2015

Renewable Energy Technology for Water Treatment & Desalination SectorRev3

Northern Power Systems

Northern Power Systems

Northern Power Systems (TSX: NPS) has been delivering innovative energy solutions in a changing landscape for over 40 years

2014- Listed on the Toronto Stock Exchange

We provide leading edge technology for the energy industry including:

100/60 kW distributed wind platforms Power converters for energy storage MicroGrid implementation

Northern Power Systems also offers comprehensive in-house development services, including systems level engineering, advanced drivetrains, power electronics, permanent magnet machine design, and remote monitoring systems to the energy industry

Headquartered in Barre, Vermont, USA with over 110 employees worldwide

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NPS 100 kW

NPS 60 kW

Core markets: EU, NAProven technology

Emerging marketsProven partners

With key strategic partners

Technology Partnerships Technology DevelopmentProduct Sales & Service

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Fully developed platforms

Flexible commercialization arrangements

Microgrid systems

Grid Integration

In-house R&D Laboratory

NPS 2.X MW and 3.X MW platforms

FlexPhase™ Converter and control systems

Northern Power Systems: Integrated Offerings

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Northern Power Systems: Global Footprint

Now In Asia

with first units

installed in

Korea

Over 400 NPS Systems Installed Worldwide Including 2.1 MW Turbines With Our Brazilian Partner WEG Strong installed base in western countries Poised to take distributed wind to emerging markets

Several regions across the globe are facing difficult conditions: High power costs Weak grid infrastructure Desire for more sustainability and independence

Distributed Generation should be part of the Solution

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Why Choose Wind for Water Treatment?

Why choose wind: Electricity demand for water desalination is said to

raise by... 300% btw. 2007 and 2030 in the MENA region (IRENA) 9% globally p.a. during the next years (IRENA)

Main regions for water desalination are MENA, USA, with India and China increasing in importance. All of these regions have RES-E targets, many rely on electricity or Diesel import.

1 m3 classically requires 2-2,5 kWh (in case of reverse osmosis) or 1-2 l Diesel. If at a cost of 1 USD per liter as in many geographies, 1 m3 costs 1-1.5 USD in energy vs. 0.3-0.5 USD if ran by NPS 100 (@ wind speed of 6m/s, before financing and taxes)

If combined with Solar PV, wind power allows for constant power supply both day and night, summer and winter

Desalination can substitute costly storage often required with fluctuating RES-E: Desalinated water itself can be stored (i.e. produced in alignment with RES-E fluctuation)

On-site distributed wind brings significant value to an on-site energy mix, and can complimented with energy storage to help absorb excess electricity to be dispatched on site during times of high demand when wind may not be blowing.

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Why Choose Northern Power Systems?

Proven wind turbine solutions - leading permanent magnet, direct-drive technology provider in the distributed energy market driving niche-penetration in the multi-MW utility scale industry

Grid integration technology for today’s needs. Advanced grid modeling and systems integration experience lead to cost efficient sustainable energy solutions

Introducing NPS 100, the optimal sized wind turbine Ease of Integration – our wind turbines are designed to be

“inverter-connected” and easily integrated through advanced power electronics into the overall balance of system architecture

Increased Annual Energy Production (AEP) – Our PMDD technology maximizes energy capture, outperforms conventional gearbox designs, and reduces maintenance costs

Perfect Size – the NPS 100 wind turbine requires a small footprint in order to be integrated into any desalination or water treatment project. Its low height profile (< 50 m) and quiet operation ease permitting processes

Easy transportation: 2 12m containers include all parts of a NPS 100 and are thus easily transported and installed to and at most sites

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Case Study: Water Treatment and Wind in Germany

100 kW size allows for modular sizing of the power plant in dependence of local power prices, capital situation of the operator and risk appetite

Up to 95% of self-consumed wind power can be consumed directly for this specific researched case if 2 turbines are installed. This does not require any storage nor controls and offers for each kWh the value of the retail price / kWh incl. all taxes and charges, in Germany above 20 EUR-cents / kWh. Depending the country, the excess power can be fed into the grid either for a Feed-in tariff OR for a Premium Feed-in OR for the normal wholesale power price

While 1-3 x NPS 100 «only» cover 20%-50% of total power consumption at the investigated site during the course of a year, a larger project would yield more excess power to the grid having lower value than offset power demand from the grid

Adding Solar could increase the share of RES-E as part of the complete load dramatically

Risiko: Nähe zum Flughafen ca. 5.5 km östlich (Abklärung hinsichtlich Baugenehmigung erforderlich, wobei NPS 100 C gegenüber herkömmlichen Windturbinen den Vorteil begrenzter Höhe aufweist

Die abgeklärte Situation: 

Sieltrift 47, 27637 Cappel

Koordinaten: 53.758586, 8.557311

0 2 4 6 8 10 12 140.0

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40.0

60.0

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Consumption vs. Production

Month

MW

h (m

/s)

Consumption of the facility

Expected returns 3 x NPS 100

Expected returns 2 x NPS 100 kW

Expected returns 1 x NPS 100 kW

Wind speed on 37 m hub height (m/s, yearly average: 6.2)

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Wind + Solar = Constant Power Supply

