ICS Leaders Conference27th Nov 2014

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ESB Overview: Vertically Integrated Utility

Overview: Established 1927, Vertically Integrated, 95% owned by Irish State, Commercial Mandate

Networks: Electricity Transmission and Distribution Networks in both the Republic of Ireland (ESB Networks) and Northern Ireland (NIE Networks)

Generation: All-Island Capacity of 4.4GW, GB Capacity of 1.2GW

Electricity and Gas Supply: 1.5M Customers served on an All-Island basis (Electric Ireland)

Innovation: ESBI, Smart Grids, e-cars, R&D Programmes

Engineering Services: ESBI engineering services franchise with global presence

SupplyNetworks Generation Innovation

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ESB - Delivering its mission for 85 Years

1927

Nation building

Ruralelectricification

Securing Ireland’s energy

supply

2012

Electricitygenerated

CompetitionCO2 & market

integration

Real GDP

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Industry Structure c.1999

Integration of All Customer Facing Activities

“ESB,100% of everything”Republic of Ireland Focus

Generation

National Grid

Customer Services

ESB was the Irish Electricity Market !

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Ireland and Northern Ireland Focus

Industry Structure c.2013/14

Generation

Networks

System and Market Operator

Generation

NetworksEnergy Suppliers

37% of Market

46% of Market

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All Islands Market - Step Change in Competition for Generation and Supply

UK Big 6

All-islandsmarket integration

Driven by EU Directives and Interconnection

50 TwH

40 TwH

41 TwH

34 TwH

31 TwH

27 TwH

16 TwH

Great Britain Generation Output

Competitors of European scale

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Decarbonisation of Society

40% renewable electricity by 2020 in Ireland

30% renewable electricity by 2020 in UK

But 2020 is just the beginning

80% reduction in total CO2 by 2050

Carbon-Free power sector earlier

EU GHG emissions towards an 80% reduction (1990 base year)

100%

80%

60%

40%

20%

0%

100%

80%

60%

40%

20%

0%

1990 2000 2010 2020 2030 2040 2050

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Decarbonisation will require different business models & technologies

Today The future

Fossilfuels

Renewables

Passivenetworks

Smartgrids

Variable operatingcosts

Capital intensity / upfront “sunk” costs

Passiveconsumers

Activeparticipants

Supplyelectricity

Providingservices

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Challenges of Emerging Technologies

Innovation in EU power sector could be worth €70bn/year by 2030

The core business of utilities is being challenged

Distribution Network

Renewables6

EV ChargingStation3

4

1 5Solar PV

Demandresponseservices

MiniCHP

1 BatteryStorage

BigData

7

2

Energy FlowData Flow

Smart Technologies

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Challenges of Emerging Technologies

Distribution Network

Renewables6

EV ChargingStation3

4

1 5Solar PV

Demandresponseservices

MiniCHP

1 BatteryStorage

BigData

7

2

Energy FlowData Flow

New &EmergingTechnology

New BusinessModels & Services

Closer toOur Customers

Smart Technologies Growth

Innovation

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IT In ESB

Delivered as a central service

Part of the Business Services Centre

250 Employees + 100 contractors / partners

Budget of €90m (Capex & Opex)

Adopt and Enterprise Wide Application Strategy

• SAP and Microsoft

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IT Supporting Change

Enabled Market Liberalisation

• Complexity of processes

• Volumes of data

• Speed at which data is processed

New Business

• Trading of Gas and Carbon

• Overseas Investments

Maximising the value of assets

• Asset Management

• Work Management

Employee Productivity

• 11k employees to 5k

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Technology Solutions Support for ESB Offices80 Offices

2,500 thin clients 3,000 Laptops / PC’s

500 smart phones 480 Windows Mobile Devices

500 HP MFP Print Devices currently

Single IT Service Desk 12,000 User Accounts ( ESB , 3rd rdParty, System Accounts )

26,000 Incident tickets per annum (2011)

2,000 Infrastructure Change tickets per annum

Large IT Infrastructure681 Database (SQL Server, Oracle, DB2)

1,592 Physical/Virtual Servers in Production –: (Windows, AIX, VMS)

(330 Citrix Xenapp Servers)

1,200TB of Data on SAN Storage devices : IBM Xiv, EMC, Centera

12,500 Network Devices 520 Applications Hosted

Secure IT Facilities2 Data centres for Hosting (8,900 sq ft)

