DONG Energy Wind Power NORWEA Finance Seminar Oslo 30 th -31 st January 2013
Long-term vision: To supply reliable energy without CO 2 TODAY'S PRODUCTION FUTURE PRODUCTION 85% 15% 15% 85%
DONG Energy has a strong track record in project execution Country Wind park Total MW gross Vindeby 5 5 Tunø Knob 5 5 DE share (MW) 2010 Middelgrunden 40 20 Turbine and size (MW) Bonus 0.45 Vestas 0.5 Bonus 2.0 1990-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Horns Rev I 160 64 Frederikshavn 10 10 Rødsand/Nysted 166 71 Kentish Flats 90 0 Barrow 90 45 Burbo 90 90 Horns Rev II 209 209 Avedøre 10,8 7,2 Gunfleet Sands I & II 173 87 Walney I & II 1 367 184 Total 1.416 797 Vestas 2.0 Vestas 3.0, 2.3, Nordex 2.5 Bonus 2.3 Vestas 3.0 Vestas 3.0 3.6 2.3 3.6 3.6 3.6 DONG Energy has pioneered offshore wind and has more than 20 years of experience in developing, constructing and operating offshore wind farms
and today DONG Energy is the market leader Ownership interest of selected competitors All figures in MW All figures as of: 15/01-2013 934 Pipeline probability and continuity is one of key success factors in offshore wind DONG Energy has a high quality pipeline in short and medium term Much of competitors' pipeline is long term with relatively low probability Up to 2015 several new players can be expected to emerge 147 744 713 797 853 Under construction In operation 370 349 135 467 142 194 161 159 DONG Energy RWE Innogy Vattenfall Centrica E.On Iberdrola Statoil Statkraft SOURCE: DONG Energy Wind Power Offshore database. NOTE: * Potential projects currently under consideration not included. "In operation" includes offshore wind capacity from parks that are fully commissioned. "Under Construction" includes offshore wind capacity from parks that are partly generating, under construction or where final investment decision to construct has been performeddisclaimer: The information and data herein is obtained from vendors and public sources believed to be reliable and is presented in good faith and for general information only. The information is internally validated to reflect our expectations of the market developments.
Offshore wind is the fastest growing segment in the energy sector in Europe European offshore wind capacity growth is driven by strong growth in Europe European installed capacity (GW) 37 Added capacity 2011-2020 (34.4 GW) The installed capacity is expected to grow from ~3 GW in 2010 to ~37 GW by 2020 8.5 13.2 23% 36% This is expected to require app. EUR 130bn of investment in Europe 14 +34GW 2.8 0.9 3% 8% New entrants such as industrial, financial and supply chain players are expected 3 2.1 5% Other 9.3 25% Governments in large European governments have set ambitious targets for expansion within offshore wind 2010 2015 2020 These targets are supported by; High growth markets Percentage represents a country's share of the total European capacity additions Implementation of strong incentive schemes Investment in grid infrastructure Source: Emerging Energy Research forecast, April 2012
DONG Energy has a significant portfolio and a strong pipeline of future offshore wind projects IN OPERATION UNDER CONSTRUCTION UNDER DEVELOPMENT Irish Sea Zone Walney 2.5 WoDS Barrow Burbo Walney 1 +2 Westermost Rough Horns Rev 1+2 Lincs Borkum Burbo 2.5 Gunfleet Sands 1+ 2 London Array Riffgrund 1 Borkum Riffgrund 2 London Array 2 Dutch portfolio Borkum Riffgrund West Fécamp Gode Wind 1,2 & 3 Courseulles-sur-mer Saint-Nazaire Hornsea Heron & Hornsea Njord Anholt Middelgrunden Nysted Our offshore wind projects are centred around key North western Europe UK Germany Denmark
Significant achievements made in 2009-12 to build the platform for further growth of the offshore wind business Examples (non-exhaustive) Strong progress in projects Strengthening the value chain position Final investment decisions for Walney 1-2, London Array, Anholt, Borkum Riffgrund I and West of Duddon Sands (total of more than 2,100 MW) Final investment decision for SEA installer 1 & 2, purpose built installation vessels Horns Rev 2 (209 MW), Gunfleet Sands (172 MW) and Walney 1 (184 MW) on stream Securing ~ 6 GW of project rights (Round 2.5, and Round 3 in the UK plus German rights) World largest sourcing agreement with Wind Power regarding supply of turbines Framework agreements with Bladt Industries (foundations) and with Nexans (array cables) Acquisition of Danish offshore installation vessel company A2SEA securing offshore competencies and access to vessels ( co-owner) Equity position in CT Offshore, a specialised cable installation company High degree of partnership activities Divestment of a number of offshore wind projects: Gunfleet Sands 1-2 to Japanese Marubeni (49.9%) Anholt to PensionDanmark and PKA (50%) Walney to SSE (25.1%) and PGGM and Ampere Equity Fund (24.8%) Nysted to PensionDanmark (50%) and Stadtverke Lübeck (7.25%) Borkum Riffgrund I to KIRKBI A/S (32%) and William Demant Invest A/S (18%) Together with Project Ventures acquiring a 50% share in Lincs (270 MW) Focusing the business through sale of onshore wind assets and hydro power Organisation New Wind Power organization in place to manage further growth and to integrate all parts of the offshore wind value chain
Zephyr in brief Unique opportunity to enter the Nordic wind power market Background Investment highlights Zephyr AS is a Norwegian wind power company founded in 2006 with the purpose of acquiring, developing and constructing a portfolio of onshore wind farms in Southern Norway Zephyr plans to spin-out each project in SPVs when concession (key project consents) is obtained As part of DONG Energy Wind Power's strategic focus on offshore wind, DONG Energy is commencing the divestment of its 33% ownership of the development company Zephyr AS. Geographic overview High profile asset Attractive wind resource The transaction gives access to one of the largest wind power portfolios in Norway The portfolio consist of 9 projects totaling more than 1 GW Two projects equaling 330 MW has received concession Some of Europe's best wind resources High mean wind speed at 7.3 9.2 m/s at 80m Wind measurements conducted by independent third parties Developed by Zephyr Constructed/operated by Zephyr Innvordfjellet Long-term income stream Each project has a 20-25 year operational life span All project are expected to be eligible for green certificates (TGCs) from the joint Norwegian / Swedish TGC system. Remmafjellet Mehuken I & II Guleslettene Vågsvåg Dalsbotnfjellet Øye Midtfjellet Experienced Constructor and Operator Strong competences in developing, constructing and operating wind farms Currently, operating Mehuken I & II (22.6MW) on behalf of Kvalheim Kraft DA Currently, constructing Midtfjellet (110MW) on behalf of Midtfjellet Vindkraft AS Holmafjellet Fruknuten Tellenes 9 dedicated local employees some fulltime and others part time