Last days of suppliers hegemony: customer driven market has come Athens, March 1 st, 2006 Ester Cámara Operations Manager Iberdrola Renewables Energies

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES2 Over the last years wind energy sector has experienced a rapid evolution Spain new objective: To double actual installed capacity up to MW by year % Europe new objective: MW by year 2010

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES3 One year in advance, Iberdrola has accomplished its first strategic plan Strategic plan succeded in 2005 New objective 5.800

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES4 Iberdrola #1 wind energy world company Iberdrola presence

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES wind turbine generators as of December 2005 WTG Provider Power capacity (kW) # GAMESA GAMESA GAMESA GE75099 GE SIEMENS SIEMENS ENERCON80062 VESTAS66013 VESTAS ECOTECNIA TOTAL4.372

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES6 Iberdrola is applying its own professional production management model to wind energy Maximize economic performance of every wind farm during the extension of its lifetime Starting point Production Management Model Main goal Iberdrola’s 100 years utility culture Wide O&M expertise:  Hydroelectric  Gas combine cycles  Nuclear  Renewables  Fuel oil  Coal  Cogeneration Iberdrola doesn’t develop a wind farm to sell it Iberdrola develops to create value Systems and procedures Strategy Organization & functions “Dominate technology and key management factors”

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES7 DOMINA project: Development of a Production and Maintenance Management System Objective 1: Maximize economic performance of wind farms ASSET MANAGEMENT MAINTENANCE MANAGEMENT OPERATING EXPERIENCE FEEDBACK PRODUCTION MANAGEMENT Collection of every asset information in an homogeneous way Control of changes in the asset Analysis of incidents and identification of root causes Definition of WTG design modifications to increase its reliability Quantification of unproduced energy Identification of the main causes of unproduced energy Dominate technology Objective 2: Supervision of maintenance process Review and improvement of tasks Achievement of an efficient maintenance cost

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES8 Communications and hardware simplified architecture WAN... WIND FARM A ROUTER Local Control System Corporate Network Access System... WIND FARM B ROUTER Local Control System Corporate Network Access System INTRANET INTERNET FIREWALL Production Management Server SAP Maintenance Management Server CORPORATE NETWORK ROUTER DOMINA SYSTEM Retro projection screen CENTRAL OPERATION CENTER NETWORK ROUTER SCADA #1 HDB #2 SCADA #2 HDB #1 IBERDROLA CENTRAL OPERATION CENTER

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES9 DOMINA: Asset management Systems Wind farm WTG Starting point is capture of the physical configuration of every wind farm Technical positions: functional positions of the wind farm to which the maintenance works is addressed Equipments: components that can be tracked through their serial numbers. This enables history saving, traceability and warranty management Clasification system with valued features Documentation associated to every specific component of the asset Code Description Illustrative

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES10 DOMINA: Maintenance management (I) Work order is the tool to control maintenance tasks, maintenance cost and feedback operating experience 4 kinds of activities: preventive maintenance, corrective maintenance, local restart, design modification Illustrative

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES11 DOMINA: Maintenance management (II) Affected part of the object Failure mode Cause Alarm presented by the WTG Time interval the WTG hasn’t been running Human or environtmental damages Other relevant information ADITIONAL INFORMATION Object the maintenance points to Activity kind: Preventive, corrective, local restart, design modification List of tasks to be done Materials needed: consumables, spare- parts, etc. Professional qualification of workers # of hours used Work description BASIC INFORMATION Only for CORRECTIVE MAINTENANCE and LOCAL RESTARTS Enables feedback of operating experience WORK ORDER

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES12 DOMINA: Maintenance management (III) Preventive Local Restarts Design Modification Corrective WTG Medium Voltage System Substation Civil Works Meteorological Mast HOURS MATERIALS AUXILIARY EQUIPMENT Work order allows appropriate control of maintenance expense

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES13 DOMINA: Production management Causes of unavailability O&M people at wind farms characterize every single stop occurred, naming causes of unavailability Iberdrola’s own methodology to obtain production reference for every WTG every day Automatically DOMINA obtains working parameters: unproduced energy, time intervals, frequencies Parameters turn into indicators that are used to control and manage production Unproduced Energy Gap identification for particular time intervals Due to unavailabilities Production reference Real production Unavailability 1 Unavailability 2 Unavailability 3 Unavailability 4 Unavailability 5 Maintenance Operation Time intervals Working parameters Production indicators Operation indicators Maintenance indicators Production indicators Operation indicators Maintenance indicators Frequencies

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES14 DOMINA: Operating Experience Feedback With the information provided in the work order, FMEA methodology is applied to discover the root cause of main incidents Aiming reliability of wind farms, either maintenance or design modification is developed 1.Human or environmental damage 2.Reparation Cost 3.Production losses Priority criteria Root Cause Identification Design Modification Maintenance Standards Modification Wind Farms RELIABILITY Economic and lifetime analysis FMEA methodolgy FMEA methodolgy

March 1 st, 2006 IBERDROLA RENEWABLES ENERGIES15 Key factors to succeed Utility with more than 100 years of production, operation and maintenance experience Worldwide #1 in wind energy Develops wind farms to create value Cares about assets lifetime Has its own technical specification for WTG main components Works close together with WTG providers to obtain the best technology Works close together with maintenance contractors to obtain the best maintenance standards Feedback technology partners to improve wind technology and make it more reliable