Public Private Renewable Energy Group

Leading a Clean Renewable Energy Economy

www.ppreconnect.com/www.ppreconnect.com/

Business Plan andValue PropositionBusiness Plan andValue Proposition

The TeamBen Berry

Innovation Program Leadership, Government Transportation Industry, Clean Renewable Energy, and Geospatial Opportunity Modeling

Barbara JensenProgram Management, Energy Industry Development, and Contract Fulfillment

Puneet KukkalEngineering Management, Analysis and Planning

Priyanka KukkalCustomer Relationship Management, Consulting and Business Strategy

Other Technical Advisors are members ofWillamette University, Portland General Electric, US Federal Energy, David Evans and Associates, Portland Development Commission

B yB y

B nB n

P l P l

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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”

ProblemProblem

The Business Solution

A brokering service that:• Connects developers to business partners• Facilitates communication between the partners• Has renewable energy expertise to oversee the process

PPRE Solutions

ProblemProblem

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

Value Proposition

Target Market• 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 CaptureCapture

The Industry

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.

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.

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.

Solar Highways you can drive on……Solar Highways you can drive on……

• 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

• 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

Application: Solar Roads Rest Area for Countrywide Electric Vehicle Refueling

Signature Project

Electric Vehicle

Interstate Rechargin

g

RestAreaRecharge

RestAreaRecharge

Solar Roads

Solar Roads

Vehicle Recharging

Target Market• 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

Proposed Solar Road panels support Highway Rest Area electric recharging stations

Credit Card & Fuel Sale Data

Credit Card Charge

CentralDatabase

Switch

Local to Central Computer Interface

Site POS System & Monitor

Fast Rest Area Recharger

Electric VehicleRecharging

InternetInternet

Credit Card and Fuel PurchaseAmount

1

2

3

4

5

Rest Area Clean Tech Recharge

EVCharge

On-Vehicle Batteries

Pre-Fab Onsite Battery Rack Building

EV Recharge Batteries 6

7

Solar Road Clean Renewable PanelsSolar Road Clean Renewable Panels

I-5 Gee Creek Northbound 45.77708028 -122.6695372

(MP 11)

I-5 Gee Creek Southbound 45.79914722 -122.6806075

(MP 12)

I-5 Toutle River Northbound 46.35090584 -122.904319

(MP 54)

         

I-5 Toutle River (MP 54) Southbound 46.35233028 -122.9079778

I-5 Scatter Creek Northbound 46.83534942 -122.9852501

(MP 90)

I-5 Maytown Southbound 46.87109558 -122.9703582

(MP 93)

I-5 SeaTac Northbound 47.27113353 -122.3145569

(MP 140)

I-5 Silver Lake Southbound 47.902451 -122.2155729

(MP 188)

I-5 Smokey Point (MP 207)

Northbound 48.16884858 -122.1888685

I-5 Smokey Point (MP 207)

Southbound 48.16910774 -122.1942775

I-5 Bow Hill Northbound 48.58233045 -122.344314

(MP 238)

I-5 Bow Hill Southbound 48.58466933 -122.346533

(MP 238)

I-5 Custer Northbound 48.9091279 -122.6220304

(MP 267)

I-5 Custer Southbound 48.9266689 -122.6461821

(MP 269)

I-82 Selah Creek Eastbound 46.71138346 -120.4159312

(MP 24)

I-82 Selah Creek Westbound 46.69770209 -120.4433686

(MP 22)

I-82 Prosser Multidirectional 46.22097833 -119.7899517

(MP 80)

I-90 Price Creek (MP 61) Eastbound 47.322433 -121.325805

I-90 Indian John Hill Eastbound 47.16107502  

(MP 89) -120.8493571

I-90 Indian John Hill Westbound 47.16130429 -120.8425162

(MP 89)

I-90 Ryegrass Eastbound 46.94150752 -120.2034891

(MP 125)

I-90 Ryegrass Westbound 46.94724893 -120.208627

(MP 125.63)

I-90 Winchester (MP 161) Eastbound 47.10340742 -119.6287387

I-90 Winchester (MP 161) Westbound 47.10447524 -119.617456

I-90 Schrag Eastbound 47.08508637 -118.844743

(MP 198)

