WindEnergy Wind Energy Sweden

September 2009

ExecutiveSummary
Swedenhasaliberalizedelectricitymarketsince1996 In2008,installedcapacitywasat1,021MW Planongenerating30TWhfromwindpowerby2020 Wind energy potential is estimated to be ~540 TWh/year Windenergypotentialisestimatedtobe 540TWh/year Drivers:Geographicaladvantages,policiesdiscouragingconventionalenergyuse,Green CertificateSystem,costconsiderationsandEUdirectives Challenges:Legislativeshortcomings,negativeexternalitiesandweakeningoftheSwedishcrown ElectricityCertificates Afixedquotabasedsystemforrenewableelectricitygeneration ClimateandEnergyPolicy Towardsincreasingtotalenergyconsumptionviarenewableenergy Programmessupportingtechnicaldevelopment Fundingprojectstoenhanceoffshorewind technology VindforskProgramme Analyzingshortcomingsinwindfarmapplicationsproceduresandgrid capacity.Developingcosteffectivewindpowerplantsanddesign. GrantsforR&D Aimedatenvironmentalsustainability,purchaseoftechnologyanddevelopment programmespriortomarketentry Oth i iti ti Otherinitiativesareaimedatdevelopingtechnicalexpertise,providingfinancialincentivesand i d td l i t h i l ti idi fi i li ti d streamliningthelegislativeprocess Themarketcomprisesofamanyplayersintheutility,turbinemanufacturingandconsultancy space Major Players MajorPlayers
EolusVind,NordexandVattenfall 2

Market Drivers& Challenges

Government Government Initiatives

Competition p

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MarketOverview Drivers & Challenges Drivers&Challenges GovernmentRegulations Competition KeyDevelopments

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WindpowermarkethasbeengrowingintheEuropeanUnion duetostronginitiativesfromthelegislature
Overview
Windisthefastestgrowingpowertechnologyin Europe 35%ofalladditionalenergyinstallationsin2008 werewindpower In2008,thewindturbinemarketwasvaluedatUSD 16.18bn E i Estimatedgrowthinoffshorewindcapability d h i ff h i d bili
2010 3.5GW;2020 35GW;2030 120GW

InstalledWindEnergyCapacity
MW
300,000 250,000 200,000 150,000 100,000 100 000 50,000 0 64,935 6 93 48,031 56,517 34,372 40,500 80,000 300,000

+9%
180,000

2004

2005

2006

2007

2008

2010e 2020e 2030e

ExpectedInvestmentinWindEnergy
USDbn
300 250 200 150 100 50 0 44 269

ElectricityConsumptionMix
TWh
1,400

1,370 +7% 35% 704 504 14% 69% 16% 1% 2005 537 15% 66% 17% 1% 2006 25% 51% 3% 19% 1% 2010e Wind Hydro Biomass 28% 18% 13% 2% 4% 2020e Photovoltaic GeoThermal Others

+146%
172

1,200 1,000

800 600 400 200 0

200810e

201120e

202130e

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Swedensliberalizedenergymarketprovidesstrong opportunitiesforplayersinthewindenergysector
Overview
Swedenliberalizeditselectricitymarketin1996, openingbothelectricitytradingandelectricity productiontocompetition d i ii Establishedaplanningframeworkof30TWhfrom windpowerby2020
20TWhonlandand10TWhoffshore

InstalledWindEnergyCapacity
MW
1,200 1,000 800 600 400 200 0 328 399 442 510 572 1,021

+21%

788

The wind energy potential in Sweden is estimated to ThewindenergypotentialinSwedenisestimatedto be~540TWh/year

2002

2003

2004

2005

2006

2007

2008

FutureWindEnergyOutlook
Swedenhasthehighestrenewableenergytarget,by 2020,ofallEUmembercountries
Accountfor49%offinalconsumptionofenergy

ElectricityProductionMix
TWh
160 140 120 100 80 60 40 20 0

148.5 1% 40%

154.7 1% 47%

140.3 1% 44%

145.1 1% 45%

146.1 1% 47%

Wind Hydro Nuclear Biofuel Others

Targetedcapacitystandsat1,665MWin2010and 7,500 10,000MWby2020 Underexistinglegislation

Generationwillreach8TWhby2020

51% 5% 4% 2004

45% 5% 2005 3%

46% 6% 3% 2006

44% 6% 2007 4%

42% 7% 3% 2008

Changesinlegislationwillleadtothetarget generationby2020

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MarketOverview Drivers & Challenges Drivers&Challenges GovernmentRegulations Competition KeyDevelopments

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Driversandchallenges

Drivers
Geographicaladvantages Geographical advantages

Challenges
Legislativeshortcomings

Policiestowardsdiscouragingtheuse ofconventionalenergysources GreenCertificateSystem Costconsiderations EUdirectives

Negativeexternalities WeakeningoftheSwedishcrown

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Geographicallocationofthecountrycoupledwithmajor governmentpoliciesaremajordriversinthemarket
Geographicaladvantages
Thecountryexperiencesstrongwindsduetoitsgeographicallocation Strongopportunitiesexistinonshoreandoffshoreenergygeneration Onshoresitesfacewindspeedsinexcessof7ms1.. Majorgrowthinthissegmenthastaken placeduetodevelopmentoffacilitiesintheforestsofSwedenaswellasintheNorthernregion whichissuitableforwindpowergeneration Stronggridcapacityinthesouthhasallowedforthedevelopmentofoffshorewindfarms SwedenisstrategicallylocatedintheBalticSearegionwhichallowsforaccesstoScandinavian andnorthernEuropeanmarketsforexportingenergy

