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Contents This is Neas Energy Next generation energy asset optimisation – built on experience.

European Energy Trading Increasing complexity in energy markets challenges asset owners and operators.

Nordic Market Market know-how and experience are fundamentals in energy markets.

German Market Conventional assets call for a flexible approach.

UK Market A changing market moving towards flexible solutions.

Neas Direct Direct gateway to your assets: CHP, Renewables & Trading

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Offices & Markets MAR K ETS

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Maximizing Value by Managing Risk

STOCKHOLM

AALBORG (HQ)

HAMBURG

Neas Energy is an independent energy asset management company that provides physical and financial optimization of renewable and conventional energy assets operating on energy markets in Europe. Based on more than 15 years of experience from liberal energy markets Neas Energy today has activities in all major energy markets in Europe and rank among the market leaders within physical balancing and trading of renewable- and combined heat and power generation for independent power producers in Europe. Neas Energy’s headquarters are located in Aalborg, Denmark and it has offices in London, Hamburg, Düsseldorf and Stockholm.

LONDON DÜSSELDORF

Neas Energy

This is Neas Energy

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Next generation energy asset optimisation – built on experience INTERVIEW

Energy asset management continues to grow in complexity as the European energy market transitions towards renewables and flexible supply-demand mechanisms. In reality, the transition will result in a whole new playing field for energy assets in Europe and require a new generation of asset management services to manage increasingly complex market conditions. At Neas Energy, we have spent more than 15 years developing IT systems, trading and origination to perfect our services for the next generation of asset optimization and ensure a pioneering position in Europe.

Profit from flexibility and precision

Bo Lynge Rydahl

Chief Executive Head of Short Term Officer, CEO Power Trading

E: [email protected] P: +45 99 39 57 96

The growing share of weather driven renewable generation and distributed generation calls for flexibility in production and consumption of energy. This development

will forever change market price drivers and result in new energy market regulations. The real challenge for us is to turn the complexity of the new energy markets into intelligent asset management for our customers to ensure them the most profitable operation and balanced risks.

“ In reality,the transition will result in a whole new playing field for energy assets in Europe ”

Neas Energy

This is Neas Energy

We like to think of our self as our customers’ eyes on the market creating value for our customers based on outstanding IT systems for asset management, 24/7 trading for maximum flexibility and employees close to our customers’ operation.

A reliable choice for asset management and trading Neas Energy operates on all major European energy markets and has a total portfolio of assets under management above 8000 MW installed capacity across generation and consumption technologies. Neas Energy has

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sales and origination offices in Hamburg, Düsseldorf, London and Stockholm and from our company HQ in Aalborg, Denmark we trade power, gas and related commodities on exchanges and with counterparts in all of Europe. Today, our business model is fit to manage energy assets ranging from small decentralized assets to large scale assets with Pan-European operation. Whatever your assets and exposure in European energy markets, Neas Energy is a reliable and highly capable partner for asset optimization and trading.

“ We like to think of our self as our customers’ eyes on the market ”

Neas Energy

This is Neas Energy

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2,100 MW

6,546 MW

installed capacity Combined Heat and Power

installed capacity Renewables

1.1 TWh

39.5 TWh

Supply & large scale consumption

Natural gas trading annual turnover

Neas Energy

European Energy Trading

European Energy Trading Neas Energy manages a number of Pan-European customers with assets and exposures across markets in Europe. We continue to expand our reach within physical asset management to new countries and our trading to cover in all viable European markets. Flexibility in asset management is essential and we aim to establish trading agreements with counterparts in markets across Europe to make Neas Energy a preferred trading partner for utilities, IPPs and other stakeholders with exposure in energy markets.

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Neas Energy

European Energy Trading

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Flexibility is key INTERVIEW

Increasing complexity in power markets challenges asset owners and operators. The main challenge for asset owners and operators is the increasingly complex power markets and it may be difficult to understand how your production units can contribute to the market. Head of Short Term Power Trading, Jesper Severin Johanson advises the customers,

Jesper Severin Johanson

Head of Short Term Power Trading

E: [email protected] P: +45 99 39 57 96

“You need to focus on your asset and ask, How can I make this more flexible? How do we create a balance between inflexible assets and the conventional assets? As long as there is no large scale storage of power, flexibility is key. You need to provide as much flexibility as possible.”

To exploit the increased flexibility in the market, Neas Energy trades power across Europe. Within the next 1-2 years, Neas Energy will be trading from Balkan through Eastern Europe to Turkey following a strategy where trading activities develop together with the markets as exchanges are established.

