Fact Book Renewable

Focus on Offshore & Onshore Wind Table of contents

1 RWE Innogy 3 2 Business Approach 12 3 Wind Offshore 17 4 Wind Onshore 30

RWE Innogy | Factbook Renewable Energy PAGE 2 RWE Innogy

RWE Innogy | Factbook Renewable Energy PAGE 3 Focus on wind, hydro and biomass while also supporting new technologies

RWE Innogy

Overview > Established in February 2008 > Bundling renewables activities and competencies across RWE Group – Focus on capacity growth in commercially mature renewable technologies, i.e. wind, biomass and hydro – Research & Development and Venture Capital to drive the development of emerging technologies, e.g. solar, geothermal, marine > European focus > Asset portfolio of 2.2GW in operation and 0.4GW under construction mainly located in , Germany, Spain, Netherlands, Italy, France and Poland (Accounting view + PPA as at Q4 2009) > Project pipeline of 16.7GW consisting mainly of wind, hydro and biomass (Accounting view + PPA as at Q4 2009)

Business Wind onshore Wind offshore Hydro Biomass New technologies Area

Focus and Key technology for Key technology for Run-of-river projects and Development of biomass Driving innovative Strategy capacity growth capacity growth storage plants plants (> 5 MW) renewable technologies Focus on organic growth Organic growth strategy Development of hydro Regional focus on RWE to commercial leveraging strong power projects core markets and applications through Focus markets include Venture Capital, Germany, UK, Spain, position in UK Focus areas are Central- Central- and South- Eastern Europe Demonstration plants Italy, Netherlands, Focus markets include and South-Eastern and R&D France and Central- and UK, Germany and Europe South-Eastern Europe Netherlands

RWE Innogy | Factbook Renewable Energy PAGE 4 RWE Innogy management team: experienced – well connected – international

Prof. Dr. Dr. Hans Bünting Paul Coffey CEO CFO COO

> Hydro Power > Information > Commercial & New Applications Management > Wind EE > Biomass > Legal > Wind UK > Communication > M & A > Wind WE > Markets & Political > Finance > Wind Offshore Affairs/CR > Procurement > European Health > Human Resources > Tax, Accounts & Safety > Strategy & Ventures & Treasury > Technical Support

Education > Degree in chemistry > Degree in business administration > Degree in business and finance > Doctorate in chemistry > Doctorate in business administration (both University of Münster) (both University of Bochum)

Career > 2001 – 08 CEO REpower Systems AG, > 2004 – 08 Head of risk management > 2008 – 09 Managing Director Milestones RWE AG Operations & Technology, > 1998 – 01 Member of the Board > 2000 – 04 RWE Trading GmbH, Generation, at RWE plc of Directors of Deutsche Shell AG various management positions > 2007 – 08 Managing Director npower > 1991 – 97 Senator and Principal of the in finance and risk controlling Business, Retail, at RWE npower plc City of Hamburg Environmental Ministry > 1995 – 00 RWE Energie AG, > 2005 – 07 Director Commercial Asset > 1984 – 90 Deputy Minister City of Hamburg various positions in finance Management, Generation, at RWE Environmental Ministry and risk controlling npower plc > 1981 – 84 Head of Department of Environ- > 1990 – 95 Ruhr-University Bochum, > 2002 – 05 Head of Commercial mental Policy, Waste Management and Air research associate Development, European Wholesale Pollution Control at the Hessian Ministry of Origination at RWE Trading GmbH Regional Development, Environment, > 1989 – 02 Diverse range of positions Agriculture and Forestry at Northern Electric Plc including: > 1976 – 81 Head of Section Chemical energy retailing, trading & risk Industry, Federal Environment Agency management and power generation

RWE Innogy | Factbook Renewable Energy PAGE 5 Strong European footprint with focus on wind and hydro Innogy’s operational capacities: Accounting view + PPA, Q4 2009 Onshore Offshore In MW Wind Hydro Biomass Wind Biogas Solar Total el Onshore Wind Germany 427 376 94 4 1 902 Offshore Wind Biomass UK 288 1) 69 150 1) 507 Hydro [135 2) ] New Applications Spain 401 12 413

