1. Lessons Learnt from European Offshore Wind: 1999 to 2011 – a broad brush perspective Sebastian Chivers, Senior Vice President June 22, 2011 – Virginia Beach, VA

2. About PMSS Global consulting firm, established in 1994 and working exclusively in renewable energy We work in support of the world’s leading renewable energy businesses, providing products, services and practical recommendations throughout the capital value chain Team of over 120 engineers, scientists and consultants from a wide range of backgrounds and representing some of the sharpest consulting minds in the renewable energy business Experience on the majority of offshore wind projects worldwide, and over 90% of the Europe’s operating projects Offices throughout Europe, and USA headquarters in New York City

3. Evolution of UK Offshore Wind – 1999 to 2002 Typically prototype scale projects / 2 WTGs / Client led project team 4 Assets (WTGs, Cable, Grid) / simple contracting structure with 10-20 managed interfaces Outcome: some ££ and some lost time considered bearable by the Client for a demonstration project Insert Pic

4. Evolution of UK Offshore Wind – 2002 to 2007 Typically 25-30 WTGs, with mixture of EPC and multi-contract Assets including WTGs, inter-array and export cables, occasional requirement for OSP, onshore S/S and O&M facility 100+ managed interfaces Outcome: limited proactive management significant £cost and time-loss for Client and EPC contractors all contracting parties becoming more Risk adverse Insert Pic

5. Evolution of UK Offshore Wind – 2007 to 2011 Typically 100-300 WTGs, further from shore / deeper water / much larger-scale Assets including multiple OSPs, complex cable and grid issues, virtually all multi-contract and Client managed Potential no. of interfaces >5000 Outcome: implementation of formal management process (perhaps not yet at the optimum level) better definition / clearer scopes / more concise contacts / improved comms. resulting in reduced risk in terms of programme and cost proactive and not reactive Insert Pic

6. Evolution of UK Offshore Wind – 2011 to 2020+ Projects 200km+ from shore in deep water locations / multi- project zones / 3000+ WTGs Multiple OSPs with AC/DC converters / DC offshore to shore connections / offshore accommodation platforms / complex access and logistical challenges Potential no. of interfaces ??? Outcome if we do not manage Risk appropriately: prohibitive excess £cost “trans-season” project delays potentially major impacts on stakeholder confidence and industry as a whole Insert Pic

7. Lesson Learnt I – Project Management Effective leadership Building the team – early with experienced people The cost of the project team is a fraction of the CAPEX Project demands vs. supply chain availability How do we fill this gap...?

8. Lesson Learnt II – Design control Holistic approach to Design Risk Analysis (DRA) Engineering Design Management process Engineering Interface Coordination

9. Lesson Learnt III – Improving EHS performance Leadership and Culture Goals and Objectives Alignment of Standards EU 92/57 implementation (CDM 2007) Emergency Preparedness Learning from previous experience Working with Authorities (HSE, MCA etc.)

10. Lesson Learnt IV – Managing Project Interfaces Clear definition of Interfaces Custodians Include in Contracts WBS / PIR Monitor Appropriate resources ∞∞

11. Lesson Learnt V – Planning for O&M Clear and focused O&M philosophy Integrate O&M team with Construction phase processes Transition planning from Construction to O&M Proactive not Reactive Spare Parts strategy Vessel and Aircraft strategy Asset Optimization Tools

12. Lesson Learnt VI – Murphy’s Law “Expect the unexpected”

13. Contact us Sebastian Chivers Senior Vice President www.pmss.com PMSS America, Inc. 590 Madison Avenue 18 th Floor New York, NY 10022 Tel: +1 212 521 4161 Cell: +44 7951 076 758 Email: sjc@pmss.com