WEBVTT 1 00:00:04.400 --> 00:00:07.960 With Laurent segle And from London and Gerard Reid from Berlin. 2 00:00:08.439 --> 00:00:11.199 This is redefining Energy today. 3 00:00:11.240 --> 00:00:15.119 On redefining Energy, we're going to talk about Actually we're 4 00:00:15.119 --> 00:00:18.719 going to talk about an event, Laurent, which is your 5 00:00:18.800 --> 00:00:22.679 Electrics annual event which took place in han Sinky this year. 6 00:00:23.039 --> 00:00:27.760 Oh yes, it was wonderfully organized by Marcus Roamo, the 7 00:00:27.920 --> 00:00:31.039 CEO of Fortum and of course by all the team 8 00:00:31.120 --> 00:00:34.399 with Christian Ruby. It was in this fantastic congress center 9 00:00:34.520 --> 00:00:38.119 called Finlandia in the middle of Elsinki and the weather 10 00:00:38.320 --> 00:00:42.079 was great and yeah, extremely well organized, very pleasant. But 11 00:00:42.159 --> 00:00:44.119 first of all, from my partner, A. 12 00:00:44.159 --> 00:00:47.359 B Loco Energy is Europe's premier leaser of ten foot 13 00:00:47.479 --> 00:00:52.439 container mobile batteries built in Europe with COTL best LFP cells. 14 00:00:53.000 --> 00:00:58.320 A Bloco Energy serves fourteen European countries, including France, Germany 15 00:00:58.399 --> 00:01:01.840 and the UK. Blocks batteries can be leased for any 16 00:01:01.920 --> 00:01:05.000 duration between six weeks and six years and they are 17 00:01:05.079 --> 00:01:09.040 monitored by the Dutch award Webing Platform School. A block 18 00:01:09.079 --> 00:01:11.879 of energy, make your life easier, make your. 19 00:01:11.760 --> 00:01:12.799 Business more flexible. 20 00:01:13.040 --> 00:01:15.840 Back to the show, So around, who did Jimmie and 21 00:01:16.040 --> 00:01:17.640 what we your main takeaways. 22 00:01:18.319 --> 00:01:20.480 Well, it was great because there was a lot of 23 00:01:20.519 --> 00:01:24.359 friends there. We had King's Millbond was there on stage, 24 00:01:24.879 --> 00:01:29.719 we had Dejan Roseno delivered a fantastic lecture, and of 25 00:01:29.799 --> 00:01:35.280 course Bruce Douglas, Killian Daily, Emon Ryan and sorry for 26 00:01:35.799 --> 00:01:38.920 all those I don't mention, although I would like to 27 00:01:38.959 --> 00:01:42.680 say the second day in the morning there was real 28 00:01:42.799 --> 00:01:47.640 podcast stars, not like us, Alistair Campbell and Rorris Steward. 29 00:01:47.799 --> 00:01:50.400 The rest is politics We live a very good How 30 00:01:50.519 --> 00:01:53.840 was that well, Alista Cambell there is a very brilliant man, 31 00:01:54.000 --> 00:01:56.200 very charming and OI still wasn't Embezil. 32 00:01:58.560 --> 00:01:59.959 Did I know anything about energy? 33 00:02:00.480 --> 00:02:03.239 Yeah? It tried to talk about energy, try to lecture 34 00:02:03.280 --> 00:02:06.719 the whole room full of one thousand energy experts like 35 00:02:06.840 --> 00:02:11.199 the system is not well. Manager so well, not a 36 00:02:11.319 --> 00:02:14.199 very pleasant character. That's the only thing I like to say. 37 00:02:15.639 --> 00:02:20.560 Anyway, did you meet any pleasant characters? 38 00:02:20.919 --> 00:02:21.039 All? 39 00:02:21.080 --> 00:02:23.919 The risk was very good. The other thing you did 40 00:02:24.080 --> 00:02:28.439 was you went and interviewed the CEO of the French 41 00:02:28.520 --> 00:02:30.400 utility on you with the Irish name. 42 00:02:31.120 --> 00:02:34.159 Yeah, it was a real privilege and organized by your 43 00:02:34.199 --> 00:02:38.520 Electric to bring Katherine McGregor on the show. So Katrine 44 00:02:38.560 --> 00:02:41.360 has been VP of Your Electric for a year and 45 00:02:41.520 --> 00:02:43.800 CEO of nerg for five years and a half. So 46 00:02:43.840 --> 00:02:47.400 we had a great conversation around a the priorities of 47 00:02:47.639 --> 00:02:50.000 your Electric of course, and also a role at Enchi 48 00:02:50.120 --> 00:02:53.039 because she has managed to turn around this company which 49 00:02:53.159 --> 00:02:55.560 was clearly under valued a few years ago and now 50 00:02:55.639 --> 00:02:57.439 it has been performing extremely well. 51 00:02:57.879 --> 00:02:59.800 Well. Listen, why don't we bring around the show. 52 00:03:00.240 --> 00:03:03.759 Catherine, Welcome to the show, and thank you very much 53 00:03:03.960 --> 00:03:06.919 as a president of Your Electric for inviting me into 54 00:03:07.000 --> 00:03:08.919 your wonderful annual conference. 