Præsentation forDanske Motorjournalister

Torben V. Holm

DONG Energy

Sprogø, 16 august 2010

Generation

Central power plants

Offshore windOnshore windHydro power

Sales & Distribution

Power distribution

Gas distribution

Gas storage

E&P

Focus area

Energy Markets

Purchase, sale and transport of power and gas Power and gas

customers

DONG Energy – an integrated Northern European energy company-with activities across the entire energy value chain

Thermal Renewables

The leading thermal generator on Nord Pool

Leading position in power and natural gas infrastructure

Denmark's largest seller of power and natural gas

Growing sales across UK, NL and Germany

Strong and growing equity gas position

Expanding renewables portfolio

Market leader in offshore wind

2

Strategy for transforming the production of power and heat in DONG Energy

2040

85 / 1550 / 50

2020

1) 2006 total heat and power production 28,5 TWh eleq/ CO2- emissions 18,2 mt = 638 g CO2/kWh

To provide reliable energy without CO2

VISION

STRATEGY

• Eliminate 50% of CO2-emission per kWh before 2020

• Eliminate 85% of CO2-emission per kWh before 2040

3

2006

15 / 85

638 g CO2/kWh1

320 g CO2/kWh

100 g CO2/kWh

Wind is key to the low carbon transition – and DONG Energy will continue to be a world leader

OPTIMIZED PLANNING AND EXECUTION OF PIPELINEStrong in-house construction competence to secure portfolio synergies

SIEMENS AGREEMENT 1800 MW supply agreement with steady supply

OPTIMAL OFFSHORE INSTALLATIONAcquisition of A2SEA world-leading installation vessels and crew

STRONG POSITION THROUGH INDUSTRAILIZATION OF OFFSHORE

Ploudalmezeauonshore

Other Danish on- and offshore1

Lake Ostrowo onshore

Storrun2009 onshore

Nygårdsfjellet I onshore

Nygårdsfjellet II2011 onshore UNDER CONSTRUCTION

(commissioning year)

Barrowoffshore

Burbo offshore

Horns Rev 2 2009, offshore

Gunfleet Sands 1+ 2 2009, offshore

London Array2012, offshore

Walney 1 + 2,2011 & 2012, offshore

IN OPERATION

Karcino2009, onshore

Karnice2009, onshore

4

Nysted offshoreHR 1 offshore

Capacity* MW

In operation 606

Under construction 1.198

Project development 1.990

*DONG Energy's share

50,03

0,040,28

0,35

0,390,44

0,45

0,670,85

1,08

1,101,21

1,271,70

1,81

1,823,28

3,40

3,673,78

7,00

8,429,26

11,7621,22

Greece

Netherlands

Austria

UK

Estonia

Italy

Sweden

France

Lithuania

Luxenbourg

Latvia

Belgium

Bulgaria

Poland

Portugal

Ireland

Germany

EU-27*

Czech Republic

Finland

Stovakia

Romania

Denmark

Spain

Hungary

Wind power production's share of power consumption 2007

The correlation between wind power-production, export and electricity prices

Today:

Denmark exports a large share of produced wind energy – at low prices

DONG Energy's calculations:

Additional 1000 MW wind power in western Denmark will produce 3,8 TWh – 3,2 TWh hereof will be exported

The majority of the power needed for the electric cars can be sourced through reduced export.

Our preliminary calculations show that 70% of the necessary power can be provided that way

Wind Export ExportPriceHours in in one year = 8,760 hours

6

The challenge of balancing production and consumption

Consumption and wind energy production in West Denmark from 4-17 December 2006

Wind production Consumption

- - - Double wind production capacity

7

Energinet.dk: Computed power imbalance for Horns Reef 1 & 2 = 400 MW

Fluctuation of -100/+175 MW in 15-20 minutes is possibleThat will require ~¼ power plant ramped up and down within 15 minutes

Even across short time intervals the windpower production varies highly, creating a need for system balancing

8

Zero = production

forecast

9

Udfordring 2: Uintelligent ladning

Normal-scenarie med opkobling ved hjemkomst efter arbejdstids ophør

00:00 23:59

Vil med 200.000 biler i DONG Energy’s forsyningsområde i 2020 kræve en udbyging af distributionskapaciteten i lavspændingsnettet med 92 pct.

