Jonathan J. Milley

Solar Development in
New York
Poised for the Break Out
Saratoga Springs - 11 August 2011
Safe Harbor Statement
This Presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are subject to
certain risks, uncertainties and assumptions and typically can be identified by the use of words such as “expect,”
“estimate,” “should,” “anticipate,” “forecast,” “plan,” “guidance,” “believe,” “will” and similar terms. Such
forward-looking statements include information relating to NRG’s solar development strategy and projects.
Although NRG believes that these expectations are reasonable, it can give no assurance that these expectations
will prove to have been correct, and actual results may vary materially. Factors that could cause actual results to
differ materially from those contemplated above include the risks identified in the private placement
memorandum, as well as general economic conditions, hazards customary in the power industry, weather
conditions, construction delays, successful partnering relationships, receipt of Federal loan guarantees and/or
cash grants, competition in power markets, the volatility of energy and fuel prices, failure of customers to
perform under contracts, changes in the power markets, changes in government regulation of markets and of
environmental emissions, the condition of capital markets generally, and the inability to implement value
enhancing improvements to plant operations and companywide processes.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The foregoing review of factors that could cause actual results to differ
materially from those contemplated in the forward-looking statements included in this Presentation should be
considered in connection with information regarding risks and uncertainties that may affect NRG's future results
included in the private placement memorandum and NRG's filings with the Securities and Exchange Commission
at www.sec.gov.
2
1. NRG Overview
Blythe - 21 MW, Blythe CA
3
NRG is the Leading U.S. Independent
Power Producer
NRG Stats
2010 Revenue
$8.8 Bn
Market Capitalization
Aggregate Value (1)
(1)
$5.5 Bn
$12.0 Bn
Cash on Hand (2)
$3.0 Bn
Retail Customers
1.9 MM
Generation Portfolio
>25 GW
NRG Generation Assets
Generation Portfolio (>25 GW)
Nuclear
(11%)
Oil
(16%)
Gas
(46%)
Wind
(4%)
Coal
(31%)
Solar
(1%)
Key Awards
Platts Global Energy - “Energy Company of the Year” and “Deal of the Year”
(2007, 2010)
Project Finance International – “Renewable Deal of the Year” (2010)
Corporate Secretary – “Corporate Governance Team of the Year” (2009)
Project Finance – “North American Portfolio Deal of the Year” (2009)
Nature Conservancy – “Corporate Conservation Leadership Award”
EnergyBiz – “Energy CEO of the Year” (2010)
Institutional Investor All-America “Best CEO. Utilities” (2011)
Significant Scale and Leadership in the Power Industry
Notes:
1. Market data as of April 7, 2010
2. As of December 31, 2010
4
NRG Has Developed a Green Energy
Platform
Company Leadership Aligned Behind
Green Transformation

NRG Solar “provides us with a truly unique
opportunity to develop over the next few
years a solar portfolio of true scale and
Transforming to a Post-hydrocarbon
Provider of Green Energy Solutions
NRG Priorities
 Low carbon baseload
 Renewable generation…with a concentration
in solar
 Green retail in competitive markets
 Electric vehicle ecosystems
 Smart grid and other sustainable energy services
significant benefit, even in the context of the
larger portfolio of NRG”
NRG Vision
450 MW

“We expect an acceleration and significant
wind
generation
Generation
Renewables
expansion in our equity capital invested in
high-growth, high-return solar projects”
– David Crane, CEO
NRG 2010 Earnings call, 21 February, 2011
Trading
- RECs
- Offsets
GreenCo
The nation‟s
leading full service green
energy provider
Energy
Marketing
& Sales
Dedicated to Pursuing a Greener Solution to Independent Power
5
Green Mountain Energy

NRG’s specialty retail electricity business that offers consumers
electricity products from renewable sources

Focused on cleaner energy in select U.S. markets including NYC.

Recently chosen to power 100% of the iconic Empire State building.

100% pollution-free energy produced from renewable sources.

Expanding C&I as well as retail sales in the Northeast
NRG’s eVGO Brand
NRG Electric Vehicle Services is creating the nation‟s first comprehensive,
and sustainable electric vehicle ecosystem of home charging stations and
high-powered, fast-charging stations.
 NRG is investing $10 million in Houston EV Charging stations
 Strategically placed at retailers and work places. First such network in
the U.S.
 Give electric vehicle drivers complete range confidence and
convenience. 50 to 150 eVgo public charging points
 Installations began January 2011
 Flat rate all-you-can-use plans:
–
–
–

Home charging station plan
NRG network charging station plan
Combined home and network plan
Concept is being extended to Dallas-Ft. Worth
Blue Water Wind

Leading offshore wind developer

Acquired by NRG in November 2009

Obtained first off-shore wind off-take agreement in the US in 2009

Developing the Mid-Atlantic Wind Park, 13 miles east of Cape Henlopen, Delaware
– Potential to 450 MW
–

Enough power for 130,000 households
Over 3,300 MW in additional development
– New Jersey
– Maryland
– New York
–
Massachusetts
NRG Drives Strong Financial
Performance
Adjusted EBITDA and Recurring FCF before Growth
(1)
($MM)
3,000
2,618
2,240
2,000
2,514
2,291
1,617
1,476
1,295
1,353
1,192
748
1,000
0
2006
2007
Adjusted EBITDA
2009
2010
Recurring FCF Before Growth Investments
Operational Highlights

Top quartile baseload plant availability and 98%
peaking unit startup reliability

