/REBuyersAlliance #REBA17
Objectives
• Tounderstandthelatestdevelopmentsinthemarket•Continuetogrowourcommunityandfosterconnectionsbetweenallofyou
• Todevelopstrategiesandbuildcommitmenttoovercomemarketbarriersandgalvanizegreateraction
/REBuyersAlliance #REBA17
Whoisintheroom?
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Buyer Developer Serviceprovider Utility NGO/other
/REBuyersAlliance #REBA17
Thankyoutooursponsors
Terrawatt Sponsors
GigawattSponsors
MegawattSponsors
StateoftheMarketLilyDonge,BRC/RMILethaTawney,WRI18September,2017SantaClaraConventionCenter,SantaClara,CA
/REBuyersAlliance #REBA17
47corporationshavesigneddealstodateBuyer Capacity (MW)Google F500 1861Amazon F500 1135Apple F500 764Microsoft F500 463Walmart F500 387Anheuser-BuschInBev F500 372Equinix 330Facebook F500 274IKEA 263OwensCorning F500 250Kimberly Clark F500 245Mars 200DowChemical F500 200Switch 179T-Mobile 160KaiserPermanente 153Procter&Gamble F500 138Volkswagen 1303M F500 120GeneralMotors F500 114HPE F500 112DeAcero 110GeneralMills F500 100Johnson &Johnson F500 100
Buyer Capacity (MW)Target F500 100DigitalRealty 88USDelphiAutomotive 80Cummins F500 75Solvay 71Philips F500 70GoldmanSachs F500 68Salesforce F500 64JPMorgan F500 55IronMountain 52Corning F500 50BectonDickinson F500 30LockheedMartin F500 30Steelcase 25Yahoo 23PartnersHealthCare 22AveryDennison 20Bloomberg 20Cisco F500 20PayPal F500 15Aerojet Rocketdyne 12SCJohnson 11AkamaiTechnologies 7
/REBuyersAlliance #REBA17
13of15newbuyersin2017
Firsttimetransactor
*Signedmultipledealsin2017
Buyer Capacity (MW)Apple* F500 400Anheuser-BuschInBev* F500 372Kimberly Clark* F 500 245T-Mobile 216DeAcero 110Target F500 100GeneralMills F500 100Cummins F500 75Solvay 71GoldmanSachs F500 68JPMorgan F500 55Facebook F500 30PartnersHealthCare 22Paypal F500 15AkamaiTechnologies 7
/REBuyersAlliance #REBA17
44developershaveparticipatedtodateDeveloper #ofDeals Capacity (MW)NextEra 9 759EDFRenewableEnergy 7 731Invenergy 5 695MidAmericanEnergy 2 548RESAmericas 4 458Iberdrola Renewables 2 428EnelGreenPower 4 426ApexCleanEnergy 5 356FirstSolar 3 309EDPRenewables 5 296Avangrid Renewables 2 256LincolnCleanEnergy 2 253ChermacEnergy 1 239SunEdison 2 217BNBRenewableEnergy 1 200BordasWindEnergy 1 200Tradewind Energy 1 200TechrenSolarLLC 1 200EverPower 1 189E.ON 2 188CommunityEnergy 2 180CapitalPower 1 178
Buyer #ofDeals Capacity (MW)SunPower 6 178DukeEnergy 3 172PatternEnergyGroup 1 150MexicoPowerGroup 1 130PioneerGreenEnergy 1 116Sempra 1 110InfinityRenewables 2 107Alterra Power 1 103VirginiaSolarLLC 1 80NRG 2 75Origis Energy 1 72Dominion 1 71CypressCreekRenewables 1 61Constellation 1 42Akuo Energy 1 40Enbridge 1 40AffordableSolar 1 30NewJerseyResources 1 27WaldenGreenEnergy 1 22APS 1 15SiliconRanchCorporation 1 12SpartanRenewableEnergy 1 11
/REBuyersAlliance #REBA17
10of19newdevelopersin2017Developer #ofDeals Capacity (MW)Enel GreenPower 2 312Avangrid Renewables 2 256Iberdrola Renewables 1 220Techren SolarLLC 1 200Invenergy 1 125EDFRenewableEnergy 1 120Sempra 1 110InfinityRenewables 2 107RESAmericas 1 100EDPRenewables 1 75Dominion 1 71.4NextEra 1 68NRG 1 55AffordableSolar 1 30WaldenGreenEnergy 1 21.6APS 1 15
Firsttimetransactor
/REBuyersAlliance #REBA17
Pricesremainunpredictable
Source:SNL
$0$5$10$15$20$25$30$35$40$45$50
3/1/2014 6/1/2014 9/1/2014 12/1/2014 3/1/2015 6/1/2015 9/1/2015 12/1/2015 3/1/2016 6/1/2016 9/1/2016 12/1/2016 3/1/2017
AverageSPPpriceshavefallen~50%since2014
SPPSouthSPPNorth
SPPDay-AheadPrices,2014-2017
($/M
Wh)
2015 2016 2017
?PTC/ITC
/REBuyersAlliance #REBA17
Smallerdealssupport25%ofthemarket
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100%
2015 2016 2017
Transactionsunder40MW AverageannualMWcontribution
/REBuyersAlliance #REBA17
Solutionsforsmallerappetites
BenefitsforsellersBenefitsforbuyers
• Access to economies of scale, even if deal size is smaller
• Risk mitigation• More flexibility on tenor• Transaction simplification
• Access to more buyers• Investment-grade counterparty
Benefitsvarybyspecificaggregationsolution,butamongthemare:
/REBuyersAlliance #REBA17
Aggregateddealactivityinnext12months?
