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92
Utilities - Electricity - Generation - Market Data
Shares of Primary Energy Sources in Total Electricity
Generation in Europe (2004/2005)
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Poland
Slovakia
Spain
Sweden
Czech Republic
Hungary
Netherlands
Portugal
66.08
86.09
36.06
70.41
572.6
606.1
59.3
25.05
299.5
3.69
154.13
30.36
293.03
155.9
UK 394.46
84.33
33.71
98.48
44.97
0 20 40 60 80 100
in % in TWh
100 200 300 400 500 600
Gas Oil Coal/Lignite Nuclear
HydroWind
Other
Total power generation
Source: Cambridge Energy Research Associates.
93
Utilities - Electricity - Generation - Market Data
Development of the European Power Plant Portfolio
from 2000 to 2030
Capacity of EU 15 member states
in GW
Assumption: Decommissioning after 40 years of operation. Nuclear phaseout in Germany included.
?900
800
700
600
500
400
300
200
100
0
Additional capacity of100,000 MW
Replacement capacity of200,000 MW
2000 2005 2010 2015 2020 2025 2030
Source: VGB PowerTech e.V., Essen, 2004.
OthersGas
Coal (in total)Nuclear
Water
94
Utilities - Electricity - Generation - Market Data
Development of Energy Consumption in Germany
2001 2002 2003 2010
Electricity
in TWh
134
74
57
240
Development by segment (2001 2010)
505
137
78
58
241
514
139
81
59
242
521 547
0.7% p.a.
B2B/Public institutions Commerce and agriculture Residential customers B2B/Industry
2001 2002 2003 2010
Gas
in TWh
229
115
137
962
240
125
134
460
959
235
130
137
490
9921,081
1.2% p.a.
Others Power plants B2B/Industry Residential and commercial customers
Source: Eurelectric 2005/EU Commission 2003.
481
95
Utilities - Electricity - Generation - Market Data
German Energy and Power Mix (2005)*)
Primary energy consumption:
492 million tons of coal equivalent
*) Estimated figures.
Source: Arbeitsgemeinschaft Energiebilanzen (Energy Balance Working Group), VDEW.
Other 36%
Natural Gas 23%
Hard coal 13%
Nuclear 12%
Lignite 11%
Renewables 5%
Gross power generation: 600 TWh
Nuclear 29%
Lignite 26%
Hard coal 21%
Renewables 11%
Natural Gas 10%
Other 3%
96
Utilities - Electricity - Generation - Market Data
Development of the German Power Plant Portfolio
from 2000 to 2030
Assumption: Decommissioning after 40 years of operation. Nuclear phaseout included.
150
100
50
0
OthersGas
CoalLignite
NuclearWater
Replacement capacity of 40,000 MWbetween 2010 and 2020
2000 2005 2010 2015 2020 2025 2030
Source: VGB PowerTech e.V., 2004.
in GW
97
Utilities - Electricity - Generation - Market Data
Planned Power Plant Projects in Germany (I)
Commercial
Source Net capacity operation
Company Planned location of energy in MW presumably till
RWE Power Weisweiler Gas 540 2006
Concord Power Lubmin I Gas (CCGT)*) 1,200 2007
Trianel Power Hamm-Uentrop Gas (CCGT)*) 800 2007
Mark-E/Statkraft Herdecke Gas (CCGT)*) 400 2007
Statkraft Hrth Gas (CCGT)*) 800 2007
E.ON Kraftwerke Irsching Gas (CCGT)*) 800 2008
Norddeutsche Affinerie Hamburg Waste 100 2008
RWE Power BoA 2/3, Neurath Lignite 2,100 2010
Vattenfall Europe Generation Boxberg Lignite 670 2010
STEAG/EVN Duisburg-Walsum Hard coal 750 2010
Stadtwerke Ulm Blaubeuren Pump storage 45 2010
Vattenfall Europe Hamburg-Moorburg Hard coal 750 2010/11
Electrabel/Norddeutsche Hamburg/Stade/ Affinerie Wilhemshaven Hard coal 600 2010/11
E.ON Kraftwerke Datteln Hard coal 1,000 2011
Stadtwerke Bremen Erzeugung Bremen-Mittelbren Hard coal 800 2011
Energie- und WasserversorgungMittleres Ruhrgebiet Ruhrgebiet (open) Hard coal 1,100 2011
STEAG Herne Hard coal 750 2011
RWE Power Hamm Hard coal 1,500 2011
Sdweststrom Baden-Wrttemberg (open) Hard coal 750 open
Kraftwerke Mainz-Wiesbaden Mainz Hard coal 750 open
RWE Power Lingen Gas (CCGT)*) 875 open
N-Ergie Dettelbach Gas 800 open
Gesellschaft fr Stromwirtschaft open Gas 400 open
Electrabel Saarland Gas 400 open
Total 18,680
*) CCGT = Combined Cycle Gas Turbine.
Source: VDEW 2005, public press releases.
