RWE Fact Book Renewable Energy April 2014
description
Transcript of RWE Fact Book Renewable Energy April 2014
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Fact Book RWE Innogy GmbH
April 2014
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RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 2
Table of contents
1 RWE Group 32 RWE Innogy 63 Renewable Technologies 18
3.1 Wind Offshore 203.2 Wind Onshore 323.3 Biomass 423.4 Hydro 473.5 New Technologies and Research &
Development 533.6 Innogy Venture Capital GmbH 59
4 Political Framework 62
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RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 3
RWE Group
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PAGE 4RWE Innogy | Factbook Renewable Energy 30/04/2014
Power plant capacity by primary energy source(as of 31 Dec 2013, under IFRS)
Electricity production by primary energy source(as of 31 Dec 2013, under IFRS)
Hard coal
16,440 MW, 33.5% 37.0 TWh, 17.1%
Renewable energies
Gas
3,496 MW, 7.1% 13.82) TWh, 6.4%
Lignite
4,178 MW, 8.5% 2.9 TWh, 1.3%
11,071 MW, 22.6%
3,901 MW, 8.0% 30.5 TWh, 14.1%
81.2 TWh, 37,5%
9,950 MW, 20.3 % 51.3 TWh, 23.7%
2013:49,036 MW
2013:216.7 TWh1)
Pumped storage, oil, other
Nuclear
1) Including electricity from power plants owned by RWE that we can deploy at our own discretion on the basis of long-term agreements. In fiscal 2013, it amounted to 21.8 TWh, of which 18.5 TWh were generated from hard coal.
2) Including electricity procured from power plants co-fired by RWE, which are owned by companies that are not fully consolidated. In fiscal 2013, these purchases totalled 1.8 TWh.
Renewables within RWE's capacity and generation mix (as of 31 December 2013)
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
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PAGE 5RWE Innogy | Factbook Renewable Energy 30/04/2014
Renewable energy in RWE Group today: A leading renewables generation position in Europe
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
RWE Group renewable energy capacityin operation by technology and country(Accounting view1) + PPA, as of 31 Dec 2013)
Total installed capacity: 3,496 MW3)
> A total of 3,496 MW operational renewables assets (December 2013) account for roughly
- 7% of the Groups generation capacity (as of 31 December 2013) and
- 6% of electricity generation (in fiscal 2013). > Thereof, 2,930 MW is operated by RWE Innogy, in
which RWE pooled its renewable energy activities.
> The difference of 566 MW compromises mainly two biomass co-firing plants in the Netherlands (Amer und Cujk, together 320 MW) and several small, distributed biomass, PV, wind and run of river units owned by our German regional companies. Thereof, run-of-river plants have a total capacity of about 200 MW. They are not operated by RWE Innogy.
1) Capacity with 50% RWE Innogy ownership is consolidated to 100% of capacity. 2) Biomass generation is split between RWE Innogy, RWE Energiedienstleistungen and Essent. While RWE Innogy and RWE Energiedienstleistungen are mainly focused on smaller dedicated biomass plants Essent
also runs co-fired and converted coal stations.3) RWE Group renewables capacity, of which 2,930 MW are operated by RWE Innogy (December 2013).
Germany 33%
Offshore wind12%
Hydro22%
Biomass2)12%
Other1% Onshore
wind54%
Other4%
Poland6%
Spain13%
Nether-lands16%
UK 28%
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PAGE 6RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy
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PAGE 7RWE Innogy | Factbook Renewable Energy 30/04/2014
Focus on core competences wind and hydro
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
BiomassWind onshore Wind offshore Hydro New technologies
Overview
Business Area
Focus and Strategy
> Established in February 2008> Bundling renewables activities and competencies across RWE Group
Focus on growth in commercially mature renewable technologies, concentrating on onshore and offshore wind Research & Development and Venture Capital to drive the development of emerging technologies
> European focus > Asset portfolio of 2.9 GW in operation and 0.8 GW under construction mainly located in United Kingdom, Germany,
Spain, Netherlands, Poland and Italy (Accounting view + PPA as at Q4 2013)> Project pipeline of > 6.0 GW consisting mainly of wind and hydro assets (Accounting view + PPA as at Q4 2013)
RWE Innogy
Optimisation of existing plants & assets under construction
Key technology for capacity growthFocus on organic growthFocus markets include UK, Germany, Spain, Netherlands, Italy and Poland
Key technology for capacity growthOrganic growth strategy leveraging strong position in UKFocus markets include UK and Germany
Development of hydro run-of-river
Driving innovative renewable technologies to commercial applications through Venture Capital, demonstration plants and R&D
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PAGE 8RWE Innogy | Factbook Renewable Energy 30/04/2014
> Strategy & Political Affairs
> Legal & Compliance> Communications> Real Estate > Human Resources> Corporate HSE&S* > Innogy Venture Capital GmbH**
> Controlling> Procurement > Tax, Accounts
& Treasury> M&A and
Corporate Development> Organisation and Information
Management
> Biomass > Wind Onshore> Wind Offshore > Commercial> Hydro Power
& New Technologies> Offshore Logistics
Company (OLC)
RWE Innogy management team:experienced well connected international
Dr. Hans Bnting CEO
Dirk Simons CFO
Education > Degree in business administration> Doctorate in business administration
> Degree in economics > Degree in business and finance
Career Milestones > 2008 12 RWE Innogy GmbH, CFO> 2004 08 RWE AG, Head of risk management > 2000 04 RWE Trading GmbH, various management
positions in finance and risk controlling> 1995 00 RWE Energie AG,
various positions in financeand risk controlling
> 1990 95 Ruhr University Bochum, research associate
> 2011 12 RWE East, Head of Finance> 2007 12 RWE Transgas, Vice-Chairman of
the Board, CFO> 2006 07 RWE Key Account Contracting
GmbH (today part of RWE Innogy GmbH), CFO
> 2005 07 RWE Key Account GmbH (today part of RWE Supply & Trading GmbH business), CFO
> 2003 05 RWE Energy AG, Head of Financial Analysis and Regulatory Management
> 1997 03 Diverse positions at RWE in finance and controlling
> 1995 97 Main-Kraftwerke AG, Specialist Controlling
Paul Coffey COO
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
> 2008 09 RWE npower Plc, Managing Director Operations & Technology
> 2007 08 RWE npower Plc, Managing Director npower Business
> 2005 07 RWE npower Plc, Director of Commercial Asset Management
> 2003 05 RWE Trading GmbH, Head of Commercial Development, European Wholesale Origination
> 2002 03 Innogy Plc (today RWE npower Plc), Manager Special Customer Marketing and Asset Disposal Project Manager
> 1989 02 Northern Electric Plc, diverse positions including energy & electricity purchasing, energy trading, IT projects, risk management and retailing
* Health, Safety, Environment & Security **Independent company
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PAGE 9RWE Innogy | Factbook Renewable Energy 30/04/2014
In MWel Onshore Wind HydroOffshore
Wind Biomass Biogas Solar Total
RWE Innogy operational capacities: Accounting view1) + power purchase agreements, Q4 2013
Germany 479 377 5 14) 1 956
UK 4602) 74 4022) 935
Spain 447 12 459
Netherlands 214 214
Poland 197 197
Italy 67 19 85
France 45 45
Switzerland 23 23
Portugal 16 16
Total RWE Innogy 1,863 546 402 53) 14) 1 2,930
1)Capacity with 50% RWEI ownership is consolidated to 100% of capacity.
2) 460 (440 pro rata view) MW = 245 MW RWE Innogy wholly owned assets + 196 (241 pro rata view) MW of Zephyr assets + 19 MW of Green GECCO assets. RWE Innogy operates 745 MW of UK wind capacity, of which 391 MW (331 MW onshore/ 60 MW offshore) is owned by Zephyr Investments Ltd (1/3 owned by RWE Innogy). Of the 331 MW onshore, 196 MW is 100% contracted to RWE npower through PPAs (power purchase agreements). An additional 18 MW is contracted to the NFPA (Non-Fossil Fuel Purchasing Agency). Of the offshore capacity of 402 MW, 342 MW is wholly owned by RWE Innogy. 60 MW offshore capacity is owned by Zephyr and is 100% contracted to RWE npower through a PPA.
3) Capacity biomass as of Q1 2014. 4) Includes only biogas used directly in power generation.5) Capacity equal to share of ownership.
