Analysis of steel plate consumption, steel grades and sizes range for wind power tower production in Europe and Ukraine. Onshore and offshore towers steel intensity difference. Steel plate supply chain flow chart. Analysis is actual for 2012-2013.

1. European and Ukraine wind power industry for heavy plate
producers
2012

2. 0 0 1 1 2 4 6 10 14 19
13 19 28 38 44 52 61
71
82
94
48 57
65
76
86
96
107
119
132
146
11
16
24
40
61
84
108
133
159
185
0
50
100
150
200
250
300
350
400
450
500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Азия
Европа
С.Америка
Л.Америка
БВиА
Тихо-кий регион
Global wind power capacity growth has exceeded 25% p.a. over the last five years.
Ukraine has considerable potential in this industry
 Global wind power capacity has grown 27% p.a. in
the last five years.
 As of 2011, 40% of global wind power capacity
was located in Europe.
 Growth in global wind power capacity will slow to
2015, according to forecasts, but remain at high a
high 18% CAGR (2011-2015).
Installed wind power capacity in Europe, 2010, MW
Source: GWEC Global Wind Report. Annual market update: 2010
 Ukraine’s wind power capacity increased by 83
MW in 2011, doubling in size.
 Ukraine has considerable potential for developing
wind power capacity compared to Europe.
 Europe’s wind power leaders are Germany (27
GW installed capacity) and Spain (21 GW installed
capacity)
1500 МW*
* Average weighted installed capacity of the wind power industry in a European country (net of Germany and Spain)
CAGR
2006-2011
51%
15%
32%
52%
39%
26%
27%
CAGR
2011-2015
22%
11%
16%
53%
41%
24%
18%
16 times less
than the
European
average*
Global wind power capacity growth, GW
Pacific region
Asia
Europe
N.America
L.America
MEaA

3. It takes 200 tons of plates to produce 2 MW onshore turbine tower and over 400 tons of
plates to make a 3 MW offshore turbine tower
Turbine
structural
elements
Materials / accessories
Steel consumption per 1 MW of
turbine capacity, ton/МW
Plate consumption per 1 MW of
turbine capacity, ton/МW
Onshore
turbine
Offshore turbine Onshore turbine Offshore turbine
blades Fiberglass on an epoxy base no no no no
nacelle Iron castings, forged parts,
alloyed steel / Casing,
drive, gearbox, generator,
control electronics
~ 30 ~50 no no
tower Steel plate, steel flanges,
ladders, handrails, door
openings
~150 100-200 ~ 100 140
foundation Concrete, rebar 15-40 180-500 no NA
Total 195-220 330-750
Source: WSA Steel Wind Energy Report 2011, ЕWЕА installation forecast until 2020 (July 2011), Specifications for Vestas, Siemens, and Furlander turbine towers
Average capacity of turbines installed in Europe, MW
foundation
tower
nacelle
blades
rotor
hub
rotor
Offshore turbine
Onshore turbine

4. Key trends in the wind power sector: increase in turbine size and capacity and rise in the
share of offshore turbines, will drive plate consumption
Source: WSA Steel Wind Energy Report 2011, ЕWЕА installation forecast to 2020 (July 2011)
Evolution of capacity, rotor diameter and turbine height
 Currently Enercon, Siemens, Repower, Gamesa,
and GE Wind already manufacture turbines with up
to 7.5 MW capacity and rotor diameters of 120-150
meters commercially.
 The companies Vestas, Sway, and Windtec are
developing offshore turbines of 10 MW capacity
with rotor diameters of 160-190 meters to be
manufactured by 2014.
 Due to the large capacity and massive design of offshore turbines, it takes
2-2.5 times more plates to manufacture towers for them.
 Advantages of offshore turbine location:
- higher and more constant wind speed that provides for 20-40%
improvement in wind utilization compared to onshore turbines
- no need to occupy space onshore
 Disadvantages of offshore turbine location:
- installation costs are 30-50% higher than for onshore turbines
Growth in offshore wind power capacity in Europe
Trends in turbine construction
Offshore turbines

