PV Farms Solar Electric Power for Wholesale Distribution

PV Farms Solar Electric Power for Wholesale Distribution UC ENERGY WEEK 2010 California Solar Energy Workshop UC Davis Energy Institute Davis, California Larry Asera Chairman/CEO Asera Group, Inc. May 11, 2010

PV Farms Solar Electric Power for Wholesale Distribution PV Farms: Utility-Scale Solar Power Plants Wholesale Distributed Generation (WDG) Feed In Tariff (FIT) Renewable Portfolio Standard (RPS) CPUC New Solar Initiative Financial Incentives Case Study: Napa Solar Farm Business Model Project Implementation New Developments

Typical Solar Installation Roof-top mounted Residential Use Net-Metering with Utility Company Size: under 1MW CSI/Performance Based Incentive Time of Day meter New Federal Tax Incentives New State AB 811 Financing 3

PV Farm: Solar Power Plant Facility Solar Array Field: 1-5MW, now up to 20MW Grid-Connected Wholesale Distributed Generation 4 Utility Sub-Station

5 Utility-Scale Solar PV Farms

Wholesale Distributed Generation PV Farm: Utility-Scale solar power plant connected to utility grid All power generated sold to Utility Company under long-term Power Purchase Agreement (PPA) along with REC s Pricing of PPA negotiated through an RFO process or Bi-lateral Agreement on a Case by Case basis Market Price Referent (MPR) Feed In Tariff (FiT) a la AB 1106 Project size now 1-20MW under New Solar Initiative (PGE) 6

Project Components Shovel Ready 7

Federal Financial Incentives Renewable Energy Tax Benefits (ARRA Economic Stimulus Act) 30% Investment Tax Credit (ITC) converted to Grant from US Treasury Section 1603 of IRS Code: Grant in lieu of ITC (non-taxable) Payment within 60 days of Project Completion by US Treasury MACRS Federal deduction Accelerated Depreciation in 6 years Department of Energy - 100% loan guarantee for balance of project costs Green Tech Academy grants Solar Technician Training under ARRA: Solar PV 101 IBEW Electrical Training Facility Community College: Education to Employment OJT: On the Job Training 90% subsidy for Green Collar Jobs for 6 months Workforce Investment Board (WIB): Re-entry program for vets 8

California Incentives California Solar Initiative (CSI) Governor s Million Solar Roof Program $3B over 10 years from Utility Rate Base First Come-First Serve Grant paid over 5 years Performance Based Incentive or PBI (39-22-15 cents/kwh) RPS: Renewable Portfolio Standard Utilities to purchase 20% Renewables by 2010; 33% by 2020 Feed-in Tariffs Rates for Renewables Open Access and Community Aggregation AB 32: Carbon Emission Reduction (REC s) CAP Grants Emission Offset Banking 9

CPUC New Solar Initiative New Ruling passed on April 22, 2010 by the CPUC Major boost to implement RPS and new solar PV projects Authorized PG&E to develop 500MW solar PV in 5-years A: 250MW utility-owned solar PV projects on utility property B: 250MW available for Independent Power Producers to enter into Power Purchase Agreements (PPA) with PG&E 50MW per year for 5 years for each program Set size of solar PV projects from 1-20MW for PPA Allocated $1.45B for implementation of utility-owned solar PV facilities Set range and terms for PPA pricing 10

Napa Solar Farm A 6.7 MW Solar Micro-Utility Napa County, California USA

Project Description 6.7MW Solar PV Farm connected to PG&E Utility Grid Brownfields to Greenfields (closed landfill disposal site) 80 acres of land coverage; approximately 25,000 solar panels Avoidance of 60,000 lbs. of Smog (NOx); 52,000 lbs. Acid Rain (SO2); 80 million lbs. of Carbon Emissions (CO2) Equivalent to removing 7,500 cars; planting 12,000 acres of trees and providing 3,200 homes of electrical power Project Costs: $26-30M before rebates, grants, ITC Financed by combination of ARRA Grants, Debt Financing, Private Equity Capital 12

Project Site: The Napa Solar Farm is located on an 80-acre closed sanitary landfill site owned by the Napa-Vallejo Waste Management Authority, a governmental entity comprised of the Cities of Napa, Vallejo, & American Canyon and the County of Napa and operating under a Joint Powers Agreement (JPA). The Project Site is located in the unincorporated area of Napa County adjacent to the City of American Canyon city limits, approximately 45 miles north of San Francisco, California. 13

American Canyon Landfill Site View looking east towards Napa Valley, City of American Canyon; Top of landfill elevation at 45 foot level, center of 80 acre parcel. 14

American Canyon Landfill Site View looking west towards Napa River; Elevation 40 foot level at southern end of 80- acre parcel. 15

Electrical Substation Electrical substation and switchyard used to interconnect to PGE utility line for methane gas recovery to energy plant on site. 16

Electrical Utility Lines Existing 12-KV electrical distribution lines interconnected to PGE utility grid. 17

