O&M 2.0 INDEPENDENT OPERATIONS OF WINDFARMS

V German-Brazilian Business Conference – Onshore Windenergy Brazil Natal/RN, 30th of May 2017

Thomas Kunzmann, Managing Director

1 O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017 AGENDA

Company

Challenges

O&M 2.0 – Independent Operations

O&M Scenarios

Summary O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

WINDWERK IS PART OF GERMAN DGE GROUP AND HAS 20 YEARS OF EXPERIENCE IN SOUTH AMERICA AND EUROPE Company Profile

20 years of international experience in Europe and South America with Renewable Energies Activities in Germany, France, Chile and Brazil Operations Management of 230 generators with 300 MW Project development >200 MW Manufacturer independent: cooperation for example with /Wobben, /, , GE Application of German quality standards O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

COMPETENCES IN DEVELOPMENT, FINANCING AND OPERATIONS

Core competences of DGE Group

BUSINESS COMERCIAL OPERATIONAL DEVELOPMENT FINANCING DIVISIONS MANAGEMENT MANAGEMENT

• Project Development • Project Financing • Investor Relations • Monitoring • Acquisition of • Conception of Funds including Customer • Operations Mgmt Projects • Share Capital Care • Performance Acquisition • Tailored Reports Analysis COMPETENCIES • Contract Acquisition • Coordination of • Contract Controlling Maintenance • Quality Control & Inspections

• > 300 MW of • 13 funds • 11 funds • 15 wind farms acquired projects • Financing volume of • > 2.000 investors • > 230 WTG from GE, 500 Mi. Euro Enercon/Wobben, REALIZED • >200 MW of own • About 125 Mi. Euro Suzlon/Senvion, SERVICES development in of collected share Vestas, France and Germany capital • 300 MW • 2 solar farms with 12 MWp O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

WE SUPERVISION DAILY 300 MW WIND AND 12 MW SOLAR

Our Portfolio

15 wind farms/230 WTG with 300 MW across Europe: Solar farms with 12 MWp in Germany and Chile: Suzlon/Senvion: 60x MD70/77 Enercon/Wobben: 6x E115, 70x E40, 17x E66, Sharp: 32.000 Modules 17x E70 RWE Schott Solar: 6.500 Modules Vestas: 14x V66, 11x NM1500 JA Solar: 4.000 Modules General Electric: 22x TW600, 14x GEWind 1.5 SMA Inverters Nordex-Acciona: 2x N117 Siemens Inverters O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017 AGENDA

Company

Challenges

O&M 2.0 – Independent Operations

O&M Scenarios

Summary O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

RAPID DEVELOPMENT AND INCREASE OF COMPLEXITY OF WIND TURBINES REQUIRES SPECIALISTS

Challenges and possible consequences

Today’s machines generate 100 times as much electricity as earliest wind turbines and have a much higher complexity Throughout their operating life wind turbines are subject to enormous stresses

Defects are not always visible and often only experts can detect them by specialized analysis Unremedied defects can impair performance and lead to unplanned disturbances Long downtimes can come at a high price and can turn a project negative Full maintenance contracts offer a certain protection, however do not guarantee fast reaction and have often caps O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

SPECIAL CHALLENGES IN BRAZIL

Different climatic conditions  Stronger and more frequent wind results in very high : Brazil 38% vs. Europe: 25%  Brazil is world’s number one in lightnings  Many turbines are not well adapted to these conditions Brazil has continental dimensions, extreme distances complicate production, logistics, training and service Wind industry is relatively new and still in development:  experiences with O&M are scarce  Quality issues in service  Conflict of interests between maintenance and OEM  Asymetric service contracts between vendor and operator O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

OPERATIONAL MANAGEMENT OF WIND FARMS IS IMPORTANT FROM THE BEGINNING AND GETS CRITICAL AFTER 5 YEARS How to master the challenges Mandate constant monitoring by experienced specialists Check clauses of operational contracts Comission inspections at least every 2 years of operation Consider to mandate inspections one year prior to end of garantee or full maintenance contract to make demands in time Check insurance protection and if necessary adjust to close gaps

Monitoring, inspections and maintenance are indispensable in order to continuously achieve maximum electricity yields regular O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017 AGENDA