Impact

Policiestowardsdiscouragingtheuseofconventionalenergysources
TheEUDirectiverequiresSwedentogenerateasubstantialfractionoftotalenergythorough renewablesources Specialcarbontaxintroducedin1991isbeingusedasaninstrumenttodiscouragetheuseof fossilfuelsforgeneratingenergyandtodevelopefficientandenvironmentfriendlytechnology Thetaxratehasbeenincreasingsubstantiallysinceitsinception
USD/kg
0.15 0.10 0.05 0 05 0.00 0.035

Impact

+8%

0.146

1991

2009

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IntroductionofGreenCertificatesandlargescaleinfrastructural developmentwillboostthemarket
GreenCertificateSystem
TheGovernmentintroducedthegreencertificatesysteminMay2003towardsgenerating 17TWhofenergyby2016byusingrenewablesources Thishashadadirecteffectonparticipantsacrossthevaluechain
Consumersarerequiredtofulfillacertainquotaofenergyconsumedviarenewableenergysources Similarly,theproducersalsomusteithergenerateelectricityviarenewablesourcesforwhichgreen certificatesaredistributedbythegovernmentorelsepurchaseitfromothervendors

Impact

The annual quota obligation has been constantly increasing with strong penalties for non Theannualquotaobligationhasbeenconstantlyincreasingwithstrongpenaltiesfornon compliance +27%
USD/MWh
20 0 27 34

2007

2008

Thismakesitimperativeforconsumersandproducerstoachievetheirminimumlevelofquota obligationandhencethissectoractsasastrongincentivefornewandexistingplayers

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Feasibilityintheusageofrenewableenergysourcesandthegrowing costincentivesinthemarket
Costconsiderations
Recentvolatilityinthepricesofcrudeoilhasaffectedlevelsofdemand.Thiswillactasa driverinthemarketasplayersaremoreinclinedtowardsusingpowergeneratedthrough alternativeinexhaustiblesourcesofenergy lt ti i h tibl f
USD/barrel
150 100

Impact

CrudeOilPrices

71.78 71 78
50 0 Aug07 Sep07 Nov07 Dec07 Jan08 Feb08 Jul08 Sep08 Nov08 Dec08 Jan09 Feb09 Mar09 Apr09 May09 Jun09 Jul09 Aug09

Majorfluctuationsincrudeoilandhighcarboncosts hasmadeutilitiesshifttheiremphasisfrom conventionaltorenewablesourcesofenergy Thecostofwindturbineinstallationshasfallen considerably,primarilydueto considerably primarily due to

Growthinproductionoflargerturbines Enhancementintheefficiencyofturbinesdueto technologicaldevelopments Furthercostreductionsisexpectedoncethereisabetter balancebetweendemandandsupplyofwindturbines

FallinOnshoreWindEnergyGenerationCost
USD/kW
1,400 1,200 1,000 800 600 400 200 0 1,355 1,181 1,127

2007

2010e

2020e

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EnergytargetssetbyEuropeanUnion(EU)isexpectedtoleadto majorgrowthinthemarket
EUDirective
MandatorytargetssetbytheDirectiveonthepromotionoftheuseofenergyfromrenewable sources isexpectedtoleadtoagrowingmarketprimarilydueto
Governmentcreatingpolicytowardsinducingplayerstoenterthissegment Playersexpandingorforayingintotherenewableenergymarkettowardscapitalizingonthestrong opportunitycreatedbytheDirectivetowardsmeetingtheenergystandard
Member State Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Share of renewables in 2005 23.30% 2.20% 9.40% 2.90% 6.10% 17% 18% 28.50% 10.30% 5.80% 6.90% 4.30% 3.10% 5.20% Share required by q y 2020 34% 13% 16% 13% 13% 30% 25% 38% 23% 18% 18% 13% 16% 17% Member State Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovak Republic Slovenia Spain Sweden United Kingdom Share of renewables in 2005 34.90% 15% 0.90% 0% 2.40% 7.20% 20.50% 17.80% 6.70% 16% 8.70% 39.80% 1.30% Share required by q y 2020 42% 23% 11% 10% 14% 15% 31% 24% 14% 25% 20% 49% 15%

Impact

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Majorbarrierinthemarket,complicatedapplicationprocedure andlegislativedelays,haveledtocostescalations
LegislativeShortcomings
Theentireprocessofapplyingforapermittodevelopwindenergyfacilitiestothefinal attainmentofthepermitisextremelycumbersome Severalpermitsarerequiredforasingleprojectinaccordancewith
TheEnvironmentalCode ThePlanningandBuildingAct TheElectricityActaswellasotherregulations

Impact

The appeal system which comes into play during any dispute is complicated Theappealsystem,whichcomesintoplayduringanydispute,iscomplicated
Duetotheexistenceofthelargenumberofregulationsseveraldifferentreviewswithpossiblemultiple appeals,eventhoughitessentiallyisthesameassessmentthatismade

Slowpoliticaldecisionmakingoncreatingpoliciestowardssupportinggrowthinwindenergyis amajorshortfallinthesystem Theapplicationprocedurevariesacrossplantsizes

Plantsize<1MW:Buildingpermissionfromlocalauthorities Plantsize>1MW:Buildingpermissionfromlocalauthoritiesandcountriesadministrativeboard Plantsize>10NW:Permissionisrequiredfromtheenvironmentcourtandthegovernmentauthorities

