Wind Energy Workshop - PLN PDF

Wind Energy Project Development
Knowledge Transfer Workshop with PLN

Jakarta, Indonesia
CWP Renewables Australias Leading Wind Energy Developer
In Partnership with WHyPGen-BPPT
28th October 2014

Commercial
in Confidence
Working
in Partnership.
Delivering Capacity.
Contents Page
Workshop Agenda & Introductions
Section 1
Overview of Global Wind Energy Markets & Policies
Section 2
Life Cycle of Wind Farm Project Development
Section 3
Energy Resource Assessments
Section 4
Wind Farm Design & Analysis
Section 5
Financing Wind Farm Projects
Document prepared by:
..
Kam Ho
Engineering Manager
M: 0488 042 903
T: 02 4013 4640
kam.ho@cwpr.com.au
Hallett 1
Commercial in Confidence
CONFIDENTIALITY
This document contains proprietary and confidential information, which is provided on a commercial in confidence basis. It may not be reproduced or provided in any manner
to any third party without the consent of CWP Renewables Pty Ltd.
Copyright CWP Renewables Pty Ltd 2014
This work and the information contained in it are the copyright of CWP Renewables Pty Ltd. No part of this document may be reprinted or reproduced without the consent of
CWP Renewables Pty Ltd.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, the publisher accepts no responsibility for any discrepancies and omissions that may be
contained herein.
Snowtown 1
Canunda
Mt Millar
Hallett 2
Page 2
Agenda Day 1
Tuesday 28th October 2014
Open Book Discussions Regarding Wind Energy Projects
Wind Energy Projects Life Cycle & Role in Power Generation
Global Wind Energy Markets and Policies
Understanding Energy Resource Assessments
Financing Wind Energy Projects
Energy Resource Assessments
Principles of Wind Flow
Wind Resource Monitoring Programmes
Met Masts, SODARs, LIDARs Components, Designs and Factors
Mesoscale and Long-Term Reference Points
Wind Farm Modelling & Layout Design
Probability of Exceedance (PoE) and Uncertainties
Lunch
Overview of Software Packages: WindPRO/WASP, Meteodyn & OpenWind
Importing Wind Data and Development of Generic Wind Farm Layout
MCP - Measure, Correlate, Predict
Wind Data Processing and Preliminary Energy Calculations
Preliminary Energy Calculations
Financial Models & Wind Farm Project Financing
Economic Viability of Wind Farm Projects
Project Financing & Financial Models
Boco Rock Wind Farm Case Study
8:30am 10:00am
10:00am - 12:00pm
12:00pm - 1:00pm
1:00pm 3:00pm
3:00pm 4:30pm
4:30pm 5:30pm
Page 3
Agenda Day 2
Day 2: Demonstration of Energy Resource Assessment & Financial Models
th
Wednesday 29 October 2014
Overview of Software Packages: WindPRO/WASP, Meteodyn & OpenWind
Importing Wind Data and Development of Generic Wind Farm Layout
MCP - Measure, Correlate, Predict
Wind Data Processing and Preliminary Energy Calculations
Preliminary Energy Calculations
Financial Models & Wind Farm Project Financing
Economic Viability of Wind Farm Projects
Project Financing & Financial Models
Lunch
Case Study - Boco Rock Wind Farm
Project Development & Energy Resource Assessment
Project Financing
Questions & Answers
8:30am - 10:00am
10:30am - 12:00pm
12:00pm - 1:00pm
1:00pm - 3:00pm
3:00pm - 5:00pm
Page 4
About Speakers
Engineering Manager
Melbourne, Australia
Professional Qualifications
BEng
MEnvEng
Energy Resource Manager

Adelaide, Australia
Professional Qualifications
BEng
BSc
Kam Ho
Kam joined the Wind Prospect team in January 2010 and was responsible for the growth of Wind
Prospects advisory interests in the Asia-Pacific region excluding the Philippines over the past 4 years,
delivering technical due diligence and advisory services on over 2.5 GW of wind farm projects around the
world. Kam is currently responsible for CWP Renewables engineering requirements and bringing projects
to Financial Close.
Kam has 9 years experience in the renewable energy industry and holds an Honours degree in Electronic
& Electrical Engineering from the University of Strathclyde and a Masters degree in Environmental
Engineering from the University of Melbourne.
Mike Middleton
Mike has been with Wind Prospect since 2004, joining as an Operations and Development Engineer and
most recently leading Wind Prospects global Energy Resources services team based in Bristol, UK. Mike
has a combination of project development and technical expertise and was the Development Manager for
the 132 MW North Brown Hill Wind Farm in South Australia. Mike is currently responsible for managing
CWP Renewables development portfolios energy resource assessments and procurement matters.
Mike has nearly 10 years experience in the wind energy industry and holds a double degree Bachelors of
Engineering (Computer Systems Engineering) and Bachelors of Science (Applied Maths, Pure Maths and
Computer Science) from the University of Adelaide, Australia.
Page 5
CWP Renewables
CWP Renewables is a Joint-Venture between two leading global renewable
energy developers with over two decades of experience and track record in the
development of successful renewable energy projects
Continental Wind Partners was founded in 2006 when it began developing

projects in Central & Eastern Europe. It has developed, financed and built solar
and wind farms in the CEE region. From 2007 to 2012 Continental Wind Partners
developed and managed the construction of Europes largest onshore wind
farm, the 600 MW Fantanele Wind Farm in Romania. Continental Wind Partners
currently has 650 MW of advanced wind project developments across Central
and Eastern Europe.
The Wind Prospect Group was founded in early 1990s and was responsible for the development of
UKs 2nd onshore wind farm. The Wind Prospect Group works in partnership with local communities
and has successfully developed over 3,500 MW of renewable energy projects around the world. The
Groups 200-strong advisory and consultancy team has advised on over 40,000 MW of wind and
solar projects globally, with 20 offices in over 10 countries.
North Brown Hill

