Presentation to NCRES The Utility Scale Wind Industry and the Department of Energy’s Wind Vision 10% 2020, 20% by 2030, 35% by 2050 Evelyn Carpenter Solas Energy Consulting US Inc. June 16, 2015

Solas Overview Project & Business Development Services: Alternative & Renewable Energy Solutions For: Utility scale wind power Solar power Competitive Transmission Run-of-river hydro Biomass including landfill gas Small-scale renewable energy Stationary Power Fuel Cells Project & Business Development Services: Helping provide developers with assistance through the entire process from prospecting due diligence to post development operations & maintenance planning Helping investors with financial and technical project due diligence including acquisitions, divestitures, and joint ventures Sustainability and Climate Change Advisory Services: Helping businesses understand emerging policies and programs and their impact on project risks and opportunities. Adding sustainability into corporate strategy, from reporting requirements through to day-to-day operations and strategic planning.

Windpower market update American Wind Energy Association Windpower market update

Map of Wind Power Capacity Online 16 states have more than 1,000 MW of installed wind Total of 65,877 MW of wind capacity were operational at the end of 2014, with nearly 48,000 utility scale wind turbines online. Wind Energy provided 4.4% of the nation’s electricity during 2014, while all forms of renewable energy provided 13% of the nation’s electricity.

U.S. Annual and Cumulative Wind Power Capacity Growth The U.S. wind industry now has 66,008 MW of installed capacity and over 48,000 operating wind turbines.

Map of Online and Under Construction Projects • 23 states have projects currently under construction • New announcements made in Kansas, Maine, Maryland, Oklahoma, and Texas in the first quarter

Gas Internal Combustion/Turbine Gas Combined Cycle Figure 4 U.S. Annual Power Capacity Additions 2011 to 2014, by Region 18,000 Percent denotes the market share of wind Other Nonrenewable Oil Geothermal Water Biomass Solar Coal Wind Gas Internal Combustion/Turbine Gas Combined Cycle for all capacity installed 2011-2014 15,000 Power Capacity Additions, 2011-2014 12,000 8% 0% 9,000 Regions 18% New 6,000 40% Northwest Midwest New York 62% Mountain West Mid-Atlantic 3,000 26% California 64% Southeast Texas 25% 22% 35% Hawaii & Alaska California Hawaii & Alaska Mid-Atlantic Midwest Mountain West New England New York Northwest Plains Southeast Texas Data Sources: AWEA, EIA, SEIA, SNL

Global Wind Power Capacity Growth Figure 10 Global Wind Power Capacity Installations over Time, Top Countries 400,000 350,000 Rest of World Wind Power Capacity (MW) 300,000 India Spain Germany U.S. China 250,000 200,000 150,000 100,000 50,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: AWEA, GWEC ...Wind Power Growth Around the World 39,000 MW of wind capacity installed, representing 25% of that nation’s total power capacity. By comparison, the U.S.’s 65,877 MW of wind capacity represents 6.2% of its 1,070,472 MW of total power capacity. For perspective, Germany’s total power capacity is equivalent to the state of Texas and Georgia combined, or roughly 155,000 MW (one-seventh of U.S. power capacity). � The UK rose in the ranks of new wind capacity, with 1,736 MW installed during 2014, representing more than 15% growth and remaining the second strongest market in Europe for new capacity. � China and India led the continent of Asia, with 23,351 MW of new wind capacity added in China for 25.5% annual capacity growth, and 2,315 MW of new capacity installed in India for 11.4% annual growth. Total wind capacity in China was 114,763 MW at the end of 2014, which was more than double the wind capacity of any other country except for the U.S. China is the first country to surpass 100,000 MW of installed wind capacity. China installed more wind power in 2014 than Spain and India, which rank fourth and fifth in the world for cumulative installations, have deployed in total. 22 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