98
Utilities - Electricity - Generation - Market Data
Planned Power Plant Projects in Germany (II)
Duesseldorf
Munich
Schwerin
Dresden
Herne
Mainz
Saarbruecken
Hamburg
Lubmin
Neurath
Lingen
DattelnHamm
Weisweiler
DuisburgHerdecke
Hrth
Blaubeuren
Dettelbach
Irsching
Boxberg
Bremen
HamburgMoorburg
Being built
Planned
Optional
Source: VDEW 2005, public press releases.
99
Utilities - Electricity - Generation - Market Data
German Merit Order: Theoretical Power Pricing With and
Without Emissions Trading
Market price incl. CO2
Market price excl. CO2
CO2 costs of fossil fuel-
fired power plants
variable costs of power plants (excl. CO2)Must run3)
Nuclear
Hard
coal
new
Hard
coal
old
Lignite
old
CCGT2)
new
Pow
er p
rice
Power installed
Assumed range of power demand
Marginal plant
OCGT1)
old
Lignite
new
Impact of emissions trading
on power price
1) OCGT: Open Cycle Gas Turbine.
2) CCGT: Combined Cycle Gas Turbine.
3) Must run: run-of-river, wind, CHP.
Source: RWE.
100
Utilities - Electricity - Generation - Market Data
Installed national generating capacity
+ Hydro power stations
+ Nuclear power stations
+ Fossil fuel power stations
+ Renewable energy sources (other than hydro)
+ Not clearly identifiable energy sources
= National net generating capacity
- Unusable capacity
Of which mothballed capacity
- Reserve capacity
- Outages and overhauls (fossil fuel power stations)
= Reliable available capacity
- Load
Remaining capacity
UCTE Systematic for Evaluating the Remaining
Generation Capacity in Europe*)
*) Equivalent with the definition of the remaining capacity of Verband der Netzbetreiber VDN e.V.
beim VDEW (German Interconnected Power Grid Association).
101
Utilities - Electricity - Generation - Market Data
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
02 02 04 04 05 05 06 06 08 08 10 10 15 15
Europe:
Capacity Bottlenecks in Summer and Winter
80
70
60
50
40
30
20
10
0
Remaining power generation capacity1) 2002 20152)
in GW
1) Assumption: only new power plants whose commissioning can be considered as sure are taken into account.
2) Basis: third Wednesday, 11 a.m. Nuclear phaseout in Germany included.
Source: Union for the Coordination of Transmission of Electricity (UCTE):
System Adequacy Forecast 2002, 2004 and 2006 2015.
102
Utilities - Electricity - Generation - Market Data
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
02 02 04 04 05 05 06 06 08 08 10 10 15 15
Germany:
Capacity Bottlenecks in Summer and Winter
10
8
6
4
2
0
Remaining power generation capacity 2002 2015*)
in GW
Domestic generating plant capacity Germany: 119.4 GW (2005)
*) Basis: third Wednesday, 11 a.m. Nuclear phaseout included.
Source: Union for the Coordination of Transmission of Electricity (UCTE):
System Adequacy Forecast 2004 2010 and Forecast 2006 2015 (www.ucte.org).
Substantial generation capacity taken out (RWE: 3 GW already taken out)
Some capacity only available part-time (e.g. wind)
Increased volatility causes increased optionalities
103
Utilities - Electricity - Generation - Market Data
Reliable available capacity
1) Accounts for low water volume, wind shortfalls, official requirements,
long-term plant conservation and capacity unusable due to permits.
2) Reserves for grid operator system services.
3) Outages and overhauls of thermal power plants.
Source: Union for the Coordination of Transmission of Electricity (UCTE).
Remaining Power Generation Capacity in Europe
Status: December 21, 2005
in GW
Status: December 15, 2004
in GW
109.7
23.7
28.7
= 431.1= 440.3
593.2611.3
34.0
110.0
27.0
Unusable capacity1)
Total European
power plant capacity
Reserve capacity2)
Outages and overhauls3)
360.6369.5 Load
3.48.2 Import balance
Remaining capacity 70.670.8
104
Utilities - Electricity - Generation - Market Data
Reliable available capacity
1) Accounts for low water volume, wind shortfalls, official requirements,
long-term plant conservation and capacity unusable due to permits.
2) Reserves for grid operator system services.
3) Outages and overhauls of thermal power plants.
Source: Verband der Netzbetreiber VDN e.V. beim VDEW (German Interconnected Power Grid Association).
Remaining Power Generation Capacity in Germany
Status: December 16, 2004
in GW
Status: December 15, 2005
in GW
17.9
7.2
3.5
= 86= 82.7
114.6119.4
6.8
22.8
7.1
Unusable capacity1)
Total German power plant
capacity
Reserve capacity2)
Outages and overhauls3)
77.276.7 Peak load
0.20.5 Import balance
Remaining capacity 8.86.0
105
Utilities - Electricity - Generation - Market Data
Starting Point:unbalanced grid situation
(e. g. power station breakdown)
Primary Automatic control at the
generator/turbine
Normally coal-fired or nuclear
power plants
Secondary Manual control by the
grid operator
Normally pumped storage
Minute reserve
Manual control by the power
plant dispatcher
Normally coal and gas fired
power plants
Balancing Power: How Does it Work?