Snowtown 1
Canunda
Mt Millar
Continental Wind Partners

Staff
62
Offices
5
MW Developed
1,400 MW
Wind Prospect Group

Staff
200
Offices
20
MW Developed
3,500 MW
MW Advised
40,000 MW
Hallett Hill
Page 6
Wind Energy Project Development Track Record
113 MW Boco Rock

New South Wales
2013
319 MW Sapphire
New South Wales, 2013
440 MW Hallett Portfolio

South Australia
2007-2011
513 MW Dandaragan
Western Australia, 2012
Over 3 GW of Development Expertise
Developed and project financed

Boco Rock Wind Farm Stage 1
Development approvals
Developed the Hallett Wind

Farm portfolio consisting of 5
sites
370 MW Snowtown I & II

South Australia
2008
111 MW Willogoleche
South Australia
2004 - 2011
250 MW Solar Dawn

Queensland
2011
Developed Snowtown I and

Snowtown II Wind Farm projects
Developed Willogoleche Hill

and Willogoleche Hill Extension
Wind Farms
Partnership between AREVA,

CWP Renewables and CS Energy
70 MW Mt Millar
South Australia
2002
186 MW Barn Hill

South Australia
2013
46 MW Canunda
South Australia
2005
Developed Mt Millar Wind Farm

and acquired by Tarong Energy
Project managed the variation

for Barn Hill Wind Farm on
behalf of AGL
Developed and Owners

Engineer on behalf of GDF Suez
Solar Dawn CSP

Yandin Wind Farm
Sapphire Wind Farm
Waddi Wind Farm

Hallett Wind Farms
Snowtown I & II Wind Farms
Crudine Range Wind Farm
Mt Millar Wind Farm

Canunda Wind Farm
Willatook Wind Farm
Boco Rock Wind Farm
Page 7
Boco Rock Wind Farm: Development

113.18 MW Boco Rock Wind Farm, NSW
CWP Renewables successfully brought Stage One of Boco

Rock Wind Farm (113.18 MW) to Financial Close in June 2013,
including raising $ 250 million in non-recourse project
financing and $ 110 million in equity through the sale of the
project to Thai-listed utility EGCO.
CWP Renewables identified the site and fully developed the project, securing
land, grid and PPA contracts along with all the necessary approvals
CWP Renewables partnered with GE Energy Financial Services (GE EFS) in March
2012 to bring Stage 1 of the project to Financial Close.
Stage 1 consists of 67 units of GE Energy 1.7/1.62-100 wind turbines with a total

nameplate capacity of 113.18 MW.
Enterprise value of $361 million with $250 million from 5 International Banks
and $110 million equity from EGCO.
CWP Renewables retains the Asset Management role for the project which is
now operational. In this role CWP Renewables has managed all aspects of the
project through construction and now operations.
Financing of 113
MW Wind Farm
June 2013
Project Summary
CAPEX
$361 million
EPC Contract
$270 million
Senior Debt
$250 million
Construction
2013 2014
Principal Contractors
GE-Downer EDI
Energy Offtaker
EnergyAustralia
58 x GE 1.7-100
Wind Turbines
9 x GE 1.62-100
132 kV line
25 km
Grid Operator
Essential Energy
33 kV cables
90 km
Transformers
2 x 132 kV
Page 8
Wind Prospect Advisory Services

We constantly aim to exceed our clients expectations and provide exceptional level of advice. Wind Prospect has had both feet in this industry for many
years, and so have many of our colleagues who come from development, modelling, tendering, financing, construction or operation. Linking the professional
experience of every single one of our 250 colleagues into the pool of knowledge of Wind Prospect is opening up an exceptionally strong source for advice to
our clients.
Over recent years we have worked in 27 countries, covering over 40 GW of wind farm projects. Experience like that is hard to find, particularly in emerging
markets, where unique local requirements have to be paired with deep industry experience. With strong experience from Europe and Australia, Wind Prospect
has been successfully servicing emerging markets in Asia and Africa for many years.
Achim Hoehne
Director
Bristol, United Kingdom
achim.hoehne@windprospect.com
Ari Liddell
General Manager
Bristol, United Kingdom
Barthelemy Rouer
General Manager
Paris, France
barthelemy.rouer@windprospect.com
ari.liddell@windprospect.com
Alex Tancock
General Manager
Hong Kong, PRC
alex.tancock@windprospect.hk
Ray Rysbergen
Country Manager
Manila, Philippines
ray.rysbergen@windprospect.com.au
Oscar van Rooy

General Manager
Cape Town, South Africa
oscar.rooy@windprospect.com
Page 9
Wind Prospect - Advisory Track Record
Technical Due Diligence
Wind Resource
Borde Gais Wind Portfolio

Tenaga Nasional
Ireland
Wind Resource
600 MW Wind Project Development
Confidential
Canada
Pre-Construction
>25 GW
600 MW Fantanelee Wind Farm

Continental Wind Partners LLC
Romania

2,800 MW Wind Portfolio
Oklahoma Gas & Electric
United States
>8 GW
Wind Resource
44 MW Onshore Wind Farm
Mainstream Renewables
Chile
650 MW Wind Portfolio

Confidential
Pakistan
>10 GW
Project Management
201 MW Hong Kong Offshore Wind Farm
China Light & Power
Hong Kong, PRC
Pre-Construction
54 MW San Lorenzo Wind Farm
TAREC
Philippines
>10 GW
142.8 MW Onshore Wind Farm
Confidential
South Africa
Wind Resource
5.2 MW Onshore Wind Farm
Development Bank of Southern Africa
South Africa
120 MW Onshore Wind Farm

Confidential
Taiwan
Project Development
440 MW Hallett Portfolio
AGL Energy
Australia

420 MW Macarthur Wind Farm
Malakoff
Australia
Page 10
Macarthur Wind Farm: Advisory

2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
August 2010
EPCC Signed
June 2006
Planning Approval
July 2003
Site Identified
December 2008
Planning Amendments
January 2010
Tip Height Increase
September 2011
Financial Close
June 2013
New Equity
UJV Macarthur Wind Farm

