Matt Williams - LendLease - Harnessing People Power
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Transcript of Matt Williams - LendLease - Harnessing People Power
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
4
3 Key Lessons Learned
SECTION TITLE HERE
Commit Early
Know your Client’s Drivers
Manage Stakeholder Expectations
5
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
7
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
8
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