RWE Innogy operational capacities: Pro rata view5) + power purchase agreements, Q4 2013
Germany 461 355 5 1 1 917
UK 4402) 74 3572) 871
Spain 443 10 7 459
Netherlands 214 214
Poland 181 181
France 45 45
Italy 34 13 37
Switzerland 23 23
Portugal 3 16 19
Belgium 87 87
Total RWE Innogy 1,777 521 444 183) 1 8 2,863
Strong European footprint with focus on wind and hydro
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
SpainPortugal
FranceSwitzerland
CzechRepublic
BE
Poland
Italy
DE
Hydro
Onshore wind
Biomass
Offshore wind
UK
NL
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PAGE 10RWE Innogy | Factbook Renewable Energy 30/04/2014
Streamlined investments in renewables, concentrating on onshore and offshore wind farms
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Capacity, production & operating result until 2016> The expansion of electricity generation from renewables
continues to be a cornerstone of the strategy of the RWE Group.
> For financial as well as risk mitigation reasons, we will reduce our pace of growth and find new ways to finance our business. RWE Innogy is expected to invest a total of about 1 billion in the expansion of renewable energy from 2014 to 2016.
> By the end of 2013, RWE Innogy was operating generation facilities with a total net installed capacity of 2.9 GW. This figure should rise to 3.4 GW during the current year.
> Thanks to efficiency enhancements and new generation capacity, RWE Innogys earnings will improve. The operating result will be moderately higher year on year.
3,03,5
2,5
4,0
8,0
11,0
9,010,0
2013Actuals
2015Plan
2016Plan
2014Budget
Capacity (in GW)
Production (in TWh)
Operating Result (in m)
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PAGE 11RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy delivers into RWEs future picture, focusing on being the trusted partner for a sustainable future
RWE Innogy is part of the solution
Providing sustainable energy to our customers and RWEs portfolio
Delivering services around sustainable energy in capex light models
Creating local acceptance through Green Gecco and other local partnerships
Supporting retail OpCos through delivering services to their partners
To be a trusted partner for competitive renewable energy.
RWE Innogy we deliver value in renewable energies as a trusted and
reliable partner to our stakeholders and society, leveraging capex light solutions through our highly knowledgeable and
motivated employees.
Vision
Mission Statement
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
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PAGE 12RWE Innogy | Factbook Renewable Energy 30/04/2014
Germany plays an important role both in today'sasset base and growth ambitions
RWE Innogy activities in Germany> RWE Innogy's headquarter located in Essen; offices
in Hamburg and Hannover > One of the leading German onshore wind farm
operators> First offshore wind park under construction> 46 run-of-river and storage plants along
the rivers Mosel, Saar, Rhine and Ruhr> Biomass and biogas plants in operation
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Hydro plantsSolar sites
Biogas plantsBiomass plants
RWE Innogy assets Germany
Onshore wind sites
RADAG
Mosel/Saar/Nahe (20 plants)Kirf
Nordsee Ost
Ruhr/Diemel (9 plants)
Offshore wind sites
Jchen
Eifel (6 plants) Sieg (2 plants)
Ruhr/Lippe (4 plants)
Grevenbroich Neurath
Titz
5 Riepsdorf6 Lasbek7 Grebbin8 Cuxhaven9 Seedorf10 Regesborstel11 Breetze12 Putlitz13 Rthnick14 Reeum15 Schneverdingen16 Twistringen 17 Calle18 Eicklingen
Sassenberg
Krokhorst
Elisabethfehn
Lengerich
Gterglck
Siegen Wittgenstein
1
23
46
5
78
KrusemarkMaterhausen
1 Hrup2 Friedrichgabekoog3 Sderdeich4 Sommerland
GethsemaneDransfeld
19 Zicherie20 Barbecke21 Messingen22 Stemwede23 Welver24 Lichtenau25 Elisenhof 26 Wnkhausen27 Grevenbroich28 Urfeld29 Sechtem30 Bullay Mosel31 Bingen32 Halle
9 10 11 1213
14 15
16 17 18
1920
21 22
23 2425
2627
29
32
28
30 31
1) Table shows electrical capacity respectively equivalent electrical capacity only. 2) Includes only biogas used directly in power generation.
(Accounting view + PPA as at Q4 2013, Biomass as at Q1 2014)
Capacity (MWel)1)In
operationUnder
construction
Wind onshore 479 26
Wind offshore 295
Biomass 5
Biogas 12) 3
Hydro 377
Solar 1
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PAGE 13RWE Innogy | Factbook Renewable Energy 30/04/2014
14
27
25
9
RWE Innogy has a significant track recordand a strong position in the UK
Capacity (MWel)In
operationUnder
construction
Wind onshore 4601) 39
Wind offshore 4022) 346
Biomass 533)
Biogas
Hydro 74 4
Solar
1) Of the onshore capacity of 460 MW, 245 MW Innogy wholly owned assets and 196 MW of Zephyr assets and 19 MW of Green GECCO assets. 2) Of the offshore capacity of 402 MW, 342 MW is wholly owned by RWE Innogy. 60 MW offshore capacity is owned by Zephyr and is 100% contracted to RWE npower through a PPA.3) Markinch has been operating since March 2014.
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Hydro plants Onshore wind sites Offshore wind sites
RWE Innogy assets UK RWE Innogy activities in UK> Operational wind and hydro power assets of RWE
npower renewables and the companys share of the Zephyr portfolio wind farm projects
> Pipeline of onshore wind, offshore wind and small scale hydro projects at various stages of development and construction
> Markinch biomass project under construction3)> RWE Innogy UK headquarters based in Swindon
Bryn Titli
Taff Ely
Hameldon Hill
Kirkby MoorLambrigg
Little Cheyne Court
Trysglwyn
Carno
The Hollies
Tow Law
Rhyl Flats
Gwynt y Mr
Llyn Alaw
Blantyre
Windy Standard
Braevallich
Garnedd
Dolgarrog
Douglas Water
Dulyn
Cynwyd
Inverbain
Cia AigGarry Gualach
Garrogie
Kielder
Selset
North Hoyle
Greater Gabbard
Biomass plants
1 Burgar Hill 2 Bilbster3 Causeymire4 Maldie 5 Inverlael6 Novar II 7 Black Rock8 Novar
1
234
5 678
9 Farr10 Rivere11 Carnoch12 Beinn Ghlas13 An Suidhe14 Markinch15 Stanley Mills 16 Lochelbank
Auchtertyre
1011
1213
16
17 Middlemoor18 Hellrig19 Kiln Pit Hill20 Knabs Ridge 21 Goole 22 Lindhurst23 Bradwell
17
18 19
2021
23
24 Cym Dyli25 Mynydd Gorddu26 Ffynnon Oer27 Cwm Croesor28 Bears Down 29 Glen Tarbert
26
22
28
15
2427
(Accounting view + PPA as at Q4 2013)
29
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PAGE 14RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy is present on the Iberian Peninsula
RWE Innogy assets Iberia RWE Innogy activities in the Peninsula> RWE Innogy is present in Spain and Portugal
through its subsidiaries: RWE INNOGY AERSA (Spain) INVESTERG (Portugal)with onshore wind, hydro and solar technologies
Chomba de Plgano
Bulgueira
Vales
Bragado
Covas do Barroso
Ribadouro
Sirigo
Pinhel
Siglos
Bancal
Lanternoso
Cepeda
La Mora
Aldehuelas
Acampo Armijo
Plana La BalsaPlana de Zaragoza
Los Labrados
Bosque Alto
Ro Gllego
Plana Maria
Muel
Luna
Urano
Grisel I-II
Juno
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Hydro plants Onshore wind sites
Guilhado
VillalgordoCapacity (MWel)
Inoperation
Underconstruction
Wind onshore 447
Wind offshore
Biomass
Biogas
Hydro 28
Solar 71)
Agilde
1) Pro-rata. 50 MW Andasol 3 Concentrated Solar Power. RWE Innogy and RheinEnergie jointly hold 25.1% of the shares via a holding company (RWE Innogy: 51%, RheinEnergie: 49%).
