sun zia wind - reta new mexico · the nasdaq (“pegi”) and toronto stock exchange (“peg”)...

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Sun Zia Wind May 2017

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Page 1: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Sun Zia Wind

May 2017

Page 2: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Disclaimer

This confidential presentation contains material non-public information. By accepting this confidential presentation, the

recipient agrees to use any such information in accordance with its compliance policies, contractual obligations, and

applicable Laws including Federal, Provincial, and local jurisdiction securities laws.

These presentation materials may neither be reproduced nor used in whole or in part for any other purpose, nor

furnished to any person without our express written permission. While the information included herein is believed to be

accurate and reliable, by delivery of this presentation, we do not make any representations or warranties, express or

implied, as to the accuracy or completeness of such information. By accepting this presentation, the recipient agrees that

we shall not have any liability for any representation (express or implied) contained in, or for any omissions from, this

presentation or any other written or oral communications transmitted to the recipient.

The delivery of this presentation shall not, under any circumstances, create the implication that there has been no

change in our affairs after such date. Certain provisions of various agreements may be summarized in this presentation,

but it should not be assumed that the summaries are complete. Such summaries are qualified in their entirety by

reference to the texts of the original documents.

© 2015

Page 3: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Company Overview

Page 4: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

About Pattern Development

▪ Pattern Energy Group LP (Pattern Development) is a leading

independent wind, solar and transmission development company

▪ We develop and construct renewable energy and transmission

assets in the United States, Canada, Mexico, Chile, and Japan

▪ Our highly-experienced team has brought more than 4,500 MW of

wind power to market

▪ By combining creativity, focus and a scientific approach, we have

advanced our position as an industry leader and shown consistent,

groundbreaking work

– Our team was the first to successfully develop a utility-scale wind

energy project on Native American lands in the United States, on

the Gulf Coast of Texas, in the State of Nevada, and in the

Commonwealth of Puerto Rico

▪ Our current development pipeline includes 5,900 MW of wind and

solar power projects in addition to transmission projects

Page 5: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

About Pattern Development

▪ We have expertise in all project stages: resource analysis, site

development, finance, construction and asset management

▪ Pattern Development’s affiliate company, Pattern Energy Group

Inc. (Pattern Energy), is an independent power company listed on

the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”)

– Pattern Energy has a portfolio of 16 wind power projects with a

total owned interest of 2,282 MW in the United States, Puerto

Rico, Canada, and Chile

▪ Strong commitment to delivering the highest value for our partners

and the communities where we work while promoting

environmental stewardship and corporate responsibility

▪ Offices in San Francisco, Houston, San Diego, New York, Toronto,

Mexico City, Santiago, and Tokyo

Page 6: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Our Values

▪ We use science and innovation to drive breakthroughs

– Utilizing a science-based approach drives our groundbreaking work

– Helps us discover important prospects, raise the bar for availability and

production, and deploy new technology to mitigate environmental impacts

▪ We develop and build high quality projects

– Focus on quality at every step of the development and construction

process to maximize production and build project to last for the long-term

– Use sophisticated engineering techniques, hire elite contractors, and

procure state-of-the-art equipment from leading industry vendors

▪ We protect the safety of our employees, contractors and the public

– No task is so important or urgent that it cannot be done safely

– Safety is incorporated into our decision making and considered in all

stages of project lifecycle

Page 7: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Community & Environmental Commitments

▪ We support the communities in our project areas

– Ensure our projects succeed by ensuring the project area communities

succeed

– Strive to build strong relationships with landowners, local officials, and

community members

– Earn trust through communication and collaboration and work to

structure our projects so benefits spread to the local communities

▪ We respect the land and the environment

– Consider it our responsibility to produce and transport clean, renewable

energy to consumers with the least amount of natural impact

– Aim to exceed industry standards and be a leader in the advancement of

best practices for the identification, assessment, and mitigation of our

environmental impacts

Page 8: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Core Competencies

Finance & Permitting

▪ Contract negotiation

▪ Project finance

▪ Permits / Real estate finalization

▪ Insurance

▪ Third party verification

▪ Hedging

▪ Community Relations

Origination & Development

▪ Greenfield / Acquisition

▪ Meteorology and analytics

▪ Community support

▪ Utility and supplier relationships

▪ Transmission /

Interconnection planning

Construction

▪ Engineering

▪ Construction management

▪ Project administration

▪ Site Biological and Archeological

monitoring and mitigation

▪ Environmental, Health and

Safety management

Corporate Administration & Support

Page 9: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Cohesive Management Team Since 2002

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FORMED

PATTERN

DEVELOPMENT

9

34%Compounded

annual growth rate

2003–2015

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Cumulative Megawatts (financed and managed by Pattern Development management)

LAUNCHED

PATTERN

ENERGY IPO

4,500 MW+of capacity

30+wind projects completed

$12 billion+energy infrastructure assets financed

Page 10: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Ownership in Pattern Energy Group Inc.

