Goldwind’s Experience in developing Wind/Solar hybrid generation in Australia

2nd Annual Large Scale Solar Conference3-4 April 2017

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The Presenter – John Gardner

•B. Eng (Hons) University of Tasmania

•Previously employed in mining and materials handling industries.

• Involved in the wind industry for ~15 years.

• Involved in;

Tower Manufacture & Wind Farm Contractor (6 years at Keppel Prince)

EPC Wind Farm construction delivering projects to Energy Retailers and Developers (3 years at Suzlon)

Developer & EPC Constructor (6 years at Goldwind)

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Contents

• Who is Goldwind and Why?

• Background / Comparison between projects

• Expected Advantages of Co-Location

• Gullen Solar Project Description

• White Rock Solar Project Description

• Comparison of Time of Day Generation and Curtailment

• Summary Comparison

• Key Learnings

4

Company overview

18 years Established in 1998, Goldwind is China’s pioneer in wind energy

+31 GW Goldwind has more than 31 GW of wind turbines installed globally

+22,200 units More than 22,200 WTG installed, including 17,856 PMDD units

USD 8 billion USD 8 billion in total assets (2015)

2 IPOs Goldwind is listed on the Shenzhen and Hong Kong stock exchanges

6,000 employees 6,000 employees globally, with more than 800 in R&D

Top 3 Globally Top 3 OEM in 2015

1st in China China’s leader in newly installed and cumulative capacity in 2015

Who is Goldwind?

Our history

• As one of China’s wind energy pioneers, Goldwind has led the growth of China’s renewable

energy industry

• As China’s demand for energy has increased, so has its need for clean and reliable power -

Goldwind has worked tirelessly to provide wind energy solutions

• Goldwind has steadily increased its international presence in line with its mission of providing

clean energy solutions for the world

1998-2006

Goldwind

Establishment

& Development

2007-2010

Rapid Growth &

Dynamic Change

1986-1996

First Research

into Wind

2011-Today

New Era &

Industry

Restructuring

1998 2006 2010 20161986

2015 China Market Share

Newly Installed Capacity

Competitive position: Goldwind is 1st in China and 1rd globally

2015 Global Market Share

Newly Installed Capacity

Goldwind14%

Vestas13%

GE Wind10%

Siemens5%

Gamesa5%

Suzlon 5%

United Power

5%Mingyang4%

Envision5%

CSIC3%

Other30%

Source: CWEA,BNEF

Goldwind, 25.2%

United Power, 10.0%

Envision, 8.2%

Mingyang, 8.2%

CSIC, 6.8%Sewind,

6.3%

XEMC, 4.9%

DEC, 4.5%

Windey, 4.1%

Sany, 3.1%

Others, 18.8%

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

New Installed (MW) 3.6 13.8 25.5 39.6 131.55 445 830 1145 2709 3735 3600 2522 3750 4434 7749

Cumulative Installed (MW) 3.6 17.4 42.9 82.5 214.05 659 1489 2634 5343 9078 12678 15199 18950 23384 31133

0

5000

10000

15000

20000

25000

30000

35000

Goldwind’s annual & cumulative installations 2001-2015

2013 Goldwind is ranked in the Top-500 New Energy

Companies by the China Institute of Energy Economics

Chinese Government’s Pioneer Enterprise of National Quality

Control Award

Goldwind has been recognized around the world for its pioneering work

Twice selected as one of MIT Technology Review’s 50 Most

Innovative Companies

Placed 3rd in the Most Innovative Chinese company category

One of Intellectual Asset Management’s Intellectual Property

Champions of China

2011 African Wind Project of the Year awarded to Goldwind’s

Adama Wind Farm in Ethiopia

Europe

178MW

China

South America

North America

449MW

74MW

31,133MW

185MW

Africa

51MW

Rest of Asia

240MW

Australia

Goldwind has a global footprint of 17 countries

covering all six continents

Regional Center

Sales Office

Update: 2015

Australian Presence of Goldwind

•Two fully owned subsidiaries of Goldwind Science and Technology were established in late 2009:

