Campus Energy Efficiency Fund Capital for Projects at Pennsylvania Colleges and Universities Keystone Energy Efficiency Alliance Conference, September 24-25, Harrisburg, PA. Joyce Ferris Blue Hill Partners
01 Blue Hill Partners 2
W H O W E A R E Experienced investors in the energy efficiency and sustainability sector. Shifted from investing in technologies to project and service businesses. Strong team with investment and operating experience in the sector. 3
C U R R E N T I N V E S T I N G C A M P U S E N E R G Y E F F I C I E N C Y F U N D Leading over $45 million of funding for projects at colleges and universities in Pennsylvania Pennsylvania Treasury Department is lead investor Green Income Fund with vertical market focus $1 billion investment opportunity in Pennsylvania, $20 billion in Higher Education in the US 4
02 What we have learned 5
Huge lack of efficiency in deployment of efficiency. 6
T H E E C O S Y S T E M Technologies Service Providers Property Owners 7
E C O S Y S T E M - T E C H N O L O G I E S Advanced lighting HVAC efficiency and optimization Monitoring and controls High efficiency motors and fans Software for fault detection and diagnostics, commissioning, monitoring, and benchmarking On-site generation, energy storage, and renewables Sustainability solutions for waste, water, other 8
E C O S Y S T E M - S E R V I C E S Large integrated technology and service businesses Siemens, Johnson Controls, Honeywell, UTC Consultants/Advisors engineers, architects, green consultants Equipment Rep Firms controls, lighting, specialty equipment Small to medium regional contractors HVAC, lighting, controls 9
E C O S Y S T E M P R O P E R T Y O W N E R S Higher Education K-12 Health Care - Nursing homes Commercial - Office - Retail - Hospitality Government - Federal - State - Municipal 10
P R O P E R T Y O W N E R S WA N T S O L U T I O N S, N O T E Q U I P M E N T Power Purchase Agreement transitioned the solar industry to selling electricity not solar panels Charging by the minute transformed the telecom industry to selling communication, not cell phones 11
T I M E F O R N E W B U S I N E S S M O D E L S VS We have 2011 technologies deployed using 1960 s business models. 12
03 Funding new solutions 13
O P P O R T U N I T Y F O R I N N O VAT I V E I N V E S T M E N T A P P R O A C H Lack of businesses with integrated solutions approach Lack of innovative capital for enabling businesses with integrated solutions approach 14
N O T Y O U R T Y P I C A L I N V E S T O R A P P R O A C H Capital in search of next generation project partners 15
M AT C H I N G P R O P E R T Y O W N E R S W I T H P R O J E C T PA R T N E R S 16
I N V E S T I N G I N N E W E N E R G Y E F F I C I E N C Y A N D S U S TA I N A B I L I T Y P R O J E C T S A N D D E V E L O P E R S 17
K E Y F I N A N C I A L AT T R I B U T E S F O R N E W B U S I N E S S M O D E L S : Funded solutions property owners do not use internal capital (including debt) 18
K E Y F I N A N C I A L AT T R I B U T E S F O R N E W B U S I N E S S M O D E L S : Funded solutions property owners do not use internal capital (including debt) Net positive financial impact solution will be credit and balance sheet neutral 19
K E Y F I N A N C I A L AT T R I B U T E S F O R N E W B U S I N E S S M O D E L S : Funded solutions property owners do not use internal capital (including debt) Net positive financial impact solution will be credit and balance sheet neutral TRUE SERVICE OFFERING 20
C U R R E N T C E E F P R O J E C T S Project School Estimated Investment Annual Operating Savings after ESA Term Total Net Savings Multi-building prime retrofit project Large University $4,000,000 $700,000 Over 30 year equipment life Prime retrofit project Liberal Arts College $500,000 to $800,000 $100,000 to $160,000 Over 30 year equipment life Supplemental energy efficiency scope for building renovation project Research University $500,000 to $1,000,000 $100,000 to $200,000 Over 30 year equipment life Outdoor lighting retrofit and new lighting Community College $750,000 - $1,000,000 In process Over 25 year equipment life Single building prime retrofit project Student Housing $800,000 to $1,000,000 In process Over 25 year equipment life 21
Thank you Contact: Joyce Ferris Managing Partner Blue Hill Partners LLC 215 248 5244 joyceferris@bluehillpartners.com 22