Electricity Generation Rwecom Fact06

92

Utilities - Electricity - Generation - Market Data

Shares of Primary Energy Sources in Total Electricity

Generation in Europe (2004/2005)

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Poland

Slovakia

Spain

Sweden

Czech Republic

Hungary

Netherlands

Portugal

66.08

86.09

36.06

70.41

572.6

606.1

59.3

25.05

299.5

3.69

154.13

30.36

293.03

155.9

UK 394.46

84.33

33.71

98.48

44.97

0 20 40 60 80 100

in % in TWh

100 200 300 400 500 600

Gas Oil Coal/Lignite Nuclear

HydroWind

Other

Total power generation

Source: Cambridge Energy Research Associates.

93


Development of the European Power Plant Portfolio

from 2000 to 2030

Capacity of EU 15 member states

in GW

Assumption: Decommissioning after 40 years of operation. Nuclear phaseout in Germany included.

?900

800

700

600

500

400

300

200

100

0

Additional capacity of100,000 MW

Replacement capacity of200,000 MW

2000 2005 2010 2015 2020 2025 2030

Source: VGB PowerTech e.V., Essen, 2004.

OthersGas

Coal (in total)Nuclear

Water

94


Development of Energy Consumption in Germany

2001 2002 2003 2010

Electricity

in TWh

134

74

57

240

Development by segment (2001 2010)

505

137

78

58

241

514

139

81

59

242

521 547

0.7% p.a.

B2B/Public institutions Commerce and agriculture Residential customers B2B/Industry

2001 2002 2003 2010

Gas

in TWh

229

115

137

962

240

125

134

460

959

235

130

137

490

9921,081

1.2% p.a.

Others Power plants B2B/Industry Residential and commercial customers

Source: Eurelectric 2005/EU Commission 2003.

481

95


German Energy and Power Mix (2005)*)

Primary energy consumption:

492 million tons of coal equivalent

*) Estimated figures.

Source: Arbeitsgemeinschaft Energiebilanzen (Energy Balance Working Group), VDEW.

Other 36%

Natural Gas 23%

Hard coal 13%

Nuclear 12%

Lignite 11%

Renewables 5%

Gross power generation: 600 TWh

Nuclear 29%

Lignite 26%

Hard coal 21%

Renewables 11%

Natural Gas 10%

Other 3%

96


Development of the German Power Plant Portfolio

from 2000 to 2030

Assumption: Decommissioning after 40 years of operation. Nuclear phaseout included.

150

100

50

0

OthersGas

CoalLignite

NuclearWater

Replacement capacity of 40,000 MWbetween 2010 and 2020

2000 2005 2010 2015 2020 2025 2030

Source: VGB PowerTech e.V., 2004.

in GW

97


Planned Power Plant Projects in Germany (I)

Commercial

Source Net capacity operation

Company Planned location of energy in MW presumably till

RWE Power Weisweiler Gas 540 2006

Concord Power Lubmin I Gas (CCGT)*) 1,200 2007

Trianel Power Hamm-Uentrop Gas (CCGT)*) 800 2007

Mark-E/Statkraft Herdecke Gas (CCGT)*) 400 2007

Statkraft Hrth Gas (CCGT)*) 800 2007

E.ON Kraftwerke Irsching Gas (CCGT)*) 800 2008

Norddeutsche Affinerie Hamburg Waste 100 2008

RWE Power BoA 2/3, Neurath Lignite 2,100 2010

Vattenfall Europe Generation Boxberg Lignite 670 2010

STEAG/EVN Duisburg-Walsum Hard coal 750 2010

Stadtwerke Ulm Blaubeuren Pump storage 45 2010

Vattenfall Europe Hamburg-Moorburg Hard coal 750 2010/11

Electrabel/Norddeutsche Hamburg/Stade/ Affinerie Wilhemshaven Hard coal 600 2010/11

E.ON Kraftwerke Datteln Hard coal 1,000 2011

Stadtwerke Bremen Erzeugung Bremen-Mittelbren Hard coal 800 2011

Energie- und WasserversorgungMittleres Ruhrgebiet Ruhrgebiet (open) Hard coal 1,100 2011

STEAG Herne Hard coal 750 2011

RWE Power Hamm Hard coal 1,500 2011

Sdweststrom Baden-Wrttemberg (open) Hard coal 750 open

Kraftwerke Mainz-Wiesbaden Mainz Hard coal 750 open

RWE Power Lingen Gas (CCGT)*) 875 open

N-Ergie Dettelbach Gas 800 open

Gesellschaft fr Stromwirtschaft open Gas 400 open

Electrabel Saarland Gas 400 open

Total 18,680

*) CCGT = Combined Cycle Gas Turbine.

Source: VDEW 2005, public press releases.

