Transatlantic Cooperation in Renewables

Vic AbateVice President, Renewables3rd Transatlantic Market ConferenceMay 14, 2007

GEEnergy

2007

2030

4

Structured for growth … the “new GE”

Industrial Healthcare NBCUInfrastructureCommercialFinance

Consumer Finance

• Market leadership• Domain knowledge

• Technology advantage• Financial strength … AAA

Operating in 100+ countries … 125+ years … 300,000+ employees worldwide …2006 Revenue $163B

5

… our commitment

Environmental performance

Operating performance

4321 Report Progress

Reduce Emissions

Grow Revenues…$20 Billion

Double R&D…$1.5 Billion

6

Affordable, reliable & environmentally responsible

Global power generation requirements

Driving cost of electricity down

Efficiency

Reliability

Emissio

ns

EfficientDiverse

Nuclear

Coal

Gas

Wind

Oil

Geothermal

Biomass

Hydro

Solar

Nuclear

Coal

Gas

Wind

Oil

Geothermal

Biomass

Hydro

Solar

+

7

Global renewable installed capacity (GWs)

Growing renewables demand …

World requiring renewable energy solutions

� Significant growth 25%

CAGR (’01-’06)

� 40% power capital

spending

�Wind >50% of growth

� Countries & states

establishing renewable

energy targets

Source: REN21 2006 update + GE est (2/07)

182

160

‘05‘04

Wind

All other

‘06

~210

8

Wind … most viable solution

COE nearing mainstream

¢ per kWhr

Coal

~7.5

Nuclear

~6

Biomass

~10

Solar

~30+Cost of electricity 20 year levelized

Basis: $8.00/MMBtu NG

Wind

~7.5

Gas

~8

‘85 ‘95 ‘050

5

10

20

COE (¢/kWh)

15

� Technology

� Turbine size

� Project scale

� Fixed cost electricity

� Energy security

� Carbon-free generation

� Domestic solution

9

+6X (Unit volume)

Collaborative technology programs with:

Upwind …European community framework 5

Sirocco …European community framework 6

US department of energy

7 Assembly sites

Product Portfolio:1.5, 2.5 MW developed in EU for global deployment

Install Base: ~10 GW

� Advancing technology …efficiency, reliability, logistics

� Managing supply chain …integrated with global suppliers

� Operational differentiation …driving quality fulfillment

Global presenceAccelerating global deployment

‘08‘04

3,000+

~500

Wind turbines

10

Transatlantic cooperation at GE

Wind power1.5MW, 2.5MW applications for US and EU

Global research centers4 multi-disciplinary facilities around the world

Solar power~50% of ‘07 installs in EU

BiogasIntegrated global supply chain

Cleaner coal IGCCEuropean “center of excellence” in Poland

H – System gas turbineEU commercial launch site

11

Global research footprint

Bangalore, India

4 global research centers

Niskayuna, New York Munich, Germany

Shanghai, China

Global research driving advanced power generation solutions

Highlights

• 2,600 research employees

(nearly 1,000 PhDs)

• 27,000 GE technologists

worldwide

• $5.7B technology spend

• 1,400+ patents issued

in 2006

12

Research & development key

Breakthrough technology– Nano scale materials– Concentrators– Innovation

Tomorrow

Integrated systems

On and off-grid applications

Optimize– Material science– Increase efficiency – Value chain optimization

And beyond

Today2 global manufacturing sites

Install base: 115MW

Solar electric power systems for residential and commercial applications

Tec hnology driving COE

Collaborative technology programs

US DOE: solar America initiative

Solar powered clean water systems

GE solar technologies

Solar power

13

A leading manufacturer of biogas-fueled reciprocating engines for power generation.

• Power range from 0.25MW to 3MW, 4 platforms / 10 products

• Fuel flexibility: Natural gas or a variety of renewable or alternative gases

• Plant configurations: Generator sets, cogeneration systems, container solutions

• Installed base: More than 6,500 units / 7,400 MW

1160

480

‘03 ‘06

Gas engines

Jenbacher gas engines

(Unit volume)

14

Manufacturing site in Greenville, South Carolina

Technology collaboration with US DOE and EU universities

Commercial launch site at Baglan Bay Power Station, Port Talbot, Wales

H system… world’s most advanced gas turbine

$1B technology investment

Gas turbines: The H SystemTM

• 60% combined cycle efficiency platform

• Innovative closed loop steam cooling

• Lower emissions per MW vs other large combined cycles

15

IGCC … the Cleaner Coal solutionAdvantages

• Coal is 75% less expensive than natural gas

• Gasification cleans the coal before it is burned, preventing pollution instead of cleaning up the pollution after it is produced

• A Cleaner Coal option increases fuel diversity, reduces emissions, and increases siting and permitting flexibility

Idea

In Integrated Gasification Combined Cycle (IGCC) plants, gasification converts low cost fuels, like coal, into a high value, natural-gas-like fuel called synthesis gas to fuel a combined cycle system.

16

Cost of electricity/

environmental impact

Research Commercialization Globalization Maturity

Time

Renewables

Technology life cycles

Cost-effective options needed for growing global demand

• Continued investment in technology … in response to changing landscape

• Delivering cleaner solutions that make our customers more profitable

• New products … new platforms … expanded solutions

Ideas

17

Develop and create:•Common approach toward regulatory framework

� Adopt framework to reduce CO2 emissions to an agreed target level� Develop common language, rules, standards and codes for new technologies to reduce

regulatory uncertainty, and encourage investment and trade

•Incentives for application of energy conserving and efficiency� Encourage early deployment and adoption of best available technology� Pursue enactment of market-based framework to reduce greenhouse gas emissions

Promote:•R&D coordination cooperation

� Develop/deploy transatlantic R&D clean fossil fuel program� Facilitate technological & regulatory outreach to developing countries

•Public-private partnerships� Support transatlantic public-private partnerships in energy innovation (e.g. Solar

America Initiative)

Enhancing transatlantic cooperation

Thank you

Vic AbateVice President, Renewables

GEEnergy