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Wind Energy Development Opportunities in Alabama

POWER-UP Energy ForumDecember 12, 2013

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Company Background

• Independent & privately-funded• Develop wind and solar energy

projects • Founders have 50 years combined

experience• Key roles in developing over 17 wind

projects around the country (2,700+ MW)

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Wind Energy in America• Enough energy to power the

equivalent of ~15 million American households

• 45,000+ wind turbines across 39 states

• ~75,000 jobs supported• 400+ manufacturing facilities– 9 located in Alabama

• $15 billion in private investment per year over last 5 yrs

Source: AWEA

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Benefits of Wind

• Home-grown, clean energy• No water use, reduces pollution• Cost Competitive • Economic benefits to communities• Potential increase to tourism• Low use of land• No fuel cost– Hedge against natural gas and coal price fluctuations

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How Much Power Capacity?

1 MW = ~300 Homes2.5 MW Turbine = ~750 Homes80 MW Project = ~24,000 Homes

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Rapid Technological Improvements

Source: NREL, Recent Developments in the Levelized Cost of Energy from U.S. Wind Power Projects: 2012

7Source: AWEA, US Wind Industry 4th Quarter Market Report: 2012

U.S. Wind Project Locations

Manufacturing Facilities

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U.S. Wind Resource Map

Northeast Alabama Wind Resource

Project location

Project Sites

Dramatic concentration of wind on the ridge

Much lower wind speeds off the ridge

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Wind Energy in Alabama

• Currently no wind production in Alabama• However, 1,000+ MW of recent purchase

agreements by TVA & Alabama Power for wind projects located in Midwest– Clean energy benefits, but local jobs and

investment leave state• Several in-state projects under development • Recent purchase agreement between Pioneer

Green and TVA for Cherokee County project

Noccalula & Shinbone Wind Projects

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Gadsden

Noccalula(80MW)

Shinbone(18.4MW)

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Drivers of Wind Energy Development in the Southeast

1. Over-development of high wind areas; lack of transmission2. Wind turbine efficiency improvements = cost effective3. Giant wave of coal regulation coming, thus putting upward

pressure on pricing4. Minimal (if no) future development of new nuclear and/or

hydro facilities5. Utilities have increasing appetite for wind6. Population growth = increased demand7. States already adopting Renewable Portfolio Standards

(RPS) (e.g. North Carolina)"It's really a gas and wind world today.” – Jeff Immelt, CEO, General Electric, July 2012

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Patrick BuckleyDevelopment Manager

patrick.buckley@pioneergreen.com

1802 LavacaAustin, Texas 78701

(713) 962-2933

http://noccalulawind.com

Thank you!