Regional and state impacts Economics, Manufacturing Regional and state impacts

U.S. Wind Power Activity, by State & Region Figure 17 Top 10 States for Wind Energy as Percent of Total State Generation Ranking State Wind Energy as Percent of Total State Generation 1 Iowa 28.5% 2 South Dakota 25.3% 3 Kansas 21.7% 4 Idaho 18.3% 5 North Dakota 17.6% 6 Oklahoma 16.9% 7 Minnesota 15.9% 8 Colorado 13.6% 9 Oregon 12.7% 10 Texas 9.0% TOTAL U.S. 4.4% Figure 18 Top 10 States for Wind Generation Ranking State Wind Generation (Thousand MWh) Equivalent Average U.S. Homes Powered 1 Texas 39,371 3.61 million 2 Iowa 16,295 1.49 million 3 California 13,776 1.26 million 4 Oklahoma 11,862 1.09 million 5 Kansas 10,844 990,000 6 Illinois 10,077 920,000 7 Minnesota 9,060 830,000 8 Oregon 7,580 690,000 9 Colorado 7,351 670,000 10 Washington 7,264 TOTAL U.S. 181,791 16.7 million Figure 19 Top 10 Fastest Growing States for Wind Generation Ranking State Annual Growth in Wind Generation 1 Nebraska 51.9% 2 Michigan 38.4% 3 Vermont 29.5% 4 Utah 23.2% 5 Nevada 19.8% 6 Hawaii 16.3% 7 Kansas 15.0% 8 North Dakota 9 Idaho 12.9% 10 New York 12.2% TOTAL U.S. 8.30% � The growth rate in wind generation was most significant in Nebraska, which ranked second in the nation for wind capacity additions during 2013. That state had a 51.9 % increase in wind generation in 2014. Three other states increased their generation by more than 20%, with Michigan wind energy generation growing 38.4% in 2014, Vermont wind energy generation growing 29.5%, and Utah wind energy generation growing 23.2%. Source: EIA ...Power Mix: Top States with Wind Energy Generation � The wind generated in Texas during 2014 could power over 3.6 million average U.S. households, while the wind generation in Iowa, California and Oklahoma could each power over 1 million average U.S. households. Combined, the top 10 states for wind generation could power 12.2 million average U.S. households. � Wind generation numbers for 2014 show incremental but consistent growth over time for a number of states as the small number of projects that came online during 2013 generated electricity for a full year. 28 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

Regional & State Impacts of U.S. Wind Industry Activity Figure 67 Cumulative Investment in Wind Energy Projects, by State AK $130 million WA $5 .8 billion MT $1.2 billion VT $250 million ND $3.7 billion ME $910 million NH $360 million OR $6.2 billion MN $5.7 billion ID $1.9 billion SD $1.6 billion WI $1.3 billion NY $3.4 billion MA $220 million RI $20 million WY $2.6 billion MI $2.9 billion CT IA $10.0 billion PA $2.7 billion NV $280 million NE $1.5 billion IL $7.2 billion OH $775 million WV $1.2 billion NJ $10 million DE $4 million MD $330 million IN $3.7 billion UT $700 million CA $11.7 billion CO $4.8 billion KS $5.5 billion MO $960 million VA KY NC TN $33 million AZ $490 million NM $1.4 billion OK $7.0 billion AR SC < $100 million $100 million to < $500 million $500 million to < $1 billion $1 billion to < $5 billion $5 billion to < $10 billion > $10 billion MS AL GA TX $26.3 billion LA HI $410 million FL PR $100 million – < $500 million 80 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

Regional & State Impacts of U.S. Wind Industry Activity Figure 68 Estimated Annual Lease Payments to Landowners by Wind Projects AK $100k – 500k WA $5 –10 million VT ME $100k – 500k $1–5 million MT $1–5 million ND $5 –10 million OR $5 –10 million MN $5 –10 million ID $1–5 million NH $500k –1million MA $100k – 500k RI < $100k CT < $100k NJ < $100k DE < $100k MD $100k – 500k SD $1–5 million WI $1–5 million NY $1–5 million WY $1–5 million MI $1–5 million IA > $10 million PA $1–5 million NE $1–5 million NV $100k – 500k IL > $10 million OH $1–5 million UT $500k –1million IN $5 –10 million CA > $10 million CO $5 –10 million WV $1–5 KS $5 –10 million MO $1–5 million million VA KY NC TN < $100k AZ $500k –1million NM $1–5 million OK > $10 million AR SC  < $100k  $100k – $500k $500k – $1 million $1 million – $5 million $5 million – $10 million >$10 million MS AL GA TX > $10 million LA HI $500k– 1million FL PR $100k – 500k American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014 81

