Meeting the Challenges of Energy Demand Karim Barbir SVP Strategy, Portfolio and Risk Management GDF SUEZ Energy North America November 22, 2010.

Présentation au sujet: "Meeting the Challenges of Energy Demand Karim Barbir SVP Strategy, Portfolio and Risk Management GDF SUEZ Energy North America November 22, 2010."— Transcription de la présentation:

1 Meeting the Challenges of Energy Demand Karim Barbir SVP Strategy, Portfolio and Risk Management GDF SUEZ Energy North America November 22, 2010

2 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement Who is GDF SUEZ ? Overview 2009 Revenues: €79.9 billion; EBITDA: €14.0 billion; over 200,000 worldwide employees Electricity: World’s largest IPP Natural Gas: #1 buyer and transporter in Europe LNG: #1 importer in Europe and U.S. North American Business Integrated energy company; 2,000 employees Electricity: ~8,000 MW in U.S., Canada & Mexico 23 biomass, wind and hydro-powered assets in US and Canada Carbon light generation: 21% renewable; 67% gas LNG: #1 importer in U.S., supply 20% of New England’s annual gas demand Retail: #2 U.S. electricity retailer servicing commercial & industrial customers Mexico: #1 private gas transmission; gas distribution to nearly 400k customers 2

3 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement  Drive towards coal retirements  Drive for efficiency Q: Timing? form? Economic Recovery Renewables Regulatory Environment and Sustainability Primary Energy Sources  Signs of recovery; gas and power demand recovering Q: Catalyst for growth?  Higher capital costs  Subsidies Q: Will incentives continue?  Shale gas advancement Q: Price impact? Fuel substitute? 3 Challenges/Opportunities for North American Energy

4 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement 4 Economic Recovery Underway… And New Power Generation Will Be Needed * Solar, wood, biomass, geothermal Source: EIA New build considerations Sustainability Infrastructure needs Supply diversity Price competitiveness Coal Natural gas Hydro Oil products Nuclear 31% 39% 6% 10% 4% Today’s Generation Mix (capacity)Tomorrow US Example Wind; other renew- ables*

5 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement New Generation Build – A Cost Perspective Levelized Cost USD per MWh 5 Source: GDF SUEZ Energy North America Analysis Carbon LightCarbon Free Carbon Intense

6 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement Renewables- Not Where We Consume Energy 6 Source: NREL, Environment Canada Vancouver Toronto Montreal United States Wind Speed Map Canada Wind Speed Map United States Solar Intensity Significant incremental transmission will be needed over the next 15 years to integrate renewable development into U.S. generation fleet, $50 billion to satisfy existing state-level RPS standards As much as $130 billion to meet a 20% national renewable portfolio standard Texas PUC, as an example, approved nearly $5 billion for 18,456 MW of transmission investment to support renewable investments

7 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement 7 Shale Gas - N. America’s Answer to a Domestic, Low Cost Primary Energy Source?  Supply: may be as much as 100 years of U.S. consumption by some estimates  New uses: gas-fired power generation to displace coal; petrochemicals return? residential and transportation switching?  Technology adoption: to Europe? Asia? Source: EIA 2010

8 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement In a World of Cheap Gas, There is an Expanded Role for Natural Gas Fired Generation 8 A fuel source for the ‘Utility of the Future’ Carbon Light! Acceptable generation tradeoffs Competitive Advantages kg CO 2 per MWh Coal1.0 Natural Gas0.4 Flexible generation backup for wind and solar Electric vehicles Rapid deployment vs. nuclear Attractive opex/ capex profile vs. wind and nuclear High efficiency, off-the- shelf technology

9 Pour personnaliser la date : Affichage / En-tête et pied de page Personnaliser la zone date, Cliquer sur appliquer partout NB. Sans intervention, la date se met à jour automatiquement GDF Suez Energy North America- Meeting the Challenges Now A diversified, sustainable portfolio profitable under a variety of economic scenarios 9 Longer-term Options Expand renewables footprint where economically sensible; improve carbon position of fleet Maintain carbon-light fleet anchored by natural gas-fired generation Nuclear as a long-term option- clean, base load generation Concentrated solar, rooftop solar Renewables with PPAs Canada, US, Mexico CCGT Hydro and pumped storage Renewables firm support