Heraf vil ca. 50 pct. stamme fra elbiler

Men den leverede energi til bilerne vil kun repræsentere en stigning på 6%

9

10

Intelligent ladning

Ladningstidspunktet flyttet til timer med lav efterspørgsel og tilhørende lave priser

00:00 23:59

Intelligent ladning udnytter

•Overkapacit i elproduktionen

•Lav efterspørgsel fra andre forbrugsenheder

10

Consequently, the goals for DONG Energy are …

1. To secure a more value-creating demand for electricity

2. To make sure that most charging takes place at price low-points (typically between 22 and 05)

3. To make sure that EV-operators and their customers are reasonably incentivised to behave rationally

11

Which means do we have ?

Tarif structure

distribution tarif

fixed versus percentage based taxes on power

Metering infratructure

Implementation costs

Annual operational costs

Car registration tax exemption for EV's (or subsidy)

But what about PHEV's

And what about a gradual change of taxation policy towards congestions taxes

12

The Next Big Issue: Standardisation

1. Plugs

2. One or three phases – will determine charging time pr. kwh

3. Communication interfaces

- choice will impact billing solution and business model options

- must support integration with power supplier

- can enable network interoperability

13

Roaming – a play on Metcalfe's law

Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). First formulated in this form by George Gilder in 1993,[1] and attributed to Robert Metcalfe in regard to Ethernet,

From Wikipedea:

Implication is that if EV-owners belonging toone charging network can get access to power through another network a value gain is realised

In other words, market fragmentation shallbe avoided and roaming possibilities betweennetworks ought to be promoted

14

Charging in the Public Domain and Roaming functionality

Energy supplier #1 Energy Supplier #2 Energy Supplier #3

Service and control module

Service and control module

Roaming Roaming

SLAsSLAs

Switchboard

EV Operator #1 EV Operator #2

CS

CS

CS CS

CS

CS

Clearing

CS CS

Billing Billing

Communication line

Energy line

Financial line

Standards:Plug: IEC 62196-2 type 2 (Mennekes)Identification card: ISO 14443 (SIM-card standard)

Public Charging service provider + clearing house

15

Charging in the Public Domain and Roaming functionality (with multiple energy suppliers pr. chargespot)

Energy supplier #1 Energy Supplier #2 Energy Supplier #3

Service and control module

Service and control module

Roaming Roaming

SLAsSLAs

Switchboard

EV Operator #1 EV Operator #2

CS

CS

CS CS

CS

CS

Clearing

CS CS

Billing Billing

Communication line

Energy line

Financial line

Standards:Plug: IEC 62196-2 type 2 (Mennekes)Identification card: ISO 14443 (SIM-card standard)

Public Charging service provider + clearing house

16

Metering and charging (with multiple suppliers)

17

Fleet operatordatabase

Database

Electricity delivered by the Supplier

Consumption data per delivery point per hour

Grid Company

Billing

Fleet operatorSuppliers

Bill per month pr. supplier based upon aggregated fleet operator data per area (DK1/DK2)

∑ (M2 DK1) +∑ (M2 DK2)

Energinet.dkDataHub

Energinet.dk

M2

M2 (suppl. 1)

CS

From suppl. 1

From suppl. N

∑ (M2 DK1) +∑ (M2 DK2)

Billing

M2 M2

Invoiceto car customer

Bill pr. month (according to contract) based on aggregation of billing data from misc. energy suppliers

Consumption data per delivery point per hour per supplier

M2 (suppl. N)