You are on page 1of 68

Energy Wisdom Programme

Improving Energy Efficiency Reducing Carbon Emissions Meeting the 2050 Challenges

2012-2013

edition

REPORT AUTHORS
Project Management: Nicola REGA (Advisor Environment & Sustainable Development Policy Unit EURELECTRIC Secretariat) Project Coordination: Ins REULET This report was carried out with the contribution of the EWP contact persons in each participating company: Alliander (NL) Hans NOOTER, Senior Consultant CSR DEI SA (GR) Labrini PATMANIDOU, Strategy Department / Head of section, Environmental branch Electricity Authority of Cyprus (CY) Charalambos MENELAOU, Assistant Generation Manager Energias de Portugal (PT) Pedro PAES, Sustainability and Environmental Office Endesa (ES) David CORREGIDOR, Deputy Director of Environmental and Climate Change Department E.ON (DE) Nicole HENKEL, Political Affairs and Corporate Communications ESB (IE) Tony CARROLL, ESB Sustainability Manager ewz Elektrizittswerk der Stadt Zrich (CH) Gian CARLE, Head of Renewable Energy Trading Fortum (FI) Kari KANKAANP, Sustainability Manager, Climate and Environmental Affairs Gas Natural Fenosa (ES) Amado GIL MARTINEZ, Environmental Department / Carbon Management Helsingin Energia (FI) Rauno TOLONEN, Customer Service and Communications / Energy Efficiency Manager Iberdrola (ES) Monica OVIEDO CESPEDES, Environmental Stakeholders and Climate Change Head Department PGE SA (PL) Miroslaw NIEWIADOMSKI, Environmental Protection Department Director SWM Stadtwerke Mnchen (DE) Beatrix WIDMER, Manager Energy Policy VERBUND AG (AT) Jan CUPAL, Innovation, Research & Development / Sr. Innovation Manager, Coordinator for Environment and Climate Change Wien Energie, Elisa SCHENNER, Public Affairs We thank all companies and individual experts for their contribution.

Energy efficiency will play a fundamental role in attaining a secure, competitive and sustainable energy future. Initiatives such as the Sixth Energy Wisdom Programme represent an excellent contribution to addressing our energy and climate challenges. I appreciate EURELECTRICs continued commitment to act as a solid bridge between EU political priorities and local innovative solutions to bring more efficient low-carbon energy to our economy. Our future energy system needs such best practices and I encourage EURELECTRICs members to continue sending such positive signals.

GNTHER H. OETTINGER
European Commissioner for Energy

ENERGY WISDOM PROGRAMME 2012-2013 Edition

Contents
FOREWORD 1. EXECUTIVE SUMMARY 2. InnOVATIVE PROjECTS
On the supply side 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 2.8. 2.9. 2.10. 2.11. 2.12. 2.13. 2.14. Windfloat Development Of Innovative Technology For Offshore Wind Exploration Joint Venture Wind Onshore Activities In Europe And Beyond Solar Energy: Megalopolis PV Project Biomass Power Plant in Vienna Combined Cycle Gas Turbine (CCGT) Unit 5 Research Project On CO2 Capture in La Pereda Less CO2 Project (CCS) Fuel Switching Baleares E.ON Pilot Programme Power To Gas Schlieren District Heating Joensuu CHP-Pyrolasis Project Szczecin CHP-Biomass Improving Energy Efficiency of A Combined Cycle Power Plant Belchatow Power Plant: New Low GHG Emissions Fossil-Fuel 858 MW Unit 14 15 16 17 18 19 20 21 22 23 24 25 26 27

5 9 13

On the demand side 2.15. 2.16. 2.17. 2.18. 2.19. 2.20. 2.21. 2.22. 2.23. 2.24. Smart Grid Implementation in Amsterdam Star Project: Smart Metering And Network Automation Programme Area-Based Retrofit Energy Efficiency Energy Efficiency Lightening System in Storage Buildings and Production Halls Green Building Energy Efficiency 3E-Houses Project Energy Efficiency Verbund Smarthome Worlds Most Energy Efficient Cloud Computing Energy Saving Funds and Energy Efficiency Bonus E-Car in Ireland: Electric Vehicle Charging Infrastructure 28 29 30 31 32 33 34 35 36 37

3. PARTICIPATInG COMPAnIES
3.1. 3.2. 3.3. 3.4. 3.6. 3.7. 3.8. 3.9. 3.10. 3.11. 3.12. 3.13. 3.14. 3.15. 3.16. 3.17. Alliander n.v. DEI Dimossia Epichrissi Illectrismou EAC Electricity Authority of Cyprus EDP Energias de Portugal ENDESA E.ON ESB Electricity Supply Board ewz Elektrizittswerk der Stadt Zrich Fortum Gas Natural Fenosa Helsingin Energia IBERDROLA PGE Polska Grupa Energetyczna S.A. SWM Stadtwerke Mnchen GmbH VERBUND AG Wien Energie

39
40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

4. PROjECT FEATURES
4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. Overview Project Methodology Project Eligibility Project Results Projects Abroad Project Benefits Project Barriers Future investments

57
58 58 59 59 62 63 63 63

ENERGY WISDOM PROGRAMME 2012-2013 Edition

Foreword
Climate change is one of the major challenges the European Union is facing today. Yet this challenge also represents an opportunity for our industry to undertake appropriate action towards achieving major technological improvements. The electricity industry is strongly committed to delivering carbon-neutral electricity by mid-century, as expressed by sixty-one Chief Executives of European electricity companies in 2009 and supported by EURELECTRICs Power Choices study in 2010. However, the transformation of the energy sector towards a more efficient, low-carbon power supply will require significant investment in Europes grid and generation infrastructure. It is therefore fundamental that the EU provides sound energy and climate policies that are able to promote investments in R&D and innovation a key driver to Europes future competitiveness. Within this context, the Energy Wisdom Programme (EWP) is an important framework to present the wide range of activities in which our sector is engaged. Launched in 1998, the programme shows positive examples of electricity companies innovative solutions to reducing carbon emissions and enhancing energy efficiency across the whole value chain from electricity generation, transmission and distribution to end-use energy efficiency. The resulting environmental, economic and social benefits could have great potential for pan-European replication. The EWP has continuously improved its environmental performance: since it was established electricity companies have saved over 730 Mt CO2 eq. in more than 600 projects across Europe. This 6th edition of the EWP report sets out the results for the reporting cycle 2010 to 2011. During this period, over 150 projects have been reported by 16 companies. Thanks to those projects, companies have reduced approximately 99 Mt CO2 eq. and saved over 24 Mtoe in primary fuel. In addition to CO2 emissions reductions and energy savings, other major co-benefits arise from the reported projects: air quality improvements, waste reduction and increased employment. EURELECTRIC thus calls for a strong cooperation between EU policymakers and industry stakeholders to reduce substantial barriers that prevented faster development of climate friendly projects, such as lengthy authorisation procedures and a lack of public acceptance. An investment friendly environment has to be created through the definition of a predictable and transparent regulatory framework in addition to a well-functioning European electricity market. The Commissions recognition that EURELECTRIC can play a role in promoting and spreading innovative projects is illustrated by the introductory words of EU Energy Commissioner Gnther Oettinger. I sincerely appreciate those encouraging words and look forward to maintaining the good relationship between EURELECTRIC and the European Commission. I would also like to congratulate the 16 companies that took part in this 6th edition of the Energy Wisdom Programme for their achievements and efforts towards reaching carbon-neutrality by 2050. I encourage them to continue this good work in the future and hereby invite other electricity companies to join us in the next edition of the EWP report, to be published in 2014.

Fulvio Conti President Union of the Electricity Industry EURELECTRIC

ENERGY WISDOM PROGRAMME 2012-2013 Edition

Membership 2012-2013

ENERGY WISDOM PROGRAMME 2012-2013 Edition

Executive Summary

ENERGY WISDOM PROGRAMME 2012-2013 Edition

What is the EWP?