55 00:03:09.439 --> 00:03:11.039 Thank you very nice to be here. 56 00:03:11.759 --> 00:03:14.759 We have a very charged agenda because you've been vice 57 00:03:14.840 --> 00:03:18.080 president of your Electric for a year. Now, what's your 58 00:03:18.080 --> 00:03:20.639 first impression about that community? 59 00:03:21.159 --> 00:03:25.520 Your Electric is very important and it's a very very 60 00:03:25.560 --> 00:03:30.479 relevant association in many dimensions. Maybe the first one is 61 00:03:30.960 --> 00:03:34.159 because it is trying to tackle one of the key 62 00:03:34.280 --> 00:03:40.840 challenges and opportunity that Europe is facing. It's around the carbonation, electrification, sovereignty, 63 00:03:41.240 --> 00:03:42.240 security of supply. 64 00:03:42.879 --> 00:03:45.039 That's one thing. The second thing is that. 65 00:03:45.159 --> 00:03:49.000 It's really carrying this vision that it needs to happen 66 00:03:49.039 --> 00:03:52.520 at European level. So Your Electric is an association of 67 00:03:53.039 --> 00:03:58.319 association and it really pushes the view that by furthering 68 00:03:58.680 --> 00:04:03.439 the integration of the European energy market, we will be 69 00:04:03.520 --> 00:04:07.199 more competitive, we will have a better energy system and 70 00:04:07.439 --> 00:04:11.560 electrical system specifically. That's why I'm very excited about what 71 00:04:11.560 --> 00:04:13.879 we do at your Electric. I really think that it's 72 00:04:14.039 --> 00:04:17.600 again the relevant level at which you know, the policy 73 00:04:17.720 --> 00:04:22.399 needs to happen at times when, for example, energy prices 74 00:04:22.519 --> 00:04:25.959 go up again. You know, in the wake of Iranian events, 75 00:04:26.360 --> 00:04:29.959 there is sometimes a temptation for government to change things, 76 00:04:30.519 --> 00:04:34.079 things like market design. Things that it yes, and you 77 00:04:34.079 --> 00:04:36.560 know the fact that an association of association like euro 78 00:04:36.560 --> 00:04:40.920 Electric is saying, do not destabilize the system. We need 79 00:04:40.959 --> 00:04:45.920 to keep stability in the market. Design very important for investments. Signals. 80 00:04:46.079 --> 00:04:49.800 ETS is the mechanism for the carbonation we cannot mess with. 81 00:04:49.879 --> 00:04:52.560 That doesn't mean that we should not listen to what's 82 00:04:52.560 --> 00:04:56.519 happening on the continent in terms of competitiveness, industry, et cetera. 83 00:04:56.639 --> 00:04:57.240 So we need to. 84 00:04:57.279 --> 00:05:01.360 Use ETS to help in a target away some industries, 85 00:05:01.959 --> 00:05:04.639 but don't change the framework. Basically, a New Electric has 86 00:05:04.680 --> 00:05:07.600 been really vocal at doing that, and I believe that 87 00:05:07.639 --> 00:05:10.360 it has served the purpose and believe that now we 88 00:05:10.439 --> 00:05:15.519 have some stability there and it's so critical political government. 89 00:05:15.600 --> 00:05:18.920 Sometimes they think that they always need to intervene. An 90 00:05:19.079 --> 00:05:23.480 intervention sometimes can create more harm than problem that they 91 00:05:23.480 --> 00:05:26.959 are trying to solve. Long story short, I'm very pleased 92 00:05:27.000 --> 00:05:30.000 to be part of the EU Electric Presidency team. We 93 00:05:30.120 --> 00:05:35.160 have three very clear priorities, one which is competitiveness and 94 00:05:35.240 --> 00:05:39.480 specifically on the industrial side, the second which is the 95 00:05:39.519 --> 00:05:43.360 security of the power system, and the third one which 96 00:05:43.399 --> 00:05:46.959 is exciting stuff. It's AI, so it's Power for AI 97 00:05:47.240 --> 00:05:48.480 and AI for power. 98 00:05:49.120 --> 00:05:52.720 As usual, your Electric loves to publish a great report 99 00:05:53.360 --> 00:05:57.160 during the summit. One of them was very interesting to 100 00:05:57.240 --> 00:05:59.439 me because it was a bit of a new concept 101 00:05:59.560 --> 00:06:05.360 called the power couples, where you have integrated industrial partnership 102 00:06:05.439 --> 00:06:10.680 models that jointly optimize demand LOOCRB and supply infrastructure and flexibility. 