Renewable Energy Markets: 

Investment & Policy Trends

Sponsored by the:

U.S. House Renewable Energy & Energy Efficiency Caucus

October 9, 2012

Event Collaborators

2012 BCSE Members

BCSE 20‐year Anniversary Sponsors

Follow BCSE events on Twitter:

@BCSECleanEnergy

Trends and Barriers to Increased Deployment and Investment: Wind

Jack Thirolf, Regulatory Affairs Enel Green Power North America, Inc.October 9, 2012, Washington, DC

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EGP North AmericaDiversified portfolio across the US and Canada

Technology Capacity

Hydro 313 MW

Wind 830 MW

Geothermal 47 MW

Biomass 21 MW

Solar 26 MW

Tot 1,237 MW

• Presence in 21 U.S. States and 3 Canadian Provinces

• More than 90 plants in operation with a total installed capacity exceeding 1.2 GW

• Offices in Andover, Massachusetts (Headquarters), Washington, D.C., San Diego, California, Reno, Nevada, and Montreal, Canada.

• More than 320 people employed in North America

Balanced long-term presence across all main renewable technologies in the United States and Canada

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North American Presence

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Name: Smoky HillsLocation: Ellsworth & Lincoln counties, Kansas COD: 2008Size: 250 MW (largest wind project in Kansas) Machine: 56 Vestas V80, 1.8 MW (Smoky I), 99 GE 1.5 MW (Smoky II)

Name: Smoky HillsLocation: Ellsworth & Lincoln counties, KansasCOD: 2008Size: 250 MW (largest wind project in Kansas)Machine: 56 Vestas V80, 1.8 MW (Smoky I), 99 GE 1.5 MW (Smoky II)

Name: SnyderLocation: Hermleigh, TX COD: 2007Size: 63 MWMachine: 21 Vestas V90, 3MW turbines (345 ft) Households: 17,000

Name: SnyderLocation: Hermleigh, TX COD: 2007Size: 63 MWMachine: 21 Vestas V90, 3MW turbines (345 ft)Households: 17,000

Name: Caney RiverLocation: Elk County, KansasSize: 200 MW Machine: 111 turbines (V-90 Vestas; 1.8MW)COD: December 2011Off-taker: Tennessee Valley Authority (TVA)Customers: 60,000 households

Name: Caney RiverLocation: Elk County, KansasSize: 200 MW Machine: 111 turbines (V-90 Vestas; 1.8MW)COD: December 2011Off-taker: Tennessee Valley Authority (TVA)Customers: 60,000 households

Wind Projects under construction

in 2012

Name: Chisholm ViewSize: 235 MWLocation: Garfield and Grant counties, Oklahoma COD: Q4 2012

Name: Prairie RoseSize: 200 MWLocation: Rock county, Minnesota COD: Q4 2012

Wind Projects under construction

in 2012

Name: Chisholm ViewSize: 235 MWLocation: Garfield and Grant counties, OklahomaCOD: Q4 2012

Name: Prairie RoseSize: 200 MWLocation: Rock county, MinnesotaCOD: Q4 2012

Name: Rocky RidgeLocation: Kiowa and Washita Counties, Oklahoma Size: 148.80 MWMachine: 93 turbines of 1.6 MW each COD: July 2012

Name: Rocky RidgeLocation: Kiowa and Washita Counties, OklahomaSize: 148.80 MWMachine: 93 turbines of 1.6 MW eachCOD: July 2012

Key Wind Projects: North America

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10 Years of Growth

1. Source: U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, 2011 Wind Technologies Market Report, August 2012.

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Short-Term: Uncertainty Hurts

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1. Source: AWEA, EIA.

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Long Term: Growth and Policy

• State RPS projected to create 4 to 5 GW/year of demand for all renewables for 10 years

• Future tax policy: how are renewables treated in comprehensive tax reform—open question

• LCOE: what happens to natural gas prices, further innovation in wind turbine design (lower costs, increased performance)

• Electricity demand: how do efficiency gains, economic growth rate effect demand for power

• Transmission and VER integration: will renewables have an easier or tougher time coming onto the grid

1. Source: U.S. Energy Information Administration, Annual Energy Outlook 2012, June 2012.

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Contact

Jack Thirolf Associate for Regulatory Affairs Enel Green Power North America, Inc. Email: jack.thirolf@enel.com Phone: 202-609-7799

First Solar Confidential & Proprietary  | © Copyright 2012

BCSE Congressional BriefingKathy Weiss, VP‐Government Affairs, First Solar

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Global PV Demand Drivers

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Power Plant OverviewPV Module 

