Building a Sustainable Wind Energy IndustryBuilding a Sustainable Wind Energy IndustryBuilding a Sustainable Wind Energy IndustryBuilding a Sustainable Wind Energy IndustryAfricaAfricaAfricaAfrica’’’’s Natural Advantagess Natural Advantagess Natural Advantagess Natural Advantages

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Key Design Features of 1.5MW PMDD and Fleet Availability

Building a Sustainable Wind Energy Industry Building a Sustainable Wind Energy Industry Building a Sustainable Wind Energy Industry Building a Sustainable Wind Energy Industry ---- AfricaAfricaAfricaAfrica’’’’s Natural Advantagess Natural Advantagess Natural Advantagess Natural Advantages

From a manufacturer and wind farm investors’ perspective: covering key trends in Wind Power markets and technologies:

– What technologies and business models are best suited to Africa?

– Where are the investment dollars likely to go?

– What decisions will drive efficient use of capital, resources and ultimately return the most value to the community?

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About Goldwind

The first and most established wind turbine manufacturer in the Chinese market:

― Over 20 years history― Strong customer base, order book and production capability― International R&D― Impressive financial performance and backing― Bankable products, with certification testing and quality

control to international standards― Total installations of over 6000 6000 6000 6000 wind turbines and 7.0 GW*7.0 GW*7.0 GW*7.0 GW*

The Goldwind group Goldwind group Goldwind group Goldwind group of companies operates in a growing number of countries around the world in the areas of:

― Wind turbine manufacturingmanufacturingmanufacturingmanufacturing― Project development and financingfinancingfinancingfinancing― Wind farm constructionconstructionconstructionconstruction― Wind farm operation operation operation operation and maintenancemaintenancemaintenancemaintenance services

*As of August 1, 2010

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Market position - 2009

In 2009200920092009, Goldwind was the 5555thththth largest wind turbine supplier globally, gaining significant market share over our number 9 rank in 2008

Goldwind had approximately 21% of cumulative installations in China at the end of 2009.

Source: BTM Consult March 2010

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Market position – 2010 Update

For the first 6 Months of 2010 GoldwindGoldwindGoldwindGoldwind sold 5292MW5292MW5292MW5292MW**

Source: Bloomberg NEF 11 Oct 2011, Vestas website 11 Nov 2011** Beijing Gao Hua Securities (Goldman Sachs) Earnings Review, 17th August 2010

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World Wind Industry – Installed Capacity

Source: Bloomberg NEF 11 Oct 2010

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What Happened?

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Barriers to an African Wind Industry

Technical BarriersTechnical BarriersTechnical BarriersTechnical Barriers

— Adapting designs to suit the local conditions, approvals, connection and certification

— Technology, international trends moving away from DFIG

Establishing the right conditions for InvestmentEstablishing the right conditions for InvestmentEstablishing the right conditions for InvestmentEstablishing the right conditions for Investment

— Feed in tariffs

— Clear long term targets and policies

Financial barriersFinancial barriersFinancial barriersFinancial barriers

— Raising equity and debt

Encouraging competition/Small marketEncouraging competition/Small marketEncouraging competition/Small marketEncouraging competition/Small market

— Strong competition in the current wind turbine market

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New Market Barriers to Entry – Unique Demands

USAUSAUSAUSA— Varied conditions, ranging from high elevation conditions to desert. All

classes of WTG.— Only high yield turbines (high swept area to generator size) likely to be

used due to very difficult project economics

AustraliaAustraliaAustraliaAustralia— Varied conditions, ranging from coastal temperate conditions to desert.

Generally suited to IEC Class I or II (higher wind sites)— Banks very concerned with certification and may not tolerate generic

certification or change of components w/o re-certification— All about grid connection, sophisticated dynamic modelling needs to be

carried out due to typically “stringy” network

AfricaAfricaAfricaAfrica— Generally hot and dry conditions, unlikely to be large coastal wind farms

suited to IEC Class III certified turbines (lower wind sites)— Desert issues – sandstorms, dust— Typically weak grid conditions— Generally grid standards are only now being developed and may be more

flexible (but potentially time consuming) to get connection approvals

DDPM Technology – Forward Trend

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Direct Drive Permanent Magnet Generator

Full Power Converter (100% of full-rating)

