Models for successful wind projects

Models for successful

wind projects

7th Canadian German Wind

Energy Conference

Montréal - February 8th. 2011

Helmut Herold

Regional Manager Canada

2

Agenda

ISP, Full Service Concept

Standard Maintenance Agreement

Quick overview REpower

Comparison between the Concepts

Repower`s value creation

Conclusion

3

Agenda






Conclusion

4

Key Values.

Trust, Knowledge and ExcitementTrust, Knowledge and Excitement

5

From a small company to a global challenger

REpower Systems AGREpower Systems AGDenker & Wulf, JacobsHSW, BWU, pro + pro

Denker & Wulf, JacobsHSW, BWU, pro + pro

1.253,3

862,7

1.209,11.303,6

1.775

2.097

132,0 126.7 142

0

500

1.000

1.500

2.000

2.500

2001 2008/09 2009/10

Installed MW Turnover (EUR m) Employees (number)

6

REpower in the world

REpower GermanyHQ: HamburgNacelle assembly: Trampe, Husum, Bremerhaven

Blade production: BremerhavenR&D: Osterroenfeld, Buedelsdorf, OsnabrückTransport: Schloß Holte-Stukenbrock

REpower GermanyHQ: HamburgNacelle assembly: Trampe, Husum, BremerhavenBlade production: BremerhavenR&D: Osterroenfeld, Buedelsdorf, OsnabrückTransport: Schloß Holte-StukenbrockREpower France

SBU: Paris

REpower FranceSBU: Paris

REpower USA CorpSBU: Denver

REpower USA CorpSBU: Denver REpower Portugal

SBU: Oliveira de FradesNacelle assembly: Oliveira de FradesBlade production: Vagos

REpower PortugalSBU: Oliveira de FradesNacelle assembly: Oliveira de FradesBlade production: Vagos

REpower EspañaSBU: Madrid

REpower EspañaSBU: Madrid

REpower UKSBU: Edinburgh

REpower UKSBU: Edinburgh

REpower ItalySBU: Milano

REpower ItalySBU: Milano

REpower AustraliaSBU: Melbourne

REpower AustraliaSBU: Melbourne

REpower Beijing OfficeSourcing: Beijing

REpower Beijing OfficeSourcing: Beijing

REpower North (China)Nacelle assembly: Baotou

REpower North (China)Nacelle assembly: Baotou

REpower Systems Inc. SBU: Montreal

REpower Systems Inc. SBU: Montreal

7

General Business model

� Focus on system development, production, sales and service of high-quality

multi-megawatt wind turbines for installation both on land and on sea

� Low vertical integration � flexibility allowing to respond on short-term market

changes (like risk in raw material prices) rapidly

� Deep value creation chain � Quick integration of new insights into products and

services

� Focus on system development, production, sales and service of high-quality

multi-megawatt wind turbines for installation both on land and on sea

� Low vertical integration � flexibility allowing to respond on short-term market

changes (like risk in raw material prices) rapidly

� Deep value creation chain � Quick integration of new insights into products and

services

In addition to the design, manufacture, sales and construction, REpower offers a

broad range of individually tailored service and maintenance options.

In addition to the design, manufacture, sales and construction, REpower offers a

broad range of individually tailored service and maintenance options.

8

Agenda






Conclusion

99

The key investor’s principle

Every investment project has to be profitable, secure and easy to realize

What does this mean in case of wind energy plants?

Most efficient transformation of wind power into electrical energy over entire life-time of wind energy plants

Seamless integration of wind energy plants into electrical grid and specific environmental conditions

+

1010

REpower's Value Creation

Most efficient transformation of wind power into electrical energy…

Efficient WEC design Flexible WEC portfolio for optimal adaption to wind conditions

Support for optimal wind farm layout

Sophisticated operation and monitoring system

1111

… over entire life-time of wind energy plants

Reliable WEC design Service-friendly WEC design

Flexible portfolio of service and maintenance contracts

Sophisticated operation and monitoring system


1212

Seamless integration of wind energy plants into…

Flexible options to fulfill country- and network-specific

requirements for grid connection

Flexible options to reduce environmental impacts, thus fulfilling

site-specific legal requirements

…electrical grid …specific environmental conditions

Flexible WEC and product portfolio for optimal adaption to various

climatic conditions


13

REpower’s product portfolio.