0:00
15:00
30:00
Grid un-balanced
Balanced
grid
situation
Minutes Power station breakdown
0:30
106
Utilities - Electricity - Generation - Market Data
Factors Exerting a Major Influence on Electricity
Wholesale Prices
CO2 prices
Gas prices
Oil prices
Coal prices
Time of day
Thermal power plants
Power plants/grids
Lighting/end consumer behavior
Windpower plants
Hydro storage and run-of-river power plants
Air con-ditioners/elec-
tric heaters
Lighting
Uranium prices
Long-term factors
Cyclical fluctuation Political decisions Capacity expansion
Electricityprices
Factors of supply Factors of demand Factors of supply and demand
Wind
Precipitation
Temperature
Clouds
Revisions
Technical
faults
Vacations
Public holidays
107
Utilities - Electricity - Generation - Market Data
0 5 10 15 20 25 30 35 40 45 50 weeks
Stable Recovery of Wholesale Power Prices (I)
64
60
56
52
48
44
40
36
32
28
24
20
16
Forward prices for base-load*) power at the wholesale level
(Monthly averages for yearly production traded in prior years)
in /MWh
Ongoing price drivers
Growing capacity constraints
Higher cost of fuel
CO2 emissions trading
Wholesale prices have risen, but are still below new entrant levels.
2006 in 2005
2007 in 2006
2005 in 2004
2004 in 2003
2003 in 2002
2001 in 2000
2002 in 2001
*) As of July 2006.
Source: RWE Trading.
108
Utilities - Electricity - Generation - Market Data
Stable Recovery of Wholesale Power Prices (II)
Forward prices for peak-load*) power at the wholesale level
in /MWh
*) As of July 2006.
Source: RWE Trading.
Ongoing price drivers
Growing capacity constraints
Higher cost of fuel
CO2 emissions trading
Wholesale prices have risen, but are still below new entrant levels.
0 5 10 15 20 25 30 35 40 45 50 weeks
86
80
74
68
62
56
50
44
38
32
26
20
2006 in 2005
2007 in 2006
2005 in 2004
2004 in 20032003 in 2002
2001 in 2000
2002 in 2001
109
Utilities - Electricity - Generation - Market Data
Jun Dec Jun Dec Jun Dec Jun Dec Jun
02 02 03 03 04 04 05 05 06
Since the End of 2003 France Has Been a Net Importer
of Electricity from Germany Most of the Time
3,000
1,500
0
- 1,500
- 3,000
- 4,500
- 6,000
- 7,500
Monthly cross border nominations: France Germany
in MW
Source: Rseau de Transport d'Electricit (French transport system operator), 2006.
G
> F
F
> G
max| min monthly mean
110
Utilities - Electricity - Generation - Market Data
Comparison of Wholesale Prices in European Power Markets
January
2005
UK Netherlands- - - France Germany Nordpool (Scandinavia)
Source: RWE Trading.
in /MWh
Absolute development of 2007 base load forward prices
85
80
75
70
65
60
55
50
45
40
35
30
25
May Jul Sep Nov Jan Mar May Jul
05 05 05 05 06 06 06 06
111
Utilities - Electricity - Generation - Market Data
Electricity Prices in the UK
in /MWh
Forwards for 2005 Forwards for 2006 Forwards for 2007
Jun
04
Aug
04
Oct
04
Dec
04
Feb
05
Apr
05
Jun
05
Aug
05
Oct
05
Dec
05
Feb
06
Apr
06
Jun
06
Aug
06
70
65
60
55
50
45
40
35
30
25
20
15
10
70
65
60
55
50
45
40
35
30
25
20
15
10
- - - Wholesale peak*)
Wholesale base*)
*) At the end of the relevant month.
Normal thermal efficiencies assumed.
1) OCGT: Open Cycle Gas Turbine.
2) CCGT: Combined Cycle Gas Turbine.
Source: RWE.
112
Utilities - Electricity - Generation - Market Data
UK Merit Order: Theoretical Power Pricing With and Without
Emissions Trading (at Wintertime with High Gas Prices)
Market price excl. CO2
Market price incl. CO2
Must
run
Pow
er p
rice
Power installed
Assumed range of power demand
Marginal plant
Nuclear
CO2 costs of fossil
fuel-fired power plants
Coal CCGT2) Oil
OCGT1)
variable costs of power plants (excl. CO2)
113
Utilities - Electricity - Generation - Market Data
Coal Price Development
Sep
05
Nov
05
Jan
06
Mar
06
May
06
Jul 0
5
May
05
Mar
05
Jan
04
Nov
03
Mar
04
May
04
Jul 0
4
Sep
04
Nov
04
Jan
05
Mar
02
May
02
Jul 0
2
Nov
02
Sep
02
Jan
03
Mar
03
May
03
Sep
03
Q4
2006
Q3
2006
2007
Jul 0
3
in /t coal equivalent (ce)
CIF-NW Europe
- - - - Forward TFS (Traditional Financial Services Ltd.)1)
BAFA2) monthly
- - - - BAFA2) monthly (expected)
1) As of August 4, 2006.
2) Bundesamt fr Wirtschaft und Ausfuhrkontrolle (Federal Office of Economics and Export Control).