Since 1998, the Energy Wisdom Programme (EWP) has provided a platform for electricity companies to demonstrate how they are improving energy efficiency and reducing greenhouse gas (GHG) emissions through innovative projects across Europe. In the context of the EUs 2020 energy-climate objectives and the industrys goal of moving towards a carbon-neutral power supply by 2050, this voluntary initiative is the ideal place for electricity companies to demonstrate how they are tackling the challenges ahead. It also encourages the dissemination of best practices. Each EWP reporting cycle covers two years. This sixth edition of the EWP particularly highlights how electricity companies are helping to reduce CO2 emissions and enhance energy efficiency beyond the power sector in transport, industry, buildings and consumer behaviour. However the EWP is much more than a report. The dedicated website www.eurelectric.org/ewp provides an interactive map with details of all projects reported in this edition.

What are the key achievements in 2010-2011?


In this reporting cycle, participating companies reduced or avoided emissions of 99 MtCO2 eq as of result of implementing projects that delivered GHG emissions reductions (Figure 1).

GHG Emissions With Project and Without Project


Mt CO2 eq 250 200 150 100 50 0 2010 2011 2010/2011

With project

Without project

How does the EWP work?


The EWP establishes a reporting and monitoring system that evaluates and documents the environmental performance of the reported projects. The method measures energy efficiency and GHG emissions reductions for each of the projects. The savings are then aggregated in order to provide a global figure. In this sixth reporting cycle, sixteen participating companies from eleven European countries reported 155 projects that led to energy savings and/or GHG emissions reductions. The projects were carried out between 1990 and 2011, but the report only presents results obtained between 2010 and 2011. The five previous reporting cycles cover the period 1990 to 2009. In the year 2011, the 16 participating companies totalled over 90 million customers and 249,081 employees, a turnover of 133.25 billion euros. They accounted for 258.57 GW of installed generation capacity and 473.41 TWh of generated electricity. They also owned almost 1.2 million km of transmission and distribution lines.

Figure 1: GHG emissions without project and with project (Europe, 2010-2011) The greatest emissions reductions or offsets were achieved by the following project types: New Generating Capacity: Fossil Fuel (44%) and New Generating Capacity: Renewables (22%). See Figure 2 for more details.

Reduction in GHG Emissions per Project Type


Upgrade Transmission and/or Distribution Line Voltage 7% Construction of New Transmission and/or Distribution Lines 7% Other Electricity Generation Projects 5% Efficiency Improvement 7% Fuel Switching 2%

New Generating Capacity: Renewables 22%

New Generating Capacity: Fossil Fuel 44%

New Generating Capacity: Nuclear 3% New Generating Capacity: CHP 3%

Figure 2: GHG emissions reductions per project type (Europe, 2010-2011)

10

Executive Summary

Participating companies reduced primary energy fuel use in electricity generation by around 24 Mtoe, and by 2573 GW/h among energy end-users (Figure 3). The projects that saved most primary energy were reported under New Generating Capacity: Fossil Fuel (34%), New Generating Capacity: CHP (23%) and Other Transmission and Distribution Projects (18%).

Which conclusions can we draw?


The ongoing economic crisis has also impacted electricity companies, particularly hitting their cash flows and access to capital. This has made the investment climate extraordinarily difficult, and several projects have had to be delayed or cancelled. Conflicting policy instruments at EU level remain a challenge when it comes to deciding on future investments. New approaches, going beyond simple target-setting, need to be explored, as does the interaction between various policy instruments aiming to promote renewable energy sources, energy efficiency and CO2 emissions reduction. The development of partnerships across the whole electricity value-chain is needed to manage societys energy transition. Involvement is needed from generators to end-users, passing through grid operators, local authorities, and other market players. To get the involvement of end-users right, the new and growing field of energy innovation urgently needs transparent rules to clarify the roles and responsibilities of the many participants involved. Many open issues still need to resolved, including data management, the role of household and industrial end-customers, and the role of third parties delivering new services to those end-customers.

Energy Savings per project Type


Other Transmission and Distribution Projects 18% New Generating Capacity: Nuclear 4% New Generating Capacity: CHP 23%

Upgrade Transmission and/or Distribution Line Voltage 7% Construction of New Transmission and/or Distribution Lines 7% New Generating Capacity: Renewables 4% Efficiency Improvement 3%

New Generating Capacity: Fossil Fuel 34%

Figure 3: Primary energy savings per project type (Europe, 2010-2011)

How is this EWP report structured?


The following section (Section 2) highlights one or two particularly innovative projects per company, including remarks by the project managers who are working daily to reduce the environmental footprint of our sector. Section 3 portrays all participating companies. CEOs have the opportunity to explain their visions and actions towards greening the electricity sector. In Section 4, the results of all projects submitted by participating companies are analysed in detail. More information on all projects can be found at www.eurelectric.org/ewp

What are the main findings?


Investment in the electricity sector was driven by three main challenges: - Reducing fuel import dependency, - Creating secure long-term energy supplies, and - Limiting the risks from climate change and habitat loss. The climate change challenge in particular triggered actions in research, development and innovation, aimed at the development of low-emission technologies. Companies have recognised that electricity grids and storage facilities must be rapidly extended to best use the increasing share of power from renewables. To this end, they are carrying out research into different technologies for storage and load compensation. New smart technologies will enable companies to feed large volumes of renewable energy into the energy infrastructure, provide their customers with more energy saving opportunities and encourage large-scale adoption of electric transportation. Customers will play a major role in driving changes in society, but only if they are able to study their consumption and improve their energy usage. Companies have supported them for many years by offering energy advisory services. Engaging with customers gives companies the opportunity to underline their environmental awareness and enhance their corporate image and public recognition.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

11

Innovative Projects

ENERGY WISDOM PROGRAMME 2012-2013 Edition

13

project reported by

Contact Person: Mr. Joao Maciel Technology Development Director at EDP Innovation Tel: +351210018947 joaogoncalo.maciel@edp.pt

Windfloat Development of Innovative Technology for Offshore Wind Exploration


Project Description
The WindFloat Project, led by EDP in partnership with Principle Power, A Silva Matos and Vestas, developed an innovative technology that will allow the exploitation of the wind potential at sea, at depths of more than 40m. The innovation focus of the project is the development of a floating foundation for multi-MW wind turbines, based on the experiences from the oil and gas industry. The floating foundation is a semi-submersible and is anchored to the seabed. Its stability is due to the use of water entrapment plates, associated with an innovative ballast system. WindFloat adapts to any type of offshore wind turbine. It is built entirely on land, including the installation of the turbine - thus avoiding the use of scarce marine resources. The WindFloat project encompasses the design and construction of a demonstration unit, including a 2 MW turbine. The unit has been installed off the Portuguese coast, close to Aguadoura, and connected to the grid in the end of December 2011. Pre-commercial and commercial phases are also planned, depending on the performance of the demonstration phase. The project is the first offshore wind deployment worldwide which did not require the use of any heavy lift equipment offshore. Also, this is the first offshore wind turbine in open Atlantic waters and the first deployment of a semi-submersible structure supporting a multi-megawatt wind turbine. Furthermore, it will form the basis of a future ocean energy cluster in Portugal.

The deep offshore wind technology, in particular the WindFloat, will allow us to harness stronger and more stable winds, and in the medium term deliver sustainable energy into our electrical system. This is an historic moment that takes my breath away. This is probably the most challenging project in which Ive been involved. My first word is to thank the team and partners as this was the result of a tremendous team work involving several EDP areas and National and International collaborations. I guess no one was expecting a project like this to come from Portugal, yet we have proven the capabilities of the Portuguese maritime industry to adapt and provide the necessary resources to successfully fabricate and deploy an offshore structure of this scale. Now it is time to make extensive testing and validation moving forward in the development of the WindFloat technology.