“ As long as there is no large scale storage of power, flexibility is key ”

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European Energy Trading

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Market development changes the market trend Power markets in North and West Europe are developing into traded markets resembling other commodity markets with increased liquidity. The tendency is changing from many small start-ups towards a market consolidation with fewer big players. Mr Johanson elaborates on the market development, “The market changes demand players in the market to have a certain size. We see decreasing margins, increased EU regulations and a decentralization of production caused by increased renewable production and storage facilities. The winners are the ones who can connect all decentralized units to be handled in one central place.”

“ The winners are the ones who can connect all decentralized units to be handled in one central place ”

Operating on the ever-changing power markets demands that Neas Energy’s Short Term Trading Desk is agile and can react fast as a unit. In addition to this, the Trading Desk is backed by Neas Energy’s in-house IT Development department, which secures handling of big amounts of data essential to the most optimal trading.

24/7 ON-CALL TRADING DESKS AND CONTROL ROOM

Neas Energy

Short Term Power Trading

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Neas Energy

Short Term Power Trading

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Neas Energy

European Energy Trading

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Real time optimization secures future profit in gas markets INTERVIEW

Conventional assets are under financial pressure and asset owners should look for new opportunities to secure profit in the future. In recent years a clear development in European gas markets has been the limited value of assets such as gas storage and gas fired power plants. This is a result of lower seasonal spreads and negative spark spreads caused by increased input of renewable energy,

Henrik Jørgensen

Head of Gas Trading

E: [email protected] P: +45 99 39 57 69

decreasing consumption and oversupply of gas storage capacity. This tendency does not seem to change, and asset owners and operators need to look for new value opportunities. Head of Gas Trading Henrik Jørgensen explains where he sees these in the future, “Conventional assets are under pressure and it becomes increasingly important to utilize your assets 24/7 through real time trading. The market is moving to the short end where we see increased volatility and it is important

“ Conventional asset are under pressure and it becomes increasingly important to utilize your assets 24/7 through real time trading ”

Neas Energy

European Energy Trading

to be present at the market as it happens. We see an increased competition and it is essential to be able to act fast and optimize the portfolio in real time.” Gas markets across Europe are opening up and it becomes easier to transport gas across markets to take advantage of profitable prices, but it requires a 24/7 setup to provide real time optimization.

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“ You need to look at new opportunities if you want to secure profitable assets ”

Adapt your assets to new flexible markets Low prices demand for the option to stop or store energy when input from renewable power generation fulfils the supply demand. Investment in green solutions e.g. converting projects can open up for the option to use gas in combination with renewable energy to balance the system. Mr Jørgensen explains, why it is important to look at new options, “You need to be willing to adapt and be ready for a new market where you need to use new ways to optimize and organize your assets. You cannot rely on your current curve and day-ahead utilization opportunities alone and you need to look at new opportunities if you want to secure profitable assets.” Securing optimal utilization does not make profit alone, providing flexibility to the market is also essential. Neas Energy is present on gas markets across Europe and provides international flexibility in the market while still being present with the customers bringing them close to the trading desk and bringing them real time optimization.

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Nordic Market

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Nordic Market In our home market in Denmark and the neighbouring Scandinavian countries, Neas Energy is a leading provider of physical asset management for renewable energy generators and conventional power and heat producers. Based on long-standing experience and years of development of IT systems and trading, we have perfected our services to transform changing and complex market conditions into value for our customers. On the Nordic market we provide 24/7 balancing and optimisation of wind, solar and hydro assets along with optimisation of consumption and supply and PPAs. In addition to this, Neas Energy also offers 24/7 trading of power, gas and related commodities (RE certificates and carbon emissions).

Neas Energy

Nordic Market

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Market know-how and experience are fundamentals in energy markets INTERVIEW

Conditions for operating energy assets change as the energy market moves in new directions. Keeping track of the latest developments and staying on top of this requires extensive market knowhow and a distinct setup. Increased amounts of renewable energy enter the European energy markets resulting in increased volatility. Combined with changes in subsidy schemes this suggests a new market structure for producers of both renewable and conventional energy, making energy markets even more complex. Senior Vice President, Nordic, Jens Tang comments on this, Jens Tang

Senior Vice President, Nordic

E: [email protected] P: +45 99 39 58 31

“As energy markets become increasingly complex, it is important to choose a partner to handle your production who can inform

you about market developments and political changes and what these mean to you and your production units.” Through the years, Neas Energy has developed its business along with the development in the energy markets. As a Danish company, Neas Energy has extensive experience from the pioneering Danish energy market and has used this to adapt the Danish model to other European markets. Mr Tang explains Neas Energy’s approach, “It is important for us to stay close to the customer and to the market in order to know what is coming next and in what direction the market is moving. It is significant for us to find solutions to the challenges our customers face and to take part in the debate about energy markets in the future.”