Business Model PG&E PPA Equipment, installation, warranties Manufacturer Installer Napa-Vallejo Waste Management Authority (NVWMA) Land Lease $ $ Napa Solar Farm (Green Tech Power Group) Sales & O&M revenue Financing - Receives revenue from sale of panels, inverters - Provides warranties for equipment and performance - Land Owner - Host Customer - Leases Land to GTPG - Purchase min. power - Provides Design/ Construction EPC - Provides Capital - Provides O&M - Shares Revenue Stream Solar Services Third Party Investor - Receives low-risk ROI from electricity sales, federal ITC & MACRS - Green Tags 18 - ARRA Grants

Project Business Proponents o Green Tech Power Group (GTPG): Project Developer, Owner, Operator of Napa Solar Farm; also Energy Service Provider. o Napa-Vallejo Waste Management Authority (NVWMA) o Land owner and Lessor: will lease 50+ acres of closed landfill site to GTPG o Host Customer: existing customer of PG&E and will purchase minimal power from GTPG o Pacific Gas and Electric (PGE): Off-taker and purchaser of electricity produced by the Napa Solar Farm o Long term (20-25 year) Power Purchase Agreement (PPA) o California Renewable Portfolio Standard (20% by 2010; 33% by 2020) o California Feed-in-Tariff 19

California Office: 500 Walnut Avenue Quarters O, Mare Island Vallejo, CA 94592 Office 707.225-0098 Fax 707.553-2681 20 Project Developer Green Tech Power Group, LLC is a Renewable Energy Company organized to develop megawatt class, utility-scale renewable energy projects as an Independent Power Producer under long-term Power Purchase Agreements. With Headquarters located in on Mare Island, Vallejo, California the principals are civil and environmental engineers with over 25 years of business and entrepreneurial experience in the clean technology industry.

Project Implementation: 1 Start Project: Site Control (July 2009) ERN (Exclusive Right to Negotiate) 2 3 Expedited Permit Approvals (June 2010) Negative Declaration under CEQA Start Construction (July 2010) Project Completion (Nov 2010) 21

Project Status Site Control: Project Developer (GTPG) is operating under an Exclusive Right to Negotiate with the Napa-Vallejo Waste Management Authority, approved July 29, 2009 by Board of Directors under sole source contract. Authority provided Site Capability Assessment for Solar Farm use Use Permit: Use Permit to be filed with the County of Napa Planning Department under a negotiated, expedited processing timeline (90 days) for review, public hearing and approval Negative Declaration under CEQA determined by Legal Counsel of Napa Building Permit can be processed concurrently Site Plans, PV Layout, and drawings completed and ready for filing Two preliminary meetings with Planning and Legal Counsel on process Authority approved Consent to File Use Permit on Nov 2, 2009 22

Project Status Solar Panel Manufacturer screening Screened pricing and tech specs from 3 PV manufacturers (Japan, China, Germany) for logistics, equipment delivery schedules, etc. Preliminary solar panel site layout and sizing completed in-house based on various technologies (for Use Permit purposes) Preliminary Engineering completed In-house capabilities for Civil, Topo, Survey, Structural, PV Systems Identified local Electrical Engineers for inter-connect services Local Napa General Contractor identified Bonding capacity based on preliminary installation estimates Will provide construction cost estimates based on final engineering, site design, and Use Permit and Building Permit requirements 23

Project Milestones Napa Solar Farm: American Canyon Landfill Site, Napa County, California USA 2009 2010 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Consent to File Use Permit 2-Nov X File Use Permit App w/napa 20-Nov X Use Permit Review 20-Dec X CEQA Review 20-Dec X Public Hearing on Use Permit 22-Feb X Building/Use Permit Approval 26-Feb X File PPA Request w/pge 20-Nov X Submit Project Viability Forms 20-Nov X Approve PPA/Feed In Tariff 20-Jan X File Interconnet App w/pge 7-Dec X Submit Engineering/Interconn. 18-Jan X PGE Review of Interconnect App. 180 d. Interconnect Approval 30-Jul X Equipment Delivery 120 d. Materials Handling 8-Feb X X Solar PV & BOS 8-Feb X X Installation of Solar PV System 4 mo. Construction Start/Site Work 1-Apr X Panel Assembly/Fabrication 15-Apr X Installation and Grid Intertie 120 d. X Construction Completed 15-Aug X Commissioning by PGE 30-Aug X Project Placed in Service 30-Aug X Submit ARRA Claim Forms 1-Sep X Payment by Dept. of Treasury 60 d. X 24 The Napa Solar Farm can be completed in year 2010 given the above Project Milestones which is based on projected equipment delivery schedules and approved governmental permits.

New Developments: Six Flags Solar Carports for Shaded Parking Lot at Amusement Park, Vallejo, CA 25

May the Sun be With You! Asera Group, Inc. 500 Walnut Avenue, Quarters O Mare Island, Vallejo, CA 94592 707 553-2740 Tel 707 553-2681 Fax www.asera.net 26