Project Reason

The existing energy paradigm is being strongly impacted by demographics, scarcity of resources and growing environmental concerns and mandatory targets. These three main drivers lead to two main trends: cleaner generation (on the supply side) and energy efficiency (on the demand side). The WindFloat project addresses the supply side of the global solution as it implies cleaner energy generation. Wind Energy has already proven to be the most mature and competitive renewable energy option, either onshore or offshore, where the wind is stronger and more stable. However, shallow water deployments, using bottom fixed structures, are only limited to specific regions (e.g., North Sea in Europe), so one should look at deep offshore wind using floating foundations as the way to explore the offshore winds in the medium term. The WindFloat was selected because of its key differentiating characteristics highlighted above.

Project Appraisal and Estimation Methods

With an installed capacity of 2 MW, the offshore wind turbine produced, in 2011, about 25 MWh, corresponding to just 12 days of conditioned operation (namely with turbines capacity limited to 1.2 MW), during the commissioning process. During the demonstration phase, the wind turbine is expected to produce between 4.4 and 5.3 GWh/year, i.e., 25 to 30% capacity factor (in offshore wind commercial project, one could expect capacity factors above 40 to 45% ). Emissions with project: no CO2 emissions from windpower. Emissions without project: calculated assuming the electricity produced by the generation unit, had it not been implemented, would have been generated by the companys thermoelectric plants, with an emission intensity of 635.3 tCO2/GWh. In 2011, the project avoided 16 tCO2. When fully operational, we estimate the Windfloat project to avoid around 3000 tCO2/year. Fuel/Energy savings: calculated by converting the electricity production of the wind turbine into primary energy, using the average net heat ratio of the companys thermal power plants. In 2011, energy savings amounted to 198 TJoule.

14

Innovative Projects

project reported by

Joint Venture Wind Onshore Activities in Europe and Beyond


Project Description
From planning to realising a project two frontrunners in the field of renewable energy have combined their know-how and financial strength. A project developer and an energy supplier are following a new path while concentrating competences and bringing projects from planning to realisation. With the sustainable joint venture starting only last year, the actual CO2 reduction is still comparatively small (70,000t in 2011). But this sustainable project has impressive mid-term prospects: the exponential growth shows savings of 108,000t in 2012, 363,100t in 2013 and reduced greenhouse gas emissions in 2020 of 3 million t/a. SWM has a 33% share in the wind onshore activities of wpd Europe. The joint venture covers international wind-onshore activities in Europe and Canada. The common goal is now to implement the activities planned and to plan, build and operate more wind parks with some thousands of MW.

Contact Person: Dr. Bernhard Boeck Project Manager Tel: +49(0)8923614627 boeck.bernhard@swm.de

Project Reason
The wpd AG, as leading designers and operators of wind energy, and the Stadtwerke Mnchen (SWM) have an expansion strategy in the field of wind power. The common goal: developing wind energy cooperation between European countries. The partners combine experience in the areas of onshore wind energy and energy supply strongly supported by funds. By participating in the project development company operating throughout Europe, SWM is deliberately going upstream, underlining in addition that any energy policy based on 100% renewables must be European. Currently, wind energy has the biggest potential among renewables. Wind onshore is the most cost-efficient and will be cheaper than fossil fuels in the next decade. The joint venture represents an economically meaningful way of achieving the desired objective to supply power by 2050 mainly from renewable energy sources. Further advantages include: earlier, faster and more economic access to wind onshore projects for a local utility like SWM; a strategically important reaction towards a new market structure in the field of renewables; the possibility for SWM to open up for new renewable generation portfolio; important instrument in the Renewable Expansion Strategy to reach its goal of 100% by 2025 in a cost-effective and economical way; intensified cooperation for SWM with a powerful and well established partner; stabilising the role of SWM as a player in the renewable market; projects will play an important role on the renewable generation path the goal is 7.5 billion kWh/a, of which the joint venture contributes 1.2 billion kWh/a.

Project Appraisal and estimation method


CO2 reduction of the wpd-cooperation: 3,000,000 t/a (2020) A sample calculation to illustrate the CO2 savings: With an onshore wind capacity of 1,000 MW, an average of 800,000 households can be supplied with green electricity annually and 1.7 million tons of CO2 could be saved.

So far, it is unusual that a local utility is active in the field of europe-wide wind energy project development. Due to the fact that SWM is consequently going upstream to ensure a sustainable competitive position in the relevant areas of energy production and energy supply, we established this exclusive joint venture with wpd as a strong and reliable partner in the field of wind onshore development. The cooperation makes it possible to bundle the companies core competencies and to act quickly and flexibly on the European wind onshore market. For SWM, it is important to focus on economic projects in regions where the best natural, legal and regulatory conditions prevail. The logical consequence is to act even as a local utility on a European basis. A further benefit for SWM is the possibility to build wind onshore portfolios without having to participate in bidding contests a huge draw-back for local utilities at the moment. In addition, with our portfolio approach we reduce the dependence on single market uncertainties and price developments significantly. I am looking forward to the possibility to steer those new projects for SWM.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

15

project reported by

Contact Person: Mr. Georgios Markou Project Manager Tel: +302112118082 gmarkou@ppcr.gr

Solar Energy: Megalopolis PV Project


Project description
The project is expected to be one of the largest PV plants in Europe. PPC Renewables, a 100% subsidiary of PPC S.A., is in charge of completing its implementation. PPCR is in the process of implementing a 50 MW photovoltaic project near the city of Megalopolis located in the Arcadia prefecture in Peloponnese. The project is to be developed as two single PV plants by two PPC Renewables 100% owned SPVs: Arkadikos Ilios I (39 MW) and Arkadikos Ilios II (11 MW). The PV plants will be installed at the location of a depleted lignite mine, previously used by PPC to extract lignite for electricity production. The photovoltaic power plant installation area will cover up to 2.03 sq. km. The annual electricity generation is expected to be 70,000 MWh.

The Megalopolis PV Project will be the biggest solar park in Greece, and the first solar park among a large portfolio of about 360 MW to be constructed by PPC Renewables. The project is fully licensed and, after a public tendering procedure for the construction of a turnkey PV power plant, PPC Renewables has recently selected the EPC contractor. Construction is to begin within the next months. The project enjoys high levels of irradiation as well as a very attractive feed-in tariff regime. PPC Renewables expects that, following the notice to proceed to the EPC contractor, the project will be fully operational within 14 months. The project will consist of 212,740 PV panels, 36 central inverter stations and also includes the construction of a high voltage substation.

Project reason
PPCs strategy for renewable energy sources is based on the development of all categories and the growth of PPC Renewables portfolio. The Megalopolis PV power plant is included among PPC Renewables most important projects.

Project appraisal and estimation methods


emissions with project (2013) The CO2 emissions from electricity generation of the project are zero. Emissions without project (2010) With an average CO2 coefficient for the companys Interconnected System of 1.057 kg/ kwh (year 2010) for 70,000 MWh energy generation, the expected CO2 emissions are 74,000 tonnes or 74 kt. Emissions reductions Emissions reductions=emissions without project-emissions with project CO2 emission reductions (2013) = 74 ktCO2 - 0 ktCO2 = 74 ktCO2 Fuel saving During 2010, PPCs thermal plants produced 27,440 GWh from lignite, 113 GWh from heavy fuel and 6,042 GWh from natural gas. The average specific consumption of PPCs thermal plants is estimated at 2.264 kcal/kwh. Therefore, the amount of thermal energy to be saved with the project for 70,000 MWh is 158.48 Gcal or 15.85 toe of the mixture.