Gearbox

DFIG

Double-Fed Induction Generator

Power Converter (30% of full-rating)

Gearbox DFIG – Incumbent Technology

TrendTrendTrendTrend Reason for ChangeReason for ChangeReason for ChangeReason for Change

Direct Direct Direct Direct DriveDriveDriveDrive

EliminateEliminateEliminateEliminate failure of gearboxesEliminateEliminateEliminateEliminate gearbox energy lossesReduceReduceReduceReduce number of parts required to less than half

Permanent Permanent Permanent Permanent Magnet Magnet Magnet Magnet GeneratorGeneratorGeneratorGenerator

BetterBetterBetterBetter fault ride through/zero power requirement to energizeEliminateEliminateEliminateEliminate secondary winding lossesEliminate Eliminate Eliminate Eliminate slip rings and associated maintenance

Full Power Full Power Full Power Full Power ConverterConverterConverterConverter

Grid Grid Grid Grid friendlyMore control More control More control More control and operational flexibilityMeet Future Meet Future Meet Future Meet Future Grid Codes and Requirements

New Market Barriers - Major trend moving away from DFIG

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CompanyCompanyCompanyCompany Production TurbinesProduction TurbinesProduction TurbinesProduction Turbines Technological Technological Technological Technological HistoryHistoryHistoryHistory

Indicated Future Indicated Future Indicated Future Indicated Future Turbine TechnologyTurbine TechnologyTurbine TechnologyTurbine Technology

Direct Drive

Permanent Magnet

Full Power Converter

VestasVestasVestasVestas ---- � YesYesYesYes � YesYesYesYes Gearbox DFIG Gearbox driven PM full power converter

GEGEGEGE ---- � YesYesYesYes � YesYesYesYes Gearbox DFIG DDPM

SinovelSinovelSinovelSinovel ---- ---- ---- Gearbox DFIG Gearbox DFIG

EnerconEnerconEnerconEnercon � YesYesYesYes ---- � YesYesYesYes Wound Rotor DD Wound Rotor DD

GoldwindGoldwindGoldwindGoldwind � YesYesYesYes � YesYesYesYes � YesYesYesYes 7 yrs of 1MW+ DDPM

DDPM

SiemensSiemensSiemensSiemens ---- � YesYesYesYes � YesYesYesYes Gearbox DFIG DDPM

SuzlonSuzlonSuzlonSuzlon ---- ---- ---- Gearbox DFIG Unknown

RepowerRepowerRepowerRepower ---- ---- ---- Gearbox DFIG Unknown

GamesaGamesaGamesaGamesa ---- � YesYesYesYes � YesYesYesYes Gearbox DFIG Unknown

Dong FangDong FangDong FangDong Fang ---- ---- ---- Gearbox DFIG DDPM

Global top 10 Current and Future Technology

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Goldwind, GE, Siemens and Vestas new machines all utilize permanent magnet technology and full power converters.

Goldwind, GE and Siemens have also announced to the market that their “next generation” of turbine will be Permanent Magnet Direct Drive (PMDD)

Siemens installed a 3MW, 101m rotor direct drive turbine prototype in July 2008 - expect these turbines to be available in 2011-2012

In the second half of 2009, GE acquired Scanwind and have advertised this “revolutionary” design as the future of wind in many press releases and publications including Popular Science, April 2010

Source: Popular Science, Renewable Energy World.com

New Market Barriers - Major trend, moving away from DFIG

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Local manufacturing and Physical Presence

Initial SeedInitial SeedInitial SeedInitial Seed; Construction and erection of pilot projects may be necessary in order to make a start in a new market

Local EmploymentLocal EmploymentLocal EmploymentLocal Employment; In many markets it is very important to use local staff to make local connections, need planning to attract appropriate local staff with sufficient experience

Regionalised O&MRegionalised O&MRegionalised O&MRegionalised O&M; Need to be able to respond to machine outages, development of after sales/O&M service teams capability is very important

Supply ChainsSupply ChainsSupply ChainsSupply Chains; Components may be local or imported, however, supply chains for all components including quality auditing need to be established

Critical MassCritical MassCritical MassCritical Mass; Building a sufficient fleet/reputation/presence in the industry is key to market entry, can be easier/faster to do this as part of a strategic alliance with a developer

Source: Vestas, Nacelle Assembly, Tasmania.

