Increase your revenue. Revenue potential analysis - direct marketing on equal terms. Wind Systems A/S company

Transcription

1 A N A LY S I S Increase your revenue. Revenue potential analysis - direct marketing on equal terms. A Wind Systems A/S company

2 Customer & Availon Product expertise WindKeeper Basic WindKeeper Basic Modular Diagnosis, measurement, repair: Base frame / generator mount All-round yield optimisation cost reduction WindKeeper Complete Modular WindKeeper Complete Examination: Gearbox, drivetrain, foundation optimization of contracts Yield forecasts Requirements expertise Economic efficiency potentials through upgrades: Optimization (Yield) Revenue reports Revenue potential analyses Reduction (failure rate) Operations management Individual data and requirement analysis, customer-specific solutions Consulting expertise Management system certified by DNV GL according to ISO 9001 (quality management), ISO (environmental management) and BS (work safety management) at our locations in Rheine, Hamburg, Erfurt, Rome and Madrid Quality expertise Competence Center / engineering services (development of overlapping technologies) Technology expertise Maintenance and repair, 24/7 remote monitoring, spare parts management, rotor blade service, troubleshooting and fault analysis, technical support, examples of preventative maintenance measures Service expertise

3 03 Economic considerations pay off for you. Every wind project contains the potential for commercial optimization. However, your chances of profiting from this potential through direct marketing are often made complicated due to the complex system of remuneration involved. If an imbalance in accessibility to information exists between you and your direct marketers, we are there to help! Availon Energy Management has decades of experience in planning, financing and implementing entire wind farms. We will help you to identify previously hidden optimization potential in existing wind energy projects, and help to negotiate with direct marketers on an equal footing with the aim of obtaining the best possible terms. Solutions that have proved themselves many times over help to achieve this, including our own revenue potential analysis which we will now present to you here. Even with regard to funding or technical and commercial support, you can have full confidence in our expertise. The long-term profitability of your project is our priority. To achieve this, we support you not only through our revenue potential analysis but also with a financially appropriate range of services that we align to your individual needs. Let's look together and analyse which solutions are the best fit for you We look forward to working successfully with you!

4 04 We uncover your potential benefits. Our service In the context of direct marketing, we identify potential additional revenues from the power generated by wind turbines as part of a holistic approach to optimising revenues. Various factors affect the price that electricity can achieve on the stock market. An unscheduled production model can for example lead to electricity being produced during times when the spot market price is high. This methodology causes the average revenue to be higher for direct marketers than the reference market value 1. Usually, operators are only paid the reference market value less the direct marketing fee for the direct marketers, the sliding market premium via the transmission system operator. We present these and other value-creation effects in the revenue potential analysis. On request, we can create a precise revenue report documenting the exact value of the electricity produced by the plant. This creates transparency and enables operators to negotiate on equal terms with direct marketers in negotiations to obtain a better deal. Up to now it has not been customary in the industry for operators to benefit from stock-market based additional revenues through direct marketers. We uncover areas of potential, and find direct marketers who are willing to enable operators to benefit from them. In addition, our extensive market knowledge enables us to help operators to profit from additional revenues for which no potential is identified, by finding suitable direct marketers with attractive terms. Our services are available to operators at no extra cost and with no risk attached because we only get involved where additional revenues are realised. 1 average electricity price for one trading month on the EPEX Spot power spot market exchange

