Facts & Figures 2012 - RWE AG

FACTS & FIGURES 

September 2012 

RWE Facts & Figures | Updated September 2012 

1

Forward-looking statement 

RWE Facts&Figures 2012 contains certain forward-looking statements as defined by US federal securities laws. This predominantly relates to 

the following statements: 

> Projections of revenue, income, earnings per share, capital expenditure, dividends, the capital structure and other financials; 

> Statements of plans or objectives for future operations or concerning the company’s future competitive position; 

> Expectations of future economic performance; and 

> Statements of assumptions underlying several of the foregoing types of statements, all of which are forward-looking statements. 

Also words such as “anticipate”, “believe”, “estimate”, “intend”, “may”, “will”, “expect”, “plan”, “project”, “should” and similar expressions are 

intended to identify forward-looking statements. The forward-looking statements reflect the judgement of RWE’s management based on factors 

currently known to it. No assurances can be given that these forward-looking statements will prove accurate and correct, or that anticipated, 

projected future results will be achieved. All forward-looking statements are subject to various risks and uncertainties that could cause actual 

results to differ materially from expectations. Such risks and uncertainties include, but are not limited to, changes in the general economic and 

social environment, business, political and legal conditions, fluctuating currency exchange rates and interest rates, price and sales risks 

associated with a market environment in the throes of deregulation and subject to intense competition, changes in the price and availability of 

raw materials, risks associated with energy trading (e.g. risks of loss in the case of unexpected, extreme market price fluctuations and credit 

risks resulting in the event that trading partners do not meet their contractual obligations), actions by competitors, application of new or 

changed accounting standards or other government agency regulations, changes in, or the failure to comply with, laws or regulations, 

particularly those affecting the environment and water quality (e.g. introduction of a price regulation system for the use of power grids, creating 

a regulation agency for electricity and gas or the introduction of trading in greenhouse gas emissions), changing governmental policies and 

regulatory actions with respect to the acquisition, disposal, depreciation and amortisation of assets and facilities, operation and construction of 

plant facilities, production disruption or interruption due to accidents or other unforeseen events, delays in the construction of facilities, the 

inability to obtain, or to obtain on acceptable terms, necessary regulatory approvals regarding future transactions, the inability to successfully 

integrate new companies within the RWE Group to realise synergies from such integration and the potential liability for remedial actions under 

existing or future environmental regulations and the potential liability resulting from pending or future litigation. Any forward-looking statement is 

valid only as of the date on which it is made. RWE neither intends to, nor assumes any, obligation to update these forward-looking statements. 

* Footnotes are to be inserted manually (using “copy” and “paste“). 

For additional information regarding risks, investors are urged to consult RWE’s latest annual report, other reports recently filed with the 

Frankfurt Stock Exchange and the material furnished to the US Securities and Exchange Commission by RWE. 


2

28 

62 

4 Organisation 

RWE in a nutshell 

Board 

Structure 

Germany: Power Generation 

Germany: Sales/Distribution Networks 

Netherlands/Belgium 

United Kingdom 

Central Eastern and South Eastern Europe 

Renewables 

Upstream Gas & Oil 

Trading/Gas Midstream 

Strategy & financing 

Strategy 

RWE share 

Fixed income financing 

Risk management 

Political environment 

Overview 

Combined Heat and Power (CHP) Act 

Renewable Energy Act 

Climate policy 

Emissions trading 

Large Combustion Plant Directive (LCPD) 

Grid 

5 

7 

8 

10 

12 

14 

17 

20 

22 

24 

26 

29 

47 

50 

58 

63 

64 

65 

72 

75 

80 

82 

91 

Market data 

Electricity 

> Generation 

> Fuels 

> Trading 

> Grid 

> Supply 

Gas 

> Trading 

> LNG 

> Storage 

> Downstream 

> Supply 

> Turkish market 

> Czech market 

151 RWE 

Electricity 

> Generation 

> Fuels 

> Trading 

> Grid 

> Supply 

Gas 

> Upstream 

> Storage 

> Trading 

> Downstream 

Investor Relations 


92 

93 

113 

115 

118 

121 

133 

134 

136 

138 

140 

141 

145 

146 

152 

153 

184 

187 

189 

190 

197 

198 

207 

209 

212 

219 

3

Organisation 


Organisation 

5 RWE in a nutshell 

7 Board 

8 Structure 

10 Germany: Power Generation 

12 Germany: Sales/Distribution Networks 

14 Netherlands/Belgium 

17 United Kingdom 

20 Central Eastern and South Eastern Europe 

22 Renewables 

24 Upstream Gas & Oil 

26 Trading/Gas Midstream 


Market data 

RWE 

RWE Facts & Figures | Updated September 2012 4

ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE 


RWE today: 

One of the leading integrated European utilities 

RWE markets 

RWE markets with established 

market positions 

Growth markets under observation 

(initial activities in some cases) 

Additional markets 

especially for renewables x/y 

Additional markets 

especially for upstream gas & oil 

Leading positions in core markets 

We have leading positions in two of Europe’s largest markets as well as in fast growing SEE/CEE markets and 

own a large upstream position in both Europe and North Africa. 

1 Market positions of the RWE Group in terms of sales. 

Forecast average growth 

of electricity/gas 

consumption 

in % p.a. (2011– 2020) 

Market1 Product 

Electricity 

Gas 

Germany No. 1 No. 3 

UK No. 4 No. 4 

Netherlands No. 2 No. 1 

Central 

Eastern and 

South Eastern 

Europe 

> No. 2 in 

Hungary 

> No. 3 in 

Slovakia 

> No. 5 in 

Poland 

> Presence in 

the Czech 

Republic 

> Presence in 

Turkey 

> No. 1 in the 

Czech 

Republic 

> No. 2 in 

Slovakia 

> Leading 

position in 

Hungary 

Total Europe No. 3 No. 6 


5



RWE’s customers as of 31 December 2011 

Million 

Electricity 

Gas 

Water 

0 5 10 15 20 

1 Figure relates to drinking water and sewage water. Population served in Continental Europe. 

8 

15 1 

17 


6


Board 

The Executive Board of RWE AG 

Peter Terium 

Chief Executive Officer of the 

Executive Board 

(appointed until 31 August 2016) 

Alwin Fitting 

Chief Human Resource Officer 

(appointed until 31 March 2013) 

Dr. Rolf Martin Schmitz 

Deputy Chairman of the Executive Board 

Chief Operating Officer 

(appointed until 30 April 2014) 

Dr. Bernhard Günther 

Member of the Executive Board 

(appointed until 30 June 2017) 

Dr. Leonhard Birnbaum 

Chief Commercial Officer 

(appointed until 30 September 2013) 

Dr. Rolf Pohlig 

Chief Financial Officer 

(appointed until 31 December 2012) 



Structure 

The RWE Group 

Germany 

Power 

Generation 

RWE Power 

Sales/ 

Distribution 

Networks 


Deutschland 

Netherlands/ 

Belgium 

NET4GAS 

Gas transmission system operator in the Czech Republic 

(unbundled) 

RWE AG (Group Centre) 

United 

Kingdom 

Central 

Eastern and 

South Eastern 

Europe 

Essent RWE npower RWE East RWE Innogy RWE Dea RWE Supply & 

Trading 

Internal services 

RWE Consulting 

RWE IT 

RWE Service 

RWE Technology 

Renewables 

Upstream 

Gas & Oil 

Trading/Gas 

Midstream 



Structure 

RWE Group structure: a mirror of the value chain 

Raw material production Power generation 

Gas and oil Lignite 

RWE Dea RWE Power RWE Innogy 


RWE East 

Wood pellets 

Conventional Renewables 

RWE npower 

Essent 


1 Gas transmission system operator in the Czech Republic (unbundled). 

RWE Innogy 


Essent 


Energy trading/ 

gas midstream 

RWE Supply 

& Trading 

Electricity and 

gas networks 

RWE Deutschland 


NET4GAS1 NET4GAS1 > Integrated business model: strong presence in all parts of the energy value chain 

> Stability and growth: well balanced portfolio of leading market positions in mature and 

growing markets in Europe 

Electricity 

and gas sales 


Essent 



Germany 

Germany: Power Generation (I) 

Who we are… 

> RWE Power, with two registered offices in Essen and Cologne, is 

Germany’s biggest electricity producer. 

> The company banks on a broad energy mix and to a large extent is able 

to draw on its own raw material base (e.g. lignite). 

> Our power plants have an installed capacity of more than 31 GW. 

> Enhancing flexibility in the power plant fleet and in the opencast mines is 

one of the main challenges. Increasing electricity price volatility requires 

the development of market-oriented power plant dispatch and an increase 

in the flexibility parameters of the power stations. 

> With a 43 percent efficiency rate, our twin-unit plant BoA 2&3 was 

commissioned in August 2012. It is the world’s most advanced lignite-fired 

power station. 

Key figures 2011 2010 

EBITDA (€ million) 3,252 4,510 

Operating result (€ million) 2,700 4,000 

Workforce 1 15,371 15,409 

1 Converted to full-time positions. 


10


Germany 

Germany: Power Generation (II) 

Generation capacity 1 as of 31 Dec 2011 (MW) Power generation 1 2011 (billion kWh) 

Lignite 9,799 

Renewables 313 

Pumped storage, oil, other 2,489 

Gas 5,228 

Nuclear 3,901 

Hard coal 9,555 

Power plant new build project 

Westfalen D+E, Hamm 

31,285 

Two new hard coal-fired units will replace two 160-megawatt units 

commissioned in 1962/63 and expand the capacity of the site. Owing to 

the high efficiency of about 46%, the specific carbon emissions of the two 

new units will be about 20% lower than the current average of hard coalfired 

power plants in Germany. 

> Fuel: hard coal 

> Capacity: 1,528 MW 

> Efficiency: 46% 

> Start of operation: 

End of 2013 

1 Including minor capacities of the Sales/Distribution Networks business area. 

Lignite 68.3 

Renewables 1.4 

Pumped storage, oil, other 2.2 

Gas 11.8 

Hard coal 34.0 

Nuclear 34.3 

Major power plants in Germany 

Natural gas 

Power plant 

Thermal power plant 

Gas and steam 

Waste gas 

recycling 

Lignite 

Opencast pit 

Power plant 

Factory 

152.0 

Hard coal 

Power plant 

Nuclear 

Nuclear power 

plant 

Other 

Hydro power 

Refuse 

incineration 


11


Germany 

Germany: Sales/Distribution Networks (I) 

Who we are… 

> The RWE Group’s German distribution network, sales and energy 

efficiency operations are pooled in RWE Deutschland AG since January 

2011. 

> It is the RWE Group’s largest affiliate, encompassing the German regional 

companies enviaM, KEVAG, LEW, Süwag and VSE. 

> Furthermore, the company holds direct stakes in some 70 regional and 

municipal utilities. 

> Significant importance is accorded to partnerships with municipalities. Via 

its subsidiaries, RWE Deutschland ensures the reliable and efficient 

operation of electricity, gas and water distribution networks in more than 

3,500 cities and communities and – in several regions – is responsible for 

street lighting. 


External revenue (€ million) 20,354 18,456 



Workforce 1 20,398 18,775 



12


Germany 

Germany: Sales/Distribution Networks (II) 

Electricity customers 1 (thousand) External electricity sales 2011 (billion kWh) 

8,000 

6,000 

4,000 

2,000 

6,823 6,674 6,959 

0 

2009 2010 2011 

1 Households and small commercial enterprises. 

Distributors 60.4 

Industrial and 

corporate customers 31.4 

Residential and 

commercial customers 25.5 

Gas customers 1 (thousand) External gas sales 2011 (billion kWh) 

1,500 

1,000 

500 

0 

1,064 

1,091 

1,295 

2009 2010 2011 


Distributors 31.8 





117.3 

83.3 


13



Netherlands/Belgium (I) 

Who we are… 

> Essent is the largest energy company in the Netherlands. The company 

has a well-balanced and flexible generation portfolio (consisting primarily 

of gas and hard coal power stations). In total, Essent had 3.1 GW in 

generation capacity at the end of 2011 and produced some 11.5 billion 

kWh of electricity in 2011. 

> By investing into processes to co-fire biomass at our Amer and 

Eemshaven power stations we intend to further increase the proportion 

of renewables in our energy mix. 

> In 2011, 2.2 million and 1.9 million households and small commercial 

enterprises were supplied with electricity and gas in the Netherlands, 

respectively. 

> Two new gas power stations went online at the beginning of 2012. 

A state-of-the-art hard coal-fired power plant is currently being built. 



EBITDA (€ million) 462 660 

Operating result (€ million) 245 391 

Workforce 1 3,794 3,899 



14



Netherlands/Belgium (II) 

Generation capacity as of 31 Dec 2011 (MW) 

Gas 1,897 

Hard coal 916 

Renewables 

(Biomass co-firing) 331 

Power generation 2011 (billion kWh) 

Gas 5.1 

Hard coal 5.1 

Renewables 1.3 

3,144 

11.5 

Essent’s major power plants (2012) 

Energiecentrale Eemshaven 

Coal/Biomass, 1,560 MW 

(under construction) 

Moerdijk I, Moerdijk 

Gas, 339 MW 

Moerdijk II, Moerdijk 

Gas, 426 MW 

Amercentrale, Geertruidenberg 

Coal, gas, biomass, 1,226 MW 

Swentibold, Geleen 

Gas, 245 MW 

+ various midsize cogeneration power plants 

Bio-energiecentrale Cuijk 

Biomass, 25 MW 

Claus C, Maasbracht 

Gas, 1,304 MW 

Claus A, Maasbracht 

Gas, 610 MW 


15



Netherlands/Belgium (III) 

External electricity sales 2011 (billion kWh) External gas sales 2011 (billion kWh) 





Power plant new build project 

Eemshaven 

21.0 

The 50 hectare site in Eemshaven which can be partially fuelled by 

biomass is being built to generate electricity primarily for the Dutch 

market. With an efficiency of more than 46% it will be one of the 

world’s most modern hard coal-fired power stations. 

> Fuel: hard coal/biomass 

> Capacity: 2x780 MW 

> Efficiency: ~46% 

> Start of operation: 2014 





Electricity and gas customers 1 (thousand) 

3000 

2000 

1000 

0 

2,339 

2,329 

2,346 

2,019 

2,016 

Electricity Gas 

2,024 


87.7 


2009 

2010 

2011 

16



United Kingdom (I) 

Who we are… 

> RWE npower is domiciled in Swindon near London and operates and 

manages a flexible power plant portfolio with an installed capacity of about 

11.5 GW as of end 2011. 

> Around 4 million and 2.5 million households and small commercial 

enterprises are supplied with electricity and gas, respectively. In 2011, 

RWE npower generated almost 30 billion kWh of electricity – about 10% 

of the electricity consumed in the UK. 

> In May 2012 RWE npower started to commission a new state-of-the-art 

2,188 MW combined cycle gas turbine (CCGT) power station at its 

Pembroke site. The power station comprises five generating units and is 

able to generate power for around 3.5 million homes. 





Workforce 1 12,053 11,711 



17



United Kingdom (II) 

Major power plants in the United Kingdom 

Pembroke 

2,188 MW 

Aberthaw B 

1,554 MW 

Fawley 

968 MW 

Staythorpe 

1,728 MW 

Didcot A+B 

1,420/ 

1,958 MW 

Gas 

Coal 

CCGT 

Oil/Gas 

Biomass 

Little 

Barford 

635 MW 

Great 

Yarmouth 

380 MW 

Littlebrook D 

1,140 MW 

Tilbury 

750 MW 

Generation capacity as of 31 Dec 2011 (MW) 

Renewables 742 

Hard coal 3,512 

Gas 4,557 

Pumped storage, 

oil, other 2,657 

Power generation 2011 (billion kWh) 

Gas 21.3 

Hard coal 8.6 

11,468 

29.9 


18

ORGANISATION 


STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE 

United Kingdom (III) 

External electricity sales 2011 (billion kWh) External gas sales 2011 (billion kWh) 





50.3 





Electricity and gas customers (households and small commercial enterprises, thousand) 

8,000 

6,000 

4,000 

2,000 

0 

3,877 3,935 

2,561 

2,636 

6,438 

Electricity Gas Total 

6,571 

40.2 

2010 

2011 


19


CEE and SEE 

Central Eastern and South Eastern Europe (I) 

Who we are… 

> RWE East, based in Prague, is a subsidiary wholly owned by RWE AG. 

It began overseeing RWE’s affiliates in Central Eastern and South 

Eastern Europe as well as Turkey as of 1 January 2011. 

> These affiliates include RWE Transgas in the Czech Republic, 

RWE Hungária in Hungary, RWE Polska in Poland, VSE in Slovakia 

and RWE Holding in Turkey. RWE East also heads up projects, 

e.g. in Croatia and Romania. 

> In 2011, the company sold just under 24 billion kWh of electricity as well 

as 59 billion kWh of gas. 





Workforce 1 11,328 11,163 



20


CEE and SEE 

Central Eastern and South Eastern Europe (II) 

Markets and market positions in terms of sales 

RWE Transgas 

Electricity: presence 

Gas: No. 1 

RWE Hungária 

Electricity: No. 2 

Gas: leading position 

RWE East core markets 

Growth markets under observation 

Other RWE Group core markets 

RWE Polska: 


VSE 


Gas: No. 2 

RWE Turkey 

Electricity: 

presence 

External electricity sales 2011 (billion kWh) 





External gas sales 2011 (billion kWh) 






21


Renewables 

Renewables (I) 

Who we are… 

> RWE Innogy was established in February 2008; it pools the RWE Group’s 

renewables expertise and power stations, focussing regionally on Europe. 

> Onshore and offshore wind power projects are a focus of the company's 

activities. RWE Innogy will also expand its biomass and hydroelectric 

activities. We also support the development of new technologies for the 

future. 

> RWE Innogy was launched with 1,100 MW in 2008. At present, we already 

operate a power plant capacity of around 2.4 GW. 

> We are especially strong in our home market in Germany, followed by the 

United Kingdom, Spain, the Netherlands, Poland and Italy. 


External revenue (€ million) 443 366 



Workforce 1 1,493 1,232 



22


Renewables 

Renewables (II) 

RWE Innogy’s asset base by region (MW) 

Portugal 

Spain 

BE 

Onshore wind Biomass 

Offshore wind 

UK 

NL 

Poland 

DE 

Czech 

Republic 

France Switzerland 

Hydro 

Italy 

New technologies 

Generation capacity as of March 2012 (MW) 

Onshore wind 1,607 

Hydro 542 

Biomass 110 

Offshore wind 150 

1 Including minor capacities in solar and biogas. 

Offshore wind projects 

2,411 1 

In operation Under construction 

North Hoyle 1 , UK, 60 MW: 

Completely commissioned 2004 

Rhyl Flats, UK, 90 MW: 


Thornton Bank I 2 , BE, 30 MW: 


1 RWE Innogy (33%), owned by Zephyr Investments Ltd. 

2 RWE Innogy (27%), owned by C-Power consortium. 

3 RWE Innogy (60%), Stadtwerke Munich (30%) and Siemens (10%). 

4 RWE Innogy (50%), Scottish and Southern Energy (50%). 

Nordsee Ost, GER, 295 MW 

Thornton Bank II+III2 Gwynt y Môr 

, BE, 

295 MW 

3 , UK, 576 MW 

Greater Gabbard4 , UK, 

504 MW 


23



Upstream Gas & Oil (I) 

Who we are… 

> Headquartered in Hamburg, RWE Dea is active in the international 

exploration and production of gas and oil, benefiting from its extensive 

experience over a corporate history spanning more than 100 years. 

> RWE Dea has production facilities in Germany, the United Kingdom, 

Norway, Denmark and Egypt and holds licenses in Algeria, Ireland, Libya, 

Mauritania, Poland, Turkmenistan and Trinidad and Tobago. In Germany, 

RWE Dea also operates large-scale underground storage facilities for 

natural gas. 

> RWE Dea produced 2,664 million cubic metres of gas and 2,478 thousand 

cubic metres of oil during fiscal 2011, resulting in a total output of 

31.8 million barrels of oil equivalent. 

> In 2014, a production level of 40 million barrel of oil equivalent and an 

operating result of about € 800 million after planned disposals is expected. 





Workforce 1 1,362 1,363 



24



Upstream Gas & Oil (II) 

Gas production 2011 (million m 3 OE) Oil production 2011 (million m 3 ) 

Germany 1.8 

United Kingdom 0.5 

Norway 0.3 

Development of reserves and resources (million m 3 OE) 

250 

200 

150 

100 

50 

0 

162 

228 

91 

158 

2.6 

237 

104 

51 

111 

66 

40 

137 

56 

102 

79 

48 133 

26 

31 

2010 2010 

Gesamt 2011 2011 

Gesamt 

Gas Oil Total 

Proven 

resources 

Reserves 

Germany 0.9 

Norway 0.9 

Egypt 0.5 

Denmark 0.2 

Capital expenditure (€ million) 

1,000 

800 

600 

400 

200 

0 

477 

505 

606 

855 

2.5 

507 


701 

2006 2007 2008 2009 2010 2011 

25



Trading/Gas Midstream (I) 

Who we are … 

> RWE Supply & Trading is a leading European energy trading company, 

acting as the Group’s hub for all tradable commodities (such as power, 

gas, coal, oil, and emission certificates). The division thus functions as an 

interface between the RWE Group and the global wholesale markets for 

energy and energy-related raw materials. 

> The headquarters in Essen boast Europe’s largest and most sophisticated 

energy trading floor. Additional trading floors or subsidiary and affiliate 

offices are located in London, Swindon, Den Bosch, Geneva, Singapore 

and New York. 

> With an annual gas procurement of approx. 45 billion cubic metres 

RWE Supply & Trading is one of the strongest competitors in the 

European gas industry. 



