The document discusses the challenges facing the wind energy industry and proposes a solution called "Renewable Plus" that combines wind, solar, fossil fuels, and storage into an optimized portfolio. It aims to create a reliable and low-cost renewable energy product similar to traditional generation that can be provided by a consortium. Key advantages include lower costs, higher value for customers, and increased competitiveness compared to independent renewable projects.

1. “Renewable Plus” Presentation
February 2011
Eamonn McCormick – CEO
Eamonn@TriModalEnergy.Com
310-382-0453
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2. Company Background
• Created in 2010 by long time energy professionals
• Backed by Norwegian investors
• Focused on planning and optimization of “Wind/Solar/fossil” generation
portfolios
• Goal is to assist “industry consortiums” to deliver “Firm/Shapable
Renewable Energy Product” we call “Renewable Plus”
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3. Current Environment is Challenging
1. Recession:
A significant drop in energy growth in all regions and indeed in areas like Phoenix
demand has dropped vis a vis 2006 levels.
Impacted the wind industry growth for the first time since the early 2000's. Indeed
number of MWs this year is estimated to be 40% down on last year.
Sluggish recovery means more focus on optimization of existing assets, replacement
of existing plants, reducing costs of renewable and planning for the mid to long
term rather than shorter term traditional wind projects
2. Regulatory situation has not developed at the Federal level slowing growth further
National RPS
Federal GHG standards
Little regulatory stimulus to the market.
3. The industry is stretched by credit crises and other initiatives such as smart grid.
4. There is a significant overhang of renewable projects from 2008/2009 that is depressing
interest in new projects
5. Many states are facing increased technical challenges integrating higher percentages of
wind.
6. Large European players like Acciona retrenching as they are impacted by fall in Euro
and financial crisis at home
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4. Implications
• The implication is that buyers and investors are reluctant to invest or sign
PPAs for high cost traditional wind farms and are in a “wait and see” attitude
• Game is changing due to a need to address
– Long term cost & demand implications of sluggish recovery
– “Interstate” transmission projects and which are likely to evolve
– Changing technology
– “Renewables integration” with existing infrastructure
– Need to address “Reliability” as renewables increase as % of the
generation capacity
• What we have determined is that the industry requires a new approach that
will provide strategic advantage over competitors both in the short, medium
and longer term.
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5. Questions?
It is clear that the current US wind industry is locked into a high cost
business model. The key to future success is determined by:
1. How can we lower cost of wind and solar?
2. How can we add more value to wind and solar?
3. How can we reduce wind integration costs and reliability issues?
4. How can we optimize existing fossil generation portfolio?
5. How can we combine wind/solar/fossil to create a new highly competitive
product that is more akin to traditional fossil generation?
6. How can we create an optimized business model for generators that attracts
strategic customers?
7. How can this generation model be used to attract strategic transmission
partners?
8. What kind of new “renewable plus” generation entity is required?
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6. Typical Daily Demand Profile versus
Wind Generation Profile in ERCOT
Demand Profile
Vs
Wind Generation
Typical 24 Hours
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7. How can we combine wind/solar/fossil to create a new
highly competitive product that is more akin to traditional
fossil generation?
RENEWABLE
PLUS?
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8. The Renewable Plus Consortium Example
Utility Customer
Firm/Shapable Renewable Energy Product
Renewable
Plus
Gen Co.
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Wind Solar Fossil& Nuclear Storage

9. Renewable Plus Product
WIND
Low Cost
Gas Plant Configured to Demand
Fossil Coal Plant
Co-
& Nuclear Optim
ized
Environment &
Storage
Regulation Friendly
Nuclear
SOLAR Reliable
CSP
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Photo Voltaic
Low Risk

10. Wind, Gas, Solar, Storage not sufficient
for true co-optimization
• Co-Optimize
– New Components
• Wind
• Solar
• Gas
• Storage
• AND
– Existing plants
• Fossil
• Nuclear
• Gas
• AND
– Transmission (Interstate Highways and Local Byways)
• AND CONSIDER
– Need to blend energy sources
– Configure to customer needs
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10

11. Example of a Simple “Renewable Plus”
Generation Plant (Wind, Gas, Storage)
1. Wind farm generates electricity
2. Off peak energy stored as
compressed air
3. Compressed air released during
on-peak hours
4. Compressed air energy
converted to electricity and
blended with electricity
generated from gas
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11

12. Renewable Plus Generation Consortium
– Back to an old approach to generation
• Assuming it is possible via the “Renewable Plus” approach to
combine “renewables and traditional generation” to create a
“renewable plus plant” that operates at low cost like a
traditional “dispatchable plant”
• Then:
– We can use the proven utility model of utilities forming consortiums to build
major “dispatchable plants”
– Similar approach to proven Nuclear and Coal Plant model (like Palo Verde)
where “consortium” owns and operates the plant based on their aggregated
needs
– No longer makes sense for independent small scale renewables as plant
needs to be engineered to exact “consortium” specifications
– Approach can be used to plan for retirement of large old coal based generation
while minimizing cost, increasing “green” energy and optimizing gas and
nuclear assets
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13. Advantages of “Renewable Plus” Product
• Higher value to customer
– Lower reserve margin costs
– Lower transmission costs
– Lower ancillary services costs
– Lower wind integration costs
– Lower integrated energy costs
– Lower risk
• Both the “renewable plus” optimization achieves higher PPAs
• Higher probability to get transmission capacity faster
• Increases value of wind projects and gas/CAES plant
• Improves wind sales by bundling with value added services
• Attracts additional buyers
• Most attractive to utilities rather than pure retail energy providers (REPS)
• Results in market dominance
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14. Optimization
The optimization uses a multi-year mixed integer
programming algorithm to minimize costs over the planning
horizon, subject to customer demand, security and other
constraints, and customer ancillary service procurement
requirements.
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15. Renewable Plus Planning Process
Conceptual
Modeling
Spreadsheet
Increasing
Model
Complexity
Logical
Modeling
Linear
Program
Physical Modeling
Cloud
Computing
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16. Summary
• Configurable “Renewable Plus” product is the key to the next generation of
renewable generators
• Initial market feedback is very positive from potential partners
• Renewable Plus business model will be anchored by Consortium Lead
• Powerful customer led consortiums will ensure Consortium Lead have the
correct US partners in order to succeed and gain market dominance
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