Large Projects Drive Large FAB Orders

Falcon Green Energy Confidential

Falcon Green Energy

Large Projects Drive Large FAB Orders

Falcon Green Energy Confidential

Falcon Green EnergyPV Market - Electricity Demand

“U.S. electricity demand is growing at twice the pace new supplies are being added, an imbalance that could lead to supply problems in a couple of years, an electric-industry group said.

In its latest 10-year forecast, the North American Electric Reliability Corp., or NERC, found supplies thinning fastest in California, the Rocky Mountain region, New England, Texas, the Midwest, and the Southwest… “

“…the nation’s 10 big grid running organizations said in a report released yesterday that 44% of the proposed new power generation in their markets is expected to come from renewable-energy projects…”

WSJ Oct. 17, 2007

Falcon Green Energy Confidential

Falcon Green Energy

Central Power CSP Generationor versus PV / Photovoltaic

Solar PV uses no water, CSP uses high amounts

Solar PV has a 40 year system life, CSP is only 15

Solar PV uses DC to AC invertors, not a power box, thus power factor correction is possible and losses are minimized over a generator set.

Ongoing O&M budget for CSP is approx $3/W over the project life vs. less than $1/W for PV.

Falcon Green Energy Confidential

Falcon Green Energy

State Goal

☼ PA: 18%¹ by 2020

☼ NJ: 22.5% by 2021

CT: 23% by 2020

MA: 4% by 2009 + 1% annual increase

WI: requirement varies by utility; 10% by 2015 goal

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

TX: 5,880 MW by 2015

☼ AZ: 15% by 2025

CA: 20% by 2010

☼ *NV: 20% by 2015

ME: 30% by 200010% by 2017 - new RE

State RPS

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

¹PA: 8% Tier I / 10% Tier II (includes non-renewables)

HI: 20% by 2020

RI: 16% by 2020

☼ CO: 20% by 2020 (IOUs)

*10% by 2020 (co-ops & large munis)

☼ DC: 11% by 2022

DSIRE: www.dsireusa.org September 2007

☼ NY: 24% by 2013

MT: 15% by 2015

IL: 25% by 2025

VT: RE meets load growth by 2012

Solar water heating eligible

*WA: 15% by 2020

☼ MD: 9.5% in 2022

☼ NH: 23.8% in 2025

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

*VA: 12% by 2022

MO: 11% by 2020

☼ *DE: 20% by 2019

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

☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)

ND: 10% by 2015

PV Market - RPS Requirements

Falcon Green Energy Confidential

Falcon Green EnergyPV Market - Solar RPS

CO - 4% of RPS; half of solar must be net-metered { Retail } DE - 2.005% photovoltaics by 2019 DC - 0.386% solar by 2022 FL - 2.0% by 2020 for solar thermal and solar PV MD - 2% solar electric in 2022 NV - 5% of energy portfolio must be solar 2015NH - 0.3% solar electric by 2025NJ - 2.12% solar by 2021 (1,500 MW )NM - 20% of RPS from solar (4% of total sales)NC - 0.2% solar electricity and thermal energy by 2018 TX - 500 MW NON-Wind RPS from renewables other than windPA - Solar PV set-aside of 0.5% for June 1, 2020

Ontario – New Feed In Tariffs ~ 40 cents KW-H

Germany – 42% Feed in TariffsSpain – 30%Portugal – 35%Italy – 45%

Falcon Green Energy Confidential

Falcon Green EnergyPV Market - Renewable RFPs

Progress Energy Carolinas RFP seeking up to 1,000,000 MWh from RPS eligible Renewable Energy Resources.

Georgia Power RFP seeking up to 4,000 MWh of Wind and Solar Resources to meet the needs of its Green Energy Program.

Long Island Power Authority (LIPA) RFP seeking up to 300 GWh/year of Eligible Renewable Energy Resources and/or Renewable Energy Certificates (RECs).

