Topics

• ACORE
Solar Energy in the U.S. • Global investment on clean energy
• Solar energy growth
First Asia Solar Energy Forum
Asia Development Bank
Manila, Philippines
July 5, 2010

Michael Eckhart
President
American Council On Renewable Energy
www.acore.org
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ACORE’s 600+ Organizational Members Policy Conference

Strategy to Assemble All the Players Necessary to
Make Renewable Energy Successful in the U.S.
“Phase II of Renewable Energy in America”
Cannon Caucus Room, Washington, DC
Next: November-December 2010

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Finance Conference
Renewable Energy Finance Forum
New York City and San Francisco
ACORE Leadership Council
Mission: to bring together the nation’s renewable energy leaders to
plan and manage the success of renewable energy in America

• 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

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 ACORE’s International Initiatives Great Wall Renewable Energy Forum
2006 Beijing, China
ACORE is pursuing a broad array of international activities to advance
Co-organized by:
renewable energy globally and bring international experience to the U.S.
• CWEA, CREIA and CRES
• ACORE and NREL
• International Renewable Energy • WCRE and EREC
Agency (IRENA)
Policy conference and trade show
• Renewable Energy & Energy Signing of US
US-China-Europe
China Europe MOU
Efficiency Partnership (REEEP) Two-week tour of wind & solar companies

• Renewable Energy Global Policy

Network (REN 21)
• Bonn and Beijing International
• World Council for Renewable Renewable Energy Conferences
Energy (WCRE)
• Washington International Renewable
Energy Conference 2008
• US-China Program
• India IREC 2010

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Washington International Renewable

Energy Conference (WIREC 2008)
March 4-6, 2008 Global Capital Investment in Clean Energy
• Created by ACORE
• 8,600 attendees from around the world
• Ministerial Summit hosted by Bush Administration
• Business Summit hosted by ACORE and Associations 250.0
• Outcome: On-going series of global meetings under REN 21 214.0

200.0
Investmentts in $ bn

173.5
157.3 162.1
150.0
110.3
100.0
70.4
50.0 45.7

0.0
2004 2005 2006 2007 2008 2009 2010E
United States Europe China
India Brazil ASOC (excl. China & India)
AMER (excl. Brazil & US) Middle East & Africa

Source: Bloomberg New Energy Finance

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Investment in clean energy by region:

2007, 2008 & 2009 ($b)
Multilateral and development bank lending
$21.1bn
$1.1bn
$17.4bn
52.2 53.2
48.9 $8,510
46.4 45.4 Export Finance
41.4
$10,641 Development Banks
34.1
32.2 2007
Multilaterals
23.7 $6.5bn
2008 $11,477
$3,853
$6,487
2009
$2,343

EMEA AMER ASOC 2007 2008 2009

Source: Bloomberg New Energy Finance
Note: Financial sector investment only (i.e. excludes corporate and government R&D, and small distributed Source: Bloomberg New Energy Finance
capacity). Not adjusted for re-invested equity. Total values include estimates for undisclosed deals. 11 12

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 Forecasts of Global PV Market Installations U.S. Solar Resource
(GW/Year)
30
NEF Optimistic
25

Wells Fargo
20
NEF Expected
Jeffries
15 Morgan Stanley
Soc Gen
10

0
2009A 2010E 2011E 2012E 2013E 13 14

U.S. Federal & State Policy

on Solar Energy
Solar PV
US Solar PV Installations
Federal: State: (MW/Year)
1. Core Policy: 1. RPS:
– 30% Investment Tax Credit – Utility procurement
3000
– MACRS Depreciation – REC markets Grid
– RD&D funding – New “Feed-In Tariff”
2
2. Federal Stimulus: 2
2. Incentives: Off-Grid
– Cash grants in lieu of ITC – Tax credits 2000
– Loan guarantees – Tax abatements
– Manufacturing tax credit – Cash subsidies - CA
– RD&D funding – RD&D funding Key Issues:
3. Proposed initiatives: 3. Other: • Cost reductions
1000
– National RES – Net metering • Financing
– CEDA/Green Bank – Financing / PACE • Manufacturing in U.S.
– Transmission – Other policies Opportunities:
• Utility-scale projects – 3 GW
0
2000 2002 2004 2006 2008 2010 2012
• Feed-In Tariffs?
15 Source: ACORE Estimate 16

Capital Requirements of U.S. Solar PV Projects

Concentrating
Solar Power
Technology / Project COD MW $ / kW $ mm
418 MW operating:
SunPower² – 650 $6,000 $3,900 • SEGS: 354 MW in CA
Desert Sunlight / Stateline 2015 550 4,500 2,475 • Solargenix: 64 MW Solar One

First Solar² – 500 4,500 2,250 Pilot plants:

Sempra² – 350 4,500 1,575 • eSolar 5 MW Sierra in CA
• Acciona: 1 MW APS Saguaro
Aqua Caliente (NextLight/PGE) 2014 290 4,500 1,305 • SES: 1.5 MW Maricopa in AZ
• Sopogy: 2 MW Kona HI
AV Solar Ranch One 2013 230 4,500 1,035 • Solar Millennium at Kramer Junction
Copper Mountain (Sempra/PGE) 2011 48 4,500 216 • Amonix projects in Arizona

Total Solar PV 2,618 $12,756 Financing: Key Issues:

• BrightSource Energy 392 MW
Source: Goldman Sachs Ivanpah Project: $1.4 Billion LG
• Cost and Economics
• Sitting / environmental
Backlog:
• 5,000+ MW under contract to utilities
• Transmission
• 10,000+ MW planned • Financing
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 Capital Requirements of U.S. Solar Cost of Debt to Renewable Energy Projects
Thermal--Electric Projects
Thermal 9%

8%
Ridgecrest (Solar Millennium/SCE) 2013 / 14 484 $6,000 $2,904
7%
Mohave (Solel/PGE) 2011 553 4,750 2,627
6%
Ivanpah (Brightsource/PGE/SCE) 2012 / 13 500 4,750 2,375
5%
Solana (Abengoa/APS) 2012 280 6 000
6,000 1 680
1,680 4%

Amargosa (Solar Millennium/NVE) 2013 / 14 250 6,000 1,500 3%

Mohave Solar (Abengoa/PGE) 2013 250 6,000 1,500 2%

1%
Genesis Solar Energy (NextEra/PGE) 2013 / 14 250 4,750 1,188
0%
Gaskell (eSolar/SCE) 2012 105 4,750 499 Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010

3m LIBOR 15y Swap Debt Spread

Alpine SunTower (NRG, eSolar/PGE) 2012 92 4,750 437
Notes: 4/29/2010, excludes upfront fees and refinance fees Source: Bloomberg New Energy Finance
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Total Solar Thermal 2,764 $14,709 20

SolarBankTM
Proposed Specialist in Solar Energy Financing

• Subordinated debt provider to solar PV and STE projects:

– Sub-debt provider
– Assume technology risks
• Key markets:
–
–
US/Canada, Europe and Japan
China and India and all of Asia
Thank You
–
–
• Impact:
Middle East
Developing countries
www.acore.org
– Build comfort among senior debt lenders
– Work with project developers on project and market risks
– Work with technology suppliers on technical risks Michael Eckhart
• Alliances: American Council On Renewable Energy
– Development banks meckhart@acore.org
– Private sector lenders
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