Hello, you’re just joining us as you can see on your screen, you have joined a webinar green energy for corporations alternatives to support the energy transition. So we’re not starting quite yet. We’ll wait for a couple of minutes and then we’ll get started. But I just wanted to give you a heads on that you are in the right place. And also I’ll repeat these, you know, a few times during the course of the webinar, but you will definitely get the The slides a day or two after the webinar, and they’re recording as well. So we’ll send it to you by email. One. One thing to bear in mind, though, is that that’s no excuse to actually go now and not watch a webinar because you have a chance to ask questions. So see and do see the other questions that your fellow attendees are asking. So yeah, it’s a good chance. So you’ll be able to ask questions on the q amp a box, which is at the bottom of the screen. And, you know, one, kind of like small tradition we have an API Insights is just tell in the telling in the chat box where you’re joining from. So we are I’m here with my colleague, Ata, Sally from Madrid, Spain. And as you can see, I’m calling those markets will be your moderator today. So if you could tell us through the chat box where you’re joining from, that would be great. And then we’ll see that you guys are actually there and not you know, watching TV or reading your email will stare we are.

So

you know, one of the attendees is asking me the mute and the answer is yes you your microphone is muted only the only the speakers you can see on the screen are able to, to speak so but you can still interact with us you have these chat box. And we have the q amp a box as well. So the axes, you know, we like making it interactive. So.

Right. So

I think it’s probably time to actually start with the introductions and the presentation. So what we’ll do now is I’ll ask each of the speakers to briefly introduce themselves in a couple of sentences. So, if we can start with you, Pamela, could you tell us who you are briefly in a couple of sentences?

Yes. Hi, everyone. Thanks for joining. My name is Paul Martin. I’m the head of product and marketing department in Poland, which is a startup focused on energy transition, offering self consumption systems to our customers and customers that believe in an alternative energy, basically, Madrid away.

Thank you very much public. And then, Matthew, if you could tell us Who you are very briefly.

Sure. Hi, everyone. So my name is Metro blah. I’m working with energy in business development. I’ve been doing that for about 15 years. And I’m now based in Dubai Middle East looking after the development of solar PV products for energy in this region.

Thank you very much, Matthew. And last but definitely not least, they want to present this private.

Yes, hello, everybody. So should I share my screen is the same smile here now? Yeah,

I was muted.

Okay, so I’ll try to I try to do two things. At the same time. I’m trying to stop sharing my screen while I introduce myself see if I managed to do that. Hi, everybody. So my name is problem. I’m from a cos I’m responsible for our corporate customer portfolio. We are a leading company within energy attributes, certificates. And we have been. I’ve been with the company for about 10 years have had offices in Oslo, and I’m based in our office in Geneva region in Switzerland. And I’ll try to get my sharing going here. Please tell me if that is. If I’m succeeding or not. The

Do you have succeeded in sharing your presentation?

Good, great. Okay. So, so, then I am a co host and I’m, I’m, I’m just starting place play. Okay. So thank you for to Ada for Insights for for inviting echoes to participate. I appreciate it. And I’m the so the title here is alternatives to support the interview transition. And I will try to give just a little bit of insight to one or two alternatives. But before that, just a couple of words about about who you are, who we are and the company so where I come from, we’ve been around since the inception of the energy attribute certificate market in Europe known as guarantees of origin. And over the years we started working know globally, with all different standards of the certificates. We have possibly more than 400 power plants that we source from and we’ve been working with customers, me you know, we work with our customers so through their value chain, including helping them not only in, in their own in their own operations, but only also where the supply chain issues Sustainable Development Goals, meet the science and targets and our 100 commitments. And we also do, what we call selective PPA advisory where we help some of our customers with PPA challenges. And by the way, possibly as I speak, we will be announcing today a, our our advisory role for PPA that was signed just two days ago in Europe. So, if you stay tuned to do echoes, you will you will receive that we thought it was very cooler when about a year ago this publication was made and we showed up we are we are in the in the in the world of energy attributes certificates, we are a major player. Possibly we do more volumes on an annual basis than anybody else. There are no statistics to support what I’m saying but we believe that, you know, that might be the case. But we’re a small company right and 20 people 20 specialists working on on this full time. Still, we thought it was cool like we showed up here. So But beyond that, this is, you know, looking at this the source names that most people hadn’t heard about. Only a short while ago. So this also reflects the world we live in, and the market we live in, in renewable energy things are moving. And if this if this, this sort of selection had been made, for 2019, for sure, this remarkable young young lady would have would have been on possibly right in that center of the of the whole thing. Many people today would place her among the top five or 10 most influential people in the world. And the remarkable thing Is 15 months ago, nobody outside of her personal circle knew who knew she was. And I think that sort of beyond what she does and beyond her as a person that that is actually possible, and that she has such an influence directly influencing political movements and countries etc is quite is quite remarkable. So I’m telling this as a backdrop in the same way that if you guys look at the video we see from looking at me that I’ve been around for a while. And