103 00:06:11.079 --> 00:06:14.079 How did you came up with such a concept of 104 00:06:14.160 --> 00:06:15.279 power couples? 105 00:06:15.879 --> 00:06:20.399 The concept of power couples, it's a really interesting one 106 00:06:20.480 --> 00:06:23.079 where when you think about what we've done in terms 107 00:06:23.079 --> 00:06:26.800 of the three priorities, one of them was around customers, 108 00:06:27.199 --> 00:06:30.199 and to be honest, it sounds for many businesses. It's 109 00:06:30.240 --> 00:06:32.240 obvious that you want to think of your customers first. 110 00:06:32.240 --> 00:06:35.079 But in the utility sector and the power sector. It 111 00:06:35.120 --> 00:06:38.240 has not always been the case. When you are running 112 00:06:38.240 --> 00:06:42.160 a regulated activity, you don't necessarily think so much about 113 00:06:42.240 --> 00:06:47.800 adapting what you do for customers. Customer centricity doesn't come obvious, 114 00:06:48.000 --> 00:06:51.720 but the realization by making sure that we are here 115 00:06:51.920 --> 00:06:57.399 to provide competitive service for customers has indeed fosters to 116 00:06:57.399 --> 00:07:00.240 think a little bit differently about this thing. And there's 117 00:07:00.279 --> 00:07:02.879 the idea that we need to be closer to customers 118 00:07:02.879 --> 00:07:06.439 to really understand the energy need and then to tailor's solution, 119 00:07:06.879 --> 00:07:10.399 coordinating across sometimes the value chain, you know, even great 120 00:07:10.439 --> 00:07:16.040 connections real estate, obviously energy supply, generation, and then from 121 00:07:16.079 --> 00:07:19.240 the customers side, it can be maybe adapting their processes 122 00:07:19.680 --> 00:07:23.600 and sometimes even working with other industries in one zone 123 00:07:24.040 --> 00:07:27.959 to make sure that this energy ecosystem is truly optimized. 124 00:07:28.199 --> 00:07:30.879 So that was the idea of power couples, and in 125 00:07:30.920 --> 00:07:33.720 the report there are a number of examples that were 126 00:07:33.759 --> 00:07:37.079 discussed that really ring a bell actually to energy because 127 00:07:37.120 --> 00:07:40.360 we have exactly this approach. For example, we work with 128 00:07:40.480 --> 00:07:44.199 data centers. You have to customize the approach very much. 129 00:07:44.759 --> 00:07:46.720 That's the idea of the report. 130 00:07:47.639 --> 00:07:51.360 Oh data center. So yeah, nobody talked about it three 131 00:07:51.439 --> 00:07:54.240 years ago and now it's all the rage. But before 132 00:07:54.279 --> 00:07:56.920 we go into data centers and I know you're and 133 00:07:56.959 --> 00:07:59.680 she's doing a lot of work, Katherine, I like to 134 00:07:59.720 --> 00:08:03.839 thank you. I like to thank you because a bought 135 00:08:03.879 --> 00:08:07.639 shares of NGI the day is one name CEO, and 136 00:08:07.680 --> 00:08:10.279 you have delivered to me over the past five years 137 00:08:10.319 --> 00:08:13.720 and a half a twenty point five percent return peranum, 138 00:08:14.160 --> 00:08:18.720 which is better than your peers in Europe, but also 139 00:08:18.920 --> 00:08:23.399 much better than an infrastructure fun the Macquarie and the 140 00:08:23.439 --> 00:08:27.839 brook Fields and the Carlisle. So, as a shaoholder, thank 141 00:08:27.839 --> 00:08:32.080 you very much. Where did you have in mind when 142 00:08:32.120 --> 00:08:34.759 you arrived five and a half years ago to deliver 143 00:08:34.960 --> 00:08:37.440 such a fantastic financial performance? 144 00:08:38.320 --> 00:08:39.840 First of all, thank you for the trust. 145 00:08:40.240 --> 00:08:45.159 Shareholders are a very very important part of our stakeholders landscape. 146 00:08:45.440 --> 00:08:48.600 We believe shareholders are very important and I have spent 147 00:08:48.720 --> 00:08:52.000 and I am spending a lot of time with our investors. Actually, 148 00:08:52.080 --> 00:08:55.799 even before joining preparing to become a CEO, I spent 149 00:08:55.960 --> 00:08:59.759 sometimes to collect feedback and trying to understand it. 150 00:09:00.000 --> 00:09:01.759 We're obviously undervalued. 