1. Storing for the Future Maciej Nowicki Ι Martin Weiss Ι Vladimir Zejda Ι Pawel Zoltko Beating the Elite

2. The Challenge “How can DONG Energy leverage its portfolio of technologies and partnership to profitably lead the next revolution in the energy sector – providing a clean yet reliable energy supply?” We were asked: And answered: By concentrating on a new strategy that follows the 3 key pillars of DONG Energy: Clean Reliable Profitable Utilizes the company’s key strengths and is focused on the long term profitability. While operating in an environment that is: increasingly competitive and consolidated & focused on clean energy.

3. Evaluating DONG’s Technology Portfolio Renewables Generation Exploration & Production Wind Hydro Coal Biomass Gas Oil Gas Current Focus Clean Longterm Growth Potential ReliableTOTAL 13 10 9 12 11 12

4. DONG has a great potential in the growing European wind energy market Global leader in offshore windparks 30% market share Extensive experience Decided expansion plans DONG MARKET Wind Energy Market: Target & Consumption (Europe) Growth to 34GW by 2020 EU support Renewable energy advancement (German phase-out,...)

5. Energy storage as a solution to low reliability The great downside of wind power farms is their unpredictability. UnreliabilityFluctuations in output Weather Energy Storage Efficient wind energy management Reliable power supply & stable power network Long term competitive advantage in the renewable energy sector Improved trading opportunities An edge in the new trends emergence (e-cars, smart grids)

6. Drivers & Constraints of energy storage DRIVERS CONSTRAINTS Impact:highmediumlow Intermittent nature of renewable energy Growth of electric vehicles/smart grids Expensive grid upgrades deferred EU legislation and efforts (20-20-20) High investment costs Long implementation period Low energy density 1-2yrs3-5 yrs6-10 yrs 1-2yrs3-5 yrs6-10 yrs

7. Reducing risks This means risk.Energy storage is a new territory for DONG Energy. Strategic partnership w/ a energy storage specialized company/-ies Lack of technological know-how Capital intensive project (lack of resources) to Gain access to R&D, knowledge, lower the project costs, and attract external investors.

8. Choosing the right partners Storage Energy Players Chosing the solutution Potential Partners Technology Battery CAES Hydrogen Preference Used for Likely impl. in the long term Farms located near caverns Prefered in windfarms

9. PROSCONS Storage has relatively high efficiency: as high as 90% or betterExpensive Flexible implementation High maintenance and have limited lifespans Battery technology High potential for development – costs likely to drop considerably, efficiency to rise COSTS From $508/kWh for a 10MW, 10MWh unit to $196/kWh for a 10MW, 40MWh unit Total plant costs: $227/kWh for a 100MWh plant $810/kWh for a 10MWh plant

10. Conclusion The energy storage project will lead to: Efficient wind energy management Reliable power supply & stable power network Long term competitive advantage in the renewable energy sector An edge in the new energy industry trends emergence (e-cars, smart grids) Answers the call to utilize the technology and partnerships portfolio asked by the management in a clean, reliable, and profitable way. Improved trading opportunities