1. Renewable Energy Markets
2018 Environmental Policy and Outlook Conference
May 15, 2018
Renewable Energy Markets

2. Renewable Energy Markets
Who is Avangrid Renewables?
Growth of Utility-Scale Renewables
Changes in the U.S. generation mix
Location of New Renewable Projects
Recent Trends in Renewable PPAs
Renewable Energy Pricing
Policy Impacts on Renewable Energy
Questions
Renewable Energy Markets

3. Avangrid Renewables, LLC
A collection of exceptional assets…
One of the largest wind project owners in the U.S. with more than 6 GWs owned and contracted
US Renewables
More than $10 billion of U.S. assets at nearly 60 installed plants
725+ employees at the end of 2016, compared with 12 in 1999
Wind
Power
Solar & Biomass
636 MW of CCGT & peaking capacity on the strategic CA-OR border
6,000+ MW
536 MW CCGT 100 MW peaking
106 MW Solar 55 MW Biomass
Represents 39% of Iberdrola S.A.’s global wind capacity
And clean gas generation
…focused on operational excellence and selective growth
April 2017

4. Avangrid Renewables in Ohio
Blue Creek Wind Farm
300 MW wind farm in Van Wert, OH
Achieved commercial operation in 2012
Power purchase agreements with Ohio-based customers
Additional development
Solar
Renewable Energy Markets

5. Growth of Installed Wind Generation
Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA)
Renewable Energy Markets

6. Growth of Installed Solar Generation
Source: Wood Mackenzie, Limited/SEIA U.S. Solar Market Insight®
Renewable Energy Markets

7. Changes in the U.S. Electric Generation Mix
Source: Bloomberg Finance L.P. and the Business Council for Sustainable Energy “2018 Sustainable Energy in America Factbook”
Renewable Energy Markets

8. Changes in the U.S. Electric Generation Mix
U.S. Electricity Mix
Solar and wind projects made up 62% of new power construction in 2017
12.5 gigawatts worth of coal plants are set to shut down in 2018
Source: Bloomberg Finance L.P. and the Business Council for Sustainable Energy “2018 Sustainable Energy in America Factbook”
Renewable Energy Markets

9. Wind Construction in 2017
Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA)
Renewable Energy Markets

10. Wind Capacity by State
Renewable Energy Markets

11. Location of Wind Projects
Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA)
Renewable Energy Markets

12. Solar Capacity by State
Renewable Energy Markets

13. Location of Expected Power Plant Additions – MAR to DEC 2018
Renewable Energy Markets

14. Offshore Wind
Source: NREL 2016 Offshore Wind Energy Resource Assessment for the United States
Renewable Energy Markets

15. Renewable PPAs – Recent Trends
Hub-settled transactions
Negative price protection
Shorter term lengths
REC swaps
Many of these changes are being driven by corporate customers
Renewable Energy Markets

16. Renewable Energy Buyers – Shift to Corporate Customers
Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA)
Renewable Energy Markets

17. Corporate Renewable Buyers in 2017
Renewable Energy Markets

18. Corporate Buyers
Renewable Energy Markets

19. Levelized Cost of Energy (LCOE) in 2017
Source: Lazard's Levelized Cost of Energy Analysis - Version 11.0
Renewable Energy Markets

20. Levelized Wind PPA Prices by PPA execution date and region
Renewable Energy Markets

21. Costs of Utility-Scale Solar PV
Renewable Energy Markets

22. Policy Impacts on Renewable Energy
Federal Policies
Wind
Production Tax Credits
$23/MWh for projects that commenced construction prior to 2018
10 years after in-service date
100% of PTC if started construction in 2016, drops 20% each year, ends after 2020
Solar
Investment Tax Credits (Utility Scale)
30% through 2019, drops to 10% after 2021
Import Tariffs
30% tariff on imported solar panels, decreases to 15% in 2021
Renewable Energy Markets

23. Policy Impacts on Renewable Energy
State Policies
Permitting
Setbacks
Tax Incentives
Renewable Portfolio Standards (RPS)
Renewable Energy Markets