Macarthur Wind Farm Pty Ltd
AGL Energy
50% Interest
Malakoff Wind Macarthur

Malakoff Corporation
50% Interest
The Project was co-developed by Meridian Energy and AGL Energy with
construction commencing in August 2010. The Project achieved COD on January
2013 and Meridian Energys 50% share in Macarthur Wind Farm was acquired by
Malakoff Corporation Berhad in June 2013.
Macarthur Wind Farm is an unincorporated Joint Venture (UJV) between AGL
Energy and Malakoff Corporation
Located in south-west Victoria it is the largest operational wind farm in the
Southern Hemisphere
Total installed capacity of 420 MW consisting of 140 units of the Vestas V112
wind turbine
Connected into the NEM at 132 kV/ 500 kV Tarrone Substation
Project was initially co-developed by Meridian Energy and AGL Energy
Construction commenced on August 2010 with an EPC Contract signed with
Vestas-Leighton Contractors consortium
Project achieved COD on January 2013
Meridian Energys 50 % share was acquired by Malakoff Corporation in June
2013
Project at a Glance
50% Sale of
Macarthur WF
June 2013
CAPEX
$970 million
EPC
$850 million
Construction
2010 2013
Principle Contractors
Vestas-Leighton
Off-take
AGL Energy
Turbines
Vestas V112 3.0 MW
132 kV line
15 km
Grid Operator
SPAusnet
Connection Voltage
500 kV
33 kV cables
150 km
Transformers
2 x 132 kV
Page 11
AGL Energy
Wind Prospects pivotal role in the development of the
Hallett Portfolio for AGL Energy has enabled us to be
one of the leading renewable energy utilities in
Australia today.
Nigel Bean
Head of Generation Development
AGL Energy
About Hallett Portfolio
About AGL Energy (AGL)

AGL is the largest Australian gas and electricity
retailer, with over six million customers across SA,
VIC and NSW. Its generation portfolio includes
brown coal, gas, wind and hydro power stations.
AGL acquired the Hallett Portfolio (440 MW) from
Wind Prospect. Hallett 1, 2, 4 and 5 has now been
constructed and are operational forming the
largest operational wind farm project in Australia.
Hallett Hill, South Australia, Australia
Wind Prospect began developing the Hallett wind portfolio of

projects, consisting of five clusters in 2003. AGL Energy and Wind
Prospect signed a development partnership agreement in 2004,
which provided AGL Energy with exclusivity of the five projects
around the township of Hallett.
Hallett 1, 2, 4 and 5 entered construction between 2007 to 2011,
and with a nameplate capacity of 350.7 MW, the cluster of
projects form the largest operational wind farm in Australia. The
projects utilise the Suzlon S88 2.1 MW wind turbine with 80 metre
tall towers.
Hallett 3 is currently in the planning process and is expected to
add an additional 90 MW of wind generation capacity. Wind
Prospects project development team, led by Michael Vawser and
Doreen Marchesan was responsible for overseeing the project
development and approvals process for the Hallett Portfolio.
Page 12
EDP & HgCapital

Wind Prospect Group was commissioned to carry out a due
diligence project for a portfolio consisting of different sites within
a tight deadline. Successfully, a team was assembled with
collaborators across the UK.
Collaborators were asked to be proactive about delivering timely
feedback and meet targets deadlines before actual project
commenced. We consider Wind Prospect Group to be a reliable
company and we look forward to collaborating with them on
future projects.
Enrique Alvarez
Head of Offshore Wind
EDP Renovveis
Wind Prospect continue to provide an ever increasing level of

service for our operating portfolio. They maintain a professional
approach to all operating requirements from efficient & detailed
monitoring, reporting and site management through to valuable
pre/post-warranty O&M advisory services. We highly recommend
them as a quality partner and service provider.
HgCapital
About EDP Renovveis (EDPR)

EDPR is a world leader in renewable energy, with over 7.1 GW in
generation assets including over 180 wind farm projects across the
world. EDPR is majority owned by EDP Group (Energias de Portugal),
Portugals largest utility company.
About HgCapital
HgCapital is a leading European mid-market private equity firm.
Founded in 1985, HgCapital is fully independent with offices in
London and Munich and over 3 billion of assets under
management. HgCapitals dedicated renewable energy fund - Hg
Renewable Power Partners (300 million) holds controlling
interests in 21 European renewable energy projects in construction
and operation with an enterprise value in excess of 700 million and
a further 15 projects under development.
Page 13
CLP & E.On

Utilising their experience and knowledge across the life cycle of
wind farm projects, Wind Prospect assisted CLP in successfully
completing technical due diligence on potential wind farm
developments in excess of 2,000 MW in China, as well as working
with us on the proposed Hong Kong Offshore Wind Farm.
China Light & Power
Wind Prospect has developed a track record and expertise in wind

farm planning development and construction. Its a one stop shop
where a client can choose from as little or as much help as he
wants to make his project a success.
Good advice and professional service is assured, and E.On are
pleased to recommend Wind Prospect to new and prospective
clients.
Martin Roberts
Project Manager
E.On
About China Light & Power (CLP)

CLP is a leading Hong Kong electric company that has businesses
across a number of Asian markets and Australia. CLP operates over
20,000 MW of power generation plants in mainland China and is
emerging as a leader in wind energy in India.
About E.On
E.On is the worlds largest investor-owned electric utility service
provider based in Germany. E.On owns and operates nearly 4,000
MW of onshore and offshore wind projects around the world. E.On
has over 450 MW of wind farm projects in the UK, including the
Robin Rigg 180 MW offshore wind project.
Wind Prospect and E.On has been developing and delivering wind
farm projects in partnership since 2000 and are continuing to deliver
pre-construction and advisory services for E.On.
Page 14
EDF & GDF Suez