151 00:09:01.840 --> 00:09:05.000 I've felt like we were undervalued and I really wanted 152 00:09:05.000 --> 00:09:08.360 to understand and listen to two investors and I always 153 00:09:08.559 --> 00:09:12.360 get some interesting insights through their questions to us. It 154 00:09:12.480 --> 00:09:16.559 really gives a very interesting perspective on our businesses, on 155 00:09:16.600 --> 00:09:19.360 our strength, but also on the area for improvements, and 156 00:09:19.399 --> 00:09:22.360 we continue to have many areas for improvement that energy. 157 00:09:22.480 --> 00:09:25.679 So it is true that we have worked with determination 158 00:09:25.799 --> 00:09:28.120 over the past five six years now. 159 00:09:28.080 --> 00:09:29.240 On transforming the group. 160 00:09:29.639 --> 00:09:32.279 If I was to boil it down to two words, 161 00:09:32.320 --> 00:09:37.879 I would say strategy. Clarity of strategy and steadiness of 162 00:09:37.919 --> 00:09:42.679 strategy on one side, so clear and steady strategy and 163 00:09:42.720 --> 00:09:47.320 the second is the execution execution, execution, and if you 164 00:09:47.440 --> 00:09:50.759 have both, you know, then you were able to establish 165 00:09:50.759 --> 00:09:53.799 streuss and then you're starting to see the results. 166 00:09:54.039 --> 00:09:57.240 It takes time to us text time, and it can 167 00:09:57.279 --> 00:09:58.559 be broken rapidly. 168 00:09:58.679 --> 00:10:01.639 So we have this thing with my management team that 169 00:10:02.120 --> 00:10:04.759 we are not complacent one second, and we have a 170 00:10:04.919 --> 00:10:07.399 huge sense of urgency to continue on the. 171 00:10:07.399 --> 00:10:08.519 Route that we've started. 172 00:10:08.639 --> 00:10:12.200 So if I look at the strategy, it was really focus, 173 00:10:12.440 --> 00:10:15.879 you know, focus on what we are good at, less diversification, 174 00:10:16.840 --> 00:10:19.600 and then we are filming who we are. We are 175 00:10:19.840 --> 00:10:23.399 utility that drives a lot of the decisions that we 176 00:10:23.559 --> 00:10:26.360 made and I'll maybe point to what we've done on 177 00:10:26.399 --> 00:10:29.600 the regulated side, because we were very focused on the 178 00:10:29.639 --> 00:10:34.039 generation side, which is fantastic. But obviously with our regulated 179 00:10:34.080 --> 00:10:38.200 assets our infrastructure business, we're very heavy in gas. Nothing 180 00:10:38.240 --> 00:10:40.279 wrong with that, but you know, there's not much growth, 181 00:10:40.320 --> 00:10:43.639 so we were looking for growth and regulated assets. And 182 00:10:43.679 --> 00:10:45.679 with the move that we did earlier this year, you 183 00:10:45.759 --> 00:10:49.559 keep our networks, we now have this second leg of 184 00:10:49.720 --> 00:10:53.639 growth in the regulated arena, which really fits well the 185 00:10:53.799 --> 00:10:58.000 utility profile that indeed, investors are waiting from us, like 186 00:10:58.039 --> 00:11:01.039 the clarity we say who we are, and then our 187 00:11:01.120 --> 00:11:05.639 investment and our capital allocation decisions fit those decisions of 188 00:11:05.759 --> 00:11:07.679 who we are. And by the way, I like the 189 00:11:07.720 --> 00:11:10.919 word utility. Some people think it's very unsexy. I like 190 00:11:11.000 --> 00:11:13.240 it because it says that we are here to do 191 00:11:13.279 --> 00:11:17.440 something useful and useful not in the sense that it's 192 00:11:17.480 --> 00:11:21.080 also economic sense. So you should not have your business 193 00:11:21.159 --> 00:11:25.759 model are demanding too much reliance on subsidies. For that matter, 194 00:11:25.840 --> 00:11:27.840 you know, you have to make sure that what you 195 00:11:28.000 --> 00:11:31.240 bring to the world is something that makes economic sense. 196 00:11:31.639 --> 00:11:34.399 It's not just lookable. It has to make economic sense. 