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Wednesday, 08/30/2006 12:35:31 PM

Wednesday, August 30, 2006 12:35:31 PM

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WAITSFIELD, Vt., Aug. 30 /PRNewswire-FirstCall/ -- The U.S. Department of Energy (DOE) has awarded Northern Power, a subsidiary of Distributed Energy Systems Corp. (Nasdaq: DESC), a Phase 2 Small Business Innovation Research (SBIR) grant to continue development of key modular construction technologies necessary to build 5-megawatt to 8-megawatt wind turbines. In announcing the $750,000 award, Northern Power said the project builds on a Phase 1 SBIR design study recently completed by the company, which confirmed the viability of these enabling, modular construction approaches.

Wind power represents the fastest growing segment of the world's energy markets, and this rapid growth has led to a significant increase in the power rating and size of wind turbines. Large turbines currently being developed for on-shore and off-shore applications offer economies for utility-scale wind farms, further lowering the cost and environmental impact of creating significant sources of alternative energy.

With blade lengths of 60 meters or greater and tower heads often weighing more than 450 tons, shipping, installing and maintaining larger turbines is becoming a serious challenge.

Northern Power's Phase 2 contract with the DOE covers manufacturing details and assembly techniques for permanent magnet generators and power converters, in order to improve the viability of large-scale wind power both on and off shore. The project's emphasis on modular designs should permit easier subassembly transportation, less weight per component, partial power capabilities and more flexibility in providing on-site service.

"By providing solutions to the wind industry's current challenges, Northern Power hopes that large-scale wind turbines will make a more significant contribution to meeting America's growing energy needs," stated Peter Mattila, Business Development Manager of Northern Power. "The work we are undertaking will help the industry meet the American Wind Energy Association and DOE's recently announced goal of producing 20% of the country's electrical supply using wind energy."

Northern Power's president, Darren Jamison, agreed, stating: "Over the last several years, our wind experts have focused on developing large-scale, direct drive wind turbine generator and power converter systems to address the cost, utility interconnection and equipment implementation issues that are prominent in the multi-megawatt wind market today. We look forward to completing those development efforts and putting the fruits of those labors to work, helping to further the cause of technologically advanced, renewable wind energy solutions."



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