Thustheprocessofapplyingforpermissiontobeginaprojectistimeconsumingandcantake yearstobesanctionedleadingtomajorcostescalationsandeconomicrisksmakingthe outcomeofpracticallyeveryprojectuncertain Thishasdeterredplayersfromenteringthemarket

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Negativefalloutsofwindturbineinstallationsandweakeningof theSwedishcrownarechallengesthemarketfaces
NegativeExternalities
Windfarmsfindsstrongresistanceduetoitsdetrimentaleffectsonland
Affectsvaluableareasofbiodiversity Seenasathreattotheprotectionofbirds Occupieslargespacesleadingtothelackofrecreationalarea

Impact

Offshorewindmillfarmsalsohaveamajorimpacton
Theseabedandtheprotectionofmaritimeecologicalvalues They lead to visual disturbances Theyleadtovisualdisturbances Resultsinconflictswithotherstatesinterestse.g.freepassageandthelayingofpipelinesontheContinental shelf Movementfurtherawayfromtheshoreleadstomajorlegalchallengesasinternationalinterestssupersede nationalinterests

WeakeningoftheSwedishcrown W k i f th S di h
Windpowercapacitywaspreviouslyforecastedtogrowby70%to400MW.Duetothe weakeningoftheSwedishcrownthemarketisexpectedtoexpandby150200MWin2009 Thedowngradeinforecasthasbeenprimarilyduetotheweakeningofthecrownagainstthe eurowhichisexpectedtoleadtoahikeinpricesofwindpowerfarms Furthermore,bankshaveraisedtheirrequirementsfortheinvestmentplansofwindenergy companieswhichisverycapitalintensive Revenuegeneratedbycompanieshasbeenshrinkingduetothefallinelectricitypricesin2009

Impact I t

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MarketOverview Drivers & Challenges Drivers&Challenges GovernmentRegulations Competition KeyDevelopments

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GovernmentInitiatives
ElectricityCertificates

ClimateandEnergyPolicy

ProgrammesSupportingTechnicalDevelopment

KeyInitiatives
`

VindforskProgramme

Grantsforresearchanddevelopmentinthefieldofwindenergy

Otherdevelopments

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GovernmentInitiative(1/7)
ElectricityCertificates Inception& Purpose
Thesystemcameintoforceon1st May,2003 Itwasintroducedinordertoboostthelevelofrenewableelectricitygeneratedthroughafixedquotabased systemthroughthedisbursementofelectricitycertificates.Thisreplacedtheexistingsystemofpublicgrantsand subsidies ElectricityproducersreceiveacertificatefromthestateforeachMWhofrenewableelectricitythatthey produce Theseproducershavethelicensetosellthesecertificatesthusprovidingthemwithadditionalrevenue Demandforelectricitycertificatesiscreatedbytheobligationthatelectricitysuppliersandcertainelectricity usersarerequiredtopurchasecertificatescorrespondingtoaparticularproportionoftheirelectricitysales and/orelectricityuse Ifproducersareunabletofindbuyersoftheircertificates,theGovernmentmustbuythemout.Consumersthat failtobuytherequirednumberofcertificatesaresubjecttocertainpenalties Plantscommissionedafterthestartoftheelectricitycertificatesystemareentitledtoreceiveelectricity certificatesfor15yearsoruntiltheendof2030,whicheverisearlier Plants that were started before the certificate system was introduced are entitled to certificates until 2012 Plantsthatwerestartedbeforethecertificatesystemwasintroducedareentitledtocertificatesuntil2012 Plantsthat,atthetimeoftheirconstructionorconversion,receivedapublicinvestmentgrantafter15th February1998areentitledtocertificatesuntiltheendof2014 Thesequotasarerevisedonayearlybasiswithregardtothechangingeconomicscenarioandtherevised demandforelectricitygenerationthroughrenewablesources d df l t i it ti th h bl Thishasencouragedtheconstructionofnewplantsforthegrowthofrenewableelectricitygeneration

Implementation

Legalities

Dynamisminthe y system

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GovernmentInitiative(2/7)
ClimateandEnergyPolicy TargetstobeAchievedby2020 50% of total energy consumption will be via renewable energy 50%oftotalenergyconsumptionwillbeviarenewableenergy 10%ofenergyinthetransportsectorwillbeaccountedforbyrenewable energysector 40%reductioningreenhousegasemissions
ReferstothosesectorsnotincludedintheEUEmissionsTradingSchemenamely transport,housing,wastedisposal,agricultureandforestry,aquacultureandsomeother partsofindustry

Initiatives Improvementintheelectricitycertificate systeminordertomeettheincreasedtarget Establishmentofanationalplanning frameworkforwindpowerinordertoachieve aproductioncapacityof30TWh a production capacity of 30 TWh Usageofeconomicinstrumentssuchas carbondioxidetax Improvementintheinfrastructurefor connectingrenewableelectricityproduction connecting renewable electricity production tothenationalgrid

Impact Windpowerproductionwillincreasetenfold Housingandcommercialpremiseswillbe heatedwithouttheuseoffossilenergy

Theuseoffossilfuelsforheatingisexpectedtobe phasedoutby2020 phased out by 2020

By2050,thecountryisexpectedtohavea sustainableandresourceefficientenergy supplywithzeronetemissionsofgreenhouse gasesintotheatmosphere