Arrays Inverters

TransformersCombiner

Boxes

Photovoltaic 

Combining 

Switchgear Substation

Gen Tie‐line Power Grid

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PV ModulePV Module 

Arrays • Converts sunlight into electricity (DC power)

• Manufactured by First Solar

• Installed on string in series

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Combiner Box

Combiner

Boxes• Aggregates DC wiring from multiple strings

• Provides single output to inverter

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Inverter

Inverters

• Converts DC power to AC (low voltage)

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Transformer

Transformers

• Increases low AC voltage to medium 

AC voltage 

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Photovoltaic Combining Switchgear (PVCS)

Photovoltaic 

Combining 

Switchgear 

• Aggregates AC power from multiple 

transformers

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Substation and Generator Tie‐line 

Substation

Gen Tie‐line Power Grid

• Provides plant controls, disconnects, and 

step up transformer

• Delivers electricity to the grid

Sempra – El Dorado13MW (DC)  |  2008

NRG –

Blythe26MW (DC)  |  2009 

Sempra –

Copper Mnt.58MW (DC)  |   2010

Enbridge – Sarnia97MW (DC)  |  2010

Southern / Turner –

Cimarron37MW (DC)  |  2010

Enbridge –

Tilbury6MW (DC)  |  2010

NRG – Santa Teresa23MW (DC)  |  2011

PNM – 5 Projects27MW (DC)  |  2011

APS – Paloma23MW (DC)  |  2011

Enbridge –

Amherstburg II19MW (DC)  |  2011

NextEra –

Moore26MW (DC)  |  2011

NextEra – Sombra26MW (DC)  |  2011

Enbridge –

Silver State N. 

63MW (DC)  |  2012

Completed Projects 474MW (DC) | September 2012

Constellation – St. Mary’s 

17MW (DC)  |  2012Verve/GE –

Greenough 

River 13MW (DC)  |  2012

NRG/MidAmerican –

Agua 

Caliente 410MW (DC)NRG –

Alpine85MW (DC)

MidAmerican – Topaz749MW (DC)

NRG – Avra Valley35MW (DC)

NextEra/GE–Desert Sunlight725MW (DC)

Exelon – AVSR304MW (DC)

Tenaska – ISECS172MW (DC)

Sempra –

Copper Mnt. II118MW (DC)

GE – Walpole27MW (DC)

GE –

Amherstburg I13MW (DC)

GE – Belmont27MW (DC)

In Construction 2,665 MW (DC) | September 2012

Pending bids…

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Awards and Recognition

Awarded By First Solar Honor PV Plant Year

Project Finance Project Finance Deal of the Year Desert Sunlight 2012

Power Intelligence Best Renewables Deal Desert Sunlight 2012

CLP Resources 2011 National Safety Winner 2012

Renewable Energy 

World.com Solar Project of the Year Agua Caliente 2012

Solar Power 

Generation USA PV Project of the Year Agua Caliente 2012

Power Magazine Renewable Top Plant Copper Mountain 2012

Power Magazine Renewable Top Plant Sarnia 2011

Renewable Energy 

World.com Solar Project of the Year Copper Mountain 2010

CanSIA Solar PV Project of the Year Sarnia 2010

Renewable Energy

World.comExcellence in Energy Awards—

Best Utility Scale Project Sarnia 2010

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First Solar Confidential & Proprietary  | © Copyright 2012

Solar Industry Growth and Policy Drivers

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Stable Tax Policy Has Resulted in Strong Growth

• PV Installations Grew by 116% in Q2 2012 over Q2 2011

ITC Years:CAGR = 77%30% ITC

Enacted

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Job Creation and Increased Value

• The value of solar installations grew to $8.4 billion in 2011, up from $6 billion in 2010

• Solar employment more than doubled from 2009 to 2011, topping 100,000 American 

workers

SEIA/GTM Research U.S. Solar Market Insight: Year In Review 

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U.S. Market To Continue Strong Growth

• U.S. PV Market Forecast to Install Over 3.2 GW in 2012

Source: SEIA/GTM Research “U.S. Solar Market Insight: Q2 2012”

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PV System Prices Falling Dramatically

Source: SEIA/GTM Research “U.S. Solar Market Insight: Q2 2012”

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Conclusions

Diverse set of global PV demand drivers.

Technology advancement and adaptation continue to drive down the cost of solar electricity.

All energy is subsidized – government has been providing policy support for traditional fuels for decades.

In a relatively short period of time, solar support policies, including the solar investment tax credit and the loan guarantee program, are yielding the desired results.

Tax and regulatory policy that promotes access to a diverse and abundant supply of clean energy is in the national interest.

