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									          New perspectives


          Renewable Energy Asset Finance


          Erik van de Brake
          Rabobank International



1309064
          RI Project Finance activities
          Arranging Senior and Mezzanine debt finance for Renewable
          Energy projects in Europe
              – On- and offshore wind
              – Renewable transport fuels (biofuels)
              – Biomass/biogas, waste-to-energy (Netherlands)


          • Recent deal examples:
              – Q7 offshore wind (Wind Deal of the year 2006)
              – Abengoa France bio-ethanol
              – C-Power offshore wind, Belgium

          • Pipeline deals:
              – Bio-ethanol, biodiesel, on- and offshore wind, biogas, waste-to-
                energy.


          2                                        Erik van de Brake   RI Project Finance
1309064
          Strong growth in RE asset investment…
                    Sustainable Energy Investments 2004-2006, selected countries

               30

               25

               20
                                                                               EU27
   $ billion
               15                                                              United States
                                                                               China
               10                                                              India
                                                                               Africa
                5                                                              Latin America


                0
                         2004               2005       2006


          3    Source: New Energy Finance            Erik van de Brake   Rabobank International Project
1309064                                                                                       Finance
          ….driven by wind and biofuels

          Sustainable Energy Investments 2006, by technology


                                             $ billion                       Share of total

              Wind                            27.0                                  38%

              Biofuels                        18.2                                  26%

              Solar                           11.2                                  16%

              Biomass and waste                6.8                                  10%

              Other renewables                 3.1                                   4%

              EE/other low carbon              4.6                                   6%

              Total                           70.9                                 100%


          4     Source: New Energy Finance               Erik van de Brake   Rabobank International Project
1309064                                                                                           Finance
          Case study: Q7 offshore windfarm
          • 120 MW, 60 turbines, EUR 383 million investment

          • First offshore windfarm to be fully project financed

          • Sponsors:
              – Energy Investment Holdings
              – Econcern
              – ENECO Energie

          • Location:
              – Distance to coast: 23 km
              – Waterdepth: 20-25 m
              – Surface Area: 14 km

          • Renewable Energy for 125.000 households

          5                                    Erik van de Brake   Rabobank International Project
1309064                                                                                 Finance
          Location




          6          Erik van de Brake   Rabobank International Project
1309064                                                       Finance
          Timeline
          • Sponsors purchase of development rights              late 2004

          • Lenders mandated for financing                       spring 2005

          • Financial close                                      October 2006

          • Start operation                                      March 2008




          7                                  Erik van de Brake   Rabobank International Project
1309064                                                                               Finance
          Construction and operations
                                   • Vestas
                                           – Turbines & towers

                                   • Van Oord
                                           – Foundations
                                           – Electrical

                                   • Vestas
                                           – Operations
                                           – Maintenance




          8                    Erik van de Brake   Rabobank International Project
1309064                                                                 Finance
          Other contracts

                            •    Delta Loyd
                                    – Insurance

                            •    Public support
                                    – 10 year MEP fixed tariff
                                    – Investment tax credits EIA and
                                        Vamil

                            •    ENECO
                                    – Power purchase agreement




          9                 Erik van de Brake   Rabobank International Project
1309064                                                              Finance
          The challenges of offshore wind
          • Construction risk
               – Multi contracting – interface risk
               – Weather risk - delay


          • Operational risk (availability)
               – No long term track record
               – No easy access


          • Managerial risk
               – Much more complicated to develop, plan and coordinate




          10                                          Erik van de Brake   Rabobank International Project
1309064                                                                                        Finance
          Drivers of offshore wind economics
          • Amount, form and period of subsidy/tariff

          • Price of turbines and offshore equipment

          • Long term availability of turbines / reliability of technology




          11                                    Erik van de Brake   Rabobank International Project
1309064                                                                                  Finance
          Contacts

                     Erik van de Brake

                     Head Project Finance
                     T +31 30 216 3623
                     E erik.van.de.brake@rabobank.com




          12                  Erik van de Brake   Rabobank International Project
1309064                                                                Finance

								
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