Post on 16-Jan-2016
transcript
ESB Presentation
Oireachtas Committee
2nd November 2005
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
Energy Policy
SECURITY OF
SUPPLY
PRICE
ENVIRONMENT
Market Liberalisation
Oil /Gas /Coal Volatility
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
All Island Market • Commitment to integrate markets by July 2007
• Welcome development => 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
ESB’s Amorebieta Power Station in Spain
Distribution & Transmission Investment (€m)
0
200
400
600
800
Ave.1990s
2001 2002 2003 2004 2005
Transmission ReinforcementNRP Other non load relatedNew Business Distribution average 1990s
Infrastructure Delivery 2001 - 2005
• 65,000 km’s 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
2001
to
2005
220 kV
110 kV
38 kV
400 kV
1 new 400kV substations
5 new 220kV substations
32 new 110kV substations
24 new 38kV substations
30+ substations refurbished
10
Investment in Generation• Strategy
– Modernise and develop the Portfolio– Implement best practice O&M
• Commissioned two new Peat Stations
• Investment in Moneypoint
• Best practice agreed at many stations
ESB’s Wind Farm at Carnsore Point
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
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 PSO’s (Public Service Obligations) and Supply costs
Gas prices (2004 to 2005)
Gas prices (2004 to 2005) (source Argus)
25
35
45
55
65
75
01JU
L04
09A
UG
04
16S
EP
04
25O
CT
04
01D
EC
04
12JA
N05
18F
EB
05
31M
AR
05
10M
AY
05
17JU
N05
26JU
L05
02S
EP
05
11O
CT
05
p /
th
erm
Oil prices (2004 to 2005)
heavy fuel oil (source Platts)
150
200
250
300
350
40001JU
L04
10A
UG
04
20S
EP
04
28O
CT
04
07D
EC
04
19JA
N05
28F
EB
05
11A
PR
05
20M
AY
05
30JU
N05
09A
UG
05
19S
EP
05
27O
CT
05
$/t
on
ne
Installed capacity – fuel mixInstalled capacity by fuel type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Franc
e
Scandin
avia
Spain/
Portu
gal
Germ
any
UK
Irelan
d
Other
Gas/HFO
Gas
Oil
Coal
CHP& renewables
Nuclear
Hydro
Forecast Baseload prices 2006
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