98


Planned Power Plant Projects in Germany (II)

Duesseldorf

Munich

Schwerin

Dresden

Herne

Mainz

Saarbruecken

Hamburg

Lubmin

Neurath

Lingen

DattelnHamm

Weisweiler

DuisburgHerdecke

Hrth

Blaubeuren

Dettelbach

Irsching

Boxberg

Bremen

HamburgMoorburg

Being built

Planned

Optional

Source: VDEW 2005, public press releases.

99


German Merit Order: Theoretical Power Pricing With and

Without Emissions Trading

Market price incl. CO2

Market price excl. CO2

CO2 costs of fossil fuel-

fired power plants

variable costs of power plants (excl. CO2)Must run3)

Nuclear

Hard

coal

new

Hard

coal

old

Lignite

old

CCGT2)

new

Pow

er p

rice

Power installed

Assumed range of power demand

Marginal plant

OCGT1)

old

Lignite

new

Impact of emissions trading

on power price

1) OCGT: Open Cycle Gas Turbine.

2) CCGT: Combined Cycle Gas Turbine.

3) Must run: run-of-river, wind, CHP.

Source: RWE.

100


Installed national generating capacity

+ Hydro power stations

+ Nuclear power stations

+ Fossil fuel power stations

+ Renewable energy sources (other than hydro)

+ Not clearly identifiable energy sources

= National net generating capacity

- Unusable capacity

Of which mothballed capacity

- Reserve capacity

- Outages and overhauls (fossil fuel power stations)

= Reliable available capacity

- Load

Remaining capacity

UCTE Systematic for Evaluating the Remaining

Generation Capacity in Europe*)

*) Equivalent with the definition of the remaining capacity of Verband der Netzbetreiber VDN e.V.

beim VDEW (German Interconnected Power Grid Association).

101


Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul

02 02 04 04 05 05 06 06 08 08 10 10 15 15

Europe:

Capacity Bottlenecks in Summer and Winter

80

70

60

50

40

30

20

10

0

Remaining power generation capacity1) 2002 20152)

in GW

1) Assumption: only new power plants whose commissioning can be considered as sure are taken into account.

2) Basis: third Wednesday, 11 a.m. Nuclear phaseout in Germany included.

Source: Union for the Coordination of Transmission of Electricity (UCTE):

System Adequacy Forecast 2002, 2004 and 2006 2015.

102


Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul

02 02 04 04 05 05 06 06 08 08 10 10 15 15

Germany:

Capacity Bottlenecks in Summer and Winter

10

8

6

4

2

0

Remaining power generation capacity 2002 2015*)

in GW

Domestic generating plant capacity Germany: 119.4 GW (2005)

*) Basis: third Wednesday, 11 a.m. Nuclear phaseout included.

Source: Union for the Coordination of Transmission of Electricity (UCTE):

System Adequacy Forecast 2004 2010 and Forecast 2006 2015 (www.ucte.org).

Substantial generation capacity taken out (RWE: 3 GW already taken out)

Some capacity only available part-time (e.g. wind)

Increased volatility causes increased optionalities

103


Reliable available capacity

1) Accounts for low water volume, wind shortfalls, official requirements,

long-term plant conservation and capacity unusable due to permits.

2) Reserves for grid operator system services.

3) Outages and overhauls of thermal power plants.

Source: Union for the Coordination of Transmission of Electricity (UCTE).

Remaining Power Generation Capacity in Europe

Status: December 21, 2005

in GW


in GW

109.7

23.7

28.7

= 431.1= 440.3

593.2611.3

34.0

110.0

27.0

Unusable capacity1)

Total European

power plant capacity

Reserve capacity2)

Outages and overhauls3)

360.6369.5 Load

3.48.2 Import balance

Remaining capacity 70.670.8

104


Reliable available capacity

1) Accounts for low water volume, wind shortfalls, official requirements,

long-term plant conservation and capacity unusable due to permits.

2) Reserves for grid operator system services.

3) Outages and overhauls of thermal power plants.

Source: Verband der Netzbetreiber VDN e.V. beim VDEW (German Interconnected Power Grid Association).

Remaining Power Generation Capacity in Germany


in GW


in GW

17.9

7.2

3.5

= 86= 82.7

114.6119.4

6.8

22.8

7.1

Unusable capacity1)

Total German power plant

capacity

Reserve capacity2)

Outages and overhauls3)

77.276.7 Peak load

0.20.5 Import balance

Remaining capacity 8.86.0

105


Starting Point:unbalanced grid situation

(e. g. power station breakdown)

Primary Automatic control at the

generator/turbine

Normally coal-fired or nuclear

power plants

Secondary Manual control by the

grid operator

Normally pumped storage

Minute reserve

Manual control by the power

plant dispatcher

Normally coal and gas fired

power plants

Balancing Power: How Does it Work?