Netherlands 232 232

France 28 45 73

Poland 41 41 NL Switzerland 23 23 Poland

Czech Republic 20 20 UK

Portugal 1 16 17 BE

Total GER RWE Innogy 1,418 541 114 3) 150 4 1 2,228 Czech Republic (data as at 31 Dec 2009) France Switzerland 1) 288 MW = 92 MW Innogy wholly owned assets + 196 MW of Zephyr assets. RWE Innogy operates 483 MW, of this 391 MW (331 MW onshore/60 MW offshore) is owned by Zephyr Investments Ltd which is 1/3 owned by RWE Innogy. Of the 331 MW onshore, 196 MW is 100% contracted to RWE npower through PPAs (power purchase agreements). The remaining 92 MW is onshore and 100% owned by RWE Innogy and 100% contracted to RWE npower through a PPA. Of the total 150MW offshore capacity, 60MW is 100% contracted to RWE npower through a PPA. 2) An additional capacity of 135 MW is contracted to the NFPA (Non-Fossil Fuel Purchasing Agency, Portugal est. 1989 to support renewables by offering long term PPAs and new projects were typically Spain contracted in this way until the introduction of the Renewables Obligation in 2002). 3) Including 32 MW of biomass/fossil mix, 14 MW of fossil capacity.

RWE Innogy | Factbook Renewable Energy PAGE 6 We plan to increase the installed generation capacity significantly

Value oriented growth strategy Capacity growth targets (in GW, pro rata) > Objective is profitable growth of renewables business 12 > We want to increase our capacity to 4.5 GW Assets in operation or under construction > 10 in operation or under construction by 2012 10 Assets under construction and exceed 10 GW by 2020

Assets in operation – Strong organic growth (incl. development 8 of acquired pipeline) and selective strategic Assets in operation RWE Innogy acquisitions

6 – Average investments of at least € 1 bn p.a. 4.5 – Value creation in line with RWE's strict investment criteria 4 2.5 3) 15 TWh/a 4) > We will be operating in markets we know – 1.7 2) our focus is on Europe 2 1.3 1) > Innovative renewable technologies offer additional growth options 0 Dec 2007 Dec 2008 Sept 20092012 2020

1) Composed of 1,100 MW capacity in operation and 211 MW under construction (pro rata). 2) Composed of 1,271 MW capacity in operation and 470 MW under construction (pro rata). 3) Composed of 2,039 MW capacity in operation (incl. 637 MW Essent, which was consolidated as of Sept 30, 2009) and 482 MW under construction (pro rata). 4) Minimum annually generated electricity to be achieved from 2013 onwards on the basis of the 4.5 GW target.

RWE Innogy | Factbook Renewable Energy PAGE 7 Germany plays an important role both in today's asset base and growth ambitions

RWE Innogy assets Germany 2) RWE Innogy activities Germany > RWE Innogy's headquarters located in Essen; Schmarloh Putlitz additional offices in Hamburg, Hannover, Dortmund, Berlin Bartelsdorf Krusemark > Leading German onshore operator Stemwede Berlin > 45 run-of-river and storage plants along Malterhausen Mosel, Saar and Ruhr rivers Barbecke > Biomass and fossil CHP plants operated Bergkamen Güterglück and developed by RWE Innogy Cogen Grevenbroich > First Biogas plants in Grevenbroich and Güterglück Gelsenkirchen Lesse Neurath/Paffendorf In Under Elisenhof 1) Waldbröl/Siegen Capacity (MW el ) operation construction Sechtem Lichtenau Urfeld Wind onshore 427 2) 18

Kirf Herdecke Wind offshore 295 Bernkastel Siegen-Wittgenstein Biomass 94 3) 20 Aschaffenburg Heidelberg Bingen Biogas 4

Saarwasserkraftwerke Kehl Hydro 376 RADAG Solar 1

Hydro plants Biomass plants Biogas plants Wind sites Solar sites (Accounting view + PPA as at Q4 2009) 1) Table shows electrical capacity respectively equivalent electrical capacity only. 2) Includes 405 MW Essent onshore wind capacities. 3) Includes 46 MW el dedicated biomass, 14 MW el mixed fossil/biomass and 14 MW el fossil capacity.

RWE Innogy | Factbook Renewable Energy PAGE 8 RWE Innogy has a significant track record and strong position in the UK

RWE Innogy assets UK RWE Innogy activities UK > RWE Innogy’s UK activities comprise the wind and Causeymire Garrogie hydro power assets of RWE npower renewables, and RWE npower’s share of the Zephyr portfolio of Inverbain Novar onshore and offshore wind energy projects Garry Gualach Farr > A significant pipeline of onshore and offshore wind Glen Tarbert Beinn Ghlas projects at various stages of development Braevallich Stanley Mills > Two major biomass projects under development at Auchtertyre Blantyre Stallingborough (65 MW el ) and Markinch (52 MW el ) Kielder Windy Standard > RWE Innogy’s headquarters in the UK are located in Tow Law Swindon Kirkby Moor Hameldon Hill North Hoyle Lambrigg In Under Trysglwyn Capacity (MW ) operation construction The Hollies el Dulyn Wind onshore 288 1) 38 Lynn Alaw Garnedd 2) Cwm Dyli Gynwyd Wind offshore 150 252 Bryn Titli Mynydd Gorddu Biomass/Biogas 50 Ffynnon Oer Taff Ely Cwm Coesor Carno Hydro 69 1