Western Area Power Administration's (WAPA) RFP seeking firm purchase power contracts for up to 200 MW of Renewable (and/or non-renewable) Energy Resources for the Upper Great Plains Region.

PNM & Duke Energy Indiana RFP seeking up to 200 MW of Renewable & Sustainable Energy Resources.

Florida Municipal Power Agency (FMPA) RFP (#2007-106) seeking up to 100 MW of Eligible Photovoltaic Resources for FMPA's All-Requirements Power Supply Project.

Southern California Public Power Authority (SCPPA) RFP (PDF 44 KB) seeking up to 315 MW of Renewable Energy Resources that comply with the California Energy Commission Renewable Energy Portfolio Standard Guidelines.

Dominion Resources Services RFP seeking Eligible Renewable Energy Resources &/or Renewable Energy Credits (RECs) in Virginia, North Carolina, and PJM Interconnection area to meet State goals and mandates within its service areas.

Arizona Public Service Co. and the Joint Development Group RFP for up 250 MW of Concentrating Solar Power Resources in Arizona or Nevada.

Spark Energy Texas RFP seeking 100MW of Renewable Energy + Constellation New Energy hybrid QSE

Falcon Green Energy Confidential

Falcon Green EnergyStrategy

To be the leader in large scale solar PV power parks from 5MW to 200MW.

Target projects based on market conditions to provide the greatest ROI, still recognizing the pending huge potential in Texas.

Engineer, Design and Construct utility scale solar parks through strategic partnerships like:

Provide ongoing operations and management. Seeking long-term PPAs with utilities, REPs, generators, and large

industrials with MPAs. Identify and act to control Land Resources and opportunities

PV Generation Projects can be brought on-line faster than conventional power projects. Estimated at 16 months for 50 MW.

Speed will be a greater factor as demand outpaces electricity supply.

Falcon Green Energy Confidential

Falcon Green EnergyDevelopment Properties { LAND }

Falcon has completed a Texas & lower WEC Site survey of over 100 locations with 15 MW or greater of Transmission Capacity & existing onsite sub-station for interconnect.

Falcon is in final negotiation to purchase two {2} 750 to 1280 acre sites in Alpine, Texas, each with sub-station and transmission capacity available for up to 350 MW for “TEXAS SOLAR ONE”.

Falcon has identified numerous other sites on four other West bound circuits with intrinsic development value.

Falcon has two sites in a feasibility study in New Mexico’s WEC for PNM & Exel.

Principals of Falcon own part of 18,000 + acres in Texas WEC

with large solar, coal, geothermal and uranium resources onsite.

Falcon Green Energy Confidential

Falcon Green EnergyTypical Utility Scale Projects

Fort Davis Mountains, TX Thin Film in Eupron, Germany

Falcon Green Energy Confidential

Falcon Green EnergyCurrent Large Utility Scale Projects

Internal Projects Alpine Solar Park - 100MW project

Currently in talks with large power users within ERCOT. Several Suppliers in deregulated markets want MPA quotes for 40 + MW in Texas

Austin - 50MW GLO project at Saragosa 400 MW of capacity at PECOS - Guadalupe Site for MESA Power PEC, CPS & BB + AE = 100 MW buying pool distributed at PEC Western Edge !! Mexico – 45MW Project Proposal being submitted to large Industrial user “Los Pueblos de Luz” - 3 GW GigaWatt plan named by TekSUN Founder Dan Vogler,

“Los Pueblos de Luz” is a 15 year rural electrification plan, in 5,000 off-grid projects for remote villages throughout Mexico. A Future model for Central & South America and Africa.Initial funding will come from the WB World Bank and International Development Fund Banks.

External Projects Falcon may co-develop with other sponsors 100MW {pending} order for the Northeast region Several proposals for 1.5 MW to 50 MW

NM, CA, CO, NV, NJ, PA, NY & Ontario targeted for solar park projects. CO – 25MW+ RFP ; NM Feed-In final Continue to respond to RFPs as they come out.