I can tell you, you know, over my years and working in industry, to see not only NGOs, pushing CEOs to do more, but actually also seeing CEOs pushing other CEOs and pushing authorities and governments to take more climate action is is quite remarkable. And I think that again, sort of illustrates the the time that we live in and how how things are not as Sorry being put on its head, but really, really evolving and taking on new shapes. And in this in this sort of in this in this space and on this backdrop, we have some really cool companies announcing some very, very interesting and good stuff. Over the years this of course, it’s not you to 2019 this has been going on, led by by some of the most sort of respected and sort of thought after both employers and customers. And you know, these are just some examples of many more. Now, this

this has created a buzz word.

And

I think it’s quite impressed suddenly, you know, PPA was was on on everybody’s lips. PPA in the in the energy, the energy among energy people in the industry suddenly sort of PPA was was really the buzzword and and I think it’s interesting, you know as a first step to try to understand a little bit sort of what’s behind why was this so why did suddenly sort of PDA become almost the the sort of the all attention grabber in this in this environment? Is it sort of I want to be part of the query gang kind of thing? Or am I being pressured either sort of a bit of a peer pressure or stakeholder pressure, whether those are internal or external stakeholders or is it a little bit sort of more down to earth in you know, I really like to hedge my power prices. I like to know where I’m going on these costs. I even like to see if I can, you know, this is an opportunity to get better prices. It said Link to local relations or some specific customer relations where this is an expectation. So it’s really very sort of business related, I do this to secure my business, or I do it so I can, you know, I can talk about it. Either of these are good, I’m not putting this up, but sort of these in any way is not sort of legitimate reasons. These can be, you know, very, very religious related, legitimate and good

management

reasons for for, for doing it. So, I’m not by no means talking this down. But it could also be the, the, the one reason for for some of the companies, at least for doing this is they want to participate and you know, make sure that they’re they take their responsibility to create the impact. So, this is again, sort of a bit of sort of the the environment that we are moving in and I think it’s you know, it’s is interesting to understand. Now, if, if the if the motivation or sort of I want to hatch prices, I want to know where my costs are, there are certain solutions then that sort of impose themselves where you can you can actually do that and, you know, the top three, whether these are, you know, on site or off site, where you actually go into some as an asset owner, by the way, I’m not going to go into all of the details of this, this, this, this this matrix, that’s not the point really is just to give a bit of an open overview. I’d be happy to discuss this in more detail in questions or or in conversations later. So really, sort of, it’s the sort of the nowhere I going cost thing for my, my, my, my energy costs, it’s really the three top ones that are that impose themselves, you know, with, with Clear advantages, but also some challenges possibly to get them into place. And then the lower two and I will talk a little bit about the the one in blue here that are if the, if it’s in fact that is that what is looking for, I really want to do something that has an impact and that can be pointed to some impact, then, you know, there are there are other alternatives that might that are, you know, less less complex to put into place.

So,

and I think that it’s, you know, it’s interesting to look at

what I could call sort of impact efficiency.

If you have a job back

PPA as again, sort of if we grab on to the sort of buzzword. PPA is in most instances of quite a complex structure to put into Replace, contractually, it’s it can be challenging this decision while getting the decision process into place, internally, large companies can be challenging. And so again, if you’re looking at impact, there might be other ways of getting a sort of optimizing the impact to exposure relationship or impact to complexity relationship. That might also if for instance, a cross border situation is in place can make it can make it easier. And again, then there’s sort of a also a simpler contractual structure. So I will just mention one example here and I’m not going to go into to any lengthy technical descriptions. I’m really looking just to get the night to communicate to you an ID and a concept, which is I think is fairly easy to understand. And, and that can be, you know, can be can be taken further and again and other other conversations. So the the concept here is a long term contract for, for guarantees of origin. I’m not talking about Europe, but this could also obviously be take place in other parts of the world. We are we are working on transactions with some of our customers that look like this. So these are discussions we have with project developers pre finance closing of a project that they have in the pipeline, but that is not financed yet. And some of you might know, typically a project developer one day if they sign a utility PPA, so meaning that it’s a utility that signs up and it becomes the office Baker utilities main reason for doing this is to secure that they have the load that they have, they are committed to, and it’s not really to document renewable, renewable production. And so, in this case the the product developer has enough taker at the at the price, but the value of the the green attributes the renewable attributes of that of that project has not been monetized. And in typically the the banks or the finance financial institutions will put a very low value future value on these on these certificates if there is no contract in place, so for them to enter into a long term contract for the certificates and cash flow and ads customer with The bank will take into consideration and facilitate and make the the finance easier. So it really has, you know, it contributes to the financing of the project. And it opens up also a sort of a trade off opportunity, because of this added value to the project to project developer might not saying that’s the case in every case. But we have seen examples of that might say that this has such a value for us that we are willing to, to consider prices for these for these certificates that might be below what would be considered to be a longer term market market value for them. And so that’s a possibility for the for the corporate entity consumers to add renderer relationship with a project that has an impact that has a sort of impact that can be showed and still And still have quite reduced risk exposure and very, very much more simplified transaction structure in terms of legal financial, etc. So that was what I wanted to say. I hope I haven’t gone too much over time. Carlos, I’m happy to answer questions like during this, this event or or in the conversations with you at the later point. Thank you very much.

