ENERCON and the ENERCON and the Portuguese Wind Energy Portuguese Wind Energy ClusterCluster

The Portuguese energy challengeThe Portuguese energy challenge

INEFFICIENCYINEFFICIENCY

DEPENDENCYDEPENDENCY

REDUCE LOSSES

DIVERSIFY SOUR

CESPolluting EmissionsKyoto Protocol

ENVIRONMENT

Cost of Energy Vulnerability

ECONOMY

2001: The “awakening”2001: The “awakening”

Portugal launches energy policy centered on:Portugal launches energy policy centered on:

Encouraging Energy EfficiencyEncouraging Energy Efficiency

Large-scale use of Portugal’s vast Endogenous & Large-scale use of Portugal’s vast Endogenous & Renewable Energy potentialRenewable Energy potential

Wind Sun Biomass

Mature & competitive technologyMature & competitive technology 65% average annual growth 1999-200665% average annual growth 1999-2006

2008: 2858 MW

Wind Energy leads the growthWind Energy leads the growth 2012: >5000 MW

How to proceed to the next level and How to proceed to the next level and transform wind energy into an transform wind energy into an

essential component of the essential component of the Portuguese energy mixPortuguese energy mix

- and of the Portuguese economy?- and of the Portuguese economy?

The 2005-2006 public tenderThe 2005-2006 public tenderprovides interconnection rights for new wind farms, under the condition that:

A new industrial cluster be created, A new industrial cluster be created, bringing investment, employment and technology transfer to Portugal

New solutions be developed to exploit New solutions be developed to exploit the wind resource more efficiently, the wind resource more efficiently, namely dispatch centres, prevision models and storage solutions

The The ClusterCluster: Porter’s Concept: Porter’s Concept

• Based on Porter’s Based on Porter’s DiamondDiamond

• Group of closely-related Group of closely-related companiescompanies

• Maximises efficiency and Maximises efficiency and added valueadded value

• Constitutes an efficient Constitutes an efficient strategy in high-tech strategy in high-tech sectorssectors

Creating SynergiesCreating Synergies

Enercon’s lasting contributionEnercon’s lasting contribution

As the world leader in wind energy technology As the world leader in wind energy technology development, Enercon’s contribution to the success of the development, Enercon’s contribution to the success of the Portuguese industrial cluster was considerable:Portuguese industrial cluster was considerable:

Adhering fully to the concept and challenge of creating an Adhering fully to the concept and challenge of creating an industrial clusterindustrial cluster

Federating companies, knowledge and skills around this Federating companies, knowledge and skills around this endeavorendeavor

Performing an unprecedented process of technology Performing an unprecedented process of technology transfertransfer

Technology Transfer / R&DTechnology Transfer / R&D

Integral production of the E-82 in Integral production of the E-82 in Portugal (blades, generator, e-module, Portugal (blades, generator, e-module, tower)tower)

New R&D and training centresNew R&D and training centres

Portuguese personnel sent to Germany Portuguese personnel sent to Germany for advanced trainingfor advanced training

48 new wind farms, 1200 MW48 new wind farms, 1200 MW 2700 GWh/yr of electricity, 2700 GWh/yr of electricity, i.e. supply equivalent to more than i.e. supply equivalent to more than 2,3m domestic consumers 2,3m domestic consumers

25% of the portuguese wind 25% of the portuguese wind energy production in 2011energy production in 2011

Results (1): A new Results (1): A new expansion phase for wind expansion phase for wind

energyenergy

Results (2): A tremendous boostResults (2): A tremendous boostfor the Portuguese economyfor the Portuguese economy

Total InvestmentTotal Investment € € 1700 m1700 m

Total Added ValueTotal Added Value € € 286 m per year286 m per year

Job CreationsJob Creations 1 800 direct, 5 500 indirect1 800 direct, 5 500 indirect

Balance of Balance of PaymentsPayments

ExportsExports > 60% of the production > 60% of the production (€200m per year from 2010)(€200m per year from 2010)

Avoided gas importsAvoided gas imports > € 100 m per year> € 100 m per year

Avoided purchase of Avoided purchase of CO2 certificatesCO2 certificates

€ € 24 m per year 24 m per year

(1 MtCO(1 MtCO22 per year) per year)

Local DevelopmentLocal Development Local taxesLocal taxes € € 5 m per year5 m per year

Land rentsLand rents € € 3,4 m per year3,4 m per year

Results (3): A true change of Results (3): A true change of paradigmparadigm

In addition to the environmental benefits, wind In addition to the environmental benefits, wind energy provides jobs, economic growth and energy provides jobs, economic growth and activity to dozens of Portuguese companiesactivity to dozens of Portuguese companies

7 new & 12 upgraded factories7 new & 12 upgraded factories

ENERCON Rotor Blades (1, 12, 13) – ENERCON Concrete Towers (5, 7, 9) – ENERCON Synchronous Generators (10) – SAERTEX Glass Fiber (11) – A. SILVA MATOS Steel Towers (3, 6, 15) – SIEMENS Transformers and Electrical Panels (8, 14) – JAYME DA COSTA Electrical Equipments (4)

Building the wind farmsBuilding the wind farms

1. Enercon Rotor Blades ready for export in the port of Viana do Castelo – 2 & 15. Special transport of Enercon E-82 blades (Transportes Laso) – 3. Building a power substation (Painhas) – 4 & 7. Installing electric lines (Painhas) – 5 & 8. Erecting the wind turbines (Montalgrua) – 6. Building the electric pylons (Painhas) – 9 & 12. Special transport of Enercon towers and nacelles ( Transportes Gonçalo)

Company Factory Location Investment (€) New JobsENEOP/Enercon Rotor Blade Factory Viana do Castelo 34.760.000 510 Concrete Tower Factory Viana do Castelo 21.685.000 108 Generator Factory Lanheses 15.070.000 100 Mechatronics Plant Lanheses 4.585.000 55 Administrative & Training Centre Lanheses 1.725.000 35 Logistics & Transport Centre Viana do Castelo 17.337.000 78 Second Blade factory Lanheses 55.000.000 500A. Silva Matos Steel Tower Factory Sever do Vouga 10.345.000 57Cabos para Eólicas Electrical Equipment Unit Vila Nova de Gaia 672.000 10CME Electrical Installations Unit Lousã 806.000 60EWG WEC Service Centre Viana do Castelo 4.510.000 105Jayme da Costa Electrical Equipment Unit Vila Nova de Gaia 742.000 44Metalogalva Electrical Supplies Unit Albergaria-a-Velha 800.000 21Montalgrua Cranes Service Unit Paredes 25.676.000 15Painhas Electrical Installations Unit Viana do Castelo 2.199.000 63Probilog/Laso Transport Services Unit Arcos de Valdevez 2.485.000 24Saertex Glass Fiber Factory Viana do Castelo 4.000.000 40Siemens Electrical Transformer Factory Sabugo 8.573.000 17Siemens Medium-Voltage Panels Factory Corroios 1.696.000 10Siemens Other investments Lisbon & Porto 559.000 18Tegael Electrical Installations Unit Coruche 1.687.000 35Transportes Gonçalo Transport Services Unit Porto 5.343.000 26

Total Direct Investments and Jobs 220.255.000 1.931Contractual Commitments 161.500.000 1.709

Exceeding expectations & Exceeding expectations & commitmentscommitments

Thank Thank you!you!