R enewable E nergy G eneration Ltd Overview Developing the World’s Renewables

Renewable Energy Generation 2 Introduction to REG Renewable Energy Generation is the largest publicly quoted renewable energy company in the UK dedicated to investing in operating plant Market capitalisation of €100m Listed on the London Stock Exchange’s AIM market with the symbol RWE REG’s mission is “to build the value of its shareholder equity by owning and operating renewable energy projects thereby contributing to national sustainable energy targets” REG has a vastly experienced development and operational team and already owns –The Cornwall Light & Power Company Ltd and through it; –The Goonhilly Downs wind farm in Cornwall –CLP Wind Projects – 24 UK wind projects, 5 consented In addition REG is the main equity investor in Poland’s largest wind farm at Tymien – 50MW REG has no debt and €55m of cash in hand Goonhilly Downs

Renewable Energy Generation 3 REG shareholders REG’s shareholders include some of the largest financial institutions in Europe –Legal and General –Invesco Perpetual –Fidelity –New Star –Foreign and Colonial –Hendersons –Credit Suisse –UBS REG has recourse to its shareholders if further capital required But we must now build out what we have acquired Goonhilly Downs

Renewable Energy Generation 4 REG’s current investments Tymien 1 – Poland 50MW – Fully Operational in Q Near Baltic Coast 15 year PPA, partnered with EEZ and Invenergy, IRR above REG portfolio average Stable, attractive renewable energy incentive scheme provided by accession to EU £7.9m Goonhilly Downs – Cornwall, UK 5.6MW Excellent 12 yr production record 2.5 yr PPA signed at very high prices Freedom to explore repowering potential Freedom to play the green power market £4.5m Goonhilly Downs CLP Wind Projects – UK 75MW when developed 24 sites across UK, 5 consented Developed by National Wind Power – RWE Good wind regimes: cost competitive £4m

Renewable Energy Generation 5 Tymien, Poland Poland’s largest wind farm – 50MW Uses 25 Vestas V90 machines REG is main equity investor in project Working with Invenergy of the US and EEZ of Poland EU backed project 15 year PPA with 2 state owned distribution companies Two follow on stages taking total capacity to 150MW An excellent first project in Eastern Europe for REG Tymien

Renewable Energy Generation 6 REG’s future plans: Tymien 2 & 3, Cisowo – Poland 118MW First right as principal investor in Tymien 1 IRR similar to Tymien 1 Tymien 1, 2 & 3 will total 150MW Cisowo will total 18MW Scheduled for 2006 and 2007 WindWorks – UK 75MW High Sharpley, High Pow, Braich Ddu close to construction Pipeline of projects Goonhilly Downs – Cornwall, UK Repowering Programme – 15MW The wind turbines currently in use are 0.4MW each, modern turbines are typically >1MW Goonhilly Downs Other CEE Region Greece has existing projects and infrastructure Romania anticipates EU entry Bulgaria has excellent resources Latin America Brazil has strong renewables program Mexico stalled on regulatory issues Chile — developed country infrastructure

Renewable Energy Generation 7 Carbon Sales Carbon Sales important to emerging market projects –Value in range of €20 per tonne (long-term contracts are lower) –Depending on carbon intensity, can mean €15 per MWH CDM is virtually useless in providing project support –Process highly uncertain — “additionality” makes outcomes highly uncertain –Mechanism is “amateur” — CDM Executive Board is part- time and underfunded –RESULT: Few trades and little interest JI offers better prospects –National basis –Not well understood in prospective markets –Need for support by EU

Renewable Energy Generation 8 Institutional Barriers LDCs often present substantial barriers to renewable energy development Transparency a concern — local utilities may have entrenched interests opposed to new equipment suppliers Land registration and title — massively important to renewables particularly wind Deregulation is not on national agendas — traditional western country PPA structure may not be viable

Renewable Energy Generation 9 Conclusion Increasing interest in private sector equity investment in renewables in emerging markets Need action to deal with barriers –Reform of Carbon Trading >Begun at Montreal Conference, but needs momentum –Deal with institutional barriers >Need to build on work of IFC/World Bank in electricity reform Renewables are economic, especially in high cost LDC power markets Renewed efforts needed to spearhead change