Gain insight about wind energy and the industry

1. Wind Energy Overview The answer my friend is blowin’ in the wind

4. How is energy generated from wind? Wind Turbines have large airfoil shaped blades. When air passes over the blade there is low pressure above the blade and higher pressure below, pushing it. A force ( lift ) perpendicular to the motion is created. The force of the lift is actually much stronger than the wind's force against the front side of the blade, which is called drag . The combination of lift and drag causes the rotor to spin like a propeller, and the turning shaft spins a generator to make electricity Source: HowStuffWorks (www.howstuffworks.com)

5. Wind turbines: Components

6. Wind turbines: Components Blades Most turbines have three blades. The turning of the blades generate electricity Hub Centre of the rotor to which the rotor blades are attached Rotor Blades and hub referred together Low-speed shaft Turned by the rotor at about 30 to 60 rotations per minute (rpm) Gears Connects low-speed shaft to high-speed shaft and increases rotational speeds from about 30 to 60 rpm to about 1000 to 1800 rpm (the rotational speed required by most generators to produce electricity) Generator Produces electricity High-speed shaft Drives generator Controller Starts up and shuts off the machine Anemometer Measures wind speed and transmits wind speed data to controller Wind vane Measures wind direction and communicates with yaw drive to orient the turbine Yaw drive Keeps rotor facing into the wind as wind direction changes Yaw motor Powers yaw drive Nacelle Contains gear box, low- and high-speed shafts, generator, controller, and brake Tower Made from tubular steel, concrete, or steel lattice . Taller towers generate more power Pitch Blades are turned, or pitched, to control the rotor speed Brake Stops rotor in emergencies

8. Source: Total Alternative Power (www.totalalternativepower.com) Wind turbines: Dimensions/ definitions/ foundations Specific rating = Turbine’s rotor swept area / rating of the turbine Capacity factor = Amt of actual power produced / Amt of power if turbine operated at full output 100% of the time 25% to 80% is possible for an individual utility turbine Plate foundations/ shallow foundations A commonly used foundation is a large reinforced concrete plate under the earth forms the footing of the generator. Pile foundations The connection between foundation plates with the soft soil.

9. Power from a turbine is dependent on: - Swept area of blades - Wind speed Power  Wind speed 3 Power  Swept area  Blade diameter 2 The power curve shows power production as a function of wind speed. X – wind speed (mph) Y – power (kW) Cut out wind speed (usually above 55mph) stops power production as high speeds may cause damage to the turbine Cut in wind speed (usually 8-16 mph) starts power production Rated power (approximately 29 mph) Rated power Wind speed Relation of Wind Speed to Power Production

11. Source: BTM Consult ApS Manufacturers: 2006 v.s. 2007 market share

12. Manufacturers: Product comparison Source: Respective company websites S88/2.1MW S.64/1.25MW S.66/1.25MW S.64/950kW Suzlon 3.6 MW Wind Turbine 2.5 MW Wind Turbine 1.5 MW Wind Turbine GE Wind V90-3.0MW V82-1.65MW V80-2.0MW V90-1.8MW V90-2.0MW V52-850kW Vestas Made AE-61 1.32kW G80-2.0MW G87-2.0MW G90-2.0MW Made AE-52-800kW Made AE-56-800kW Made AE-59-800kW G52-850kW G58-850kW Gamesa Enercon < 1MW E-33 (330kW) E-48 (800kW) E-53 (800kW) E-44 (900kW) 1-2MW E-70 (2.3MW) E-82 (2MW) 2-3MW > 3MW

13. A 1.5MW wind turbine (  344ft) is taller than the Statue of Liberty (306ft). Manufacturers: Product comparison Source: Respective company websites N90 (2.3MW) N80 (2.5MW) N90 (2.5MW) N100 (2.5MW) N90 Offshore (2.5MW) S77 (1.5MW) S70 (1.5MW) Nordex SWT-3.6-107 SWT-2.3-82VS SWT-2.3-93 Siemens Goldwind Vensys Energy < 1MW S43/600kW S48/750kW 1-2MW Goldwind 62/1.2MW Goldwind 70/1.5MW Vensys 62 (1.2MW) Vensys 64 (1.2MW) 2-3MW > 3MW

