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Public Private Renewable Energy Group

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Presentation on theme: "Public Private Renewable Energy Group"— Presentation transcript:

1 Public Private Renewable Energy Group
Business Plan and Value Proposition Public Private Renewable Energy Group

2 The Team Ben Berry Barbara Jensen Puneet Kukkal Priyanka Kukkal
B y Ben Berry Innovation Program Leadership, Government Transportation Industry, Clean Renewable Energy, and Geospatial Opportunity Modeling Barbara Jensen Program Management, Energy Industry Development, and Contract Fulfillment Puneet Kukkal Engineering Management, Analysis and Planning Priyanka Kukkal Customer Relationship Management, Consulting and Business Strategy Other Technical Advisors are members of Willamette University, Portland General Electric, US Federal Energy, David Evans and Associates, Portland Development Commission B n P l P l

3 The Business Problem The four major hurdles faced by power developers:
Setting up power transmission Obtaining financing Receiving permits Partnering with competent technical firms Solving the Issue: “not in my backyard” Problem

4 The Business Solution A brokering service that:
PPRE Solutions Problem A brokering service that: Connects developers to business partners Facilitates communication between the partners Has renewable energy expertise to oversee the process

5 What Does PPRE Offer? From fragmented to integrated large-scale clean renewable energy power generation A portfolio of professional contacts in the utility, banking, government, & construction fields Renewables Change Management facilitation methodology Project site optimization Decades of experience working in the energy and transportation industries

6 Value Proposition Target Market Product Customer Benefits
Public and Private Renewable Energy Developers Product Facilitated Renewable Energy Power Generation Projects Customer Benefits Leverage Strategic Relationships Shorten Development Timeline Reduced Capital Costs Decrease Time to Revenue Capture

7 The Industry Clean Renewable Energy – Solar Roadways. PPRE plans to use the Solar Roadway’s product for its signature project. The U.S. Department of Energy is funding the development of 12-by-12 foot solar panels, dubbed “Solar Roads,” that can be embedded into roads, pumping power into the electric grid. Panel Features. LED road signage and built-in heating elements that prevent roads from freezing. Each Solar Road panel can develop around 7.6 kwh of power each day at a one time acquisition cost of about $7,000 each. Once widely adopted, they could realistically wean the US off fossil fuels: a mile-long stretch of four-lane highway could take 500 homes off the grid. Signature -- Electric Vehicle Recharging. Expand HEV and EV use through country-wide Highway Rest Area electric charging power via in ground and drivable Solar Road panel arrays. This expands State’s economic development via EV transportation and adds jobs for green-tech, construction, integrators and chip manufacturers. Technology. Solar Road panels contain micro-processor and energy management systems with a translucent and rugged high-strength top layer made of glass. Base layer under the panel routes power and data utilities (TV, phone, Internet) to homes & power companies. The heart of the Solar Roadway™ is the Solar Road Panel™ The Solar Roadway is a series of structurally-engineered solar panels that are driven upon. The idea is to replace all current petroleum-based asphalt roads, parking lots, and driveways with Solar Road Panels that collect energy to be used by our homes and businesses. Our ultimate goal is to be able to store excess energy in or alongside the Solar Roadways. This renewable energy replaces the need for the current fossil fuels used for the generation of electricity. This, in turn, cuts greenhouse gases literally in half. Each individual panel consists of three basic layers: Road Surface Layer - translucent and high-strength, it is rough enough to provide great traction, yet still passes sunlight through to the solar collector cells embedded within, along with LEDs and a heating element. It is capable of handling today's heaviest loads under the worst of conditions. Weatherproof, it protects the electronics layer beneath it. Electronics Layer Contains a microprocessor board with support circuitry for sensing loads on the surface and controlling a heating element. No more snow/ice removal and no more school/business closings due to inclement weather. The on-board microprocessor controls lighting, communications, monitoring, etc. With a communications device every 12 feet, the Solar Roadway is an intelligent highway system. Base Plate Layer Layer - While the electronics layer collects energy from the sun, it is the base plate layer that distributes power (collected from the electronics layer) and data signals (phone, TV, internet, etc.) "downline" to all homes and businesses connected to the Solar Roadway. Weatherproof, it protects the electronics layer above it.

