Renewable Energy Markets 2018 Environmental Policy and Outlook Conference May 15, 2018 Renewable Energy Markets

Renewable Energy Markets Who is Avangrid Renewables? Growth of Utility-Scale Renewables Changes in the U.S. generation mix Location of New Renewable Projects Recent Trends in Renewable PPAs Renewable Energy Pricing Policy Impacts on Renewable Energy Questions Renewable Energy Markets

Avangrid Renewables, LLC A collection of exceptional assets… One of the largest wind project owners in the U.S. with more than 6 GWs owned and contracted US Renewables More than $10 billion of U.S. assets at nearly 60 installed plants 725+ employees at the end of 2016, compared with 12 in 1999 Wind Power Solar & Biomass 636 MW of CCGT & peaking capacity on the strategic CA-OR border 6,000+ MW 536 MW CCGT 100 MW peaking 106 MW Solar 55 MW Biomass Represents 39% of Iberdrola S.A.’s global wind capacity And clean gas generation …focused on operational excellence and selective growth April 2017

Avangrid Renewables in Ohio Blue Creek Wind Farm 300 MW wind farm in Van Wert, OH Achieved commercial operation in 2012 Power purchase agreements with Ohio-based customers Additional development Solar Renewable Energy Markets

Growth of Installed Wind Generation Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA) Renewable Energy Markets

Growth of Installed Solar Generation Source: Wood Mackenzie, Limited/SEIA U.S. Solar Market Insight® Renewable Energy Markets

Changes in the U.S. Electric Generation Mix Source: Bloomberg Finance L.P. and the Business Council for Sustainable Energy “2018 Sustainable Energy in America Factbook” Renewable Energy Markets

Changes in the U.S. Electric Generation Mix U.S. Electricity Mix 2001-2017 Solar and wind projects made up 62% of new power construction in 2017 12.5 gigawatts worth of coal plants are set to shut down in 2018 Source: Bloomberg Finance L.P. and the Business Council for Sustainable Energy “2018 Sustainable Energy in America Factbook” Renewable Energy Markets

Wind Construction in 2017 Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA) Renewable Energy Markets

Wind Capacity by State Renewable Energy Markets

Location of Wind Projects Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA) Renewable Energy Markets

Solar Capacity by State Renewable Energy Markets

Location of Expected Power Plant Additions – MAR to DEC 2018 Renewable Energy Markets

Offshore Wind Source: NREL 2016 Offshore Wind Energy Resource Assessment for the United States Renewable Energy Markets

Renewable PPAs – Recent Trends Hub-settled transactions Negative price protection Shorter term lengths REC swaps Many of these changes are being driven by corporate customers Renewable Energy Markets

Renewable Energy Buyers – Shift to Corporate Customers Source: U.S. Wind Industry Annual Market Report, Year Ending 2017, American Wind Energy Association (AWEA) Renewable Energy Markets

Corporate Renewable Buyers in 2017 Renewable Energy Markets

Corporate Buyers 2013-2017 Renewable Energy Markets

Levelized Cost of Energy (LCOE) in 2017 Source: Lazard's Levelized Cost of Energy Analysis - Version 11.0 Renewable Energy Markets

Levelized Wind PPA Prices by PPA execution date and region Renewable Energy Markets

Costs of Utility-Scale Solar PV Renewable Energy Markets

Policy Impacts on Renewable Energy Federal Policies Wind Production Tax Credits $23/MWh for projects that commenced construction prior to 2018 10 years after in-service date 100% of PTC if started construction in 2016, drops 20% each year, ends after 2020 Solar Investment Tax Credits (Utility Scale) 30% through 2019, drops to 10% after 2021 Import Tariffs 30% tariff on imported solar panels, decreases to 15% in 2021 Renewable Energy Markets

Policy Impacts on Renewable Energy State Policies Permitting Setbacks Tax Incentives Renewable Portfolio Standards (RPS) Renewable Energy Markets