Strictly Confidential
Standard Chartered Bank
Renewable Energy & Environmental Finance
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Standard Chartered Bank – 150 years and Growing
 Listed on London and Hong Kong Stock Exchange
International footprint
Focus on Asia, Africa and the Middle East
 Focus on Asia, Africa and Middle East
 Presence in London/EU, New York and Americas
 Footprint covers 70 countries with 73,000 employees
and 115 nationalities
 “One-stop shop" bank across debt, M&A, equity and
principal (250 professionals)
 15,000 banking client relationships
 Dedicated Renewable Energy & Environmental
Finance (REEF) teams in London and Singapore
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SCB’s Approach to Renewable Energy & Environmental Finance
“REEF” –
Global Issues / Local Deals
Renewable Energy Key Pillar of REEF
SCB footprint
Agriculture
/ Forestry
• 70% of population / 60% of energy growth
• 75% of CO2 growth
• +/- 50% of key RE resource
Renewable
Energy
+
Environmental
Finance
Phase II
Phase I
Water/
Waste
Renewable
Energy (RE)
• Energy for water distribution
• Water in energy generation
Phase I : REEF strategy (present) focus
Phase II : REEF strategy (expanded) focus
Sector / Policy is
Global
Europe
US
• Policy support
• Policy Leader
• Implementation
• “Green” stimulus
experience
• “Best in class” Technology
and VC / PE
“You don’t solve problems using the same kind of thinking that got you into the problems in the first place”
Albert Einstein
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SCB Activities in REEF Sector
Policy / Strategic Initiatives

World Economic Forum – serving on the expert committee on Green Investing and Water initiatives

Member of Carbon Finance Working Group for Project Catalyst (McKinsey’s work to support the Global Deal)

Steering committee for IFC-McKinsey’s Global Microeconomics of Water Project

Corporate sponsors for McKinsey’s Climate Change Adaptation Project

Corporate Sponsors for the China Greentech Initiative – an in depth collaborative analysis into the Chinese Cleantech sector

