SOLAR LEASING & WHEELING IN JORDAN By: Omar Sadder November - - PowerPoint PPT Presentation

SOLAR LEASING & WHEELING IN JORDAN

By: Omar Sadder

November 13, 2018

AGENDA

• Jordan Market Overview
• About YDE
• About Solar Wheeling in Jordan
• About Solar Leasing
• WAA Case Study

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JORDAN’S ENERGY MIX BY 2020

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Natural Gas 67% Renewable Energy 22% Fossil Fuels 11%

• Jordan aims for 22% renewable

energy, 14% of which are solar, in its energy mix by 2020.

• The

country’s favourable solar wheeling regulation facilitates rapid expansion

• f

solar plants around the country.

• YDE

is well positioned to leverage favourable wheeling regulation and market conditions to maintain its market leadership.

ABOUT YELLOW DOOR ENERGY

OUR VISION

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Yellow Door Energy’s vision is to power emerging economies reliably, efficiently and sustainably. Our dedicated team of professionals are working hard to reach $1 billion worth of solar plants in the region. We hope you will join us on this journey.”

Jeremy Crane CEO & Co-Founder Yellow Door Energy

“

OUR STORY

6 EXPERIENCED PARENT COMPANY

Yellow Door Energy was founded in 2015 as a spin-out from Adenium Energy Capital, a leading solar investor in the Middle East with $500 million of solar assets worldwide.

A FOCUSED MISSION

We provide our customers with reliable, efficient and sustainable energy solutions. We do this by investing in distributed solar and energy efficiency infrastructure for commercial and industrial businesses in the Middle East, Africa and South Asia.

MARKET LEADERSHIP IN JORDAN AND THE UAE

We are the first mover and market leader in Jordan and the UAE for solar leases. We are investing in solar lease projects which help commercial and industrial customers reduce their electricity costs.

ACHIEVEMENTS TO-DATE

We were founded in 2015 and have since grown to a team of >20 professionals specialized in solar PV and energy efficiency projects.

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CONTINUED GROWTH IN MARKETPLACE

We have signed over 57 MWp

• f solar contracts in Jordan

and the UAE. Our exceptional reputation propels our growth.

57 MWp

ENERGY SAVINGS CONTRACTS

We provide shared energy savings contracts to help building owners save money and reduce GHG emissions.

SOLAR LEASE PROVIDER

We provide solar leases to help customers go solar with no upfront investment and no operational risk.

COMPANY VALUES

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Quality

We strive for quality in everything we do, such as providing high quality work and procuring high quality equipment.

Reliability

We do what we say we do. Our customers can rely on us for years to come.

Efficiency

We manage

• ur

resources and time

• efficiently. Similarly, we manage our investors’

capital efficiently to maximize their returns.

Innovation

We welcome innovative ways of doing business.

Sustainability

We strive to reduce our carbon footprint and consider our impacts on the surrounding environment and community, and help our customers do the same.

THOUGHT LEADERSHIP & INDUSTRY ASSOCIATION

Yellow Door Energy’s representatives regularly speak at industry conferences to share best practices in developing successful solar and energy efficiency projects in MEA and beyond. 9 We’re proud members of leading industry associations to advance the sustainable energy transition.

EXISTING MARKETS: JORDAN & THE UAE

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STATUS JORDAN UAE TOTAL Operating 3.96 MWp 2.13 MWp 6.09 MWp Construction 4.35 MWp 12.40 MWp 16.75 MWp Signed 30.64 MWp 3.52 MWp 34.16 MWp Total 38.95 MWp 18.05 MWp 57.00 MWp With 57 MWp of solar contracts signed and 6 MWp of projects already operating, we are well positioned to continue our leadership in existing markets.

JORDAN PROJECTS – DIVERSIFIED PORTFOLIO

CUSTOMER SYSTEM SIZE INDUSTRY STAGE

Specialty Hospital 2,090 kWp Healthcare Operating Istiklal Mall 1,870 kWp Retail Operating Taj Mall 4,350 kWp Retail Construction Jabri Restaurants 1,250 kWp Food Signed Jordan Hospital 1,850 kWp Healthcare Signed Aseza AQABA Special Economic Zone 5,500 kWp Government Signed Classic Fashion 5,540 kWp Retail Signed GID 16,500 kWp Government Signed

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SOLAR WHEELING IN JORDAN

BUSINESS CHALLENGES IN JORDAN

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Doing more with less money and fewer resources Coping with rising and uncertain utility prices Managing stakeholders’ increased awareness and expectation for sustainable business practices

WHEELING IN JORDAN

Wheeling creates an opportunity for businesses to be more efficient, and thus competitive locally and internationally.

