Integrating Solar In Energy-Mix

Transcription

1 Integrating Solar In Energy-Mix Anand Jain Dec 17, 2014 SunEdison Overview We develop, build, finance and operate turnkey solar power plants to provide our customers electricity at predictable and competitive prices Top 3 Solar PV player globally 2010: largest solar photovoltaic plant developed in Italy, EU, 70 MW 2012: largest photovoltaic plant interconnected in Bulgaria, 60 MW, built in 5 months 2013: Interconnected 542 MW globally Q1 2014: largest PV plant interconnected in Chile, Latin America,100 MW Over 1500 power plants and >2GW fleet under management 3.4 GW project pipeline globally 6,000+ employees in 25 global locations Demonstrated track record with financial institutions Over $6B in financing experience Ground-breaking $1.5B fund with private equity investor, First Reserve Listed on NYSE (SUNE) with Market cap of approx $6B, among Fortune 1000 companies Pioneer provider of solar systems and services First to provide solar PPA in commercial turnkey solar power plants 50:50 JV with Samsung for FBR Poly silicon manufacturing in Korea Systems produced above 103% of the amount forecast SunEdison background Founded in 1959 as Monsanto Electronic Materials Company (MEMC); 55 year old leader in manufacture of silicon wafers for solar and semiconductor MEMC I.P.O. on the NYSE in 1995 MEMC acquired SunEdison in 2009 and changed name to SunEdison in 2013

2 SunEdison s Global Presence Belmont, California Madrid, Spain SunEdison s Regional Headquarters: Asia, Pacific, SA, GCC Chennai, India Europe & MENA Madrid, Spain America Belmont, California India Singapore MEMC Offices/ Manufacturing Facilities St. Peters, Missouri Santa Clara, California Sherman, Texas Paris, France Novara, Italy Shanghai, China Hsinchu, Taiwan Seoul, South Korea Tokyo, Japan Singapore. SunEdison Downstream Locations Belmont, California Toronto, Canada San Francisco, California Denver, Colorado Beltsville, Maryland Pennsauken, NJ Shanghai, China Taipei, Taiwan Seoul, South Korea Manila, Philippines Chennai, India Bangkok, Thailand Madrid, Spain Johannesburg, South Africa Kuala Lumpur, Malaysia Sydney, Australia Tokyo, Japan Dubai, UAE Riyadh, KSA Market Cap in past 1 Year $M $7,000 $6,000 $5,000 $4,000 SUNE Platform: $6.3B Public ownership SUNE Market Cap: $5.0B SUNE ownership TERP SEMI TERP Oct 2013 $2.4B Oct 2014 $6.3B $3,000 $2,000 $1,000 $- WFR SEMI SUNE SUNE WFR 2 Mar May Oct 13 3 Oct 14 Value creation of $3.8B since Oct 2013 SUNE up >200%: $5B SEMI new company: $0.7B TERP new company: $2.7B

3 Robust Pipeline across the globe 1,440 MW of PV Interconnected cumulatively by end of 2013 SunEdison has developed, designed, build and installed over 1000 solar PV systems worldwide* Annual Installations (MW dc ) 1, GW of PV Pipeline SunEdison has approx 3.4 GW of pipeline** and continues to develop new green-field projects Pipeline by Geography E Asia 21% EMEA & LATAM 24% Canada 11% USA 44% Canada: 77 MW USA: 576 MW Mexico: 0.3 MW Geographical Diversification*** Spain: 28 MW Bulgaria: 60 MW Italy: 1999 MW UAE: 1 MW India: 81 MW China: 18 MW S. Korea: 3 MW Thailand: 36 MW Pipeline by System Size >100 MW 23% MW 28% <1 MW 6% 1-10 MW 12% MW 31% Chile: 152 MW Brazil: 1.7 MW **As of 31 st December 2013; A solar project is classified as "pipeline" where SunEdison has a signed or awarded PPA or other energy off-take agreement or has achieved each of the following three items: site control, an identified interconnection point with an estimate of the interconnection costs, and an executed energy off-take agreement or the determination that there is a reasonable likelihood that an energy off-take agreement will be signed ***List not comprehensive Benefits of Solar PV Solution Major benefits of using Solar PV Solution 6 1 Solar energy is infinite and predictable 2 Solar PV is becoming economically feasible and growing as a market 3 Solar PV has already achieved price parity with commercial tariff e.g. Maha 4 Solar PV is modular and can be customized as per requirement e.g. Home Rooftops, Utility Scale, Commercial and Industrial Rooftops 5 Solar is capable of meeting significant demand during daytime P. 6 SunEdison Confidential

4 Why Solar for Corporates? How It Fits Benefit from lower cost of solar power versus rising grid tariff Long term Price Certainty and Energy Security Meet sustainability objectives and renewable energy targets: Avail clean solar power for selfconsumption Optimize use of unused roof and land space in the factory premises Turnkey solution which does not require up front investment Attain Energy Security from a solar PV plant that demonstrates: Quality of construction for durability (25 + years) Procurement of equipment from globally acclaimed technology suppliers Performance based Operation & Maintenance to maximize power generation and longevity Regulatory Enablers Regulatory available concessions in key states State Trans Charge Trans Loss Wheeling Charge Wheeling Loss Cross Subsidy Surcharge ED/ ToSE Ka Exempt AP Exempt Appl. Exempt Appl. Exempt Exempt Raj 50% of normal rates Appl. 50% of normal rates Appl. Appl. Exempt Maha Short term rates applicable Appl. Applicable Appl. 25% of normal CSS Appl^. TN 40% of normal charges Appl. 40% of normal charges Appl. Exempt Exempt Punjab Exempt Exempt Exempt 2% Appl Exempt Source: State Solar Policies and Tariff Orders

