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EDP Renewables 2013 Annual Report

Business Model

EDPR’S GOAL IS TO BUILD THE SAFEST, MOST EFFICIENT AND COST COMPETITIVE PROJECTS.

Business-Model
WHICH FACTORS ARE RELEVANT WHEN CHOOSING A SITE?

To guarantee premium performance of its assets, EDPR carefully analyses the site in terms of the quality of renewable resources, topography, type of soil, and assesses the proximity to transmission lines in order to deliver electricity generated to the grid. The historical data of the renewable resource, such as wind direction, speed and density, and solar radiance, is critical to successfully develop a project.

HOW LONG DOES IT TAKE TO COLLECT THE DATA?

To capture and record the most accurate data, EDPR installs sensors and meteorological masts and uses internal models and software tools to analyse the data collected. The process of collecting and analysing data varies from project to project but usually takes about 2 years. The data will then be used to design the most efficient wind farm layout and choose the most suitable generator model.

IS WIND FARM LAYOUT CRITICAL FOR OPERATIONAL PERFORMANCE?

The wind farm layout is key to optimizing the energy that can be captured from the wind. To maximize the electricity that can be produced and maintain cost efficiency, EDPR’s energy assessment team designs the layout considering meteorological fundamentals, thermal and topographic effects and variations in wind due to turbine height.

HOW LONG DOES IT TAKE TO BUILD A WIND FARM?

The construction of a wind farm typically last from six months to one year, depending on the size of the project and soil conditions. The civil infrastructure of a wind farm includes the turbine foundation, permanent and temporary access roads, temporary crane walk paths, erection crane pads and improvements to public roads. Along with the civil infrastructure, medium voltage collection systems and the main transformer substation are also built in order to transfer the electricity from the wind farm to the grid.

WHAT IS CRUCIAL WHEN EVALUATING THE PROJECT AND FUNDING?

EDPR evaluates several risks, of which the most crucial are the financial, commercial and funding. To guarantee a stable cash flow stream, long term agreements are preferred, such as Power Purchase Agreements (PPAs). EDPR implemented a self-funding strategy to minimize exposure to fluctuations in capital markets and to continuously deliver new higher quality and value accretive projects.

WHAT IS EDPR’S APPROACH TO ON-GOING MAINTENANCE SERVICE?

Once wind farms are in operation, EDPR follows an operation and maintenance strategy (O&M) to assure high levels of availability and minimal amounts of failures. There are two key warranty periods, the initial warranty period and the post warranty period. Within each period, EDPR employs specific strategies. During the initial warranty period, EDPR closely and proactively supervises its assets. During the post warranty period, EDPR opts between a competitive tender for full scope agreements with subcontractors or internalizes high value added activities through our Modular Maintenance Model (M3).

HOW DOES EDPR GUARANTEE ENVIRONMENTAL SUSTAINABILITY IN ITS WIND FARMS?

EDPR projects are built with a culture of sustainability. During the development phase several studies are carried out to assess potential impacts. While the project is under construction, our team seeks to minimize environmental impact and will restore the land to its initial use once construction is completed. Finally, an Environmental Management System is implemented during the operations phase, which guarantees that procedures are environmentally responsible and allows EDPR to produce CO2 free electricity.