197 00:11:34.759 --> 00:11:37.000 And this is the whole view that when you have 198 00:11:37.159 --> 00:11:40.080 portfolio like we have Attengy, we can do that. We 199 00:11:40.120 --> 00:11:45.320 can provide customers to society, government the lowest cost solution 200 00:11:45.799 --> 00:11:49.240 obviously with the constraint of CO two because we have 201 00:11:49.320 --> 00:11:53.279 all the levers and the integration of all of different 202 00:11:53.399 --> 00:11:56.600 portfolio energy management, all that contribute to do that, which 203 00:11:56.639 --> 00:11:58.440 is why you always go back to utty. 204 00:11:58.519 --> 00:11:59.519 I think it's a great word. 205 00:11:59.759 --> 00:12:02.840 It's not just about a financial profile, it's also about 206 00:12:02.840 --> 00:12:03.759 what we're here to do. 207 00:12:04.440 --> 00:12:08.759 Going to summarize your strategy since you took the helm, 208 00:12:09.559 --> 00:12:13.039 you have done large scale disvestment of fasil fuel and 209 00:12:13.120 --> 00:12:16.720 legacy as set for about fifteen billion, and you have 210 00:12:16.840 --> 00:12:21.960 concentrated investment in honorable grids, batteries and regulated network with 211 00:12:22.080 --> 00:12:25.720 a UKPN while keeping a financial discipline. So you have 212 00:12:26.320 --> 00:12:29.120 on a bit of around three which is pretty good. 213 00:12:29.919 --> 00:12:32.960 That's how engine two thirty is going to continue to 214 00:12:33.000 --> 00:12:35.279 look like. Right now your balance is that would say 215 00:12:35.320 --> 00:12:39.720 fifty percent molecule fIF cent electrons, so it has already rebalanced. 216 00:12:40.320 --> 00:12:41.919 That's how you foresee the future. 217 00:12:42.360 --> 00:12:47.200 We definitely see our profile to remain quite balanced between 218 00:12:47.600 --> 00:12:52.840 non regulated or generation and regulated electricity will become a 219 00:12:52.919 --> 00:12:55.960 higher share, especially that with you keep our networks. We 220 00:12:56.000 --> 00:12:59.000 are embacking quite a bit of growth, so expect the 221 00:12:59.080 --> 00:13:03.360 portion of power within these regulated assets the network business 222 00:13:03.519 --> 00:13:07.000 to grow, so more electricity, and in terms of generation, 223 00:13:07.120 --> 00:13:11.720 we only produce power anyway, and the share of renewables 224 00:13:11.840 --> 00:13:15.799 within our generation portfolio, which is only made of renewables 225 00:13:15.840 --> 00:13:19.480 and still thermal plants from gas from natural gas, that 226 00:13:19.559 --> 00:13:22.639 share is going to continue to increase. And the third pillar, 227 00:13:22.679 --> 00:13:24.440 so you know we have three pillars and energy. We 228 00:13:24.480 --> 00:13:27.039 have the first one which is power generation, the second 229 00:13:27.120 --> 00:13:30.679 which is infrastructure, and the third one which is customers. 230 00:13:31.000 --> 00:13:33.320 So it's bit to see bit to be energy management. 231 00:13:34.120 --> 00:13:38.120 And similarly in the customer pillar you will have also 232 00:13:38.159 --> 00:13:42.279 a higher contribution of power. Within the customers we will 233 00:13:42.320 --> 00:13:44.919 sell more power to our customers and within this power 234 00:13:44.960 --> 00:13:48.120 we will sell more green power, which is actually good 235 00:13:48.120 --> 00:13:50.120 because it's also supporting the margins. 236 00:13:50.879 --> 00:13:55.200 If we look at the growth drivers you are talking about, 237 00:13:55.600 --> 00:14:00.759 there are three. You've got heat pumps, you get electric transportation, 238 00:14:01.360 --> 00:14:04.000 and of course you've got data centers. Do you want 239 00:14:04.000 --> 00:14:07.919 to talk about briefly those threes and which one's the 240 00:14:07.919 --> 00:14:10.120 most keen into your thinking? 241 00:14:10.799 --> 00:14:14.919 Yeah, you're really talking about electrification, which is indeed a 242 00:14:14.919 --> 00:14:19.000 bit of a macro trend. What's interesting is that it 243 00:14:19.039 --> 00:14:22.720 takes different flavor in the different regions of the worlds 244 00:14:22.799 --> 00:14:25.240 and where we operate, which is why you know, it's 245 00:14:25.240 --> 00:14:28.799 always really important to always be quite local in the 246 00:14:28.879 --> 00:14:32.440 key markets where you operate because the reality is very 247 00:14:32.559 --> 00:14:36.440 very different. So if I look at for example and India, 248 00:14:36.559 --> 00:14:40.039 you know they're really accompanying a very big economic growth. 249 00:14:40.080 --> 00:14:44.399 Demographic is also supportive and they want to be more resilient, 250 00:14:44.480 --> 00:14:48.320 so they have a very significant renewables target to twenty thirty. 