Wind Prospect has constructed over 250 MW of wind farm
projects for EDF over more than a decade and are currently
assisting us with over 250 MW of future projects.
They continue to maintain a professional approach and excellent
attitude to the job with full ownership and responsibility being
taken by the Project Manager. We would thoroughly recommend
them as a quality partner in all aspects of wind farm development,
construction, operations and consultancy.
Christian Egal
Chief Executive Officer
EDF Energy Renewables
About EDF Energy

EDF Energy is one of the UKs largest energy companies with over
9,000 MW in generation capacity. EDF Energy generates about onefifth of UKs electricity supply and is a wholly-owned subsidiary of
the EDF Group, one of the Europes largest energy groups.
Wind Prospect assisted International Power in developing the

Canunda Wind Farm, as well as acting as Owners Engineer during
construction.
We have been very pleased with their quality of work and expertise
in wind farm projects and related development activities, and
continue to utilise Wind Prospects services within Australia.
Glen Thomson
General Manager Business Development
IPR-GDF SUEZ Australia
About International Power (IPR-GDF SUEZ)

International Power is one of the worlds leading power generation
companies with over 66 GW of assets. International Power is
majority-owned by GDF Suez and has considerable presence in
Australia such as the ownership of the Hazelwood Power Station.
Wind Prospect assisted International Power in developing its
Canunda Wind Farm project in South Australia.
Page 15
Global Wind Energy Overview
SECTION
2
Page 16
Global Renewable Energy Capacity
154.9GW
189.3GW
106.1GW
2.1GW
26.3GW
2.1GW
7.8GW
Bloomberg New Energy Finance, 2013

Note: Excludes large-scale hydro
Page 17
Global Renewable Energy Capacity

Global Renewable Energy Capacity by Sector (2000-2013)
Compunded Annual Growth Rates of Renewable Energy Sectors
Small Hydro
Marine
Geothermal
Biomass and Waste
Biofuels
Solar
Wind
600
CAGR 2008-2013
500
CAGR 2001-2013
35%
29%
30%
25%
400
300
14%
12%
200
100
8%
5%
4% 3%
6%
16%16%
15%
10%
5% 5%
5%
3% 2%
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20%
0%
Small Hydro
Geothermal
Biofuels
Wind
Global Renewable Energy Capacity by Development Status in GW (2000-2013)

500
Commissioned
Financed
Announced
Cumulative Capacity
400
300
200
100
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Page 18
Global Wind Installed Capacity
118.3GW
123.2GW
77.4GW
1.5GW
4.0GW
0.8GW
4.9GW
Bloomberg New Energy Finance, 2013
Page 19
Wind Power Growth

Wind energy has experienced exponential growth in the past decade,
with nearly 200 GW of installed capacity to date. A number of
complimentary aspects have contributed to the growth of wind power:
Energy Subsidies & Policies:
Supportive Government policies and subsidies, such as an Emissions Trading
Scheme, Renewable Energy Target and/or Feed in Tariffs
Supportive Government project planning policies which simplify the planning
process and scope on assessing wind farms
Community Acceptance:
Growing community support and acknowledgment to wind farms providing
secondary income, particularly to a changing agricultural environment
Support for renewable energy in lieu of fossil fuel or nuclear power plants
Improving community consultation and communications with regards to the
development of wind farms
Technological Improvements:
Continued evolution in wind turbine technology platforms and growth in turbine
blade lengths
Improved rotor controlled mechanisms and gearbox designs which have reduced
failure rates and operational costs
Increased efficiency of turbines thus reducing cost per kWh of newer generation
turbines
Page 20
Global Wind Power Market

Wind power is expanding to new markets, aided by falling prices. Total wind power capacity by the end of 2012 was enough to meet
approximately 3% of global electricity consumption.
In the EU, wind capacity operating in 2012 was enough to cover 7% of the regions electricity consumption in a normal wind year. Several
countries met higher shares of their electricity demand with wind: Denmark 30%, Portugal 20%, Spain 16.3%, Germany 7.7%.
Four German states had enough capacity at years end to meet over 49% of their electricity needs with wind, and through the month of July
the state of South Australia generated 26% of its electricity from wind power.
More than 80% of annual installations in the next decade will happen in 12 key countries. Spain and Germany as major growth drivers of the
past slowly reach saturation.
China sees major and dynamic growth which will turn the country into the largest global market. USA with large growth potential but
uncertain political framework. India, UK, France with untapped potential. Canada, Brazil, Australia and South Africa with strong growth.
Global Wind Energy Capacity by Region (2000-2013)
Total Installed Wind Energy Capacity by Region (2013)

Oceania
2%
Asia
37%
Central &
South America
1%
Middle East &
North Africa
1%
EU Europe
EU Europe
35%
360
Non EU Europe
North America & Caribbean
320
Middle East & North Africa
280
Central & South America
240
Asia
200
Oceania
160
Africa (excluding North Africa)

Non EU
Europe
1%
North America
& Caribbean
23%
120
Other
80
40
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Page 21
Installed Wind Capacity Asia Pacific Region

70,000
62,364
60,000
Installed Capacity (MW)
50,000
40,000
30,000
20,000
16,084
10,000
12
46
30
150
207
407
564
623
Thailand
South
Korea
Taiwan
New
Zealand
2,234
2,501
Australia
Japan
Pacific
Islands
Vietnam Philippines Pakistan
India
China
Page 22
Reducing Cost of Energy

Levelised Cost of Electricity Solar PV (USD/MWh)
350
315
315
293
292
307
300
250
249
291
291
291
275
235
245
219
229
272
201
200
211
197
188
164
166
162
135
150
166
163
161
148
100
135
132
123
Q3_2012
Q4_2012
Q1_2012
50
0
Q3 2009
Q4 2009
Q1 2010
Q2_2010
PV - Thin Film
Q3_2010
Q4_2010
Q1_2011
Q2_2011
PV - c-Si
Q3_2011
Q4_2011
Q1_2012
PV - c-Si Tracking
Q2_2012
Levelised Cost of Electricity Wind (USD/MWh)

