Investcal Renewable Powerpoint

Renewable Energy
Business Opportunities in
the U.S. for International
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
• Deep and long-term industry relationships
• Integrated knowledge of repatriation and tax treatment
in Spain and the US
• Compensation Structure in alignment with equity
– 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
• Utilities/Industrials
• 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
• 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
• $30 -$50 million in available cash to support initial
investment activities, subject to senior management
• Additional investment capital provided upon proven
• 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.
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