permanent magnet direct drive (pm/dd) technology

Permanent Magnet Direct Drive (PM/DD) Technology(PM/DD) Technology

September 2011p

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Northern Power Systems Profile Today…

NPS is an advanced technology U.S. based wind turbine company specializing in next generation Permanent Magnet Direct Drive (PM/DD) wind turbines

Private company with Lead Investors in USA and EU

Two separate businesses based on the same PM/DD technology: Distributed Wind and Utility WindTwo separate businesses based on the same PM/DD technology: Distributed Wind and Utility Wind

Largest Distributed Wind company in the worldOver 300 NPS 100 kW (NPS 100) turbines ordered to-date with 130 turbines installed globally...

Highest availability in the distributed wind market – 800,000 run hours with 98% median availability to-dateHighest availability in the distributed wind market 800,000 run hours with 98% median availability to date

Largest installed base of integrated wind-diesel generation platforms in the world

New technology under development including 450 kW turbine and wind-diesel-battery integrated solutions

Utility Wind has world-class expertise in large PM/DD wind turbine platformsUtility Wind has world class expertise in large PM/DD wind turbine platformsIntroduced new NPS 2.3 MW (NPS 2.3) onshore wind turbine in 2011 with 93m and 100m rotors− First two prototype turbines are installed in Michigan USA and are running with very high availability− DNV type-certification process well underway ... expect DNV certification award in first quarter 2012

Developing larger, more cost effective PM/DD platforms for onshore and offshore applicationsDeveloping larger, more cost effective PM/DD platforms for onshore and offshore applications

Locations in the United States and EuropeOffices: Barre, Vermont (HQ), Boston, Massachusetts (Corp) , and Zurich, Switzerland (Sales & Service)

Production facilities: Barre Vermont and Saginaw Michigan


Production facilities: Barre, Vermont and Saginaw, Michigan

2

NPS Today – Distributed Wind and Utility Wind …

Distributed Wind Utility Wind

NPS 2.3First prototype installed in December 2010

NPS 100Launched in 2000, with PMDD in 2008 p yp

Extensively Tested at NREL

Launched in 2011

Two prototypes flying in MI

Strong Performance

280 units, >$80M ordered since 2008

130 units in operation globally

800,000 accumulated fleet hours

98 99% availability Strong Performance

Medium/Low Wind Variants

NPS 3.4 NPS 8.0

98-99% availability

Average $300,000 selling price

NPS 450Platform Extension

Existing 2.3 Technology

Fast Commercial Ramp

EU d A i k t

Large Offshore

New Technologies

Low Maintenance

Gl b l M k t

Platform extension under development with DOE grant

2012-13 prototype launch

Fast commercial ramp

L di t ib t d l d

Next-generation PM/DD Technology

EU and Asian markets Global MarketsLarger distributed loads


g gy

Permanent magnet/direct-drive (PM/DD) technology is disruptive ….disruptive ….

PM/DD

NPS PM/DD

n Original Direct-Drive

Permanent Magnet Direct Drive

• SAME weight as traditional geared turbines

• Extremely reliable … low downtime low maintenance

First-GenPM/DD

Tech

nolo

gy

ophi

stic

atio

• 30% heavier than traditional geared turbines

• Extremely reliable low

Original Direct-DriveTraditional Wound-Rotor Direct Drive

downtime, low maintenance• Cost similar to traditional

geared turbines

T So Extremely reliable … low downtime, low maintenance

• Command a 15-20% price premium

Traditional Geared Turbines“High Speed” Geared Drive

Value to Customers

• 80-90% market-share

“High-Speed” Geared Drive


Customers

Northern Power Systems Technology Differentiation …Traditional Geared Turbine

Complex, high-speed (1800 rpm) drivetrain problematic:

5% DowntimeGearbox replacements every 5 years

Traditional Geared Turbine

Efficiency losses due to gear friction & electrically-powered magnetic field

Failures of large components require expensive crane & significant downtimecrane & significant downtime

NPS 2.3 PM/DD Turbine Simple, slow-speed (15-20 rpm) drivetrain extremely reliable:

2% DowntimeNo high-speed wear & tear, gearbox replacement

Very high-efficiency … no friction losses and permanent y g y pmagnets supply magnetic field

Highly modular design allows up-tower swap-outs: no crane & minimal downtime


Facilitates larger rotors

NPS PM/DD enables the Lowest Cost of Energy …Better Energy Capture via Very Large Rotors

Simple load path

Simple powertrain dynamics and harmonics

Better Energy Capture via Very Large Rotors

Simple blade characterization and construction

High efficiency power train and nacelle layout gives more power, especially at low wind speedsy

High Reliability Translates to Lower Operating Costs and RisksLow part count means fewer opportunities for failure

Highly modular design Enables tight quality control in productionUp-tower swap-outs: No external crane & minimal downtime

No oil or fluids to leak or change

Liquid cooling allows expanded environmental operating environment


qu d coo g a o s e pa ded e o e ta ope at g e o e t

Wind Farm Cash Flow Drivers – NPS value proposition ...

Power curve … energy production from a given wind speed

Turbine-specific key drivers

Uptime% (or ”availability”)

Costs required to maintain

Power Curve

Power(MW)

Power Curve

X $/MW-Hr X UptimeMaintenance

& RepairCosts

Wind Farm Cash Flows = -

Wind Speed

Captures more energy… more of the time

at LOWER cost!

Wind SpeedPrice of

electricity generated

Site-specific key drivers

… at LOWER cost!


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Utility Wind economics greatly improved with NPS 2.3 …

Same potential site …EXAMPLE

… but NPS delivers better economicsAnnual Cash Flow

• 80MW site

• Class II/III

• PPA rate = $100/MW hr

($/Year)

$10.1M

$300k

$100k

$11.0M$600k

• PPA rate = $100/MW-hr

• Project const. costs = $40M

• ITC/PTC incentives Traditional Better NPS

$1M/yr. higher cash flow!

• Tax equity benefits

•20-year investment life

Traditional Turbine Increased

uptime

Better production Lower

Maint.

NPS PMDD

Turbine

R t I t t (ROI) 22% b ttReturn on Investment (ROI): 22% betterNet Present Value (NPV): $10M better


NPS 2.3 Prototypes at Stoney Corners I wind farm …


permanent magnet direct drive (pm/dd) technology

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