251 00:14:48.799 --> 00:14:53.559 They organized the auctions so that executable from the developers 252 00:14:53.559 --> 00:14:55.879 and point, and so we are accelerating in India to 253 00:14:55.960 --> 00:14:59.279 accompany this very big push on venue both from the 254 00:14:59.320 --> 00:15:00.000 India gouvernment. 255 00:15:00.080 --> 00:15:00.879 That's an example. 256 00:15:01.320 --> 00:15:05.320 In Europe you have a combination of drivers and you know, 257 00:15:05.320 --> 00:15:08.720 obviously with with your electric we see them very closely. 258 00:15:08.759 --> 00:15:13.519 It's really electrification to support the carbonation and it's also 259 00:15:13.559 --> 00:15:17.919 a way to decrease the dependency on imports. And here 260 00:15:18.039 --> 00:15:20.720 mobility is very big drivers for. 261 00:15:20.720 --> 00:15:23.559 Sure, so you have a network of ivy charger. 262 00:15:23.360 --> 00:15:27.440 We also, yes, we operate around roughly eleven charging points 263 00:15:27.440 --> 00:15:31.279 in Europe to our brand and GVO many friends, a 264 00:15:31.279 --> 00:15:34.159 bit of Belgium. That's our fund out that's at men 265 00:15:34.279 --> 00:15:38.840 called markets. But yes, so electrification driven by mobility driven 266 00:15:39.120 --> 00:15:42.159 also to allot to a certain extent through heat pumps 267 00:15:42.759 --> 00:15:46.360 and then also indust shows that can electrify, they will electrify, 268 00:15:46.480 --> 00:15:49.480 and the others they'll go to other solutions, like they'll 269 00:15:49.519 --> 00:15:52.759 stay with gas, but they'll grunify the gas or biomethane 270 00:15:52.879 --> 00:15:55.519 is something that we are also quite excited. And you 271 00:15:55.559 --> 00:15:59.120 also have you know, local networks like distree hitting that 272 00:15:59.360 --> 00:16:01.720 also can by the solutions. 273 00:16:02.039 --> 00:16:05.000 Okay, so now it's time to talk about the eight 274 00:16:05.039 --> 00:16:09.480 hundred pound gorilla data centers. Data centers on Earth. You 275 00:16:09.600 --> 00:16:10.440 do them on Earth? 276 00:16:10.639 --> 00:16:13.039 Yeah, we are either we are a bit risk covers 277 00:16:13.440 --> 00:16:16.360 as a utility, so we have not yet sent us 278 00:16:16.440 --> 00:16:18.559 stuff in the space, but the. 279 00:16:19.080 --> 00:16:22.039 One of our future guests on the show, we'll talk 280 00:16:22.080 --> 00:16:24.919 about that ASID space. So let's go back to us 281 00:16:24.919 --> 00:16:28.200 talk about how you deal with the growth of data centers. 282 00:16:28.600 --> 00:16:34.200 Obviously, again market by market, data center operator and specifically Hyperscaler. 283 00:16:34.840 --> 00:16:38.039 We've been working with them for a long time mainly 284 00:16:38.120 --> 00:16:40.840 and at the beginning it was really PIPA driven, so 285 00:16:40.879 --> 00:16:44.679 it's long term contracts that is backing the development of 286 00:16:44.720 --> 00:16:48.320 new renewable assets. It sounds easy, sounds straightforward, but it's 287 00:16:48.360 --> 00:16:51.879 not a really big project. Last year we were Engie 288 00:16:51.960 --> 00:16:54.360 was number one on PPA. We signed four point eight 289 00:16:54.399 --> 00:16:57.159 gigawats and indeed you know there was a lot of 290 00:16:57.279 --> 00:17:01.919 data center operator or developer there among our customers, Apple, Meta, 291 00:17:02.080 --> 00:17:05.319 Google a few names. But we also did PPA by 292 00:17:05.319 --> 00:17:08.000 the way for industrials like bea Safety in Europe. So 293 00:17:08.039 --> 00:17:11.440 it's interesting to see even industrials that see that mechanism 294 00:17:11.720 --> 00:17:15.440 as important to the decabination gives them the predictability of 295 00:17:15.519 --> 00:17:19.880 the prices. So PPA is a very significant mechanism to 296 00:17:19.920 --> 00:17:21.839 work with it at center. But now what we're doing 297 00:17:22.519 --> 00:17:25.599 at Energies that we've organized ourselves to also help them 298 00:17:25.960 --> 00:17:29.039 accelerate the development time to market is really important and 299 00:17:29.119 --> 00:17:33.759 we provide them custom solution that include power land that 300 00:17:33.920 --> 00:17:37.839 can include existing assets or assets that will be developed. 