POWER SUMMIT-08Kathmandu Nepal - Sept. 23 -24, 2008

Harnessing Wind Power in Nepal

Presentation byManoj Gupta

Suzlon Energy LimitedPowering a Brighter & Greener Tomorrow

• Company overview

• Global Warming

• Wind: a promising renewable energy source

• Harnessing Wind Energy in Nepal

Wind Resource Assessment

Govt. Policy & Support

Infrastructure Development

Contents

Pioneering end-to-end wind power solutions

• Allows customers to

benefit from cost-

efficiencies and

economies of scale in

wind farms

• Avoids need for customers

to undertake cumbersome

wind farm development

process

• Provides greater control

over execution timeline

• Control on value chain

from planning to

maintenance stages

• Leverages Suzlon’s deep

experience across Wind

energy value chain

Wind resource mapping

Site Identification

Operations & Maintenance services

Leverage capabilities

in International

markets

Reliance Energy

Tata Power

DLF

Bajaj Auto

PTC India

WTG and Component manufacturing

Site-development, infrastructure set-up &

WTG installation

British Petroleum

Land acquisition*

* Land acquisition business is mostly operated through associate concerns, not part of Suzlon value chain

MSPL

ONGC

Right product for each market

350 kW – 1.25 MW 1.25 – 1.5 MW 1.5 - 2.5 MW 2.5 – 3.0 MW

IndiaChina

USA/ Australia/ Brazil Europe

SuzlonREpower *

3.0 – 5.0 MW

Products spanning all capacities - sub-MW to Multi-MW turbines

Products spanning technologies - variable, semi-variable and fixed speeds

Product variants spanning climatic conditions and grid requirements

Ability to supply large volumes across various geographies

✚

Offshore

*

* Suzlon Group controls or influences, either directly or through voting pool agreements, approximately 89% of the votes in REpower

Robust Sales

Sales volume in MW

81

501

1336

508

883

955

976

FY05 FY06 FY07 FY08

International Domestic

Increasing Global Mix

CAGR 65.7%

1 USD = INR 42.54@ Does not inlcude REpower and Hansen

508 MW

964 MW

1,456 MW

2,311 MW

GLOBAL SALES > 6000 MW

INDIA >3900 MW

• Company overview

• Global Warming

Contents

Global Warming

Threat to World

GLOBAL WARMING is the increase of the Earth’s average

surface temperature due to a build-up of greenhouse gases in the atmosphere.

Effects of Global Warming

Rising Sea Level Increased Temperature

Habitat Damage and

Species Affected

Changes in Water Supply

Global Warming Mitigation with

Renewable Energy

Sources of Renewable Energy

• Wind Power

• Small Hydropower

• Solar

• Biomass

• Geothermal

Come forward to adapt and mitigate the

Climate Change with Wind Power

WIND Energy.wmv

Wind: a promising renewable energy source

2.5

3.5

4.5

5.5

6.5

Nuclear CCGT Coal Steam IGCC Wind

(US

cents

/ kW

h)

Wind: a promising renewable energy source

125

227

4

82

36

56

1

4

50% 60% 70% 80% 90% 100%

1990

2004

Biomass & Waste Wind Geothermal Solar

Source: IEA WEO 2006 / BTM Consult ApS WMU 2006

Source: IEA WEO 2006 * Generation in TWh

✔(72000 GW potential

estimated globally at 80m hub height)

✔(19.8 GW capacity addition

in 2007)

✔ (3-6 cents/kWh)

Wind Energy Status

Resource Availability

Established Base

Cost Competitiveness

Critical Success Parameters

Wind: Cost competitive with conventional Wind: Cost competitive with conventional powerpower

Wind: Cost competitive with conventional Wind: Cost competitive with conventional powerpower

Fastest growing renewable energy Fastest growing renewable energy source*source*

Fastest growing renewable energy Fastest growing renewable energy source*source*

Potential to power the futurePotential to power the futurePotential to power the futurePotential to power the future

Source: BTM Consult ApS WMU 2007 and Journal of Geophysical Research, 2005 : Stanford University

Source : American Wind Energy Association BTM Consult ApS World Market Update 2006

Compelling industry growth dynamics

Cost competitiveness

and hedging

Cost competitiveness

and hedging

• Improvement in yields (cost/ kWh)

• Cost / kWh of generation: US$ 0.03 - 0.06

• Wind Energy directly competing with conventional power

• Frozen lifecycle power cost for utilities

• Improvement in yields (cost/ kWh)

