Presentation on Locally-Owned Wind Market Community Wind Community - - PowerPoint PPT Presentation

Presentation on Locally-Owned Wind Market

Community Wind Community Wind

What is Community Wind?

Locally owned, utility scale wind

Why is Community Wind important?

For the US to reach 20% wind, we need

Locally owned, utility scale wind

Typically smaller, varying from

2MW to 100MW

Single or multiple local owners

For the US to reach 20% wind, we need projects of all sizes

More participants = more stakeholders

involved

Single or multiple local owners Sell power to the grid or offset

end-use power consumption involved

Political power = stable, wind-friendly

policies Maximize value of wind for local

Maximize value of wind for local

communities OwnEnergy Community Wind - 3.4x impact on local job creation; 5.0x economic impact on the local region, relative to a corporate-owned development

(Kildegaard, A and Myers-Kuykindall, J: University of Minnesota, Morris)

Empowering the Future

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OwnEnergy Background OwnEnergy Background

Who We Are

• Better, cheaper, faster renewable energy development

company

What Makes Us Unique

Differentiated Business Model: company

• Focused on small to mid-size projects

(10 – 80 MW)

• Include local partners in project development and

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• Accelerates and simplifies development process
• Innovative process that emphasizes standardization
• Lower development risk via disciplined:
• project screening process
• wnership
• Industry leading team (50+ years) from:
• Goldman Sachs, AES, FPLE and GE

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• partner acquisition process
• Connects individuals with renewable power and creates

leading brand

Bottom Line

• We include local landowners, developers and

communities in an unprecedented way W d l h h l

• We develop higher-margin projects at a lower cost,

capturing low-hanging fruit in smaller opportunities

OwnEnergy

Empowering the Future

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Lessons Learned

Local ownership typically results in more control and a significantly

greater financial outcome for community members than a lease

Smaller, locally-owned projects can be developed faster with less

• pposition

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ll j t h f t i i t i t

Smaller projects have fewer transmission constraints Local developers have difficulty accessing project finance and proven

turbines without a pipeline and track record p p

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Community and Mid-Sized Wind Projects Community and Mid Sized Wind Projects

Community

Niche sectors will account for an increasing proportion of the US market as large-market growth moderates

2 700 3,000 MW) 9% 10% ion MW (left scale)

2,187 MW of new capacity 2008-

Community Wind

1 200 1,500 1,800 2,100 2,400 2,700 Community Wind (M 4% 5% 6% 7% 8% 9% ind Market Penetrati MW (left scale) Penetration (right scale)

2,187 MW of new capacity 2008 2011 (2,495 MW total in 2011)

Projection taken from updated forecast by Mark Bolinger; Lawrence Berkely National Labs

300 600 900 1,200 2007 2008 2009 2010 2011 Cumulative 0% 1% 2% 3% 4% Community Wi State + 10% USDA

8000 10000 12000

Mid-Sized (10-80 MW) Wind Projects Mid-Sized (10-80 MW) Wind Projects

2000 4000 6000 8000

Wind Projects

2007 market size according to AWEA. The mid-sized k t h 20% th l t fi

4,177 MW of new capacity 2008-2011 (9,915 MW total in 2011)

Wind Projects

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2006 2007 2008 2009 2010 2011 2012

market has grown 20% on average over the last five

• years. Projections based on OwnEnergy estimates

Landowner Rationale/ Community Benefits Landowner Rationale/ Community Benefits

30 MW Capacity 40% Net Capacity Factor 55 $ Power & REC's 2,313 $ Capital costs per MW After-Tax Cumulative Returns

6,500

After-Tax Cumulative Returns Equity

2,500 3,500 4,500 5,500 $000's Average annual after‐tax income, Equity case $325k Average annual after‐tax i L $195k

Lease Equity

(500) 500 1,500 ‐2.5 ‐2 ‐1.5 ‐1 ‐0.5 COD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Lease Equity

Operations Development

income, Lease case $195k Lease Equity

• Assume active role as local partner in

development of wind project

• Apply relevant business experience and

entrepreneurial nature

• Share resulting profits
• Optimize financial outcome from wind

development on their property

• Be involved in a business venture that:
• provides net positive impact on

environment

• contributes to energy independence

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contributes to energy independence

Community Wind – European Experience Community Wind European Experience

Approximately 80% of wind

power in Germany, Denmark, power in Germany, Denmark, Sweden and the UK are community owned

German Drivers:

Long term fixed tariffs

P i i id i

Priority grid connection Overall marketing scheme –

“Everyone can produce y p electricity”

Ease and availability for financing

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Current Domestic Policies for Community Wind

Production Tax Credit USDA Section 9006 grants USDA Section 9006 grants Community Based Energy Development

(C-BED)

State production tax credits targeted at

community wind

State investment tax credits State investment tax credits Standard offer pricing for wind QFs Met tower loan programs

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Additional Policies for Community Wind

Renewable Portfolio Standards

Carve-outs for locally-owned projects

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Creation of nation-wide RPS

Streamlined permitting & transmission process for locally-owned projects

Nationwide interpretation of 20MW FERC rule

Power off-take

Uniformity in PURPA pricing Standardized PPA Contracts Pre-established norms for calculating wind intermittency discount / capacity value

Increase Net Metering Capacity Access to capital for landowners to install met towers and pursue

p p development

Production Incentives

Long-term extension of PTC Long term extension of PTC Alternative cash incentive

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Why Community Wind in OK? Why Community Wind in OK?

Focus economic benefits in the

community

New economic growth engine Smaller projects can utilize

existing transmission existing transmission

Smaller projects can be built

faster

Local stakeholders facilitate

community support

S

ll j t b b ilt t

Smaller projects can be built to

serve local load

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Development Process Development Process

Engineering & Prospecting Evaluating Contracting Financing Building O+M

Phase I – Screening Phase II – Early Devl. Phase III – Late Devl. Phase IIIa – Financing Phase IV – Construction Phase V – O+M

Siting Negotiate power Raise capital Feasibility g g Construction management g Desktop Studies g p purchase agreements and Balance of plant contracts p Feasibility Land Acquisition Locally-Oriented Development

Typical Timeline 11

6 months 12 months 24 - 36 months 1 month 18 - 24 months

Contact Details

J b S Jacob Susman

Chief Executive Officer OwnEnergy, Inc. 45 Main Street, Suite 538 Brooklyn, NY 11201 Office: (646) 898 – 3694 Mobile: (215) 805 – 1686 jacob.susman@ownenergy.net

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