Patrick Haren

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Patrick Haren Chief Executive, Viridian Group plc
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• Overview
• Competitive markets in electricity generation are
  the key to real electricity supply competition
• The markets North and South are individually much
  too small
• Essential to develop a single market to attract
  the investment required
• Interconnection is a key factor in ensuring
  market integration

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• Industry structure and competition
• Transmission and Distribution as regulated
  monopolies
• Supply competition provides customer choice
• Supply margins low
• Generation represents 60 - 85 of cost
• Generation costs must be subject to competition

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• Priority focus for a competitive market
• Transmission and Distribution charges
  demonstrably fair
• Access to a Customer Portfolio with Scale
• Access to Competitive Generation for the raw
  material to compete
• Interconnection to allow trading and market
  integration

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• Investor views on the market
• Small scale
• Limited opportunity / Not a priority market
• Uncertain / unsatisfactory market structure
• Locked up by the Incumbent

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• Obstacles to financing
• Resistance to on-balance sheet financing
• Restricted appetite for asset ownership
• Difficulty in obtaining non-recourse finance
• Bank aversion to merchant plant risk

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• Huntstown Power
• Risks taken on development ahead of the market
• Connection Agreement Risks
• Construction financed on-balance-sheet
• Market position developed through Energia

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Huntstown Power Station
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Moyle Interconnector
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• Viridian investment in the all-island market
• Euro 235m in the Moyle Interconnector
• Euro 235m in Huntstown Power
• Joint investment with ESB in North-South
  interconnection

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Market opening In 2004 planned market opening
will allow some 200,000 commercial and small
industrial customers to enter the all-island
market in electricity.
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• All-island energy market
• The benefits
• Increased efficiency
• Economies of scale
• Greater choice for customers
• Competitive prices
• Better quality service for customers
• Returns that encourage investment

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