Investment Drivers in Energy and Clean Tech 1
- Slides: 16
Investment Drivers in Energy and Clean Tech 1 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
NEESC • NEESC provides support for fuel cell and hydrogen companies for technical, marketing and financial growth • Liddy Karter focuses on strategic planning and financing • Provide information on financing sources • Review business plans • Make introductions 2 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Clean Tech and Energy Investing 3 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Clean Tech and Crude Oil 4 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Clean. Tech Energy 15 x Under Invested • Relative to underlying industry size, the venture capital industry has underinvested in energy/cleantech (by approximately 15 x) Energy 10. 5 Industry Size $B 1545 Telecom/IT Ratio: Energy as a Percent of IT 57. 8 551 10. 49% 18. 2% 280. 4% 6. 5% Five Year VC Funding $B 5 Funding as a Percentage of Industry Size 0. 68% Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Small $ compared with VC $ 6 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Minor Correlation with VC $ 7 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Low, Irregular Returns for Clean Tech 8 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Innovation and Implementation • • 9 Energy Innovation has limited upside Capital requirements are high Implementation $ are volatile Venture Model fails for clean tech Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Enough Regulatory Incentives? ARPA-E and SBIR Investment Tax Credit ITCs for Renewable Energy Investment Advanced Energy Manufacturing Credit Accelerated Depreciation Feed in tariffs, RECs, renewable portfolio stds, biofuel incentives • Regional and state tax incentives • Federal or state loan guarantee programs – DOE, USDA, SBA • Over $100 BILLION Incentives available in 2012. • • • 10 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Wind More Stable than Incentives “The ideal state will have high average KWh electricity costs, high annual wind speeds and attractive state incentives. Annual average windspeeds and average electricity costs are relatively constant. However, state incentives are constantly changing. As a result, XXXXXXX’s team is committed to regularly tracking the available state incentives and will adjust its marketing strategy accordingly. ” Funding memo for wind developer 11 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Incentives are Gravy How Fund. X Selects Projects § Partnership Deal Flow § Baseload Projects § Local Fuel/Local Load § Contractual Balance § Competitive IRR BEFORE Incentives § Evident Exit Options § Technological Advantage » Fund description in investor memorandum 12 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Who Gets the Funding? § Ability to do $10 MM+ projects § Use proven technology § Project developers who derisk » Supply contracts in place » Put up 40% equity » Get Power purchase agreements 13 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Summary • • 14 Market drivers trump incentives Public sector as best customer Combine regional incentives and demand Standardize and Simplify Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Thank you Liddy Karter Managing Director, Enhanced Capital Executive Director, Crossroads Venture Group 203 376 7958 15 Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
Resource Links • • 16 www. pwcmoneytree. com www. nvca. org www. cvg. org www. enhancedcapital. com Lkarter@enhancedcapital. com / 203 376 7958 / www. enhancedcapital. com
- Clean up everybody let's clean up
- Fixed investment and inventory investment
- Low tech assistive technology for communication
- Energy energy transfer and general energy analysis
- Energy energy transfer and general energy analysis
- Clean energy smart manufacturing innovation institute
- Definition of renewable energy source
- Accu spot price
- Umass clean energy extension
- Clean energy project analysis
- Fe clean energy group
- Clean energy project analysis
- Fe clean energy group
- Clean energy for all europeans
- Energy investment phase of glycolysis
- Energy investment phase of glycolysis
- Bisphoglycerate