Investment trends in Alternative Energy CBI Energy Conference - Panel Session: The UK’s Energy Challenge 22 October 2009

Agenda Ernst & Young Energy & Environment practice Alternative Energy becomes mainstream Country Attractiveness Indices methodology UK’s relative position

Ernst & Young Energy & Environment practice

Alternative Energy becomes mainstream

Country Attractiveness Indices methodology

UK’s relative position

Ernst & Young’s market leadership More mandates in 2008 than any other financial advisory firm Source: Dealogic Global Project Finance Review 2008 Deals closed Source: Project Finance International, January 2008 Global and EMEA Project finance Renewable Energy Financial Advisor of the Year – Renewables Ernst & Young 2008 Top two by advisory mandates won Firm 2008 2007 2006 2005 Ernst & Young 1 1 1 1 PwC 2 2 2 2 Project finance PFI/PPP deals Financial advisor Deals Value (US$m) Deals Value (US$m) 1. Ernst & Young 31 7,758 25 5,940 2. KPMG 27 9,313 24 7,995 3. PwC 27 7,476 22 3,330

More mandates in 2008 than any other financial advisory firm

Deals closed

Global and EMEA

Alternative Energy becomes mainstream In 2008, for the first time, more wind power was installed in the EU-27 than any other electricity generating technology. The wind power capacity installed by end 2008 will, in a normal wind year, produce 142 TWh of electricity, equal to about 4.2% of the EU’s electricity demand, and avoid the emission of 108 million tonnes of C02 per year. Source: EWEA Source: EWEA, Platts (excl. PV) End 07 Inst 2008 End 08 % yoy Germany 22,247 1,665 23,903 7% Spain 15,131 1,609 16,740 11% Italy 2,726 1,010 3,736 37% France 2,454 950 3,404 39% UK 2,406 836 3,241 35% Total EU-27 56,517 8,484 65,001 15% Inst 2008 %Share Wind 8,484 43% Gas 6,932 35% Oil 2,495 13% Coal 762 4% Hydro 473 2% Total 19,651 15%

In 2008, for the first time, more wind power was installed in the EU-27 than any other electricity generating technology.

The wind power capacity installed by end 2008 will, in a normal wind year, produce 142 TWh of electricity, equal to about 4.2% of the EU’s electricity demand, and avoid the emission of 108 million tonnes of C02 per year.

Source: EWEA

Source: EWEA, Platts (excl. PV)

The All Renewables Index at August 2009 – top 10 nations The All Renewables Index covers a range of renewable energy technologies, with a focus on power generation Onshore and offshore wind together make up 73% of the scores The Index has been running since 2003 and is now distributed to over 3,000 contacts within the industry The CAI is used by Board-level decision-makers and is recognised by governments to influence policy-making (eg. US senate hearings) Rank 1 Country All renewables Wind index Onshore wind Offshore wind Solar Biomass/ other Geothermal Infrastructure 2 1 (1) US 70 71 75 59 73 64 67 68 2 (2) Germany 66 67 66 71 65 64 60 64 2 (3) China 66 69 73 59 54 56 60 69 4 (4) India 62 63 70 42 61 56 43 60 5 (5) Spain 60 61 66 46 66 53 35 63 6 (6) Italy 59 59 64 46 64 55 65 64 7 (7) UK 57 61 59 66 37 55 34 60 7 (8) France 57 59 60 54 53 57 28 58 9 (9) Canada 55 60 64 46 33 48 31 59 10 (9) Portugal 54 56 61 43 51 45 33 58

The All Renewables Index covers a range of renewable energy technologies, with a focus on power generation

Onshore and offshore wind together make up 73% of the scores

The Index has been running since 2003 and is now distributed to over 3,000 contacts within the industry

The CAI is used by Board-level decision-makers and is recognised by governments to influence policy-making (eg. US senate hearings)

All renewables country attractiveness index history The past seven years

The past seven years

Thank you