BAFA2) 200244.57 /t ce
CIF-NWE 200343.74 /t ce
BAFA2) 200339.87 /t ce
BAFA2) 200455.36 /t ce
CIF-NWE 200557.27 /t ce
BAFA2) 200565.02 /t ce
CIF-NWE 200467.44 /t ce
CIF-NWE 200239.40 /t ce
85
80
75
70
65
60
55
50
45
40
35
30
Jan
Mar
Nov
99
Jan
00
Mar
00
May
00
Jul 0
0
Sep
00
Nov
00
Jan
01
Mar
01
May
01
Jul 0
1
Sep
01
Nov
01
Jan
02
Mar
02
May
02
Jul 0
2
Sep
02
Nov
02
Jan
03
Mar
03
May
03
Jul 0
3
Sep
03
Nov
03
Jan
04
Mar
04
May
04
Jul 0
4
Sep
04
Nov
04
Jan
05
Mar
05
May
05
Jul 0
5
Sep
05
Nov
05
Jan
06
Mar
06
May
06
Jul 0
6
16.66
11.279.35
40.00
34.50
21.50
27.00
12.65
114
Utilities - Electricity - Generation - Market Data
South Africa
USA East Coast
Australia
- - - - Colombia
Development of Sea Freight Rates for Hard Coal
45
40
35
30
25
20
15
10
5
0
in $/t
Source: Frachtcontor Junge Co., VDKI.
11.21 10.90
42.40
31.20
17.40
22.6020.23
12.88
115
Utilities - Electricity - Generation - Market Data
Main Sea Freight Trading Routes for Hard Coal
INDONESIA
SOUTH AFRICA
CHINA
COMMONWEALTHOF INDEPENDENTSTATES
POLANDCANADA
USA
COLOMBIA/VENEZUELA
To theFar East
27
28
63
71
1165
72
129
234
AUSTRALIA
Canada/USA
API# 2
API# 4
API#3
Major products traded on worldwide coal markets
API#2 The TFS API#2 is a monthly basket index for the ARA (harbours of Amersterdam, Rotterdam, Antwerpen) coal price
with a basis of 6,000 Kcal/kg, CIF, ARA, NAR (net as received) calculated on the last business day of the month.
Calculation: (MCIS NWE Steam Coal Marker Price + International Index) divided by 2.
API#3 The TFS API#3 is a weekly (every Friday) basket index price with a basis of 6,700 Kcal/kg, GAD (gross air dryed)
FOB Newcastle (Australia) and published on a weekly and a monthly average basis. Calculation: (FOB Newcastle
Price + Barlow Jonker Index (BJI)) divided by 2.
API#4 The TFS API#4 is a weekly (every Friday) basket index price with a basis of 6,000 Kcal/kg, NAR FOB Richards Bay
(South Africa) and published on a weekly and a monthly average basis. Calculation: (FOB Richards Bay Price
ascertained by McCloskey + SACR Spot Coal Price Index + FOB Richards Bay Price ascertained by Argus Media)
divided by 3.
API = All Publications Index
CIF = Cost, Insurance, Freight
CIS = Commonwealth of Independant States
FOB = Free On Board
The TSF API was a registered trade mark of the Tradition Financial Services Company (TSF).
The TSF ascertains different API prices by a price survey from Argus Media and McCloskey.
API-Index was renamed from July 2005 on in AM API#... (A for Argus Media and M for McCloskey).
Source: Verein der Kohleimporteure (Coal Importers Association), 2006.
Hard Coal Seaborne Trade 2005: 722 Million t
in million t
116
Utilities - Electricity - Generation - Market Data
Tightening UK Generation Volume Margins Will Drive
a Sustained Increase in Wholesale Prices
2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010
Annual Volume
in TWh
450
400
350
300
250
200
150
100
50
0
Nuclear
Combined-cycle gas turbine
Coal with flue gas desulphurisation
Coal without flue gas desulphurisation
Interconnector
Forecast of National Grid Company
Forecast supply/demand balance
(Mar 2004 to Sep 2010)
402414 414 407 398
358 358
Step change in
2008 owing to
tougher Large
Combustion Plant
Directive*) emission
limits
Demand
curve
*) Large Combustion Plant Directive is a legislation of the European Union
to limit the emissions of sulphur dioxide, nitrous oxides and fine dust particles.
Source: RWE npower, forecast of National Grid Company.
117
Utilities - Electricity - Generation - Market Data
From 2008, UK coal and oil-fired power stations will be governed by the Large Combustion Plant
Directive. This sets new limits on the amounts of Sulphur Dioxide (SOx), Nitrous Oxides (NOx) and
dust power stations can emit.
Step 1Power stations must choose whether to be part of LCPD or to request a limited life
derogation (opt out).
Power stations which opt-out are allowed to run for 20,000 hours, or until 2015, which
ever comes sooner.
Step 2Those power stations which are part of LCPD must choose to be governed in one of
two ways:
Emission Limit Value (ELV)
The power station must meet specific limits to the amounts of pollutants produced on
a milligramme per cubic metre of waste gas basis.*)
National Emission Reduction Plan (NERP)
A company is given an overall allowance (= bubble: amount of a pollutant that can be
emitted per year) of emissions it may produce.*)
*) Due to the Environment Agency regulatory framework, those stations which choose ELV will be allocated an annual limit
of emissions (called a company B limit) and those stations that choose NERP will be allocated site specific annual
emission limit values.
