OFFSITE RENEWABLES PPA PITCH DECK TEMPLATE Last Updated

OFF-SITE RENEWABLES PPA PITCH DECK TEMPLATE Last Updated February 2020 If you have suggestions or comments, please contact our team on website at https: //cityrenewables. org/contact/

OFF-SITE RENEWABLES PPA PITCH DECK TEMPLATE Who is this pitch deck designed for? • Local government staff tasked with renewable energy procurement. What is the purpose of this pitch deck? • To provide a tool to easily prepare a pitch deck for key decision makers (city council, mayor, city CFO, etc. ) to help secure early buy-in and required resources for exploring large-scale off-site renewable PPAs. What does this pitch deck include? • Slide templates with easily modifiable graphs and helpful information to pitch large -scale off-site PPAs. How do you use this pitch deck? 1. Identify the story you are trying to tell and the relevant slides in this deck that can help you convey that message. 2. Read the instruction callout on each slide, update the slide contents as needed, and then delete the callout. 3. Enter “Slide Show” mode by clicking on the Slide Show icon in the bottom right to view the slide animations. Modify animations in the Animation Pane in the Animations tab. 4. Update and add any content outside of the instructions to help convey your message. 5. Review speaker notes on each slide for talking points or additional information. 6. Put this presentation in your local government’s standard template (if applicable) and delete this slide before presenting. 7. If you have suggestions or comments, please contact our team on our website at https: //cityrenewables. org/contact/.

LARGE-SCALE OFF-SITE RENEWABLES POWER PURCHASE AGREEMENTS FOR OUR COMMUNITY Presented by: [Name], [Title], [Email] Instructions: • Update the title of this presentation to reflect the purpose of and intended audience for this deck. • Update the presenter information in [red brackets] • Replace this photo with one of your community.

AGENDA During this presentation we will address the following questions: How does an off-site renewable power purchase agreement work? Why would we want to pursue an off-site deal? What other organizations have done this? How would we get this done? 3

AGENDA During this presentation we will address the following questions: How does an off-site renewable power purchase agreement work? Why would we want to pursue an off-site deal? What other organizations have done this? How would we get this done? 4

In a physical power purchase agreement, a buyer purchases electricity from a Instructions: large-scale, off-site renewable generator 1. Keep this slide only if you are proposing a physical power purchase agreement. 2. Edit the text in red to replace references to “City/County/Tribe” with the name of your community and “Electricity Provider” with the name of your local electric utility or retail provider. 1. [City/County/Tribe] agrees to purchase energy generated by the renewable generator at a fixed price over ~12 -25 years. 3. The renewable energy reduces the amount of electricity [City/County/Tribe] needs to buy from their normal energy provider. [City/County/Tribe] Renewables Generator/Developer 2. The electricity from the renewable plant is delivered to [City/County/Tribe] as it is generated. Typically, the plant owner also delivers the associated renewable energy certificates (RECs). [Electricity Provider] 5

In a virtual power purchase agreement (VPPA), a buyer enables a large-scale project without using the generated electricity 2. [City/County/Tribe] signs a separate agreement to purchase the energy and renewable energy certificates (RECs) generated by a renewable generator at a fixed price over ~12 -25 years. 1. [City/County/Tribe] continues to purchase electricity from our energy Instruc provider as usual. 1. Keep this slide are proposing power purcha Wh /M d $ Fixe Nor mal ra h W $/M ket Mar Renewables Generator/Developer Mar ket [City/County/Tribe] $/M W 3. The renewable energy is sold into the wholesale electricity market at the prevailing market price. The variable revenues from these sales are passed through to [City/County/Tribe]. te 2. Edit the text in references to “City/County/ “Electricity P ”Electricity M names of your local elec retail provider (e. g. MISO) re [Electricity Provider] h • When market price > PPA price, the developer pays the buyer the difference. [Electricity Market] • When market price < PPA price, the buyer pays the developer the difference. 6

AGENDA During this presentation we will be addressing the following questions: How does an off-site renewable power purchase agreement work? Why would we want to pursue an off-site deal? What other organizations have done this? How would we get this done? 7

