Owner ’s Perspective of Offshore Wind & R&Din Support of the Hornsea Offshore Wind FarmsThe world’s first Multi GW-scale wind farmAndrew Henderson, Lead Offshore Windfarm EngineerSUPERGEN Wind Hub General Assembly, DurhamPONDUS Ref.: 2775619 / 900-14-0139Thursday 27th April 2017

this is what we doBelfast Harbour2

DONG Energy at a glance Headquarters in Denmark 6,200 employees (including Oil & Gas) Revenue in 2016 DKK 61.2 bn EBITDA in 2016 DKK 19.1 bn Phase out the use of coal by 20234%* Bioenergy &Thermal Power Generates and sells power and heat to customers inDenmark and Northwestern Europe4%* Oil & Gas80%*Wind Power(discontinued operations) Produces oil and gas from fields in Denmark,Norway and the UK Develops, constructs, owns and operates offshore windfarms in Denmark, Germany, the Netherlands and the UK.12%* Distribution &Customer Solutions Development projects in Taiwan and the USA Power distribution grid on Zealand and sale of powerand gas to customers in Northwestern Europe* Share of the Group’s capital employed3

Leading the charge to decarbonisation1,000thturbineinstalled*We ensure this by having our suppliers of wood pellets and wood chips document their compliance with our sustainability requirements.**This is the most ambitious target among our European peers.

DONG Energy Wind Power overviewDONG Energy Wind Power geographical footprintUSAEuropeUnparalleled experience and track recordAsia PacificBay State WindBoston officeTaipei officeFormosa 1.1Formosa 1.2Ocean WindAnholtMiddelgrundenWalney 1 & 2Walney ExtensionWest of Duddon SandsHorns Rev 1 & 2NystedGode Wind 2Gode Wind 3 & 4Race BankLincsGode Wind 1Gunfleet Sands 1 & 2Borssele 1&2Gunfleet Sands 3London Array21 offshore wind farmsin operation20177 offshore wind farmsunder constructionVindebyBarrowBurbo Bank Ext.Burbo Bank25 years of experience and trackrecord in the offshore wind sectorAvedøreWestermostRoughHornsea 1Hornsea 2 & 3 & 4Isle of Man1991Borkum Riffgrund 13.6 GW2,0003.8 uction7.5 million3.3 GWEuropeanswith cleanelectricityWorld'sleadingoperatorBorkum Riffgrund 2German ClusterIn operationUnder constructionUnder developmentDecommissioned after 25 years514Partnerships

DONG Energy Wind Power has built a strong integrated end-to-endbusiness modelDONG Energy Wind Power core competencies 2,000Full-time employees2DevelopBuildOperateOwnIdentify and matureprojectsManageconstruction,sourcing and supplyConduct life-cyclemaintenanceAttract capitalthrough partnerships 110 1,150 640 100Full-time employees Ability to design and optimise projects with a 'total life-cycle cost of wind farm' mindset Experience and expertise along the entire value chain allow for better understanding andmanagement of risks End-to-end model reduces LCoE through fast feedback and learning across the entireorganisation 2,000 2 650 40 75NorthlandStatoilPower1. Front-end engineering design2. Excluding CT Offshore and A2SEA as of January 20176 100SSE 160 250 250WPDInnogyEOnVattenfall

At the forefront of making the industry cost competitiveMultiple levers to drive down cost in offshore wind123ScaleInnovationIndustrialisation Turbines and rotor size Foundation design (e.g. monopiles) Sites Electrical Transition from single supply to multipleglobal suppliers Vessel size Cable capacity 180mRapid technological developmentWind turbine rotor diameter, year of commissioning154m164m120m107m90mBoeing 747, 76m80m2002200520072011201420161. Currently there are no turbines available on the market with a rotor diameter of 180m, however Adwen has announced that they expect to bring such a turbine to market in 2020.72020 1

In 2012, DONG Energy set an ambitious target for cost reduction for2020 and industry is well ahead of planDifferent national scope leads to differences inthe cost of electricity from offshore windLevelised revenue of electricity, incl. transmission costs /MWh1, 2016-prices1381281101089069Walney ExtensionUK2014Race BankUK2015East AngliaUK2015BorkumRiffgrund IIDE2015Horns Rev IIIDK20158Borssele I & IINL20166060Kriegers FlakDK2016Borssele III & IVNL2016

