The Rise of the Portfolio Investor : Acquisition Strategies in a Seller’s Market 9 May 2007 Milan

IPP Utilities Institutional Investor Historical Expand beyond local market Project based opportunity “Clean” pressure Scale - generation assets Fund rationale – growth or annuity Established markets & industry Growth Drivers Evolve from successful local developer Not on my grid Too risky Outlook Buy projects and restructure Higher price for lower risk Reaching growth targets – buy and partner Leverage balance sheet Opportunity driven Leverage skills Buy packaged assets Quick decisions Absorb at home – acquire abroad Slow but steady Partner to build pipeline Chunky growth The Rise of the Portfolio Investor Participants – Market Approach

The Rise of the Portfolio Investor Top 20 European Owners (MW) IPP’sUtilitiesInstitutional 2005 Installed 2006 Added Account for 31% (15.2GW) of total base (45.5GW) Added 41% (3.1 GW) of total new (7.5 GW) Utilities added 1,700 MW - IPP’s just over 1,000MW Top 20 Asset Owners

The Rise of the Portfolio Investor IPP’s Historical Growth Drivers Outlook EHN, CESA, GREP Pipeline, CDV, outbid for Pacific Hydro Europe (ES/IT/FR/DE/GR/HU) – 2,300, NA – 35, Asia 30, Diversified energy Consolidate at home and move abroad via acquisition Vertical business Leverage experience from home market - UK, Hungary, Greece, Italy, Poland Offshore – Spain, France Target additional 5,000 MW next 4 years – NA/CN Turbines & Endesa Growth from transmission business - Elecnor Spain – 330, Brazil Continue to build on existing business Cautious Expansion Offshore in Spain with Endesa Expanding into Solar and Biofuels

The Rise of the Portfolio Investor Utility Historical Growth Drivers Outlook

The Rise of the Portfolio Investor Utility Historical Growth Drivers Outlook Hidro Cantabrico, DESA/Nuon Horizon Europe (PT/ES/ FR) – 1100, US 560 MW Acquire developers with pipeline and assets Diversify portfolio High growth markets Execute on acquisitions 2,200MW new wind capacity in France, Italy, UK and Poland by 2010 Over 1,000 in US Local development into umbrella- Add EnXco Europe (FR/PT/DE/GR/IT/UK) – 385, NA Partnerships - own less than 50% of participated EnXco – over 1,200 mw experience – maintain ownership of pipeline Continue partnerships and local project acquisition ie Italy (2 operating farms) EnXco – 200 – 300 MW per year Target over 3,000 MW by 2011

The Rise of the Portfolio Investor Institutional Investor Historical Growth Drivers Outlook Enersis, Gamesa portfolio, German projects, Superior Europe (ES/PT/DE/FR/IT) 806, NA – 450, Asia Mix of IPP and Financial engineering Development partnerships, acquisition and refinancing Agreements with Plambeck, Ostwind, Renerco and Nordex – for France and Germany Will continue to draw on Gamesa in US – will look for new projects acquisition Purchase UPC assets in Italy - IVPC, German projects Europe (IT/DE,IR) 620 Financial engineering >€1bn Refinance 680 MW Content with current portfolio – build out from existing acquisitions Additional acquisitions in stable markets Trinergy

DateInvestorTarget Company MW Developed by Target Company by Acquisition Date MW Pipeline of Target Company at Acquisition Date (est.) Pipeline Geographic FocusPurchase Price Dec. 2005AirtricityRGINone1,000Texas, New Mexico, ColoradoN/A May 2006IberdrolaCommunity Energy322,000Northeast, Mid-Atlantic$30 million Aug. 2006BP Alternative EnergyGreenlight Energy1506,500Colorado, Illinois, Kansas, North Dakota, other$98 million Sept. 2006EnelTradeWind EnergyNone1,000Kansas, Missouri, Illinois Est. < $10 million (equity stake) Oct. 2006AirtricityGale Force EnergyNone4,000NationalN/A Oct. 2006IberdrolaMREC801,700Iowa, Wisconsin$38 million Dec BP Alternative Energy Orion Energy4916,000NationalN/A Mar. 2007EDPHorizon Wind Energy1,0449,000+National$2.9 billion Apr. 2007IberdrolaScottishPower~2,006 (PPM Energy)9,000+ (PPM Energy)National~$23 billion Apr. 2007IberdrolaCPV WindNone3,500Southwest, Midwest, Mid-AtlanticN/A Renewable Generation Inc. Greenlight Energy Community Energy MREC Partners Total Pipeline Acquired > 43,000 MW (est.) The Rise of the Portfolio Investor European Wind Investment in US

The Rise of the Portfolio Investor Trends Hot markets – Italy (19 cents / Kwh), UK – ROCs, France – pent up pipeline, Eastern Europe – local heroes, US – its big and I can play, Offshore - scale Entire industry becoming more consistent – more investors willing to participate (long way from the doctors & dentists, sandal wearing, backpack toting explorers with hand held anemometers …) –New Entrants – GE finance / Theolia, Novera (Germany, France), Allianz –Small locals – no longer able to fund turbines 10-20% down 18 months in advance of delivery. –Land grab - Not much real greenfield left in next few years – realizing identified projects Large players acting in similar manner - Scale definitely brings synergies – balance risk (permitting, support schemes, access to turbines, diversity of supply ….. Speed to secure project pipelines offset by turbine lead times benefits those that can build a diversified development portfolio