Renewable Energy Business Opportunities in the U.S. for International Firms

1
Renewable Energy Business Opportunities in the
U.S. for International Firms
2
Value Proposition

• Assist and partner with companies interested in
  entering the U.S. Renewable Energy Market
• Acquire and restructure existing operating and
  late-stage development (i.e. shovel-ready)
  renewable energy projects that are current
  distressed
• Bid on new Utility request for proposals (RFP)
  for renewable energy projects and
• Access experienced Asset Management and
  Consulting Services, as required by the investor

3
The Team

• Proven and accomplished energy professionals
• Focused on transaction execution
• Commercial, engineering, financing, tax, risk and
  market expertise
• Deep and long-term industry relationships
• Integrated knowledge of repatriation and tax
  treatment in Spain and the US

4
Partnerships

• Compensation Structure in alignment with equity
  positions
• Employee contracts fixed contracts for with
  termination provisions
• Development fee Percent of the Project Value
  (i.e. turnkey EPC price)
• Residual / Corporate value Percent ownership
  of NewCo

5
Relationships

• Utilities/Industrials
• EPC
• Vendors
• Financial (debt financing, dev loan, credit
  facilities)
• Morgan Stanley, Credit Suisse, RBS, West LB, HSH
• Consultants
• RW Beck, SL, BV, Van Scoyoc

6
Implementation Strategy

• Market Overview
• Overview of Capital Requirements
• Financing Plan Develop Real Project with Real
  Returns
• Corporate Operational Expenses
• Exit Strategies

7
Market Overview

• 60 billion of renewable energy projects under
  development, under construction or placed on hold
• Credit and Tax Equity markets are on hold
• Existing renewable energy developers are
  liquidating their projects and portfolios to
  raise cash
• Developers have been forced to defer their
  development fees
• EPC companies are lowering their bids to win
  construction projects
• Equipment costs have fallen both from the vendor
  and on the secondary markets
• Equity and distressed investors are testing the
  market

8
Capital Requirements

• 200 Million commitment of financial resources
  over 36 months
• 30 -50 million in available cash to support
  initial investment activities, subject to senior
  management approval
• Additional investment capital provided upon
  proven success
• The ability to provide parent guarantees, Letters
  of Credit or a credit facility to support
  investment activities

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Financing Plan

• Utilize Financial Leverage by entering into power
  sales agreement with creditworthy counterparties
• Utilize realistic project projections i.e.,
  forward commodity prices, operational and CapEx
  costs, and construction costs for project
  structuring
• Utilize federal cash incentives to support the
  projects capital structure by accessing the
  federal grant window
• Implement professional asset and construction
  management oversight

10
Repatriation taxes - Spain

• Spain - U.S. Tax Treaty
• Distribution of Dividends from a U.S. Co. is
  subject to U.S. Withholding tax of 10, but
  future repatriation of accumulated reserves upon
  liquidity is non-taxable in the U.S.
• Capital gains obtained by the Spanish Co. in the
  sale of its shares from its U.S. subsidiary is
  non-taxable in the U.S. (except if it is
  considered a real estate holding company)
• Spanish Corporate Tax
• Dividends from the U.S. Co. and its capital
  gains obtained from the sell of its shares are
  exempted in Spain if the following legal
  conditions are met among others, own more then
  5of the U.S. Co. for more than one year, etc.
• Disclaimer These are general guidelines, but
  should not be used as a fiscal advice without
  checking with your Tax advisor on a case by case
  scenario.

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Experience

• 18 years experience in government, media and
  public relations.
• Energy, Infrastructure, Trade, Federal and State
  and access to leading advocacy company in the US.
• 16 years experienced Renewable Energy Financial
  Executive
• Debt Equity, Structured Finance, Mergers,
  Acquisitions, Divestitures, Tax and Private
  Equity, Venture Capital, Project Financing and
  Credit Arrangements, Investment Appraisal and
  Economic Evaluations.
• 17 years experience in energy the energy industry
• Risk Management, Management Consulting, Contract
  Negotiation, Financing, Compliance, Audit and
  Valuation.

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Contact Information

• Alex Morales
• Managing Director
• 2961 Hunter Mill Road
• Suite 627
• Oakton, VA 22124
• Tel. [phone]
• Cell 703.789.1124