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

1. Making the Business Case for
Distributed Generation
Solutions
Peter Fusaro
Chairman, Global Change Associates
New York
petefusaro@global-change.com

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. 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. 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
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 Syndicates and smaller deals- regional
• Non-traditional sources of financing
 Individuals
 Foundations
 Governments
 Strategic partners
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 Utilities All rights reserved. Confidential and Proprietary.

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. 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. 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
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• Attempts to make this a carbon credit microfinance play by
RFID tags failed
• Now just a seller of various kits
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8. •Solar PV now much more affordable
•Technology advances have been a key
•Chinese manufacturing and pricing helped to
drive prices down 70% (panels delivered in US at
73 cents/watt)
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•Can be widely distributed solution for both off
grid and on grid
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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
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consumer (paid back by energy savings)
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10. Example of ATD

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
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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.