3. 3
IEA says we need $5T more than BAU by 2020
Source: US EIA
4. 4
Electricity Rates have risen faster than inflation
Source Electric Power Monthly, DOE/EIA-0226; and Electric Power Annual, DOE/EIA-0348.
5.5
6.5
7.5
8.5
9.5
10.5
11.5
12.5
13.5
14.5
15.5
16.5
2000 2002 2004 2006 2008 2010 2012
Energy(cents/kwh)
New England Middle Atlantic Pacific
West South Central South Atlantic East North Central
East South Central Mountain West North Central
Source: US EIA
6. 6
2009, National Academy of Sciences Study
Impact of fossil fuel on healthcare system:
$120B per year
Coal and Oil:
– $60B each in health impacts
– 30,100 premature deaths annually
– Over 5,000,000 workdays lost
Not included: environmental damage from
coal mining, pollution of rivers from coal plant
smokestacks to keep the air clean.
7. Energy uses more water than agriculture
--more water than cities or ourselves.
--Energy responsible for 50% of US water withdrawals
8. What we believe
Global scarcity in natural resources
Transformations have begun resource extraction,
use and disposal (or re-use)
Investors are over-exposed to the risks with these
trends, and under-exposed to the opportunities
Solutions to these risks represent “the largest
wealth creation opportunity of our lifetime”
8
9. 100
- 100
- 50
0
50
$/tonofCO2
Source: McKinsey & Co Cost Curve (over-simplified by CWR)
Focus – The Economic Opportunity
Buildings
Transportation
Manufacturing
Low-Carbon
Fuels
Renewable
Energy
Carbon
Capture &
Storage
Other
Innovations
Climate Wealth starts with the >50%
of the climate solution that makes great
business sense right now…
Land Use
tons of CO2e
Renewable
Electricity
10. Climate Wealth Law
Due to continuous technology
innovation ~50% of the greenhouse
gas emissions will always be
profitable to eliminate – held up
only by lack of effective business
model and financial innovation.
12. Solar PV: Why we are winning
$100B business in 2013
• Passionate Industry
• Activated Local Advocates
• Know how to sell small systems –
avg size in 2013 in USA is 33kW
• Policymakers can smell grid parity
20% of global electricity is now
more cost effective with Solar PV
Capital:
9% returns
Regulation:
Diversification;
Reliability
Innovation:
Distributed
Solar PV
Market:
Fast Rising
Electricity
Costs
13. 40,000 MW additional projects by 2017
- 1,000,000 projects average 50kW each
- $100B investment, $1B in commissions
- We are short sales and business development
14.
15. Who actually invests in this stuff?
We are on track for $5T by 2020 and now we need
another $5T into climate wealth solutions to win.
Money is not coming from divestment or impact
investing, it is coming from mainstream capital
16. Who holds the Money?
Everyone is Focused here
Leadership has come
from here
Everyone should be
focused here
17. What about Impact Investing?
Criteria Range Target
Unlevered project* IRR 12%-20% 16%
Project duration 3 -15yrs 8 yrs
Return multiple 1.5x-3x 2.5x
Project size $0.5M-$10M $5M
Total deployment per company $1M-$25M $15M
Inflation protection none Energy index
1. Make an impact on a pressing problems
2. Generate compelling risk adjusted returns for
investors
3. Get people to follow you at $ Billion scale
18. What about Impact Investing?
Performance Risk Mitigation
1. Maturity of technology At least 3 yrs of commercial deployment in one
location
2. Transaction Costs Preference for products vs. engineering projects
3. Predictability of revenue Our revenue is predictable and not subject to
merchant commodity risk without a credit backstop
4. Vendor viability Vendor can be replaced on both parts or
maintenance
5. Vendor geography Focus on US and to a lesser degree EUCollection Risk Mitigation
6. End customer viability Aligned with investment period and return profile
7. Vendor credibility Reference checks and due diligence
8. Measurability of value Sensors, online access, clear reference case
9. End customer geography Price it in or hedge it out
10. Recovery in case of failure Portfolio risk, sometimes transferable product with
ability to redeploy
22. Opportunity in Georgia
$410B economy (#29 in the world)
22
Distributed Generation
Energy Efficiency
Waste to Value
$50B investment opportunity from 2010-2020
- 1,000,000 projects average $50,000 each
- $500 million in commissions available to share
- We have technologies, short on business development
Editor's Notes
Right side: leave to governments to subsidize because will never be cost effectiveLeft side: businesses stand to gain if provided with the information and tools/technology/legislation to do so