16

Innovative Projects

project reported by

Biomass Power Plant in Vienna


Project description
Turning wood into watts and warmth briefly describes the key task and benefit of the large-scale forest biomass power station located in the city of Vienna in the southeastern district of Simmering. The woodfired cogeneration plant (combined heat and power generation/CHP) was launched as a flagship project to reduce greenhouse gas emissions, boost renewable energy technologies and maximise the efficiency of energy conversion, all at the same time. The plant is a joint project undertaken by Wien Energie (the municipal energy provider of Vienna) and the sterreichische Bundesforste AG (Austrian Federal Forests). By combining the use of a local green energy source the plant is almost exclusively fired with wood chips from forest residue with advanced CHP-technology, the plant contributes to an efficient and environmentally sound supply of heat and power to Austrias capital. In order to realise the project, favourable framework conditions were pivotal, such as subsidies via a fixed feed-in tariff for green electricity and the availability of an ideal plant location. Hence, an existing Wien Energie thermal heat and power generation site was selected to utilise existing infrastructure such as the district heating and power grid, rail and road connections and qualified staff. Given the respectable size of the plant, which requires a significant biomass input, logistics and long-term contracts regarding fuel supply played an important role. The relatively short transport distances more than 80% of the wood is supplied from the surrounding area within a radius of 100 km or less save costs and bring added value to the region. The woody biomass is either transported to the biomass power plant directly or indirectly through the central transshipment site (Albern Port). The biomass is incinerated in a circulating fluidised bed boiler producing high pressure steam. It is simultaneously converted into electricity and district heat by using an extraction condensing turbine with intermediate super heating. High efficient cogeneration raises the fuel efficiency of the biomass power plant up to 80%. The installed capacity is 24.5 MW electric output (16.2 MW electric and 37 MW thermal are generated in CHP-operation). The plant supplies the equivalent of 48,000 households with electricity and 12,000 households with district heating.

Contact Person: Mr. Thomas Strauss Wien Energie Fernwrme / Manager Tel: +43 (1) 4004 70003 thomas.strauss@ fernwaermewien.at
A mix of innovative solutions is the key to a sustainable energy supply tomorrow. The forest biomass power plant in Vienna presents a role model in this respect. It is embedded in Wien Energies large energy production and supply system. It combines the use of renewable energy sources with advanced CHP technology. However, it not only contributes to environmental benefits such as the reduction of fossil fuel consumption and CO2 emissions but also enriches the region with social and technological benefits. The citizens of Vienna benefit from improved air quality, the creation of employment in the region and increased autonomy as the fuel (wood) is homegrown in arborous Austria. Our project proves that caring for nature can benefit both, the environment and the citizens.

Project Reason
The idea to build a large biomass power plant goes back to the end of the 1990s when the political will to significantly increase renewable energy production and reduce CO2 emissions gained importance in Austria and the EU as a whole. Wien Energie has always been committed to the protection of the environment and the efficient use of resources. Wien Energie has longstanding experience in operating high efficient CHP plants and is increasingly investing in renewable energy. The biomass cogeneration plant represents the synthesis of these two sustainable approaches. Since 2006, the biomass plant has been making a significant contribution to reaching the emission abatement targets set in the Kyoto Protocol and the renewable targets required by the Renewable Energy Directive (2001/73/EC). Furthermore, social benefits are triggered through creation of regional employment and increased security of supply.

Project appraisal
By using forest biomass to produce electricity and district heating, the amount of fossil fuel needed could be reduced by the equivalent of around 44,000 tonnes of heavy oil per year in comparison to a conventional power plant with the same efficiency factor. Compared to conventional electricity (ENTSO-E mix from fossil fuel) and heat production (from Austrian CHP plants), the biomass power plant in Simmering emitted 149,000 tonnes of CO2 eq less in 2010, 147,000 in 2011 and projected 154,000 in 2012.
ENERGY WISDOM PROGRAMME 2012-2013 Edition

17

project reported by

Contact Person: Mr. Polyvios Polyviou Generation Development Manager Tel: +357-22201520 ppolyviou@eac.com.cy

Combined Cycle Gas Turbine (ccgt) unit 5


Project Description
Vasilikos Power Station of the Electricity Authority of Cyprus is situated on the southern coast of Cyprus. Phase I was commissioned in 2000 and consists of two 130 MW heavy fuel oil steam units (Units 1 & 2) and one 38 MW diesel oil fired gas turbine. Phase II consists of one 130 MW heavy fuel oil steam unit (Unit 3). Phase III consists of a CCGT block in a configuration of two gas turbines and one steam unit (Unit 4) with a maximum continuous rating (MCR) electrical output of 220 MW. The Vasilikos Power Station Phase IV project consists of a CCGT block in a configuration of two gas turbines and one steam unit (Unit 5) with a maximum continuous rating (MCR) electrical output of 220 MW. The CCGT will initially operate on distillate fuel oil and will switch to fuel gas once natural gas becomes available at the site. Due to recent developments involving the possible discovery of natural gas reserves in Cypruss Exclusive Economic Zone, the initial plans to supply liquefied natural gas (LNG) and develop the necessary infrastructure for regasification of the LNG have been suspended. EAC is now awaiting a political decision as to how and when natural gas will be made available in Cyprus. The distillate fuel oil is a low sulphur fuel, containing a maximum of 0.1 per cent sulphur. This compares favourably to the heavy fuel oil used on-site for the other three steam units, which has a typical sulphur content of less or equal to 1.0 per cent. The first fuel firing of gas turbine GT51 of unit 5 took place on 14 April 2011 and the respective firing of gas turbine GT52 on 10 May 2011. The performance tests were then carried out and the two gas turbines operated in an open cycle mode. Full commercial operation was scheduled to take place towards the end of 2011. Unfortunately on 11 July 2011, due to an explosion at the adjacent Mari Naval Military Base, Vasilikos Power Station suffered extensive damage which caused the complete interruption of its operation. Unit 5 suffered damages as well and the EAC is currently proceeding with its restoration along with the stations other four units. It is expected that Unit 5 will be back in service in an open cycle in July 2012. The 170 MW minimum electrical output will be achieved on both distillate and gas fired operation. The conversion of the CCGT plant from distillate fuel operation to gas-fired operation was included within the Gas Conversion Works of the EPC (Engineer Procure Construct) Contract. The plant has been supplied with bypass stacks. It will operate continuously throughout the year and has been designed to have a minimum net operational life of 30 years. During natural gas firing emissions of oxides of nitrogen (NOx) will be controlled by the use of Dry Low NOx burners. The flue gases from each gas turbine will be discharged via a dedicated 75m stack. A 25m blast stack will also be provided for each gas turbine. During distillate fuel oil firing the emissions of NOx will be controlled by water injection. Unit 5 is expected to be officially commissioned in the second half of 2012.

Vasilikos Power Station Phase IV consists of one combined cycle unit with a capacity of 220 MW (Unit 5). The contract for the construction of the unit was awarded to the joint venture J&P Avax / Hitachi Power Europe in 2009. A separate contract was awarded for the maintenance of the gas turbines for a period of six years from the date of commercial delivery of the turbines. The contract was awarded to the manufacturer of the gas turbines, General Electric USA. The contract covers the planned maintenance of the gas turbines as well as the provision of spare parts. At the same time a strategic stock of spare parts will be kept on site in order to avoid delays in case of unexpected defects. During the first years of operation the unit will operate on distillate oil until the arrival of natural gas in Cyprus. Thereafter it will operate on natural gas as the main fuel. The new CCGT unit will provide electricity to the local grid in the most efficient, reliable and environmentally acceptable manner currently commercially possible, providing the Electricity Authority of Cyprus with the flexibility to meet the growing demand and thus securing the electricity supply on the island.

Project Reasons

The investment is part of the generation expansion plan of the Electricity Authority of Cyprus for securing the islands power supply taking into account the latest global developments in the energy, environmental and electricity sector as well as the necessity to fully implement the European Directives and Regulations.

Project Appraisal and Estimation Methods

Apart from the obvious economic benefits, it is expected that the project will result in significant environmental benefits (e.g. lower CO2-emissions, lower NOx emissions), economic benefits (less fuel consumption) and improved system reliability.

Other Information
The cost of No.5 Unit is expected to reach 239 million, excluding any cost for its restoration due to the damages suffered from the explosion.

