Whitehorse, March 18, 2013 Sonny Banjac Manager, Northern Projects - PowerPoint PPT Presentation

Yukon Energy Corporation: Wind Workshop Wind Energy Development and Integration in the Yukon Whitehorse, March 18, 2013 Sonny Banjac Manager, Northern Projects

Overview 1. Intro to Sea Breeze Power Corp. & the Cape Scott Wind Farm 2. Steps of Wind Power Development

Company Overview: Sea Breeze Power Corp. • Developer of renewable energy and transmission projects, mostly in BC and pacific US • Office in Vancouver, ~20 employees • Publicly traded company on TSX.V • Developed first wind farm on the BC coast at Cape Scott (99MW)

Status of Global Wind Power Installation http://www.gwec.net/fileadmin/documents/NewsDocuments/Annual_report_2011_lowres.pdf

Wind Power in Canada http://www.canwea.ca/farms/wind-farms_e.php

• 55 Vestas V100 1.8MW wind turbines • 99 MW capacity (electricity for 100,000 people) • 80m hub height, 50m blades. • Sold to IPR-GDF-Suez • Currently under construction • COD in Summer 2015 • 300 person yrs of employment during construction • Similar amount spread over 20 yrs of operations.

Wind Development: Starting Point • A hunch, desktop scouting • Desktop data review • Site visit • Obtaining land rights

Target End Point • A project that can be financed and built • Wind resource well mapped • Costs and risks well established • Absence of critical flaws – no surprises! • Relationships

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility 4. Marketing-Financing 5. Detailed design & permitting 6. Construction 7. Operation 8. Decommissioning

Steps in the Development Process 1. Site identification & land rights • Increasing confidence = decreasing risk 2. Pre-feasibility • Increasing external 3. Feasibility support 4. Marketing-Financing • Increasing cost 5. Detailed design & permitting • Increasing value 6. Construction • Prioritization & 7. Operation Go / No-Go 8. Decommissioning

http://www.al.gov.bc.ca/clad/IPP_guidebook.pdf

Steps in the Development Process DESKTOP : 1. Site identification • Expected wind resource & land rights • Ease of access • Transmission 2. Pre-feasibility • Synergies 3. Feasibility • Market opportunities 4. Marketing-Financing • Environmental setting • Land status 5. Detailed design • First Nations & permitting • Community support 6. Construction SITE VISIT: • Locations for met towers 7. Operation • Environmental screening 8. Decommissioning • Engineering screening

Steps in the Development Process 1. Site identification 1 st meteorological tower • & land rights • Wind speed analysis over 2. Pre-feasibility 12 months 3. Feasibility 4. Marketing-Financing 5. Detailed design & permitting 6. Construction 7. Operation 8. Decommissioning

Met Tower Installation Courtesey of Sea Breeze Power Corp. http://www.wagonerwind.com/images/60-meter-met-tower-mast-and-vanes.jpg

Steps in the Development Process • Additional met towers 1. Site identification • Turbine suitability • Geotechnical studies & land rights • Optimal capacity (transmission 2. Pre-feasibility constrains) 3. Feasibility • Layout Optimization Energy production estimate 4. Marketing-Financing • Preliminary BOP studies 5. Detailed design • Financial modeling & permitting • Negotiations with turbine suppliers 6. Construction • Targeted environmental 7. Operation studies 8. Decommissioning • Consultation

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility • Business model 4. Marketing-Financing • Negotiation with a financial 5. Detailed design partner & permitting • Buyer (e.g. Electricity Purchase Agreement from 6. Construction Yukon Energy) 7. Operation • Green attributes 8. Decommissioning

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility 4. Marketing-Financing • Environmental assessment • Detailed engineering 5. Detailed design • Interconnection studies & permitting • Financial close 6. Construction • Construction permits 7. Operation • Contracting & supply 8. Decommissioning

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility 4. Marketing-Financing • Site preparation 5. Detailed design • Transportation & permitting • Construction: Roads, 6. Construction foundations, electrical, turbine installation 7. Operation • Commissioning 8. Decommissioning • Environmental monitoring

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility 4. Marketing-Financing 5. Detailed design & permitting • Plant operation 6. Construction • Wind forecasting • Scheduled & Unscheduled 7. Operation Maintenance 8. Decommissioning • Environmental monitoring

Steps in the Development Process 1. Site identification & land rights 2. Pre-feasibility 3. Feasibility 4. Marketing-Financing 5. Detailed design & permitting 6. Construction 7. Operation • Environmental remediation • Residual value of assets? 8. Decommissioning