renewable energy investments from the region into the ... · in december 2007, mubadala...

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Masdar Power

Renewable Energy Investments from the Region

into the Global Market – Masdar Power’s Approach

Frank Wouters – Director Masdar Power

Clean Energy Finance in the MENA Region

DIFC - November 14th, 2011

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Masdar Overview

Renewable Energy in the present environment

Is solar energy expensive?

Masdar Power projects

UAE projects

International projects

Masdar’s future initiatives

Overview

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In December 2007, Mubadala incorporated Masdar as wholly owned joint

stock company under the name of Abu Dhabi Future Energy Company

PJSC (ADFEC) pursuant to Law no 22 in order to carry out projects and

investments in the renewable energy, energy efficiency, carbon reduction,

carbon storage capture and storage and other forms of sustainability related

technologies

Masdar Overview

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Vision, Mission and Key Objectives

Mission

• To build a portfolio of renewable energy operating assets

• To make strategic investments in companies with promising

technology or IP

• To reduce Abu Dhabi’s carbon footprint

Vision

• To secure a leading position in the future renewable energy

economy

Objectives

• Invest in expansion or early stage companies and projects to create

shareholder value and subsequently realize full or partial exits

• Team up with best in class partners that complement Masdar’s

strategy and capabilities

• Build-up capacity while accumulating know-how

Partnerships

include

• DONG, Siemens, Foster and Partners, EON, Sener, Total, Abengoa

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Since 20041, annual investment in clean energy has increased by 630% and grew to $243bn

in 2010, up 30% from previous year. Europe received $94.4bn of this.

Since 2009, more money is invested in renewable generation capacity than in conventional

power

At the end of 2011, solar modules will cost half of what they cost four years ago

China added a staggering 17 GW of wind power capacity in 2010

In good locations wind and solar already competitive with conventional power

Worldwide installed capacity of renewable energy has now surpassed that of nuclear

In August both Allianz and Munich RE announced substantial new investments in renewables

through 2015 since these are largely decoupled from financial market volatility

The market for

Renewable

Energy power

assets

continues

growing

globally

Why is this

market so

attractive to

Masdar and

other

investors?

Growing worldwide since linked to growing energy demand, increasing competiveness,

concerns over security of supply, climate change and recent nuclear events

Low risk (infrastructure) and largely independent from extremes in economic volatility

Can offer good protection against inflation

Core element of Masdar’s raison d’être

Underrepresented in Abu Dhabi’s overall invested portfolio

1. Source: Bloomberg New Energy Finance

Market Environment

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> In January Bloomberg New Energy Finance modeled the economics of

a modern 100MWp PV plant in the GCC:

• $3.14/W, 20% capacity factor, 25 year life, PV replaces oil in fossil fuel plant

> Oil price assumptions:

• Future oil price assumptions by Standard Chartered, oil prices gradually

increasing to $163/bbl by 2030 (central scenario, real terms), thereafter flat

> Such PV project in the GCC would generate a real internal rate of return (IRR) of

9.14%

> Immediate potential in Kuwait and KSA (max. 10% of diesel capacity): 5GW

• Further upsides: lower PV prices, carbon credits, longer life than 25 years

Is solar energy expensive?

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> Fossil fuel subsidies are increasing and have surpassed $400bn/a, making it

difficult for renewables to compete

> Markets are highly volatile, particularly in Europe and MENA

> For renewables most of the costs are upfront and require higher investments than

for similar conventional capacity

> Investments in renewable energy require long term policy (implementation) and an

extremely stable environment

> The present lack of liquidity in the banking environment is a constraint

However…….

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Flagship project

World’s largest concentrated solar power

(CSP) plant and first in Middle East

SHAMS 1

Fast Facts

120kms southwest of Abu Dhabi city

near Madinet Zayed

Extends over an area of 2.5km² with

a capacity of 100MW

Solar field has 768 parabolic trough

collectors containing around 200,000

mirrors.

Over 60% complete, on time and

budget.

PPA/GPA structure based in Abu

Dhabi’s IWPP structure

Commercial operations Q3 2012.

Project finance ($612m) closed

March 2011

Profile of Masdar Power Projects – SHAMS 1

Masdar Power projects - UAE

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SHAMS 1

Aerial view summer 2011

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SHAMS 1

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Onshore wind farm

Sir Bani Yas

Fast Facts

Sir Bani Yas is a natural island located 250

km west of Abu Dhabi city

TDIC promotes Sir Bani Yas Island as a

premier tourist destination.

Masdar has an agreement with TDIC to

develop renewable energy projects on the

island

First project is a wind-farm with a capacity of

between 20 and 30MW

Will use PPA/GPA structure developed for

Shams 1

Commissioning in late 2012


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The world’s first commercial

deployment of CSP Central Tower

Receiver Systems

Gemasolar

Fast Facts

Joint venture between SENER (60%) and Masdar (40%) - Torresol

Gemasolar plant consists of 2,650 heliostats (mirrors) – 1,500m approximate diameter.

Operational Q2 2011. Achieved 24 hour production July 2011.

Supplying energy to 30,000 households saving 50,000 tonnes of CO2.

