21 years of Wind generation Experience

Curacao Netherlands Antilles.

Presented by Mr. ir. Irvin Hanst Manager Corporate Affairs

Legal structure of the corporation

StIP/EGC Holder of 100% Common stock

Mirant Holder of 100% Preferred stock

100% ommon Stock

100% Common Stock

100% Common Stock

49% Common Stock

Production

Distribution

Multi Utility

CUC Holdings B.O.O

Responsibilities Aqualectra

100% water production 100% water distribution 90% electric power generation 100% electric power distribution

Characteristics electrical system

66 kV transmission system (100% underground cables) 30 kV sub-transmission system (100% underground cables) 12 kV distribution system (75% underground cables) 220/127V, 50 Hz and 380/220V, 50Hz LV system (50% underground cables) Peak electric load Curacao is 105 MW Total generation capacity Aqualectra is 165 MW 75 MW steam units and 90 MW diesel units 10 years ago 100 MW steam units and 35 MW diesel units

Characteristics continued
All power generation on transmission & sub transmission level Less then 1% of energy losses in transmission & sub transmission level Less then 2% of energy losses in distribution system Almost 9% of energy losses in LV system

History wind generation Curacao Renewable energy is part of our business plan since the 1970s Resulted in contract agreement in 1984 for the first wind generator for Curacao at Tera Kora. Wind generator was a 300 kW NEWECS-25 of manufactory FDO-Stork Type was fixed speed induction generator with stall This first wind generator became operational in October 1985

Experience first wind generator First wind generator tripped frequently on over speed Brakes suffered excessive wearing Major breakdown due to braking system of wind generator Extensive wind measurement and wind study

Results study
Wind in Curacao comes 95% of the time from the same direction between NE and SE Wind speed is almost constant year around Average wind speed at 30 m is 8 - 9 m/s Weibull shape factor between 4 and 5 Best sites Tera Cora and Playa Kanoa First wind generator was designed taking into account a wind speed of 6.5 m/s measured at 10 m, based on 30 years wind measurement done by the metrological service of Curacao

First wind park on Curacao

New wind farm consisting of 12 x 250 kW wind generators (Manufactory Nedwind) was installed at Tera Kora Type fixed speed with stall optimized for wind of 8.5 m/s Shaft height 30 m Rotor diameter 25 m Became operational in 1993 Capacity factor 34% Availability 90%

Tera Kora wind farm

Continued

Additional studies in 1995

Additional wind measurements and study for 50m height Study to determine fluctuations in power output of first wind farm Grid study to determine influence of first wind farm on the system frequency and voltage Grid study to determine maximum penetration level of wind generation for the Aqualectra system

Results additional studies

Average wind speed at 50 m is 9.5 m/s Wind fluctuations impact power output of the individual wind generators The wind fluctuations have little or no impact on the power output of the wind farm Since power output of wind farm is constant, this cause little or no fluctuations in the system frequency and voltage Care shall be taken of the reactive power consumption of the wind farm Maximum penetration level of wind generation is 12%

Second wind farm owned by IPP

Wind farm consisting of 18 x 500 kW wind generators (Manufactory Nedwind) was installed at Playa Kanoa Type fixed speed with active stall optimized for wind speeds between 9 and 12 m/s Shaft height 47.2 m Rotor diameter 46.1 m Became operational in 2000 Average wind speed 9.2 m/s Capacity factor 58.3% Availability 96%

Experiences second wind farm

Relatively high consumption of reactive power In beginning trip on frequency deviations In beginning trip on voltage fluctuations In beginning trip on all faults in the electrical system

After fine tuning these problems were solved and wind generators only trip when the deviations exceed the set values, which is hardly never. The wind farm even withstand most of the faults in the electrical system.

Dilemma
According to our utility plan the idea is to reach approximately 50% penetration level with wind energy by the year 2020. Study implemented in 1995 shows maximum penetration level of 12% due to reactive power consumption of induction type wind generators with stall or active stall. First wind farm is reaching 15 years which was its technical lifetime ( ROI reached after 9 years) Increasing fuel prices make wind energy very attractive option to stabilize costs.

How to proceed?
Aqualectra is preparing a grid connection standard for Independent Power producers including Wind farms. Standard shall at least include: Voltage ride through requirements; Voltage control and reactive power capabilities; Off nominal frequency operating requirements; Power quality, harmonic and resonance issues; Monitoring requirements; Commissioning tests.

Expectations wind energy

New wind generator designs like: Doubly fed induction generators or Full converter types are promising. They seem able to fulfill the requirements of the grid connection standard we are preparing. This is being investigated and we expect the results by mid 2007. This study shall also comment on the impact of the new generation of wind farms on the maximum penetration level of wind power in the Aqualectra system.

Continued
If the results of the studies are positive the first wind farm of Aqualectra will be replaced by a new one before 2010. Probably 12 x 1 MW generators instead of 12 x 0.25 MW. The site has space for approximately 25 wind generators. The experience with this new wind farm will show if it is feasible to upgrade the Playa Kanoa wind farm from 18 x 0.5 MW to 18 x 1 MW units or bigger.

Conclusions
Wind power is very attractive option for Aqualectra Grid connection standards must be in place to prevent future problems with reactive power consumption and frequency fluctuations. With stall and active stall induction generators the penetration level for wind power in Curacao is limited to 12% which was already reached in 2000. Doubly fed induction generators and Full converter wind generators promise to solve actual problems Aqualectra encountered with wind power Hopefully this can increase the maximum penetration level of wind power in Curacao up to at least 50%

Questions?

Thank you very much