(Accounting view + PPA as at Q4 2013)
Andasol 3 1)
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PAGE 15RWE Innogy | Factbook Renewable Energy 30/04/2014
Capacity (MWel)In
operationUnder
construction
Wind onshore 197
Wind offshore
Biomass
Biogas
Hydro
Solar
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Onshore wind sites
RWE Innogy assets Poland
Piecki
Suwalki
Taciewo
Tychowo
Krzcin
RWE Innogy activities in Poland> RWE Innogy present in Poland through its
subsidiary RWE Renewables Polska with offices in Warsaw, Szczecin and Suwaki
> Focus on onshore wind > RWE Renewables Polska one of the Top 5
investors in Poland (concerning installed capacity)> Pipeline of onshore wind projects at various stages
of development
RWE Renewables Polska is one of the leading wind farm operators in Poland
Nowy Staw I, stage 1
(Accounting view + PPA as at Q4 2013)
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PAGE 16RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy has entered the Italian market through a subsidiary since 2008
Capacity (MWel)In
operationUnder
construction
Wind onshore 67
Wind offshore
Biomass 19
Biogas
Hydro
Solar
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Onshore wind sites
RWE Innogy assets Italy
Biomass plants
San Basilio
Ururi
Anzi
Enna
RWE Innogy activities in Italy> RWE Innogy entered the Italian market in 2008 > First wind farm in operation during 2010> One major biomass plant in Sicily > RWE Innogy Italia headquarters is located in Bolzano,
offices in Milano and Enna
(Accounting view + PPA as at Q4 2013)
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PAGE 17RWE Innogy | Factbook Renewable Energy 30/04/2014
Capacity (MWel)In
operationUnder
construction
Wind onshore 214
Wind offshore
Biomass
Biogas
Hydro
Solar
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
RWE Innogy activities in Netherlands> Active in the onshore wind energy field for a
quarter of a century> Wind farm Westereems with a capacity of 156
MW was realised in 2008. In 2012 two further turbines, each with a capacity of 6.15 MW, were realised in the middle of wind farm Westereems
> The Dutch area management for onshore wind is located in Zwolle
RWE Innogy is active in the wind energy field in the Netherlands for a quarter of a century
Onshore wind sites
RWE Innogy assets Netherlands
De Beitel HeerlenHalsteren
Scheemda, Harkstede
Spijk
Westereems
Pieterburen
Zuidermeerdijk
Westermeerdijk
Volkerak
Sabinapolder, Dintelmond
Karolinapolder
(Accounting view + PPA as at Q4 2013)
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PAGE 18RWE Innogy | Factbook Renewable Energy 30/04/2014
Renewable Technologies
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PAGE 19RWE Innogy | Factbook Renewable Energy 30/04/2014
Overview of technologies in RWE Innogys main focus
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Criteria>Pioneer phase>Industry is making substantial
progress
>Very mature
>UK: growing>Germany, Netherlands, Belgium:
emerging
>Mature
Core countries:>UK, D: mature, limited potential>F, E, P: mature, ltd. potential>SEE: growing,significant potential
>Partnerships share risk and expertise
>UK, Netherlands, Germany, Poland, Spain, Italy
>UK market for small hydro enjoys high support schemes
>Small to medium(20 200 MW)
>Average size 1 to 10 MW and all types
>Partly fragmented markets
>Small to medium(5 65 MW)
>100k 750k ton/a pellet plant
>Large (500 1,000 MW)
35 40% 25 30% 50%80-90%
>Mature
Wind Offshore Wind Onshore Biomass Hydro
Maturity oftechnology
Markets
Specialities
Size of projects (capacity)
Approx. load factor
>Germany, UK, Italy >USA (upstream pellets)
>Market for fuel supply >Sustainability
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PAGE 20RWE Innogy | Factbook Renewable Energy 30/04/2014
Wind Offshore Wind Onshore Biomass Hydro
Wind Offshore
PAGE 20RWE Innogy | Factbook Renewable Energy 30/04/2014
New Technologies andResearch & Development
Innogy VentureCapital GmbH
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PAGE 21RWE Innogy | Factbook Renewable Energy 30/04/2014
Europe clearly leading the pack in offshore wind energy
> At the end of 2013, there are 8,200 MW of offshore wind energy capacity installed world-wide. Thereof, 708 MW of the capacity was installed in China, mainly in shallow intertidal areas, and 52 MW in Japan, mostly near-shore.
> With 7,590 MW installed capacity, Europe is the world leader in offshore wind by far.
> In total 1,400 MW of offshore was commissioned in 2013, which is less than expected. Reason was delays with grid connection for two German projects. Ongoing policy reform and uncertainty put the European offshore market under lots of stress. In 2014 it is expected that about 2,400 MW of new capacity will be added in Europe. Most of the new capacity is going online in Germany and the UK, some capacity is build in Belgium.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Source: Bloomberg New Energy Finance March 2014.
Total offshore wind capacity in Europe year-end 2013 (in MW)
UK4,340 (57%)
Denmark1,480 (19%)
Sweden240 (3%)
Belgium660 (9%)
Germany590 (8%)
Netherlands247 (3%)
2013:7,590 MW
Other47 (1%)
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PAGE 22RWE Innogy | Factbook Renewable Energy 30/04/2014
1.8 1.7 1.8 2.0 2.5 3.6 3.5 4.9 6.0 7.3 8.6 9.5 10.8 12.3 13.8 15.2
Offshore wind market in Europe to grow by 21.3% p.a. until 2020, representing 16.5% of the wind market
Share of offshore in total wind (in %)
T
o
t
a
l
i
n
s
t
a
l
l
e
d
c
a
p
a
c
i
t
y
(
G
W
)
0,7 1,8 3,0
6,37,6
10,0
12,6
29,7
24,8
0,8 1,01,3
17,020,7
3,2
14,7
0
4
8
12
16
20
24
28
32
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
0,0
0,6
1,2
1,8
2,4
3,0
3,6
4,2
4,8
5,4
6,0Total installed capacity (GW)Newly installed capacity (GW)
Newly
installed
capacity
(GW
)European offshore windCAGR 2012 20: 21.3%
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
> The share of offshore is expected to reach16,5% in 2020 as onshore growth slows downin Europe.
> Growth in offshore is mainly driven by:
- Regulatory support (political targets & remuneration schemes)
- Strong pipeline of projects
- Technological developments addressing the still existing challenges
Offshore wind installed capacity development in Europe, 2005 2020
Source: Bloomberg New Energy Finance March 2014.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 23RWE Innogy | Factbook Renewable Energy 30/04/2014
The major growth markets in EU for offshore wind are UK and Germany
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Wind speed m/s
> 9
8.0 9.0
7.0 8.0
5.5 7.0
< 5.5
Wind offshore growth potential to reach NREAP targets Natural offshore wind conditions (at 50 m height)
N
e
w
i
n
s
t
a
l
l
a
t
i
o
n
2
0
1
0
2
0
(
G
W
)
UK
Germany
Source: European Wind Atlas, copyright by Ris National LaboratorySource: RWE analysis based on National targets (NREAPs)
Share in accumulated capacity 2020
0% 5% 10% 15% 20% 25% 30% 35%
10
8
Spain
United Kingdom
Netherlands
Poland
6
Italy
4Ireland
2
0
14
12
Germany
France
DenmarkBelgium
Total capacity in 2020 [MW]
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 24RWE Innogy | Factbook Renewable Energy 30/04/2014
Turbines dominate cost of wind projectsRWE Group | RWE Innogy | Renewable Technologies | Political Framework
(in % of total capex)(in % of total capex)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Turbine Foundations Grid & Electrical Other0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Turbine Foundations Grid/Other
Capex split offshore wind farm (UK example) Capex split onshore wind farm (UK example)
> For both on- and offshore projects, wind turbines dominate the capex split appropriate turbine prices are thus crucial foran 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 costSource: RWE Innogy.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 25RWE Innogy | Factbook Renewable Energy 30/04/2014
Wind Turbines> Increasing turbine sizes (6 MW+) reduce costs per installed MW> More intensive competition among turbine manufacturers reduces turbine prices> Leaps in technology (e.g. direct drive technology) increase turbine reliability and reduce
unplanned maintenance activities> Increased turbine reliability reduces number of unplanned offshore service activities
Foundations> Serial production of foundations leads to reduced prices and faster production> Optimised designs for various foundations types (monopiles, jackets, gravity foundations etc.)
reduce prices (e.g. due to less steel requirements) > Alignment of German industry regulations with international regulations would lead to
significant reductions of foundation costs (e.g. due to less strict requirements regarding steel thicknesses)
Operation & Maintenance> Increased in-house activities regarding O&M for offshore wind farms will partly or fully replace
costly O&M contracts with turbine manufacturers> Geographical clusters for offshore wind farms (e.g. off the coast of North Wales: North Hoyle,
Rhyl Flats, Gwynt y Mr) create synergies for O&M activities> Increased rated power of turbines means a reduced number of turbines to be maintained
without reducing the capacity of the wind farm
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Cost reductions to be expected for offshore wind Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 26RWE Innogy | Factbook Renewable Energy 30/04/2014
Technology, supply chain and changes in turbine have an enormous cost reduction potential
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Source: Prognos AG, The Fichtner Group, 2013.
Financing costsSupport structure
InstallationOperation & Maintence
Contingency absolute*Transformer station
DecommissioningCertification & Approval
9.6%5.5%
3.6%
0.9%
0.2%0.4%
32%
InvestmentO & M
OtherTurbine
Total
0.8%
Decommissioning
1.6%
1.8%
Financing & Risk
5.4%
* Contingency for risk during projects implementation (weather, delayed delivery, grid connection etc.)