0:00

15:00

30:00

Grid un-balanced

Balanced

grid

situation

Minutes Power station breakdown

0:30

106


Factors Exerting a Major Influence on Electricity

Wholesale Prices

CO2 prices

Gas prices

Oil prices

Coal prices

Time of day

Thermal power plants

Power plants/grids

Lighting/end consumer behavior

Windpower plants

Hydro storage and run-of-river power plants

Air con-ditioners/elec-

tric heaters

Lighting

Uranium prices

Long-term factors

Cyclical fluctuation Political decisions Capacity expansion

Electricityprices

Factors of supply Factors of demand Factors of supply and demand

Wind

Precipitation

Temperature

Clouds

Revisions

Technical

faults

Vacations

Public holidays

107


0 5 10 15 20 25 30 35 40 45 50 weeks

Stable Recovery of Wholesale Power Prices (I)

64

60

56

52

48

44

40

36

32

28

24

20

16

Forward prices for base-load*) power at the wholesale level

(Monthly averages for yearly production traded in prior years)

in /MWh

Ongoing price drivers

Growing capacity constraints

Higher cost of fuel

CO2 emissions trading

Wholesale prices have risen, but are still below new entrant levels.

2006 in 2005

2007 in 2006

2005 in 2004

2004 in 2003

2003 in 2002

2001 in 2000

2002 in 2001

*) As of July 2006.

Source: RWE Trading.

108


Stable Recovery of Wholesale Power Prices (II)

Forward prices for peak-load*) power at the wholesale level

in /MWh

*) As of July 2006.


Ongoing price drivers

Growing capacity constraints

Higher cost of fuel

CO2 emissions trading

Wholesale prices have risen, but are still below new entrant levels.

0 5 10 15 20 25 30 35 40 45 50 weeks

86

80

74

68

62

56

50

44

38

32

26

20

2006 in 2005

2007 in 2006

2005 in 2004

2004 in 20032003 in 2002

2001 in 2000

2002 in 2001

109


Jun Dec Jun Dec Jun Dec Jun Dec Jun

02 02 03 03 04 04 05 05 06

Since the End of 2003 France Has Been a Net Importer

of Electricity from Germany Most of the Time

3,000

1,500

0

- 1,500

- 3,000

- 4,500

- 6,000

- 7,500

Monthly cross border nominations: France Germany

in MW

Source: Rseau de Transport d'Electricit (French transport system operator), 2006.

G

> F

F

> G

max| min monthly mean

110


Comparison of Wholesale Prices in European Power Markets

January

2005

UK Netherlands- - - France Germany Nordpool (Scandinavia)


in /MWh

Absolute development of 2007 base load forward prices

85

80

75

70

65

60

55

50

45

40

35

30

25

May Jul Sep Nov Jan Mar May Jul

05 05 05 05 06 06 06 06

111


Electricity Prices in the UK

in /MWh

Forwards for 2005 Forwards for 2006 Forwards for 2007

Jun

04

Aug

04

Oct

04

Dec

04

Feb

05

Apr

05

Jun

05

Aug

05

Oct

05

Dec

05

Feb

06

Apr

06

Jun

06

Aug

06

70

65

60

55

50

45

40

35

30

25

20

15

10

70

65

60

55

50

45

40

35

30

25

20

15

10

- - - Wholesale peak*)

Wholesale base*)

*) At the end of the relevant month.

Normal thermal efficiencies assumed.

1) OCGT: Open Cycle Gas Turbine.


Source: RWE.

112


UK Merit Order: Theoretical Power Pricing With and Without

Emissions Trading (at Wintertime with High Gas Prices)

Market price excl. CO2

Market price incl. CO2

Must

run

Pow

er p

rice

Power installed

Assumed range of power demand

Marginal plant

Nuclear

CO2 costs of fossil

fuel-fired power plants

Coal CCGT2) Oil

OCGT1)

variable costs of power plants (excl. CO2)

113


Coal Price Development

Sep

05

Nov

05

Jan

06

Mar

06

May

06

Jul 0

5

May

05

Mar

05

Jan

04

Nov

03

Mar

04

May

04

Jul 0

4

Sep

04

Nov

04

Jan

05

Mar

02

May

02

Jul 0

2

Nov

02

Sep

02

Jan

03

Mar

03

May

03

Sep

03

Q4

2006

Q3

2006

2007

Jul 0

3

in /t coal equivalent (ce)

CIF-NW Europe

- - - - Forward TFS (Traditional Financial Services Ltd.)1)

BAFA2) monthly

- - - - BAFA2) monthly (expected)

1) As of August 4, 2006.

2) Bundesamt fr Wirtschaft und Ausfuhrkontrolle (Federal Office of Economics and Export Control).

