Disclaimer
1
The information contained herein is for informational purposes only and may
not be used, copied or distributed without the prior written consent of E.ON SE.
It represents the current view of E.ON SE as of the date of this presentation.
This presentation is not to be construed as an offer, or an amendment,
novation or settlement of a contract, or as a waiver of any terms of a contract
by E.ON SE. E.ON SE does not guarantee the accuracy of any of the
information provided herein.
SIEW 2014 keynote address: Navigating the global energy transition
Dr.-Ing. Leonhard Birnbaum E.ON SE, Member of the Board of Management Singapore, October 27th, 2014
E.ON: who are we?
1 Including electricity generation from hydro, wind, biomass and solar PV 2 Based on 2012 market data
3 Including Russia, US Renewables, JV Enerjisa (Turkey), ENEVA (Brazil) 4 Including 9m customers from JV Enerjisa
9 bcm gas storage
35m
sales customers4
300 TWh gas supply portfolio
global #3 in offshore wind2
29 billion kWh electricity produced from renewable technologies1,
equivalent to demand of 3m homes
5 bcm LNG regas capacity in Europe
14 GW generation capacity
outside of Europe3
40 GW conventional generation
capacity in Europe
62,000 employees
ranked #15 in
Fortune Global 500
Strictly confidential
Energy industry transformed in recent years by innovation and technology-driven changes
Scale of renewables Cheaper solar power Hydraulic fracturing
139 GW 17 GW
318 GW
2000 2013 2000 2013
1 GW
Global
Photovoltaic Global Wind
Europe 2013: 72%
of new installations
(22% in 2000)
1980 1990 1990 1990
1990 1990 2000
1990 1990
2010
Price down by 20% for
every doubling of
capacity
US gas 2012 20401 Net importer
of 42 bcm Net exporter
of 165 bcm
Increase in gas
resources changes
global macro picture
Mo
du
le P
rice
Cumulative Production
Source: E-World Energy
Germany has become the world’s laboratory for the energy transition
Unintended consequence of the German energy transition: the rapid demise of gas-fired generation
Change in load curve
35
45
55
65
0:00 2:00 4:00 6:00 8:00 10:0012:0014:0016:0018:0020:0022:00
Juli 10, durchschnittl. Last
Last - PV Juli 12 (29 GW Kapaz.)
6
German generation capacity
Despite efforts of the transition German power is now…
more carbon-intensive less stable more expensive
Energy transition not solely a German trend: EU has set ambitious targets to 2030
8
Renewable
Energy
Carbon Reduction Energy Efficiency
27% 20%
13%
Targets for 2020 Current Targets for 2030 (approved by EU Council Oct 24, 2014)
Source: EU Commission
20%
40%
18%
20% 27%
Strictly confidential
Looking forward: Megatrends will guide future innovation…
9
RISE OF THE INDIVIDUAL
ACCELERATED
NEW SOCIETY & ECONOMY
SUSTAINABILITY TECHNOLOGY
Strictly confidential
10
Individual Solutions
…and drive changes within the energy world
Centralized power production
Centralized gas supply
Same service for all customers
Pricing, reliability of supply and
environmental standards driven by
government
Significant economies of scale regarding
efficiency leading to large scale assets
Glocalization
Distributed generation (PV)
Distributed / mobile IT
Distributed flexibility (batteries)
Combined with services
Individual sales channels
Innovation
Centralized System
Challenge #1: building smarter energy systems
Cleaner & better
conventionals
Smart cities &
Microgrids Renewables E-Mobility &
Gas for Transport
Latin America Africa
North America Middle East
Oceania
Europe
+95 bcma
Asia
+344 bcma
38 (+38)
21 (+21)
4 (+1)
23 (+8)
35 (+8)
15 (+3)
63 (-4)
121 (+91)
90 (-19)
10 (+7)
Source: Wood Mackenzie
3 (-3)
+29 bcma from 2013 Atlantic Basin
+139 bcma from 2013
Pacific Basin
Americas
+21 bcma
Asia
Global LNG trade growth 2013-20
+49%
Middle East
+14 bcma
Challenge #2: building smarter energy supply chains
Seaborne LNG trade to 475 bcma by 2020
with Europe acting as a balancing market
Challenge #3: building smarter energy partnerships