• Cost / kWh of generation: US$ 0.03 - 0.06

• Wind Energy directly competing with conventional power

• Frozen lifecycle power cost for utilities

Climate Changeand

Global Warming

Climate Changeand

Global Warming

Aggressive global targets

• Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012

• EU declaration: 20% from RE by 2020

• US: 21 States with 10% to 20% RPS mandates

• China targets 100,000 MW from RE by 2020

• India: 10 States with 2% to 10% RPO mandates

Aggressive global targets

• Kyoto Protocol: CO2 emissions to reduce by 5.2% of 1990s levels by 2012

• EU declaration: 20% from RE by 2020

• US: 21 States with 10% to 20% RPS mandates

• China targets 100,000 MW from RE by 2020

• India: 10 States with 2% to 10% RPO mandates

Energy SecurityEnergy Security

• Hedge against geopolitical risks - local and secured supply

• No risk of fuel price volatility

• Socially, ecologically and economically sustainable growth

• Hedge against geopolitical risks - local and secured supply

• No risk of fuel price volatility

• Socially, ecologically and economically sustainable growth

Increased Electricity Demand

Increased Electricity Demand

• Energy - key to economic growth in developing countries (India, China etc. require all sources quickly to bridge gap)

• Wind’s global electricity generation contribution expected toincrease from 0.82% in 2006 to 3.4% in 2030

• ,Energy - key to economic growth in developing countries (India(China etc. require all sources quickly to bridge gap

• Wind’s global electricity generation contribution expected to increase from 0.82% in 2006 to 3.4% in 2030

Zero carbon solution

Zero carbon solution

Local availability

Local availability

Abundant resource

Abundant resource

Zero fuel cost

Zero fuel cost

ConcernConcern DemandDemand CatalystsCatalysts

• Installations in 2007 : 19,791 MW (32% YoY growth)

• Cumulative installations: 94,005 MW in Dec ‘07

Cumulative installed capacity in MW Cumulative installed capacity in MW Cumulative installed capacity in MW Cumulative installed capacity in MW

Source : BTM Consult ApS World Market Update 2007* Average growth over 2004 2007

94,005

74,306

59,399

47,912

40,301

CY03 CY04 CY05 CY06 CY07

CAGR 24.1%

Strong historical growth

1,617

1,667

3,100

3,287

5,244

India

Germany

Spain

China

USA 35.7%

97.0%

21.2%

37.8%

10.2%

Average Growth *2007 Capacity Addition (in MW)2007 Capacity Addition (in MW)Capacity Addition (in MW) 2007Capacity Addition (in MW) 2007

• Company overview

• Global Warming

• Wind: a promising renewable energy source

• Harnessing Wind Energy in Nepal

Wind Resource Assessment

Govt. Policy & Support

Infrastructure Development

Contents

Basic Requirements

Wind Resource Assessment

Govt. Policy & Support

Infrastructure Development

Harnessing Wind Energy in Nepal

Exploring the Potential Wind Sites

Wind data Collection & Analysis

Wind Mapping of potential areas

Micrositing & Feasibility Study

Harnessing Wind Energy in Nepal

Wind Resource Assessment

Govt. Policy & Support

RequiredNational Renewable/wind energy policy providing

suitable measures for connectivity with the grid and sale of electricity like Hydro Power Policy

Purchase Obligation on Power distribution companies from renewable sources as percentage of total distribution

Purchase obligation on Captive (from conventional sources) power producers as percentage of total generation

Open access policy including nominal rates for Wheeling & Banking of wind energy to push captive market model & third party sale model

Harnessing Wind Energy in Nepal

Govt. Policy & Support

RequiredFiscal Incentives

Wind power PLF being lower needs special

attention from Govt. i.e. following fiscal incentives:

Introduction of Preferential Tariff for Purchase of Power

from wind power producers

Accelerated depreciation (i.e.80-100% in 1st year of

commissioning of project)

Generation Based Incentives

Import duty & tax relaxation for wind power

equipments

Interest Subsidy

Harnessing Wind Energy in Nepal

Providing land (revenue/forest) on lease

basis for 30 years

Accessibility to windy sites for transportation

of wind generator equipments

Power Evacuation/Grid at remote wind power

generation sites

Harnessing Wind Energy in Nepal

Infrastructure Development

Look forward for the support

from Govt. of Nepal and AEPC

to Harness the Wind Power in

Nepal

Harnessing Wind Energy in Nepal

Thank you

Corporate Office: Suzlon Energy Limited, 5th Floor, Godrej Millennium, 9, Koregaon Park Road, Pune – 411001, India. Tel: +91-20-40122000. website: www.suzlon.com

Sales Office Delhi, India: 9th Floor, Eros Corporate Tower, Nehru Place, New Delhi – 110019. Tel: +91-11-46506000.

Disclaimer :

“Information and terms mentioned in the presentation are Indicative in nature and solely for information purpose.”