Bears Down Little Cheyne Court Solar

Hydro plants Onshore Wind sites Offshore Wind sites (Accounting view + PPA as at Q4 2009) 1) 288 MW = 92 MW Innogy wholly owned assets + 196 MW of Zephyr assets. Please refer to footnote on page 9 for further explanation. 2) Owned by Zephyr Investments Ltd. which is 1/3 owned by RWE Innogy UK. The 60 MW capacity is 100% contracted to RWE npower through PPAs (power purchase agreements). 90 MW offshore wind farm Rhyl Flats was fully commissioned on December 2nd 2009 and is thus not included in capacities in operation as of September 30, 2009.

RWE Innogy | Factbook Renewable Energy PAGE 9 On the Iberian peninsula RWE Innogy is present via INVESTERG, AERSA and RWE Innogy Iberia S.L.

RWE Innogy assets Iberia RWE Innogy activities Iberia > RWE Innogy present in Portugal and Chomba de Plágano Río Gállego Spain through its subsidiaries Vales Plana Mariá – INVESTERG (Portugal) Bulgueira Acampo Armijo – AERSA (Spain) Bragado Luna both focusing on onshore wind and hydro Covas do Barroso Urano – RWE Innogy Iberia S.L. (Spain), focusing Ribadouro Aldehuelas on biomass business Juno Sirigo • Short rotation crops at Villamartin Grisel I-II planted in June 2009 Pinhel Muel • Biomass transformation plant at Trabisa Cepeda La Mora In Under Capacity (MW el ) operation construction Lanternoso Villalgordo Wind onshore 401

Trabisa Wind offshore Andasol 3 1) Los Labrados Villamartin (SRC) Biomass/Biogas Siglos Plana La Balsa Plana de Zaragoza Hydro 12 Bancal Bosque Alto Solar 01)

Hydro plants Onshore Wind sites Biomass activities Solar sites (Accounting view + PPA as at Q4 2009)

1) 50 MW Andasol 3 Concentrated Solar Power plant currently under construction, RWE Innogy and RheinEnergie jointly hold 25.1% of the shares via a holding company (RWE Innogy: 51%, RheinEnergie: 49%); therefore not included in the table based on the accounting view.

RWE Innogy | Factbook Renewable Energy PAGE 10 In France RWE Innogy continues hydro operations and participates in attractive wind development market

RWE Innogy assets France RWE Innogy activities France > France is a 100% subsidiary of RWE Innogy with locations in Paris and Forbach Petit Caux (Département Moselle) Forières > Hydro operations since 1980s > Major focus on development of projects Hauts Traits > Onshore wind pipeline with projects in Pays de la Loire, Normandy and Midi Pyrénées Region Paris

Region Alps

In Under Capacity (MW ) operation construction Region Loire el Wind onshore 28 8

Region Nice Wind offshore

Biomass/Biogas

Hydro 45

Solar

Hydro plants Onshore Wind sites (Accounting view + PPA as at Q4 2009)

RWE Innogy | Factbook Renewable Energy PAGE 11 Innogy’s Business Approach

RWE Innogy | Factbook Renewable Energy PAGE 12 To be trusted leaders in sustainability, renewable energy and innovative technology

RWE Innogy aims to ...

… be among the top 5 companies in the European renewable energy sector

… contribute to the RWE Group‘s growth strategy

… provide sustainable value added to the RWE Group

… be a key element in RWE’s CO 2 reduction programme

… stand for state of the art operation of renewable technology

… be a leading player in developing new renewable technologies

RWE Innogy | Factbook Renewable Energy PAGE 13 Proficient in coping with all critical success factors in the value chain

1 – 2 years 6 – 18 months 12 – 18 months 1 – 2 years

File applications for various authorisations

Sign construction contracts

Operation & Siting Development Authorisation Pre-Construction Construction Maintenance Testing Accept construction work Obtain permits Sign long-term power and authorisations purchase agreement (if applicable)

