details - Solar Panels Singapore

OVER-INVESTMENT IN

CLEAN ENERGIES OR

CREDIT CRUNCH?

6 Eu Tong Sen Street, #07-06

The Central, Soho One

Singapore 059817

T: (65) 6227 5940

F: (65) 6227 5945

W: www.asiacleantech.com

Ron Mahabir, Managing Director

ron@asiacleantech.com

1

PROPRIETARY

& CONFIDENTIAL

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Macro Opportunistic View

2

PROPRIETARY

& CONFIDENTIAL

SOURCE: KPMG, IEA, CLEANTECH GROUP, COMPANY.

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New Resources Era

Expected Clean Energy Investment per annum 2005 to 2030, US$billions

PROPRIETARY

3 & CONFIDENTIAL

SOURCE: WORLD ECONOMIC FORUM, “GREEN INVESTING 2010”

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Impact of GFC on Energy Sector

Valuation of Energy Assets & Companies

“Expensive”

Healthy investment in

utilities in emerging

markets

1997

Asian

Crisis

Growth potential

attracts liquidity

Improved regulatory

framework

“Cheap”

9/11

Enron

Argentina

Global

Financial

Crisis

Where are we Post-crisis?

-------------------------

Continued growth

Lower technology costs

Huge stimulus

Venture scarcity in SE Asia

Largely improved

fundamentals

1990 1995 2000 2005 2010 2015

4

PROPRIETARY

& CONFIDENTIAL

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Value Creation Opportunity in Early-stage

Total Cleantech Deal Activity in Asia Pacific, US$billions

Decline in earlystage

funding

(-27% in 2009)

PROPRIETARY

5 & CONFIDENTIAL

SOURCE: CLEANTECH GROUP

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Significant Arbitrage Opportunity

Market Value per MW of Large-Scale Solar Power Plant

7.1 million

x5

4 million

Equity

3.9 million

Equity

0.8 million

Debt

3.2 million

Debt

3.2 million

Cost to Build

(USD)

Market Value

(USD)

PROPRIETARY

6 & CONFIDENTIAL

SOURCE: ETRION

Based on clean energy generation comparables and M&A

precedent transaction values, solar assets trade at an enterprise

value of 10 - 15x EBITDA.

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Growing Funding Gap in Emerging Asia

GLOBAL CLEANTECH VENTURE CAPITAL FUNDING, IN US$BILLIONS

2008 2009 2010 Q1

North America 5.80 70% 3.50 62% 1.50 82%

Europe/Israel 1.80 22% 1.60 28% 0.26 14%

China 0.43 5% 0.33 6% 0.07 4%

India 0.28 3% 0.19 3% 0.01 1%

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Void in Early-stage Funding in Southeast Asia

PROPRIETARY

8 & CONFIDENTIAL

SOURCE: AVCJ PE AND VC REPORT: SOUTHEAST ASIA (2009)