Neas Energy

Nordic Market

Individual solutions through dialogue Through a flexible approach and dialogue Neas Energy continuously looks at developing and improving solutions together with the customer. Mr Tang elaborates on the setup at Neas Energy, “Having a flexible in-house setup requires employees that understand the market and can take part in finding the best solution for each individual customer. Achieving this requires an understanding of both the customer’s home market and the European energy sector as such.” At Neas Energy focus is constantly on improving and developing the elements of the “engine room”: software development and power and gas trading. It is crucial to have the best possible IT systems to handle data and a trading setup that allows trading across Europe 24/7. With renewable energy being the main driver on energy markets, predicting and acting on changes in the weather is a must. Neas Energy’s in-house Weather Desk with experienced energy meteorologists ensures that traders are updated at all times and weather data is integrated in real time in necessary systems.

MARKET EXPERIENCE CREATES FOUNDATION FOR FUTURE SOLUTIONS

Staying close to the customer and the market helps Neas Energy create individual solutions.

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“ It is important to choose a partner to handle your production who can inform you about market developments and political changes ”

Neas Energy

German Market

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German Market The transitioning of the German energy market has led to massive investments in renewables and fundamental changes in the energy markets and subsidies. Utilising our experiences from the Nordic markets, Neas Energy has successfully established a strong position in the German power and gas market, which now ranks as our biggest asset market. Our German GmbH operates two offices in Hamburg and Düsseldorf marketing the company’s physical asset management services and trading propositions for asset owners and operators in Germany. Our services include PPAs, Direktvermarktung of renewables, and 24/7 balancing and optimisation of wholesale consumption and power (and heat) plants. Neas Energy also provides 24/7 trading of power, gas and related commodities (RE certificates and carbon emissions).

Neas Energy

German Market

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Conventional assets call for a flexible approach INTERVIEW

Increased volatility in energy markets demands flexible solutions and integration of trading and IT systems. The German energy market is becoming increasingly volatile and for owners and operators of conventional assets the requirement to be present in the market and to optimize their assets increases. Wolfgang Krüger, Managing

Wolfgang Krüger

Managing Head of Director ShortEnergy Neas Term GmbH Power Trading E: [email protected] E: P: [email protected] +49 2103 339 9010 P: +45 99 39 57 96

Director, Neas Energy GmbH, explains, “Volatility in the short term power market increases and it is in this market you find value opportunity. This calls for short notice time between activation of assets and actually generating, which requires an integrated solution for trading and IT systems. If you have everything in one system you minimize the risk of process failure, which is the main risk to be tackled.”

“ You need to look at the way you currently handle your assets and evaluate how you can extract additional value ”

Neas Energy

German Market

In addition to the need for flexible systems to handle assets, the assets themselves also need to be flexible. Storage becomes increasingly important and each breakthrough within storage technology can possibly change the market. Mr Krüger elaborates, “You need to know exactly what is going on in the market and take part in it. You need to look at the way you currently handle your assets and evaluate how you can extract additional value and find a partner who can help you stay integrated in the market.”

Integration of systems is crucial Neas Energy helps its customers identify possibilities within energy markets both in terms of current assets and which additional investments that can secure future profit. Advising customers in the planning phase can help them choose a future-proof solution. Mr Krüger explains, “Thinking ahead is essential in today’s energy markets. Not only do your assets need to be

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“ Combining trading and IT solutions in one integrated system is crucial ” flexible also the trading and IT systems you use to access the market must be adaptable to market changes. Combining trading and IT solutions in one integrated system is crucial and will be even more important in the future for processes we do not even think of today.” Neas Energy provides an adaptive approach that can be integrated with the customer’s own technology to the extent the customer wishes. The approach delivers one point of contact for everything, which secures access to the whole market and provides a flexible approach.

FLEXIBLE APPROACH FOR SYSTEMS AND ASSETS

Both IT systems and assets needs to be flexible to exploit value opportunities in today’s power market.