> More than a half of the total cost reduction potentials can be attributed to investment costs> The reduction of operation and maintenance costs as well as a decreased cost of capital offer the largest individual potentials
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PAGE 27RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy focus: Offshore wind is an engineering skill & scale game
European Market Features> Maturing technology with high rate of innovation,
but limited track record> Main growth countries are Germany and the UK
> Few suppliers with proven technology> Technology with relatively high generation cost per MWh but existing support
mechanisms provide attractive remuneration> Large scale projects often funded through partnerships models
Opportunities> Wind resource better than onshore (load factors 35%+)> Attractive growth opportunities & industrial scale projects> Technology progress with significant cost reduction potential> Strong political support reduces regulatory risks
Challenges> Tight supply situation across the value chain> Relative to onshore wind, high maintenance risks far out at sea:
safety, costs, access, technology> Limited best practice track record available make it a skill game
RWE Innogy Strengths> Secure key value chain technologies (e.g. turbines, vessels)> Build large-scale power plants > Strong in-house know-how
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 28RWE Innogy | Factbook Renewable Energy 30/04/2014
Offshore wind power:RWE Innogy has strong starting position in the UK
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
United Kingdom402 MW1)
Offshore wind capacity
RWE Innogy presence1) Of the offshore capacity of 402 MW, 342 MW is wholly owned by RWE Innogy. 60 MW offshore capacity
is owned by Zephyr and is 100% contracted to RWE npower through a PPA. 2) Total capacity 90 MW. 50.1% ownership RWE Innogy. 3) Total capacity 504 MW. 50% ownership RWE Innogy. 4) Total capacity 576 MW. 50% ownership RWE Innogy.
Markets and operationsTechnology & markets> Growing market: 6.5 GW5) installed offshore
wind capacity in EU-27 in 2013> Strong market growth in medium to long term
Time horizon depends on technical progressand development of approval procedures
> Significant technological challenges remain especially in offshore foundations and structures
> Trends: technical hurdles overcome, allocationof attractive sites, development of projects, M&Aof projects
RWE Innogy's assets(Accounting view + PPA as at Q4 2013)> 402 MW1) offshore wind farm (North Hoyle, Rhyl
Flats2), Greater Gabbard3)) in operation and 346 MW (Gwynt y Mr4)) under construction in UK and 295 MW (Nordsee Ost) under construction in Germany
> Pro-rata view: 27% stake in Belgian offshore wind project Thornton Bank (325 MW)
5) Source: EWEA, The European offshore wind industry key trends and statistics 2013, January 2014.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 29RWE Innogy | Factbook Renewable Energy 30/04/2014
Overview of RWE Innogy's offshore wind projects in Germany, UK, Belgium and the Netherlands
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
In operation
North Hoyle1), UK, 60 MW:Completely commissioned 2004
Thornton Bank I-III3), BE, 325 MW:Completely commissioned 2013
Rhyl Flats2), UK, 90 MW:Completely commissioned 2009
Under construction In development
Nordsee One,GER, 996 MW
Galloper6), UK, 500 MW
Tromp Binnen, NL, 300 MW
Dogger Bank7), UK, 9000 MWGwynt y Mr5),
UK, 576 MW
Nordsee Ost, GER, 295 MW
Greater Gabbard4), UK, 504 MW:Completely commissioned 2012
1) RWE Innogy (33%), owned by Zephyr Investments Ltd., 2) RWE Innogy (50.1%), Greencoat UK Wind PLC (24.95%), Green Investment Bank (24.95%),3) RWE Innogy: 27% share in C-Power consortium, 4) RWE Innogy (50%), Scottish and Southern Energy (50%), 5) RWE Innogy (60%), Stadtwerke Munich (30%), Siemens (10%), 6) RWE Innogy (50%), Scottish and Southern Energy (50%), 7) RWE Innogy (25%), Scottish and Southern
Energy (25%), Statoil (25%), Statkraft (25%).
Triton Knoll, UK, 1200 MW
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PAGE 30RWE Innogy | Factbook Renewable Energy 30/04/2014
Details of RWE Innogys offshore wind projects currently under construction
1) 60% ownership RWE Innogy, Stadtwerke Munich (30%), Siemens (10%).2) Depends on availability of grid connection. 3) RWE Innogy has a 27% share in the C-Power consortium.
Nr.WindFarm Size
Distance to shore Water depth First generation
1 Gwynt y Mr1) 160 x 3.6 MW Siemens turbines (576 MW), 124 km2
13 km off the coast of North Wales
12 28 mdepth
First generation in 2013,full generationin 2014
2 Nordsee Ost 48 x 6.15 MW REpower turbines (295 MW), 34 km2
32 45 km offshore
22 26 mdepth
First generation in 2014, full generation in 20152)
Examples of offshore wind projects
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Gwynt y Mr
Nordsee Ost
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PAGE 31RWE Innogy | Factbook Renewable Energy 30/04/2014
OLC1) operates two installation vessels for constructing offshore wind farms for RWE Innogy
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Overview
> Construction of two self propelled Jack-up vessels
> Especially designed for turbinesin the 5 to 6 MW class and deepwater environment: possibility to be usedin water depth > 45 meters (using leg extensions)
> Less exposed to weather conditions
> Names of the vessel linked to RWEs history. RWE Innogy names the vessel Friedrich Ernestine and Victoria Mathias
1) OLC (Offshore Logistics Company ) GmbH is a provider of planning and construction services for installation of offshore wind farms. OLC is a subsidiary of RWE Innogy GmbH.
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PAGE 32RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 32
Wind Onshore
Wind Offshore Wind Onshore HydroInnogy VentureCapital GmbH
New Technologies andResearch & DevelopmentBiomass
RWE Innogy | Factbook Renewable Energy 30/04/2014
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PAGE 33RWE Innogy | Factbook Renewable Energy 30/04/2014
The world market for wind energyN
ewly
installed
capacity
(GW
)T
o
t
a
l
i
n
s
t
a
l
l
e
d
c
a
p
a
c
i
t
y
(
G
W
)
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Installed global wind power capacity (in GW)
Top 10 with > 80% of newly installed capacity (in MW) Top 10 with > 84% of total installed capacity (in MW)
0
4.000
8.000
12.000
16.000
20.000
CN DE IN UK CA USA Brazil PL SE RO
2011 2012 2013
010.00020.00030.00040.00050.00060.00070.00080.00090.000
100.000
CN USA DE ES IN UK IT FR CA DK
2011 2012 2013
Source: BTM Consult World Market Update 2013 (March 2014).
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
0
20
40
60
80
0
100
200
300
400
500
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e
Total installed capacity (GW)Newly installed capacity (GW)
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PAGE 34RWE Innogy | Factbook Renewable Energy 30/04/2014
Onshore wind in Europe: Steady path for solid growth
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Onshore wind installed capacity development in Europe, 2005 2020 > Installed capacity in Europe has grown by 13.9% p.a. since 2005, corresponding to an average of 8.4 GWp.a. incremental capacity.
> Moreover, 45% of all new EU installations in 2013 were in just two countries (Germany and the UK), a significant concentration compared to the trend of previous years when installations were increasingly spread across Europe. This is a level of concentration that has not been seen in the EUs wind power market since 2007 when the three wind energy pioneering countries (Denmark, Germany and Spain) together represented 58% of all new installations that year.
> Steady path for solid growth European onshore wind expected to increase
installed capacity by 6.4% p.a. until 2020 (8.4 GW average annual incremental capacity)
Focus moving to medium sized marketswhich will grow faster
Medium- to long-term growth is expected to slow down due to increased saturation of large markets and worsening of regulation
T
o
t
a
l
i
n
s
t
a
l
l
e
d
c
a
p
a
c
i
t
y
(
G
W
)
0
20
40
60
80
100
120
140
160
180
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
3
4
5
6
7
8
9
10
11
12
Total installed capacity (GW) Newly installed capacity (GW)
Newly
installed
capacity
(GW
)European onshore windCAGR 2012 20 6.4%
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Source: Bloomberg New Energy Finance March 2014,EWEA Wind in Power, February 2013.