5. 0,3 0,0 0,1 0,6 0,7
1,7 2,5 3,5 4,5 5,0
3,2 5,6
8,9
10,8
5,8
8,0 9,0
10,0
11,0
12,0
7,6
8,6
8,5
10,7
9,7
10,6
11,0
12,0
13,0
14,0
3,6
5,2
8,4
15,5
21,4
22,6
24,0
25,0
26,0
26,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Азия
Европа
С.Америка
Л.Америка
БВиА
Тихо-кий регион
Steel plate consumption by the wind power sector will total 3.8 million tons in 2011,
and is expected to rise to 5.1 million tons by 2015
Installation of new wind power capacity, GW
 The installation of wind power capacity
worldwide rose at a 24% CAGR in 2006-2011.
 Slowed growth in the installation of wind power
capacity is forecasted for all regions of the
world up to 8%, except for in the mature
European market.
Source: GWEC Global Wind Report. Annual market update 2010
 Europe will increase consumption of plates for
the wind power sector from 0.9 million tons to
1.2 million tons by 2015.
 Asia is the world’s largest plate consumer for
the wind power sector, with 95% of
consumption, mostly from China and India.
45%
7%
20%
42%
50%
45%
24%
4%
7%
11%
31%
24%
20%
8%
Plate consumption by the wind power sector
Wind power capacity
0,0 0,0 0,0 0,0 0,1
0,1 0,2 0,3 0,4 0,4
0,3 0,5
0,8
0,9
0,5
0,7 0,8
0,9
0,9
1,0
0,6
0,7
0,7
0,9
0,8
0,9
0,9
1,0
1,1
1,2
0,3
0,4
0,7
1,3
1,8
1,9
2,0
2,1
2,2
2,2
0,0
1,0
2,0
3,0
4,0
5,0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Азия
Европа
С.Америка
Л.Америка
БВиА
Тихо-кий регион
Plate consumption by the global wind power industry, million tons
CAGR
2006-2011
CAGR
2011-2015
Pacific region
Asia
Europe
N.America
L.America
MEaA
Pacific region
Asia
Europe
N.America
L.America
MEaA

6. Over 50% of the world’s manufacturing facilities for wind power equipment are located in
Europe
Global market share of key manufacturers of wind power
equipment in 2008
 The world’s top-5 wind power equipment
manufacturers cover 62% of the market; three of the
top-5 are located in Europe.
 The global leader is Vestas, which has benefited from
state support and the development of its
manufacturing process for wind power equipment in
the 70s.
Source: WSA Steel Wind Energy Report 2011
Distribution of wind power equipment manufacturers
by regions
Vestas (Denmark);
17,8%
GE (USA); 16,7%
Gamesa (Spain);
10,8%
Enercon (Germany);
9,0%
Suzlon (India); 8,1%
Siemens (Germany);
6,2%
Sinovel (China);
4,5%
Acciona (Spain);
4,1%
Goldwind (China);
3,6%
Nordex (Germany);
3,4%
Dongfang (China);
3,4%
REpower (Germany);
3,0%
Mitsubishi (Japan);
2,6%
Other; 6,8%
Europe;
54,3%
Asia; 22,2%
USA; 16,7%
Other; 6,8%

7. Ukraine has some of the most attractive conditions for the development of the wind power
sector in Europe
Source: law of Ukraine on Power Sector
х Commencement of the green tariff
х Localization of a minimum of 15%
х Localization of a minimum of 30%
х Localization of a minimum of 50%
х Green tariff reduction for newly commissioned WPPs by 10%
х Green tariff reduction for newly commissioned WPPs by 20%
х Green tariff reduction for newly commissioned WPPs by 30%
х Termination of the green tariff
2010 2012 2013 2014 2015 2020 2025 2030
Regulatory restrictions for Ukraine’s green tariff
 Ukraine has one of the highest green tariffs for electricity from wind
power stations in Europe; it will be effective through 2029
 One of the conditions for the green tariff is the gradual localization
of individual part manufacturing for wind turbine installations in
Ukraine. Nevertheless, existing legislation does not require the
localization of manufacturing to obtain the green tariff for all
projects that start construction before the end of 2012
 Largest cost components of wind power plants: steel tower (24%),
blades (18%) and site infrastructure (13%)
 The most expedient option is to localize the manufacturing of
towers before 2012, which together with the cost of site
infrastructure would total about 37% of the total to construct a wind
power plant.
16.6
24%
18%
11%4%
3%
2%
20%
3%
3%
13%
Башня
Лопасти
Редуктор
Инвертор
Трансформатор
Генератор
Прочее
Девелопмент
Подстанция
ЛЭП, дороги,
фундаменты
Localization
potential is 55%
Tariffs for wind energy in Europe, €c/KWh
Tower
Blades
Gearbox
Inverter
Transformer
Alternator
Other
Development
Substation
Infrastructure,
foundations
Source:

8. Ukraine’s wind power sector might consume 230,000 tons of plates to build turbine towers by 2016
 Today Ukraine has 57 WPP projects with a total
capacity of 9,200 МW, 12 of which, with a capacity
of 2,300 МW, will be implemented by 2015
according to their current stage of development
 Since Ukraine will manufacture 35 turbine towers in
2012 (made by KZTS), the potential volume of Ukrainian
plate consumption by the wind power sector will be
limited to 9,000 tons in 2012
 Over 30,000 tons of plates will be imported into Ukraine
in 2012 in the form of finished tower segments
 25,000 tons of plates will be imported into Ukraine In
2013 in the form of finished tower segments
 6,000 tons of rebar will be used to make turbine
foundations every year8 000
43 000
70 000
75 000
47 000
2011 2012 2013 2014 2015
87 170
580
1 272
2 002
2 452
0 83
410
693 730
450
0
500
1000
1500
2000
2500
3000
2010 2011 2012 2013 2014 2015
Накопленные мощности
Прирост мощностей
Source: technical specifications for turbine towers
maximum tower
manufacturing capacity in
Ukraine
Plate consumption forecast by the Ukrainian wind power sector, tons
Forecast of wind power capacity in Ukraine, MW
Capacity growth
Accumulated capacities

