3. Why wind?
Today wind has what it takes to meet energy demands of the future
1
3
Competitive – low cost of energy
Ramp-up-time, years
Cost of Energy, USD/mwh
0
50
Fast – short ramp-up time
100
150
200
250
300
0
Coal and gas
3
4
5
7
8
9
Hydro
Solar
Biomass
Predictable – business case certainty
4
Clean – few emissions, no water usage and 85 % recyclability
GHG-emission, gCO2/kwh
Indicative wind business case
- Predictable revenue
ROI
- Stable costs
0
100
Water cons., liters / 5 mwh
200
0
Wind
Wind
Nuclear
Solar
Biomass
- Proven technologies
Coal
Coal
Nuclear
Business Case Certainty
5
Independent – stable electricity supply
- No borders
- No wind scarcity
- No geopolitical disputes
Power Independence
3
6
Solar
Biomass
2
2
Wind
Wind
1
Note:
Sources:
* Minor water usage for cleaning purposes in wind and solar energy
New Energy Finance (2009), Singapore IEW conference (2009), WEF (2009), EWEA (2009), Vestas Global Marketing & Corporate Relations department.
10.000
20.000
85%
4. Fair Comparison: Wind is clearly the more attractive option
Cost of Energy (averages)
•
The benefits of wind energy
• Predictable
• Independent
• Fast
• Clean
• Competitive
Decommissioning
Social cost
Environmental cost
OPEX
CAPEX
•
Onshore wind energy
4
Nuclear
Wind has the lowest external
costs of all energy
technologies
Fossil fuels
Source: Direct costs compiled from EER 2009 and 2010 and IEA 2010. Indirect costs compiled and/or calculated based on data from EPA
2011, World Bank 2011, and Stern Review 2006. Fossil fuel data based on supercritical coal and CCGT gas technologies. Wind energy data
based on onshore wind plants. Nuclear data is pre-Fukushima, based on new-build using generation III technology.
5. Water savings with wind
Throughout its full
lifecycle, wind energy uses
less water than other power
generating technologies
require just for electricity
generation.
According to the LCA of the Vestas V112
turbine, the total water footprint amounts to
27.7 l/MWh – corresponding to 4% of the water
needed to generate 1 MWh in a wet-cooled
Natural Gas Combined Cycle (NGCC) plant*
* Data does not account for the water required to build the
gas plant or for the water consumption of gas extraction and
processing.
5
6.
7. Wind energy already benefits Colorado
Wind energy already installed in Colorado avoids carbon emissions
equivalent to taking 715,000 cars off the road and saves
1,490,000,000 gallons of water per year.
Colorado has been a leader in wind energy: 11% of the state’s
electricity mix is supplied by wind.
There are over 4,000 Coloradoans employed in wind energy in 17
factories and the industry has invested over $4 billion of capital
investment into the state.
Wind industry pays $7.5 million each year to landowners who lease
their property for turbines.
7
9. Made in the USA
Blades, towers and nacelles
Vestas established four North American
manufacturing facilities in Colorado as
well as other operations to support the
business, including a regional spare
parts and tools warehouse in Denver.
By building and centrally locating its
North American factories, Vestas’
customers, business partners and
suppliers benefit from lower logistical
costs, improved response time and
customized solutions.
Today, over 70% of a Vestas wind
turbine is made domestically. In
addition the factories have exported
components to Mexico, Canada, Brazil
and Europe.
9
COLORADO
10. Industry-leading track record in turbine development
Vestas’ track record of turbine evolution over 33 years is unmatched in the wind industry
8.000
10
11. Vestas is reducing the
Cost of Energy
Higher
Energy
Production
Lower
CAPEX
Vestas
initiatives
reducing Cost
of Energy
Dedicated low wind designs: A modern V100-1.8
produces 18% more energy compared to a V902.0 MW at 7.0 m/s on a 100 MW site
Flexible Load & Power Modes ensure maximum
production on complex sites
Lost Production Factor for Vestas turbines has
continuously declined and is now below 2%
The continuously increasing capacity of our
turbines results in fewer
foundations, roads, cablings etc. for MW
constrained sites
Advances in load control has lead to lighter
towers and smaller foundations
Lower overall park maintenance cost on MW
constrained sites due to fewer turbines to
maintain and twice as long service intervals (once
per year compared to previously every 6 months)
Vestas cutting edge offerings SiteHunt® and
SiteDesign® reduce uncertainty in the wind
resource assessment and guarantees that our
customers get the maximum possible output from
each turbine
Lower
OPEX
Business Case
Certainty
11
12. Energy Transparency: Changing the world’s energy mix
The Energy Transparency Initiative brings a
novel perspective on the interface between
climate change and the corporate world.
Shedding light on how the private sector is part
of the solution to climate change, not the
problem, the Energy Transparency Initiative
reaches out to consumers, corporations, and
institutions to incite much needed action on
climate change.
A growing number of private-sector players have
already embarked on this journey to a more
sustainable economy. Through the Energy
Transparency campaign, Vestas has set out to
recruit new corporate pioneers for this journey.
85% of consumers worldwide
want more renewable energy.
62% of consumers worldwide
would prefer to purchase
brands produced using wind
energy.
Source: 2012 Global Consumer Wind Study
12
13. WindMade™
By Vestas for the people
WindMade™ is the first global consumer
label that identifies products and companies
made with wind energy.