EBITDA (€ million) -784 -7 

Operating result (€ million) -800 -21 

Workforce 1 1,562 1,512 



26



Trading/Gas Midstream (II) 

Energy sales to industrial customers 2011 (billion kWh) 

Electricity 

25% 

32% 

23.2 

8% 

23% 

12% 

47% 

4% 

Gas 

15.9 

21% 

22% 

Trading floors and subsidiary/affiliate offices 

7% 

Aluminium, steel & mining 

Fine chemicals & 

pharmaceuticals 

Transport, automotive & other 

Glass, paper & cement 

Primary industry/ 

petrochemistry 

Trading volumes 2011 

> 1,435 billion kWh of power 

> 753 billion cubic meters of gas 

> 618 million barrels of oil 

> 644 million CO 2 certificates 


27

Organisation Strategy & financing Political environment Market data 



29 Strategy 

47 RWE share 

50 Fixed income financing 

58 Risk management 


28


Strategy 

RWE’s journey over the next five years 

> Cornerstones of strategy remain 

> Adjust execution of strategy to changing 

framework conditions 

� No further nuclear ambitions with 

existing operations phasing out 

� Continued expansion of renewables 

including position in photovoltaic 

> Increasing partnerships to reduce risks and 

leverage capital base 

> Disciplined investment approach: operating 

cash flow to cover dividends and capex by 

2014/15 at the latest 



Strategy 

More international, while maintaining a regionally 

focused strategy 

Core markets in Northwest and 

Central Europe 

Regional growth markets mainly 

CEE/SEE, especially Turkey 

Renewables business in and around our 

traditional core markets 

Upstream gas & oil position/projects 

mainly in Europe, Caspian region, Africa 

and Trinidad & Tobago 

RWE markets with established market positions 

Growth markets under observation/first activities 

Additional markets especially for renewables business 

Additional markets for upstream gas & oil 


30


Strategy 

More sustainable: 

Three levers to execute our strategy 

Lower CO 2 emissions More renewables Efficient use of energy 

> Reduce specific CO 2 

emissions by more than 

20% by 2020 compared 

to 2005 

t/MWh 

0,90 0.90 

0,85 0.85 

0,80 0.80 

0,75 0.75 

0,70 0.70 

0,65 0.65 

0,60 0.60 

0,55 0.55 

Specific CO2 emissions 

exposure 

Actual 

Target path 

0,50 0.50 

2005 2008 2011 2014 2017 2020 

> Increase renewable 

generation capacity to 

at least 20% by 2020 

~ 

Estimated 

generation 

portfolio 2020 

40% 

~ 

20% 

~ 

~46 GW 

Nuclear 

Coal (partly 

highly efficient) 

5% 

~ 

35% 

Gas/other 

Renewables 

> Increase efficiency of 

fossil fuelled power 

plants 

> Offer efficiency 

enhancing energy 

products to end 

costumers 



Strategy 

More robust, with a well balanced portfolio approach 

Active along the whole value chain 

Broad geographic diversification in 

known territory to minimise regulatory 

and political risks 

Balanced generation portfolio across all 

technologies 

Continuous contribution from stable 

regulated business 

Invest in most economic renewable 

technologies 

Exposure via RWE Dea to global 

unregulated commodity prices 

International 

~1/3 

Unregulated 

~70% 

Operating result 2011 

€5.8bn 

€5.8bn 

Germany 

~2/3 

Regulated 

~30% 



Strategy 

Key priorities 2012/2013 

Disposal 

programme 

> Divestments of up to 

€7 billionby the end 

of 2013 

> Majority of sales 

processes underway 

> Disposal of 19% in 

VSE (GER) closed 

> Agreement for sale of 

Berliner Wasserbetriebe 

signed 

Gas supply 

contracts 

> Completion of 

gas price reviews 

envisaged for 2013 

at the latest 

> Structural solutions 

to eliminate gas-to-oil 

spread 

> Renegotiations 

continue for remaining 

contracts with a 

combined volume 

of 11 bcm 

Efficiency 

enhancement 

> 2012 programme on 

track to be completed 

> Measures of new 

programme fully 

identified 

> ‘RWE 2015’ is laying 

the foundation for 

further efficiencies 

post 2014 



Strategy 

RWE 2015 – four action fields to align RWE with 

changing market environment 

Strategy 

Structures/ 

Roles 

Functional 

excellence 

Cultural 

change 

> Identify opportunities of energy market transformation 

> Align execution of strategy to changing market 

environment 

> Eliminate structural and operational duplications and clarify 

interfaces 

> Establish European generation company 

> Drive efficiency enhancements and operational excellence 

> Realise efficiencies of € 1 bn by 2014 compared to 2012 

> Align management and employees across all parts of RWE 

> Foster high performance culture 



Strategy 

Streamlined and disciplined investment programme 

€ billion 

5.9 

~6.5 Day-to-day 

~1.9 Replacement, of which 

~20% efficiency enhancement 

~7.6 Growth 

6.4 

2009 2010 2011 2012e 2013e 2014e 

1 After planned divestments. 

Renewables, 

Upstream, CEE/SEE (~6.0) 

6.4 

~ 6 

~16 

~4 – 5 p.a. 1 

> Peak of investment programme 

in 2010/2011 

> Finalising conventional power 

generation programme mainly 

in 2012 and 2013 

> More than 60% of our capex will be 

spent in our international businesses 

> Sustainable long-term capex level of 

up to € 5 bn p.a. of which day-to-day 

capex up to € 2.5 bn p.a. 

> Approx. € 16 bn capex programme 

for 2012 – 2014 of which c. € 8 bn 

for growth/efficiency enhancement, 

thereof c. € 6 bn in our growth areas 

Renewables, CEE/SEE and 


> Committed capex 

(including day-to-day, approx.): 

2012 2013 2014 

95% 85% 65% 


35


Strategy 

€ 6 billion earmarked for growth areas until 2014 

CEE/SEE 2 

> Growth opportunities mainly in generation 

> Regional focus on Turkey and Poland 

Upstream Gas & Oil 2 

> 2014 targets post planned 

disposals: 

– Gas and oil production 

of ~ 40 mm boe 

– Operating result of ~ € 800m 

> Development focus on UK, 

Norwegian and North African 

gas fields 

> Longer term growth secured through 

continued successful exploration effort 

~ 30% 

~ 10% 

~ € 6 bn1 

Renewables (RWE Innogy) 2 

> Target capacity of 4.5 GW 

(in operation or under construction) by 2014 

~ 60% 

> Operating result 

of €500 million by 2014 

> Balanced generation portfolio 

across countries and 

technologies: 

– Regional diversification 

across core markets 

– Focus on most cost 

competitive technologies 

to minimise regulatory risk 

> Large project pipeline of c. 14 GW 

> 1.1 GW currently under construction 

1 Growth and replacement capex, excluding day-to-day capex. 

2 Divisional split; regional overlap due to potential upstream and renewable investments in Central Eastern/South Eastern Europe. 


36


Strategy 

By 2014 we will have renewed more than 25% of our 

electricity generation fleet 

Staythorpe 

1.7 GW CCGT 

Lingen 

0.9 GW CCGT 

BoA Neurath 

2.1 GW lignite 

Moerdijk 2 

0.4 GW CCGT 

Claus C 

1.3 GW CCGT 

Pembroke 

2.2 GW CCGT 

12.5 GW 

out of (2011) 

49.2 GW 

Denizli 

0.8 GW CCGT 

Hamm 

1.5 GW Hard coal 

Eemshaven 

1.6 GW Hard coal 

2010 H1 2012 H2 2012 Q1 2013 2013/2014 2014 

Gas 

Lignite 

Hard coal 


37


Strategy 

Conventional power plant new build programme 

Lingen 

(Gas, 876 MW, 100%) 

BoA 2&3, Neurath 

(Lignite, 2,100 MW, 100%) 

Hamm 

(Hard coal, 1,528 MW, 77%) 

Staythorpe 

(Gas, 1,650 MW, 100%) 

Pembroke 

(Gas, 2,188 MW, 100%) 

Moerdijk 2 

(Gas, 426 MW, 100%) 

Claus C 

(Gas, 1,304 MW, 100%) 

Eemshaven 

(Hard coal/biomass, 1,560 MW, 100%) 

Denizli 

(Gas, 775 MW, 70%) 

1 Capex at 100% share. 

€bn 1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 

0.5 

2.6 

2.4 

0.8 

1.2 

0.4 

1.1 

2.9 

0.5 

Units 1 -4 

Units G F 

Units 1 -5 


Units D 

E 

Units A 

38 

B


Strategy 

RWE Innogy major project portfolio 

Gwynt y Môr 

(Wind offshore, 576 MW, 60%) 

Greater Gabbard 


Markinch (Biomass CHP, 

45 MWel , 88 MWth , 100%) 

Nordsee Ost 2 


€bn 1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 

2.4 

1.9 

0.3 

0.9 

Capacity and earnings targets for RWE Innogy until 2014 are mainly driven by 4 major projects 

Large scale projects, especially in offshore wind, play a vital role in achieving European renewable targets as 

growth potential in other areas is limited 

Utilities like RWE have a competitive advantage in these large-scale projects 

1 Capex at 100% share; UK offshore includes investment for grid connection. 

2 The construction schedule had to be revised in 2012 due to the delay in the offshore grid connection. In light of latest statements by 

grid operator TenneT there is a risk of even further delays. 


39


Strategy 

In 2020 approx. 20% of RWE’s generation capacity 

will be in renewables 

Renewables 

Gas/other 1 

~ 40% 

1 Including approx. 8% of others, mainly pumped storage. 

~ 20% 

~ 46 GW 

~ 5% 

~ 35% 

Nuclear 

Coal (partly highly efficient) 


40


Strategy 

Stable portfolio: 30% of operating result derived from 

regulated businesses (2011) 

External revenue EBITDA 

Operating result 

Unregulated 

business 80% 

Regulated 

business 20% 

€ 51,686 

million 

Unregulated 

business ~70% 

Regulated 

business ~30% 

€8,460 

million 

Regulated business particularly includes: 

> German electricity and gas networks 

> Electricity supply in Hungary 

> Eastern European electricity and gas networks and storage 

> Continental European water business 

> Renewables 

Unregulated 

business ~70% 

Regulated 

business ~30% 

€5,814 

million 


41


Strategy 

Strict investment discipline provides platform for 

sustainable dividends 

€ billion 

8.8 

Mid-term target to cover investments and dividends by cash flows from operating activities 

5.5 

9.4 

5.5 

2010 2011 2014/2015e 

Capex in property, plant & equipment and financial assets 

Dividends (incl. minority payments; year of payment) 

≤ 

Cash flows from operating activities 

> Capex level will normalise 

beyond 2013 

> Pay-out ratio of 

50% - 60% of recurrent net 

income 

> Flexibility to adjust 

investments to meet cash 

flow, if necessary 


42


Strategy 

Further efficiency enhancements of € 1 bn initiated 

In € million € 1 bn programme now 

backed bottom-up by 

operational measures 

750 

250 

1,000 

2013 2014 Total 

~250 

Reduced IT-spending 

~300 

Staff reduction 

~450 

Other cost reductions 

and efficiency improvements 

Several hundred individual 

measures across the whole 

RWE group 

Programme includes 

c. € 300 m from workforce 

reduction in 2013/14 

Fully accretive to operating 

result (i.e. post cost inflation 

and one-off cost of 

programme) 


43


Strategy 

Outlook for 2012 / 2013 

€ million 

EBITDA 

Operating 

result 

Recurrent 

net income 

8,460 

5,814 

2,479 

in the order of 2011 



2011 2012e 

after further disposals1 ~9,000 



after further disposals1 2013e 

Dividend € 2.00/share Pay out ratio of 50% – 60% of recurrent net income 

1 Expected earnings dilution from the remaining up to €7 bn divestment programme: 

in € bn EBITDA Operating result Recurrent net income 

2012 no major dilution effect expected 

Full year effect (after 2013) ~0.5 ~0.4 ~0.3 

The 2013 outlook is based on commodity prices as of January 2012. 


44


Strategy 

Major M&A transactions since FY 2008 

Acquisitions Year of acquisition 

Percentage of 

participation 

Urvasco Energía S.A., Spain 2008 100% 

Fri-El S.p.A., Italy 2008 50% 

Powerhouse Holding B.V., Netherlands 2008 100% 

Greater Gabbard Offshore Windparks Ltd., UK 2008 50% 

Excelerate Energy, USA 2008 50% 

Luxempart Energie S.A. (holds stake in SOTEG S.A.), Luxembourg 2009 49 to 100% 

Favorit GmbH, Germany 2009 100% 

Essent N.V., Netherlands 2009 100% 

Breagh gas field and surrounding exploration licenses, UK 

Energy Resources Holding B.V. (ERH, 30% in EPZ) 

Amprion, Germany 

2009 

2011 

2011 

70% 

100% 

Divestments Year of divestment Percentage stake 

Rhenag, Germany 2008 8.23% 

Tarragona Power, Spain 2008 50% 

American Water, USA 2008 from 100 to 60.5% 

2009 from 60.5 to 0% 

swb, Germany 

Thyssengas, Germany 

2011 from 100 to 0% 

1 2009 51% less one share 

1 Divestment by Essent in order to obtain approval for acquisition of Essent N.V. by RWE. 

from 100 to 25,1% 


45


Strategy 

In 2011, RWE spent € 2,875 million on 

environmental protection 

Climate protection 1,845 64 

Clean air 2 407 14 

Waste disposal 208 7 

Water protection 3 298 10 

Nature and landscape 

protection 93 3 

Noise abatement 20 1 

Brownfield sites, 

soil contamination 4 0 

Rounding differences may occur. 

€ million % 

Total: 

€ 2,875 

million 1 

(2010: € 2,863 million) 

1 Including capital expenditure. 

2 E.g. operation of flue gas 

desulphurisation units. 

3 Mainly purification of wastewater. 


46


RWE Share 

RWE AG shareholder structure 

as of December 2011 

Shares of subscribed capital 

Private shareholders 13% 

Employee shareholders 1% 

> 260,000 shareholders own 614.7 million shares 

> Free float: 85% 

(excluding RW Energie-Beteiligungsgesellschaft) 

BlackRock 5% 

RW Energie-Beteiligungsgesellschaft 


15% 

Mondrian Investment 3% 

Other institutional shareholders 63% 

> 86% of all RWE shares are held by institutional 

investors 

> The regional breakdown is as follows: 

Germany 34% 

USA/Canada 12% 

UK/Ireland 19% 

Continental Europe (excl. Germany) 19% 

Rest of the world 2% 

47



RWE share profile 

as of August 2012 

Share information Non-par-value shares 

Common shares Preference shares 

Total number of shares 

Total number of shares outstanding 

Total number of treasury shares 

Bloomberg 

German Security Identification No. 

575.7 million common shares 



Reuters RWEG.DE (Xetra) 

RWEG.F (Frankfurt/Main) 

RWE GY (Xetra) 

RWE GR (Frankfurt/Main) 

703712 

39.0 million preference shares 

39.0 million preference shares 

RWEG_p.DE (Xetra) 

RWEG_p.F (Frankfurt/Main) 

RWE3 GY (Xetra) 

RWE3 GR (Frankfurt/Main) 

703714 

ISIN DE 000703 7129 DE 000703 7145 

US CUSIP No. (ADR) 74975E303 – 

Listings Germany – official – 

Frankfurt/Main 

Düsseldorf 

Xetra 

Abroad 

New York, OTC trading 

(Sponsored level-one ADR programme 

for common shares) 

Germany – official – 

Frankfurt/Main 

Düsseldorf 

Xetra 


48

RWE's dividend history 

Dividend per share 

€ 

€1.00 

Bonus 

€0.10 

€1.00 €1.25 

€3.50 

1 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Dividend yield based on year-end price of RWE common shares 

% 



3.2% 

4.5% 

€1.50 

4.0% 3.7% 

€1.75 

2.8% 

1 Truncated fiscal year of RWE AG from 1 July to 31 December 2001. 

4.2% 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

€3.15 

3.3% 

€4.50 

7.1% 

€3.50 €3.50 

5.2% 

7.0% 

€2.00 

7.4% 


49



Management of financial assets: centralised structure 

> Defines investment strategy 

> Sets guidelines for the implementation 

Investment strategy, 

guidelines & restrictions 

As of 30 June 2012. 

RWE AG Group Finance 

> Centralised asset management by RWE AG 

Investment 

guidelines 

Asset Management Committee (AMC) 

Recommendations & 

reporting 

Internal management External management 

> Members: CFOs of RWE AG, RWE Power, RWE npower, RWE Dea, 

enviaM, Lechwerke, Süwag, Head of Finance of RWE AG 

Asset 

management 

contract 

> RWE AG subsidiaries: € 2.2 bn 

> RWE Pensionstreuhand e.V. (PTV): € 3.1 bn 

> RWE Pensionsfonds AG (PF): € 6.6 bn 

> UK Pension Trust - RWE npower: £ 4.1 bn 

Master ‘KAGs’: RWE AG Group 

> ‘Spezialfonds’: 6 

> Subfunds: 36 

Master ‘KAGs’: PTV + PF 

> ‘Spezialfonds’: 4 

> Subfunds: 66 


50



RWE's corporate treasury – basis for groupwide 

financial risk management 

Capital market 

Ratings 

External market 

FX deals (incl. derivatives) 

Interest deals (incl. derivatives ) 

RWE AG: Corporate Treasury 

Liquidity transfer via cashpool Hedging (fx, interest rates) Intercompany loans 

RWE subsidiaries 

CP programme 

Money market 

> RWE AG acts solely as external counterparty for financial transactions (excluding regulatory requirements) 

> Corporate Group Treasury has the overall responsibility for treasury operations 

> Central database for group-wide financial risk management 


51



Capital market debt maturities and sources of financing 

as of 30 June 2012 

Capital market debt maturities 1 

in € bn 

2.5 

2.0 

1.5 

1.0 

0.5 

0.0 

2012 

2016 

2020 

2024 

2028 

2032 

2036 

Maturities of debt issued Hybrid (first call date) 

Accumulated outstanding debt (incl. hybrid) 

Balanced profile with limited maturities 

up to end of 2014 (~€4.3 billion) 

1 RWE AG and RWE Finance B.V., as of 30 June 2012 

(incl. USD and CHF hybrid, issued 21 and 28 of June) 

2040 

20 

16 

12 

8 

4 

0 

Strong sources of financing 

Fully committed 

syndicated loan 

(€4.0bn up to Nov. 2015) 

Commercial paper 

(up to 1 year) 

MTN programme 

(up to 30 years) 

€0.0bn 

$1.4bn ($5.0bn) 

€1.1bn (30 June 2012) 

for liquidity 

back-up 

€15.9bn (30 June 2012) 2 

2 Bonds outstanding under the MTN-programme, 

i.e. excluding hybrids. Including hybrids: €19.7bn 


€30bn 

52



Capital market debt currency and interest exposure 

as of 30 June 2012 

Bonds (€ 15.9 bn) and hybrids (€ 3.8 bn) 

€ £ 

33% 

€ 19.7 bn 1 

1 Includes interest and cross-currency swaps. 

67% 

Bonds, hybrids and other interest rate related 

positions (e.g. commercial paper and cash) 

18% 

€ 20.5 bn 1 

Interest rate fixing expiry > 1 year 

Interest rate fixing expiry < 1 year 

82% 


53



Credit rating 2012 – RWE AG 

Standard & Poor's 

(BBB+, stable outlook) 

> On 27 July 2012, S&P downgraded the rating for 

RWE from ‘A-’, negative outlook, to ‘BBB+’, stable 

outlook. 

> The downgrade reflects S&P’s view of a sustained 

deterioration of RWE's business risk profile, as well 

as the Group’s weakened cash generation capacity 

and credit protection ratios in the medium term. 

Additionally, S&P says that RWE has not made 

significant headway in executing the announced 

€7 bn disposal programme. 

> S&P positively recognizes the capital measures 

taken and believes that these measurers will help 

stabilize the Group´s financial risk profile at the 

current level. 

> RWE´s business risk profile is currently seen as 

“strong”. 

> The stable outlook reflects S&P´s assumption that 

RWE will be able to maintain cash flow credit metrics 

commensurate with the ratings over the medium 

term. 

Moody's 

(A3, negative Outlook) 

> On 6 July 2012, Moody´s confirmed the rating for 

RWE with ‘A3’ negative outlook. 

> In Moody’s view, positive aspects like strong 

business positions across the energy ‘value chain’ 

and the track record of financial discipline and 

transparency with RWE’s leverage tolerance are to 

an extent offset by a difficult operating environment 

with negative pressure on cash flows and profitability 

over 2012-13 from lower achieved power prices, the 

negative gas/oil spread, the nuclear fuel tax and the 

phase-out of nuclear power generation in Germany. 

> The negative outlook reflects both the execution risk 

around its disposal programme as well as the 

challenges it faces in dealing with pressures on 

earnings, both of which increase the uncertainty 

around RWE's ability to maintain its financial strength 

at levels consistent with its rating. 


