Who are we? We believe in being a good neighbour and support the communities we re a part of.

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1 Who are we? Five million people get their electricity and gas from us - at home and at work, making us one of the UK s top energy companies. We generate electricity and supply both electricity and gas. We re always looking at ways to make energy cleaner and better for all our customers through new technologies and renewable sources, and have been investing in wind energy since We have a dedicated team of energy efficiency advisers to help our customers save energy and money. We believe in being a good neighbour and support the communities we re a part of. In the UK, we re focused on developing onshore and offshore wind and biomass. At the moment, we own and operate 16 onshore wind farms and three offshore wind farms. Together, these have an installed capacity of more than 400 megawatts (MW). Scotland has the potential to lead the way when it comes to renewable energy and has set the ambitious target of generating the equivalent of 100% of its electricity from renewable sources by We re helping reach that target. In Scotland, we currently operate four onshore wind farms, one offshore wind farm and a dedicated biomass power station. We re also developing a number of projects across Scotland. Stags Holt Wind Farm, for illustrative purposes only.

2 Environmental impact As part of the planning process, we ll carry out an Environmental Impact Assessment (EIA). This will look at the potential impacts the wind farm could have on local residents and the area s natural and built environments. We ve appointed independent, specialist consultants to do the surveys, modelling and research, that together will form the EIA. Where any significant impacts are identified, we ll propose ways to tackle them by redesigning our development proposal and/or managing the impacts, so they re reduced to an acceptable level. The areas we re assessing as part of the EIA include: landscape and visual effects ecology and ornithology noise potential effects of shadow flicker from turbines electromagnetic interference with telecommunications access and transport aircraft safety and radar visibility ground conditions and hydrology tourism archaeology and cultural heritage. We ll also look to minimise the potential impact on the National Forest Estate. Stags Holt Wind Farm, for illustrative purposes only.

3 Working with your community We know that people living and working locally have a wealth of knowledge about the site and the local area, so we d like to hear from you about how you think the project could be improved. We aim to provide opportunities for meaningful consultation in the form of public events and workshops, so your views and comments can be heard and, where possible, taken into account in the design of the wind farm. We ll also be setting up a Community Liaison Group made up of representatives from each of the community councils in the area, Forestry Commission Scotland (FCS) and other local representatives that have an interest in the development. These meetings will be designed to provide two-way communication on the project and address any concerns that representatives have from their respective community groups. We believe that our approach to consultation results in wind farms that are sensitively designed and bring benefits to the local area.

4 What we re proposing Forestry Commission Scotland (FCS) awarded us the exclusive right to explore the potential for new wind energy projects with over 5MW capacity, on two areas within the Scottish National Forest Estate. We re now in the early stages of carrying out surveys and other research to find out if it s possible to build a wind farm north-east of Lochgilphead in Argyll and Bute. We ve named the project Kilmichael Wind Farm. At the moment, we believe the site could accommodate up to 43 wind turbines that together, could generate up to 150.5MW, depending on the capacity of the turbine model we select. Kilmichael Birdfield Loch Glashan Ardcastle Wood Lochgilphead Lochgair Key Site boundary Major roads Map not to scale, for illustrative purposes only.

5 Identifying a suitable location We choose our wind farm sites very carefully. Before creating a proposal, we always take detailed advice from specialists and independent experts. Only certain areas of the UK have the right conditions for developing a wind farm, so some locations are more favourable than others. Designing a wind farm When we design a wind farm, we look at its potential impact on many factors of the local area s environment, including visual appearance, noise levels, ecology, ornithology and hydrology. We aim to minimise these impacts whilst making improvements to the area s landscape, environment and wildlife habitats where we can. We also want to place the wind turbines in the best locations on the site, so they can generate as much renewable energy as possible. At the proposed site for the Kilmichael Wind Farm, we ve identified several key constraints, shown on the map below. These constraints will influence where we can place the turbines within the land available for turbine development and associated infrastructure Key A Chruach turbine location Site boundary On-site scheduled monument On-site ancient woodland inventory Buffer of hydropower infrastructure Buffer of scheduled monument Ornithological buffers Buffer of telecommunication link 50m buffer of watercourse Buffer of underground electricity transmission line Buffer of electricity transmission line Ardcastle Buffer Woodof right of public way Buffer of residential property Lochgair Area of panoramic quality A Chruach habitat areas Loch Fynne Map not to scale, for illustrative purposes only.

6 Project timetable March 2015 We introduce early plans for the project to the local community and submit a scoping report to the Energy Consents Unit (ECU). Mid 2016 We produce a refined design layout and consult with the local community through formal public exhibitions. Autumn 2016 We prepare an Environmental Statement (ES) The ECU makes a decision to either approve or reject our proposals Spring/Summer 2015 We set up the first meeting of the Community Liaison Group (CLG), to provide two-way communications about the proposals during the development period. Winter 2016 We continue to formally consult on our initial design layouts and take comments into consideration where we can. End 2016 We submit a planning application to the ECU If consent is granted, construction starts. Indicative timetable, subject to change. Application for consent As the Kilmichael Wind Farm could have an installed capacity of more than 50MW, we need to apply directly to the Scottish Government (Energy Consents and Deployment Unit). However, the application will still go through the local planning process to ensure that statutory consultees, like the Argyll and Bute Council, play a vital role in informing the Scottish Government s final decision. Once we ve made our planning application, anyone with an interest in, or concern about the project, will have the chance to contact the Argyll and Bute Council or the Scottish Government to formally comment on our proposals. Out Newton Farm, for illustrative purposes only.

7 Community benefits We re keen to play a positive role in your community. That s why we ll be working with residents and community groups in your area to: offer a Community Benefit Fund when the wind farm starts operating, payable annually throughout the operational life of the wind farm set up a Community Liaison Group, so we can keep you informed and listen to what the community has to say use local labour to build and operate the wind farm, wherever we can. If the Kilmichael Wind Farm is built, the Community Benefit Fund will be worth 5,000 per annum, index linked* for each MW installed. The Community Benefit Fund would be available during the operation of the wind farm. Please note that offering a Community Benefit Fund does not affect your right to give your comments and opinions on our planning application. * Linked to the Retail Prices Index (RPI), as produced by the Office of National Statistics or any other body which may produce the RPI in the future. Scroby Sands Wind Farm Visitors Centre

8 How do I get involved? Your views are important to us. We welcome your comments on the wind farm or any specific aspects of the project. To give us your feedback, please contact us by Freepost, or Freephone. Kilmichael Wind Farm Freepost RRSE-KZCU-AZJL E.ON Westwood Way Westwood Business Park Coventry CV4 8LG kilmichael@eon.com Freephone We re here from 9am to 5pm, Monday to Friday. Updates on the proposal are also available on our website at: eonenergy.com/kilmichael