on which this
investment turns, and they are disclosed here so they can be
underwritten deliberately rather than discovered late. The Company
invites engagement on the grid-and-offtake-staged funding framework set
out in Sections 7 and 8.

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.