18

Innovative Projects

project reported by

Research Project on co2 capture in La Pereda


Project Description
Endesa, in collaboration with Hunosa and the National Agency for Scientific Research Council (CSIC), has carried out the construction of a 1.7 MW pilot plant for CO2 capture in La Pereda (Mieres, Asturias), close to the modern thermal power station of La Pereda, owned by Hunosa. The plant has been designed for the development of the cycle carbonation technology for CO2 capture, using limestone as sorbent. The plant has two circulating fluidised bed reactors with 15 metres interconnected. In the calcination reactor, the limestone will decompose into calcium oxide and highly concentrated CO2. The calcium oxide is then sent to the carbonation reactor where it reacts with the combustion gases by capturing the CO2 to create limestone again. The plant is designed to treat up to 2,600 m3/h of flue gas and has a capture capacity of 8 tonnes of CO2 per day with efficiencies of around 90%. The implementation began at the end of 2011; the testing period of CO2 capture began in early 2012. This plant is the largest in the world with this CCS technology, and is also the first time that this technology has been integrated into a thermal plant to treat real combustion gases.

Contact Person: Mr. Andrs SanchezBiezma R&D Unit Project Manager Tel: +34912131145 andres.sanchez@endesa.es
With its 2009-2013 Technology Plan Endesa has strengthened its research activities, technological development and innovation in order to achieve the highest efficiency levels while seeking solutions to a sustainable energy model. In this model, Endesa is committed to taking leadership in CO2 reduction technologies through developing CCS projects. Endesa is actively taking part in the European Unions energy policy, which highlights CCS as a priority technology, as set out in the Seventh Research Framework Programme. Among the different CCS projects in which Endesa is involved, we would highlight the following: Compostilla-OXY-CFB-300 project, to develop the oxy-combustion technology in circulating fluidised bed boilers with CO2 storage in deep saline aquifers. "Less CO2 in Compostilla" project, to capture CO2 using chemical absorption by amines. La Pereda project, as described here. CO2 capture pilot plant with algae, developed in the thermal power plant in Almera. The objective of these projects is to validate the selected capture technologies at a commercial scale. This will allow the renewal of existing fossil fuel power plants while reducing CO2 emissions into the atmosphere as part of the fight against climate change in the near future.

Project Reasons
Carbon capture and storage (CCS) is a powerful tool to mitigate climate change. Endesa therefore supports technological leadership through the development of a number of different CCS projects. The CSIC has been collaborating with Endesa in different research projects for years. Since 2000 it has been developing the application of carbonation-calcination cycles for CO2 capture processes from coal combustion. These tests have obtained promising results in the laboratory, showing a great potential to reduce the cost of CO2 capture. This system is applied to existing and newly constructed coal plants because the high energy consumption required for the regeneration of the sorbent (calcination) is recovered in heat sources at high temperature, facilitating its use in a steam cycle power plant. The construction of the La Pereda pilot plant is the next milestone towards the development of this type of CO2 capture. The objective of this project is to demonstrate the technical feasibility of this capture technology, at a lower cost than other alternatives.

Project Appraisal and Estimation Methods


This project is at a pilot phase so it is not yet possible to estimate the real emissions reductions that it could generate. However, the reduction potential is clear as it would allow the capture of CO2 emissions generated in the operation of power plants. In addition to the construction and start of the pilot plant in 2011, we have worked in the laboratory with 30 KWt, stably and continuously achieving efficiency ratios above 90%. Based on these efficiencies, we have developed an integration analysis of this technology in a real plant. First results show that the plant efficiency would be reduced by merely 7-8 percentage points, compared to the 10-12 points of other, more developed technologies that were considered, such as post-combustion with amines or oxy-combustion. During 2012, we will try to validate the previous laboratory results at a pre-industrial scale.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

19

project reported by

Contact Person: Mr. Carlos Perez Ros Less CO2 GNF Project Manager Tel: +34 915676000 cperezr@gasnatural.com

Less CO2 Project (CCS)


The Less CO2 Project studies the technical viability of capturing carbon dioxide (CO2) in a cost-effective way through carbonation and calcination technologies. The 300kWt demonstration plant, the first of its kind worldwide, is located next to the La Robla coal power plant in the Spanish province of Len. The plant commissioning work began under the CENIT CO2 framework, and was carried out from 2006 to 2009. A National Consortium for Technical Investigation was in charge of the programme, and as a result of Gas Natural Fenosas active membership in the CENIT CO2, the plant was commissioned in 2010. Since then, several tests and studies have been conducted to set operational and design parameters which would allow the commissioning of a 5MWt plant in the near future. The carbonation and calcination technology is based on the reaction between CO2 and calcium oxide (CaO) to produce calcium carbonate (CaCO3). The industrial facility consists of two interconnected reactors, a carbonator and a combustion chamber, both running at atmospheric pressure and at temperatures of 650- 700C and 850-950C respectively. In the carbonator, the fuel combustion (biomass) produces CO2, which reacts with the CaO added to the combustion to produce CaCO3. The combustion emissions are therefore CO2-free. The CaCO3 is then burned in the combustion chamber to produce CaO, which is re-introduced into the carbonator, closing the cycle. Overall process efficiency is determined by the combustion temperature, which is therefore a key factor to manage. Theoretically, the carbon capture efficiency of this process is 100%, however experimental results so far show 80% efficiency. The development of carbon capture and storage technologies is considered as one of the measures with a high potential of reducing greenhouse gas emissions. The challenges associated with climate change are driving actions by the energy sector in research, development and innovation. Following this trend, and in accordance with Gas Natural Fenosas business strategy on climate change, the Less CO2Project addresses Gas Natural Fenosas commitment through research and development on carbon capture and storage technologies. Main objectives: Develop Carbon Capture Technology through R&D projects. Test a new sort of power plant, able to produce electricity and to remove CO2 from the atmosphere at the same time.

Why was biomass chosen as the project fuel? The carbonator needs a high volatile fuel, and biomass meets perfectly this requirement. On the other hand, biomass is a natural way to reduce the CO2 concentration in the atmosphere, therefore CO2 capture and storage from biomass combustion is a way to reduce CO2 concentration in the atmosphere and to produce energy at the same time, so the concept 'negative emissions' comes up. The process requirements will be perfectly met by using another high volatile fuel, but in this scenario we wont be able to talk about negative emissions but only emissions reduction. That is why biomass adds an extra value to the Project. In fact, Gas Natural Fenosa obtained the patent for 'Procedure and device for the CO2 free biomass combustion'.

Project Description

Project Reason

Project Appraisal and Estimation Methods

Project Appraisal: Optimize the 300 kWt plant and study the technical and economical viability in a 5MWt plant. Develop an experimental programme in order to study: operation parameters, potential fuels and sorbents. Track different sorts of reactors in order to interpret the experimental data obtained. Estimation Methods: CO2 emission factor of cellulose: C6H10O5 + 6O2<-> 6CO2 + 5H2O; which implies 1,623 kg CO2/ kg of cellulose NCV of biomass: 15 MJ/kg Installed Capacity: 300 kWt Full Load Equivalent Hours: 4000 hours/year Capture Efficiency: 80% Electricity generation efficiency: 40% Biomass Consumption: (300 kW x 4000 hr/yr) / (15 MJ/KG) = 288 tons of biomass/year Absorbed Emissions: 0.8 x 288 tons of biomass/yr x 1.623 tCO2/ton of biomass =374 tCO2/yr Electricity Generation: 0.4 x (300 kW x 4000 hr/yr) = 0.48 GWhe Emissions Factor: - 374 tCO2/0.48 GWhe = -780 tCO2/GWhe

20

Innovative Projects

project reported by

Fuel Switching Baleares


Project Description

Contact Person: Mr. I. Pescador Chamorro Director - Power generation Islands Tel: +34 912131442 isidro.pescador@endesa.es

