Transcript Slide 1
Irish Congress of Trade Unions ESB and ‘Green Jobs’ Padraig McManus ESB Chief Executive Customer Supply & Power Generation & Group Supply Services From Financial Market Turmoil to Global Recession Market and Liquidity Risks Worst since 1930’s Customer Supply & Power Generation & Group Supply Services Employment No Region Spared Major Changes for Ireland 2008 Projected GDP Growth From 2nd highest EU GDP per capita to -3% 2009 4.5% 4.5% 2012E 2013E 3.3% 2009E 2010E 2011E -1.5% Severe GDP Contraction 2010 -7.5% Further contraction, recovery in trading partners Source: Dpt of Finance, Pre-Budget Outlook, Nov 2009 2011 Recovery Customer Supply & Power Generation & Group Supply Services Focus on competitiveness and costs now required Impact on the Power Sector Global electricity demand European final power consumption Power Generation H1 2009 • • • • RWE Power (Ger): -40% RWE Npower (UK): -31.4% Vattenfall (Nordic): -7.1% Endesa (Spain): -17% Customer Supply & Power Generation & Group Supply Services Outlook for ESB Significant Change in Market Demand – SignificantGeneration Change In Adequacy Market Demand - GAR Report Major Glut in UK & European Gas Prices Forecast from GAR report Dec ‘08 34000 Demand (GWH) 33000 32000 31000 July ‘09 30000 29000 28000 27000 26000 2005 Cumulative CPI (2007 base) 2006 2007 2008 2009 Medium GAR (July 2009) 2010 201 2012 2013 2008 Strategy 120% 115% 110% Revised Outlook 105% 100% 95% 90% 85% 80% 2008 2009 2010 2011 2012 2013 2015 Original Medium GAR (Dec 2008) Cumulative CPI (2007 base) Networks Impact Networks Impact 125% 2014 2014 Demand, market and inflation all reduced which Customer Supply & Power Generation & Group Supply Services Impacts ESB profitability 2008 Strategic Framework Customer Supply & Power Generation & Group Supply Services Delivering on Smart Networks ESB Integrated Network Strategy Applied research Partnership Sustainable employment Ireland as centre of excellence Customer Supply & Power Generation & Group Supply Services Eco-Investment Fund (Novus Modus) New €200m Investment Fund for Energy Innovation Positioning ESB as a smart-tech Utility for the future ESB investments will drive employment in this sector • • • • Renewable generation Clean energy technologies Renewable services and logistics Low carbon and energy efficiency Customer Supply & Power Generation & Group Supply Services ESB Stimulus to the Economy 2009-2013 3,700 new external jobs Sustain 1,300 internal jobs Deliver the Smart Networks Infrastructure 800 apprentices and 300 graduates Customer Supply & Power Generation & Group Supply Services