E.ON Climate & Renewables Our Wind Energy Business

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1 E.ON Climate & Renewables Our Wind Energy Business 1

2 2 E.ON is a leading investor-owned energy solutions provider with annual sales of billion and more than 62,000 employees. Backed by world-class technical expertise, commercial skills and a strong commitment to our customers, we continuously strive to make energy cleaner and better wherever we operate. Our diversified business consists of renewables, conventional and decentralized power generation, natural gas, commodity trading, distribution and retail.

3 5 We are a global wind energy business In the area of renewables, E.ON develops, constructs and operates large-scale wind, solar photovoltaic and concentrated solar power assets. Wind energy is a key area of our renewables growth strategy and covers both onshore and offshore wind. We focus on building industrial-scale projects and are committed to making further large-scale investments to expand our onshore and offshore footprint. At the same time, we are pursuing demanding cost reduction targets to make wind energy ever more competitive and affordable, and to increase the energy yield. Our current footprint can be found in Europe and North America and comprises 4.8 GW of renewable capacity, including one of the world s largest onshore wind parks in Roscoe, Texas (782 MW). With partners DONG Energy and Masdar, we operate London Array off the coast of Kent, the world s largest offshore wind park.

4 Wind energy at E.ON Facts and figures Our first onshore wind farm was built in Since then we have grown continuously and have become the world s eighth largest operator of onshore and the third largest operator of offshore wind farms. We currently own a portfolio of more than 4.6 GW wind assets on- and offshore across Europe and in the US. Wind onshore Installed capacity: 3,985 MW (global no. 8 player), with about 60% in the US and 40% in Europe Major operational projects: Roscoe (782 MW) one of the world s largest onshore wind farms, Panther Creek (458 MW), Magic Valley (203 MW), Wildcat (203 MW), all in the US Key projects to be constructed: Grandview (211 MW, US)

5 Wind offshore Installed capacity: 656 MW (global no. 3 player), all in Europe Major operational projects: London Array (30% share of 630 MW, UK) the world s largest offshore wind farm, Robin Rigg (180 MW, UK). Key projects under construction: Amrumbank (288 MW, Germany), Humber Gateway (219 MW, UK)

6 6 Our team provides valuable support along the value chain and across geographies Generating the best returns from our wind assets while at the same time reducing costs along the wind farm life-cycle to further increase the competitiveness of renewables is at the core of all our activities. We apply excellent technological and analytical skills to identify optimal sites and choose the best-suited technologies for our respective markets. Leveraging our experience from building industrialscale wind farms on- and offshore, we apply proven innovative technologies and installation methods such as our pioneering use of a scour technology in the construction process at Amrumbank West. We have built an impressive track record in renewables over the past years. Given our expertise and innovative approaches for wind and solar, we are committed to continue shaping the renewables industry going forward. Eckhardt Rümmler, CEO E.ON Climate & Renewables We recently completed Camster wind farm in Scotland which is located on land with a mixture of open peatland and commercial forestry plantation, which presented several challenges through the design and construction, mainly because of the depth of the peat. By using innovative construction techniques, we ve shown that ecologically sensitive land can be developed without damaging the environment. Geared towards our approach of cost-minimum delivery, we take advantage of large-scale procurement and work together closely with our suppliers to further improve components and construction approaches, and to reduce costs.

7 7 We carefully select wind farm sites and are committed to the sustainable implementation of wind energy When choosing our wind farm sites we rely on both our in-house expertise and independent environmental experts. We believe that a clear strategy and understanding of market trends and market specific factors, such as the local community and politics, is key to our success in development. Taking into account the impact on the environment, we manage to minimize the impact on the community and, where we can, make improvements to the area s landscape, environment and wildlife habitats. We are committed to the sustainable implementation of wind energy by actively supporting research As the renewable energy source with the biggest growth and share in the energy mix, wind energy is a key pillar of a cleaner energy future. Michael Lewis, Chief Operating Officer E.ON Climate & Renewables and development of suitable solutions to mitigate the impacts on ecosystems. We also work across the business and engage with our experts to choose the most suitable turbine and support along the whole value chain. Development Engineering support to wind farm development Energy marketing modeling, structuring Optimal wind farm site selection based on construction and operational constraints Engineering, Procurement & Construction Best in class project management, engineering, procurement and construction allowing to reduce costs High voltage design and construction capabilities Wind farm co-location expertise Operations Active strategy leading to operational excellence and continuous improvement In-depth conventional and renewables generation expertise Fleet concept ensuring world class fleet performance and integrity of assets

