rwe fact book renewable energy april 2014

Fact Book RWE Innogy GmbH

April 2014

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


RWE Group

RWE 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


Renewable energy in RWE Group today: A leading renewables generation position in Europe


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%


RWE Innogy


Focus on core competences wind and hydro


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


> 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


> 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


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


SpainPortugal

FranceSwitzerland

CzechRepublic

BE

Poland

Italy

DE

Hydro

Onshore wind

Biomass

Offshore wind

UK

NL


Streamlined investments in renewables, concentrating on onshore and offshore wind farms


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)


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



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


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


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.


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


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


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%).


Andasol 3 1)


Capacity (MWel)In

operationUnder

construction

Wind onshore 197

Wind offshore

Biomass

Biogas

Hydro

Solar


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



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


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



Capacity (MWel)In

operationUnder

construction

Wind onshore 214

Wind offshore

Biomass

Biogas

Hydro

Solar


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



Renewable Technologies


Overview of technologies in RWE Innogys main focus


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


Wind Offshore Wind Onshore Biomass Hydro

Wind Offshore

PAGE 20RWE Innogy | Factbook Renewable Energy 30/04/2014

New Technologies andResearch & Development

Innogy VentureCapital GmbH


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%)


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%


> 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


The major growth markets in EU for offshore wind are UK and Germany


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]



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 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


Cost reductions to be expected for offshore wind Wind Offshore | Wind Onshore | Biomass | Hydro | New Technologies and Research & Development | Innogy Venture Capital GmbH


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


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



Offshore wind power:RWE Innogy has strong starting position in the UK


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.



Overview of RWE Innogy's offshore wind projects in Germany, UK, Belgium and the Netherlands


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


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


Gwynt y Mr

Nordsee Ost


OLC1) operates two installation vessels for constructing offshore wind farms for RWE Innogy


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.


Wind Onshore

Wind Offshore Wind Onshore HydroInnogy VentureCapital GmbH

New Technologies andResearch & DevelopmentBiomass



The world market for wind energyN

ewly

installed

capacity

(GW

)T

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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).


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)


Onshore wind in Europe: Steady path for solid growth


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

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(

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)

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%


Source: Bloomberg New Energy Finance March 2014,EWEA Wind in Power, February 2013.


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]



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

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(

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> 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



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 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


1) In comparison to other renewable energy technologies.



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


Poland197 MW

Italy67 MW




RWE Innogys flag ship onshore wind projectsin its core markets (1/2)


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


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


Biomass

Wind Offshore Wind Onshore Biomass HydroInnogy VentureCapital GmbH




RWE Innogy focus:Biomass is a viable option for green capacity


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



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


Germany5 MWel / 25 MWth

USA750 000 ton/a pellets


Italy:18.5 MWel

UK53 Mwel / 88 MWth1)

1) Markinch has been operating since March 2014.


Example: Biomass-fired CHP plant in Wittgenstein


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



Example: Georgia Biomass pellet plant


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


Hydro





115

5131 25

1,698

737595

430

380

247

102

763

28% 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 Innogy focus: Hydro power is cost competitive and sustainable


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



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


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


Example: Hydro power plants in operation in Germany


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



Example: Hydro power plants in operation in UK


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


New Technologies and Research & Development

Wind Offshore Wind Onshore Biomass HydroNew Technologies and

Research & DevelopmentInnogy VentureCapital GmbH



Solar Thermal Energy - a fascinating way of generating powerCSP Power Plant Andasol 3


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



Biogas one of the most efficient waysto use biomass for power & heat generation


> 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)



New Technologies and Research & Development


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


RWE Innogy sells Green Energy via different products


> 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


Virtual Power Plant generates additional asset value


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


Innogy Venture Capital GmbH


PAGE 59




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



Innogy Venture Capital created a diversified, European portfolio

9

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Innogy Venture CapitalActive investmentExited investment

10

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Political Framework


EU targets a renewable energy share of 20%in gross final energy consumption by 2020


>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%


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


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


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


Feed-in tariff by selected technologies (in /MWh)


Germany:Wind power support mechanism


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

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8

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6

6

8

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8

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

EEG 2012 starting fee EEG 2012 basis feeEEG 2012 acceleration model


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*


> 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.


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


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).


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


The renewables support framework in Poland


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)


> 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


Poland: Revenues from renewable energy combinemarket price and green certificate value


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

rwe fact book renewable energy april 2014

Documents

rwe innogy gmbhapril

rwe innogy ownership

rwe energiedienstleistungen

rwe innogypage

rwe grouppage

rwe group renewables

table of contents1 rwe

renewable energy activities