54



RWE AG: Financial risk management 

RWE Group companies are subject to strict risk management which is regulated by group-wide directives 

Financial derivatives are not to be used for speculative purposes and serve only to hedge risks arising from operations 

Main financial risk factors are: 

Foreign 

Exchange 

(FX) Risk 

Interest 

Rate Risk 

Counterparty 

Risk (banks) 

Equity Risk 

> RWE Group companies have to hedge any FX risk with RWE AG 

> RWE AG measures the net position for each currency and hedges itself with external counterparties (banks) 

> Measurement and limitation of FX risks is mainly based on an FX value at risk concept [VaR (95/1d) 1 < € 1m] 

RWE has two different risk categories: 

> Bonds which are held as fixed 

income assets: 

– Rising interest rates may lead 

to lower bond prices 

– Average Value at Risk (95/1d) 1 > Financing costs: 

– Rising interest rates may lead to higher financing cost 

– Interest rate exposure from financing activities 

is measured with Cash Flow at Risk 

in 2011: € 7m – Average Cash Flow at Risk (95/1y) 2 in 2011: € 19m 

> Measurement of exposure (caused by cash, term deposits, FX/IR derivatives etc.) for each bank 

> RWE allocates for each bank a limit which is usually derived from the bank’s equity, rating and CDS 

> Shares are part of RWE’s asset portfolio 

> Average Value at Risk (95/1d) 1 of share price changes in 2011: € 12m 

1 Confidence level: 95%; holding period: 1 day. 

2 Confidence level: 95%; holding period: 1 year. 


55



RWE bond programme 

Major bonds issued by the RWE Group 1 

Issuer 

RWE Finance BV EUR 

RWE Finance BV USD 

RWE Finance BV GBP 



Redemptions 2012 - 2014 



RWE AG 

EUR 


Redemptions 2015 - 2018 






Redemptions 2019 - 2023 



EUR 




JPY 

Redemptions from 2030 onwards 

Total 






Total hybrid capital 

Currency 1 

EUR 

CHF 

CHF 

GBP 

USD 

Placement 

Public 

Private 

Public 

Public 

Public 

Public 

Public 

Private 

Public 

Public 

Public 

Public 

Public 

Public 

Public 

Private 

Public 

Public 

Private 

Public 

Public 

Public 

Public 

Public 

1 As of 31 July 2012. 

2 First occasion for RWE to redeem the hybrid bond. 

Volume Issue 

Currency 

in mn 

1,808.0 

250.0 

630.0 

1,000.0 

530.0 

2,000.0 

850.0 

100.0 

980.0 

1,000.0 

570.0 

1,000.0 

500.0 

487.5 

760.0 

600.0 

600.0 

1,000.0 

20,000.0 

1,750.0 

250.0 

150.0 

750.0 

1,000.0 

Volume 

in € mn 

1,808.0 

203.5 

803.6 

1,000.0 

530.0 

4,345.1 

2,000.0 

850.0 

100.0 

980.0 

3,930.0 

1,000.0 

727.1 

1,000.0 

637.8 

621.9 

3,986.7 

969.4 

600.0 

765.4 

1,275.6 

208.3 

3,818.7 

16,080.5 

1,750.0 

208.1 

124.9 

956.7 

814.1 

3,853.7 

Term in 

Years 

11 

3 

11 

5 

10 

27% 

6 

15 

15 

15 

24% 

10 

20 

12,5 

13 

20 

25% 

28 

30 

22 

30 

30 

24% 

Hybrid bonds 

perpetual 

Limited 

Limited 

perpetual 

limited 

Issuance Date 

26.04.2002 

11.02.2010 

26.04.2002 

20.11.2008 

23.07.2004 

09.02.2009 

20.04.2001 

15.11.2002 

23.07.2003 

20.11.2008 

20.04.2001 

09.02.2009 

06.07.2009 

03.07.2003 

26.04.2002 

14.02.2003 

17.01.2012 

06.07.2009 

17.02.2010 

28.09.2010 

21.10.2011 




Maturity Date 


11.02.2013 

03.06.2013 

20.11.2013 

23.07.2014 

10.02.2015 

20.04.2016 

15.11.2017 

23.07.2018 

31.01.2019 

20.04.2021 

10.08.2021 

06.07.2022 

06.12.2023 

03.06.2030 

14.02.2033 

31.01.2034 

06.07.2039 

17.02.2040 

12.10.20172 20.03.20192 26.07.20172 04.04.20172 28.09.20152 Coupon (%) 

6.125 

2.000 

6.375 

5.750 

4.625 

5.000 

6.250 

floating 

5.125 

6.625 

6.500 

6.500 

5.500 

5.625 

6.250 

5.750 

4.750 

6.125 

4.625 

5.250 

5.000 

7.000 

7.000 

German 

Securities 

Code 

855327 

A1ATAH 

855329 

A0T3SN 

A0DAN1 

A0T6L5 

648661 

748536 

957955 

A0T3SP 

648663 

A0T6L6 

A1AJN3 

878761 

855328 

748537 

A1GZLK 

A0AJN2 

A1EWR0 

A1MAVP 

A1PGUU 

A1ML0G 

A1ML2E 

XS0147030554 

XS0485309156 

XS0147048259 

XS0399648301 

XS0196302425 

XS0412842428 

XS0127984747 

XS0158243013 

XS0172851650 

XS0399647675 

XS0127992336 

XS0412842857 

XS0437307464 

XS0170732738 

XS0147048762 

XS0162513211 

XS0735770637 

XS0437306904 

XS0542298012 

CH0136594352 

CH0185843049 

XS0652913988 

XS0767140022 


ISIN Code 

56



Financial liabilities and assets 

excluding hybrid capital – as of 30 June 2012 

Financial liabilities 

in billion euros 

25 

20 

15 

15.8 

1 

1.1 

1.4 

0.6 

2.8 

10 

5.5 13.7 

16.5 

5 0.3 1.8 

0.6 

0 

2.8 

Short term Long term Total 

(≤ 12 months) (> 12 months) 

Bonds, incl. 

other notes 

payable 

Loans with 

banks 

21.3 

Collateral, margin payments 1 

Other: including CP of € 1.1 

bn, finance leasing, financial 

liabilities with non consolidated 

companies, other financial 

liabilities 

Financial assets 

in billion euros 

Securities Collateral, margin payments 1 

Cash/cash 

equivalents 

Other: other financial receivables, 

financial receivables 

with non consolidated companies, 

other loans receivable 

1 Excluding variation margins which are netted against the fair values of the respective derivatives. 

10 

8 

6 

4 

2 

0 

6.6 

0.7 

2.2 

0.8 

2.9 

0.3 

0.4 

0.7 

7.3 

1.0 

2.2 

0.8 

3.3 

Short term Long term Total 

(≤ 12 months) (> 12 months) 

Split of 

securities 

17.4 % 

Interest bearing 

instruments 

Real estate 

(0%) 

Equity 

82.6 % 

Alternative 

investments (0%) 


57



Organisation of risk management in the RWE Group 

Group Controlling 

Risk Controlling Unit 

Controlling of commodity risks 

Commodity Management 

Management of 

commodity risks 

Group Wide Risk Management System 

RWE AG Executive Board 

Overall responsibility for group wide risk management system 

Risk Management Committee 

Responsible for implementing, monitoring and refining group wide risk management system 


Controlling and coordination of group wide risk management system 


Credit Risk Controlling Unit 

Controlling of credit risks 

Operating Companies 

Accounting Department 

Controlling of risks in financial 

reporting 

Finance Department 

Financial Controlling Unit 

Operating management of 

financial risks 

Asset Management 

Committee 

Management of risks associated 

with investments in securities 


58



RWE's commodity risk management infrastructure 


Executive Board 

CFO of 



Commodity 

Management 

Operating 

companies 

> Overall responsibility for risk management system 

> Establishes the rules and minimum standards 

> Defines limits for aggregated market and credit risks 

> Takes decisions on transactions that can result in substantial risks 

> Defines the overall hedging strategy 

> Responsible for tracking and monitoring commodity risks with regard to both the market and the credit side 

> Is responsible for the approval of methods and models for the valuation of commodity risks 

> Sets standards for risk measurement, monitors commodity risks and reports on these to the Executive 

Board 

> Analyses and approves credit limits for large commodity counterparties, large suppliers and banks 

> Manages strategic commodity positions 

> Grants approvals for detailed hedging strategies and large commodity transactions within the framework 

determined by the Executive Board 

> Derives detailed limits for the commodity risks of the operating companies from the risk caps established 

by the Executive Board 

> Handle operative commodity and credit risk management 

> Control and monitor commodity risk positions 


59



RWE Supply & Trading commodity risk limit system 

> RWE Supply & Trading is the RWE Group’s interface to the wholesale markets for power and energy commodities, 

while serving as an internal transaction partner for hedging commodity risks 

> The global risk limits in the energy trading business are set and constantly monitored by the Executive Board of 


> Risk limits are then further detailed: 

RWE AG Executive Board 

Organisational Unit Commodity Management 

RWE Supply & Trading Board 

grants 

grants 

grants 

Global limits for market risks 

restrict 

Detailed market risk limits 

restrict 

Limits for single desks/books/traders 

Comments on 

adequacy of 

limit requests to 

be granted by 

executive board 

and monitors 

limit utilization 



60



Credit risk management at the RWE Group 

High-level 

credit policy 

Robust counterparty 

risk assessment and 

monitoring 

State of the art 

measurement and 

monitoring of exposures 

Clear credit 

incentives 

Driver of credit risk 

mitigation 

1 EFET: European Federation of Energy Traders. 

> Groupwide credit policy has been established. Above all, it is based on overall limitation and 

maximum individual counterparty limits and tenors (based on the creditworthiness of a counterparty) 

for upper-size business 

> Counterparties are assessed using internal rating tools, where available external rating information 

are also taken into account 

> All counterparties are monitored on an ongoing basis and reviewed on a regular basis 

> Potential future credit exposure (= potential replacement value) is calculated with a Value-at-Risk-like 

methodology 

> In addition, both current and future settlement exposure is measured 

> Counterparty credit exposures are reviewed on a near-time basis 

> Credit capital costs are based on the rating/probability of default (PD) of a counterparty 

> Performance determination includes credit risk charges 

> Bundling of know-how in a central credit risk management unit 

> RWE Supply & Trading was a key driver of the EFET 1 standards for power and gas with more than 

130 EFET agreements having been signed so far 

> RWE Supply & Trading plays a leading role in the development of exchanges/OTC clearing 


61




63 Overview 

64 Combined Heat and Power (CHP) Act 

65 Renewable Energy Act 

72 Climate policy 

75 Emissions trading 

80 Large Combustion Plant Directive (LCPD) 

82 Grid 


62


Overview 

Major regulatory measures in the European 

utility markets 

Major regulatory measures in RWE’s core markets 

Core issue 

EU 

National 

Market design/ 

unbundling 

3rd Single 

Market Package 

Energy Market 

Reform 1 

Retail Market 

Reform 1 

Energy 

efficiency 

Energy Efficiency Directive 1 

2012 Amendment to the Energy Act 

1 Announced or going through the legislative procedure. 

2 Renewable Energy Act. 

3 Renewable Obligation Certificate. 

4 Sustainable Energy Incentive Scheme (Subsidieregeling duurzame energieproductie). 

CO 2 reduction Renewables 

ETS Directive 

Carbon Tax 

Renewable Energy 

Directive 

2012 Amendment 

to the REA 2 

Climate Protection Act 1 in North Rhine-Westphalia 

ECO/ Green Deal 

ROC 3 

‘More with Less’ SDE+ 4 

Coal tax1 Conventional 

generation 

Large Combustion 

Plant Directive 

Industrial Emissions 

Directive 

Nuclear 

Phase-out 


63


CHP 

German Combined Heat and Power Generation Act 1 

Issue Combined heat and power (CHP) legislation 

Term Effective since April 2002, amended on January 1, 2009 and in July 2012. The provisions of this Act 

apply to all CHP plants commissioned after July 19, 2012. 

Aim >Modernisation and new build of high efficient CHP plants for energy conservation and CO 2 reduction 

> 25% share of CHP electricity generation by 2020 

Object of subsidy >Electricity actually generated in CHP plants (back pressure) including internal consumption of industry 

>Support is no longer connected to the feed into supply grids 

>2009: Scope of the law extended to heating grids; 2012: scope extended to cooling grids as well as to 

heating and cooling storage 

Levels of subsidy >The amount and duration of compensation varies depending on the year of operation as well as the size 

of the plant, whereby modernized plants and fuel cells are assigned a separate compensation category 

>Plants with commissioning date between January 1, 2009 and December 31, 2020 are eligible for the 

subsidy 

Volume >Annual cap of € 750 million including € 150 million for heating and cooling grids and heating and cooling 

storage 

>€ 396 million in 2010; € 5,776 million since April 2002 

Funding Allocation to total supplies to end customers from the public supply grid 

Limitation of the burden on industry >Max. 0.05 ct/kWh for large consumers with a yearly consumption of more than 100,000 kWh 

>Max. 0.025 ct/kWh for energy-intensive industry (> 4% of energy costs of gross production value) 

Passing-on clause Network operators have the right to pass on all feed-in payments 

1 Figures and scheme taken from the amendment in 2012 effective July 19, 2012. 


64



German Renewable Energy Act 1 (I) 

Issue Renewable energy legislation 

Term >Effective since April 2000 and mainly amended on August 1, 2004, January 1, 2009 and January 2012 

>Different support of plants with service lives of up to 20 years 

Aim Supports introduction of renewables-based electricity generation plants and helps to meet the emissions 

reduction target set by the federal government: min. 35% electricity production from renewables by 2020 

Object of subsidy Electricity actually generated in renewable plants which feed into the supply grid 

Levels of subsidy Different price schemes for existing and new renewable plants (wind, water, biomass, solar, biogas, 

geothermal energy) 

Volume Approx. € 16 billion feed-in tariffs in 2011 without system costs (grid, balancing power); projection for 

2012: € 18 billion, projection for 2013: € 19.3 billion 

Funding Amount allocated to total supplies to end customers from the public supply grid was about 3.53 ct/kWh 

in 2011 and is about 3.592 ct/kWh in 2012 

Limitation of the burden for industry Hardship clause came into effect as of January 1, 2006 and was extended on January 1, 2012; reduced 

amount if a company consumes more than 1 GWh (originally: 10 GWh) and electricity costs are at least 

14% (originally: 15%) of gross production value. Reduction of the EEG surcharge to 10% for a share of 

electricity between 1 and 10 GWh, to 1% for a share of electricity between 10 and 100 GWh. Amount is 

limited to 0.05 ct/kWh for the share of electricity exceeding 100 GWh. 

Passing-on clause Grid operators have the right to pass on all surcharge payments to the suppliers 

1 Figures and scheme taken from the German Renewable Energy Act effective as of January 1, 2012. 


65



German Renewable Energy Act 1 (II) 

Renewable Energy Act - Feed-in tariff rates 2 

ct/kWh 

Hydropower 3.40 – 12.70 

Landfill gas, sewage gas, pit gas 3.98 – 8.60 

Biogas from biological waste or liquid manure 14.00 – 25.00 

Biomass 6.0 – 25.30 

Geothermal energy 25.00 – 30.00 

Photovoltaics 13.5 – 19.5 

Wind power onshore 

offshore 

4.87 – 9.91 

3.50 – 19.00 

1 Figures and scheme taken from the German Renewable Energy Act effective as of January 1, 2012 

(PV: as of April 1, 2012). 

2 Depending on size of plant, year of commissioning operation and technology. 

Source: German Ministry for the Environment, Nature Conservation and Nuclear Safety. 


66



Renewable energy surcharges expected to increase 

further 

Development of power generated in accordance with the German Renewable Energy Act 

(REA) and REA surcharges for 2000 – 2016 (forecast) 

bn 

0 

kWh 

2016 

2014 


2010 

2008 

2006 

2004 

2002 

2000 

€bn 

10 

20 

30 

40 

50 

60 

70 

80 

90 

100 

110 

120 

130 140 150 

0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 


160 

Power generated (bn kWh) 

67 

170 

Power generated (bn kWh, forecast) 

Feed-in fees (€ bn) 

Feed-in fees (€ bn, forecast) 

22.0 23.0 24.0 

Sources: German Energy and Water Association (BDEW), December 2011. 

German transmission system operators (www.eeg-kwk.net), data until 2010 as of May 2009, data from 2011 as of November 2010, data 

from 2012 on as of November 2011 (from 2012 on: fees for market premium, direct marketing and PV self consumption included).



Renewable energy’s share of total electricity 

generation in Germany 

Gross generation in Germany (2011) 

Nuclear 17.6% 

Lignite 24.9% 

Hard coal 18.6% 

Gas 13.7% 

Other 5.3% 

Renewable energy 19.9% 

614.5 billion 

kWh 

Generation 

subsidized by REA 1 

REA 1 compensation 

92 billion kWh 2 € 16 bn 3 

Photovoltaic 

1 REA = German Renewable Energy Act. 

2 Next to the power generation subsidised by the German REA of 92,266 GWh in 2011, another 12,332 GWh of power from renewable sources 

(REA electricity) was sold on the free market (direct marketing in accordance with §17 REA). 

3 Including avoided network fees. 

Sources: Gross generation: BDEW, BMWI; REA generation + REA compensation: German transmission system operators 

(www.eeg-kwk.net) as of November 2010 (provisional data). 

RWE Facts & Figures | Updated September 2012 68 

20% 

2% 

27% 

51% 

Photovoltaic 

Hydro 

Biomass 

Wind 

46% 

1% 

27% 

26% 

Hydro 

Biomass 

Wind



German Renewable Energy Act compensation and 

forecast through 2016 

€ billion (gross) 

25 

20 

15 

10 

5 

0 

1.2 

1.6 

2.2 

2.6 

3.6 

4.5 

5.8 

7.9 

9.0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 

Hydro Biomass Onshore wind Offshore wind Photovoltaic Other 

Source: Renewable Energy Act medium-term forecast of electricity transmission system operators. Data until 2010 as of May 2009, data for 

2011 as of November 2010, data for 2012 onwards as of November 2011 (from 2012 onwards fees for market premium, direct 

marketing and photovoltaic self consumption included). 

10.0 

12.3 

16.0 

7.3 

0.2 

4.0 

4.3 

0.2 

18.0 

19.3 

20.7 

22.1 

23.7 

0.1 

11.1 

3.1 

3.8 

5.2 

0.3 


69



Subsidy efficiency: contribution of German Renewable 

Energy Act – subsidised power generation in 2011 

Installed capacity 

MW 

Power generation 

Power generation (including generation from 

direct marketing according to §17 EEG) 

39 2 2,791 9 1,298 103 6,194 

Extra cost in millions of Euros, based on an average electricity price of €60/MWh 

Power generated 

bn kWh 1 

1 Next to the power generation subsidised by the German Renewable Energy Act of 92,266 GWh in 2011, another 12,332 GWh of 

power from renewable sources (REA electricity) was sold on the free market (direct marketing in accordance with §17 EEG). 

Source: Renewable Energy Act medium-term forecast of electricity transmission system operators, November 2010 (provisional data). 


70



Installed capacity in Germany compensated according 

to the Renewable Energy Act 

Development of capacity (MW) in 2006 - 2010 

50.000 50,000 

40.000 40,000 

30.000 30,000 

20.000 20,000 

10.000 10,000 

0 

2006 2007 2008 2009 2010 

Source: Federal Network Agency, EEG-Statistikbericht, August 2012. 

51,364 

27,071 

17,554 

4,685 

1,417 

638 

Total 

Wind 

Photovoltaic 

Biomass 

Hydro 

Others 


71



The EU has set three 20% targets for 2020. 

Achievement of some is challenging 

Greenhouse gas (GHG) emissions Renewable energy sources (RES) Energy efficiency 

Mt CO2e 5,750 

5,500 

5,250 

5,000 

4,750 

4,500 

4,250 

4,000 

1990 

1995 

2000 

Actual GHG emissions 

20% target 

2005 

2010 

2015 

> 2020 just interim step to even 

tighter targets in 2050 

> Nuclear moratorium in Germany 

has shifted balances by 45Mt 

per year 

2020 

25% 

20% 

15% 

10% 

5% 

0% 

1990 

20% target 

RES share of final 

energy consumption 

1995 

2000 

2005 

> EU RES target translates into 

country-specific RES targets of 

member states 

> Attractive RES subsidy schemes 

implemented across Europe 

Mtoe Primary energy consumption (Mt OE) 

1,900 

> Appears most challenging 

> Addressed by European 

Commission now 

> Country specific concerns: when 

is a house properly insulated? 

How fast should we move? 

Source: EuroStat, UNFCCC. GHG=Greenhouse Gas Emissions, CO 2 e=CO 2 equivalent, OE=Oil equivalent. Latest available official data from 2009. 

2010 

2015 

2020 

1,800 

1,700 

1,600 

1,500 

1,400 

1990 

1995 

2000 

EU 27 

EU 25 

20% target - EU25 

2005 

2010 

2015 


2020 

72



EU 27 is on track towards achieving its 2020 emission 

reduction target (-20%) 

Mt CO 2 equivalents 

6,500 

6,000 

5,500 

5,000 

4,500 

4,000 

1970 

1975 

1980 

1985 

-20% target 

Official 2010 GHG inventory Scaled trend Mean estimate (2009) 

1990 

Absolute greenhouse gas emissions in the EU 27, 1970 – 2009, million ton CO 2 equivalents. 

Source: EEA. 

1995 

baseline 

2000 

2005 

> 2009 emissions stand 17% below the 

1990 level and therefore very close to 

the target of -20% by 2020 

> Economic crisis accelerated the decline 

in EU GHGs emissions 

> Return to economic growth may 

temporarily level off or reverse the 

decline in emissions 

> Impact of German nuclear moratorium 

is assessed at around 45 mt additional 

emissions per year 

> That‘s 1% of total EU emissions 

> CO2 balances for the EU ETS have 

turned negative and system is now 

slightly short 


73



Renewable energy sources: currently it is far from certain 

that EU target and utility sector sub-target will be achieved 

Share of RES in final energy demand 

% 

Share of RES in the utility sector 

% 

25 

20 

15 

10 

5 

0 

40 

30 

20 

10 

0 

20% EU target 

+5% 

p.a. 

2001 2005 2010 2020 

+9% 

p.a. 

2001 2005 2010 2020 

> According to national renewable energy 

action plans the targets for 2020 will be 

met 

> To achieve these targets renewable 

energy production needs to increase 

at an annual growth rate of 5% 

> To achieve the sub-target for the utility 

sector, growth in the order of 9% per 

year is required 

> This requires close to double the 

growth seen between 2005-2010 

> According to EU estimates, annual 

capital investments need to double 

to € 70bn 


74



Allocated CO 2 allowances 1 in Germany, 

UK and EU-27 (2011) 

Allocated allowances in Germany 2011 

Electricity 54% 

Metals 15% 

Combustion 12% 

Cement & lime 8% 

Refineries 7% 

Other industries 4% 

Allocated allowances in United Kingdom 2011 


Metals 11% 



Refineries 8% 


401 mt 

CO 2 

223 mt 

CO 2 

Allocated allowances EU 27 2011 


Metals 12% 



Refineries 8% 


1,993 mt 

CO 2 

1 Excluding auctioned certificates and new entrant reserves. 

Source: EEA. 


75



EU ETS Emissions in Germany, UK and EU-27 (2011) 

Emissions in Germany 2011 


Metals 8% 



Refineries 6% 


Emissions in United Kingdom 2011 


Metals 6% 



Refineries 8% 


450 mt 

CO 2 

221 mt 

CO 2 

Emissions EU 27 2011 


Metals 8% 



Refineries 7% 


Source: EEA. 

1,879 mt 

CO 2 


76



CDM/JI projects give RWE access to cost-effective 

reduction of greenhouse gas emissions (I) 

Clean Development Mechanism (CDM) 

Emission reductions through investment by 

an industrialised country in a country without 

reduction commitments are credited to the 

emission account of the investor country 

Joint Implementation (JI) 

Emission reductions through investment 

by one industrialised country in a second 

industrialised country are credited to the 

emission account of the investor country 

Source: UNFCCC; http://cdm.unfccc.int. 

Investment 

Germany/UK Emission rights E.g. China 

Investment 

Germany/UK Emission rights E.g. Russia 


77



CDM/JI projects give RWE access to cost-effective 

reduction of greenhouse gas emissions (II) 

Expected average annual certificates from registered 

CDM projects by host country in September 2012 

China 64.2% 

India 10.9% 

Brazil 3.9% 

Republic of Korea 3.1% 

Mexico 2.0% 

Indonesia 1.3% 

Vietnam 1.4% 

Uzbekistan 1.0% 

Others 12.2% 

Source: UNFCCC; http://cdm.unfccc.int. 

