O&M 2 .0INDEPENDENT OPERATIONSOF WINDFARMS

V German-Brazilian Renewable Energy Business

Conference – Onshore Windenergy Brazil

Natal/RN, 30th of May 2017

Thomas Kunzmann, Managing Director

1

CompanyCompanyCompanyCompanyChallengesO&M 2.0 – Independent OperationsO&M ScenariosSummary

AGENDA

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

WINDWERK IS PART OF GERMAN DGE GROUP AND HAS 20 YEARS OF EXPERIENCE IN SOUTH AMERICA AND EUROPE

20 years of international experience in Europe and South America with Renewable EnergiesActivities in Germany, France, Chile and BrazilOperations Management of 230 wind turbine generators with 300 MWProject development >200 MWManufacturer independent: cooperation for example with Enercon/Wobben, Suzlon/Senvion, Vestas, GEApplication of German quality standards

Company Profile

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

COMPETENCES IN DEVELOPMENT, FINANCING AND OPERATIONS

Core competences of DGE Group

BUSINESS DIVISIONS

COMPETENCIES

REALIZEDSERVICES

DEVELOPMENT FINANCINGCOMERCIAL

MANAGEMENT

• Project Development

• Acquisition of

Projects

• > 300 MW of

acquired projects

• >200 MW of own

development in

France and Germany

• Project Financing

• Conception of Funds

• Share Capital

Acquisition

• 13 funds

• Financing volume of

500 Mi. Euro

• About 125 Mi. Euro

of collected share

capital

• Investor Relations

including Customer

Care

• Tailored Reports

• Contract Acquisition

• Contract Controlling

• 11 funds

• > 2.000 investors

OPERATIONAL MANAGEMENT

• Monitoring

• Operations Mgmt

• Performance

Analysis

• Coordination of

Maintenance

• Quality Control &

Inspections

• 15 wind farms

• > 230 WTG from GE,

Enercon/Wobben,

Suzlon/Senvion,

Vestas, Nordex

• 300 MW

• 2 solar farms with 12

MWp

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

WE SUPERVISION DAILY 300 MW WIND AND 12 MW SOLAR

Solar farms with 12 MWp in Germany and Chile:

SharpSharpSharpSharp: 32.000 ModulesRWE Schott SolarRWE Schott SolarRWE Schott SolarRWE Schott Solar: 6.500 ModulesJA Solar: JA Solar: JA Solar: JA Solar: 4.000 ModulesSMASMASMASMA InvertersSiemensSiemensSiemensSiemens Inverters

15 wind farms/230 WTG with 300 MW across Europe:

Suzlon/SenvionSuzlon/SenvionSuzlon/SenvionSuzlon/Senvion: 60x MD70/77Enercon/WobbenEnercon/WobbenEnercon/WobbenEnercon/Wobben: 6x E115, 70x E40, 17x E66, 17x E70VestasVestasVestasVestas: 14x V66, 11x NM1500General Electric: General Electric: General Electric: General Electric: 22x TW600, 14x GEWind 1.5NordexNordexNordexNordex----Acciona:Acciona:Acciona:Acciona: 2x N117

Our Portfolio

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

CompanyChallengesChallengesChallengesChallenges

O&M 2.0 – Independent OperationsO&M ScenariosSummary

AGENDA

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

RAPID DEVELOPMENT AND INCREASE OF COMPLEXITY OF WIND TURBINES REQUIRES SPECIALISTS

Challenges and possible consequences

Today’s machines generate 100 times as much electricity as earliest wind turbines and have a much higher higher higher higher complexitycomplexitycomplexitycomplexityThroughout their operating life wind turbines are subject to enormous enormous enormous enormous stressesstressesstressesstresses

Defects are not always visible Defects are not always visible Defects are not always visible Defects are not always visible and often only experts can detect them by specialized analysis Unremedied defects can impair performance and lead to unplanned disturbances unplanned disturbances unplanned disturbances unplanned disturbances Long downtimes Long downtimes Long downtimes Long downtimes can come at a high price and can turn a project negativeFull maintenance contracts offer a certain protection, however do not guarantee fast reaction and have often caps

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

SPECIAL CHALLENGES IN BRAZIL

Different climatic conditionsDifferent climatic conditionsDifferent climatic conditionsDifferent climatic conditions− Stronger and more frequent wind results in very high high high high

capacity factorcapacity factorcapacity factorcapacity factor: Brazil 38% vs. Europe: 25%− Brazil is world’s number one in lightningslightningslightningslightnings− Many turbines are not well adapted to these conditionsBrazil has continental dimensionscontinental dimensionscontinental dimensionscontinental dimensions, extreme distances complicate production, logistics, training and serviceWind industry is relatively new and still in developmentWind industry is relatively new and still in developmentWind industry is relatively new and still in developmentWind industry is relatively new and still in development:− experiences with O&M are scarcewith O&M are scarcewith O&M are scarcewith O&M are scarce− QQQQuality issues in service uality issues in service uality issues in service uality issues in service − Conflict of interests Conflict of interests Conflict of interests Conflict of interests between maintenance and OEM− Asymetric service contracts between vendor and

operator

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

OPERATIONAL MANAGEMENT OF WIND FARMS IS IMPORTANT FROM THE BEGINNING AND GETS CRITICAL AFTER 5 YEARSHow to master the challenges

Mandate constant monitoring by experienced specialists Check clauses of operational contracts Comission inspections at least every 2 years of operationConsider to mandate inspections one year prior to end of garantee or full maintenance contract to make demands in timeCheck insurance protection and if necessary adjust to close gaps

