UK growth in small wind

1. UK growth in small wind Richard Caldow Field operations manager

2. Who Are Proven Energy • Global market leader in small wind (1.5kW to 50kW). Strong brand recognition • 20 years manufacturing (in Scotland) and installing turbines globally. • Robust, simple design – durability & reliability. Product certified to highest standards. • Over 3,500 installations in 60 countries. • Opening our North American headquarters in Elgin, IL this summer. • Servicing, training, assembly. • In excess of 30 million run hours annually • Contributing above 10% of global installed small wind capacity • Currently shipping in excess of 1MW per month • Customer base ranging from large companies to communities and individuals • Well-established international reseller network Company confidential

3. History • 1980 - Gordon Proven left nuclear industry to form Proven Energy - providing bespoke engineering solutions • 1985 – Designed first Proven wind turbine • 1992 – Installed prototype of down-wind model • 1998 – Proven Energy’s 100th installation in Africa • 2006 - LCA first investment • 2008 – 2000th install, LCBP funded, England • 2009 – Turbine on every continent • 2010 – first “megawatt month” Company confidential

4. Products Company confidential

5. Proven Energy Turbine

6. Technical advantages of Proven • Down wind • Unique passive speed and power control • No active yaw control required – turbines automatically point into wind • High yield in kWh pa – yield density. • Use of a direct-drive generator and thus no gearbox. Quiet and reliable • 54 / 70 m/s survival wind speeds. Company confidential

7. Markets and customers Company confidential

8. Certification – why certify? • Not a legal requirement in the UK but..... • Is required to access incentives - Feed in tariff, which is a generation tariff. • Standardised method of comparing turbines. • Normalised for tower height • Normalised for altitude. • Declaration of yield. RAE (ref annual energy) and AEP (annual energy production) • Peak or rated power is a poor discriminator. Wind speed / power curve shape.

9. Certification • In UK, to BWEA standards, tied with IEC61400 • IN US, to AWEA standards (also tied to IEC), reciprocal arrangements with BWEA • Testing done either by independent organisation or using own calibrated site, but under independent scrutiny. (BS17025) • Certification by accredited authority (BS 45011) • Requires power and performance, noise, safety and function, design file review and manufacturing process assessment (annually) • ALSO REQUIRES 6 MONTHS TROUBLE-FREE RUNNING and 2500 hours of power production.

10. Power and yield • Power is measured in kW and is the rate of doing work • Yield is the amount of energy and is measured in kWh • Think of a hose filling a bucket; the speed of the water coming out of the hose can be likened to power and the amount in the bucket can be likened to the yield • AEP is the estimate of the annual yield from a turbine based on the power curve (1 min average) of the turbine, the mean wind speed at hub height and the probability distribution. The bigger the AEP, the more there is in the bucket Company confidential

11. Probability Curves for wind Company confidential

12. Power Curve – Proven 35-2 Wind speed m/s at hub height Company confidential

13. Power Curve – Proven 35-2 Company confidential

14. Formal statements of power • Rated Power • 11m/s 1 min averaged data • Sea level air density • Proven 35-2 = 12.1kW • Peak Power • X m/s 1 min averaged data • Sea level air density • Proven 35-2 = 13.7kW • Instantaneous peak power • 1 second data • Sea level air density • Proven 35-2 = 17kW Company confidential

15. Games played with power • Unless power is stated in accordance with MCS and IEC61400-12, then beware! • Peak instantaneous power is often peddled as rated power • Averaging periods are ignored or foreshortened • Wind speed is omitted and may be very high • One company drew its power curve outside the instantaneous point! • AEP and Yield derived from anything but properly determined and specified power curves is suspect Company confidential

16. 5m/s Mean Wind Speed = 23,200kWh Proven 35-2 power curve Company confidential

17. 8m/s Mean Wind Speed 55,000kWh Proven 35-2 power curve Company confidential

18. 5m/s Mean Wind Speed 23,200kWh Company confidential

19. Power as a descriptor • Power is a poor descriptor of turbine performance • Peak power and Instantaneous power are meaningless in comparing yield • Power is vanity, yield is sanity Company confidential

20. MCS and FIT update • Three certified machines, 90 on TL • Seven completed the “matrix” - two are Proven Energy • Six Month rule now clear, no loss of FIT • One machine removed from TL for safety reasons (Coemi) • General agreement TL is a mess, and difficult to enforce • Future developments • TL demise on 31 December 2010, Extensions – ? • Version 3 of the standard to revise noise and include towers • Certification for > 200sq metres • Degression in 2012 and review in 2013 Company confidential

21. Installations of interest Corrour Railway Station – Rannoch Moor Proven Energy’s first installation in 1993, at Scotland’s highest railway station. The Proven 2.5kW was installed to power platform lights.

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