How to Save a Planet - On a Budget from The Energy Collective & Sustainable Cities Collective Hour 3: Cleantech, the Venture Capital Climate, and Policy

1. How to Save a Planet – On a Budget
Hour 3 (11:15 – 12:15 EST):
• Green Seeds: Venture Capital and Cleantech Startups
• Government Policy and Cleantech
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2. About this Webinar
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3. About Our Speakers
Will Coleman is a partner at Mohr Davidow Ventures. He has logged ten years in cleantech and has
worked with startups, cleantech funds, and on project finance structures for new energy
technologies. He previously worked as the Legislative Director for the New Fuels Alliance (Formerly
REAP), for GE Wind in the commercial operations group, for Xseed Capital, and on a variety of
renewable energy projects abroad.
Scott Edward Anderson is founder of VerdeStrategy, a consulting and advisory firm focused on the
cleantech, energy, and environment sectors, and is a frequent commentator on FOX Business
Network. He has over 20 years experience in management, marketing, fund raising and business
development, and has held management positions institutions such as The Nature Conservancy and
Ashoka, a social venture capital organization.
Daniel Shugaris CEO of Solaria, and has spent over twenty years advancing the renewable energy
industry, most recently as president of SunPower Corporation, and previously of PowerLight. Mr.
Shugar has invented various PV system applications, holds multiple U.S. patents and has published
over 50 technical papers. Mr. Shugar holds a BS in electrical engineering from Rensselaer Polytechnic
Institute and MBA from Golden Gate University.
Jesse Jenkins, moderating,is Director of Energy and Climate Policy at the Breakthrough Institute, and
is a leading energy and climate analyst and advocate. Jesse's work and analysis has been featured in
many media outlets, and he is recently the co-author of Bridging the Clean Energy Valleys of Death:
Helping American Entrepreneurs Meet the Nation's Energy Innovation Imperative
#TECLive
#GreenFinance

4. Financing Cleantech Innovation
Will Coleman
Energy Collective Webinar
November 30, 2011

5. Firm Overview
• Founded in 1983
Early Stage • “Early Stage” Venture Investor
Venture Investor • Invested in more than 275 companies
• $2B Under Management
Cleantech
Life Sciences
Information Technology

6. Cleantech Investment Continues
6

7. Dow Jones as a leading indicator
• Cleantech private investing has loosely tracked DJ
• Significant IPO backlog needs to process
• Many investors are cautiously watching exits
7

8. Increasing number of late stage deals

9. Corporate investors are active – particularly late
Source: Cleantech Market Insight Database

10. Asset financing and exits are evolving

11. Fundamental Drivers Remain Strong
Global population is living longer and richer

12. Macro trend continues unabated
Energy consumption rises with GDP

13. Energy prices will follow

14. Competition is still relatively cheap and plentiful
14

17. Different types of capital fill different needs

18. Financing – Typical Risks / Issues
• Early capital intensity before validation
– Requires access to different sources of capital
(PE / debt / strategic / government)
• Late binding risk reduction
– Economics of process only proven at scale
• Later stage investors’ interests might not be aligned with
entrepreneurs and early stage investors
– Cost of Capital less important to decision making

19. Things we have learned
• Build something that matters
– Typically: difficult = differentiation = value capture
• Build something that can be a solution not a component
• Manage capital intensity
– It’s as much about the timing as the total capital
• Cleantech investing is more complex than classic IT
– Many more financing sources, strategic interests, policy, etc.
• Successful business development can beat technology
(at least over the short run)

20. Financing Cleantech Innovation
Will Coleman
Energy Collective Webinar
November 30, 2011

21. Solar:
Power Today

22. A Year of Unprecedented Energy Disasters
BP Deep Water
Horizon Oil
SpillApril 2010
Fukushima
Daiichi Nuclear
MeltdownMarch
2011
Natural Gas
Upper Big Pipeline
Branch Coal Explosion in San
Mine Bruno,
DisasterApril CASeptember,
2010 2010

23. Solar Power Applications – Diverse Range
Residential Commercial Rooftop Utility Scale
1-10 kW 10 kW – 1 MW 1 MW– 250 MW

24. Solar Growing Rapidly, Averaging 65%
Compound Annual Growth Rate for the Past 5 Years
17 nuclear power
plants worth
of solar peak
power
shipped in 2010
Source: PV Industry Growth Data from Paula Mints, Principal Analyst, Solar Services Program, Navigant

25. Global Solar Industry Growth has
Produced Steadily Falling Prices
Module Pricing Trends 1985-2011
Sources: 1976 -1985 data from IPCC, Final Plenary, Special Report Renewable Energy Sources (SRREN), May 2011; 1985-2010 data from Paula Mints, Principal Analyst, Solar Services Program, Navigant;
2011 numbers based on current market data

26. Solar Adoption on High Tech Trajectory
US cell phone
subscribers has risen
from 5.3 million
to 285 million
in 15 years