High Availability & Disaster Recovery Architecture

24 x 7 monitoring Security , Remote Access & Firewall Services

Data Communications Monitoring & break-fix

Work Area Recovery facility

Hardware Monitoring & Break-fix Data storage and backup

Main Enterprise ApplicationsFinance/ Materials / HR / Payroll SAP ERP 6.0

Financial Consolidation SAP BCS

Business Warehouse SAP Business Warehouse 7.00

Data Marts Microsoft SQL Server

Document Management Microsoft SharePoint 2007, OpenText, Easy,

SAP DMS, Doculive (ESB Networks only)

E-Mail & Calendar Microsoft Exchange 2007

Unified Communications None

Main Business Unit Specific ApplicationsPlant Maintenance SAP ERP 6.0 (ESB Networks)Scheduling & Optimisation Click Schedule 8.0 (ESB Networks)Retail Electricity Market SAP IS-U (ESB Networks)Mobile Data Management SAP Mobile Infrastructure 2.5 (ESB Networks)Geographical Information System Intergraph (ESB Networks)Outage Management System Oracle SPLCustomer Care & Billing SAP IS-U (Electric Ireland)CRM SAP CRM 4.0 & 7.0 (Electric Ireland)Electronic Billing SAP UCES (Electric Ireland), Demand Forecasting Oracle Lodestar (Electric Ireland)ETRM Allegro (Sungard ETRM Project) Pool Market Operations Oracle Lodestar

Desktop SoftwareBrowser Microsoft Internet Explorer 6.0 & 8.0Email & Calendaring Microsoft Outlook 2003Productivity Microsoft Office 2010Project Management Microsoft Project 2010Process Modelling Microsoft Visio 2010, ARISBusiness Intelligence Tools SAP Business Objects, Microsoft SSRSApplication Delivery Platform Citrix XenappApplication Virtualisation Microsoft App-VRemote Access Citrix Access GatewayPC Operating System Microsoft Windows 7Anti-Virus Symantec Endpoint ProtectionEncryption Symantec

Infrastructure ManagementDatabases SQL Server, Oracle, DB2 (SAP Systems)Real Time Databases OSISoft PI System Integration SeeBeyond, SAP Xi 3.0, SAP Pi 7.0, BiztalkApplication Servers Microsoft .NET, IIS , SAP Netweaver,

WebSphere, Oracle IAS, TomcatServer Operating System Windows Server 2008, IBM AIXServer Virtualisation VMWare, AIX Service Desk Open PursuitOperations Management Microsoft Operations Manager 2007, BMC Patrol,

FoglightConfiguration Management Microsoft Configuration Manager 2007Security Management Microsoft ISA Server 2006Data Backup Mgt Netbackup

IT Landscape

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IT Landscape

Used By

12,000 User Accounts

80 Irish Locations

58 Countries

2,500 thin clients

2,000 Laptops / desktops

500 Smart Phones

480 Windows Mobile device’s

500 Managed Printers 15m pages

Capability to support 3,000 remote users

Infrastructure

520 Applications Hosted

               > 1,700 Production

Servers

~ 700 Databases

1,200TB of Data

12,500 Network Devices

4m automated jobs

25k concurrent firewall sessions

Supported By

Highly Skilled People

High Availability & Disaster Recovery Architecture

2 Data Centres

24 * 7 monitoring

26k incident tickets p.a.

2k change Tickets p.a.

ITIL processes

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IT Enabling the business

• Manage 2.1m Network assets worth €5.1bn

• 3.6m customer payments worth €1.2bn

• 9.5m customer bills per annum (1.3m e-billing)

• €500m annual payroll, 6000 staff

• 22m Retail Market messages

• 2.5m customer calls to ESB Networks Call Centre

• 450,000 electronic meter work service orders

• €11bn in treasury payments

• €2.8bn energy payments

• 48,000 Power station data points in real time

• 4,000 conference calls (25k hours with 40,000 participants)

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Our Mission, Vision and Values for 2025

Our Vision: To be Ireland’s foremost energy company competing successfully in the all islands market

Our Vision: To be Ireland’s foremost energy company competing successfully in the all islands market

Our Mission: To bring sustainable and competitive energy solutions to all our customers

Our Mission: To bring sustainable and competitive energy solutions to all our customers

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The 5 Priorities of ESB’s Strategy to 2025

Generation/SupplyBusinesses

Of Scale

Generation/SupplyBusinesses

Of Scale

World-ClassNetworks

World-ClassNetworks

Agile & EngagedOrganisation

Agile & EngagedOrganisationSustainable

InnovationSustainable Innovation

TransformedCost

Structure

TransformedCost

Structure

A Strong Diversified Vertically Integrated

Utility

Thank You

Any Questions ?