301 00:17:38.519 --> 00:17:42.039 Energy management, whereby you can manage the energy that is 302 00:17:42.039 --> 00:17:46.119 produced locally or and a combination of energy that is 303 00:17:46.160 --> 00:17:49.720 supplied to the market and help them also with their 304 00:17:49.880 --> 00:17:54.319 energy procurement. Obviously, storage solutions, batteries to also help with 305 00:17:54.319 --> 00:17:57.920 the flexible part, and so we are really scouting and 306 00:17:58.000 --> 00:18:00.599 we have now a dedicated project by that we are 307 00:18:00.599 --> 00:18:04.880 developing with those hyperscalter to help them accelerate the capacity, 308 00:18:04.880 --> 00:18:07.720 which is a huge thing for them because as you know, 309 00:18:07.920 --> 00:18:11.559 AI development correlates still very well with compute. 310 00:18:11.960 --> 00:18:13.960 Yeah, so you want a lot of our wars, but 311 00:18:13.960 --> 00:18:16.640 there's one I really like, which you did the Deal 312 00:18:16.680 --> 00:18:20.000 of the Year and Electricity out of the Year at 313 00:18:20.039 --> 00:18:23.599 the TOO twenty six and Risk Awards about it was 314 00:18:23.640 --> 00:18:26.640 a toning agreement in Germany. Maybe it's a bit below 315 00:18:26.640 --> 00:18:28.519 your radar, but I know the team who did it 316 00:18:28.640 --> 00:18:30.759 is smart. You're really great guys. 317 00:18:31.200 --> 00:18:31.519 We do. 318 00:18:32.000 --> 00:18:34.440 You know, I hate to brag, but I really think 319 00:18:34.480 --> 00:18:38.000 that we have some of the best power market people 320 00:18:38.039 --> 00:18:40.079 in the industry. But I shouldn't say it too loud 321 00:18:40.079 --> 00:18:43.440 because then I'm afraid that they get poached. But the 322 00:18:43.559 --> 00:18:46.359 very nice thing about the team and the energy management 323 00:18:46.359 --> 00:18:48.440 team and the supply teams is that you have people 324 00:18:48.440 --> 00:18:52.519 who are very high IQ, very very smart people, and 325 00:18:52.559 --> 00:18:55.920 they come to NG because they don't necessarily want to 326 00:18:55.960 --> 00:18:59.000 work in finance. They'll come to NG because they also 327 00:18:59.039 --> 00:19:02.839 want to contribute to have a physical impact on the world. 328 00:19:03.079 --> 00:19:05.960 That's why, you know, you have really quite unique profide 329 00:19:06.039 --> 00:19:08.240 that way, and I'm very very proud of what they do. 330 00:19:08.839 --> 00:19:12.359 So talking about PPA, let's dig a bit deeper into 331 00:19:12.440 --> 00:19:15.599 one of my favorite subjects, which is the Greenhouse Gas 332 00:19:15.599 --> 00:19:19.759 Protocol the revision of the scope too, because what you 333 00:19:19.839 --> 00:19:21.720 probably not know is I'm the creator of the scope 334 00:19:21.720 --> 00:19:25.119 to twenty five years ago and it has been wrongly 335 00:19:25.279 --> 00:19:30.039 portrayed by the opponents as a forced one hundred percent 336 00:19:30.839 --> 00:19:33.960 matching twenty four seven, where it's just an accounting. It's 337 00:19:34.000 --> 00:19:37.119 just an accounting. A lot of people have been very 338 00:19:37.240 --> 00:19:41.559 vocal for or against, and here we're just talking about accounting. 339 00:19:41.759 --> 00:19:43.039 Do you have a position on it? 340 00:19:43.799 --> 00:19:48.920 Without going into the weeds, it's important to say that 341 00:19:49.160 --> 00:19:53.880 if you only look at average consumption over say a year, 342 00:19:54.440 --> 00:19:57.599 you could achieve the carbonation of your average consumption over 343 00:19:57.640 --> 00:20:01.319 a year by just rapping a lot, a lot, a 344 00:20:01.319 --> 00:20:05.359 lot of cheap solar you could volume wise. But from 345 00:20:05.400 --> 00:20:08.799 a system standpoint, this is not helpful. It's not helpful. 346 00:20:08.960 --> 00:20:11.240 So you know, I always go back to this utility thing. 347 00:20:11.480 --> 00:20:13.599 I think we have to make sure that we do 348 00:20:13.680 --> 00:20:16.799 things that help the system. And so when we think regulation. 