Falcon Green Energy Confidential

Falcon Green EnergyAlpine Power Project – Site A : 850 Acres

Falcon Green Energy Confidential

Falcon Green Energy

Alpine Power Project – Site B : 1280 Acres

Falcon Green Energy Confidential

Falcon Green Energy

Strategic Relationships Richard Green - Architect – West Texas Sites

Texas Solar Company – Solar power park build-out contractor ( Lead of Five )

VERDE ENERGY – Solar build-out contractor labor selection & management

Good Company Associates – Utility business development, policy & consulting

GT Environmental – Renewable energy, LEED and carbon credit trading

Janet Hughes - Global Designs – 3rd Party Solar Park Project management

Concurrent Designs - Structural Engineering

Naismith Engineering - Civil & Permitting Engineers { Alpine City Engineers }

Robert Webb – Chairman of TREIA & former Baker Botts attorney currently working in the renewable energy space assisting in the retail electricity market

Andrews Kurth, LLP – Attorneys in Austin, NYC & Washington, DC

Baker Botts, LLP – Renewable energy attorneys, Austin & Houston, TX

Parsons & Associates – Commercial & Ranch Land Real Estate Broker

Texas GLO – General Land Office – Land Resource Leases

BLM – Federal Bureau of Land Management – Land Resource Claims

Falcon Green Energy Confidential

Falcon Green Energy

Serpa, Portugal Solar Park @ 11 MW

Power-Lite sold Serpa for Power-Lite sold Serpa for $7.85/W to GE in early 2007.$7.85/W to GE in early 2007.

BOS per Watt CAPEX @ BOS per Watt CAPEX @ Falcon Green Energy is Falcon Green Energy is approx $4.57approx $4.57

Potential net value over Potential net value over $3.30/W in a project$3.30/W in a project

100MW project has ITC’s 100MW project has ITC’s of approx $200 Million. ** US of approx $200 Million. ** US 20082008

PTC worth 1.9 cents kWh PTC worth 1.9 cents kWh for 10 years once project is for 10 years once project is placed in service.placed in service.

Falcon Green Energy Confidential

Falcon Green EnergyNorth American Solar Insolation Values

Falcon Green Energy Confidential

Falcon Green Energy

Beneixama, Spain 20 MW Solar Park

Developed by City Solar AG, Developed by City Solar AG, the CAPEX was @ over $9.00/W. the CAPEX was @ over $9.00/W. As prices go up in Europe, the As prices go up in Europe, the USA can find the price optimum USA can find the price optimum today for much less.today for much less.

Falcon Environmental Power Falcon Environmental Power can develop at less than $5.00/W can develop at less than $5.00/W in a large project, and with the in a large project, and with the ITC, bring in a LCOE levelized ITC, bring in a LCOE levelized cost of energy of less than 8 cost of energy of less than 8 cents / K-WH.cents / K-WH.

Falcon Green Energy Confidential

Falcon Green Energy

The Revenue Model:Panels Make Power that Makes

$Money

Solar Insolation for Puebla Tepeaca, Mexico = 5.33 Average

This equates to a 25% Annualized Capacity Rating for 45 MW.

Income – Debt = NET;……… Thus total power is produced for sale is:

24 hours x 25% x 365 x 45 MW = 98,550 MW-H per year.

CAPEX is $4.50 per watt total PV+BOS installed for 45 MW,….. or $202M

With 30% ITC and a $120 / MW-H ; PPA for a 20 year term,…

then equals an $80 / MW-H debt service +O+M = $40 / MW-H gross !

Thus, for a 45 MW Solar Power Park,… $120/MW-H - $80 debt = $40/MW-H

98,500 MW-H x $40/MW-H = $4M / yr GROSS MARGIN to Developer,

not counting the monetization of RECS, Carbon Credits, ITCs & PTCs*, project depreciation, power buy-downs, power buy-ins, etc.