Member Info for StephenFryUp

Q5. How will Rame build on the first on grid project? A5. As we announced today, we’ve made significant progress on our first multi-megawatt on-grid solar project. Initially a 2.5MW with an additional potential 17.5MW, the project will be fast tracked for power out in Q4 2015 subject to financing for which we have an indicative term sheet to provide non-recourse debt. Once again, because our focus is to identify high yielding energy investment opportunities, this first project is located just south of the lower Atacama desert in an excellent solar climate, where power prices are high and grid connection is adjacent to the site. These sorts of opportunities will continue to be the focus of Rame’s development activities on grid where we focus on exceptional sustainable returns and not simply large scale. The higher cash yields we can achieve support a range of financing options for Rame that removes the need to rely on raising equity from traditional sources and we expect to be able to grow our portfolio quickly as a result. We’re currently in negotiations with an existing client for a 15 year PPA and the project naturally plays an important part in establishing a mixed portfolio of 300MW of generating assets in the next three years.

Q3. The solar project for the school is much smaller than we have come to expect from Rame – what is its wider significance? A3. Firstly this is a rooftop installation and so, by definition, individual project sizes are generally smaller but the scale of the potential market is still enormous. In the UK, rooftop installations account for approximately 5GW installed capacity and the number of installations is growing at the rate of around 10,000 per month and rooftop is expected to grow even faster in the next year or so. 35% of that 5GW is rooftop installations below 10kW so our first project at 25kW is not that small and indeed at 300kW the Swiss School would be in the top 3% in terms of size for a rooftop system here in the UK. Given Chile’s energy supply issues, the solar climate and the availability of rooftop infrastructure, especially commercial roof space, we see the significance of our quick response to this opportunity as being very substantial given the potential huge scale of this new market. In the UK, policy is leaning towards rooftop solar projects as being the main element of future solar capacity and whilst Chile has seen some very large ground mounted solar projects already, there are grid issues in the north of the country that make the rooftop market strategically very important and a great opportunity for us. Q4. How has the Company been able to respond so quickly to this emerging rooftop market? A4. There are lots of factors. We have been in Chile for a long time and have strong relationships with a broad range of possible energy customers. Our work in transposing Beco’s engineering and construction capability into Chile has been quick and effective. We decided from the start to assign members of the Beco technical group to Chile to work with the team there and this had an immediate positive impact on our ability to engage with and develop the solar market. Finally, our ability to finance the first rooftop project from our existing resources obviously allowed us to react quickly to the opportunity and we see a really strong ability to reinvest income from our solar installation business to build out the portfolio of rooftop solar IPP projects. Q5. How will Rame build on the first on grid project? A5. As we announced today, we’ve made significant progress on our first multi-megawatt on-grid solar project. Initially a 2.5MW with an additional potential 17.5MW, the project will be fast tracked for power out in Q4 2015 subject to financing for which we have an indicative term sheet to provide non-recourse debt. Once again, because our focus is to identify high yielding energy investment opportunities, this first project is located just south of the lower Atacama desert in an excellent solar climate, where power prices are high and grid connection is adjacent to the site. These sorts of opportunities will continue to be the focus of Rame’s develop

Q and A: CEO Tim Adams on Rame Energy’s Strong Solar Progress in Chile Tim Adams Chief Executive Officer of Rame Energy PLC (LON: RAME) talks with DirectorsTalk about the strong solar progress in Chile Q1. To date, Rame’s track record has been in the execution of wind projects. How does solar fit into the Company strategy. A1. We have tracked the developments in solar technology and more importantly the large improvements in solar power economics closely for a number of years. We recognised that there was a convergence in energy costs between wind and solar and that given the world class solar climate in Chile there would be substantial opportunity to utilise solar generation as well as wind to meet our customers power needs. We took steps to augment our existing expertise in wind power with the acquisition of Beco and are now pleased to be able to demonstrate the clear benefits of applying that through our presence in Chile where we have now shown we can develop solar projects both on and off grid as an IPP as well as projecting our strong installation capability into a very large market. Q2. Can you give a brief overview of the Chilean Solar Market? A2. Chile is widely accepted to be South America’s leading solar market. The climate in the north of the country obviously plays a big role in this with solar intensities that exceed those in the Middle East.; projected energy yields for our first on-grid solar project are double what we would expect in the UK. Regulatory reform is another important driver. In an attempt to address the country’s strained energy dynamic – where demand exceeds supply – the Chilean parliament has passed legislation requiring 20% of all electricity generated to be from renewable sources by 2025. There’s also new legislation specific to solar plants; since October, residential rooftop generators have been incentivised to generate their own power and sell the excess back to the grid. We see enormous potential in this area for Beco as a highly experienced designer / installer and Rame as an IPP. These favourable conditions, combined with the reduced costs of modern PV components, make solar power developments commercially very attractive.

