V SEPA GREEN POWER PARTNERSHIP9 Aligning Green Power Partners with New Renewable Energy Projects Pilot Project Summary Project Name: SUSTAINABLE TEXAS Developer Name: GREEN POWER 4 TEXAS / Momentum Bay Contact Information: Mark Alan Robinson, mark@greenpower4texas.com Renewable Energy Type: Solar PV and possibly wind, as appropriate for sites Total Planned Megawatt (MW) Size: 16 to 20 replicable projects, each 1 MW to 9.99 MW to 49.99 MW (2013-2016; aiming for 1-2 projects live per quarter) Project Location: across Texas (except west Texas); prospective landowners' sites range from 5 to 4,000 acres with transmission; projects may feature specialty organic agriculture / cropland / ranchland and eco-tourism / interactive themed attractions about green energy / green jobs. Development order will depend upon incentives, PPA offtakers, marketing partners' target audiences, grid congestion, etc. Is the project permitted?: Not yet, but relatively short process compared with other generation types' and other states' timelines. If not, what is the permit status?: Could be as early as 4Q2012. Early stage of all developments, since depressed power prices keep declining and solar / wind prices keep dropping (some 25-40% per year). Texas' February & August brownout / blackout events, expected ongoing historic drought and high temps, coal plant closures, little to no new conventional power generation, 10-35% price increases due to most stringent regulations, etc. may lead to favorable rapid development schedules and PPAs in 2012-2013. We're evaluating most bankable manufacturers, lowest cost of capital debt/equity partners, and most interested PPA offtakers (for utility-scale projects). What is the status of the project's site?: Prospective lands are wholly owned / controlled by clients (families or corporations). Most have transmission lines across them. Have land leases been filed with the county?: Not necessary. What is the status of interconnection, and have system impact and facility studies been completed? (Distribution or transmission level projects are both eligible): We expect expedited permitting and faster, less expensive interconnection studies for projects below 10 MW, as allowed by ERCOT. Does the transmission owner (TO) or independent system operator (ISO) have a process to study the project's impact on the local or regional grid and the subsequent cost to interconnect?: Yes. What is the status of the Environmental Impact Statement?: Too early. But, seeking to convert fallow, condemned or conventional land to certified organic land on each project. ------- Is any element of the project - technology or other - experimental or pilot-phase?: The combination of organic specialty crops and eco-tourism alongside solar / wind may be considered experimental or pilot-phase by some. What is the long- and short-term operations program of the project? 30-year life of system. Some landowners want our firm to own / operate / maintain the system selling them the behind-the-meter power as an Option 3 Retail Electric Provider. Other landowners are interested in continuing to own the land, while our firm would own / operate / maintain the systems and manage the utility-scale power sales. Does the renewable energy technology manufacturer have a technical support team locally available?: Depends upon which manufacturer(s) win the bids. For wind projects, has a meteorological tower been installed? Not yet. If yes, when was the tower installed and how much data has been collected?: Who has analyzed the data and what is that person's experience with respect to projects that have actually been financed?: We have selected the appropriate, experienced vendors but are not willing to share that information. Can the turbine manufacturer be financed through "traditional" tax equity and debt in the U.S.?: Yes. Provide a short summary of how you view project finance and structure/ownership: Like commercial real estate, each project may require slightly different ownership structures. We're open to exploring alternative structures. What are your ideal types of prospective institutions/partners?: Simple, yet sophisticated institutions / partners with patient, low cost of capital resources and a strategic / branding fit. What is the intended off-take for the renewable power with respect to bundled or unbundled products and is there a preference? Bundled green power for Municipalities, Electric Cooperatives, Retail Electric Providers, and other Wholesale Market Participants; possibly commercial & industrial loads as purchases sleeved through REPs. ------- |