NEAS ENERGY - Route to Market

Transcription

1 NEAS ENERGY - Route to Market

2 Overview Wholesale Power Market developments Revenue Profiles Secured and Unsecured FIT CFD v ROC PPA Key terms and conditions PPA Backstop PPA Cash flows for CfD and ROC projects. 2

3 Who is Neas Energy? Leading Non-Utility PPA provider in Europe Around 6,000 MW installed capacity managed 4,000 MW+ of renewables ~ 2/3 of Denmark s On-Shore Wind 1,700 MW+ in Germany 500 MW+ in Sweden Fastest Growing PPA provider in the UK Started February 2013 Grown with 300 MW+ in the last 9 months Strong ties with top-tier Developers 3

4 Wholesale Market Developments

5 Long Term Price Trends Current per MWh Sept 2013 per MWh Diff % Diff % % % % % % Current per MWh September 2013 per MWh 5

6 Reference Price Performance N2EX 6

7 N2EX ahead hourly auction high level info 2013 Maximum hourly price per MWh ( ) Minimum hourly price Average hourly price for the full year per MWh ( ) Average peak time price per MWh Above 70 per MWh 540 times during 12 month period 2014 trends for Power prices to trend lower reflective of market conditions 7

8 Sep 25, 2013 Oct 08, 2013 Oct 21, 2013 Nov 01, 2013 Nov 14, 2013 Nov 27, 2013 Dec 10, 2013 Dec 23, 2013 Jan 03, 2014 Jan 16, 2014 Jan 29, 2014 Feb 11, 2014 Feb 24, 2014 Mar 07, 2014 Mar 20, 2014 Apr 02, 2014 Apr 15, 2014 Apr 28, 2014 May 14, 2014 May 27, 2014 Oct 09, 2013 Oct 21, 2013 Oct 31, 2013 Nov 12, 2013 Nov 22, 2013 Dec 04, 2013 Dec 16, 2013 Dec 26, 2013 Jan 07, 2014 Jan 17, 2014 Jan 29, 2014 Feb 10, 2014 Feb 20, 2014 Mar 04, 2014 Mar 14, 2014 Mar 26, 2014 Apr 07, 2014 Apr 17, 2014 Apr 29, 2014 May 13, 2014 May 23, 2014 Jun 04, 2014 Price Development of Front Seasons Base load Winter Base Load Summer

9 Revenue Profiles Secured and Unsecured FIT CFD v ROC PPA

10 Solar Strike Price v 1.4 ROC Offer LOW 1.4 ROC's CENTRAL 1.4 ROC's HIGH 1.4 ROC's Strike Price 120 Strike Price 105 Strike Price 95 10

11 Millions Secured Income (Assuming 1000 MWh p.a.) Secured ROC income Strike Price 120 Strike Price 105 Strike Price 95 11

12 Wind Strike Price v 0.9 ROC Option Low Central High FIT CFD 95 STRIKE PRICE FIT CFD 85 STRIKE PRICE FIT CFD 75 STRIKE PRICE 12

13 Millions Secured Income (Assuming 1000 MWh p.a.) Secured ROC income Strike Price 95 Strike Price 85 Strike Price 75 13

14 ROC Wave/ Tidal v FIT CFD Low Central High FIT CFD 14

15 Millions Secured Income (Assuming 1000 MWh p.a.) Secured ROC income Secured CfD income 15

16 Payment Profile FIT CFD v ROC

17 FIT-CfD and RO Differences Renewable Obligation FIT-CfD Power Price Payment Supplier Payment Government Subsidy Monthly in Arrears as to Payment terms agreed market mechanism Minimum of 2.5 Months following generation month Reference price minus fee Monthly in Arrears as to Payment terms Daily 28 days from point of generation Data Level Generation at meter Generation at BMU Credit Exposure Payment of LEC s Certificates Payment of GDUOS and Embedded Benefits All Exposure with Supplier Minimum of 2.5 Months following generation month No change Power Only. FIT CFD counterparty for Top up payment Minimum of 2.5 Months following generation month No change Exposure to Negative Prices PPA dependent PPA dependent

18 Payment Profile Scenario 1 Reference price below FIT CFD Strike price Generation 1 First FIT CFD Payment 28 days from point of generation First PPA Power Payment for Power generated at Reference price LEC Certificates transferred to Generator account PPA Provider pays Generator for LEC certificates 24 hours in advance expected generation traded End of Calendar month + 1 month from generation + 2 month from generation + 3 month from generation + 4 month from generation 18

19 Payment Profile Scenario 2 Reference price above FIT CFD Strike price Generation 1 Power price for 2 hours above strike price FIT CFD Payment 28 days from point of generation for Power below the strike price PPA Power Payment for all Power generated at Reference price 24 hours in advance expected generation traded 3 Supplier receives payment from exchange 7 Supplier invoiced to pay for power above strike price 12 Supplier makes payment FIT CFD Counterparty End of Calendar month + 1 month from generation 19

20 Payment Profile Scenario 3 Reference price goes below zero but not below strike price value Generation 1 Power price for 2 hours below zero FIT CFD Payment 28 days from point of generation for Power below the strike price for negative hours generator receives full strike price PPA Power Payment for all Power generated at Reference price. Netting negative N2EX trade values against positive 24 hours in advance expected generation traded End of Calendar month month from generation

21 Payment Profile Scenario 4 Reference price goes below zero and value of strike price value Generation 1 Power price for 2 hours negative below strike price value FIT CFD Payment 28 days from point of generation for Power generated outside of affected time period PPA Power Payment for all Power generated outside of affected time period We aim for a solution that requests shutdown of the plant for the affected hours End of Calendar month + 1 month from generation 21

22 PPA Overview and Key Terms

23 FIT CFD Key commercial terms- Intermittent Generation FIT-CfD Discount to Reference Price per MWh Guaranteed Reference Price Fixed Discount Period Imbalance exposure of generator Settlement Exposure Management of additional benefits Yes as part of per MWh discount Discount fixed for terms maximum to the term of the FIT CFD. Longer the term the higher the fee Expectation of planned and unplanned outages managed within Imbalance premium Supplier Reference price FIT CFD Top up payment LEC s, EB and GDUOS will be managed via commercial agreement

24 KEY PPA TERMS FIT-CfD CREDIT RISK LIABIILITIES CAPS PAYMENT TERMINATION RIGHTS TERMINATION COSTS RISK OF NOT GAINING A FIT CFD OFFER LONG STOPS DATES COMMISSIONING RISK Supplier seek for credit exposure to reflect true financial risk to the generator Equal to the risk each party faces Payment terms as to current PPA As with current PPA exposure for forward commitment in respect to Power delivery and Certificates Formula to reflect market exposure PPA Falls away Mirror FIT CFD PPA NO additional risk, test for achieving commissioning not increased. 24

25 Supplier default PPA Cash flow implication Reference Price minus PPA Fee SSP FIT CFD Top UP Actual credit risk exposure Interim Support Time Period to backstop PPA support Backstop payment 25

26 ANY QUESTIONS