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70%
Minimal Moderate Extensive
Allocatio
nofvotes
Buyer Developer Serviceprovider Utility NGO/Other
/REBuyersAlliance #REBA17
Thetrendismovingupthesupplychain
Source: Walmart
• Goal<1Gigaton fromthesupplychainby2030
• Energy– keyareasupplierscanmakecommitments
• Supplierssettheirowngoalsandreportannually
ProjectGigaton - Walmart
/REBuyersAlliance #REBA17
WhathavebuyersdoneregardingScope3?1=nowork|5=executedtransactions
0%
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1 2 3 4 5
Allocatio
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Buyer Serviceprovider NGO/Other
/REBuyersAlliance #REBA17
WeAreStillIn
Sectors Total Metrics
States 9 TotalGDP:$6.2TrillionCitiesandCounties 238 Population:130millionHigherEducation 325 Enrollment FTE:4.2million
Endowment:$122BillionBusinessesandInvestors(35Fortune500entities)
1,728 TotalAnnualRevenue:$2.3TrillionTotalAssetsUnderManagement:$2.5TrillionTotalUSEmployees:4.8Million
TotalSignatories 2,300
/REBuyersAlliance #REBA17
Highprofile“RExits”
Microsoft:PugetSoundEnergyMGM:NevadaPower
1 https://www.greentechmedia.com/articles/read/How-MGM-Prepared-Itself-to-Leave-Nevadas-Biggest-Utility
• May2016,Nevada
• Seekingenergyindependenceandmorerenewables1
• MGMgoalis46%renewables– Nevada’sRenewableEnergyStandardrequires23%
• $87millionRExit fee
• MGMworkingwithTenaskatoprocure171MWtooperate
• April2017,Washingtonstate
• Seekingrenewableenergytomeetsustainabilitygoals
• RExit ~80%WAheadquartersenergyuse
• $24millionRExit fee
• Contributedtothecreationofagreentariff,andalreadyattractedStarbucksandREI
/REBuyersAlliance #REBA17Source:2016,USEnergyInformationAdministration(EIA),BureauofEconomicAnalysis,BloombergTerminal
Changefrom
1990
Economicgrowthnolongerdrivesenergydemand
USGDP&PrimaryEnergyConsumption(indexed)
Thereisnogrowthindemandoverall
/REBuyersAlliance #REBA17Source:EIAAnnualEnergyOutlook2017
GrowthingasandREoutstripsthefallincoal–exports?
EIAforecasts20%productionincrease
/REBuyersAlliance #REBA17Source:BNEFSustainableEnergyinAmericaFACTBOOK2017&https://www.bnef.com/core/insights/15860
So… lowprices!(andunderusedassets)
/REBuyersAlliance #REBA17
1 Translatingrenewableenergyprocurementintocarbonimpact2 Whatisneededtobuildabuyer’sbusinesscasefortransactions?3 Exchange-tradedrenewablesinstruments4 Post-closemanagementbestpractices5 Makingavoidedcoststransparentinregulatedterritories6 Whyarebuyersexitingregulatingutilities?7 100%Renewable energy goalsasthegridgreens8 Therenewablethermal opportunity9 Infrastructureprojectsasnewoptions10 Pros/consof beingataxequityinvestor11 Canstoragehelpeliminatecongestion?12 Accounting/reportingrenewableenergyclaims13 Needsofdatacenter stakeholders
Audiencequestion:votingontopics
Whatarethethreemostimportantbarrierstoaddress?
/REBuyersAlliance #REBA17
Thethreemostimportantbarriers?