Thank you prevent for your presentation. I think we have a couple of questions though a trade you will cover those after we have had all presentations. So next up we have Matthew. So promoting the good stop sharing your presentation so Matthew can share he’s, that would be great. And right. So just a reminder to all of you who joined a little bit later, we will be sending The record or whether the video recording and the presentation is to you later on in the week, so don’t worry, but stay with us because this is your chance to ask questions and to see the questions that other people have asked as well and learn more about the different ways in which you as a corporation, good source for anyone energy. So Matthew over over to you.

Thanks, Carlos. And thanks, Previn for for a good transition to, to my presentation which song which actually is going to force you some more on the corporate side of things and which I’ve called corporate TPS in the frontier market, because I’ll spend a little bit of time talking about a specific case study that NZ has, has developed, developed in the country in the country, which is Saudi Arabia, where you would not typically think that that corporate TPS could have a fresh To to our customers there. But maybe before I get into this, I’ll start by just sharing a brief summary of who he is. today. If you’re not familiar with NG you may be familiar with the GFS with the former name of our company, basically a large, large French based energy company with about 170,000 employees, and which is active across three main segments today. So the first one is the power generation where we’re world leader in the in the IPP, so independent power project market with about 100 gigawatts of installed capacity. Then we’re also quite active in the networks segment, which is mainly gas transmission and distribution, as well as in the customer solutions segment. And and this segment includes retail of gas and electricity Energy Services which includes facility management, energy efficiency services, etc. And I think this this segment is becoming more and more important for us and more and more relevant when talking about corporate TPS. Because Because we have indeed a very wide client base and and through our expertise in in power generation, we can address their needs in terms of green energy sourcing. Just looking a little bit about our renewable capacity install. So today we own and operate about 24 gigawatt of renewable capacity, mostly hydro, with with a big presence in France, of course and in Brazil, but also a growing presence in the wind and the solar sector. And looking at the geographic footprint pretty much all over the place and we’re present in 70 countries today. And actually most of these countries we have solar or wind power plants up and running. So I just want to spend some time looking at our renewable and ambitious because they they do demonstrate the importance that corporate TPS has taken for utility companies like like Angie. I think the first thing so we set ourselves the targets that we want to invest roughly three gigawatts per year in renewable capacity additions in the next three years. This is a massive number, actually, with this number. We’ve been ranked number two in renewable capacity additions among all the utility companies. And when you look at the past, that’s six times more than what we we used to install every year in the past five years. So I think this will give us a tier one position in terms of, of development. And interestingly what we believe is that About 50% of this new installed capacities will be contracted directly through corporate TPS. So that’s that’s about 1.5 gigawatts per year that we aim at contracting for corporate pts will be even more than that in after in in a few years time. We believe that then about two thirds of our new capacity additions will be directly contracted with with industrials or cities, municipalities etc.

And, and I think we also want to

diversify our presence

in terms of technology by getting into into more sophisticated technologies, such as bio gas offshore storage, because we believe that in the end today, the corporate TV market essentially focuses on wind and solar, but that would definitely extend to to other technologies in the future. I think maybe a few of the few things that differentiate ourselves to our competitor and when which are actually quite relevant when speaking to our customers. I think it’s it’s really our present throughout the whole value chain from from the early stage origination of projects where you need to master development and permitting of, of land essentially an access to the grid. We also have strong engineering and in house etc contracting capabilities where we can offer to our customers best in class contracting capabilities and procurement efficiencies. It’s also quite important when you when you talk to customers to have the ability to to have strong financial engineering capabilities and to understand how you will be able to to finance the product that that is going to supply energy to your to your clients because they will not obviously most of these industrial companies interested in corporate TPS will not want to end Is their own capital into these renewable assets that we rely on under utility provider or energy provider to do these these investments on their behalf. We also have, of course, from ONM expertise and and, and quite important, also the energy management capabilities that we’ve developed to allow us basically to convert intermittent renewable energy supply into more firm or even even baseload if that’s what what our client wants.

energy supply.