BAFA2) 200244.57 /t ce

CIF-NWE 200343.74 /t ce

BAFA2) 200339.87 /t ce

BAFA2) 200455.36 /t ce

CIF-NWE 200557.27 /t ce

BAFA2) 200565.02 /t ce

CIF-NWE 200467.44 /t ce

CIF-NWE 200239.40 /t ce

85

80

75

70

65

60

55

50

45

40

35

30

Jan

Mar

Nov

99

Jan

00

Mar

00

May

00

Jul 0

0

Sep

00

Nov

00

Jan

01

Mar

01

May

01

Jul 0

1

Sep

01

Nov

01

Jan

02

Mar

02

May

02

Jul 0

2

Sep

02

Nov

02

Jan

03

Mar

03

May

03

Jul 0

3

Sep

03

Nov

03

Jan

04

Mar

04

May

04

Jul 0

4

Sep

04

Nov

04

Jan

05

Mar

05

May

05

Jul 0

5

Sep

05

Nov

05

Jan

06

Mar

06

May

06

Jul 0

6

16.66

11.279.35

40.00

34.50

21.50

27.00

12.65

114


South Africa

USA East Coast

Australia

- - - - Colombia

Development of Sea Freight Rates for Hard Coal

45

40

35

30

25

20

15

10

5

0

in $/t

Source: Frachtcontor Junge Co., VDKI.

11.21 10.90

42.40

31.20

17.40

22.6020.23

12.88

115


Main Sea Freight Trading Routes for Hard Coal

INDONESIA

SOUTH AFRICA

CHINA

COMMONWEALTHOF INDEPENDENTSTATES

POLANDCANADA

USA

COLOMBIA/VENEZUELA

To theFar East

27

28

63

71

1165

72

129

234

AUSTRALIA

Canada/USA

API# 2

API# 4

API#3

Major products traded on worldwide coal markets

API#2 The TFS API#2 is a monthly basket index for the ARA (harbours of Amersterdam, Rotterdam, Antwerpen) coal price

with a basis of 6,000 Kcal/kg, CIF, ARA, NAR (net as received) calculated on the last business day of the month.

Calculation: (MCIS NWE Steam Coal Marker Price + International Index) divided by 2.

API#3 The TFS API#3 is a weekly (every Friday) basket index price with a basis of 6,700 Kcal/kg, GAD (gross air dryed)

FOB Newcastle (Australia) and published on a weekly and a monthly average basis. Calculation: (FOB Newcastle

Price + Barlow Jonker Index (BJI)) divided by 2.

API#4 The TFS API#4 is a weekly (every Friday) basket index price with a basis of 6,000 Kcal/kg, NAR FOB Richards Bay

(South Africa) and published on a weekly and a monthly average basis. Calculation: (FOB Richards Bay Price

ascertained by McCloskey + SACR Spot Coal Price Index + FOB Richards Bay Price ascertained by Argus Media)

divided by 3.

API = All Publications Index

CIF = Cost, Insurance, Freight

CIS = Commonwealth of Independant States

FOB = Free On Board

The TSF API was a registered trade mark of the Tradition Financial Services Company (TSF).

The TSF ascertains different API prices by a price survey from Argus Media and McCloskey.

API-Index was renamed from July 2005 on in AM API#... (A for Argus Media and M for McCloskey).

Source: Verein der Kohleimporteure (Coal Importers Association), 2006.

Hard Coal Seaborne Trade 2005: 722 Million t

in million t

116


Tightening UK Generation Volume Margins Will Drive

a Sustained Increase in Wholesale Prices

2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Annual Volume

in TWh

450

400

350

300

250

200

150

100

50

0

Nuclear

Combined-cycle gas turbine

Coal with flue gas desulphurisation

Coal without flue gas desulphurisation

Interconnector

Forecast of National Grid Company

Forecast supply/demand balance

(Mar 2004 to Sep 2010)

402414 414 407 398

358 358

Step change in

2008 owing to

tougher Large

Combustion Plant

Directive*) emission

limits

Demand

curve

*) Large Combustion Plant Directive is a legislation of the European Union

to limit the emissions of sulphur dioxide, nitrous oxides and fine dust particles.

Source: RWE npower, forecast of National Grid Company.

117


From 2008, UK coal and oil-fired power stations will be governed by the Large Combustion Plant

Directive. This sets new limits on the amounts of Sulphur Dioxide (SOx), Nitrous Oxides (NOx) and

dust power stations can emit.

Step 1Power stations must choose whether to be part of LCPD or to request a limited life

derogation (opt out).

Power stations which opt-out are allowed to run for 20,000 hours, or until 2015, which

ever comes sooner.

Step 2Those power stations which are part of LCPD must choose to be governed in one of

two ways:

Emission Limit Value (ELV)

The power station must meet specific limits to the amounts of pollutants produced on

a milligramme per cubic metre of waste gas basis.*)

National Emission Reduction Plan (NERP)

A company is given an overall allowance (= bubble: amount of a pollutant that can be

emitted per year) of emissions it may produce.*)

*) Due to the Environment Agency regulatory framework, those stations which choose ELV will be allocated an annual limit

of emissions (called a company B limit) and those stations that choose NERP will be allocated site specific annual

emission limit values.

