neo viridis renewable power partner

Renewable Power Initiative 2013Dustin Crockett | Neo Viridis Energy, LLC

Renewable Business OverviewSolar and Wind Projects

Americas Scope of Opportunity

Product representation and market development in North and South America for wind and solar technology Specific wind technology – provide marketing material and case

studies Specific solar technology – provide marketing material and case

studies Develop(ed) client and project relationship in North and South

America Financial funding to supply technology in North and South America PPA or Lease development funding in U.S. or financial partner

Americas for Solar Financial partner for planned expansion for Wind

Extended offering Americas partners project development, project management,

permitting, and EPC design and oversight offerings, where applicable

Partners EPC design, and experience construction installation workforce, where applicable

Note: All parties have to have NDA and CA prior to engaging project details and service offerings.

Client Project

Project/Deal Development

& Management

Partner Funding

Partner Technology

Provider

Partner Engineering,

where applicable

Partner Contracting ,

where applicable

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Stakeholder Structure

Partne

r(s) Wind & Solar Provider Technology &

Engineering

Financial Institution Funding for Technology or Project

EPC or EPC Support

Engineering Design

Experienced Installation Workforce

Neo Viridis

Wind & Solar Developer

Project Development

End‐User/Utility

Strategic Relationships

Government Policy & Regulations

Corporate, Public & Legal

Project Management

Country Experience

Project Development & Management Experience

Stakeholder Value Proposition Financing will strengthen deals and projects in North and South America, so that Partnering technology and

resources will be utilized on these projects Wind and Solar developers will advance projects that are slowed or stopped by financial hurdles North and South American utilities and countries will achieve their planned renewable goals in a timely

manner Other opportunities for technology in these countries for future renewable, water, and infrastructure projects

©2013, NEO VIRIDIS ENERGY, LLC. PRIVILEGED AND CONFIDENTIAL INFORMATION ONLY. 4

Teaming / Partnerships

Developer Land Purchasing / Leasing Power Purchase Negotiations Interconnection Processes Renewable Program Applications &

Contracting Environment Studies Property Surveying / Zoning EPC Solar Manufactures Utilities / End‐User

“We bring the parties together to for the best available projects.“

5©2013, NEO VIRIDIS ENERGY, LLC. PRIVILEGED AND CONFIDENTIAL INFORMATION ONLY.

Our Value

North and South America representation and relationships Increase hit rate from traditional marketing to deal/project development Develop market presence Remove competition in market place Capacity to vet opportunities to minimize lost effort Streamline project schedule and reduce project risk

Energy Security & Reliability

Energy Equity (Accessibility

& Affordability)

Dependable Partners

Environmental Sustainability (Low Carbon

Source)


Typical Initial Steps to a Partnership

Market Representation Only

Deliver Projects at Any Phase

Americas Arm of the Company

Project Development Only

Identify best available projects

Technology financed projects development for piece of project

Market & Project Development & Representation

As presented above, but

MNDA & CAInformation / Proposition Discussions

Binding Letter of Intent

Initial Project Risk

IdentificationContract

Proposal Phase Compensated Phase


Project Risk Appetite

Probability of Risk Occurring

Probability of Impact

Risk Event Drivers Impact Drivers

Impact LossesRisk Event

All parties need to examine their Risk Appetite before determining area they want to provide services and technology.


Typical Compensation Model

Product Representation Project Based

Project Development Project Based

Compensation scheme aligns both party’s goals and objectives which can only lead to higher probability of timely success. Our executives and business partners have held senior operational positions in some of the largest energy and water companies in the world. Excela is committed on representing our clients and on providing advisory services with the highest level of professionalism

©2013, NEO VIRIDIS ENERGY, LLC. PRIVILEGED AND CONFIDENTIAL INFORMATION ONLY.

Known Opportunities

Region Solar Projects Solar (MW) Wind Projects Wind (MW)

Europe 4 127 2 66Eastern Europe 4 102 2 210South America 3 500 0 0

Current Known Network Opportunities (no advertising or offering presented)


South America Market / Opportunities

Chile

Wind

Wind is a viable and promising renewable energy source for Chile. There are currently over 45

wind projects currently under development or being considered, and 126 MW of wind projects

under construction in addition to the 172 MW that is in current use. The Global Wind Energy

Council estimates that there is 40 GW, or 40,000 MW of wind potential in Chile

Solar

Solar power in Chile has the potential of producing all of the electricity used in Chile. Northern

Chile has one of the highest solar incidence in the world. In 2012, the 1 MW Calama Solar 3

became the first solar power plant in the country. Solar Chile is planning on building utility

scale solar power plants in the Atacama Desert. A 30.24 MW plant is planned. A 100 MW

photovoltaic plant is planned by SunEdison and CAP. Abengoa Solar is building a parabolic

trough concentrated solar power plant there. 3,100 MW of solar projects have been approved,

and an additional 908 MW are under review.

