Scatec Asa · OSL:SCATC
Scatec Asa — Scatec Solar — Swedbank Conference 2016
20 slides from Scatec Asa's conference presentation, Mar 17, 2016
Slide 1: Developing solar in emerging markets
Developing solar in emerging markets Swedbank Conference March 17, 2016 Our values • Predictable • Driving results • Change makers • Working together
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not rely, act or make assessment on the basis of this presentation or anything inc
Slide 3: South Africa: Solar is now cheaper than coal
South Africa: Solar is now cheaper than coal The 40 MW Linde plant in South Africa Page 3
Slide 4: Rapid price decline boosts volume growth
Rapid price decline boosts volume growth Total system cost - 1 MW (USD/Watt)* Annual new installed capacity per year 77.8GW 68.6GW 3.24 57.7GW 2.65 45.0GW 39.9GW 1.80 30.7GW 1.85 1.58 28.3GW 1.49 1.33 1.24 1.16 1.10 1.35 1.05 1.00 18.3GW 0.93 7.7GW 0.71 0.68 6.6GW 0.60 0.54 0.49 0.46 0.43 0.40 2010
Slide 5: Solar – a very competitive source of electricity
Solar – a very competitive source of electricity (EUR ct /kWh) Levelized cost of energy, utility scale new build power capacity 40 30 Diesel Gas CCGT 19 – 26 (peak load) ct / kWh 20 15 – 20 ct / kWh Coal Solar PV 2015 - 2050 Gas CCGT 10 6-14 ct (base load) 5 – 10 ct 5 – 7 ct 5 4 – 7 ct 3 – 5 ct 2 –
Slide 6: Significant market growth ahead
Significant market growth ahead Disruptive growth within PV, wind and storage required to meet IEAs 2 degree scenario achievable Regional primary energy demand in the 2-degree scenario 2012 2050 14% 44% World United States European Union China India Brazil Africa 0% 25% 50% 75% 100% 0% 25% 50% 75% 1
Slide 7: Technology is key – battery cost is dropping
Technology is key – battery cost is dropping USD Lithium Ion Battery Price per MWh 1,000 930 900 805 800 700 680 600 545 505 475 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 Source: Pike Research
Slide 8: Storage will increase the market for large-scale PV
Storage will increase the market for large-scale PV Export / generation capacity (% of installed MWp) Energy stored (hours) 100 5 80 4 PV generation 60 3 40 Export grid 2 20 1 0 0 Battery charging / discharging -20 -1 -40 -2 -60 -3 11:00 00:00 14:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09
Slide 9: FT March 16: 90% of new electricity was renewable
FT March 16: 90 % of new electricity was renewable March 16 9
Slide 10: Scatec Solar – a leading player in utility scale PV
Scatec Solar – a leading player in utility scale PV The 75 MW Dreunberg plant in South Africa Page 10
Slide 11: An Integrated Independent Power Producer
An Integrated Independent Power Producer Scatec Solar Develops, Builds, Owns & Operates Solar Plants for 20 Years Scatec Solar Equipment Project Ownership Financing Construction Operations manufacturing development (IPP) • Own • Equity and • Engineering • Performance • Long-term development debt • P
Slide 12: A growing and diversified asset portfolio
A growing and diversified asset portfolio In operation 1 Czech Republic 20 MW Kalkbult, RSA 2 75 MW Linde, RSA 3 40 MW Dreunberg, RSA 4 75 MW 1 ASYV, Rwanda 5 9 MW Agua Fria, Honduras 6 60 MW 7 Utah Red Hills, USA 7 104 MW 8 Total 383 MW 9 6 11 Under construction Jordan 8 43 MW 12 5 Projects in back
Slide 13: A solid project funnel – basis for further growth
A solid project funnel – basis for further growth MW in production and under construction ~2,500 In operation In operation & under construction MW 1,400-1,600 > 50% 1,096 MW 750-900 >90% 550-600 426 383 422 MW Financial close/ Construction start YE2015 YE2016e YE2018e IN OPERATION / UNDER CONSTRUCTI
Slide 14: Our holistic approach is the recipe for success
Our holistic approach is the recipe for success Kalkbult, 75 MW South Africa Key ingredients: • Market understanding and screening • Access to financing • Partnerships • Regulatory framework and legal set up • Project development and execution • Operation and asset management ASYV project, 8.5 MW Rw
Slide 15: Strong partners – provides capital and mitigates risk
Strong partners – provides capital and mitigates risk Norfund partnership: • Project development and investment partnership • Norfund & KLP - equity co-investors in key markets IFC partnership: • Project development and investment partner in selected countries in West Africa and Asia Project finance
Slide 16: Strong community relations – vital for success
Strong community relations – vital for success • Economic development – often a critical part of the renewables program • Strong community relations key for successful execution • Job creation is the most important factor – both directly through construction and operation jobs • In South Arica Econo
Slide 17: Africa: Lack of power holds back economic growth
Africa: Lack of power holds back economic growth Key facts • 54 countries and population 1.1 billion • Sub-Saharan Africa GDP equals Netherlands, but includes 7 of the 10 fastest growing economies in the world • Total power production in Sub-Saharan Africa (ex South Africa) equals Norway’s power pro
Slide 18: COP21 in Paris: Also a leap forward for renewables?
COP21 in Paris: Also a leap forward for renewables? • Climate Finance, e.g. the UN Green Climate Fund, can speed up deployment of renewables in developing countries • Scatec Solar: Strategy and Programme for UN accreditation(CDM) of our solar power plants in developing countries • Current Scatec Sol
Slide 19: Scatec Solar is well positioned for the future
Scatec Solar is well positioned for the future • Diversified asset base with stable cash generation for the next 20-25 years • Solid project pipeline for further growth over the coming years • Track record and business model for complex emerging solar markets • Emerging economies take advantage of l
Slide 20: Thank you
Thank you The 60 MW Agua Fria plant in Honduras 20