The UK Large Combustion Plant Directive

118

Utilities - Electricity - Generation - RWE

RWE Power Generation: No 2 in Europe

Germany*) UK Hungary Austria

RWE Market Shares in European Power Generation

by Core Region (2005)

100

50

40

30

20

10

0

in %

16

32

1

9

EU 25 (2005): about 3,000 TWh

*) Of which RWE Power: 6%, RWE npower: 1%.

Source: 2005 annual reports; RWE estimates.

*) Including contracted generation.

Others 56%

EdF (incl. EnBW) 19%

RWE*) 7%

E.ON 7%

Vattenfall 6%

Enel (incl. SE, pro forma) 5%

119


RWEs Share in German Power Generation Market1)

Relative to Peers (2005)

RWE (181 TWh) 32%2)

E.ON (130 TWh) 23%

Others (121 TWh) 21%

Vattenfall Europe (80 TWh) 14%

EnBW (56 TWh) 10%

1) Base: Net Generation in Germany (including self generators): 568 TWh.

2) Including contracted generation.

Source: Annual reports; RWE calculations.

120


RWE Group Electricity Production

by Primary Fuel (2005)

Lignite Hard coal Nuclear Gas Water Electricity

and others purchases

100

80

60

40

20

0

in bn kWh

Total bn kWh: 317.8*)

27.3

45.1

98.3

29.5

64.0

7.1

76.0

RWE capacity Contractually secured capacity

*) The difference between 317.8 TWh of power generation output and 299.1 TWh of electricity sales

is explained by grid losses.

2.5

121


RWE Group Power Plant Capacity by Region (2005)

in MW

Germany UK Other Total

International

Lignite 10,135 714 10,849

Nuclear 6,308 6,308

Hard coal 9,580 4,415 13,995

thereof long-term contracts 6,487 6,487

Gas 4,133 2,962 1 7,096

Water and others 3,262 1,537 222 5,021

thereof long-termcontracts 2,261 2,261

Total 33,418 8,914 937 43,269

RWE Group Electricity Production by Region (2005)

Germany UK Other Total

International

Lignite 70.9 5.1 76.0

Nuclear 45.1 45.1

Hard coal 46.2 17.8 64.0

thereof contracts 29.5 29.5

Gas 12.5 14.8 27.3

Water and others 5.8 0.8 0.5 7.1

thereof contracts 2.5 2.5

Subtotal 180.5 33.4 5.6 219.5

Electricity purchases*) 52.0 25.6 20.7 98.3

Total 232.5 59.0 26.3 317.8

in bn kWh

*) Net, excluding trading.

RWE 83%

RAG (STEAG) 9%

E.ON 5%

Others 3%

122


The Role of Electricity Purchase Agreements

at RWE Power in Germany (2005)

Total Capacity*): 33.4 GW

Total Generation: 183.2 TWh

RWE has full entrepreneurial control over power plants

Long-term contracts from fossil-fired and hydro power plants

RWE can use most outside purchases until the end of the power plants useful life

Pricing is largely dependent on generation costs (fuel, CO2)

RWE 74%

RAG (STEAG) 11%

Others 9%

E.ON 6%

*) As of December 31, 2005.

123


Electricity Production by Renewable Energies (2005)

RWE Power

in GWh

Power Plant Capacity by Renewable Energies (2005)

in MW

2,792

90

368

2,334 Water

Wind

Others

RWE npower

686

782

96 Water

Wind

RWE Power

10144

654

500

Wind

Water

Others

RWE npower

316

263

53

Wind

Water

124


2005 2004

Installed capacity of wind power in Germany as of 12/311) MW 17,743 16,394

of which in the RWE control zone MW 3,165 2,960

Wind energy generation in Germany1) TWh 26 26

of which in the RWE control zone TWh 4.5 4.1

Average wind power fed into the RWE control zone MW 514 466

Compensation to be paid for electricity generated from

wind power under the Renewable Energies Act2) million 2,314 2,350

of which to be paid by customers in the RWE control zone million 875 910

RWEs Key Figures for Wind Power (2005)

Wind power production by region: 1,054 GW

Wind power capacity by region: 447 MW

1) Source: Institut fr Solare Energie Versorgungstechnik (ISET), 2006.

2) Source: Verband der Netzbetreiber VDN e.V. beim VDEW (German Interconnected Power Grid Association), 2006.