Rated power(MW)

Rated power(MW)

6.156.15

2.052.05

2.052.05

5.075 5.075

1.501.50

1.501.50

Prototype installation

Prototype installation

20092009

2005 2005

20032003

20042004

2000 2000

1998 1998

3.373.37 20092009

So

ld in

licen

se

So

ld in

licen

se

Off

sh

ore

tu

rbin

es

Off

sh

ore

tu

rbin

es

On

sh

ore

tu

rbin

es

On

sh

ore

tu

rbin

es

REpower turbine characteristics

REpower turbine characteristics

� Premium quality

� High performance

� Excellent reliability

� High availability

� Solid design

� Service friendliness

� Smart in detail

� Low sound emissions

� Premium quality

� High performance

� Excellent reliability

� High availability

� Solid design

� Service friendliness

� Smart in detail

� Low sound emissions

Turbinetype

Turbinetype

3.173.17 20102010

1.801.80 2011e2011e

13

NEW

14

Agenda






Conclusion

1515

� Well established international service network

� Integrated Service Packages (ISP) including all costs for labor and material to

perform maintenance, repair and inspections

� Available in Canada for terms of 5, 12, 15 and 20 years

� Permanent Monitoring System:

� Remote monitoring of all turbines

� 24 hours a day, 365 days a year

� Every 6 hours check

� Essential operational database allowing comprehensive fault analysis

(Performance, electricity, output, availability, status lists, temperatures, etc.)

� Emergency Service 24 hours a day available

� Well established international service network

� Integrated Service Packages (ISP) including all costs for labor and material to

perform maintenance, repair and inspections

� Available in Canada for terms of 5, 12, 15 and 20 years

� Permanent Monitoring System:

� Remote monitoring of all turbines

� 24 hours a day, 365 days a year

� Every 6 hours check

� Essential operational database allowing comprehensive fault analysis

(Performance, electricity, output, availability, status lists, temperatures, etc.)

� Emergency Service 24 hours a day available

Operation and Maintenance

REpower’s service concept:REpower’s service concept:

16

Full Service Concept,

Standard Obligations of REpower

IntegratedService

Package,ISP

Maintenance-

Service

Monitoring-

Service

Repair-

Service

Logistics

Availability-

Guarantee

Customer-

Service

17

Concept of the ISP

REpower performs scheduled maintenance, unscheduled

maintenance, inspections, retrofits, monitoring, reporting-services

for the client.

All spare parts, Materials included. Major components included

as well.

97% Technical Availability Guarantee

24/7 Monitoring Service

18

Concept of the ISP

Risksplitting between the client and REpower,

Costs easily calculable for the client, advantage for financing

ISP= Full Service Concept, One Price includes all Services

19

Availability Guarantee ISP

Basic principle

- REpower guarantees a minimum technical availability of 97%.

- If guaranteed availability is not met, REpower pays compensation.

- If exeeded, Client pays premium to REpower.

20

Agenda






Conclusion

21

Standard Maintenance and Service Agreement

Standard Maintenance and Service Agreement:

- Scheduled Maintenance and permanent monitoring

service are included in fixed Price

- Repairs to be paid extra according to price list

- Additional Options selectable by client

- No Availability Guarantee

22

Agenda






Conclusion

23

Scope of Services

� (invoiced)� (included)Repairs

�REpower pays for the spare part stock

��Scheduled Maintenance

�Blade inspection

�Change transmission fluid

Option

�

�

Standard Service & Maintenance Contract

�24/7 remote monitoring

�Transmission fluid analyses

�Consumables

�Maintenance of special equipment

�Maintenance of Converter

ISPScope of Services

24

�Software Updates

�Safety and Security

�Environmental Matters

Option�Remote resets

�Major component change

�Availability guarantee

Option

Standard Service & Maintenance Contract

OptionTraining

OptionReporting

�Service Bulletins

�Spare parts

ISPScope of Services

25

Agenda






Conclusion

26

Conclusion

REpower offers a broad portfolio of solutions for reliable and cost

efficient wind farms

Flexibility on contractual terms, like duration of O&M agreements

Providing experience of 20+ years of manufacturing and operation in Germany

Growing presence in Quebec and other Canadian provinces

27

Thank you for your attention!

REpower Systems Inc.

1250, boul. René-Lévesque Ouest

Suite 3610

Montreal, Québec H3B 4W8

Canada

phone: +1 514 989 3196

fax: + 1 514 934 4640

E-mail: [email protected]

Internet: www.repower.de

28

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Models for successful wind projects