The UK Large Combustion Plant Directive
118
Utilities - Electricity - Generation - RWE
RWE Power Generation: No 2 in Europe
Germany*) UK Hungary Austria
RWE Market Shares in European Power Generation
by Core Region (2005)
100
50
40
30
20
10
0
in %
16
32
1
9
EU 25 (2005): about 3,000 TWh
*) Of which RWE Power: 6%, RWE npower: 1%.
Source: 2005 annual reports; RWE estimates.
*) Including contracted generation.
Others 56%
EdF (incl. EnBW) 19%
RWE*) 7%
E.ON 7%
Vattenfall 6%
Enel (incl. SE, pro forma) 5%
119
Utilities - Electricity - Generation - RWE
RWEs Share in German Power Generation Market1)
Relative to Peers (2005)
RWE (181 TWh) 32%2)
E.ON (130 TWh) 23%
Others (121 TWh) 21%
Vattenfall Europe (80 TWh) 14%
EnBW (56 TWh) 10%
1) Base: Net Generation in Germany (including self generators): 568 TWh.
2) Including contracted generation.
Source: Annual reports; RWE calculations.
120
Utilities - Electricity - Generation - RWE
RWE Group Electricity Production
by Primary Fuel (2005)
Lignite Hard coal Nuclear Gas Water Electricity
and others purchases
100
80
60
40
20
0
in bn kWh
Total bn kWh: 317.8*)
27.3
45.1
98.3
29.5
64.0
7.1
76.0
RWE capacity Contractually secured capacity
*) The difference between 317.8 TWh of power generation output and 299.1 TWh of electricity sales
is explained by grid losses.
2.5
121
Utilities - Electricity - Generation - RWE
RWE Group Power Plant Capacity by Region (2005)
in MW
Germany UK Other Total
International
Lignite 10,135 714 10,849
Nuclear 6,308 6,308
Hard coal 9,580 4,415 13,995
thereof long-term contracts 6,487 6,487
Gas 4,133 2,962 1 7,096
Water and others 3,262 1,537 222 5,021
thereof long-termcontracts 2,261 2,261
Total 33,418 8,914 937 43,269
RWE Group Electricity Production by Region (2005)
Germany UK Other Total
International
Lignite 70.9 5.1 76.0
Nuclear 45.1 45.1
Hard coal 46.2 17.8 64.0
thereof contracts 29.5 29.5
Gas 12.5 14.8 27.3
Water and others 5.8 0.8 0.5 7.1
thereof contracts 2.5 2.5
Subtotal 180.5 33.4 5.6 219.5
Electricity purchases*) 52.0 25.6 20.7 98.3
Total 232.5 59.0 26.3 317.8
in bn kWh
*) Net, excluding trading.
RWE 83%
RAG (STEAG) 9%
E.ON 5%
Others 3%
122
Utilities - Electricity - Generation - RWE
The Role of Electricity Purchase Agreements
at RWE Power in Germany (2005)
Total Capacity*): 33.4 GW
Total Generation: 183.2 TWh
RWE has full entrepreneurial control over power plants
Long-term contracts from fossil-fired and hydro power plants
RWE can use most outside purchases until the end of the power plants useful life
Pricing is largely dependent on generation costs (fuel, CO2)
RWE 74%
RAG (STEAG) 11%
Others 9%
E.ON 6%
*) As of December 31, 2005.
123
Utilities - Electricity - Generation - RWE
Electricity Production by Renewable Energies (2005)
RWE Power
in GWh
Power Plant Capacity by Renewable Energies (2005)
in MW
2,792
90
368
2,334 Water
Wind
Others
RWE npower
686
782
96 Water
Wind
RWE Power
10144
654
500
Wind
Water
Others
RWE npower
316
263
53
Wind
Water
124
Utilities - Electricity - Generation - RWE
2005 2004
Installed capacity of wind power in Germany as of 12/311) MW 17,743 16,394
of which in the RWE control zone MW 3,165 2,960
Wind energy generation in Germany1) TWh 26 26
of which in the RWE control zone TWh 4.5 4.1
Average wind power fed into the RWE control zone MW 514 466
Compensation to be paid for electricity generated from
wind power under the Renewable Energies Act2) million 2,314 2,350
of which to be paid by customers in the RWE control zone million 875 910
RWEs Key Figures for Wind Power (2005)
Wind power production by region: 1,054 GW
Wind power capacity by region: 447 MW
1) Source: Institut fr Solare Energie Versorgungstechnik (ISET), 2006.
2) Source: Verband der Netzbetreiber VDN e.V. beim VDEW (German Interconnected Power Grid Association), 2006.
UK 65%
Other international 29%
Germany 6%
UK 59%
Other international 30%
Germany 11%
125
Utilities - Electricity - Generation - RWE
RWE Group Generation Output and Capacity
by Load Factor (2005)
Output
1) Base in Germany: lignite, nuclear, coal (70%),
run-of-river, renewables, gas (cogeneration);
base in the UK: coal (70%), gas, renewables, water;
base for other international: lignite (70%), gas (70%),
water, renewables.
