Vind byen

VindByen CONFIDENTIALVindByenVindByen
VindByen
Selim Stahl

Table of content
Company characteristics
Customer Financing Options
For Home
For Business
Financial Basics

 Provide distributed wind power for less than existing
utility rates
 Remove upfront capital costs of clean energy for
customers
 Achieve economies of scale and reduce expenses
 Establish a trusted brand for small wind energy systems
VindByen’s Vision
Become The Next-Generation Wind Energy Company

VindByen CONFIDENTIALVindByenVindByen Slide 4
VindByen CONFIDENTIAL
Click to edit master title slide
VindByenVindByen
VindByen’s characteristics

VindByen targeted markets/numbers
 Plan to start in 2016
 Become leading retail wind
installer/financier in
Europe
 >500 employees target
 >5000 clients target in
commercial, government,
and residential sectors
 Serving >500 cities in 5
target countries — DK, I,
NL, DE, SE
 Plan to expand to 5
additional countries by
2019

VindByen Full Service Model
VindByen will provide a single source for small wind energy financing, design,
installation, monitoring and maintenance
Financing Design Installation Monitoring &
Maintenance
Old
Bill
Old
Bill
New
Bill
New
Bill
Wind
payment
Wind
payment
SaveSave
VindByen intend to be the leader in
full-service wind power provider

Swedish small wind market
 ”Today there are 7 competitors on the
Swedish market in this segment;
however, none of them are a complete
supplier with full product portfolios.”
(Johansson, 2009)

VindByen – the plan
2016 2017 2018 2019 2020
Q1 2016 Establish
VindByen in Sweden
Q3 2016 Launch
VindLease allowing
customers to save
money from day one
by installing wind
power
Q3 2016 Launch 1st
community program
to foster small wind
adoption
Q3 2016 Expand to
Denmark
Q2 2017 Reach 500
home going small
wind
Q3 2017 Becoming
the largest small
wind power provider
in Northern Europe in
the first full year of
operation
Q3 School Program
with a major Utility
provider: 100
Schools to receive
small wind turbines &
Learning station
Q1 2018 Help a
Fortune 500
company in
commercial small
wind installation
Q1 2018 Expand to
the Netherlands,
opening office in
Amsterdam
Q3 2018 Introduce
Power Purchase
Agreement for SMB
Q1 2019 Launch
large wind powered
community project
Q2 Expand to
Germany
Q3 2019 Close a
hundreds MW turbine
supply agreement
with a major small
wind turbine
manufacturer to
serve the EU
residential market
Q1 2020 Expand to
Italy
Q2 2020 Partner with
a home improvment
company
Q2 2020 Aquire a
Fuel Cell service
company to build FC
+ wind service
offering

VindByen – 1MSek seeding phase
What ? 2 man-years
Where ? Sweden (Göteborg ?)

VindByen – the 2 man-year seed team
Selim Stahl
Project Manager at SP
Göteborg, Sweden
Clement Boret
Aeronautics Engineer at Thales Group
Toulouse, France
+10 years experience in Energy +7 years experience in
Aeronautics/IT

VindByen Potential Investors
Phylantropy: Hagen, Thon, Roke, Wilhelmsen, Kamprad, Persson, Kristiansen, Louis-Hansen
Venture Capital
Institutions: European Union

Distributed Power Generation Leaders
- SunPower
- Chevron Energy Solutions
- Rec Solar
- Sun Edison
….mostly Large Commercial & Solar (>10kW), but Fuel Cell and Small Wind getting popular

We Want to Build Wind Towns

Customer Finance Options

 Save Money from day one
 Initial Payments from $0 to partial and full PrePay
Financing for Homes - VindLease
VINDLEASE
PAYMENT
VINDLEASE
PAYMENT
Significant home finance
innovation for the small wind
power industry

Financing for Businesses – Power Purchase Agreement
VindByen
(PPA)
VindByen
(PPA)
EquipmentEquipment
FinancingFinancing
Best of Breed
Manufacturers
Best of Breed
Manufacturers
InvestorsInvestors
Enables VindByen
to provide BAT
Take advantage
of incentives on
renewables
CustomersCustomers
Pay per kWh only
for power produced
One-stop-shop for
all your wind power
needs for
businesses:
financing, design,
installation and
maintenance
On-site small wind
system
20 yr PPA with
buyout in yrs 6, 10
& 15
Equipment, Installation,
warranties
Financing
ROI

VindLease/PPA Includes More Services
Cash/Loan Purchase 3rd
Party Lease/PPA Advantage
Repair Service Extra Included
Repairs (such as switchboard replacement)
are covered under VindLease
Performance
Guarantee
No Yes
We guarantee the total electricity output of
the system—or will pay homeowner back!
System Monitoring Extra Included
We remotely monitor the system. In the
unlikely event system performance
declines, VindByen will respond to fix it.
Flexibility to
Transfer
n/a Yes
Homeowner can transfer the lease to the
new buyer of the home.
Upfront Cost $20 - 50K
Low monthly payments, no upfront cost…
just like your regular utility bill$0