–Goldwind Australia Pty Ltd - Wind Turbine Supply, EPC, O&M

–Goldwind Capital Australia Pty Ltd - Goldwind’s Australian Investment Company

•Experienced Australian Team

–~75 employees, including site based operations and construction teams

–Offices in Sydney & Melbourne

•3 Projects

–Mortons Lane Wind Farm 13 x 1.5MW turbines will be installed in Western Victoria later this year

–Gullen Range Wind Farm , 73 wind turbines, Non-Recourse Project Financed. Completed 2014

–White Rock Wind Farm. 70 wind turbines, 175 MW, Merchant, in construction.

•Project Development Activities

–Market entry strategy & buffer against market fluctuations

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Why is Goldwind involved in Solar?

• We believe solar/wind hybrid power plants make sense

• Manufacturing Solar Inverters at our Wind Turbine Converter Factory (eTechwin)

• Add value to existing developments

• Build on our expertise in project development and operations and maintenance.

• Utilise resources during the lean ‘Abbott’ years.

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Comparison of Gullen Solar & White Rock Solar at Solar Project

Commencement

13

Gullen Solar White Rock Solar

Wind Farm Status at Solar Farm

Development & Planning

Construction Complete Construction Not Started

Characterisation of Region Grazing and Lifestyle Grazing and Cropping

Community Experience in similar

large scale development

Prior experience in large scale

renewables development (Wind)

Nil

Land Tenure Owned by a Goldwind Company,

leased to neighbour for grazing

Owned by wind farm landowner,

leased to White Rock Solar Pty

Ltd

Easements for Connection 1 6 (all wind farm landowners)

Community/Neighbour Relations Sensitive. Difficult history. Good, Supportive

Project Location < 3 hrs from Sydney CBD ~ 7 hrs drive from Sydney CBD

~ 4.5 hrs drive from Brisbane

Project Development Phase

• Use existing environmental studies

• Build on community engagement

• Possible add-on to existing PPA & Finance

• Use existing landowner relationships

Savings achieved by sharing existing

infrastructure

• Grid Substation & Switchyard

• Roads

• Buildings

Complimentary generation allows improved

utilisation of connection assets

Operational Savings

• Use wind farm maintenance staff

The Expected Advantages of Co-location

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Copyright © Goldwind Science & Technology Co., Ltd

Sources of Cost Savings from Co-location

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Infrastructure Savings by

Sharing:• Access tracks

• Buildings

• Communications / Scada

• Substation

Grid Connection Savings:• Stronger shared transmission

connection

• Less reactive plant

• Grid negotiation mostly complete

Development Savings• Existing knowledge

• Developed engagement plans

• Additional benefit for landowners

Stand Alone

66kV

Stand Alone

22kV

Build Wind

then build Solar

Build Wind &

Solar together

Infrastructure Costs Grid Connection Costs Development Costs

Key Facts Gullen Range Wind & Solar Hybrid

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175.5 MW Total Generation• 165.5MW wind existing• 10 MW (AC) solar

30km northwest of Goulburn

Connection to Transgrid 330kV transmission system via Wind Farm 33/330kv Substation

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

En

erg

y Y

ield

(G

Wh

)

High wind generation during Winter months at Gullen Range

Wind

Solar

Annual and Diurnal Complimentary Generation

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• Gullen wind peak output is in winter– Solar is lower but

still requires export capacity at greater than the substation

was originally intended for.

• Total grid output needs to be able to handle the combined

export.

• Gullen wind farm output peaks during the middle of the

day – this is not the case for many windfarms.

