GE Energy

GE & Renewable Energy Robert Ridgway Product Manager Renewable Power Conversion

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GE Company Proprietary

Agenda

•  General Electric –  GE’s Portfolio

–  GE Energy •  Renewable Energy •  Supplier Partnerships •  Standardization Opportunities •  Conclusion

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GE Company Proprietary

• Power & Water • Energy Services • Oil & Gas

• Aviation • Enterprise Solutions • Healthcare • Transportation

• Aviation Financial Services

• Commercial Finance • Energy Financial Services • GE Money • Treasury

• Cable • Film •  International • Network • Sports & Olympics

•  4 businesses operating in more than 100 countries … 125+ years •  Over 300,000 employees worldwide •  2008 revenue $182B

GE’s portfolio

Energy Infrastructure

Technology Infrastructure

GE Capital

NBC Universal

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GE Company Proprietary

•  Drilling/production for … land, offshore, subsea

•  LNG and pipelines •  Refining/petrochemical •  Industrial power gen •  Complete lifecycle

services

Oil & Gas

GE Energy

Energy Services

•  Power generation •  Renewables •  Gas Engines •  Nuclear •  Gasification •  Water treatment •  Process chemicals

Power & Water

•  Contractual agreements •  Smart Grid •  Field services •  Parts and repairs •  Optimization

technologies •  Plant management

•  ‘09 revenue: $37.1B Employees: 82,000 •  Operating in 140 countries

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GE Company Proprietary

Investing Across a Variety of Technologies

Wind Biomass Solar Water Technologies

Gas Steam Nuclear Cleaner Coal

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GE Company Proprietary

Wind Solar

A world leader in renewable energy solutions $5B investment …

•  Leading N. American wind turbine supplier

•  5x unit growth since ‘02 •  14,000 units installed

globally

•  Residential, commercial and utility applications

•  PrimeStar Solar thin film technology investment

•  Complete scaleable solutions

Biogas • Power range: 0.25MW- 4MW • Fuel flexibility: Natural gas

or a variety of renewable or alternative gases

Energy Financial Services • Developing creative financial

solutions • 25+ years in Energy Finance • $19B assets •  10 manufacturing/assembly sites

•  4,700 global employees •  Installed base: 25GW •  Projects in 65+ countries •  $200M invested in supply chain •  10,000 sub-supplier jobs created

GE Proprietary and Confidential

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GE Company Proprietary

Renewable Energy Portfolio 1.5 SLE 1.5 XLE 2.5 50/60hz Solar

•  97% availability •  Enhanced controls

•  Lower wind speeds •  Performance

•  Expanding MMW reach •  Advanced load controls

•  PrimeStar TF technology

•  Inverters & modular design

Services •  Performance Upgrades •  Diagnostics & Life Extension

Systems •  Grid Management •  Plant Optimization

Nearly $1B invested in technology

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GE Company Proprietary

Wind … most economic large scale renewable

Cost of Electricity nearing mainstream

US ¢ per kWhr

Coal

~7.5

Nuclear

~6 Biomass

~10

Solar

~23

20 year levelized

Basis: $8.00/MMBtu NG Coal COE does not include CCS

Wind

~8.0

Gas

~8

Cost of Electricity (¢/kWh)

•  Fixed cost of electricity •  Energy security •  Zero air emissions ‘95 ‘85 ‘05

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10

20

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GE Company Proprietary

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GE Company Proprietary

14,000 WTGs, ~21GW installed … 20 countries

USA (8,750/13,125 MW)

China (417/626 MW)

Note: JV with Harbin Electric just announced

Japan (280/455 MW)

Turkey (65/160 MW)

Europe - 13 Countries (2,546/3,892 MW)

Canada (625/938 MW)

Global demand for clean energy drives GE Fleet growth

GE Wind global footprint

GE Company Proprietary

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GE Company Proprietary

Supplier Partnerships

•  Operational Excellence

•  Quality and Reliability •  Regulations and Compliance

•  Cost out and Efficiency

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GE Company Proprietary

GE Proprietary Information 12  

Leading in uncertain times

• Focus  on  service  level  -­‐  Outperform    

• Ability  to  manage  chaos  -­‐  schedule  /  

   mix  • Working  together  as  Partners…  drive  

   costs  

• Inves6ng  in  future…  ability  scale  up      quick  on  an  up  turn  

• Energy…One  of  few  industries  with      breath  • Every  Order  is  major  challenge  • Financial  stability  of  projects  very        Dynamic    • Cost  is  a  “Big  Differen6ator”  • Service  level  &  quality  are  “pre-­‐      requisites”  

What  is  GE  seeing  in  the  market   Our  expecta6ons  from  Suppliers…  

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GE Company Proprietary

GE Proprietary Information 13  

Opera6onal  Excellence:    Customer  Fulfillment  

•  Understand GE material flow needs - dynamic •  Proactive capacity & supply chain risk management •  Promise date integrity

‘06   ‘07  

76%  67%  

75%  

‘08   ‘06   ‘07  

80%  

97%  90%  

‘08  

OVERTIME  $  

PRODUCTIVITY  

INVENTORY  

66%  

‘09  ‘09  

Supplier  Delivery  Performance  94%  

Customer  Need  

Cost  to  GE  

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GE Company Proprietary

GE Proprietary Information 14  

Quality & Reliability… high stakes

“The  defect  mul6plier”  

“Reputa6on  &  differen6ator”    Suppliers  need:  •   Proven  quality  and  delivery  track  record    •   Disciplined  design  process  and  change  control  •   Strong  link  to  GE  development  processes  (NTI/NPI/DMP)  •   Transparency  on  risks/opportuniZes  •   Management  commitment  to  the  partnership  •   PrioriZzed  response  to  quality  concerns  

X

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GE Company Proprietary

GE Proprietary Information 15  

Regulations & Compliance

Products  are  shipped  globally:  •   Regula6ons  Flow-­‐down  

ROHS,  REACH,  WEEE,  CE  

•   Export  Control  Local  Content,  Trade  Controls,  Customs  

Product  Subs6tu6on  •   Revision  Control  •   AVL  •   Counterfeit  Parts    

Aben6on,  Educa6on,  Diligence  

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GE Company Proprietary

GE Proprietary Information 16  

Cost Out and Efficiency

25%  

•  Efficiency  –  lean  manufacturing/material  usage/supply-­‐chain  management  •  InnovaZve,  well  developed  technology  proposals  •  Standard  design  across  product  families  to  improve  cost  and  quality

Sustain  !  

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GE Company Proprietary

Standardization Opportunities

Standards •  IEEE/NEC vs IEC

–  600V vs 1000V •  Grid Code

–  Regional Global

Products •  Standard Mechanical

Packages –  circuit breakers –  fuses

•  Wind Environment vs Plant Environment –  Temperature range (-30 to

65C) –  Corrosion for offshore (C5)

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GE Company Proprietary

GE Proprietary Information 18  

Conclusion  •   Supplier  Partnerships  

•   Opera6onal  Excellence  -­‐  dynamic  market  

•   Proven  quality,  disciplined  &  linked  to  GE,  responsive  to  issues,  innova6on,  risk  transparency,  &  management  commitment  •   Global  Product  -­‐  Regula6ons,  Export  &  Change  Control  •   Cost  Out  through  supply-­‐chain  mgmt,  mfg  efficiency  and  Standard  designs  

•   Standardiza6on  Opportuni6es  •   Work  to  commonize  electrical  and  grid  standards  •   Commonize  mechanical  packages,  environmental  challenges  

GE Energy

GE & Renewable Energy Robert Ridgway Product Manager Power Conversion Renewable Energy

Q & A