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• What is Wheeling?
• 1. Customers would like to benefit from solar

energy, BUT they are limited by the amount of space available on their premises.

• 2. Wheeling legislation allows customers to install

solar on land far outside the city, and connect using the grid with a small fee for grid use

• 3. Clean

affordable electricity means that Jordanian companies are more competitive

• Lack of national carbon resources Jordan

means electricity is relatively expensive

• Lots of sunlight makes solar energy a

very competitive source for power

• World-class legislation allows for private

customers to benefit from solar energy

1 2 3

25 50 75 Utility Solar

Cost Comparison Utility vs Solar USD/kWh

WHY IS SOLAR POWER IMPORTANT?

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Doing more with less money and fewer resources Coping with rising and uncertain utility prices Lower utility bills by 10-30% Reduce CO2 emissions and enhance sustainability POTENTIAL CHALLENGES CONFRONTING BUSINESSES TODAY HOW SOLAR POWER ADDRESSES SUCH CHALLENGES Managing stakeholders’ increased awareness and expectation for sustainable business practices Switch to a clean source of energy

HOW DOES IT WORK?

A healthy number of committed customers allows YDE to build a portfolio of high value commercial off-takers.

16 Utilizing wheeling regulations, we deliver energy to a portfolio

• f consumers

We are building mini solar plants throughout Jordan The energy is allocated to customers through long-term solar leases

2 1 3

ABOUT SOLAR LEASING

OUR OFFER: SOLAR LEASING

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Aperformance-based long-term contract which does not expose you to any technical or performance risk on your solar plant. Yellow Door Energy manages all stages of the solar plant and you pay a monthly solar bill

• nce the solar plant starts producing electricity.

WHAT IS IT?

Provide no upfront investment and only pay when the plant starts producing electricity; Focus on your core business and entrust the solar plant to Yellow Door Energy;

WHY IS IT IMPORTANT?

This is a Build-Own-Transfer structure so the solar plant belongs to you at the end of the lease. Manage electricity costs in the long-term with a known solar electricity price, which is lower than the local utility’s tariff.

WADI AL ASH CASE STUDY

OPERATING PROJECTS IN JORDAN

20 3.96 MWp Wheeling Solar Project Ground-mounted with tracker Commissioning Date: October 2018 Wadi Al Ash Valley, Jordan

The Specialty Hospital & Istiklal Mall

OPERATING PROJECTS IN JORDAN

AMMAN MAYOR ATTENDED OPENING CEREMONY

His Excellency Yousef Al-Shawarbeh, Mayor of Amman and His Excellency Engineer Farouq Al Hiary, Chairman of Board of Commissioners, CEO of the Energy and Minerals Regulatory Commission (EMRC) in Jordan attended the Yellow Door Energy Solar Park Opening Ceremony on October 16, 2018.

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PROCESS IN JORDAN

Step Requirements Applicable to Expected Time

Utility Initial Approval Submit request to utility including size, location and consumer Utility 1 month Land Permitting Environmental assessment on land Municipal zoning approval on land Municipality 1 month Grid Impact Study (GIS) Submit technical package to utility Utility 2 months Interconnection Agreement Produced by utility in standard template Signed by consumer Utility 1 month EMRC Licence Submit interconnection agreement, Land permits, technical package, and all approvals EMRC 1 month Total Time: 6 months

Jordan solar wheeling permitting process is well-defined.

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CHALLENGES AND POTENTIAL SOLUTIONS

CHALLENGES SOLUTIONS EXAMPLES

Policies and Regulations Net Metering; Wheeling Shams Dubai; Wheeling in Jordan Financial Challenges No Upfront Investment; Known Solar Tariff YDE Funds Installation Costs; Agreed-upon Solar Tariff Technical Challenges Hire Solar Experts with Relevant Experience YDE’s Technical Team; Approved Contractors and Suppliers Business Focus Entrust to Third Party YDE’s Services

Captive solar provides many benefits to customers. However, there are some challenges to be addressed.

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THANK YOU!

OMAR SADDER Business Development Manager Yellow Door Energy Omar.Sadder@YellowDoorEnergy.com +971 50 622 0398