I think maybe I’ll, moving on to the next slide, talking a little bit about the different types of, of the different ways that that clients of energy would have to, to procure green energy, and I’m not going to spend too much time on this, because there’s way too much information on this slide, but I think maybe when I It’s the first thing we do when speaking to a client is in what is key really is to understand their objectives, what are their expectations? And also, quite importantly, what are their limitations, and depending on this understanding will offer different types of solutions to them. So I think the first one, which is key when when developing a corporate PK project is to is to talk about additionality. And to what extent is it important to our customers to demonstrate that their action will directly contributes to the launching and the construction of new renewable projects. And if this is critical to them, then we would rather orientate them towards corporate DPA mechanisms. Then we also need to understand if you go to a corporate TPA, basically, NGO, the energy supplier will invest into a project. We sell electricity over the long term to the client and so it becomes quite an efficient For us to understand if the client will have the ability to pay for this energy for the next 10 1520 years. So the credit rating of our customer becomes quite quite important and also important its ability to enter into a contract for the long term. Because it’s an issue is you can find a customer that is willing to construct for the long term that we will be able to trigger the investment into a new renewable project. Another important element is to understand how quickly do they want to demonstrate the impact of their decision if they want to communicate to market or if they have to meet obligations that are in the very near future then then corporate VPN may not be the right answer. They may prefer going to, to energy certificates route. And then also decisive is their ability to To enter into into complex discussions about price risk about different commercial structures and contractual negotiations, because these these corporate TPS will be quite, quite demanding from from that point of view. So, I think maybe just to summarize, so, for you to remember and I mean, the way we define these corporate KPIs is is nothing more than a mid to long term contract under which a business and and as I said it could be industrial companies, but we see more and more interest from schools from hospitals, municipalities to purchase electricity directly from an energy generator. And there’s different ways of structuring that purchase. Either what we call physical PPS. So that could be direct wire or behind the fence type of project or could enter into more complex structure, such as virtual tks. Maybe just giving quickly a few, a few references of offenses in and some numbers to to show you how this market is moving but it’s it’s developing very fast in particular in the US and Europe, and just a few numbers about us. Last year, about 13 gigawatt of projects have been developed through corporate TPS. So this is a very big number and in the first nine month of 2019, and the same number has already been achieved. So it’s definitely a growth market. We see that what started initially with pretty simple transactions where energy would be sold from from just one single renewable project to to an energy to go to a customer are now becoming more and more complex because the client are becoming more and more demanding. I think what they’re now looking for is a is 100% green electricity is consumed and not anymore as produced by the renewable assets. So they’re looking for suppliers that are able to, to supply them with 100% green electricity for every single hour of the year.

And, and so that that’s leading to more two more complex structures. So energy today has about two gigawatts of of projects either developed or under final stages of development in eight countries. And I think the landmark project we announced recently is one with with Microsoft in the US for about 230 megawatts, which I like to mention because it combines wind supply with solar supply from off site projects that are quite far from, from Microsoft consumption points. Together with with firming to the able to achieve a profile hundred percent renewable and that is matching the customers consumption.

So, this is maybe for general overview

and and as you can see on the map there is one location that is that is missing that is not yet in in blue. And that I will be talking about in the in the next two slides and then that’s a project I’m familiar with because I’ve been directly involved in it but it’s to illustrate a little bit how how this corporate PPS are expanding everywhere in the world and, and even in, in markets, such as in the Middle East where you think that that these are not deregulated. Electricity supplied by by government entity. And, and electricity is pretty cheap. Actually. It’s the fuels are heavily subsidized. It’s all conventional or thermal based power generation. But still in these markets. We see that That’s renewable, corporate PPSR making an entry. So the products in question is, is the first corporate PPA in the in the GCC, it’s a direct wire PPA. So behind the fence project with a with a clients that is called Nordic. And just to let you know an attic is one of the largest dairy producer in the Middle East and North Africa. So I think the situation for today and it’s applicable to many other potential clients in the region is that they’re procuring their energy through their own small power plants. So they’re off grid of the main Saudi create, and they’re generating energy through burning of healthy soil and life alone in their own diesel generators. And, and I think what’s important for fanatic to have basically two objectives in mind. First one is a sustainability objective. Of course, that’s, that’s important for them to be able to communicate on, on demonstrating that they’re also transitioning to to a more greener operation. But quite interestingly, it was also a cost saving objective. And they wanted basically to benefit from from the world’s records, terrorists that they were seeing all around in the Middle East happening for their own operation and to basically generate electricity at a cheaper cost. So the product that we’ve developed for them is, is is structured in in a standard way for for independent power projects in the region. Meaning that we will, we will, entity will develop investment means own, operate and maintain a solid plan of about 30 megawatts capacity on the client side. And we are we have signed with this customer for 25 years power purchase agreement together with a with a land lease agreement where they leased the land to us during this 25 years Natick is guaranteed and they will purchase 100% of the output of the of the plant at a fixed price that will remain fixed for 25 years. And they’re taking a full demand risk in the sense that if we’re not dispatching the plants because they don’t, they don’t have the load to consume this electricity they will nevertheless pay us and deemed electricity we should have produced. So this is the way we’ve we’ve structured this and this project corresponds just to give you an idea and $25 million investment for for NG on this client side. So I think I was talking about the sustainability objectives. And this is quite important in this stage because I mean, immediately after signing this, this contract medic has been able to communicate on displacing about 120,000 barrels of oil every year.