Energy efficiency financing through a partnership with Asia Development Bank – worth >USD100m over 9 years
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SCB Footprint – Endowed with Abundant Solar Energy
SOLAR ENERGY
 Regions circled have solar potential
of 261,649TWh
- Global Electricity Generation in
2008 was 20,202TWh i.e. solar
energy potential in selected
regions 13x higher
 Installed capacity estimated for 2008
of ~15 GW** - under 1% of the solar
resource potential
 Compelling scale and cost
characteristics
 Market growing at 40% - 50% CAGR
 Global policy support strengthened
with the government stimulus
packages (US, China, South Korea,
etc)
STANDARD CHARTERED BANK
SCB Footprint
 60% of the global solar energy
resource is in Standard Chartered
Bank’s footprint
 Many of our markets suffer from
chronic under investment /
undersupply in / of energy
 Solar energy generating assets
require significant project finance –
core strength of Standard Chartered
Bank
 Many of our clients, including
corporates, financial sponsors, and
development organisations are
interested in solar
* Source: World Energy Assessment: Energy and the Challenge of Sustainability,
UN/UNDP/World Energy Council, 2005
** Source: New Energy Finance
"I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait till oil and
coal run out before we tackle that" Thomas Edison (1931)
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Solar Energy Sector – Markets & Applications
INSTALLATION SIZE
 Europe leads the way with ~9 GW
representing ~65% of the global
cumulative PV installed capacity (with
Japan and the US at 2.1 GW and 1.2
GW, respectively)
 Current solar market so far
dominated by small scale, residential
PV installations
 Increased government support –
particularly in the form of feed-in
tariffs – is driving momentum in the
utility scale installations (PV and
Concentrated Solar Power (“CSP”) in
particular)
< 10kW
10 to
100kW to
1 to
10MW to
100kW
1MW
10MW
100MW
> 100MW
RESIDENTIAL
MARKETS
COMMERCIAL
SERVED
UTILITY
Non-Tracking PV
PV
TECHNOLOGY
 World solar PV market installations
reached a record high of ~6.0 GW in
2008 and cumulative PV power
installed totalled ~15 GW compared
to ~9 GW in 2007
Tracking PV
Concentrated PV
Dish-Engine
Parabolic Trough
CSP
Power Tower
Linear Fresnel
2008 Solar Demand
~ 1.7 GW (28%)
~ 1.6 GW (27%)
~ 2.8GW (45%)
2009 Solar Demand (estimated)
~ 2.0 GW (44%)
~ 1.2 GW (26%)
~ 1.4 GW (30%)
Spain, Germany
US, Spain
Main Geographies
Germany
Distributed generation: <10KW – 1MW; Central Generation: <1MW - >100MW
(i) Residential: Residential Buildings (ii) Commercial: Commercial / Industrial Buildings (iii) Utility: Large Scale
Source: Prometheus Institute; Solarbuzz; Barclays Capital Research; Standard Chartered Bank Analysis
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CSP Technologies
ALTERNATIVE CSP TECHNOLOGIES
• Scalability of CSP technology will
drive the global increase in solar
energy installed capacity
Trough
Linear Fresnel
Tower
Dish Engine
>20 years
-
< 2 years
-
Low
Medium
Medium
High
Optimal Scale /
Modularity
50MW to >
100MW
50MW to > 100MW
50MW to > 100MW
100kW to > 100MW
Construction
Requirement
Demanding
Simple
Demanding
Moderate
400 oC
316 oC
250 – 500+ oC
800 - 900 oC
11 – 14 %
9 -11 %
15 – 22 %
24 – 31 %
Yes
Yes
Yes
No
Current:: 0.12 – 0.17
Current:: 0.10 – 0.15
Current:: 0.12 – 0.30
Current:: 0.10 – 0.12
Future: 0.06 – 0.08
Future: 0.06 – 0.08
Future: 0.06 – 0.08
Future: 0.05 – 0.08
Water usage
High
Medium
High
Low
Land
Requirement
High
Low
High
Variable / Flexible
Abengoa,
Acciona,SkyFuel,
Solel, Solar
Millenium,
Sopogy
BrightSource, eSolar,
SENER,
SolarReserve,
Abengoa
Ausra, Novatec
Biosol, SkyFuel,
Solar Power Group
Stirling Energy
Systems (SES),
Infinia, Abengoa
Commercial
Experience
Technology Risk
• Levelised Cost Of Energy (LCOE) –
determining factor in establishing
leading CSP technology and vis-àvis other renewable energy
technologies (e.g., become the
First Solar of CSP)
Operating
Temperature (oC)
Efficiency (%)
• Flexibility around water, land, and
components are key to the SES
story / strategy
• Storage potential of most CSP
technologies represents a
comparative advantage to wind
energy
Storage
LCOE ($/kWh)
Leading
Developers
Source: Technology Innovation Report, Concentrated Solar Thermal, Cleantech Group, 2008; DLR; SCB research
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Current Activity in the CSP Sector….
Strategic
Technology
Activity
Siemens acquisition of Israeli manufacturer and developer Solel Solar
Systems for USD 418m (Solel H1 2009 revenues US$90m)
Date
Public Statement
October 2009
"Siemens and Solel are a perfect match, and, In the future will
be able to offer the key components for the construction of
parabolic trough power plants from a single source and to
further enhance their efficiency.”
Siemens acquired 28 percent stake in Italian solar company Archimede
Solar Energy S.p.A., expanding its competencies for solar thermal
power plants
March 2009
Solar Millennium and Man Ferrostal formed a JV to construct STEG
power plants leveraging Man Ferrostal’s experience as plant constructor
and general contractor. Man Ferrostal has also recently bought projects
under construction by the JV
May 2007
“Combination of both technologies will enable Siemens to
enhance efficiency and reduce production costs for CSP.”
“With this joint venture, we are consequently pursuing our
strategy of cooperating with strong partners in the respective
business sectors to optimally utilize market potentials."
Solar Reserve’s technology and engineering support from United
Technologies
January 2008
“United Technologies provide a technology wrap for the
equipment and technology, providing the guarantees and
warrantees necessary to develop solar projects.”
BrightSource Energy will utilise its solar thermal technology for steam
generation for Chevron at Chevron’s oil field in Central California
August 2009
"It gives BrightSource Energy an an opportunity for this
potentially lucrative secondary market (steam generation) and
help Chevron with carbon reduction."
Bechtel Corporation will build 440MW of solar plants in the Mojave
Desert for BrightSource Energy. Bechtel Enterprises, the project
development and financing arm of Bechtel Corp. will become an equity
investor in all of the Ivanpah solar power plants.
September 2009
“Combining Bechtel’s world-class EPC capabilities with
BrightSource’s leading solar thermal energy team is a natural
fit.”
Luz II Ltd., a subsidiary of BrightSource Energy, and Dalkia, the energy
division of Veolia group in Israel, have joined forces for the purpose of
the construction of solar thermal plants in the Middle East
September 2008
“Combination of Dalkia’s expertise in the construction and
development of solar plants and Brightsource’s technology.”
eSolar selected ABB because of its power generation balance of plant
expertise, its ability to co-develop the balance of plant controls design
and meet accelerated project schedule demands, and because ABB is
an established international power and automation solutions provider
June 2009
NRG and eSolar joined forces to develop 92MW of CSP projects in New
Mexico – part of a wider 500MW of CSP projects in California and
across the Southwestern United States
May 2009
ABB - contracted to work with eSolar to tackle key challenges
for large scale solar installations, (i) price, (ii) scalability, (iii)
speed of deployment, and, (iv) grid impact.”
“NRG provides resources and development expertise to work
alongside eSolar’s technology.”
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Opportunities for CSP market development
Supportive Regulatory Regimes
 Regimes with Strong policy support in the form of
PPA’s, FIT’s and wide ranging initiatives to promote
renewable energy and in particular solar energy
8.0
Egypt & Libya (7.67)
California (7.50)
Jordan & Algeria (7.40)
 US, West Coast – California
Morocco (7.12)
Saudi Arabia (6.85)
 Spain
Mexico (7.00)
Tunisia (6.58)
 Australia
Attractive Solar Resources
Energy Density
kWh / m2 / day
 Italy, Portugal, Greece
Spain (6.16)
Portugal (6.03)
UAE (6.03)
6.0
Australia (5.89)
Turkey (5.48)
Greece & Italy (5.48)
 High Energy Density Levels –
however with current low to medium
level of Government Support
 Egypt
4.0
Low
 Morocco
 Algeria
 Tunisia
Germany (4.58)
Opportunity to strategically
engage Development
Organisations
Government Support
High
Key North African Markets
 Gulf Region
Source: Concentrating Solar Power for the Mediterranean Region, DLR, 2005 (figures are average for country)
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