WindSheep Software for the wind turbine placement

1. WindSheepSoftware for the wind turbine placement Elena Aguzzoli (870244) Joao SiopaSilva (870368) YangjinJo (870131)

2. Summary • Description of the product • Tecnicalaspects • Market analysis • Market decision • Laborcosts • Calculationof investments and Depreciationcosts • Financingcosts • Self costs • Price definition • Profit and loss account (2years), profitability • Cash flow • Conclusions

3. Description of WS • WindSheep is a software that calculates the best position for a wind power-plan in term of electricity production • It’s a objective instrument to make an evaluation of the profitability of the place of interest in term of electricity production • The advantage is to be cheaper than a single study over the territory of interest • WindSheep gives as output all the necessary information for the power plan building without asking to any company • The software will be cheaper than the competitor and more specified because the production is at first only for few strategic countries

4. Technical aspects • Using ArcGIS, a geographic information system (GIS) for working with maps and geographic information, is possible to build a script which, using the desired inputs, gives geographical results. • In the mentioned product, regarding the Wind Energy, the input would be maps containing, for example, the follow information: • Meteorological forecasts of wind speed and direction; • Ground altitude (on shore applications); • Bathymetry (off shoreapplications); • Big electricityconsuming centers (cities); • Connection points to the electrical grid; • Wind turbines industry /manufacturing buildings. • Combining all these maps in ArcGIS results in a single map with which the user can do a search choosing characteristics he is interested in (f.e. places with wind speeds higher than 20 m/s; with a maximum distance from the closest electrical grid point of 10km…). • Using programming software, as JAVA or Python, all the information mention above could be integrated and a user friendly software is created: with a simple layout to do the search and a fast and simple presentation of the results

5. Market Analysis • There are several software for the windpowerplan building like Homer or WindFarmbutthe difference of WindSheepisthatourproductwillcollaborate directly with the biggest producer of wind turbine in the world and the GWEC • WS will focus at first on the developing countries like India, Brazil, South Africa, China that are the more profitable as the tabella shows • The global wind power market grew by about 6% compared to 2010, and the 40.5 GW of new wind power brought on line in 2011 represents investments of more than €50 billion (about $68 billion). • The US market recovered, Canada had a record year, and Europe remained on track to meet its 20/20 targets. Offshore installations in Europe decreased slightly last year, but  capacity in Romania, Poland and Turkey increased, as did the German market.  • The new global total at the end of 2011 is 238 GW, representing cumulative market growth of more than 20%, an excellent industry growth rate given the economic climate, even though it is lower than the average over the last 10 years, which is about 28%. • The main drivers of growth in the global market are the Asian powerhouses of China and India. While the era of double and triple digit growth in China’s wind market is over, it still represented about 43% of the global market, and India posted yet another year of record installations; the two countries together accounted for just over 50% of the global market in 2011. • Brazil is beginning to boom, and along with Mexico will be the major growth markets in the coming years. South Africa has finally taken the decision to get into the wind market in earnest. • For the second year running, the majority of wind power installations were outside of the OECD, and this is a trend which is likely to strengthen even further in the near future. India moved up to third place in terms of annual market share last year, and consolidated that position in 2011, and is likely to start its march up the cumulative table, surpassing Spain to move into fourth place by the end of 2013.

6. Global Wind Energy Council • GWEC’s policy development and advocacy work is driven by a desire to maximize the economic, industrial and environmental benefits of wind energy globally. GWEC is actively engaged in numerous international activities and programs with a wide range of stakeholders including governments, multilateral institutions and civil society to meet its mission. • source: http://www.gwec.net/about-winds/policy-work/   • Our product is a cooperation between our company and GWEC. It is in GWEC's best interest to promote and invest in the Wind Energy Sector supplying tools for the development of this sector. Our company has the capacity to build this software and the interest of receiving a financial support • This partnership results in a financial investment of 14% from GWEC, with subsequent promotion of the software. GWEC will receive a free license of the software every year, and their name will be present in the software.

7. Worldwide overview Wind power plans is present today in over 75 countries, with 24 countries having more than 1,000 MW installed. As can be seen, the biggest concentration is in Europe and this gives a good prospective of profit for our product because it will be the key to insert in the market of the developing countries.

9. The Company will send out one version of the product per year. It will be available on the 1st of January using the data collected during the jear passed • Every company or privat investor can buy a single licence for the program and every year buy a smaller licence to update the old version to the new one, in this way the company enstabilish a relationship with the buyer that lasts longer than a single year • A part from the three member of the company will be needed the help of two informatics engineers for the designing of the software • The headquarters of our company are in Cologne, Germany. Windsheep is sold online worldwide, in a website created by our company. Taking this in consideration, the VAT and taxations will vary for each country. For this study we will consider the German VAT and taxation. Market Decision What the company wants to do to make WS a successful product

10. Labourcost • The most of the labour will be done by the three partner and there will be needed only 2 informatic engineer for design the website of the company and the product WS • The engineer will work without shift and with flexible time but with a previously agreed deadline

11. Calculation of total investment and depreciation costs

12. Financial CostsSelf Costs • The company willreceive an investment from the Global Wind Energy Council of 30% • The self investment of the partnerswill cover the rest of the totalcosts with ownsmoney

13. Cash flow The estimate price for a new software license is 75euros. A license update costs 30euros.

14. Conclusion • Our study concludes that the mentioned product it's not financially feasible in the first year with a non-profit of -4638,4 , regarding all the investment in the company. In the second year we start receiving profits, because the initial investment is already made, we have a small investment regarding the update of the software. • We expect a large investment in the developing countries with great wind resources, which have small Wind Energy capacity, in new wind farms projects. • This software will open, and make easier, the investment in the Wind Energy Sector from private companies, while providing a fast conclusion on where to invest

15. References • http://enfor.dk/references.php • http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2012/06/HOMER-Software-Training-Guide-June-2011.pdf • http://www.state.nj.us/treasury/purchase/pdf/ESRI_Price_List.pdf • http://www.worldwide-tax.com/germany/ger_reduc.asp • http://www.gwec.net/about-winds/policy-work/