I-90 Schrag Westbound 47.08710623 -118.8452716

(MP 198)

I-90 Sprague Lake Eastbound 47.28954528 -118.0343183

(MP 241)

I-90 Sprague Lake (MP 242)

Westbound 47.29569936 -118.0325598

SR 12 Bevin Lake (MP 126) Multidirectional 46.55383 -121.7366

SR 12 Dodge Junction (MP 391)

Multidirectional 46.52502 -117.822062

SR 12 Alpowa Summit (MP 413)

Eastbound 46.43627944 -117.4246939

SR 12 Alpowa Summit (MP 413)

Westbound 46.43627944 -117.4246939

SR 14 Chamberlain Lake (MP 73)

Multidirectional 45.7058201 -121.3246398

SR 17 Blue Lake (MP 89) Multidirectional 47.56942361 -119.4477386

SR 21 Keller Ferry Multidirectional    

(MP 106)

SR 24 Vernita Multidirectional 46.63804583 -119.7315339

(MP 43)

SR 26 Dusty (MP 118) Multidirectional 46.811478 -117.642054

SR 26/ Hatton Coulee Multidirectional 46.79403977 -118.7431046

US 395 (MP 61)

SR 28 Quincy Valley (MP 25) Multidirectional 47.23268243 -119.9556149

SR 401 Dismal Nitch (MP 1) Multidirectional 46.24978663 -123.8587994

SR 504 Forest Learning Center

Multidirectional 46.30874889 -122.3957314

(MP 33)

SR 8 Elma Eastbound 47.01810444 -123.3515036

(MP 2)

SR 906 Travelers Rest (MP 1) Multidirectional 47.420942 -121.411531

US 195 Horn School Multidirectional 47.18246056 -117.3769086

(MP 60)

US 2 Iron Goat (MP 58) Multidirectional 47.711335 -121.163113

US 2 Nason Creek Multidirectional 47.76643639 -120.7931403

(MP 81)

US 2 Telford Multidirectional 47.69464806 -118.3977767

(MP 238)

PPRE Countrywide Hwy Rest Area Opportunity Database

PPRE Countrywide Hwy Rest Area Opportunity Database

Interstate/RouteInterstate/Route

Milepost LocationMilepost Location DirectionDirection LatitudeLatitude LongitudeLongitude

WASHINGTONWASHINGTON

Optimal Statewide Location AnalysisOptimal Statewide Location Analysis

Package

Click HereClick Here

Geospatial Opportunity Evaluation

Geospatial Opportunity Evaluation

• 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!

• 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!

Geospatial Opportunity Evaluation Model

Leading a Clean Renewable Energy EconomyLeading a Clean Renewable Energy Economy

• locations geographic size• suitable areas for solar asset

deployment• potential electricity production• electricity savings• carbon reduction

• 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

• available rebates from area utility companies or government tax credits, and

• PPRE’s cost estimates for implementation and construction information

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.

State

Rest Areas Count

Daily HEV &

EV Served

Right of Way

Utilization

Number of

Panels

Sola

Sun or Battery

Store Hrs. per Day

Site Daily

Power (Kwh)

Approved Electric Rate per

Kwh

Premium Electric Rate per

Kwh

Yearly Revenue Statewide

Initial Cost Statewide Year-1 Profit Year-2 Profit Year-3 Profit Year-4 Profit Year-5 Profit Five Year ROI

Colorado 34 2,842 0.5 miles 220 17 28,424 0.0814 0.1369 $48,290,358 $69,564,000 -$21,273,642 $26,948,516 $75,170,674 $123,392,832 $171,614,989 $375,853,368ROI by Year -130.58% -61.26% 8.06% 77.38% 146.70% 440.30%

Illinois 26 2,842 0.5 miles 220 17 28,424 0.0838 0.1393 $37,575,306 $53,196,000 -$15,620,694 $21,886,412 $59,393,517 $96,900,623 $134,407,729 $296,967,587

