EFTA01366607.pdf

Amendment #4 Page 178 of 868 lefiltetfiegesta The vast majority d lisy solar projects are stn.ctured so that the utility dices not own the generating assets [41rather are Logy signs a org-term PPA to buy the electricity from Me pram Demand for utility PPM is largely driven by (i) the utility's need to meet renewable& mandates, (s) energy demand growth and (i i) are retirement of tasting generation assets Key drivers of solar energy growth We believe the following factors have driven. and will continue to drive. the global growth of solar energy Grid pasty We delft 'grid panty as the pont at which renewable energy sources can generate electncity at a cast excluding any government incentives or substhes, equal to or lower man prevailng fetal electnoty prices The cost of solar energy has undergone a signelcant deter* and is expected to contnue to dedine going fonvard On a gobal bays, the average total neeration cost of solar energy projects is expected to decline by more than 66.4 ri the ten-year period erding in 2020 In 2010, the average mediation cost per watt of capacity n the ditty market was 53.24 and fel 10 St 50 in 2014 13y 2020. this number is expected to fall to S1 09 Conversely, we expect retail electricity prices to continue to nse primarty Oa to ncreasrg casts of oorivenbcnal sources of energy. required investments in transmission and OSntution infrastrixture and increasing regulatory costs for comentonal energy sources. We believe acceleratirg mcksinalization, an expanding middle class and the need to develop energy grid nfrastnxture wit contrite to drwe demand in our inbal target markets fa the foreseeable hitre Rising retail electricity prices create a significant and growing market opportunty for lower-cost retail energy Solar energy may be able to offer CS' customers clean electricey at a price lower than their current rimy rate whetter solar power generation has achieved grid partly is dependent upon a number ci factors. including the scale of and lechnotgy Dazed by the generation posed, cost of caplet. applicable installation costs and mai-toreros expenses, local electricity rates. local meteorological characteristics. transmission fees and taxes Asa result. we evaluate grid parity on a popcl-try-project tests at the time such protect achieves As COO None of our meats in car meal wad* acreved grid party at the time of their respective COO. We de however. belarve grid panty has been leeched n certain areas within our target markets where our Sponsor is actively pursurg (Welcomed actrritres. For example. we believe that grid panty has been achieved in certain lrdan states such as Maharashtra. for ordain industrial customers based upon a comparison d energy pricing data provided by the Government of Inds and recent pricing contained n PPA offers made try Ott Sponsor Al this erne. we do rot lira., the specific tiring as to when grid party will be achieved for arty new protects we acquire in our initial target markets Movement id dismOufed generatal Although same locations are more surtatre than ethers solar energy systemecan generate elecIncrly nearly anywhere. By contrast hydro-electric power, vend or geothermal electricity generating systems are site.specire and location is critical This means power generated by SOW energy systems can sometimes be delivered at a relatively ow cost to areas that were previously Officcit to service, have rich transmission and Ostnbution charges. or have Nth load requirements Saar power can, in some cases, defer transrnssion and dm:notion investments and replace or sign:tartly reduce the use of expensive and envirormentaty detrimental on-site power generation techneoges, such as desel generators (Minato:I soar energy systems provide customers with an alternauve to trariaOra uteity energy suppers Distributed resources are smairer in Jilt sze and can be constructed at a ctstomer's site remavng tie reed for lengthy transmission arid dstnbut on lines By bypassirg the tract:nal utility suppliers ostribled energy systems (*link tne customers once of cower from external factors such as web* cam-malty pr ices costs of the incumbent energy stop er arid transrnssion and demotion charges This nukes 2 possible for distributed energy pschasers to buy energy at a predictable and staue price over a long penal of time 170 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058135 CONFIDENTIAL SONY GM_00204319 EFTA01366607