250
200
208
150
169
151
96
100
90
178
176
86
86
Q1 2010
Q2_2010
185
184
190
82
84
87
82
Q4_2010
Q1_2011
Q2_2011
Q3_2011
176
93
219
226
228
75
77
Q1_2012
220
219
218
80
82
83
81
Q2_2012
Q3_2012
Q4_2012
Q1_2012
50
0
Q3 2009
Q4 2009
Q3_2010
Wind - Onshore
Q4_2011
Wind - Offshore
Page 23
Renewable Energy Policy Groups
Renewable Energy
Certificates
Feed in Tariff &

Tariff Auctions
Tax Benefits incl

Accelerated
Depreciation
Grant/ Direct Subsidy
Page 24
National Electricity Market

Mainland Australia consists of four major islanded grid networks:
Western Power (South West Western Australia)
Horizon Power (North West Western Australia)
PowerWater (Northern Territory)

The National Electricity Market (NEM) is the largest interconnected wholesale market in the
world spanning over 8,000 km from Queensland through to South Australia and Tasmania.
All States and Territories in the East Coast of Australia are connected into the NEM:
Queensland, New South Wales, Tasmania, Victoria and South Australia.
The NEM is managed and operated by the Australian Energy Market Operator (AEMO) with a
total installed capacity over 50,000 MW.
Wholesale Market
Each State has a Regional Reference Node (RRN) in which generators and users within the
State bid and is dispatch accordingly.
A number of interconnectors between each State provides greater market flexibility and
adaptability of localised network constraints.
Only about 20% of the electricity retail tariff is accounted by the electricity spot price.
The Market Ceiling Price
The maximum spot price is set at $13,100 per MWh (13/14)
The Market Floor Price
The minimum spot price is set at -$1,100 per MWh (13/14)
www.aemo.com.au
www.aer.gov.au
Australian Energy Regulator (AER)
Page 25
Wind Energy Projects

Life Cycle Overview
SECTION
3
Page 26
Wind Turbine Key Components
Page 27
Wind Turbine Evolution
Page 28
Tower Types
Hybrid concrete/steel
towers
Lower section concrete
Used in taller structures
Easier to transport as the
sections can be divided in
approx. 5m each
Steel towers
Lattice towers
Most common tower

type,
Cheaper than steel and

concrete
3 sections, transported by
long vehicle
Limited height/strength
Challenging for transport
Rarely used for modern

turbines
Dependent on steel prices
Increased visual impact
A good alternative when

steel prices go up
Page 29
Wind Turbine Blades
Energy in the wind is limited
More blades means the less power each can extract
So each must be narrower to maintain efficiency
Even with 3 blades, they must be fairly narrow
Difficult to build strong, thin blades.
Finally comes down to aesthetics. 3 turbine blades are considered to be most visually appealing.
Page 30
IEC Wind Turbine Classes

Wind Turbine Class 61400-1 2005
II
III
Vref Extreme wind (turbulent) (m/s)
50
42.5
37.5
10.0
8.5
7.5
70
59.5
52.5
Vave Mean wind speed (m/s)

Ve50 Extreme wind (steady) (m/s)
Turbulence class A
0.16
Turbulence class B
0.14
Turbulence class C
0.12
Shear exponent
0.2
Every wind turbine model has to be certified as a minimum with an A - Design

Certificate according to IEC 61400-1 2005 (Edition 3)
Required by financiers on project finance deals, required by insurance companies and
by most active investors in the wind power industry
Page 31
Wind Farm Economics

All about sale of electricity
Project Developers have a major role in
determining the realisation of wind farm
projects, along with an Equity Investors
hurdle rate for returns
PROJECT
DEVELOPER
PROJECT NPV
EQUIPMENT
SUPPLIERS
PROJECT
LENDER
Operations
EQUITY
INVESTOR
Revenues =
Resource
Wind Resource ($/MWh)

- Strong wind monitoring regime
- Speed, direction, pressure, temperature
- Minimal uncertainties (P50 vs P90)
- Quality anemometers and equipment
- Favourable long-term correlations
- Wind turbine site suitability
Availability
Losses & Availability (%)
- Electrical losses
- Wake losses
- Plant availability
- Grid interruptions
- Scheduled maintenance
- Power curve and reliability
- Blade icing/ degradation
Power Price
Power Purchase Agreement ($/MWh)
- Electricity price
- Green certificates (RECs)
- Carbon price
- Duration of agreement
- Capacity payments
Page 32
Managing Wind Project Contracting Risk
Technology trackrecord
Costs,
benchmarking
& contingency
Planning &
Environmental
Risk
TECHNICAL
DUE DILIGENCE
Asset Life of
Technology &
Lifecycle
Wind Analysis
Contracts,
Warranties
& interface risk
Ground and Access Risk
Programme risk
Page 33
Overall Project Bankability Considerations

Project Bankability Considerations
Nameplate Capacity
Micrositing Capability
Grant Funding
All Equity
Tip Height
Balance Sheet
Wind Resource
Project Finance
Financing
Planning
Planning Expiry
EPC vs BOP
Change of Law Risk

Delay Liabilities
Tenure vs Upfront
Offtake
Construction
Environmental Management
Contract for Differences
Community Management
Bundled or Unbundled
Grid
Construction Risk
PPA vs Merchant
Congestion Risk
Connection Standards
Availability
Page 34
Investment Considerations
Site Identification | Wind Resource Monitoring | Planning & Approvals | Consent & Sale | WTG Procurement | BOP Procurement | Engineering & Design | Agreements & PPA | Financial Close
Green Field Development

Brown Field Purchase & Funding
Operational Acquisition
Three categories of wind farm projects:

Green Field
Early stage wind farm projects which have to secure long-term on site wind
resource, land tenure and crucially Planning Consent;
Higher risk due to longer project timeframe and risk associated with Planning
Application;
Planning Consent typically involves an extensive Environmental Impact
Assessment.
Brown Field
Project with Planning Consent but may not necessarily include all secured land
tenure(s);
Power Purchase Agreement and all other pre-construction works to achieve
Financial Close may still be pending.
Operational/ Post-FC
Acquisition of a project post-Financial Close which may be under construction
or in operation.
Page 35
Project Prefeasibility Assessments
Wind Resource
Grid
Interconnection
Land Suitability
Land Ownership Types

