Transcript Agenda - Falcon green

Large Projects Drive Large FAB Orders
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PV Market - Electricity Demand
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“U.S. electricity demand is growing at twice the pace new supplies
are being added, an imbalance that could lead to supply problems in
a couple of years, an electric-industry group said.
In its latest 10-year forecast, the North American Electric
Reliability Corp., or NERC, found supplies thinning fastest in
California, the Rocky Mountain region, New England, Texas, the
Midwest, and the Southwest… “
“…the nation’s 10 big grid running organizations said in a report
released yesterday that 44% of the proposed new power
generation in their markets is expected to come from renewableenergy projects…”
WSJ Oct. 17, 2007
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Central Power CSP Generation
or versus PV / Photovoltaic
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Solar PV uses no water, CSP uses high amounts
Solar PV has a 40 year system life, CSP is only 15
Solar PV uses DC to AC invertors, not a power box,
thus power factor correction is possible and losses
are minimized over a generator set.
Ongoing O&M budget for CSP is approx $3/W
over the project life vs. less than $1/W for PV.
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PV Market - RPS Requirements
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DSIRE: www.dsireusa.org September 2007
MN: 25% by 2025
(Xcel: 30% by 2020)
*WA: 15% by 2020
ME: 30% by 2000
VT: RE meets load
growth by 2012
ND: 10% by 2015
WI: requirement varies by
utility; 10% by 2015 goal
MT: 15% by 2015
OR: 25% by 2025 (large utilities)
☼ NH: 23.8% in 2025
MA: 4% by 2009 +
1% annual increase
RI: 16% by 2020
5% - 10% by 2025 (smaller utilities)
CT: 23% by 2020
☼ *NV: 20% by 2015
IA: 105 MW
☼ CO: 20% by 2020 (IOUs)
*10% by 2020 (co-ops & large munis)
CA: 20% by 2010
10% by 2017 - new RE
☼ NY: 24% by 2013
IL: 25% by 2025
MO: 11% by 2020
☼ NC: 12.5% by 2021 (IOUs)
☼ AZ: 15% by 2025
10% by 2018 (co-ops & munis)
☼ NJ: 22.5% by 2021
☼ PA: 18%¹ by 2020
☼ MD: 9.5% in 2022
☼ *DE: 20% by 2019
☼ DC: 11% by 2022
☼ NM: 20% by 2020 (IOUs)
*VA: 12% by 2022
10% by 2020 (co-ops)
TX: 5,880 MW by 2015
State RPS
HI: 20% by 2020
State Goal
☼ Minimum solar or customer-sited RE requirement
* Increased credit for solar or customer-sited RE
¹PA: 8% Tier I / 10% Tier II (includes non-renewables)
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Solar water
heating eligible
PV Market - Solar RPS
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CO - 4% of RPS; half of solar must be net-metered { Retail }
DE - 2.005% photovoltaics by 2019
DC - 0.386% solar by 2022
FL - 2.0% by 2020 for solar thermal and solar PV
MD - 2% solar electric in 2022
NV - 5% of energy portfolio must be solar 2015
NH - 0.3% solar electric by 2025
NJ - 2.12% solar by 2021 (1,500 MW )
NM - 20% of RPS from solar (4% of total sales)
NC - 0.2% solar electricity and thermal energy by 2018
TX - 500 MW NON-Wind RPS from renewables other than wind
PA - Solar PV set-aside of 0.5% for June 1, 2020
Ontario – New Feed In Tariffs ~ 40 cents KW-H
Germany – 42% Feed in Tariffs
Spain – 30%
Portugal – 35%
Italy – 45%
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PV Market - Renewable RFPs
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Progress Energy Carolinas RFP seeking up to 1,000,000 MWh from RPS eligible Renewable Energy
Resources.
Georgia Power RFP seeking up to 4,000 MWh of Wind and Solar Resources to meet the needs of its Green
Energy Program.
Long Island Power Authority (LIPA) RFP seeking up to 300 GWh/year of Eligible Renewable Energy
Resources and/or Renewable Energy Certificates (RECs).
Western Area Power Administration's (WAPA) RFP seeking firm purchase power contracts for up to 200
MW of Renewable (and/or non-renewable) Energy Resources for the Upper Great Plains Region.
PNM & Duke Energy Indiana RFP seeking up to 200 MW of Renewable & Sustainable Energy Resources.
Florida Municipal Power Agency (FMPA) RFP (#2007-106) seeking up to 100 MW of Eligible
Photovoltaic Resources for FMPA's All-Requirements Power Supply Project.
Southern California Public Power Authority (SCPPA) RFP (PDF 44 KB) seeking up to 315 MW of Renewable
Energy Resources that comply with the California Energy Commission Renewable Energy Portfolio Standard
Guidelines.
Dominion Resources Services RFP seeking Eligible Renewable Energy Resources &/or Renewable Energy
Credits (RECs) in Virginia, North Carolina, and PJM Interconnection area to meet State goals and mandates
within its service areas.
Arizona Public Service Co. and the Joint Development Group RFP for up 250 MW of Concentrating
Solar Power Resources in Arizona or Nevada.
Spark Energy Texas RFP seeking 100MW of Renewable Energy + Constellation New Energy hybrid QSE
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Strategy
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To be the leader in large scale solar PV power parks from 5MW to
200MW.