UK 65%

Other international 29%

Germany 6%

UK 59%

Other international 30%

Germany 11%

125


RWE Group Generation Output and Capacity

by Load Factor (2005)

Output

1) Base in Germany: lignite, nuclear, coal (70%),

run-of-river, renewables, gas (cogeneration);

base in the UK: coal (70%), gas, renewables, water;

base for other international: lignite (70%), gas (70%),

water, renewables.

2) Peak in Germany: coal (30%), gas (condensation), oil,

pump storage;

peak in the UK: coal (30%), oil;

peak other international: lignite (30%), gas (30%),

water, renewables.

Capacity

3) Base in Germany: lignite, nuclear, coal (50%),

run-of-river, renewables, gas (cogeneration);

base in the UK: coal (50%), gas, renewables, water;

base for other international: lignite (50%), gas,

water, renewables.

4) Peak in Germany: coal (50%), gas (condensation), oil,

pump storage;

peak in the UK: coal (50%), oil;

peak for other international: lignite (50%).

Base load1) 81%

Peak load2) 19%

Base load3) 64%

Peak load4) 36%

126


RWEs German Power Plant Portfolio (2005) I

Power plant Net Commissioned RWEs consolidated Partner

capacity stake stake

in MW in % in MW in %

Lignite

Frimmersdorf 2,161 1957 1970 100.0 2,136

Neurath 2,083 1972 1976 100.0 2,056

Niederaussem 2,662 1963 1974 100.0 2,607

Goldenberg 155 1993,1994 100.0 151

Weisweiler 2,047 1955 1975 100.0 2,041

Niederaussem (BoA1) 965 2003 100.0 920

Berrenrath 88 1939+1993 100.0 52

Fortuna Nord 82 100.0 54

Wachtberg 171 1901+1987, 1988 100.0 118

Total lignite 10,414 10,135

Nuclear

Biblis A 1,167 1975 100.0 1,167

Biblis B 1,240 1977 100.0 1,240

Gundremmingen B 1,284 1984 100.0 1,284 E.ON 25.0

Gundremmingen C 1,288 1985 100.0 1,288 E.ON 25.0

KKW Emsland 1,329 1988 100.0 1,329 E.ON 12.5

Total nuclear 6,308 6,308

Hard coal

Ensdorf C 282 1971 100.0 282

Ibbenbren 709 1985 100.0 709

GW Bergkamen A 684 1981 100.0 684 Steag 49.0

Westfalen A - C 588 1963, 1969 100.0 588

Rostock 508 1991 24.6 125 E.ON 50.4VattenfallEurope 25.0

Werne Kv2 720 1984 100.0 605

Hoechst (Swag) 108 100.0 0

VSE unit 1 106 1994 100.0 95

Harpen HKW Schnweide 5 5

Total hard coal 3,710 3,093

127


RWEs German Power Plant Portfolio (2005) II




Gas

Emsland B 410 1973 100.0 410

Emsland C 410 1974 100.0 410

Gersteinwerk F 410 1973 100.0 410

Gersteinwerk G 410 1973 100.0 410

Gersteinwerk H 55 1973 100.0 55

Gersteinwerk I 410 1973 100.0 410

Werne Kv 1 112 1984 112

KW Bochum/Dortmund 33 1957, 1963 100.0 32

GuD Ludwigshafen 396 1997 100.0 396

GuD Dormagen 290 1979 100.0 290

GuD Dormagen 341 1979 100.0 341

KW Huckingen 466 1975, 1976 100.0 466

KW Huckingen 114 1976 100.0 114

TKS Hamborn 225 2003 100.0 0

Gasmotoren Goldenberg 4 2004 4

Harpen KWK power plants 44 100.0 44

SWAG 0 78.0 0

enviaM (miscellaneous

participations) 424 100.0 208

9.9 0 Various 90.1

40.0 0 SW Halle 40.0GmbH

LEW Peissenberg 12 1987, 1990 100.0 12

LEW Aviko 10 2000 100.0 10

Total gas 4,576 4,133

Oil

KW Scholven Bl. G 672 1974 50.0 0 RuhrEnergie 50.0

Sermuth (enviaM) 17 1995 100.0 17

Grokayna (enviaM) 119 1993 100.0 119

Total oil 808 136

128


RWEs German Power Plant Portfolio (2005) III




Water run-of-river

KW Laufwasser(RWE Power AG) 198 100.0 196

RADAG 80 100.0 80

Harpen Wasser(incl. Saarwasser) 69 100.0 69

SWAG Wasser 17 100.0 17

enviaM Wasser 8 before 1990 100.0 8

LEW Wasser 164 153

536 523

Storage Water / pump-storage

KW Kpchenwerk 153 1989 100.0 153

Harpen Germany 35 100.0 35

188 188

Total water 724 711

Other renewables

Harpen (solar) 1 100.0 1

enviaM (wind) 22 1999 2003 100.0 22

Harpen (wind) 11 100.0 11

Harpen (biomass) 9 2003 100.0 9

Harpen (used wood) 20 2004 100.0 0

Landfill gas-to-energy plant 3 1994/95/97 100.0 3

enviaM (biomass) 11 2003 100.0 11

