1. 20 November 2018
Characteristics of Successful Wind Energy Markets: A Developer’s Perspective on Lessons for New England
TJ Deora
Restructuring Roundtable
Boston, MA
12 June 2009

2. Horizon Wind Energy is…
20 November 2018
Horizon Wind Energy is…
A wind energy leader who develops, constructs, owns and operates wind farms throughout North America
Owned by EDP Renewables, a leading global renewable energy company listed on the Lisbon Euronext exchange
Headquartered in Houston with over 20 offices across the country
An employer of over 250 people
A developer of over 2,800 MW of wind farms and operator of over 2,000 MW of installed capacity
Ranked third in the U.S. in terms of installed capacity in 2008
20 November 2018

3. …established across the major markets nationwide
20 November 2018
…established across the major markets nationwide
20 November 2018 3 3

4. We manage complex uncertainties to develop projects…
20 November 2018
We manage complex uncertainties to develop projects…
Project Development
Turbine Supply
EPC
Financing & Operation
Operations & Maintenance
Interconnection & Transmission
Locating AIC and ATC
Managing the LGIP
Securing transmission rights
Interconnection & Transmission
Land
Land
Met agreements
Development options
Wind easements
Transmission easements
Wind
Desktop evaluations
On-site testing
Layout development
Market
Market forecasting
Biz Dev
PPA negotiations
REC marketing
Studies and Permits
Wildlife studies
Wetlands
Cultural and viewshed impacts
State and local permits
5 June 2008

5. …as the constraints in the supply chain continue to evolve
20 November 2018
…as the constraints in the supply chain continue to evolve
Resourcs & Projects
Turbine Supply
Financing
Trans-mission
Load Service (Market)
US Annual Installed Wind Power Capacity MegaWatts
Years
Constraints
Pre-1999
Market
Turbine Supply
2000, ‘02, ‘04
Finance: PTC expired
2008
Finance: PTC market
2009-’10
Finance: capital availability
2011+
Injection and transmission capacity
Source: AWEA / UCS
5 June 2008

6. States with the most installed wind capacity…
20 November 2018
States with the most installed wind capacity…
5 June 2008

7. …share key characteristics
20 November 2018
…share key characteristics
Installed Wind Capacity
30 April 2009
Development Characteristics
Market
Electricity RECs
State TX IA CA MN NY CO
Rank 1 2 3 4 7 8
RTO
ERCOT
MISO
CAISO
NYISO
None
Land
Wind
Siting
T&I
Least attractive
Most attractive
5 June 2008

8. …share key characteristics
20 November 2018
…share key characteristics
Installed Wind Capacity
30 April 2009
Development Characteristics
Market
Electricity RECs
State TX IA CA MN NY CO
New England
Capacity, MW
8203
2862
2668
1802
1274
1068
143
Rank 1 2 3 4 7 8
RTO
ERCOT
MISO
CAISO
NYISO
None
ISO-NE
Land
Wind
Siting
T&I
5 June 2008

9. Providers’ responses to growing scarcity of AIC/ATC vary
Several merchant lines are proposed to deliver GWs of wind to CA, NV, and AZ
CAPX 2020 will bring over 8 GW on line from courtesy of ratepayers
Transmission providers across the country are proactively responding to the constraints
New England suffers from high energy prices but has not attracted much investment to date
The lack of investement in transmission for renewables will excerbate this situation
BPA’s 2008 open season obtained commitment for 2.8 GW of generator funded transmission service
CAISO
ERCOT
SPP
MISO
PJM
NYISO
ISO-NE
WECC
TRTP will unlock 4.5 GW of renewables for SCE from with ratepayer financing and generator reimbursement
EHV Overlay will enable over 13 GW of wind energy to come on line starting in 2013
Texas ratepayers will fund CREZ, facilitating 18 GW of wind generation starting in 2013
Source: EER, HWE
5 June 2008

10. Innovation delivery proposals for ISO-NE abound…
ILLUSTRATIVE
High
Low
Green Line
1200 MW
NNEWCL
2000 MW
Complexity
Cost
Irving
? MW
Low
High
MPC
1200 MW
JCSP
? MW
NESCOE
? MW
Gen Leads
Small
Low
High
Scope
5 June 2008

11. …to deliver the benefits of wind power to ratepayers
20 November 2018
…to deliver the benefits of wind power to ratepayers
Benefit
Capture Strategy
Low, stable energy prices
Invest in transmission to unlock low-cost resources
Facilitate imports
Support long term PPAs
New capacity resources
Proactively invest to relieve congestion
Facilitate new generation additions
Continue to improve forward capacity markets
Environmental quality
Facilitate open and transparent REC markets
Support national renewables and carbon policy
Economic development and energy security
Focus builing on existing comparative advantage
Develop wind where it is wanted
Ensure generation added from a diverse portfolio of resources
5 June 2008 11 11

12. We have a wide scope of potential solutions…
Source: McKinsey and Company, 2007
5 June 2008

13. …but will need to deploy them all to tackle challenge
Figure 1 Idealized emissions. Shown are three idealized CO2 emission paths (a) each consistent with total cumulative emissions (b) of 1 trillion tonnes of carbon. Varying the timing of emissions alone has almost no impact on projected temperatures (c) relative to uncertainty in the climate system’s response (grey shading and red error bar), provided the cumulative total is unaffected (the two blue shaded regions in a have the same area, as do the green); but the higher and later emissions peak, the faster they have to decline to stay within the same cumulative budget. Diamonds in c indicate observed temperatures relative to
5 June 2008

14. Project Development Manager
Key Take Aways
1. Wind development thrives when reasonable wind resource has open access (RTO with injection capacity) to an attractive market.
Transmission is the emerging constraint across the country, and the regions that add transmission capacity will “win” investment in wind energy.
Given the magnitude of the benefits and need we are facing and the timeline we have to act, facilitating all forms of cost effective carbon reduction is immediately critical.
Tanuj “TJ” Deora
Project Development Manager
Horizon Wind Energy
1526 Blake Street, Suite 200
Denver, Colorado
5 June 2008

15. For More Information…
WECC:
BPA Open Season:
MISO:
CapX2020:
ERCOT:
CREZ:
SPP:
EHV:
Regional Plans:
JCSP:
WGA:
National Perspective:
Emerging Energy Research’s Market Brief: “Transmission Initiatives Adapt to US Wind Growth.” 7 January 2009
American Wind Energy Association:
US Department of Energy: “20% Wind by 2030.”
1. Wind development thrives when reasonable wind resource has open access (RTO with injection capacity) to an attractive market.
Transmission is the emerging constraint across the country, and the regions that add transmission capacity will “win” investment in wind energy.
Given the magnitude of the benefits and need we are facing and the timeline we have to act, facilitating all forms of cost effective carbon reduction is immediately critical.
5 June 2008