And this was, of course, one of the objectives but as I said, not not the only one. With this project, basically there, they’ve been able to procure electricity at about half of the, of the regulated electricity pricing in Saudi Arabia. So they’re going to buy up to 2.5 USD cents per kilowatt hour for the next 25 years. Which which is quite exceptional. For for private customer to be first to be able to buy a top of the grid price but also to be able to to buy electricity, more or less the same time as this world record low terrorists that we’ve seen in the region and and And finally, I mean as it was the first of this type of contractual structure in in Saudi it is attracting a lot of interest from other customers and we’re definitely hopeful that this will help lounge to cooperate PK market in Saudi but also in the wider Gulf region as well. Of course, it’s not been done without without challenges. And and I think the main one that we see in this region and that has been very, very much the case in other regions as well as the lack of regulation. Basically, there is no there’s no standard for for getting electricity generation license or or permits for this type of project. When you talk about a first time then of course you need to be able to access land and again in this part of the world, this is this is somehow complicated. And finally, when you’re when you’re competing with with electricity prices, That are heavily subsidized, as you can see in in more frontier markets, or against electricity generated from fuels that are themselves heavily subsidized. It makes the business case more more challenging. But anyway, so we’ve been able to overcome these challenges, challenges and come up with a solution. That’s that that was very much in line with clients expectation. So hopefully this is the beginning of of a new trend in the region.

And

that’s it for me, Carlos.

Right. Thank you very much, Matthew, for your, your presentation. See, we have a few questions coming in. So if you have to do going to a new audience, if you have questions, definitely send them through the q amp a box, and we’ll try to convert them after the next presentation, which is the last one bye by public safety could stop sharing great. And, yeah, so whenever you’re ready public,

okay, give me a second, and then we’ll

just

share my screen.

I can see it, it works.

Okay, so um, thanks again. Thanks, everyone for joining. I’ll be talking today about specifically soft consumption systems. So we are pulling Just let me do a brief introduction of who we are because probably we’re not so well known as NG or other companies yet. But we are more or less a small company, a startup that was born three years ago in the distributed energy space to provide our customers with an alternative for the energy transition that we believe is unstoppable and were distributed generation systems will play a significant role. So far we have entered Mexico and Spain and Portugal, this three countries where we luckily in enjoy a nice amount of sunlight during the year. So this is the perfect place to to start with our business. Although interestingly, the self consumption systems and based on rooftop solar, which is what we provide first are much more developed in countries in the northern Europe such as Germany where they have more than 1 million installations or Netherlands. But in Spain and because of the regulation that recently changed, we haven’t been able to develop the market as we should. Given this the hours of sun that we that we have every year. We are a startup but we are a spin off of previous venture that was in charge of developing more than 10 gigabytes of solar energy utility scale projects in more than 25 countries so we know about technology we know about TVs and soft consumption systems, which is what we are trying to bring to customers to cooperate and even individual customers. So we tackle every segment from big corporations, to agricultural communities, and even residential. But we like to think about the solutions that we provide in in this frame know, which is the classic trade lemma of energy systems, which try to balance three different aspects. The first one is sustainability, of course. Second one is what it’s called the energy equity, which is the cost basically the affordability of the energy and how it is affordable for customers and to be competitive. And then the last one is the security of supply, which of course, sunlight provides a nice amount of energy during the day but what happens at night, and how we can complement the solutions with either storage or other renewable sources that are not subject to to certain conditions of the sun. We are going to be discussing how self consumption and distributed generation affects each and every pillar of this dilemma that we believe is the most direct and truthful way to tackle these problems. So, to give you an introduction of what is a photovoltaic self consumption system, typically rooftop solar is basically systems or mini power plants that you installed in your rooftop to generate your own electricity instead of doing it. Outside where the energy is consumed, you build a bar blend directly with the energy is consumed. Now that technology is mature enough, so we have been using photovoltaic panels for a long time now, price have been dropping significantly over the past 10 years. So now it’s more affordable Never we expect the prices to remain stable in the in the coming years and only technology will evolve and make it more efficient but now is the most affordable source of renewable energy and is available to install it everywhere. We differentiate two different types of rooftop solar installations basically, depending on the consumption that they have, meaning that if you consume all the energy that is produced, we consider that there are no surplus, but corporate is that for certain reasons, their load is not constant over the the you know, the days of the year or specific days of the week, etc. They might still generate power and just give it to the grid. In that case, the the customer is becoming what is called a perfumer that is producing and consuming electricity so it one more asset in To the system. And this is specifically important because I would like to share is not in this light, but I would like to share a record that was here last month in Australia where this system

