Opportunities in Greater Phoenix

Presented by Greater Phoenix Economic Council

Communities of Distinction.Together Greater Phoenix.America’s Greatest Upside.

Maricopa County Phoenix Mesa Glendale Scottsdale Chandler

Gilbert Tempe Peoria Surprise Avondale Goodyear Buckeye

Fountain Hills Queen Creek Maricopa Tolleson Wickenburg

The Greater Phoenix Economic Council (GPEC) The Region’s Economic Development Authority

•A true regional model where public and private memberscollaborate to promote Greater Phoenix as a great place to grow business.

•Supported by Maricopa County, 18 cities and towns, and more than 140 private-sector businesses.

•The catalyst that strengthens the region’s economic base, ensuring it is both diversifiedand competitive.

• Average daily solar insolation• RPS comparison

A Prime Location for Solar Companies

Greater PhoenixAn emerging market for solar

:

Greater Phoenix is an emerging market for solar

technology firms, anchored by world-class companies like First Solar, Kyocera, Stirling Energy Systems, SolFocus

and SolarCity.

• Arizona’s technical potential for concentrating solar power is nearly 2.5 TW.

Prime Location for Solar Power GenerationBusiness Case for Arizona and Greater Phoenix

Source: National Renewable Energy Laboratory

• Well-positioned to generate solar power for export to high-cost markets like California, meeting peak demand and Renewables Portfolio Standard (RPS) requirements.

Average Daily Solar Insolation

.

Arizona’s average of 321 days of sun

each year provides enough solar energy to power the U.S.

RPS Comparison: Mountain West Region

Solar water heating (SWH) eligible TX: 5,880 MW by 2015

*NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)

☼ AZ: 15% by 2025

CA: 20% by 2010

☼ NV: 20% by 2015

State RPS

☼ Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE

HI: 20% by 2020

☼ CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)

MT: 15% by 2015

State Goal

*WA: 15% by 2020

OR: 25% by 2025 (large utilities) 5% - 10% by 2025 for smaller utilities

Prime Location for Solar Power GenerationBusiness Case for Arizona and Greater Phoenix

• Utility-scale generation• Distributive demand• Transmission policy• Innovation and talent

Market Opportunities

Market Opportunities for Solar CompaniesGENERATION in Arizona and Greater Phoenix

One of the World’s Largest Solar Plants

Abengoa Solar partnering with Arizona Public Service (APS) to build “Solana” — a 280 MW CSP parabolic trough plant on 1,900

acres in Gila Bend.

$4B in clean electricity to be sold, and $1B in economic benefits

reaped by the state.

APS to Get Power from Future Solar Plant

Lockheed Martin and Starwood Energy Group are constructing a 290 MW solar power plant 75 miles west

of Phoenix.

Spanish Firm to Build a 200 MW CSP

Plant Near Kingman.

Albiasa Solar has chosen Arizona for its first U.S.

presence.

Market Opportunities for Solar CompaniesGENERATION in Arizona and Greater Phoenix

Arizona Utilities Lead Solar Venture

APS, Salt River Project and Tucson Electric Power announced 250 MW

utility consortium solar project.

By 2025, Arizona utilities will have produced nearly 67-million MWh of

renewable energy, or enough electricity to power 500,000 homes. 

Market Opportunities for Solar CompaniesDEMAND in Arizona and Greater Phoenix

Notable Commercial Projects

ASU installing seven megawatts of photovoltaic capacity on roof tops of buildings

and parking garages

Frito Lay has 201 KW installation on Phoenix facility – company's largest U.S.

distribution center.

Gatorade installing 500 KW system on its distribution facility – largest rooftop solar

project in state.

i/o Data Centers planned 4.5 MW of solar power to supplement its

energy needs.

Market Opportunities for Solar CompaniesTRANSMISSION in Arizona and Greater Phoenix

Arizona Corporation Commission

Actively developing plan to build robust transmission system designed to import and export renewable energy in Arizona. 

Adopted one of most ambitious, generous net metering policies in U.S.

Only state establishing net metering requirement with no aggregate limit on

number of MW.

Market Opportunities for Solar CompaniesINNOVATION and TALENT in Arizona and Greater Phoenix

One of only four U.S. universities to receive five Dept. of Energy awards for

research in next-generation PV technology.

Suntech panels are in the 1.8 MW PV project at ASU making it one of the

largest university installations in nation.

Home to world’s first School ofSustainability (Global Institute of

Sustainability).

ASU received the highest possible Green

Rating (99%) by Princeton Reviews for its environmentally-

friendly policies, practices and curricula.

University Innovation

Photovoltaic Testing Lab•TUV Rheinland PTL and ASU have the only U.S. lab accredited for PV design qualification and type approval.

Advanced Photovoltaics Center•Focuses on disruptive and revolutionary technologies for power conversion based on non-traditional ultra-high efficiency, low-cost solar cells.

Solar Power Laboratory•Led by national solar energy research experts from around the world.

Market Opportunities for Solar CompaniesINNOVATION and TALENT in Arizona and Greater Phoenix

• Arizona is the 4th largest market for semiconductor employmento Nearly 27,000 semiconductor jobs

•Deep-bench for management talento Technology spin-offs like ON Semiconductor,

Freescale Semiconductor and General Dynamics were berthed from Motorola talent.

o Intel is another critical source for key leadership in small tech enterprises.

Market Opportunities for Solar CompaniesINNOVATION and TALENT in Arizona and Greater Phoenix

Alternative and Sustainable TechnologiesUnique Value Proposition: State Incentives

Incentives in Arizona

Type Criteria Project Example Calculation

Manufacturing Creates at least 1.5 jobs per $500,000 in capital investment

• $150M in capital investment

• 1,273 jobs

$150M x 10% = $15M

Headquarter Creates at least 1 job per $200,000 in capital investment

• $10M in capital investment

• 50 jobs

$10M x 10% = $1M

Market Opportunities for Solar CompaniesUNIQUE VALUE PROPOSITION in Arizona and Greater Phoenix

New Solar Legislation

The Renewable Energy Tax Incentive Program

reduces property tax burden on solar and other

renewables manufacturers.BenefitsRefundable corporate income tax credit of up to 10% of project capital investment (for qualified projects)

Real and Personal Property Tax ReductionFor project investment greater than $25M, an effective property class reduction of 77%.

QuestionsThank You for Your Time!

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