NEAS ENERGY - Route to Market

NEAS ENERGY - Route to Market

Overview Wholesale Power Market developments Revenue Profiles Secured and Unsecured FIT CFD v ROC PPA Key terms and conditions PPA Backstop PPA Cash flows for CfD and ROC projects. 2

Who is Neas Energy? Leading Non-Utility PPA provider in Europe Around 6,000 MW installed capacity managed 4,000 MW+ of renewables ~ 2/3 of Denmark s On-Shore Wind 1,700 MW+ in Germany 500 MW+ in Sweden Fastest Growing PPA provider in the UK Started February 2013 Grown with 300 MW+ in the last 9 months Strong ties with top-tier Developers 3

Wholesale Market Developments

Long Term Price Trends 60.00 58.00 56.00 Current per MWh Sept 2013 per MWh Diff % Diff 2015 49.77 52.25-2.48 5% 2016 50.95 55.50-4.55 8% 54.00 52.00 2017 51.24 56.31-5.07 9% 2018 51.34 57.16-5.82 10% 2019 51.36 58.02-6.66 11% 2020 51.34 58.89-7.55 13% 50.00 48.00 2015 2016 2017 2018 2019 2020 Current per MWh September 2013 per MWh 5

Reference Price Performance N2EX 6

N2EX ahead hourly auction high level info 2013 Maximum hourly price 155.04 per MWh ( 175.04 2012) Minimum hourly price 15.01 Average hourly price for the full year 50.15 per MWh ( 44.70 2012) Average peak time price 54.62 per MWh Above 70 per MWh 540 times during 12 month period 2014 trends for Power prices to trend lower reflective of market conditions 7

Sep 25, 2013 Oct 08, 2013 Oct 21, 2013 Nov 01, 2013 Nov 14, 2013 Nov 27, 2013 Dec 10, 2013 Dec 23, 2013 Jan 03, 2014 Jan 16, 2014 Jan 29, 2014 Feb 11, 2014 Feb 24, 2014 Mar 07, 2014 Mar 20, 2014 Apr 02, 2014 Apr 15, 2014 Apr 28, 2014 May 14, 2014 May 27, 2014 Oct 09, 2013 Oct 21, 2013 Oct 31, 2013 Nov 12, 2013 Nov 22, 2013 Dec 04, 2013 Dec 16, 2013 Dec 26, 2013 Jan 07, 2014 Jan 17, 2014 Jan 29, 2014 Feb 10, 2014 Feb 20, 2014 Mar 04, 2014 Mar 14, 2014 Mar 26, 2014 Apr 07, 2014 Apr 17, 2014 Apr 29, 2014 May 13, 2014 May 23, 2014 Jun 04, 2014 Price Development of Front Seasons 58.00 Base load Winter 2014 54 Base Load Summer 2015 56.00 53 54.00 52 52.00 51 50 50.00 49 48.00 48 46.00 47 44.00 46 8

Revenue Profiles Secured and Unsecured FIT CFD v ROC PPA

Solar Strike Price v 1.4 ROC Offer 250 200 150 100 50-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 LOW 1.4 ROC's CENTRAL 1.4 ROC's HIGH 1.4 ROC's Strike Price 120 Strike Price 105 Strike Price 95 10

Millions Secured Income (Assuming 1000 MWh p.a.) 2.50 2.24 2.00 1.96 1.77 1.50 1.38 1.82 1.00 0.50-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Secured ROC income Strike Price 120 Strike Price 105 Strike Price 95 11

Wind Strike Price v 0.9 ROC Option 180.000 160.000 140.000 120.000 100.000 80.000 60.000 40.000 20.000-1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Low Central High FIT CFD 95 STRIKE PRICE FIT CFD 85 STRIKE PRICE FIT CFD 75 STRIKE PRICE 12

Millions Secured Income (Assuming 1000 MWh p.a.) 2.00 1.80 1.60 1.40 1.77 1.58 1.40 1.20 1.00 0.80 0.93 1.21 0.60 0.40 0.20-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Secured ROC income Strike Price 95 Strike Price 85 Strike Price 75 13

