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2. Vestas in brief
2
The only global wind energy company
We employ around
16,000 people worldwide
and have more than 30
years of experience with
wind energy
16,000
We monitor almost
25,000 turbines, or
46,000 MW, day and
night and the data is
used for efficient service
planning and pre-
emptive maintenance
25,000
We have more than
51,000 turbines in 73
countries worldwide
spanning six continents
51,000
Vestas revenue at the
end of 2013 was EUR
6.1 billion
€ 6.1b
3. What do we do
3
Our business spans across both turbines and services
WIND
SOLUTIONS
SITE
SOLUTIONS
Expertise built from
30 years of wind
industry experience
5. 5
93
87
82
80
49
54
62
6455
58
75 76
40
45
50
55
60
65
70
75
80
85
90
95
2009 2010 2011 2012 2013
-2,2%
-5,4%
-6,6%
-0,4%
Coal
CCGT
Onshore wind
Sources: BNEF, Q3 2013 Wind Market Outlook, 09/2013; BNEF, Levelised cost of electricity update: Q2
2013, 05/2013; BNEF, Closing the gap: grid parity for onshore wind, 11/2011
Key takes
Decrease of average WTG
prices
Average capacity factor
increased
Scale of recent LCoE
decreases
Historic evolution of LCoE in
$/MWh (nominal; excluding subsidies)
Why wind?
Wind is competitive from a Cost-of-Energy standpoint
6. 6
Why wind?
Wind is competitive environmentally
Wind continues to be the lowest life cycle
greenhouse gas (GHG) emissions energy source.
Solar
Future
Solar
Present
BiomassNuclearCoal
Gasification
+ CO2
CCGT +
CO2
Combined
Cycle Gas
Turbine
(CCGT)
Wind
Carbon based energy forms Nuclear Non-wind renewables
Life-cycleGHGemissions(gCO2-eq/kWh)
Wind
Source: Singapore IEW Conference Key Takeaways, November 2009
0
50
100
150
200
250
300
350
400
7. 7
Why wind?
Water consumption – The water energy nexus
Source: DHI, 2007
Energy power
plant type
Average water consumed
(litres/5 MWh)
Wind power 5
Natural gas 5 000
Coal 10 000
Nuclear 12 500
Oil 20 000
Hydropower 340 000
Biomass for bio fuels 890 000
Water consumed to produce five MWh of electricity:
Wind uses 1/1000 water of the 2nd best ranked energy source
8. 8
Why wind?
Wind has a fast ramp up time
Sources: FPL Energy 2008, IEA 2008, EWEA 2009
With 2-5 years per site, wind has the shortest
ramp up time of any renewable source:
9. 9
Why wind?
Wind is clean
Sources: FPL Energy 2008, IEA 2008, EWEA 2009
A Vestas turbine alone is carbon neutral after only seven months of energy production;
during its lifetime it saves the atmosphere from 220,000 tons of CO2
As green as it gets
80% of a V90-3.0 MW turbine and 85% of a V112-3.0 MW turbine can be recycled
10.
11. 11
Wind for Prosperity is an ambitious corporate initiative to bring
scalable renewable energy to poor, rural communities
Deploying proven technology
Deploying factory refurbished
proven wind energy technology
where it can make a positive
impact
Awareness to drive growth
Raising global awareness and
engagement in Wind for
Prosperity through sharing the
good stories
Going beyond the donor model
Scalable business model with fair
returns for suppliers and investors
and competitive energy price
Provide access to
electricity for
developing communities
based on wind energy to
drive substantial
prosperity acceleration
The Opportunity The Ambition The Solution
BILLION
LIVING WITHOUT
RELIABLE ACCESS
TO ELECTRICITY
ELECTRICITY
IS NEEDED FOR RURAL
COMMUNITIES TO PROSPER
MANY REMOTE AND POOR
AREAS HAVE VAST UNTAPPED
WIND
RESOURCES
12. 12
We offer a unique and proven deployment concept… …to challenged communities with good wind*
Our vast wind database and simulation
capabilities allow us to deploy with
minimal wind measurements
We deploy factory-refurbished turbine
models especially selected for
robustness and affordable transport
We integrate the solution into state-of-
the-art diesel integration system
designed to minimise base-load fuel
and maximise wind penetration
We establish local entities and involve
local developers to ensure the most
efficient deployment in each country
Our goal is to commercially deploy the technology to 100 communities living in energy poverty by 2016
Wind for Prosperity centers on a creative, low cost, scalable
solution to communities with attractive wind resources
Tanzania Philippines Mauritania
Vietnam Indonesia Honduras
* India, Mongolia, Ethiopia, Myanmar, South Africa, Nicaragua, Laos, Madagascar, Haiti, Bangladesh, and Afghanistan
Source: Vestas analysis
13. 13
Impact: Access to reliable energy enables a broad range of
breakthrough applications (key examples)
HEALTHCARE WATER EDUCATION
Life-sustaining
equipment and lighting
for hospital
Cooling facilities for
food and medicine
Sterilisation equipment
that improves hygiene
to reduce outbreaks
Household refrigeration
for improved nutrition
Automated water
pumps
More wide-spread use
of efficient water
purification systems for
improved sanitation/
hygiene
Irrigation systems for
more efficient farming
Electrification of a
variety of businesses/
factories to promote
job creation, e.g.
