ESB Presentation

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ESB Presentation

• Oireachtas Committee
• 2nd November 2005

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Content

• Emergent trends in Europe
• Full opening of the Irish electricity market
• All Island electricity market
• ESB International Investments
• ESB Investments
• Networks
• Power Generation
• Environmental Compliance and Renewables
• Electricity prices
• Issues Going forward

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Energy Policy
Market Liberalisation
Oil /Gas /Coal Volatility
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Full Market Opening

• All customers free to choose supplier
• On time and on budget delivery of complex IT
  systems to enable Market Opening
• ESB commitment to facilitating competition
• reduce market share
• discount sale of power to competitors
• ESB contracts with Independent Generators
• Viridian, BGE, Airtricity, Aughinish, Tynagh

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All Island Market

• Commitment to integrate markets by July 2007
• Welcome development gt fully supported by ESB
• ESB market share reduced to 40-45
• c 2000MW on new plant in 7 years
• 70 owned by Independent Power Producers
• ESB planning to repower Aghada power station

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ESBs Amorebieta Power Station in Spain
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Distribution Transmission Investment
(m)
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Infrastructure Delivery 2001 - 2005

• 65,000 kms of MV renewal
• 370,000 customer connections
• 250 kms of new transmission circuits (x)
• 62 new transmission/HV stations
• 60 refurbished transmission/HV stations
• Capital spend of 3 billion

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Investment in Generation

• Strategy
• Modernise and develop the Portfolio
• Implement best practice OM
• Commissioned two new Peat Stations
• Investment in Moneypoint
• Best practice agreed at many stations

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ESBs Wind Farm at Carnsore Point
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Connection of Wind Generation

• Approx 300MW connected
• Another 600MW accepted offers to connect
• Another 380 MW being offered to connect
• Over 2,000MW of additional applications being
  processed

More than 100 new applicants
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Breakdown of ESB Price Increase

• In the period 2000-2006 ESB price increase has
  totalled 40.
• Generation / Fuel accounts for c 34
• 4 relates to networks
• 2 relates to PSOs (Public Service Obligations)
  and Supply costs

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Gas prices (2004 to 2005)
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Oil prices (2004 to 2005)
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Installed capacity fuel mix
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Forecast Baseload prices 2006
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Summary

• Imperative to deliver massive future
  infrastructure needs
• Organisation capability
• Funding ability
• Requirement to remain financially strong
• Need to reduce costs and meet regulatory targets
• Important to reach acceptable market share
• Security of Supply Vs Liberalisation
• Requirement for international growth to maintain
  scale and skills