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GovernmentInitiative(3/7)
ProgrammesSupportingTechnicalDevelopment In2003,theSwedishEnergyAgencylaunchedaprogramtosupporttechnicaldevelopmentfor large scaleoffshoreplantsandplantsinarticareas largescale offshore plants and plants in artic areas Theaimwastostimulatethemarket,achievecostreduction,andgainknowledgeabout environmentaleffectsfromwindpoweroffshoreandinthearcticareas Over20032007,thebudgetwasUSD54.47mn Thebudgetsanctionover200812standsatUSD49.16mn
Estimatedproductionandestimatedyearof operation 330GWh;operatingsince2007 285GWh;plannedfor2008butrecently postponed 89GWh;plannedforfulloperationin2009 89 GWh; planned for full operation in2009 100GWh Noproduction.Onlydevelopmentprogram Noproduction.Onlydevelopmentprogram

Inceptionand Inception and Purpose

Investment

Project Lillgrund UtgrundenII Vindpark Vnern Uljabouoda KriegersFlak Vindval

RecipientCompany OrestadsVindkraftpark E.ONVindSverige VindparkVanern KraftAB SkellefteKraftAB SwedenOffshoreWindAB NA

Support(USDmn) 29.92 9.83 5.62 5 62 4.92 1.33 4.92

Location Offshore Offshore LargestSwedish lake Onshore artic Offshore NA

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GovernmentInitiative(4/7)
VindforskProgramme Inception& Purpose
TheVindforskIIprogrammewasconductedbetween200608atatotalbudgetofUSD6.32mn Itwastargetedtowardsdevelopingknowledgeinordertofacilitatethedeploymentofwindenergyandits integrationwiththepowergrid Itfocusedprimarilyonthetechnologicaldevelopmentsofwindturbines Opportunitiesforwindpowerexpansionandthebarrierscreatedbythepermittingprocess,gridconnection analysisandtechnicalproblems y p Soundpropagationaroundoffshorewindturbines Analyzingwindenergyincoldclimates Developingmethodstopreventicefromaccumulatingonrotator bladesaswellasmeasuringanddetectingiceformation Windturbinedesign Towardstheoptimizationofwindfarms Gridconnection Focusingonwaysduringtheplanninganddesignstagestoensurethatwindfarmsmeetthe coderequirementsoftheSwedishNationalGrid d f h d h l d Operationandmaintenanceactivities

ResearchProjects

Future

ThisprogrammewasextendedinDec2008withtheintroductionofVindforskIII Itwillbecarriedoutbetween200912withatotalsanctionedbudgetofUSD2.81mn/yrwhichwillbefinanced equallybyElforskandtheSwedishEnergyAgency TheprogrammewillbeadministeredbyElforsk,theSwedishElectricityUtilitiesR&Dcompany Majorfocusareaswillinclude

Analyzingwindresourceandestablishment Developcosteffectivewindpowerplantanddesign p p p g Optimizefunctioningandmaintenanceofplants Windpowerinthepowersystem

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GovernmentInitiative(5/7)
GrantsforResearchandDevelopmentintheFieldofWindEnergy Thesegrantsareauthorizedbytheenergyagencytowardssupportingvariousmeasuresaimingat environmentalsustainability,purchaseoftechnologyanddevelopmentprogrammespriortomarketentry y, p gy p p g p y

Measuresfostering environmentalsustainability

Technologygrants

Developmentscostspriorto marketentry

Grantsofupto40%ofthe additionalcostsarisingfor arenewableenergyplant bl l comparedtoatraditional powerplantareprovided whileSMEsmaybegiven asubsidyof50% y 100%returnisprovidedif theapplicantprovesthatit isunabletoconstructthe plantandmustguarantee thatthefacilitywillnot that the facility will not receiveanyfurthersubsidy

Technologygrantsmay amounttoamaximumof amount to a maximum of 50%oftheadditionalcosts anddonotexceedatotal ofUSD286,678withina periodof3calendaryears Th Theseamountsare t specifiedbyRegulationNr. 1998/2006bythe EuropeanCommissionas specifiedinForordning p g 2003:564

Entities can receive a Entitiescanreceivea reimbursementofupto 25%ofthecostsarising directlyfromthe developmentofenergy generatingtechnology ti t h l products Thissubsidyispaiduntil thetotalsubsidybudgetis exhausted

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GovernmentInitiative(6/7)
Programmewascarriedouttowardsstrengtheninglocalactivitiesand knowledgeofwindpowerwithatotalinvestmentofUSD1.83mnin2008 Activitiesunderthisprogrammeinclude
Stimulatinglocalwindpowerdevelopment g p p Strengtheningthecompetenceofkeypeopleinvolvedinwindpowerplanningandin helpingmunicipalitieswithcontactsbetweenactorsrelatedtowindpowerestablishment Supportprojectsthatenhancethequalityofeducationforwindpowertechnicians

Buildingtechnical expertise expertise

Financial Incentives

I 1994 h i In1994,theenvironmentalbonuswasintroduced,reducingtaxesonenergy lb i d d d i generatedbywindpowerstations From2003,windturbinesinstalledbefore1st January2003weresubjectto transitionalregulationsprovidingsupportforfiveyears,tilloperatingfor25,000 hoursequivalenttofullload hours equivalent to full load
SupporthasbeengraduallyreducedfromUSD21.07/MWhto4.21/MWhin2007 Theprogrammehasbeenextendedfor2009

Vindval Programme

Theobjectivewastofacilitateanincreaseintheexpansionofwindpowerby compilationofdataforenvironmentalimpactassessments il ti fd t f i t li t t Projectscarriedoutinclude