are

super extended on in October 21, I think it at noon 64% of the amount of South Australia region was covered by self consumption systems. So when these solutions becomes massive and the scale grows, this can play a significant role in how the market is configured. So I think in Spain or Mexico, we’re just starting but we believe in the future and coming years, especially for corporations, because of the power they can install in the rooftops. They will become more and more significant players in the in the energy sector. Of course, these systems on Self consumption systems are or provide an experience to customer that is typically different from signing a PPA or long term contract or contracting. Any certificate for renewal energy. This is a physical installation that you will experience in your home or in your corporation. So you will see it. It’s important that that that’s a main difference because you you can start making tangible something. So, feeling as as the energy right so you will experience from from the first analysis to create the study of the project to do the engineered solution, depending on the type of rooftop that you have the orientation of the panels, how is the structure you need to stall or the transportation of the panels, the modules, the inverters, everything, you will see the installation. All of that seems like a hard but but it’s not really we want Companies that are focused on this type of system have become very efficient in doing it in a way where customers are totally safe and they don’t need to stop their production for example in in big corporations. Other than that, I mean, they can enjoy a nice power plant that they can visit and they can share it with their employees or even for example in for talking about the schools that they will see a use case that we have in Spain is a nice place because you can be seed power plant directly in your own school. Of course, companies like ours, apart from the whole system from the engineering and studying to the installation, we offer financing solutions, insurances, maintenance, and monitoring tools to help you understand how you are consuming compared to the energy that you’re producing and how you can optimize the investment that you’ve made. In

going back to the

trilemma of the energy systems, of course, if we talking about we’re talking about self consumption systems, Berlin sustainability, this is obvious No, you don’t need God. The energy is produced with renewable sources directly where you are consuming the energy. So is the most efficient way of consuming energy. There is no transportation and therefore there are no processing the energy that is produced is affordable because typically in the projects that we’re making in Spain and Mexico is even better because of the structure of the market. But in Spain, which is a more stable and brutalized market in that matter, we are seeing paybacks from three to eight years depending on the consumption of the customer. This is important and of course, if we take into account also for this paybacks, some of the incentives that are starting to appear tax incentives at the municipal level, that our customers can can enjoy it when they do this type of investment. The payback is is decreasing by one or two years even so it’s a perfect moment to start with this. Of course, another option that we have and we offer to customers is what we have been discussing the version of the PPA, which is a physical PPA, and where we own the plant and we operate it, but we sign a long term contract with our customers to sell them energy force without discount or from between 20 are typically 40% of the daylight energy prices that they that they have with their energy retailer. And regarding security, nice things about this systems is that we tackle more or less between a percent to 40% of the consumption typically in a corporate or in an industrial commercial customer. But the customers will still be connected to the grid. So the security of supply is always insured because we are of the weather, or even at night, they can still consume energy in the traditional way, and they can complement our solution with another PPA or, you know, traditional green energy supply for retailer. By the way, the picture that you see here is one of our systems in Cancun Mayakoba, which, as you can see is very well integrated into the design of hotel resort. We’re going to see a more ugly, but more efficient the systems in the following slides, which I wanted to make it tangible by sharing some of the use cases that we have. This is the biggest brand that we have just finished in Spain. This is six megawatts of solar power that were installed in our in what is called in Spain, our community around this. This means a community of people that pump water to irrigate their fields. This isn’t in the agricultural space. The night things about this is the most similar way to energy community because they share it these resource and they use it to pump the water during the season where they need to irrigate the fields. And it’s more than 2000 people using this installation to water their fields. The the nice things about this system is that they can now irrigate the fields during the day, because typically they were pumping the water overnight because energy prices were lower, but it’s better for the field to irrigate them when there is sunlight. So, this is something that they can do. Of course, with with our system, also, in this case, outside their irrigation season, so during the winter, this power plant is behaving as any regular power plant, selling the energy to the group, and that gives an extra incentives and an extra money to their community to make them more competitive or the products that they produce will be more competitive in the market. And because of that, in a lower scale, of course, this is more than typical system. I would say that smaller the average of our commercial system in Spain or in for self consumption in this case, is this is a school is in the middle of Madrid. It’s 137 kilowatt, which tackles more or less. I think it was roughly the 30% of the of the energy that they consume

