Achieving Your Solar Potential Solar Power Generation and T I I P C S I

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Achieving Your Solar Potential Solar Power Generation and T I I P C S I www.pwc.com/sustainability Achieving your solar potential Solar Power Generation and TiiTransmission, PCPwC SSiervices and Citations ‘What if you could provide the world with an endless supply of virtually carbon-free electricity; ensure a constan t source of dr in ka ble water to the world’s most vulnera ble areas; avert some of the world’s future humanitarian crises; and save billions of dollars in the process? Concentrating Solar Thermal Power (CSP) proponents say there is no “could” about it – it’s more a case of “can”.’ CNN, 12 November 2007 - Contents Introduction 3 How we can help 4 Projects in Focus 14 Thought leadership 18 Key contacts 20 Citations directory 24 Solar Power: Services and Citations PwC 2 November 2010 Introduction The challenge posed by climate change has put the renewables sector in the spotlight as governments, companies and consumers grapple with issues such as security of energy supply, environmental impact and affordability. Governments remain under pressure to meet agreed international and domestic commitments and show support for furt her carbon emiiissions reduct ion throug h effective policy and regulation. Companies are also concerned, and many are now looking to extend their value chain both upward and downward to secure their energy supply. Financiers continue to search for secure investments that have acceptable levels of risk and will deliver in the long term. All of these have driven rapid growth in the sector over the past few years with the result that renewable energy companies and project developers are now increasingly operating in new markets and geographical locations, and in changing and complex PwC has the experience and skills to support you. policy and regulatory environments. PwC works with governments, companies and industry There are a range of renewable energy options that will be stakeholders in every region of the world and has been taken forward in years to come. PwC’s view is that the instrumental over the past 100 years in many of the major world needs to quickly identify and promote those developments that are shaping the energy and renewable renewable energy solutions that can immediately cut energy industry today. glbllobal greenhouse gas emiiissions, and, where possible, begin to address other areas of risk such as energy This booklet sets out how PwC plays a key role in helping security and supply. governments, business and society make the transition to renewable solar energy options. It outlines the services In this publication we look specifically at Solar energy. that we offer to support programmes, provides examples Our view is that this source of energy, whether in the form of completed work, and introduces some of our renewable of Photovo lta ic (PV) or Concentrat ing So lar Therma l energy thought leadership and research to help shape and Power (CSP), is a viable alternative to support electricity support the debate going forward. generation around the world, and shows increasing potential, when combined with appropriate transmission Should you need support or be interested in learning networks, to help address the climate change challenge. more, please get in touch with us via the key contact names provided at the end of this booklet. We look forward to the opportunity to engage and support you with this important challenge. Solar Power: Services and Citations PwC 3 November 2010 How we can hhlelp Introducing PwC Solar Power: Services and Citations PwC 4 November 2010 Audit and Assurance PwC audits and provides non-financial assurance services PwC assurance teams around the world use a single, to major energy and utility companies in all key energy global assurance methodology, fully compliant with markets and territories. Recognising that all companies International Auditing Standards, international standards want assurance teams that know their issues and for non-financial assurance engagements, and applicable understand their business challenges, PwC’s energy national standards. Our globally consistent approach to professionals bring a high level of knowledge to their assurance means that, regardless of location, PwC people work. Our industry dedicated professionals receive can understand and evaluate your business using a single specialised training, including regular updates on language and common methods. In turn, that gives you a renewable specific issues. uniform leve l of exceptiona l quality in all of our assurance services. This methodology also enables us to quickly Our financial assurance practice has the deep, practical organise and deploy the multinational and cross knowledge and experience necessary to help your functional assurance teams our larger multinational organisation with complex financial accounting issues clients require. related to matters such as valuations, pensions and share plans, listings, International Financial Reporting Standards (IFRS) conversions, and corporate treasury and company secretarial functions. “Strategically important Strategically important non-financial data is increasingly non-financial data is relevant for senior ilinternal diidecision makers and increasingly demanded by investors, analysts and increasingly relevant for regulators. There is also an increase in the importance of related governance, conduct and risk management senior internal decision practices. We help clients integrate the reporting and assurance of non-financial data with financial data, to join makers and increasingly up the reporting and assurance of the organisation's key, demanded by investors, strategic performance information. PwC also provides assurance and improvement recommendations on the analysts and effective operation of governance, conduct and risk management systems and procedures. regulators.” Solar Power: Services and Citations PwC 5 November 2010 Advisory Players in the renewable energy sector are faced with We are able to deploy trusted industry specialists with a wide variety of challenges during the planning and unparalleled knowledge of business processes and realisation of their projects. These range from how to technology and customer relationship skills, as well as finance project development and realisation, financial and accounting expertise. Our advisory practice includes skilled professionals in corporate finance, handling transactions for the purchase or sale of modelling, strategy, management consultancy and individual projects, completing project pipelines, to sustainability and climate change. strategic issues such as the entry into new markets or countries. Our advisory practice puts energy sector companies and other industry stakeholders at the leading edge. Whether you are pursuing new opportunities, responding to events or coppging with the dail ypy pressures of com pliance ,g, growth , competition and shareholder value, we are there to help. “Players in the renewable energy sector are faced with a wide variety of challenges diduring th e pl ann ing an d realisation of their projects.” Solar Power: Services and Citations PwC 6 November 2010 Tax Many companies are expanding into solar power as Other areas to consider include: carrying out pre- they are looking to either decarbonise their own acquisition due diligence; the financing options available operations or are looking to increase the low carbon to you; and the value of carrying out quantitative analysis. contribution they make to the electricity supply It is also important to review the implementation and structuring options for the deal, to plan for an integrated chain. approach post-deal and put in place robust legal contracts especially where joint ventures may be involved. Utility scale solar projects are complex and challenging projects, and not just from a supply chain point of view. A Our Renewa ble Energy Tax team is made up of an number of management, financing and legal issues need international network of professionals with an in-depth to be thought through in detail. How will the project be knowledge of both local and international markets and the managed? What might the accounting, tax and legal tax regulations that may affect your business. Coupled implications be? How should ownership of the project be with deep knowledge of project financing and structuring, structured? What contractual arrangements need to be in mergers and acquisitions it ensures that we can provide place? What type of incentives might be available for the the right answer for every type of solar power project and project and what affect could that have on the post-tax for your business. return? What special considerations will apply to joint venture arrangements? What transfer pricing issues need to be addressed? Some companies choosing to expand into solar power are considering a merger or the acquisitions route as a way of “Early tax planning for a doing this rather than developing the project on their own. Early tax planning for a merger or acquisitions can merger or acquisitions reduce the tax costs of the transaction and the long-term sustainable tax rate following the transaction. can reduce the tax costs of the transaction and the long-term sustainable tax rate following the transaction.” Solar Power: Services and Citations PwC 7 November 2010 Legal With the rapid growth of the renewables sector has also come increasing international complexity. The correct handling of legal requirements and risks now need to be considered as closely as the technical, economic and tax based aspects to ensure the financial and technical success of these projects.
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