THE RENEWABLE ENERGY OPPORTUNITY

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1 THE RENEWABLE ENERGY OPPORTUNITY

2 Making a Lasting Difference Renewable energy is the ticket to a more sustainable business model and energy secure future. There is a massive need for building more renewable capacity to meet the established goals for replacing fossil and nuclear energy. As a business leader you have the choice and opportunity to proactively contribute to a more secure and sustainable energy future. Shrinking public budgets and national support systems, combined with tougher equity requirements for European financial institutions, have resulted in numerous renewable energy projects being put on hold. Many projects have stalled due mainly to a lack of top financing. Guarantees of Origin, and bundles renewable energy consumption with a contribution to new renewable energy production. This enables customers to ensure that they are consuming clean energy, while adding more capacity to renewable energy production. Guarantees of Origin (GO) are the only way businesses can be sure of consuming renewable energy. Now there is also an opportunity to contribute to expanding the production of renewable energy. ECOHZ believes a significant number of projects can be activated with top financing from GO2. ECOHZ seeks to change energy behaviour by matching businesses with projects using the GO system. ECOHZ qualifies, certifies and secures attractive financial models to offer business a viable and well-documented solution for improved sustainability and increased renewable energy production. ECOHZ has created a solution named GO2, allowing business to contribute top financing to named renewable projects. The GO2 solution builds on the system of This massive investment in wind energy is not a one off event it is an integral part of our overall ambition of making a positive impact on the world. We re on a journey, a never ending journey but the investment in renewable energy is a huge step in the right direction. Jørgen Vig Knudstorp, LEGO. Lego news February 2012 Accumulated investments needed to reach targets for renewable electricity in EU by 2020: >350 Billion Euros. Based on Energy priorities for Europe J.M Barosso p 02

3 Creating AAA Business Value With GO2 businesses can both consume and help build renewable energy, while at the same time creating a competitive advantage and improving their sustainability rating.the GO2 concept is simple, scalable and can be tailored to specific customer needs. It creates a direct link between businesses and named renewable projects. Through our 9 point AAA agenda for changing energy behaviour ECOHZ describes in more detail how building more renewables with the GO2 concept can create real business value. ECOHZ believes GO2 will become a new and open market category, where other market players will construct and deliver their own products. This will expand the total market itself, and increase relevance and value for customers. 01 Take responsibility and be part of the solution Act 1) Consume renewables 2) Build more renewable 3) Engage your stakeholders capacity Aid Reduce emissions Improve the energy mix Improve the energy behaviour Affect Mitigate climate change Decrease dependency on fossil and nuclear energy sources Reduced consumptions and energy costs 02 Create competitive advantage Act 4) Create brand initiatives 5) Use in story telling 6) Create consumer advocacy Aid Consumer connections Reputation enhancement Improved net promoter score Affect Improved profitability Improved loyalty Growth 03 Improve sustainability rating Act 7) GHG reporting 8) Develop show cases 9) Improve industry rankings Aid Credible and approved tools Visible proof of engagement Industry leadership Affect License to operate Social acceptance Stakeholder support The world s largest companies are expanding their use of renewable energy because it makes good business sense ( ) We strongly encourage all companies to set renewable energy targets and disclose these commitments ( ) Senior Vice President for Sustainability Research and Policy for Calvert, Bennett Freeman Source: Power Forward: Why the World s Largest Companies are Investing in Renewable Energy p 03

4 GO2 is a new solution developed through extensive dialogue with key stakeholders and partners. The five main elements of the GO2 concept are: Top-financing Renewable energy with Guarantees of Origin (GO) is expanded to include a direct contribution to new energy production. The GO2 top-financing covers up to 15 % of the total project costs. Delivering real increase Any of the mature renewable technologies (solar, wind, hydro, geothermal & biomass) are eligible for GO2 funding. Only European projects in need of top financing are eligible. GO2 will not finance pilot projects or technologies under development. Guaranteed minimum project allocation The GO2 solution will be based on a firm investment allocation guarantee. A predefined share of the total will be directly allocated to a named project. Third party verification Both investment flows and project development will be verified and audited by third party auditors. GO as vehicle GO2 is built on the European system of Guarantees of Origin (GO), ensuring proper tracking and reporting of the origin. For most companies the decision to procure renewable energy is taken at board level, generally as a part of the company s corporate sustainability efforts Source: CREX 2012, Bloomberg New Energy Finance & Vestas Wind Systems A/S p 04

