Clean Energy & Sustainability

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I think its important for us to have a sustainable business and I think thats very achievable.
Larry Page CEO, Google Inc.

Source: http://www.cashedge.com/pressRoom/news_070104_bst.html

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Googles approach

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Building an efficient clean energy future.

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Renewable Energy Investments

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How much has Google invested so far?

Goals Financial returns Innovation Large scale impact Encourage other companies

$915M+ Portfolio
1.8 GW of projects 350,000 homes

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What renewable investments has Google made?

$94M Recurrent Energy solar PV

$168M $355M BrightSource Ivanpah Clean Power Finance & solar power tower Solar City (rooftop solar)

$5M German Solar PV plant

$157M Alta Wind Projects IV & V

$39M Peace Garden Wind farms (ND)

$100M Shepherds Flat Wind Farm

Atlantic Wind Connection (offshore transmission backbone)

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Why is Google here at the Clean Energy Forum?

Google is expanding its renewable investment efforts outside of U.S. borders Optimistic about the growth potential in Asia 15 offices and thousands of employees in the region Economic growth and growing demand for energy helps set the stage for attractive investment opportunities

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What lessons does the U.S. solar energy market have to offer?
Deal structuring can be a powerful tool to mitigate risks and attract investors Many small power purchasers (e.g., homeowners) can make up a low risk investment Aggregating lots of small systems can bring capacity online faster than utility scale systems can be completed Renewable energy customers show a strong preference to paying over time instead of up front Distributed solar can alleviate areas where the electricity grid is facing constraints

Consistent and reliable policy support are critical for helping the renewable industry grow
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Whats an example of an innovative deal structure?

US$280 million investment in residential PV systems
Residential Customers

Deal Summary Customer Renewable energy while saving money from Day 1

Energy production

Origination Installation O&M Admin / billing

Monthly energy payments

SolarCity Capital to expand their business

Monthly lease payments System cost

Google Owner of PV system Predictable lease payments SolarCity in first loss position

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What are renewable investors considering in their assessments of the opportunity to invest in Asia?
Fundamentals
Economic growth

Electricity supply and demand

Cost of supply compared to alternatives

Stability
Regulatory support
Political stability

Sustainability and fairness

Win-win projects
Transparency

Partners
Strong track records and outlook Alignment of vision and goals
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Conclusions
Tremendous growth potential for solar energy in Asia
Grid parity Energy access

Distributed solar could be larger (faster) than centralized, utility scale solar Building on learnings in other markets could accelerate the growth of solar in Asia

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Thank You

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