> By September 2012, a total of 

4,547 registered CDM projects is 

expected to supply more than 2.2 

billion certificates by the end of 


> A substantial portion of the 

certificate volumes contracted are 

accounted for by Chinese projects 


78



RWE’s current Kyoto credit portfolio for 2008-2012 

Projects by December 2011 

million certificates 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 

ERPA 1 

in 

validation 

in 

operation 2 

Contract 

volume 

ERPA 1 

in 

validation 

in 

operation 2 

Risk 

adjusted 

volume 

Contract volume by region 

1 ERPA = Emission reduction purchase agreement. 

2 In Operation: Projects that have already issued certificates. 

3 Latest EU-directive for certificates implies no additional redemption capacity for RWE Power concerning the years 2013 till 2020, 

but usage of certificates is still enabled post 2012. RWE’s redemption capacity consists of the redemption capacity of RWE Power, 

RWE npower and Essent. 

~100 

RWE's redemption 

capacity 

(2008 - 2020) 3 

3 

Contract volume by technology 

Hydro 

N2O HFC23 

Energy Efficiency 

Wind 

Biogas 

CMM 

Biomass 

Methane avoidance 

Solar 

Fugitive 

others 

China 

South Korea 

Egypt 

India 

South-East-Asia 

East-Europe 

Ukraine 

Russia 

Least developed countries 

South America 


79


LCPD 

The EU Large Combustion Plant Directive (LCPD) 

Since 2008, coal and oil-fired power stations have been governed by the Large Combustion Plant Directive (LCPD). This imposes new limits 

on the amounts of sulphur dioxide (SO 2 ), nitrogen oxides (NO x ) and dust power stations can emit. 

Step 1 

> Power plants had to choose whether to comply with the LCPD or request a limited life derogation (opt out) 

> Power stations which opted out are allowed to run for 20,000 hours, or until the end of 2015, whichever comes sooner 

Step 2 

Those power stations which comply with the LCPD are governed in one of two ways1 : 

> Emission Limit Value (ELV) 

The power station must adhere to specific limits to the amounts of pollutants produced on a ‘milligram per cubic metre of waste gas’ basis 

> National Emission Reduction Plan (NERP) 

A company is given an overall allowance (amount of a pollutant that can be emitted per year) of emissions it may produce. 

The emission allowances issued under NERP are tradable within a member state 

Step 3 

> In addition to the above, existing oil and coal-fired power plants must reduce nitrogen oxide emissions from 500 mg/Nm 3 to 200 mg/Nm 3 

by January 1, 2016. This will entail fitting selective catalytic reduction (SCR) equipment 

1 While most the EU member states, including Germany, chose to implement Emission Limit Values (ELV), a number have opted for National 

Emission Reduction Plans (NERPs), while in the UK individual power plants could choose between being regulated on the ELV, or under a NERP. 


80


LCPD 

Due to the LCPD a shut-down of 11–12 GW by the end 

of 2015 (or earlier) is expected in the UK market 

Installation Operator Fuel Installed 

capacity 

(MW) 

Capacity 

opted in 1 

(MW) 

Capacity 

opted out 2 

(MW) 

FGD 3 status 

Eggborough British Energy Coal 1,960 1,960 - 2 out of 4 units fitted 

Drax Drax Power Coal 3,870 3,870 - Fitted 

Kingsnorth E.ON UK Coal/Oil 1,940 - 1,940 No FGD 

Ratcliffe E.ON UK Coal 1,960 1,960 - Fitted 

Ironbridge E.ON UK Coal 940 - 940 No FGD 

Grain E.ON UK Oil 1,300 - 1,300 No FGD 

Cottam EDF Energy Coal 2,000 2,000 - Fitted 

West Burton EDF Energy Coal 1,970 970 - Fitted 

Rugeley International Power Coal 1,000 1,000 - Fitted 

Didcot A RWE npower Coal/Gas 1,940 - 1,940 No FGD 

Aberthaw RWE npower Coal 1,530 1,530 - Fitted 

Littlebrook RWE npower Oil 1,370 - 1,370 No FGD 

Fawley RWE npower Oil 1,000 - 1,000 No FGD 

Tilbury RWE npower Coal 1,020 - 1,020 No FGD 

Ferrybridge Scottish & Southern Energy Coal 1,960 980 980 Fitted 

Fiddlers Ferry Scottish & Southern Energy Coal 1,960 1,960 - Fitted 

Longannet Scottish Power Coal 2,304 2,304 - 3 out of 4units fitted 

Cockenzie Scottish Power Coal 1,152 - 1,152 No FGD 

Uskmouth Scottish & Southern Energy Coal 363 363 0 Fitted 

Total 31,539 18,897 11,642 

1 Compliant with LCPD emission limits (Drax, Eggboroughand Longannet in NERP). 

2 Limitation of operating hours to 20,000 between Jan. 1, 2008 and Dec. 31, 2015. No requirement to fit FGD. 

3 FGD: flue gas desulphurisation. 

Source: DECC (DUKES). 


81


Grid 

The German Energy Industry Act: regulating grid access 

and grid fees in the electricity and gas markets 

Exploration/ 

generation 

Competition 

1 Federal Network Agency. 

Exchange 

trading OTC 

Competition 

Unbundling of grids from generation, wholesale and retail 

(number of grid operators) 

Transport 

Bundesnetzagentur 

1 

(electricity: 4, 

Distribution 

Bundesnetzagentur 1 

(electricity and gas: 

ca. 300) 

gas: 14) Distribution 

federal states 

(electricity and gas: 

ca. 1,200) 

Regulation of grid access and 

grid fees 

Retail 

Competition 


Customers 

82


Grid 

The German Energy Industry Act: unbundling in the 

German energy grids (3rd Energy Package) 

TSO 1 

DSO 2 

>100,000 

customers 

DSO 2 


Grid 

The German Energy Industry Act: 

key elements of grid fee calculation (I) 

Investments before / since 2006 

in % 

Electricity Gas 

Allowed RoE 

2005-2008 

Investments before 2006 Investments since 2006 

1 Electricity 2009-2013, Gas 2009-2012 

2 Electricity 2014-2018, Gas 2013-2017 

Electricity 

& Gas 

Allowed RoE 

1 st period 1 

Electricity 

& Gas 

Allowed RoE 

2 nd period 2 

Framework conditions 

> There is an ex ante approval of the revenue caps, 

but no ex ante approval of the grid fees which can 

be checked ex post by the Federal Network 

Agency. 

> RoE 

– The permitted proportion of equity-financed 

assets is restricted to 40% 

– Current cost accounting for rate of return and 

imputed depreciation will continue to apply for 

all investments before December 31, 2005 

– All investments as from January 1, 2006, will 

yield interest based on the method of inflationadjusted 

historic cost accounting and be 

subjected to imputed depreciation 

> Tax treatment: 

– Recognition of corporation taxes since incentive 

regulation has become effective (2009). 

Reflected in higher RoE 

– Full recognition of trade tax (pass-through) 


84


Grid 

The German Energy Industry Act: 

key elements of grid fee calculation (II) 

Conditions for incentive-based regulation 

> Returns on equity: 

7.14% for existing electricity and gas assets and 9.05% for new investments in the second 

regulatory period. 

> Special treatment of investment in growth and restructuring 

Fast-track treatment of large budgeted growth investment projects by the regulator to ensure 

adequate and timely remuneration for utilities. But mostly applicable only for transmission system 

operators. Distribution system operators can adjust the revenue cap by an expansion factor which 

covers the sustainable expansion of the networks within the regulatory period. 

> Average efficiency of German electricity distribution companies estimated at 94% indicating 

average company-specific efficiency targets of only 0.6% p.a. ("individual x factor") in the first 

regulatory period (in the second regulatory period the individual inefficiency has to be eliminated 

by the end of the period). 

> Quality component has been established during the first period: electricity distribution companies 

with a comparable high quality level get a bonus, companies with a low quality get a penalty. 

Opportunities and risks are limited by a cap. 


85


Grid 

Efficient cost and revenue management is key to 

determining the profit earned by grid operations 

Electricity 

baseline 

years 

Permissible costs in 2008 based on 2006 

2006 

Cannot be 

influenced 

lastingly 

Can be 

influenced 

Cannot be 

influenced 

for the 

time being 

Revenue cap 

Annual 

percentage 

revenue 

adjustment 

2011 costs 

2011 

Deduction resulting 

from the cost audit 

1 

2 

Revenue cap 

Annual percentage 

revenue adjustment 

“Inefficient” costs in 2006 

determined via benchmarking 

– reduced after second 

regulatory period 

2016 

1 st electricity regulation period 2 nd electricity regulation period 

2009 – 2013 2014 – 2018 


4 

3 

86


Grid 

Regulated grid revenue is determined in four steps 

1 

2 

3 

4 

Cost reviews: elimination of elements unique to the reference year. 

Determination of the efficiency figure: based on total cost benchmarking 

(TOTEX) against other grid operators. 

Annual percent adjustment of costs that can be influenced (inefficient costs): 

Consumer Price Index minus x factor (CPI-X) and the expansion factor for the 

integration of renewables, among other things. 

Annual adjustment of costs that can never be influenced (non-influenceable 

costs): upstream grid/avoided grid fees, investment measures, incidental 

staff costs, etc. 

Revenue may rise and fall: incentive-based regulation is not a one-way street. 


87


Grid 

Power grid expansion act (EnLAG): project status 

Status of the EnLAG projects 

As of August 2012. 

Source: Federal Network Agency. 

Power grid expansion act 

> With the introduction of the EnLAG in August 2009, the 

German government responded to the necessity of 

expanding the transmission networks. 

> The expansion was made necessary in particular by the 

increasing transportation distance and the increased use 

of renewable energy sources (e.g. offshore wind farms) 

> The EnLAG requirement plan includes 24 expansion 

projects which are to be realised as soon as possible 

not yet in authority 

approval phase 

regional impact 

assessment phase 

plan approval process 

approved or under 

construction 

completed 


x 

x 

behind 

schedule 

on schedule 

88


Grid 

National electricity network development plan 

Lead scenario B 2022 

Source: Network development plan Electricity 2012, 2nd draft, Federal Network Agency. 

Network development plan 2012 

In addition to EnLAG projects: 

> New build of 3,800 km extra-high voltage lines 

> of which: 2,100 km high-voltage direct current 

transmission 

> Restructuring of 4,000 km extra-high voltage lines 


89


Grid 

Number of sensitive network situations and redispatchvolume 

(§ 13.1 EnWG) 1 in winter 2011/2012 

Conneforde 

Mecklar 

Lehrte 

Mehrum 

Wolmirstedt 

Helmstedt 

Vieselbach 

Redwitz 

Kriegenbrunn 

Remptendorf 

Röhrsdorf 

Number of hours in which measures according to 

§13.1 no. 2 EnWG (Energy Industry Act) were taken 

Krajnik 

Vierraden 

Hradec 

0 200 < 400 

Grid element Number of 

hours 

Redwitz – Remptemdorf 

Helmstedt – Wolmirsted 

UW Kriegenbrunn 

Lehrte – Mehrum 

Vierradem – Krajnik 

UW Conneforde 

Röhrsdorf – Hradec 

Viselb./Eisen.-Mecklar 

2,000 

326 

308 

212 

177 

102 

57 

50 

MWh Change vs. 

winter 2010/2011 

2,140,997 

24,021 

50,051 

17,877 

18,528 

25,935 

15,495 

2,470 

148% 

78% 

523% 

5,700% 

-35% 


30,800% 

17,700% 

10,200% 

1 According to § 13.1 of the German Energy Industry Act, network or market-related measures (e.g. redispatch) are employed if uninterrupted supply 

… is threatened. 

Source: Federal Network Agency. 

90



Market data 

92 Electricity 

133 Gas 


91



Electricity 

93 Generation 

113 Fuels 

115 Trading 

118 Grid 

121 Supply 


92


Electricity – Generation 

Shares of primary energy sources in total electricity 

generation in Europe (2010) 

% 

Austria 

Belgium 

Bulgaria 

Cyprus 

Czech Rep. 

Denmark 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Lithuania 

Luxembourg 

Malta 

Netherlands 

Poland 

Portugal 

Romania 

Slovakia 

Slovenia 

Spain 

Sweden 

Turkey 


0% 0 20% 20 40% 40 60% 60 80% 80 100% 100 

Source: Enerdata, 2012. 

Nuclear 

Hydro 

Wind 

Gas 

Oil 

Coal/lignite 

Other 

Total net power 

generation 

bn kWh 

68 

93 

42 

5 

79 

37 

12 

77 

57 

35 

27 

6 

5 

5 

2 

113 

144 

52 

57 

25 

15 

145 

228 

287 

292 

364 


549 

583 

0 100 200 300 400 500 600 

93



Capacity trends in 50 years of thermal power 

generation in Europe - Gas on the rise since 1993 

Annual commissionings of thermal power generation capacities in the EU 27 in GW*) 

Oil (43 GW) Gas (172 GW) 

Year of commissioning Year of commissioning Year of commissioning 

> 

> > 

1962 

1972 

1982 

1992 

2002 


GW 

0 5 10 15 

1962 

1972 

1982 

1992 

2002 


GW 

0 5 10 15 

1 Adjusted net generation capacity. 

Sources: Platts Database, Worldwatch Institute, RWE, 2012. 

Lignite (51 GW) 

1962 

1972 

1982 

1992 

2002 


GW 

0 5 10 15 

Hard coal (115 GW) 

Year of commissioning 

> 

1962 

1972 

1982 

1992 

2002 


GW 

0 5 10 15 

Nuclear (125 GW) 

Year of commissioning 

> 

1962 

1972 

1982 

1992 

2002 



GW 

0 5 10 15 

94



Germany’s generation portfolio is overaged: >15 GW 

already online longer than originally scheduled 

Age structure of Germany’s fossil-fuelled power plants 

GW 

12 

10 

8 

6 

4 

2 

0 

Originally planned 

service life 

>50 >45 >40 >35 >30 >25 >20 >15 >10 >5 0-5 

gas / oil 

hard coal 

lignite 

Age (in years) 


95



German energy and power mix (2011) 

Natural gas 20% 

Hard coal 13% 

Nuclear 9% 

Lignite 12% 

Renewables 11% 

Other 2% 

Primary energy consumption Gross power generation 

456 million tons of coal equivalent 614.5 billion kWh (preliminary) 

Mineral oil 34% 

Nuclear 18% 

Lignite 25% 

Hard coal 19% 

Natural gas 14% 

Renewables 20% 

Other 4% 


Source: Energy Balance Working Group, German Energy and Water Association, February 2012. 


96



RWE: most diversified generation mix in Europe (I) 

Share in power plant capacity of own generation by fuel type 2011 

(installed capacity) 

100% 

80% 

60% 

40% 

20% 

0% 

Centrica CEZ EDF Enel E.ON Fortum GDF Iberdrola RWE SSE 

Source: Annual reports, company presentations, RWE. 

Hydro/ 

other 

Gas 

Hard Coal 

Lignite 

Nuclear 


97



RWE: most diversified generation mix in Europe (II) 

Share in electricity generation of own generation by fuel type 2011 

(generation output) 

100% 

80% 

60% 

40% 

20% 

0% 

Centrica CEZ EDF Enel E.ON Fortum GDF Iberdrola RWE 

Source: Annual reports, company presentations, RWE 

Hydro/ 

other 

Gas 

Hard Coal 

Lignite 

Nuclear 


98



RWE: No. 2 in European power generation 

Share in EU 27 power generation (2011) 

EdF 17.1 % 

RWE 6.6 % 

E.ON 6.0 % 

GDF SUEZ 5.9 % 

Enel 5.8 % 

Vattenfall 4.9 % 

Iberdrola 2.8 % 

CEZ 2.2 % 

EnBW 1.9 % 

Others *) 44.3% 

1 2011 Forecast. 

Source: 2011 annual reports, RWE. 

3,112 

bn kWh1 RWE Facts & Figures | Updated September 2012 

99



Development of number of wind turbines and installed 

wind capacity in Germany (1990-2011) 

30,000 30000 

25,000 25000 

20,000 20000 

15,000 15000 

10,000 10000 

5,000 5000 

0 

1990 

Installed wind capacity (MW) 

Number of wind turbines 

1991 

1992 

1993 

1994 

1995 

Source: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, 2011. 

1996 

1997 

1998 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 


29,071 MW 

2010 

22,297 

2011 

100



Regional distribution of installed wind capacity in 

Germany (2011) 

MW 

8,000 8000 

7,000 7000 

6,000 6000 

5,000 5000 

4,000 4000 

3,000 3000 

2,000 2000 

1,000 1000 

0 

7,038 

Lower Saxony 

4,601 

Brandenburg 

3,642 

Saxony-Anhalt 

3,276 

Schleswig- 

Holstein 

3,067 

North Rhine- 

Westphalia 

Rhineland- 

Palatinate 

Mecklenburg- 

West Pomerania 


1,663 

1,627 

976 

Saxony 

801 

Thuringia 

684 

Bavaria 

684 

Hesse 

486 

Baden 

Württemberg 

141 

Bremen 

127 

Saarland 

53 

Hamburg 


2 

Berlin 

101



Development of installed PV capacity and electricity 

generation in Germany (1990-2011) 

30,000 30000 

25,000 25000 

20,000 20000 

15,000 15000 

10,000 10000 

5,000 5000 

0 

1990 

Installed PV capacity (MWp ) 

Electricity generation (GWh) 

1991 

1992 

1993 

1994 

1995 

1996 


1997 

1998 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

25,039 MW p 

2009 

2010 


19,340 

2011 

102



Attractiveness of coal and gas differs in Germany and 

the UK 

German power price UK power price 

Power price 

Must 

run 1 

New 

lignite 

Nuclear 

Lignite 

0 10 20 30 40 50 60 70 80 90 100 

Proportion of installed capacity (in %) 

> Large proportion of low marginal cost plant from 

nuclear, lignite, CHP and wind 

> Load factor for new coal plant somewhat higher 

in Germany than in the UK 

1 Including renewables and CHP. 

2 Oil, OCGT, hydro, etc. 

Min. Max. 

Hourly Demand 

New 

hard coal 

Hard coal 

New 

CCGT 

OCGT + 

CCGT 

Peaking 2 

Power price 

Interconnector 

& 

Must run 1 

Nuclear 

New 

CCGT 

Min. Max. 

Hourly demand 

CCGT 

Merit order swaps 

in winter due to 

higher gas prices 

Hard 

coal 

0 10 20 30 40 50 60 70 80 90 100 

Proportion of installed capacity (in %) 

> Higher share of high marginal cost plant 

> New gas plant in UK has significantly higher load 

factor than in Germany 

> New coal not economic as must be CCS-ready 


Peaking 2 

103



CO 2 reduction potential of coal-fired power plants 1 

by increased efficiency 

CO 2 emissions per kWh 

World average 

30% 

1,116 g CO 2 /kWh 

480 g coal/kWh 

EU average 

38% 

881 g CO 2 /kWh 


State of the art 

technology 

45% 

743 g CO 2 /kWh 


Steam power plant 

700°C technology 

About 50% 

…% 

…g CO 2 /kWh 

… g coal/kWh 

669 g CO 2 /kWh 


2010 2020 

1 Average data for hard coal-fired power plants. 

2 CCS: Carbon Capture and Storage. 

Source: VGB Tech, Electricity Generation Facts and Figures 2011/12. 

Efficiency 1 

CO 2 emission 

Use of fuel 

CCS 

technology 2 

But: 

Efficiency 

losses of 

7 - 12% points 

CO 2 reduction 

- 21% 

- 33% 

- 40% 

- 90% 


time 

104



Overview of German nuclear power plants 

German nuclear power plants 

Emsland 

Biblis 

Brunsbüttel 

Unterweser 

Neckarwestheim 

Brokdorf 

Grohnde 

Philippsburg 

Krümmel 

Grafenrheinfeld 

Isar 

Gundremmingen 

Power plant Net capacity 

MW 

Commercial 

commissioning 

Biblis A 1,167 1975 

Neckarwestheim I 785 1976 

Biblis B 1,227 1977 

Brunsbüttel 771 1977 

Isar 1 878 1979 

Unterweser 1,345 1979 

Philippsburg 1 890 1980 

Krümmel 1,346 1984 

Grafenrheinfeld 1,275 1982 

Gundremmingen B 1,284 1984 

Philippsburg 2 1,392 1985 

Grohnde 1,360 1985 

Gundremmingen C 1,288 1985 

Brokdorf 1,410 1986 

Isar 2 1,400 1988 

Emsland 1,329 1988 

Neckarwestheim II 1,310 1989 

RWE power plants 

20,457 

Closure 


March/August 

2011 

8,409 MW 

31 Dec 2015 

31 Dec 2017 

31 Dec 2019 

31 Dec 2021 

4,058 MW 

31 Dec 2022 

4,039 MW 

105



The merit order and aspects influencing its structure 

provide a better tool for looking at the dynamics of 

power plant portfolios 

The German merit order – 

the marginal power plant principle 

Variable costs in €/MWh 

Market price 

Nuclear Lignite 

Capacity in demand 

(marginal plant) 

Hard 

coal Gas Oil 

Supplied capacity in MW 

Illustrative 

Min. Max. 

> The operation of power plants follows the 

sequence of short-run marginal costs: the 

merit order 

> Due to low price elasticity of demand, prices 

in electricity markets are driven by the merit 

order structure 

> Margins depend primarily on the cost 

efficiency of the available supply, not on 

adequacy (marginal plant mechanism) 


106



Wind generation works more or less like negative 

demand 

Change in German merit order 

due to wind generation 


Market price 


Demand 

-wind 


Illustrative 

Demand 

Hard 

coal Gas Oil 

Demand 

- wind 

+ exports 

Offer price 

> Being treated as ‘negative demand’, mustrun 

capacity (e.g. power generation from 

wind) changes the demand which has to be 

covered by conventional power plants 

> This means, although must-run changes the 

resulting market price indirectly, it does not 

change the structure of the merit order 

> In times of high must-run feed-in and low 

domestic demand the overall effect is 

partially compensated by exports 


107



The CO 2 cap-and-trade system has reduced the gap in 

the merit order between upper base-load and lower 

peak-load electricity 

Change in German merit 

order due to CO 2 



With CO 2 

Without CO 2 

Illustrative 

Hard 

coal Gas Oil 


Offer price 

> Marginal costs for old lignite-fired power 

stations increased more than marginal costs 

for efficient hard coal plants 

> Marginal costs for old hard coal-fired power 

stations rose more compared to those of 

efficient gas-fired power stations 

> As this is a dynamic system with changing 

fuel price relations (e.g. gas vs. hard coal), 

it is difficult nevertheless to predict at which 

CO2 price levels a switch between the fuel 

types in the merit order would happen 


108



Balancing power: how does it work? 

f 

Starting point – e.g. power station breakdown 

5 s 30 s 15 min 1 h 

Primary Secondary 

5 s 30 s 15 min 1 h 

Primary 

> Automatic control at the generator/turbine 

> E.g. thermal power plants 

1 TSO: Transmission system operator. 

2 BRP: Balance-responsible party. 

Secondary reserve 

> Automatic control by the TSO, 

load frequency control 

> E.g. pumped storage 

Frequency 

Minute reserve Hour reserve 

TSO 1 BRP 2 

... 

