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RENEWABLE ENERGY CONFERENCE – 24/11/2010

Vergnet SA presentation

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Balanced mix : the new model for modern energy policy

Procurement security

Strategic independence

Complementary Resources

Local sources : renewable energy

2010 Typical France daily mix (RTE)

2020 Objective: 23% wind energy in France(50% in unconnected islands)

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Thermal energy sources are limited to the next 23 generations

Fossil energy 3080 years

Nuclear energy 3070 years

Visibility for Nuclear is not greater than for fossil energy

(French Atomic Energy Centre CEA report)

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Visibility for Renewable energy is infinite,to be completed by new technologies

Renewable

Hydro

Wind

Solar

Energy for the future

4th generation nuclear plants (rapid neutron)

Deep Geothermal plants

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Two worlds of wind energy, one mature industry

Traditional wind farms

Big plants connected to High Voltage distribution network

Huge investments by major companies

New approach (but historical one): distributed generation

Local production and consumption

Rural players

Reasonable “Human” investment and size

Smart grids

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Distributed generation : a new hope for rural areas in Europe

Medium costs, real energy production

Reasonable investment, comparable with farmers’ usual investments

About 400 to 500 MWh per year

New profitable activity for farmers

“20% of farming income and financial stability” said Mr K. Armonas, farmer and owner of Birzai 250 kW wind turbine(in Lietuvos Rytas, 15/07/2010)

New work opportunities in rural areas

Installation and maintenance can be done

by local small companies

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Main countries are following the way of distributed generation with dedicated incentives : Feed In Tariff / Subsidies

Country Specific Feed In Tariff Subsidies Comments

Italy 300 EUR/MWh No Guaranteed during 15 years for turbines up to 200 kW

Great Britain 210 £/MWh, i.e. 250 EUR/MWh

No Guaranteed tarif for 20 yearsfor turbines up to 500 kW

Northern Ireland ~ 230 £/MWh, i.e. 280 EUR/MWh

No 4 Renewable Obligation Certificates

for turbines up to 250 kW

France No No Specific rules up to 250 kW

United States Yes

50 to 70% of the investment

Various subsidies, from local and federal administration

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Vergnet survey about distributed generation potential market

UK

Confirmed mature markets

Latvia

Greek islands

Canaries

Belgium

Portugal

Italy

Lithuania

Balkans

Estonia

Malta

Netherlands

Açores

Spain

Mature potential markets

Confirmed new marketsPotential new markets

Germany

GreeceSlovenia

Ireland

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Lithuania : a pioneer in stand by for distributed generation

First country to decide subsidies to distributed wind energy

More than 100 applying farmer with real and bankable projects

One Vergnet turbine inaugurated in Birzai in July 2010 with average 98% availability

Contracts for other 35 mid size turbines

Knowledge transfer to Lithuanian company for installation and maintenance

Opportunity for technology transfer in Lithuania for the whole sub-region (Baltic, Poland, Bielorussia)

Birzai, Lithuania

Today everything is blocked

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Visibility and legitimacy for wind energy

All countries are developing a balanced energy mix

Wind energy offers infinite visibility at competitive price

Wind energy distributed generation is becoming part of the solution

Like all new industrial techniques, it needs National help at the beginning

Distributed generation contributes to the development of rural areas

Its cost has to be compared to real rural electricity cost

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kWh

cost

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Number of customers per km of HV/LV line

Real cost of kWh versus number of rural customers

To develop distributed energy, a specific higher tariff is needed