Company

Challenges

O&M 2.0 – Independent Operations

O&M Scenarios

Summary O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

OEM SERVICE CONTRACTS HAVE LIMITATIONS, INDEPENDENT OPERATIONS CAN BE AN ALTERNATIVE

O&M by OEM O&M by ISP Reaction time slow Better reaction time OEMs do not show “real” “Real” availability time- or availability energy-based Service quality with problems Better quality of service Transparency limited Fully transparent documentation Mainly reactive measures Preventive, proactive measures Conflict of interest OEM and No conflict of interest maintenance Expensive  Less expensive  Reduction of OPEX  Better rentability O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

OPERATIONS ARE CONTROLLED 24/7 WITH SPECIALIZED RESOURCES

How does indepedent monitoring and operations work? Consolidation of all available turbine data into one multibrand software system even with different turbine brands Processes are aligned and optimized for system, no paper! Storage of data on separate server (customer defines where), independent from SCADA Real-time monitoring of all data – 24/7 Powerful tools for analysis and reports tailored to customers needs Exchange with expert network for quick and efficient solutions Daily processing and checking of all turbine events, alerts, service protocols in Center of Operations Highly qualified staff, trained experts with data background O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

FOR SUCCESSFUL MONITORING INTERPLAY BETWEEN KNOW HOW, NETWORK AND EFFICIENT IT SYSTEMS IS CRITICAL Success Factors of Monitoring

IT • Stable and Network integrated IT systems • Regular contact to • Infrastructure manufacturers, suppliers, needs for data operators and service storage and access providers and exchange

Know How • Experience with wind farms • Qualification and regular training of personnel O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

OPERATIONS PLUS: INDEPENDENT OPERATIONS AND MAINTENANCE

Operations are controlled by WINDWERK, maintenance by specialized ISP

Modelo - Operations Plus

Módulo 1 - Operação e Monitoring WINDWERK Inspeções Preparação e Transfer de Phasing - Inspeções técnicas Adaptação Know How Out - Plan/Controle de Manutenção

Módulo 2 Execução Manutenção preventiva SUEDA

Execução Manutenção corretiva O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017 AGENDA

Company

Challenges

O&M 2.0 – Independent Operations

O&M Scenarios

Summary O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

NEW O&M OPTIONS WITH ISP: MONITORING CAN COMPLEMENT OR EVEN REPLACE EXISTING SERVICE CONTRACTS Basic maintenance in combination with independent operations can be less expensive and more efficient than full-service O&M in the long run

OPEX by Maintenance Scenario O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

MONITORING CAN COMPLEMENT EXISTING FULL-SERVICE CONTRACT OR REPLACE OPERATIONS Monitoring tasks of ISP by maintenance scenario

Full Maintenance + Monitoring Basic Maintenance + by ISP Operations by ISP • Check the execution of the service • Take care of daily operations provider on a daily basis • Supervise basic maintenance • Commission preventive

ISP ISP • Recalculate availability Tasks Tasks • Close „gaps“, if any measures and repairs as required

• Can be implemented at any • Right from the beginning moment • Upon end of guarantee period

When • Upon end of full-service period

• Full-service contract will last some • Price increase of full-service

more years coverage Best when • Reaction time and quality of • More transparency and less service lead to production losses dependancy is desired O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017 AGENDA

Company

Challenges

O&M 2.0 – Independent Operations

O&M Scenarios

Summary O&M 2.0: INDEPEDENT OPERATIONS AND MAINTENANCE OF WINDFARMS V German-Brazilian Renewable Energy Business Conference Natal/RN, 30th of May 2017

MONITORING AND INSPECTION SERVICES HELP YOU TO MAXIMIZE YOUR PERFORMANCE AND REDUCE YOUR COSTS

Monitoring and Inspections ... WINDWERK offers ...

help you to represent your interests Due Diligence, Inspections, Operations, Training in dealing with manufacturers as Competence in the management of ancient and well as service companies modern turbines of major manufacturers (e.g. keeps you informed about the state Suzlon/Senvion, Enercon/Wobben, Vestas, GE) of your wind park and the work of Multidisciplinary and multilingual teams your service providers Specialized network of experts, service providers, ensures quick reaction in case of suppliers and manufacturers disturbances Use of proven systems, stable and independent reduce operational costs and management and IT production losses significantly Application of European best practices

Making your investment more profitable! T H A N K Y O U - W E R E M A I N A T YOUR DISPOSAL !

Thomas Kunzmann Rua Correia Dias 184, 11o andar Managing Director São Paulo [email protected]  (11) 4081 1976

www.windwerk.com.br [email protected]

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