WindVenture  

Inves.ng  In  Green:  A  Renewable  Way  To  Help  Recovering  From  An  Earthquake  

Executive Summary •  WindVenture  is  a  renewable  energy  company    aiming  to  help  the  economic  recovery  of  the  area  

around  l’Aquila,  harshly  hurt  by  the  earthquake  of  2009..  •  WindVenture  propose  a  project    that  is:  

•  profitable  for  both  investors  and  local  community  •  contribuCng  to  a  clean  environment  •   with  a  16%  IRR  

•  WindVenture  will  take  care  of  two  key  ac.vi.es:  1.  Fundraising,  managed  by  a  team  with  exper.se  in  private  equity,  consultancy  and  entrepreneurial  ventures  

2.  OperaCons,  managed  by  an  industrial  partner    ac.ng  as  the  General  contractor  and  managing  the  project  down  to  the  smallest  detail:  o  pre-­‐authorized  land  purchase  o  wind  mills  &  all  required  equipment  and  machines  supply  o  plant  installa.on  and  maintenance  

•  Our  Target  investors  are  mainly  ins.tu.onal,  industrial  or  private  equity  investors  looking  for  a  sure  and  quite    sa.sfactory  IRR  who  desire  to  both  diversify  their  porLolio  while  contribu.ng  to  the  world’s  legacy  with  a  green    investment.  

•  Total  iniCal  investment  is  13  million  €  to  be  financed  through  20%  equity  and  80%  debt  •  The  risk  of  the  project  is  medium-­‐low:  80%  of  the  revenue  stream  is  given  by  incen.ves  guaranteed    

for  a  15  years  period    •  The  exit  strategy  for  investors  would  be  through  sales  of  shares  to  other  investors  or  sale  of  the  en.re  

plant  to  a  bigger  company  

Project Team

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Laura  LaurenCni  

Financial  Manager  Degree  in  Business  

AdministraCon  

Luca  Pegurri  

Technical  Supervisor  Electronic  Engineer  

YuLin  Celine  Chu  

 Market  Analysis  Bachelor  of  Business  in  

InternaConal  Trade      

Masataka  Matsuyama  

Business  Development  Diploma  in  InternaConal  

RelaCons      

Francesco  Paolo  Toscano  

Project  Manager  Electrical  Engineer  

Agenda

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Intro  

Business  Model  &  Project  Analisys    

Financials  

Agenda

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Intro  

Business  Model  &  Project  Analisys    

Financials  

<  

Market Trend & Industry Profitability (1/2)

•  Different growth rates and maturity stages •  All technologies have potential for major capacity additions

Very high Hydro

Wind

High

Medium (c-SI) Low (Thin Film)

Geothermal

Solar Low

Very high Biomass

TOTAL

Solar PV Concentrated solar power

Source: Enel estimates based/WEO 2008/GWEC 2008 (2008); Industry reports/McKinsey (2020)

Market Trend & Industry Profitability (2/2)

Financial  a[racCveness...   ...investment  benchmarking  

(100€  invested,  end  of  2005)  

0  

25  

50  

75  

100  

125  

150  

175  

200  

2005   2006   2007   2008   2009   2010  

FTSE  MIB  

Industry  -­‐  Energy  

WindVenture  

Bond  (20  y)  

Eur  

Geo  

Biomass  

Wind  on-­‐shore  

Hydro  

CSP  

Solar  PV  

Wind  off-­‐shore  

IRR  return  (u

nlevered

 a_er  ta

xes)  

PotenCal  Capacity  AddiCon    (2008-­‐2020,  GW)  

Low   High  Medium  

>  12%  

10-­‐12%  

5-­‐10%  

The Italian Scenario

Agenda

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Intro  

Business  Model  &  Project  Analisys    

Financials  

WindVenture Business Model

We  will  raise  funds  from  private  investors,  through  small  individual  investments  (average  investment  of  15,000  €)  using  both  typical  and  innova.ve  channels:  

•  Our  personal  network  •  Social  networking  •  Environmental  associaCons  

Fund  Raising   OperaCon  

The  opera.ons  will  be  outsourced  to  an  industrial  partner  that  will  deliver  a  turn-­‐key  wind  farm.  They  will  manage  the  following  aspects  of  the  project:  

•  Project  financing  with  banks  •  Supply  of  materials    •  Purchase/rent  of  a  pre-­‐authorized  site  and  

plant  construcCon  •  ConnecCon  of  the  plant  to  the  electricity  grid  

and  tesCng  for  overall  efficiency

Site Analisys: Casamaina (Abruzzo, Italy)

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•  Annual  mean  wind  spead:  8  m/s  

•  Ridge  height:  1500  m  

•  Specific  Weibull  distribuCon  of  the  site  

Technical Specifications: Gamesa G52-850 kW

•  N°  turbines:  12;  Height:  52m;  Blades:  25,3  m  

•  Turbine  Nominal  Power:  850  kW  

•  Load  Factor:  38,57%  

Agenda

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Intro  

Business  Model  &  Project  Analisys    

Financials  

Project Financials – Revenues, Costs & Financing Revenues  

Energy  sale  +  Green  CerCficate  =  €  180    per  MWh  

Leverage:  80%  Debt  rate:  5,75%  18  yearly  instalments  

Costs  

Investment Valuation

0,00%  

5,00%  

10,00%  

15,00%  

20,00%  

25,00%  

30,00%  

35,00%  

0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%  

IRR  

Debt  

•  Debt  @  60%    12,86%  IRR    

•  Debt  @  70%    14,18%  IRR  

•  Debt  @  80%    16,14%  IRR  

Summary

A[racCveness  of  the  project_______________  

•  Profitable  investment  (IRR  16,14%)  

•  Low  risk  for  the  investors  

•  Economical  posi.ve  impact  on  the  area