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Scandia Wind Southwest LLC. Development of large scale windpower. Presentation for landowners Bovina May 8th 2009. Presentation overview. Who are we What we have done Why the Panhandle The challenges every developer face in the Panhandle The project The business model The way forward
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Scandia Wind Southwest LLC Development of large scale windpower Presentation for landowners Bovina May 8th 2009
Presentation overview • Who are we • What we have done • Why the Panhandle • The challenges every developer face in the Panhandle • The project • The business model • The way forward • Organize negotiating team • Tentative time frame for negotiations • Cost coverage • Q&A 02.09.2014 www.havgul.no 2
The partners 82 years aggregate wind energy experience 44 years aggregate wind energy experience A member of the Havgul/ Alpha Wind/PWC alliance Strong local committment
Consultant Consortium Alpha Wind Energy Technical support Fredrikson & Byron Legal Havgul clean energy Project development Hoffman & Brobst Finance proformas Multiple financing sources Development financingConstruction financingPermanent financing RNR Engineering Grid consultant
HAVGUL Clean Energy AS Ketil Reed AasgaardPartner/Managing director Harald Dirdal Partner/Project director Kalle Hesstvedt Partner/Communication and PA Emil Thorkildsen Partner/Legal director Wind power project development company, based in Oslo, Norway. The business concept is to develop wind power projects from greenfield or early phase development, to a stage where all required permits are in place, technical feasability studies are performed and the project can be realized on the international market. Financed by a large Swedish/US green investment fund Extend activities to include US, Poland and Sweden – and possibly other fast growing markets. 02.09.2014 5 www.havgul.no
Track record • Andmyran wind park, 160 MW • The Havsul project, 1500 MW • Kvitfjell, 200 MW • Siragrunnen, 200 MW • Havøygavlen, 40 MW
Alpha Wind Energy Extensive experience from various parts of Wind Power Industry from • Project development • Wind measurements • WTG manufacturers technical support, group sales & marketing • Technical advisor to Danish Wind Turbine Owners Association. • Combined 82 years of Wind Power Experience • 7 employees currently, but expanding • Extensive use of partnerships and consultants. 9
AWE Wind Farm development • Land lease agreements • Site feasibility study • Wind metering & long term correlation of data • Wind turbine micro siting and optimization • Includes complex terrain requiring CFD analysis • EIS including noise, visual, shadow study etc. • Site production estimations • Full project analysis, design and installation • Full bankable report in cooperation with a bank approved third party • Turbine selection and EPC contracting • Operational Management 10
Why the Panhandle Best wind conditions in Texas Large areas of suitable land General positive attitude among the land owners and the population in general Perfectly located in the cross roads of the ERCOT, SPP and WECC grid areas A region in need for new industries 02.09.2014 www.havgul.no 14
Why the Panhandle 02.09.2014 www.havgul.no 15
Transmission Expansion-Plans laid for specific transmission lines - Dovetails with Scandia’s Phase II & Phase III strategies
The challenges every developer faces • The grid is a huge constraint in the ERCOT and SPP grid systems. • Large consumption in the south • Weak grid into the Panhandle • The Panhandle loop will only cover the projects already under planning The strategy is as follows: • Make the projects so large that they will attract new lines into the region • State of the art project documentation for financial closing • Detailled wind assessment program • Very selective turbine choice • Bankable land lease agreements • Commercial business model where all owners have the same exit strategy 02.09.2014 www.havgul.no 17
The project 02.09.2014 www.havgul.no 18
Visualization of one site layout 02.09.2014 www.havgul.no 19
The business model Development phase Operational phase 10% ownership in the development Individual land lease agreement payments • Ownership in the project company • Land owners put in an exclusive right for the company to develop their land • No payments to the land owner during the development phase • Payment at joint exit point • Estimate at least 10 times the payment for this model compared to a standard option fee per acre payment assuming a 5 years development phase • Royalty payments for each turbine placed on your land normal for the region beginning when the project is being built Take over by large utility(ies) 02.09.2014 20
The way forward We suggest the land owners form a group of 3-5 people given the power of attorney to negotiate on the land owners behalf The group select a lawyer representing them in the negotiations We are willing to cover the lawyer costs up to an amount agreed upon between the parties We hope the total process should not last longer than 3 months When the agreement are finished negotiated, the negotiating group will present the agreement to the remaining land owners for signature. 02.09.2014 www.havgul.no 21
Q&A 02.09.2014 www.havgul.no 22