wind: Development
program28 mw2007
110 mw2008
195 mw2009
300 mw2010
176 mwoperating plants and farms currently in construction willbring in 2007 and 2008 to an installed capacity higherthan industrial plan targets (90% of 2009 target alreadyunder construction)plants under development(current pipeline)800 mw+600 mw45,5 mw2007targets(current plan)current plantsoperatingin constructionahead of schedule on construction program•increased developmentprogram:
Pipeline of approx800mw (italy)•international pipeline: Approx 600 mw (canada, romania, albania)mw installed at year end (consolidated capacity)
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capex in wind business will be financed by project financing with a average d/e equal to 80/20 • total capex plan 2007‐2010 (based on 300mw 2010 target) of approx. €480 millioncapex plan & financingwind plantstart of operationfinancing notegrossconsolidatedalbanella8,58,52005 mortgage loanagrigento34172006project finance refinancing after alerion acquisition; bridge financingciorlano2020dec.07 ‐ jan.08project finance completedlacedonia157,52h2008project finance contract signedordona34342h2008project finance contract signed; bridge financing until first pf erogationcallari36362h2008project finance contract signed; bridge financing until first pf erogationcastel di lucio25251h2009project finance pf under negotiation; bridge financinglicodia28281h2009project finance pf under negotiation200,5176capacity (mw)
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10investment program (€’million)capacity (mw)total investment group equityebitda 3004808793400640115124(1)(2)(1) – based on an average d/e of 80/20 and an average group control basis of 90%(2) – at full production ‐ based on an average load factor of 2000 eh/year and on selling price (electricity + greencertificate) of €180/mwhwind
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11international wind power developmentinternationaldevelopmentwill be one ofalerion growthvectors incoming years(not included in march 2007 bp targets)a diversified portfolioof projects is key forsustained growth in capacityinternational expansion after reaching a soliddomestic positionnext 2‐3 years, intensive activity in promotion of new capacityfocus on the following areas:• countries which have recently joinedeuropean union and have recentlydevelop framework supportingrenewables• usa & canadawind
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solar
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italian market regulatory framework• tariff: Ministerial decree of 19.02.07‐ incentive tariff (not inflated annually) differentiated by power and installation solution ‐ incentive period: 20 yearsincentive tariffs (€/kwh)installation solutionnotintegratedsemiintegratedinteg rated1≤p≤30,4000,4400,4903<p≤200,3800,42 00,460p>200,3600,4000,440power(kw)solar• electricity price + incentivated tariff• currently prices ‐ €/kwh (examples):‐ ground (not integrated): 0,36 (incentive) + 0,095 (electricity)‐ roofs (integrated): 0,44 (incentive) + 0,095 (electricity)
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14alerion strategysolarregulatory framework:‐ fixed incentives‐ 20 years‐ low risk (country risk)‐ easy financing(equity 0‐10%)‐ equity irr:15%‐20%production plants(over 1mw)distributed generation: Roofs of industrial andlogistic sites• internal team of engineers, with external selecteddevelopers• accelerate growth on land options/acquisitions• framework agreements withpanels suppliers to secureprices• maximise sinergies with othergroup companies (realty, rdm)• joint ventures withcompanies specialised in panels installation (under negotiation)focus onsolarenergytechnology:‐ new technologies‐ economies of scale on exisiting technologies‐ lower investment costs‐ higher production factorsenvironmental factors:‐easier authorization processvs other renewables‐ approach to maturiry ofwind in italy
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s. Marco in lamis (fixed)2 mw in constructioneq.hours/y: 1.350 ‐1.450brindisi (2 axis tracking):0,55 mw in constructioneq. Hours/y: 1.900‐2.000racale(2 axis tracking)0,5 mw in constructionplants in constructions. Marco in lamisregion: Pugliatype:2 plant of 1mw each, fixed panelsexpected start of production:ii° half 2007selling prices:conto energia @ €480/mwh+electricity pricesoff‐taker:acquirente unico (single buyer)san marco in lamis plantbrindisi/racaleregion: Pugliatype:2 plant of 0,5mw each, 2 axis trackingexpected start of production:i° half 2008selling prices:conto energia @ €430/mwh+electricity pricesoff‐taker:acquirente unico (single buyer)solar
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16investment program (€’million)solarcapacity (mw)total investment group equityebitda 201041015502602638(1)(1) – based on an average d/e of 90/10 and a group control control basis of 100%(2) – at full production(2)
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17bio energy/ fuels
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18bio energy/ fuelsdevelopment of new advanced technologies,being owner both of conceptual design and operating plantsfrom renewable energy sources to sustainable energy and chemistry
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19bio energy/ fuels
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20growth of alerion’ssustainable energy & chemistry businessgrowth of alerion’ssustainable energy & chemistry businessbio energy/ fuels
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21currently under negotiation• rationale of investment:‐ entry in the italian market of bio‐ethanol, building and operating a new plant based on consolidated bio‐ethanol technology from corn (i° generation bio‐ethanol)‐ developing bio‐ethanol technology from ligno‐cellulosic biomass (ii° generation bio‐ethanol)‐ upgrade of the corn based plant to ligno‐cellulosic plant• relevant equity stake (20‐30%) in:‐ industrial production plant of bio‐ethanol from corn – 100.000 tons/y‐ semi‐scale production plant of ligno‐cellulosic bio‐ethanol – 20.000 tons/y• partners:‐ top italian chemical/engineering group‐ leader italian logistics players• indicative financials (corn‐based plant):‐ total investment: €100 million‐ investors’ equity: €25 million‐ estimated ebitda (at full production): €25 millionbio energy/ fuelsbioethanol technology
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22other assets &financials
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23investment plan58497108capexgroup equityebitda (*)current plan 2007‐2010 (march 2007) – recap… ahead of schedulecapexgroup equityebitda(*)hypothetical “more aggressive plan” 2007 – 2010 based on current pipeline opportunities(400 mw in wind, 50 mw in solar)900141162€’million(*) – at full production
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24renewable assets and financing planfixed assets renewables(book value as at 30 september 2007)130enertad partecipation(valued ad call option exercise price)50584975542exercise of call within 16 december200750fixed assets renewables – as at 30 september 2007(€’ million)total capex(present investment plan)total equity neededtotal equity alreadyinjectedadditionalequitycash in fromenertad disposalinvestment program (current business plan)(€’million)
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25other assetsexit from other investments togradually support additional capexfor potential “more aggressive”planreno de medici(market price last six months)realty(market price last six months)mediapason(net book value)other investments(net book value)19‐2399 € 55 ‐ 65 million18‐24other investments as at 30 september 2007 ‐€’millionreal estate (building milan, via durini, 3000sm)(net book value)23
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in sintesi
300 mw eolici in esercizioo al 2010
1400 mw in pipelines
180 euro a mwh e siti con 2000 h vento i targets
solar=anche massimizzazione sinergie con rdm e realty vailog, j venture con fruppi che producono pannelli.
Bio energy e biofuels, attenzione al mercato.