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PAGE 35RWE Innogy | Factbook Renewable Energy 30/04/2014
Major markets in EU based on size and wind resourcesRWE Group | RWE Innogy | Renewable Technologies | Political Framework
Wind onshore growth potential to reach NREAP targets Natural onshore wind conditions (at 50 m height)
Wind speed m/s
> 7.5
6.5 7.5
5.5 6.5
4.5 5.5
< 4.5
N
e
w
i
n
s
t
a
l
l
a
t
i
o
n
2
0
1
0
2
0
(
G
W
)
Source: European Wind Atlas, copyright by Ris National LaboratorySource: RWE analysis based on National targets (NREAPs)
Capacity CAGR 2010 20
0% 5% 10% 15% 20% 25% 30%
2
0
United Kingdom
Sweden
Spain
16
14
12
18
10
8
6
4
Romania
PortugalPoland
NetherlandsItaly
Ireland
Greece
Germany
France
FinlandBelgium
DK: Installed capacity in 2010 exceeds NREAP 2020 targets
Bubble size: total capacity in 2020 [MW]
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 36RWE Innogy | Factbook Renewable Energy 30/04/2014
2023715586062147
302279269280371448
329681768
16511684
20371865
25992956
26933390
447047724724
82548551
2295910531
IcelandM alta
SloveniaSlovakia
Faroe IslandRussia
LuxembourgSwitzerland
LatviaCyprusCroatia
LithuaniaCzech Republic
EstoniaUkraineFinland
HungaryBulgariaNorway
BelgiumAustria
Rep. o f IrelandGreece
RomaniaTurkey
NetherlandsPolandSweden
DenmarkPortugal
FranceItalyUK
SpainGermany 33730
European wind power continued strong growth in 2013 - still dominated by onshore wind
T
o
t
a
l
i
n
s
t
a
l
l
e
d
c
a
p
a
c
i
t
y
2
0
1
3
(
M
W
)
> In 2013, installed wind power capacity increased by 10.0% to 117,289 MW in EU-27
> New installations in EU-27 amounted to 11,159 MW in 2013 TOP 2 countries Germany (3,238 MW) and UK
(1,883 MW) account for 46% of 2013 installation
> 2013 was a record year for offshore installations, with 1,6 GW of new capacity grid connected. Offshore accounted for almost 14% of total EU wind power installations in 2013, four percentage points more than in 2012.
Source: The European Wind Energy Association: Wind in power - 2013 European statistics, February 2014.
RWE Innogy presence in wind power as of Q4 2013
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 37RWE Innogy | Factbook Renewable Energy 30/04/2014
Support & Restrictions> Repowering bonus in current (2012) EEG is attractive from an economic perspective, but ...> ... height restrictions and spacing requirements do not allow harvest of the full potential in Germany
In mature markets such as Germany repoweringcan play a key role for growth
Note: Repowering of Simonsberg Wind Farm: number of turbines reduced from 11 to 3 capacity increased from 5.5 MW to 15 MW full load hours up from 2,545 h/a (29%) to 3,200 h/a (37%) annual energy yield increased from 14 mn kWh to 48 mn kWh (Source: BWE).
Increased energy yieldIncreased turbine size and improved technology leading to> Higher installed capacity on same area of land> Improved load factors (higher utilisation and larger
rotor diameter)> Reduced operating costs> Improved power grid integration since modern turbines
have variable speeds and voltage control
> Reduced number of wind turbines leadingto enhancement of natural landscape
> Reduced flicker effect as larger turbinesrotate at much lower speed
Reduced environmental impact
Simonsberg Wind FarmBEFORE repowering
Simonsberg Wind Farm AFTER repowering
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 38RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy focus:Onshore wind is a must-have for fast growth
European Market Features> Mature technology but still room for innovation> Significant capacities installed in Western Europe
still with attractive growth and repowering potential
> Trend towards M&A driven consolidation> Many turbine suppliers available with long-term track record> Turbine supply turning from supplier- to customer-driven market
Opportunities> Support schemes in most European countries still promote growth> Low cost and fast construction of significant capacity1)
Challenges> Intense competition for best wind sites> Large project pipelines necessary due to
regulatory risk associated with building consent> Partly challenging regulatory environment
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> Large realisable project pipeline> Flexible partnering approach
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
1) In comparison to other renewable energy technologies.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 39RWE Innogy | Factbook Renewable Energy 30/04/2014
Onshore wind power is a key elementin RWE Innogy's growth strategy
Onshore wind capacity
RWE Innogy presence
1) 460 MW onshore = 245 MW Innogy wholly owned assets + 196 MW of Zephyr assets + 19 MW of Green GECCO assets. 2) Source: The European Wind Energy Association: Wind in power - 2013 European statistics (February 2014).
Markets and operationsTechnology & markets> Relatively mature markets especially in Germany
and Spain> 117 GW2) capacity installed in EU-27 as of 2013
High maturity of technology Power generation costs competitive
with conventional energy sources> Still attractive growth rates & repowering potential
in mature markets> Trend: consolidation through M&A
RWE Innogy's assets(Accounting view + PPA as at Q4 2013)> 1,863 MW onshore wind farms in operation and 65
MW under construction
United Kingdom460 MW1)
Germany479 MW
Spain447 MW
Netherlands214 MW
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Poland197 MW
Italy67 MW
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 40RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
RWE Innogys flag ship onshore wind projectsin its core markets (1/2)
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Wind farm Titz
Location> In the RWE lignite mining region (Rheinisches Revier),
35 km west of Cologne
Technical data> Installed capacity: 20 MW> 10 wind turbines REpower, type MM92-Evolution a 2 MW> Rotor diameter: 92.5 m> Tip height: approximately 150 m> Start-up: 3rd quarter 2012
Wind farm Westereems
Location> In Eemshaven, Province of Groningen / NL
Technical data> Installed capacity: 156 MW> 52 wind turbines type E82 a 3 MW from Enercon> Rotor diameter: 82 m> Tip height: approximately 140 m> Start-up: 1st quarter 2009> In the middle of wind farm Westereems two wind turbines type 6M from
Repower, each with a capacity of 6.15 MW
Neues Bild / Neue Bilder
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PAGE 41RWE Innogy | Factbook Renewable Energy 30/04/2014
Wind farm Suwalki
Location> In Masuria/Poland, approx. 50 km to the Lithuania
frontier
Technical data> Installed capacity: 41.4 MW> 18 wind turbines type SWT 2.3 a 2.3 MW from
Siemens> Rotor diameter: 92.6 m> Tip height: approximately 150 m> Start-up: 4th quarter 2009
Wind farm Las Planas
Location> Located 12 km in the south of Zaragoza/Spain on
the plateau Plana de Zaragoza> 600 m above sea level
Technical data> Installed capacity: 90 MW> 120 wind turbines a 750 kW> Hub height: 55 m> Rotor diameter: 48 m> Full load hours round about 2,600 h/a (load factor of
30%)> Start-up: February 2002
Location> Located in the Molise region, south of Italy, approx.
20 km from the coast> 130-280 m above sea level
Technical data> Installed capacity: 26 MW> 13 wind turbines Vestas V-90 a 2 MW> Hub height: 80 m> Rotor diameter: 90 m> Full load hours round about 2,130 h/y (load factor
approx. 25%)> Start-up: December 2010
Wind farm Ururi
RWE Innogys flag ship onshore wind projectsin its core markets (2/2)
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH RWE Group | RWE Innogy | Renewable Technologies | Political Framework
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PAGE 42RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 42
Biomass
Wind Offshore Wind Onshore Biomass HydroInnogy VentureCapital GmbH
New Technologies andResearch & Development
RWE Innogy | Factbook Renewable Energy 30/04/2014
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PAGE 43RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy focus:Biomass is a viable option for green capacity
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Opportunities> Key advantage over other renewable technologies: ability to operate at high
utilization rates and to generate base load electricity> Biomass potential not yet exploited; additional growth in large scale conversion
and co-firing > Efficiency improvements of existing facilities possible through extensions and
modifications
Challenges> Feedstock represents 25 40% share of full costs, but cannot
be effectively hedged: strong position in feedstock supply is crucial> Only limited scalability of power plants when feedstock sourced locally, as
availability and logistic cost issues limit growth potential> Securing sustainability of biomass fuel sourcing especially for commodity pellets
business
RWE Innogy Strengths> Access to partners such as municipalities and industry through RWE Group is a key success factor in
CHP business> Ensuring high operational availability in the long-run through preventive maintenance> Large scale, sustainable, industrial pellet production capacity to supply RWE groups biomass fuel
requirements for converted power plants and co-firing coal plants
European Market Features> Efficient generation of combined heat and power (CHP): Supply of heat,
process steam, electricity, compressed air and cooling energy> Solid biomass plant technology is mature and guarantees a stable
performance and base load renewable source> Solid biomass as main fuel is becoming a globally traded commodity
> Focus on integrated biomass business based on diverse sources such as fresh and residual wood, energy crops and pellets
> Favorable regulatory support in most European countries as biomass is expected to contribute significantly to EU renewable targets
> Key markets are the UK, Italy and Germany with upstream supply from USA
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 44RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy will focus on asset optimization until planned disposal
Biomass capacity
RWE Innogy presence
Markets and operationsTechnology & markets> Biomass enjoys favorable regulatory support in most European
countries and is expected to contribute significantly to the EU renewable energy targets
> Solid biomass plant technology is mature and mainly used for distributed power generation
> Economic feasibility of projects strongly depends on access to feedstock which accounts for 25-40% of production costs
> Utilization of CHP (combined heat and power) generation elevates efficiency and profitability (critical in some markets)
RWE Innogy's assets (Accounting view + PPA as of Q1 2014) > RWE Innogy is a centre of biomass competence within RWE Group
thus supporting the business > 90 MWel biomass/CHP capacity in operation across Germany, UK and
Italy> 750 kt of industrial pellet production for co-firing and converted power
plants in the USA> 100 kt per year of residential pellet capacity in Germany> The biomass project, in Enna, Sicily, has been completed. The 18.5
MW plant has been online since the middle of 2013> We are currently focusing on the completion of a biomass-fired power
station with combined heat and power technology at Markinch1) in Scotland
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Germany5 MWel / 25 MWth
USA750 000 ton/a pellets
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Italy:18.5 MWel
UK53 Mwel / 88 MWth1)
1) Markinch has been operating since March 2014.