Hornsea Project One Offshore Wind Farm

Challenges presented by the Round 3 ProjectsHornsea Project One will require a ReactiveCompensation Station approximately half way alongthe cable route. The Reactive Compensation Station enables the highvoltage AC system to work with cable lengths longerthan those previously used for offshore wind. Multi-million pound contract awarded to Babcock forthe construction of a world first offshore reactivecompensation station.Greater distance from shore Bringing forward new technology to managetransmissions losses associated with longer exportcable routes. Traditionally, offshore wind farms have used HighVoltage Alternating Current (HVAC) transmission. Challenge of bringing forward 66kV cables to reducelosses over greater distances. Will Direct Current (DC) be used in future?Walney offshore wind farm from airTypical offshore substation platform10

Challenges presented by the Round 3 ProjectsInstalling wind farms further offshore Vessels need to be capable of holding largercomponents (e.g. next generation turbines) Longer distance from ports/staging facilities tooffshore array and export cable route creates theneed for greater efficienciesOperating and maintaining windfarms further out toSea . New state of the art “SOV” vessel to operate from thenew East Coast hub, UK’s largest offshore wind O&Mbase located in Grimsby. Up to 28 consecutive days offshore. To service 6-8 turbines a day Innovative approach to O&M: extended technicianshifts with 2 weeks on, 2 weeks off Safety and operational efficiency benefits: ability oftechnicians to “walk to work” Accommodation capacity for up to 60 peopleOffshore accommodation platform during construction for Race Bank11

Offshore SubstationsRace Bank1230-04-2017

DONG Energy is currently exploring the potential to build one ofthe world’s largest offshore wind farms The Project will have a totalcapacity of up to 2,400 MWand could be capable ofgenerating enough electricityto meet the average dailyneeds of over 2 million UKhomes. Hornsea Project Three hassigned a grid connectionagreement with National Gridfor connection at an existing400 kV Substation, just southof Norwich. The Project has identified asuitable landfall zone in thevicinity of Weybourne and iscurrently consulting on anindicative export cablecorridor.We have based the above calculation on a load factor of 42% and a household consumption of 4.1MWh per year. Source: DECC, 201513

How R&D has Benefitted the Hornsea Zone Offshore WindfarmsNew Technology at Hornsea One Offshore Reactive Compensation Substation Suction-Caisson Jacket Foundations Twisted Jacket Foundation (for Met Mast) Offshore LiDAR on platforms (secondary source) 400MW transmitted down each export cable O&M at 140km from ShoreMore general Technology Developments Continuous Design Optimisation of MonopileFoundations Optimised (to the extent possible) WindturbineLayout14

Highlights of R&D at DONG Energy Development and testing of newPeople to ContactFoundations Structures Jørn Scharling Holm; TechnologyPartnerships Manager BEACon: scanning radar currentlyoscanning Westermost Rough [email protected] Christina Aabo; Head of R&Do Joint Industry [email protected] Emily Woolfenden; UK Stakeholderdemonstrationo Floating LiDARo Monopile design PISA & [email protected] your presentero represents DONG Energy on the Carbon Trust“Wakes” R&D Workstream Other Key Areaso Power Curve [email protected]

BEACon Scanning LiDARWestermost Rough16

Wind speed measurements17

Offshore wind power is a large scale renewable technology withgrowth rates exceeding other renewablesFastest growing renewable technology in OECDOffshore wind power offers multiple advantagesInstalled capacity CAGR, 2014-2020%Offshore windUtility size power generation25%659 MW Walney Extension will power more than 460,000 UK homesOffers 45% capacity factors21Solar PV14%Significantly higher than onshore wind and solar PVRapidly declining costOnshore wind7%Industry maturity, volume and technological development reduce LCoE3Limited visual impact on landscapeHydro0%Wind farms are built far from shoreSource: Bloomberg New Energy Finance (BNEF)1. Sum of utility-scale PV and small-scale PV2. Capacity factor is a performance indicator measuring to what degree a wind farm has produced according to the farms capacity (actual production / (capacity x hours in period))3. According to BNEF, long-term offtake price required to achieve a required equity hurdle rate for the project18

By 2025 offshore wind power will be truly global Strong growth in established and new offshore wind marketsInstalled Capacity, GW 8 GW14%78.933.4 6 GW27%39.712.545.5 1 GW33%2005Europe27.211.00.7New markets11.90.92015#GW addition/year%2020CAGRSource: Bloomberg New Energy Finance (BNEF), H2 2016 offshore wind market outlook192025

Questions?Comments?and thank you for your attentionco-author acknowledgements:Emily Woolfenden20

Northland Power Statoil SSE WPD Innogy EOn Vattenfall Identify and mature projects Manage . Cable capacity Innovation . /MWh1, 2016-prices In 2012, DONG Energy set an ambitious target for cost reduction