Wind and Solar Systems in Thailand - Opportunity and Market Development

February 19th 2010

Presentation outline
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Solar & wind potential in Thailand

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Technology and system overview

The project development process

Wind and Solar Systems in Thailand Opportunity and Market Development

Key components of a PV & wind farm

Key risks/issues to beware of and the mitigation measures, particularly in Thailand

Case studies on PV and wind project developments

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Global variations in irradiation

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PV applications
The photovoltaic technology can be used in several types of applications:
Grid-connected domestic systems Off-grid systems for rural electrification

Grid-Connected Power Plants

Solar Farms also known as PV farms, BIPV and roof- top PV systems or so called largescale centralized PV grid connected systems produce electricity from the sun and sell the electricity to the utility grid.

Consumer goods

Off-grid industrial applications

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The PV project development process

10 good reasons to switch to solar photovoltaic electricity
1. The fuel is free 2. It produces no noise, harmful emissions or polluting gases 3. PV systems are very safe and highly reliable 4. The energy pay-back time of a module is constantly decreasing 5. PV Modules can be recycled and therefore the materials reused in the production 6. It requires low maintenance 7. It brings electricity to remote rural areas 8. It can be aesthetically integrated in buildings (BIPV) 9. It creates thousands of jobs 10. It contributes to improving the security of Asia's energy supply
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General considerations for large scale PV projects

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The PV project development process

1 Step: Pre-Development

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Find reliable power purchaser and/or markets Determine the pre-feasibility and expected output Obtain all licenses like for example: PPA, grid connection and other local licenses Secure the land; buy or lease decision

2nd Step: Technical

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Select the most efficient technology for the chosen location Find a reliable turn-key contractor Obtain binding proposals Select all suppliers and contractors

3 Step: Finance

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Prepare a full feasibility study and business plans Establish access to capital and banks Sign all finance related contracts Sign EPC contract and order all components

4 Step: Implementation

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System installation Secure agreements to meet all O&M needs Connect the system to the grid Finalize all documents and approvals to start the actual electricity sales

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Keep it simple and sustainable

| Environmental friendly: for each kWh of electricity produced, 0.5 kg of CO2 are avoided | Virtually maintenance free and reliable technology providing with predictable and un-interrupted output for more than 20 years

solar radiation

photovoltaic modules

direct current

inverter

alternative current

public grid

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Modules
Modules

Wafer technology 90 % market share

Thin-Film technology 10 % market share

Other technologies

Mono-crystalline Efficiency = 16%

Polycrystalline Efficiency = 14%

A-SI:H Efficiency = 6 - 9%

Micro-Crystalline Efficiency = 8%

CdTe Efficiency = 10 %

CIS Efficiency = 7 - 12%

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Centralized or decentralized system design?

Decentralized System Design
| Suitable for systems in the lower MW range | Easy to install | Less complicated to maintain | Especially suitable for systems with different integrated solar generator types | High output efficiencies

Centralized System Design

| Suitable for systems in the multi-MW range | More cost efficient for large scale power plants | Especially suitable for systems with homogeneous solar generator types | High output efficiencies

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Mounting systems

Fix system

1-axis

2-axis

Output Occupied area Maintenance Cost

100% 100% 1 100%

115 % 100-120% 2 106%

125% 200% 3 120%

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Monitoring and control

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Monitoring of central inverters, tracking system and connection boxes Readout of inverter and string data Shows system status of all components and initiates alarm

Internet portal

Analysis software

Alarm function

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Key risk factors and mitigation strategies for PV projects in Thailand

Project Phase

Key Risks
| Special component certification requirements by the local authorities

Mitigation Strategies
| Select only components which fullfill all local requirements | Build a close relationship the local grid owner | Use strong suppliers and EPC partners | Early relationship building with the bank is crucial | Detailed, creditable and in-depth documentation | Early relationship building with possible equity partners is a crucial | Use of local suppliers for keycomponents | Use of local banks and investors | Use of local government funding and support
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Technical

| Grid-connection related problems | Component supply shortages

| Banks have limited experiences in PV debt financing, structures and risks

Financial

| Special country related documentation is normally needed | There is only a limited amount of equity investors for PV projects in Asia | Local suppliers could be protected by high duties or other regulations

Government

| High country and political risks | Higher risk for sudden changes in the subsidy policies

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24MW SinAnSolar PV power plant case sample

| Location: Sinan-gun, Jeolla-do, South Korea | Project Area: 660,000 m2 | Annual Output: 33,000 MWh/ 7,200 HH equivalent | System Type: Single Axis Tracking System | Module Type | Conergy 180W Crystalline 108,864 modules | 3rdParty 200W Crystalline 21,792 modules | Construction Period: May 2007 through September 2008 | EPC Contractor: Dong Yang Engineering | The SinAnpower plant is the largest PV facility in South Korea | The worlds largest solar power plant with tracking systems.

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21.2 MW El Calaveron PV power plant case sample

Location: El Calavern Start of operation: September 2008 Output: 21.2 MWp No. of modules: 96,000 Surface covered: 100 hectares It will produce approximately 40,000 MWh environment-friendly power annually.

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Global wind power...

