ENERCON and the Portuguese Wind Energy Cluster

The Portuguese energy challenge INEFFICIENCY DEPENDENCY REDUCE LOSSES DIVERSIFY SOURCES Polluting Emissions Kyoto Protocol ENVIRONMENT Cost of Energy Vulnerability ECONOMY

2001: The “awakening” Portugal launches energy policy centered on:  Encouraging Energy Efficiency  Large-scale use of Portugal’s vast Endogenous & Renewable Energy potential WindSunBiomass

 Mature & competitive technology  65% average annual growth : 2858 MW Wind Energy leads the growth 2012: >5000 MW

How to proceed to the next level and transform wind energy into an essential component of the Portuguese energy mix - and of the Portuguese economy?

The public tender provides interconnection rights for new wind farms, under the condition that:  A new industrial cluster be created,  A new industrial cluster be created, bringing investment, employment and technology transfer to Portugal  New solutions be developed to exploit the wind resource more efficiently,  New solutions be developed to exploit the wind resource more efficiently, namely dispatch centres, prevision models and storage solutions

The Cluster: Porter’s Concept Firm’s Products and Services Demand Related Companies Surrounding Factors: Infrastructures, I&D Based on Porter’s Diamond Based on Porter’s Diamond Group of closely-related companies Group of closely-related companies Maximises efficiency and added value Maximises efficiency and added value Constitutes an efficient strategy in high-tech sectors Constitutes an efficient strategy in high-tech sectors

Creating Synergies

Enercon’s lasting contribution As the world leader in wind energy technology development, Enercon’s contribution to the success of the Portuguese industrial cluster was considerable:  Adhering fully to the concept and challenge of creating an industrial cluster  Federating companies, knowledge and skills around this endeavor  Performing an unprecedented process of technology transfer

Technology Transfer / R&D  Integral production of the E-82 in Portugal (blades, generator, e-module, tower)  New R&D and training centres  Portuguese personnel sent to Germany for advanced training

 48 new wind farms, 1200 MW  2700 GWh/yr of electricity, i.e. supply equivalent to more than 2,3m domestic consumers  25% of the portuguese wind energy production in 2011 Results (1): A new expansion phase for wind energy

Results (2): A tremendous boost for the Portuguese economy Total Investment € 1700 m Total Added Value € 286 m per year Job Creations direct, indirect Balance of Payments Exports > 60% of the production (€200m per year from 2010) Avoided gas imports > € 100 m per year Avoided purchase of CO2 certificates € 24 m per year (1 MtCO 2 per year) Local Development Local taxes € 5 m per year Land rents € 3,4 m per year

Results (3): A true change of paradigm  In addition to the environmental benefits, wind energy provides jobs, economic growth and activity to dozens of Portuguese companies

7 new & 12 upgraded factories ENERCON Rotor Blades (1, 12, 13) – ENERCON Concrete Towers (5, 7, 9) – ENERCON Synchronous Generators (10) – SAERTEX Glass Fiber (11) – A. SILVA MATOS Steel Towers (3, 6, 15) – SIEMENS Transformers and Electrical Panels (8, 14) – JAYME DA COSTA Electrical Equipments (4)

Building the wind farms 1. Enercon Rotor Blades ready for export in the port of Viana do Castelo – 2 & 15. Special transport of Enercon E-82 blades (Transportes Laso) – 3. Building a power substation (Painhas) – 4 & 7. Installing electric lines (Painhas) – 5 & 8. Erecting the wind turbines (Montalgrua) – 6. Building the electric pylons (Painhas) – 9 & 12. Special transport of Enercon towers and nacelles ( Transportes Gonçalo)

CompanyFactoryLocationInvestment (€)New Jobs ENEOP/EnerconRotor Blade FactoryViana do Castelo Concrete Tower FactoryViana do Castelo Generator FactoryLanheses Mechatronics PlantLanheses Administrative & Training CentreLanheses Logistics & Transport CentreViana do Castelo Second Blade factoryLanheses A. Silva MatosSteel Tower FactorySever do Vouga Cabos para EólicasElectrical Equipment UnitVila Nova de Gaia CMEElectrical Installations UnitLousã EWGWEC Service CentreViana do Castelo Jayme da CostaElectrical Equipment UnitVila Nova de Gaia MetalogalvaElectrical Supplies UnitAlbergaria-a-Velha MontalgruaCranes Service UnitParedes PainhasElectrical Installations UnitViana do Castelo Probilog/LasoTransport Services UnitArcos de Valdevez SaertexGlass Fiber FactoryViana do Castelo SiemensElectrical Transformer FactorySabugo SiemensMedium-Voltage Panels FactoryCorroios SiemensOther investmentsLisbon & Porto TegaelElectrical Installations UnitCoruche Transportes GonçaloTransport Services UnitPorto Total Direct Investments and Jobs Contractual Commitments Exceeding expectations & commitments

Thank you!