ROI by Year -129.36% -58.86% 11.65% 82.16% 152.67% 458.25%

Oregon 63 2,842 0.5 miles 220 17 28,424 0.0706 0.1261 $82,420,206 $128,898,000 -$46,477,794 $35,874,212 $118,226,218 $200,578,223 $282,930,229 $591,131,088

ROI by Year -136.06% -72.17% -8.28% 55.61% 119.50% 358.60%

New York 17 2,842 0.5 miles 220 17 28,424 0.1431 0.1986 $35,027,265 $34,782,000 $245,265 $35,204,329 $70,163,394 $105,122,459 $140,081,524 $350,816,971

ROI by Year -99.29% 1.21% 101.72% 202.23% 302.74% 908.62%

Washington 26 2,842 0.5 miles 220 17 28,424 0.0631 0.1186 $31,991,610 $53,196,000 -$21,204,390 $10,719,020 $42,642,430 $74,565,840 $106,489,250 $213,212,149

ROI by Year -139.86% -79.85% -19.84% 40.17% 100.18% 300.80%

$339,636,000 -$104,331,262 $130,632,486 $365,596,233 $600,559,981 $835,523,729 $1,827,981,187

ROI by Year -130.72% -61.54% 7.64% 76.82% 146.01% 438.22%

• 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 415

$1,640,406,284

394.96%

2011 2012 2013 2014 2015 Total1MW Projects $100,000 $0 $0 $300,000 $4,300,000 $4,500,000 $9,100,000

5MW Projects $300,000 $0 $0$1,200,00

0 $8,700,000 $10,800,000 $20,700,000

10MW Projects $2,255,000 $0 $3,382,500$3,382,50

0 $2,255,000 $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 $200,000 $3,882,500$6,182,50

0 $17,255,000 $31,030,000 $58,550,000

Expense   $1,014,896 $1,116,386$3,228,02

4 $6,344,431 $15,644,321 $27,348,058

EBITDA -$814,896 $2,766,114$2,954,47

6 $10,910,569 $15,385,679 $31,201,942

Venture Capitalization $5,000,000

PPRE Venture Capitalization

EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization

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

PPRE SWOT AnalysisStrengths Weaknesses

• 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

Operations

Change Acceleration ProcessChange Acceleration Process

Customer ContactCustomer Contact Request for ProposalRequest for Proposal

Operations

Five Stage Project Plan

Permitting FinancingTransmission Procurement

Construction

Project Milestones

Typical 1 MW Project Year 1 Year 2 Year 3

Feasibility

Permitting

Transmission

Finance

Procurement

PPRE 1 MW Project Year 1 Year 2 Year 3

Feasibility

Permitting

Transmission

Finance

Procurement

Project Time Savings

Typical vs. PPRE ApproachTypical vs. PPRE Approach

Financial ProjectionsMarket • 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

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 => $100,0005 MW => $300,000

50 MW => $2,550,000

Income Projections$30,000

$22,500

$15,000

$7,500

$ 0

YearYear

Tho

usan

ds o

f D

olla

rsT

hous

ands

of

Dol

lars Renewable Projects (MW)

Retainer (preliminary projects)

Renewable Projects (MW)

Retainer (preliminary projects)

8.58.5

1.51.5 13132020

1 2 3 4 5$200,000 $500,000 $1,300,000 $2,000,000 $2,200,000Retainer

Count 2 5 13 20 22 62

PPRE Revenue $0 $3,382,500 $4,882,500 $15,255,000 $28,830,0001 MW $100,000 0.0 0.0 3.0 43.0 45.0 91 Projects

5 MW $300,000 0.0 0.0 4.0 29.0 36.0 69 Projects

50 MW $2,255,000 0.0 1.5 1.5 1.0 6.0 50 Projects

MW Project Distribution 0.0 1.5 8.5 73 87 170 Projects

0 75 98 238 525 936 Projects

Grand Total Revenue: $200,000 $3,882,500 $6,182,500 $17,255,000 $31,030,000

TotalRetainer

Projects

8787

2222

7373

2020

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

PPRESolutionsSolutions

Public Private Renewable Energy Group

Business Plan and Value Proposition

Leading a Clean Renewable Energy Economy