Accelerated Wind Farm Development

The European market is setting the pace in the evolution of offshore wind.... 2017 and 2018 have seen a number of firsts in European offshore wind markets Sector "firsts" in the last twelve months': Over 18 GW installed globally £57.5/MWh¹ delivery strike price for Moray East and Hornsea 2 in UK ☐ ■ €35/MWh bid-equivalent LCOE for Danish near-shore³ Vattenfall secures Hollandse Kust Zuid concessions on a zero-subsidy winning basis (delivery in 2022/23) 8.8MW WTGs deployed commercially in 2018 (Aberdeen Bay) with 9.5MW WTGs being produced (Triton Knoll) Hywind pilot park as the world's first floating wind farm started operations off the coast of Scotland in Oct-17 Learning curve and auction pressures are delivering dramatic cost of energy (LCOE) benefits: ■ Auctions are delivering dramatic savings, especially where development and permitting costs can be socialised Debt markets issuing record volumes of debt at historically low margins ■ Each quarter brings new lenders, junior/mezzanine on the rise, syndications are back - even project bonds Equity investors chasing lower returns Notes: 1. In 2012 prices. 2. BNEF LCOE equivalent estimate of $55/MWh, 3. BNEF LCOE equivalent estimate of $39/MWh, 2016 prices, 2016 average USD/EUR FX rate used, Source: Bloomberg New Energy Finance (BNEF), Augusta & Co Private and Confidential Discussion Materials AUGUSTA & CO 7th September 2018 Page 5

View entire presentation