Land Ownership Boundaries
Distance Between Dwellings & Townships
Community Support for Utility Scale Wind Farms
Existing Land Use Types, Zoning & Future
Developments
Resource Leasing
Road Access &

Geography
Page 36
Road Access & Site Geography

Port Facilities
Site Access Turnings and Requirements
Site Geography Access Restrictions
Wind Resource
Grid
Interconnection
Land Suitability
Road Access &

Geography
http://www.youtube.com/watch?v=7tg0518Jde4
Page 37
Grid Interconnection
Wind Resource
Grid
Interconnection
Type of Electricity Network and Vicinity to Wind Farm

Network Load
Network Access Standards
Connection Type Mesh, Tie In, Tee
Land Suitability
Road Access &

Geography
Page 38
Wind Resource
Identifying Potential Wind Resource Meteorology
Data or Mesoscale Models
Construction of Onsite Measurement Masts
Mobilisation of Ground-based SODARs and LIDARs
Wind Resource
Land Suitability
8.51 m/s
Grid
Interconnection
Road Access &

Geography
6.75 m/s
Page 39
Environmental Impact Assessments
Purpose:
To provide information for decision-making on

environmental consequences of proposed actions
To promote environmentally sound and sustainable

development through the identification of appropriate
enhancement and mitigation measures
Definition:
systematic process to identify, predict and evaluate the
environment effects of proposed actions and project
whenever appropriate, social, cultural and health effects are
considered as an integral component of EIA...
particular attention is given in EIA to preventing, mitigating
and offsetting significant adverse effects of proposed
undertakings
Page 40
Shadow Flicker Assessment

Sun passes behind rotating blades of wind turbines casting an
intermittent shadow
Shadow flicker is an effect when viewed from a stationary
position as the blade shadow appears to flick on and off
Duration of shadow flicker and locations likely to be impacted
can be calculated from geometry of wind turbine and latitude
of the site
International regulations are in place on shadow flicker but
certain countries are more stringent that others
In some states in Australia, wind farm planning guidelines
require that shadow flicker experienced immediately
surrounding the area of a dwelling (garden fenced area) does
not exceed 30 hours per year as a result of the operation of the
wind farm.
Peer reviewed research have illustrated that the wind turbine
shadow flicker does not pose a significant risk to health but
pose as an annoyance to the local community and should be
avoided or kept at a minimum
General rule of thumb is that shadow can be casted 10x rotor
diameter
Page 41
Shadow Flicker Assessment
http://www.youtube.com/watch?v=sdhYcVgYemM
http://www.youtube.com/watch?v=MbIe0iUtelQ
Page 42
Ecology Assessment
Ecology assessments should consider:
whether flora (plants) or fauna (animals) species are
protected under any environmental legislation;
the sensitivity of any protected species to disturbance;
the potential loss of habitat of protected species; and
measures to minimise impacts on any native species.
Ramsar wetlands are protected under the Ramsar
Convention, which is an intergovernmental treaty for the
conservation and sustainable use of wetlands.
References are often made to the International Union for

Conservation of Nature (IUCN) Red List Classification
Assists in highlighting species which are threatened;
Flora impacts can be mitigated through bio-offsets;
Fauna impacts can be mitigated through controlled
measures such as limited construction timeframe or stop
dates on operational of wind turbines
Woolnorth Wind Farm Orange Bellied Parrots
Bald Hills Wind Farm Orange Bellied Parrots
Boco Rock Wind Farm Earless Dragons
Page 43
Noise Assessment
Noise is often the most important factor in
determining the separation distance between
wind turbines and sensitive receptors.
http://www.abc.net.au/4corners/special_eds/20110725/wind/
Noise assessment is therefore significant in

determining the size and viability of a wind
farm project.
Currently no internationally agreed noise
standards highly dependent on country and
may differ from day to night
Some countries acknowledge higher noise
limit at higher wind speeds
Base noise limit

World Health Organisation
Victoria & South Australia
New South Wales
New Zealand
United Kingdom
Denmark
43 dB(A)
40 dB(A)
35 dB(A)
40 dB(A)
40 dB(A) (day time)
43 dB(A) (night time)
44 dB(A) at 8m/s
42 dB(A) at 6m/s
Background noise limit margin
Comment
5 dB(A)
5 dB(A)
5 dB(A)
The greater of the above limits apply

5 dB(A)
The greater of the above limits applies

No background noise limit is applied.
The noise limits are determined for wind
speeds taken at 10m above the ground.
Page 44
Page 45
Noise Impact Assessment
Page 46
Visual Impact Assessment

The level of visual impact of a wind farm will
depend on the extent of change to the landscape
caused by the development, taking into account:
Visibility of the development;
Locations and distances from which the
development can be viewed;
Landscape values; and
Sensitivity to the landscape to change
Photomontages are often developed to assist the

community in visualising the presence of the wind
farm
Page 47
Grid Access Considerations

Grid Capital Expenditure
Quantifying costs of connection in the network, such as the wind
farm substation, transmission line augmentations and switchyard
Operational & Maintenance

Quantifying long-term annual operational costs for maintaining
connecting electrical infrastructure
Marginal Loss Factors

Gaining an understanding of MLFs and future trends such as load
and generation variations with regards to Regional Reference
Nodes.
Network Congestion
Modelling the risk of congestion as more intermittent generation
projects are connected into the network
Network Stability
Understanding the performance of wind generators as projects
are connected into weaker grid networks the need to balance
security of supply and cost of connection
Page 48
Wind Farm Grid Connection
Wind Turbine
Generator
Internal Reticulation Network

