Supergrid

Joe Corbett, Head of Technical Services

10th May 2010

Introduction to Mainstream

An introduction to Mainstream

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• Founded in February 2008• Innovative, entrepreneurial and ambitious global renewable energy company• Owned by Eddie O’Connor and Staff/Management• 100+ Employees• Management Team Includes:

– Dr. Eddie O’Connor: Founder & Chief Executive Officer– Fintan Whelan: Co-Founder & Corporate Finance Director– Andy Kinsella: Executive Director and CEO, Offshore– Torben Andersen: Executive Director and CEO, Onshore

• Board Members Include:– Fintan Drury: Chairman – Chuck Watson Former Chairman and CEO of Dynegy Inc– Sir Roy Gardner Former CEO of Centrica– Brendan Halligan Chairman, Sustainable Energy Ireland– John Lavery Co-Founder, Airtricity– Mark Brown Barclays Capital

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February 2008

Milestones achieved to date

Feb ’08: Seed equity of €32m from founders

Aug ’08: Raised €40m equity; €20m from Barclays Capital, €20m from the Board,

management, staff and HNWI’s

Nov ’08: Chile: Signed JV with Andes Energy for initial 400 MW pipeline

Dec ’08: Raised €26m non-bank mezzanine facility

Feb ’09: Scotland: Awarded exclusive license for 450 MW offshore site

Mar ’09: Canada: Signed JV with AWEC for 400 MW

Mar ’09: South Africa: Signed JV with Genesis Eco-Energy for 500 MW

Jun ’09: US: Acquired from FPC Services, Illinois 787 MW

May ’09: Germany: Working towards securing exclusive license for 1,000 MW site

Jan ’10: UK: Mainstream and Siemens Project Ventures awarded a contract to develop 4GW as part of The Crown Estate’s Round 3 offshore wind farm programme

Canada (Onshore) Secured pipeline to date: 400 MW

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Target markets

United States (Onshore) Secured pipeline to date: 757 MW

Chile (Onshore) Secured pipeline to date: 400MW

South Africa (Onshore) Secured pipeline to date: 500 MW

Germany (Offshore) Secured pipeline to date: 1,000 MW

Scotland (Offshore) Secured pipeline to date: up to 450 MW UK (Offshore)

Secured pipeline to date: 4 GW

The Supergrid

Drivers

Single Market

- Competition

Energy Security

Sustainability

Renewable Energy Targets

Context

2050 Europe- Wind 50%

- Solar 30%

- Other 20%

1.5 TW of Offshore Wind!

Generation Mix - 2050

Wind50%

Solar30%

Other Renewables10%

Nuclear10%

Recent Plans (example)

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Supergrid is defined as:

“an electricity transmission system, mainly based on direct current, designed to facilitate large-scale sustainable power generation in remote areas for transmission to centres of consumption, one of whose fundamental attributes will be the enhancement of the market in electricity.”

Visit www.friendsofthesupergrid.eu

The Friends of the Supergrid:

“is a group of companies and organisations with a mutual interest in promoting the policy agenda for a European Supergrid.”

Other Initiatives

North Seas Countries Offshore Grid Initiative

Adamowitsch Group

Super Smart Grid

ENTSO-E

ERGEG/CEER

Supergrid – phase 1

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Power Transfer CapabilityAC versus HVDC transmission

0 200 400 600 800 10000

500

1000

1500

400 kV AC line320 kV dc line

Distance in km

Pow

er i

n M

W

.

Overhead lines

Cables

400 kV AC line

320 kV DC line

Three 400 kV AC cables

Two 320 kVDC cables

What is HVDC transmission?

R

DC LineInverterRectifier

Convertor/ transformer

F FCapacitor/Filter

ReceivingEnd

SendingEnd

Idc

Vdc

t

Idc

t

ii

Iact

i

Iac

HVDC Uses

Back-to-Back Interconnection

AC AC

DC Cable

AC AC

Submarine Cable Transmission

Long Distance OHL Transmission

DC Line

AC AC

StationCost

DCConvertorStations

AC Sub-stations

DC

AC

Break EvenDistance

800kmOverhead

Line

50kmSubmarineCable

TransmissionDistance

Lines & Stations

7341200

When does HVDC make Sense?

Comparable costs:

AC vs DC

Technology

Bulk Power Transfers over Long Distance between SuperNodes

HVDC

- Voltage Source Converter

Superconducting Pipes

- Minimum Losses

Demand Side Management

- Smart Grid

- Pricing Response

- Transport Fleet

Compare 765kV AC with Superconductor Pipe

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Source: American Superconductor

100 200 300 400 500 600 $-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Cost per MW-mile of Overhead 765kV AC and Underground Superconductor DC Pipelines

Overhead 765kV AverageUnderground 2.2GW PipelineUnderground 5GW PipelineUnderground 10GW Pipeline

Line Length (Miles)

Tra

ns

mis

sio

n L

ine

Co

st

($/M

W-M

ile

)

NOTES:

765kV line data based on average cost per mile per 01/20/2010 EWITS study

Superconductor Pipeline costs include HVDC terminal cost and a segregated segregated pole design complete withredundant spare pole cable

Source: American Superconductor

SuperNode Concept

SUPERNODE CONCEPT

400kV

2 x 500MW2 x 500MW

2 x 500MW2 x 500MW

Converter Station

2.4GW

2.4GW

2.4GW

2.4GW

±320kV

±320kV

Cost: Supergrid – phase 1

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How much will it Cost?Gearing 70/30

Total Capex €34bn

Nameplate Wind Capacity 21GW

Wind Capacity Factor 40%

Return on Equity 10%

TUOS €35 /MWh

What do we Need?

EU Regulator- Common Regulatory Framework

Super System Operator

Single Grid Code

Master-plan for 2050

What do we Need?

Converter Development

• Lower Costs

• Lower Losses

• Higher Current

DC Cables

• Higher Voltage

DC Switchgear

Super-Conducting Pipes

Control & Protection

• Multi-terminal HVDC Links

• Inertia?

Moving from aCarbon Intense Reality to a Low Carbon Future

2030 U.S. Low Carbon Scenario – (LCS)

– Consumption Estimate**

• 4,800 TWh

• >50% Generation from Renewables

– Proposed Generation Mix:

• Wind: 43%

• Solar: 7%

• Conventional Hydro: 13%

• Other Renewables (Biomass, Geothermal, etc.): 3%

• Nuclear: 16%

• Natural Gas: 18%

**Assumes a 40% increase in energy consumption on 2008 values

Current U.S. Generation Mix*– Consumption†

• 3,440 TWh• >98% of U.S. generation is

derived from non-renewable sources

– Generation Mix:• Coal: 48%• Natural Gas: 21%• Nuclear: 20%• Conventional Hydro: 6%• Wind: 1%• Other: 4%

*2008 Data, DOE/EIA† Consumption in Bundled Total Sales

US Supergrid

European Supergrid