Minute reserve 

> Manual activation by TSO 

> Manual, e.g. thermal power plants 


109



Development of electricity load values in Germany 

in 2008 – 2012 

Peak load values (3rd Wednesday) 

GW 

85 

5000 

80 

0000 

75 

5000 

70 

0000 

65 

5000 

60 

0000 

Jan 

Feb 

Mar 

Apr 

2012 2011 2010 2009 2008 

Source: ENTSO-E. 

May 

Jun 

Jul 

Aug 

Sep 

Oct 

Nov 


Dec 

110



German electricity system at its limit 

Capacity situation on 8 February 2012 

Sufficient electricity supply was only guaranteed on the basis of hardly any outages in the thermal generation fleet 

GW 

150 

100 

50 

12 

0 

GW 

6 

5 

4 

3 

2 

1 

0 

8 

4 

0 

Solar 

Installed 

capacity 

France 

Wind 

Hydro 

Thermal 

capacity 

Capacity 

not available 

Required 

balancing power 1 

German domestic 

consumption 

Net export 

balance 

No relief through electricity imports during peak hours due to likewise high electricity demand in neighbouring 

countries: demand for electricity exports were higher than available imports 

Export (from Germany) Import (into Germany) 

Remaining spare 

capacity (



Scenarios for German capacity reserve margins 

Reliable available spare capacity for peak demand 

GW 

10 

8 

6 

4 

2 

0 

-2 

-4 

-6 

-8 

-10 

2012 2013 2014 2015 2016 2017 2018 2019 2020 

System required spare capacity (ENTSO-E) 

Scenario 1 Scenario 2 Scenario 3 

Scenarios 

Starting point: ENTSO-E’s 

Scenario B (January 19:00 pm) 1 

Development of capacity reserve 

margin considering... 

Scenario 1: 

... only announced new build 

and most likely shut down of 

power plants 

Scenario 2: 

... additionally to scenario 1: 

plus shut down of plants 

>50 years of lifetime 

Scenario 3: 

... additionally to scenario 2: 

plus shut down of plants which 

are uneconomically according 

to RWE market model 

1 Peak demand increased by 9 GW while reliable available capacity only by ~3 GW compared to System Adequacy Report 2011. 

Source: ENTSO-E (2012), RWE estimates (May 2012) 


112


Electricity – Fuels 

Main sea freight trading routes for hard coal 

in 2011 (I) 

Seaborne hard coal trade in 2011: 978 million mt 

To the 

Far East 

91 

USA 

32 

CANADA 

80 

COLOMBIA/ 

VENEZUELA 

API#2 

API#4 

API = All Publications Index. 

Source: German Coal Importers‘ Association, Annual Report 2012, published in July 2012. 

67 

SOUTH AFRICA 

101 

RUSSIA 

14 

CHINA 

270 

INDONESIA 

281 

API#3 

Canada/USA 

AUSTRALIA 


113



Main sea freight trading routes for hard coal (II) 

Major products traded on worldwide coal markets 

API#2 

API#3 

API#4 

The TFS API#2 is a monthly basket index for the ARA (harbours of Amsterdam, Rotterdam, 

Antwerp) 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 

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

GAD (gross air dried) FOB Newcastle (Australia) and published on a weekly and a monthly 

average basis. 

Calculation: (FOB Newcastle price + Barlow Jonker Index (BJI)) divided by 2 

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 Independent States. 

FOB = Free On Board. 

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

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

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

Source: German Coal Importers‘ Association, Annual Report 2012, published in July 2012. 


114


Electricity – Trading 

Major European electricity exchanges 

Nord Pool Oslo 

European Energy Exchange (EEX), Leipzig 

APX Power NL, Amsterdam 

APX Power UK, London 

EPEX SPOT, Paris 

Belpex, Brussels 

Omel, Madrid 

Energy Exchange Austria (EXAA), Vienna 

SPAIN 

UK 

FRANCE 

NORWAY 

NETHER- 

LANDS GERMANY 

BELGIUM 

DENMARK 

SWEDEN 

AUSTRIA 

FINLAND 


115



Turkey as a future energy hub 

Physical power demand of neighbouring countries 340.7 billion kWh 

Natural gas demand of neighbouring countries 157.1 billion cubic meters (bcm) 

Gas demand 

[bcm] 

Power demand 

[billion kWh] 

Russia: 389.6 686.2 

Azerbaijan: 7.8 12.4 

Armenia: 2.1 4.5 

Georgia: 1.7 5.9 

Ukraine: 47.0 121.6 

Romania: 11.7 50.6 

Bulgaria: 2.3 32.6 

Greece: 3.4 53.5 

Turkey: 43.0 229.3 

Syria: 7.1 27.2 

Iraq: 1.3 33.2 

Turkmenistan: 19.9 9.3 

Qatar: 20.0 20.9 

All data represents year 2009; Electricity consumption for Romania, Serbia, Bulgaria and Greece derived from ENTSO-E; 

Other electricity consumption figures are derived from IEA and CIA; Natural gas consumption figures are derived from IEA and IHS. 


116



Power trading volumes in continental Europe 

2001 – 2011 

Billion kWh 1 

10,000 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

- 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Germany France Netherlands Scandinavia 

Germany OTC France OTC Netherlands OTC Spain 

1 Measurable power trading volumes at exchanges and brokering platforms (OTC). 


117


Electricity – Grid 

The European ENTSO-E 1 power transmission grid 

Continental European 

synchronous area 

Baltic synchronous area 

Nordic synchronous area 

British synchronous area 

Irish synchronous area 

Isolated systems of Cyprus 

and Iceland 

1 synchronous with the continental 

European system 

2 synchronous with the 

Baltic system 

3 from September 2010 in trial 

synchronous operation with the 

continental European system 

PT IT 

ES 

MA 1 

FR 

BE 

L 

1 ENTSO-E = European Network of Transmission System Operators for Electricity. 

IS 

IE 

GB 

DZ 1 

NL 

CH 

TN 1 

DK 

DE 

CZ 

AT 

SI 

FI 

NO EE 

SE 

HR 

BA 

PL 

SK 

HU 

LT 

RU2 

RS 

AL 1 

MK 

GR 

LV 

UA-W2 

RO 

BY 2 

BG 

UA 2 

RU 2 

MD 2 


TR 3 

CY 

118



Germany's transmission system operators (2011) 

Amprion 

TransnetBW 

TenneT 

50 Hertz 

Amprion TenneT 50 Hertz TransnetBW 

System size [km] 

(380 kV) 

5,300 5,800 6,830 1,993 

System size [km] 

(220 kV) 

5,700 4,900 2,862 1,655 

Area covered [km²] 73,100 140,000 109,360 34,600 


119



Germany: import and export of electricity in 2011 

bn kWh 

Export from Germany 

Import into Germany 

FRANCE 

NETHER- 

LANDS 

2.55 

1 2010 Figure. 

Source: www.netzentwicklungsplan.de, Amprion. 

5.20 

1.68 

8.06 

7.59 4.54 

SWITZERLAND 

DENMARK SWEDEN 

2.95 

0.63 

2.09 

GERMANY 

Export 38.63 

Import 38.35 

1.24 

0.15 

17.02 

0.11 

2.05 

9.51 

7.99 

1 

2.59 

CZECH 

REPUBLIC 

AUSTRIA 

POLAND 


120


Electricity – Supply 

The largest electricity companies in Europe 2011 1 

Consolidated electricity sales volume 

billion kWh 

E.ON (GER) 

EdF (FRA) 

GDF SUEZ (FRA) 

RWE (GER) 

Iberdrola (ESP) 

Vattenfall (SWE) 

EnBW (GER) 

ENEL (ITA) 

104 

157 

156 

210 

294 

320 

1 Last completed fiscal year. Sales are excluding proprietary trading. 

Source: RWE analysis, August 2012. 

508 

0 100 200 300 400 500 600 700 800 900 1000 1100 1200 

1,145 


121



Development of energy consumption in Germany 

Development by segment: Electricity Development by segment: Gas 

bn kWh 

600 

500 

400 

300 

200 

100 

0 

532 534 540 

142 140 140 

120 121 121 

16 16 17 

254 255 252 

8 

9 

9 

139 142 140 

120 124 124 

16 17 17 

227 227 229 

2006 2007 2008 2009 2010 2011 

Residential customers Transport 

Services1 Industry 

Agriculture 

1 Also includes public consumption. 

538 

9 

518 

Source: German Energy and Water Association, 2012. 

9 

518 

9 

bn kWh 

1,200 1200 

1,000 1000 

800 

600 

400 

200 

0 

962 980 973 

459 438 453 

410 386 360 

447 

484 

330 348 352 

104 115 126 118 126 120 


365 

2006 2007 2008 2009 2010 2011 

Residential and commercial customers 2 

Industry 

Power plants 

939 

2 Also includes transport and district heating. 

958 

837 

122



Electricity prices in Europe (for industrial customers) 

Average electricity prices for industrial customers 1 in the second half of 2011 

in selected European countries 

€ct/kWh 

Malta 

Ireland 

Slovakia 

Italy 

Latvia 

Spain 

Czech Republic 

Lithuania 

Belgium 

United 

Luxembourg 

EU 27 

Hungary 

Germany 

Portugal 

Poland 

Slovenia 

Croatia 

Netherlands 

Sweden 

Denmark 

Romania 

Turkey 

Finland 

France 

Bulgaria 

Aus tria 

7.30 

6.80 

6.67 

6.57 

6.44 

10.34 

10.14 

9.98 

9.57 

9.35 

9.34 

8.99 

8.95 

8.95 

8.89 

8.86 

8.29 

8.23 

8.10 

8.03 

2 

1 Basis: industrial customers with a consumption of 500 – 2,000 MWh; prices excluding value-added tax and all other recoverable taxes and levies. 

2 Provisional data. 

Source: Eurostat, July 2012. 

11.01 

11.00 

12.60 

12.18 

11.95 

0 2 4 6 8 10 12 14 16 18 20 

10.71 

18.00 


123



Pan-European comparison of the household 

electricity prices 

Electricity prices excluding all taxes and levies; second half of 2011 

€ct/kWh 

Ireland 

Spain 


Austria 

Luxembourg 

Italy 

Germany 

Norway 

Netherlands 

Sweden 

Denmark 

EU 27 


Hungary 

Finland 

Portugal 

Poland 

France 

Turkey 

Romania 

Bulgaria 

Source: Eurostat, July 2012; rounding differences may occur. 

7.27 

8.23 

9.19 

10.68 

10.52 

10.17 

11.92 

11.08 

ØEU 27 

12.08 

13.51 

13.43 

13.40 

13.15 

13.10 

14.44 

14.36 

14.12 

13.95 

0 2 4 6 8 10 12 14 16 18 20 

15.09 

16.84 

17.55 


124



German households rank second in terms of 

state-caused charges on the electricity bills 

% 

Denmark 

Germany 

Portugal 

Sweden 

France 

Austria 

The Netherlands 

Finland 

Greece 

Spain 

Bulgaria 

Luxembourg 

Ireland 

UK 

4.7 

11.9 

13.5 

18 

16.7 

19.9 

25.4 

24.7 

28.2 

27.4 

0 10 20 30 40 50 60 

Source: Eurostat, 1 st half of 2011 (average); prices incl. taxes, levies and fees, annual consumption of 2,500 – 5,000 kWh, 

German Energy and Water Association, November 2011. 

34.2 

38.6 

44.4 


56.6 

125



German industrial customers face highest 

state-caused charges on the electricity bills 

% 

Germany 

The Netherlands 

France 

Denmark 

Finland 

Portugal 

Greece 

Spain 

UK 

Luxembourg 

Bulgaria 

Sweden 

Ireland 

0.7 

0.4 

1.5 

4.4 

4.3 

4.8 

6.7 

9.3 

8.9 

11.8 

0 5 10 15 20 25 30 

Source: Eurostat, 1 st half of 2011 (average); prices incl. taxes, levies and fees, annual consumption of 500 MWh – 2,000 MWh, 

German Energy and Water Association, November 2011. 

15.0 

18.0 

27.9 


126



Competition has been a reality since 1999: 

freedom of choice for German residential electricity 

customers; increasing churn rates 

Churn rate of electricity customers (accumulated) 

Million customers 

12 

10 

8 

6 

4 

2 

3.1 

8% 

4.3 

11% 

7.4 

18.9% 

8.3 

20.7% 

Source: German Energy and Water Association, June 2012. 

8.8 

21.7% 

9.8 

24.6% 

10.3 

25.8% 

11.00 

27.7% 

11.20 

28.2% 

Nov 2006 Nov 2007 Dec 2008 Oct 2009 Oct 2010 Apr 2011 Oct 2011 Mar 2012 Jun 12 


127



German state-caused charges in electricity prices 

State-caused charges for all electricity customers 

€ billion (excluding value-added tax) 

25 

20 

15 

10 

5 

0 

4.1 

0.26 

2.00 

1.82 

6.9 

0.61 

0.90 

2.05 

3.36 

8.5 

0.99 

1.15 

2.04 

4.32 

0.67 

1.63 

2.08 

5.10 

13.8 14.3 

12.9 13.5 

0.79 

0.70 

0.52 0.63 

11.4 11.9 12.3 

0.76 

0.77 0.85 

1.91 2.30 2.92 3.73 4.30 4.88 5.27 

2.15 

6.53 

2.22 

6.60 

2.07 

6.46 

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Concession fees (estimated) 

Electricity tax2 9.5 

German Combined Heat and Power Act 

German Renewable Energy Act2 1 Estimated figures. 

2 Various sources. 

Source: German Energy and Water Association, April 2012. 

2.09 

6.27 

2.14 

6.35 

2.17 

6.26 

2.16 

6.28 

17.1 

0.45 

8.33 

2.11 

6.17 

23.1 

0.15 

13.53 

2.15 

7.15 


1 

+ 578% 

23.7 

0.13 

14.11 

0.44 

2.15 

6.82 

Levy acc. to §19 Electricity Network Charges Ordinance 

(StromNEV) 

1 

128



Industrial customers pay higher governmental charges 

Development of average industrial 1 electricity prices (including electricity tax) 

1998 = 100% 

100 

2 

95 

4 

65 

10 

13 

13 

23 

21 

21 

20 

21 

19 

24 29 

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Taxes, levies & fees 

Renewable Energy Act, Combined Heat and Power Act, electricity tax 

Net electricity prices 

Generation, transmission and sales 

1 Medium voltage, purchase of 500 kW/3,150h. 

Source: German Energy and Water Association, April 2011. 

69 

74 

90 

96 

104 

123 

122 

142 

122 

129 

150 149 

38 

39 


129



Government inflates German electricity bills 

Average monthly electricity bill of a three-person household (3,500 kWh/a) 

€/month 

49.95 48.20 

12.35 

37.60 

14.40 

33.80 

40.66 41.76 

15.51 16.68 

25.15 25.08 

46.99 

18.67 

20.30 

20.82 

21.70 

22.49 

24.65 

25.20 

28.32 29.84 31.56 32.73 34.27 35.55 37.95 

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

n Taxes, levies & fees 

Renewable Energy Act, Combined Heat and Power Act, concession fees, electricity tax and value-added tax 

n Net electricity prices 

Generation, transmission, distribution, metering, sales and marketing 


50.14 52.38 54.43 56.76 60.20 

63.15 

67.70 69.10 73.59 

Gains resulting from deregulation are being eroded by additional burdens imposed 

by policymakers 

26.53 

41.17 

28.57 

40.53 

33.19 

39.59 

Change (1998 = 100%) 

75.08 

+ 50% 

34.10 

40.98 


+ 176% 

+ 9% 

130



Government charges account for 45% of German 

household electricity bills 1 

25.74 ct/kWh break down as follows (as of April 2012): 

1 3,500 kWh/a. 

2 VAT at 19%. 

State: 

11.69 ct/kWh 

Value-added tax 2 4.11 16.0% 

Renewable 

Energy Act 3.59 13.9% 

Electricity tax 2.05 8.0% 

Concession fee 1.79 6.9% 

Combined Heat 

and Power Act 0.15 0.6% 



45.4% 

Generation, transmission and supply: 

14.05 ct/kWh 


131



Blackouts in Europe in minutes (2010) 

Minutes 

200 

150 

100 

50 

0 

14.9 

17.0 

31.8 

33.7 

Germany Denmark Austria Netherlands Italy France Portugal Finland 

Source: German Energy and Water Association, July 2012. 

47.8 

62.9 

173.0 

193.0 


132



Gas 

134 Trading 

136 LNG 

138 Storage 

140 Downstream 

141 Supply 

145 Turkish market 

146 Czech market 


133


Gas – Trading 

Gas markets develop and are becoming global – 

flexibility becomes key success factor 

Gas trade flows 2011 – billion m 3 

Source: BP (2012). 

> Gas supply and 

pricing structures 

change 

> International LNG 

further growing: 

Linking European, 

American and 

Asian gas markets 

> Liquidity of 

European gas 

markets rising 

with gas prices 

increasingly volatile 

> Shift of key 

success factor: 

From ‘volume 

creates value’ to 

‘flexibility creates 

value’ 


134



European gas trading hubs 

UNITED 

KINGDOM 

(NBP) 

Bacton 

Dunkirk 

Vesterled 

IUK 

Langeled 

Blaregnies 

FRANCE 

(PEG) 

Franpipe 

Zeepipe 

BBL 

Norpipe 

Balgzand 

Oude 

Zeebrugge 

Zelzate 

Europipe 1+2 

NETHERLANDS 

(TTF) 

S‘Gravenvoeren 

BELGIUM 

RTR 

LUXEMBOURG 

Bocholtz 

Aachen 

Obergailbach 

TENP 

DENMARK 

DEUDAN 

Ellund 

NETRA 

GERMANY 

NCG/GPL 

WEDAL 

Wallbach 

SWITZERLAND 

Griesspass 

Emden 

MEGAL 

Oberkappel 

Tarvisio 

Waidhaus 

TAG 

Mallnow 

St. Katherina 

CZECH 

REPUBLIC 

WAG 

AUSTRIA 

Nord Stream 

Greifswald 

Baumgarten 

(CEGH) 

Gas trading point 

Transport route 


135


Gas – LNG 

LNG is becoming an increasingly important component 

of global gas supply 

Global natural gas demand and LNG's share 

billion m 3 

5000 5,000 

4,000 4000 

3,000 3000 

2,000 2000 

1,000 1000 

0 

Source: PIRA, IEA. 

7% 

10% 

12% 

2005 2010 2020 

Asia Pacific 

Africa 

Middle East 

Europe and Eurasia 

South and Central America 

North America 

LNG 


136


Gas – LNG 

How the liquefied natural gas (LNG) value chain works 

Pipeline 

Liquefaction 

Storage 

Shipping 

Storage 

Regasification 

Pipeline 

Transport 

system 

Gas field 

Liquefaction plant 

Gas: � 600 m 3 at 15 °C 

LNG: 1 m 3 at -162 °C 

LNG: 1 m 3 at -162 °C 

Gas: � 600 m 

Regasification terminal 

3 at 15 °C 

Power 

generation 

Vessel transport volume (standard range): 

135 – 155 thousand m3 LNG 

� 81 – 93 million m3 regasified volume 

� 495 – 565 thousand boe 

� 0.9 – 1.0 bn kWh 


137


Gas – Storage 

Gas storage facilities in Europe – Germany is leading 

Number of natural gas storage 

facilities 

Germany 

Italy 

France 

Aus tria 

UK 

Hungary 

Czech Rep. 

Romania 

Slovakia 

NL 

Latvia 

1 

1 

3 

5 

6 

5 

8 

8 

10 

15 

Source: Eurogas Statistical Report, January 2011. 

46 

0 10 20 30 40 50 

EU 27: 124 

Their maximum working gas 

capacity – million m 3 

Germany 

Italy 

France 

Aus tria 

UK 

Hungary 

Czech Rep. 

Romania 

Slovakia 

NL 

Latvia 

3,127 

2,760 

2,785 

2,325 

4,744 

4,350 

6,330 

5,000 

11,900 

21,297 

14,747 

0 5,000 5000 10,000 10000 15,000 15000 20,000 20000 

Their maximum withdrawal 

capacity – million m 3 /day 

Germany 515 

France 

Austria 

Hungary 

Czech Rep. 

Romania 

Slovakia 

Latvia 

EU 27: 85,990 million m 3 EU 27: 1,453 million m 3 per day 

Italy 

UK 

NL 

28 

39 

24 

55 

52 

86 

72 

153 

145 

200 

0 100 200 300 400 500 


138



Gas storage facilities in Germany 

Locations of German subterranean gas storage facilities 

NETHERLANDS 

Cologne 

BELGIUM 

LUXEM- 

BOURG 

FRANCE 

Dortmund 

Saarbrücken 

Frankfurt 

Freiburg 

GERMANY 

Stuttgart 

Bremen 

Hanover 

Nuremberg 

Hamburg 

Erfurt 

Munich 

Rostock 

Berlin 

Leipzig 

Dresden 

POLAND 

CZECH 

REPUBLIC 

AUSTRIA 

Source: German Energy and Water Association (BDEW), March 2012. 

> Germany’s underground gas storage facilities at 

40 locations have a capacity of roughly 21 billion m 3 

of process gas. This represents roughly a quarter of 

the amount of gas used in Germany in 2011. 

Germany’s gas industry thus has the largest storage 

capacity within the European Union. 

> A further 23 underground gas storage facilities with 

a working gas capacity of more than 11 billion m 3 are 

either under construction or in the planning stage. 

This will cause the share of German annual gas 

consumption covered by available gas storage 

capacity to rise to about 40%. 


139


Gas – Downstream 

The largest gas companies in Europe 2011 1 

Consolidated gas sales volume – billion kWh 

E.ON (GER) 

ENI (ITA) 

Gasterra (NED) 

GDF SUEZ (FRA) 

Wintershall (GER) 

Gas Natural (ESP) 

RWE (GER) 

322 

396 

462 

572 

0 200 400 600 800 1000 1200 1400 

1 Last completed fiscal year. Sales are excluding proprietary trading. 

Source: RWE analysis, August 2012. 

954 

1,064 

1,342 


140


Gas – Supply 

German residential gas prices compared with other 

European countries 

All-gas household: annual consumption: 5,560 – 55,560 kWh 1 

€ct/kWh (incl. taxes) 

14 

13 

12 

11 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

11.23 

11.76 

DEN SWE AUT NED CZE ESP POL GER ITA BEL FRA UK 

Average gas price 

7.08 

7.29 

1 Cooking, hot water and heating. 

Source: Eurostat 2012; average prices for 2011; based on purchasing power standards. 

