Making the Business Case for   Distributed Generation          Solutions               Peter Fusaro    Chairman, Global Ch...
What Has Changed Now:•   Technology is better•   Costs coming down•   Size of the market is growing•   Capital needs are g...
What is Changing•   Planned generation capacity not expected to keep pace with system    demand growth       Will create ...
Financing Market is Changing•   Investor interest recovering from economic crisis•   Portfolio stabilization opening up ca...
3 Projects Where I Have Been Involved•   Anaerobic Digestion in US and Asia•   PV Solar in India•   Combined Heat and Powe...
Anaerobic Digestion:        both developing & developed world   Manure management or ag/food waste creating biogas   Cre...
Grameen Surya Bijlee Foundation                (www.suryabijlee.com)•   GSBF is a non-profit Trust and has no commercial a...
•Solar PV now much more affordable•Technology advances have been a key•Chinese manufacturing and pricing helped todrive pr...
MicroturbinesPower by natural gas or propane or jet fuelLower cost5 KW or largerCan be grouped together to light a vil...
Example of ATD
Takeaways•   Supply and cost of power are long-term problem•   Short-term disruptions or deficiencies have economic conseq...
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Un Foundation Microgrid (Fusaro)

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UN Foundation\'s Microgrid Workshop presentation in DC in September 2012

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Un Foundation Microgrid (Fusaro)

  1. 1. Making the Business Case for Distributed Generation Solutions Peter Fusaro Chairman, Global Change Associates New York petefusaro@global-change.com
  2. 2. What Has Changed Now:• Technology is better• Costs coming down• Size of the market is growing• Capital needs are great• Distributed Generation (DG) is developing rapidly• Key is what is the strategy for market entry?
  3. 3. What is Changing• Planned generation capacity not expected to keep pace with system demand growth  Will create significant short-term problems  DG is one option to help meet load growth• Consumer DG gaining worldwide acceptance  Integrated or stand alone  Small, modular electric generation  Cost effective power solution• The key so far: outside the utility infrastructure and close to the point of consumption
  4. 4. Financing Market is Changing• Investor interest recovering from economic crisis• Portfolio stabilization opening up capital• Still high levels of risk aversion  Interest in later stage deals  Compelling proposition-demonstrated demand  Must be scalable  Squeezing budgets to control burn• Some “Green” funds taking more early stage risk © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.  Syndicates and smaller deals- regional• Non-traditional sources of financing  Individuals  Foundations  Governments  Strategic partners © Copyright 2005 Energy Hedge Funds Center.  Utilities All rights reserved. Confidential and Proprietary.
  5. 5. 3 Projects Where I Have Been Involved• Anaerobic Digestion in US and Asia• PV Solar in India• Combined Heat and Power (CHP) in US and Asia
  6. 6. Anaerobic Digestion: both developing & developed world  Manure management or ag/food waste creating biogas  Creating electric power  Syndicating project  Power purchase agreement  Creating carbon credits to be securitized  Interesting new strategy is to go to big strategics in various verticals such as food producers (already being done in EU and US)
  7. 7. Grameen Surya Bijlee Foundation (www.suryabijlee.com)• GSBF is a non-profit Trust and has no commercial activities.• 25,000 families given a kit: 5 watt pv solar, 12 volt battery and LED lamps (about $45-65 per family)• Sufficient to light village home of 150 square feet, 8 foot high ceiling• “Green NGO of the Year 2010” awarded by Frost & Sullivan• Self funded to tune of $500,000 © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.• Attempts to make this a carbon credit microfinance play by RFID tags failed• Now just a seller of various kits © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.
  8. 8. •Solar PV now much more affordable•Technology advances have been a key•Chinese manufacturing and pricing helped todrive prices down 70% (panels delivered in US at73 cents/watt) © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.•Can be widely distributed solution for both offgrid and on grid © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.
  9. 9. MicroturbinesPower by natural gas or propane or jet fuelLower cost5 KW or largerCan be grouped together to light a villageApplication for load pockets, cell towers, and villagesCan be used in shared savings model with no cost to © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.consumer (paid back by energy savings) © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.
  10. 10. Example of ATD
  11. 11. Takeaways• Supply and cost of power are long-term problem• Short-term disruptions or deficiencies have economic consequences• Distributed Generation is a solution Technology is developing rapidly New innovations every day Addresses cost and reliability• Financing is available from a variety of sources © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.• Lower emissions presents an opportunity to monetize environmental attributes• The need is great and so are the opportunities © Copyright 2005 Energy Hedge Funds Center. All rights reserved. Confidential and Proprietary.

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