The size and structure of off-site renewable PPAs provide several key benefits Instructions: 1) (Optional) Reorder these six be reflect your city/county/tribe’s prior Start with the points that will be mo Attracts a lot of publicity because off-site resonant with the audience. Scale Novelty Can be easily scaled up to meet the community’s renewable energy goal PPAs are still relatively uncommon for cities, 2) Add animation based on the ord would like to discuss these points counties, and tribes. Economics Can reduce exposure to fluctuating or increasing electricity prices as well as generate positive revenue OFF-SITE PPA Job Creation Supports green jobs and facilitates energy-related economic development and investments 3) In the speaker notes, we have in a few quotes from cities who have Geographic Flexibility pursued off-site PPAs. Feel free to those which most speak to your m Allows buyers to support projects priories and insert around the grap with greatest resource potential and/ or emissions reduction impact Public Health Provides public health benefits by reducing particulate matter in the air “This project not only helps Philadelphia demonstrate leadership on climate action, but it also makes good economic sense and helps to boost regional job growth in the renewable energy sector. ” Mayor Jim Kenney of Philadelphia 1 1 https: //philaenergy. org/philadelphia-mayor-signs-legislation-for-large-scale-purchase-of-renewable-energy/ 8

We are [30%] of the way to meeting our goal of serving [100% of our municipal operations] electricity needs with renewable energy by [2030] To meet our goal, we will require [X] MW of additional renewable generation capacity. 1. Update your c 2. Right c to upd 3. Follow city’s o use, a 4. Update explain about 5. If you roughl your c projec assum wind re factors 6. Update 300 Scale 250 Economics Novelty GWh/yr Geographic Flexibility 200 Electricity Consumption 150 100 Public Health New Renewables Needed 50 0 2010 Job Creation [considering trends and plans related to city growth, energy efficiency programs, and increasing electrification (of buildings and transport] Current Renewables 2012 2014 2016 Current RE Generation 2018 2020 2022 New RE Needed 2024 2026 2028 Electricity Consumption A [#] MW project would reduce [#] metric tons of CO 2 equivalent per year. This is equivalent to: [#] vehicle miles driven per year [#] homes powered per year 2030 7. To upd for the of the e 8. Follow benefits Note: it is O assumption your off-site solution. 9

[City/County/Tribe] cannot efficiently purchase the [X] MW needed to meet our goal without a large, off-site transaction The number of projects required to meet our goal of [X] MW Scale Instructions: Economics 1. Replace the [X] in the title and the chart header with the number of MW your city still needs to purchase to meet your goal. (Same # as in bottom blue box on last slide) # of projects 2. Modify the Excel chart by right-clicking on the chart and selecting “Edit Excel Data. ” Then enter this same number of MW in cell E 2. Geographic Flexibility Novelty 3. If you have completed a community-wide on-site renewables assessment, consider replacing this chart with a bar chart that contrasts i) the total MW capacity the city/county/tribe can purchase through on-site (and/or community solar projects, if applicable) vs. ii) the total MW needed to meet the city/county/tribe’s goals (the MW # in the title). 511 Job Creation On-Site Solar Public Health 53 1 Community Solar Off-Site PPA *Excludes 3% of community solar projects as outliers. Source: EIA’s 2018 Annual Electric Generator Report; Community Solar Hub’s Online Database; Renewable Energy Buyer's Alliance (REBA). 10

