1 / 14

The Energy Revolution

The Energy Revolution. Australia has a world leading solar resource. Supply of all of Australia’s and the worlds electricity 3. 1: Sunwize Technologies, 2008, Key: Hours of sunlight per day, during the worst month of the year on an optimally tilted surface.

peeler
Download Presentation

The Energy Revolution

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Energy Revolution

  2. Australia has a world leading solar resource Supply of all of Australia’s and the worlds electricity3 1: Sunwize Technologies, 2008, Key: Hours of sunlight per day, during the worst month of the year on an optimally tilted surface. 2: Solar costs - APVA, Electricity prices as at December 2014, ABS data, CPI, Sub-Group - Electricity (Weighted average of 8 Capital cities) 3: World = 430km diameter, Australia = 47km diameter. Calculations, World: 20,000TWh, Australia: 233TWh, Solar 6.1kWh/m2/day, 60MW/km2

  3. Solar market is where all the action is Source: Bloomberg New Energy Finance

  4. Solar is key to the energy revolution • Total market opportunity in Australia across solar, battery and Energy Efficiency is estimated to be over $50bn over the next 15-20 years • Each of these technologies lower consumption 1: Based on ~10% market penetration (23TWh) and $350-650/kWh installed, daily use of 4 hours 2: Energy in Offices represents ~9% of energy use in Australia, or 20TWh/year. 50% savings, 20c/kWh 3: Based on additional 25GW installed by 2030 @ $1.60/W

  5. Solar PV • The first commercial Solar Photovoltaics (PV) cell was invented in the 1950s and is now established technology • The PV cell converts solar energy directly into DC power. An Inverter then converts this power into AC, for use by customers and counterparties • LSF invests in distributed solar and Off-grid/Utility solar systems Commercial (10-1,000kW) Utility (+1MW) Residential (3-10kW)

  6. Solar: Investment Class Attributes Solar is an emerging infrastructure asset class offering attractive returns for risk Gross Return 16% • Lighthouse has observed 10-14% returns from Australian Solar projects Greenfield economic infrastructure 14+% Asset class universe - unlisted Australian Infrastructure Attractiveabsolute returns Greenfield Social & Brownfield Economic Infrastructure 12-14% 14% Long-duration match with liabilities 20-30 year operating life 12% Greenfield Solar 12-14% Brownfield social infrastructure 9-11% 10% Defensive / low volatility Low equity beta, inflation hedge, contracted/government revenues Brownfield Solar 10-12% Listed Australian Shares7.9%1 Australian Listed Infrastructure 8.0% 8% Portfolio diversification benefits Returns are uncorrelated to listed equities/growth assets 6% High cash yield Lighthouse target universe – direct Australian Infrastructure Returns comprise stable and predictable income yields 4% 2% Low risk Fully contracted offtake with credit worthy counterparties Lighthouse observed returns Risk 1. 15 year returns to June 2015

  7. PPA model expected to follow overseas success Solar investment (Leases and PPAs) dominate the US market Third Party Finance – Residential Solar • USA - >60%2funded by Third Party investment • Australia Third Party investment estimated at <5%3 PPAs and leases gaining acceptance in Australia • Australian market has been dominated by cash sales and short term finance which is less attractive due to lack of term • Lease and PPA products and projects have emerged over the last 12 months and are gaining customer acceptance. • contracted solar investment expected to increase market share, in line with overseas trends 1: GTM Research (2014) U.S. Residential Solar Financing, 2014-2018 2: Mercom Capital Group as at end of 2014 3: Excludes short term (2-4yr) vendor finance, LSF estimate

  8. The Dickensian Grid c.1880

  9. The smart grid of the future

  10. Confluence of disruption to energy and transport

  11. What disruption looks like Cost Curves ($/MMBTU by Energy Type) LED cost and efficiency Haitz Law: “Every 10 years, the cost per lumen (unit of light) falls by a factor of 10, while the amount of light per bulb increases by a factor of 20”

  12. Lighthouse Solar supporting Tindo Solar • Lighthouse Solar is supporting innovation and growth in the Australian renewables sector through partnering with Tindo Solar • Tindo SolarIs the only Solar PV panel manufacturer in Australia • Located in Mawson Lakes SA • 30MW plant • Tindo Solar Manufacturing Facility, Adelaide

  13. Solar integral to transition from fossil fuel society “Now that you know my story, what are you going to do about it” Claude Lorius, Glaciologist From the Motion Picture “Ice and Sky”

  14. Confidentiality and disclaimer This document has been prepared by Lighthouse Infrastructure Management Limited (“Lighthouse”)(AFSL: 310 689) for the Recipient (the “Recipient”) only in the context of considering an investment (the “Proposed Investment”) and must be held by the Investor and its directors, officers and employees in strict confidence. Save as expressly permitted in writing by Lighthouse, this document must not be photocopied or reproduced in any other electronic or physical form and must not be communicated, disclosed or distributed to any other person in whole or in part. In preparing this document, Lighthouse has: (i) used information obtained from public sources; (ii) assumed and relied upon, without independent verification, the accuracy and completeness of this information; (iii) not conducted any independent valuation or appraisal of the assets or liabilities of any proposed asset; and (iv) not been provided with any such valuation or appraisal. Neither Lighthouse, its affiliates nor any of their respective directors, officers, employees, advisers or agents give any representation or warranty, express or implied, as to: (i) the achievement or reasonableness of future projections, management targets, estimates, prospects or returns contained in this document, if any; or (ii) the accuracy or completeness of any information contained in this document, any oral information provided in connection therewith or any data that either generates. Furthermore, and without prejudice to liability for fraud, no member of Lighthouse accepts or will accept any liability, responsibility or obligation (whether in contract, tort or otherwise) in relation to these matters. This document does not contain any advice. Lighthouse reserves the right to alter or update this document as it sees fit. The Investor must not rely on this document in determining any course of action in relation to the Proposed Investment or otherwise. Without prejudice to liability for fraud, Lighthouse and its affiliates disclaim any and all liability which may be based on this document, any errors herein and/or omissions here from. Nothing contained herein constitutes an offer by Lighthouse to subscribe capital or underwrites or guarantees in any way returns outlined herein.

More Related