1. Groceries and Energy Projects CEBC 3rd Annual MENA Clean Energy Forum Rajan Phakey Partner, Dentons 1 December 2014

2. Agenda UK energy initiatives and sustainability projects A supermarket's perspective Examples of projects Case Study Waste to Energy Project in 2014 1 December 2014 2

3. About Dentons Dentons is a global law firm with over 70 offices in over 50 countries 50 years on the ground in the Middle East; 45 years in Dubai 8 offices in the Middle East Abu Dhabi, Beirut, Cairo, Doha, Dubai, Muscat, Riyadh, Amman Further expansion in the future… Full service Regional and international clients International and local law advice: one-stop shop Bilingual Arabic and English-speaking lawyers Transactional and regulatory advice 1 December 2014 3

4. Sustainability Projects 4 1 December 2014 A Supermarket's Perspective

5. Sainsbury's One of the UK's largest chain of supermarkets Over 1250 supermarkets and convenience stores in the UK Listed on London Stock Exchange (USD 37bn turnover in 2014) Other businesses include: Sainsbury's Energy - retail electricity and gas supply Petrol stations Bank - offering financial products Mobile phones - virtual network Pharmacies 1 December 2014 5

6. Sainsbury's Energy Projects 20x20 Sustainability Plan Better food and health sourcing with integrity respect for the environment making a positive difference to the community Series of UK "industry first energy projects" over the past 15 years First 'on-site' commercial wind turbine (2001) First direct purchasing from a large wind farm generator (2008) Largest rooftop solar panel operator in Europe (2012) Pioneering demand response programme (2012) First retail store powered entirely by waste (2014) 1 December 2014 6

7. Examples of Energy Projects Direct Purchasing From Wind Farms UK's first direct purchasing from a large wind farm generator (2008) Number of legal/regulatory hurdles successfully navigated Model subsequently adopted by many other large corporates 1 December 2014 7

8. Examples of Energy Projects Direct Purchasing From Wind Farms UK's first direct purchasing from a large wind farm generator (2008) Number of legal/regulatory hurdles successfully navigated Model subsequently adopted by many other large corporates 1 December 2014 8

9. Examples of Energy Projects Europe's largest solar panel operator In 2012, Sainsbury's had installed 69,500 new PV solar panels across 169 stores in the UK (16MW capacity) In 2013, Sainsbury's had installed 100,000 panels across 210 of its stores (22MW capacity) 1 December 2014 9

10. 10 Sainsbury’s will have installed 170,000 panels above stores and distribution centres by spring 2015 (40MW capacity).

11. Examples of Energy Projects Demand Side Response Initiatives 10 year contract with Open Energi to commercially optimise heating and ventilation systems (HVAC) across 200 stores (2011) Turns the HVAC equipment into smart devices which can respond to fluctuations in electricity supply and demand, and help National Grid to keep power supplies flowing reduces energy costs, cut dependence on fossil fuels, and reduces CO 2 emissions Separate contract with KiWi Power to pilot a pioneering demand side response programme 1 December 2014 11

12. Examples of Energy Projects Demand Side Response Projects 1 December 2014 12

13. Sainsbury's 13 Waste to Energy Project

14. 1 December 2014 14

15. 1 December 2014 15

16. 1 December 2014 16

17. 1 December 2014 17

18. 1 December 2014 18

19. 1 December 2014 19

20. 1 December 2014 20

21. 1 December 2014 21

22. 1 December 2014 22 Anaerobic Digesters New Power Distribution Cable Sainsbury's Cannock Store

23. Example challenges and risks Challenges Land rights and cable design/procurement Commercial and legal terms for power supply Disruption to supply 1 December 2014 23 Planning consents, easements and building contracts Negotiation of PPA with Biffa Standby-generation at store / negotiation of back-up supplies Mitigation AD switchgear shift to national grid input and routed to store. Standby generation at store Supply routed through switching to grid supply. Risks AD or power generation failure Cable inadvertently damaged Long-term disruption to supply

24. Dentons & Co. Level 18, Boulevard Plaza 2 Burj Khalifa District PO Box 1756, Dubai United Arab Emirates Thank you © 2014 Dentons. This publication is not designed to provide legal or other advice and you should not take, or refrain from taking, action based on its content. Attorney Advertising. Please see dentons.com for Legal Notices. Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Dentons & Co is a partnership comprising Dentons Middle East Partners LLP and Dentons Middle East Limited. It is registered with the DFSA and authorised and regulated by the Solicitors Regulation Authority. Any reference to a "partner" means a person who is a partner, member, consultant or employee with equivalent standing and qualifications in one of Dentons' affiliates.