> Prospecting phase > Resource assess- > Selection of suppliers Confirm plant meets > Operators take delivery of > Signing of long-term ment – e.g. wind (turbines, civil perfor-mance commit- the plant by signing a leases with land measurement-, engineering etc.) ments memorandum of acceptance. owners site surveys > Negotiation of the Operation can begin > Selection of construction contract > Terms & conditions on which appropriate sites electric power is sold vary > Definition of project greatly by country and may characteristics or may not be secured by longer-term contracts

Critical Relationship with Evaluation of e.g. Timely response Access to Build to time and Early identifi- High plant success land owners wind speed data and high equipment and budget cation of perfor- availability factor consenting service providers mance issues success rate at right price

RWE Local offices or Strong team of in Mix of project Plant procure- Specialist in house In house testing Twelve years Innogy development house specialists management and ment specialists project capability experience of partners in all key environmental and strong links management operating wind regions science capability with suppliers capability farms

Source: Goldman Sachs Report (Sept. 2007), updated and edited by RWE Innogy.

RWE Innogy | Factbook Renewable Energy PAGE 14 Risk diversification across technologies, regions and support mechanisms

… generation capacity …

Biomass Onshore Wind Hydro Biomass

Onshore Wind Offshore Offshore Wind Hydro Wind

… country (electricity generation) … support mechanism (electricity generation)

Netherlands Other Other Power Price only

Germany Premium Italy Tariff Certificate RWE Innogy target portfolio by … by portfolio target Innogy RWE

Spain Feed-In Tariff UK

RWE Innogy | Factbook Renewable Energy PAGE 15 Organic business and flexible partnership approach adopted to local situation

Adoption of partnership model for market entry and growth strategy in attractive markets depend on market characteristics and RWE’s regional strength

UK Germany Organic business Organic and partnership

Netherlands Poland Organic business (Essent) Development partnership supported by regional RWE presence France Development partnership

Italy Joint Venture Spain Organic business

Organic growth through established RWE Innogy business Growth through development partnership Joint Venture activities RWE Innogy | Factbook Renewable Energy PAGE 16 Wind Offshore

Wind Offshore Wind Onshore Biomass Hydro New Applications & Venture Capital

RWE Innogy | Factbook Renewable Energy PAGE 17 RWE Innogy’s Offshore Wind Projects

Dogger Bank 1 (9.000 MW) (1.200 MW)

North Hoyle 2 (60 MW) Nordsee Ost (295 MW)

Gwynt y Môr (576 MW) (about 1.000 MW)

Rhyl Flats (90 MW) Tromp Binnen (300 MW)

Atlantic Array (1.500 MW) Thornton Bank 4 (30 MW)

Greater Gabbard 3 (504 MW)/

Projects in operation or under construction Projects consented or in development 1) Site developed by the consortium (RWE Innogy, SSE, Statoil and Statkraft). 2) North Hoyle offshore windfarm (60 MW) is owned by Zephyr Investments Ltd. which is 1/3 owned by RWE Innogy UK. The capacity is 100% contracted to RWE npower through PPAs (power purchase agreements). 3) 50% owned by RWE Innogy. 4) RWE Innogy holds a share of 27%; extension phase 2 and 3 (up to the final capacity of 300 MW) under development.

RWE Innogy | Factbook Renewable Energy PAGE 18 Offshore wind power: RWE Innogy has strong starting position in the UK

Offshore wind capacity Markets and operations Technology & markets > Immature market: 1.5 GW installed offshore wind capacity in EU-27 in 2008 > Strong market growth in medium to long term – Time horizon depends on technical progress and development of approval procedures United Kingdom > Significant technological challenges remain 150 MW 1) especially in offshore foundations and structures > Trends: Technical hurdles overcome, allocation of attractive sites, development of projects, M&A of projects

RWE Innogy's assets (Accounting view + PPA as at Q4 2009) > 150 MW offshore wind capacity (North Hoyle/60MW 1) and Rhyl Flats/90 MW) in operation and 252 MW (Greater Gabbard) under construction > 27% stake in Belgian offshore wind project Thornton Bank - 30 MW of planned total capacity of 300 MW already operational

RWE Innogy presence 1) North Hoyle offshore windfarm (60 MW) is owned by Zephyr Investments Ltd. which is 1/3 owned by RWE Innogy UK. The capacity is 100% contracted to RWE npower through PPAs (power purchase agreements).

