Clean Energy & Sustainability

Google Confidential and Proprietary Google Confidential and Proprietary

1

I think it’s important for us to have a sustainable business and I think that’s very achievable.
Larry Page CEO, Google Inc.

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

Google Confidential and Proprietary

2

Google’s approach

Google Confidential and Proprietary

3

Building an efficient clean energy future.

Google Confidential and Proprietary

4

Renewable Energy Investments

Google Confidential and Proprietary

5

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

Google Confidential and Proprietary

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)
Google Confidential and Proprietary

7

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

Google Confidential and Proprietary

8

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
Google Confidential and Proprietary

9

What’s 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

Google Confidential and Proprietary

10

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
Google Confidential and Proprietary

11

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

Google Confidential and Proprietary

12

Thank You

Google Confidential and Proprietary

13

Sign up to vote on this title
UsefulNot useful