From MM to 3.XM and beyond Intercontinental Wind Power Congress 2015 Stefan Philipp, Head of Portfolio Management January 30th, 2015 Senvion At a glance Company Profile Founded in 2001 as REpower Systems Headquarter in Hamburg (GER) and 20 world-wide offices Local office: Senvion Turkey Rüzgar Türbinleri Ticaret Ltd. Anakara Revenue of 1.806MEUR (13/14) 12GW installed capacity spread over more than 20 countries 3.500 employees world-wide Turbine portfolio ranges from 2MW and 3MW (onshore) up to 6MW (offshore) 1 Portfolio Driving Market Developments From feed-in tariffs to day-trading Yesterday Today Tomorrow Political stimulation of renewable energy via introduction of FiT or certificates Project-specific negotiation of PPAs resp. project selection via tender/auction systems (Renewable) energy being (day-) traded at energy markets Maximize turbine rating to maximize revenue for customer as well as supporting political targets Several turbine configurations to optimize business case for each individual wind project Requires flexible control of wind turbine in combination with energy forecasting Wind turbine maximizing the power output at strong wind sites Broad spectrum of turbine variants, including project-specific optimization of design Concurrent control of turbines by different entities; combination with weather forecasting Continuously increasing importance of LCoE reduction of windfarm projects 2 LCoE Reduction Key drivers with different impact on LCoE reduction LCoE Drivers D AEP* D CAPEX Manufacturer's Key Drivers Turbine Portfolio Enhancements (e.g. New Turbines) Enhanced Project Suitability (e.g. Grid, Sound, Ice, ...) D Cost of Capital Transport/installation concepts (e.g. single blade, ...) D OPEX D others ... D LCoE Bankability of portfolio (e.g. track-record,...) Operation & Maintenance (e.g. Performance, CMS, ....) AEP enhancement remain prime parameter for future LCoE reductions 3 *) AEP – Anual Enegry Production LCoE Reduction as underlying R&D driver Performance leap only via new platform achievable Onshore Development of LCoE 3.2M114/143m 3.2M114VG/143m +2% AEP 3.0M122/139m +3% AEP 3.2M122/139m +2% AEP CAPEX + OPEX (+ Fuel) LCoE = Total Electricity Produced Source: Company information Assumptions: 411 German project with 6.5m/s (140m); all turbines w/ 200m TH; spot market energy price forecast without EEG premium Portfolio Driving Market Developments Increasing requirements for (grid) integration of turbines Yesterday Today Tomorrow Renewables were tolerated in the electrical grid Renewables have to support grid stability Renewables have to substantially support the electrical grid Requirements were limited to isolation from the grid Challenging requirements in various markets (e.g. GER, CAN, AUS,..) Coming ENTSO-E grid code (2016) DFIG as most cost efficient solution Improved DFIG with increasing costs NES (full converter) as most cost efficient and flexible solution Regular updates of grid codes require continuously improved electrical performance 5 Senvion Product Portfolio Track record of Senvion turbines today Turbine Rated Power (kW) Total (kW) Total (pcs) Country Germany 3.844.415 France 1.767.700 US 1.263.650 United Kingdom 1.247.400 MM92 2.000/2.050 5.183.050 2.539 MM82 2.000/2.050 2.603.150 1.286 3.4M104 3.400 931.600 274 3.2M114 3.200 780.800 244 MD77 1.500 744.000 496 6M 6.150 664.200 108 5M 5.000/5.075 267.775 53 MD70 1.500 249.000 166 MM70 2.000 148.000 74 57/1000 1.000 108.000 108 Others* div. 302.669 553 Total 11.982.244 5.901 Other Total Capacity (kW) Canada 828.200 Italy 774.050 Belgium 562.500 Poland 268.800 China 234.179 (as REpower North) 1.191.350 11.982.244 Others: Portugal, Netherlands, Australia, Japan, Austria, Hungary, Czechia, Spain, Sweden, India, Greece, Russia, Korea, Switzerland, Romania Installations by 01.01.2015 6 Senvion Product Portfolio Proven Power