Environmentaloptimizationoffoundationsforoffshorewindpower Noisefromoffshorewindpoweraffectingseabasedfauna Reasons for support acceptance and resistance to wind power building Reasonsforsupport,acceptance,andresistancetowindpowerbuilding

Theprogrammehasbeenextendedtill2012atabudgetofUSD4.92mn
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GovernmentInitiative(7/7)
Thegovernment,afteranextensiveinquiryprocessplanson
DevelopingtheCertificateSystemsbyallowingtheSwedishEnergyAgencytoanalyzeanddevelopmethodstomeettheir targetof25TWhby2020aswellasexpandingthemarketfortheCertificateSystemtoothercountries Theplanningprocessforwindpowerisexpectedtobesimplifiedbyremovingthedoubledpermissionsprocess.Thus, planningwillbepermittedwithoneofthesepermissions

LegislativeChanges

Promotinginvestments SwedishEnergyAgencyhascarriedoutinitiativesonbehalfoftheGovernmenttopromoteinvestmentby overseasenterprisesinSwedishenvironmentaltechnology byoverseas TheaimisalsotocreatestrategicalliancesbetweenoverseasandSwedishenterprises enterprises

SwedensignedagreementswiththeUnitedStates,BrazilandChinaontechnologicaldevelopmentforrenewableenergy

R&DInvestmentsbytheGovernmentintheWindEnergySegment Institution LundUniversity,Departmentof Sociology GotlandUniversity CulturalHalland LundUniversity,Departmentof Ecology StockholmUniversity UniversityofStockholm SwedishUniversityofAgricultural y g Sciences Investment(USD) 469,139 280,938 294,984 224,750 89,450 90,549 327,638 327 638 Project Theacceptanceofwindpowerintheopencountryside,forestmountainsand sea localconditionsfordevelopment Landscapeanalysisofthewind:thepublic'sinterpretationsandvalues Wind&Issues Landbasedwindenergiesimpactontheculturalenvironment Birdsandthewindintheforestenvironment Effectofpiledrivingsoundonfishbehaviour Acousticdisturbanceofmarinelifeinconnectionwithwindturbines a continuationofLillgrund Planningforimpactassessmentsattheestablishmentoflargescalewindfarms g p g effectsonfarmedreindeer

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MarketOverview Drivers & Challenges Drivers&Challenges GovernmentRegulations Competition KeyDevelopments

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PlayersintheMarket(1/15)
CompanySnapshot:EolusVind
CorporateInformation
Headquarters Founded AreaofExpertise Hassleholm 1990 Planningofwindpowerplants, managementofwindpowerinstallations andconsultancy y HansGoranStennert Chairman BengtSimmingsskold CEO

FinancialPerformance
Revenue USDmn
80 60 40 20 3.6 0 24.1 46.7

Revenue Profit/Loss
67.6

Profit fi USDmn
12 10 8 6 4 2 0

KeyPeople

2005

2006

2007

2008

BusinessHighlights Business Highlights

Plansonestablishing50turbinesin2009ataninvestmentofUSD189.72mn Plannedconstructionsinclude
3windturbinesinLund,whichisexpectedtostartby2013;6windpowerplantsintheMellerudmunicipalityataninvestmentofUSD 4.14mn;10windturbinesinNordanstigataninvestmentUSDof50.09mn;windfarmconsistingof3windturbinesatLangberget, 4 14 10 i d t bi i N d ti t i t t USD f 50 09 i df i ti f 3 i d t bi tL b t municipalityofBollnas;4windturbinesinmunicipalitySolvesborg;12windturbinesbetweenAlgeredandAnnsjoninNordanstig

Partnerships
ItispartneringwithOlmeVindkrafttoconstruct16windturbines,northoftheSwedishtownOlmewithturbinecapacityof23MW PartneredwithVingkraftto
BuildawindfarminHanoBight,southSwedenwhichwillcompriseof500windpowerturbines Developa28turbinewindfarminBlekinge

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PlayersintheMarket(2/15)
CompanySnapshot:Nordex
CorporateInformation
Headquarters H d Founded AreaofExpertise KeyPeople Norderstedt 1985 Manufacturingwindturbines ThomasRichterich CEO h h h BernardSchaferbarthold CFO

FinancialPerformance
Revenue USDmn
2,000 1,500 1,000 1 000 500 0 469.4 812.6 812 6 1,187.1

Revenue Profit/Loss

Profit fi USDmn
1,750.8 80 60 40 20 0 20

2005

2006

2007

2008

BusinessHighlights Business Highlights

PlansoninvestingUSD38.85mntowardstheconstructionof9windturbinesonthemountainManbergetinJattendal inSwedishmunicipalityNordanstig
Itisexpectedtobecomeoperationby2011 The project is expected to require an investment of USD 25 16 mn TheprojectisexpectedtorequireaninvestmentofUSD25.16mn

Plansondevelopingawindfarmwith9windturbineonthemountainManbergetinJattendal
Theforecastedcapacitystandsat22.5MW

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PlayersintheMarket(3/15)
CompanySnapshot:Sodra
CorporateInformation
Headquarters Founded AreaofExpertise Vaxjo 1926 Forestryservices,woodproducts,pulp, interior,energy wind,biofuel,district heating g LarsEricAstrom Chairman LeifBroden CEO

FinancialPerformance
Revenue USDmn
3,000 2,500 2,000 1,500 1 500 1,000 500 0 2,447.5