27. Solar Price Drops Mirror
High Tech Consumer Goods
Driven by Innovation, Automation, and Scale
Cell Phones
Digital Cameras
with plan
DVD Players

28. Financing is Driving Residential Solar Adoption
• 100% Financing accelerating solar home sales
• Sale of Energy, not equipment
• Never an Increase in your Utility Bill
• >100,000 solar power systems already installed

29. Solar is Less Expensive
Than New Nuclear
$0.139
$0.129
Cents per Kilowatt Hour
$0.095
$0.07
Average time to permit and build a nuclear 1 GW power plant – 13 years.
Average time to permit and build 1 GW solar – 1 year.
The last nuclear power plant completed in the US, Watts Bar 1 in Tennessee, took 23 years 7 months to construct.
Sources: 2011 nuclear price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 nuclear price is illustrative, calculated assuming 3.5% annual escalation; 2011 & 2016 PV Prices from DOE, Advanced
Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016
(further validated by prices bid by solar developers into the California markets).

30. Solar Beats Natural Gas Peak Power Today
$0.238
$0.226
Cents per Kilowatt Hour
$0.139
$0.086
250 MW Gas CT
Gas peakers pollute 3 times more than natural gas power plants.
Sources: 2011 gas price is the mid-point of the LCOE range given by Lazard, version 5.0. 2016 gas price is illustrative, calculated assuming 1% annual escalation; 2011 & 2016 PV Prices from
DOE, Advanced Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011 (further validated by prices bid by solar developers into the California markets).

31. New Coal Can’t Deliver Power for 6-8 Years,
When Solar Will Be Competitive
$0.139
$0.109
Cents per Kilowatt Hour
$0.08
$0.07
$0.07
Coal Plant 5%
500 MW
Source: 2011 coal price is the mid-point of the LCOE range given by Lazard, version 5.0. 2020 coal price is illustrative, calculated assuming 5% annual escalation: 2011 & 2016 PV Prices from DOE, Advanced
Research Projects Agency - Energy, $1/Watt Photovoltaic Systems, May 2011, 2020 PV price illustrative, assuming 4% annual cost reduction from 2016
(further validated by prices bid by solar developers into the California markets).

32. Solar Meets Critical Peak Power Demand
Sources: For summer peak load shape – California Independent System Operator (CAL-ISO); For time of use rates – Pacific Gas and Electric Company (PG&E); For PV Tracking Output – Solaria Corporation

33. Solar Creates U.S. Jobs
100k
80k
60k
40k
20k
8
7
7x more jobs per MW
100,237 Americans work in solar today 6
than coal
5
4
Solar employment grew 6.8% while 3
the general economy grew 0.7% 2
1
0
Nat ural Gas Coal Nuclear Wind CCS Biomass Solar Thermal Geot hermal Solar PV
Sources: Kammen, David M et al, 2004, Report of the Renewable and Appropriate Energy Lab, Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry
Create?, Energy Resources Group, Goldman School of Public Policy, University of California, Berkeley.Wei, Max et al, 2010, Putting Renewables to Work: How Many Jobs
Can the Clean Energy Industry Create?, Energy Resources Group, Goldman School of Public Policy and the Haas School of Business, University of California, Berkeley, in
Energy Policy, vol 38, issue 2, February 2010.
Solar Foundation 2011 National Jobs Census
U.S. Bureau of Labor Statistics: May 2010 National Industry-Specific Occupational Employment and Wage Estimates

34. Solar is Ready Now
Solar
Coal Natural
17 GW 6.7 GW Gas
5.5 GW
Solar added more Major combined
than 17 GW sources of polluted
worldwide energy only added 12.2
2010 GW in the US
2010
Source: Erik Shuster, National Energy Technology Laboratory, Tracking New Coal-Fired Power Plants, January 14, 2011(Natural as includes NGCC at 4GW and NG GT and 1.5 GW.)

35. Bipartisan Public Support for Clean Energy
91 percentof Americans say
developing sources of clean
energy should be a priority
for the President and
Congress
85% of Republicans
89% of Independents
97% of Democrats
Sources: Public Support for Climate & Energy Policies in May 2011, Yale Project on Climate Change.

36. Transition to Renewables
To 2030 To 2040 To 2050
• Flexible Generation
• Substitute Generation •Smartgrid
• Energy Storage
TWH/yr
Solar power will be the largest source of electricity in the U.S.
Sources: McKinsey Report, 2007 for starting points and energy efficiency; AWEA for wind; internal SunPower calculations for DPV, CPV, CSP

37. Solar
Less expensive than new nuclear and cost
competitive with new coal and gas started today
Delivers Gigawatts of power fast – 8 to 20 years
faster than coal or nuclear
Delivers strong ROI in the form of American jobs
and global economic competitiveness

38. • Date and other info
Thank You

39. How to Save a Planet –
On a Budget
Brought to you by
#GreenFinance

40. Thank You for Joining Us
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