Quantum Leap in Wind Role of Institutions and Regional Cooperation Chunhua Li

1. Quantum Leap in Wind Role of Institutions and Regional Cooperation Chunhua Li DGM Goldwind International 20-21 June 2011, Manila

2. 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 8200 wind turbines and 9.0 GW* • The Goldwind group of companies operates in a growing number of countries around the world in the areas of: • Wind turbine manufacturing • Project development and financing • Wind farm construction • Wind farm operation and maintenance services *As of April, 2011

3. Global Market Share In 2010, Goldwind was the 4thlargest wind turbine supplier globally, gaining significant market share over our number 5 rank in 2009 Significant growth: 2008 (4.0%), 2009 (7.2%), 2010 (9.5%） Source: BTM Consult March 2011

4. Direct Drive Permanent Magnet Wind Turbines Goldwind Permanent Magnet Direct Drive (PMDD) 1.5MW turbines are in operation at over 50 wind farms across China and the world 2010 annual installation was 2,328 units （3,492MW） More than 4,000 units (6,000 MW) installed globally as of April 2011 China’s first off-shore turbine manufactured by Goldwind (1.5MW) was installed in the Bohai Sea in 2007

5. What Does it take to foster a prosperous wind industry? Willing investors Government policies and incentives Supportive grid network operators Technical capabilities to develop, build and operate wind projects Financial capabilities of financial institutions, local and/or international Local participation Wind Farm Ownership Financing Manufacturing Construction Operation and Maintenance Community acceptance and understanding Role of Institutions 5

6. Government policy makers and regulators Industry policy and legislation Development targets and master plan Mechanisms and Incentives, e.g. FIT, REC, duty and tax, land subsidy, etc Role of Institutions 6

7. Role of Institutions • An example: • The integration of Government Policy and Industry in China • Number 1 globally for installed capacity in 2010 • Four Chinese wind turbine manufacturers in the global top ten Selection of key industrial sectors for national economic growth Building up of the domestic industry through incentives Growth of industry and increased ability to export and compete on global markets with high quality products

8. Technical capability Wind farm Development Site identification Site monitoring, and wind analysis Equipment selection Due Diligence Feasibility study Environment Engineering, procurement and construction Grid integration Operation and maintenance Turbine Research and Development Development of wind turbine models to suit special local conditions Cost reduction and optimization Role of Institutions 8

9. Financial capability Project financing experience Knowledge of wind industry Wind project due diligence capabilities Availability of funds and various funding mechanisms Appropriate pricing for “infrastructure asset class” debt and equity Strengthening of intermediaries for smaller scale investments Role of Institutions Wind projects are capital intensive with long periods of return; financial institutions need to understand and cater for such projects in their financing offerings 9

10. Role of Institutions • An example: • The institutionalization of financing policy in India • IREDA (Indian Renewable Energy Development Agency) established in 1987 as a non-banking, market-based company under the administrative control of MNRE (Ministry of New and Renewable Energy) • These financing schemes promoted the development of manufacturing, servicing and marketing infrastructure, enabling wind power technology to develop and prove itself as an attractive investment to commercial financial institutions.

11. International Cooperation How institutions can scale-up wind power at a regional level • Potential Activities • Provide forums for communicating policies and regulations • Set up networks to share information on supply and demand • Organize training programs and exchange visits 11

12. International Cooperation • Why regional cooperation is important for wind power development • Knowledge sharing • Learning from the experiences of other nations in implementing suitable policies, incentives and processes will fuel regional progress • Clear targets for wind power will push growth and competition, reducing costs to consumers • Training and education to develop ‘global citizens’ • Infrastructure sharing • Making use of regional resources • Increasing grid reliability and performance • Technology diffusion to attain competitive, high international standards • Capability sharing • Holistic and internationally supported research and development e.g. investigation into short-term wind forecasting, can be adapted and used to develop advanced technology • Power trade • Improvement of the regional economy and foreign trade balance

13. Conclusion • Asia has become the global number one region for wind power, and many asian companies are now active in the world market with global supply chains and international subsidiaries/cross border co-operation • Regional cooperation can increase the proliferation of wind power through shared experiences, policy, research, infrastructure and technical capabilities. • Institutions (Political, Academic, Technical and Financial) play a big part in the expansion of wind power. • Strengthened communication and building regional cooperation will provide a better understanding of wind power and accelerate its development.

14. Thank You Chunhua Li DGM, Goldwind International email: lichunhua@goldwind.cn