8 Solar Highways you can drive on……
Consumption Close to the Source of Generation. As the highway electric grid model gains traction and is built out, the highway electric grid will power vehicles efficiently and allow drivers to plug into alternative charging stations along highways, perhaps even by expanding existing highway rest stations. The idea of "non-wired solutions" affects much of the discussion in the debate over building more transmission lines to and from far-flung locations versus generating and using renewable energy close to where the energy will be consumed; thus, reducing the cost of expensive power transmission line build out. We hear the argument that utilities haven't gone far enough in considering non-wired alternatives, e.g. efficiency measures, smart wireless metering, distributive generation, etc. Consumption close to the source plays to PPRE’s business model where we reduce reliance on traditional transmission line approaches and focus on short interconnects to the Distribution System. Distributive Power Generation - Consumption close to source of generation; Minimizes transmission infrastructure costs Inroad Solar Panels – Incorporates LED lights for road lines and signs and eliminates the “Not in my Backyard” argument Interconnecting Panels - Provides efficient electrical distribution

9 Signature Project Application: Solar Roads Rest Area for Countrywide Electric Vehicle Refueling

10 Electric Vehicle Interstate Recharging
Rest Area Recharge Solar Roads

11 Vehicle Recharging Target Market Product Benefits
2,500 Rest Areas in 50 US States plus internationally Product 12x12 ft. in-highway ruggedized Solar Road Panels stretching one quarter mile either end of Hwy Rest Areas Benefits HEV & EV recharging stations LED imbedded electronic signage and transit lines for improved highways Heated highway melts snow and ice Energy consumed at source lowers power distribution cost Proposed Solar Road panels support Highway Rest Area electric recharging stations

12 Rest Area Clean Tech Recharge
Internet 1 Fast Rest Area Recharger EV Charge On-Vehicle Batteries Credit Card and Fuel Purchase Amount 2 Electric Vehicle Recharging 7 5 Credit Card Charge 3 Pre-Fab Onsite Battery Rack Building EV Recharge Batteries Credit Card & Fuel Sale Data Central Database Switch Local to Central Computer Interface Site POS System & Monitor 6 4 Solar Road Clean Renewable Panels 12

13 PPRE Countrywide Hwy Rest Area Opportunity Database
Gee Creek Northbound (MP 11) Southbound (MP 12) Toutle River (MP 54) Toutle River (MP 54) Scatter Creek (MP 90) Maytown (MP 93) SeaTac (MP 140) Silver Lake (MP 188) Smokey Point (MP 207) Bow Hill (MP 238) Custer (MP 267) (MP 269) I-82 Selah Creek Eastbound (MP 24) Westbound (MP 22) Prosser Multidirectional (MP 80) I-90 Price Creek (MP 61) Indian John Hill (MP 89) Ryegrass (MP 125) (MP ) Winchester (MP 161) Schrag (MP 198) Sprague Lake (MP 241) Sprague Lake (MP 242) SR 12 Bevin Lake (MP 126) Dodge Junction (MP 391) Alpowa Summit (MP 413) SR 14 Chamberlain Lake (MP 73) SR 17 Blue Lake (MP 89) SR 21 Keller Ferry (MP 106) SR 24 Vernita (MP 43) SR 26 Dusty (MP 118) SR 26/ Hatton Coulee US 395 (MP 61) SR 28 Quincy Valley (MP 25) SR 401 Dismal Nitch (MP 1) SR 504 Forest Learning Center (MP 33) SR 8 Elma (MP 2) SR 906 Travelers Rest (MP 1) US 195 Horn School (MP 60) US 2 Iron Goat (MP 58) Nason Creek (MP 81) Telford WASHINGTON Optimal Statewide Location Analysis PPRE Countrywide Hwy Rest Area Opportunity Database Interstate/Route Milepost Location Direction Latitude Longitude

14 Geospatial Opportunity Evaluation
Click Here

15 Geospatial Opportunity Evaluation Model
Leverages interactive Google Earth virtual map imagery System uses geographic size, pitch and shading from nearby terrain, buildings and mountains to provide a solar potential By hovering over the Google Earth-enabled virtual highway mile post locations, customers visualize the PPRE’s modeling and projects add jobs to the economy! locations geographic size suitable areas for solar asset deployment potential electricity production electricity savings carbon reduction available rebates from area utility companies or government tax credits, and PPRE’s cost estimates for implementation and construction information Leverages interactive virtual map imagery to allow customers and partners online to examine PPRE’s recommended statewide locations that are good candidates for solar highway power. System uses geographic size, pitch and shading from nearby terrain, buildings and mountains to provide a solar potential and the potential value of installing solar highway assets. By hovering over the Google Earth-enabled virtual locations, customers visualize the locations geographic size, suitable areas for solar asset deployment, potential electricity production, electricity savings, carbon reduction, available rebates from area utility companies or government tax credits, and PPRE’s cost estimates for implementation and construction information. PPRE projects add jobs to the economy! Leading a Clean Renewable Energy Economy