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PAGE 45RWE Innogy | Factbook Renewable Energy 30/04/2014
Example: Biomass-fired CHP plant in Wittgenstein
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Overview
Purpose of plant> Provision of process steam to pellet factory,
electricity is fed into the grid
Main components> Grate-fired furnace by Weiss> Steam turbine by TGM
Technical details> Electrical capacity of turbine: 5 MWel> Thermal capacity: 25 MWth> Steam capacity: 30 t/h> Heat supply of up to 17 MWth
Fuel input> Biomass fresh wood, 90,000 t/a air dry
Status quo> Operational
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 46RWE Innogy | Factbook Renewable Energy 30/04/2014
Example: Georgia Biomass pellet plant
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Overview
Purpose of plant> Annual production of 750,000 tons
of industrial wood pelletsMain components> Wood yard> Chipper and dryer> Pelletiser and Cooling> Rail and shipping logisticsSite details> Staff : 80 employees> Site size: > 120 hectares> Storage capacity 50,000 tons
(in Savannah harbour)Raw Material input> Southern Yellow Pine from Georgia> Annual consumption of
1,5 million ton of virgin wood> Raw material supply fully certified (SFI, FSC)
for sustainability> GHG emissions footprint meets EU targetsStatus quo> Operational
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PAGE 47RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 47
Hydro
Wind Offshore Wind Onshore Biomass HydroInnogy VentureCapital GmbH
New Technologies andResearch & Development
RWE Innogy | Factbook Renewable Energy 30/04/20134
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PAGE 48RWE Innogy | Factbook Renewable Energy 30/04/2014
115
5131 25
1,698
737595
430
380
247
102
763
28% unused economical potential
59% unused economical potential
19% unused economical potential
Central Eastern Europe
Hydro: Mature technology with opportunities for small plantsin Western and also larger plants in South-Eastern Europe
EU-15 without Greeceincl. Norway and Switzerland
South-EasternEurope
1) Average values of the following sources: WEC, 2007 Survey of Energy Resources; EUROSTAT; UCTE; Europes hydropower potential todayand in the future, CESR, University of Kassel; Hydropower & Dams World Atlas, 2007.
> More than 300 TWh/year of unused economical hydro power potential in Europe
> Almost two-thirds of the economical potential in South-Eastern Europe is not developed > Some run-of-river opportunities (1 to 10 MW) in UK still unexploited
Current productionEconomically beneficialTechnically accessible
(TWh/year) (TWh/year) (TWh/year)
Hydro power potential1)
Theoretical potential
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 49RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy focus: Hydro power is cost competitive and sustainable
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
European Market Features> Very mature technology> Limited new build potential in Western European markets
> Relatively high utilisation, compared to other renewable technologies
RWE Innogy Strengths> Technology well covered by staff of RWE Innogy with over 100 years experience> Proven economic excellence in sustainable operation> Centralised asset management, decentralised operations and maintenance> Full value chain can be covered in Europe> Portfolio containing combination of peak and base load plants> Regional partnerships established> Ability to coordinate large amount of plants according to demand of international markets> Well developed and maintained project pipeline
Opportunities> Advanced legal system and power trading> Allows for load shaped generation> UK: Currently very attractive FiT schemes> UK: High acceptance of the technology by all stakeholders> Attractive Hydro market in SEE and Turkey creates demand of technical
services
Challenges> UK: Support schemes expected to decrease in future> Marketing of Technical Hydro Power Services
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 50RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy focuses in hydro power on operational excellence, development of small schemes and technical services
Hydro capacity
RWE Innogy presence
Markets and operationsTechnology & markets> Small hydro plants (< 10 MW) expected to have
significant share in future capacity growth in Western Europe
> Most significant growth potential of several GW in South-Eastern Europe and Turkey triggers demand of technical services in the Hydro Power Sector
RWE Innogy's assets(Accounting view + PPA as at Q4 2013)> Hydro power plants with 546 MW in operation> 4 MW under construction
United Kingdom74 MW
Germany377 MW1)
Switzerland23 MW
Portugal16 MW
Spain12 MW
France45 MW
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
1) Pro-rata: RWE Innogys share is 354 MW in Germany.
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Venture Capital
Market presence through local office
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PAGE 51RWE Innogy | Factbook Renewable Energy 30/04/2014
Example: Hydro power plants in operation in Germany
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Hydro power plant Albbruck-Dogern
> Albbruck-Dogern, Baden-Wrttemberg> Kaplan Bulb Turbine> 24 MW electrical generation capacity> 180 GWh annual electricity generation> 50,000 households will be supplied with CO2-
free electricity> Start of operation in December 2009
Hydro power plant Heimbach
> Heimbach, North Rhine-Westphalia> 2 Francis Turbines> 16 MW electrical generation capacity > 25 GWh annual electricity generation> In operation since 1905, modernised
in 1975> Listed building
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 52RWE Innogy | Factbook Renewable Energy 30/04/2014
Example: Hydro power plants in operation in UK
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Hydro power plant Maldie
> Kylestrome, North West Scotland > 2 Francis turbines> 4 MW electrical generation capacity> 15 GWh annual generation> Operational from July 2013> Reservoir stores 670 MWh of water> Developed, built and under operation by RWE
Innogy
Hydro power plant Cwm Dyli
> Capel Curig, North Wales> 1 Francis turbine> 10 MW electrical generation capacity> 12 GWh annual generation> Operational since 1907> Reservoir stores 132 MWh of water> Listed building
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PAGE 53RWE Innogy | Factbook Renewable Energy 30/04/2014 PAGE 53
New Technologies and Research & Development
Wind Offshore Wind Onshore Biomass HydroNew Technologies and
Research & DevelopmentInnogy VentureCapital GmbH
RWE Innogy | Factbook Renewable Energy 30/04/2014
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PAGE 54RWE Innogy | Factbook Renewable Energy 30/04/2014
Solar Thermal Energy - a fascinating way of generating powerCSP Power Plant Andasol 3
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Markets> CSP is a rapidly growing technology> Worldwide new power plants are under construction> MENA region promises to increase CSP plant technology by 60
GW
Technology > Parabolic trough technology> Capacity: 50 MW electrical power output> Location: Southern Spain in the province of Granada> RWE Innogy and RheinEnergie jointly hold 25.1% of the shares
via a holding company (RWE Innogy: 51%, RheinEnergie: 49%)> Construction started in March 2009, connection to
the grid and first electricity production in autumn 2011 > Thermal storage using Molten Salt technology with a capacity of
1,010 MWh allows 8 further hours of electricity production even at night or in times the sun is not shining
> Contrary to PV a CSP plant with thermal storage is dispatchable
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 55RWE Innogy | Factbook Renewable Energy 30/04/2014
Biogas one of the most efficient waysto use biomass for power & heat generation
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
> Gterglck, Saxony-Anhalt> Gas treatment and feed-in into the gas grid> 6.7 MW thermal capacity > 52 GWh annual biomethane output, equivalent
to 21 MWhel> CO2-emission avoidance of 15,000 ton per year> In operation since Q3 2009
Biogas plant Gterglck (feed-in of biomethane)Technology & markets> Use of alternative substrates to maize
(manure, new energy crops)> Biogas plant technology is adapted to the agriculture area> Biogas upgrading and biomethane feed-in > Digestate conditioning and fertilizer production> Cooperation with farmers and strategic market players
RWE Innogy's assets (Accounting view + PPA as at Q4 2013 )> RWE Innogy GmbH bundles biogas
competencies within RWE Group> 0.7 MWel biogas CHP and 6.7 MWth biomethane feed-in into the gas
grid in operation (in total 4 MWel CHP capacity)> In 2013 the construction of biogas plant Bergheim Pfaffendorf
started> Current development of an innovative biogas concept
based on manure only, in cooperation with regional farmers association (Project Velen)
Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 56RWE Innogy | Factbook Renewable Energy 30/04/2014
New Technologies and Research & Development
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