(Overhead or Underground)
Wind Farm Collector

Substation
Wind Farm Transmission Line (Optional)
Network Switching Station
0.69kV
>11 kV
>66 kV
>66 kV
>66 kV
Reticulation Voltage
Transformer Voltage
Transmission Line
Switching Station
The internal reticulation voltage is dependent

on a number of factor such as carrying
capacity (MW) of each circuit and specific
project requirements. 33 kV is by far the most
common globally, though certain projects do
use 22 kV or 11 kV reticulation cables.
The role of the transformer

is to transform the medium
voltage (33 kV) to a higher
voltage for efficient longdistance power
transmission. The high
voltage side of the
transformer is dependent
on the grid network voltage
(e.g. 132 kV).
A high voltage transmission line between

the collector substation and switching
station is only required if they are not
located adjacent to each other. The
transmission line at varying voltages will
require different easement widths.
A switching station safely connects

new generators into the wider
transmission network. A switching
station usually does not contain
step up transformers only
network switching equipment such
as circuit breakers and isolators.
Page 49
Wind Farm Reticulation - Construction

Photos from Grasmere Wind Farm, Verve Energy
1. Trenching Along Cable Route
3. Cable Transported to Site

2. Open Trench Without Cables Installed
4. Moving Cable Drums to Trench

Page 50
Wind Farm Reticulation - Construction

Photos from Grasmere Wind Farm, Verve Energy
6. 22 kV single core XLPE cables

5. Three single-core cables installed in trench
7. Rigid plastic installed as

mechanical protection
8. Deep Cable Trench for

Parallel XLPE Cables
Page 51
General WTG Components
Page 52
Grid Performance Technical Considerations

Assessment Considerations
Assessment Process
Steady State Simulations PSS/e or DIGSilent

Reactive Power Capability (WTG and Park)
Electricity Quality (Harmonics)
LV/HV Tolerance
Frequency Distortion
Grid Strength
Islanding
Fault Current
Reactive Power Capability

Fault Ride Through
LV/HV Tolerance
Grid Strength (SCR)
Voltage Imbalance
Voltage Regulation
Frequency Distortion
Harmonic Distortion
Islanding
Fault Current
Dynamic Simulations PSS/e or DIGSilent

Islanding/Inter-tripping
Voltage Imbalance
Voltage Regulation
Fault Ride Through
Wind Turbine Transient Modelling ATP/PSCAD
Quality of Electricity Modelling
Wind Turbine Model Dynamic Validation:
Validating PSS/e Model Assumptions
Real Life Test Scenarios
Needs Verifications by NSP
Page 53
A-Z for Financing Wind Projects

A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
Availability
Birds & Bats
Certification
Due Diligence
Energy Yield
Financing
Grid Connection
Hub Heights
IRR
Joint Venture
Shape Factor
Liquidated Damages
Measurement Campaigns
Net Losses
Operational Plans
P
R
S
T
U
V
W
Y
Power Purchase Agreement

Rotor Sizes
Subsidies & Policies
Technology Risk
Uncertainty
Viability
Warranties
Yaw
Page 54
Financing Wind Farms
SECTION
5
Page 55
Project Funding
Project Funding Options
Generically there are four types of project funding options as detailed below. Each has its merits and limitations with the Non-Recourse Project
Financing the most bankable as the Project Lenders will not seek recourse from the Project Owner should it result in a default.
All Equity
Balance Sheet
All Equity funding option is

uncommon for large-scale
renewable energy projects as
the capability to leverage results
in an improved rate of return for
principle investors.
Balance Sheet financing is the

most common option for
vertically-integrated utilities or
large-scale generators to fund
the construction of wind farm
projects in Australia.
The only case study for such an

arrangement in Australia is
Hepburn Park Wind Farm, which
was funded through private
investors and grants from
various parties with a total
enterprise value of $12 million,
paid upfront.
Utilities such as AGL Energy and

TrustPower use their corporate
balance sheet which has access
to debt to fund construction of
projects during the short term
until the debt term expires.
Recourse
Recourse financing requires the
Project Owner to provide a
Company Guarantee to lenders
and therefore limits the
lenders exposure in the event
of construction delays or
payment defaults by the wind
farm.
Limited recourse financing has

been mobilised recently, such
as Portland 4 Wind Farm which
was partially funded by CEFC
with liabilities bounded with
This allows utilities to de-risk
Pacific Hydro and its parent
projects at an earlier stage and
company to limit CEFCs
All Equity is the only
only seek non-recourse financing exposure to electricity pricing
unleveraged financing option. when the asset is in operation.
risks.
Non-Recourse
Non-Recourse financing is the
most bankable method for wind
farm projects and requires all
approvals and contracts to be
agreed to the satisfaction of the
lenders.
Project lenders do not have
recourse against the Project
Owner and therefore nonrecourse financed wind farms are
usually developed to the bestpractice as it is deemed lowestrisk to institutional investors.
Page 56
Project Financing Structure