2) Peak in Germany: coal (30%), gas (condensation), oil,
pump storage;
peak in the UK: coal (30%), oil;
peak other international: lignite (30%), gas (30%),
water, renewables.
Capacity
3) Base in Germany: lignite, nuclear, coal (50%),
run-of-river, renewables, gas (cogeneration);
base in the UK: coal (50%), gas, renewables, water;
base for other international: lignite (50%), gas,
water, renewables.
4) Peak in Germany: coal (50%), gas (condensation), oil,
pump storage;
peak in the UK: coal (50%), oil;
peak for other international: lignite (50%).
Base load1) 81%
Peak load2) 19%
Base load3) 64%
Peak load4) 36%
126
Utilities - Electricity - Generation - RWE
RWEs German Power Plant Portfolio (2005) I
Power plant Net Commissioned RWEs consolidated Partner
capacity stake stake
in MW in % in MW in %
Lignite
Frimmersdorf 2,161 1957 1970 100.0 2,136
Neurath 2,083 1972 1976 100.0 2,056
Niederaussem 2,662 1963 1974 100.0 2,607
Goldenberg 155 1993,1994 100.0 151
Weisweiler 2,047 1955 1975 100.0 2,041
Niederaussem (BoA1) 965 2003 100.0 920
Berrenrath 88 1939+1993 100.0 52
Fortuna Nord 82 100.0 54
Wachtberg 171 1901+1987, 1988 100.0 118
Total lignite 10,414 10,135
Nuclear
Biblis A 1,167 1975 100.0 1,167
Biblis B 1,240 1977 100.0 1,240
Gundremmingen B 1,284 1984 100.0 1,284 E.ON 25.0
Gundremmingen C 1,288 1985 100.0 1,288 E.ON 25.0
KKW Emsland 1,329 1988 100.0 1,329 E.ON 12.5
Total nuclear 6,308 6,308
Hard coal
Ensdorf C 282 1971 100.0 282
Ibbenbren 709 1985 100.0 709
GW Bergkamen A 684 1981 100.0 684 Steag 49.0
Westfalen A - C 588 1963, 1969 100.0 588
Rostock 508 1991 24.6 125 E.ON 50.4VattenfallEurope 25.0
Werne Kv2 720 1984 100.0 605
Hoechst (Swag) 108 100.0 0
VSE unit 1 106 1994 100.0 95
Harpen HKW Schnweide 5 5
Total hard coal 3,710 3,093
127
Utilities - Electricity - Generation - RWE
RWEs German Power Plant Portfolio (2005) II
Power plant Net Commissioned RWEs consolidated Partner
capacity stake stake
in MW in % in MW in %
Gas
Emsland B 410 1973 100.0 410
Emsland C 410 1974 100.0 410
Gersteinwerk F 410 1973 100.0 410
Gersteinwerk G 410 1973 100.0 410
Gersteinwerk H 55 1973 100.0 55
Gersteinwerk I 410 1973 100.0 410
Werne Kv 1 112 1984 112
KW Bochum/Dortmund 33 1957, 1963 100.0 32
GuD Ludwigshafen 396 1997 100.0 396
GuD Dormagen 290 1979 100.0 290
GuD Dormagen 341 1979 100.0 341
KW Huckingen 466 1975, 1976 100.0 466
KW Huckingen 114 1976 100.0 114
TKS Hamborn 225 2003 100.0 0
Gasmotoren Goldenberg 4 2004 4
Harpen KWK power plants 44 100.0 44
SWAG 0 78.0 0
enviaM (miscellaneous
participations) 424 100.0 208
9.9 0 Various 90.1
40.0 0 SW Halle 40.0GmbH
LEW Peissenberg 12 1987, 1990 100.0 12
LEW Aviko 10 2000 100.0 10
Total gas 4,576 4,133
Oil
KW Scholven Bl. G 672 1974 50.0 0 RuhrEnergie 50.0
Sermuth (enviaM) 17 1995 100.0 17
Grokayna (enviaM) 119 1993 100.0 119
Total oil 808 136
128
Utilities - Electricity - Generation - RWE
RWEs German Power Plant Portfolio (2005) III
Power plant Net Commissioned RWEs consolidated Partner
capacity stake stake
in MW in % in MW in %
Water run-of-river
KW Laufwasser(RWE Power AG) 198 100.0 196
RADAG 80 100.0 80
Harpen Wasser(incl. Saarwasser) 69 100.0 69
SWAG Wasser 17 100.0 17
enviaM Wasser 8 before 1990 100.0 8
LEW Wasser 164 153
536 523
Storage Water / pump-storage
KW Kpchenwerk 153 1989 100.0 153
Harpen Germany 35 100.0 35
188 188
Total water 724 711
Other renewables
Harpen (solar) 1 100.0 1
enviaM (wind) 22 1999 2003 100.0 22
Harpen (wind) 11 100.0 11
Harpen (biomass) 9 2003 100.0 9
Harpen (used wood) 20 2004 100.0 0
Landfill gas-to-energy plant 3 1994/95/97 100.0 3
enviaM (biomass) 11 2003 100.0 11
Windpark Westerwald 18 2005 100.0 18
Total other renewables 95 75
Other
KW Karnap 37 1987 100.0 37
Marsberger KW 22 1996 75.0 7
MVA Weisweiler 35 1996 100.0 35
SRS Ecotherm 1 2003 100.0 1
Total others 95 80