Windpark Westerwald 18 2005 100.0 18

Total other renewables 95 75

Other

KW Karnap 37 1987 100.0 37

Marsberger KW 22 1996 75.0 7

MVA Weisweiler 35 1996 100.0 35

SRS Ecotherm 1 2003 100.0 1

Total others 95 80

Total German own capacity 26,730 24,670

129


RWEs German Power Plant Portfolio (2005) IV




Contractually

secured capacity

STEAG (hard coal) 3,286 3,026

RuhrEnergie (hard coal) 2,011 2,111 (incl. Scholven G 50%)

SaarEnergie (hard coal) 794 794

Other hard coal 541 556

Schluchsee 865 870

SEO Vianden 1,096 1,096

Other water/others 733 295

Total contractuallysecured capacity 9,326 8,748

Total German capacity 36,056 33,418

130


RWEs Foreign Power Plant Portfolio (2005) I




UK capacity

Hard coal

Aberthaw 1,455 1971 79 100.0 1,455

Tilbury B 1,020 1968 72 100.0 1,020

Didcot A 1,940 1972 75 100.0 1,940

Total hard coal 4,415 4,415

Gas

Little Barford 635 1994 100.0 635

Didcot B 1,400 1996 97 100.0 1,350

Great Yarmouth 420 100.0 420

Cogeneration

Aylesford Newsprint 98 1994 100.0 98

BASF 75 1997 100.0 75

Bridgewater Paper 58 2000 100.0 58

Chirex 0 1994 100.0 0

Dow Corning 22 1998 100.0 22

Esso Fawley 135 1999 100.0 135

Fort James 9 1995 100.0 9

Huntsman Tioxide 20 2003 100.0 20

Whitegate 6 1998 100.0 6

Lancaster University 2 1994 100.0 2

Lindsey Oil Refinery 38 1996 100.0 38

Philips Petroleum 58 1999 100.0 58

Rhodia Oldbury 4 1993 100.0 4

Rhodia Whitehaven 9 1994 100.0 9

SCA Hygiene Products 7 1999 100.0 7

Millenium Inorganic Chemicals 16 1995 100.0 16

Total gas 3,012 2,962

Oil

Littlebrook D 1,000 1982 84 100.0 1,000

Fawley 484 1969 70 100.0 484

Total oil 1,484 1,484

Water

Various Hydro 53 100.0 53

Total water 53 53

131


RWEs Foreign Power Plant Portfolio (2005) II

Power plant Net Commis- RWEs consol- Partner

capacity sioned idated stake stake


Renewables

Kirkby Moor 0 1993 33.3 0

Taff Ely 9 1993 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Bryn Titli 10 1994 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Trysglwyn 6 1996 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Carno 34 1996 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Novar 17 1997 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Llyn Alaw 20 1997 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Mynydd Gorddu 10 1998 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Bein Ghlas 8 1999 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Lambrigg 7 2000 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Tow Law 2 2001 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%

Bears Down 10 2001 100.0 0

Causeymire 48 2004 100.0 0

North Hoyle 60 2003 100.0 0

Windy Standard 22 1996 100.0 0

Total renewables 263 0

Total UK capacity 9,227 8,914

Other foreign capacity

Matrai (Hungary)/lignite 697 1967 100.0 697 EnBW 21.6MVM 25.5

Harpen (Czech Republic),HKW Nachod/lignite 17 1970 17

Harpen, KWK/gaspower plants abroad 1 100.0 1

TE Plomin d.o.o.(Croatia)/hard coal 0 1999 50.0 0 HEP 50.0

Toledo (Spain)/solar 0 1994 33.3 0 Endesa 33.3

SKO ENERGO(Czech Republic)/hard coal 0 1998 21.0 0 E.ON 21.0

Harpen (France)/water 57 100.0 57

Harpen (Spain/AERSA)/water 12 100.0 12

Harpen (Spain/AERSA+Grisel)/wind 119 100.0 119

Harpen (Italy)/water 11 100.0 11

Harpen (Italy)/wind 14 100.0 14

Harpen (Portugal)/water 9 100.0 9

Total other foreign capacity 937 937

Total foreignactivities 10,164 9,851

Total own and contractuallysecured capacity 46,220 43,269

132


The RWE Power Divisions Power Plant Portfolio

(2005)*)

Capacity

33.7 GW

Generation

183.2 TWh

Capacity

32.7 GW

Generation

177.6 TWh

Continental Europe Germany

*) Including power plants that are not owned by RWE but which RWE can freely use thanks to long-term agreements.