Cost/Risk Optimisation and Local Manufacturing

Additional Government SupportAdditional Government SupportAdditional Government SupportAdditional Government Support; Many markets offer government support for setting up local manufacturing or might assist the developer in getting their project approvals

Nacelle AssemblyNacelle AssemblyNacelle AssemblyNacelle Assembly; Can be cost effective for relatively low numbers of turbines. Good potential first step for local manufacturing

Tower ManufacturingTower ManufacturingTower ManufacturingTower Manufacturing; Towers are usually expensive to transport due to their size and manufacturing is relatively simple. Particularly interesting where there are good large local steel manufacturers near wind sites (South Africa). Also may help significantly in localisation of costs

Blade ManufacturingBlade ManufacturingBlade ManufacturingBlade Manufacturing; More difficult than towers to manufacture but similarly, savings are likely on transportation costs. Due to the relative costs of the blades (typ. 20-25% of turbines) can significantly help to localise currency which is desirable for developers

Acquisition /partnership with local manufacturing facilities/comAcquisition /partnership with local manufacturing facilities/comAcquisition /partnership with local manufacturing facilities/comAcquisition /partnership with local manufacturing facilities/companiespaniespaniespanies; Can be significantly cheaper than starting from scratch plus very helpful to acquire good local staff/supply chains/relationships. May be a far faster route to market than building new facilities

Transportation cost modellingTransportation cost modellingTransportation cost modellingTransportation cost modelling; Can be very complex and dependent on many factors including fuel price, availability of cargo space, FOREX, etc.

Local manufacturing will aid market penetrationLocal manufacturing will aid market penetrationLocal manufacturing will aid market penetrationLocal manufacturing will aid market penetration; In many countries some sort of local manufacturing will make a very big difference to market perceptions of the product and ultimately turbine sales 14

― Simple and compact structure and a lightweight design

― Multi-polar, low-speed

― High power to weight ratio

― No excitation losses

― No requirement for excitation slip rings and brushes

― External diameter of WTG is smaller than wound rotor designs

Goldwind Goldwind Goldwind Goldwind Permanent Magnet Permanent Magnet Permanent Magnet Permanent Magnet

GeneratorGeneratorGeneratorGenerator

Wound Rotor Wound Rotor Wound Rotor Wound Rotor ExcitationExcitationExcitationExcitationGeneratorGeneratorGeneratorGenerator

2. Stator

2. Stator1. Rotor

Generator Generator Generator Generator DiameterDiameterDiameterDiameter

5. Rotor Windings

3. Stator Windings

4. Permanent Magnet

3. Stator Windings

1. Rotor

Reduction in diameter due to Reduction in diameter due to Reduction in diameter due to Reduction in diameter due to PMPMPMPM

Africa Friendly Design – Smaller, Generators, Smaller Cranes and Lower Maintenance

The use of permanent magnets in the generator rotor removes the need

for excitation of rotor windings, slip rings, brushes and associated maintenance

Permanent magnets also allow for a smaller physical structure, removing weight and enabling easier transportation

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Variable Speed TechnologyVariable Speed TechnologyVariable Speed TechnologyVariable Speed Technology

― Passive diode rectifier: high efficiency, low EMI

― Very low harmonics to the grid

― Automatic adjustment to 50 Hz or 60 Hz

― Measured and certified low-voltage ride through

― Full reactive power control

― High reliability: air cooling, robust converter control

― Good serviceability: modular design with fast IGBT

exchange

“Low-tech converter” of highly integrated IGBT modules

― Integrated current sensor

― Integrated temperature sensor

― Integrated heat sink

― Integrated driving circuit & protection

Africa Friendly Design – Weak Grid Capable Connectivity

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The blade pitch system in the 1.5MW direct drive hub is designed to be largely maintenance free

The following design changes have been made in comparison to common pitch systems where frequent maintenance is required:

― Toothed belts are used in place of spur gears

― AC pitch drives are employed instead of DC motors

― Ultra Capacitors are used in place of lead acid or gel cell batteries for the emergency stop/over speed safety system

Africa Friendly Design – Near Zero Maintenance Hubs

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African Wind Projects - Raising Equity and Debt

Non recourseNon recourseNon recourseNon recourse; Stand alone, non-recourse project financing often preferred/necessary for wind farms

