Kenneth AlstonSpecial Advisor to the Secretary U.S. Department of Energy

3rd Annual Green Investment Financing Forum (GIFF)Tokyo, Japan

October 14, 2016

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Overview: U.S. Department of Energy

Department of Energy at a Glance:¨ Mission: To ensure America’s

security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.

¨ Budget: $32.5 billion (FY 2017 Request)

Dr. Ernest Moniz, U.S. Secretary of Energy

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COP 21: Paris

INDCs: Individually Determined National Commitments• 188 binding INDCs made

covering 99% of global emissions

• Reaffirms 2 degree C target

Mission Innovation: • 20 country commitments to

expand clean energy R&D, covering more than 80% of global carbon emissions

• Private sector investors to form a Breakthrough Energy Coalition, coordinated by Bill Gates

Mission Innovation Announcement at Paris COPNovember 30, 2015

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The Cleantech Valley(s) of Death

1st Valley of Death 2nd Valley of Death

Demonstration: DOE Applied Science Programs

• Energy Efficiency & Renewable Energy ($2 B/ yr)

Commercial Maturity

Tech

nolo

gy M

atur

ity

R&D: DOE National Labs

ARPA-E ($300 MM/yr)

Commercial Financing:

Private Sector Financing (Banks &

Bond Market)

DOE Programs Support the Full Arc of Commercialization

Most Least Technology Risk

Initial Commercial Deployment:

DOE Loan Programs Office (LPO)

($32 B Portfolio)

Leas

tTe

chno

logy

Mat

urity

Mos

t

Debt: US Gov’tEquity: PrivateGrants Grants

Debt: PrivateEquity: Private

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Revolution Now Report: Exciting Future from Economies of Scale

Solar PV Wind

Lithium-Ion Batteries LED Lighting

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New Financing is Required for Energy Infrastructure

¨ The Need for New Investment in Clean Energy:¤ Worldwide: $44 trillion in additional clean energy investment

needed worldwide through 2050, in order to have an 80% chance of maintaining 2 degrees Celsius limit (International Energy Agency, Energy Technology Perspectives Report, 2014)

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The need for additional sources of clean energy technology investment

¨ Private investment in R&D (as % of sales)20.5%

11.5%

7.9%

2.4% 0.4%

Pharmaceuticals Aerospace & Defense

Computers & Electronics

Cars/Automotive

Energy

Source: American Energy Innovation Council, Catalyzing American Ingenuity: The Role of Government in Energy Innovation, 2011

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DOE’s 17 National Laboratories are the largest supporter of basic research in physical sciences in the United States.

Department Of Energy National Laboratories

DOE Office: Loan Programs Office

Mission: Accelerate the U.S. commercial deployment of

clean energy and advanced vehicle technology

Diverse Portfolio: Loan authority for fossil energy,

renewable energy, nuclear, and advanced vehicles

160-person finance, engineering, and legal teamPortfolio of more than $30

billionMore than $40 billion in remaining loan authority

Note: The current portfolio includes loans, loan guarantees, and commitments.

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Note: Total values include estimates for undisclosed deals.Source: Bloomberg New Energy Finance

14 October 2016

US VC/PE NEW INVESTMENT IN CLEAN ENERGY 2004 - 2015 ($BN)

● Early- and late-stage VC funding rounds as well as funds raised privately for the purposes of expansion by companies that are primarily involved in the clean energy industry according to BNEF exposure ratings.

0.64bn

1.36bn

2.63bn

3.83bn

6.85bn

3.86bn

5.72bn 5.48bn

4.49bn

2.11bn

3.29bn 3.39bn

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Energy smart technologies Solar Biofuels Wind Other

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White House Clean Energy Investment Initiative

White House Clean Energy Investment Summit

¨ $4 billion in private sector investment commitments

¨ More than 100 private sector participants

¨ Announced the US Department of Energy's Clean Energy Investment Centerwww.energy.gov/investmentcenter“You have the capacity to fundamentally

change our direction... We need you to continue to work to bring even more philanthropies and investors on board.”- Vice President Biden, June 16, 2015

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DOE Office: ARPA-E¨ Description: The Advanced Research

Projects Agency-Energy (ARPA-E) invests in disruptive ideas to create America’s future energy technologies. ARPA-E focuses exclusively on early-stage technologies that could fundamentally change the way that we generate, use, and store energy.

¨ Project Portfolio: ARPA-E is investing in more than 400 high-potential energy technology projects across 18 focused program areas. Average awards are $2-3 million over several years. More than $1 billion in grant funding has been dispersed to-date.

¨ Fiscal year 2016 Budget Request:$325 Million