simple processing,
craftsmanship, cold
storage/refrigeration
Local entrepreneurship
programmes around
starting small
businesses that benefit
from reliable access to
electricity
Community-wide
lighting that enables
increased study time
Community-wide
adoption of
communication
equipment (radio, TV,
mobile devices, etc.)
providing increased
access to information
ENTREPRENEURSHIP
Source: World Bank (2008): The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits, An IEG Impact Evaluation.
14. 14
Identifying clusters of sites critical to economies of scale;
approach is to tap into local rural electrification schemes
Kenya Example: Concession for 13 sites in the
government’s rural electrification program
Sites (population estimate)
Ministry of Energy
• Approves of model and
approach
• Grants licenses
Local agencies
• Investigates and
researches sites
• Community
development
Kenya Example: Local collaboration model involving developers,
operators and local authorities
KPLC***
• Handles power
distribution,
connections,
metering
REA***
• Plans and funds
construction of
"mini grid" for
distribution
Local developers
• Identify wind sites
• Apply for permits
• Conduct environmental and
social impact studies
Other local stakeholders
• Transport
• Construction
• Security
Local IPP
• Deploys and
services power
solutions
• Local staff
Lokichog
io
(17'700)
Kakuma**
(80‘000)
North
Horr*
(8'400)
Baragoi*
(8'000)
Mandera
(57‘700)
Elwak
(24‘400)
Wajir
(16‘800)
Dadaab*
(5‘700)
Liboi**
(11'000)
Hulugho*
(20‘800)
Kiunga*
(3‘300)
Faza
Island*
(4‘200)
* New off-grid station planned or under implementation by REA
** Additional off-grid stations as per rural electrification master plan
*** REA is Rural Electrification Agency, KPLC is Kenya Power and Light Company
Source: Kenya MoE list of off-grid stations; Vestas Analysis
15. 15
We have identified a number of very attractive options to
pursue further in our ambition
Tanzania Philippines
Mauritania
Vietnam
Indonesia India Mongolia
National islands with access
to wind; aggressive rural
electrification targets; >20%
of power supplied via IPPs
Strong wind beyond national
grid; 16 operational diesel
mini-grids; attractive off-grid
wind tariff
Remote islands with good
wind 350MWs of diesel mini-
grids in operation; long
tradition for IPP model
Strong winds identified;
financial subsidies and
technical support for isolated
grids; attractive feed-in tariffs
Good wind conditions in
coastal areas; ~20MWs of
isolated mini grids in
operation; IPP model mature
Intense need for affordable
rural electrification; large
stock of re-deployable V27
models in the market
“Soum centres” at windy
sites; one of the reserve
countries for the 2013 World
Bank SREP; off-grid FiTs
Other countries presently under consideration include Ethiopia, Myanmar, Pakistan, Yemen, South Africa,
Nicaragua, Laos, Madagascar, Haiti, Bangladesh, Zimbabwe and Afghanistan
Honduras
Access to strong winds;
isolated diesel mini-grids
operated by independent
companies; IPPs common
17. Copyright Notice
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