 VindByen installs & maintains a wind system on your site
- You simply host the system and only pay for the power you produce and use
 No upfront cost and immediate payback
- VindByen can fully leverage renewables incentives and depreciation which
you may not qualify for on your own. This lower the overall PPA price
 Reduce electricity costs
- New lower utility bill + PPA payment < old utility bill
 Lock in electricity rates for the next 20 years
- Protect against utility rate escalation and uncertainty
How does a PPA work

 Small wind give the highest ROI of all renewables with a
payback period of 3 – 5 yrs. VindLease ROI is 5 yrs
 Benefits are divided up between Investors and
VindByen based on structure
Economics of Small Wind project Ownership
yr
$

VindByen expected financings demand
$30M$30M
$200M$200M
$700M$700M
$1.5B$1.5B
$3B$3B
2016 2017 2018 2019 2020

 Multi-year relationship
 Competitive pricing
 Ability to commit minimum $100 million per year
- Tax Equity: Sufficient tax appetite
 Ability to provide other financing capabilities
- Unrated commercial credit
- Renewable tax credit appetite
- Renewable Energy Credits Financing
- Cross-sell opportunities
- Other asset-based lending (ex: warehouse facilities cf. Home Depot)
- Other services (ex: loan servicing)
No project or construction risk to financing partners !!
What VindByen will look for in financing partners

Thank you
Selim Stahl
VindByen
+46735711111

Backup Slides
EXTRAS

FAQ Permitting
Getting a Building Permit
A wind turbine is a structure that requires a building permit. Zoning regulations often limit the height, placement, and other characteristics of "appurtenant" structures, so a conditional (special) use
permit or variance may be necessary. It's usually best to let neighbors know about the installation. Being prepared to answer questions and clear up common misconceptions with well-documented
facts about small wind turbines. General Starting Information: Contact County Planning or Permitting Department
Find out what zoning regulations apply to appurtenant, or non-dwelling, structures on the property. Find if small wind energy systems are specifically addressed by local ordinance, and if so get a
copy of the ordinance. VindByen will need to know the permitting procedures and find out what documentation is required for the turbine. We may have to submit a structural plan drafted by an
engineer, but documents from the turbine manufacturer or dealer may be enough
Conditional (Special) Use Permits
If zoning rules list small or residential wind turbines as an approved "conditional" or "special" use for the property, it needs only comply with the relevant conditions -- which usually pertain to minimum
lot size, maximum tower height, setbacks, and electrical code compliance. The manufacturer or dealer may be able to help with the documentation.
If small wind turbines are not an allowed use, we may have to apply for a conditional use permit, which could involve public hearings before the local planning board.
Checking local land-use codes carefully for special zoning ordinances that authorities may have overlooked. A turbine owner in California avoided turbine tower height restrictions through a forgotten
wind energy zoning ordinance that had been passed decades earlier.
Variance
A zoning variance is a project-specific exception from existing zoning regulations.
If the zoning code prohibits structures more than 35 feet, tall, for example, a wind turbine will probably need a variance from the rule unless special provisions have already been inserted for wind
energy systems. Local county or city planning boards usually have to approve variances.
An application for a variance should cite the specific rule and list reasons why a structure should be excepted. Height restrictions are a common barrier for wind turbine applicants, who often find
height limits set at 35 feet because fire trucks could not pump water higher than that when the code was written. These rules are now obsolete, but residents may nevertheless insist on preserving
them because they feel taller structures would negatively alter the neighborhood's appearance. We should be prepared to explain that the impact of the wind turbine will be minimal. Taking note of
other tall structures neighbors already accept: water towers, rooftop satellite dishes, cellular communications towers, etc.
Letting the Neighbors Know...Tips on Public Hearings
Being PREPARED to answer questions about the project, especially if we have to appear at a public hearing seeking a conditional use permit or variance (Conditional or special use permits do not
always require hearings, but a variance will). A hearing may turn out to be a mere formality, but being ready for anything that might come up. Some tips: Seek the support of the neighbors before the
hearing. See AWEA's "Sample Letters"
Compile documented factual information to reassure anyone worried about noise, visual impact, possible affects on wildlife, and property values.
See AWEA's "Factsheets."
Planning and zoning officials may be unfamiliar with small wind energy systems, so being prepared to explain the basics. It's helpful to have photographs of similar installations.
See AWEA's "Success Stories."
About Permitting Fees ...
Permitting requirements, procedures, and fees vary widely among counties. Fees for building permits, use permits, zoning permits, and "plot plans" can range from $400 to $1,600. There may be
other fees for public notification, hearings, and environmental impact studies costing from a few hundred to several thousand dollars.
If a fee seems inappropriate or excessive, we may be able to get it reduced or waived. Finding out what we are being charged for and offer to provide documentation or information that makes the fee
unnecessary.