Endesa is committed to developing projects that improve energy efficiency, thus reducing the environmental impact of its projects. Therefore, Endesa, anticipating the arrival of natural gas to the Balearic system, has been meeting the needs of new production capacity by incorporating new combined cycle. The plants included in this project are the power plants Cas Tresorer and Son Reus, both located in the municipality of Palma de Mallorca. Cas Tresore has two combined cycle with a total installed electrical power of 477,4 MW. Son Reus has two combined cycles for a total of 457,6 MW while the two gas turbines and two diesel motors from the Ibiza plant that have been converted to add a power of 88,4 MW. Up to now the plants have been operated as combined cycles fueled by diesel. However, these were developed to consume gas when this was available in the islands after incorporating certain modifications. After completion of the pipeline in 2010 which supplies natural gas to the Balearic Islands, Endesa began working for the conversion to natural gas of the combined cycle plants Cas Tresorer and Son Reus in Majorca, and Ibiza power plant. During 2011 the conversion of the different groups included in the project took place and the groups are already operating with natural gas, making it possible to convert a total of 1023 MW for the use of natural gas. This is a very ambitious project, not only because its objective is to get the gasification of two islands, but also because from a technical perspective to adapt the combined cycle (gas turbines based on GE technology 6FA / FA + e) and diesel motors (MAN 48/60) so it can operate with two combustibles, through the use of gasoil (combined cycle) or fuel oil (diesel motors) to natural gas, is a world premiere. This has led to some technical difficulties due to lack of technical expertise, as there are no similar experiences to draw upon. This conversion, which represents an investment of 45 million Euros has involved the installation of a regulating and metering station of gas at each plants and equipment modifications to the combustible supply, combustion chambers and systems control to fit the new operation. Once these modifications have been implemented, the natural gas is considered as the principal combustible, while diesel fuel becomes the reserve combustible to be used only during periods of unavailability of natural gas to ensure electricity production. Anticipating the arrival of natural gas to the Balearic system, Endesa has built and started during the 20022010 period four combined cycle, the most efficient and with the lowest environmental impact technology that currently exists in the field of power plants. The use of natural gas as combustible for electricity production in the Balearic power plants implies a diversification of energy supply sources. It also implies an lengthening of the components lifetime and at the same time a very important simplification is achieved in the management of fuel due to the elimination of truck traffic for the transport of gas oil. This fuel switching has resulted in a increase of the energy efficiency of the power plants and also a significant reduction in CO2, S2O and particulate matter emissions has been achieved. Also the arrival of natural gas to island systems enables a substantial reduction of operating more polluting equipment.

Contact Person: Mr. R. Fortuny Zaforteta Project Manager of the switch to natural gas in the Balearics Tel: +34 971066503 raimundo.fortuny@endesa.es
For Endesa, energy efficiency means transforming and using energy in the most intelligent and optimum way possible throughout its value chain while maintaining the same quality of the services it offers its customers. The energy efficiency Endesa achieves in using the natural resources at its disposal is a key parameter for the companys generation business. Efficiency improvements in the generation business directly impact the consumption of primary energy and help slash CO2 emissions, as a high percentage of fossil fuels are used to produce electricity. The project "Fuel Switching Baleares" uses the best available technology for its business, analysing and anticipating the availability of new, more efficient resources in the territory where it operates.

Project reason

Project appraisal and Estimation Methods

The introduction of natural gas as fuel in combined cycle plants of Mallorca offers significant environmental and technical benefits that are specified in a substantial reduction in greenhouse gas emissions to the atmosphere: 31.34 % reduction in carbon dioxide emissions (CO2) 58.3% reduction of nitrogen oxides (NOx) 100% reduction of sulfur dioxide (SO2) 100% Particle Reduction The above percentages mean a reduction of emissions into the atmosphere, with reference to the year 2009 (when it had not yet begun the process of transformation), about 282098 tons of CO2, 2478 tons of nitrogen oxides, 701 tons of SO2 and nearly 69 tons of particulate matter each year.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

21

project reported by

Contact Person: Dr. Urban Keussen Senior Vice President Technology & Innovation Tel: +49 211 4579 964 urban.keussen@eon.com

E.ON Pilot Programme Power to Gas


Project Description
E.ON is building an energy storage plant in Falkenhagen, Germany, to convert excess wind power into hydrogen by electrolysis. The hydrogen will be carried via pipeline to a connection point on the natural gas grid, where it will be injected into ONTRAS/VNGs high-pressure transmission pipeline. Through this project, E.ON will become one of the first companies worldwide to demonstrate how surplus renewable energy can be stored within the natural gas grid, essentially removing the link between generation and demand. There will also be opportunities to establish the potential for converging electricity and gas grids, determine the optimum mixture of hydrogen within natural gas, and investigate the possibility of using the hydrogen-rich gas to generate electricity using combined heat and power plants.

If Europe increases the proportion of fluctuating wind and solar energy in power generation as planned over the next years and decades, then todays electricity grids and available storage capacity will no longer be sufficient. Electricity grids and storage facilities must be rapidly extended to make the best use of the increasing quantity of power from renewables. For this reason, E.ON is carrying out research into different technologies for storage and load compensation. The most promising type of storage for large quantities of energy is the extraction of hydrogen from excess regenerative electricity. This hydrogen will be fed into the existing natural gas network. In this way, large quantities of energy can be stored and transported. In the medium to long term this storage technology, which is referred to as power to gas, could provide the required balance between supply and demand. In principle, a mass storage facility and hence a very large part of the required infrastructure is already available with the natural gas networks. We will intensively test and develop this technology at our Falkenhagen pilot plant.

Project Reasons
Power-to-gas is a highly efficient way of storing surplus energy from renewable sources, such as solar and wind power, until it is required, balancing long-term fluctuations in generation. The conventional conversion process involves using electricity to electrolyse water, producing hydrogen. Alternatively, CO2 from bio-energy facilities can be converted to bio-methane, which can then be fed into the natural gas grid without any blending limitation.

Project appraisal and Estimation Methods


Using innovative technology, the Falkenhagen storage plant will produce up to 360Nm/h of hydrogen from 2 MW of wind power through electrolysis. The hydrogen will be fed into the natural gas pipeline at around 2 percent by volume, at a maximum operating pressure of 55bar(g), effectively storing and transporting surplus renewable energy. The work scope will include the engineering, construction, commissioning and start-up of a containerised 2 MW electrolyser and compression plant. In addition the project will provide a power substation, metering station, hydrogen pipeline and natural gas grid access station. The diverse programme of work will encompass conceptual design, detailed engineering, project management, tendering, construction, commissioning, operation, optimisation and standardisation of the plant, right through to negotiations with all relevant authorities, as well as gas and electrical grid operators. Although proven electrolysis technology will be used to get the power-to-gas plant up and running, the project will enable E.ON to gain a greater understanding of the technical and regulatory challenges involved in the set-up and operation of such storage plants, and to acquire valuable practical experience for application in future multiple or larger installations. The knowledge and experience gained will allow E.ON to define sound business models and place it in a strong position to win business in countries looking for proven, cost-effective and environment-friendly ways to store renewable energy. Above all the project will demonstrate the effective storage of renewable energy within the gas grid.

