AravaArava PowerPower CompanyCompany Israel’s leading solar energy developer Est. 2006 Who is Arava Power? Arava Power Company is Israel’s leading solar developer and a pioneer in mid‐size and large‐size solar fields using photovoltaic technology. Founded in 2006, Arava Power seeks to supply Israel with hundreds of megawatts of solar energy through alliances with kibbutzim, Negev Bedouin and other land owners, especially in the south of the country. Arava Power has a planned pipeline of over 400 megawatts, comprising an investment of approximately $1.5 billion. 2012Nov ,APC Partners and Leadership APC was founded in 2006 by Yosef Abramowitz (President), Ed Hofland of Kibbutz Ketura (Chairman), and David Rosenblatt of New Jersey (Vice‐Chair). 2012Nov ,APC Management and Staff CEO: Chief Financial Jon Cohen Officer: Eran Litvak Deputy CEO: VP Operations Brig. General & Projects: (Res.) Shelly Yanir Allouche Gotman Corporate VP Property Strategy Development: Officer: Ira Israel Gilad Green 2012Nov ,APC Israel’s First Commercial Solar Field • On June 5, 2011, Arava Power Company launched Israel's first commercial solar field at Kibbutz Ketura – a 100 million NIS installation financed by Bank Hapoalim. 2012 Nov ,APC Ketura Sun • Ketura Sun covers an area of 80 dunams (8 hectares or 20 acres) on the southern edge of Kibbutz Ketura. • Total installed power: 4.95 MW • The field is made up of 18,200 Suntech photovoltaic solar panels that produce a total of 9 million kilowatt hours per year. • Construction of the field was done over a period of sixth months. 2012Nov ,APC Israel’s First Bedouin Solar Field • On February 7, 2012, Arava Power announced that they had received a license for the Tarabin Solar Field, the first solar field for the Bedouin community. • Financing for the $30 million Tarabin installation is to be provided by OPIC –th e Overseas Private Investment Corporation of the US Government. 2012Nov ,APC Israel’s First Large Solar Field • On March 12, 2012, the PUA granted a provisional license to APC for a large‐size photovoltaic solar installation at Kibbutz Ketura, located 50 km north of Eilat in Israel’s Arava Valley. On track to be the first of its size to go online in the country as it has already completed the complicated environmental and related planning processes. 2012Nov ,APC Future Projects • On May 22, 2012, APC unveiled two separate financial closes on 8 medium‐size solar fields totaling 58.5 MW for a total investment of 780 million NIS. 2012Nov ,APC Renewable start‐up nation? • Israel is a world high‐tech leader, thanks to government support. • Infrastructure projects do not enjoy same government support. • Renewable energy projects have suffered under government obstacles and challenges. • THERE IS A SOLUTION. 2012Nov ,APC Interim Quotas to Reach Goals • 5% renewables by end of 2014 • ISRAEL CAN DO IT. ISRAEL NEEDS TO DO IT. • 5% = 3.1 billion kWh = 1800 MW • Currently installed: Less than 300 MWs • We risk falling short in 2015 by 1.35 billion kWh, 800 MW. • Investor and developer confidence can be restored IF we implement new interim quotas before we reach grid parity. 2012Nov ,APC Interim Quotas to Reach Goals • 800 MW of interim quotas for PV today: – Fill the numeric gap: Give wind, biomass and solar thermal quotas to PV for immediate implementation – Are easily "absorbed" by GRID –with just some minimal IEC fine‐tuning. – Will actually cost the National Economy around 150 million shekels per annum LESS than originally planned. (Solar prices have dropped globally!) 2012Nov ,APC Interim Quotas to Reach Goals • Why? • Government decision goals being met, project reliability, security, afford confidence, ensure global investment. • The industry, by surviving, protects the future benefits renewables promise the national economy. • Interim quotas BRIDGE the gap between the present and the GRID PARITY era. There are still around 10 agorot that need shaving. • If the industry survives, it itself will drive down costs and "MEET" Grid Parity by 2015. Without interim quotas, the industry will not survive. 2012Nov ,APC Remove the Roadblocks • The central roadblocks, if dismantled, save substantial costs to developers, move the Industry much closer to Grid Parity, and DO NOT COST THE NATIONAL ECONOMY MONEY. 2012Nov ,APC Remove the Roadblocks • Modify and streamline regulation (Quicker and less painful = less expensive). • Cancel 20% Equity Investment Pledge (the industry has matured, needs financing flexibility.) • Extend regulation of Accelerated Depreciation (expires 2013) • Extend Finance Supporting Standards/Criteria • Revise Bank of Israel Regulation that defines credit to solar as IEC‐linked (Single creditor limitations, that are not applicable, and simply drive up the cost of financing) • Set worth of land at logical, consistent price. 2012Nov ,APC 2012Nov ,APC.