Reliable Power Supply – by combining wind and solar PV allows for constant power supply both day and night, summer and winter

Increased System Capacity Factor – the overall water treatment facility’s capacity factor is increased to meet overall site requirements and maximize site performance

Increased System Annual Energy Production (AEP) – together wind and solar complement each other by reducing times of intermittency and maximizing AEP

Energy Production

Energy Production

Graph source: CleanTechnica article 10 Huge Lessons We’ve Learned From Solar Power Success In Germany, Feb. 9, 2013

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Case Study: Desalination in the Bahamas

Location Over Yonder Cay,

Bahamas

Project Hybrid Energy MicroGrid

(Wind/PV/Diesel/Energy Storage)

Excess energy stored or used in desalination facilities

Model 3 x NPS 100-21, 30 meter

towers

Average wind speed 7.1 m/s (15.9 mph)

Annual Energy Production 671,000 kWh

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Case Study: Water Treatment in Cascade, US

Location Village of Cascade, WI,

USA

Project Net metered dual 100 kW

distributed wind generation system at a waste water treatment plant

Model 2 x NPS 100-21, 37 meter

towers

Average wind speed 5.5 m/s (12.4 mph/20 kph)

Wind Incentive $400,000 (FOE and WE

utilities combined)

3rd generation of proven design; 15% more energy capture

Advanced blade design for low wind applications

Greater capacity factor than solar = more energy for the same capacity

Modularized power electronics for ease of assembly and service

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NPS100: Series Nacelle for Distributed Gen

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NPS 100 Specifications

Design Life: 20 years

Rotor Diameter Options: 24m, 21m

Hub Height Options: 37m, 29m, 22m

Wind Speed: Cut-in: 3 m/s Rated: 12 m/s Cut-out: 25 m/s Extreme: 52.5 m/s

Rated Electrical Power: 95 kW, 3 Phase, 480 VAC, 60 Hz

24x7 monitoring and reporting2-Year Factory Warranty

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NPS 100 PM/DD Turbine Traditional Geared Turbine

Complex, high-speed drivetrain problematic:5-7% downtime. (Gearbox replacements/7-9years)High scheduled and unscheduled maintenance

cost – oil, filter, bearing replacements

Failures of large components require expensive crane & significant downtime

Economically infeasible in distributed wind due to significant downtime and high O&M costs

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Simple, low speed drivetrain extremely reliable:1-2% DowntimeNo high-speed wear & tear or gearbox

replacement

Very high-efficiency … no friction losses and permanent magnets supply magnetic field

Direct drive empowers wind generation by delivering more power, more of the time, at lower cost

Fundamentally Better than Geared

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Confidential

2009 2010 2011 2012 2013 20140

50

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1,000,000

2,000,000

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Cumulative Run Hours

Cumulative Units Cum

ulati

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un T

ime,

Hrs

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NPS 60 & NPS 100 Distributed Platforms: 400+ installed & commissioned 7,500,000+ Run-hours 98-99% Availability vs. 90–95% comps 85+ issued and pending patents globally

Utility Class Platform Technology running >75,000 hours >96% Availability on 2.3MW prototypes

NPS: Proven Growth & Performance

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Designed for Construction - Logistics

Cost optimization

Standard 12m ISO container

Over-the-road anywhere

No oversize permits required

No overweight permits required

Confidential

Designed for Construction - Installation

Cost optimization

Fewer parts

Moderate size

Flexible equipment requirements

Confidential17

Your Partner for Integrated Offgrid Power Solutions

While compatible with and open to various technologies, Northern Power Systems has teamed up with proven expert partners for off-grid and hybrid grid systems to provide complete wind power systems for remote areas if desired:

Wind from NPS: +400 turbines around the world,

numerous in hybrid systems

Converters from NPS or MCM:

>500 installed by NPS and MCM, > 20 hybrid grid systems in Africa,

Alaska and others

Batteries from FIAMM:

100s of systems installed for all kinds

of applications

Variable Diesel GenSets from

Innovus Power: Track record in

fuel-saving hybrid and microgrid applications

Controls and Monitoring from MCM Elvi for smooth system integration proven in numerous projects

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Your Business Case Assessment

We would be interested in calculating the business case for your water treatment or desalination project when reducing power demand from the and/or Diesel consumption

To help you, we need the following information:1. GPS coordinates of the site for a first wind assessment using a global database of wind

speeds at any given height OR: Wind measurement data

2. Load profile (ideal: 15 minute values over the course of a complete year)

3. kWh price for power sourced from the grid (or e.g. provided via Diesel GenSets) and yearly increase expected over 20 years lifetime

4. kWh price for each kWh exported to the grid (if applicable) and yearly change expected over 20 years lifetime

5. Share of equity and debt, with expected interest % for each

6. Other public incentives

7. Profit tax for your project

8. Permitting restrictions (e.g. max. hub height or kW rating for avoiding costly or cumbersome applications incl. value of savings if hub height or kW rating are met)

Additional Information and Contact Details

For additional information on the products and services Northern Power Systems offers please visit: http://www.northernpower.com/

For specific inquiries contact: Gian Schelling – Business Development

Manager EMEA gschelling@northernpower.com +41 79 348 74 39

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