U.S. Wind Energy Industry Employment Figure 72 U.S. Wind Energy Industry Total Employment over Time As of the end of 2014, the U.S. wind energy industry supported 73,000 full-time equivalent (FTE)* jobs directly associated with wind energy project planning, siting, development, construction, manufacturing and supply chain, and operations. Employment in the U.S. Wind Energy Industry (FTEs) 100,000 80,000 Employment in the U.S. wind energy industry rebounded in 2014 as strong under construction activity and new turbine orders spurring manufacturing continued to bolster employment numbers. 60,000 40,000 20,000 Texas, the largest state in the nation for cumulative installed wind capacity, capacity installed in 2014 and under construction activity led the nation in wind jobs with over 17,000 employed in the wind industry. Texas was followed by Iowa, Colorado, Oklahoma, Michigan, Illinois, North Dakota, Washington, California, and Indiana. 2007 2008 2009 2010 Manufacturing & Supply Chain Construction, Development, Transportation Construction Operations: Wind Technicians Operations: Other Other Jobs 2011 2012 2013 2014 84 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

U.S. Wind Energy Industry Employment Figure 73 U.S. Wind Energy Industry Employment by State, Year End 2014 AK WA MT ND VT ME MN OR NH MA ID SD WI NY WY MI CT RI PA NE IA NJ DE MD NV IL IN OH CA UT CO WV KS MO VA KY NC TN AZ OK NM AR SC MS AL GA 1 to 100 101 to 500 501 to 1,000 1,001 to 2,000 2,001 to 3,000 3,001 to 4,000 4,001 to 5,000 6,001 to 7,000 17,001 to 18,000 TX HI LA FL 86 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

U.S. Wind Related Manufacturing Facilities Active Wind-related Manufacturing Facilities at end of 2014 AK WA MT ND ME VT OR MN MI ID WI NH SD MI NY MA WY CTRI IA PA NE N J NV DE UT IL IN OH MD CA CO WV KS VA MO KY OK TN NC AZ AR NM SC MS AL GA HI TX LA FL 0 to 100 MW >100 MW to 1,000 MW >1,000 MW to 5,000 MW >5,000 MW to 10,000 MW >10,000 MW Figure 61 During 2014, over 500 wind-related manufacturing facilities across 43 states produced products for the U.S. wind energy industry. The U.S. wind energy supply chain contains 10 utility-scale blade facilities, nine tower facilities, and six turbine nacelle assembly facilities, all spread across 14 states. Turbine manufacturers for more than 98% of the wind power capacity installed in the U.S. during 2014 have at least one operational domestic manufacturing facility. Annual U.S. production capability for wind turbine nacelles stands at approximately 9 GW. Wind Turbine & Component Manufacturing in the U.S. � The current U.S. wind industry supply chain is capable of producing the vast majority of the more than 8,000 components required for turbine assembly. � U.S.-based factories make everything from major components such as blades, towers, rotor hubs � During 2014, over 500 wind-related manufacturing facilities produced a product for the wind industry. � The geographic diversity of the wind-related manufacturing footprint is vast, with facilities spread across 43 states. 72 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

Market Share of U.S. Wind Turbine Manufacturers Figure 51 Market Share for Wind Turbine Manufactuers of U.S. Wind Power Fleet Ranking Company Capacity, MW 1.9% 1.4% 1.5% 1 GE Energy, Enron, Zond, Tacke 27,952 2 .6% 2 Vestas, NEG Micon, Micon, Nordtank, NedWind, Wind World 11,916 4 .1% 5.9% 3 Siemens, Bonus 9,837 6% 4 Gamesa 3,942 5 Mitsubishi 3,899 42.4% 6 Suzlon 2,684 14.9% 7 Clipper 1,700 8 Senvion 1,259 18.1% 9 Acciona 908 10 Nordex 763 Other 1,019 Others includes AAER, Alstom, CCWE, DeWind, Elecon, EWT, Fuhrlander, Goldwind, Guodian, Hyundai, HZ Windpower, Kenersys, Leitner-Poma, Nordic, Northern Power Systems, PowerWind, Samsung, Sany, Sinovel, Unison, VENSYS and more. Figure 52 Market Share for Wind Turbine Manufacturers of U.S. Wind Power Capacity over Time 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 GE Energy Siemens Vestas Gamesa REpower Mitsubishi Nordex Clipper Acciona Windpower Suzlon Other 2012 2013 2014 Market Share of Annual Installed Capacity Market Share & Major Players in Wind Turbine Manufacturing (2014 Projects) � Approximately 48,000 wind turbines make up the U.S. wind turbine fleet of 65,877 MW. At least 50 wind turbine manufacturers are represented in this fleet, along with a number of turbine remanufacturers. � GE Energy captures 42% market share of the cumulative wind turbine fleet, by capacity, followed by Vestas with 18% market share, and Siemens with 15% market share. � The number of OEMs installing turbines in the U.S. market remains low after a dramatic drop during 2013, when the number of industry players dropped from 26 during 2012 to only seven. The number of active OEMs remained the same during 2014, with two of the seven OEMs installing only one turbine. American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014 63