Publicly traded company

Public

Shareholders

Ownership

(1) Represents shares held by the public shareholders as well as certain directors and members of management

~77%(1)

~23%

▪ NASDAQ listing: PEGI

▪ TSX listing: PEG

IPO on October 2, 2013

Page 11: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Pattern Development and Pattern Energy Portfolios

Pattern Development Pattern Energy

Chile JapanCanada / United States / Mexico

Owner

Page 12: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Meteorological Team

Page 13: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Pattern Meteorological Capabilities

• Development and operational focused scientific team with

backgrounds in atmospheric science and physics

• Project prospecting through high performance computing

center (MHPCC) and mapping

• Meteorological tower data quality control and maintenance

• Project siting and optimization

• Turbine site suitability analysis

• Calculate project uncertainties

• GIS and environmental mapping

• Operational wind farm assessments

• Short term forecasting and day ahead market analysis

13

Page 14: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Project Mapping and Visualizations

14

• Meteorological team is well versed

in GIS mapping and atmospheric

modeling

• Visualizing each project provides

another level of analysis for not only the

meteorological team, but also for

developers and community relations

Page 15: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Broadview Development

Page 16: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

• Total Project nameplate capacity 544 MW

• BEJN: 181.7 MW (79 turbines planned) Q1 2017

• BEKW: 142.6 MW (62 turbines planned) Q1 2017

• GWEC 220 MW (96 turbines planned) Q4 2017

• Siemens 2.3 MW turbines with 108 m rotor

• Connecting with Western Interconnect LLC (formerly Tres Amigas “Phase Zero”

transmission line) at 345kV to Blackwater Substation with delivery into California

Market (CAISO)

• Transmission service through the Public Service New Mexico (PNM) and Arizona

Public Service (APS) transmission system

• Executed two 20 year power sale agreements with Southern California Edison (SCE)

for BEJN and BEKW

• Executed one 25 year power purchase agreement with Sacramento Municipal Utiltity

District (SMUD)

Key Project Information

Page 17: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest
Page 18: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

~ 14 miles (324 MW on 42,000 acres)

~ 8 miles

BROADVIEW ENERGY PROJECTs

~ 22 miles (544 MW on 85,000 acres)

BEJN

BEKW

GRADY

BEJN

SWITCHYARD

WESTERN INTERCONNECT

Page 19: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Transmission Enabled Wind

Page 20: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

SunZia Southwest Transmission Project

Page 21: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest
Page 22: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Corona Area Land (Inset with State and Federal land)

Torrance County

Lincoln County

Page 23: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

SNZ Project Status

23

▪ 1,500 MW of Land Control

▪ 145,000+ acres under option

▪ ~ 900 MW PTC qualification via “Start

of Construction”

▪ Initial foundations for 30 turbines

▪ ~ 42,000 ft. of access roads

▪ Purchased turbines to allow for full PTC

qualification of 1,500 MW of wind

projects at SNZ project sites

▪ Over 5 years of wind data collected

▪ Installed and/or upgraded instruments

on 30 met tower masts

Page 24: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Commercial Interest Impact on Schedule

▪ Interest in New Mexico’s wind resource is magnified by the economic benefits of the

Federal wind production tax credit (PTC)

▪ To qualify for 100% of the PTC, the wind project must be in service by 12/31/2020

▪ Interested wind developers are looking to secure Power Purchase Agreements,

based on a price that includes 100% of the PTC

▪ Every year after 2020, the value of the PTC diminishes

Page 25: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Start of Construction

Federal Production Tax Credit

Example of Initial Excavation: Turbine Location

Page 26: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Start of Construction

Federal Production Tax Credit

Example of Initial Excavation: Turbine location with Mud Mat

Page 27: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Start of Construction

Federal Production Tax Credit

Example of Initial Excavation: connecting access roads

Page 28: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Start of Construction

Federal Production Tax Credit

Example of Initial Excavation: connecting access roads

Page 29: Sun Zia Wind - RETA New Mexico · the NASDAQ (“PEGI”) and Toronto Stock Exchange (“PEG”) – Pattern Energy has a portfolio of 16 wind power projects with a total owned interest

Loralee Hunt

Manager, Project Development

Pattern Energy Group LP

Phone: 575.317.1574

Email: [email protected]