wind energy hamburg latin american forum september 25 th, 2014 dr. winfried weigel...

WIND ENERGY HAMBURG

Latin American Forum

September 25th, 2014

Dr. Winfried Weigel [email protected]

Cr. Gustavo [email protected]

CleanTechCapital

CleanTechCapital

Wind Energy Projects

Latin America Overview

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LATIN AMERICA: Investments in Renewable Energy

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Brazil evolution in USD bn

Source: Ren21 / Bloomberg New Energy Finance / UNEP

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LATAM evolution in USD bn

Source: Ren21 / Bloomberg New Energy Finance / UNEP

LATIN AMERICA: Investments in Renewable Energy

SOUTH AMERICA: Wind Energy

Wind power capacity evolution (%)

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South America vs World

South America wind power capacity growing percentage in comparisonwith rest of world

Source: www.thewindpower.net

LATIN AMERICA: Wind Energy

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Wind power 2013 MWBrasil 3.399Mexico 1992Chile 335Argentina 217Costa rica 148Nicaragua 142Honduras 102Uruguay 61Venezuela 30Colombia 20Ecuador 19Cuba 12Peru 1


LATIN AMERICA: Wind Energy

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Wind power 2013 MWBrasil 3.399Mexico 1992Chile 335Argentina 217Costa rica 148Nicaragua 142Honduras 102Uruguay 61Venezuela 30Colombia 20Ecuador 19Cuba 12Peru 1


CleanTechCapital


Financing & Tax Benefits

Case study: “URUGUAY”

URUGUAY

• Strategic location

• Regional commercial / logistic hub

• Among MERCOSUR highest GDP cities

• Political and social stability

• Favorable business climate

• Investment grade (S&P, Moody´s, Fitch)

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URUGUAY

• Renewable energy: 50% matrix

• Public-private partnership law

• Investment promotion law

• Local financial vehicles

• PPA with UTE (Public Electric Company)

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URUGUAY: Advantages for Renewable Energy Investment Projects

• Government Objective: 50% matrix

• Project Financing Local Vehicles

• Tax Exemptions by Promotion Law

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EQUITYFINANCING

DEBTFINANCING

URUGUAY: Project Financing Local Vehicles

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BanksMultilateral

Credit Agencies

Local IPO

(Bonds)

(Financial Trusts)

Local IPO

(Stocks)Tax Incentives!!

Tax Incentives!!

Tax Incentives

Equity Tax (1,5%)Partial Exemption for five fiscal years of the equity tax for companies making public subscription of shares on the stock exchange.

Income Tax (25%)(Companies)

Exemption for income derived from the transfer or sale of public securities with quotation in the country, as well as shares, bonds and securities issued by financial trusts.

Income Tax (0% - 25%)(Individuals)

Exemption for income derived from the sale of shares, bonds and securities issued by financial trusts, with the same conditions and exceptions as in the case of companies.

Value Added Tax (22%) Exemption on the exchange transaction fees

URUGUAY: Project Financing Local Vehicles / Tax Incentives

Local IPO

(Stocks)

Local IPO

(Bonds)

(Financial Trusts)

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The project must accomplish with objectives and indicators required

URUGUAY: Tax Exemptions / Investment Promotion Law

Regulatory Framework

• Law N° 16.906/1998 - Investment Promotion Law (General Regime)

• Decree N° 02/2012 - Investment Promotion Regulation (General Regime)

• Decree N° 354/2009 - Investment Promotion Regulation (Power Generation)

Renewable Energy Investment Projects in Uruguay

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Promotion of investment in the country, without distinction of local or foreign investors

OBJECTIVE INDICATOR POINTS WEIGHTING

Employment generation Score according to size of the investment,

quantity and quality of employment generated. UCE / √ EIUI

0 to 10 30%

Decentralization

According to the index of human development (IHD) in Montevideo and

according to the poverty index Department (PID) if it is in the rest of the country.

0 to 10 15%

Exports IncreaseScore according to size of investment and

export growth. ExportsUSD / [0,2 x (IEUSD)^⅔]

0 to 10 15%

Use of clean technologies1 point each 5% of the investment in Clean

Technologies over the total investedor or

Increased research and development and innovation

1 point each 5% investment in R&D over the total

Sectorial Indicator According to the evaluator Ministry 0 to 10 20%

0 to 10 20%

UCE = Employment UnitIEUI= Eligible Investment in millions of Indexed Units IEUSD= Eligible Investment in millions of USD

General Regime Dec. N° 02/2012


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Tax Benefits

Income Tax (25%)tax exemption for an amount and term as a result of the magnitude of investment and the score achieved by the project

Equity Tax (1,5%) exemption for property, plant and equipment throughout the useful life and civil works for 8 or 10 years

Import Tax ( %) exemption for imported property, plant and equipment which are noncompetitive with national industry

Value Added Tax (22%) credit refund regime for local materials and services acquired for civil works


General Regime Dec. N° 02/2012

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Promoted Activities

Power Generation Dec. N° 354/2009


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Power generation from nontraditional renewable sources.