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Target projects based on market conditions to provide the greatest
ROI, still recognizing the pending huge potential in Texas.
Engineer, Design and Construct utility scale solar parks through
strategic partnerships like:
Provide ongoing operations and management.
Seeking long-term PPAs with utilities, REPs, generators, and large
industrials with MPAs.
Identify and act to control Land Resources and opportunities
PV Generation Projects can be brought on-line faster than
conventional power projects. Estimated at 16 months for 50 MW.
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Speed will be a greater factor as demand outpaces electricity supply.
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Development Properties { LAND }
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Falcon has completed a Texas & lower WEC Site survey of over 100
locations with 15 MW or greater of Transmission Capacity &
existing onsite sub-station for interconnect.
Falcon is in final negotiation to purchase two {2} 750 to 1280 acre
sites in Alpine, Texas, each with sub-station and transmission
capacity available for up to 350 MW for “TEXAS SOLAR ONE”.
Falcon has identified numerous other sites on four other West
bound circuits with intrinsic development value.
Falcon has two sites in a feasibility study in New Mexico’s WEC for
PNM & Exel.
Principals of Falcon own part of 18,000 + acres in Texas WEC
with large solar, coal, geothermal and uranium resources onsite.
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Typical Utility Scale Projects
Fort Davis Mountains, TX
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Thin Film in Eupron, Germany
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Current Large Utility Scale Projects
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Internal Projects
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Alpine Solar Park - 100MW project
 Currently in talks with large power users within ERCOT.
 Several Suppliers in deregulated markets want MPA quotes for 40 + MW in Texas
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Austin - 50MW GLO project at Saragosa
400 MW of capacity at PECOS - Guadalupe Site for MESA Power
PEC, CPS & BB + AE = 100 MW buying pool distributed at PEC Western Edge !!
Mexico – 45MW Project Proposal being submitted to large Industrial user
“Los Pueblos de Luz” - 3 GW GigaWatt plan named by TekSUN Founder Dan Vogler,
“Los Pueblos de Luz” is a 15 year rural electrification plan, in 5,000 off-grid projects for
remote villages throughout Mexico. A Future model for Central & South America and Africa.
Initial funding will come from the WB World Bank and International Development Fund Banks.
External Projects Falcon may co-develop with other sponsors
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100MW {pending} order for the Northeast region
Several proposals for 1.5 MW to 50 MW
NM, CA, CO, NV, NJ, PA, NY & Ontario targeted for solar park projects.
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CO – 25MW+ RFP ; NM Feed-In final
Continue to respond to RFPs as they come out.
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Alpine Power Project – Site A : 850 Acres
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Alpine Power Project – Site B : 1280 Acres
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Strategic Relationships
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Richard Green - Architect – West Texas Sites
Texas Solar Company – Solar power park build-out contractor ( Lead of Five )
VERDE ENERGY – Solar build-out contractor labor selection & management
Good Company Associates – Utility business development, policy & consulting
GT Environmental – Renewable energy, LEED and carbon credit trading
Janet Hughes - Global Designs – 3rd Party Solar Park Project management
Concurrent Designs - Structural Engineering
Naismith Engineering - Civil & Permitting Engineers { Alpine City Engineers }
Robert Webb – Chairman of TREIA & former Baker Botts attorney currently
working in the renewable energy space assisting in the retail electricity market
Andrews Kurth, LLP – Attorneys in Austin, NYC & Washington, DC
Baker Botts, LLP – Renewable energy attorneys, Austin & Houston, TX
Parsons & Associates – Commercial & Ranch Land Real Estate Broker
Texas GLO – General Land Office – Land Resource Leases
BLM – Federal Bureau of Land Management – Land Resource Claims
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Serpa, Portugal Solar Park @ 11 MW
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Power-Lite sold Serpa for
$7.85/W to GE in early 2007.
BOS per Watt CAPEX @
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$4.57
Potential net value over
$3.30/W in a project
100MW project has ITC’s of
approx $200 Million. ** US
2008
PTC worth 1.9 cents kWh for
10 years once project is placed
in service.
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North American Solar Insolation Values
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Beneixama, Spain 20 MW Solar Park
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Developed by City Solar AG, the
CAPEX was @ over $9.00/W. As
prices go up in Europe, the USA can
find the price optimum today for
much less.
Falcon Environmental Power can
develop at less than $5.00/W in a
large project, and with the ITC,
bring in a LCOE levelized cost of
energy of less than 8 cents / KWH.
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The Revenue Model:
Panels Make Power that Makes $Money
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Solar Insolation for Puebla Tepeaca, Mexico = 5.33 Average
This equates to a 25% Annualized Capacity Rating for 45 MW.
Income – Debt = NET;……… Thus total power is produced for sale is:
24 hours x 25% x 365 x 45 MW = 98,550 MW-H per year.
CAPEX is $4.50 per watt total PV+BOS installed for 45 MW,….. or $202M
With 30% ITC and a $120 / MW-H ; PPA for a 20 year term,…
then equals an $80 / MW-H debt service +O+M = $40 / MW-H gross !
Thus, for a 45 MW Solar Power Park,… $120/MW-H - $80 debt = $40/MW-H
98,500 MW-H x $40/MW-H = $4M / yr GROSS MARGIN to Developer,
not counting the monetization of RECS, Carbon Credits, ITCs & PTCs*,
project depreciation, power buy-downs, power buy-ins, etc.
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