Market Participants Investment

Owners & Developers of U.S. Wind Power Capacity Market Share of U.S. Wind Power Capacity, by Owner Figure 25 Market Share of U.S. Wind Power Capacity over Time, by Owner Together, the top 5 wind project asset owners: NextEra Energy Resources, Iberdrola Renewables Berkshire Hathaway Energy (including MidAmerican Energy, PacifiCorp and BHE Renewables), EDP Renewables North America, and Invenergy own 41% of the installed wind power capacity in the U.S. 70,000 60,000 Wind Project Capacity (MW) 50,000 40,000 The top 25 wind project asset owners own more than 75% of the installed wind power capacity in the U.S. 30,000 20,000 10,000 2010 2011 NextEra Energy Resources Iberdrola Renewables Berkshire Hathaway Energy EDP Renewables North America LLC Invenergy NRG E.ON Climate & Renewables EDF Renewable Energy Duke Energy BP Wind Other 2012 2013 2014 36 American Wind Energy Association I U.S. Wind Industry Annual Market Report Year Ending 2014

Electric Utilities and Wind Power Top 10 Electric Utilities with Wind Power Capacity on System Xcel Energy 5,736 Percent of Operating Wind Capacity on Top 10 Electric Utility Systems Berkshire Hathaway Energy* Southern California Edison American Electric Power Pacific Gas & Electric Tennesse Valley Authority San Diego Gas & Electric CPS Energy Los Angeles Department of Water & Power Alliant Energy 1,57 1,078 1,059 969 884 1,000 2,185 2,060 2 2,000 3,531 3,000 4,000 4,992 5,000 6,000 36% 64% Top 10 Other Utilities Figure 34 � Xcel Energy continues to rank No.1 for wind power on a utility system; it achieves this ranking with a total of 5,736 MW under direct ownership or under contract. Berkshire Hathaway Energy ranks in the No. 2 spot with 4,992 MW of wind capacity, followed by Southern California Edison, American Electric Power, and Pacific Gas & Electric, who round out the top 5. � Xcel Energy is the first utility in the U.S. to exceed 5,000 MW. Only nine countries in the world, in addition to the states of Texas, Iowa and California, have more than 5,000 MW of wind capacity. Wind energy represents 15% of the power supply on the Xcel Energy system, and at one point during May 2013 wind power provided 61% of the electricity generated on its Colorado system. � The top 10 electric utilities for wind power capacity on their system include seven investor-owned utilities, two publicly owned utilities and one federal power agency. Collectively, these utilities own or purchase over 24,600 MW of wind power capacity, representing over 366 of the U.S. wind power fleet. � In the coming years, there will be new entrants into the list of top electric utilities given the significant number of PPAs and near-term wind growth expected from several additional utilities, including rural electric cooperatives. � Berkshire Hathaway Energy (including MidAmerican Energy, PacifiCorp, and NV Energy) continues to lead the U.S. in utility ownership of wind power capacity with 3,862 MW under direct ownership. Of the 3,862 MW of wind power capacity owned by Berkshire Hathaway Energy, over 73% is located in the state of Iowa. � For wind power ownership by utilities, Berkshire Hathaway Energy (including MidAmerican Energy and PacifiCorp) is followed by Puget Sound Energy, Portland General Electric, Minnesota Power and Alliant Energy, which together own 2,480 MW of wind power capacity. 45

Map of Wind Power Purchase Agreement Activity • 750 MW of PPAs announced in the first quarter, building on the roughly 11,300 MW of power purchase agreements signed during 2013‐2014. More than 50% of the 750 MW contracted in the first quarter were by non‐utility purchasers •

Department of Energy’s Wind vision for the u.s. 2015

The Wind Vision Report The US DOE’s comprehensive analysis of future pathways for the wind industry. Results reflect a broad-based, collaborative effort involving over 250 experts from industry, electric power operators, state & federal agencies, research institutions & laboratories, stakeholder groups & NGOs. The findings analyze feasibility, costs, and benefits of increased wind power deployment to inform policy decisions at the federal, state, tribal and local levels.

