Transcript GE PowerPoint Template

A Technology Provider’s View
Mathieu Savaris
Executive Legal Counsel
Tasos Vlassopoulos
Planning & Marketing Director, Europe
Athens, 22 May 2008
Think Global
Act Local
Structured for growth … the “new GE”
Operating in 100+countries … 125+ years … 300,000+ employees
worldwide … 2007 Revenue $173B
Infrastructure
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Energy
Oil & Gas
Water
Aviation
Transportation
Energy Fin Svcs
Aviation Fin Svcs
NBC
Universal
Industrial
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Consumer & Ind.
Equip Svcs
Plastics
Silicones/Quartz
Security
Sensing
Fanuc
Inspect Tech
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Network
Stations
Entertainment
Universal
Sports/Olympics
Commercial
Financial
Services
Healthcare
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Diagnostic Imaging
Clinical Systems
Info Technology
Services
Bio Sciences
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Insurance
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Leasing
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Real Estate
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Corp Fin Svcs
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Healthcare Fin Svcs
Consumer
Finance
Europe
Asia
Americas
Australia /
New Zealand
Products: gas, wind & steam turbines, biomass,
hydro, solar, geothermal, nuclear
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Services: Operation & Maintenance, Transmission &
Distribution, Asset Optimization, Environmental
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GE Proprietary
Localization
Global (“Soft” Rules)
Challenges
“One size fits all”
Business Model
Human Rights
Conventions
Model Industry
Contract Terms
Export & Trade
Controls
Codes,
Standards &
Regulations
CISG
Anti-Corruption
Treaties & FCPA
Domestic Public
Order Rules
Permits
& Licences
Competition
Laws
Controllership
Local (“Hard”Rules)
Solutions
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GE Proprietary
Energy
Trends
Drivers vary by region
Economic Growth
• Rapid growth in Middle East, India, China … Future technologies
centers?
• Continued globalization of industrial production
Power Industry Economics
• Gas & Oil remain costly, but available … Oil prices up ~13x since 1999
• No universal winning technology
Energy Supply Security
Eastern Europe
Transition Issues
Western Europe
Energy Security
North America
China
Environment
Energy Economics
Rapid Growth
Environment
Energy Security
Middle East
Energy Economics
Rapid Growth
India
Rapid Growth
Latin America
Energy Security
Energy Security
Overall Growth
• Threat of political disruptions – e.g. Russia
• Infrastructure investment needed in all areas
Environmental Sensitivity
• Global warming … U.S. expected to act
• Economic growth trumps environment in developing countries
• Water scarcity
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GE Proprietary
Major global uncertainties
Nuclear … When, where, how fast?
Coal … GHG policies & carbon capture costs?
Gas … Will price volatility decrease?
Renewables … Continued incentives?
China … Will economic growth rate be sustained?
Middle East … Will oil-driven cash flow be sustained?
India … Gas availability? Stable investment environment?
Russia … is it the beginning of its power system rebuilding?
U.S. … GHG policy, what will it be?
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GE Proprietary
West Europe: Energy Trends
800
Wind
High fuel prices and increasing dependence on gas
imports from Russia, Middle East and N. Africa
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Primary fuel diversification expected
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Increased operation of GT/CC’s in mid-merit
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Wind installed base doubling to reach 120 GW in 2012
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According to current conditions, offshore not expected
to take off in the next five years
EU commitment to reduce CO2 by 20% by 2020
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600
Binding target for 20% renewable energy by 2020
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Incentives for electricity from biogas, wind, solar &
cogen
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EU: 12 demo cleaner coal plants with CCS; financial
incentives to be clarified
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Nuclear debate on agenda
Political support to local industry in certain countries
Other
Hydro
Steam
400
SC
CCGT
200
Coal
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Nuclear
ETS under revision for post 2012 trading
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Installed Capacity, GW
30
Annual Additions
Wind
21
Coal, Hydro, Other
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Gas
EU15: 2008-2030
PG additions ~650 GW
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GE Proprietary
PG needs lead to growing gas imports
800
bcm
600
400
200
0
2006
2020
Own use
Residential
Industry
PG
800
bcm
600
400
~70%
200
~45%
0
2006
2020
LNG
Pipeline
Domestic
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Source: Edison (incl. EU27,Turkey, Norway, Switz.)
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GE Proprietary
Greece: Energy Trends
Oil & Gas … Greece becoming a transportation hub for oil & gas
Greek companies … forming alliances/JVs with foreign power players
Historic reliance on high emitting fuels such as lignite but increasing share of
CC and renewables
Summer peak puts pressure on system
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GE Proprietary
In Europe … we observe
Diversified growth … mainly CCGT and wind
Energy security … growing gas import dependency
Renewable energy … transforming European power
CO2 … volatility
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GE Proprietary
ecomagination
A corporate-wide commitment to help customers meet their environmental
challenges in ways that also benefit GE and the world
Operating, Efficiency, Emissions performance … 1 of 3 to be 10% better than
industry standard
A growth strategy based on GE’s belief that solving environmental problems is good
business
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At Launch
Currently
40+
Goal
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GE Proprietary
ecomagination Commitments
1
Double revenue from
$10B
to $20B
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Improve our energy
efficiency and lower our
GHG emissions
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Increase R&D investment
from
$750 MM to $1.5B
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Keep the public informed
on progress
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GE Proprietary
ecomagination in Energy
H
SystemTM
Wind
Solar
Cleaner Coal
IGCC
Jenbacher
LMS100®
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GE Proprietary
Technological diversity and efficiency …
The answer
Reliability
+
Emissions
nuclear
coal
gas
wind
oil
geothermal
biomass
hydro
solar
Efficient
Efficiency
Diverse
Driving cost of electricity down
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GE Proprietary
Thank You For Your Attention