Accelerated Wind Farm Development

Taiwan's offshore wind market is set to catch-up quickly with Europe... The Taiwanese target of 5.5GW of capacity by 2025 is credible with strong government support linked to a commitment to end nuclear generation International developers and investors are flocking to Taiwan attracted by the scale and attractive conditions ■ ◉ \Global investors are responding strongly to the Taiwanese Offshore Wind opportunity Excellent wind resource: Consistent wind direction mainly from the North and North-East Over 10m/s average wind speed at hub height Highly attractive Feed-in Tariff: 3.8GW of projects were awarded a 20-year feed-in Tariff in Apr-18, structured in the following alternative ways: Straight-Line: Year 1-20: TWD 5,849.8/MWh (~ €165.87/MWh) - Sculpted: Year 1-10: TWD 7,117.7/MWh (~ €198.43/MWh), Year 11-20: TWD 3,568.5/MWh (~ €99.48/MWh) A further 1.7GW were awarded a reduced feed-in Tariff in a competitive auction in mid 2018: MW-weighted feed-in tariff of c.TWD 2,489/MWh (~ €70/MWh), ranging from TWD 2,224.5/MWh (~€63/MWh) to 2,548.1 (~€72/MWh) Expected Offshore Capacity Europe vs Taiwan GW 18 16 14 12 NO 86 10 2020: 520MW Taiwan Offshore Subsidies Europe vs Taiwan (2018) €/MWh 250 2025: 5.5GW 200 10-year sculpted FIT 150 20-year straight-line FiT 100 150 50 198 166 Subsidy level expected to reduce as seen in mature European offshore wind markets 2025 4 42 2 79 66 55 47 70 0 FR1 BE UK NL DE Taiwan 2020 2019 2020 2021 2022 2023 2024 2025 ■UK ■Germany Netherlands Denmark Belgium France Taiwan Source: Bloomberg New Energy Finance, A&Co analysis; Note: 1. Subsidies were awarded in 2012 and 2014, renegotiation of tariff levels to current level by the French government was reached in Jun-18 Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 7

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