14. Manufacturers: Key innovations Innovation Objective Company examples Weight Lowers production and system costs Vestas: uses lightweight carbon fibres in the blades and a tower with magnets Siemens’s IntegralBlade®: blades are made of fibre glass, reinforced epoxy resin and manufactured in one piece using a closed process Gamesa: blades made with epoxy resin and carbon fibre components Variable speed regulation Allows the rotor's rotational speed to vary to minimise strain and reduce noise levels Vestas: uses OptiSpeed® technology GE’s: Variable Speed System, and active damping (less tower osscilations) Gamesa: also supports variable rotation speed Pitch regulation Adjusts the angle of the turbine blades to ensure the optimal position in relation to wind Vestas: uses OptiTip® technology Siemens: CombiStall®, used in constant speed turbines and CombiPitch, used in variable speed turbines GE Wind: Control System Gamesa: variable pitch technology

15. Manufacturers: Key innovations Innovation Objective Company examples Failsafe protection Minimizes loads and controls output in all conditions and above its rated wind speed Vestas: Hydraulic ActiveStall® GE Wind: LVRTC (Low Voltage Ride thru), feeds reactive power during lightning strikes, equipment failures, and downed power lines Gamesa: Active Crowbar Net converter Allows generators to operate at variable speed, frequency and voltage, to supply power at constant frequency and voltage to the grid Siemens: NetConverter® power conversion system GE Wind: WindVAR (Wind Volt-Amp-Reactive) system, supplies reactive power Gamesa DFIM technology (Doubly Fed Induction Machine) and Gamesa SGIPE system: allows active and reactive power Lightning protection Protecting the blades, nacelle, controller and tower Siemens: blades have a lightning termination pad system and the other components are grounded Noise control system Compliance to local regulation Gamesa NRS® noise control system

16. Manufacturers: Key innovations Area Objective Company examples Positioning of the tubines Evaluates the best layout for turbines based on airflows around the blade Vestas: Compuational Fluid Dynamics (CFD) techniques for wind mapping Monitoring system Provides standardized and customized reports on wind turbine data, electrical and mechanical data, statistical data, meteorological data and grid data Siemens: WebWPS SCADA system, has a communication driver, a database management system and web server Gamesa: WindNet®, has a web interface Predictive maintenance system Allows early detection of faults in component Gamesa SMP

17. Gaining a toehold in the wind market Year Major Deals 2002 GE acquires Enron Wind from bankruptcy proceedings to enter the wind business 2004 Siemens acquires Danish firm Bonus to enter the wind business 2006 Suzlon acquired Hansen Transmissions, Belgian gearbox company Iberdrolo, Spanish utility company, bought wind assets from Gamesa, a Spanish turbine manufacturer, assets included US Wind farms 2007 Suzlon acquired REPower, German wind turbine company Iberdrolo, Spanish utility, acquires UK wind farm owner and utility, Scottish Power Areva, a French nuclear energy company acquires German offshore wind turbine maker Multibird Italian utility Enel and Spanish builder Acciona acquire Spanish energy company Endesa, which is the largest private utility in Latin America Energias de Portugal (EDP) took over Horizon Wind, Texan-based wind power producer, making EDP a major player in the wind market Alstom, French engineering company, bought Spanish wind turbine company, Ecotècnia, which previously ranked second in Europe 2008 Iberdrolo and Gamesa, form 2 JVs to pool their businesses in Spain and continental Europe respectively.