9%

12%

19%

28%

3%6%

25%

25%

41%

9%

12%

19%

29%

31%

3%6%

25%

26%

40%32%

Others

Natural gas

Nuclear energy

Hard coal

Lignite

Hamburg

Berlin

Cologne

Frankfurt am Main

Stuttgart

Munich

EssenDortmund

Rostock

133


RWE Powers Major Power Plants in Germany

Lignite

Nuclear

Hard coal

Gas

Oil

Combined-cycle gas

turbine power plant

134


RWE npowers Major Power Plants in the UK (2005)

8.41) GW of conventional generation capacity (10% market share)

Flexible and diversified portfolio (coal: 52%, gas: 30%, oil: 18%)

1) Large-scale generation only.


Source: ILEX Energy Consulting Ltd.

Didcot A 1,940 MW

Aberthaw B 1,455 MW

Didcot B 1,400 MW

Fawley 484 MW

Great Yarmouth 420 MW

Little Barford 635 MW

Littlebrook D 1,000 MW

Tilbury B 1,020 MW

Gas

Coal

CCGT 2)

Oil/Gas

135


Age Structure of the RWE Power Divisions German

Plant Portfolio

Optimized lifetime extension

2005

Duration 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Nuclear energy

Hard coal

Lignite

Gas

Extension of normal service life/contract (possible, planned, already completed in part)

Excluding nuclear phase-out

Excluding hydro power and pumped storage.

Subject to 45-year normal service life or the current contractual term of outside purchases.

The average lifetime of RWE Powers German power plants is 28 years.

136


German average2) Highest thermal efficiency

Nuclear Lignite Coal Gas

Thermal Efficiency of RWEs German Power Plants

Weighted degree of efficiency

in %

50

40

30

20

10

0

3335

1) Lignite-fired power plant with optimized technology.

2) Including capacities of power plants owned by RWE.

Emsl

and

40

47

37 39

34

43

BoA

11)(B

lock

K in

Nie

dera

usse

m)

Wer

ne

CC

GT

in D

orm

agen

137


RWEs Strategy for Upgrading the UK and

German Power Plant Portfolio

Growth

Replacement

Breakdown of

generation capex Examples of initiatives 2006 2010

decision to be taken

Growth initiatives

Great Yarmouth (420 MW CCGT)

Pembroke/Staythorpe (up to 2,000 MW CCGT)

Renewables (ca. 700 MW)

Customer IPPs (200 600 MW CCGTs)

Replacement initiatives

Neurath BoA 2/3 (2,100 MW lignite)

Hamm (1,500 MW hard coal)

800 MW CCGT in Germany

?

?

?

?

?

138


1957 1972 1987 2003

Lignite-Fired Power Generation:

Higher Efficiency, Less CO2

Thermal efficiency

in %

Drop in CO2 emissions in million t/a

due to new 1,000 MW power plant

50

40

30

20

10

0

= 31%1957

> 43%2003

- 30%

1957

Frimmersdorf:

150 MW

= 31

1975

Weisweiler

600 MW

= 36

2003

Niederauem:

BoA

1,000 MW

> 431966Frimmersdorf:

300 MW

= 32

1970

Niederauem:

300 MW

= 34

9,7

6,8

139


10 11 9 9 5 4 3 3 3 3 3

RWE Lignite Production in the Rhenish Mining Area

in million t lignite

120

100

80

60

40

20

0

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020Number

of

mines

Actual values

Frimmersdorf-Sd

Fortuna-Garsdorf

Frechen Bergheim

SdrevierInden

Zukunft-West

Frimmersdorf-West

Garzweiler I

Hambach I

Inden I + II

Garzweiler II

Mining capacity

Position: February 2006.

140


Results of German Nuclear Consensus Talks:

810 TWh Nuclear Electricity Production for RWE

1975 80 85 90 95 2000 05 10 15 20 2025

Biblis A

Biblis B

Gundremmingen B

Gundremmingen C

Mlheim-Krlich

Emsland

What does this mean for RWEs nuclear power plants?

Presumed remaining operational lifetime given high capacity utilization.

62.0 TWh

81.5 TWh

161.0 TWh

168.4 TWh

107.25 TWhCapacity to be transferred:

230.0 TWh

141


RWE Powers Decommissioning Concept for Nuclear

Power Plants

25 30% about 50% 20 25%

share of costs share of costs share of costs

Post operation

phase

Nuclear decommissioning/

dismantling

Dismantling

Final disposalConventional

dismantling/

demolition

Power production

has ceased.

Technical infra-

structure has to be

operated further on.

Fuel elements mean-

while cool down in

pond storage to be

suitable for dry cask

(CASTOR) storage.

Decommissioning of

contaminated buildings/

components

Decommissioning of

buildings/components

which are no longer

under legislation of

the German Nuclear

Act.

5 7 years 10 12 years 2 3 years

Documents

Electricity Generation Rwecom Fact06