16 Business Value ROI Test group of States produced a ROI over five years assuming a highway electric charge rate as defined by The chart details the Average Retail Price of Electricity by State. ROI Assumptions: Solar Road Panel Generation: 7.6 Kwh Solar Road Panel Cost from $6,900 to $6,050 (due to volume production) HEV and EV Recharge Requirement: 10 Kwh per vehicle Panel Days in Operation: 365 Average Sunlight with Battery Store Hours/Day: 24 hours per day Positive Revenue is generated on average by 18 months of investment Panels per site are one row of 220 panels spread ¼ mile to and from rest area Expected revenue if implemented for test group States: Jobs Created by test group States The map above shows the average retail price of electricity in the U.S. by state in It ranges from around 6 cents/KWH to 17 cents/KWH. The U.S. average for 2007 is cents. To see the numbers for the current year click here. If we use the average, the cost to recharge the Volt will be $0.85, and the range for 2007 will be from 48 cents to $1.34 depending where you live. Clearly for 40 miles of driving at present gas and electric prices, there will be a very significant cost savings. Of course, there is some uncertainty of where these numbers will be when the Volt arrives in 2010. 415

17 PPRE Venture Capitalization
2011 2012 2013 2014 2015 Total 1MW Projects $100,000 $0 $300,000 $4,300,000 $4,500,000 $9,100,000 5MW Projects $1,200,000 $8,700,000 $10,800,000 $20,700,000 10MW Projects $2,255,000 $3,382,500 $13,530,000 $22,550,000 Project Retainers $200,000 $500,000 $1,300,000 $2,000,000 $2,200,000 $6,200,000 Revenue $3,882,500 $6,182,500 $17,255,000 $31,030,000 $58,550,000 Expense $1,014,896 $1,116,386 $3,228,024 $6,344,431 $15,644,321 $27,348,058 EBITDA -$814,896 $2,766,114 $2,954,476 $10,910,569 $15,385,679 $31,201,942 Venture Capitalization $5,000,000 EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization

18 Feasibility Study Concept of Operations
Government and Developer as Customer Public or Private Land Assets PPRE as Project Consultant Inception > Procurement > Power Generation Stakeholders Renewable Manufacturer – Solar Roads Utilities Financiers Design/Build Firms Government

19 PPRE SWOT Analysis Strengths Weaknesses Opportunities Threats
Government contract negotiation Lack of capital DOT, DOE and state government relationships Start-up organization Project concept to build-out cost/time efficiency Facilitation change management methodology Geospatial modeling Opportunities Threats Public private partnerships Low barriers to entry Broader opportunities for project siting Uncertainty of continued governmental incentives Government mandates and incentives Low cost non-renewable energy sources Escalating construction costs

20 Begin 5 Stage Project Plan
Operations CEO & General Manager Customer Contact Request For Proposal Master Change Facilitator Strategic Partner Expert Volunteer Begin 5 Stage Project Plan Customer Contact Request for Proposal Change Acceleration Process

21 Five Stage Project Plan
Operations Five Stage Project Plan Feasibility Permitting Transmission Financing (Equipment) Procurement Permitting Transmission Financing Procurement Construction

22 Project Milestones Typical 1 MW Project Feasibility
Typical vs. PPRE Approach Typical 1 MW Project Year 1 Year 2 Year 3 Feasibility Permitting Transmission Finance Procurement PPRE 1 MW Project Project Time Savings

23 Financial Projections
Market Mid-size (1 to 10 MW) renewable installations Public Private partnerships with States and utilities Project projections Income Projects in the pipeline Expense Personnel depends on number of projects Solar Road panels and design/construction

24 PPRE’s Compensation Model
Income Retainer per project PPRE revenue share Projects in pipeline $100k * Retainer per new project * Payout at $20k per milestone with 5 milestones/ project PPRE Revenue per site MW distribution: 1 MW => $100,000 5 MW => $300,000 50 MW => $2,550,000 Income Projections 87 22 Renewable Projects (MW) Retainer (preliminary projects) 73 Thousands of Dollars 8.5 20 1.5 13 20 Year

25 Value Proposition: Save Time
The time required to gather stakeholders The time required to obtain permits The time required to acquire financing The time required to finalize plans The time spent in coordinating multiple stakeholders PPRE Solutions

26 Public Private Renewable Energy Group
Business Plan and Value Proposition


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