Præsentation for Danske Motorjournalister

1. Præsentation forDanske Motorjournalister Torben V. Holm DONG Energy Sprogø, 16 august 2010

2. DONG Energy – an integrated Northern European energy company -with activities across the entire energy value chain E&P Generation Energy Markets Sales & Distribution Thermal Renewables Power distribution Gas distribution Offshore wind Onshore wind Hydro power Purchase, sale and transport of power and gas Gas storage Power and gas customers Focusarea Central power plants Strong and growing equity gas position The leading thermal generator on Nord Pool • Expanding renewables portfolio • Market leader in offshore wind Leading position in power and natural gas infrastructure Denmark's largest seller of power and natural gas Growing sales across UK, NL and Germany

3. Strategy for transforming the production of power and heat in DONG Energy 15/85 85/ 15 50 / 50 VISION • To provide reliable energy without CO2 638 g CO2/kWh1 320 g CO2/kWh 100 g CO2/kWh STRATEGY • Eliminate 50% of CO2-emission per kWh before 2020 • Eliminate 85% of CO2-emission per kWh before 2040 2040 2020 2006 1) 2006 total heat and power production 28,5 TWh eleq/ CO2- emissions 18,2 mt = 638 g CO2/kWh

4. Wind is key to the low carbon transition – and DONG Energy will continue to be a world leader IN OPERATION Nygårdsfjellet II 2011 onshore UNDER CONSTRUCTION (commissioning year) Nygårdsfjellet I onshore Storrun 2009 onshore Horns Rev 2 2009, offshore Walney 1 + 2, 2011 & 2012, offshore Other Danish on- and offshore1 Nysted offshore Karnice 2009, onshore Barrow offshore HR 1 offshore Karcino 2009, onshore Gunfleet Sands 1+ 2 2009, offshore STRONG POSITION THROUGH INDUSTRAILIZATION OF OFFSHORE OPTIMIZED PLANNING AND EXECUTION OF PIPELINEStrong in-house construction competence to secure portfolio synergies SIEMENS AGREEMENT 1800 MW supply agreement with steady supply OPTIMAL OFFSHORE INSTALLATIONAcquisition of A2SEA world-leading installation vessels and crew Burbooffshore Lake Ostrowo onshore Ploudalmezeau onshore London Array 2012, offshore *DONG Energy's share

5. 0 Wind power production'sshare of power consumption 2007 Denmark Spain Portugal Ireland Germany EU-27* Greece Netherlands Austria UK Estonia Italy Sweden France Lithuania Luxenbourg Latvia Belgium Bulgaria Poland Czech Republic Hungary Finland Stovakia Romania

6. The correlation between wind power-production, export and electricity prices Hours in in one year = 8,760 hours Wind Price Export Export • Today: • Denmark exports a large share of produced wind energy – at low prices • DONG Energy's calculations: • Additional 1000 MW wind power in western Denmark will produce 3,8 TWh – 3,2 TWh hereof will be exported • The majority of the power needed for the electric cars can be sourced through reduced export. • Our preliminary calculations show that 70% of the necessary power can be provided that way

7. The challenge of balancing production and consumption Consumption and wind energy production in West Denmark from 4-17 December 2006 Wind production Consumption - - - Double wind production capacity

8. Even across short time intervals the windpower production varies highly, creating a need for system balancing Energinet.dk: Computed power imbalance for Horns Reef 1 & 2 = 400 MW Zero = production forecast Fluctuation of -100/+175 MW in 15-20 minutes is possible That will require ~¼ power plant ramped up and down within 15 minutes

9. Udfordring 2: Uintelligentladning Normal-scenarie med opkoblingvedhjemkomstefterarbejdstidsophør Vil med 200.000 biler i DONG Energy’s forsyningsområde i 2020 kræve en udbyging af distributionskapaciteten i lavspændingsnettet med 92 pct. Heraf vil ca. 50 pct. stamme fra elbiler Men den leverede energi til bilerne vil kun repræsentere en stigning på 6% 00:00 23:59 9

10. Intelligent ladning Ladningstidspunktetflyttettil timer med lavefterspørgselogtilhørende lave priser • Intelligent ladning udnytter • Overkapacit i elproduktionen • Lav efterspørgsel fra andre forbrugsenheder 00:00 23:59 10

11. Consequently, the goals for DONG Energy are … • To secure a more value-creating demand for electricity • To make sure that most charging takes place at price low-points (typically between 22 and 05) • To make sure that EV-operators and their customers are reasonably incentivised to behave rationally

12. Which means do we have ? • Tarif structure • distribution tarif • fixed versus percentage based taxes on power • Metering infratructure • Implementation costs • Annual operational costs • Car registration tax exemption for EV's (or subsidy) • But what about PHEV's • And what about a gradual change of taxation policy towards congestions taxes

13. The Next Big Issue: Standardisation 1. Plugs 2. One or three phases – will determine charging time pr. kwh 3. Communication interfaces - choice will impact billing solution and business model options - must support integration with power supplier - can enable network interoperability

14. Roaming – a play on Metcalfe's law From Wikipedea: Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). First formulated in this form by George Gilder in 1993,[1] and attributed to Robert Metcalfe in regard to Ethernet, Implication is that if EV-owners belonging to one charging network can get access to power through another network a value gain is realised In other words, market fragmentation shall be avoided and roaming possibilities between networks ought to be promoted

15. Charging in the Public Domain and Roaming functionality Energy supplier #1 Energy Supplier #2 Energy Supplier #3 EV Operator #1 EV Operator #2 Billing Billing Roaming Roaming Service and controlmodule Service and controlmodule SLAs SLAs CS CS Public Charging service provider + clearing house CS CS CS CS Standards: Plug: IEC 62196-2 type 2 (Mennekes) Identificationcard: ISO 14443 (SIM-card standard) Clearing Switchboard Communication line CS CS Energy line Financial line

16. Charging in the Public Domain and Roaming functionality (with multiple energy suppliers pr. chargespot) Energy supplier #1 Energy Supplier #2 Energy Supplier #3 EV Operator #1 EV Operator #2 Billing Billing Roaming Roaming Service and controlmodule Service and controlmodule SLAs SLAs CS CS Public Charging service provider + clearing house CS CS CS CS Standards: Plug: IEC 62196-2 type 2 (Mennekes) Identificationcard: ISO 14443 (SIM-card standard) Clearing Switchboard Communication line CS CS Energy line Financial line

17. Metering and charging (with multiple suppliers) Energinet.dk Suppliers Fleet operator From suppl. 1 ∑ (M2 DK1) + ∑ (M2 DK2) M2 (suppl. 1) Billing Billing Energinet.dk DataHub M2 (suppl. N) From suppl. N Fleet operator database Database ∑ (M2 DK1) + ∑ (M2 DK2) M2 Invoice to car customer CS M2 M2 Grid Company Electricity delivered by the Supplier Consumption data per delivery point per hour Consumption data per delivery point per hour per supplier Bill per month pr. supplier based upon aggregated fleet operator data per area (DK1/DK2) Bill pr. month (according to contract) based on aggregation of billing data from misc. energy suppliers