Services provided by Energy Service Companies (ESCOs).

Prospecting and exploration for minerals Class I.

Conversion of equipment and / or incorporation of processes for the efficient use of energy.

Conversion of solar energy into thermal energy.

Domestic manufacture of machinery and equipment bound for the above activities.

Solar Thermal /

Photovoltaic Energy

Hydropower (Small)

Wind Energy

Geothermal Energy

Tidal / Wave Power

Biomass



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Power Generation From Nontraditional Renewable Sources



Tax Benefits% of the Fiscal Net Income originated in

the promoted activity

Income Tax

• 90% from July 1, 2009 until December 31, 2017 (final rate 2.5%).

• 60% from January 1, 2018 until December 31, 2020 (final rate 10%).

• 40% from January 1, 2021 until December 31, 2023 (final rate 15%).

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PV Farms

Wind Farms

Dec. N°02/2012

354/2009


Big Projects(Renewables are 100%

of the assets of the project)

PV Roofs

Windmill

Combined

Energy to sell to public electricity company

Energy for private industry use

Dec. N°02/2012

Small Projects(Renewables are +5% of the assets of the project)

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Simulation Model to be prepared case by case….

Renewable Energy Investment Projects in Uruguay / Tax Benefits

URUGUAY: Wind Energy Farms

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Source: DNE

Year MW2006 02007 12008 292009 292010 392011 562012 562013 61

2014* 303* Estimate ago-14

Production Capacity

URUGUAY: Wind Energy

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Source: DNE

Operative Farms 12 Farms / 303 MW

Farms in construction 3 Farms / 88 MW

Developing projects 20 Farms / 1.186 MW

URUGUAY: Wind Energy

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Ranking 1st wind power in relation with energy demand for year 2016

Wind Energy2016

1,200 MW

33% / energy demand

Source: DNE

CleanTechCapital


Company Profile

Brief Corporate Profile

• we are a global organization with operations in North America (US and Canada), South America and Europe (Western Europe and CEE) and a good network into Asia and the Middle East

• we have access and maintain relationships with most of the institutional investors (pension funds, family offices, investment funds, insurance companies) in the clean technology sector and have good understanding of their investment strategies

• we provide access to strategic partners, project developers, technical experts, financial institutions and are able to offer comprehensive project development, corporate development, corporate and project finance skills

• we provide first class execution in strategy implementation, mergers & acquisitions, corporate finance and selected capital markets assignments with a very hands-on approach.

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CLEANTECH CAPITAL can lead you doing business in the Latin America region

CLEANTECH CAPITAL is an independent privately-owned investment banking and advisory firm with a focus on the Clean Technology and Renewable Energy sector:

Mergers &Acquisitions

Privatisations

Investment Banking Services

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• Preparation of Decision

• Corporate Re-structuring / Governance

• Equity Story

• Prospectus

• Underwriting Process

• De-listing

• Capital Raising

• Project Financing

• Private Placement

• Public Offerings

• Rating Process

• Bank Loans

• Structured Finance

• Mezzanine

• Venture Capital/PE

• Preparation of Decision

• Re-structuring

• Corporate Governance

• Organization of Process

• Managing the Process

• Bidding Tactics

• Negotiations

• Emergency Planning

• Debt Analysis

• Business Planning

• Re-organization Plan

• Communication and Negotiation with Creditors

• Implementation

• Acquisitions

• Disposals, Spin-offs

• Mergers

• De-Mergers

• Public Takeovers

• Bid Defense

• Joint Ventures

• MBOs, MBIs

RestructuringsGoing Public /

PrivateFinancing

Contact

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Dr. Winfried Weigel

[email protected]

tel: +41 41 760 3173cell: +41 76 443 2001fax: +41 41 760 3174

EuropeNorth America

Geoff Marney

[email protected]

tel: +(1) 416.777.6672cell: +(1) 416.570.2950NYC: +(1) 646.350.7514

South America

Cr. Gustavo Weigel

[email protected]

tel: +598 2908 70 85cell: +598 99 618 514fax: +598 2908 70 85 201

Disclaimer

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The content of this presentation should be considered simply as a summary for informational purposes, under no circumstances it could be taken as a general investment advice or recommendations for making / not making a particular investment. This document is an internal working draft presentation. It is not necessarily updated and it was made to be used as a guide only by the staff of the firm. The information contained in it, comments, references to standards, criteria, fees, and disclosures should not be construed as an advice or personal opinion for a specific case. The information contained in this draft presentation should not be taken into account to make an investment decision or divestiture. Therefore, CleanTech Capital does not pour any recommendation in this regard and disclaims all liability for business decisions to be taken. This presentation has been prepared by CleanTech Capital and its contents may not be reproduced and / or distributed except with written consent.

wind energy hamburg latin american forum september 25 th, 2014 dr. winfried weigel...

Documents

uruguay slide

renewable energy slide

promotion of investment

tax benefits income

uruguay renewable energy

tax incentives equity

eligible investment

magnitude of investment