Bloomberg –Strategies for Renewable Energy Procurement

Michael Barry LEED AP ID&C, CEPHead of Sustainable Business Operationsmbarry9@bloomberg.net

October 17, 2016

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Our sustainability effort is integrated into our business and focused on 3 key areas

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Energy use in our offices and data centers is our largest driver of carbon emissions, and our biggest opportunity for reductionEnergy usage per employee has declined by 27% since 2007

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Energy costs can be volatile, Bloomberg actively manages our energy expenses

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Bloomberg Sustainability researches clean energy opportunities and works with colleagues in other departments for buy-in

Project Champion – Sustainability

Get resources, tell the story and EDUCATE!

Key Task: OBTAIN HIGH LEVEL BUY-IN

Get all the right groups involved

Legal: Negotiate agreements

Accounting: Understand how to account for the transactions

Finance: Validate financial models

BNEF: Support as needed

Consultant: Outside expert

Facilities Management /Purchasing:

Understand impact of the transactions on utility spend

If project is on-site, coordinate construction

Internal Resourcesthere is likely to be a

steep learning curve

Experienced Corporates/NGOs: Learn from companies that have

completed deals. NGOs like RMI BRC have large knowledge base.

External Resourcescan be important to 1st

time buyer

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Bloomberg developed criteria to evaluate clean energy opportunities

ADDITIONALITY

FINANCIALS

LEADERSHIP

• Long term financing brings an “additional” renewable energy asset

onto the electric grid

• Reduce costs compared to traditional “brown” power contracts

• Lock in fixed costs for renewable energy

• Demonstrate that businesses can drive demand for clean energy – work

with RE100, RMI’s BRC and the Renewable Energy Buyers’ Principles to

spread this message

RISK• Bloomberg protected as much as possible from operational risks – we

only want financial risk

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As these are long term deals, it is vital to communicate the wide range of potential financial outcomes

Project champion needs to make sure relevant parties understand financial risks

inherent with these deals

Numbers are illustrative, but

demonstrate that various

forecasts and assumptions will

produce different results

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Bloomberg has set a goal of 100% renewables by 2025 (RE100); our immediate goal is 35% from renewables by 2020

Completed Projects5%

Signed PPAs Being Developed

17%

Projects in Various Planning Stages

17%

Non-Renewables61%

We expect to have 39% of

our energy from renewables

by 2020

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Our first onsite project was a 1.8 MW PV tracker in Princeton, NJ

1.8 MW Ground Mounted Tracking PV Solar PPA

Princeton, NJ – ~8 Acres

February 2012 Completion

~2.6 million kWh produced annually

2016 Utility savings – $100K

Expected 20 Year Utility savings – $4.5 M

SRECs owned by financier, Bloomberg backfills 10

To date we have completed two on-site solar projects using capital funding

40.6 KW Roof-Mounted PV Solar

San Francisco

June 2012 completion

~60,000 kWh produced annually

~173 MT CO2e saved/avoided over useful life

Expected 2016 Utility savings – $10K

184 KW Roof-Mounted PV Solar

NJ Maintenance Building

April 2016 completion

~195,000 kWh produced annually

~1,700 MT CO2e saved/avoided over 20 years

Estimated Year 1 utility savings – $22K

Projects are small capital investments with solid returns

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Our first off-site solar project was a 1.5 MW remote net meterPPA in Queens, NY

• First usage of the innovative solar remote

net metering policy to power a midtown

New York City skyscraper

• Largest remote net metered project in New

York City

• Largest solar project in Queens, NY

September 2015 completion

~1.7 million kWh produced annually

~4,900 MT CO2e saved/avoided over 10

year term

Expected 2016 Utility savings – $52K

Forecasted saving of $789k over the 10

year term

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In 2015 we signed the largest corporate renewable energy PPA on record in the state of New York – 20 MW Wind Energy

Virtual PPA

Bloomberg pays a fixed price for the

electricity over the term of the

agreement, providing project with

revenue certainty

Bloomberg receives the floating market

price to offset current exposure

Based on forecasts, we expect to save

~$10 Million over the 20 Year

agreement

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BNEF Example of Typical Virtual PPA Structure

Thank you!

www.bloomberg.com/bcause