• If the grid at Gullen was constrained then this would have

caused issues

Av

era

ge

op

utp

ut

Win

d (

(MW

)

hour

Wind+Solar Wind Solar

0

20

40

60

80

100

120

140

160

180

200

0% 20% 40% 60% 80% 100%

Gullen Range Wind/Solar Hybrid vs. Transmission Limit

Wind + 11 MW Solar

Transmission Limit

Likelihood of >100MW 20%

Curtailment Analysis of Gullen Range

18Gullen Range grid capacity limited by 90 MVA transformer size (1 of 2)

Gullen Range Community Considerations

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• Community attitudes well known. Difficult history.

• Wind Farm construction is disruptive to community. Residual issues may bepresent.

• Developer needs to consider existing Wind Farm/ Community relationship as wellas the future relationship of the solar project.

• Ability to involve the community in the site selection process can be beneficial.

• Timeline for community consultation is uncertain when seeking to achieveagreement. Arena timeline is fixed*.

Community Engagement

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• When a site had been selected Goldwind entered aninform and consult engagement process

• Unrealistic to think that the community would considerthe solar as a separate project. Same developer.

• Concern regarding further development – DevelopmentFatigue

• Extensive consultation via numerous face to facemeetings two public consultation days were undertakenin the local village hall

Community consultation process

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• Goldwind unwilling to progress project without community support

• Community made clear that they would expect financial incentives to providesupport

• A budget for neighbour agreements identified – not normal in solar industry

• Community group was informed of budget, options and allowed to proposealternative ways to distribute funds – moving engagement right up to empower.

• The group did not deliver a solution but did ensure wider community felt fullyconsulted

Gullen Range Landowner Challenges

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• For a ‘bolt on’ hybrid there are limited places to locate the facility and stillgain advantage of infrastructure

• Existing easements are likely to be specifically for the wind farm

• Landowners are aware of the project constraints of location and time andhave just been through very disruptive construction process.

• Project proponent does not control the timeline when negotiating landdeals.

• Relations between wind farm hosts and neighbours can be strained,particularly through the construction of the Wind Farm

• Complex legal documents required to implement solar farm onto wind farmleases and easements

Gullen Solar Site Options

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• Following initial consultation 4 siteswere considered of which 2 wereconsidered realistic options

• The two options left had differentcommunity issues and impacteddifferent neighbours

• Environment and Cultural Heritageissues differed

• Photo montages developed for newsite

• Further individual meetings set up withnear neighbours

• Further Community information dayheld

Gullen Solar Planning Process

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• Development process for renewable energy projects is well understood, butpotential challenges arise through successive development proposals in a smallcommunity.

• Change in site location resulted in a lot of rework of planning documents

• Legacy issues regarding the wind farm process and planning issues. Council opposedthe Wind Farm.

• Early engagement with council helped to build on existing relationship.

• Agencies not familiar with solar farm environmental impacts, again time constraintshad to be managed. E.g. Sydney Water.

• Transportation studies were helped by previous work, but further road worksrequired

Gullen Solar Site Progress

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White Rock Wind Farm Introduction

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Construction committed by Goldwind/CECEP on a merchant basis (China Energy Conservation and

Environmental Protection Group)

Located about 20km west of Glen Innes, northern NSW

Goldwind Australia – Wind Farm EPC Contractor

From Sydney: Fly Sydney to Armidale ~

1 hr Drive Armidale to Wind

farm site ~ 1 hr 30 mins

• 70 turbine locations used in stage 1 (119 approved).

• 17km north to south• Construction Compound and O&M

Compound at north end of the site near highway.

• Additional O&M facilities at substation and in south of project

• 8km of 132kv Overhead line to connect to substation in centre of the site.

• Site Access to North (Highway), East and South.

• Remaining turbine locations available for stage 2 mostly located in the Eastern and Southern part of the project.