5 ECOHZ GO 2 Building Blocks ECOHZ will offer a broad portfolio of GO2 solutions. They will be tailored to various customer needs and be based on a set of common building blocks. Renewable knowledge pool Today ECOHZ has one of the largest and most knowledgeable groups of specialists in Europe, dedicated solely to creating renewable energy solutions for customers. The ECOHZ GO 2 product portfolio Getting engaged in renewable energy shall be easy and worthwhile. ECOHZ will package and deliver to client simple, engaging (educational) and hassle-free. A product in the ECOHZ GO2 portfolio will consist of the following elements: Renewable energy documented with Guarantees of Origin (GO), covering existing power consumption Prospect of future renewable project and documentation of project under development The right to purchase GO from the new power plant The ECOHZ Renewable Energy Foundation ECOHZ has established a separate legal entity, with the sole objective of managing and optimizing the portfolio of renewable projects. The foundation will ensure total transparency and irrefutable verification. p 05

6 Triggering project realization using top financing By dedicating funds only to top-financing (up to 15 %) of new projects, the financial contributions from customers are put to use in the most efficient way. Ensuring available top financing can be instrumental in making the project as a whole bankable. Incremental projects With GO2 ECOHZ will build a portfolio of renewable projects. Criteria for selecting new projects will include geography/location, technology, financial performance indicators and size. The project portfolio will be expanded in line with customer needs and market acceptance. In the initial stages, weight will be given to finding small projects in terms of top financing needs, to ensure a short lead time from customer decision to construction start. Multiplier effect The ECOHZ Renewable Energy Foundation will provide top financing to the projects using an attractive lending scheme. The lending scheme, although preferential compared to traditional sources, will ensure a payback of funds to the foundation. This will create a multiplier effect as the funds can be reinvested in yet another project. Allocation GUARANTEE When purchasing the ECOHZ GO2 a confirmation will be delivered to the customer, describing which share of the total purchase price is allocated to the project. This share will normally be around 80%, but can vary depending on special customer requirements. WWF calls for major investment in clean and renewable energy with launch of new global campaign We are running out of time.( ) It is now our collective responsibility to commit to the future we want. We call on political and financial decision-makers to seize their power to make the switch to clean and sustainable renewable energy and end the inertia of coal, oil and gas. Jim Leape, Director General of WWF International. WWF Global, 06/05/2013 The Impact Establishing GO2 as a new market category will have a positive effect beyond the described value creation for the businesses themselves. It will lead to: An improved and relevant market-based support mechanism not replacing, but complementing existing national support schemes Further vitalization of the market place for renewable energy A viable framework for post-2020 renewable policy Increased value of existing renewable energy documented with GO Additional incentive for project developers Social and health benefits p 06

7 KEY FIGURES p 07

8 ECOHZ - Changing energy behaviour ECOHZ offers renewable energy solutions to electricity providers, businesses and organizations across Europe. Its focus is on renewable electricity documented with Guarantees of Origin (GO), LECs, as well as national support certificates. The company is also engaged in realizing new renewable energy capacity, utilizing the GO2 concept. ECOHZ portfolio comprises electricity generated from renewable sources such as hydro, wind, solar, geothermal and biomass from more than 200 power plants operated by more than 20 power producers across Europe. ECOHZ is located in Oslo, Norway and Nyon, Switzerland and has distribution partners in 14 European countries. In 2012 ECOHZ managed a renewable energy portfolio of nearly 50 TWh, making the company one of Europe s largest independent suppliers.