ECOBUILD, 22nd March 2012 Johnnie Andringa, Gaia-Wind ‘Financing options for Small Wind Turbines’

• Introduction Gaia-Wind• Drivers for financials• Performance of small wind turbines• 20 year Cash Flow• Financing Options

– Ready Funds– No Funds– Some Funds

Content

Gaia Wind

11 kW Turbine, Optimized for Moderate winds

Great performance due to large rotor; 133sqm swept area up to 80% more energy capture

Key customers are farmers, country homes and rural businesses

350 turbines Installed in UK

100 turbines installed in Denmark; oldest 19 years!

Direct sales in Scotland, England & Wales; partnership with Myriad

Factory Based in Glasgow

*

• Reliability Evolution of original Danish concept HB Certificate in Denmark, MCS

Accreditation in UK, NREL Tested USA

Significant investment on R&D and innovation

Gaia-Wind Features: 133/11kW Turbine

• Two bladed, down wind, constant speed• Low noise: 40 dB(A) at 100 m, rural night time

background level; 20-40 dB(A), QUIET Turbine!

• Feed In Tariffs & Electricity price• Windspeeds; NOABL, Carbon Trust

& Site surveys• Planning & Grid Connection• Costs of a Turbine• Turbine availability, Service &

Maintenance• Energy generation of turbine

Drivers for Financials

Competitive AdvantageWe produce more energy at useful wind speed!

Wind speed distribution

1400

1200

1000

800

600

400

200

0

- 20

- 18

- 16

- 10

- 14

- 12

- 8

- 6

- 4

- 2

- 0

0 5 10 15 20| | | | |

Dis

trib

ution

, hr/

yr

Pow

er, k

W

Wind, m/s

frequent wind speeds

high power

best energy production

Turbine 15kWTurbine 5kW Turbine 20kW

Gaia wind 11kW

Live monitoring

• Live wind speeds and power

production

• Issue Alerts / Turbine status

• Energy production over time...

• Mobile access

•To see a turbine in your area;

contact Gaia-Wind

Key FinancialsFully installed costs; £55.000, excl VAT

Value of annual energy generation (28+7 p / kWh) x 30.000 kWh

= £ 10.500

Service and Maintenance; £1.250 per year

Simple Payback below 6 years,

Unleveraged R.O.I of 20% !!!

For a Detailed Financial Spreadsheet; contact Gaia-Wind

• Important to realise upfront what funding requirements are;

‘Where do you fit in funding scale?’

Financing options

Ready funds

Some funds

No funds

• If you have the funds available to invest; speed is important to lock in high FIT’s

• If you’re ‘quick off your feet’ might bring £50.000 extra revenues over 20 year lifetime

• Only for installations before FIT reduction per Oct 2012...

Ready Funds

• Look for developer to put in Turbines; Low-No risk!

• Gaia-Wind Partner is Vigor Renewables

• Several other parties doing similar• Look for at least 10-15% revenue

share!

No Funds

• No Easy Solutions!• Banks; too small, security needed or

transfer of full banking relationship• Vigor Renewables is introducing a

Hire Purchase solution;– No security, Assignment of FIT’s– Does not tie up other credit lines– 65% funded ,10yr, 7-10% interest

Some Funds

Thanks for your attention!johnnie.andringa@gaia-wind.com