The size of off-site renewable PPAs allows multiple organizations to partner together to sign a contract – this is known as aggregation Benefits of Aggregation Scale Bigger impact given the project size and novelty of the contract structure 290 MW Apple, Swiss Re, Etsy, Akamai Economics Greater economies of scale, leading to a lower PPA price Geographic Flexibility More opportunities for small buyers who would otherwise not be able to access an off-site PPA deal Novelty Job Creation Public Health Shared expenses for contract creation and negotiation Market risk can be lower, or hedged if contract involves multiple projects spread across several locations 60 MW MIT, Boston Medical Center, Post Office Square Redevelopment Corporation Built-in peer network to provide support and guidance to each other • Multiple contracts for 125 MW of wind in Illinois and 165 MW of solar in Virginia, signed in 2018 • Apple was the anchor off-taker, taking majority of MWs—with the smaller buyers accessing the same deal terms. 1 • 25 -year contract for a 60 MW solar project in North Carolina, signed in 2016 • North Carolina project site chosen because it was a dirtier grid than their own. 2 "Entering into a renewable power purchase agreement was our next step, but our consumption is too small to do it alone. It is exciting to join forces with two industry leaders, allowing us to mitigate 100 percent of our electricity footprint. ” - Pamela Messenger, General Manager of Friends of Post Office Square 3 1 https: //www. smartenergydecisions. com/upload/research_+_reports/3 d_casestudy-pjm-2018. pdf 2 https: //rmi. org/blog_2016_10_21_lessons_from_a_landmark_aggregated_energy_deal/ 3 http: //news. mit. edu/2016/mit-neutralize-17 -percent-carbon-emissions-through-purchase-solar-energy-1019 11

A large-scale off-site PPA would stabilize [City/County/Tribe]’s energy costs by reducing our exposure to fluctuations in electricity market prices Instructions: 1. Open the Excel file by right clickin the chart and select “Edit Data in Excel. ” Hypothetical Historical PPA Price Scale Commercial Electricity Price 2. Select your state in cell C 5. This automatically update the chart, inc the chart title, in both Excel and Power. Point. If not, copy and paste chart in Excel into the pitch deck s 3. (Optional) If you want to change t displayed time period, right click chart in Excel and choose “Select Data…”. Leave the “Select Data S dialog box open, click in the works and then click and drag to select a data you want to use for the chart. Economics Geographic Flexibility 4. (Optional) If you want to find the m recent data, visit the DOE SLED database: Novelty • Find the “See City Energy Pro section, enter your city’s name click the “Get Summary Repor button. • Find the ”State and National R Electricity Rate Trends” chart, deselect all options EXCEPT F the first “commercial” line. Job Creation Public Health • Click the “Download Chart” bu 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 above this chart and select ”Download Chart/Data CSV”. Source: The Energy Information Administration, https: //www. eia. gov/electricity/sales_revenue_price. DOE SLED database. 12

A large-scale off-site PPA may reduce [City/County/Tribe]’s overall electricity expenses 1 Instructions: 1. Keep this slide only if: • you are proposing a physical po purchase agreement within CAIS ERCOT, MISO, or PJM; AND, • you can identify or calculate the energy component of your utility Current Energy Cost vs. Renewables PPA Costs Scale $/MWh 2. Visit Level. Ten’s blog, and find the m recent quarterly PPA Price Index. Economics 3. Within the report, find the wind and PPA quotes in $/MWh for your ISO MISO). Geographic Flexibility 4. Right-click on the chart and select “E Excel Data”. In the spreadsheet, ent energy component of the city’s curre electricity bill and the relevant solar a wind PPA prices from the Level. Ten r 50 40 Novelty 5. Update the formatting and colors in t chart as needed. 25 Job Creation Public Health Current Energy Cost Solar PPA Cost Wind PPA Cost Note: It is usually best to pitch an off-site as the best means of achieving the city/county/tribe's renewable goals, not a money maker. You do not want to get in position where the city/county/tribe expe high ROI or payback on this deal. As suc we recommend using these slides purely indicate that renewables can be cost effe but noting that market conditions change 1 The electricity expenses here do not include non-energy charges on your bill, which are distribution, transmission, demand, customer charges, or customer education charge 2 https: //leveltenenergy. com/blog/ppa-price-index/q 4 -2019/ 13