5 Power purchase revenue in sponsored direct marketing DM value to be applied Reference market value sliding-scale market premiums remuneration minus direct marketing fee value to be applied Reference market value sliding-scale market premiums potential additional revenue remuneration minus. direct marketing fee In sponsored direct marketing, the remuneration for operators is composed of the reference market value and the sliding-scale market premium. This market premium is calculated from the difference between the applicable value as stipulated in the EEG, [Act on the Development of Renewable Energy Sources] and the fluctuating monthly reference market value, thus ensuring fixed remuneration. From this remuneration, a direct marketing fee is usually deducted. The electricity traded on the stock exchange can, through various value creation effects, achieve a monthly average price that differs from the average monthly reference market value. The additional or reduced revenue resulting therefrom is not visible to the operator, and as a rule is retained by the direct marketer. There is an imbalance between the information available to the direct marketers and that available to the operators. For remote-controlled systems put into operation prior to EEG 2014, the value to be applied increases by EUR 4.00 per MWh above the management premium increases if operators voluntarily participate in direct marketing. Optimised: DM Operator Direct marketer value to be applied sliding-scale market premiums Reference market value remuneration minus direct marketing fee Involvement in increased stock market revenues Our goal is to provide equal access to information between operators and direct marketers, as well as to aid operators in benefiting from additional revenue. To this end, we identify the real market value of the power produced through a precise revenue assessment report. In addition we negotiate with direct marketers who are willing to enable operators to receive a share of additional revenues generated. We take into account the wishes of the operator and negotiate improved terms based on the revenue report. Additional revenue through optimized direct marketing terms and conditions More revenue can also be achieved through a change of the direct marketer and an associated reduction of pay. Due to our market knowledge, we identify direct marketers who are best suited to individual operators. Operators are offered a contract that is tailored to their requirements and which provides the optimum deal with regard to their individual wishes and the best-possible direct marketing fee.

6 06 The elements included in the revenue potential analysis. Identifying potential Report Report & Contract EPA Basic Firstly, we conduct a general analysis of wind energy projects with regard to their potential in terms of added revenue potential. EPA Plus A revenue report documents the market value of the electricity produced and any associated revenue potential. On this basis, operators can start negotiations with direct marketers to acquire improved terms and conditions. Contract Based on the potential determination (EPA Basic), we conduct negotiations with direct marketers for operators and provide them with a contract offer which is tailored to their needs and which produces additional revenues. EPA Pro We combine our services from EPA Plus: Operators receive a revenue report, we conduct negotiations with direct marketers and make a contract offer to the operators which is tailored to their needs and which produces additional revenues. At a glance. Our revenue potential analysis means that we address your needs systematically: As a wind farm operator, you get information on the potential revenues that your turbines can yield. This creates transparency with regard to direct marketers. By determining revenue potential, we develop strong arguments for negotiations with direct marketers. Improved general terms allow additional revenues during operation to be achieved. Banks receive an economic assessment tool for projects. By showing you potential revenue opportunities and risks tied to wind energy projects, we support you in making informed loan or financing-related decisions. For project developers, we establish the best wind turbine type for the planned location. In addition, we negotiate reliable marketing offers for these installations, thus ensuring planning security and enabling solid project financing. Our service We find the best direct marketer for you to implement your requests and requirements based on terms most beneficial to you. No risk We want to be measured by our success - so we only act where we see additional revenue as genuinely attainable.

7 07 Modern triple pack for first-class results. Availon has the know-how for technical maintenance and optimisation of wind farms. As a corporate subsidiary, at Availon Energy Management we focus on economic optimization and we complement the technical service solutions by providing a range of economically viable services. This includes concepts such as yield-optimized maintenance planning, professional contract management or support in technical and commercial management. Our goal is to ensure maximum and long-term profitability of existing and new wind projects through holistic revenue optimization: independent, innovative and on an equal footing! Service We firmly believe the following: Technical service and energy management ideally go hand in hand. In practice however, these two areas are often considered separately, which causes potential synergies to remain unexploited. We go one step further, in that our services link to, extend and enhance the service range of Availon Holding GmbH. For example, by linking up various optimization measures with the services of your O&M partner in the area of operational planning. Energy management Our energy management services have one goal: the all-round yield optimization of your wind project. Together with you we will reveal the individual areas of optimization potential and develop solutions for maximum profitability. Service AEM Energy management Management Management (technical / commercial) Our management concept is designed so that we can support your wind projects over the long term, sustainably and economically. We always have costs, revenues and the condition of your WEA in mind. In addition to needs-based, lean and consistent reporting, we work with you to develop optimal commercial processes and implement them. In addition, you benefit from our performance-oriented remuneration system.

8 At home anywhere in the world. Outstanding service knows no boundaries. Our comprehensive service offers attest to that. That s why we are on hand to provide you with our service offers in more and more countries all over the world. Service solutions Energy management Material testing Find out more at Headquarters: +49 (0) aem@availon.eu Availon Energy Management GmbH Daimlerstraße Rheine Germany Wind Systems A/S company 08/2016 A