8 8 Our construction approach is based on high safety standards and aims at implementing high quality at low cost Health, Safety, Security & Environment (HSSE) is the first priority in any of our construction and operations projects. Any minor accident could cause major harm and medical help is often far away. Construction and maintenance work at our sites can be challenging and risky. Our employees on-site face tough environmental conditions in often extreme weather and work at great heights and in remote environments. We are committed to ensuring excellence in HSSE performance for all our employees, contractors and other stakeholders. Meeting this commitment is a primary objective and the individual and collective responsibility of all our employees. Wearing Personal Protective Equipment (PPE) for instance is a precondition for performing at our sites. Every routine is planned thoroughly to allow safe, fast and efficient execution. Raising the bar on our safety targets gives us the opportunity to set the standard for our industry. Our construction strategy We manage the project execution We design wind farms We procure materials We use local contractors Multi-lots strategy effectively fits all markets Best practice in place Priority to HSSE Capex reduction road map In-house construction rates benchmarks Lean concept for site works Deep logistics analysis Risk & critical path management We combine high quality and low cost Key success factors Extensive internal engineering capabilities of design to fit all location features Global knowledge of the wind energy market Aggressive schedule optimization Integration of renewables and non-renewables experiences (power, oil & gas) We deliver in time and on budget

9 9 We apply an active asset management approach to maximize the energy yield With our in-depth understanding of how wind farms operate and our high HSSE standards, we have created a culture of operational excellence and continuous improvement. We have developed a core competence in operating wind farms to remain at the forefront of the industry. We have established two dedicated Control Rooms one in Austin, Texas for our US fleet and one in Coventry in the UK for our European fleet to enable constant management of our wind farms. We regularly analyze our wind fleet to identify further performance improvement possibilities to maximize availability and production, and use predictive maintenance techniques to detect developing faults in advance of failure to avoid more costly interventions. We set ourselves demanding cost reduction targets to make wind energy ever more competitive and affordable. By focusing on the best projects, relying on our talent and pursing sustainable efficiency improvements, we target double-digit returns on our investments. Michael Kamsteeg, Chief Financial Officer E.ON Climate & Renewables By applying an active asset management approach, we optimize operation and maintenance efficiencies while maximizing the energy yield from operational wind assets. We manage all of our own sites and have positioned ourselves well to leverage our scale, experience and in-house technical competence to make E.ON the partner of choice in wind energy.

10 10 Our partnering models enable us to drive performance across the industry and offer customized solutions We partner up with stakeholders from across the industry and along the various stages of the wind farm life-cycle to further drive performance and offer customized solutions. We built London Array, the world s largest offshore wind park, in partnership with DONG Energy and Masdar. We are also a shareholder in Germany s first far-shore offshore project, alpha ventus. Based on our experience in managing large-scale projects and our technical and commercial excellence, we offer a suite of partnering and service solutions. We want to extend our cooperation with stakeholders across the industry and make E.ON the partner of choice in wind energy. Anja-Isabel Dotzenrath, Chief Commercial Development Officer E.ON Climate & Renewables Recently, we teamed up with DONG Energy and STRABAG to conduct an environmental investigation into the impact of offshore wind projects on the marine environment. The project will run for seven years in an area of up to 4,300 km 2 to the north of the East Frisian Islands. The joint investigation is expected to lead to a further reduction of environmental study costs by up to 50% as well as significantly lower emissions and other environmental impacts due to the bundling of activities.