Wind Farm Project Layout

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Northern

Access

Eastern

Access

Southern

Access

Construction and O&M

Compounds

Substation

Overhead

132kV line

Additional

areas available

for Stage 2

Ecology Flora & Fauna

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• Endangered Ecological Community (EEC’s)• Yellow Box• Ribbon Gum

• Vegetation clearing strictly limited under the Project Approval

• Wind Turbine locations adjusted to minimise impact

White Rock Grid Connection

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• Existing 132kV line crosses the site• Line to be re-directed to the

substation and back• Line to substation is approx. 8km of

double circuit 132kV• Agreements executed with Transgrid:

Preliminary Works Underwriting Agreement (PWUA)

Project Agreement Connection Agreement

• Transgrid is currently constructing the Connection Works.

Connection to

existing line

New double

circuit 132kV

line

Substation

Community Engagement

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• Positive Community

• Sponsorships.

• Near Neighbour Agreement Plan – For all

residences within 3km (14)

• Co-location of Vodafone mobile phone

base station on monitoring tower

• Local Business Participation Program –

In conjunction with the ICN

• Local Jobs Program – Local Media

• Community Benefits Fund – Once

Operational

White Rock Solar Farm

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• On 12 September 2016 it was announced that White Rock Solar is one of 12 projects to be awarded a grant from the Australian Renewable Energy Agency (ARENA) Large Scale Solar Competitive Round.

• The construction of the solar farm will commence during second quarter of 2017, to be fully operational by the end of 2017.

• The development forms a pioneering hybrid solar-wind renewable energy facility in the New England Tablelands.

• Shared infrastructure with White Rock Wind Farm will maximise the use of existing facilities grid connection substation and operations building some access tracks

White Rock Wind & Solar Hybrid

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195MW Total Generation

• 175 MW wind planned

• 20 MW solar planned

Connection to Transgrid 132kV

transmission

• 170 MW export capability

Negotiating with preferred EPC Contractor

Construction in 2017

White Rock Solar Site

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White Rock Land & Planning Issues

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• Alternate sites had either significant environmental issues (trees) or were not contiguous

• All sites was not part of the original wind farm environmental studies – required new studies in all cases

• Paper Roads dissected the final site• State approved development. NSW was motivated to approve promptly

• Landowners seeking compensation equivalent to wind $/MW. This is far in excess of the $/Ha they would earn from the land or gain from leasing their land for agriculture purposes.

White Rock Solar Grid and Power sales

• Will connect into windfarm, taking advantage of windfarm infrastructure• Windfarm grid connection currently limited to 175MW - however Low coincidence

of generation (1.1%)• Project proposed on basis of merchant power sales but could be included in any

future Windfarm PPA.

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• Market participation and Metering means separate 33kv cabling to switchroom.

Comparison of generation and grid constraint

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0

10

20

30

40

50

60

70

80

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

En

erg

y Y

ield

(G

Wh

)

High wind generation during Winter months at Gullen Range

Wind

Solar

0

20

40

60

80

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

En

erg

y Y

ield

(G

Wh

)

High wind generation months align with Summer & Winter months at White

Rock

Wind

Solar

Annual Complimentary Generation

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Average Time of Day Power Outputs

Diurnal complimentary generation at WRWF

Gullen Range White Rock

Av

era

ge

op

utp

ut

Win

d (

(MW

)

hour

Wind+Solar Wind Solar

Day

Av

era

ge

op

utp

ut

Win

d (

(MW

)

hour

Wind+Solar Wind Solar

Day

Not Grid Constrained Grid Constrained

38

WRWF 132kV grid capacity limited by network thermal rating

0

20

40

60

80

100

120

140

160

180

200

0% 20% 40% 60% 80% 100%

White Rock Wind/Solar Hybrid vs. Transmission Limit

Transmission Limit

Wind + 20MW Solar

Curtailment Analysis of White Rock

39

Curtailment Analysis of Gullen Range

40Gullen Range grid capacity limited by 90 MVA transformer size (1 of 2)