RWE Innogy | Factbook Renewable Energy PAGE 19 RWE Innogy actual project development for offshore wind in UK and Germany

Wind Distance to First Examples of offshore wind projects Nr. Farm Size shore Water depth generation

1 Gwynt y 160 x 3.6 13 km off the 12 – 28 m First Môr MW coast of depth generation in Siemens North 2013, turbines full generation (576 MW), in 2014 124 km 2 Nordsee Ost Gwynt y Môr

2 Greater 140 x 3.6 25 – 47 km 24 – 34 m Beginning of Gabbard 1 MW offshore depth first electricity Siemens production turbines scheduled for Greater Gabbard (504 MW 1) ), early 2011, 147 km 2 fully operational in late 2011

3 Nordsee 48 x 6 MW 32 – 45 km 22 – 26 m First Ost REpower offshore depth generation in turbines 2012, full (295 MW), generation in 34 km 2 2013

1) 50% owned by RWE Innogy.

RWE Innogy | Factbook Renewable Energy PAGE 20 UK's third offshore wind leasing round: RWE Innogy to develop 4,000 megawatt of offshore wind power > Located 14km from North Devon and 18km South Wales in the > 1,500 MW site > Grid connection secured in North Devon

Dogger Bank > Site developed by the Forewind consortium (RWE Innogy, SSE, Statoil and Statkraft) > Development capacity of 9,000 GW with a potential up to 13,000 MW > Strategic location between UK, Germany and Norway

RWE Innogy | Factbook Renewable Energy PAGE 21 Offshore Logistics: RWE Innogy´s Seabreeze Program

> Seabreeze Program:

 Build of 2 self propelled Jack-Up vessels

 Designed purposely for turbines in the 5 to 6 MW class as well as for the corresponding jacket or monopile foundations

 Possibility to be used in water depth > 45 meters

RWE Innogy | Factbook Renewable Energy PAGE 22 Planned Seabreeze Program - Main particulars

Flag German Main dimensions Length over pontoon: 100.00 m Breadth moulded: 40.00 m Depth to main deck: 8.00 m Max. Payload: 4,200 t (= 4 sets of 5MW turbines )

Main crane - lifting capacity Max. hook height above Deck: 110 m Max. Load: 800 t @ 25m ; 500 t @ 38m Propulsion: 6 retractable thrusters: 6 x 1,600 kW approx. 6 knots Accommodation: max. 60 persons, mainly single cabins Helideck: D=17,0m (AW 139)

RWE Innogy | Factbook Renewable Energy PAGE 23 RWE Innogy focus: Offshore wind is an engineering skill & scale game

European Market Features

> Maturing technology with high rate of innovation, > Few suppliers with proven technology but limited track record > Technology with relatively high generation cost per MWh but existing > Current land grap for offshore wind pipeline support mechanisms provide attractive remuneration > Main growth countries are Germany and the UK > Large scale projects often funded through partnerships models

Opportunities Challenges

> Wind resource better than onshore (load factors 35%+) > Tight supply situation across the value chain > Attractive growth opportunities & industrial scale projects > Relative to onshore wind, high maintenance risks far out at sea: > Technology progress with significant cost reduction potential safety, costs, access, technology > Strong political support reduces regulatory risks > Limited best practice track record available make it a skill game

RWE Innogy Strengths

> Secure key value chain technologies (e.g. turbines, vessels) > Recruit best offshore experts available > Stepwise approach from “nearshore” to “farshore” to minimise risks

RWE Innogy | Factbook Renewable Energy PAGE 24 Europe clearly leading the pack in offshore wind energy

Total offshore wind capacity year-end 2008 (in MW) > Europe is leading in offshore wind energy with an installed capacity of 1.5 GW in 2008, thus corresponding to 100% of the worldwide capacity Denmark > Existing offshore capacities concentrate on four 409 (27%) countries: 94% of plants are located in UK, Denmark, Netherlands and Sweden > The installed capacity in Europe is expected to grow by an average of 28% p.a. to 30.1 GW in Netherlands 2020 – Europe will continue in leading the pack 241 (16%) 2008: in offshore wind as other regions focus on 1,510 MW exploiting the onshore potential UK > Despite the strong growth rates, offshore wind 598 (40%) will still be small in relation to onshore wind, Sweden accounting for only 14% of the European wind 166 (11%) capacities in 2020 Other 96 (6%)

Source: Emerging Energy Research – Europe Wind Energy Market Forecast 2009 (base case scenario).

