Significant changes during the reporting period (2.9)

Acquisition of wind power in the UK

Vattenfall acquired several British wind power companies:

• AMEC Wind Energy Ltd, one of the UK’s foremost developers of commercial wind farms, with current projects corresponding to 500–750 MW.
• Eclipse Energy UK Plc, which is working with six wind power projects in the UK with combined capacity of more than 200 MW.
• Thanet Offshore Wind, which with 300 MW under construction is the UK’s largest wind power project.

At the end of the year, Vattenfall also entered into a partnership with ScottishPower Renewables, a subsidiary of the Spanish company Iberdrola, to participate in the third round of tender bids to develop
offshore wind power in the UK. The joint goal is to establish 6,000 MW of wind power (3,000 MW each).

Acquisition of stake in Polish energy company

In November Vattenfall acquired 18.7% of the Polish energy company ENEA S.A. The company, which is one of four state-owned energy companies, has 2.3 million customers and accounts for approximately 8% of Poland’s total energy generation. ENEA S.A. has a mixed portfolio of small-scale hydro power plants as well as planned investments in wind power development projects, but relies predominantly on coal-based generation. Vattenfall today is the largest foreign energy company in Poland, and the acquisition strengthens Vattenfall’s position in the
Polish energy market.

New Group structure

A new Group organisational structure has been implemented with effect on 1 January 2009. A third Business Group, Pan Europe, has been established, comprising three new Group-wide business units: Wind, Nuclear and Engineering. The new Business Group will also be responsible for European business development, focusing on efficient use of energy and biomass. The new organisational model will make Vattenfall better equipped to further improve its ability to reach its ambitious climate and growth targets and take advantage of cross border co-operation opportunities.

Nuon

In February 2009, after the end of the financial year, Vattenfall made an offer to acquire 100% of the shares in the Dutch energy group Nuon. Like Vattenfall, Nuon has an ambitious climate programme, including investments in offshore wind farms and its own pilot plant for CCS technology in Buggenum, Netherlands. A substantial share of Nuon’s energy production is based on natural gas, and the acquisition gives Vattenfall important know-how in this area. The transaction is subject to the approval of at least 80% of the shareholders and the European Commission. Nuon and Vattenfall expect to complete the closing of this transaction in the second quarter of 2009, after which Nuon will form a third regional Business Group of Vattenfall – Business Group Benelux.