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Renewables Making Our Future Better

Renewables Making Our Future Better. TJ Tuscai . Senior Vice President. May 20, 2010. Cautionary Statements And Risk Factors That May Affect Future Results.

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Renewables Making Our Future Better

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  1. Renewables Making Our Future Better TJ Tuscai Senior Vice President May 20, 2010

  2. Cautionary Statements And Risk Factors That May Affect Future Results Any statements made herein about future operating and/or financial results and/or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward- looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our Securities and Exchange Commission (SEC) filings.

  3. FPL Group is a premier U.S. power company FPL Group • $21.8 B market capitalization • 42,678 MW in operation • $15.6 B operating revenues • $48.5 B in total assets Florida Power & Light NextEra Energy Resources • One of the largest U.S. electric utilities • Vertically integrated, retail rate-regulated • 4.5 MM customer accounts • 24,530 MW in operation • $11.5 B in operating revenues • $26.8 B in total assets • Successful wholesale generator • U.S. leader in renewable generation • Assets in 26 states and Canada • 18,148 MW in operation • $4.0 B in operating revenues • $20.1 B in total assets A growing, diversified and financially strong Company Market Capitalization as of May 14, 2010, Source: Bloomberg Operating revenue for the year ended December 31, 2009 All other data as of December 31, 2009

  4. Our strategy has won FPL Group widespread industry recognition … We’re No. 1 on the “Most Admired” list and one of top 10 most innovative companies in the world We were named Power Company of the Year by Platts against a field of 200 international competitors

  5. NextEra Energy Resources has 18,1481 MW located across 26 states and Canada NextEra Energy Resources Portfolio Wind Hydro Natural Gas/Oil Solar Nuclear Other States and provinces with NextEra Energy Resources power generation facilities 1As of 12/31/2009

  6. NextEra Energy Resources’ portfolio consists of industry leading low carbon generation capacity NextEra Energy Resources Portfolio by Fuel Type(1) CO2 Emission Rate(2) Lbs / MWh Hydro 359 MW Solar 148 MW Natural Gas 6,693 MW Nuclear 2,552 MW Oil 796 MW Wind 7,544 MW Other 56 MW With 95% of “no carbon” to “low carbon” generation assets, NextEra Energy Resources has one of the lowest carbon emission rates of any generator (1) As of December 31, 2009 (2) Source: Energy Information Administration

  7. Since 2002, NextEra Energy Resources has added more than 13,000 MW NextEra Energy Resources Capacity Growth 2002-2009 MW 2002-2009 CAGR(1): 17% 3,491 MW of Acquisitions 9,594 MW of New Build (2) (1) CAGR from January 1, 2002 to December 31, 2009 (2) Includes 550 MW of leased capacity in 2002

  8. Renewable energy has been an important growth driver for NextEra Energy Resources since 2002… Cumulative Wind Growth MW 2002-2009 CAGR: 23%

  9. …and has positioned us as the U.S. leader in renewable energy by a wide margin NextEra Energy Resources – Leader in Renewable Energy (Wind, Solar, and Hydro) MW 150% ∆ NextEra Energy Resources’ renewable capacity is more than double the next leading competitor Source: American Wind Energy Association as of 12/31/2009

  10. Capturing the wind… …innovation at work

  11. Wind is truly a global market, but the U.S. market remains the global leader Global Installed Wind CapacityYear-end 2009 GW 35.2 25.8 25.1 19.1 10.9 4.8 4.5 Year-end 2009 installed global capacity was 157.9 GW Source: Global Wind Energy Council (GWEC)

  12. We have 7,459 MW of wind capacity and nearly 9,000 wind turbines in the U.S. giving us a significant scale advantage over other leading U.S. owners Top U.S. Wind Owners(2009 Total Capacity) MW Resources Strong U.S. market fundamentals in recent years attracted significant investment from around the world in U.S. wind Note: NextEra also has 85 MW of wind capacity in Canada Sources: American Wind Energy Association as of 12/31/09

  13. The global wind industry continues to expand • 37,500 MW new build (per GWEC1) in 2009 • Cumulative wind capacity worldwide is now 157,900 MW±¹ • Largest new build countries in 2009: • China 13,000 MW • U.S. 9,900 MW • Spain 2,500 MW • Germany 1,900 MW • India 1,300 MW • ROW 8,900 MW 73% of all wind built in 2009 in just 4 countries 1GWEC - Global Wind Energy Council, 2/09 announcement

  14. Renewable Portfolio Standard (RPS) Voluntary standards or goals Proposed or studying RPS Growth in renewables has been fueled by Renewable Portfolio Standards (RPS) Renewable Portfolio Standards in the U.S. WA: 15% by 2020 MI: 10% MWh & 1,100 MW by 2015 NH: 23.8% by 2025 ME: 40% by 2017 MT: 15% by 2015 ND: 10% by 2015 VT: 20% by 2020 MA: 15% by 2020 MN: 25% by 2025 OR: 25% by 2025 NY: 25% by 2013 WI: 10% by 2015 SD: 10% by 2015 RI: 16% by 2019 PA: 18% by 2020 IA: 105 MW NE: Proposed RPS CT: 27% by 2020 NV: 25% by 2025 OH: 12.5% by 2025 IL: 25% by 2025 UT: 20% by 2025 CO: 30% by 2020 NJ: 22.5% by 2020 CA: 20% by 2010 & 33% by 2020 KS: 20% by 2020 MO: 15% by 2021 NC: 12.5% by 2021 DE: 20% by 2019 OK: Studying an RPS AZ: 15% by 2025 NM: 20% by 2020 MD: 20% by 2022 VA: 12% by 2022 DC: 20% by 2020 TX: 5,880 MW by 2015 HI: 40% by 2030 FL: Studying an RPS WV: 25% by 2025 LA: Investigating Potential for RPS KY: Report Recommends RPS TVA(1): 50% by 2020 Source: FERC as of 7/8/09 (1) TVA: Tennessee Valley Authority