Comprehensive R&D drivers
> Profitability for most renewable energies still based on the regulatory recognition of environmental impact of conventional energy sources
> Maturity of most conversion technologies not yet on equal level with conventional power plants
> Tapping of additional potential through new technologies
R&D targets
> Improve profitability of the core businesses byreducing costs and increasing availability
> Allow further growth and opening of new business segments> Develop and sustain know-how> Support the good reputation of the company
Wind On-& Offshore
Biomass &Biogas Hydro
SolarEnergy Marine energy
R&D improves conversion of already established renewable energies,opens up new business segments and assesses alternative technologies
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PAGE 57RWE Innogy | Factbook Renewable Energy 30/04/2014
RWE Innogy sells Green Energy via different products
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
> About 3,000 GWh sold via RWE retail and trading companies in 2013
> Proof by guarantees of origin and TV Sd certification> Use of green power privilege and/or direct sales for EEG
eligible plants in addition to market premium model
Green Energy Products by RWE Innogy
> Market for Green Energy in Germany 2012: more than 4 million customers Strong growth: CAGR 11/12: +30% Substantial added value for new and old generation assets
> Principle of Green Energy Products Delivery of electricity (commodity) together with guarantees of
origin or certificates from a chartered accountant Green Certificates can also be sold separately
> Capabilities of RWE Innogy Fully developed process over all time periods (forward, day-
ahead, intraday, reserves) Close cooperation with RWE Supply&Trading Structuring of customized green products
> Creating additional value by combining assets to virtual power plants delivering firm power and flexibility direct marketing of own and customers EEG eligible plants
> Long term deal with DB AG: Single largest green energy contract in Germany
> Delivery of green energy for e-mobility> Electricity disclosure: RWE Innogy is 100% green supplier
German Hydro Power for Deutsche Bahn
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PAGE 58RWE Innogy | Factbook Renewable Energy 30/04/2014
Virtual Power Plant generates additional asset value
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
900 Megawatt combined in Virtual Power Plant Example: Direct Marketing of Hydro Power
> RWE Innogy switched almost all assets eligible for fixed feed-in-tariffs under German renewables act (EEG) to market based direct marketing scheme
> 900 Megawatt have already been combined in a Virtual Power Plant of RWE Innogy
About 550 megawatt of wind, hydro and biomass plants under direct marketing
About 350 megawatt of large hydro plants which are not eligible for feed-in tariff
Own consumption is covered directly Additional income from sales of ancillary services
> Permanent technical optimization increases value Actual generation of plants is observed real-time Remote control allows for utilisation of flexibilities to
deliver control energy and to take make-or-buy decisions in case of extreme negative prices
Energy forecast optimisation using historical and real-time data minimizes balancing power requirement
> RWE Innogy incorporates also assets of subsidiaries, other companies within RWE group and external customers in the Virtual Power Plant
> RWE Innogy compiles short term power forecasts
> Energy is sold in day-ahead and intraday markets. TSO delivers final deviation as balancing energy
> DSO pays market premium which adds to net income from power sales
> Specific added value varies about time as it depends on forecast accuracy and spreads between power prices
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PAGE 59RWE Innogy | Factbook Renewable Energy 30/04/2014
Innogy Venture Capital GmbH
Wind Offshore Wind Onshore Biomass HydroInnogy VentureCapital GmbH
PAGE 59
New Technologies andResearch & Development
RWE Innogy | Factbook Renewable Energy 30/04/2014
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PAGE 60RWE Innogy | Factbook Renewable Energy 30/04/2014
Innogy Venture Capital is finding and funding energy innovations
IVCPortfolio
Innogy Venture Capital invests in European start-up companies that drive the energy transformation.
About Innogy Venture Capital
With a final closing size of EUR 115 million the currently managed "Innogy Renewables Technology Fund I" is a leading early stage investor in this segment in Europe.The fund's sponsors are RWE Innogy as the main investor and CEE Holding, an investment company of Lampe Bank Group focusing on renewable energy.RWE and Innogy Venture Capital are ranked first in 2013 in the list of the most influential Corporate Venturing utility units.Global Corporate Venturing Magazine
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 61RWE Innogy | Factbook Renewable Energy 30/04/2014
Innogy Venture Capital created a diversified, European portfolio
9
6
3
8
5
12
1
10
7
11
4
2
Innogy Venture CapitalActive investmentExited investment
10
1
2
9
11
4 53
12
7
8
6
RWE Group | RWE Innogy | Renewable Technologies | Political FrameworkWind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH
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PAGE 62RWE Innogy | Factbook Renewable Energy 30/04/2014
Political Framework
-
PAGE 63RWE Innogy | Factbook Renewable Energy 30/04/2014
EU targets a renewable energy share of 20%in gross final energy consumption by 2020
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
>Target of 20% share of renewables in gross final EU energy consumption by 2020, i.e. coveringPowerHeating/coolingTransport
>At least 10% of gross final consumption of energyin transport in 2020 in each country
Gap Target 20202012
Overall share of renewable energy in EU
14.0
20.0
6.0
Source: European Commission; Eurostat; Directive 2009/28/EC; National renewable energy action plans (NREAP); EurObservER 2013.
MaltaLuxembourg
United KingdomNetherlands
BelgiumCyprusIreland
ItalyHungaryGreece
Czech RepublicPoland
GermanySlovakia
FranceBulgaria
SpainLithunia
RomaniaSloveniaDenmark
EstoniaPortugal
AustriaFinland
LatviaSweden
Individual country targets
National target for RES share in gross final energy consumption in 2020 (according to Directive 2009/28/EC)
RES share in gross final energy consumption in 2012 (%), EurObservER estimation
Gap up to target achievement for 2020 based on national RES potential as forecasted by MS (% indicates target achievement as cited in NREAP)
x%
52.4%33.0%34.4%31.9%24.7%27.8%26.3%20.6%21.3%20.8%14.2%17.9%13.7%10.6%12.3%11.1%11.3%12.5%9,8%13.5%7,5%7.0%6.8%4.5%4.2%3.1%3.0% 10%
11%
13%
13%13%
13%
14%
14%
15%
15%
16%
16%
17%
18%
18%
20%23%
23%
24%
25%
25%30%
31%34%
38%40%
49%50.2%40%
38%34.2%
31%
30,4%25,1%
25.3%24%
23%
24%22.7%
19.6%
20.2%
16.15%
18.3%
16%
15.5%
15%
14.5%
15.3%
12.3%
13.5%
13%
13%
8.9%10.2%
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PAGE 64RWE Innogy | Factbook Renewable Energy 30/04/2014
Mechanisms to support renewableenergy generation in Europe
Main types of support mechanism
Characteristics of mechanism: Strength/Weakness:
Quota obligation& tradable certificates
> Electricity suppliers are obliged to have a certain proportion of their electricity from renewable sources
> Renewable Energy Certificate is a tradable commodity proving that certain electricity is generated using renewable energy sources (per MWh)
> Certificates are traded to fulfil renewable obligations
> Renewable power generators receive wholesale market price for generated power plus the value of the certificate
> Forces suppliers to take action to meet their obligation, market based system should drive costs down
> Lack of revenue certainty, cost of administration, failure to support immature technologies
Feed-in tariff
> Renewable energy producersare paid a tariff instead of power price
> Tariffs usually vary dependingon technology, capacity and ageof power plant and are typically limited in time
> Price and investment certainty> Tariff degression can provide
incentives for technology improvements
> Political risk, cost to consumers
Feed-in premium
> Renewable energy producersare paid a tariff in addition to power price
> A wide range of design of feed-in premiums > Tariffs can vary depending
on technology, capacity and ageof power plant and are typically limited in time
> Market based approach , suppliers are obliged to sell their electricity on the market
> Suppliers are opposed to market risks
> Upside potential through direct participation on the market
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Source: EREF Prices for renewable energies in Europe: Feed-in tariffs versus quota systems a comparison, 2011/2012; Map: Fraunhofer ISI 2013. Notes: 1) The patterned colours represent a combination of instruments, 2) Investment grants, tax exemptions and fiscal incentives are not included in this picture unless they serve as the main support instrument, 3) Support scheme moratoria are not taken into account.