Performance GL Garrad Hassan has reviewed all of 40 measurement campaigns in 6 countries to validate Senvion’s Power Curve Performance 7 Source: GL Garrad Hassan, results as of February 2012 Senvion Product Portfolio Proven Power Performance Number of measurements Number of measured turbines 5 2 6 2 2 2 15 14 7 6 3 3 1 1 1 1 Ratio EMAEP/GAEP [%] 98.9% min / max results 96.9 – 100.8 99.2% min / max results 96.1 – 103.2 101.9% min / max results 101.2 – 103.3 100.9% min / max results 96.4 – 106.8 100.0% min / max results 98.2 – 102.1 100.4% Power Performance Validation All measurements have been reviewed by GL Garrad Hassan Based on an extensive data sheet of 40 measurement campaigns All measurement campaigns conducted by independent measurement institutes Comparison of Extrapolated Measured Annual Energy Production (EMAEP) and Guaranteed Annual Energy Production (GAEP) High power curve accuracy of 100.4% for the observed Senvion portfolio min / max results 99.6 – 101.1 100.9% min / max results n/a – n/a Senvion guarantees power curve of 100% minus measurement uncertainties 101.2% min / max results n/a – n/a 8 Source: GL Garrad Hassan, results as of February 2012 Senvion Product Portfolio Onshore Turbine Portfolio 2013/14 2014/15 2015/16 Existing Existing Under Development 3.4M104 3.4M104 3.4M104NES NCV 73 / 80 / 100m NCV 73 / 80 / 100m NCV 73 / 80 / 93m 3.2M114 3.2M114VG 3.4M114 NCV, CCV 93 / 123 / 143m NCV, CCV 93 / 119 / 143m NCV 93 / 119 / 143m 3.0M122 3.0M122 3.2M122NES NCV 139m NCV 89 / 119 / 139m NCV, HCV 89 / 119 / 139m 3.2M114NES CCV 119m 50Hz 100m 60Hz 3.4M114NES NCV, HCV 93 / 119 / 143m MM82 NCV, CCV 59 / 69 / 80m MM92 MM92 NCV, CCV 69 / 80 / 100m NCV, CCV 64 / 69 / 80 / 100m MM100 MM100 NCV 80 / 100m NCV 75 / 80 / 100m Information: NCV Normal Climate Version operation from -20°C up to +35°C HCV Hot Climate Version operation up to +45°C CCV Cold Climate Version operation down to -30°C 9 Next Electrical System (NES) Performance and Timeline Comparison between current DFIG system and design targets of NES system Capability Current 3.XM Performance 3.XM 50Hz NES Performance LVRT 0% for 500ms 0% for 3s OVRT 120% for 100 ms 130% for 5s Steady state voltage range +/- 10% -10% / +19% Q/P (e.g. for 3.2M114) +/- 0.44 +/- 0.5 Timeline for first installation 2013 2014 2015 2016 Calendar Years Exptected go-live of ENTSO-E grid code 0-Series Serial Production Start of Communication Prototype I&C 10 Senvion SCADA Solutions Solutions for Direct Sales of Electricity IEC 61400-25 Client Monitoring Direct Marketer Meteo Station B REguard Control B WEC REguard Control B WEC REguard Analog I/O Windfarm Control B Power Management Unit REguard Control B mit Interface B IEC 61400-25 Digital I/O WEC REguard Control B WEC Grid Operator REguard Control B 11 Offshore Market At a glance 1,630.9 megawatts of new offshore wind capacity came online worldwide in 2013. Today, more than 90% of installations are in European waters. The UK has the largest amount of installed offshore wind capacity in Europe (3,681 MW), and 56% of all installations; Denmark follows with 1,271 MW (19%), Belgium is third 571 MW (8.7%), followed by Germany (520 MW: 8%), the Netherlands (247 MW: 3.8%) and Sweden (212 MW: 3.22%). Global offshore wind power in the end of 2013: 7,045.9 MW cumulative. Wavering political support for offshore wind energy – especially in key markets like the UK and Germany – has led to delays to planned projects and fewer new projects being launched. This means installations are likely to plateau until 2015, followed by a decline from 2016. 140 Senvion Offshore turbines operating successfull in 6 offshore windfarms Contracts for 2 further projects (>70 WECs) signed recently Source: GWEC, Global Wind Report – Annual Market Update 2013, April 2014 12 © Senvion SE All rights reserved. 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