19. Position change from 2007 Top 5 total installed capacity (2008) 5. India 4. China No change 3. Spain 2. Germany 1. US China may overtake Spain and Germany to reach 2# by 2010. Europe 8.9GW North America 8.9GW Asia 8.6GW + + = 27GW 36% Growth of New Installed Capacity in 2008 Source: GWEC (Global Wind Energy Council) Country front runners

20. The global wind market in 2007: € 25 bn (US$37 bn) in new generating equipment € 34 bn (US$50.2 bn) of total investment. Country front runners: Growth comparisons Source: GWEC (Global Wind Energy Council) China’s growth rate is very high up, and the US is catching up.

26. Wind Policy: Definitions Feed in tariff Electricity utilities are obliged to purchase electricity from a renewable source at above market rates set by the government as an incentive to the producers Government targets Commitment to produce x% of renewable electricity by 2010 Renewable portfolio standard Electricity utilities are obliged to produce x% of electricity from RE sources Fiscal/tax Incentives Companies which have invested in RE can write off the investment against other revenues Voluntary agreements Guidelines to create an attractive environment for export, purchase, wheeling and banking of wind power Concession scheme RE is given priority for grid connection, distribution and transmission access and power dispatch Production tax credits (PTC) Companies which have invested in RE can get credits from energy produced

27. Wind Policy: Country comparison This is an indicative analysis. More information on policy will be available on www.regainparadise.org Policies EU Denmark Germany China Spain India Canada US France Feed in tariff Government targets Renewable portfolio standard Fiscal/tax incentives Contribution programs Voluntary agreements Concession scheme Production tax credits (PTC)

31. Wind farms: Producer market

33. Global operators: Financials Source: Respective company websites 10% 39m 414m Aus $ Babcock and Brown Wind Partners (2008) 1% 339 m 4 m € EDP Renováveis (2007) 19% 390.2 m 2030.3 m € Iberdrola Renovables (2008) Net profit as a % of revenue Net Profit Revenue Currency

34. Global operators: Sample large farms Source: Respective company websites Wind farm Operator Location Commissioned Capacity (MW) No. of turbines Turbine manufacturer Lone Star RES, EDP Texas, US 2006 400 200 Gamesa Maple Ridge EDP New York, US 2006 321.75 195 Vestas Cedar Creek Babcock & Brown, BP AlternativEnergy Colorado, US 2007 300.5 221 Mitsubishi King Mountain RES Texas, US 2001 278 214 Bonus Sweetwater 4 Babcock & Brown Texas, US - 240.8 181 Mitsubishi, Siemens Ararat [in development] RES Ararat, Australia 2008 228 76 - Lake Bonney Stage 2 Babcock & Brown Woakwine Range , Australia 2008 159 53 Vestas P.E. Campollano EDP Castilla-La Mancha, Spain - 124.1 146 Gamesa

36. National Wind Power Companies Large national operators have similar sized wind portfolios compared to large global operators. Possibility for M&As? Source: Respective company websites Company Area of operation Wind power portfolio No. of wind farms Clipper Windpower US, Latin America, Europe 6500MW [develops 2.5MW wind turbine - NextEra Energy Resources [part of FPL Group] North America > 6300MW 65 Noble Environmental Power US 3850MW 13 Invenergy LLC North America, Europe 836MW [additional 600MW in development] 8 [5 in development] Terra-Gen Power [RE Projects] US 831MW 21 Airtricity Europe 400MW 14 First Wind US & Hawaii 92MW 3

42. Source: Wind Power Costs, EWEA publication The costs of Wind energy varies from US$ 0.048 at sites with speeds of 7.15 mps to US$ 0.026 at sites with speeds of 9.32 mps The costs of a 3 MW turbine versus a 51 MW farm are US$ 0.059 versus US$ 0.036 (costs include production tax credits) Source: The Economics of Wind Energy, AWEA publication How much does wind energy cost? Capital Cost The average installation cost varies from 900 €/kW to 1,150 €/kW Operational Cost Factors Operation Cost The costs of wind energy varies from 9 c€/kWh to 4 c€/kWh, depending on location of plant and discount rate