22

Innovative Projects

project reported by

Schlieren District Heating


Project Description

Contact Person: Mr. Christoph Deiss Head of Sales Tel: +41 58 3194391 christoph.deiss@ewz.ch

Schlieren, a municipality in the canton of Zurich, is a former industrial zone that has been transformed into a new residential district. The supply of district heating and cooling is typically cost-effective in areas of high-energy demand. In cooperation with the City of Schlieren and the Swiss Post, ewz (Elektrizittswerk der Stadt Zrich) has created a major energy network that takes advantage of locally available heat sinks and sources and local demand for heating and cooling. The energy network exploits the proximity of environmentally friendly waste heat arising from the cooling process for heat generation purposes. Treated wastewater from the nearby sewage plant is used to balance out the network's heating and cooling needs. If the demand for cooling produces surplus heat, the system is cooled with water from the plant. This is a highly efficient cooling process, since the water is typically colder than outside temperatures in summer. If the demand for heating produces surplus cooling, water from the plant is used as a source for the heat pumps. The Schlieren energy network is one of Europes largest facilities using treated wastewater as an energy source. ewz submitted this project as part of its bid in a public tender in 2005. The energy plant for the Swiss Post distribution center was first realized in 2006. Today, a number of heating and cooling power stations meet the heating and cooling needs of office buildings, a shopping center, a Do-it-yourself market and apartment blocks. Zurich Insurance's central computing center feeds additional heat into the network. The energy supply includes a large-scale heat pump that operates on ammonia, an environmentally friendly substitute with a low climate change impact. The success of this project is testimony to how energy-efficient and competitive solutions can be created using an innovative combination of energy systems. The Schlieren energy network is a prime example of how heating and cooling demand can be met by a large-scale, environmentally friendly, cost-effective system that uses treated wastewater as an external energy source.
post centre Mlligen heat requirement per year Cooling requirement per year Heat pump (NH3) Refrigerant machine (NH3) Gas/oil-fired boilers (peak load) Ecology Saving of fossil fuels per year corresponding CO2 reduction per year
9100 MWh natural gas/oil

As an energy contractor, we develop environmentally friendly and competitive solutions in order to provide our customers with a reliable supply of heating and cooling energy. In the town of Schlieren we have several major customers with heating and cooling needs, such as the Swiss Post's distribution center and a new residential district. By means of a district heating and cooling grid, ewz has connected the heat sinks and sources in a two-stage project that uses wastewater from the nearby sewage plant to balance out the system's heating and cooling needs. ewz submitted this solution in its bid as part of a public tender in 2005. The cost-efficient solution with tailor-made contracts for all partners involved guarantees heating, cooling and power supply 24x7, 365 days a year. This carefully developed, state-of-the art project is worthy of repetition as it brings about a considerable reduction in the amount of energy required not to mention CO2 emissions.

Entire Schlieren network 52,000 MWh 21,800MWh 11.1MW 9.0MW 17.0MW 48,700MWh 8,100t

9,500 MWh 8,400MWh 5.6MW 4.3MW 6,100MW 6,100MWh 1,200t


Gas/Oilfired boilers

Existing energy network using waste heat. 8200 MWh

29200 MWh 22 400 MWh wastewater purification plant

54200 MWh

52000 MWh heat

Heating units/ 16800 MWh refriwaste heat used geration plants 8000 MWh waste heat unused 22500MWh

2200 Mwh loss to network

9100 MWh electricity

21800 MWh cooling 700 MWh loss to network

ENERGY WISDOM PROGRAMME 2012-2013 Edition

23

project reported by

Contact Person: Mr. Jukka Heiskanen Head of R&D, Heat Division Tel: +358104524250 jukka.heiskanen@fortum.com

Joensuu CHP-Pyrolysis Project


Project description
The aim of the project is to build the worlds first commercial-scale demonstration plant based on combined heat and power (CHP) integrated fast pyrolysis of biomass, producing bio-oil to replace heavy fuel oil. The plant will be constructed at the Joensuu CHP plant in eastern Finland. Fortum will implement the project in cooperation with Metso and VTT. The consortium (Fortum, Metso, UPM and VTT) has developed a pyrolysis process which integrates a conventional fluidised bed boiler. In this CHP-integrated bio-oil production process solid biomass is pyrolysed and condensed into liquid form. This so-called fast pyrolysis bio-oil is derived from biomass by a thermal process without the presence of oxygen. The produced bio-oil is a complex organic mixture with a high energy density compared to forest biomass. It is a suitable fuel for district heat production and the processing industry, and has a great potential to replace fuel oils. The planned annual capacity of bio-oil is 50,000 t/a corresponding to about 200-250 GWh of fuel. Primary raw material is forest residues. Pyrolysis bio-oil can be produced from almost any organic material, but to ensure a sustainable and a renewable product, only 100% renewable biomass will be used as raw material. In order to increase demand for pyrolysis oil in local fuel markets, the target is to promote the standardisation of bio-oil.

Being involved in the development of an innovative new technological solution for sustainable use of resources is utmost challenging, but also rewarding", says Jukka Heiskanen, Head of R&D in Heat Division. "Fortum, Metso and VTT (Technical Research Centre of Finland) each being leading organisations in their business area are in an excellent position to create a robust new technology concept for biomass utilisation. Our project is a good example of joint interests of political decision makers who need a solution for climate change and companies that can create opportunities for future business. If this project is successful, the developed pyrolysis technology can be used extensively providing an important addition to climate change mitigation toolbox. This is one of our solutions to create energy that improves life for present and future generations.

Project reasoning
Fortum's long-term aspiration is to be a CO2-free power and heat company. Climate change mitigation is one of the core areas in the company's strategy and the company wants to provide sustainable solutions for the society. At least in the beginning, the bio-oil can be used in Fortum's own energy production plants. In addition to business benefits, the replacement of fossil fuels with renewable and sustainable fuels is one of Fortum's actions towards CO2-neutral production. By utilising domestic forest biomass as raw material for bio-oil, Fortum wants to ensure that the raw material does not compete with food production. Fortum has recently established guidelines and criteria for sustainable use of bioenergy in its energy production.

Project Appraisal and Estimation Methods


The EUs RES Directive sets sustainability criteria for biomass-based fuels. Based on our analyses, replacing fossil fuels with pyrolysis oil reduces greenhouse gas emissions by more than 70% compared to fossil fuels, therefore clearly fulfilling the Directives requirement of 60% emissions reduction. Using 210 GWh (50,000 tonnes) of pyrolysis oil to replace heavy fuel oil, the CO2-emission and SO2emission reductions will be about 59,000 t and 320 t respectively.

Project timeschedule
The investment decision was made in February 2012 and detailed engineering began immediately. Commissioning of the pyrolysis plant is planned for autumn 2013.

Other benefits of the project


In addition to reducing CO2 emissions, replacing fuel oil with pyrolysis oil will also reduce SO2 emissions, as the bio-oil is almost sulphur-free. The project will provide considerable local employment benefits and the impact is estimated to be about 60-70 man-years. Employment during construction phase is about 2,200 man-days.
24
Innovative Projects

project reported by

Szczecin CHP Biomass


Project Description

Contact Person: Miroslaw Niewiadomski PGE EWP Projects Tel: +48 447372564 miroslaw.niewiadomski@ gkpge.pl
As the biggest lignite, heat and power producer in Poland, we feel responsible both for the countrys energy security and natural environment protection. PGE GiEK SA is committed to conducting its above-mentioned business activities in a sustainable manner and in compliance with high ecological standards and the principles of corporate social responsibility. Power generation companies and CHPs of PGE Group have long followed an emissions reduction programme. Significant power generation efficiency improvement has been achieved on existing units and considerable amount of biomass co-burning and biomass dedicated units have been implemented. CHPs best results are related to replacement of old-fashioned coal-fired units by high efficient combined cycle units. Our generation assets modernisation programme has been running step by step since 2004. It results in reduced CO2 emissions and efficiency improvement. Our units efficiency is among the highest in Polish power companies based on lignite. Our projects submitted to the EWP Report are only examples of PGEs involvement in GHG emissions reduction. The highest available techniques in biomass, both within Poland and the European Union, have been applied for the Szczecin CHP project.