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Wind potential of Thailand (DEDE)

Thailand Wind Map Including Calm - Annual

Thailand Wind Map Excluding Calm Annual

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Wind potential of Thailand (World Bank AWS)

Wind Resource of Thailand - Mean Annual Wind Speed at 30 Meters

Wind Resource of Thailand - Mean Annual Wind Speed at 65 Meters

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Small wind turbines

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Small wind on-grid systems

Load 220 VAC/ 50 Hz

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Small wind off-grid systems

Battery bank

Load Inverter 220 VAC/ 50 Hz

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Small wind hybrid systems

Optional

Optional

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Business potential for small wind turbines and hybrid systems

| Modern small wind turbines are nowadays often maintenance free and easy to install | These new generation turbines have much lower noise emissions than in the past, so that they can be installed in residential areas | Small wind systems are in certain off-grid locations more economically feasible than photovoltaic systems depending on the wind resources | Small wind systems can be even viable in an on-grid situation, if the wind speeds resources are high enough at a given location | Small wind and solar systems often complement each other and enable the design of more efficient hybrid systems | All these points make small wind systems a viable decentralized renewable energy source for Thailand and surrounding countries

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World markets of large scale wind systems

GWEC 2007 Report

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Technical advances
| Turbines | A general clear trend is the development of even larger multi-megawatt turbines | Up-to 3MW for onshore locations | Up-to 6MW for off-shore locations | Enercon 6MW and REpower 5MW

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Technical advances
| This steady turbine growth led to the following new developments: | Use of new composite materials like carbon and new design adaptations for blades | Increase in blades sizes to increase the swept area and energy yields of new and existing turbine types | Use of new advanced gear boxes and geared drive solutions | More use of direct-drive generators | However increasing sizes cause wide generator diameters of more than 10 meters | This led to first developments which use permanent magnets without cooper windings, which can reduce the direct-drive generator size by half | Hybrid direct-drive turbines using a low-speed generator with a single stage drive system | New control system like disturbance accommodating control DAC
Enercon Enercon

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Technical advances
| New Tower Designs | Standard tubular steel towers have reached their limits, because of transportable dimensions for inland locations and raising cost | Lettuce tower cause higher maintenance cost, dynamic problems and a difficult access to the turbine. | This led to the introduction of new hybrid towers based on a combination of pre-fabricated long concrete parts for the lower part of the tower and pre-fabricated tubular steel used for the upper part of the tower | These new hybrid towers can reach height far above 100m hub heights | Other new concepts include telescoping or self erecting towers | Composites are an additional material under study for wind turbine towers | Advanced wind park condition-monitoring-systems | Wind farms and turbines are now remotely and continuously monitored | Technical problems will be detected earlier and parts can be exchanged before a total turbine failure occurs | This reduces cost and increases the returns of a wind farm
REpower

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Remaining technical challenges

| The trend to bigger turbines causes more logistical and construction challenges and rising cost for special cranes, trucks, etc. | The trend to off-shore farms creates a totally new set of challenges: | All systems have to be much more reliable and adapted to the harsh marine conditions | Logistics and installation is much more difficult | The wind industry has to compete with the oil industry for the same installation resources | The trend of increased blade sizes even on existing turbine types may cause even higher fatigue on the shaft and gear systems and even on the blades themselves | The trend to higher towers creates new practical O&M challenges
REpower

Rotec

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Grid related challenges

| Wind power is more difficult to predict than conventional power supply or even other renewable energy sources and this might lead to several challenges: | In the past it was assumed that high wind farm penetration would lead to a high need for large spinning reserves to secure the frequency of the grid | Several studies have shown that this is actually not the case wind changes normally occur very smoothly over hours | High percentage of wind penetration could also lead to curtailment challenges | It can also be assumed that wind farms will normally not have a negative effect on the power quality inside the transmission system via flicker or voltage dips, etc. | Large amounts of wind farms in a given transmission system have to be closely interconnected and supported by efficient forecasting and SCADA systems

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Lessons learned
10 main steps in building a successful multi-MW wind farm
1. Understand your wind resources 2. Determine the proximity to existing transmission lines, roads, national parks, etc. 3. Secure access to the desired land 4. Establish access to capital 5. Identify reliable power purchaser or markets 6. Address siting and project feasibility considerations 7. Understand wind energys economics 8. Obtain zoning and permitting expertise 9. Establish dialogue with turbine manufacturers and project developers 10. Secure agreements to meet O&M needs
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Lessons learned in Thailand

| General challenges: | The wind resource assessment becomes even more crucial in Thailand, because only limited solid wind data are currently available | The limited regions in Thailand with sufficient wind resources are often in locations like national parks, on mountain tops or off-shore, which makes a wind farm development often impossible or just to expensive | A suitable grid connection is often not available in these high wind resource areas | First mover challenges: | International wind turbine suppliers from Europe or the US are reluctant to deliver turbines to Thailand at this point of time | Difficulties to secure reliable O&M contracts, because no major wind turbine company has a local O&M set-up at this point of time | Difficulties to receive international funding
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Small wind case samples

Locations: India and Thailand Start of operations: 2008 and 2009 Southwest and Conergy turbines Off-gird applications Wind output ranging from 2.4 to 18 kWp

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Multi-MW case samples

Location: Soltau, Germany Start of operation: 2005 16 Siemens Wind Turbines Output: 23.6 MW Park covers electricity needs of 10,250 households

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Multi-MW case samples

Location: Wrzburg, Germany Start of operation: 2006 28 Vestas V90 Wind Turbines Output: 56.0 MW Park covers electricity needs of 35,000 households One of the biggest wind-projects in Germany.

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YOUR RENEWABLE ENERGY PARTNER IN SOUTH EAST ASIA

For additional information please contact Mr. Daniel Gaefke at daniel@annexpower.com or via telephone: +66 (0) 2 660 6800