Power
Offtaker
PPA Direct
Agreement
Power Purchase Agreement (PPA).
Intercreditor
Equity
Equity
Shareholders
SPV
Leasehold Land
Permissions and Consents
Debt
Bank
Senior Debt
& Hedging
Credit Documentation
Shareholder Agreement
Development Fee
Turbine
Supply
Agreement
(TSA)
Operating &
Maintenance
Contract
(O&M)
Grid Connection Agreement
Grid Company
Parent Co
Surety
Turbine supplier/installer/
Operative company
O&M Direct
Agreement
Balance
of Plant
Contract
(BoP)
Interface
Agreement
TSA Direct
Agreement
BoP Direct
Agreement
Balance of Plant
Contractor
Parent Co
or Surety
Page 57
Technical Inputs
Energy yield (P50, P90, sometimes capacity factor)
Remaining development costs / developer premium
Capital costs
All costs for construction, either through EPC or multi-contract
Turbines, towers, foundations, roads, grid connection, substation
Developer premium
Operating costs
O&M agreement for length of signed contract (2-10 years)
Assumed extension or alternate provider
Assumed period of total operation (20 years)
Decommissioning reserve
Programme
Constraints / Loss adjustment factors
PPA/Tariff
Lease arrangements
Page 58
Commercial Inputs
Inflation (estimates, sensitivity)
Bundled PPA tariff or forecast merchant power prices
Exchange rates
Discount rate
Contingency (development, construction, operation)
Transaction costs.
Payment profile for contractors
Financing costs (incl. DD)
Interest rate
Equity
Cost of capital
Debt
Interest rate and tenor
DSCR
Reserve accounts
Depreciation
Debtor / creditor days
Page 59
Project Capital Costs - CAPEX
Capital costs will vary according to contractual structure:
Engineer, Procure and Construct (EPC), also referred to as a turnkey construction contract
(TCC)
Multi-contract
Can be as few as 2 or 3, but may be 10 or more
Pre-construction and engineering design
Turbine procurement, installation and commissioning
Civil works
Electrical supply, installation and commissioning
Project management
Choice depends on
Financing route
Experience
Costs vary because of risk transfer
Page 60
Operational Costs - OPEX
Typical wind farm operational costs
Lease / rental payment to landowners
Insurances: public liability, mechanical break down, and business interruption
Plant and site maintenance and management
Continuous 24/7 monitoring
Energy imports (real and reactive power)
Generation / Transmission use of system charges
Any local land or tax charges
Page 61
P50 and Debt Service Cover

Probability of Exceedance
Probability of Exceedance (PoE) refers to the chances that a particular

measure will be surpassed by the value in another, randomly selected
measure:
The Central Estimate (P50): 50% chance that the result will be
lower and a 50% chance the result will be higher than the
predicted long term energy yield
Individual uncertainties combined to give results for various PoE energy

levels for 1, 10 or 20 years
Equity general looks at P50 and P75
Senior Debt general looks at P75, P90 and even P99
Senior Debt
Lenders tend to have limited upside and is exposed to a larger downside and therefore
puts in substantial layer of protection to control risk through the Debt Service
Coverage Ratio (DSCR).
DSCR is the amount of cash flow available to meet annual interest and principal
payments on debt, including other sinking fund payments.
DSCR less than 1 would mean a negative cash flow (e.g. project operating
income is insufficient to repay senior debt).
If DSCR is less than the minimum (calculated) threshold then the Project would
have to reduce its debt limit and increase its equity contribution.
DSCR =
Net Operating Income

Total Debt Service
DSCR is determined by Project Lenders,

not Developers. However it is important
to note that Developers have the
opportunity to influence through WTG
technology, PPA terms and most
important reducing uncertainty with
wind resource (P99)
Page 62
Equity Returns Considerations

Equity usually has the lowest priority when it comes to distribution of cash e.g. post operational expenses, interest
and principal repayments and tax liabilities.
Net Present Value (NPV)

NPV is the difference between the present value of cash inflows and the
present value of cash outflows. NPV is used in capital budgeting to analyse
the profitability of an investment or project. NPV compares the value of a
dollar today and to the value of that same dollar in the future, taking inflation
and returns into account. NPV analysis is sensitive to the reliability of future
cash inflows than an investment or project will yield.
The XNPV function in Excel requires Discount Rate, Net Cashflows and
Dates of distributions in order to calculate the NPV.
Internal Rate of Return (IRR)

The IRR is the rate of return used in capital budgeting to measure and compare the profitability of investments, e.g. the
expected rate of growth from the project and is sometimes referred to as the Economic Rate of Return (ERR). The higher the
Project IRR, the more attractive it is for investors.
The hurdle rates for investors range substantially depending on the timing of equity entry (development, construction or
operational) and the type of investors. Infrastructure Investors may have a lower hurdle rate but generally isnt willing to accept
construction or development risk.
The XIRR function in Excel requires Net Cashflows, Dates and Guess values in order to calculate the IRR. The Guess value is
10% by default.
Page 63

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Wind Energy Project Development

Knowledge Transfer Workshop with PLN

28th October 2014

Overview of Global Wind Energy Markets & Policies

Life Cycle of Wind Farm Project Development

Energy Resource Assessments

Wind Farm Design & Analysis

Financing Wind Farm Projects

Document prepared by:

Energy Resource Manager

Continental Wind Partners was founded in 2006 when it began developing

North Brown Hill

Continental Wind Partners

Wind Prospect Group

Wind Energy Project Development Track Record

113 MW Boco Rock

440 MW Hallett Portfolio

Over 3 GW of Development Expertise

Developed and project financed

Developed the Hallett Wind

370 MW Snowtown I & II

250 MW Solar Dawn

Developed Snowtown I and

Developed Willogoleche Hill

Partnership between AREVA,

186 MW Barn Hill

Developed Mt Millar Wind Farm

Project managed the variation

Developed and Owners

Solar Dawn CSP

Waddi Wind Farm

Crudine Range Wind Farm

Mt Millar Wind Farm

Boco Rock Wind Farm

Boco Rock Wind Farm: Development

CWP Renewables successfully brought Stage One of Boco

Stage 1 consists of 67 units of GE Energy 1.7/1.62-100 wind turbines with a total

Wind Prospect Advisory Services

Oscar van Rooy

Wind Prospect - Advisory Track Record

Technical Due Diligence

Borde Gais Wind Portfolio

600 MW Fantanelee Wind Farm

Technical Due Diligence

650 MW Wind Portfolio

120 MW Onshore Wind Farm

Technical Due Diligence

Macarthur Wind Farm: Advisory

UJV Macarthur Wind Farm

Malakoff Wind Macarthur

Vestas V112 3.0 MW

About Hallett Portfolio

About AGL Energy (AGL)

Hallett Hill, South Australia, Australia

Wind Prospect began developing the Hallett wind portfolio of

EDP & HgCapital

Wind Prospect continue to provide an ever increasing level of

About EDP Renovveis (EDPR)

CLP & E.On

Wind Prospect has developed a track record and expertise in wind

About China Light & Power (CLP)

EDF & GDF Suez

About EDF Energy