Agenda. Section 1: Renewable energy market. Section 2: What we have to offer

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1 Unlocking the funding options for new projects and refinancing existing schemes Ian Burrow Head of Agriculture & Renewable Energy June 2015 is classified as External

2 Agenda Section 1: Renewable energy market How we see the renewable energy sector & opportunities Membership with BHA Overcoming barriers to finance Section 2: What we have to offer Achievements and next steps Funding what we can do is classified as External 2

3 Section 01 Renewable Energy Market How we see the renewable energy sector & opportunities Membership with BHA Overcoming barriers to finance is classified as External 3

4 How do we see the sector & opportunities? New and emerging market Solar opportunity, Biomass, Turbines, AD, Hydro Uncertain energy prices Learning with the market willingness to lend Huge potential for businesses to benefit: Minimise/ reduce risk of future supply Help Business grow & reduce costs Increase income/ liquidity is classified as External 4

5 British Hydropower Association membership NatWest/RBS has joined the BHA as a Principle Company member We are delighted to welcome NatWest/RBS into BHA membership. The BHA is at the forefront of the drive to promote hydropower technology as a sustainable and the least visually intrusive and with the lowest lifetime cost to the customer of all renewable technologies. Simon Hamlyn, CEO is classified as INTERNAL 29/06/2015 5

6 Common barriers to finance & pitfalls experienced Complexity of Projects Scale, size, complexity and affordability Poor Planning Poor project planning Unrealistic expectations Not speaking to Bank s at an early stage Limited Knowledge Not surrounding yourself with the right advice and expertise Unreliable data Knowledge of strength of installer/manufacturer of equipment etc Little confidence not knowing who to trust is classified as External 6

7 Section 02 What we have to offer Achievements and next steps Funding What we can do is classified as External 7

8 Renewable Energy Finance Performance Highlights 50m committed across 190 deals Achievements to date AD & Hydro policy launched Next Steps Cashflow lend Average deal size last 6 months - 500,000 Online Accreditation for our specialist Online Agriculture accreditation managers Internal training Energy Campaign Existing policy enhancement External profiling is classified as External 8

9 Funding what can we do Up to 100% funding for the project including feasibility study and planning costs Up to 15 year repayment period available Funding secured against land & buildings alternative assets minimum 75% cover Transactional Energy Loans available Up to 85% of the FiT income taken into consideration when assessing loan serviceability Tailored specific Renewable Energy Insurance product/policy available Max project size 1.5MW per wind turbine, 5MW for Solar PV projects & 1MW anaerobic digestion and micro hydro Funding RHI projects in partnership with our Lombard colleagues Refinancing of existing projects which are up and running and release security Security may be required. Product fees may apply. Over 18s only ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT is classified as External 9

10 Hydro Maximum 1MW project size Interest only period during construction Maximum project lend 5m 30% of FiT income used when assessing loans There are many exciting hydropower projects in the UK and sometimes sourcing funding can be problematic for project developers or owners. To have the full support of a blue chip business such as the Royal Bank of Scotland is good news for the sector Simon Hamlyn, CEO British Hydropower Association is classified as External 10

11 Thank you For more information contact: Ian Burrow Head of Agriculture & Renewable Energy D M E ian.burrow@rbs.co.uk is classified as External