CLA - Oxford Workshop Wednesday 11th February 2009

“Generating a Return”

Fiona HildickRenewables Trading Manager

TradeLink Solutions Ltd

Focus on Renewables

2

Overview

� Introduction to Tradelink

� Renewable Obligation Order

� Revenue Streams

� Accessing the benefits

� Questions

3

Who are TradeLink?

� Renewable Energy Company

� Renewable Generator

� Commercial Service Provider - “Green Services “

� Energy Consultancy

� Training

4

Our Renewable Projects

� Plant in Scotland, Cumbria and Wales

� Development prospects

� Total Capacity

� Operation and Maintenance

5

Why Invest in Renewables?

� Climate Change

� Your Supply Bill

� Spill sales to Grid

� Renewable Generation Benefits

� Grant funding

6

The Renewable Obligation

� Government Scheme

� Ofgem

� Supplier Compliance

7

Renewable Obligation Order

1st April 2006-31st March 2007 6.7%

1st April 2007-31st March 2008 7.9%

1st April 2008-31st March 2009 9.1%

1st April 2009-31st March 2010 9.7%

1st April 2010-31st March 2011 10.4%

1st April 2011 31st March 2012 11.4%

1st April 2012-31st March 2013 12.4%

1st April 2013 -31st March 2014 13.4%

1st April 2014-31st March 2015 15.4%

8

Renewables Obligation Order-

Accreditation with Ofgem

� Renewable generator must be Accredited with Ofgem,

� Accredited for Renewable Obligation Certificates (ROCs), Levy Exemption Certificates (LEC’s) and Renewable Energy Guarantee of Origin Certificates( REGO’s),

� Most of these certificates can be sold to provide a monthly/annual income.

9

What are ROC’s?

� Renewable Obligation Certificates (ROCs)

� 1 ROC = 1MWh of “green” electricity (1000kWh’s)

� ROC Value (= Buy Out + Recycle)

� ROC Market

� Banding

10

What are LEC’s ?

� Climate Change Levy (CCL) and Levy Exemption Certificates (LECs)

� 1 LEC = 1MWh of green electricity (1000kWh’s)

� LEC’s Value

� LEC Market

11

What is a REGO?

� REGO – Renewable Energy Guarantee of Origin

� 1 REGO = 1kWh of green electricity (1000 REGOS per MWh)

� REGO’s Value

12

Exported Electricity – selling to the

grid

� Current Climate

� Wholesale Market fluctuates constantly

� First step – contact your DNO

13

What are embedded benefits?

� Savings made by a Supplier

� Most common benefit is “Triad Payment”.

� National Grid pay the Triad Payment to the supplier

� Value is unknown each year.

14

Commodities and Electricity Variance March 2008 - Sep 08 (Summer 2008)

0

50

100

150

200

22/02/2008 12/04/2008 01/06/2008 21/07/2008 09/09/2008 29/10/2008

Date

Pri

ce

Oil ($/bbl)

Av. Elec. (£/MWh) (6 monthahead)

Av. Elec. (£/MWh)

Gas (p/th)

15

Commodities and Electricity Variance Since October 2008 (Winter 2008)

0

50

100

150

200

09/09/200

8

29/09/200

8

19/10/200

8

08/11/200

8

28/11/200

8

18/12/200

8

07/01/200

9

27/01/200

9

16/02/200

9

08/03/200

9

Date

Pri

ce

Oil ($/bbl)

Gas (p/th)

Av. Elec. (£/MWh)

Average Elec S/W 09(£/MWh)

16

Revenue Stream for Micro Generator

Element Market Value

(£/MWh)

Revenue to Generator £/MWh

Electricity Sales 40-55 35-50

ROC Sales 53 45-50

LEC Sales 4.56 4

TOTAL £84-£104

17

Accessing the Revenue Streams –

Choosing your PPA

� Value of electricity and renewable benefits determined by whether project is Bank Financed or Financed on Balance Sheet

� PPA Options include:

– fixed price package

– discounted market price package

– market rate less a service fee package

– split products and sell individually

� Importance of timing and good advice

18

If in doubt……….

TradeLink Solutions can do all of this for you…….

� Buy the electricity and LEC’s,

� Get the site accredited with Ofgem,

� Manage the interface with Ofgem,

� Submit meter readings,

� Sell your ROC’s and secure you an annual/monthly income,

� Give free advice and guidance

19

THANK YOU

Fiona Hildick

TradeLink Solutions Ltd,1st Floor Batchworth Lock House,

99 Church Street,Rickmansworth,Hertfordshire,

WD3 1JJ,

Tel: 01923 713840Email:

renewable@tradelinksolutions.com