Future Proofing Infrastructure Who are we? 5 Our Purpose We provide modern utility services to support economic development – locally, regionally and nationally – 6 Energy Infrastructure Meeting Energy Demand in Ireland Gas Is The Transition Fuel To A Low Carbon Economy. 8 Ireland’s Gas Network Provides Energy Security Modern Infrastructure • An Interconnector System linking Ireland to UK and Global Gas markets 9 Ireland’s Gas Network Provides Energy Security Secure Global Supply • IEA estimates global reserves of gas will last for 250 years. • Natural gas produces approximately 20% less CO2 than oil and 40% less CO2 than coal. 10 Gas Networks Ireland – The Challenge • Significant Demand destruction in last 5 years • Sustained upward pressure on network charges • Five Year Strategy in development to address these challenges • Advocate for Gas • Focus on Growth • Longer Term – become a sustainable gas networks company 11 Growth – key to efficient network costs • Up to 300,000 domestic, SME & I&C’s located within 20m of the gas network • Expand the Network to New Towns • Biogas Transmission Injection – Renewable Gas 12 CNG & Ireland’s 2020 Carbon Challenge • Ireland will fail to meet 2020 target by 5-8Mt CO2 • CNG in transport can be part of the solution – 20% less CO2, 70% less nitrogen oxide, 80% less sulphur dioxide, 99% less particulate matter • Switching Ireland’s Truck & Bus fleet to CNG cuts 2.0MT CO2 – Switching from natural to renewable gas avoids 4.6MT CO2 – Savings up to 17%-35% CNG vs diesel 13 CNG Compliments Electric Vehicles 14 Water Infrastructure Historical inefficiencies & Lack of investment has gravely impacted on Ireland’s Water Services Drinking Water Quality Poor Infrastructure Condition • 45% - 49% treated water is lost through leakage • Almost 70% of the sewer network needs repair •121 plants serving 940,000 people at risk •Boil water notices in place for 23k customers. IMPACT in picture Waste Add Water Capacity • 156 plants are overloaded • Additional 30 plants at ‘capacity’ Drinking Water Capacity • Dublin city has less than 2% headroom • 39% of plants have less than 15% headroom Waste Water Quality • Untreated sewage in 44 urban centres • 43 treatment areas no secondary treatment 16 ..resulting in a poor comparison with our nearest water utilities 17 The Solution  A Structured National Approach  A Sustainable Funding Model  Apply Smart Engineering BordGaisGroup_Template 18 Legacy A National Utility Standard Approach to Asset management Standard Approach to Operations and Maintenance Structured approach to Capital Spend Ability to attract external Funding / Financing Corroded cast iron mains. Rural water treatment plant. Lean and efficient organisation Best Practice Utility Customer service 19 Irish Water Business Plan 2015 - 2021 • Build a regulated utility company that can fund the investment needed • Raise €3bn of debt • Implement a €5.5bn capital investment programme • Deliver operating Cost Savings of over €1.0bn. • Set out work programmes to fix the infrastructure and support growth 22 22 A Sustainable Funding Model €1.2bn p.a. Avg. €1.5bn p.a. Capital Exp. €0.4bn Capital Exp €0.7bn OPEX €0.8bn OPEX €0.7bn Government €1.0bn Government €0.5bn Equity €0.2bn Non Domestic €0.2bn Domestic €0.25bn Debt €0.35bn Non Domestic €0.2bn 23 Smart Engineering  National Approach to Asset Planning  Off the Shelf Technology for small plants  Pilot in Athea Co Limerick – Population 400  Implement National Programmes for quick wins  Retrofit Disinfection Solution to 121 Water Treatment Plants  Use Value Engineering and New Technology 24 Proposed Treatment Technology Aerobic Granular Sludge Confidential © RoyalHaskoningDHV, all rights reserved 25 Doing more for MUCH Less Expansion and upgrade of Ringsend WwTP c. €365m 26 By 2021 We Will Have ………. 121 Critical Water Supply Schemes 20,000 Boil Water Notices To ZERO 15% RESOLVED Extra Water Capacity In Greater Dublin Area No Wastewater Discharge WITHOUT TREATMENT Network Leakage Reduced To Less Than 38% 27 We are not motivated solely by profit but by creating long term value for Ireland. Uniquely meeting the needs of shareholders, customers, employees, regulators & government. We are building a new Irish company that has the potential to impact significantly on Ireland’s social and economic development…………… …..……for today and for the next generation 28 Thank You 30