IBE Offshore Business - Creating a Supply Chain together FINAL

Level of confidentiality: CONFIDENTIAL

Iberdrola Renewables

IBE Offshore Business -Creating a Supply Chain together in Japan

October 2021

Lucas Gómez FontechaGlobal Head of Windfarm Iberdrola Offshore Wind Business

www.iberdrola.com 3

WHY offshore

Offshore will play a key role in the decarbonization of the energy system…

… and Iberdrola is uniquely position to be an industry leader

Offshore Wind capacity outlook (GW)

2030: Internal assumptions based on different 2030 outlooks

Europe450GW

Asia-Pacific600 GW

United States 86 GW

10% of global electricity demand

Billion tones of CO2 saved annually

Millions of clean jobs

Massive potential to reach targets in the next decades

Less than 40GW currently operational

www.iberdrola.com 4

Iberdrola Offshore Growth Opportunities

Iberdrola Renewable’s pipeline amounts to 75 GW for future growth of which 22GW is offshore wind, secured at early stage in attractive markets with established support mechanisms

SUPPORT MECHANISMS

US

Japan

Pipeline by technology (MW)

PIPELINE

Contracts for DifferenceFeed-in premiumFeed-in tariffGreen certificateTax credits

www.iberdrola.com 5

Iberdrola Offshore Pipeline: Map

Park City WindPPA Awarded - 804MW

Consent 2023 - COD >2025

534 Consent – 1,200MW

Consent >2023 - COD >2026

Kitty HawkPre Consent – 2400MW

Consent 2023 (ph I) - COD >2026

Vineyard Wind 1PPA Awarded - 800MW

Consent 2021 - COD 2023-24

West of Duddon SandsOperational - 389MW

Consent 2011 - COD 2014

East Anglia HubPre-Consent – 3,100MW

Consent 2017-21 - COD 2026

Key:

Development (31GW)

Pre-FID (3.4GW)

Construction (2.6GW)

Operation (1.4GW)

East Anglia ONEOperational - 714MW

Consent 2014 - COD 2020

Ireland (portfolio of 3* projects)Seeking exclusivity – up to 3GW

Consent >2021 - COD >2028

12-18GW operational by 2030, de-risking strategic plan delivery and creating opportunities to accelerate

St. BrieucConstruction - 496MW

Consent 2017 - COD 2023

BrazilSeeking exclusivity – up to 9GW

Consent >2024 - COD >2030

FlagshipConstruction - 10MW

Consent 2020 - COD 2022

Sweden (portfolio of 8* projects)Seeking exclusivity – up to 9GW

Consent >2021 - COD >2029

Total – 38GW

WikingerOperational - 350MW

Consent 2015 - COD 2017

Baltic EagleConstruction - 476MW

Consent 2021 - COD 2024

WindankerPre-Consent – 308MW

Consent 2021 - COD 2026

Japan (Acacia portfolio & Ecopower)Seeking exclusivity – up to 3,600MW

Consent >2023 - COD >2028

Significant expansion of pipeline in last 12 months in selected Countries

TaiwanSeeking exclusivity > 2GW

Consent >2023 - COD >2028

www.iberdrola.com 6

Key Success Factors

Unique capabilities are needed to successfully compete in the offshore market

Drive LCoE downBest-in-class, in-house construction and asset management capabilities

1

Address key challengesMarket design, access to grid, spatial planning and industrialization

2

Technological innovationLeading new technologies essential to reach long term goals – floating pioneers

3

Access to CapitalLeaders in Green Financing, maintaining full access to capital markets

4

www.iberdrola.com 7

LCoE Reduction: Global Presence

Industry leader and key player in the procurement of electrical components…

… leveraging global supply chain knowledge and access across all portfolio.

Global leader in wind operations and asset management: Over 11,400 turbines deployed both onshore and offshore and ~ 20 GWs of windfarm assets in operation.

Strong long-term relationships with key market suppliers: partners with three key WTG suppliers

Early engagement with key supply chain players: ensure and optimize capacity for pipeline needs

Next generation technology to drive LCoE down: Larger WTGs, new foundations, more efficient T&I, optimized grid connections.

Strong focus on innovation: Green Hydrogen will be key in the decarbonisation of hard-to-abate sectors, with hybridization of Offshore potentially offering wider system and business benefits.

Leverage global wind presence for favourable terms and early access

to new technology

www.iberdrola.com 8

Procurement process

Suppliers are considered strategic players within the Iberdrola group

The procurement Division is proactive and firmly committed at all levels:

Developing new capabilities

Interacting with suppliers

Guaranteeing a fair, transparent and ethical value chain

www.iberdrola.com 9

Sustainable Development Goals

IBERDROLA’S BUSINESS MODEL, FULLY ALIGNED WITH THE BEST PRACTICES ON ESG

• £25 Million spent with contractors in greater East Anglia since start of Project

• £5 Million investment in Great Yarmouth Port and £25 Million investment in Lowestoft Port creating world class facilities for offshore wind

• £50 Million spent on EA1 construction related work/services in local area

Turner ICENI, vessel provider 3Sun Group, construction services & training James Fisher Marine Services, integrated marine CWIND subsea maintenance, surveys and pre-

engineering studies

East Anglia 1: UK Local Content

Wikinger: Supply chain across Europe (Video)

https://www.youtube.com/watch?v=r9lf0ObV_T8

www.scottishpowerrenewables.com/pages/offshore_wind_suppliers

Conferences& Events

Supplier Database

Procurement Processes

Contact Us

East Anglia HUBContract Awards

Supply Chain Information

East Anglia Hub: Supply Chain Engagement

Saint Brieuc Case Study – Industrial Plan

Eoliennes

Le Havre Installation en mer

En mer

Fondations

Brest Composants et services

Bretagne

SITE

Base d’installation et mise en service, base de maintenance provisoire

Lézardrieux

Base de maintenance permanente (objectif)

Saint-Quay-Portrieux

Fene (Espagne)

60 COMPANIES INVOLVED – 50% LOCAL CONTENT ACHIEVED

www.iberdrola.com 14

NEXT: AOMORI-SEIHOKU- OKI OFFSHORE WIND

Aomori-Seihoku-Oki Offshore Wind

Leader in the offshore frontier (Pioneer in offshore

wind power technology)First wind power

company in JapanBiggest wind power company in Europe

… showing Iberdrola commitment to Japan offshore wind development.

www.iberdrola.com 15

NEXT: AOMORI-SEIHOKU- OKI OFFSHORE WIND

Other- Cables- Grouting materials- Transformers- Corrosion prevention stones- SEP ships- Construction materials- CTV ships, etc.

Other- Cables- Grouting materials- Transformers- Corrosion prevention stones- SEP ships- Construction materials- CTV ships, etc.

Port utilization plan● Hub ports- Improvement of Aomori Port- Creating a port network● Base ports- Development of fishing ports

Port utilization plan● Hub ports- Improvement of Aomori Port- Creating a port network● Base ports- Development of fishing ports

Utilization of local companies In-house O&MUtilization of local companies In-house O&M

Foundations- MP- TP

Foundations- MP- TP

Wind turbines- Turbines- Blades- Gearboxes- Towers, etc.

Wind turbines- Turbines- Blades- Gearboxes- Towers, etc.

- Onshore equipment, pipeline construction

- Seafloor studies, corrosion prevention stones

- Part of offshore construction

- Switching to in-house O&M operations, also including turbines

- Working with fishermen

Aiming to create a unique supply chain, we will consider collaborations that are more in-depth than anywhere else.

… leveraging global supply chain knowledge and local companies to create a winning proposal.