Renewable Energy
Business Opportunities in
the U.S. for International
Firms
Value Proposition
• Assist and partner with companies interested in entering
the U.S. Renewable Energy Market
– Acquire and restructure existing operating and latestage development (i.e. shovel-ready) renewable
energy projects that are current distressed;
– Bid on new Utility request for proposals (“RFP”) for
renewable energy projects; and
– Access experienced Asset Management and
Consulting Services, as required by the investor
The Team
• Proven and accomplished energy professionals
• Focused on transaction execution
• Commercial, engineering, financing, tax, risk and market
expertise
• Deep and long-term industry relationships
• Integrated knowledge of repatriation and tax treatment
in Spain and the US
Partnerships
• Compensation Structure in alignment with equity
positions
– Employee contracts – fixed contracts for with
termination provisions
– Development fee – Percent of the Project Value (i.e.
turnkey EPC price)
– Residual / Corporate value – Percent ownership of
NewCo
Relationships
• Utilities/Industrials
• EPC
• Vendors
• Financial (debt financing, dev loan, credit facilities)
– Morgan Stanley, Credit Suisse, RBS, West LB, HSH
• Consultants
– RW Beck, SL, BV, Van Scoyoc
Implementation Strategy
• Market Overview
• Overview of Capital Requirements
• Financing Plan – Develop Real Project with Real Returns
• Corporate Operational Expenses
• Exit Strategies
Market Overview
• $60 billion of renewable energy projects; under
development, under construction or placed on hold
• Credit and Tax Equity markets are on hold
• Existing renewable energy developers are liquidating
their projects and portfolios to raise cash
• Developers have been forced to defer their development
fees
• EPC companies are lowering their bids to win
construction projects
• Equipment costs have fallen both from the vendor and
on the secondary markets
• Equity and distressed investors are testing the market
Capital Requirements
• $200 Million commitment of financial resources over 36
months
• $30 -$50 million in available cash to support initial
investment activities, subject to senior management
approval
• Additional investment capital provided upon proven
success
• The ability to provide parent guarantees, Letters of
Credit or a credit facility to support investment activities
Financing Plan
• Utilize Financial Leverage by entering into power sales
agreement with creditworthy counterparties
• Utilize realistic project projections; i.e., forward
commodity prices, operational and CapEx costs, and
construction costs; for project structuring
• Utilize federal cash incentives to support the project’s
capital structure by accessing the federal grant window
• Implement professional asset and construction
management oversight
Repatriation taxes - Spain
•
Spain - U.S. Tax Treaty:
– Distribution of Dividends from a U.S. Co. is subject to U.S.
Withholding tax of 10%, but future repatriation of accumulated
reserves upon liquidity is non-taxable in the U.S.
– Capital gains obtained by the Spanish Co. in the sale of its shares
from its’ U.S. subsidiary is non-taxable in the U.S. (except if it is
considered a real estate holding company)
•
Spanish Corporate Tax:
– Dividends from the U.S. Co. and its’ capital gains obtained from
the sell of its shares are exempted in Spain if the following legal
conditions are met: among others, own more then 5%of the U.S.
Co. for more than one year, etc.
Disclaimer: These are general guidelines, but should not be used as a fiscal advice without checking with your Tax advisor on a case by case scenario.
Experience
•
18 years experience in government, media and public relations.
–
Energy, Infrastructure, Trade, Federal and State and access to leading
advocacy company in the US.
•
16 years experienced Renewable Energy Financial Executive
–
Debt Equity, Structured Finance, Mergers, Acquisitions, Divestitures, Tax and
Private Equity, Venture Capital, Project Financing and Credit Arrangements,
Investment Appraisal and Economic Evaluations.
•
17 years experience in energy the energy industry
–
Risk Management, Management Consulting, Contract Negotiation,
Financing, Compliance, Audit and Valuation.
Contact Information
Alex Morales
Managing Director
2961 Hunter Mill Road
Suite 627
Oakton, VA 22124
Tel.: 703.273.0391
Cell: 703.789.1124