1. Euroheat & Power Conference 2008 “Sustainability as a utility strategy” Presented by Phillip C. Piddington Head of Cogen Asset Management RWE Npower

2. Euroheat & Power Conference 2008 Why should utility companies be involved? Changing market dynamics (Electricity Gas Heat) Environmental & security of supply Increase competition Need for reinvestment in electricity & gas assets Increased diversity of technology & services

3. Euroheat & Power Conference 2008 Options for an electricity based utility Do nothing & remain unchanged Make small incremental steps to diversify Fully embrace the changing & dynamic market

4. Euroheat & Power Conference 2008 What is RWE doing? RWE EMBRACING DYNANIC MARKET Leading provider of proven Micro Power & Heat Ground source heat pumps Solar thermal Building Capability in Energy Services Cogen Units Value adding District Heating Networks Created RWE Innogy as a Leading Developer of Renewables Wind Wave Biomass Hydro Turning Power Plants into Energy Parks

5. Euroheat & Power Conference 2008 Building capability in energy services Berlin-Neukölln / Gropiusstadt Technical data: Steam turbine: 20 MW el Thermal output: 65 MW th plus 100 MW th peak load Use of steam for district heating: 156 MW th Clients: Vattenfall Europe Civil law association Fernheizung Gropiusstadt Standard fuel: Biomass (scrap wood A1 – A4) Status: Start of operation in 2006 Technical data: Gas turbine: 40 MW el Steam turbine: 18 MW el Thermal output: 262 MW th Clients: Bridgewater Paper Ltd. Standard fuel: Gas Status: Start of operation in 2000 Bridgewater Paper

6. Euroheat & Power Conference 2008 RWE Innogy is a leading developer of renewable technologies: Wind, Wave, Hydro & biomass: Kehl am RheinBergkamen RWE Innogy Technical data: –Steam turbine: 20 MW el –Steam capacity: 83 t/h –Thermal output: 61,3 MW th Technical data: – Steam turbine: 8,6 MW el – Steam capacity: 59 t/h – Thermal output: 47,4 MW th – Process steam supply: 50 t/h

7. Euroheat & Power Conference 2008 Micro Power & Heat npower is supporting market development in both ground source heat pumps and solar thermal units