0 10 20 30 40 50 60 70 80 90
Exchange-tradedrenewablesinstrumentsPost-closemanagementbestpracticesInfrastructureprojectsasnewoptionsCanstoragehelpeliminatecongestion?
NeedsofdatacenterstakeholdersWhyarebuyersexitingregulatingutilities?
Pros/consofbeingataxequityinvestorTherenewablethermalopportunity
Accounting/reportingrenewableenergyclaimsWhatisneededtobuildabuyer'sbusinesscasefor…
100%renewableenergygoalsasthegridgreensMakingavoidedcoststransparentinregulatedterritories
Translatingrenewableenergyprocurementintocarbonimpact
Buyer Developer Serviceprovider Utility NGO/Other
/REBuyersAlliance #REBA17
Buyers’threemostimportantbarriers?
0 5 10 15 20 25 30
Exchange-tradedrenewablesinstrumentsPost-closemanagementbestpracticesInfrastructureprojectsasnewoptionsCanstoragehelpeliminatecongestion?
NeedsofdatacenterstakeholdersWhyarebuyersexitingregulatingutilities?
Pros/consofbeingataxequityinvestorTherenewablethermalopportunity
Accounting/reportingrenewableenergyclaimsWhatisneededtobuildabuyer'sbusinesscasefor…
100%renewableenergygoalsasthegridgreensMakingavoidedcoststransparentinregulatedterritories
Translatingrenewableenergyprocurementintocarbonimpact
Buyer
/REBuyersAlliance #REBA17
Developers’threemostimportantbarriers?
0 2 4 6 8 10 12 14 16 18 20
Exchange-tradedrenewablesinstrumentsPost-closemanagementbestpracticesInfrastructureprojectsasnewoptionsCanstoragehelpeliminatecongestion?
NeedsofdatacenterstakeholdersWhyarebuyersexitingregulatingutilities?
Pros/consofbeingataxequityinvestorTherenewablethermalopportunity
Accounting/reportingrenewableenergyclaimsWhatisneededtobuildabuyer'sbusinesscasefor…
100%renewableenergygoalsasthegridgreensMakingavoidedcoststransparentinregulatedterritories
Translatingrenewableenergyprocurementintocarbonimpact
Developer
/REBuyersAlliance #REBA17
Serviceproviders’topthreebarriers?
0 2 4 6 8 10 12 14
Exchange-tradedrenewablesinstrumentsPost-closemanagementbestpracticesInfrastructureprojectsasnewoptionsCanstoragehelpeliminatecongestion?
NeedsofdatacenterstakeholdersWhyarebuyersexitingregulatingutilities?
Pros/consofbeingataxequityinvestorTherenewablethermalopportunity
Accounting/reportingrenewableenergyclaimsWhatisneededtobuildabuyer'sbusinesscasefor…
100%renewableenergygoalsasthegridgreensMakingavoidedcoststransparentinregulatedterritories
Translatingrenewableenergyprocurementintocarbonimpact
Serviceprovider
/REBuyersAlliance #REBA17
SolutionSessionTracksasaresultofvoting
AB
Advancingpolicysolutions
Advancingutilityconversations(includingavoidedcosttransparency
C Internationalsupplychain
EF
TranslatingREprocurementtocarbonimpact
G100%REgoalsasthegridgreens
D Buildingthebuyerbusinesscasefortransactions
Renewablethermalopportunity
/REBuyersAlliance #REBA17
WhatisREBA
•Vision• Asustainableglobaleconomypoweredbyrenewableenergy
•Mission• REBAtransformsenergymarketsbyhelpingmeetandgrowdemandforrenewablepower.REBAisledbyfournon-profitorganizations
• REBAbringsdeepexpertiseandextensivenetworkstohelpmakethetransitiontoacleanenergyeconomy
• REBAseekstosimplifytheaccesstorenewableenergyandcontributetoprotectingourenvironmentforfuturegenerations
/REBuyersAlliance #REBA17
WhyREBA
•REBAvalueproposition:1. Simplify,accelerateandtransformtransactions2. Providemechanismsandresourcestoeffectivelyengagethemarket3. Accomplishmorebyworkingtogether
•Ourapproachtolarge-scaletransactions:1. Simplifyrenewableenergyprocurementincompetitivemarkets2. Createnewoptionsforprocurementinregulatedterritories
/REBuyersAlliance #REBA17
REBApartnersandkeyinitiatives
BSR’sFutureofInternetPowerinitiativespecializesinincreasingtheuseofrenewableenergytopowerdatacenters
BUSINESS RENEWABLES CENTER
RMI’sBusinessRenewablesCenter provideseducationandtransactionaltoolstooptimizetheprocurementprocesses
WRI’sElectricityInitiativeconvenesanaction-orientedgroupofmemberswithutilitiestogloballyexpandcleanenergy
WWF’sRenewableEnergyBuyers’Principles,withWRI,aggregatescorporatedemand,andarticulatesthebuyers’needstothemarket
/REBuyersAlliance #REBA17
REBAareasoffocus
Improvingtransparency
Encouraginggreentariffs
Creatingintegratedvalue
Linkingbuyersefficientlywithpolicyefforts
Energystorage
Energy-intensivebusinesses
Reportinganddisclosure
Infrastructureopportunities
Renewablethermal
Additionality
Engagingglobalsupplychains
Telluswhereyouhaveneeds
Aggregation
Location
Buildingthebusinesscase
I II III IVWholesaleMarkets InternationalMarketsCross-MarketRegulatedMarkets
CapacityBuilding
AdditionalpartnersTools,resources,software Buyereducationandawareness
/REBuyersAlliance #REBA17
VotingResultsfrom1st DayBreakouts
0 10 20 30 40 50 60 70 80 90
Exchange-tradedrenewablesinstrumentsPost-closemanagementbestpracticesInfrastructureprojectsasnewoptionsCanstoragehelpeliminatecongestion?