5.70 

5.38 

4.82 

6.14 

7.85 

6.83 

6.13 

4.74 


7.08 

141




German residential gas prices from 2000 to 2011 

compared with other European countries 

All-gas household: annual consumption: 23,500 kWh 1 

€ct/kWh (incl. taxes) 

10 

9 

8 

7 

6 

5 

4 

3 

2 

1 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

1 Cooking, hot water and heating; 5,560 – 55,560 kWh after second half of 2007. 

Source: Eurostat, 2011. 

Belgium 

Austria 

Germany 

Italy 

Spain 

France 

Netherlands 



142



Government charges included in the German gas price 

Import/production, 

transportation, 

storage and distribution 70% 

Value-added tax 16% 

Gas tax 8% 

Prorated production levy 2% 

Concession fee 4% 

30% of the gas price 1 payable by an all-gas household is allocable to taxes and levies 

1 Example based on the average price per kWh for an all-gas household (as of 1.4.2011) with a ‘basic supply contract’. 

Source: Federal Network Agency (2012). 


143



Natural gas supplies in Germany (2011) 

Russia 329 bn kWh 31% 

Norway 297 bn kWh 28% 

Netherlands 223 bn kWh 21% 

National 118 bn kWh 11% 

Denmark, UK, Others 96 bn kWh 9% 

1 Preliminary figure, ‘National’ includes bio gas. 

Source: German Energy and Water Association (BDEW), February 2012. 

Total: 

1,062 bn kWh 1 


144


Gas – Turkish market 

Turkey as a gateway to the world’s natural gas reserves 

Proven natural gas reserves – million bcm 

Top ten countries 

Russia 

Iran 

Qatar 

Saudi Arabia 

USA 

Turkmenistan 

UAE 

Nigeria 

Venezuela 

Algeria 

5 

5 

5 

8 

8 

8 

7 

25 

30 

Caspian and Gulf total 70% 

of the world natural gas reserves 

45 

Bubble size is indicative of the size of reserves 

Azerbaijan 

0.85 

Iraq 

3.2 

QATAR 

25.4 

Saudi Arabia 

7.8 

Russia 

44.8 

Kuwait 

1.8 


Turkmenistan 

7.5 

Iran 

29.6 

United Arab 

Emirates 

6.5 

145


Gas – Czech market 

Relevant institutions and their role in the 

Czech gas market (I) 

(1) 

(2) 

According to the Energy Law, the following three institutions are responsible for the execution of state control 

in the energy market: 

(1) Energy Regulatory Office (ERO) 

(2) State Energy Inspection Authority 

(3) Ministry of Industry and Trade 

There are also additional institutions that have a significant impact on the domestic energy market and 

its participants, including: 

(4) Market Operator 

(5) Office for the Protection of Competition (UOHS) 

ERO is an autonomous authority, which is responsible for the regulation of the Czech energy market. 

Among others, ERO 

> supports market competition, development of secondary and renewable energy sources, 

and the protection of energy consumers 

> grants and cancels licenses for activities related to the energy business 

> makes regulatory decisions regarding prices 

> resolves disputes between license holders or between customers and license holders 

> drafts and approves rules pertaining to the domestic energy market model 

State Energy Inspection Authority is authorised to assess buyer and seller behaviour 

and recommend sanctions to ERO. 


146



Relevant institutions and their role in the 

Czech gas market (II) 

(3) 

(4) 

(5) 

Among others, the Ministry of Industry and Trade: 

> Issues state consent for the construction of selected gas infrastructure projects 

> Prepares the State Energy Concept, a document establishing the country’s long-term energy goals 

> Informs the European Commission of the country’s developments within the energy sector 

Market Operator provides comprehensive services to the energy sector, including: 

> Organisation of short-term gas and electricity markets in cooperation with the TSOs 

> Administration of the registry of greenhouse gas emissions trading 

> Financial settlement of imbalances in the gas and electricity systems 

> Provision of technical support for customer switching 

UOHS is the central state administration authority responsible for establishing conditions that promote and 

safeguard competition, supervising public procurement as well as acting as advisor and supervisor for 

the provision of state aid. 


147



Status of Czech gas market liberalisation and regulation 

> The opening of the Czech market began in 2005. 

> Since January 1, 2006, all end customers have been eligible, with the exception of residential customers. 

> On January 1, 2007, all customers including residential customers became eligible. 

Full market liberalisation and complete market opening was achieved and competitors started to enter 

the market. 

The transmission system operator Net4Gas was set up as an entity that is legally independent from 

RWE Transgas, a.s. which holds the gas trading license. The ownership however was retained by RWE. 

On January 1, 2007, regional gas companies (RGCs) were separated from the regional gas distribution 

system operators (DSOs). 

At the same time, a new market model was introduced. It consists of a virtual trading point, an entry-exit 

system and the possibility of gas sales beyond the distribution system operators’ (DSOs) balancing zones. In 

order to control the constitution of the market, legal restrictions are set as a framework in which, for example, 

the principal of non-discriminatory supply conditions for non-consolidated regional gas companies (RGCs), 

including other market participants, is monitored. 

RWE in CZ is subject to the following restrictions due to its dominant position in the Czech gas market: 

> The commodity price (i.e. gas price): This price is being monitored by ERO. RWE Transgas has to offer 

non-discriminatory prices to the same customer segment. 

> Transportation and distribution prices are regulated and have to be approved by ERO. The calculation is 

made on a ‘cost plus’ basis and the costs have to be justified in detail. 

> Storage prices are not regulated, but are set in multi-round online auctions organised by SSOs. 


148



Czech gas market: gas-price setting mechanism 

The 

value chain 

Price 

composition 

Portion of 

final price 

Entity 

Gross trade 

margin 

Supervised 

by ERO 

4 – 8% 

RWE Transgas 

regional gas 

companies 

> External factors influence approx. 70 – 80% of the final price of natural gas 

1 Prices are linked to other fuels (oil, fuel) or based on spot market. 

2 Negotiated third-party access. 

Commodity Storage Distribution Transmission 

Nonregulated 

1 

NTPA 2 , 

prices are 

set in 

auctions 

Regulated Regulated 

70 – 80% 4 – 8% 15 – 20% 3 – 5% 

Foreign 

producers 

(Russia, 

Norway) 


Gas storage 

Distribution 

system 

operators 

Net4Gas 


149



Czech gas market: basics of the regulatory framework 

Escalation of costs, depreciation and regulated asset base 

Costs 

Depreciation 

Regulated 

asset base 

Unbundling 

Revaluation 

”Inflation - X” escalation (inflation is composed of the Consumer Price Index (CPI) 

with 1% premium and index of selected B2B services). Incentives stem from outperformance 

potential over the X-factor set by ERO. 

Planned book values with ex-post correction to actual values. 

The ERO defines the value, which forms the initial basis. Annual planned net investments 

are added to the basis. Ex-post corrections reflect actual net investments (DSO). 

There are some residual allowed costs from previous regulatory periods related to the 

unbundling of system operators from vertically integrated companies (applied only in 2010). 

For regulatory purposes, ERO currently acknowledges the restated depreciation 

of revalued assets (according to Czech accounting standards). However, the revaluation 

effected regulatory asset base only to a minor extent. 


150

Organisation Strategy & financing Political environment Market data RWE 


152 Electricity 

197 Gas 

219 Investor Relations 


151


Electricity 

153 Generation 

184 Fuels 

187 Trading 

189 Grid 

190 Supply 


152



RWE share of the European power generation market 

by region (2011) 

Share of in-house generation (excluding electricity purchased from third parties) 

% 

40 

30 

20 

10 

0 

27 

1 Including contracted generation. 

2 Countries included: CZ, HU, PL, SK. 

Source: Eurostat, ENTSO-E, RWE. 

6 

1 

Germany Netherlands/Belgium Netherlands/ 

UK Central Eastern and 

Belgium 

South Eastern Europe 

8 


2 

2 

153



RWE's share of the German power generation market 

relative to peers (2011) 

Total net electricity production (including self generators) 

RWE 154.4 billion kWh 29% 

E.ON 89.6 billion kWh 17% 

Vattenfall Europe 62.3 billion kWh 12% Total: 

530.2 billion 

EnBW 59.5 billion kWh 11% 

Others (incl. Industry) 164.4 billion kWh 31% 

Source: German Energy and Water Association (BDEW), RWE. 

kWh 


154



RWE Group electricity production by primary fuel and 

electricity purchases (2011) 

Billion kWh 

120 

100 

80 

60 

40 

20 

0 

74.1 

68.6 

20.8 

34.3 

Total: 312.8 billion kWh 1 

Lignite Hard coal Nuclear Gas Renewable 

energies 

Pumped 

storage, oil, 

other 

Electricity 

purchases 

RWE power plants 

Electricity procured from power plants that are not owned by RWE that we can deploy at our discretion 

on the basis of long-term agreements 

38.5 

1 The difference between 312.8 billion kWh of power generation output and 294.6 billion kWh of electricity sales is due 

to grid losses and own use. 

8.8 

2.2 

107.1 


155



RWE Group electricity production by geographic 

region (2011) 

Billion kWh 

1 Net, excluding trading. Purchases for physical deliveries to customers only. 

Germany UK NL/BE Other Total 

Lignite 68.3 – – 5.8 74.1 

Nuclear 34.3 – – – 34.3 

Hard coal 

thereof contracts 

33.6 

20.8 

Gas 12.0 21.3 5.1 0.1 38.5 

Renewable energies 


Pumped storage, oil, other 


4.0 

0.5 

2.2 

1.7 

Subtotal 154.4 31.5 12.0 7.8 205.7 

Electricity purchases 1 55.4 22.3 10.2 19.2 107.1 

Total 209.8 53.8 22.2 27.0 312.8 

8.6 

– 

1.6 

0.9 

– 

– 

5.1 

– 

1.8 

– 

– 

– 

0.5 

– 

1.4 

– 

– 

– 

47.8 

20.8 

8.8 

1.4 

2.2 

1.7 


156



The role of electricity purchase agreements 

in RWE’s German generation business 

Generation capacity of RWE’s Germany Division 

as of 31 December 2011 

RWE-owned 72% 

STEAG 13% 

E.ON 6% 

Others 9% 

Total: 

31.3 GW 

Electricity generation of RWE’s Germany Division 

in 2011 

RWE-owned 85% 

STEAG 8% 

E.ON 5% 

Others 2% 

> Long-term contracts relating to fossil-fired and hydro power plants 

> RWE has full entrepreneurial control over power plants 

> RWE can use most outside purchases until the end of the power plant's useful life 

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

152.0 billion 

kWh 


157



RWE’s Germany Division’s power plant portfolio 1 (I) 

Power plant Country 

(Germany 

unless stated) 

Operating 

company 

Commissioned 

1 As of 31 December 2011; rounding differences may occur on the power plant list. 

Net 

capacity 

RWE's legal 

consolidation 

stake 

RWE's 

economic 

stake 

Partner Stake 

in 

MW % MW % MW % 

Lignite 

Frimmersdorf RWE Power 1959-1970 1,625 100.0 1,625 100.0 1,625 

Neurath RWE Power 1972-1976 2,065 100.0 2,065 100.0 2,065 

Niederaussem RWE Power 1963-1974 2,736 100.0 2,736 100.0 2,736 

Niederaussem (BoA1) RWE Power 2002 944 100.0 944 100.0 944 

Goldenberg RWE Power 1992, 1993 151 100.0 151 100.0 151 

Weisweiler RWE Power 1955-1975 2,054 100.0 2,054 100.0 2,054 

Berrenrath RWE Power 1939, 1993 52 100.0 52 100.0 52 

Fortuna Nord RWE Power 54 100.0 54 100.0 54 

Wachtberg RWE Power 1959 118 100.0 118 100.0 118 

Total lignite 9,799 9,799 9,799 

Nuclear 

KKW Emsland RWE Power 1988 1,329 100.0 1,329 87.5 1,163 E.ON 12.5 

Gundremmingen B RWE Power 1984 1,284 100.0 1,284 75.0 963 E.ON 25.0 

Gundremmingen C RWE Power 1984 1,288 100.0 1,288 75.0 966 E.ON 25.0 

Total nuclear 3,901 3,901 3,092 

Hard coal 

Gersteinwerk Werne Kv2 RWE Power 1984 608 100.0 608 100.0 608 

GW Bergkamen A RWE Power 1981 717 100.0 717 100.0 717 Steag 49.0 

Ibbenbüren RWE Power 1985 794 100.0 794 100.0 794 

WestfalenA-C RWE Power 1963, 1969 588 100.0 588 100.0 588 

VSE Unit 1 

VSE 

1963 

106 100.0 106 69.0 73 Various shareholders 

31.0 

VSE Unit 3 

VSE 

1972 

283 100.0 283 0 0 Various shareholders 

31.0 

Bedzin Poland EnviaM 1975 78 100.0 78 100.0 54 Various shareholders 30.4 

Total hard coal 3.174 3.174 2.834 


158



RWE’s Germany Division’s power plant portfolio 1 (II) 


(Germany 

unless 

stated) 

Operating 

company 

Commissioned Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Gas 

Emsland B, C, D RWE Power 1973, 1974, 2010 1,826 100.0 1,826 100.0 1,826 

Gersteinwerk F - I RWE Power 1973 1,285 100.0 1,285 100.0 1,285 

Gersteinwerk Werne Kv1 RWE Power 1984 112 100.0 112 100.0 112 

Weisweiler VGT G, H RWE Power 2006 544 100.0 544 100.0 544 

Bochum RWE Power 2004 21 100.0 21 100.0 21 

Dortmund RWE Power 2004 12 100.0 12 100.0 12 

GuD Dormagen RWE Power 2000 326 100.0 326 100.0 326 

GuD Dormagen RWE Power 2000 260 100.0 260 0.0 0 Bayer AG 100.0 

Huckingen RWE Power 1975, 1976 314 100.0 314 100.0 314 

Huckingen RWE Power 1975, 1976 292 100.0 292 0.0 0 Krupp-Mannesmann 100.0 

LEW Aviko LEW 2000 10 100.0 10 89.9 9 10.01 

Süwag Gas Süwag 8 100.0 8 79.0 6 Municipal shareholders 21.0 

enviaM (various) enviaM 1992-2001 352 various 215 various 229 Various shareholders Various 

RWN (various) RWE RWN 1986-2009 2 100.0 2 100.0 2 

RWE Vertrieb (various) 

RWE Vertrieb 1999-2011 

2 100.0 2 100.0 2 

Kevag (various) Kevag 2002-2011 0 100.0 0 58.0 0 43.0 

Total gas 5,365 5,228 4,687 

Oil 

Großkayna enviaM 1994 119 100.0 119 100.0 119 

Sermuth enviaM 1995 17 100.0 17 100.0 17 

Peissenberg (gas, oil) LEW 1987, 1990 11 100.0 11 50.0 6 E.ON 50.0 

Total oil 147 147 141 



159



RWE’s Germany Division’s power plant portfolio 1 (III) 


(Germany 


Operating 

company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Renewables wind (onshore) 

enviaM (various sites) enviaM 22 100.0 22 100.0 22 

Windpark Westerwald (KEVAG) KEVAG 15 100.0 15 100.0 15 Various shareholders 42.5 

Windpark Westerwald (GmbH) KEVAG 3 100.0 3 100.0 3 Various shareholders 68.7 

Total renewables wind 40 40 40 

Renewables run-of-river 

KW Laufwasser (various sites) RWE Power 12 100.0 12 100.0 12 

Palzem Luxembourg RWE Power 5 100.0 5 50.0 2 State contract with Luxemb. 50.0 

LEW Water LEW 169 Various 157 Various 104 Various shareholders 

SÜWAG Water 

Süwag 

17 100.0 17 78.8 12 Municipal shareholders 

22.4 

RWW GmbH 

RWE RWN 1928 

5 100.0 5 100.0 5 

enviaM Water 

enviaM 

10 100.0 10 100.0 10 

Kevag Water 

Kevag 

0 100.0 0 58.0 0 

42.5 

Pleußmühle 

RWE RWN 1992 

0 100.0 0 100.0 0 Stadt Düren 

25.1 

Total renewables run-of-river 218 206 145 

Renewables other 

Malchin (biomass oil) enviaM 2003 11 100.0 11 100.0 11 

Bernkastel (Solar) 


0 100.0 0 100.0 0 

Landfill gas (various sites Various 1 Various 1 Various 1 Various 

Biogas (various sites) enviaM 2007-2011 4 100.0 4 100.0 4 

Biomass-fired thermal power 

station Neubrücke 

RWE RWN 2003 7 100.0 7 100.0 7 

Vegetable oil (various sites) Various 1 Various 1 Various 0 Various 

Solar (various sites) Various 6 Various 1 Various 2 

Biomethane RWE De. 2 100.0 2 100.0 0 

BHKW Schöllershamer (biogas) RWE RWN 2005 1 100.0 1 100.0 1 City of Düren 25.05 

1 Total Rounding renewables differences other may occur on the power plant list. 

33 28 26 



160



RWE’s Germany division’s power plant portfolio 1 (IV) 


(Germany 


Operating 

company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Other 

MHKW Karnap RWE Power 1987 38 100.0 38 100.0 38 

MVA Weisweiler RWE Power 1996 24 100.0 24 100.0 24 

Köpchenwerk (pumped storage) RWE Power 1989 153 100.0 153 100.0 153 

SRS Ecotherm RWE Power 2003 1 100.0 1 100.0 1 

Total other 216 216 216 

Contractually secured plants 

STEAG (hard coal) RWE Power 3,028 0.0 3,028 100.0 3,0282 RuhrEnergie (hard coal) RWE Power 1,986 0.0 1,986 100.0 1,9862 SaarEnergie (hard coal) RWE Power 811 0.0 811 100.0 8112 Other hard coal RWE Power 557 0.0 557 100.0 557 2 

Neckar (run-of-river) RWE Power 29 0.0 29 100.0 292 Rhein-Main-Donau (run-of-river) RWE Power 10 0.0 10 100.0 102 Kaunertal (pumped storage) Austria RWE Power 160 0.0 160 100.0 1602 Schluchsee (pumped storage) RWE Power 870 0.0 870 100.0 8702 SEO Vianden (pumped storage) RWE Power 1,096 0.0 1,096 100.0 1,0962 BHKW Bioenergie Bottwartal Süwag 2009 1 0.0 1 100.0 12 Bioenergie Bottwartal 100.0 

Total contractually secured plants 8,547 8,547 8,547 

Total capacity of the Germany Division 31,440 31,286 29,528 



161



RWE’s Netherlands/Belgium division’s power plant 

portfolio 1 (I) 


(Netherlands 


Operating 

company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Hard coal 

Amercentrale ST 8 Essent 1980 515 100.0 515 100.0 515 

Amercentrale ST 9 Essent 1993 401 100.0 401 100.0 401 

Total hard coal 916 916 916 

Gas 

Amercentrale AC21 Essent 1972 15 100.0 15 100.0 15 

Donge CC Essent 1976 121 100.0 121 100.0 121 

ELES Essent 83 100.0 83 100.0 83 

Eindhoven Philipps GT Essent 1995 52 100.0 52 100.0 52 

Enschede Cogen Essent 1985 58 100.0 58 100.0 58 

Erica CC 1&2 Essent 1996 63 100.0 63 100.0 63 

Helmond GT 1 Essent 1982 25 100.0 25 100.0 25 

Helmond GT2 Essent 1988 25 100.0 25 100.0 25 

Inesco (Antwerp) Belgium Essent 2007 133 100.0 133 100.0 133 

Klazienaveen CC 1&2 Essent 1996 63 100.0 63 100.0 63 

Moerdijk Essent 1996 339 100.0 339 100.0 339 

Philip Morris 1 (Bergen op Zoom) Essent 1995 33 100.0 33 100.0 33 

s‘Hertogenbosch (Den Bosch) Essent 1994 33 100.0 33 100.0 33 

Swentibold CC Essent 1999 245 100.0 245 100.0 245 

Clauscentrale A Essent 1977 610 100.0 610 100.0 610 

Total gas 1,897 1,897 1,897 


Linne HH 1-4 (hydro run-of-river) Essent 1989 11 100.0 11 100.0 11 

Total run-of-river 11 11 11 



162



RWE’s Netherlands/Belgium division’s power plant 

portfolio 1 (II) 


(Netherlands 


Contracted plants 

EPZ (nuclear) 

EPZ (hard coal) 

EPZ (wind) 

Total contracted plants 

Operating 

company 

Essent 

Essent 

Essent 

Commissioned 

1973 

1986 

2004 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 



Cuijk Essent 1999 25 100.0 25 100.0 25 

Amercentrale ST8 Essent 1980 96 100.0 96 100.0 96 

Amercentrale ST9 Essent 1993 199 100.0 199 100.0 199 

Total renewables other 320 320 320 

Cogeneration (gas) 

Delesto 1 Essent 1987 180 0.0 0 50.0 90 Akzo Nobel 

Delesto 2 Essent 1998 350 0.0 0 50.0 175 Akzo Nobel 

Desco (Dupont) Essent 1997 39 0.0 0 33.0 13 Dupont 

Elsta CC Essent 1998 469 0.0 0 25.0 117 AES, Delta 

Hunzestroom Essent 1996 25 0.0 0 50.0 13 AveBe 

Dobbestroom Essent 1996 35 0.0 0 50.0 18 AveBe 

Total cogeneration (dispatch rights) 2 1,098 0 425 

Total capacity of the Netherlands/Belgium Division 4,045 3,144 3,414 


485 

404 

12 

901 

0.0 

0.0 

0.0 

0 

0 

0 

0 

30.0 

30.0 

30.0 

146 Delta 

121 Delta 

4 

270 

Delta 


70.0 

70.0 

70.0 

163



RWE’s UK division’s power plant portfolio 1 


(UK unless 

stated) 


Tilbury B (biomass) 

Total renewables other 

Operating 

company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Hard coal 

Aberthaw B RWE npower 1971-1979 1,554 100.0 1,554 100.0 1,554 

Didcot A RWE npower 1972-1975 1,958 100.0 1,958 100.0 1,958 

Total hard coal 3,512 3,512 3,512 

Gas 

Great Yarmouth RWE npower 2001 380 100.0 380 100.0 380 

Little Barford RWE npower 1994 635 100.0 635 100.0 635 

Didcot B RWE npower 1996-1997 1,420 100.0 1,420 100.0 1,420 

Staythorpe RWE npower 2010 1,728 100.0 1,728 100.0 1,728 

Total gas 4,163 4,163 4,163 

Cogeneration (gas) 

Phillips Petroleum RWE npower 1999 55 100.0 55 100.0 55 

Bridgewater Paper RWE npower 2000 58 100.0 58 100.0 58 

BASF RWE npower 1997 81 100.0 81 100.0 81 

Aylesford Newsprint RWE npower 1994 99 100.0 99 100.0 99 

Whitegate Ireland RWE npower 1998 6 100.0 6 100.0 6 

Dow Coming RWE npower 1998 27 100.0 27 100.0 27 

Huntsman Tioxide RWE npower 2003 15 100.0 15 100.0 15 

Hythe RWE npower 2005 53 100.0 53 100.0 53 

Total cogeneration (gas) 394 394 394 

Oil 

Littlebrook D RWE npower 1982-84 1,140 100.0 1,140 100.0 1,140 

Fawley RWE npower 1969-70 968 100.0 968 100.0 968 

OCGTs (gas oil, various sites) RWE npower 549 100.0 549 100.0 549 

Total oil 2,657 2,657 2,657 


Total capacity of the UK Division 11,468 11,468 11,468 

2011 

742 

742 


100.0 

742 

742 

100.0 

100.0 

742 

742 


164



RWE’s Central Eastern and South Eastern Europe 

division's plant portfolio 1 

Power plant Country Operating 

company 

Hard coal 

TE Plomin 2 

Total hard coal 

Croatia 

TE Plomin d.o.o. 