Total German own capacity 26,730 24,670
129
Utilities - Electricity - Generation - RWE
RWEs German Power Plant Portfolio (2005) IV
Power plant Net Commissioned RWEs consolidated Partner
capacity stake stake
in MW in % in MW in %
Contractually
secured capacity
STEAG (hard coal) 3,286 3,026
RuhrEnergie (hard coal) 2,011 2,111 (incl. Scholven G 50%)
SaarEnergie (hard coal) 794 794
Other hard coal 541 556
Schluchsee 865 870
SEO Vianden 1,096 1,096
Other water/others 733 295
Total contractuallysecured capacity 9,326 8,748
Total German capacity 36,056 33,418
130
Utilities - Electricity - Generation - RWE
RWEs Foreign Power Plant Portfolio (2005) I
Power plant Net Commissioned RWEs consolidated Partner
capacity stake stake
in MW in % in MW in %
UK capacity
Hard coal
Aberthaw 1,455 1971 79 100.0 1,455
Tilbury B 1,020 1968 72 100.0 1,020
Didcot A 1,940 1972 75 100.0 1,940
Total hard coal 4,415 4,415
Gas
Little Barford 635 1994 100.0 635
Didcot B 1,400 1996 97 100.0 1,350
Great Yarmouth 420 100.0 420
Cogeneration
Aylesford Newsprint 98 1994 100.0 98
BASF 75 1997 100.0 75
Bridgewater Paper 58 2000 100.0 58
Chirex 0 1994 100.0 0
Dow Corning 22 1998 100.0 22
Esso Fawley 135 1999 100.0 135
Fort James 9 1995 100.0 9
Huntsman Tioxide 20 2003 100.0 20
Whitegate 6 1998 100.0 6
Lancaster University 2 1994 100.0 2
Lindsey Oil Refinery 38 1996 100.0 38
Philips Petroleum 58 1999 100.0 58
Rhodia Oldbury 4 1993 100.0 4
Rhodia Whitehaven 9 1994 100.0 9
SCA Hygiene Products 7 1999 100.0 7
Millenium Inorganic Chemicals 16 1995 100.0 16
Total gas 3,012 2,962
Oil
Littlebrook D 1,000 1982 84 100.0 1,000
Fawley 484 1969 70 100.0 484
Total oil 1,484 1,484
Water
Various Hydro 53 100.0 53
Total water 53 53
131
Utilities - Electricity - Generation - RWE
RWEs Foreign Power Plant Portfolio (2005) II
Power plant Net Commis- RWEs consol- Partner
capacity sioned idated stake stake
in MW in % in MW in %
Renewables
Kirkby Moor 0 1993 33.3 0
Taff Ely 9 1993 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Bryn Titli 10 1994 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Trysglwyn 6 1996 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Carno 34 1996 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Novar 17 1997 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Llyn Alaw 20 1997 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Mynydd Gorddu 10 1998 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Bein Ghlas 8 1999 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Lambrigg 7 2000 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Tow Law 2 2001 33.3 0 Englefield Capital UP 33.3%, F.I.I.B. 33.3%
Bears Down 10 2001 100.0 0
Causeymire 48 2004 100.0 0
North Hoyle 60 2003 100.0 0
Windy Standard 22 1996 100.0 0
Total renewables 263 0
Total UK capacity 9,227 8,914
Other foreign capacity
Matrai (Hungary)/lignite 697 1967 100.0 697 EnBW 21.6MVM 25.5
Harpen (Czech Republic),HKW Nachod/lignite 17 1970 17
Harpen, KWK/gaspower plants abroad 1 100.0 1
TE Plomin d.o.o.(Croatia)/hard coal 0 1999 50.0 0 HEP 50.0
Toledo (Spain)/solar 0 1994 33.3 0 Endesa 33.3
SKO ENERGO(Czech Republic)/hard coal 0 1998 21.0 0 E.ON 21.0
Harpen (France)/water 57 100.0 57
Harpen (Spain/AERSA)/water 12 100.0 12
Harpen (Spain/AERSA+Grisel)/wind 119 100.0 119
Harpen (Italy)/water 11 100.0 11
Harpen (Italy)/wind 14 100.0 14
Harpen (Portugal)/water 9 100.0 9
Total other foreign capacity 937 937
Total foreignactivities 10,164 9,851
Total own and contractuallysecured capacity 46,220 43,269
132
Utilities - Electricity - Generation - RWE
The RWE Power Divisions Power Plant Portfolio
(2005)*)
Capacity
33.7 GW
Generation
183.2 TWh
Capacity
32.7 GW
Generation
177.6 TWh
Continental Europe Germany
*) Including power plants that are not owned by RWE but which RWE can freely use thanks to long-term agreements.
