glosho'14: company showcase - hecate energy
TRANSCRIPT
Company and Project
Development Overview
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Hecate: /hek uh tee/ - The Greek goddess of the solar system, sub-surface earth and the oceans. She is represented as a three-faceted goddess that evokes the crossroads. Hecate Energy’s logo captures this essence both in design and color, and reflects our mission of developing power generation resources at the crossroads of traditional natural gas power plants, proven solar and wind technology, and emerging energy storage solutions.
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Agenda
Topic Page
Company Overview 4
Project Development Overview 8
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Hecate Energy Qualifications Overview
Hecate Energy’s management team has worked together for more than 15 years leading valuation,
acquisition, repowering, development, financing and operations involving more than 100,000 MW of
energy projects.
Hecate Energy’s leadership team previously held executive roles to oversee the operational, strategic,
and M&A activities of leading power companies Sithe Energies and K-Road Power ($4.8B and $3.0B
market caps, respectively) and held executive roles at DTE Energy and Peoples Energy.
The management team of Hecate Energy grew its previous solar power plant development company from
0 MW to over 700 MWs within three years (from 2009-2012), with over 400 MW under contract, making it
the fourth largest PV solar power plant developer in the United States based on MW.
The management team of Hecate Energy grew its previous solar power plant development company from
0 MW to over 700 MW in three years (from 2009-2012), with over 400 MW under contract, making it the
fourth largest PV solar power plant developer in the United States based on MW under contract.
Since its founding in 2012, Hecate Energy has grown its active project portfolio from 0 MW to over 1,400
MW of solar PV and wind projects in the U.S. and internationally.
June 2014: Hecate Energy was awarded 190MW through the Beacon Bundled RFP with LADWP.
July 2014: Hecate Energy was awarded 14.8MW of energy storage (battery) projects with Ontario's
Independent Electricity System Operator (IESO).
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Hecate Energy US Renewable Portfolio
US Renewable Portfolio Snapshot
Project Location MW Technology Status (Potential) Revenue Source
Forbes Street I* East Providence, RI 3 PV-fixed tilt Under Construction PPA-National Grid
Old Alabama Road GA 1 PV-fixed tilt Under Construction PPA Georgia Power
Rome Highway GA 1 PV-fixed tilt Under Construction PPA Georgia Power
Monson* Monson, MA 6 PV-fixed tilt Developed Net Metering/SREC
Forbes Street II* East Providence, RI 5 PV-fixed tilt Under Development TBD
Granby 1 MA 3 PV Under Development Net Metering Contract
Granby 2 MA 3 PV Under Development Net Metering Contract
Turning Point Noble County, OH 50 PV Under Development TBD
Cherrydale VA 17 PV Under Development TBD
Clark County VA 20 PV Under Development TBD
LADWP FiT 50 Los Angeles, CA 28 PV-fixed tilt PPA Signed PPA-LADWP
LADWP Beacon Mojave, CA 162 PV-tracking PPA Signed PPA-LADWP
Sub-Total ~300
* Owned by Hecate Energy affiliate, Hecate NE Solar. Project sold.
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Hecate Energy is currently developing wind and solar projects around the globe.
Extensive relationships with multi-lateral institutions, global engineering and construction
firms, and international investors allow Hecate Energy to develop successful projects.
Hecate Energy International Projects
Hecate’s International Development Portfolio
Project Location MW Technology Status (Potential) Revenue Source
Pakistan Solar I Karachi, Pakistan 50 PV Signed LOI PPA/REC-WAPDA / SG**
Pakistan Solar II Karachi, Pakistan 150 PV Signed LOI PPA/REC-WAPDA / SG**
Bab il Hawa Irbid, Jordan 45 Wind Under Development, MOU PPA/REC-NEPCO / SG**
Ma'an Solar Ma'an, Jordan 55 PV Under Negotiation PPA/REC-NEPCO / SG**
Nairobi Solar Nairobi, Kenya 40 PV Under Negotiation PPA/REC-KP / SG**
Rajasthan Solar Rajasthan, India 50 PV Under PPA PPA/REC-Mattel Processing
Rajasthan Solar Rajasthan, India 450 PV Under Negotiation PPA/REC-Mattel Processing
Mexico Solar I Sonora, Mexico 30 PV Under Negotiation PPA/REC-Confidential
Mexico Solar II Guadalajara, Mexico 30 PV Under Negotiation PPA/REC-Confidential
Ecuador Ecuador 50 PV Under Negotiation PPA
Brazil Solar I Cerá & Bahía, Brazil 90 PV Under Negotiation PPA/REC-Electrobras
Chile Solar I Atacama Desert, Chile 280 PV Under Negotiation PPA/REC-Confidential
Sub-Total 1,320
** SG - Sovereign Guarantee
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Agenda
Topic Page
Company Overview 4
Project Development Overview 8
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Jump On In - It Looks Mighty Fun!
High Growth Industry
Low Barriers to Entry
High Fragmentation
Numerous Success Stories
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Just Because You Can, Doesn’t Mean You Should
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Site control is usually a critical first step for any project.
That cost is relatively low.
And then you typically want to file your Feasibility Study for
interconnection.
That is also a relatively low cost item.
The Initial Investment in a Solar Project is Relatively Low
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So What Do You Get for Your Initial $20,000 Investment?
The right to spend another $1,000,000!
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
$700,000
$750,000
$800,000
$850,000
$900,000
$950,000
$1,000,000
$1,050,000
$1,100,000
$1,150,000
$1,200,000
$1,250,000
$1,300,000
$1,350,000Cumulative Development Spending
Where’s my
Construction
Financing?
Where’s my PPA?
Where’s my
Permanent
Financing?
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The land owner.
The ISO or utility for interconnection.
The municipality for zoning (which often requires engineering drawings
and technology selection).
The utility and public utility commission for revenue contracts.
The Timeline is Not In Your Control
Who controls the timeline?
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Capacity.
Price.
Land usage.
Percent of output eligible for SRECs.
Equipment requirements.
Local labor and content.
Regulations Are Not in Your Control and They Change
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How to Create Value
Origination
Early Stage
Mid-Stage
Late-Stage
COD
Originate your own projects.
Have a strong network to bring
other opportunities into the
funnel.
Conduct appropriate analysis to
rapidly screen opportunities.
Calibrate against your strategy
and capital.
Feed your Funnel
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How to Create Value
Even a 70% non-failure rate is too low.
Mitigate risks along the way.
Solidify the upside.
Focus on asset optimization.
Know when to sell. Fundamentally sound projects have value at any
point in the development lifecycle.
Reshape Your Funnel
Origination
On Ramp: Opportunistic Project Purchase and Partnerships
Late-Stage
Mid-Stage
Early-Stage
Off-Ramp: Monetization, Regulatory Change, Miss-timed Cycle
Construction Operation
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Return
There are many ways to bring capital into a company: self-fund, project finance, portfolio
finance, corporate finance.
There are many potential types of investors: private equity, family offices, vendors, utilities.
Have a clear idea of how you are planning to use capital. Risk and return vary drastically
across the development lifecycle.
Mid-Stage
DevelopmentLate Stage
Development
Operations
Early Stage
Development
Investment Opportunity
Deploy capital to develop renewable power
plants.
Deploy capital to purchase partially developed
projects where value can be added.
Deploy capital as Owner’s Equity in projects or
as Project Equity in projects.
How to Raise Capital
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Preston Schultz
Development Manager
115 Rosa Parks Blvd.
Nashville, Tennessee 37203
USA
415 999 1427 (mobile)
Contact Information
