joel conkling - clean energy and sustainability

7/31/2019 Joel Conkling - Clean Energy and Sustainability

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Google Confidential and ProprietaryGoogle Confidential and Proprietary

Clean Energy & Sustainability

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Google Confidential and Proprietary 2Source: http://www.cashedge.com/pressRoom/news_070104_bst.html

I think its important for us to have asustainable business and I thinkthats very achievable.

Larry PageCEO, Google Inc.


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Google Confidential and Proprietary

Google Confidential and Proprietary 3

Googles approach


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Google Confidential and Proprietary 4

Building an efficient clean energy future.


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Renewable Energy Investments

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How much has Google invested so far?

Goals

Financial returns Innovation Large scale impact Encourage other companies

$915M+ Portfolio

1.8 GW of projects 350,000 homes


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What renewable investments has Google made?

$94MRecurrent Energy

solar PV

$168MBrightSource Ivanpahsolar power tower

$355MClean Power Finance &

Solar City (rooftop solar)

$5MGerman Solar

PV plant

$157MAlta Wind

Projects IV & V

$39MPeace Garden

Wind farms (ND)

$100MShepherds Flat

Wind Farm

Atlantic WindConnection (offshore

transmissionbackbone)

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Why is Google here at the Clean Energy Forum?

Google is expanding its renewable investment efforts outside of U.S.borders

Optimistic about the growth potential in Asia

15 offices and thousands of employees in the region

Economic growth and growing demand for energy helps set thestage for attractive investment opportunities

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What lessons does the U.S. solar energy markethave to offer?

Deal structuring can be a powerful tool to mitigate risks and attractinvestors

Many small power purchasers (e.g., homeowners) can make up alow risk investment

Aggregating lots of small systems can bring capacity online fasterthan utility scale systems can be completed

Renewable energy customers show a strong preference to payingover time instead of up front

Distributed solar can alleviate areas where the electricity grid isfacing constraints

Consistent and reliable policy support are critical for helping the

renewable industry grow9



Whats an example of an innovative deal structure?

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Residential Customers

Energy production OriginationInstallation

O&MAdmin / billing

Monthlyenergy

payments

Monthlylease

payments

System cost

US$280 millioninvestment in residentialPV systems

Deal Summary

Customer

Renewable energywhile saving moneyfrom Day 1

SolarCity

Capital to expandtheir business

Google

Owner of PV system Predictable lease

payments

SolarCity in firstloss position



What are renewable investors considering in theirassessments of the opportunity to invest in Asia?

Fundamentals

Economic growth

Electricity supply and demand

Cost of supply compared to alternatives

Stability

Regulatory support

Political stability

Sustainability and fairness

Win-win projects

Transparency

Partners

Strong track records and outlook

Alignment of vision and goals

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Conclusions

Tremendous growth potential for solar energy in Asia

Grid parity

Energy access

Distributed solar could be larger (faster) than centralized, utility scalesolar

Building on learnings in other markets could accelerate the growth ofsolar in Asia

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joel conkling - clean energy and sustainability

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