  15. Wind’s promise in the U.S. is now being realized… • 2009 was a record year for U.S. wind development • 9,900+ MW in U.S. • Represented $20 billion of new investment • Many challenges and opportunities still exist (transmission, queue reform, project finance, etc.) • 2010 U.S. wind market: • Wide range possible; 4,000 – 7,000 MW • Uncertainty of project finance/ tax equity markets have delayed investment for many • Hangover from 2007 & 2008 largely depleted • U.S. wind production in 2010 will be between 2.5 – 3.00% of U.S. electricity supply¹ ¹Assumes fleet-wide NCF of 34% and flat national usage from 2008 (4,000 TWhrs)

  16. Wind has strong long-term fundamentals, but also faces short-term challenges 2009/2010Near-Term Challenges Long-Term Wind Growth MW 000s • Continued uncertainty regarding federal climate change legislation or federal Renewable Portfolio Standard • Low commodity prices and lower electric demand make it harder to justify new wind generation • Economic uncertainty and extension of Production Tax Credit through 2012 has reduced urgency of customer decision making 2009-2014 CAGR: 18%

  17. Solar is a great growth opportunity…

  18. NextEra Energy Resources has several solar technologies in which to invest Solar Technologies • Thermal Trough • Commercially established utility scale technology • Proven and financeable • Similar to our existing facilities in California • Photovoltaic • Mostly distributed generation • Traditionally high cost/kWh; but declining fast • Building off of our experiences at FPL in 2009/2010 Our primary focus in the near term is now both PV and Thermal

  19. WA MT OR ID SD WY NV NJ NE UT CA CO NV MD UT CA CO KS AZ NC NM AZ OK SC NM AR TX MS AL GA TX LA FL Solar Resource Guide Strong Mid Range Poor Thermal and concentrator technologies thrive in areas with high Direct Normal Irradiance (DNI), while photovoltaic technologies rely on high Global Horizontal Irradiance (GHI) Which Technologies Where? Traditional Silicon & Thin Film Thermal & Concentrators Global Horizontal Irradiance (GHI) Direct Normal Irradiance (DNI) Source: National Renewable Energy Laboratory (NREL)

  20. Energy from the sun is essentially unlimited Theoretical Supply Potential • US Summer Peak demand ~ 800,000MW • 100MW of Concentrating Solar Power (CSP) takes ~1 square mile in the southwestern U.S. • 8,000 square miles of CSP would meet entire U.S. electric peak demand

  21. Still high cost renewable resource (>$100 / MWh) Competition from vertically integrated manufacturers Manufacturers bypassing developers Unreasonable return expectations driving down margins for everyone Water permitting issues for solar thermal technology Falling prices delaying decisions by off-takers Lack of construction despite multiple PPAs awarded creates rate base opportunities for off-takers Renewable Portfolio Standards (RPS) Solar carve outs in many states Peak coincident resources (unlike wind) Declining technology costs In particular, solar photovoltaic Manufacturers’ production ramp-up to drive costs down further Drivers Challenges The solar market presents both opportunities and challenges for developers Solar Market Drivers and Challenges

  22. Significant transmission needed to unlock renewable resource in the U.S. Highest quality, low cost renewables located remotely from interstate power grid FPL Group pursuing transmission investments in key markets that leverage NextEra Energy Resources’ existing position We are pursuing transmission development opportunities to support our renewable business Transmission Focus Areas Rationale

  23. Transmission policy may change more in next 2-3 years than in the past 75 years Transmission Policy • Transmission policy changes • Regional cost allocation, federal siting, regional or Interconnection-wide planning, barriers to entry • Regional cost allocation • Regional cost allocation necessary to build out the grid • FERC has authority to broadly allocate transmission costs under current law – legislation may limit FERC discretion • Transmission policy reform may benefit NextEra Energy Resources’ wind and transmission businesses • Increased takeaway capacity from resource-rich regions • Lower barriers to development of regulated transmission by new entrants like U.S. Transmission Holdings Central question: will FERC exercise its discretionary authority?

  24. NextEra Energy Resources and green jobs have and will continue to fuel economic recovery • Wind – 100 MW • 200 - 300 construction jobs • 20 – 40 operations jobs • Solar – 100 MW • 3,000 – 5,000 direct & indirect jobs • Transmission – 200 mile line • 200 - 400 construction jobs • Significant state and local tax revenues Big opportunity for NextEra Energy Resources & the country

  25. NextEra Energy Resources continues to deliver growth through wind & solar 2010-2014 Growth Drivers – New Business Installed Wind Capacity Installed Solar Capacity 750 11,000 550 ■Existing Wind■New Wind ■Existing Solar■New Solar■New Spain Solar 3,500 – 5,000 (MWs) new wind…400-600 (MWs) new solar

  26. The reality is you can grow to be a Fortune 500 company and make our future better People Planet Profit NextEra Energy Resources Adjusted Earnings ($ MM)(1) 95% Low Carbon Growth & Profits Green Jobs 1) See the Appendix for reconciliation of adjusted amounts to GAAP amounts.

  27. Appendix

  28. NextEra Energy Resources Reconciliation GAAP to Adjusted Earnings ($ in millions)

  29. Cautionary Statement And Risk Factors That May Affect Future Results

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