Vestas, more than a decade producing offshore wind energy Your low risk choice for offshore sites

Bilbao Marine Energy Week 2013

Agenda

1. Introduction to Vestas Offshore 2. Experience to optimize energy production and reduce operational costs

3. Reliability key aspect for offshore sites 4. Project Execution, 5. Taking the next step 6. Summary

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Bilbao Marine Energy Week 2013

Introduction to Vestas Offshore

1

Vestas history in offshore More than 20 years of experience A pioneer in offshore • Active in offshore wind energy since 1990 • 100% dedicated business unit with +300 employees working solely with offshore in: • UK, Germany, Denmark, Belgium & Netherlands Market Focus: Northern Europe • Strong presence in the UK • Strong presence in Germany Technology • V112-3.0 MW offshore version • V164-8.0 MW in development

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Bilbao Marine Energy Week 2013

Vestas Offshore Most experienced in offshore project execution Experienced and flexible in-house competences •

Project planning and execution, HSE and QA experts

•

Technical design and interface management

•

Marine specialists, supply chain and subcontractor management

•

Site managers & offshore specialist WTG technicians

External partnerships

5

•

Transport and logistic providers

•

Ports, Cranes and equipment, Vessels

•

WTG technicians

Bilbao Marine Energy Week 2013

Vestas Offshore – installed 38 pct. of global offshore capacity Track record: 581 turbines / 1.409 MW

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Bilbao Marine Energy Week 2013

A trusted investment – also Offshore Several hundred MWs of V112-3.0 MW are ready to be installed

e.on’s Kårehamn, Sweden: 16xV112-3.0 MW (Installation 2013) >> Signed firm December 2011 e.on’s Humber Gateway: 73xV112-3.0 MW UK (Installation 2013) >> Signed firm December 2011 Northwind’s Offshore park, BE: 72xV112-3.0 MW >> Signed firm June 2012 Eneco’s Q10, NL: 43xV112-3.0MW >> Preferred supplier since November 2011

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Vestas Offshore portfolio From kW-turbines to multi-MW flagships

V39-500kW V80-2.0MW 8

Bilbao Marine Energy Week 2013

V90-3.0MW

V112-3.0MW

V164-8.0MW

The current offshore portfolio Your ideal choice for immediate use at low-turbulence offshore environments

IEC III IEC III

IECIEC II II

IEC I

V112-3.0 MW OFS (IEC IB)

V112-3.0 MW ONS

V164-8.0 MW OFS (IEC S)

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6.5

7

7.5

8

8.5

9

9.5

10

10.5

11

Max. average wind speed according to IEC [m/s]

 9

Max. annual average wind speed: 12 m/s

Bilbao Marine Energy Week 2013



Temperature -20˚ C to +35˚ C

Experience to optimize energy production and reduce operational costs

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Offshore design Optimized to be a low-risk option for offshore conditions OFFSHORE ROBUSTNESS For harsh conditions at sea

OFFSHORE POWER For no risks at sea

SERVICABILITY & SAFETY For improved serviceability

•Extremely robust Nacelle design – ability to close air intake holes and service hatches

•Adapted rating

•60% increased space in nacelle vs. earlier models

• Applying the learnings from the V90-3.0 MW experience

11 V112-3.0 MW Offshore

•Adapted turbulence class •Optimized rotor speed – balance between energy production and loads is a key factor for sucess

•Majority of components plug-&-play for easy exchange •Components designed with first-in-kind virtual reality tool for optimized service

Offshore Serviceability Achieved with unique tool for service-optimized hub design and maintenance manuals

 Virtual Reality helps you make sure that service technicians can perform their jobs safely  Visualisation and simulation technique allows Vestas to communicate and move knowledge much faster to you  First nacelle designed with technicians in the Virtual Reality Centre to ensure good working environment (easy access to tools, enough space to do service, etc.