Monitoring, inspections and maintenance are

indispensable in order to continuously achieve

maximum electricity yields regular

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

CompanyChallenges

O&M 2.0 O&M 2.0 O&M 2.0 O&M 2.0 –––– Independent Independent Independent Independent OperationsOperationsOperationsOperationsO&M ScenariosSummary

AGENDA

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

Reaction time slowOEMs do not show “real” availabilityService quality with problemsTransparency limitedMainly reactive measuresConflict of interest OEM and maintenanceExpensive

OEM SERVICE CONTRACTS HAVE LIMITATIONS, INDEPENDENT OPERATIONS CAN BE AN ALTERNATIVE

Better reaction time“Real” availability time- or energy-basedBetter quality of serviceFully transparent documentationPreventive, proactive measuresNo conflict of interest

� Less expensiveLess expensiveLess expensiveLess expensive� Reduction Reduction Reduction Reduction of OPEXof OPEXof OPEXof OPEX� Better rentabilityBetter rentabilityBetter rentabilityBetter rentability

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

O&M by OEM O&M by ISP

How does indepedent monitoring and operations work?

Consolidation of all available turbine data into one multibrandmultibrandmultibrandmultibrand softwaresoftwaresoftwaresoftware system even with different turbine brandsProcesses are aligned Processes are aligned Processes are aligned Processes are aligned and optimized for system, no paper! Storage of data on separate server (customer defines where), independent from SCADAindependent from SCADAindependent from SCADAindependent from SCADARealRealRealReal----timetimetimetime monitoring of all data – 24/724/724/724/7Powerful tools for analysis and reports tailored to customers needsExchange with expert network for quick and efficient solutionsDaily processing Daily processing Daily processing Daily processing and checking of all turbine events, alerts, service protocols in Center of Operations Highly qualified staff, trained experts with data background

OPERATIONS ARE CONTROLLED 24/7 WITH SPECIALIZEDRESOURCES

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

FOR SUCCESSFUL MONITORING INTERPLAY BETWEEN KNOW HOW, NETWORK AND EFFICIENT IT SYSTEMS IS CRITICALSuccess Factors of Monitoring

• Stable and integrated IT systems

• Infrastructure needs for data storage and access

• Regular contact to manufacturers, suppliers, operators and service providers and exchange

• Experience with wind farms

• Qualification and regular training of personnel

IT

Know How

Network

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

Modelo - Operations Plus

Módulo 1

WINDWERK

Módulo 2

SUEDA

Inspeções técnicas

Preparação e Adaptação

Transfer de Know How

Phasing

Out

- Operação e Monitoring

- Inspeções- Plan/Controle de

Manutenção

Execução Manutenção preventiva

Execução Manutenção corretiva

OPERATIONS PLUS: INDEPENDENT OPERATIONS ANDMAINTENANCE

Operations are controlled by WINDWERK, maintenance by specializedISP

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

CompanyChallengesO&M 2.0 – Independent Operations

O&M ScenariosO&M ScenariosO&M ScenariosO&M ScenariosSummary

AGENDA

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

NEW O&M OPTIONS WITH ISP: MONITORING CAN COMPLEMENT OR EVEN REPLACE EXISTING SERVICE CONTRACTS Basic maintenance in combination with independent operations can be less expensive and more efficient than full-service O&M in the long run

OPEX by Maintenance Scenario

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

MONITORING CAN COMPLEMENT EXISTING FULL-SERVICE CONTRACT OR REPLACE OPERATIONS

Monitoring tasks of ISP by maintenance scenario

• Take care of daily operations

• Supervise basic maintenance

• Commission preventive

measures and repairs as required

Basic Maintenance + Operations by ISP

• Check the execution of the service

provider on a daily basis

• Recalculate availability

• Close „gaps“, if any

Full Maintenance + Monitoring by ISP

• Can be implemented at any

moment

• Right from the beginning

• Upon end of guarantee period

• Upon end of full-service period

ISP

Tasks

Wh

en

Best

wh

en • Full-service contract will last some

more years

• Reaction time and quality of

service lead to production losses

• Price increase of full-service

coverage

• More transparency and less

dependancy is desired

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

CompanyChallengesO&M 2.0 – Independent OperationsO&M Scenarios

SummarySummarySummarySummary

AGENDA

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

MONITORING AND INSPECTION SERVICES HELP YOU TO MAXIMIZE YOUR PERFORMANCE AND REDUCE YOUR COSTS

help you to represent represent represent represent your interests your interests your interests your interests in dealing with manufacturers as well as service companies kkkkeeps you informed eeps you informed eeps you informed eeps you informed about the state of your wind park and the work of your service providerseeeensures quick reaction nsures quick reaction nsures quick reaction nsures quick reaction in case of disturbancesreduce operational costs reduce operational costs reduce operational costs reduce operational costs and production losses significantly

Making your investment more Making your investment more Making your investment more Making your investment more profitableprofitableprofitableprofitable!!!!

WINDWERK offers ...

Competence in the management of ancient and modern turbines of major manufacturers (e.g. Suzlon/Senvion, Enercon/Wobben, Vestas, GE) Due Diligence, Inspections, Operations, TrainingMultidisciplinary and multilingual teamsSpecialized network of experts, service providers, suppliers and manufacturersUse of proven systems, stable and independent management and ITApplication of European best practices

Monitoring and Inspections ...

O & M 2 . 0 : I N D E P E D E N T O P E R AT I O N S A N D M A I N T E N A N C E O F W I N D FA R M SV German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

Rua Correia Dias 184, 11o andarSão Paulo � (11) 4081 1976www.windwerk.com.brinfo@windwerk.com.br

Thomas KunzmannThomas KunzmannThomas KunzmannThomas KunzmannManaging Directorkunzmann@windwerk.com.br

T H A N K Y O U - W E R E M A I N AT Y O U R D I S P O S A L !

20