Revenue Profit/Loss
2,440.7 2,733.0 2,585.5

Profit fi USDmn
300 250 200 150 100 50 0

KeyPeople

2005

2006

2007

2008

BusinessHighlights Business Highlights

OperatesinthewindenergysectorthroughitssubsidiarySodraVindkraft Itisplanning30windpowerprojectsvaluedatUSD1.13bn Theyplanonbuilding250windpowerplantsby2013producing600MWofwindpower Statkraft,aNorwegianstateownedutility,plansonacquiring90%ofSodraswindpowersubsidiary StatkraftplansoninvestingUSD1.40bninthecompanytowardsdevelopingrenewableenergygeneration Strongfocusonresearchactivitiestowardsdevelopingenhancedproducts

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PlayersintheMarket(4/15)
CompanySnapshot:Vattenfall
CorporateInformation
Headquarters H d Founded AreaofExpertise KeyPeople Stockholm 1909 Primarilyautilityfirm LarsG.Josefsson CEO f DagAndresen CFO

FinancialPerformance
Revenue USDbn
30 25 20 15 10 5 0 19.9 20.9 22.1

Revenue Profit/Loss
25.3

Profit fi USDbn
4 3 2 1 0

2005

2006

2007

2008

BusinessHighlights Business Highlights

PlansoninvestingUSD6.48bninwindpowerby2016inordertogenerate8TWhfromwindpower ItisexpectedtoinstallwindturbinesinStorRotliden,intheAseleregionofnorthernSweden
Thefacilitywillhaveacapacityof80MWandisexpectedtobecompletedin2010

Planstoconstruct4050windturbinesinValdemarsvik
EstimatedtocostbetweenUSD196280mnandwillgenerate240GWhofelectricity/yearwithconstructionbeingplannedfor2010

Planstoestablishwindfarmswith20turbinesinsouthernpartofValdemarsvikmunicipality
Expectedtobecompletedby2011

A i d A AcquiredAmecswindenergyataninvestmentofUSD72mn i d i f USD 72
Amecwillprovideconsultancy,engineeringandprojectmanagementservicesforonshoreandoffshorewindfarms
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PlayersintheMarket(5/15)
CompanySnapshot:AF
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Stockholm 1964 Consultancy 08: Revenue USD 706 5mn; Profit USD 08:Revenue USD706.5mn;Profit USD 73.6mn UlfDinkelspiel Chairman JonasWistrom CEO

BusinessHighlights
DevelopingajointwindpowerplanforSwedish p g j p p municipalitiesVilhelmina,DoroteaandAsele
30siteshavebeenshortlistedforestablishingwindfarm

Initiatedplansforawindfarmconsistingof~60wind turbinesonHolmonintheSwedishmunicipality Umea

CompanySnapshot:AriseWindpower p y p p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Laholm 2006 Manufacturingturbinesanddeveloping windfarms.Enteringtheutilityspace 08:Revenue USD1.4mn;Loss USD0.5 mn Pehr GGyllenhammar Chairman PeterNygren MD

BusinessHighlights
Plansonsettingup300largescalewindturbines generating2TWhofelectricityannuallyby2014 E t d i t EnteredintoanMOUwithGEEnergyforthesupply MOU ith GE E f th l of57 2.5MWwindturbines Developing10windturbinesinKnahultinLaholm municipalitywith3MWcapacity Plans on constructing 25 wind farms in Soderkoping Plansonconstructing25windfarmsinSoderkoping ataninvestmentofUSD85.21mn
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PlayersintheMarket(6/15)
CompanySnapshot:EonVind
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Malmo 2000 Utility NA HakanBuskhe CEO

BusinessHighlights
Plansondeveloping5windturbinesatSkabersjoin p g j Svedalamunicipality,southernSweden Planstoconstruct14windturbinesinJonstorpin SwedishmunicipalityOsby PartneredwithNybroEnergitoconstruct2wind powerfarmswithatotalof25turbinesinNybro
InvestmentamountstoUSD131.74andisexpectedtobe operationalby2012

CompanySnapshot:FredOlsenRenewables p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Storuman 1997 Developingwindfarmprojects NA NA

BusinessHighlights
WhollyownedsubsidiaryofBonheurandGangerRolf Participatesinsiteselection,planningand constructionofwindfarms t ti f i df Planstoconstructa33turbinewindfarmin FabolideninSwedishmunicipalityVindeln
Theconstructionisexpectedtostartin2011andthe operationin2012 p

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PlayersintheMarket(7/15)
CompanySnapshot:GoteborgsEnergi
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Gothenburg g 1990 Districtheating,cooling,gas,powerline, windpower,electricitytrade 08: Revenue USD 614 mn 08:Revenue USD614mn LennartElves Chairman AndersHedenstedt CEO

BusinessHighlights
Planstoconstruct14windturbinesinMark municipality
InvestmentisvaluedatUSD70.32 Operationsexpectedtobeginin2010

CompanySnapshot:GothiaVind p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Partille NA Design,buildandoperatewindfarms NA ClaesGoranLomberg Chairman GunnarEriksson CEO

BusinessHighlights
ItplansonconstructingwindturbinesintheDalsland county
11 in Edelskog; 11 in Froskog; 9 in Animskog 11inEdelskog;11inFroskog;9inAnimskog

Planstoestablish20windturbinesinSwedishtowns AmalandSaffle In200910engagedHandelsbankenCapitalMarkets asfinancialadvisorinordertoexpanditsequity as financial advisor in order to expand its equity

