European Energy Investment Trends

European Energy Investment Trends TBLI Paris 9 November 2006 Michael Liebreich © New Energy Finance, 2006

Global Investment in Clean Energy 2005: $48.9bn Figures marked * are based on New Energy Finance Desktop databases; all other figures are industry estimates based on various sources. Source: New Energy Finance $2.1bn* VC/PE Public markets Corporate RD&D Gov’t R&D Technology & Equipment $4.9bn* $7.0bn $6.0bn $20.0bn Total investment Small-scale projects Asset finance $21.9bn* $7.0bn $48.9bn Total deals $66.2bn M&A/ MBO $17.3bn* $7.2bn of Private Equity Investment

Global Investment in Clean Energy, 2004 - 2006 62% Growth 30% Growth 2006 annualised estimate based on Jan to Sept Source: New Energy Finance

Estimated Global VC/PE Investment 2001 - 2006 Includes all VC & PE investments. Number of deals in brackets. 2006 is annualised value Source: New Energy Finance 158% Growth

Global VC/PE Investment by Geography Q3 2005 – Q2 2006 Number of deals in brackets; Disclosed deals only; Excludes PE for Projects 148 8 43 97 No. discl’d 2,122 166 328 1,628 Total $m 100% 8% 15% 77% % 14.3 20.8 7.6 16.8 Avg. $m 182 TOTAL 9 ASOC 51 EMEA No. of deals Region 122 AMER

Investment in European Venture-Backed Companies by Sector 2000 – 2006 (EUR m & % growth) Excludes Buy-Outs. 2006 is annualised value. Products & Services include consumer business products & services, and retail Source: Dow Jones VentureOne and Ernst & Young; NEF

Global Clean Energy Funds Under Management by Geography and Fund Type at August 2006 $14bn Under Management in 113 Clean Energy Funds Number of Unquoted/Quoted Funds in brackets Source: New Energy Finance

Global Clean Energy Funds Under Management by Geography & Fund Focus at August 2006 $10bn (71%) in Clean Energy & Sector Specific Funds Number of Clean Tech/Clean Energy/Sector Specific Funds in brackets Source: New Energy Finance

Selected VC/PE Investor Exit Transactions 2005 - 2006

Global Public Market IPO and Secondary Transactions 2001 - 2006 Number of IPO/Secondary/Convertible and other deals in brackets. 2006 to end June Source: New Energy Finance

Wilder Hill New Energy Finance Global Innovation Index (NEX), December 2002 to September 2006 December 30 2002 = 100. Calculated to start of Sep 2006 Source: New Energy Finance, American Stock Exchange

Forecast global number of VC & PE investments 2006 - 2012

Estimated $100bn equity investment 2006 – 2012

Universe of 100+ European VC-backed clean energy companies

500 per year investments by 2012

Keeping the Finance Flowing – 10 Imperatives

Address policy weaknesses in developed country laggards.

Develop retail finance models for home and small business-scale clean energy projects

Roll out microfinance programmes for small-scale projects in the developing world.

Accelerate the incubation of new technologies.

Improve the macroeconomic environment for early stage technology companies.

Develop mechanisms to support pilot projects which require debt but still have technology risk.

Break the offshore wind funding bottleneck.

Ensure the developing world has access to the most energy-efficient generation and industrial technologies.

Introduce “industrial strength” mechanisms to finance large projects in the developing world.

Ensure the survival and extension of carbon trading.

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