A virtual PPA may have the potential to generate positive revenue Instr 1. Keep this slide o virtual power pu CAISO, ERCOT, Expected Energy Value vs. Renewable Energy PPA Prices 2. Visit Level. Ten’s Difference between Market recent quarterly Value and PPA Costs 3. Within the report PPA quotes in $ represents potential revenue Scale $/MWh MISO). 4. Open LBNL’s lat and/or solar repo technology prefe “Regional whole wind/solar and d value for a projec Economics Geographic Flexibility Novelty 40 33 30 27 5. Right-click on the Excel Data”. In t relevant wind/so Level. Ten report values from the L 6. Update the forma chart as needed. Job Creation Public Health Wind Energy Market Value Wind PPA Costs Solar Energy Market Value Solar PPA Costs The annual revenue would depend on the size of the deal and the total number of MWh produced and sold each year. https: //leveltenenergy. com/blog/ppa-price-index/q 4 -2019/ Note: It is usually be as the best means o city/county/tribe's ren money maker. You d position where the c high ROI or payback we recommend usin indicate that renewa but noting that marke 14

Large-scale off-site PPAs can support projects with greatest resource potential and/ or emissions reduction impact Instructions: Scale We can support projects with the greatest renewables resource potential 1. If your city is more interested in wind than solar, delete the Global Horizontal Solar Irradiance map with the Wind map (copied We can target areas where underneath the solar map on this projects would have greatest slide) emissions reduction Economics Global Horizontal Solar Irradiance Geographic Flexibility Source: NREL CO 2 Emission Rate (lbs. /MWh) Source: EPA Novelty Job Creation Public Health 15

Large-scale off-site PPAs are still relatively uncommon for local governments and can attract a lot of publicity Scale Economics Geographic Flexibility New Amazon-Arlington solar farm to fulfill most of county’s renewable pledges By Patricia Sullivan Jan. 28, 2020 at 3: 15 p. m. EST Novelty Job Creation Public Health 16

Large-scale off-site PPAs support green jobs and create workforce training and development opportunities Instructions: Scale ● Supports [local/regional] jobs Economics ○ A [X] MW [solar/wind] project would likely support around [#]* construction and installation jobs. 1, 2 Geographic Flexibility ○ There are currently [#] [solar/wind] jobs in [state]. Novelty Job Creation ● We [can/will] require [local/regional] workforce training programs or job reporting as part of our RFP. * Jobs per MW may be lower today given efficiency gains since these 2012 and 2013 reports were published. 1 L Billman and D Keyser, Assessment of the Value, Impact, and Validity of the Jobs and Economic Development Impacts (JEDI) Suite of Models , NREL, 2013. Page iii. 2 J. Brown J. Pender R. Wiser E. Lantz B. Hoen; Ex post analysis of economic Public Health impacts from wind power development in U. S. counties. Energy Economics 2012. 1. Keep this slide if you are developing a project within your community, state, region (and update ”local” text accordingly) 2. Estimate the number of supported jobs that would correlate to your project and update the red bracketed text. Solar: a. Multiply the total project size in MW by 16. 5 FTE jobs per MW 1 Wind: a. Multiple the total project size in MW by 0. 5 FTE jobs per MW 2. 3. Find out the number of solar/wind jobs and in your state at https: //www. seia. org/states-map or https: //www. awea. org/resources/factsheets/state-facts-sheets, and then update the red bracketed text. 4. Revise the text of the second point regarding workforce development opportunities as needed. R Pollin, J Heintz, and H Garrett-Peltier, The Economic Benefits of Investing in Clean Energy , PERI, 2009. 17

An off-site PPA would enable [City/County/Tribe] to achieve annual public health benefits worth [$X] Instructions: Scale ● Renewable energy generation would displace generation from coal and natural gas plants and reduce particulate matter in our air. 1, 2 ● Particulate matter has been linked to: ○ premature death, Economics ○ heart attacks, ○ irregular heartbeat, Geographic Flexibility Novelty ○ aggravated asthma, and ○ decreased lung function. 3 ● 1. Identify how many MWh the city would want to purchase annually through an off-site PPA. Use this information to replace the [Y] in the text. 2. Open the link in footnote 4 and find the table labeled “Health Benefits per k. Wh values”. 3. Using the table, identify the range of possible health benefits attributable to 1 k. Wh of wind or solar. Select whichever value you feel is most appropriate. 4. As the values on this webpage are in ¢/k. Wh, multiply your value by 10 to get the $/MWh value. 5. Then, multiply this number by the number of MWh identified in step 1 above to estimate the annual health benefits. 6. Replace the [$X] in the title and the last bullet A renewable energy project generating [Y] MWh would result in [$X] of with your calculated health impact figure. public health benefits every year. 4 ○ Fossil fuel assets are disproportionately sited near/in low-income and minority communities, so the public health impacts are similarly disproportionately allocated. Job Creation Public Health 1. 2. 3. 4. EPA, https: //www. epa. gov/no 2 -pollution/basic-information-about-no 2. EPA, https: //www. epa. gov/so 2 -pollution/sulfur-dioxide-basics. EPA, https: //www. epa. gov/pm-pollution/health-and-environmental-effects-particulate-matter-pm. EPA, Public Health Benefits per k. Wh of Energy Efficiency and Renewable Energy in the United States, 2019. 18