NeedsofdatacenterstakeholdersWhyarebuyersexitingregulatingutilities?
Pros/consofbeingataxequityinvestorTherenewablethermalopportunity
Accounting/reportingrenewableenergyclaimsWhatisneededtobuildabuyer'sbusinesscasefor…
100%renewableenergygoalsasthegridgreensMakingavoidedcoststransparentinregulatedterritories
Translatingrenewableenergyprocurementintocarbonimpact
Buyer Developer Serviceprovider Utility NGO/Other
/REBuyersAlliance #REBA17
Audiencequestion:solutions
Whichsessiondidyoujustattend?
AB
Advancingpolicysolutions
Advancingutilityconversations
C Internationalsupplychain
EF
TranslatingREprocurementtocarbonimpact
G100%REgoalsasthegridgreens
D Buildingthebuyerbusinesscasefortransactions
Renewablethermalopportunity
/REBuyersAlliance #REBA17
Solutionsessionpopularity
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Internationalsupplychain
Advancingpolicysolutions
Renewablethermalopportunity
100%REgoalsasthegridgreens
REprocurementtocarbonimpact
Advancingutilityconversations
Businesscasefortransactions
Buyer Developer Serviceprovider Utility NGO/Other
/REBuyersAlliance #REBA17
Solutionsessionpopularity:buyers
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Internationalsupplychain
Advancingpolicysolutions
Renewablethermalopportunity
100%REgoalsasthegridgreens
REprocurementtocarbonimpact
Advancingutilityconversations
Businesscasefortransactions
Buyer
/REBuyersAlliance #REBA17
Solutionsessionpopularity:developers
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45%
Internationalsupplychain
Advancingpolicysolutions
Renewablethermalopportunity
100%REgoalsasthegridgreens
REprocurementtocarbonimpact
Advancingutilityconversations
Businesscasefortransactions
Developer
/REBuyersAlliance #REBA17
Solutionsessionpopularity:serviceproviders
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40%
Internationalsupplychain
Advancingpolicysolutions
Renewablethermalopportunity
100%REgoalsasthegridgreens
REprocurementtocarbonimpact
Advancingutilityconversations
Businesscasefortransactions
Serviceprovider
/REBuyersAlliance #REBA17
Audiencequestion:solutions
Wasthesolutionsessionyouattendedagooduseofyourtime?
1 10Notgreat ExtremelygooduseScale
/REBuyersAlliance #REBA17
Solutionsessions:agooduseoftime?
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1 2 3 4 5 6 7 8 9 10Levelofuse(1=nouseatall,10=extremelyuseful)
Buyer Developer Serviceprovider Utility NGO/Other
/REBuyersAlliance #REBA17
Solutionsessions:agooduseoftime?
Session Average Count100%REgoalsasthegridgreens 7.8 8Advancingpolicysolutions 7.7 3Advancingutilityconversations 8.0 13Businesscasefortransactions 6.9 19Internationalsupplychain 8.3 3REprocurementtocarbonimpact 8.2 10Renewablethermalopportunity 7.7 6Overall 7.6 62
0
5
10
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25
1 2 3 4 5 6 7 8 9 10
100%REgoalsasthegridgreens Advancingpolicysolutions Advancingutilityconversations Businesscasefortransactions
Internationalsupplychain REprocurementtocarbonimpact Renewablethermalopportunity