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Offshore turbine controls For lower Balance of Plant costs

Keeping foundation costs low  Advanced control algorithms (Load Management System) reduce the loads  Low top head mass reduce the dynamic loads

Reduced substation cost  Full converter reduces the substation size and cost by often eliminating need for StatComs and switched capacitors

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Reliability, Key aspect for Offshore sites

3

Testing at Vestas and the V112-3.0 MW Vestas’ turbine testing massively increased since earlier released Vestas turbines

Capacity Ramp Up (total hours of testing) Global Footprint

DENMARK : Drivetrain / Electrical / Materials / Software

250000

UK : Rotor ( blade & bearings ) 200000

achieved Test Centre

planed 150000

Test Centre

Test Centre

150 Engineers 50 Test Rigs 4 WTG Test Sites 250 MEuros Investments 12 000 sqm

100000

Test Centre

INDIA : Components / Software

50000

USA : Electrical ( Generators )

0

2007

2008

2009

2010

2011

2012

2013

Testing Capability Ramp Up (MW)

Vestas Test & Verification Capability ramp up follows new platform development but also higher reliability ambitions on newer products

kW

2 MW

3 MW

8 MW

Components: Gearbox – Generator – Converter – Transformer – Climate/Halt Chambers, Material Labs – Electrical/Electronic Labs – Software – Blades – Bearings Cylinders Pumps – Valves 15 Bilbao Marine –Energy Week 2013 – Gears …

To Deliver Robust & Reliable Wind Turbines

Verification testing of complete nacelles Vestas assess reliability based on facts – not specifications

COMPONENTS

Testing of +20 main components, incl.  Generator  Gearboxes  Blade & main bearings  Yaw gear  Converter

SYSTEM

Testing of +15 systems, incl.  Drivetrain  Wind park control  Rotor & Hub  Pitch actuation  Conditioning & cooling  Power conversion system

INTEGRATION

Testing of integration, i.e.  Nacelle assembly test  Generator & converter integration  Drivetrain system integration

 Bottom-up testing strategy with several test types to measure robustness, reliability and performance

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Field testing, i.e.  Run in tuning  Power curve  Grid compliance  Loads  Noise  System validation 6 MW engine

 Vestas validate the reliability on our turbine components by using accelerated life time tests.  Three international Vestas Test Centers uses field data to replicate real-life conditions.

FIELD

Gearbox under test Generator

Radial and bending load setup

Slave gearbox

Thorough testing leading to minimal lost production on site Thoroughly tested and based on existing fleet, the V112-3.0 MW will profit from Vestas’ learnings

Lost Production Factor of Vestas’ installed fleet, all models, offshore and onshore (%)

Lost Production Factor is… •Showing the % of MWh lost due to turbine down-time

5

•Impacted by: - thoroughly tested quality - improved design - optimised service - turbine monitoring - optimal siting - spare-parts logistics

4 3 2

•Higher in the start-up phase of a product and each park than over the whole life-cycle

1 0 2009

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2010

2011

Evolution of Vestas Offshore Fleet Vestas Offshore Fleet Lost Production Factor (LPF)

18 18

Bilbao Marine Energy Week 2013

Evolution of Vestas Offshore Fleet

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Vestas Offshore and Safety People before Megawatt - uncompromised Respect for health, safety and the environment is critical to our operations, and we take pride in our uncompromising, proactive approach to it – and our safety performance record of our offshore operations is the proof of this Vestas’ philosophy on health, safety and the environment is founded in three basic principles: Educate, Sustain and Develop supported by our drive towards a zero-harm culture Vestas’ offshore safety performance record Industrial Injury Frequency*

25 20

ZERO HARM WORKPLACE

15 10

9,4 4,5

5

5,6 5.8 3,75

5.3

3

3. Develop

0 2008

2009

2010

2011

2012 1H

* Number of injuries (with more than one day of absence besides the day of injury) per 1,000,000 working hours

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Project Execution Thanet. 100 turbines in 100 days

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Thanet Offshore Wind Farm 100 turbines in 100 days

Project

Customer: Size: 300 MW Exp. annual prod: 1.000 GwH Vestas Scope: 100 WTGs incl. installation & comm. 100 Towers & Parts • Site specific designed tower • 54.101 m (70m Hub height) • 2 sections • Tower bottom diameter: 4.3 m 100 Nacelles & Parts • V90-3MW, Mk9 • SCADA (Supervisory Control And Data Acquisition) system O&M contract • Service contract for 5 years + option of another 5 years Location: 11 kilometres off the coast of Kent, England 22

Bilbao Marine Energy Week 2013

Thanet Offshore Wind Farm 100 turbines in 100 days

Overall Construction

Start at pre-assembly site: Completion of commissioning: Total duration: Excl. weather

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Bilbao Marine Energy Week 2013

Period 6 Sep 09 9 Sep 10 368 days 277 days

Thanet Offshore Wind Farm 100 turbines in 100 days

Pre-assembly

Period:

15 Nov 2009 – 4 June 2010 (incl. weather – 91d)

9 towers completed in 9 nacelles completed 9 sets of blades prepared and stacked

9-12 days 9 days 4 days

Loading of vessel 9 towers, 9 nacelles with hubs, 27 blades in stacking system in 34 hours

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Bilbao Marine Energy Week 2013

Thanet Offshore Wind Farm 100 turbines in 100 days

Erection

Period 4 Dec 2009 - 24 June 2010: Weather downtime: Transit / loading time in Dunkirk:

202 days 87 days 32 days

Actual installation time for 100 WTGs:

83 days!

Fastest turnaround (Harbour - erection of 9 turbines – harbour): Fastest erection of a turbine: Jack down to jack down:

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Bilbao Marine Energy Week 2013

8 days 5 h, 44 min 12 h

Thanet Offshore Wind Farm 100 turbines in 100 days

Commissioning

Period 28 Feb 2010 - 9 September 2010:

Weather downtime (until 9 Sep 2010):

193 days

99 days

Actual Commissioning time for 100 WTGs: 104 days Grid Commissioning excl. weather:

50 days

“Considering the Thanet site conditions, the V90 turbine was the obvious choice. We have enjoyed working closely together with Vestas to deliver worldclass project performance at Thanet, and will definitely consider Vestas for any future projects.” Ole Bigum Nielsen Project Director, Vattenfall

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Bilbao Marine Energy Week 2013

Taking the next steps

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Taking the next step… •

Providing Business Case Certainty • • • •

•

Lowering the Cost of Energy •

• •

•

Service offering delivering yield based guarantees to customers A competitive product offering that has gone through state-of-the-art testing program Vast experience in executing offshore projects – on time, on budget, at top quality standards Best-in-class operational experience and innovative mindset

The V112-3.0 MW Offshore is designed to optimize your energy production and reduce operational costs Developing the V164-8.0 MW based on 1,4 GW installed offshore capacity and optimized to lower your Cost of Energy Long term service agreement tailored to our customers requirements

Vestas Partnering with our customers • •

Offshore wind is a high-stake game with Vestas partnering with our clients to mitigate risks and share experience across the value chain Our aspiration is to be ‘Easy to work with’

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The V112-3.0 MW Offshore The flagship in Vestas Wind Systems product portfolio Combining best of Vestas platforms…and adding more Based on proven design from the existing Vestas fleet • Vestas Cooler TopTM • Pitch System • Blade • Drive Train • Yaw System …with some improvements • Permanent Magnet Generator • Full Scale Converter • Designed for serviceability with 60% increased work area, modular design and designed for 1 year service intervals …and encouraging market feedback • By Aug 2012 Vestas had sold more than 3GW V112-3.0 MW On- and Offshore. • Vestas offshore has signed orders or is in exclusive negotiations for several offshore projects with V112-3.0 MW for more than 600 MWs.

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More than 3 GW sold The combination of high returns and low risk have already made V1123.0 MW an industry favourite, with more than 3 GW sold.

The V164-8.0 MW

Prototype installation in Q1 2014

For offshore leaders Specifically designed to reduce offshore costs Main dimensions Blade length Max chord (preliminary) Nacelle (incl. hub and coolers) Height Length Width

80 m 5,42 m 7,5 m 24 m 7.5 m

Weights (± 10%) Nacelle with hub Blade (each) Tower (HH 107m)

375 ton 35 ton Site dependent

Rotor Rotor diameter Swept area

164 m 21.124 m2

High rated power  Lower CAPEX and OPEX Larger rotor diameter  High Energy Capture Bilbao Marine Energy Week 2013 30

Offshore – a key part of the future Almost half of the MW installed in Europe from 2015 to 2020 is expected to be offshore.

The V164-8.0 MW For offshore leaders

http://video.vestas.com/1499321.ihtml

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Summary

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Vestas Experience More than a decade producing offshore wind turbine energy

Lost Production Factor has been reduced an order of magnitude in a constant improvement process that have taken more than five years.

Availability and MTBI has been dramatically increased in the same period. The changes of these variables are not continuous because of the effect of fleet size and particular solutions to particular problems.

Safety index has been improved three times due to procedures improvements

Design of new machines for offshore marked should be based on experience.

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Thank you for your attention

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