AGENDA During this presentation we will be addressing the following questions: How does an off-site renewable power purchase agreement work? Why would we want to pursue an off-site deal? What other organizations have done this? How would we get this done? 19

Other local governments have completed off-site physical PPAs to procure Instructions: renewable energy 1. Keep this slide only if you are proposing a physical power purchase agreement. Philadelphia, PA 70 MW In 2018, the City of Philadelphia announced a 20 -year contract with a 70 MW solar project in Pennsylvania. This project will supply 22% of the city government’s electricity. 1 1. 2. 3. 4. Houston, TX 50 MW In 2015, the City of Houston announced a 20 -year contract with a 50 MW solar project in West Texas. This project supplies 10. 5% of the city government’s annual electricity. 2 https: //philaenergy. org/philadelphia-mayor-signs-legislation-for-large-scale-purchase-of-renewable-energy/ http: //www. houstontx. gov/mayor/press/city-expanding-renewable-energy. html https: //mayor. dc. gov/release/mayor-bowser-announces-groundbreaking-wind-power-purchase-agreement https: //www. cincinnati-oh. gov/mayor/news/cincinnati-to-construct-nation-s-largest-city-led-solar-project/ Washington, DC 46 MW In 2015, Washington D. C. announced a 20 -year contract with a 46 MW wind project in Pennsylvania. This project supplies 35% of the government’s annual electricity. 3 Cincinnati, OH 35 MW In 2019, the City of Cincinnati announced a 20 -year contract with a 35 MW solar project in Ohio. This project will supply ~25% of the city government’s electricity. 4 20

Many corporates and universities have completed off-site virtual PPAs to Instructions: procure renewable energy 1. Keep this slide only if you are proposing a virtual power purchase agreement. Arlington, VA 60 MW In 2016, MIT, Boston Medical Center, and Post Office Square Redevelopment Corporation signed a 25 -year contract for a 60 MW solar project in North Carolina. They chose to site the project in North Carolina because it was a dirtier grid than their own. 1 1. 2. 3. 4. 1600 MW In 2019, Google announced the largest “package” of corporate renewable energy deals— 1. 6 GW across 18 projects worldwide. 720 MW are from projects in US. This brought the company up to 5. 5 GW of renewables in total. 2 7 MW In 2017, Akamai signed its first PPA for 7 MW of a larger 80 MW solar project. This deal is one of the smallest corporate agreements signed to date. This deal structure allowed Akamai to access the benefits of large-scale renewables even though they did not have the appetite for its entirety. 3 https: //rmi. org/blog_2016_10_21_lessons_from_a_landmark_aggregated_energy_deal/ https: //www. greenbiz. com/article/googles-jaw-dropping-renewable-procurement-proclamation https: //rmi. org/corporate_renewables_market_smaller_buyers/ https: //www. washingtonpost. com/local/virginia-politics/amazon-arlington-solar-farm/2020/01/28/c 44 baf 76 -41 e 2 -11 ea-b 503 -2 b 077 c 436617_story. html 38 MW In 2020, Arlington, VA announced that it would sign a PPA for 80% of its municipal load. The project will be built, owned, and operated by Dominion (their utility) but sold into the PJM wholesale market. Amazon will purchase the remaining output from the 120 MW solar farm. 4 21

