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NER300

Offshore Wind Park “Nordsee One”Tobias Griesshaber

Shareholder representative of Innogy SE on behalf of project

Nordsee One GmbH

Brussels, 15 December 2017

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• General project overview & timeline

• Project impressions

• Lessons learned

• Stakeholder management

• Permitting

• Financing & Innovation

• Risk management

• Movie about wind turbine installation in 2017

Agenda

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General overview

Distance to shore 45 km

Water depth (LAT) 26 m – 29 m

Capacity 332 MW (54 x 6.15 MW)

Wind speed 9.8 m/s at hub height (90 m)

Yearly output 1.2 TWh

ShareholdersNorthland Power (85%) and

Innogy SE (15%)

NER300 funding EUR 70 mn

Lifetime 25 years

Commissioning 2017 Operation base

O&M route:

26 nm (48 km)

CTV 1.5 hrs

Nordsee One

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Construction progress has just come to an endMost of the activities were performed within the schedule

2014 2015 2016 2017

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

100% Feed-in (only 18 days delay!)

Turbine Commissioning

Substation Topside Inst./Commissioning

Turbine Installation

Installation export cable

1st Feed-in

Substation Jacket Install

Actual vs. original (grey) planning

Last WTG section take-over

Cable Installation

Foundation Installation

Substation Topside Installation

Turbine Fabrication

Foundation (Basic Detailed) Installation

Permit: BSH Approval 2nd-3rd-4th

Financial Close FabricationFC assumption

Installation Commissioning

Cable Fabrication

Today

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Ten years after project acquisition 332 MW are producing green powerFinancial and permit key milestones

• Acquisition of project rights by Innogy 2008

• Main Permit N1: April 2012

• Construction Permit Foundations: 03 December 2015

• Construction Permit Inter-Array-Cables: 25 April 2016

• Construction Permit Offshore-Substation: 08 June 2016

• Construction Permit Wind-Turbines: 03 March 2017

• Entry into operations: December 2018

requirement• NER300 Award by DG CLIMA December 2012

• FID by sponsors (incl. new sponsor NPI) December 2014

• Financial close with lenders March 2015

Thank

you!

66

• General project overview & timeline

• Project impressions

• Lessons learned

• Stakeholder management

• Permitting

• Financing & Innovation

• Risk management

• Movie about wind turbine installation in 2017

Agenda

77

Load-out of a 800 ton Monopile

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Hammering pile with noise mitigation tube to protect marine environment

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Interarray cable installation with purpose-built vessels

1010

Sub-station collecting the electricity at 33 kV and transforming to 150 kV

1111

Installation of the last wind turbine

(September 2017)

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1313

1414

• General project overview & timeline

• Project impressions

• Lessons learned

• Stakeholder management

• Permitting

• Financing & Innovation

• Risk management

• Movie about wind turbine installation in 2017

Agenda

1515

Stakeholder ManagementUnderstand your stakeholders‘ needs

• Stakeholder analysis is an effort to understand motivation, benefits and pain points of affected parties.

• The right level of information and involvement will allow steering your project effectively through

challenging times, and be rewarding in good times.

As a consequence the support of the stakeholder will improve.

• Structure your stakeholder management by implementing the -Principle

A Single Point of Contact for a stakeholder or a group of stakeholders ensures one face to the

stakeholder, centralized data management and avoids ambiguous information.

Examples of key stakeholders for Nordsee One:

o Grid operator providing the electricity export connection to shore

o Equity investors

o Lenders via Facility Agent and their advisory group (technical, legal, tax etc.)

o Permitting authorities

o Public interest groups

S.P.O.C.

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Permitting (also applicable to public stakeholders, incl. the EU)Co-operate, communicate and stand by your word

Be predictable

In Germany, the permitting procedure is very comprehensive with involvement of the authorities at every

project phase. Projects need to pass several stage gates. Clearly defining and aligning milestones creates

a joint roadmap and provides planning security for all stakeholders.

Help the authorities to structure their resources to ensure the permit is issued when required.

Be open and transparent

In case things are going wrong or milestones are delayed, be as open and transparent as possible.

Authorities and public stakeholders support a change more smoothly if they understand why it is required.

Communicate transparently to avoid obstacles and ensure co-operation.

Take certain decisions early

The turbine type (here: 6 MW) is the central item to start with. This also applied to the NER300 funding

eligibility already back in 2011! The comprehensive permitting procedure – and EIB’s DD for NER300 –

involves metocean data, technology details and encompasses fabrication, transport and installation. As all

of the requirements are determined by the turbine, this needs to come first.

Predictability and reliability supports your project planning and execution significantly.

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Financing & InnovationDoes this go together well?

• Financing a mega-project (>1 bn€ CAPEX) is always a multi-variable moving target

• Banks & investors seek predictable conditions, ideally regulated returns and use of tested technology

• McKinsey found out that mega projects are delivered on average

o 1 year late

o 30% over original budget

• Nordsee One (1.2 bn€) did very well on

Scope (all assets are operational)

Time (less then 3 weeks delay compared to baseline)

Cost (within budget and contingencies)

But experienced

Quality issues: chosen foundation technology was innovative and – in hindsight – encompassed

some issues. Innovative blades turned out to require further design adaptations.

Financing seeks predictability and track record Innovation is new and usually radical change

More knowledge needs to be gathered and shared within and across the sectors

But there are limitations to linear thinking and transferability across sectors (onshore wind, O&G)

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Risk managementThe key to prepare for the known unknowns and navigate through uncertainty

• Risk?

Yield (un)certainty Offshore installation New technology

„The word 'risk' derives from the early Italian risicare, which means ‘to

dare‘ or ‘to circumnavigate’.

In this sense, risk is a choice rather than a fate.”

Peter L. Bernstein

1919Thank you for your attention!