Quota obligationFeed-in tariffs
Feed-in premium
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PAGE 65RWE Innogy | Factbook Renewable Energy 30/04/2014
The renewables support framework in Germanyis based on fixed feed-in tariffs
Renewables support in GermanyLegal framework > Feed-in tariff system described in Renewable Energy
Act (Erneuerbare-Energien-Gesetz EEG)
Price mechanism > Regressive, guaranteed feed-in tariff(fixed once installation is commissioned)
> Annual regression; PV quarterly regression depending on capacity extension
Length of mechanism
> Tariffs guaranteed mainly up to 20 years
Value of mechanism
> Fixed tariff: Tariffs varying depending on technology, capacity and location
> Variable tariff: Premium according to Market Premium Model defined in EEG 2012
Other earnings captured
> None
Legislation > EEG 01/01/2012> Amendment PV 01/04/2012
Regulatory outlook > Currently, the EEG is under revision and the political process is still on-going. The new support scheme is expected to come into force on 1/08/2014
Source: RWE on the basis of EEG 2012 BMU 1) Starting fee of 89.3 /MWh for the first 5 years, decreasing to 48.7 /MWh for the next 15 years. Bonuses: 4.8 /MWh system services bonus; 5 /MWh repowering bonus; 2) Starting fee of 150 /MWh for first 12 years or 190 /MWh for first 8 years for installations prior to January 2018, decreasing to 35 /MWh for the next 8 respectively 12 years; 3) 50 /MWh bonus for combination with use of petrothermal technology; 4) Germany remunerates only CHP plants. The FIT is weighted by trance of power, from 143 /MWh for the first 150 kW to 60 /MWh between 5 and 20 MW; bonuses depending on input mixture und tranche of power from 25 /MWh to 110 /MWh. Separate FIT for usage of biowaste (16 /MWh for the first 500 kW and 14/MWh up to 20MW) and for predominant use of slurry (25 /MWh up to 75 kW); 5) FIT of 135 /MWh for plants not installed on buildings up to 10 MW, for plants installed on buildings from max. 195/MWh up to 10 kW to min. 135 /MWh up to 10 MW (including plants installed on noise protection walls).
Existing regime EEG January 2012
Solar PV5)
Biomass4)
Hydro
Geothermal3)
Onshore Wind1)
Offshore Wind2)
Bonus dependent on use of specific technologies/materials or date of installationRemuneration range for different types and sizes
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Feed-in tariff by selected technologies (in /MWh)
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PAGE 66RWE Innogy | Factbook Renewable Energy 30/04/2014
Germany:Wind power support mechanism
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Onshore> Basis tariff of 4.80 ct/kWh1) for a maximum
of 20 years plus year of commissioning> Increased tariff of 8.80 ct/kWh1) for first 5 years for assets achieving at
least 150% of reference yield2), additional0.48 ct/kWh for assets commissioned before January 1, 2015 and additional 0.5 ct/kWh for repowering
> Tariff levels reduce by 1,5% p.a.
Offshore> Basis tariff of 3.50 ct/kWh1)
> Increased tariff of 15.00 ct/kWh for 12 years(or 19.00 ct/kWh for installations before January 1, 2018 for 8 years)
> This period is prolonged by 0.5 monthsfor every nautical mile increase in range above12 nautical miles and it is prolonged by 1.7 monthsfor every metre in water depth in excess of 20 metres
> Tariff levels reduce by 7% p.a. from 2018
1) For assets commissioned in 2013. 2) The reference yield is a yield generated by the reference installation. It is a wind energy converter of a specific type for which a yield at the target installation can be compared
on the basis of a P-V curve (power-wind speed curve), measured by an authorised institution (Frdergesellschaft Windenergie e.V.).
Onshore wind (ct/kWh)
Offshore wind (ct/kWh)
EEG 2012 starting fee EEG 2012 basis fee
8
,
8
0
8
,
6
6
8
,
5
3
8
,
4
1
8
,
2
8
8
,
1
6
8
,
0
3
7
,
9
1
7
,
7
9
7
,
6
8
7
,
5
6
4
,
8
0
4
,
7
2
4
,
6
5
4
,
5
8
4
,
5
2
4
,
4
5
4
,
3
8
4
,
3
2
4
,
2
5
4
,
1
9
4
,
1
2
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
EEG 2012 starting fee EEG 2012 basis feeEEG 2012 acceleration model
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PAGE 67RWE Innogy | Factbook Renewable Energy 30/04/2014
UK: Renewables support framework based on renewable obligations and tradable certificates
Renewables support in UKLegal framework > Renewables Obligation (RO) for projects >5MW
(NB projections Certificate-based, indirect variable subsidy
Length of mechanism > Annual Compliance Periods (CPs),legislation from 2002 until 2037
Value of mechanism > Renewables Obligation Certificate (ROC)outturn value for 2011/12 (CP12) was 42.07/MWh*
Other earnings captured
> Power price (which includes Carbon Price Support tax on fossil fuel generation)
> CCL Levy Exemption Certificates
Future changes in legislation
> Transition from ROC to Contracts for Difference (CfD), starting in 2014 with ROC closing to new projects from 2017
> Grace periods of 12 months for qualifying projects that fail to meet the RO closure deadline of 31stMarch 2017
> From 2027 ROCs to be replaced by Fixed price Certificates, of equal value and with equal eligibility criteria.
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
ROC bands by technology (effective from April 2013)
Technology ROCs/MWhApril 2013
Onshore Wind 0.9
Offshore Wind 2 in 2013 - 15; 1.9 in 2015/16; 1.8 in 2016/17
Hydro 0.7
Dedicated biomass with CHP 1.5 until 31 March 2016; 1.4 from 1 April 2016
Dedicated biomass 1.5 until 31 March 2016; 1.4 from 1 April 2016
Biomass conversion 1
Co-firing of biomass (enhanced) Mid-range (50-85%) 0.6; High-range (>85%): 0.7 in 2013/14 & 0.9 from 2014/15
* The 2012/13 number will be published in April 2014
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PAGE 68RWE Innogy | Factbook Renewable Energy 30/04/2014
UK: Revenues from renewable energy combine market price, ROC purchase and tax incentives
1) Buy-out price is updated each year by Ofgem to reflect changes in Retail Prices Index (RPI).2) Since the size of the buy-out fund is dependent on the volume MWhs for which suppliers fail to redeem ROCs, this value depends upon the obligation target being greater
than the available renewables obligation certificates (in 2010/11 the compliance ratio by ROCs amounted to 72% of the total obligation target).
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Renewables Obligation Certificates (ROC)> A ROC is the green certificate issued for electricity from
eligible renewable source, which is both generated and consumedwithin the UK
> Generators are issued ROCs (which theycan then sell on) for each MWh of eligible electricity generated
Renewables Obligation (RO)> Electricity suppliers are obliged to redeem ROCs or pay
the buy-out price for a proportion of their supply (24.4% in 2013/14 for England, Scotland and Wales and 9.7% for Northern Ireland).A buy-out fee is payable for any shortfall
> Most suppliers purchase ROCs from their generation assets or enter into long-term purchase agreements with independent generators
> In 2010, new RO legislation created a minimum fixed headroom of 10% between ROC generation and suppliers MWh obligation
Wholesale baseloadpower price (variable)
+ Buy-out price (fix)
+ Recycle price (variable)
+ Levy exemption certificates (LECs, fix)
= Total Support
ROC
purch
ase
price
Climate Change Levy (CCL)is an energy tax payable by industrial and commercial consumers since April 2001. Electricity generated from renewables is exempt from CCL (5.41 per MWh April 14 to March 15).
Buy-out price sets rate suppliers need to payif they dont present sufficient ROCs (43.30/ROC forApril 14 to March 15)1).
The proceeds of the buy-out fund are paid backon a pro-rated basis to suppliers that have presented ROCs (recycling mechanism)2).
Support mechanism
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PAGE 69RWE Innogy | Factbook Renewable Energy 30/04/2014
The renewables support framework in Poland
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Renewables support in PolandLegal framework > Green Certificates (GC)
Price mechanism > Certificate-based, indirect variable subsidy
Length of mechanism
> Not specified
Value of mechanism
> Green Certificate (GC) Average certificate price in 2013 (exchange market):
PLN 164.36 ( 39.23) Substitution fee in 2014: PLN 300.03 ( 71.62)
Other earnings captured
> Power price
Future changes in legislation
> The certificate scheme in Poland is currently under revision. The Polish government proposes to base future RES support for large assets on CfD (contract for difference) auctions. The draft law is expected to become effective by end of 2015 or in 2016.
Detailed provisions on the promotion of renewables (Order of 18/10/2012)
Coefficient (GC/MWh) Technologies1.0 All eligible technologies
In Poland producers of renewable power are granted one certificate per MWh. There is no differentiation between renewable technology concerning the number of certificates issued per MWh.
Eligible technologies > Hydro (including large hydro)> Wind> Biomass (including cofiring)> Solar> Biogas> Geothermal
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PAGE 70RWE Innogy | Factbook Renewable Energy 30/04/2014
Poland: Revenues from renewable energy combinemarket price and green certificate value
RWE Group | RWE Innogy | Renewable Technologies | Political Framework
Support mechanism TGE (stock exchange) VAT excluded
Weighted average exchange price for certificates 2013 registered by the TGE
TGE average weighted GC price for 2013
PLN/MWh164.36
(/MWh 39.23)
Green Certificates> Distributors reports the production data of the
renewable plants to the Energy System Authority (Urzd Regulacji Energetyki URE).
> URE issues Green Certificates (GCs) for each MWh of eligible electricity generated.
> The sale of the certificates can be performed either directly to another company (agreed price) or via the green certificates market place at the Polish Power-Exchange (Towar