GearingGearingGearingGearing; Banks typically willing to loan up to 70% or 80% (vary depending on bank and market). In the US currently this is more likely to be 50%

Debt CoverageDebt CoverageDebt CoverageDebt Coverage; Restrictions on minimum DSCR (vary depending on bank and market)

WTG Sales TermsWTG Sales TermsWTG Sales TermsWTG Sales Terms; Turbine supply terms/structures:

1. Minimum warrantee period 5 years or longer now in most markets

2. 97% Availability industry standard plus at least 95% power curve

3. Need adequate securities

4. EPC type arrangement favoured by banks but generally structure is very important

HistoryHistoryHistoryHistory; Turbine history/success/certification/production volume very important together with developer history/success and financial position of WTG supplier

AvailabilityAvailabilityAvailabilityAvailability; In most markets banks are still eager to lend to the right developers, but cost of debt has risen through the financial crisis and banks are increasingly looking at technical/commercial details

Local RequirementsLocal RequirementsLocal RequirementsLocal Requirements; Local currencies and country risk/exposure

International Offices and Operating Turbines

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Canada8 WTG

USA6 WTG

-Chicago Office-Manufacturing to

be announced

Brazil57 WTG

Germany15 WTG

-Nuenkirchen Office- 2 Manufacturing

Plants

Spain & Portugal8 WTG

India50 WTG

China3,000 WTG

8 Manufacturing PlantsNumerous Offices

Poland3 WTG

Bulgaria3 WTG

Russia2 WTG

Pakistan5 WTG

Approximately 3000 PMDD Wind Turbines Globally (4.6GW)Offices in South Africa, China, Australia, Germany and USA

Australia- Sydney Office- Melbourne Office

South Africa-Capetown

Office

Uilk Wind Farm Minnesota, USA 3 x Goldwind 77m Rotor 1.5MW

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Regionalised O&M, RENEW Energy Maintenance, USA

RENEW Energy Maintenance LLC, a Midwest-based wind turbine service company, has entered into a multiyear strategic relationship with Goldwind USA Inc. RENEW Energy Maintenance will provide operations and maintenance services to Goldwind USA and for projects owned by Goldwind's affiliates.

"We are impressed with Goldwind's turbine technology, including their utilization of direct-drive power transmission, and are excited about the opportunity to grow with Goldwind's expanding North American presence,"

“The partnership could create 25 to 35 U.S. local operations and maintenance jobs over the next few years, with the potential for more job growth”

Source; P. Mikel, president of RENEW Energy Maintenance, www.nawindpower.com

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1.5MW Rotor Lifting (Germany)

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VENSYS Production Facilities (Germany)

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German/Chinese Collaboration - 2.5 MW PMDD Turbine

First prototype 2.5MW was installed at year end 2009, 5 units currently operating in China, 1 in northern Germany

Goldwind is currently ramping up serial production, with 40 units to be installed in 2010

Domestic and International certification is now in progress and will be completed later early 2011

Availability for international markets including Europe, USA, Australia , Asia (ex. China) and Africa to be announced

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German-Chinese Collaboration - Near Shore and Offshore

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1.5MW Direct Drive Erection (Germany)

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Goldwind Production Facilities (China)

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For wind manufacturers to truly succeed in markets such as Africa they must continue to develop a localised supply chains in each market (particularly blades and towers).

It is important to draw on the best practices, expertise, and technology from numerous countries, especially Germany, Denmark, China and U.S.

In the case of Goldwind, our strategy relies on globalization through localization. Our success in bringing innovative technology to global markets depends on utilizing local manufacturing, management, and suppliers that create local jobs.

Our number one goal is to continue producing clean, cost-efficient renewable energy. We look forward to working with the international community to support the further development of wind power globally

Summary

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Questions ?

Garth HeronGarth HeronGarth HeronGarth Heron

Director of Business DevelopmentDirector of Business DevelopmentDirector of Business DevelopmentDirector of Business DevelopmentGoldwind InternationalGoldwind InternationalGoldwind InternationalGoldwind International

Goldwind Science & Techonology Co.,LtdAdd: Floor 20, Tower A, Gemdale Plaza, 91

Jianguo Road, Chaoyang District, Beijing 100022

E-Mail: garthheron@goldwind.cn