RWE Innogy | Factbook Renewable Energy PAGE 25 Offshore wind market in Europe to grow by 28% p.a. until 2020, representing 14% of the wind market

> Offshore technology still immature and current Offshore wind installed capacity development in Europe, 2005 – 2020 progress slow – accounts for only 2% of total accumulated and 4% of newly installed capacity 32 4,8 as of 2008 Total installed capacity (GW) > Currently, stronger short-term growth is 28 4,2 Newly installed capacity (GW) prevented by: 30,1 Newly installedNewly capacity (GW) – Only limited number of companies with practical 24 3,6 25,7 offshore experience (Siemens, REpower, Vestas) – Still high prices for wind turbines and long 20 21,9 3,0 delivery times 18,6 16 2,4 – Technical issues with some of the first large 15,4 offshore wind farms 12 1,8 > However, significant offshore capacity already 12,4 in planning stage 8 9,7 1,2 > The share of offshore is expected to reach

Total installed capacity (GW) capacity Totalinstalled 7,4 14% in 2020 as onshore growth slows down 4 5,4 European offshore wind 0,6 in Europe 1,1 4,0 CAGR 2008 – 20: 28.3% 0,9 3,1 > Growth in offshore is mainly driven by: 0,71,5 1,9 0 0,0 – Strong pipeline of projects – Technological developments

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 addressing the still existing challenges Share of offshore in total wind (in %) – Strong regulatory support (high political targets & attractive remuneration schemes) 1.7 1.8 2.0 2.3 2.6 3.6 4.3 5.1 6.2 7.4 8.6 9.8 10.8 11.7 12.7 13.8

Source: Emerging Energy Research – Europe Wind Energy Market Forecast 2009 (base case scenario).

RWE Innogy | Factbook Renewable Energy PAGE 26 The major growth markets in EU for offshore wind are UK and Germany

Offshore wind markets in Europe Natural offshore wind conditions (at 50 m height)

10,0 Wind speed m/s

Germany > 9 8.0 – 9.0 8,0 UK 7.0 – 8.0 5.5 – 7.0 6,0 < 5.5

4,0

Sweden Ireland Belgium 2,0 Spain Netherlands

Accumulated installation 2008 – 2008 installation Accumulated (GW) 20 Italy Denmark Poland France 0,0 0% 5% 10% 15% 20% 25% 30% 35%

Share in accumulated capacity 2020

Source: RWE analysis on basis of Emerging Energy Research – Europe Wind Energy Market Forecast 2009 (base case scenario); European Wind Atlas, copyright by Risø National Laboratory.

RWE Innogy | Factbook Renewable Energy PAGE 27 Turbines dominate cost of wind projects

Capex split offshore wind farm (UK example) Capex split onshore wind farm (UK example)

(in % of total capex) (in % of total capex)

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0% Turbine Foundations Grid & Electrical Other Turbine Foundations Grid/Other

> For both on- and offshore projects, wind turbines dominate the capex split – appropriate turbine prices are thus crucial for an attractive return on investment > Offshore investment split varies according to project details, e.g. water depth, distance to shore, grid connection works etc. > Cost of grid connection depends on distance to coast, foundation also depends on depth of water – in contrast to the UK market, the grid operator in Germany is obliged to connect the projects to the electricity grid and to bear capital and finance cost

Source: RWE Innogy.

RWE Innogy | Factbook Renewable Energy PAGE 28 Few large players share the market for on- and offshore wind turbines

Global market shares Global offshore market shares (newly installed capacity in 2008) (of total 1.5 GW installed capacity, 12/2008)

19,8% Vestas 51,6% 18,6% GE Wind 2,4% 12,0% Gamesa 10,0% Enercon 0,3% 9,0% Suzlon 1) 6,9% Siemens 42,2% 5,0% Sinovel 4,6% Acciona 4,0% Goldwind 3,8% Nordex 0,3% 3,3% REpower 1) 2,6% WinWind 1,6%

> Turbine suppliers are establishing long-term commitments, strategic > Vestas (incl. NEG) and Siemens Wind (incl. Bonus) are currently partnerships or even backward integration with component suppliers the only companies with long-term experience in offshore turbines > Component suppliers have been increasing manufacturing capacity > Both manufacturers with a combined share of 94% dominate due to long-term-planning horizon the global offshore market > Onshore: New capacity will come from capacity build up > However, especially in the field of multi MW turbines a number and emergence of new players, e.g. from China and India of new competitors are entering the market: – REpower (5 MW and 6 MW turbine) – Enercon (4.5 MW turbine & 6 MW turbine – small test fields in Germany) – Multibrid (6 MW turbine)

1) Suzlon holds a stake of 90.7% in REpower Systems AG. Source: BTM Consult – World Market Update 2008 (March 2009), company data, RWE Innogy.