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PlayersintheMarket(8/15)
CompanySnapshot:HSKraft
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Malmo 2006 Worksinpartnershipwithlandowners towardsdevelopingwindpower NA SamuelKocher President IngmarBjornssonCEO

BusinessHighlights
Itplansonconstructinga12turbinewindfarmin p g BorrestadTollesjo,inKristianstad Plansoncompleting20windfarmprojectscontaining intotality226windturbinesinSkaneandSmaland
Theturbinesareexpectedtoproduceatotalof1.3TWhby 2013

Plansonestablishing10windturbinesinassociation withSjonnebolsgardoutsideSaffle

CompanySnapshot:JonkopingsEnergi p y p p g g
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Rosenlund 1907 Electricitygenerationanddistribution 08:Revenue USD141mn HakanStigMarker CEO

BusinessHighlights
Itinvested~USD17.46mnin3windturbinesin Tuggarp,northofGranna,andanewgridfrom TuggarptoJonkoping Tuggarp to Jonkoping AttheTorsvikplant,thecompanyproducesheat, electricityandbiogasfromwasteproducts IthasahydropowerstationinHuskvarnaandRottler

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PlayersintheMarket(9/15)
CompanySnapshot:Krafto
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Stockholm 2006 Operateanddevelopwindfarmsin partnershipwithlandowners,localresidents andmunicipalities NA LennartMolvin Chairman SamuelBrissman CEO

BusinessHighlights
Planstoconstructa6turbinewindfarminLaholm municipalityclosetoOrkeljunga
Constructionpermitprocessisestimatedtolastfor34 years

Planningonbuildingwindfarmsonthepeninsula HallnasinSwedishmunicipalityTierp H ll i S di h i i lit Ti Plansonconstructing32windpowerturbinesin SwedishmunicipalitiesLjusdalandBollnas

CompanySnapshot:MarkbygdenVind p y p yg
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Tavelsjo NA Plans,develops,sellsandoperatesland basedwindprojects NA Jointlyowned 75%bytheSwedishgroup SvevindHoldingand25%byGermangroup Enercon

BusinessHighlights
ReceivedfundingworthUSD9.41mnfromthe SwedishEnergyAgencytowardsthedevelopmentof projectsinthenorthwithatotalplannedcapacityof projects in the north with a total planned capacity of 2,500MW Planstoinstall1,100windturbineswithatotal capacityof4GWclosetotheSwedishtownofPitea
ThisisestimatedtobeEuropeslargestwindfarm p g Expectedtogoonlinein6stagesbetween2013and2019 andproduce12TWh/year 32

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PlayersintheMarket(10/15)
CompanySnapshot:O2Vindkompaniet
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Morbylanga y g 2005 Design,financingandsaleofwindpower projects NA PaulStormoen DeputyCEO

BusinessHighlights
ItswindfarmonmountainHedboinSwedish municipalityRattvikwith9turbinesbecame operationalinMay2009producing100GWh Itplansondeveloping56windturbinesinLenhovda Plansonconstructingupto57windturbinesbythe lakeTonseninGastriklandcounty ReceivedUSD9.69mnfromtheSwedishEnergy Agencytodevelopa90MWinstallation

CompanySnapshot:Ownpower p y p p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Visby 2005 Designanddevelopwindenergyprojects NA JonasDahlstrom President TodayMelkersson COO

BusinessHighlights
Plansonconstructingawindfarmconsistingof8 windturbineseastofVallstainSwedishprovinceof Halsingland
Itisexpectedtobeimplementedin2011 InvestmentintheprojectisestimatedtobeUSD39.04

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PlayersintheMarket(11/15)
CompanySnapshot:RESSkandinavien
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Goteborg g 2001 Buildswindfarms NA AndersBarne CEO

BusinessHighlights
Planstoconstructupto18windturbinesonthe p mountainLillfjalletinHarjedalenmunicipality Planondeveloping89windpowerplantsin10areas inthenortheasternpartofSwedishprovince Halsingland,closetotheDellenLakes
Theprojectisexpectedtorequireaninvestmentof~USD 168mn

CompanySnapshot:SkellefteaKraft p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Sundsvall 1906 Utility NA TfStureLestander CEO

BusinessHighlights
Plansonconstructing100windturbinesinBlaikenin Soreselemunicipality Pl Plansonconstructingawindfarmwith100turbines t ti i df ith 100 t bi onthemountainStorblaikfjalletbetween municipalitiesStorumanandSorsele
Annualproductionisestimatedat500GWh

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PlayersintheMarket(12/15)
CompanySnapshot:StenaRenewableEnergy
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Gothenburg g 2006 Developingwindfarms;Workonplanning, permitprocessing,measurementsofwind andestimatesofenvironmentalimpacts NA GoranDanielsson MD

BusinessHighlights
Planstoconstruct19windturbinesbetween municipalitiesOrebroandLekeberg
TheprojectwillrequireaninvestmentofUSD69.82mn

Planstoestablisha55turbinewindfarmin TvinneshedaBadeboda,inUppvidingemunicipality Plansondeveloping40windturbinesinLaholm

Theprojectisexpectedtobecompletedby201011atan investmentofUSD125.9mn

CompanySnapshot:Sweco p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Stockholm 2000 Technologyconsultancy 08:Revenue USD5.5bn EvaQNygren CEO

BusinessHighlights
ItwascommissionedbyBlekingeOffshoretoprepare apermitapplicationandanenvironmentalimpact assessment(EIA)forawindfarmnearBlekinge assessment (EIA) for a wind farm near Blekinge Involvedinwindenergyassignmentsforclientslike SCA,Statkraft,BergvikSkogandWallenstam