Neas Energy

UK Market

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UK Market In recent years, the UK has attracted a lot of new investments within renewable energy and the share of this is expected to continue to grow in the coming years. In 2013, Neas Energy established its UK subsidiary Neas Energy Ltd. and has since attracted customers within renewable power generation, dispatching and large scale consumption. Neas Energy Ltd. offers PPAs and 24/7 balancing and optimisation of renewables as well as dispatching and 24/7 trading of power, gas and related certificates.

Neas Energy

UK Market

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A changing market moving towards flexible solutions INTERVIEW

The UK power market is undergoing a series of fundamental changes and moves in a new direction that requires new business approaches. The energy market in the UK is becoming continuously more integrated with other European markets leading to rapid changes in market conditions. Managing Director Søren Kjær Petersen explains how he perceives the future trends,

Søren Kjær Petersen

Managing Head of Director ShortEnergy Neas Term Ltd. Power Trading E: [email protected] E: P: [email protected] +44 (0) 1628 604 834 P: +45 99 39 57 96

“The overall tendency we see in the UK is a market exposed to many new reforms driven by a need for change in a Generation Stack that is relatively inflexible compared to what you see in other European markets. More specifically, we see a change in the balance regime, reforms of green energy subsidies, and the introduction of a capacity market.”

The UK power market will be integrated with the European market through interconnectors and Market Coupling solutions, which will increase opportunities for flexible production units. At the same time ensuring security of supply is essential for the UK Government.

“ The overall tendency we see in the UK is a market exposed to many new reforms ”

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UK Market

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“ It is important that players in the UK power market prepare for the changes to come ” Consolidation of green energy Mr Petersen and his team in the UK are following the market development closely and taking part in the political debate and the advice is clear, “It is important that players in the UK power market prepare for the changes to come. Looking forward value creation will be related to the ability to be flexible and to take part in the short term market where flexible production units and storage facilities are crucial” Another trend Mr Petersen suggests is a consolidation of green energy. In the UK, renewable energy generation has been driven by a defragmented structure, but with the changes in subsidy schemes it will most likely result in a consolidation in the market with

PREPARE FOR THE CHANGES TO COME

Experience from European markets make Neas Energy ready for the coming changes in the UK market.

larger entities replacing the small entities we see today. Mr Petersen recommends, “For the small and middle sized producers it is time to find a partner to gain the critical mass you need in order to be able to compete under the new market terms and continue to have profitable production.” Neas Energy has a flexible approach, and the integration in the European market provides experience from a one-sided balance system both in terms of renewable power generation and generation from power plants. This experience makes Neas Energy ready for the regulations that will be integrated in the UK in the coming years when the market requires more flexible solutions.

Neas Energy

Neas Direct

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Neas Direct is a web application that gives you easy and direct access to all information concerning your assets. The application is your gateway to energy markets and ancillary services allowing you to manage your operational and optimization procedures effectively based on solid information and with full transparency. Managing your portfolio and assets in Neas Direct allows you to access advanced tools and data to plan and operate your generation on optimal conditions for maximum value with a minimum of risk and uncertainty. The software gives you access to Neas Energy’s 24/7 operation and trading services:

Forecasting

Operation

Optimisation

- Power price forecasts - Weather forecasts - Heat demand forecasts



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Scheduling and nomination Planning Remote control Monitoring and reporting

Production planning Heat/gas storage Day-ahead Intraday Ancillary services

FLEXIBLE SOLUTIONS AND INTEGRATION OF TRADING AND IT SYSTEMS

Neas Energy A/S · Skelagervej 1 · DK-9000 Aalborg, Denmark Reception:

Communications:

Legal & Market Implementation:

(+45) 99 39 55 00

(+45) 99 39 58 04

(+45) 99 39 59 04

24/7 Operation Service:

24/7 Short Term:

24/7 Gas:

(+45) 20 40 38 58

(+45) 99 39 57 70

(+45) 99 39 57 75

Wholesale:

Renewables:

Combined Heat & Power:

(+45) 99 39 58 54

(+45) 99 39 58 31

(+45) 99 39 58 11

Neas Energy GmbH

Neas Energy Ltd.

Düsseldorf:

Hamburg:

London:

(+49) 2103 33990 0

(+49) 40 8970 9344

+44 (0) 1628 663 517

Fax: (+45) 99 39 59 99

[email protected]

VAT-nr. 20293195

www.neasenergy.com