State of the Wind Market

A Partner to Leading Brands

Slowdown in Construction in 2010

Sources: AWEA U.S. Wind Industry Annual Market Report - Year Ending 2009; AWEA 4th Quarter 2010 Market Report

• 5,115 MW installed in 2010

• 51% less capacity installed than 2009

• 2009 was a record-setting year with

10,010 MW installed

• Constraints in capital and credit markets

impacting development

• 40,180 MW of total capacity

• Enough to power over 9 million homes

U.S. Energy Infrastructure

Renewables: 2.5% (Biomass: 1.31%; Wind: 0.83%; Solar: 0.01%; Geothermal: 0.35%)Oil: 1.6%; Other fossil fuel: 0.5%

source: EPA eGRID2010 Version 1.1

Installed Capacity by State

Source: AWEA 2010 Market Report

Large scale wind projects are happening across the U.S. as states reach increasing levels of wind production.

U.S. Wind Power Installed Capacity

Source: AWEA 2010 Market Report

Voluntary Purchases are Critical

• Voluntary purchases

of RECs represented

OVER 50% of all wind

sales in 2008

• Voluntary buyers are

making as big or

bigger of an impact

as state-level

requirements

Source: Lawrence Berkeley National Laboratory and National Renewable Energy Laboratory

Voluntary REC Markets are a Major Driver of Green Power Development

• Green Power sales have grown at a compound annual rate of 37% between 2005 and 2009.

• Most of the demand (62% in 2009), and most of the growth, stems from the purchase of unbundled RECs.

Source: National Renewable Energy Laboratory

Financing a Project:The Four Legs of Wind Energy

Tax IncentivesDepreciation

Energy SalesRenewable Energy Credits

Value of RECs to Wind Projects

* Value as a percent of 20 year rate requirement

Source: John Deere Renewables

Voluntary Market

• Most organizations lack the ability to install onsite renewable energy:

– Zoning restrictions

– Lack of natural resources

– Capital limitations

• RECs allow businesses to purchase grid-sourced renewable energy

Renewable Energy Credits

Compliance Voluntary

One Commodity – Two Markets

Compliance vs. Voluntary Markets

• Not all RECs created equal in Compliance Markets– Varying State Requirements

• Technology type, vintage, project start date, etc.

• Compliance Market drivers: Rules & Price– Politically driven, varying interests at stake– RECs often purchased with cost as only driver

• Voluntary Market provides a driver for projects outside compliance states and increases demand for all RECs

One Commodity – Many Compliance Markets

www.dsireusa.org / June 2011

"By converting Plant Mitchell to biomass, we hope to not only help grow the renewable resource base in Georgia but also to expand the market for renewable energy credits, which ultimately will foster additional renewable energy development.“

~ Mike Garrett, President and CEO, Georgia Power

Straight From The Developer

“To any developer doing a wind farm in today’s market, renewable energy credits are critical to the revenue stream in taking a project over the top. If we do another one, it certainly will be a critical factor.”

~ Dave Osburn, Oklahoma Municipal Power Authority

“In ten years, Wind will be bigger than oil in Texas.”

~ T. Boone Pickens, Pickens Plan

“Selling of RECs makes the construction of more renewable energy generation plants possible and also makes existing renewable generation more commercially viable.”

~ Tim Swanson, Director of Origination for Florida Power & Light (FPL)

“There isn’t a single renewable facility that goes online in this country where RECs aren’t considered in the core financing.”

~ Steve Maller, John Deere Wind Energy

4775 Walnut Street, Suite 230 . Boulder, CO 80301 . 877.810.8670 . www.renewablechoice.com

Contact

Sales@renewablechoice.com877.810.8670