001 Presentation JHP Nyborg Strand Maj 2008

8/14/2019 001 Presentation JHP Nyborg Strand Maj 2008

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Nyborg Strand, Denmark

Maj, 2008

Jrgen Hjstrup

Suzlon Energy A/S, Denmark

From India to the world.

Suzlon Energy and the global market for wind

power...


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Contents

World Market

Suzlon group profile

Manufacturing locations


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Opportunities

Increasing energy demand

Increase in cost of energy

Global shift towards Renewable Energy (RE) sources

Wind a mega trend in RE markets

Fossil Fuels

Political Framework More mature technology


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The New World Order...

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

UK US

France Germany Japan

G6

Italy France Germany

Italy

Germany Japan

Russia

Brazil

India

China

BRICs

Italy

France

*cars indicate when BRICs US$GDP exceeds US$GDP in the G6

Germany

Source: Goldman Sachs


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Growth in Demand for Energy...

14%

25%

36%

46%

57%

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

2004 2010 2015 2020 2025 2030

0

0,1

0,2

0,3

0,4

0,5

0,6

Mtoe

Cumulativegrowthh

Source: MAKE Consulting, The Wind Forecast, December 2007


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Demand vs. Supply (2005-30e)...

0%

2%

4%

6%

8%

10%

12%

15.000

20.000

25.000

30.000

2005 2010 2015 2020 2025 2030

Surplusdevelopment-5year

TWh

Power Generation - Supply Power Generation - Demand Generation capacity surplus

Source: MAKE Consulting, The Wind Forecast, December 2007


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2.5

3.5

4.5

5.5

6.5

Nuclear CCGT Coal Steam IGCC Wind

(UScents/kWh

Wind: a promising renewable energy source

125

227

4

82

36

56

1

4

50% 60% 70% 80% 90% 100%

1990

2004

Biomass & Waste Wind Geothermal Solar

Source: IEA WEO 2006 / BTM Consult ApS WMU2006

Source: IEA WEO 2006 * Generation in TWh

(5 times present global energyusage, 7 times electricity usage)

(72 TW potential estimated globally

at 80m hub height)

(19.8 GW capacity addition in 2007)

(3-6 cents/kWh)

Wind Energy Status

Magnitude

Resource Availability

Established Base

Cost Competitiveness

Critical Success Parameters

Wind: Cost competitive with conventional power

Fastest growing renewable energy source*

Potential to power the future

Source: BTM Consult ApS WMU 2007 and Journal ofGeophysical Research, 2005 : Stanford University


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Alternative energy what is the alternative?

0

50

100

150

200

250

300

350

400

450

Onshore

Wind

Offshore

Wind

Biomass Geothermal Solar CSP Solar PV

Euro/M

Wh

Fuel Opex Capex

Sources: Emerging Energy Research, December 2006


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...and wind is cheaper than oil, gas and coal

0

10

20

30

40

50

60

70

80

90

100

Traditional

Coal

IGCC IGCC + CCS CCGT Onshore

Wind

Offshore

Wind

Euro/M

Wh

EUR30 Carbon Fuel Opex Capex

Sources: Emerging Energy Research, December 2006


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The Australian & Chinese paradox of Cheap electricity, driven by extensive use of coal

Lack of policy directives and incentives

Lack of wind energy data

Lack of research co-ordination

Grid access

Barries to exploting wind energy...


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Conditions for accelerating renewable energy :

Establish minimum requirements of renewable energy production on power producers

Long-term (10-15 years) PPAs

Financing based on project cash flows rather than balance sheet financing

Tenure of financing to be based on project cash flows

Attract commercial financing based on secure policy and legal framework

How to accelerate RE...


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Denmarks strong points

Innovative and efficient work culture Well-educated work force Globalisation of work force coupling our work culture

and experience with good educations and low wages in

third world countries


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Suzlon Group

Suzlon Group


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Suzlon Energy

Indian ownership Established 1994 Market Leader in India for 9 years International office in Denmark opened 2005

Hansen Gearboxes 2006 Repower wind turbines 2007 Growing much faster than world market

d b f


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In top 5 wind turbine manufacturerstoday


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Vertical Integration


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Suzlon group production facilities

Pune

Pipestone

Pondi

Daman

Bhuj

Dhulia

Tianjin

Coimbatore

Udupi

Baroda

Lommel

Bremerhaven

Husum

Trampe

Baotou

Edegem

Suzlon existing facilitiesSuzlon facilities in progress/planned

REpower production facilitiesREpower facilities in progress/planned

Hansen production facilitiesHansen facilities in progress/planned

TBD

Coimbatore


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THANK YOU

001 Presentation JHP Nyborg Strand Maj 2008

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