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12/12/2011
12/12/2011
12/12/2011
15%
Sponsor Equity
Tax Equity
Back-Leverage Debt
60%
12/12/2011
PTC:
Project performance is very important
Generally more valuable for high NCF projects
The lower the uncertainty, the more valuable the PTCs are
12/12/2011
65%
70%
75%
80%
Equity Intensity
12/12/2011
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
60%
65%
70%
75%
80%
85%
0.4%
0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
60%
65%
70%
75%
80%
Change in IRR
12/12/2011
0.4%
0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
60%
65%
70%
75%
80%
85%
0.3%
0.2%
0.1%
0.0%
-0.1%
-0.2%
-0.3%
60%
65%
70%
75%
80%
85%
12/12/2011
Bottom Line
Improvements in the P99/P50 ratio results in
lower equity requirements and better returns for
project sponsor
Allows project sponsor to raise more low cost debt
and tax equity financing versus relatively expensive
sponsor equity
But improvements might be limited to caps imposed
by financiers
It might take some time until financiers can give full value to
decreased WRA uncertainty
Thank You
windcapitalgroup.com
Daniela Shapiro
dshapiro@windcapitalgroup.com