9%
12%
19%
28%
3%6%
25%
25%
41%
9%
12%
19%
29%
31%
3%6%
25%
26%
40%32%
Others
Natural gas
Nuclear energy
Hard coal
Lignite
Hamburg
Berlin
Cologne
Frankfurt am Main
Stuttgart
Munich
EssenDortmund
Rostock
133
Utilities - Electricity - Generation - RWE
RWE Powers Major Power Plants in Germany
Lignite
Nuclear
Hard coal
Gas
Oil
Combined-cycle gas
turbine power plant
134
Utilities - Electricity - Generation - RWE
RWE npowers Major Power Plants in the UK (2005)
8.41) GW of conventional generation capacity (10% market share)
Flexible and diversified portfolio (coal: 52%, gas: 30%, oil: 18%)
1) Large-scale generation only.
2) CCGT: Combined Cycle Gas Turbine.
Source: ILEX Energy Consulting Ltd.
Didcot A 1,940 MW
Aberthaw B 1,455 MW
Didcot B 1,400 MW
Fawley 484 MW
Great Yarmouth 420 MW
Little Barford 635 MW
Littlebrook D 1,000 MW
Tilbury B 1,020 MW
Gas
Coal
CCGT 2)
Oil/Gas
135
Utilities - Electricity - Generation - RWE
Age Structure of the RWE Power Divisions German
Plant Portfolio
Optimized lifetime extension
2005
Duration 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Nuclear energy
Hard coal
Lignite
Gas
Extension of normal service life/contract (possible, planned, already completed in part)
Excluding nuclear phase-out
Excluding hydro power and pumped storage.
Subject to 45-year normal service life or the current contractual term of outside purchases.
The average lifetime of RWE Powers German power plants is 28 years.
136
Utilities - Electricity - Generation - RWE
German average2) Highest thermal efficiency
Nuclear Lignite Coal Gas
Thermal Efficiency of RWEs German Power Plants
Weighted degree of efficiency
in %
50
40
30
20
10
0
3335
1) Lignite-fired power plant with optimized technology.
2) Including capacities of power plants owned by RWE.
Emsl
and
40
47
37 39
34
43
BoA
11)(B
lock
K in
Nie
dera
usse
m)
Wer
ne
CC
GT
in D
orm
agen
137
Utilities - Electricity - Generation - RWE
RWEs Strategy for Upgrading the UK and
German Power Plant Portfolio
Growth
Replacement
Breakdown of
generation capex Examples of initiatives 2006 2010
decision to be taken
Growth initiatives
Great Yarmouth (420 MW CCGT)
Pembroke/Staythorpe (up to 2,000 MW CCGT)
Renewables (ca. 700 MW)
Customer IPPs (200 600 MW CCGTs)
Replacement initiatives
Neurath BoA 2/3 (2,100 MW lignite)
Hamm (1,500 MW hard coal)
800 MW CCGT in Germany
?
?
?
?
?
138
Utilities - Electricity - Generation - RWE
1957 1972 1987 2003
Lignite-Fired Power Generation:
Higher Efficiency, Less CO2
Thermal efficiency
in %
Drop in CO2 emissions in million t/a
due to new 1,000 MW power plant
50
40
30
20
10
0
= 31%1957
> 43%2003
- 30%
1957
Frimmersdorf:
150 MW
= 31
1975
Weisweiler
600 MW
= 36
2003
Niederauem:
BoA
1,000 MW
> 431966Frimmersdorf:
300 MW
= 32
1970
Niederauem:
300 MW
= 34
9,7
6,8
139
Utilities - Electricity - Generation - RWE
10 11 9 9 5 4 3 3 3 3 3
RWE Lignite Production in the Rhenish Mining Area
in million t lignite
120
100
80
60
40
20
0
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020Number
of
mines
Actual values
Frimmersdorf-Sd
Fortuna-Garsdorf
Frechen Bergheim
SdrevierInden
Zukunft-West
Frimmersdorf-West
Garzweiler I
Hambach I
Inden I + II
Garzweiler II
Mining capacity
Position: February 2006.
140
Utilities - Electricity - Generation - RWE
Results of German Nuclear Consensus Talks:
810 TWh Nuclear Electricity Production for RWE
1975 80 85 90 95 2000 05 10 15 20 2025
Biblis A
Biblis B
Gundremmingen B
Gundremmingen C
Mlheim-Krlich
Emsland
What does this mean for RWEs nuclear power plants?
Presumed remaining operational lifetime given high capacity utilization.
62.0 TWh
81.5 TWh
161.0 TWh
168.4 TWh
107.25 TWhCapacity to be transferred:
230.0 TWh
141
Utilities - Electricity - Generation - RWE
RWE Powers Decommissioning Concept for Nuclear
Power Plants
25 30% about 50% 20 25%
share of costs share of costs share of costs
Post operation
phase
Nuclear decommissioning/
dismantling
Dismantling
Final disposalConventional
dismantling/
demolition
Power production
has ceased.
Technical infra-
structure has to be
operated further on.
Fuel elements mean-
while cool down in
pond storage to be
suitable for dry cask
(CASTOR) storage.
Decommissioning of
contaminated buildings/
components
Decommissioning of
buildings/components
which are no longer
under legislation of
the German Nuclear
Act.
5 7 years 10 12 years 2 3 years