with annual savings of 20%, which again, not only the savings that are important for the school is just also how to show to you know, this their students that how energy is produced, how sustainable they can be and if there are Additional values other than just the savings that of course, are super evident in this case with a payback of eight years without taking into consideration the tax incentives that they enjoyed them a few years in Madrid. Another example is more in the industrial level, this is a bigger plant, this is half megawatt for a brewery that is in the southwest of Spain, in this case VNO savings or less, but as you can see is 100% of utilization of the energy that is generated. And this is, I mean is one of the typical cases for industrial customers. As you can see here, they are saving more than 5000 50,000 euros per year in energy. And they are planning to extend these to other breweries that they have in the southwest being so and I wanted to share briefly the latest project that we’ve made and This is not yet completed. That’s why I cannot share a new picture. But this is a bigger industrial customer, where we’re installing four megabytes in the rooftop is more than per thousand panels and the energy savings every year will be over 420,000 euros. Of course, this is a very the energy consumption that this type of customer have is huge now but and we’re only tackling 16% of the of the consumption, but they consume everything in these type of systems. The only constraint that we have is, of course the dimensions of the rooftop. Otherwise we would keep installing panels and power because they can consume as much power as we can we can install in for that matter. I think there are two different constraints that we need to understand here. One is the consumption that you have if your partner is really line with photovoltaic generation pattern or not to embrace this type of solutions, because the savings will be higher, of course, if you consume energy during the day, but even even if you consume energy, every hour of the day, you can still embrace this systems anti-colonial portion of your consumption, depending on how much that is right. But that was in very brief detail what we do. Of course, I’m available to answer any questions about this. This is an exciting technology that we’re put in to customer so I’m happy to answer any questions that you may have. Now, or, you know, feel free to reach out later on, if you feel so. Thank you.

Thank you very much for your presentation. So we have a number of questions here. And, you know, really start with the question that everyone has a mind so out of those three options, which one is, is the best? No, actually, that’s not a good question that was meant to be a bit of a joke.

I thought it was clear with mine, but in case there is either

it was meant to be a joke, or probably a bad one. But I’m right. So let’s start with the questions from bigger audience just to see your if you were awake actually, probably if you could stop sharing for a while, so they can see you as well. was we having our discussion? Right. So you know, one question, I would have a Sir, you have talked about additionality. So, if I understand the concept correctly, that means you know, the amount of new renewable energy that is encouraged by by an action that you could undertake, such as having a PPA or you know, one of the the other options so you know, so I know Matthew, you mentioned that You know, if you want, if a customer wants to have an impact in that way you recommend a BPA. Why Why is that? Why does it impact additionality more than other options?

I think it’s, it’s I mean, in terms of from of image, I think we might measure is that it would have the strongest impact because without this BPA, we would not basically trigger the launch of the product and invest in the product, we need to contract first contract the energy for for long term before we take the decision to to invest into this product. So this is really the main trigger for us to invest and, and and the client will be able to mean to claim that impact.

Okay, thank you very much. And you know what i do your views, private and public about the additionality impacts your options have

I just needed to Sorry, I needed to unmute.

Yeah. I mean, sort of the

it’s, you know, you’re you’re, you’re you’re joking, jokey question to to start with is, you know, is isn’t actually that bad Not because there is a good answer to it, but because I think it describes how some people think, you know, which is the best one. I think it’s the sort of which is the best one realm related to my situation or my company situation or you know, what it looks like. So, so, for song, it is, you know, a PPA is what makes most sense. And of course, when what you you know, makes a reference to the to the price that The, the Saudi customer repay, I mean, you know, it’s, it makes all the sense in the world, for that customer to do what they do. But for other another company based on morels, where the conditions are different, and they are load is different, and, you know, the PPA or and the regulatory framework in that pace is different. A PPA might not be on the table as a survival option. And then so what what was possible to do shouldn’t take a step back and say can’t do anything, or should we then look for opportunities to do something else? So I think that’s really and and of course, you know, additionality I think I don’t know if additionally, he has, has now started to to appear in the in the dictionaries. But we all remember a few years ago when we wrote additionality, in the in the in a Word document came a red line on red because the dictionary in the N word didn’t recognize additionality as a valid work. So it’s something you know and what is additionality is a discussion we can have for a long, long time. So we start off slow to talk about impact, what is the sort of the the concrete impact of what is being done? And I think that is,

you know, there is, depending on what situation is what makes more sense and what is the more efficient way of creating impact.

Right. Thank you very much, Bob. I don’t know if you’re going to have

a chain.