FAQ Permitting (SE)
If the rotor diameter is less than 2 meter
If the wind turbine is not attached to the property
If the tower should fall, it would fall within the garden
plot area
NO BUILDING PERMIT NEEDED

FAQ Does it make noise ?
VAWT turbines are nearly silent because they operate with tip speeds close to the
wind velocity. This dynamic is similar to the wind blowing around any stationary
object such as a tree or house.

FAQ How much does electricity cost?
The cost of electricity depends on where people live, how much they use, and
possibly when they use it. There are also fixed charges that people pay every month
no matter how much electricity you use..
The electric company measures how much electricity people use in kilowatt-hours,
abbreviated kWh. The bill might have multiple charges per kWh (e.g., one for the "base
rate", another for "fuel") and people have to add them all up to get the total cost per
kWh.
Most utility companies charge a higher rate when people use more than a certain
amount of energy, and they also charge more during summer months when electric use
is higher. The average cost of residential electricity is 40¢/kWh in Denmark and 26.76
¢/kWh in Sweden. The average danish household uses 3950 kWh/yr.

Purchase wind energy for less than grid energy
Before WindBefore Wind VindLeaseVindLease
VindLease PaymentVindLease PaymentUtility
Bill
Utility
Bill

How to encourage wind investment via incentives
 In order to spur adoption and attract investment, incentive
programs must be stable and bankable:
— Long-term visibility + sizeable program budget (no boom/bust cycle)
— Clear rules, simple application process, reliable outcomes
— Compatible with 3rd
party ownership (PPAs, leases, etc)
— Works with both large and small projects
— Easy to monetize (cash is king)
 Easier: Cash-based $/W rebates or $/kWh production
incentives (Feed In Tariff)
 More Difficult: Tax-based incentives, bids/auctions,
Renewable Energy Certificate markets, mispriced boom/bust
programs, under-funding, uncertain review process

Other observations
 Small projects are both easier AND harder than large projects
— Hitting singles vs swinging for the fences
— Permits, incentives, development time, construction risk, diversification
 Project finance markets are just starting to return to life
— High-quality off-takers, large deals, proven tech, trusted developers
 Property tax loan concept is OK, but difficult to set up
— Not much better than purchasing via a regular bank loan
— Cities having a hard time raising the money, and home lenders don’t
like seniority of the tax assessment
 Leases to non-profits sometimes not compatible with the ITC

Planning: feedback from US Agriculture Sector
Project Financing
 ~$82,000 Project Estimate
— $1,000 Legal
— $7,000 Technical Services
• $5,000 Engineering
• $2,000 Inspections
— ~$66,000 Construction
• $63,500 Construction
• $2,500 Direct Expenses
— $8,000 Contingency Fees
 Reality Checks
 USDA denies upfront expenses to
prepare information for grant
 Will not allow self build, can rent farm
equipment to contractor …
 Will not allow power to be used for
house … small business grant

 Industry has improved small
turbine technology – higher
reliability, lower maintenance
— Small turbines range
from 20 W to 100 kW
— 3-4 moving parts means low
maintenance
— 20- to 40-year design life
— Proven technology – 150,000
installed; over a billion operational
hours
 Project
— Considered one 10KW turbine, but
selected two 5KW turbines
• Maximum 8KW output each
• Always have one operating
• Air-O-Power Trillium Series
— Turbine output increases with height,
went to 80-foot tower
— Tilt up tower bases
• No crane installation
• Lower in tornado conditions
Planning
Technology Selection

Planning & Reality
Electrical

Planning & Reality
Foundation Engineering

Planning & Reality
Engineering

Planning & Reality
Construction

5 Greatest Hurdles
 The extensive USDA application process for a small farming
operation with a small renewable energy construction project
— Essentially no different than if constructing two large wind turbines
 Grant approval process
 Ineligible expenses not covered by 25%
 Equipment vendor problems
— Poor communication, changed swivel base without discussion
— Lack of manufacturing documentation required by USDA
• Addition studies
 Grid connection headaches with Local Utility Provider
— Not prepared for a rural/agricultural small power producer
— Lack of coordination, communication and support before actual connection

Case Study: wind power for school
— This AOC 15/50 wind turbine on a farm in Clarion, Iowa save the Clarion-
Goldfield Community School about $9,000 per year on electrical
purchase and provides a part of the school's science curriculum.

Sweden small wind manufacturers
MjölbyKristianstad

Sweden small wind competitors

SWOT Small wind in Sweden

PEST Small wind in Sweden

Small (wind) is beautifull

Vind byen

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