11 11 In onshore wind, we develop new projects in close co-operation with large land owners like the Forestry Commission in Scotland, Statskog in Sweden and SCA in Norway. During the development phase we employ expert environmental consultants to provide the Environmental Impact Assessments as well as ecological services for our habitat management plans throughout the life of our wind projects. In doing this, the environment is substantially enhanced compared to the pre-wind farm state. When it comes to operations, we join forces with partners like GE to continuously optimize the performance of wind turbines. We also engage in customized ownership and fi nancing models. In our Build, Sell & Operate approach we take financial partners on board, who provide financing in return for steady cash flows, while E.ON manages and operates the asset throughout its lifetime. Our joint ownership of three onshore wind farms in the US together with pension fund PensionDanmark and the offshore wind farm Rødsand 2 in Denmark with institutional investors are excellent examples of generating value for our investors through development, construction and operations. We also offer partnering options prior to commercial operations (pre-cod) of wind farms to manufacturers, institutional and financial investors and recently entered into a partnership with GE for our Grandview Wind Farm in the US. Once completed, Grandview will generate enough electricity to power approximately 64,000 homes. We are always open to discuss potential co-operation with committed technical experts and financial investors alike.

12 12 Project examples Our projects stand for our expertise and excellence in on- and offshore wind

13 Onshore project Roscoe Project scope Turbine height Total power Location Good to know 209 turbines Hub height 69m, rotor diameter 61m 209 MW Straddles the Nolan, Mitchell and Scurry Counties in Texas, US The Roscoe wind complex is actually four projects in one. All four phases (Roscoe 209 MW, Champion MW, Pyron 249 MW, and Inadale 197 MW) are operational, making the complex one of the largest onshore wind farms in the world E.ON s first project in dry-land cotton fields. Since turbines do not use water, local farmers welcomed the arrival of this complimentary land use into their fields which helped more than 85 farmers continue to plant new crops

14 Onshore project Wysoka Project scope Turbine height Total power Location Good to know 22 turbines Hub height 100m, rotor diameter 90m 55 MW Agricultural landscape in the Pila region of Poland West Pomerania Province is currently the leading producer of green energy in Poland Wysoka has a total capacity of 55 MW and can produce enough power to supply more than 57,000 households* * Production equivalent for Polish homes, based on an annual demand of 3,100 kw

15 Project scope Onshore project Camster 25 turbines Turbine height Hub height 80m, rotor diameter 121.2m Total power Location Good to know 50 MW Near Wick in Caithness, Scotland Since operation, we ve contributed almost 97,000 towards community projects in the area, through our Community Benefit Fund* Camster wind farm can provide enough power for up to 30,000 homes in one year** * The Community Benefit Fund provides a minimum of 150,000 a year, as at Year 1 (2013), rising in line with the Retail Price Index. It s available for the operational lifetime of Camster wind farm and managed by Foundation Scotland, an independent grant making charity. ** Based on an average electricity consumption of 4,229 kwh

16 Offshore project London Array Project scope Turbine height Total power Location Good to know 175 turbines Hub height 87m, rotor diameter 120m 630 MW Thames Estuary, closest to the Kent Coast, England London Array is the world s largest offshore wind farm Developed jointly by Dong Energy (50%), E.ON (30%) and Masdar (20%); it provides enough clean power for nearly half a million UK homes* * Production equivalent for UK homes, based on an annual demand of 4,000 kwh

17 Offshore project Amrumbank West* Project scope Turbine height Total power Location Good to know 80 turbines Hub height 90m, rotor diameter 120m 288 MW North Sea, closest to Helgoland, Germany Amrumbank West is E.ON s first commercial offshore wind project in Germany Once completed, it will provide enough power for up to 300,000 German homes each year** * Under construction, to be completed in 2015 ** Production equivalent for German homes, based on an annual demand of 3,500 kwh

18 Offshore project Rødsand II Project scope Turbine height Total power Location Good to know 90 turbines Hub height 68m, rotor diameter 93m 207 MW In the Baltic Sea between the German island of Fehmarn and the Danish island of Lolland Rødsand II is an example of our Build, Sell & Operate approach where we take partners on board, while E.ON manages and operates the asset throughout its lifetime Produces enough clean energy for around 200,000 homes* * Production equivalent for Danish homes, based on an annual demand of 3,500 kwh

19 21 E.ON Climate & Renewables GmbH Brüsseler Platz Essen Germany