SED MASE RWEI

Vision and Mission : 

Vision and Mission Mission To maintain an employee–owned and driven organization that leads the market for community based wind power in the Eastern, US, providing low cost, fixed price green electricity to end users and communities. Vision To be the preeminent developer of community wind power in the Eastern US. is an Ontario, NY based community wind project developer, currently working with state agencies, municipalities, businesses, schools, farms and homeowners. SED in conjunction with its partners has full engineering, procurement and construction capabilities. Investor Plan March 2008

The Market:SED is delivering Community Scale Wind Projects across the NE US : 

The Market:SED is delivering Community Scale Wind Projects across the NE US

Market Drivers:Community Wind Energy Is Cost Competitive : 

Market Drivers:Community Wind Energy Is Cost Competitive

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Market Drivers: SED is leading the way in MA Other States are Following!

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Electricity Prices Are Rising:

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The Southeast is Behind:

Project EconomicsUn-incentivized Market : 

Project EconomicsUn-incentivized Market Total Installed Cost for the project will be $70,500, $550,000, $1,800,000, and $4,250,000 respectively Site wind speeds estimated to be 6.25m/s at 50m No state-level incentives are included Unleveraged financing The cost for electricity is 0.11 $/ kWh not including any demand charges this value will inflate with CPI at 3% The project will receive value for the creation of Renewable Energy Credits at $0.0175/kWh for a period of twenty years Insurance, operations and maintenance costs are included

Project EconomicsIncentivized Market : 

Project EconomicsIncentivized Market Total Installed Cost for the project will be $70,500, $550,000, $1,800,000, and $4,250,000 respectively Site wind speeds estimated to be 6.25m/s at 50m Maximum state-level incentives are included Unleveraged financing The cost for electricity is 0.11 $/ kWh not including any demand charges this value will inflate with CPI at 3% The project will receive value for the creation of Renewable Energy Credits at $0.0175/kWh for a period of twenty years Insurance, operations and maintenance costs are included

Wind Power Development Process : 

Wind Power Development Process Investor Plan March 2008 Feasibility Study, Technical Assessment, 35% Design Includes Tasks such as Wind Resource Assessment, Siting/Turbine Selection, Electricity Value, Electrical System Impact, Permitting Assessment, Permitting Toolbox, Buildability, Costs, Budgets, Schedules, Economics Analysis, Financing Options. Critical to get answers – should get the where, what, when, how, how much, when does it pay for itself etc answered. Project Design Tasks Include – Detailed Design, Interconnection, procurement, financing, permitting Project Is Ready for Construction Construction Build it, interconnect it, turn it on, commission it, break it in Operations and Maintenance Make sure it runs for 20 years.

Capital Incentives in MA : 

Capital Incentives in MA Investor Plan March 2008 Feasibility Studies Design and Construction

On-Site Wind Projects Necessary State Level Policies : 

On-Site Wind Projects Necessary State Level Policies Net Metering Standard Interconnection Fair Environmental Rules REC Tracking and Trading Capital Incentives

On-Site Wind Projects Development Challenges : 

On-Site Wind Projects Development Challenges Wind Resource Assessment Designing a more modestly priced WRA that meets needs of turbine vendors, financiers, owners and provides reasonably low uncertainty Permitting Ensuring statewide, development rules or environmental procedures do not unnecessarily include CW Design Replicating design in order to save cost Financing Tax, Equity, Debt partners for investment size Interconnection Dealing with non UL 1741 inverters. Utilities are slow! Construction Wind Power Fear – removing it from contractors Establishing the right team Operation and Maintenance Cost effectiveness? Response Time?

Jiminy Peak Case Study : 

Jiminy Peak Case Study SED’s Role: Project Management Technology: GE 1.5MW SLE Completion: August 2007 First Year Savings: ~$700,000 Marketing Value: The completion of the Jiminy Peak wind project has propelled SED to the market lead in MA. Local, State and National press on the project have bolstered SED’s reputation across the region. Attracting New Clients: SED has contracted one new project per month since the completion of Jiminy Peak.

Holy Name Central Catholic : 

Holy Name Central Catholic SED’s Role: Project Management Technology: Vestas RRB PS 600kW Completion: October 2008 First Year Savings: ~$190,000 Marketing Value: The completion of the First Wind Turbine to power a High School in MA Project is Unique Because: With Net Metering in MA, this project provides 100%+ of the electricity to the school . Attracting New Clients: SED has contracted 5 new religious institutions as a result of the relationship established with the Diocese of Worcester

Williams Stone Company : 

Williams Stone Company SED’s Role: Project Management Technology: Vestas RRB PS 600kW Completion: May 2009 First Year Savings: ~$200,000 Marketing Value: The completion of the First Wind Turbine to power heavy industrial plant in MA Project is Unique Because: With Net Metering in MA, this project provides 100%+ of the electricity to the business and the excess is delivered to the local church. Attracting New Clients: SED is now working with several other industrial facilities

Hyannis Country Garden : 

Hyannis Country Garden SED’s Role: Project Management Technology: Northwind 100kW Completion: December 2008 First Year Savings: ~$40,000 Marketing Value: First Northwind 100kW in the Lower 48 States Attracting New Clients: Perfect product for small business, municipalities, water/wastewater facilities, small schools etc.

City of Medford : 

City of Medford SED’s Role: Project Management Technology: Northwind 100kW Completion: January 2008 First Year Savings: ~$25,000 Marketing Value: First Public School in MA with a wind turbine. Reduces School load by 10-15%. Introduces community to wind turbine technology. Attracting New Clients: Perfect product for small business, municipalities, water/wastewater facilities, small schools etc.

Community WindTo Grid Business Models : 

Community WindTo Grid Business Models Public Ownership – Ownership by a public entity such as a town, county, municipal electric utility or cooperative Local Ownership – ownership by a group of local entities including, individuals, businesses, land owner groups etc. Third Party Ownership – ownership by a third party developer with primary economic benefit retained locally Flip Model – similar to third party ownership where the ultimate ownership of the project returns to a local group(public or otherwise) at some point during the life of the project

Community WindTo Grid Development Challenges : 

Community WindTo Grid Development Challenges Same issues apply as they do for on-site model Establishing a development entity – Who pays for Design, Development, Interconnection etc. Repaying development costs – how are the up front risk takers compensated through project life Maximizing local economic benefits – Independent of Ownership Model how are the profits distributed to the broader community Funding and Financing – government and institutional support can be more difficult to find for new business models

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The Albany County Example SED’s Role: Project Management Current Progress: Established feasibility and ownership entity for a 4.5MW Wind Farm in Knox, NY Marketing Value: Business prospectus created is a marketing tool for similar communities and to establish state incentives for small wind farm development. RBEG grant received for continued Development Market Growth: 450 of similar projects in the Northeast over the coming 5 years.

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Fox Island Wind, LLC SED’s Role: Wind Resource Assessment, Engineering oversight Current Progress: Construction Complete Marketing Value: First commercial scale wind project on a North Atlantic Island, use of RUS funds, USDA funds, and private equity all in conjunction. Market Growth: Atlantic Islands are an Ideal place for community wind with 30 or more potential locations North of Long Island, NY.

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SED’s Projects:

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SED’s Projects:

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SED’s Projects:

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SED’s Technology Partners:

Thank you For Your Time and Consideration : 

Investor Plan March 2008 Thank you For Your Time and Consideration Please Visit us on the Web at: www.sed-net.com Kevin M. Schulte Chief Executive Officer Founder and Owner