RWE Innogy | Factbook Renewable Energy PAGE 29 Wind Onshore

Wind Offshore Wind Onshore Biomass Hydro New Applications & Venture Capital

RWE Innogy | Factbook Renewable Energy PAGE 30 Onshore wind power is a key element in RWE Innogy's growth strategy

Onshore wind capacity Markets and operations Technology & markets > Relatively mature markets especially in Germany and Spain United Kingdom > 63.5 GW capacity installed in EU as of 2008, 1) 288 MW – High maturity of technology Netherlands – Power generation costs competitive 232 MW 2) with conventional energy sources > Still attractive growth rates & repowering potential Germany in mature markets 427 MW 2) > In the foreseeable future positive and stable financial support systems (e.g. fixed feed-in France tariffs/obligations) 28 MW > Trend: Consolidation through M&A Spain 401 MW RWE Innogy's assets (Accounting view + PPA as at Q4 2009) > 1.418 MW onshore wind farms in operation (of which Zephyr UK 196 MW under economic control of RWE Innogy 1) ) and 165 MW under construction RWE Innogy presence

1) 288 MW = 92 MW RWE Innogy wholly owned assets + 196 MW of Zephyr assets. Please refer to footnote on page 9 for further explanation. 2) Essent contributed 232 MW onshore wind assets in the Netherlands and 405 MW in Germany as of September 30, 2009.

RWE Innogy | Factbook Renewable Energy PAGE 31 Examples of RWE Innogy wind projects in Poland and Spain

Wind farm Suwalki Wind farm Las Planas

Location Location > In Masuria/Poland, approx. 50 km to the Lithuania frontier > Located 12 km in the south of Zaragoza/Spain Technical data on the plateau „Plana de Zaragoza“ > Installed capacity: 41.4 MW > 600 m above sea level > 18 wind turbines Technical data type SWT 2.3 a 2.3 MW from Siemens > Installed capacity: 90 MW > Rotor diameter: 92.6 m > 120 wind turbines a 750 kW > Tip height: approximately 150 m > Hub height: 55 m > Start-up: 4 th quarter 2009 > Rotor diameter: 48 m > Full load hours round about 2,600 h/a (load factor of 30%) > Start-up in February 2002

RWE Innogy | Factbook Renewable Energy PAGE 32 RWE Innogy focus: Onshore wind is a must-have for fast growth

European Market Features

> Mature technology but still room for innovation > Trend towards M&A driven consolidation > Significant capacities installed in Western Europe > Many turbine suppliers available with long-term track record still with attractive growth and repowering potential > Turbine supply turning from supplier to customer driven market > Growing number of opportunities in Eastern Europe

Opportunities Challenges

> Stable support schemes in most European countries promote > Intense competition for best wind sites growth > Large project pipelines necessary due to > Low cost and fast construction of significant capacity 1) regulatory risk associated with building consent > Short/mid-term opportunities to profit from distressed sellers

RWE Innogy Strengths

> Strong existing wind farm portfolio and significant track record in new-build and operation > Regional diversification to reduce country-specific regulatory risks > Growth strategy with focus on organic projects but making use of short-term opportunities also through M&A > Large realisable project pipeline

1) In comparison to other renewable energy technologies

RWE Innogy | Factbook Renewable Energy PAGE 33 The world market for wind energy

Installed wind power capacity (in GW) Newly installedNewly capacity (GW) 400 60 350 Total installed capacity (GW; LS) 50 300 Newly installed capacity (GW; RS) 40 250 200 30 150 20 100 10 50 0 0

Total installed capacity (GW) capacity Totalinstalled 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e2010e 2011e 2012e 2013e

Top 10 with > 80% of newly installed capacity (in GW) Top 10 with > 85% of total installed capacity (in GW)

9,000 2006 2007 2008 25,000 2006 2007 2008

7,500 20,000 6,000 15,000 4,500 10,000 3,000 1,500 5,000 0 0

Source: BTM Consult – World Market Update 2008 (March 2009).

RWE Innogy | Factbook Renewable Energy PAGE 34 Onshore wind in Europe: Steady path for solid growth

> Installed capacity in Europe has grown 17% p.a. Onshore wind installed capacity development in Europe, 2005 – 2020 since 2004, corresponding to an average of 7.6 GW p.a. incremental capacity 200 12 > In certain areas, electricity production from wind 180 11 energy has grown to a significant level (e.g. 20% in Denmark, > 7% in Germany, in some German Newly installedNewly capacity (GW) 160 10 federal states exceeding 30%, > 8% in Spain as 140 9 of 2006) > Steady path for solid growth 120 8 – European onshore wind expected to increase 100 7 installed capacity by 9% p.a. until 2020 (10.3 GW annual incremental capacity) 80 6 – Spain, France, UK, Italy and Germany with 62% 60 5 of net additions in installed capacity by 2020

Total installed capacity (GW) capacity Totalinstalled 40 4 – Focus moving to medium sized markets European onshore wind which will grow faster 20 CAGR 2008 – 20: 9.3% 3 – Medium to long-term growth is expected to slow 0 2 down due to increased saturation of large markets and shift towards offshore 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total installed capacity (GW) Newly installed capacity (GW)

Source: Emerging Energy Research – Europe Wind Energy Market Forecast 2009 (base case scenario).

