Industry-focused management consulting in the changing world of energy. Richard Pinnock Energy Business Group Director

Transcription

1 Industry-focused management consulting in the changing world of energy Richard Pinnock Energy Business Group Director 1

2 Presentation topics Energy Industry Ongoing structural changes in Europe Energy business group Independent global thought leader for the Energy Industry 2

3 The degree of liberalisation in European countries varies considerably Market: Production: Grid: Belgium Germany Market: 52% of the market are open 100% of the market are open More than 90% are controlled by the 4 large Production: The production is largely owned by Electrabel groups Grid: The transmission grid is operated by ELIA Several independent grid operators France Market: 37% of the market are open Production: The production is owned by EdF (> 95%), SNET and CNR Grid: The grid is operated by RTE Netherlands Market: 63% of the market are open complete opening: end 2003 Production: 59% of the production are controlled by 3 large groups Netz: The transmission grid is operated by TenneT Market: Production: Grid: Spain 100% of the market are open 83% of the market are controlled by 3 large groups The grid is operated by REE Czech Republic Market: 30% of the market are open Production: 77% of the production are controlled by 3 large groups Grid: The transmission grid is operated by CEPS Market: Production: Grid: Italy 70% of the market are open 75% of the production are owned by ENEL (50%), ENDESA, EDISON, AEM, ENIPOWER The grid is operated by GRTN Market: Production: Grid: Hungary 20-35% of the Hungarian market are open 5 producers MVM is operating the transmission grid Poland Market: 51% of the market are open Production: 47% of the production are controlled by 3 large groups Grid: The transmission grid is operated by PSE 3

4 Transactions Internationalisation becomes stronger Important transaction (2001 / 2002 in Europe) Global transaction volume (since 1997) Bio US$ 13,8 Bio US$ 7,4 49 Eurogen 3, ,2 3, Europe 2,5 SEEBORD 2,1 Nueva Viesgo 2,0 Electrowatt-Ekono, an international network company, is in a powerful position to support the processes going in parallel with internationalisation 1) Only published values 4

5 Energy majors power activities In Europe, all majors are developing power business North America Latin America Europe North Africa Asia Power Generation Power Trading Gas & Power Customer 5

6 Power companies entering gas markets The important power companies expand into the gas sector Gas Supply Infrastructures Distribution Marketing Algeria Nigeria CAMUZZI COLOMBO GAS ENEL TRADE EON ENERGY AG (Germany) RURGAS RWE DEA E&P Egypt, Kazakhstan, Germany, Norway RWE GAS (Germany, Europe) TRANSGAS (Cechia) GAS DE AUSTRIA GAS DE AUSTRIA (Spain) Civil clients EGPC (Agreement) Egypt LNG Plant: Damietta, Sagunto LNG Ships Pipelines UF (Spain) Spain: Industrial and civil clients, IPP Foreign: IPP Interconnector Peru, Australia DUKE ENERGY EUROPE (Netherlands, Europe, Asia, South America) 6

7 Latest forecasts Need for new generation capacity of MW in Europe by 2030 Generation Capacity Developments Other 500 Gas 400 New Capacity Replacements 300 Coal 200 Nuclear 100 Hydro Needed Capacity in 2020: GW Replacement of about 300 GW New capacity of about GW High project development needs Emission trading schemes have substantial impact on strategic decision for technology Gas is the primary energy with the highest potential Renewable energy with a strong focus on sustainable technology (Bio fuel, Waste to Energy) Ongoing maintenance needs in Hydropower The combined services Management Consulting and Technology Consulting of Electrowatt-Ekono secure value adding solutions for the generators Source: VGB Powertech 2002 / EU-Kommission, Grünbuch 7

