Potential and first experience of modern Wind Energy in KazakhstanAndreas ThomasSVP Business Development

GM&CI Corporate presentation2

AboutVestas

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About Vestas Vestas at a glance

Today, we have installed over 41,000 turbines in 65 countries across five continents.

That means installing a turbine every 3 hours saving the world from over 40 million tons of CO2 every year.

Vestas’ track record >>

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We produce

About Vestas Vestas at a glance

…nacelles in 15 locations around the world…blades in 7 locations…towers in 2 locations…and deliver our control systems from 4 locations.

Vestas Corporate presentation5

Vestas Technology

Organisation

Markets of Vestas Central Europe

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Global outlook. Local presence

Vestas Nacelles A/S Vestas Spare Parts A/S Vestas Control Systems A/S Vestas People & CultureVestas Blades A/S Vestas Towers A/S Vestas Technology R&D

Vestas Americas Vestas Northern Europe Vestas Mediterranean Vestas Central Europe Vestas Asia Pacific Vestas China Vestas Offshore

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Vestas’ engagement in CEE

Sales departments EE region: Austria & South Eastern Europe (AT, HU, CZ SK, HR, BiH, SI), Bulgaria, Romania, Russia (RU, UA, AZ, KZ, TJ, TM, UZ)

Legal entities in Austria & Eastern Europe: Vestas Czechia s.r.o., Vestas Slovakia s.r.o., Vestas Hungary Kft., Vestas Bulgaria EOOD, Vestas CE Zagreb d.o.o., Vestas Romania s.r.l., Vestas RUS OOO

In Progress: Vestas in Ukraine, Vestas in Azerbaijan, Vestas in Switzerland, Vestas in Kasachstan, Vestas in Serbien

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Vestas track record for the CEU marketsDelivered Vestas turbines as of 31 December 2010

MARKET NO. OF TURBINES MW

Germany 5,879 7,405Benelux 1,413 1,790Austria 224 387Bulgaria 110 307Croatia 21 48Czech Republic 44 64Hungary 49 105Romania 98 272Slovakia 4 3Russia 3 1Azerbaijan 2 2South Africa 3 4Kenya 6 5

Grand Total 7,856 10,378

…view on the Global Climate Change

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…

…vision for the Wind Industry in Kazakhstan

Wind is the Response to the Climate Challenge

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• Competitive in terms of prices• Predictable in terms of costs• Clean• Independent• Quickly installed

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And Wind Power Creates JobsVestas people

25 GW installed

80,000 jobs created

19 GW installed

31,500 jobs created

3,5 GW installed

21,600 jobs created

35 GW installed

85,000 jobs created

25 GW installed

40,000 jobs created

3,200

1,660

6,170

2,430

1,600

For 1 GW the following number

of jobs have been created

Wind Energy as a Pathway to …

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…Solving the global climate challenge…Securing the increasing demand for energy…Creating wealth and prosperity

And Kazakhstan has the Potential for thriving Wind industry

Wind energy developments in Kazakhstan 13

Wind as renewable resource Conditions in Kazakhstan

Wind potential • Estimated with1820 bn kWh p.a. • Acc. Results of UNDP wind energy program wind speeds between 5.9 and 9.7 m/s

• Vestas’ site hunt in general and for several projects verifies similar picture

Excellent conditions to develop wind energy in Kazakhstan

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Vestas’ Commitment to Kazakhstan: We are ready

Growth StrategyVestas is highly committed and offers a strategic and sustainable approach for growing the wind business in Kazakhstan

Partnership StakeholdersVestas has an active Role in the governmental discussion withstakeholders and NGO‘s to discuss open questions in regularframework.

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33 Kazakhstan Wind Policy FrameworkVestas continues advising the Kazakhstan Government and stakeholders in further developing the wind policy framework

Wind energy developments in Kazakhstan 15

Political commitment Leading position in Central Asia in focus

• Political target to be the leading nation in energy and RES in Central Asia • “Electric power industry development program” – 1% or 1 bn kWh of generated power

by RES in 2014 possible • Political support and finance of the UNDP program to develop the wind energy market

Wind energy developments in Kazakhstan 16

Legal framework as basis for market implementation Legal law, incentive system and procedures

Legal law• “Promotion of Utilization of Renewable energies of Republic of Kazakhstan” from