RWE Innogy | Factbook Renewable Energy PAGE 35 Major markets in EU based on size and wind resources

Onshore wind markets in Europe Natural onshore wind conditions (at 50 m height)

30,0 Wind speed m/s 27,5 > 7.5 25,0 Spain 6.5 – 7.5 22,5 5.5 – 6.5 20,0 France 4.5 – 5.5 17,5 < 4.5 15,0 Germany 12,5 UK Italy 10,0 Greece 7,5 Portugal Poland Netherlands Sweden 5,0 Turkey Ireland Belgium Norway 2,5 Hungary 0,0 Czech Republic Finland Denmark Austria Accumulated installation 2008 – 2008 installation Accumulated (GW) 20 Bulgaria -2,5 -5% 0% 5% 10% 15% 20% 25% Capacity CAGR 2008 – 20

Source: RWE analysis on basis of Emerging Energy Research – Europe Wind Energy Market Forecast 2009 (base case scenario) – bubble volume corresponds to accumulated capacity in 2020; European Wind Atlas, copyright by Risø National Laboratory.

RWE Innogy | Factbook Renewable Energy PAGE 36 European wind power continued strong growth in 2008 - still dominated by onshore wind

Germany 23.903 Spain 16.740 Italy 3.736 France 3.404 UK 3.241 Denmark 3.180 Portugal 2.862 Netherlands 2.225 Sweden 1.021 Rep. of Ireland 1.002 Austria 995 Greece 985 Poland 472 > In 2008, installed wind power capacity increased by Turkey 433 15% to 64.9 GW in EU-27 Norway 428 Belgium 384 – Onshore wind accounted for 63.5 GW (98% of total Bulgaria 158 installed wind power capacity), corresponding to a Czech Republic 150 growth rate of 14.5% Finland 143 Hungary 127 – With an installed capacity of 1.5 GW in 2008 Ukraine 90 (+32.0% y-o-y) offshore wind still holds a minor Estonia 78 Lithuania 54 share of 2% in the European wind market Luxembourg 35 > New installations in EU-27 amounted to 8,484 MW in

Total installed capacity 2008 (MW) capacity Totalinstalled Latvia 27 Croatia 18 2008, slightly down by 70 MW or 0.1% y-o-y Switzerland 14 Russia 11 – TOP 3 countries Germany (1,665 MW), Spain Romania 10 (1,609 MW) and Italy (1,010 MW) account for 50% Faroe Island 4 Slovakia 3 of 2008 installation (more than 70% in TOP 3 Slovenia 0 countries in 2007) M alta 0 Iceland 0 Cyprus 0 RWE Innogy presence in wind power as of Q4 2009

Source: European Wind Energy Association (February 2009).

RWE Innogy | Factbook Renewable Energy PAGE 37 Evolution of turbine technologies

> Wind turbines are getting larger – along with scaling-up efforts aiming to design multi-MW turbines for offshore application, developers have demanded larger turbines – Average turbine size in 2008 was 1,419 kW, some 73 kW below the 2007 level – Significant difference between mature (2,256 kW in UK) and emerging markets (e.g. India with 999 kW)

Rotor diameter Hub height Hub

1980 1985 1990 1995 2000 2005 2010 1)

Nominal capacity 30 kW 80 kW 250 kW 600 kW 1,500 kW 3,000 kW 6,000 kW Rotor diameter 15 m 20 m 30 m 46 m 70 m 90 m 126 m Hub height 30 m 40 m 50 m 78 m 100 m 105 m 135 m Electricity 35,000 95,000 400,000 1,250,000 3,500,000 ca. 6,900,000 ca. 20,000,000 output p.a. kWh kWh kWh kWh kWh kWh kWh

1) Only for offshore wind projects Source: Bundesverband Windenergie, BTM Consult – World Market Update 2008 (March 2009).

RWE Innogy | Factbook Renewable Energy PAGE 38 Please find the full version of our fact book on our homepage www.rweinnogy.com