0

20

40

60

80

100

120

140

160

180

200

0% 20% 40% 60% 80% 100%

Gullen Range Wind/Solar Hybrid vs. Transmission Limit

Wind + 11 MW Solar

Transmission Limit

Comparison of Gullen Solar & White Rock Solar Sites

41

Gullen Solar White Rock Solar

Project Size 10 MW AC 20 MW AC

Availability of Suitable Land Limited Limited

Number of Site Options

Considered*

2 (4) 1 (3)

Distance to Substation < 2km >8km

PV Array Compact - Fixed Tilt, Closely

spaced

Fixed Tilt

Grid Constraint Not Grid Constrained Grid Constrained

* Gullen conducted detail studies on 2 sites, White Rock carried preliminary environmental assessment of 3

sites and detail studies on 1 site only.

Gullen Solar White Rock Solar

Characterisation of Region Grazing and Lifestyle Grazing and Cropping

Community Experience in

similar large scale development

Prior experience in large scale

renewables development (Wind)

Nil

Wind Farm Construction Stage

at DA

Complete Commenced <2 Months

Land Tenure Owned by a Goldwind

Company, leased to neighbour

for grazing

Owned by wind farm

landowner, leased to White

Rock Solar Pty Ltd

Easements for Connection 1 6 (all wind farm landowners)

Community/Neighbour

Relations

Sensitive Good, Supportive

Negotiations Emotive - Site relocated after

community feedback

Commercial

Comparison of Community, Neighbour and Landowner

42

Gullen Solar White Rock Solar

Approving Authority Joint Regional Planning Panel

(local government)

NSW Department of Planning

Characterisation of Region Grazing and Lifestyle Grazing and Cropping

Local Government

State Government

Not Supportive / Not Opposed

Not involved

Supportive

Supportive

Environmental Sensitivity Some hollow bearing trees to be

removed

Some degraded native forest

derived grassland. Able to be

avoided

Cultural Heritage Significance Several sites to be avoided No

Water, Sediment & Erosion Sydney Water Catchment No significant issues

Development Approval Process

– Concept to Approval (including

preliminary design, consultation &

assessment)

18 months 9 months

Comparison of Gullen Solar & White Rock Solar Approval

43

Expected Advantage Gullen Solar White Rock Solar

Use existing

Environmental Studies

Some background information however

new specialist studies needed to be

performed for the selected site.

Some background information however

new specialist studies needed to be

performed for each of the proposed sites.

Build on community

engagement

No, project development was too late Yes, able to use WRWF shopfront at Glen

Innes and existing staff

Possible add-on to

existing PPA

No – Wind Specific PPA and counterparty

not buying

Merchant project

Possible add-on to

existing Finance

Yes – able to draw down on the project

finance

Undecided – subject to final ownership

Use existing landowner

relationships

Yes, however new agreements required Yes, however new agreements required

The Advantages of Co-location - Actual

44

Expected Advantage Gullen Solar White Rock Solar

Grid Substation &

Switchyard cost savings

Yes, <2km underground cable.

Switchroom had spare switchboard

cabinets

Yes, >8km underground cable.

Switchroom had planned for spare

switchboard cabinets

33kv reticulation cable No, already constructed No, separately metered

Roads cost savings No, additional approval requirements for

public roads

Yes, Site entrance

Buildings cost savings Yes, however expansion may be needed Yes, solar planned from start

Use wind farm

maintenance staff

Yes Yes

The Advantages of Co-location - Actual

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• Options for sites are few but they help the community and planning process

• Not able to utilize most of Wind Farm environmental studies• Timelines are uncertain for community engagement and

planning• Complex legal framework for connection, access and

easements• Land costs may be greater than expected• Earlier you think about solar/wind hybrid the better• Greenfield hybrid development could maximize benefits

Key Learnings

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Despite several sub-optimal situations, cost savings can be achieved in;• Project development• Savings achieved by sharing existing infrastructure• Complimentary generation allows improved utilisation of connection

assets• Operational savings by sharing operation and maintenance staff

Wind & Solar Hybrids reduce market costs

47