October 2009 with the target of 5% of RES in 2024

Incentive system • Application for project related tariff with TEO • Advice from several international organization for fixed feed-in tariff acc. experiences in

countries like Germany, UK, Italy

Procedures • Regulations available but lack of experiences at implementation • Clarification on administrative, legal procedures and permitting guidelines

Improvements at tariff system and regulations would support wind energy development

Wind energy developments in Kazakhstan 17

Technical conditions National Grid System

Best grid conditions• National and unified grid system • Clear system at ownerships at high, medium

and low voltage level• Adequate capacity in whole grid system and

regions with good wind conditions • Close grid connection points • Updated technical equipment to avoid

energy losses and inefficiency

Grid situation in Kazakhstan• National Unified system with three independent

systems, but lack of link • Large remote areas with good wind conditions• Line losses of 25-50% due to very large

distances • Aging transmission infrastructure

Program to improve National Grid System started

Wind energy developments in Kazakhstan 18

Strong partners for financing of market development National and International partners

Financing for wind energy projects 1. Understanding Capital Supply of Financial

Institutions• International banks – available • National, local banks• Multilaterals available and interested • ECAs from Western Europe

2. Understanding Customers Capital Demand -equity and export financing

3. Matching Capital Supply and Capital Demand

Financing of market development projects • Grid development • Infrastructure (transport, logistics)• Production facilities

Multilaterals, e.g. EBRD, IFC available and interested

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The V112-3.0 MW -harnessing low and

medium onshore winds for you

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V112-3.0 MW design based on proven technology

CoolerTop®

Operation up to 1,500 m altitude without deratingNo power consumption for

fansMinimal noise emission

from cooling system compared to forced cooling

Permanent magnet generator and Full scale converter Simple and effective power system with high efficiency

and excellent fault ride through capabilitiesPM generator designed by VestasReduced maintenance costHighly adaptable for future requirementsHCCBA bearings (High Capacity Bearing)

Drive trainBased on V90-2.0 MW gear technology Integrated rotor lock system to improve

maintenance abilityBest performing gear solutions

(proven from VPDC data) implemented

Yaw systemDesign based on V90-3.0 MW

and V90-2.0 MW 8 yaw gearsRobust plain bearing with build

in frictions

Pitch systemDesign based on V90-3.0 MWDouble feeding pump system ensuring

redundancy and reliabilitySolutions for safe work in hub integrated in

design

BladeDesign based on V90-3.0 MW55% larger swept area over

V90-3.0 MWLarge root diameter (Φ2.6 m)

ensures blade bearing longevityLightning receptors and internal

grounding cable integratedRobust performing profiles less

sensitive to dirtReduced noise level

Robust designHigh reliabilityLower energy costs

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The V112-3.0 MW designed to

optimise your energy production

and reduce energy costs

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More efficient, reliable power system that is easy to work with

Permanent magnet generator Increased partial load efficiency Superior features as synchronous design:

Fewer parts exposed to high risk of failure No slip rings/brushes needed for operation, doing away

with the need for regular replacements Internal ventilation and water jacket cooling, increasing

overall reliability by maintaining uniform, lower temperature Compact design enhancing replacement if needed Low weight Hybrid bearings (robust ceramic) for improved reliability

Full scale converterWater cooled, decreasing space needed and increasing efficiency Modular layout enabling plug & play for easy installation &

service, increasing turbine up-time as component repair can be done offline Transformer

650 V – 10-35 kV, air cooled, meeting standard requirements High voltage cable, increasing reliability and installation and serviceability when

compared to larger number of cables Switchgear, now as standard (not just optional) Simple and effective power system with

high efficiency and excellent fault ride through capabilities

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Global 24/7/365 COVERAGE OF +18,000 TURBINES with more than 50,000 high speed data tracks per month

Identify performance deviation and issues in the fleet based on predictive models and INITIATE PREVENTIVE MAINTENANCEthough conditioning monitoring system and Vestas Turbine Monitor

Planning of maintenance based on weather forecast and making repairs to MINIMISE LOST PRODUCTION FACTOR

Findings are used to improve predictive models to provide RELIABLE PERFORMANCE AND YIELD MANAGEMENT

Vestas Performance and Diagnostic Centre

Monitor Identify & initiate

Plan & repair

Learn & improve

Prevention through prediction

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