Investing over $700MM (through 2015) in an
array of pollution control equipment at our plants
to dramatically reduce harmful emissions

2008
Repowering our sites across the country with
new, high-technology, low-emission generation,
creating hundreds of construction jobs in 2010
and beyond
Baseload Availability Factor
(% of Maximum Generation)
100%
86%
86%
91%
91%
90%
2006
2007
2008
2009
2010
75%
50%
25%
0%
Operational excellence is a core competency at NRG
Notes:
1. See Reg G‟s for detailed Adjusted EBITDA and Recurring Free Cash Flow before Growth calculations
2. „Baseload‟ includes all coal and nuclear assets
9
NRG Solar Overview
The Leading U.S. Solar Power Generation Company

NRG Solar, a wholly-owned subsidiary of NRG Energy, is the leading independent developer
and operator of solar power assets in North America
881 MW with long-term
– 21 MW in operation (Blythe)
power purchase
– All projects expected to begin construction by year-end 2011
agreements
– More than 1 GW in earlier stage development

Demonstrated record of pipeline growth through in-house development and project
acquisitions from industry leading partners
– Industry leading pipeline of high quality projects
– Diversified across geographies and technologies, with utility scale photovoltaic (PV) and
concentrated solar power (CSP)

Focused on attractive markets and proven technologies

Led by an experienced management team with a proven track record in power project
development, financing, construction, operation and asset management

Key parent-level commitment and support from NRG Energy
Uniquely Positioned in the Solar Generation Space
10
First Mover Advantage
Early Successes Have Positioned NRG Solar as the Leader in the U.S. Solar Industry
June 21, 2010
Acquired the 450+ MWAC
U.S. Solar Holdings
Development Portfolio from
ArcLight Capital Partners
Oct 27, 2010
Agreed to invest in a partnership
with BrightSource Energy to build
the 386 MWAC Ivanpah solar
thermal facility in California
Sep 23, 2010
Joint venture with Eurus
Energy Holdings on the 45
MWAC Avenal California
project (which has secured
financing and started
construction)
Nov 23, 2009
Acquired the 21 MWAC
Blythe California plant
from First Solar (which has
secured financing and
started operation)
Dec 14, 2010
Agreed to acquire the
290 MWAC Agua
Caliente solar project
from First Solar
Nov 30, 2010
Agreed to acquire the
250 MWAC California
Valley Solar Ranch
solar project from
SunPower
April 11, 2011
Secured $1.6 Bn DOE
Loan Guarantee for
Ivanpah
Dec 2010
Began construction on 20
MWAC Roadrunner solar
project in New Mexico
2009
2010
2011
NRG Has a Head Start as the Strategic Partner of Choice
11
NRG Solar’s Development Successes
Project
Location
MW
PPA?
Expected
COD
Status
Blythe
Blythe, CA
20 MW
20-year
12/2009
Operating
Avenal
Kings
County, CA
22.5 MW
(net)
20-year
Mid 2011
Under Construction
Roadrunner
Santa
Teresa, NM
20 MW
20-25 year
Late 2011
Under Construction
Ivanpah
Ivanpah,
CA
392 MW
(gross)
20-25 year
2012-2013
Under Construction
Projected to
close (next 6
months)
CA
316 MW
20-25 year
2011-2013
Pre-Construction
Advanced
pipeline
CA, NM, AZ
Up to 1000
MW
Yes
2011 to 2014
Permitting/
Approved/
Proposed
12
2. Promoting Solar in NY
Blythe - 21 MW, Blythe CA
13
Revenue - Current Situation in New York

No mandatory RPS –
– vs. California’s mandatory 33% by 2020
– RPS by itself could be served by less expensive forms of emissions free energy generation
so need to have a solar “carve-out”

No SREC program

No FIT

>60% New York load served by retailers –
– with a typically short term outlook and thus not a direct source of revenue for long-lived
whole sale solar generation projects

Need for PSC approval of utility contracts becomes a difficult process as
traditional metrics for establishing prudency of solar (and other renewable)
energy projects don’t sufficiently value air quality and other public benefits of
those sorts of projects
Where to source the revenue for utility scale solar?
Revenue Alternatives

RPS w/SREC carve out
– Long-term revenue certainty vs. balance of SREC price and ACP very difficult to
manage

RPS based on long-term contracts w/carve out for solar
– Currently no mechanism to mandate long-term whole sale contracts for load
served by retailers
– A State-wide “clearing house” could be established to make a market in solar
energy for long vs. short-term contracts

Solar Feed In Tariff
– Works in Canada and Europe, but would be first FIT in this nation

A portfolio approach encouraging clean-combined cycle baseload
resources together with solar peaking facilities would achieve the
maximum economic and emissions benefits
– Move the focus to net emissions reduction from strictly “renewable”
Long-term contracts providing for revenue certainty are
the best alternative to promote utility scale solar
Long-Term Contract Principles

Term – long enough to lower the marginal cost of capital recovery as low as
possible, ideally 20+ years

Price – fixed to provide transparency and revenue certainty

Type – financial contracts preferred over physical delivery to maximize flexibility –
– Easier to bundle into an all-requirements type contract
– Allows project to “cover” from the physical market if necessary
– Smaller, behind-the-meter, projects will be for physical delivery

Performance – minimum standards for schedule, output, and degradation
– Equipment backed by manufacturer warranty
Revenue Certainty Based on Project Performance
Questions?