5 Process & Implementation Energy Consulting and Analytics Fit for purpose Solution Implementation Post Implementation Support Electricity bill review Base Load Profiling Connectivity Details Land Survey Rooftop Potential survey Open Access Regime Captive vs Noncaptive Cost - Benefit projections On-Site Ground Mount Off-Site Ground Mount On-Site Rooftop Signing of Contracts Securing clearances and permits for the project Financing EPC contract Operations and Maintenance of the Project for the duration of the PPA Offsite solution is scalable and modular On-site assets are transferred to the client after end of PPA period at zero cost Power Supply Solutions I Offering Plain Energy Sale Consumer Advantage Power supply at discount to grid tariff II III Structured EPC Solution Structured EPC Solution with Shared Tax Savings Effective power cost substantially lower than grid tariff Power supply at grid tariffs with tax savings accrued to Consumer No upfront capital expenditure by Client/Procurer End to end customized energy solution State-of-art technology service provider and world-class after sales services SunEdison to manage ancillary approvals & process (open access)

6 Proposal I: Long Term Energy Sale Power Supply Agreement Consumer SunEdison to supply power from proposed solar park in respective state Supply of power directly to customer from a remote generating station using intra-state open access for wheeling of power via transmission/distribution utility Delivery point and metering at Project Bus Bar Scalable and modular solution with option to extend the PSA Particular Tariff Payable Tenure of PPA Assumption Rs 6.0 with 3% escalation 25 years All numbers are for illustration purposes Proposal II: Structured Solution with Shared Tax Savings Project Owner (Consumer) 35% Tax Savings Project Asset Turnkey EPC O&M SPV Equity + Debt 7 year Fixed Cost Repayment 25 year Payment for Generation Based Incentive Consumer places a turnkey contract with SunEdison SPV for project development on its own books; Tax savings accrues to consumer; Consumer to pay for the contract deferred over the tenure of 25 years; All numbers are for illustration purposes

7 Reducing Solar PV Technology risk through After-Sales Services (O&M) Renewable Operations Center (ROC) Commissioning: Commission SEEDS monitoring Validate system performance Prepare data for Independent Engineer / Technical Advisor firm Power plant monitoring and alerting: Detect / diagnose outages Identify underperformance Contact owners / operators Service dispatch and management: Create / manage service tickets Dispatch service crews Confirm problem resolution Analysis: Fleet / portfolio performance Performance by technology Soiling analysis

8 Global Community of Device Suppliers Inverters Smart Combiners Meters Racks & Trackers SCADA P. 15 SunEdison Confidential Proven Track Record in Debt and Structuring International Debt and Equity Project Financing 4 Projects Project Finance Loan 37.4 MW PV Plant (Ontario) 12 project aggregation Q2-Q Italy, Spain Portfolio 52.8 MWp 100% Equity Sale Campania, Italy MWp (January 2011) Project Finance Loan 85.8m Rovigo, Italy 276 mm, 70 MW Joint Venture Catalonia, Spain Equity Placement 3 Project Aggregation (4.4 MW) Catalonia, Spain Project Finance Loan 2 Project Aggregation Puglia, Italy Levered Equity 10 Project Aggregation (9.5 MW) Rajasthan, India 5 MWp (September 2011) Construction and Term Loan $9.4m Thailand 16.8 MWp (11Q3 Sept) Project Finance Loan $52m Gujarat, India 25 MWp (September 2011) Construction and Term Loan $53m G5 project in Gujarat, India 5 MWp (September 2011) Project Finance Loan $14.7m Thailand 9.2 MWp (September 2012) Project finance Loan $ 27 m Additional Financing Structures and Vehicles Private Equity Financings Working Capital Facilities 2008, 2009 North America Construction Revolver Facility $50M ( ) North America Construction Revolver Facility $300M (2011) Thailand Construction Finance Facility $250m (In progress) Global Solar Fund/Joint Venture Levered Equity $1.5 billion ICBC Construction and term loan (2012) $20 million Regional Equity (2012) $ 55 million

9 Proven Track Record in Tax and Equity US Project and Tax Equity Financing SunE Solar Fund I/II Project Finance Partnership 23 Project Aggregation SunE Solar III/IV 195 Project Aggregation Utility and DG Funds 13.1 MW SunE Solar V, V-B, V-C 36 Project Aggregation Project Finance Loan Solar Loan Program (NJ) 11 Project Aggregation Solar Fund V $40 mm, 6.5 MW Project Finance Levered Partnership US DG Portfolio, US Utility Construction & Term 75MW Fund (2011) SunE Solar VII 7.4 MW ( ) US Utility Scale Construction & Term 11 MW (2011) SunE Solar IX 10.1 MW Substation PV Plant SunE Solar X $60 million Direct Lease Kohl s Department Stores 10 Project Aggregation Solar Fund III $190 mm, 21 MW Project Finance Levered Partnership Solar Fund IV Nellis Air Force Base $131 mm, 14 MW Project Finance Levered Partnership Austin, TX $32 mm, 35 MW Project Finance Construction Equity US Residential Pass-Through Lease $50M Fund (2011) Recovery Zone Facility Bonds 20+ Project Aggregation Austin, TX $92 mm, 35 MW Project Finance Construction Loan SunEdison Global Projects

10 Regional Installations Asia (1/2) Regional Installations Asia (2/2)

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