Commissioned 

2000 

192 

192 

0.0 

0 

0 

0.0 

0 

0 

HEP d.d. 

Lignite 

Mátra Hungary Mátra 1967 763 100.0 763 51.0 389 EnBW, MVM 49.0 

Total lignite 763 763 389 

Gas 

Mátra Hungary Mátra 2007 60 100.0 60 51.0 31 EnBW, MVM 49.0 

Sinergy (various sites) Hungary Sinergy 2000-2005 127 Various 87 Various 96 

Total gas 187 147 127 


ÉMÁSZ Hungary 2007 1 100.0 1 100.0 1 

Total renewables run-of-river 1 1 1 

Total CEE Division 1,143 911 517 


Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 



50.0 

165



RWE’s Renewables division’s generation portfolio 1 (I) 


company 

Commissioned 

Net 

capacity 


consolidation 

stake 

Renewables wind (onshore unless stated) 

RWE Innogy wind (various sites) Germany RWE Innogy Various 455 Various 450 Various 448 

RWE Innogy (various sites) Netherlands RWE Innogy 1987-2009 201 100.0 201 100.0 201 

Kirkby Moor UK RWE Innogy 1993 5 0.0 5 100.0 5 

An Suidhe 

UK 

RWE Innogy 2010 

19 100.0 19 100.0 19 

49 

Lindhurst 

UK 


9 100.0 

9 100.0 9 

2 3 66.7 

Taff Ely UK RWE Innogy 1993 9 0.0 9 100.0 9 2 3 66.7 

Bryn Titli UK RWE Innogy 1994 10 0.0 10 100.0 10 2 3 66.7 

Carno UK RWE Innogy 1996 34 0.0 0 0.00 0 3 66.7 

Trysglwyn UK RWE Innogy 1996 6 0.0 0 0.00 0 3 66.7 

Windy Standard UK RWE Innogy 1996 22 0.0 0 0.00 0 3 66.7 

Llyn Alaw UK RWE Innogy 1997 20 0.0 0 0.00 0 3 66.7 

Novar UK RWE Innogy 1997 17 0.0 0 0.00 0 3 66.7 

Mynydd Gorddu UK RWE Innogy 1998 10 0.0 0 0.00 0 3 66.7 

Beinn Ghlas UK RWE Innogy 1999 8 0.0 0 0.00 0 3 66.7 

Lambrigg UK RWE Innogy 2000 7 0.0 0 0.00 0 3 66.7 

Bears Down UK RWE Innogy 2001 10 0.0 0 0.00 0 3 66.7 

Tow Law UK RWE Innogy 2001 2 0.0 0 0.00 0 3 66.7 

Causeymire UK RWE Innogy 2004 48 0.0 48 100.0 48 2 3 66.7 

Farr UK RWE Innogy 2006 92 0.0 92 100.0 92 2 3 66.7 

Ffynnon Oer UK RWE Innogy 2006 32 0.0 32 100.0 32 2 3 66.7 

North Hoyle (offshore) UK RWE Innogy 2003 60 0.0 60 100.0 60 2 3 MW % MW % MW % 

66.7 

Hameldon Hill UK RWE Innogy 2007 5 100.0 5 100.0 5 

Burgar Hill UK RWE Innogy 2007 5 100.0 5 100.0 5 

Knabs Ridge UK RWE Innogy 2008 16 100.0 16 100.0 16 

Bilbster UK RWE Innogy 2008 4 100.0 4 100.0 4 

The Hollies UK RWE Innogy 2008 3 100.0 3 100.0 3 

Rhyl Flats (offshore) UK RWE Innogy 2009 90 100.0 90 100.0 90 

Little Cheyne Court UK RWE Innogy 2009 60 100.0 60 100.0 60 

Lochelbank UK RWE Innogy 2011 10 100.0 10 100.0 10 


2 Capacities of power plants not owned by RWE, but that RWE can deploy at its discretion on the basis of long-term agreements. 

3 M&G Investment Management Limited, JPMorgan Investment Management Inc. 


economic 

stake 

Partner Stake 

in 


166



RWE’s Renewables division’s generation portfolio 1 (II) 


company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 


Renewables wind (onshore unless stated) 

Hellrigg 

UK 


9 100.0 

9 100.0 

9 

Sirigo 

Portugal RWE Innogy 2005 

4 0.0 

0 32,3 

1 

67.7 

Bulgueira 


2 0.0 

0 39.4 

1 

60.6 

Guilhado 


2 0.0 

0 39.4 

1 

60.6 

Thornton Bank (offshore) Belgium RWE Innogy 2009 31 0.0 0 26.7 8 73.3 

Acampo Amijo Spain RWE Innogy 2002 18 100.0 18 100.0 18 

EE de Muel Spain RWE Innogy 1998 16 100.0 16 100.0 16 5 

Grisel I Spain RWE Innogy 2001 14 100.0 14 100.0 14 

Grisel II Spain RWE Innogy 2005 3 100.0 3 100.0 3 

Los Labrados Spain RWE Innogy 2002 24 100.0 24 100.0 24 

Plana de la Balsa Spain RWE Innogy 2002 24 100.0 24 100.0 24 

Plana de Zaragoza Spain RWE Innogy 2002 24 100.0 24 100.0 24 

Danta Spain RWE Innogy 2004 129 100.0 129 100.0 128 1.3 

Aldehuelas Spain RWE Innogy 2005 47 100.0 47 45.1 45 5 

Bosque Alto Spain RWE Innogy 2002 22 100.0 22 100.0 22 

Plana Maria Spain RWE Innogy 2002 24 100.0 24 100.0 24 

Rio Gallego Spain RWE Innogy 2003 39 100.0 39 100.0 39 

Lanternoso Spain RWE Innogy 2005 24 100.0 24 100.0 24 

Bancal Spain RWE Innogy 2007 21 100.0 21 100.0 21 

Siglos Spain RWE Innogy 2007 18 100.0 18 100.0 18 

Suwalki Poland RWE Innogy 2009 41 100.0 41 100.0 41 

Piecki Poland RWE Innogy 2010 32 100.0 32 51.0 16 49 

Tychowo Poland RWE Innogy 2010 35 100.0 35 100.0 35 

San Basilio Italy RWE Innogy 2010 25 100.0 25 51.0 13 49 

Uriri 

Italy 


26 100.0 26 51.0 13 

49 

Anzi Italy RWE Innogy 2011 16 100.0 16 51.0 8 49 

Total renewables wind 1,931 1,758 1,714 



167



RWE’s Renewables division’s power plant portfolio 1 (III) 


company 

Commissioned 

Lignite 

HKW Nachod Czech Rep. RWE Innogy 1970/1950 17 100.0 17 100.0 17 

HKW Albrechtice Czech Rep. RWE Innogy 2006 2 100.0 2 100.0 2 

Total lignite 19 19 19 

Hard coal 

HKW Schöneweide Germany RWE Innogy 1992 10 100.0 10 100.0 10 

Total hard coal 10 10 10 

Gas 

Heidelberg Germany RWE Innogy 2002 14 100.0 14 100.0 14 

Various 

RWE Innogy 1992-2002 

30 100.0 30 100.0 30 

BHKW Pribor Czech Rep. RWE Innogy 1999 0 100.0 0 100.0 0 

HKW Breclav Czech Rep. RWE Innogy 2001 1 100.0 1 100.0 1 

Total gas 44 44 44 

Renewables hydro run-of-river 

Saarwasser RWE Innogy 32 100.0 32 100.0 32 

RADAG (various) RWE Innogy 100 100.0 100 78.0 78 RADAG 22.0 

RWE Innogy run-of-river 

(various sites) 

RWE Innogy 244 100.0 244 100.0 244 

npower Renewables 

(various sites) 

RWE Innogy 69 100.0 69 100.0 69 

Energies France (various sites) France RWE Innogy 1958-1989 45 100.0 45 100.0 45 

AERSA (various sites) Spain RWE Innogy 1998-2000 7 100.0 7 100.0 7 

Villalgordo (AERSO) Spain RWE Innogy 1998 6 100.0 6 60.0 

Gruforsa, Sauces 

3 

Treinta, Rússula 

40.0 

INVESTERG (various sites) Portugal RWE Innogy 1996-2004 16 100.0 16 82.4 13 18.6 

Ribadouro (INVESTERG) Portugal RWE innogy 1993 3 0.0 0 32.3 1 67.7 

Vales (INVESTERG) Portugal RWE Innogy 2008 3 0.0 0 39.4 1 60.6 

Total renewables hydro run-of-river 525 519 494 


Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 



168



RWE’s Renewables division’s power plant portfolio 1 (IV) 


company 

Commissioned 

Net 

capacity 


consolidation 

stake 


economic 

stake 

Partner Stake 

in 



Solar (various sites) RWE Innogy 52 Various 1 Various 1 

Kehl (biomass wood) Germany RWE Innogy 2003 9 100.0 9 51.0 4 August Koehler AG 49.0 

Kehl II (biomass wood) 

Germany RWE Innogy 2011 

3 100.0 3 51.0 1 

49.0 

Bergkamen (biomass wood) Germany RWE Innogy 2006 20 100.0 20 100.0 20 August Koehler AG 

Berlin-Neukölln (biomass wood) Germany RWE Innogy 2005 20 100.0 20 100.0 20 

RWE Innogy (landfill gas) Germany RWE Innogy 1 100.0 0.5 100.0 1 

BMHKW Wittgenstein Germany RWE Innogy 2010 5 100.0 5 100.0 5 66.7 

Total renewables other 109 58 53 

Contractually secured plants 

AEW, Klingnau Switzerland RWE Innogy 37 0.0 23 62.5 23 2 

Totally contractually secured plants 37 23 23 

Totally renewable energies 2,681 2,430 2,356 

Total RWE Group 50,777 49,239 47,283 

1 As of 31 December 2011; rounding differences may occur. 

2 Capacities of power plants not owned by RWE, but that RWE can deploy at its discretion on the basis of long-term agreements. 


169



RWE’s major power plants in Germany 

Natural Gas 

Power plant 

Thermal power plant 

Gas and steam 

Waste gas recycling 

Lignite 

Opencast pit 

Power plant 

Factory 

Hard Coal 

Power plant 

Nuclear Power 

Nuclear power plants 

Other 

Hydropower 

Refuse incineration 


170



RWE npower’s major power plants in the UK 

Gas 

Coal 

CCGT 1 

Oil/Gas 

Biomass 

Pembroke 2,188 MW 

Didcot A 1,958 MW 

Aberthaw B 1,554 MW 

Didcot B 1,420 MW 

Fawley 968 MW 

1 CCGT: Combined-Cycle Gas Turbine. 

Staythorpe 1,728 MW 

Great Yarmouth 380 MW 

Little Barford 635 MW 

Littlebrook D 1,140 MW 

Tilbury B 742 MW 


171



Essent’s major power plants in the Netherlands 

Existing power plants and new builds of Essent 

Name: Moerdijk I 

Place: Moerdijk 

Fuel: Gas 

Capacity: 339 MW 

Year of commission: 1996 

Name: Moerdijk II 

Place: Moerdijk 

Fuel: Gas 


Year of commission: 2012 

Name: Amercentrale 

Place: Geertruidenberg 

Fuel: Coal, gas, biomass 

Capacity: 1,226 MW 

Year of commission: 

1972-1993 

Name: Swentibold 

Place: Geleen 

Fuel: Gas 



Name: Eemshaven 

Place: Eemshaven 

Fuel: Coal/Biomass 



Name: Mid-sized units 

Place: Enschede, Helmond, etc. 

Fuel: Gas 

Capacity: various 

Year of commission: 1982-2007 

Name: Bio-centrale Cuijk 

Place: Cuijk 

Fuel: Biomass 



Name: Claus C 

Place: Maasbracht 

Fuel: Gas 


Year of commission: 2012 

Name: Claus A 

Place: Maasbracht 

Fuel: Gas 




172



Age structure of RWE’s German power plants in 2012 

Hard coal (8 GW) 1 Lignite (9.6 GW) Gas/Oil (5.5 GW) Nuclear (3.1 GW) 

Age (years) MW Age (years) MW Age (years) 

0 1.000 2.000 3.000 0 1.000 2.000 3.000 0 1.000 

>50 

>50 

>50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

1 

2 

~40% older than 

current average 

Existing RWE power plants 

New build projects 

Source: RWE. 

45 

40 

35 

30 

25 

20 

15 

10 

5 

1 

4 

3 

45 

40 

35 

30 

25 

20 

15 

10 

5 

1 

5 

2.000 

MW 

3.000 

Age (years) 

MW 

0 1.000 2.000 3.000 

>50 







Average age excl. new build projects 1 Incl. capacities contracted in long-term agreements. 

Average age incl. new build projects 2 Westfalen D&E (COD 2013) 

3 BoA 2&3 

4 BoA 1 

5 CCGT Lingen 

45 

40 

35 

30 

25 

20 

15 

10 

5 

1 


173



Overview of technologies in RWE Innogy’s main focus 

Criteria 

Maturity of 

technology 

Markets 

Specialities 

Size of projects 

(capacity) 

Approx. load 

factor 

Wind offshore Wind onshore Biomass Hydro 

> Pioneer phase 

> Industry is making 

substantial progress 

> UK: growing 

> Germany, Netherlands, 

Belgium: emerging 

> Partnerships share risk 

and expertise 

> Large (500 – 1,000 MW) 

> Mature 

> CE/SE: stable 

> EE: growing 

> SEE: emerging 

> Partly fragmented 

markets 

> Small to medium 

(20 – 200 MW) 

> Mature 

> Germany, UK, Italy 

> Benelux: emerging 

> USA: growing (upstream 

pellets) 

> Market for fuel supply 

> Sustainability 

> Small to medium 

(5 – 80 MW) 

> 100k – 750k ton/a pellet 

plant 

> Very mature 

> CE/SE: mature 

> SEE: growing, 

significant potential 

> Large scale hydro 

limited to few 

countries in Europe 

> Long run times 

> Average size >1 MW 

and all types 

35 – 40% 25 – 30% 80% 

50% 


174



New applications on their path to commercialisation 

Criteria 

Maturity of 

technology 

Markets 

Specialities 

Size of projects 

(capacity) 

Approx. load 

factor 

Solar thermal Biogas Marine energy Photovoltaic 

> Solar Thermal: maturing 

> Spain, Italy, Greece, 

Turkey: growing 

> North Africa: potential 

> Storage systems 

> Small to medium: 

20 – 150 MW 

> Core technology: 

developing 

> Feed-into the gas grid: 

maturing 

> Germany: growing, 

strong targets by 

government 

> Feedstock dependency 

> Feed-in into the grid 

New Applications 

> Small assets: 

demonstration phase 

> Large assets: 

commercial operation 

(similar to offshore wind) 

> UK and France: 

emerging 

> Locations for Tidal 

Stream are available 

> Tidal: predictable power 

generation 

> Small: 5 – 50 MW > Small: < 30 MW 

> Large: >> 100 MW 

57% 90% 25 – 35% 

> Core technology: mature 

> Need to develop smart 

PV and grid integration 

> Germany: growing in 

customer related smart 

PV plants 

> Mediterranean countries: 

growing 

> Capacity freely scalable 

> Small to large: 

1 kW >> 100 MW 

Germany: 8 – 12%, 

Spain and Southern Italy: 

20 – 25% 


175



Lignite-fired power generation: 

Higher efficiency, less CO 2 , more flexibility 

Thermal efficiency 

% 

60 

50 

40 

30 

20 

10 

1957 

Frimmersdorf: 

150 MW 

η = 30.8 

1966 

Frimmersdorf: 

300 MW 

η = 31.4 

1970 

Niederaußem: 

300 MW 

η = 35.8 

1975 

Weisweiler: 

600 

MW 

η = 

36.6 

2003 

Niederaußem: 

BoA 1 

1,000 MW 

η > 43 

2010 

Neurath: 

BoA 2&3 

1,100 MW 

η > 43 

BoA plus 

1,100 MW 

η > 45 

far after 

2020 

700 °C- 

BoAplus 

1,100 MW 

η≈50 

0 

1957 1972 1987 2003 2010 2020 2030 

Flexibility 

MW 

1.100 

1.000 

800 

600 

400 

200 

0 

Combined-Cycle Power Plant Lingen 

Max. capacity ~ 2x440 MW 

Min. capacity ~ 520 1/260 2 MW 

Max. change rate of load +/- 32 MW/min 

BoA 1 to 3 

0 5 10 15 20 25 

1 Two boilers in operation. 

2 One boiler in operation. 

BoA plus 

Max. capacity ~ 2x550 MW 

Min. capacity ~ 350 1/175 2 MW 


Max. capacity ~ 1,000 MW 

Min. capacity ~ 500 MW 



Min.capacity 2 

Min.capacity 2 

30 

Minutes 

176



RWE’s lignite production in the Rhenish mining region 

Million mt lignite 

120 

100 

80 

60 

40 

20 

0 

Frimmersdorf-Süd 

Fortuna-Garsdorf 

Frimmersdorf-West 

Frechen Bergheim 

Inden Südrevier 

Zukunft-West 

Garzweiler I 

Garzweiler II 

Hambach I 

Inden I + II 

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 

10 11 9 9 5 4 3 3 3 3 3 

Position: May 2011. 

Actual values Mining capacity 

Number of mines 


177



RWE’s Rhenish lignite mining region 

Mine premises 

Former mine premises 

being restored 

Restored mine premises 

Water 

Lignite-fired power plants 

Coal processing plant 

Approved mining area 

As of January 2012. 

Inde 

Eschweiler 

A 44 

Weisweiler 

Jülich 

Tagebau 

Inden 

Rur 

A 46 

Garzweiler II 

A 44 

Sophienhöhe 

DB Köln - Aachen 

A 4 

Tagebau 

Garzweiler 

A 61 

Düren 

Bedburg 

Tagebau 

Hambach 

Hambachbahn 

A 540 

Erft 

A 46 

A 61 

Grevenbroich 

Frimmersdorf 

Neurath 

Nord - Süd - Bahn 

Bergheim 

B 477n 

A 4 

Niederaußem 

Fortuna-Nord 

Erft 

A 61 

Frechen 

A 1 

Wachtberg 

Hürth 

Ville/Berrenrath 

Goldenbergwerk 

Brühl 

Köln 

Cologne 


Rhein 

A 555 

178



RWE’s emissions profile 

RWE’s in-house power generation in 2011 

Billion kWh 1 

Lignite 74.1 

Hard coal 47.8 

Nuclear 34.3 

Gas 38.5 

Renewables 

Pumped storage, 

8.8 

oil, other 2.2 

Total: 

205.7 

RWE’s CO 2 emissions in 2011 

Million metric tons of CO 2 2 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

161.9 

116.6 

45.3 

CO2 emissions CO2 Free allocation Shortage Shortage of CO2 emissions of CO2 certificates certificates 

1 Including electricity procured from power plants not owned by RWE that we can deploy at our discretion on the basis of long-term 

agreements, amounting to 22.9 billion kWh, of which 20.8 billion kWh are from hard coal. 

2 Includes power stations not owned by RWE that we can deploy at our discretion on the basis of long-term agreements. 

In 2011, they produced 20.4 million metric tons of CO2 and were allocated certificates for 18.9 million metric tons. 


179



RWE Power’s nuclear power plant decommissioning 

concept (I) 

35 – 40% 

share of costs 

Decommissioning 

Post operational phase 

Nuclear dismantling 

(immediate, deferred) 

Conventional 

dismantling/ 

demolition 

5 – 7 years 10 – 15 years 2 – 3 years 

> Power production has ceased 

> In some cases, technical 

infrastructure needs to be 

operated for an additional period 

> For the time being, fuel 

elements are being cooled in 

pond storage facilities until they 

are suitable for dry-cask 

(CASTOR) storage on site 

> Systems no longer need to be 

shut down 

> Treatment of operating 

materials and waste 

About 50% 


> Dismantling of contaminated and activated 

systems, structures and components 

> Materials and waste management (treatment, 

conditioning, packaging) 

10 – 15% 


Final disposal 

> Conventional > Final disposal of 

demolishing of decommissioning waste 

buildings/components 

which fall no longer 

under the German 

Nuclear Energy Act 

(AtG). 


180



RWE Power’s nuclear power plant decommissioning 

concept (II) 

35 – 40% 


Explanation of the post operational phase: 

About 50% 


Decommissioning 

Post operational phase 

Nuclear dismantling 

(immediate, deferred) 

Conventional 

dismantling/ 

demolition 

5 – 7 years 10 – 15 years 2 – 3 years 

10 – 15% 


Final disposal 

> To roughly estimate the expenses of an NPP post-closure, there are several phases that need to be taken into 

account. The first phase, called post-operational period, encompasses 5-7 years after closure. Directly after closure, 

the fuel rods are moved from the reactor to the spent-fuel pool for further cooling. During approx. five years fuel rods 

will be transferred to steel casks (“CASTOR”) and moved from containment to an interim storage facility. 

> As soon as the NPP is fuel-free, fixed costs can be reduced further. Hence, there is an ongoing need for inspection 

and (external) review (“TÜV”). 

> Please note that this refers only to the service operating cost in the post operational phase and doesn’t include any 

dismantling/demolition costs. 

