Solar Developer’s Perspective

COST and Murtha Cullina LLP

lode·star  noun \ˈlōd-ˌstär\

1. a star that leads or guides.

2. something that serves as an inspiration, model or guide.

3. developer of public sector solar PV projects founded by Jeff Macel and Jaime Smith

Monetized Virtual Net Metering Credits

True Alignment of Interests

Municipal Interests

Long Term Energy Savings (15-30% Savings)

Freedom to contract with 3rd party providers

Facilities located in areas of less impact

Alignment of interest on energy savings – no “rate risk” or “escalator risk”

No development risk – sign with developers with actionable projects

Vested interests for Towns to incentivize local projects

Developer Interests

Financing Certainty – Strong Credit Offtaker

Level playing field with 3rd party providers

Highest and best of available lands

Alignment of interest on energy savings – no “rate risk” or “escalator risk”

Bifurcation of load and location – many off-takers to choose from

Priority given to town of project for shared benefits of project

VNM Credits - Respective RolesLodestar Municipalities

   

Project Development (High Risk/High Cost)- Negotiate land agreement- Interconnection Application,

and System Impact Studies- Permitting- ZREC Procurement with CL&P

and UI

None (No Risk) 

   

Construction and Operation (Low Risk)- Engineering, Procurement & Construction- Underwriting and Financing- Operation and Maintenance of

Facility 

Purchase $Dollar Credits Generated by Facilities at Significant Discounts for Fixed Term (usually 20/20+ years) (No Risk)

Experience – Proven track record of developing and financing solar projects.

Network – Network across financing, construction services, and key vendors.

Execution– Unwavering focus on driving to close; who will you be working with?

Regulatory and Policy knowledge –Understanding programs allows developers to anticipate and capitalize on opportunity.

Problem solving - Underwrite projects, identify and close any development gaps (i.e. engineering, interconnection, permitting, environmental, real-estate, legal contracts).

Choosing a developer . . .

Before founding Lodestar Energy, Jaime founded and built Joule Finance to advise and find investors for solar DG projects. Closed over 30 MW of projects in 2013 across a dozen clients.

Previously, was VP/GM of the US Commercial business for SunEdison with full P&L responsibility from sales to operations through financing for all commercial and public sector customers.

Under Jaime’s leadership, SunEdison grew from $100 million to over $250 million in revenue in one year, from 2010 to 2011 and closed over 100 commercial DG projects, including the first solar projects in Pennsylvania and Puerto Rico.

Financed projects successfully with Wells Fargo (though $120 million DG fund), PNC, Rabobank, Metlife, Pardee Resources and Constellation Energy.

BS in Industrial Engineering from Virginia Tech; MBA from Harvard Business School.

Jaime A. Smith – Partner and Co-founder

Before founding Lodestar Energy, Jeff founded and built ALTRU Energy, to develop and finance solar DG projects. Developed over 15 MW of projects in 2013 across four projects.

Prior to founding ALTRU Energy, worked as an attorney representing public and private companies, private equity funds, and financial institutions in a variety of businesses and industries, including renewable energy, finance and real estate, including multiple tax equity transactions. Closed over $20B of deals. Jeff has represented private equity and portfolio companies in the Renewable Energy and Technology arenas for over a decade. He represented Evergreen Solar (ESLR) during its formative years, through its initial public offering in 2000, and as a public company thereafter. Evergreen Solar is regarded as a global renewable and solar pioneer and leader in solar renewable energy technology and maintains an active presence in a substantial number of deals in the U.S. and abroad. AB from Bowdoin College; JD from Duke University. Admitted to the bars of Massachusetts, New York and Pennsylvania.

Jeffrey J. Macel – Partner and Co-founder

Projects (MWs) Total 2014 2015 2016

Site Control(15 parcels)

20 5-10 5-10 TBD

Robust & Growing Pipeline

15 sites across CT (4-6 acres each)

All CL&P

Willington (4), Suffield (3), Enfield (2), Stafford, Brooklyn, Lebanon, Scotland, Mansfield, Killingly

Questions . . .