James Cameron Founder

1
James CameronFounder Advisory Board Chairman
Country specifics UK support
program

• September 2004

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Our Unique Offering
CCC is a specialist merchant banking firm
focussing on climate change and energy security
related business. CCC works to bridge the gap
between policy and finance in areas related to
the reduction in climate change.
Policy and Markets Research
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Our Experience

• Specialist Advisor to CGE Power in the UK
• Joint advisor on major multinational transaction
• Early involvement with a number of bidders for
  FFF

After only one year of operation CCC has
developed an impressive set of mandates and
experience. Many of these transactions remain
ongoing as is the nature of financial advisory
and policy-driven work.
Power Market MA / Restructuring

• Advised under-bidder on several hundred million
  Euro investment in major renewable energy
  developer
• Broad based MA mandate from major UK private
  equity firm (3bn under management)

Renewable Energy MA
Renewable Energy Financing

• Launching a UK listed fund for small wind farm
  investments
• Mandated advisor for UK biomass project

• Advisor to IPO of bio-diesel company (listing
  expected late 2004)
• Fund raising for methanol-based clean fuel
  supplier

Clean Fuels

• Advisor to University spin-out with potential to
  revolutionise market for hydraulic power
  transmission

Technology

• Mandated advisor to large UK utility developing
  new policy concepts in energy efficiency and
  micro-generation
• Into the Blue study BWEA on financing
  mechanisms for UK wave and tidal power

Strategy / Policy Consulting
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Related Growing Markets with Major Policy
Influencers

• Biodiesel/ethanol
• CNG/LNG/Methanol
• Hydrogen/fuel cells

Clean Fuel
2004 30 billion 2010 200 billion
Carbon Finance

• EU Allowance Trading
• CDM/JI Kyoto Credits
• Renewable Energy Certificates

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Policy objectives

• Security of supply
• Exploit existing technologies at lowest cost
• Need to promote new technologies
• Industrial competitiveness
• Financing is difficult in liberalised markets
• Emissions reductions
• Renewable power is not the cheapest form of
  emissions reduction

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Support mechanisms
Many forms of support
As many opinions as there are mechanisms!
best depends on the suite of policy objectives
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and support for new technologies
Maturing technology allows for more formal
contracting
3rd Generation PV or Early Stage Marine
Onshore Wind
Proving the technology allows for issue of
warranties
Initial concept
Proven
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Revenues under the RO

• UK Green prices are a sum of many components
• The brown price and smear values are driven by
  market forces
• Prices are well in excess of costs of on-shore
  wind
• But final value depends inversely on success!
• Bankers are avoiding market price risk

Present annualised cost of on-shore wind
Fixed at 30/MWh inflation
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Institutional constraints

• Network operators
• Renewables tend to be small connect to LV
  systems
• Designed around centralised generation model
• Offshore means substantial, riskier investment
• Are the network operators incentivised to connect
  manage renewable loads?
• Planning Authorities
• Are consents available?

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Conclusions

• A universal solution is an unrealistic
  expectation
• Comprehensive, intelligent and integrated policy
  is vital
• REEEP
• International Certificate Trading
• No binary switch
• UK has
• Resource
• Policy
• Capital
• Professional Services

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Disclaimer

• The financial services outlined in this
  presentation constitute regulated activities as
  defined by the Financial Services and Markets Act
  2000 (Regulated Activities) Order 2001 as such
  these activities can only be undertaken by an
  authorised person. Climate Change Capital
  (Advisory) Limited ("CCC(A)"), a wholly owned
  subsidiary of Climate Change Capital Limited
  ("CCC"), is authorised and regulated by the
  Financial Services Authority. Consequently the
  regulated activities of the CCC Group are carried
  out by CCC(A) rather than directly by CCC. Some
  of the information, and in particular the
  financial services described within this
  presentation, are intended exclusively for
  persons who qualify as an intermediate customer
  or market counterparty. Please refer to the
  disclaimer on the Climate Change Capital Group
  website www.climatechangecapital.com for further
  details.

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James CameronFounder Advisory Board Chairman
Country specifics UK support
program

• jcameron_at_c-c-capital.com
• Tel [phone]