Colombia

Wind

The wind regime in Colombia is among the best in South America. Offshore regions of the

northern part of Colombia, such as in the Guajira Department, have been classified with class

7 winds (over 10 meters per second (m/s)). The only other region in Latin America with such

high wind power classification is the Patagonia region of Chile and Argentina. Colombia has

an estimated theoretical wind power potential of 21 GW just in the Guajira Department—

enough to generate sufficient power to meet the national demand almost twice over.

However, the country only has an installed capacity of 19.5 MW of wind energy, tapping only

0.4% of its theoretical wind potential. This capacity is concentrated in a single project, the

Jepírachi Wind Project, developed by Empresas Públicas de Medellín (EPM) under a Carbon

Finance mechanism arranged by the World Bank. There are several projects under

consideration, including a 200 MW project in Ipapure,

Solar

Colombia has significant solar power resources because of its location in the equatorial zone,

but the country sits in a complex region of the Andes where climatic conditions vary. The daily

average radiation is 4.5 kWh/m2, and the area with the best solar resource is the Guajira

Peninsula, with 6 kWh/m2 of radiation. Of the 6 MW of solar power installed in Colombia

(equivalent to about 78,000 average‐size solar panels), 57 percent is distributed in rural

applications and 43 percent in communication towers and road signaling.

Brazil

Wind

Brazil has 148 wind farms with an installed capacity of 3.6 gigawatts, according to the Brazilian

wind power association, known as Abeeolica. The group forecasts that by 2017, the total will

reach 8.7 gigawatts. In two 2011 auctions, Rio Bravo won contracts for its wind farms at an

average rate of 120 reais ($52) a megawatt‐hour. That compares with an average of about 135

reais a megawatt‐hour for small hydropower and biomass plants in the most recent

government power auction, in December, according to the energy research center, known as

EPE. Wind projects in that auction averaged about 119 reais.

Solar

The total installed photovoltaic power capacity in Brazil is estimated to be between 12 and 15

MWp, of which 50% is for telecommunications systems and 50% for rural energy systems. It is

less than 0.01% of the energy in Brazil. Brazil has one of the highest solar incidence in the

world.

Panama

Wind

Goldwind closed financing via a $71 million loan for what will become Panama's first ever wind

farm in August 2013. The company is to supply 22 2.5MW turbines to the Penonome project,

which is located in Cocle province on the country's southern coast. The 55MW is the first

phase of a plan to build the project up to 220MW by 2014. The project is to be closed via a $71

million 10‐year facility from Banco Internacional de Costa Rica (BiCSA) and Banco Espirito

Santo de Investimento. The full $440‐million project will supply some 7% of Panama’s

electricity needs. 16 Additional Wind Farms are expected to be developed by 2015.

Solar

Greenwood Biosar, a joint venture between Greenwood Energy and Biosar completed design

and construction of a 2.4‐megawatt (MW) solar PV project in Panama’s Herrera Province for

Enel Green Power Panama in early 2014. The solar array is located nine miles from the city of

Chitre, is Panama’s first utility‐scale solar PV installation, and can provide 30 percent of the

surrounding area’s electricity demand – equivalent to 2,600 homes. The project has now been

interconnected to the La Empresa de Generacion Electricita (EGESA) grid network.

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Americas Renewables Challenges

Unprecedented uncertainty in North and South American energy sector. As energy demands continue to increase energy security, reliability, affordability, quality (clean/green) and equitability is fundamental to economic and human development. The greatest challenges in energy are: Energy prices and volatility Climate change (future of CO2 and pricing) Access to Capital Energy efficiency Infrastructure / interconnects

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Renewable Energy Markets Pricing

In 2013, the Americas is Solar PV is estimated at 8 GW and projected to be between 12.5‐19 GW

by 2017 according to EPIA

U.S. Pricing

Solar

Wind

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SolarUnited States

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Standard U.S. Project Development Phases

BEPTC™ Baseline Economics Policy Technology Consensus SROPTTC™ Site Resource Off‐take Permits Technology Team Capital

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Current Deal Drivers ‐ Solar

Pre‐Construction Phase, capital commitment for sales and design costs. Additionally: Identify proper building site with a creditworthy solar customer Research applicable state and federal incentive programs and understanding which

incentives the project is qualified for Design a system that generates enough energy (and therefore, revenue) to produce a return

on investment (ROI) Set up the Special Project Entity (“SPE”), if applicable; and Secure vendor financing for the installation’s components, such as PV panels, inverters and

racking hardware. Construction Phase

The solar project developer will typically utilize a third‐party engineering, procurement and construction service (“EPC”) to install the system.

The developer needs capital to pay the EPC, which typically comes from a construction loan or equity investments.

Post‐Interconnection Following completion of construction, a utility company inspection will generally occur

within one month, after which, provided the system passes inspection and the application documentation is approved, the solar project receives permission to operate and connect to the power grid. This step is typically referred to as “Interconnection.”

Solar power system begins commercial operation and the solar customer begins making payments to the SPE under the lease or under a power purchase agreement (“PPA”) pursuant to which the solar customer purchases the power output of the solar project.