> Costs are booked against provisions; they do not have an effect on the profit and loss statement. 


181



Nuclear provisions 

1 

2 

3 

4 

Provisions for uncertain liabilities as per IAS 37 

Public-law liabilities under Sec. 9a of the Germany Nuclear Energy Act 

Provisions are made for RWE fiscal year 2011: € 10,366 million 

> Disposal of spent nuclear fuel assemblies € 4,658 million 

Flasks, transport, conditioning, intermediate and final storage 

> Decommissioning of nuclear power plants € 4,964 million 

Post-operation phase, dismantling, removal, final storage 

> Disposal of radioactive operating waste (e.g. cleaning cloths, oils, resins) € 744 million 

Conditioning, flasks, intermediate and final storage 

Inflation of current cost to the assumed disposal date by a set inflation rate; 

then discounting of the result back to today (discount rate 5.0%) 


182



How the size of the provision is determined 

€ million 

Schematic description 

1 

Total 

cost at 

the 

cut-off 

date 

Annual interest accretion 

Provisions 

IFRS 

2010 2010 2011 2012 

4 

2 

Escalation rate 

(specific cost increase) 

3 

Discount rate 

(discount to net 

present value) 

Amount 

payable 

20.. 


t 

183



RWE’s hard coal purchases by country of origin 

in 2011 1 

Russia 19.2% 

Colombia 42.6% 

UK 15.6% 

Poland 2.9% 

USA 4.9% 

South Africa 3.9% 

Germany 10.9% 

Total: 

9.6 million 

metric tons 

1 Data of RWE npower refer to purchase of hard coal, the rest refer to hard coal usage. 



184



RWE’s use of fuels in proprietary power plants (I) 

Use of hard coal 

Million metric tons 

16 

12 

8 

4 

0 

15.2 


12.9 

12.1 

9.6 

11.5 

9.6 

9,6 

2006 2007 2008 2009 2010 2011 

Use of lignite 

Million metric tons 

125 

100 

75 

50 

25 

0 

96.3 

100.1 

95.4 

92.3 

90.5 

95.0 

2006 2007 2008 2009 2010 2011 

Use of natural gas 

Billion cubic metres 

9.0 9 

7,5 7.5 

6.0 6 

4,5 4.5 

3.0 3 

1,5 1.5 

0 

4.6 

6.6 

6.8 

6.1 

8.9 

2006 2007 2008 2009 2010 2011 


8.2 

185



RWE’s use of fuels in proprietary power plants (II) 

Use of nuclear fuel 1 

Metric tons 

150 

120 

90 

60 

30 

0 

114 

74 

119 

74 

109 

77 

2006 2007 2008 2009 2010 2011 

1 Prior-year figures adjusted due to new definition. 


Use of biomass 

Metric tons 

3 

2 

1 

0 

0.7 

0.9 

1.1 

1.6 

2.3 

3.0 

2006 2007 2008 2009 2010 2011 


186



RWE Supply & Trading acts as the interface between the 

RWE Group and global wholesale energy markets 

Embedded lignite supply 

RWE’s 

generating companies 

> Investment decisions 

> Technical optimisation 

to increase value of 

assets 

> Operation and 

maintenance of 

generation assets 

Transfer of 

commercial 

responsibility 

Power Gas 

Emission 

Oil Coal Freight Weather 

Biomass 

certificates 

> Face to the wholesale market 

> Proprietary trading activities 

RWE Supply & Trading 

1. Trading 

Sale of fuels and emission certificates Sale of power 

2. Commercial Asset Optimisation 

> Commercial optimisation of assets, fuel supply and asset hedging 

on behalf of generating companies 

> Asset-backed trading activities 

> Reserve & balancing, ancillary services, face to TSOs1 Sale of power and gas 

Options and emission certificates 

3. Sales & Origination 

> Physical and financial customer business, principal investments, 

complex illiquid transactions and services 

> Internal/external back-to-back procurement 

1 TSO = Transmission system operator. 

Sale of power 

and gas 

Sale of 

power, gas, 

emission 

certificates 


Retail, small/medium 

sized industrials, 

municipals 

Sale of power and 

gas to end customers 

RWE’s 

sales companies 

> Sale to customers 

(power, gas) 

> Back-to-back 

procurement 

> Lock-in sales margin 

> Bear volume and 

credit risk 

Industrial customers 

187



RWE Supply & Trading: trading volumes in 2011 

Electricity billion kWh 1,435 

Gas billion m 3 753 

Oil million bbl 618 

CO 2 

million 

certificates 

RWE Supply & Trading (Essen, Germany), is a leading European energy trading house for all commodities, 

in both their physical and/or derivative forms. 

As one of Europe’s strongest competitors in the gas industry, we optimise RWE’s entire non-regulated 

gas business. 

Our headquarters boast Europe’s largest energy trading floor, complementing additional sites in Europe, 

the Middle East, Asia and the Americas. 


644 

188



RWE’s German electricity network (2011) 

RWE network regions 

in Germany 

Dortmund 

Gelsenkirchen 

Essen 

Koblenz 

Saarbruecken 

Osnabrueck 

Frankfurt am Main 

Stuttgart 

Ludwigsburg 

Halle 

Munich 

Leipzig 

Dresden 

Chemnitz 

Length 

in km 

Circuit length of 342,000 km, with 

89,900 substations/transformers 

German 

market 1 

RWE 2 

Transport 

(extra high voltage (380/220 kV)) 

Distribution 

34,750 0 

high voltage (110 kV) 78,250 25,000 

medium voltage (≤ 60 kV) 512,000 96,000 

low voltage (≤ 1 kV) 1,200,000 221,000 

Total 1,790,250 342,000 

1 Preliminary figures. Source: BDEW. 

2 12/2011 figures. Source: RWE Deutschland AG. 


189



RWE’s share in European electricity supply markets 

(2011) 

% 

40 

30 

20 

10 

0 

15 

24 

12 

31 

14 

Germany Netherlands UK Hungary Slovakia Austria Poland Belgium Czech Rep. 

1 Including minority interests ≥ 20%. 

1 

8 

1 

5 


3 

2 

190



RWE’s electricity customers 1 by country 


Thousand 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

6,959 

2,169 

177 

3,935 

2,178 

Germany Netherlands Belgium UK Hungary Poland 


897 


191



RWE’s electricity sales volume by country in 2011 

Billion kWh 

Germany NL/BE UK Poland Hungary Others Total 

Residential and commercial 

customers 

25.8 10.7 17.4 3.0 5.5 0.2 62.6 

Industrial and corporate 

customers 

55.1 15.9 32.9 3.4 5.2 0.6 113.1 

Distributors 91.0 – – – 5.8 1.3 98.1 

Electricity trading 1 20.8 – – – – – 20.8 

Total 192.7 26.6 50.3 6.4 16.5 2.1 294.6 2 

1 Net of electricity purchased from third parties 

2 Difference between electricity production and electricity sales volume due to grid losses, own consumption of lignite production 

and pumped-storage power plants. 


192



RWE’s electricity sales by customer group in 2011 (I) 

Division: Germany Division: Netherlands/Belgium 

Distributors 51% 


corporate 

customers 27% Total: 

117.3 billion 

kWh 


commercial 

customers 22% 


commercial 

customers 51% 


corporate 

customers 49% Total: 

21.0 billion 

kWh 


193



RWE’s electricity sales by customer group in 2011 (II) 

Division: UK 


corporate 

customers 65% 


commercial 

customers 35% 

Total: 

50.3 bn kWh 

Division: Central Eastern and 

South Eastern Europe 



corporate 

customers 39% 


commercial 

customers 37% 

Total: 

23.7 bn kWh 


194



RWE SmartHome: Energy control for homes 

PC 

Control while 

not at home 

Smartphone 

‘Further details’ 

Internet, 

… 


Backend 

Encryption 

Configuration 

Authentication 

Certificates 

Database 

Wall transmitter 

Remote control 

Central 

control unit 

SmartHome 

HQ 

Smoke detector 

Motion detector 

Door/window sensor 

Control 

within the house 

PC 

Transmitter 1 Receiver 1 

Radiator thermostat 

Adapter plug 

Mobile access 

Virtual resident 

Sensors 1 Apps/ Services 

... allow energy savings, convenience & safety 

Information/control 1 Further devices to follow. 


195



RWE SmartHome: The link between different devices 

Photovoltaic 

Heating 

Entertainment 

Micro-CHP 

Energy efficiency 

Smart meter 

Intelligent linking possible 

Security 

SmartHome 

controller 

Health 

Heating 

Micro wind turbine 

Home automation 

White goods 


Electromobility 

196


Gas 

198 Upstream 

207 Storage 

209 Trading 

212 Downstream 


197


Gas – Upstream 

The upstream business value chain 

Licensing 

Exploration 

Development 

Production 

> Participation in bid rounds 

> Farm in 

> Seismic 

> Data processing 

> Drilling (dry wells) 

> Drilling 1 

> Engineering 

> Construction (field and infrastructure) 

> Operation 

> Transport 

> Sale 

1 Including capitalised exploration and appraisal wells. 

Actual licenses RWE Dea 96 thousand km 2 

Expenses 2011 RWE Dea 

Capex 2011 RWE Dea 

Production 2011 RWE Dea 

€ 123 million 

€ 687 million 

32 million boe 


198



Classification of reserves & resources 

Reserves 

Resources 

Commercial 

Subcommercial 

C1 

C2 

C3 

S1 

S2 

E1 

E2 

P90 

90% chance of exceeding 

the estimate 

1P 

Proved 

� C-Reserves � S-Resources 

Range of uncertainty 

P50 


the estimate 

2P 

Proved 

+ Probable 

P10 


the estimate 

3P 

Proved 

+ Probable 

+ Possible 

Low estimate Best estimate High estimate 

Low estimate Best estimate High estimate 

On production 

Under development 

Planned for development 

Discovered 

(contingent) 

Undiscovered 

(prospective) 


199



RWE Dea – reserves/resources 2011 (P50) 

Million barrel of oil equivalent – end-of-year status 

1,200 

1200 

1,000 

1000 

800 

800 

600 

600 

400 

400 

200 200 

993 

354 

639 

497 

Reserves = proved + probable. 

Resources = S1 + S2. 

1,018 

301 663 

298 

355 431 

196 179 

0 

2011 2013e 2015e 

Natural gas resources 

Crude oil resources 

Natural gas reserves 

Crude oil reserves 

477 

1,046 

615 

473 

182 

291 


200



RWE Dea’s asset resource contribution in 2011 (I) 

Discovered reserves + resources (C+S) 

(RWE Dea share/working interest) 

North Africa/ 

Middle East 60% 

Europe/CIS 1 25% 

Germany 15% 

1 CIS = Commonwealth of Independent States. 

2 boe = barrel of oil equivalent. 

Total: 

1,490 million 

boe 2 


201



RWE Dea’s asset reserve contribution in 2011 (II) 

Reserves (C) 

(RWE Dea share/working interest) 

North Africa/ 

Middle East 57% 

Germany 16% 

Europe/CIS 2 27% 


2 CIS = Commonwealth of Independent States. 

Total: 

843 million 

boe 1 


202



RWE Dea – gas and oil production target: increase of 

annual volume to 40 million boe 1 by 2014 

Annual gas/oil production (million boe 1 ) 

40 

20 

0 

2011 2014 

> The focus is organic growth by exploration and development of discovered resources, i.e. conversion 

of resources into reserves 

> RWE Dea is targeting to increase production to 40 million boe1 by 2014 through defined development projects 

> RWE Dea aims to double the production within this decade 


CAGR ~ 9% 

Gas 

Oil 


203



Investment in international & organic growth: 

RWE Dea’s capex plan per region 

€ million 

Capex 

Exploration 

expenses 

(P&L relevant) 

2011 Average p.a. 

2012 – 2016 

Germany 82 Approx. 100 

Gas: further production wells and compression 

facilities 

Oil: further production wells in Mittelplate offshore 

field 

Europe/CIS 1 437 Approx. 400 UK: Southern North Sea (e.g. Breagh) 

Norway: Barents Sea; Norwegian Sea 

Caspian Region: Exploration / New ventures 

North Africa 168 Approx. 400 Egypt: Disouq onshore development, 

offshore Nile Delta 

Libya, Algeria 

RWE Dea 687 Approx. 900 

Additionally approx. €150 million p.a. exploration expenses (G&G, dry holes) in 2012–16 

(not including successful exploration wells being capitalized) 

1 CIS = Commonwealth of Independent States (Soviet union succession states). 


204



Upstream Oil & Gas – overview of RWE Dea’s activities 

Ireland 

Mauretania 

UK 

Trinidad & Tobago 

Norway 

Denmark 

Germany 

Poland 

Algeria Libya Egypt 

Turkmenistan 

Exploration and production 

Exploration 

North Sea / Barents Sea 

> RWE Dea holds position in Norwegian gas and oil production 

and is increasing gas production in UK 

> Objectives: 

– Bring on stream new gas fields in UK 

– Mature and further develop discoveries in Norway 

– Further exploration 

Germany 

> Mature region 

> RWE Dea holds strong position in oil and gas production 

and gas storage 

> Objective: Stabilise production 

North Africa 

> High potential region 

> RWE Dea holds position in reserves in Egypt, Algeria and Libya 

> Objective: Boost gas field development in Egypt and Algeria 

CEE1 / Eastern NV2 > High potential region 

> RWE Dea holds licenses in Poland and Turkmenistan 

> Objective: Identify and assess projects in the Caspian Region 

to further establish an upstream position 

Trinidad / NV 

> High potential region 

> RWE Dea holds license in Trinidad 

> Objective: Carry on exploration work and build up further license 

positions 

1 Central and Eastern Europe. 

2 Eastern new ventures (e.g. Caspian Region). 


205



RWE Dea’s largest field developments 

West Nile Delta (Egypt) 

Disouq (Egypt) 2 

Breagh Phase 1 (GB) 

1 RWE‘s share in capex. 

2 Budget ‘doubling’ mainly due to rounding. 

3 Formerly ‘Luno’. 

4 Formerly ‘Jordbær’. 

RWE Capex 1 

share € billion 2012 2013 2014 2015 2016 2017 2018 

NA 40% 

WMDW 20% 

100% 

(Operator) 

70% 

(Operator) 

2.9 

0.2 

0.4 

Reggane (Algeria) 19,5% 0.4 

Edvard Grieg 3 (Norway) 20% 0.6 

Knarr 4 (Norway) 10% 0.2 

NC 193 / 195 (Libya) 

100% 

(Operator) 

0.5 

Production start 


206



RWE’s gas storage facilities: 14 facilities are in place 

or being expanded 

Kalle 

Epe 

Epe 

(formerly Essent) 

Xanten 

Staßfurt 

DEA 

SSO D 

SSO CZ 

NETHER- 

LANDS 

GERMANY 

CZECH 

REPUBLIC 

Háje 

Lobodice 

Třanovice 

Štramberk 

Tvrdonice 

Dolní Dunajovice 

Wolfersberg 

Breitbrunn/ 

Eggstätt 

Inzenham 


207



RWE’s existing gas storage capacity: 

A total of some 6.4 billion cubic meters 

SSO 


SSO 

Germany 


Dea 

Dolní Dunajovice 

Háje 

Lobodice 

Štramberk 

Třanovice 

Tvrdonice 

Epe H-gas 

Epe L-gas 

Kalle 

Staßfurt 

Xanten 

Breitbrunn/ Eggstätt 

Inzenham 

Wolfersberg 

Total 

Working gas volume 

(bcm) 

Maximum withdrawal 

rate (m 3 /h) 

2.676 1,675,000 

0.459 870,000 

0.533 400,000 

0.215 450,000 

0.353 550,000 

0.185 280,000 

1.080 520,000 

0.500 300,000 

0.365 240,000 

6.366 5,285,000 

Planned increase 

(bcm) 

+ up to 0.5 

+ up to 0.6 


208



RWE Supply & Trading: Full integration of RWE Group’s 

gas midstream and trading activities 

Traded markets 

Upstream 

producers 

RWE OPCOs 

(e.g. RWE Power, 

RWE npower) 

External & internal purchasing 

contracts and arrangements 

Consolidation, optimization and growth platform 

for RWE's unregulated gas midstream and 

trading business 

> Gas procurement for RWE’s Pan European 

sales operations 

> Gas procurement for RWE Power's power plants 

> Gas Portfolio Optimization 

> Commercial responsibility for all liquefied natural 

gas (LNG) activities 

> Gas transport, transit and storage optimization 

> Functional responsibility for gas trading 

> Optimization of RWE OPCOs positions 

(e.g. management of gas sales for RWE Dea) 

Sales contracts and arrangements 

Traded markets 

Downstream 

business in 

NW Europe (incl. 

RWE Vertrieb and 

Essent) & Central 

Eastern European 

markets 

RWE OPCOs 

(e.g. RWE Power, 

RWE npower) 


209



RWE’s long-term oil-indexed gas purchase portfolio 

bcm p.a. RWE’s long-term oil-indexed gas purchase portfolio at the end of the relevant year 

30 

Already achieved reduction of the oil-indexed share of RWE’s gas purchase portfolio 

25 

20 

15 

10 

5 

0 

contract reviews initiated 2011 

contract reviews initiated 2010 

2009 2012 2015 2018 2021 2024 2027 2030 2033 2036 

> RWE and Statoil have reached an agreement on the outstanding gas contracts including 

a gradual adjustment of the contract price towards the prevailing market conditions and 

compensation for the historic period since the start of the renegotiations 

> Including the settlement with Statoil in June 2012 we have renegotiated more than 50% of our 

oil-indexed contract volumes since 2009. We are still in the price review process with two gas 

suppliers with a total volume of approx. 11 bcm p.a. 


210



RWE’s gas trading points 

Exchanges 

ICE (UK/NL) 

EEX (GER) 

APX/Endex (B/NL) 

Powernext (F) 

CEGH Exchange (A) 

Nordpool 

P-Gas/GME (I) 

OTE (CZ) 

Source: Supply & Trading. 

active 

target markets 

not active 

OTC 

NBP (UK) 

TTF (NL) 

NCG/Gaspool (GER) 

PEG (F) 

CEGH (A) 

PSV (I) 

AOC (E) 

GTF (DK) 

Area D (N) 


211



RWE’s share of European gas downstream 

markets in 2011 

% 

100 

80 

60 

40 

20 

0 

9 

14 

Germany Belgium / 

Netherlands 

1 Including minority interests ≥ 20%. 

4 

46 

15 

17 

UK CZ 

Republic 

Hungary Slovakia 

1 

Hungary1 Germany UK Czech 

Slovakia1 Belgium/ 

Netherlands 


212



RWE gas customers by country 1 


Thousand 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 

1,295 

1,942 

82 

2,636 

1,836 

Germany Netherlands Belgium UK Czech Republic 



213



RWE gas sales in 2011 by customer group (I) 

Division: Germany 


corporate 

customers 29% 



commercial 

customers 33% 

83.3 

billion 

kWh 

Division: Netherlands/Belgium 


corporate 

customers 58% 


commercial 

customers 42% 

87.7 

billion 

kWh 


214



RWE gas sales in 2011 by customer group (II) 

Division: UK 


corporate 

customers 5% 


commercial 

customers 95% 

40.2 

billion 

kWh 

Division: Central Eastern and South Eastern Europe 


corporate 

customers 47% 



commercial 

customers 46% 

58.9 

billion 

kWh 


215



RWE Group gas sales volume by country in 2011 

Billion kWh 

Germany 

Czech 

Republic 

Netherlands UK Others Total 


commercial customers 

27.5 26.9 35.9 38.0 1.1 129.4 

Industrial and corporate 

customers 

40.8 16.5 56.5 2.3 13.1 129.2 

Distributors 56.6 4.7 0.0 0.1 2.2 63.6 

Total 124.9 48.1 92.4 40.4 16.4 322.2 


216



Transmission and storage system in the Czech Republic 

at a glance 

GERMANY 

HPS Waidhaus 

HPS Olbernhau 

Plzeň 

CS Strážovice 

Ústí n. Labem 

MTS Hora Sv. Kateřiny 

Praha 

SF Háje 

CS Veselí n. L. 

�eské Bud jovice 

CS Kouřim 

Hradec Králové 

CS Kralice 

AUSTRIA 

CS Hostim 

CZECH 

REPUBLIC 

SF D. Dunajovice 

POLAND 

SLOVAKIA 

> In the Czech Republic, RWE holds the exclusive license for transmission 

and licenses for the storage and distribution of natural gas 

Brno 

CS Břeclav 

SB Lobodice 

SF Tvrdonice 

HPS Lanžhot 

Ostrava 

SF Třanovice 

SF Štramberk 

RWE Transgas headquarter 

Gas transmission system 

Very-high pressure system 

Compressor station 

Border transfer station 

Inland transfer station 

Transfer and metering station 

Underground storage facility 

Headquarters of regional 

distribution companies 


217



RWE’s regional gas companies: 

Nationwide coverage in the Czech Republic 

GERMANY 

RWE ENERGIE 

ZČP 

PP 

JČP 

AUSTRIA 

VČP 

CZECH 

REPUBLIC 

JMP 

POLAND 

SMP 

SLOVAKIA 

> Total number of gas customers in 2011: approx. 2.0 million 

> Gas consumption in 2011 by segment: 

key account: 27%; business: 26%; retail: 47% 

> In 2010, RWE CZ entered the electricity market. Total number of electricity customers 

amounted to 130,000 in 2011 

Majority owned by RWE 


218


Investor Relations 

RWE AG Investor Relations – contacts 


Opernplatz 1 

45128 Essen 

Germany 

Contacts for Institutional Investors & Analysts 

Dr. Stephan Lowis 

Head of Investor Relations 

Tel.: +49 201 12-15031 

E-mail: stephan.lowis@rwe.com 

Martin Vahlbrock 

Tel.: +49 201 12-15055 

E-mail: martin.vahlbrock@rwe.com 

Dr. Burkhard Pahnke 

Tel.: +49 201 12-15182 

E-mail: burkhard.pahnke@rwe.com 

Jens-Philipp Briemle 

Tel.: +49 201 12-15106 

E-mail: jens-philipp.briemle@rwe.com 

Contact for Private Investors 

Cosima Bockelmann 

Tel.: +49 201 1215032 

E-Mail: cosima.bockelmann@rwe.com 

Gunhild Grieve 

Tel.: +44 207 015 5459 

E-mail: gunhild.grieve@rwe.com 

Judith Heise 

Tel.: +49 201 12-15141 

E-mail: judith.heise@rwe.com 

Vera Bücker 

Tel.: +49 201 12 15043 

E-mail: vera.buecker@rwe.com 


219

Facts & Figures 2012 - RWE AG

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