Clean Energy Financing: Where’s the Money? Growing Chicago’s Green Energy Economy

University Of Chicago Gleacher CenterMay 11, 2010

Michael EckhartPresident

American Council On Renewable Energy (ACORE)www.acore.org

Contents

• ACORE• Investment and Finance Trends• Federal policy • Issues and Outlook

ACORE’s 750 Organizational MembersAssembling All the Players Necessary to

Make Renewable Energy Successful in the U.S.

ACORE’s Board of DirectorsCo-Chairs:

John Geesman, Former Commissioner, California Energy

Commission

Dan Reicher, Director, Climate Change and Energy Initiatives,

Google

Directors:

Dan Adler, President, California Clean Energy Fund

Thomas Casten, Chairman, Recycled Energy Development

Aimee Christensen, consultant, Virgin Atlantic

Michael Eckhart, President, ACORE

Ira Ehrenpreis, General Partner, Technology Partners

Roger Feldman, Andrews Kurth LLC

Nancy Floyd, Managing Director, Nth Power

Bill Holmberg, Chairman, Biomass Coordinating Council

Mel Jones, President, Sterling Planet

Howard Learner, ED, Environmental Law & Policy Center

Jim McDermott, Managing Partner, US Renewables Group

Bruce Pasternack, Venture Partner, CMEA Ventures

Judy Siegel, President, Energy & Security Group

Michael Ware, Managing Director, Good Energies

Pat Wood, Principal, Wood Resources LLC and former Chairman,

FERC

ACORE Board of Directors, September 2006

Policy Conference

“Phase II of Renewable Energy in America”

Cannon Caucus Room of the U.S. House of RepresentativesRecent: November 20, 2009

RETECHRenewable Energy Technology

Conference & ExhibitionRecent: February 3-5, 2010 in Washington DC

ACORE Leadership Council

• Chairmen

• CEO’s

• Presidents

• Managing Directors

• Managing Partners

• Government officials

• University Presidents

• Association Directors

• Nonprofit leaders

• Other leaders

2008 Leadership Dinner in the Library of Congress

Mission: to bring the nation’s renewable energy leaders together to collaborate and lead the success of renewable energy in America

Finance ConferenceRenewable Energy Finance Forum–Wall Street

Produced with Euromoney at Waldorf-Astoria Hotel in New York City June 29-30, 2010

Also Produced as “REFF-West” in San Francisco, September 29-30, 2010

US PREFU.S. Partnership for Renewable Energy

FinanceManaged by ACORE

Mission of US PREF:

• An experts group• Transaction professionals• Educate public officials• Explain the impacts of policy

Activities:

• Meetings in Washington• White papers• Special initiatives

Law Firms:

• Skadden, Arps• Troutman Sanders

Major Banks:• Bank of America Merrill Lynch• Citi • Deutsche Bank• GE Energy Financial Services• Morgan Stanley

Equity Investors:

• Hudson Clean Energy Partners• Madison Dearborn Partners• US Renewables Group• VantagePoint Venture Partners

Other Major Players:

• Google• Green Order• PWC• SolarCity

U.S. VC/PE Investment in Renewable Energy

…but up again in 2010

Source: Bloomberg / New Energy Finance

Public Market Investment in Renewable Energy

…but looking at a pipeline of IPOs in 2010

Source: Bloomberg / New Energy Finance

?

M&A Activity in the U.S.But rapidly increasing in 2010…

Source: Bloomberg / New Energy Finance

Renewable Energy Asset Financing Activity in the U.S.

And getting even more difficult in 2010…

Source: Bloomberg / New Energy Finance

Project Acquisition Activity in the U.S.And continuing to increase in 2010…

Source: Bloomberg / New Energy Finance

U.S. Federal Policy for Renewable Energy

1. In-Place Policy:– Federal tax incentives: PTC, ITC and MACRS

2. Temporary Federal Stimulus:– Cash grants in lieu of ITC and PTC– Advanced manufacturing tax credit– Loan guarantees– RD&D funding

3. Proposed initiatives:– National RES– CEDA/Green Bank– Transmission

Stimulus Implementation

DOE’s Loan Guarantee Program• 1703 Innovative Loan Guarantee- $8.5 billion (Energy Policy Act 2005)• 1705 Temporary Loan Guarantee- $5.9 billion (Stimulus 2009)

]=

Date Recipient Amount Type of Project

7/2/09 Nordic Windpower $16 million Wind turbines assembly factory

7/2/09 Beacon Power $43 million Flywheel energy storage factory

9/4/09 Solyndra $535 million Innovative cylindrical PV panels

9/17/09 Ford Motor Company $5.9 billion Energy efficient models factory

9/22/09 Fisker Automotive $528.7 million Plug in hybrids

9/23/09 Tesla Motors $465 million Facility Model S sedan + battery packs

12/9/09 Red River Energy Prod $245 million Activated carbon (AC) facility

1/28/10 Nissan $1.4 billion Electric cars, battery packs

2/16/10 Georgia Power $8.33 billion 2 nuclear reactors

2/22/10 BrightSource Energy $1.37 billion 3 concentrated solar (CSP) power

3/5/10 First Wind- Kahuku $117 million 30 MW wind and battery storage

3/5/10 Sage Electrochromics $72 million SageGlass- energy saving window

Issues and Outlook

• Renewable energy has weathered the storm of 2008-2009

• Immediate Challenges:– Maintaining strong and growing demand for RE– Charting the post-Stimulus era – Framework for scaling to $100B/yr and 25% by 2025– Competing with China

• National policy: are we still stuck in “more of everything” or can we really make the shift to sustainable energy?

– Climate policy – Renewable energy policy– Energy efficiency policy– National security policy (oil reduction) – Environmental policy (coal reduction) – Economic policy (green business and jobs)

• State-Level policy: can the states continue to lead? Yes

Thank You

Vote Solar and

Vote Often

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