1. © Siemens 2013 All rights reserved. Building an offshore wind supply chain Matthew Knight, Director Business Development UK Offshore Wind http://www.siemens.co.uk/round3

2. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 2 Siemens covers the complete energy value chain We provide reliable & proven  Wind turbine generators  Offshore grid connections  On and Offshore asset services  HVDC interconnectors  Finance for offshore wind and also  Conventional generation, tidal, biomass, CHP, etc. Siemens

3. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 3October 2013Matthew Knight, Siemens EnergyPage 3 A summer of offshore wind openings Michael Fallon, Energy Minister Greater Gabbard 7 th August Nick Clegg, Deputy PM Lincs 1 st August David Cameron, PM London Array 4 th July 2013 Ed Davey, Energy and Climate Change Secretary, Walney 9 th Feb 2012 Greg Barker, Climate Change Minister Gunfleet Sands 3, 12 th September Cameron positive on Siemens in Hull Sunday, 29 September BBC 1 (Sunday Politics) He also vowed to "keep pushing away" at securing Siemens' investment in the city, saying he "won't rest" until the "first foundations of the factory are laid.“ Hull Daily Mail Monday 30 th Sep “GET REAL, the idea that we can move forward with this wind farm expansion, and have 80% of these installations manufactured abroad is simply not viable in the longer term” ReCharge 13 th September

4. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 4 UK now has more Offshore Wind than RoW put together 1,075 wind turbines, 3.65GW * UK has world’s biggest offshore wind pipeline ≈50% of EU total Q2 2013 15.5% UK electricity came from renewables and 7.5% from wind ** 18,000 UK jobs now and 70,000 by 2023 *** * Renewable UK data Renewable UK data ** Department of Energy and Climate Change “Energy Trends” Department of Energy and Climate Change “Energy Trends” *** Renewable UK wind, wave and tidal sector Renewable UK wind, wave and tidal sector The UK’s best renewable opportunity? UK 51 GW DE 37 GW F 6 GW NL 5.9 GW DK 5.4 GW ES 6.8 GW ROI 4.2 GW FIN 4.5 GW BE 2.3 GW IT 2.8 GW POL 8.3 GW GR 4.4 GW EWEA figures from Feb 2013 Europe’s offshore wind plans Sea Installer with Siemens 6MW wind turbine at Gunfleet Sands, Feb 2013 16

5. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 5 Cost reduction and local jobs Wind costs have fallen 45% each decade We need to go faster As well as separate manufacturers’ initiatives there is a UK Government & industry wide approach June 2012 Crown Estate Offshore Wind Pathways June 2012 DECC Offshore Wind Taskforce Cost of energy can reduce 1/3 by 2020 Subject to rate of deployment Oct 2012 DECC Offshore wind Programme Board – treat this like a business project MV Resolution installing a Siemens 3.6MW wind turbine at London Array

6. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 6 Offshore parts are larger

7. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 7 One off chance to get manufacturers to locate here Concept for proposed Siemens Facility, Hull

8. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 8 What to do we need to make this happen for the UK? Commitment Economic Value Confidence

9. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 9 UK Policy – Energy Bill, EMR Delivery Plan, Industry Strategy The UK must spend c£110Bn on replacement electricity generation in the next decade * Energy Market Review aims to reduce investor risk so this can be borrowed at the lowest cost Government doesn’t want to pick winners and is sending some mixed messages 100gCO 2 /kWh central scenario: 45-55% low carbon by 2030, a mix of Carbon capture and storage Nuclear Offshore wind “The market will decide” But 200gCO 2 /kWh scenario implies wind industry stops in 2020 *The energy challenge – New Infrastructure DECC You TubeThe energy challenge – New Infrastructure DECC You Tube London Array, April 2013

10. © Siemens 2013 All rights reserved. October 2013 Matthew Knight, Siemens Energy Page 10 What’s in the Industry Strategy Notes the importance of scale to attract investment and reduce cost....then never refers to it again. Assigns lead roles Offshore Renewable Energy Catapult - co-ordinating technology innovationOffshore Renewable Energy Catapult GROW Offshore Wind service – £20m funding for MAS to help SMEs enter the industryGROW Offshore Wind service Offshore Wind Investment Organisation – help inward investmentOffshore Wind Investment Organisation NORSTEC – public communication of benefitsNORSTEC Renewable UK – publish timeline for projectsRenewable UK OW Programme Board – manage the industry’s cost reduction effortOW Programme Board OW Industry Council – chaired by minister oversees all the aboveOW Industry Council Businesses will invest when they believe there is a market Stanislav Yudin lifting one of 2 Siemens built 2,000 tonne offshore substations into place at Gwynt y Mor