“WindMade is
probably the most unique
communication innovation
made in the wind business
in the last 30 years.”
The objective behind WindMade is to drive
demand for wind power, to boost investment
and growth of the renewable energy market.
Denise Bode
Former AWEA CEO
Developed and funded by
Vestas, WindMade is today its own NGO
with more than 70 members.
Pioneer WindMade companies include
brands such as Motorola, LEGO and
Deutsche Bank.
13
14. Susan Innis
Senior Manager, Public Affairs
(303) 655-5534
suinn@vestas.com
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Editor's Notes
EXPLANATIONWhen you include all of the actual costs into the calculations, wind energy can be a competitive power source – and already is in some casesThe graph shows average direct and estimated indirect costs for fossil fuels, wind energy and nuclear powerThere is a large variability hidden in the data, however there is little doubt that the indirect cost components play a significant role for fossil fuels and can play a potentially large role in the case of nuclear energyNotesSocial costs focus mainly on health costs relative to air pollution (doctor and hospital visits, medications, lost work time and income, loss of productivity, potential costs associated with an accident at a power plant)Environmental costs encompass environmental effects in general plus climate change (damage to the environment and the costs imposed by this on agriculture, fishing and forestry, in recreational and residential settings, cost to buildings and others due to corrosive air pollutants, effects of climate change such as increased extreme weather and the associated economical consequences, etc)WARNINGIndirect costs are extremely difficult to estimate correctly, but because of this they are generally underestimated
Vestas invested $1 billion to establish four North American manufacturing facilities in Colorado as well as other operations to support the business, including a regional spare parts and tools warehouse in Denver. Vestas employs more than 1,200 people in Colorado. The vast majority of Vestas’ workforce in Pueblo, Brighton, Windsor, Walsenburg and Limon come from the surrounding communities.Vestas supplied its first Colorado-made turbines to a RES Americas project, Cedar Point, in 2011. Vestas last delivered turbines in 2012 to Busch Ranch — 16 V100-1.8 MW — near Walsenburg.By building and centrally locating its North American factories, Vestas’ customers, business partners and suppliers benefit from lower logistical costs, improved response time and customized solutions. Vestas closely works with multiple component suppliers in Colorado, some of which include: Hexcel (Windsor); Walker Component Group (Denver); Zimmerman Metals (Denver); Crescent Electric Supply (Denver); Grainger (Denver); Composites One (Denver); Graybar (Denver); Aluwind Inc. (Castle Rock); Bach Composite (Fort Lupton); MSI Tec (Centennial); PMC Hydraulics (Golden); SGB USA; (Golden); Creative Foam (Longmont); Specialty Products Company (Longmont); Advance Tooling Concepts (Longmont); and Fort Collins Plastics (Fort Collins).
Cost of Energy is dependent on local conditions, so each project will have a different cost of energy. We cannot control all the costs of a wind energy power plant, but we offer a variety of wind power plant solutions that can lower costs or increase the amount of energy produced.Costs are always project specific. But on average, the cost of onshore wind energy is falling over time, as a result of constant improvements of turbine design, thorough monitoring and testing, improving plant design, new installation methods, new O&M concepts, productivity gains (manufacturing), and not least increasing turbine and rotor size, and the scale of wind projects.Vestas is reducing the cost of energy by using innovative technology to enable higher energy production while lowering capital and operational costs. Making wind turbines more productive and offering cutting edge services has led to lower cost of energy.Experience and economies of scale – increasing installed capacity – leads to lower costs, and more jobs. The IEA, generally a conservative source when it comes to wind power, sees onshore wind costs falling 7% with every doubling of cumulative installed capacity, and offshore wind costs falling 9% with every doubling of cumulative installed capacity. Other sources quote higher learning rates.The cost of energy for offshore wind has, in contrast to onshore costs, risen in recent years, as we go further and deeper offshore, and develop new products made specifically for the offshore environment. These new frontiers and novel concepts mean increased costs now, but as we learn what works best and focus on that, costs will also start decreasing.Vestas lowers costs by offering a solid, reliable and predictable product, by constant improvements of turbine design, thorough monitoring and testing, improving plant design, installation methods, new O&M concepts, productivity gains (manufacturing), and not least increasing turbine and rotor size, the scale of wind projects, and products such as Power Plant Solutions.Design/Test: Vestas’ test centers are the largest of their kind in the world. By identifying the conditions under which turbines operate in the field, Vestas designs tests that subject components and systems to real-world forces. These tests enable Vestas to predict component lifetimes and to modify designs or production process if components do not meet stringent requirements. This strategy enables us to ensure product reliability throughout the life of a wind project. Manufacturing excellence: Six Sigma Quality in Manufacturing. In 2010, Vestas achieved 5 sigma in its tower, control system and nacelle factories. Vestas has implemented a global quality data system at our factories that collect electronic "live" quality data from the production line and tracks statistical process control. Vestas has introduced a CTQ program which extends beyond the factory door and maintains quality through transport, erection, and commissioning. Performance monitoring: Vestas monitors more than 16,000 installed turbines around the globe in real-time and captures the largest dataset of turbine performance characteristics in the industry. By comparing how one turbine performs to similar turbines in similar conditions, Vestas can identify patterns and react. Based on past performance data, predictive models are utilized to identify potential failures before they occur. This information allows the service organization to plan and execute the required maintenance work before the component breaks down, thereby ensuring high availability. Source: Vestas Government Relations
