Harnessing People

PowerIntegrating Community Funded Solar into Darling Harbour

Live

April 2016

2

Community Funded Solar Array at ICC Sydney

• Darling Harbour Live is a 25 year PPP between Lendlease,

AEG Ogden , Spotless, Capella and the NSW Government

comprising new convention, exhibition and theatre facilities

• The Community Solar Array comprises a 520kW of PV on the

roof of the new International Convention Centre, Sydney.

• Panels are supplied and installed by Canadian Solar

• Embark have established Sydney Renewable Power Company

and will seek shareholders in FY17.

• The power will be purchased by Darling Harbour Live and its

Operator, ICC Sydney (AEG Ogden), via a Power Purchase

Agreement (PPA).

• A LEED rating for ICC Sydney will be obtained together with a

Green Star Communities rating across the Darling Harbour

Precinct.

THE PROJECT

3Sydney Renewable Power

Company

SECTION TITLE HERE

At 520kW it’s the

country’s largest

CBD array and

first large scale

community funded

solar generator

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3 Key Lessons Learned

SECTION TITLE HERE

Commit Early

Know your Client’s Drivers

Manage Stakeholder Expectations

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The Community

Funded Solar Array

was contemplated in

our bid for the

International

Convention Centre,

Sydney

Commit Early – Its Too Hard To

Consider During Delivery

• We need certainty before we can

commit our resources and brand

• We spoke with some community

providers whose intentions were good

but they didn’t appear to have much

experience or proven success

• Embark’s financial experience was a

point of difference and their offer was

presented because they could

underwrite the array.

COMMITTING EARLY

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The PPA between

Darling Harbour Live

and Sydney

Renewable Power

Company is in place

for up to 25 Years

Client Drivers – why a Power

Purchase Agreement?

• PPA structure allows Darling Harbour Live

and ultimately its Operator (ICC Sydney)

to access the power generated by the

solar array with no up front capital cost

• Shifts the cost of PV to an operating cost.

Removes the split incentive.

• All power generated by the array will be

purchased at a pre-agreed hedged price.

• Represents a proportion of the total power

consumed by the facility to minimize

exported power. Net metering or battery

storage = much bigger system.

CLIENT DRIVERS

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Low carbon power

was a desirable for

ICC Sydney but not a

mandatory part of a

building rating;

NABERS, Green

Star or LEED

More Stakeholders = More Risk,

Manage Expectations

Pros

• Engaging with stakeholders is a great

opportunity to create social license

• Renewable power can be provided at no

capital cost

Cons

• Cost of capital may not be an issue for

some clients

• Introducing additional partners means

more contracts, in this case an unusual

one with little precedent; a model contract

for industry is needed

• Not every project is a PPP – how does

this transfer ownership?

MANAGING STAKEHOLDERS

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Making it Work Well,

in 3 [not so] Easy Steps

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• Do they value sustainability?• Do they want to engage with

stakeholders?• Do they have a long term commitment?

1. Finding the Opportunity

The Owner / Client

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An experienced and passionate

Community Enabler

The Owner/ Client

Technical know-how

• Do they have the proven experience?

• Do they have access to community investors?

• Will they have any ongoing interest?

2. Getting the team

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Community Enabler

Head Contractor

Owner/ Client

No client buy-in

Community not

engaged

• Ability to underwrite an offer

• Access to community investors

• Proven financial experience• Ongoing interest in the

Special Vehicle

• Design and Delivery experience in renewable energy systems

• Commissioning and demonstration of performance

• Long contractual period (>10years)• Value on sustainability• Willingness to engage with the community

Success!

3. Putting it all

Together

Technical know-how

12NEXT STEPS

The Final Piece……

Sydney Renewable Power Company intends to offer ordinary shares to the public and will make a disclosure document available when that offer is made. Anyone wanting to acquire shares will need to complete the application form that will accompany the disclosure document and should only rely on the disclosure document when deciding whether to invest.

www.sydneyrenewable.com