Investment Strategy in Britain unveiled by ESB International

On Friday, November 21st ESB International unveiled plans to significantly expand its business operations in the British energy market.

The plans, launched at a reception in the Embassy of Ireland in London, hosted by the Ambassador of Ireland, Mr David Cooney and ESB Chief Executive, Padraig McManus, involve the building of a 3,000 megawatt portfolio of power stations by 2020 and 200 megawatts of wind in the UK market.

The development will rank ESBI in the top 10 energy companies operating in the British electricity market.

The company's acquisitions include the construction and operation of an 860 megawatt gasfired power station at Carrington, near Manchester. As part of the deal, ESBI has taken a majority stakeholding in Bridestones Power Ltd. The plant will be operational by the end of 2013 and will generate enough electricity to supply one million homes.

In a joint venture with Scottish and Southern Energy, ESBI is completing the construction of an 840 megawatt gas plant at Marchwood, near Southampton. The power station will be commercially operational in autumn 2009.

This is in addition to ESBI's 50% holding in the 350 megawatt gasfired plant at Corby in Northampton.

ESB International has opened offices in London to further develop its trading capability in the British market and includes a team dealing specifically with wind projects.

A projected shortfall in generation capacity in Britain post-2013 provides ESBI with the opportunity to develop a greater generation, trading and supply business. Due to competition issues in the Irish market, ESB has agreed with the Commission for Energy Regulation to reduce its generation share domestically to 40 percent and is therefore looking overseas for expansion.

Speaking at the launch in London, Padraig McManus said the company's expansion plans are primarily focused on Britain though ESB International has a strong presence in the Iberian market where the company recently announced the development of another power station in northern Spain.

"ESB earlier this year announced a €22 billion investment programme and identified €4 billion to fund expansion overseas. We see our growth in the British market as crucial to our development as a profitable company. Our initial acquisitions are in fast-build, highly efficient modern gas technology but our longer-term plans will involve a high level of renewable generation," he said.