Developed under Spain’s Feed-In-Tariff regime

Project financed (€171m) closed in Nov 2009

Masdar Power projects - International

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2x50 MW Parabolic trough Power

Plant

Valle 1 & 2

Fast Facts

Located near Seville, Joint Venture

between SENER (60%) and Masdar

(40%) – Torresol

2 adjacent 50 MW solar plants with

parabolic trough technology. ~7-8

hours of thermal storage (molten salts)

Developed under Spain’s Feed-In-

Tariff regime

NTP issued in January 2010 and

planned COD in April 2012

Senior debt facility of EUR 540m ,

closed in July 2009


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Flagship Project

Offshore wind farm

London Array

Fast Facts

Capacity of 1GW when complete with 278

wind turbines. Phase 1 is 175 turbines.

Energy for London 750,000 homes and

displacing 1.9 million tonnes CO2 pa.

Nearly 7% of the UK Gov’t’s target of 15.4%

electricity from renewable sources.

Joint venture between DONG (50%), E.ON

(30%) and Masdar (20%).

Un-incorporated JV structure with Masdar

selling its 20% of power to E.ON.

Subsidy through UK ROC structure.

Construction started (onshore) in July 2009.

Currently 80 foundations and offshore

substations installed.

Masdar project financing re-launched and

progressing.


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London Array

Installation Vessels

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Onshore wind farm

Mahe

Fast Facts

Wind farm on the island of Mahe

First phase of the project consists of

a 6 to 8 MW wind-farm

Commercial operation date in 2012

Potential diesel savings of 3.5M

litres per annum.

Funded by ADFD


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Thin-film photovoltaic solar module

manufacturing in Germany

Masdar PV

Fast Facts

Masdar PV is producing advanced

amorphous silicon photovoltaic

modules that are eight times larger

and five times more powerful (in total

Watt) than industry standard

modules

High-volume manufacturing of thin

film PV requires less than 1% of

semiconductor material compared to

traditional PV.

Recent line upgrade completed

successfully and new twin-junction

product certified.


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Flagship project

One of the world’s largest PV plant s and

largest in Middle East

Noor One

Fast Facts

To be located near Al Ain.

Extends over an area of 2 km² with

a capacity of 100MW peak.

Percentage of panels supplied by

Masdar PV

Subsidy not yet approved

Will utilize PPA/GPA structure

developed for Shams 1.

Currently in bid evaluation stage.

Construction commences mid-

2012

Commercial operations late 2013.

Project finance launch early 2012.


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Profile of Masdar Power Projects

Mission: To build a portfolio of

renewable energy operating assets

Future Projects

Fast Facts

Shams 2 and Noor 2 in feasibility stage

development as next CSP and PV

additions to Abu Dhabi RE targets

Further local and regional large scale wind

opportunities being pursued.

International expansion of Torresol venture.

Active pursuit of large international

developers with whom partnership brings

strategic value.

Many small scale special projects being

undertaken in conjunction with Abu Dhabi

counterparts.

Masdar Power projects - growth

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THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL NOTES. IT IS SOLELY FOR USE AT A PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU AGREE TO BE BOUND AS FOLLOWS:

This presentation has been prepared by Abu Dhabi Future Energy Company PJSC – Masdar (“Masdar”), is furnished on a confidential basis only for the use of the intended recipient and only for discussion purposes, may be amended and supplemented and may not be relied upon for the purposes of entering into any transaction. The information contained herein (other than the indicative terms) has been obtained from sources believed to be reliable but Masdar does not represent or warrant that it is accurate and complete. The views reflected herein are those of Masdar and are subject to change without notice. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and to the extent that they are based on historical information, they should not be relied upon as an accurate prediction of future performance.This presentation does not constitute an offer or an agreement, or a solicitation of an offer or an agreement, to enter into any transaction (including for the provision of any services), and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Before entering into any transaction, you should consider the suitability of the transaction to your particular circumstances and independently review (with your professional advisers as necessary) the specific financial risks as well as the legal, regulatory, credit, tax and accounting consequences. Certain analysis is presented herein and is intended solely for purposes of indicating a range of outcomes that may result from changes in market parameters. It is not intended to suggest that any outcome is more likely than another, and it does not include all possible outcomes or the range of possible outcomes, one of which may be that the investment value declines to zero. This presentation may include forward-looking statements that reflect Masdar's intentions, beliefs or current expectations. Forward-looking statements involve all matters that are not historical by using the words "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "believe", "plans", "aims", "seeks" - and similar expressions or their negatives. Such statements are made on the basis of assumptions and expectations that Mubadala currently believes are reasonable, but could prove to be wrong. This presentation is for the recipient’s use only. This presentation and its contents are confidential and proprietary to Masdar and its affiliates, and no part of this presentation or its subject matter may be reproduced, disseminated or disclosed without Masdar’s prior written approval. This presentation is not for distribution to private clients. If this presentation has been received in error it must be returned immediately to Masdar.By attending the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that (i) you have read and agree to comply with the contents of this notice; and (ii) you will treat and safeguard as strictly private and confidential all such information and take all reasonable steps to preserve such confidentiality. By receiving this presentation you become bound by the restrictions contained herein and failure to comply with these restrictions may result in civil, administrative or criminal liability. © 2011 Abu Dhabi Future Energy Company PJSC - Masdar. All rights reserved.

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