Supplying Industrial Loads with Renewable
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Supplying Industrial Loads with Renewable Energy: A Customer-Focused Approach Mainstream Renewable Power 2008 - Present ¾ Airtricity sold in 2007 for $1.8bn to EoN, SSE ¾Founded in 2008, Mainstream develop, construct, own and operate Onshore wind, Offshore wind and Solar PV plant ¾Mainstream has its head offices in Dublin (Corporate) and London (Offshore) with local offices in each of : ¾UK, Germany, USA, Canada, South Africa, Chile, China ¾The company has a total development pipeline of over 16 GW in seven target markets across four continents ¾150 + employees ¾Over 400 MW Solar PV and Onshore wind projects in construction in 2013 Mainstream Global Footprint The Global Energy Landscape Increasingly Dominated by Several Megatrends ¾An ever increasing demand for energy ¾Fossil fuel price escalation, volatility & scarcity / finiteness (Energy Security) ¾Actuality of global warming and its effect on global climate ¾A stated realisation by many forward thinking nations & companies that economic sustainability will require more electricity generated by and procured from renewable plant The world is now experiencing a once-off transition to sustainability....to survive and thrive, each country and company must go through this transition Mainstream is a dynamic and flexible platform to deliver wind and solar plant in response to the global transition to renewable energy Traditional Business Model – Demand Driven By Govt Government Policy Utility PPA Project Development Recycled Cash for New Projects Project Construction Asset O & M Revenue Stream Profit From Sale Developer Fee Merchant Long Term O&M New Trend - Demand Driven by Corporations Corporate Appetite Government Policy Project Development Recycled Cash for New Projects Project Construction Asset O & M Revenue Stream Profit From Sale Long Term O&M Developer Fee Disseminating Customer Segments – Customers can seek investment in and purchase of renewable electricity differently ¾ Passive Buyer is : – served directly by the utility – seeks participation through the voluntary market – seeks utility that can provide renewable electricity through existing supply infrastructure – Utility participation required We offer the active buyer / investor the means to maximize their energy ¾ Active Buyer / Investor is: – Seeking to diversify and secure supply – Seeking to gain competitive advantage through reducing energy costs given declining RE capital costs – Seeking competitive advantage through developing a sustainable product – Seeking to hedge rising electricity costs – Seeking to diversify investment into a new asset class generating IRR of . >10% ¾ Mainstream Active in this market Active Buyer – The Sustainable Corporation Customer Profile ¾ Major Consumer Brand with strong focus on sustainability ¾ Sustainability strategy focus on 9Carbon Neutral in each market 9Demonstrate sustainability to customers 9Energy hedge 9Attractive returns Mainstream Role ¾Completed equity sale negotiation 2012 ¾Deliver project in 2013 ¾Deliver low double digit ROE (10%12%) The Active Buyer –The Direct RE Electricity Purchaser Fully Integrated RE Buyer – Market Example ¾ Rio Tinto / Harry Winston diamond Mine • 350km south of Arctic Ocean • Accessible by seasonal winter road two months of the year (road cost $23m) • 1,665 workforce • 18.9mt @ 3.1ct / t • Avge. temp – 35deg Diavik Wind Farm - Incumbent System ¾Total installed capacity 45 MW ¾Typical load is 15 MW summer and 21MW winter ¾ Online available capacity 30 MW ¾Current policy is to run @ 8095% of generator capacity ¾Currently spinning reserve maintained between 1 – 2 MW 50m litres diesel @ $60m per year Power availability critical for operational performance and safety Outcomes & Return ¾ 9.2 MW wind farm ¾ Low penetration of renwewables onto the incumbent system at 25% ¾ Long lead time to develop 8 years But..... ¾ 10% reduction in fuel = $6m p.a. ¾ Simple payback of approx 6 yrs (mine life is 12 yrs) ¾ Reduced transport costs ¾ More sustainable operation ¾ More profitable operation ¾ Greater shareholder value ¾ Significantly improved local stakeholder relations ¾ Co2 reduced by 12,000tp.a (6%) Knowing Our Customer is Key Creditworthiness Organisational Level Information Long Term PPA RE Market Lender BOOT or Fee Private Equity Product / Service / Commodity Risk Customer Balance Sheet Geo-political TOD Variation Operational Level Information TOY Variation $ /kW AC/ DC Energy Consumption & use Critical vs non Critical Cost & Billing Per Load Power Quality requirements Contract Penalties TOU / Peak Net Meter G.A Hidden Charges Tax Credits Accelerated Depreciation Policy & tax incentives Contract Flexibility Supply Options Grid Availability Grid Quality Back-up Securing Competitive Advantage - Getting RE directly to the customer in the manner they want it ¾ Customer focused developer actively interfacing with customers i.e. Industrials, Mines, Data Centres, Sustainable Corporations, Island economies ¾ Track record in delivering derisked RE Assets in diverse global markets ¾ Highly experienced management & personnel collectively responsible for delivering 000’s MW of RE plant ¾World leader in Automation & Power Technologies ¾Bankable products, customer recognition & trust, global reach ¾ Dedicated Smartgrid division with a dedicated unit specializes in hybrid-energy control systems ¾ Specialized Data Centre product “Decathlon” MOU signed February 2013 ABB - Serving data center Customers with group strength 145,000 employees Systems, products, services Operating in 100 countries $1Bn annual R&D spend Datacenter Hubs: SG, EU, US © ABB Group March 14, 2013 | Slide 19 Data Center on a Microgrid PV Generation Thermal Storage Backup Generator And UPS Data Center Wind Generation Local Substation Distributed Generation Large Scale Battery Storage Utility Power Plant Fuel Cell 20 Microgrid Intelligent Power Distribution Today – Automatic Transfer Switch Utility Power Tomorrow – AC or DC Distribution Bus Utility Power ATS Generator UPS IT Generator UPS Batteries Cooling Cooling IT Either / or configuration If Utility feed is off: -- UPS holds IT load -- Cooling stops Cooling back as soon as generator comes on Generator maintenance requires load bank or ATS flip © ABB Group March 14, 2013 | Slide 21 Solar/Wind Synchronized configuration with variable input control If Utility feed is off: -- UPS holds load for IT -- Cooling can run off the batteries Co-generation capabilities Generator maintenance cycles usable Battery capacity usable for regulation Improve Energy Efficiency and Reduce Expenditure Reduce cooling and power demand at optimal periods Energy Management Remote Monitoring Asset & Capacity Management Building Management Maintenance Management Server Optimization Change Management Operations Load Management Enterprise Data Historian SECURITY © ABB Group March 14, 2013 | Slide 22 Convergence Power Management IT Facility Improve Energy Efficiency and Reduce Expenditure Demand Response and Optimal Purchasing Decathlon Energy Management – steps 1. Predict your future needs at any point 2. Analyse real time pricing and opportunities for (e.g.) DemandResponse, Load Shifting 3. Execute: Trade and settle Decathlon – how to manage energy Demand Response: Predict power usage based on critical load use patterns, weather data, etc. and act automatically to reduce load by e.g. increasing cold aisle temperatures temporarily within SLA’s increase free cooling initiate renewable and/or generator paralleling shifting compute load © ABB Inc. March 14, 2013 | Slide 23 Delivering the Customer a Customized RE Solution •Downstream Competition •Constantly Improving technology •Leading Customerfocussed Developer •Market diversity • Flexible Delivery Platform •Product Range •Power Quality •Bankability Customer Specification Customized REnergy Solution Thank You !