Yeah, no, I think honestly, the depends on each and every situation depends on the law depends on the location depends on the possibilities that you have. A solution might fit you and another one might complement the other. I think the perfect way to tackle this is to go more and more into the room. Normal energy, I think we have now different solutions at our disposal. And we just need to see how the different pieces fit together to achieve the goals that we have as corporations, which is becoming more sustainable. The end goal of these will be 100% renewable, of course, how to do that, how to start working on that. I think it depends on the regulatory framework that there is in the country, your location of your low type of investments that you can, you know, come up with so I think in that matter, of course, I like a lot distributed solutions, because I think it’s more truthful for the world and direct way to do that. But you can only take a certain percentage of your total load, you will not achieve 100% unless there is a storage as well, which will be important in the coming years but not yet.

Okay, thank you very Much. There is a question for you here. Pablo asked about the decommissioning of solar panels at the end of a life cycle. So is it something that you you have in place now to do?

You’re still muted. Yeah. So uh, well,

honestly, not yet the lifetime of our models are the ones that we’re installing. We expect them to be greater than 25 years with which was the typical lifetime of the models we’ve seen lifetime over 35 years in and they are still at 75% of the power. So I think the commission is important, but we are not yet doing that. But we have some strategies with the manufacturing companies that with with the modules, to do that and to recycle as much as we can, of course

Okay. And Matthew, in your case, have you considered that aspect of the project as well the end of life cycle management?

Sorry, I was I was on mute.

No, I mean to be, to be honest, we do budget for for end of life costs. But because these projects are 2025 30 years Horizon, we so we set aside a budget, but we’ve not we’ve not yet reached any clarity on how we will effectively manage that at that point in time.

Okay, thanks. So, yeah, I understand that, you know, wouldn’t be the first thing that would come to mind the beginning of a project, but I know that at least in Europe, there is quite a comprehensive program for sharing

beneficiary For

we, you know, dealing with the commissioning thing we have, we’ve noticed that matches.

So,

the

writer, we have a number of questions here, but I see that they are kind of parts of conversations that you have already started with, you know, you have answered in writing. So, I think, you know, we’re also already over the last half hour so, but I don’t want to call the conversation short, so abruptly. So, you know, in a few words, like you do, do say, you know, how do what kind of client generally speaking, you would recommend your solution. So if you could start forever, you know, who, who do you think is the prime example for someone of someone who could benefit the most for for going for your solution which as I understand these certificates of origin

um,

I’d say that it can apply to money it can apply to companies don’t have do not have the the lower either the load size or structure, but we’ve sort of typically fit into a PPA, it could also be two companies that might be in that position. But for some reason, the, the management does not want to take such a large commitment over a long period of time. And that could be for flexibility reasons, or, you know, that could be for for a number of reasons. And it could also be that some just are reluctant, at least in the short term, to move into a process that necessarily engages a number of have different services in the company, you have technical, you have finance, you have the accounting, you have sustainability you have

you have

site management, etc. And it can be, you know, just to get everybody to sit around the table and agree on the process can be quite, quite challenging. So, you know, there are there are different motivations, but I think to say, you know, in terms of flexibility and in terms of a lighter process, and lower financial commitment, you know, would be sort of key words for those who would want to go in that direction instead of going in for and again, you know, I’m, again, I’m very supportive of PBS. That’s not the question is really sort of, you know, are there more because we know that we know that 111 solution doesn’t suit everybody. So

Exactly, it’s a It seems that for someone who’s actually perhaps doesn’t have the resources to commit to engaging in that game in a more complex project, a certificate of origin solution could be best. Right? Okay. Right. So, Pablo, so, you know, who who do you think is a prime claim for or a prime user who could benefit the most from your solution?

Honestly, our solution are suitable for everyone that has a rooftop. So if, if you have a rooftop if your company has a rooftop, our solution is perfect in the sense that you can produce your own energy create savings in your energy costs, which is a concern for most of our customers. And at the same time, you are becoming more sustainable, and you have better control of your energy consumption. So we believe savings sustain ability and control are the three main benefits for everyone that owns a rooftop.

Right? Good. Well, thank you. Thank you very much to both of you. And thank you to everyone in the audience as well, who’s stuck with us for the entire webinar. Just before I go, just to let you know that we will definitely be sharing the slides with you and the recording. So, you know, I have nothing else to add, other than to say that if you want to see more webinars of these guys, go to our website, which is KPA insights.com. And then you’ll see what we have coming up next. Right, any parting words for the audience? Robin?

No, I think, you know, it’s really it’s really fantastic to see the interest that is generated around renew energy. And for my personal sake, I am I would welcome any follow up conversations with any of the participants just reach out and be happy to to continue a conversation.

Thank you, Pablo, any, any parting words for the audience?

Now again, feel free to reach out. I’m happy to discuss this in further detail with any any viewer you are interested.

Right. Well, once again, thank you very much. And see you next time here at our webinars. Have a good day.

Thank you. Thank you so much. Bye. Thank you.