1. Permanent Magnet Direct Drive
(PM/DD) Technology
September 2011
p
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

2. Northern Power Systems Profile Today…
NPS is an advanced technology U.S. based wind turbine company specializing in
next generation Permanent Magnet Direct Drive (PM/DD) wind turbines
Private company with Lead Investors in USA and EU
Two separate businesses based on the same PM/DD technology: Distributed Wind and Utility Wind
Largest Distributed Wind company in the world
Over 300 NPS 100 kW (NPS 100) turbines ordered to-date with 130 turbines installed globally...
Highest availability in the distributed wind market – 800,000 run hours with 98% median availability to-date
to date
Largest installed base of integrated wind-diesel generation platforms in the world
New technology under development including 450 kW turbine and wind-diesel-battery integrated solutions
Utility Wind has world class expertise in large PM/DD wind turbine platforms
world-class
Introduced new NPS 2.3 MW (NPS 2.3) onshore wind turbine in 2011 with 93m and 100m rotors
− First two prototype turbines are installed in Michigan USA and are running with very high availability
− DNV type-certification process well underway ... expect DNV certification award in first quarter 2012
Developing larger, more cost effective PM/DD platforms for onshore and offshore applications
Locations in the United States and Europe
Offices: Barre, Vermont (HQ), Boston, Massachusetts (Corp) , and Zurich, Switzerland (Sales & Service)
Production facilities: Barre Vermont and Saginaw Michigan
Barre, Saginaw,
2
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

3. NPS Today – Distributed Wind and Utility Wind …
Distributed Wind Utility Wind
NPS 100 NPS 2.3
Launched in 2000, with PMDD in 2008 First prototype installed in December 2010
p yp
280 units, >$80M ordered since 2008 Extensively Tested at NREL
130 units in operation globally Launched in 2011
800,000 accumulated fleet hours Two prototypes flying in MI
98-99%
98 99% availability Strong Performance
Average $300,000 selling price Medium/Low Wind Variants
NPS 450 NPS 3.4 NPS 8.0
Platform extension under development with DOE grant Platform Extension Large Offshore
2012-13 prototype launch Existing 2.3 Technology New Technologies
Fast commercial ramp Fast Commercial Ramp Low Maintenance
Larger di t ib t d l d
L distributed loads EU and A i markets
d Asian k t Global Markets
Gl b l M k t
Next-generation PM/DD Technology
g gy
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

4. Permanent magnet/direct-drive (PM/DD) technology is
disruptive ….
NPS
PM/DD
PM/DD
Permanent Magnet Direct Drive
First-Gen
PM/DD • SAME weight as traditional
geared turbines
• Extremely reliable … low
ophistication
Original Direct-Drive downtime,
downtime low maintenance
Technology
Traditional Wound-Rotor Direct Drive • Cost similar to traditional
geared turbines
• 30% heavier than traditional
geared turbines
• Extremely reliable … low
T
So
downtime, low maintenance
• Command a 15-20%
price premium
Traditional Geared Turbines
“High-Speed”
“High Speed” Geared Drive
• 80-90% market-share
Value to
Customers
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

5. Northern Power Systems Technology Differentiation …
Traditional Geared Turbine
Complex, high-speed (1800 rpm) drivetrain
problematic:
5% Downtime
Gearbox replacements every 5 years
Efficiency losses due to gear friction & electrically-
powered magnetic field
Failures of large components require expensive
crane & significant downtime
NPS 2.3 PM/DD Turbine Simple, slow-speed (15-20 rpm) drivetrain extremely
reliable:
2% Downtime
No high-speed wear & tear, gearbox replacement
Very high-efficiency … no friction losses and p
y g y permanent
magnets supply magnetic field
Highly modular design allows up-tower swap-outs: no
crane & minimal downtime
Facilitates larger rotors
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

6. NPS PM/DD enables the Lowest Cost of Energy …
Better Energy Capture via Very Large Rotors
Simple load path
Simple powertrain dynamics and harmonics
Simple blade characterization and construction
High efficiency power train and nacelle layout gives
more power, especially at low wind speeds
y
High Reliability Translates to Lower Operating Costs and Risks
Low part count means fewer opportunities for failure
Highly modular design
Enables tight quality control in production
Up-tower swap-outs: No external crane & minimal downtime
No oil or fluids to leak or change
Liquid coo g a o s e pa ded environmental ope at g e
qu d cooling allows expanded e o e ta operating environment
o e t
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

7. Wind Farm Cash Flow Drivers – NPS value proposition ...
Power curve … energy
Turbine-specific Uptime% Costs required
production from a
key drivers (or ”availability”) to maintain
given wind speed
Power Curve
Maintenance
Wind Farm
= Power
(MW) X $/MW-Hr X Uptime - & Repair
Cash Flows
Costs
Wind Speed
Captures more energy
… more of the time
… at LOWER cost!
Price of
Site-specific Wind Speed electricity
key drivers
y generated
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

8. Utility Wind economics greatly improved with NPS 2.3 …
Same potential site … … but NPS delivers better economics
EXAMPLE Annual Cash Flow
• 80MW site ($/Year) $600k $11.0M
$100k
• Class II/III $300k
$10.1M
• PPA rate = $100/MW hr
$100/MW-hr
$1M/yr. higher
• Project const. costs = $40M cash flow!
• ITC/PTC incentives Traditional Better NPS
• Tax equity benefits Turbine Increased production Lower PMDD
uptime Maint. Turbine
•20-year investment life
Return on I
R t Investment (ROI) 22% b tt
t t (ROI): better
Net Present Value (NPV): $10M better
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.

9. NPS 2.3 Prototypes at Stoney Corners I wind farm …
©2009. Northern Power Systems. All Rights Reserved. Not to be used or shared without permission. Proprietary and Confidential.