Rame Energy making significant progress with Chile solar business By Jamie Ashcroft December 19 2014, 7:28am Chief executive Tim Adams says recent progress in Chile is “highly significant” Chief executive Tim Adams says recent progress in Chile is “highly significant” Rame Energy (LON:RAME) told investors it is working to fast track the development of its first ‘multi megawatt’ on-grid solar project in Chile. The project aims to have 2.5 megawatts (mW) by the end of next 2015, and it is anticipated to generate twice as much power as the average UK solar plant. Negotiations are underway with one of Rame’s existing customers for a 15-year power purchasing agreement, and at the same time the group is working to secure project finance. An indicative term sheet has already in place for non-recourse debt. The project’s initial capex is estimated at US$6.4mln. Full connection studies and permitting will begin in the first quarter of 2015, with the fourth quarter earmarked for starting construction. Separately, Rame continues to progress off-grid solar projects, and it had progress to report here too. Rame has signed a PPA with Santiago School 'Colegio Suizo de Santiago' (CSS) and it will now install and run a 25 kilowatt (kW) rooftop solar operation. This will be step one of the project, which could reach capacity of 300kW. Installation and commissioning is due to complete in February, and the electricity will be sold to CSS under the 15-year PPA. The fully-funded project is projected to have a 16% internal rate of return. Chief executive Tim Adams says recent progress in Chile is “highly significant” as it shows Rame’s ability to effectively apply expertise as an integrated independent power provided (IPP). "In the first instance, we are pleased to be reporting progress to date on our first multi-megawatt on-grid solar project which builds on our off-grid solar work,” Adams said. “Northern Chile is the ideal location for solar projects and, along with our first six wind projects in Chile totalling 133 mW, which are now at various stages of development, this project will play an important part in establishing a mixed portfolio of 300MW within the next three years." He added: "In addition, the signing of the 15 year PPA with CCS cements our presence in the newly emerging domestic Chilean solar market and we are proud to be one of the first companies to obtain a 'behind the meter' grid connection.”

That's Zaks write up that KaChing just posted.

has RAME on his radar..

have a google over the w/e.. At least todays news seems to have generate a little bit of interest with buys floating in by the looks of it..

Interesting, cheers for the insight.. Lets see what transpires from this bank(s), as like you say would certainly give us an indication on the project values.. New company website being launched soon, so I wonder if that's to coincide with other news.. As always, lets see.

"The strong progress of our solar business is highly significant; it is a positive development since our IPO and evidences the real benefit of our acquisition of Beco and our ability to effectively apply that expertise into Chile as an integrated IPP." What appears evident to me from the last two rns's is that we are expecting lots of positive newsflow throughout 2015 from both the solar, and more importantly for me the wind projects.

RNS out on RAME where you guys hold a big stake.. Anyone hold both ?

KaChing, yes for me that's really encouraging how quickly we have hit the ground running in Chile with the Beco side, as R states, it shows we already are very well positioned out there.. Just printing the rns, so will have a proper read up..

Graham, thanks mate, nice one

No rush, and thanks.

And no problem, was actually looking for the links you mentioned yesterday and stumbled across that one.. Would you still be able to post some up when you have a moment ?

A nice balanced post... I too have never disagreed with BA as regards to needing funds at some stage, and as I pointed out to him / her, I think he seems a very clever and clued up person, who obviously does well in the markets, what I didn't like was the little personal attacks on certain posters here, but hopefully that was all cleared up yesterday and we can move on. As I have mentioned since I invested, I am here with my sipp holdings for the longer term, certainly to see how 2015 plays out, so I would naturally expect peaks and troughs in the sp. Again as I have mentioned funding as needed by 99.9% of aim companies, and if its for the benefit of the company, then longer term holders although maybe having short term pain, will reap the benefits going forward. The aim markets are very volatile as we all know (Look at O&G recently), so picking the right entry point is the hardest part.. For me I am confident that newsflow here on the two projects, and indeed other news alluded to in the rns will take us higher than where we currently sit, so "if" we do need a placing, it will be at a premium to todays prices.. The only people that really know are the company, so us as pi's have to make our best guesses. BA may well get in cheaper than me, and indeed all RAME investors, and if he/she does, then fair play, and hats off to them for being patient, after all that's what the aim game is about..

http://www.pv-magazine.com/services/press-releases/details/beitrag/three-key-drivers-of-renewable-energy-growth-in-chile_100015842/#axzz3M9nRBP4Q

Rame has an established reputation as an international energy generating business, applying a number of energy sources such as wind, diesel or hydro to develop and operate power projects in emerging but strong market economies, seeking in particular to link power sales to major industrial power consumers such as mining companies. The Group has been providing project management, engineering and construction services to both the conventional and renewable energy markets globally for more than a decade and has a particular presence and strength in Latin America. Since establishing an office in Chile’s capital Santiago in 2006, Rame has become one of the leading wind power project developers in the country, developing and implementing power solutions for many of Chile’s major mining and industrial corporations. Capitalising on its proven track record in delivering power in South America, Rame’s recent focus is to expand its portfolio of interests in power generation projects in Latin America, and particularly in Chile, and become a niche independent power producer, allowing it to retain more of the value upside. With a pipeline in place of 28 Chilean wind assets with a potential installed capacity of over 1.4 GW, and terms agreed with Santander to co-finance the first two wind projects totaling 24 MW, the Company is poised to take full advantage of the region’s strained energy dynamic. This offers excellent growth and favourable yield opportunities through the generation and sale of power to its established blue chip client base under power purchasing agreements of between ten to fifteen years providing strong visibility to its earnings streams. The first 15 MW wind power project is due to be up and running by end of 2014/ early 2015 and Rame is targeting an operational portfolio of 300 MW in the next three years. Rame also has a presence in Asia, where Rame established a Singapore office six years ago and has been instrumental in providing expert consultancy services for the development of wind and other energy projects in Pakistan, Myanmar, Thailand, Vietnam and Indonesia.

Cheers, and also on their website, just read it, its actually 1.4gw, but agree get the first 15mw up and running.. :-)

Agree.. As I have said all along, for me RAME will have a very good 2015, which is what I am invested for so lets see.. Windaddict posted yesterday that the pipeline is actually 1gw here which is huge (But we know from wsg pipelines must be converted ha ha), but very encouraging nevertheless.. I haven't personally seen reference to the pipeline, but will have a look in to it shortly.

Hopefully we can get back to talking rame. Looking forward to windaddict posting up some links today