AGENDA During this presentation we will be addressing the following questions: How does an off-site renewable power purchase agreement work? Why would we want to pursue an off-site deal? What other organizations have done this? How would we get this done? 22

The process to sign an off-site renewables PPA is expected to take [X] Instructions: months of staff time 1. The timelines in red are estimates that can vary based on your city/county/tribe’s situation, urgency, and staff capacity. 2. Select a timeline for each row / stage that seems appropriate to you and change the font color to black. 3. Replace the [X]’s in the title and the grey textbox with the sum of months needed for phase 1– 3. Contract Signed [X] Months Research Options and Build a Team [3 -6] Months ● Determine our community’s preferred technology, location, and other project preferences ● Build a team capable of finding a project and executing the contract Request and Evaluate Proposals [4 -9] Months Negotiate and Sign a Contract Monitor Progress during Project Construction [6] Months [12+] Months ● Draft and distribute a request for proposal (RFP) ● Complete the detailed financial analysis for the transaction ● Maintain communication with the developer during project construction ● Select the top 1 -3 proposals for further negotiation ● Select a winning proposal ● Share our story! ● Negotiate the contract and obtain final approval 23

What our team will require to complete this process Instructions: 1. Update the red bracketed text to fit your city’s situation and department titles. 2. If not needed, delete the 3 rd section (”Other Requirements”). Staff and Resources Executing a transaction will require active engagement and support from our [finance, treasury, legal, accounting, procurement, and energy] teams through the contract negotiation phase. Funding While the developer will manage the upfront costs to install the project, our team anticipates needing [$X] in order to hire the appropriate energy and legal consultants to support our RFP and negotiation processes. [Other Requirements] [Enter any other requirements you need given your situation. This might include clear indications of support from city leadership, direction on which type of transaction the team should prioritize, etc. ] 24

If approved to move forward, our next steps will be […] Instructions: Update next steps based on where your city/county/tribe is in the procurement process. Find more information in our procurement guidance: https: //cityrenewables. org/overview/ [Edit text] 1 2 3 4 [Edit text] 25

Instructions: Thank You! Presented by: [Name], [Title], [Email] • Update the presenter information in [red brackets] • Replace this photo with one of your community. Reminder: If you have any comments or questions on this pitch deck template please reach out to us https: //cityrenewables. org/contact/.

Appendix - Definitions • Power - The rate at which energy is produced or consumed. • • Common units: Megawatt (MW), kilowatt (k. W), watt (W). 1 MW = 1, 000 k. W. 1 k. W = 1, 000 W. Example: A factory might require 3 -5 MW at a given moment. Car analogy: MW are comparable to horsepower, or how fast a car can go. • Energy - The overall capacity to perform useful work over time (power multiplied by time). • • Common units: Megawatt-hour (MWh), kilowatt-hour (k. Wh). Conversion: 1 MWh = 1, 000 k. Wh Example: A company might need 300 MWh to run a factory for a week. Car analogy: MWh are comparable to how far the car can go on a tank of gas. • Power purchase agreement (PPA) - A contract through which a customer agrees to purchase the energy produced by a generator over a specified period at a predetermined price per unit of energy. • In a physical power purchase agreement, also called a direct PPA, the seller delivers electricity to either 1) the customer at their facilities, or 2) a predetermined delivery point within their local electricity markets where the customer then takes legal title to the energy. • A virtual power purchase agreement (v. PPA), also called a contract for differences, is a financial agreement in which a customer agrees to pay a project owner a predetermined price per unit of energy and, typically, the associated RECs from a renewable energy project. Instead of physically delivering the electricity to the customer, the project owner sells the energy into the local organized wholesale market; for each MWh, the buyer then pays or receives the difference between the wholesale market revenue and the predetermined PPA price. • Renewable energy certificate (REC) - A REC represents the clean energy attributes of 1 MWh of renewable electricity and conveys the environmental and social attributes of the generated electricity to customers. • Request for proposal (RFP) - A solicitation process, often through competitive bidding, to obtain supplier proposals with the intent to contract for procurement. 27