9. Europe’s wind power sector will consume about 1 million tons of plates p.a. to build turbine towers
48,2
56,8
65,3
76,0
85,7
96,3
107,3
119,3
132,3
146,3
7,6 8,6 8,5 10,7 9,7 10,6 11,0 12,0 13,0 14,0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Накопленные
мощности
Новые мощности
0,64
0,73 0,72
0,91
0,83
0,90 0,94
1,02
1,11
1,19
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Vestas;
0,23
Siemens;
0,12
Gamesa;
0,08
Other;
0,46
Plate consumption by the top-3 turbine
manufacturers in 2011, million tons
Forecast of plates consumption by the European wind power sector, mln. t
Forecast of wind power capacity in Europe, GW
Capacity growth
Accumulated capacities

10. A plate product range was outlined to manufacture onshore towers, based on the
specifications of three turbine manufacturers (Vestas, Siemens, and Fuhrlander)
Source: Specifications for Vestas 3 МW, Siemens 2.3 МW and Fuhrländer 2.5 МW
turbine towers
4%
15%
14%
33%
34%
<= 10
>10-11
>11-12
>12-13
>13-14
 67% of plates necessary for turbine tower manufacturing are 12-14 meters long
 86% of plates required are 2.5-3.0 meters wide
 The share of plates over 50 millimetres thick is 5.5%
3%
11%
86%
<=2
>2-2,5
>2,5-3
23%
31%
27%
13%
5%
0,5%
<=20
>20-30
>30-40
>40-50
>50-60
>60-70
>70
Length ranges, m
Width ranges, m
Thickness ranges, mm
50%
14%
13%
13%
5%
5% S355 J2+N
S355 J0+N
S355 K2+N
S355 NL
S235 JR+N
S355 N
 50% of S355 grade plates in normal
condition meet the requirements to
withstand impacts at -20’С
Breakdown of steel plate grades in tower construction
* Plate volume based on specifications to make a Fuhrlander 2.5 МW turbine tower – 260 tons
Breakdown of plate lengths in tower construction
Breakdown of plate widths in tower construction
Breakdown of plate thickness in tower construction

11. A plate product range for Vestas 3МW offshore turbine towers was also analysed
Source: Specifications for Vestas 3 МW, Siemens 2.3 МW and Fuhrländer 2.5 МW
turbine towers;
 80% of plates necessary for offshore turbine tower manufacturing are 12-14 meters long
 73% of plates required are 2.5-3.0 meters wide
 Plates account for 26% of material used to make offshore turbine towers
Breakdown of plate lengths in tower construction
Length ranges, m
Breakdown of plate widths in tower construction
Width ranges, m
Breakdown of plate thickness in tower construction
Thickness ranges, mm
Breakdown of steel plate grades in tower construction
39;
9% 47;
11%
90; 22%241; 58%
>10-11
>11-12
>12-13
>13-14
36; 9%
76; 18%
306; 73%
<=2
>2-2,5
>2,5-3
58; 14%
102; 24%
77; 18%
75; 18%
62; 15%
44;
11%
<=20
>20-30
>30-40
>40-50
>50-60
>60-70
143; 34%
275; 66%
S355 J2+N
S355 J0+N
* Volume of plates required to make an offshore turbine tower – 418 tons

12. Turbine manufacturers always controls plate prices if a tower is manufactured by a
contractor
WPP equipment
manufacturer
Global
market
share
Internal
capacity for
tower
production
Manufacture
towers with
contractors
Purchase
plates for
contractors
Control of the
price of plates
purchased by
contractors
Plate supplier
certification by WPP
equipment
manufacturer
Required period
for plate
shipments from
the plant
Standard order
size
Vestas 18% 1 week*
8 towers
(2,000 tons)
Gamesa 11% ? ?
Siemens 6% 3-6 weeks*
22 towers
(5,500 tons)
Acciona 4% ? ?
 Turbine manufacturers produce towers both at their own and at contracted facilities.
A combination of both approaches is also used
* See the next slide

13. Requirements of turbine manufacturers with regard to deadlines for tower manufacturing
and plate part supplies
Siemens’ requirements for plate deliveries for towers
3-6 weeks – production and shipment of plates
from plate producer facilities, after order
placement
11-13 weeks – supply of finished plate parts to
DAF, Europe
4 weeks – transhipment of parts in the
Ukrainian port, carriage by sea to Europe
3 weeks – manufacture parts from plates at
contractor facilities
1 week - plate transportation from plate
producer to tower part manufacturer,
unloading and acceptance
Vestas deadlines for tower delivery
1 week – production and shipment of plates
from plate producer facilities, after order
placement
9 weeks – delivery of the finished tower
7 weeks total – supply finished plate parts to
DAF Herning (Denmark)
4 weeks – transhipment of parts in the
Ukrainian port, carriage by sea to Denmark and
transportation to Herning
1 week – manufacture parts from plates at
contractor facilities
1 week – plate transportation from plate
producer to tower part manufacturer,
unloading and acceptance