ROC Wave/ Tidal v FIT CFD 450 430 410 390 370 350 330 310 290 270 250 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Low Central High FIT CFD 14

Millions Secured Income (Assuming 1000 MWh p.a.) 6.00 5.68 5.00 5.37 4.00 3.82 3.00 2.00 1.00-2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Secured ROC income Secured CfD income 15

Payment Profile FIT CFD v ROC

FIT-CfD and RO Differences Renewable Obligation FIT-CfD Power Price Payment Supplier Payment Government Subsidy Monthly in Arrears as to Payment terms agreed market mechanism Minimum of 2.5 Months following generation month Reference price minus fee Monthly in Arrears as to Payment terms Daily 28 days from point of generation Data Level Generation at meter Generation at BMU Credit Exposure Payment of LEC s Certificates Payment of GDUOS and Embedded Benefits All Exposure with Supplier Minimum of 2.5 Months following generation month No change Power Only. FIT CFD counterparty for Top up payment Minimum of 2.5 Months following generation month No change Exposure to Negative Prices PPA dependent PPA dependent

Payment Profile Scenario 1 Reference price below FIT CFD Strike price Generation 1 First FIT CFD Payment 28 days from point of generation First PPA Power Payment for Power generated at Reference price LEC Certificates transferred to Generator account PPA Provider pays Generator for LEC certificates 24 hours in advance expected generation traded End of Calendar month + 1 month from generation + 2 month from generation + 3 month from generation + 4 month from generation 18

Payment Profile Scenario 2 Reference price above FIT CFD Strike price Generation 1 Power price for 2 hours above strike price FIT CFD Payment 28 days from point of generation for Power below the strike price PPA Power Payment for all Power generated at Reference price 24 hours in advance expected generation traded 3 Supplier receives payment from exchange 7 Supplier invoiced to pay for power above strike price 12 Supplier makes payment FIT CFD Counterparty End of Calendar month + 1 month from generation 19

Payment Profile Scenario 3 Reference price goes below zero but not below strike price value Generation 1 Power price for 2 hours below zero FIT CFD Payment 28 days from point of generation for Power below the strike price for negative hours generator receives full strike price PPA Power Payment for all Power generated at Reference price. Netting negative N2EX trade values against positive 24 hours in advance expected generation traded End of Calendar month 20 + 1 month from generation

Payment Profile Scenario 4 Reference price goes below zero and value of strike price value Generation 1 Power price for 2 hours negative below strike price value FIT CFD Payment 28 days from point of generation for Power generated outside of affected time period PPA Power Payment for all Power generated outside of affected time period We aim for a solution that requests shutdown of the plant for the affected hours End of Calendar month + 1 month from generation 21

PPA Overview and Key Terms

FIT CFD Key commercial terms- Intermittent Generation FIT-CfD Discount to Reference Price per MWh Guaranteed Reference Price Fixed Discount Period Imbalance exposure of generator Settlement Exposure Management of additional benefits Yes as part of per MWh discount Discount fixed for terms maximum to the term of the FIT CFD. Longer the term the higher the fee Expectation of planned and unplanned outages managed within Imbalance premium Supplier Reference price FIT CFD Top up payment LEC s, EB and GDUOS will be managed via commercial agreement

KEY PPA TERMS FIT-CfD CREDIT RISK LIABIILITIES CAPS PAYMENT TERMINATION RIGHTS TERMINATION COSTS RISK OF NOT GAINING A FIT CFD OFFER LONG STOPS DATES COMMISSIONING RISK Supplier seek for credit exposure to reflect true financial risk to the generator Equal to the risk each party faces Payment terms as to current PPA As with current PPA exposure for forward commitment in respect to Power delivery and Certificates Formula to reflect market exposure PPA Falls away Mirror FIT CFD PPA NO additional risk, test for achieving commissioning not increased. 24

Supplier default PPA Cash flow implication 140.00 120.00 100.00 80.00 60.00 40.00 20.00-1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 Reference Price minus PPA Fee SSP FIT CFD Top UP Actual credit risk exposure Interim Support Time Period to backstop PPA support Backstop payment 25

ANY QUESTIONS