349 00:20:17.599 --> 00:20:20.279 We have to make sure that we don't buy uninternet 350 00:20:20.279 --> 00:20:25.400 consequences encourage the development of projects or behaviors that are 351 00:20:25.440 --> 00:20:26.880 not helpful to the system. 352 00:20:27.079 --> 00:20:31.880 Okay, I'm just looking accounting, just accounting to support accounting 353 00:20:31.920 --> 00:20:33.759 by the hour or by the year. 354 00:20:34.400 --> 00:20:36.359 The way to answer to that is that I do 355 00:20:36.400 --> 00:20:39.359 think that it's important to not just looking at a 356 00:20:39.440 --> 00:20:40.440 yearly average. 357 00:20:40.599 --> 00:20:41.759 Okay, I hear you. 358 00:20:42.079 --> 00:20:45.279 Now, how much you push, whether it's hourly, maybe you 359 00:20:45.279 --> 00:20:47.839 know how much you push is good question. But you 360 00:20:47.880 --> 00:20:52.759 have also to always balance the level of expectation versus affordability. 361 00:20:52.880 --> 00:20:56.359 Yeah, but look, we trade electrons every fifteen minutes. We 362 00:20:56.400 --> 00:20:57.599 can track the green everything. 363 00:20:57.640 --> 00:20:59.640 If it depends on the markets, you see, it depends 364 00:20:59.640 --> 00:21:04.160 on the matter. So Europe has a very excellent liquid 365 00:21:04.240 --> 00:21:07.640 shortterm markets as well as longer term markets. 366 00:21:07.720 --> 00:21:09.279 So Europe can do things. 367 00:21:09.319 --> 00:21:11.960 But you also have to really make sure, especially if 368 00:21:12.000 --> 00:21:15.240 you add you know, additionality, et cetera, that it remains affordable, 369 00:21:15.720 --> 00:21:20.240 particularly for industries, and the level playing field across different 370 00:21:20.279 --> 00:21:24.079 continents is something that my customer keep reminding me, which 371 00:21:24.079 --> 00:21:26.400 is why you know, I'm a bit balanced on these things, 372 00:21:26.440 --> 00:21:29.319 because from a principal point of view. Of course early 373 00:21:29.400 --> 00:21:31.759 matching is much better, but we have to make sure 374 00:21:31.960 --> 00:21:35.279 that in terms of implementation we are not overly punitive 375 00:21:35.279 --> 00:21:35.720 on costs. 376 00:21:35.759 --> 00:21:38.200 Yeah, I don't want to spend too much time again 377 00:21:38.279 --> 00:21:42.759 you said matching, We just want the accounting. Okay, let's 378 00:21:42.759 --> 00:21:47.720 pivot probably towards our last subject, which is going forward. 379 00:21:47.920 --> 00:21:51.799 And of course you're probably more disciplined than your clients, 380 00:21:51.839 --> 00:21:56.960 the Hyperscados with CAPEX budget bigger than the Russian military 381 00:21:57.000 --> 00:22:02.079 size each year, but you're still going to invest what's 382 00:22:02.119 --> 00:22:02.920 our CAPEX plan? 383 00:22:03.599 --> 00:22:05.799 So we have indeed an ambitious cap ex plan of 384 00:22:05.839 --> 00:22:10.119 around twelve billion euros a year on average. About ninety 385 00:22:10.160 --> 00:22:14.839 percent of that is split evenly between generation mainly renewables 386 00:22:14.880 --> 00:22:19.480 and batteries, and infrastructure, which has you know, the networks, 387 00:22:19.759 --> 00:22:23.359 power networks, gas networks on the maintenance side, and also 388 00:22:23.400 --> 00:22:25.880 the local infrastructure, which we didn't spend much time but 389 00:22:25.960 --> 00:22:28.640 dis rehitting this week, cooling, which is obviously also an 390 00:22:28.759 --> 00:22:31.279 important part of this whole equation. 391 00:22:31.880 --> 00:22:35.279 Well, Catherine, thank you so much for coming on the show. 392 00:22:35.759 --> 00:22:38.079 I think I'm going to keep my eng shares because 393 00:22:38.119 --> 00:22:43.200 I accurring into the upper right direction, so that's I 394 00:22:43.240 --> 00:22:47.759 to very much and thanks to your Electric for welcoming us. 395 00:22:47.799 --> 00:22:50.880 And what the Electric is doing is in our opinion 396 00:22:51.039 --> 00:22:54.640 opinion of a lot very positive push towards more integration 397 00:22:55.319 --> 00:22:57.160 and security. So thank you very. 398 00:22:57.119 --> 00:22:58.480 Much, thank you for having me. 399 00:22:58.799 --> 00:23:01.319 So job you want. Let's say something about the uk 400 00:23:01.519 --> 00:23:06.279 ON network because that was ENNGI huge acquisition at the 401 00:23:06.279 --> 00:23:07.359