SOLAR POWER: MAINSTREAM ENERGY SOLUTION

Stationary Fuel Cell Power

Renewable Energy Markets  Investment & Policy Trends

Washington, DC

October 9, 2012

Integrated Fuel Cell Company

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1.4 MW plant at a municipal building

2.4 MW plant owned by an independent

power producer

600 kW plant at a food processor

11.2 MW plant – largest fuel cell park

in the world

~180 MW installed and in backlog plus

120 MW MOA

Over 80 Direct FuelCell®

plants generating power at more than 50 sites globally

Providing:• On-site power• Utility grid support

Manufacture Sell (direct & via partners) Install Services

Delivering Ultra-clean Baseload Distributed Generation Globally

Growing Market Presence

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Application Examples

1.4 MW at a municipal building, CA

2.4 MW plant owned by an Independent power producer in S Korea

600 kW plant Gills Onion Food Processor

11.2 MW plant in S. Korea- largest fuel cell power plant in the world

Natural Gas

Renewable Biogas

1.2 MW DFC1500 Turlock Irrigation District

Wastewater Treatment

900kW Tulare Wastewater Treatment Plant

DFC Powerplants have been supplied commercially since 2003 for 

clean natural gas and biogas applications

Stationary Fuel Cell Technology

US Technology  ‐ Developed with investment from US DOE, DOD and NASA and Private Capital

Hundreds of systems in operation worldwide

US Manufacturing Base and Supply chain in place

Designed to standards for Commercial, Industrial and Utility  duty

Commercial – Poised to be part of Mainstream Resources to serve the US Electricity Grid

Part of a Family of Technologies– Transportation ,Stationary and Backup Power, Electronics

• Fuel Cells for Electric Power generation are  cost Competitive with Renewables

• The Value is increasingly being recognized  outside

the US

• Fuel cells offer Best and Highest use of  Domestic Natural Gas and Renewable Fuels 

for power generation

Key Messages

1.

Recognize Economic Development Value – American Technology = 

American Jobs –

manufacturing plus installation offers 3.5x Job 

growth of just installation

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Reward the combination of efficiency and cleanliness and US 

Technology with incentives that motivate adoption

3.

Reward the ability to combine high efficiency and domestic fuels

(renewable and natural gas)

For Congress and National Policymakers

Summary

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Renewable Energy Markets Don WebbVoith HydroHYDRO

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Design, test, manufacture and installhydro electric generating equipment

Product provides:• Highly efficient & environmentally friendly

power production• Fast response time to electric grid demands• Quick recovery from blackouts

Voith Hydro

Headquarters for U.S. is in York, PA with 540 employees

Last month we celebrated 135 years in the hydrobusiness

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Trends in the hydro industry

Growing interest in low head hydro at existing dams• Only 3% of the over 80,000 dams in the

United States currently produce powerContinued modernization of existing plantsRenewed interest in pumped storage• Only large scale energy storage • Connection to wind & solar power

Environmental friendliness• Fish passage• Aeration

Development of ocean energy• Tidal• Wave

Hydropower accounts for 2/3 of United State’s renewable energy portfolio

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Barriers to deployment, federal policy issues Regulatory/Licensing Reform• Hydropower is subject to a long and complicated

regulatory approval process involving numerous federal and state resource agencies, local governments, tribes, NGOs, and the public

• A 2009 study said that with the right policies in place, the hydropower industry can create 1.4 million cumulative jobs by 2025

• Congress needs to reform and improve the licensing process to create more clean, renewable power and more American jobs

Federal Use of Hydropower• Hydropower is underutilized in the federal government’s efforts to expand renewable

energy

– Disappointing considering the vast untapped hydropower potential across the United States

– Moreover, the federal government is already highly involved in the production of hydropower (Army Corps, TVA, USBR, etc.); placing a priority on expanding production would ensure additional hydro resources come online

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Certainty• The hydropower industry is not reliant on federal tax credits and incentives

• However, hydropower is eligible for the Production Tax Credit (PTC), which is set to expire at the end of 2013

• Congress needs to decide whether it will extend the credit or not so developers have the certainty they need as they pursue new projects

Barriers to deployment, federal policy issues

Legislation• Legislation has been introduced in the House and Senate

that would streamline the regulatory process for small hydropower projects across the country

• The Hydropower Improvement Act, S. 629, passed the Senate Energy and Natural Resources Committee and the Hydropower Regulatory Efficiency Act, H.R. 5892 unanimously passed the House earlier this year

• Both of these bills take incremental – but important – steps to improve the regulatory process for hydropower and should be starting points for further discussions in the next Congress