clean energy financing: where’s the money? growing chicago’s green energy economy university of...
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Clean Energy Financing: Where’s the Money? Growing Chicago’s Green Energy Economy
University Of Chicago Gleacher CenterMay 11, 2010
Michael EckhartPresident
American Council On Renewable Energy (ACORE)www.acore.org
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Contents
• ACORE• Investment and Finance Trends• Federal policy • Issues and Outlook
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ACORE’s 750 Organizational MembersAssembling All the Players Necessary to
Make Renewable Energy Successful in the U.S.
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ACORE’s Board of DirectorsCo-Chairs:
John Geesman, Former Commissioner, California Energy
Commission
Dan Reicher, Director, Climate Change and Energy Initiatives,
Directors:
Dan Adler, President, California Clean Energy Fund
Thomas Casten, Chairman, Recycled Energy Development
Aimee Christensen, consultant, Virgin Atlantic
Michael Eckhart, President, ACORE
Ira Ehrenpreis, General Partner, Technology Partners
Roger Feldman, Andrews Kurth LLC
Nancy Floyd, Managing Director, Nth Power
Bill Holmberg, Chairman, Biomass Coordinating Council
Mel Jones, President, Sterling Planet
Howard Learner, ED, Environmental Law & Policy Center
Jim McDermott, Managing Partner, US Renewables Group
Bruce Pasternack, Venture Partner, CMEA Ventures
Judy Siegel, President, Energy & Security Group
Michael Ware, Managing Director, Good Energies
Pat Wood, Principal, Wood Resources LLC and former Chairman,
FERC
ACORE Board of Directors, September 2006
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Policy Conference
“Phase II of Renewable Energy in America”
Cannon Caucus Room of the U.S. House of RepresentativesRecent: November 20, 2009
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RETECHRenewable Energy Technology
Conference & ExhibitionRecent: February 3-5, 2010 in Washington DC
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ACORE Leadership Council
• Chairmen
• CEO’s
• Presidents
• Managing Directors
• Managing Partners
• Government officials
• University Presidents
• Association Directors
• Nonprofit leaders
• Other leaders
2008 Leadership Dinner in the Library of Congress
Mission: to bring the nation’s renewable energy leaders together to collaborate and lead the success of renewable energy in America
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Finance ConferenceRenewable Energy Finance Forum–Wall Street
Produced with Euromoney at Waldorf-Astoria Hotel in New York City June 29-30, 2010
Also Produced as “REFF-West” in San Francisco, September 29-30, 2010
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US PREFU.S. Partnership for Renewable Energy
FinanceManaged by ACORE
Mission of US PREF:
• An experts group• Transaction professionals• Educate public officials• Explain the impacts of policy
Activities:
• Meetings in Washington• White papers• Special initiatives
Law Firms:
• Skadden, Arps• Troutman Sanders
Major Banks:• Bank of America Merrill Lynch• Citi • Deutsche Bank• GE Energy Financial Services• Morgan Stanley
Equity Investors:
• Hudson Clean Energy Partners• Madison Dearborn Partners• US Renewables Group• VantagePoint Venture Partners
Other Major Players:
• Google• Green Order• PWC• SolarCity
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U.S. VC/PE Investment in Renewable Energy
…but up again in 2010
Source: Bloomberg / New Energy Finance
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Public Market Investment in Renewable Energy
…but looking at a pipeline of IPOs in 2010
Source: Bloomberg / New Energy Finance
?
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M&A Activity in the U.S.But rapidly increasing in 2010…
Source: Bloomberg / New Energy Finance
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Renewable Energy Asset Financing Activity in the U.S.
And getting even more difficult in 2010…
Source: Bloomberg / New Energy Finance
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Project Acquisition Activity in the U.S.And continuing to increase in 2010…
Source: Bloomberg / New Energy Finance
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U.S. Federal Policy for Renewable Energy
1. In-Place Policy:– Federal tax incentives: PTC, ITC and MACRS
2. Temporary Federal Stimulus:– Cash grants in lieu of ITC and PTC– Advanced manufacturing tax credit– Loan guarantees– RD&D funding
3. Proposed initiatives:– National RES– CEDA/Green Bank– Transmission
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Stimulus Implementation
DOE’s Loan Guarantee Program• 1703 Innovative Loan Guarantee- $8.5 billion (Energy Policy Act 2005)• 1705 Temporary Loan Guarantee- $5.9 billion (Stimulus 2009)
]=
Date Recipient Amount Type of Project
7/2/09 Nordic Windpower $16 million Wind turbines assembly factory
7/2/09 Beacon Power $43 million Flywheel energy storage factory
9/4/09 Solyndra $535 million Innovative cylindrical PV panels
9/17/09 Ford Motor Company $5.9 billion Energy efficient models factory
9/22/09 Fisker Automotive $528.7 million Plug in hybrids
9/23/09 Tesla Motors $465 million Facility Model S sedan + battery packs
12/9/09 Red River Energy Prod $245 million Activated carbon (AC) facility
1/28/10 Nissan $1.4 billion Electric cars, battery packs
2/16/10 Georgia Power $8.33 billion 2 nuclear reactors
2/22/10 BrightSource Energy $1.37 billion 3 concentrated solar (CSP) power
3/5/10 First Wind- Kahuku $117 million 30 MW wind and battery storage
3/5/10 Sage Electrochromics $72 million SageGlass- energy saving window
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Issues and Outlook
• Renewable energy has weathered the storm of 2008-2009
• Immediate Challenges:– Maintaining strong and growing demand for RE– Charting the post-Stimulus era – Framework for scaling to $100B/yr and 25% by 2025– Competing with China
• National policy: are we still stuck in “more of everything” or can we really make the shift to sustainable energy?
– Climate policy – Renewable energy policy– Energy efficiency policy– National security policy (oil reduction) – Environmental policy (coal reduction) – Economic policy (green business and jobs)
• State-Level policy: can the states continue to lead? Yes
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Thank You
Vote Solar and
Vote Often
www.acore.orgwww.acore.org