CONFIDENTIAL AND PROPRIETARY Invenergys Views on Cogeneration
Opportunities Presented to: April 30, 2015
Slide 2
CONFIDENTIAL AND PROPRIETARY 2 Table of Contents Intro
Invenergy Background UP Project Background Cogen Experience Cogen
Viewpoints Key Takeaways
Slide 3
CONFIDENTIAL AND PROPRIETARY 3 Invenergy develops, owns, and
operates wind, solar, energy storage, and natural gas power
generation facilities in North America and Europe. Invenergy is
headquartered in Chicago and employs over 600 people globally.
Invenergy is the largest independent wind power company in North
America. Currently the 5 th largest wind owner in the U.S.
Invenergy has developed over 10,000 MW of utility-scale projects
worldwide. Invenergys experience with developing and constructing
transmission infrastructure rivals that of many utilities weve
built more than 300 miles of EHV transmission lines. Invenergy is a
project finance leader, having raised well over $15 billion since
our inception in 2001. Invenergy Background
Slide 4
CONFIDENTIAL AND PROPRIETARY 4 Our track record of developing
clean energy projects extends over a decade. As of April 1, 2015;
includes projects that are under construction, under contract, or
build-transfer Cumulative Capacity (MW)
Slide 5
CONFIDENTIAL AND PROPRIETARY 5 Our development and operational
experience spans all major markets. As of April 1, 2015 Project Mix
by Market/Geography (MW) 13 Projects 524 MW 6 Projects 469 MW 1
Project 27 MW 3 Projects 223 MW 4 Projects 594 MW 8 Projects 1,334
MW 7 Projects 1,154 MW 9 Projects 816 MW 7 Projects 681 MW
Slide 6
CONFIDENTIAL AND PROPRIETARY 6 IOUsPublic Utilities & Coops
Financial & Other We have successfully executed many PPAs and
hedges, meeting the specific needs of a wide array of customers.
This list is not exhaustive.
Slide 7
CONFIDENTIAL AND PROPRIETARY 7 The fleet-wide availability of
our wind fleet is 96.6% since COD (1) (2) among the best in the
industry. We do not outsource O&M resulting in a significantly
higher turbine performance rate. Invenergy operates nearly 6,000 MW
of wind, solar and thermal generation. Invenergys Control Center in
Lombard, IL is staffed 24 x 7. Invenergys in-house engineers
constantly monitor and optimize performance of our fleet. Our power
schedulers, operations engineers, and asset managers collaborate
closely and constantly share knowledge. (1)Weighted average for the
portfolio from inception through February 28, 2015. (2)Includes all
effects of turbine, transformer, substation or other mechanical
unavailability including during initial shake out period
Slide 8
CONFIDENTIAL AND PROPRIETARY 8 UP project background
Slide 9
CONFIDENTIAL AND PROPRIETARY 9 Invenergys executives have
extensive cogen development experience. Over 30 years of experience
9 projects totaling more than 2,500 MW of CHP facilities built.
Currently more the 1,200 MW of CHP capacity in late stage
development. ProjectLocationHost Hog BayouAlabamaPaper Pine
BluffArkansasPaper Santa RosaFloridaChemical
CarvilleLouisianaChemical Androscoggin MainePaper CorinthNew
YorkChemical IlionNew YorkPaper OleanNew YorkPaper OswegoNew
YorkManufacturing TonawandaNew YorkPaper Columbia South Carolina
Chemical Corpus ChristiTexasRefining
Slide 10
CONFIDENTIAL AND PROPRIETARY 10 Multiple barriers exist for the
development of cogeneration projects. The overall benefit of
reduced emissions is not always recognized under existing air
regulations. Inconsistent interconnection and back-up power
standards across RTOs and Electric Distribution Territories. Access
to open market for power sales is available only to areas covered
by RTOs. Each RTO market offers different market mechanisms for
power and energy sales. Rules and regulations guiding retail sales
of power and other energy sales of on-site power generation can be
unclear.
Slide 11
CONFIDENTIAL AND PROPRIETARY 11 Our viewpoint on cogeneration
Overall, the Cogen industry is well-positioned for growth in light
of CO2 regulations. Net-net Cogen is much better for the
environment than traditional fossil generation. Lower heat rates
(higher efficiencies) Fewer line losses Its a limited but growing
market as project economics improve due to lower natural gas
prices. Pursuit of Cogen opportunities makes the most sense in
established markets such as MISO, PJM, ERCOT, and CAISO. Project
size can be optimized to sell energy to the market, lowering the
hosts all-in power costs. Lower emissions & compliance
costs
Slide 12
CONFIDENTIAL AND PROPRIETARY 12 Key Takeaways The power sector
is rapidly changing. New technologies and the unknown effect of
regulations are inherently de-stabilizing for market participants.
Its difficult to understand rights, rules and responsibilities as
they pertain to a hosts electric service provider and the RTO.
Every site is different and requires its own analysis. There are a
number of favorable Cogen opportunities in Michigan and across the
US, especially in light of rapidly aging infrastructure. It takes
patience, expertise and resources to fully determine the value
proposition of a Cogen project for a given companys site.
Slide 13
CONFIDENTIAL AND PROPRIETARY 13 Questions Contact Information
Questions and Contact Information Craig Gordon Vice President,
Sales & Marketing 312-582-1467 [email protected] Brennan
Downes Senior Manager, Business Development 312-582-1250
[email protected]
