Arklow - GEWE 3.6 MW Offshore Project Lessons Learned John Stephens Global Development Manager GE Energy

Global Offshore Update A $ Multi-B industry over the next 10 years. Remarkable growth 15 – 20 % CAGR Can be sited closer to urban populations Proximity of local grid connection to urban centers. Less turbulence and WTG Fatigue Higher capacity factors – 50% Cost of electricity approaching 6¢/kWh Favourable regulatory support. Installed MW Offshore Europe Americas Onshore Global Growth US 2003 Installed <100 MW Planned >8 GW Europe 2003 Installed base 260 MW Planned >11 GW. Installed base for Wind Power

GE Wind Energy – Arklow Project Site Specifics 8.5 m/s wind speed at 73,5 m 10 km from shore 3.5 – 6.4 m water depth Breaking waves & high currents Dense sand & gravel Co-Development project of Airtricity & GE Wind Energy

Arklow Background 25.2 MW Demonstration project of GE Wind Energy’s 3.6 MW Offshore Wind Turbine Generator Project located 10 kms off the coast of Arklow, Ireland in the Irish Sea 7 x 3.6 MW WTGs constructed by GEWE in 2003 GEWE co-developed project with Irish Green energy company, Airtricity GEWE has built and will own and operate turbines for approximately 2 years, then transfer (BOOT) 45 miles south of Dublin During Ownership period GEWE will ensure acceptance of: Basic reliability of design Necessary operating hours to prove new technology Warranty provisions and weather exclusions adequate for financing Optimization of O&M – Cost effective and safe

Arklow Update All 7 Wind turbines Pre-Commissioned 3 Wind turbines commissioned & under final testing - expect to generate electricity by 8th March 2004 Remaining turbines 50% commissioned All undersea cabling connected & tested Land-based switch house commissioned Meteorological mast foundation and tower fully installed, monitoring & measurement equipment being installed Asset Management team in place Develop World class O&M Document lessons learned and implement solutions Completing evaluation of how to optimize access Completing comprehensive maintenance plan with major EHS focus Validating plan to jump to 4 MW Wind Turbine

Arklow Lessons Learned Construction Complete detailed logistics planning early in execution phase Complete geo-technical analysis early Develop design sufficiently to minimize changes Coordinate order placement w/ legal, accounting & tax constraints Acknowledge EHS risk & convert to competitive advantage Access…access…access Contractual Partner with offshore contractors having skills to take installation risk Engineering & Supply Chain must be completed ahead of construction window Manage undersea cable like a separate project New major components should be managed in a similar fashion to product NPI

Arklow EHS Grid Connection Environment & Safety Management Systems GEWE personnel closely liased with ESB to ensure Arklow Safety Management system interfaced with local Electricity Grid safety boundary documents. Leverage GE Safe Systems of Work from other GE Energy businesses to suite local legislative requirements Environment & Safety Management Systems GE’s global EHS systems recognized as world leaders. Risk management approach from Corporate level through to a Site’s business plan. Developing access systems to maximise availability and to suite local conditions. All offshore personnel are required to attend the BOSIET course(Basic Offshore Survival).

Arklow – Objectives and Plans Environment, Health & Safety GEWE will be a leader in the Offshore Wind Industry for EHS programs Active involvement and assessment of all activities from construction to access to O&M Established environmental monitoring and reporting program Operations & Maintenance (O&M) Using 2 year ownership period to develop expertise Asset Management, Services & Engineering organizations working closely to optimize

Arklow – Objectives and Plans Availability Tiger Team Multi-discipline team formed to drive reliability Manage Arklow turbines with high availability objective Establishing remote monitoring of Arklow turbines through monitoring center in Germany Assess design and develop redundancy to allow long maintenance intervals. Long term goal is once per year Access Evaluating options to optimize access methods considering EHS, availability impact and cost Recognize EHS risks and looking to set standards Looking to leverage best practices from other offshore industries

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