SOUTH MEDITERRANEAN COUNTRIES: Growing with the wind

17th March 2009

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Mediterranean markets:Installed powerFinancing

South Mediterranean markets:Gamesa’s windfarms and experiencePros and cons of wind investment in the areaEvolution of requirementsConclusion

Agenda

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Mediterranean Markets : installed power

Source GWEC end 2008

134 MW

54 MW

365 MW

433 MW

985 MW

3.736 MW

3.404 MW

16.754 MW

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North Mediterranean : Project finance/Corporate Finance

East Mediterranean : ECA (Export Credit Agency)

South Mediterranean: Development funds against sobern guarantee (BEI, kfW, JBIC, DANIDA, Spanish FAD)

Mediterranean Markets : projects financing

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Mediterranean Markets : projects financing

Project FinanceECA

Government LoansOthers

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South Mediterranean Countries: Gamesa’s windfarms in South Mediterranean countries

Wind market in the South Mediterranean countries has been developed by the governments of this area

Essaouira 60 MW

Tetouan I,II,III 32MW Tanger 140 MW

Sidi Daoud I, II, III 40MW

Bizerte 120MW

Zafarana 80+85 MW

Approx. 800 MW in the last 5 years

Customer government (Morocco=Office National Electricité, Tunisia = Société Tunisienne Electricité et Gaz, Egypt =New and Renewable Energy Agency)

Financing European development funds (BEI, KFW, Spanish FAD, Danida) and Japanese (JBIC)

Technical adaptation to the markets small size windturbines (850 kW -1360 kW), high temperature, protection to dust (sand) & corrosion ambient package

Contracting 96% EPC contracts between Gamesa and governments under turn-key basis after international tendering (WTGs, civil & electrical works included)

Zafarana 120+120 MW

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South Mediterranean Countries: pros and cons to invest in the development of wind

Excellent wind regimens: sites with higher number of equivalent hours comparing to North Mediterranean (3500-4200 hours)

Low land fees

Less height limitation nor noise constrains

Green certificates/ carbon credits can be sold to European countries

Pros

Industrial local companies interested in windfarm development as reliable electricity supply back-up solution.

Governments interested in private developmentMorocco ENERGIPRO

Egypt first IPP/BOT international bid will be launched in the following months

Turkey 1st November 2007 applications bid launched by government

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South Mediterranean Countries: pros and cons to invest in the development of wind

No fixed renewable law and legal framework for a investment of 20 years:Drafts but no firm contractual rulesPrice per kWh very low (3-4 cents of Euro per kWh)

Morocco ENERGIPRO legal framework, no real contractEgypt draft of renewable law

Electrical grid adaptability for wind energy connection: technical improvement of transport infrastructure and grid quality need to be improved

Cons

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South Mediterranean Countries: evolution of the requirements (I)

Towers: Small size WTG’s tower easy to manufacture with local meansBig size WTG’s manufacturing needs important investment in means, factory facilities and technical competences.

BladesManual process manpower necessary technical competences, important cost in quality control

NacellesNo local manufacture of the nacelle’s equipment (gearboxes, transformer, generator, control boards).Assembly process of components has a high technical risk with low revenues.

Local manufacturing

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South Mediterranean Countries: evolution of the requirements (II)

Lack of local means for transport, erection and maintenance increase of Cost of Energy.Negative economical impact in infrastructures (foundations, roads, assembly platforms) which penalize the Cost of EnergyTechnical performance comparable to < 1MW WTGs (voltage ride through, reactive power generation…)

Multimegawatt windtubines

Small size windturbines < 1 MW have the optimum Cost of Energy comparing to multiMW WTGs

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South Mediterranean Countries: wind opportunities

Morocco Tunisia Egypt

South Mediterranean Countries

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Thank you for your attention