Alternatively, if a feed‐in tariff program is offered by the local electric utility, the SPE will lease the rooftop space from the building owner and enter into a PPA directly with the utility.

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Solar Project Motivation

What we call “project motivation” is created through strong fundamentals and provides the source of commitment and clarity of purpose that are necessary to both generate the resources required to develop a project and the perseverance required to make it happen. Without properly establishing project motivation, the necessary resources (funding and skilled human resources) will not be brought to bear. A fundamental, but common, mistake in early‐stage project development is to jump to technical or financial details prior to building consensus among project stakeholders and establishing project motivation that is sufficient to maintain a sustained effort backed by common purpose. Scheduled reduction in Investment Tax Credit (ITC) from 30% to 10% on January 1, 2017 Minnesota’s 2013 Energy Omnibus Bill requires 1.5% or all power to be from

solar or approximately 300MW by 2020

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U.S. Business & Industry Motivation ‐ Solar

State: Federal

Incentive Type: Corporate Tax Credit ‐‐ eligible systems placed in service on or before December 31, 2016**:

Eligible Renewable/Oth

er Technologies:

Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Municipal Solid Waste, CHP/Cogeneration, Solar Hybrid Lighting, Tidal Energy, Fuel Cells using Renewable Fuels, Microturbines, Geothermal Direct‐Use

Applicable Sectors:

Commercial, Industrial, Utility, Agricultural

Amount: 30% for solar, fuel cells, small wind*10% for geothermal, microturbines and CHP

Maximum Incentive:

Fuel cells: $1,500 per 0.5 kWMicroturbines: $200 per kWSmall wind turbines placed in service 10/4/08 ‐ 12/31/08: $4,000Small wind turbines placed in service after 12/31/08: no limitAll other eligible technologies: no limit

Eligible System Size:

Small wind turbines: 100 kW or lessFuel cells: 0.5 kW or greaterMicroturbines: 2 MW or lessCHP: 50 MW or less*

Equipment Requirements:

Fuel cells, microturbines and CHP systems must meet specific energy‐efficiency criteria

Authority 1: 26 USC § 48

Authority 2: Instructions for IRS Form 3468

Authority 3: IRS Form 3468

Authority 4:Date Enacted:Date Effective:

H.R. 8 (American Taxpayer Relief Act of 2012)01/02/201301/02/2013

Business Energy Investment Tax Credit (ITC)


U.S. PPA vs. Lease ‐ Solar

Third‐party financing of solar energy primarily occurs through two models: power purchase agreements (PPAs) and solar leases. PPA Model In the PPA model, an installer/developer builds a solar

energy system on a customer’s property at no cost. The solar energy system offsets the customer’s electric utility bill, and the developer sells the power generated to the customer at a fixed rate, typically lower than the local utility. At the end of the PPA contract term, property owners can extend the contract and even buy the solar energy system from the developer.

Lease Model In the lease model, a customer will sign a contract with

an installer/developer and pay for the solar energy system over a period of years or decades, rather than paying for the power produced. Solar leases can be structured so customers pay no up‐front costs, some of the system cost, or purchase the system before the end of the lease term. Similar leasing structures are commonly used in many other industries, including automobiles and office equipment.


Example: U.S. Duke Energy Needs ‐ Solar

Location: Continental US (exception Hawaii) Location Exclusions:Carolinas, Georgia, Duke Franchise Territories

(Duke Energy cannot be the offtake), and no U.S. Territories (Puerto Rico) Generation: PV Solar‐Thin, Poly or Mono, Fixed or Tracking Size:Greater than or equal to 20 MW (aggregated ok) Interconnection: Studies complete, IA underway or complete,

reasonable security requirements, if any Land:Under lease or sale option with sufficient size to support the MW

proposed Ownership:Duke to own 100% just prior to COD; if the project has scale

then this could be modified to something less than 100% Permitted: Fully permitted or very close to being permitted Tax Utilization: Duke ITC Development Expense:Developer responsibility with the possible

exception of security requirements Duke is offering developers an opportunity to “partner” in pursuing RFP bids

and or bilateral PPA discussions regarding their projects. The developer would have the benefit of Duke’s strong reputation, a $118+ billion dollar balance sheet, no financing, credit support, a very strong tax appetite (no tax equity required) and a reasonable cost of capital. In turn, Duke Energy would have the benefit of bidding with developer, in strong PV Solar project to quality power offtakes and completing a solar transaction on a win‐win basis.

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WindProducts

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Wind Product Overview

Objectives Identify overall project objectives:

Technical objectives Schedule objectives Cost objectives Special objectives

Non‐goals

Success Factor Identify elements that are key to the success of the

project, such as: Satisfied clients or stakeholders Met project objectives Completed within budget (lump sum or turnkey

offerings?) Delivered on time

Market differentiators

Deliverables What products or services will be offered to

projects? How will they be delivered Typical client requirements

Implementation Capabilities Tasks/activities Procedures Tools/technology Project change control process

Risk Management Process Process

Quality Management & Performance Measures Product quality management Product quality background Defect resolution

Cost Competitive cost analysis

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