8 Impact on producers To master the market after implementation of emission trading the producers need new competencies EUR/MWh COAL Investment Decision CCGT Operating Decision COAL CCGT Gas price = 4.0 /GJ Variable cost COAL Variable cost CCGT Coal price = 1.6 /GJ 6000 h/year Discount rate = 7% EUR/tCO2 Total cost COAL Total cost CCGT Investment decisions are based on long term developments of fuel market, energy market and emission market Operational decisions are influenced and new operation schemes has to be developed Energy strategies for large consumers have to adapt to the new market situation Electrowatt-Ekono with an industry focus is well positioned to support the energy industry and its consumers 8

9 The regulator will have a strong influence across Europe Comparison of grid prices Developments Cts/kWh Germany: «East» Germany: «West» London (GB) Still big differences in regulation practices in Europe Higher transparency shows differences in price regimes Investment needs due to bottlenecks in interconnection Internationalisation and growing pressure through regulation will force system operators to optimise 0 1'000 2'000 3'000 4'000 5'000 hours Our sound experience in regulatory work and business optimisation is the basis for the successful further development of Electrowatt-Ekono 9

10 Our answer to these developments An integrated business model based on a defined mission Mission Energy Business Group is the preferred life cycle partner for the entire energy value chain of our clients, providing innovative, sustainable and integrated solutions Energy Business Group provides its clients with services and optimized solutions, sharing responsibility and benefits in a mutually beneficial way Management Consulting Business model Analysis and Strategy Business Development Implementation Operation Technology Consulting 10

11 Presentation topics Energy Industry Ongoing structural changes in Europe Energy business group Independent global thought leader for the Energy Industry 11

12 Organisation Energy Business Group CEO Richard Pinnock Management Consulting Hydropower Power & Heat Renewable Energy Oil & Gas Regional Business Kurt Bobst Andy Goodwin Ari Asikainen J.-J. Nyffenegger Alex Campbell Richard Pinnock Strategy development Business operations M&A Environmental consulting High & low head Pump-storage Integrated power & irrigation Run-off-river Cascade schemes CHP & cogeneration District heating & cooling Full condensing Integrated power & desalination Waste management Waste-to-Energy Biomass Geothermal Wind Solar Up-stream production & pipelines Down-stream pipelines & storage Specialised Safety Cases Nuclear Technology Traffic systems Industrial Processes > MW of installed capacity > MW of installed capacity > t/a of waste treated > 1,000,000 bpd of up-stream production 12

13 Strategy development Management Consulting contributes substantially to the enterprise value of clients Analysis Industry knowledge Strategic Options Implementation Plan Energy market analyses, modeling and forecasting Strategic support concerning challenges of changing market, climate change, new trading opportunities, internationalization and globalization Strategy consulting support for businesses along the whole energy value chain Market know how 13

14 Business operations We help guarantee the clients a successful future in the changing world of the Energy Industry Strategy Coordination Industry knowledge Business Model Processes and Structures Modification Processes Leadership System Innovative solutions for generation, transmission, sales, trade and distribution Increase of efficiency through developing processes in line with the strategy Development of business processes and organizations Creation and development of best practice measuring and control systems for business processes 14

15 Competitor comparison Engineering Management consulting Company Sales Staff ENR* IT Consulting Market Analysis, Regulatory work Strategy, M&A, Business Operation Electrowatt-Ekono th 200 European firms PB Power (UK) Lahmeyer Int. (DE) Mott MacDonald (UK) Fichtner (GER) Colenco (CH) Utility owned Tractabel (BEL) EdF (FRA) ESBI (IRL) ENEL (ITA) ENPRIMA (FIN) th 9 th 11 th 12 th 14 th 8 th 13 th Employees Convergenc e Fichtner Consulting Maycroft Consultancy 2 IPA Energy Consulting IT Power 1 IBM (PwC) ESBI Consulting A.T. Kearney 2 ECON NERA KEMA Energy Group Consulting 2 Mc Kinsey SKM 2 Elan 2 EE Impax CCC 1 * 2002 Engineering News Record (ENR) ranking (MUSD) 15

16 Business focus Energy Business Group aims to strengthen current position in all business areas The Independent Global Thought Leader Power & Heat for the Hydro Energy Industry 16