Natural Renewable Energy

1
Natural Renewable Energy
Mission
To integrate and transform Texas farms and
ranches into natural renewable energy generating
facilities that supply locally produced energy
while enhancing agriculture, wildlife habitat,
and livestock production.
2
Natural Renewable Energy
NRE Solar Financial Modeling

• Early in the development of NRE, we realized the
  need for a financial model to ensured that we
  could utilize tax advantages available for the
  construction of large scale renewable energy
  systems. We identified and contacted University
  of California based experts in renewable energy
  financing software. We then purchased this
  financial model from the researcher who
  coauthored the Berkley study.
• Utilizing our solar and financial modeling, we
  now understand
• how to finance a portfolio of distributed
  renewable energy facilities based on realistic
  solar models customized for Texas.

3
Natural Renewable Energy
Why should Texas be interested?
Synopsis of the solar photovoltaic industry over
the next 10 years. (Source Deutsche Bank
Securities)

• Deutsche Bank Securities predicts grid parity by
  2013 at around
• 0.15 / kWh. The wild card is rising fuel costs
  over the last two years.
• The NRE model fixes PPA price escalation at 2.3
  for 20 years.
• Texas energy producers need to develop plans for
  mitigation of
• significant fossil fuel price increases.

4
Natural Renewable Energy
Why should Texas be interested?

• ERCOT will experience increasing demand for
  energy as the population of Texas grows.
• When we query solar energy companies about
  establishing panel production
  plants here, the response is that Texas
  is not considered solar friendly.
• Our research indicates that if Texas were to
  pass a solar initiative, those same companies
  would build manufacturing facilities here and
  begin production.
• As long as demand continues to surpass supply in
  photovoltaics, orders will be filled very slowly.
  Many large renewable energy installers are
  forced to pre-purchase factory output.
• Solar installations are distributed, so they can
  use existing transmission infrastructure. Also,
  distributed energy production equipment is
  essentially disaster and terrorist proof.
• Texas needs to have a more diversified renewable
  energy
• portfolio, rather than relying solely on wind and
  hydro.
• Solar generation is highest during periods peak
  demand,
• and daytime solar complements nighttime wind.
• Local production keeps Texas investment within
  the Texas.

5

• Coal and nuclear power under attack
• 200 power plants are proposed or currently
  permitted in the US, yet many of these plants
  will never be built due to
• Overstated demand forecasts
• Conservation and energy efficiency initiatives
• Smart grid technologies and demand response
• Construction costs and build out schedules
• Operating costs - poorly service peak demand
• NIMBY and citizen activism regarding climate
  change
• Growing liability for emissions and spent fuel
• Introduction of carbon taxes and/or Cap Trade
• These issues are creating a huge opportunity for
  renewable energy, most notably
• Utility-Scale Solar PV (USSPV)

Solar Array Ventures
6

• Utility Scale Photovoltaics is a viable and
  competitive alternative to building new power
  plants right now!
• Lower cost than construction of many tiny rooftop
  projects
• Short build out cycle, power output available
  years earlier than coal, nuke
• Lower O M costs zero emissions, no spent fuel
  to manage
• Appropriate for solar farms and distributed power
  applications
• Predictable and reliable resource, complementary
  to wind
• Peak production is during hours of peak demand so
  solar energy also complements existing base load
  generation assets
• USPV creates new revenue opportunities
• Renewable energy is priced at a premium
• Solar commands a higher price than wind or
  biomass
• Subsidies and incentives, as available, will
  further enhance margins
• Carbon Credit and REC trading
• Whats needed is vast solar manufacturing
• capacity and an aggressive deployment plan

Solar Array Ventures
7
GWh

• Cumulative Power Output
• Solar produces 5,000 GWh of green power before a
• coal plant even comes on line
• Solar produces 18,000 GWh of green power before
• a nuclear plant comes on line
• RECs earned by year 5 valued at 100M to 150M

Solar Array Ventures
8

• Texas Strategy The Next Logical Step
• Build Wind over Solar Solar near Wind to
  enable shared transmission
• Implement hybrid ranches with both wind and solar
  energy to utilize existing and expanded
  transmission infrastructure.
• Build Texas project design and project finance
  experience
• Diversify energy sources and create positive
  local economic impact

Top Five States TOTAL INSTALLED by 2007 State
Total installed capacity (MW) Texas 4,446
Texas Wind Power Map
9
This shows the space needed for large scale
production to replace other forms of energy
generation. The NRE distributed solar model
will provide utility scale energy and help to
expand local economies without creating a need
for additional transmission infrastructure.
This much solar is approximately equal to 1 coal
plant
This much Solar is approximately equal to 10
nuclear plants
Solar Array Ventures
10
Natural Renewable Energy

• Keeping their cars out of the sun is a passion
  for nearly all Texans. Here are some examples of
  shade structures that incorporate solar energy
  production equipment.

11
Natural Renewable Energy Additional Team Member

• Janet Hughes Solar Design and Construction
• Extensive experience with commercial solar design
  and installation.
• Master electrician
• Approved Administrator of NABCEP Cert. of
  Knowledge Exam
• Trained 288 students in Entry level solar
  knowledge as of JUN 09
  Project list includes
• 53kW system on the Upper Kirby District building
  in Houston,
• home of the Sierra Club and Nature
  Conservancy
• 34kW system on the Palmer Event Center parking
  garage in Austin, Texas
• 71kW system at the Winston School in Dallas
  Texas
• 10kW system at the Austin, Texas City Hall
• 19kW system at the Star Gymnastics, Austin,
  Texas
• 14kW system at the Institute for Texan Cultures
  in San Antonio, Texas
• 10kW system at the Ronald McDonald House, Austin,
  Texas
• 33kW system at the NASA Johnson Space Center
• 10 One kW pole mounted systems for the LCRA
  schools project
• 100 residential systems in the Central Texas
  area from 1kW 10kW
• 4.9kW commercial system in Shreveport, Louisiana
• 3.2kW residential system in Shreveport,
  Louisiana
• 6kW system for the Natural Gardener in Austin,
  TX

12
Natural Renewable Energy Additional Team Member

• Charlie Boswell General Contractor, commercial
  construction
• Project list includes
• Motorola MOS 13 expansion
• Dell Computers Round Rock
• Dell Computers Shipping Howard Lane
• Riata office Buildings
• Brackenridge Childrens Hospital Medical Office
  Building and Parking Garage
• Bailey Square Medical office Building Expansion
  and Parking Garage
• LCRA Fleet Maintenance Facility
• University of Texas Geology Building
• Southwest Texas State University New Business
  Building
• Texas AM South End Zone Athletic Complex
• Galveston Emergency Management Facility
• HMB Parking Garage _at_M.D. Anderson Cancer Research
  Center
• George R Brown Convention Center Hotel and
  Parking Garage
• D.F.W. Airport Sky Bridge
• Richard E Berry Athletic Complex , Football
  stadium and Basketball Arena
• Florida International University Student Housing
  Complex , Miami, Florida
• Pendleton Street Parking Garage Columbia,
  South Carolina