Overview: DOE’s Wind Vision Report In March 2015, the US Department of Energy released its definitive Wind Vision report update. Shows that wind can become one of America’s largest sources of electricity & save consumers money Sets aggressive targets for growth – and industry stands ready to meet those targets With stable policy, wind can unleash even greater benefits

Major Finding: Wind energy can supply 10% of US electricity by 2020, 20% by 2030 and 35% by 2050. In 2050 the projected installed capacity is 404 GW with 318 GW on land and 86 GW offshore.

Wind Vision Analysis Overview Wind Vision analysis models three core scenarios in order to better understand the sensitivities in deployment to various external drivers and to understand the likely economic and environmental effects of those drivers on the scenarios. Baseline Scenario Business as Usual Scenario Study Scenario

The Wind Vision Report: Study Scenario The resulting Study Scenario – 10% by 2020, 20% by 2030, and 35% by 2050 wind energy as a share of national end-use electricity demand – is compared against the baseline scenario to estimate costs, benefits, and other impacts associated with potential future wind deployment.

The Wind Vision Report The Potential of 35% of the Country’s Electricity Coming from Wind Energy by 2050.

Wind Energy’s Benefits To Date 65 GW of wind – enough to power 45,500,000 homes according to the U.S. Energy Information Administration–across 39 states in 2014 Attracted >$100 billion in private investment to the US since 2008 Employs more than 73,000 people in the US Manufacturing supply chain of more than 500 factories across 43 states Cut US electric sector carbon emissions by >5% – in 2014 alone, eliminated 26 million cars’ worth of CO2

Wind’s Pollution Reduction Benefits

Wind’s Steadily Declining Costs to Date

Wind Vision: Substantial New Benefits Can Be Realized Community Economic Benefits: By reaching 35% of the nation’s electricity mix by 2050, wind energy would: Create an additional 600,000 well-paying jobs; Drive $650 million in annual lease payments to landowners; Support nearly $1.8 billion in tax payments to communities; NOTE: Achieving 20% wind by 2030 will create 380,000 additional jobs.

Wind Vision: Substantial New Benefits Can Be Realized Consumer Savings: Expanding wind power in the US will mean: Electricity prices would be 20 percent less sensitive to fluctuations in the price of fossil fuels; Consumers would see $280 billion in economy-wide savings from reduced natural gas prices alone; and This investment will cost consumers only pennies a month in the early years, with annual consumer savings reaching $14 billion in 2050 alone.

Wind Vision: Substantial New Benefits Can Be Realized Environmental Benefits: Through 2050, expanding wind energy in the US would: Avoid $400 billion in climate damages; Save $108 billion in public health costs; Prevent 22,000 premature deaths; and Displace 23% of total US power plant water consumption.

Reducing Energy Sector Water Use & Shortages

Achieving the Wind Vision: DOE Criteria Improved weather forecasting & turbine layout; Next-generation technology, standards & testing; Robust US manufacturing base & supply chain; Best practices for performance, reliability and safety; Sufficient transmission lines to population centers; Responsible siting practices, workable permitting policies and community engagement; and Workforce development

Priority of Advocates for Wind Energy: Stable Policy Essential that Congress provide longest possible extension of the renewable energy Production Tax Credit & Investment Tax Credit Every other energy source enjoys tax incentives – the PTC and ITC are critical for wind and other renewable energy State implementation of EPA’s proposed Clean Power Plan also crucial, along with shoring up and maintaining key state policies

Solar and the Wind Vision High-Level Wind Vision Roadmap Actions Include Increase Flexible Resource Supply: Collaborate with the electric power sector to promote increased flexibility from all resources including conventional generation, demand response, wind and solar generation, and storage.

Spreading the Word: Wind Vision Ambassadors A new program led by the Wind Energy Foundation and the American Wind Energy Association Industry leaders & allies working to help key audiences – especially policy makers – understand Wind Vision and the benefits of expanding wind Supports Ambassadors through training, speaking appearances, media coverage Contact Charlie Martin: CMartin@windenergyfoundation.org This audience is a mix of industry people. Can you please provide 3 slides – with a summary of the PTC/ITC on one, a discussion of the tax incentives enjoyed by other energy sources on a second slide, and a slide on the 111(d) Clean Power Plan

What Else Can You Do? Purchase renewables directly from your utility; Urge policy makers to enact renewables-friendly policies; Share your stories with WEF, AWEA and local pro-renewables organizations; and Continue to develop cutting-edge technologies that help lower costs, create jobs & realize the promise of wind!

Wind Vision: Driving a New Era of Affordable, Abundant and Reliable Power in the US Evelyn Carpenter 501-438-9463 ecarpenter@solasenergyconsulting.com