/ / / / / / / / / / / / / / / / / / / / / / / / / / / /

Transcription

1 BUSINESS CASE FOR GREEN POWER, AND: GLOBAL CORPORATE RENEWABLE ENERGY INDEX (CREX) SAN FRANCISCO, RENEWABLE ENERGY MARKETS CONFERENCE 16 NOVEMBER 2011 REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

2 GLOBAL ASSET FINANCING FOR NEW BUILD CLEAN ENERGY ASSETS, ($BN) Four quarter running average Note: Total values include estimates for undisclosed deals Source: Bloomberg New Energy Finance REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

3 CORPORATE PARTICIPATION IN RENEWABLE ENERGY: BUSINESS MODEL OPTIONS DESCRIPTION MODEL EXAMPLE Corporate sustainability REC procure ment Green power procure ment Integrated Company purchases RECs Company partakes in utility s green power offer Company provides siting, financing, buys power, retires RECs Siting Siting Siting Financing Financing Financing Power offtake REC offtake Power offtake REC offtake Power offtake REC offtake Utility service Investments Asset finance On-site PPA Company finances project (eg, debt, equity, tax equity) Company provides siting (eg, rooftop) and consumes power Siting Siting Financing Financing Power offtake REC offtake Power offtake REC offtake REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

4 TOP COMPANIES FOR RENEWABLE ENERGY PROCUREMENT (RANKED BY % RENEWABLE IN 2010) Basic materials Plum Creek Timber Newmont Mining (*) Praxair (*) Financial services Toronto Dominion Swiss Reinsurance Nordea Bank Communications News Corp Koninklijke KPN NV Nokia Industrial Vestas Wind Systems Koninklijke Philips Deutsche Post Consumer goods Kohl s Whole Foods Market Starbucks Technology Adobe Systems Intel Dell Energy and utilities CLP Holdings Origin Energy AGL Energy Source: Bloomberg New Energy Finance, EPA, CDP (*) Based on 2009 results. For 2010, only one company in this sector (Plum Creek) submitted data. REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

5 RENEWABLE ENERGY PROCUREMENT BY SECTOR (AVERAGE %) 30% 25% 20% 15% 10% 5% 0% Communications Consumer Financial Industrial Technology Note: Analysis only reflects results from companies who responded to both the 2009 and the 2010 iterations of the survey, to enable proper comparison across years. RE / total electricity (%) in 2009 RE / total electricity (%) in 2010 Source: Bloomberg New Energy Finance, EPA, CDP REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

6 RENEWABLE ENERGY PROCUREMENT BY REGION Weighted average renewable energy % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Number of companies North America Europe Asia & Oceania RE / electricity consumption (%) in 2009 RE / electricity consumption (%) in 2010 # of companies in 2009 & 2010 Note: Analysis only reflects results from companies who responded to both the 2009 and the 2010 iterations of the survey, to enable proper comparison across years. Source: Bloomberg New Energy Finance, EPA, CDP REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

7 RENEWABLE ENERGY PROCUREMENT BY SECTOR AND TECHNOLOGY TYPE (VOLUME WEIGHTED %), % 90% 80% 70% 60% 50% 40% 30% Other/Unknown National blend Waste energy Hydro 20% 10% 0% Communications Consumer Financial Industrial Technology Wind Solar Geo-thermal Biomass/ biofuel Note: Volume weighted by GWh of renewable energy procurement Source: Bloomberg New Energy Finance, EPA, CDP REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

8 COMPARISON OF PROCUREMENT PREFERENCES, (% OF TOTAL PROCUREMENT) 90% 80% 70% 60% 50% 40% % % 10% 0% Carbon Offsets Direct Investment Green Pricing RECs Source: Bloomberg New Energy Finance, EPA REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

9 TRACKING THE INDEX ON BLOOMBERG: CREX<GO> REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

10 PERFORMANCE OF CREX AGAINST BENCHMARK INDEX (CUMULATIVE % RETURN ON PORTFOLIO) 40% 30% 20% CREX 10% 0% -10% -20% MSCI World Index -30% -40% -50% -60% Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Note: MSCI World Index is commonly used benchmark for global stock funds, comprised of more than 1,600 companies in 24 developed markets. CREX is comprised of 102 companies who provided survey responses with 2010 data. Note that while this survey has treated Motorola as one entity (to enable comparison between 2009 and 2010), the index separates Motorola into its two publicly traded entities: Motorola Mobility and Motorola Solutions. CREX assigns equal weighting to each company. Performance is for total returns. Source: Bloomberg New Energy Finance, MSCI Inc REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

11 TAX EQUITY STRUCTURES: PARTNERSHIP FLIP MODEL (10-YEAR FLIP YIELD CONTINGENT) Pre-flip Post-flip Lender Lender Loan Interest payments sources of funding Interest payments sources of funding Developer Tax equity investor Developer Tax equity investor 1% of tax credits; 64.25% of cash flows in yrs 1-5; 40% of cash flows in yrs 6-10 Project company (100% equity) 99% of tax credits; 35.75% of cash flows in yrs 1-5; 60% of cash flows in yrs % cash flows; 1% of tax credits Project company (100% equity) 5% cash flows; 99% of tax credits 100% cash flows 100% cash flows Power and REC sales ITC/PTC Power and REC sales ITC/PTC 100% tax credits MACRS 100% tax credits MACRS sources of revenue sources of tax credits sources of revenue sources of tax credits Source: Bloomberg New Energy Finance REM CONFERENCE: CORPORATE RENEWABLE ENERGY INDEX (CREX) NOV

12 THANK YOU MICHEL DICAPUA, MARKETS Renewable Energy Carbon Markets Energy Smart Technologies Renewable Energy Certificates Carbon Capture & Storage Power Water Nuclear SERVICES Insight: research, analysis & forecasting Industry Intelligence: data & analytics News & Briefing: daily, weekly & monthly Applied Research: custom research & data mining Knowledge Services: Summit, Leadership Forums, Executive Briefings & workshops Subscription-based news, data and analysis to support your decisions in clean energy, power and water and the carbon markets