PRE INVESTIGATION CONCEPT INFORMATION - Organic Power

ORGANIC POWER LIMITEDFBD House, Mardyke Street, Skibbereen, Co. Cork, IrelandTelephone/Fax: 003532851951; email :info@organicpower.ieCompany Registration No. 406133 ;VAT No.:IE6426133VORGANIC POWER LIMITEDFBD House, Mardyke Street, Skibbereen, Co. Cork, IrelandTelephone/Fax: 003532851951; email: info@organicpower.ieCompany Registration No. 406133 ;VAT No.:IE6426133V20) What is Organic Powers profit model and how willit be affected by changes in the energy market 20years from now.The model that has been worked on is a revenue modelthat calculates a 4 cent return on the price of buying thepower versus the price of selling the power. A commercialventure like this will be financed through a series of capitalbonds being raised and a coupon rate attached to same.Oil is at an all time high at present and looks like peak oilprices are coming our way. There is also the rationale ofbeing able to use PHES systems to facilitate theconstruction of wind farms in Ireland to generate additionalGreen Power. PHES systems will enable wind farms selltheir power to the PHES operator and thus reduce thegovernment subsidies. The future is difficult to predict andno one can see what state of play the Wind or PHESbusiness will be in 20 years time. (Leo)21) Organic Power are currently planning to install acapacity of 500MW in Mayo, if they complete theproject in Gleninagh then they would have another500MW and on a day to basis in Ireland we areplanning to have 6000MW (on average 33% efficientwhich is 2000MW) of sustainable generating capacityby 2020 most of which will be used as it is generatedor sold onto the European grid, the bulk of yourexcess energy will occur when you get very high windconditions and between 1am and 6am.This is true, and is the basis for PHES economics.(Jimmy)22) If they build the Gleninagh system then they areonly competing with the operation in Mayo for theexcess wind power thus shoving up the price of yourraw material and reducing their profit. Furthermore ifthe Irish government meets their energy goals of 2020it is far more likely that the household user is going toget a significant price incentives from their electricitysupplier to use this power by going on a night saverwhich will heat their water through the night we wouldvery likely see the return of electric storage heaters.Personal perception by the author of the question andprojection. We see it differently (Jimmy)23) Why not build large windfarms (500 to 1000windmills) and sell ALL the power through the interconnectorto Britain instead of the proposed PHESscheme. Why not store the power near where it ismost needed in central Europe where they have theAlps (up to 4000m) and loads of glaciated water andvery easy access to the French, German, Austrian andItalian nation grids. Furthermore the Alps has thetechnology proven for over 100 years. Once theschemes become more viable will there not besignificant competition from developers in theScottish mountains which can be as high as 1300M.Old Irish problem great idea or we need it but not in myback yard. We would not be doing our economics onexporting power, not our business nor is it in our businessmodel (Jimmy).Directors: Maurice McCarthy, Brian Walsh, James Nolan, Leo O’DriscollDirectors: Maurice McCarthy, Brian Walsh, James Nolan, Leo O’Driscoll45