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PlayersintheMarket(13/15)
CompanySnapshot:Triventus
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople Falkenberg g NA Developwindenergyprojects NA GertOlofHolst CEO

BusinessHighlights
Plansonconstructingandoperating6plannedwind g p g p turbinesinSlottsbolinSwedishmunicipalityLaxa Asof2009,ithas100windpowerprojectscompleted orinprogress WiththesupportofTriventusConsulting,itplansto constructawindfarmcontainingupto20turbinesin municipalitiesAskersundandMotala

CompanySnapshot:UniversalWindOffshore p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Malmo 2005 Developmarinewindfarms NA BjornAlgkvist Chairman OlaGjejervall CEO

BusinessHighlights
Plansonconstructingandoperating108largewind turbineatanoffshorewindfarminStora MiddelgrundoutsidetheSwedishwestcoast Middelgrund outside the Swedish west coast

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PlayersintheMarket(14/15)
CompanySnapshot:VaktarenVind
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople NA 1990 Manufacturingturbines NA NA

BusinessHighlights
Plansonconstructing6windturbines,3.6kmsouth g , westofLungsjoninSollefteamunicipality
Annualproductioncapacityofthewindfarmisforecasted tobe40mnKWh

Planstoestablishawindfarmontheborderbetween SwedishprovincesofJamtlandandVasternorrland S di h i f J tl d d V t l d

CompanySnapshot:VerticalWind p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople Uppsala 2002 Developandmanufacturesadvancedwind powertechnology NA HansBernhoff CEO

BusinessHighlights
ItisexpectedtobecomethefirstSwedishwind turbinemanufacturerproducingverticalaxiswind turbineswithadirectdrivengenerator turbines with a direct driven generator
Itplansonfocusingonwindturbineswithacapacityof1 MWormore,installedinlargewindfarms Thefirstturbineisunderproductionandwillbeinstalledin Falkenberg

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PlayersintheMarket(15/15)
CompanySnapshot:Vindin
CorporateInformation
Headquarters q Founded Areaof Expertise Financials KeyPeople NA 2006 Develop,buildandoperatewindfarms NA AndersLyberg CEO

BusinessHighlights
Planson5windturbinesatSkutskar,eastSweden , PlansoninvestingUSD0.63bnby2013towards generating1TWhofwindpowercapacity
40turbinewindfarminOrnskoldsvik 60turbinewindfarminJokkmokkandGallivare

Planningawindfarmincluding5001,200wind powerplantsinMarkbygden,eastofPitea
Capacityofthewindfarmisexpectedtobe12TWh InvestmentisestimatedatatotalUSD58.4bn

CompanySnapshot:Vindvision p y p
CorporateInformation
Headquarters Founded Areaof Expertise Financials KeyPeople NA 1988 Windmeasurement,obtainingpermits, constructionandoperationofwindfarms NA POSaterHall MD

BusinessHighlights
Planningawindfarmof12windturbinesat Brocklingsberget,municipalityofBracke,provinceof Jamtland Plansonconstructing19windturbinesinSwedish provinceHalsingland
11turbinesinLjusdalmunicipality 8inBollnasmunicipality p y

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MarketOverview Drivers & Challenges Drivers&Challenges GovernmentRegulations Competition KeyDevelopments

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KeyDevelopments
Date Aug2009 Development Swedendevelopedtheworldsfirstinlandwaterwindfarmwhichhaspassedtheteststageandis expectedtostartexportingelectricitytothegridbytheendof2009.ThefacilityislocatedatLakeVanern WindParkandwilluseWinwind3MWturbines.ThemunicipalityofKarlstadowns5ofthe10turbines Wi d P k d ill Wi i d 3 MW t bi Th i i lit f K l t d 5 f th 10 t bi togetherwithHammaromunicipality. SwedishrenewableenergysystemsmakerMorphicTechnologiesplansonsellingitswindturbinemaking unitScanWindtoGEEnergyforUSD17.7mnonacashanddebtfreebasis. SwedishconstructiongroupPeabisexpectedtodothelandandconcreteworkforawindfarmin northernSweden.TheprojectisvaluedatUSD13mnandisexpectedtobecompletedbyOct2010. TheSwedishgovernmentplansonpermittingtheinstallationof1,101windturbinesataninvestmentof USD6.9bn.Theenvironmentalassessmentdelegationrecommendedthatthepermitfortheproject shouldbegiventoMarkbygdenVind.ThiswouldbeEuropeslargestwindfarmandwillallowSwedento should be given to Markbygden Vind This would be Europes largest wind farm and will allow Sweden to meetitstargetofgenerating10TWh/yearby2015. UrasaVindplansonconstructing6turbinewindfarmbyUrasaairfield,inSwedishmunicipalityTingsryd. Itstargetistomakethewindfarmoperationalby2011. SwedishinsurancecompanyLansforsakringarlaunchedaninsuranceforwindfarmsincooperationwith GermancompanyGotthaerAllgemeineVersicherung.Theinsurancecoversthepropertyaswellas consequentiallosses. NorwegianenergycompanyStatkraftandSwedishforestrycompanySCAplanonbuilding455wind turbinestogetherinnorthernSweden.TheestimatedcostfortheprojectisUSD2.02bnandwill turbines together in northern Sweden The estimated cost for the project is USD 2 02 bn and will generate2.4TWh.
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Aug2009 Jul2009 Apr2009

Apr2009 Mar2009

Dec2008

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