ZEDO is one of 11 divisions of PGE PGE Grnictwo i Energetyka Konwencjonalna S.A.. ZEDO consists of three plants. Activity of the branch is heat and power generation. The main fuel is hard coal, but also biomass is used in the combined cycle. In Szczecin Plant the largest biomass boiler in Poland was put into operation in Dec. 2011. New biomass fueled unit have replaced 5 exploited carbon units (2 pulverizedfuel boilers and 3 stoker-fired boilers). The installation consists of 1 fluidized bed biomass boiler and 1 small emergency boiler based on heating oil bioester. The new unit supplies green electricity and heat to one third of citizens in Szczecin. The parameters of the biomass installation are: Total green energy generation is 440,000 MWh/a. Heat generation is 1,900,000 GJ/a. Annual biomass consumption is at the level of 550,000 Mg/a. Power heat generation - 183 MWt, Steam generation 230 t/h, steam temperature 535 C, steam pressure 70 bar. The unit will fulfill EU criteria for high efficient cogeneration. The project realization brings positive impact on environment, improves energy conversion level and decreases GHG emissions. This project allowed the displacement of high emitting sources (old fashioned coal fired boilers) by a new green unit. Comprehensive ecological effects are as follows: CO2 emission reduction as a consequence of cool replacement with biomass, SO2 emission reduction of 69% Dust emission reduction of 63% Reduction of 80% of waste/by-products with reference to current level.

Project reasons

The investment was voluntary undertaken by the company but influenced by EU/national regulations. The project resulted in significant environmental (e.g. lower CO2 emissions, lower power consumption) economic (e.g. power savings) and social (e.g. improvement of the power plants image) benefits. For the estimation of CO2 emissions reductions, the following calculation was made: Emission with project: Emission with project comes from biomass burning and is recognized as avoided emission. CO2 reductions have been estimated on the basis of avoided emission for the same production level previously based on hard coal in Szczecin CHP. The estimation has been made for one month (December 2011) and forecasted for next (2012) year. Emission with project (biomass): ECO2 = recognized as non emitted = 0 [tCO2] Emission without project: Calculation is based on chemical energy of used coal, that would have been burned to achieve the same generation level. Example for December 2011: fuel (coal) consumption = 18,000 [Mg] Do; oxidation factor = 0.985 Wu; CO2 emission factor = 93.97 [MgCO2/TJ] WeCO2; heating value = 0.025 [TJ/Mg] Dz; Emission without project (coal): ECO2 = Do x Dz x WeCO2 x Wu ECO2 = 18,000 [Mg] x 0.025 [TJ/Mg] x 93.97 [MgCO2/TJ] x 0.985 = 41,652 [MgCO2]. Achieved CO2 emission reduction in December 2011: 41,652 [MgCO2]. Forecasted CO2 emission reduction in 2012: 500,000 [MgCO2]. Fuel savings: Coal consumption for heat generation in Szczecin CHP before project implementation was at the level of 18,000 [Mg] per month. Fuel saving results from coal switch to non-emissive biomass. Fuel saved in Dec. 2011: 18,000 Mg of hard coal. Forecasted fuel savings in 2012: 216,000 [Mg of coal].

Project Appraisal and Estimation Methods:

ENERGY WISDOM PROGRAMME 2012-2013 Edition

25

project reported by

Contact Person: Mr. Jyrki Hanioja Power Plant Manager Tel: +35896173210 jyrki.hanioja@helen.fi

Improving Energy Efficiency of a Combined Cycle Power Plant


Project Description
The energy production at Helsingin Energia is based on combined heat and power generation (CHP) with overall efficiency rate of energy generation exceeding 90%. The Vuosaari B CHP plant has two V94.2 gas turbines supplied by Siemens. The original electric power output of the gas turbines at ambient temperature of 0C was 163 MW and the efficiency rate approx. 33.7%. Siemens has developed a blade modernisation pack (Si3D) for the gas turbine type, which raises the gas turbine output and efficiency rate. The modernisation involves fitting the turbine with new type of blades and vanes, with modified flow geometry and improved cooling, whereby the flow of cooling air required may be reduced. The seals of the turbine section have also been improved in order to reduce losses. Ceramic coatings are used on the blades and the inner casing, which also permits a higher combustion temperature than was previously possible. The pack was installed in the first two stages of Vuosaari B gas turbine 4 at the annual overhaul in 2009 and in all four stages of gas turbine 5 at the annual overhaul in 2011. Performance test were carried out on the turbines before and after each overhaul. After the tests, the combustion temperature of both turbines was set at 1065C.

The greatest production cost of a combined cycle power plant is the fuel it uses. The CO2 emissions are directly proportionate to the volume of fuel used. Therefore, every measure that reduces fuel consumption also reduces the environmental impacts of the power plant. The actual increase in the power production efficiency could be described by saying that on an annual level, we manage to produce the same amount of electric power as before the modernisation, but by consuming as much less natural gas as we previously consumed in 9 days. At the same time, we produce no nitrogen oxides or carbon dioxide during those 9 days.

Project Reason
Helsingin Energia has signed up to an Energy Efficiency Agreement, and has set as its goal to further improve the efficiency of its energy production, already at a good level. Energy efficiency is part of Helsingin Energias development programme towards carbon-neutral energy production by 2050. Energy audits have been carried out at all the power plants and energy efficiency measures implemented based on their results. The turbine blade modernisation of Vuosaari B plant has proved to be one of the most effective energy efficiency measures.

Project Appraisal and Estimation Methods


Performance test showed that the efficiency rate of gas turbine 4 increased by 1.19 percentage points and that of gas turbine 5 by 1.52 percentage points. As the combined effect of the modernisation and the increase in combustion temperature, the output of gas turbine 4 increased by approx. 11.5 MW and that of gas turbine 5 by approx. 13 MW. The Vuosaari B performance data at reference point 0C changed after modernisation as follows: Year
Overall electric power output Back-pressure mode power production efficiency rate Power-to-heat ratio

2008
460 MW 47.9% 1.07

2009
471 MW 48.6% 1.098

2011
486 MW 49.2% 1.125

District heating output has remained the same at the reference point following the modernisations. The savings in fuel volumes and reduction in CO2 emissions were estimated by scaling so that the plant would produce the same volume of power before modernisation and after it. This gives the result of an annual saving of fuel energy of approx. 210 GWh and a reduction in CO2 emissions of approx. 43 kt after both modernisation phases.
26
Innovative Projects

project reported by

Belchatow Power Plant: New Low GHG Emissions Fossil-Fuel 858 MW Unit
Project Description
The new 858MW power unit working in the Bechatw Power Station is the biggest generation unit in the history of the Polish power industry and the most advanced power unit in Poland. It was commissioned in September 2011. Its advanced technology determines new standards in the Polish industrial power generation. It is the most efficient lignite-fuelled power unit in the country, with the net efficiency reaching 42%. Its structure and technical parameters allow to generate more power and comply with the European environmental standards. The power unit meets all the requirements of the European Union directives regarding emission of pollutants into the atmosphere and is compatible with carbon capture and storage installations. The new 858 MW power unit, as in the case of the remaining power units of the Bechatw power station is fuelled with lignite from the nearby lignite mine. The power unit as an independent generating unit has been furnished with all the necessary systems and basic/supporting installations. Except of widely known technologies, raising the power units efficiency as low- and high pressure recovery and steam overheating, the following systems were applied additionally: supercritical steam system I modern systems of the turbine blades I heat recovery from flue gas. Above mentioned innovations result in the gross efficiency exceeding 42%. Technical Parameters SO2 < 200mg/Nm3 I NOX < 200mg/Nm3 I dust < 30mg/Nm3 I CO2 < 200mg/Nm3 (5,5 mln t/a)

Contact Person: Miroslaw Niewiadomski PGE EWP Projects Tel: +48 447372564 miroslaw.niewiadomski@ gkpge.pl

Project reasons

The investment was volontary undertaken by the company but influenced by EU/national regulations. The project resulted in significant environmental (e.g. lower CO2 emissions, lower power consumption) economic (e.g. power savings, fuel savings) and social (e.g. improvement of the power plants image) benefits. For the estimation of CO2 emissions reductions, the following calculation was made: Emission with project Calculation is based on CO2 emission factor, comparing old units and the new high efficient one, for the same production level. Example for year 2011: CO2 emission factor = 0,887 MgCO2/MWh I power generation = 1.935.200 MWh Emissions with project are calculated multiplying power generation by CO2 emission factor: 1.935.200 MWh x 0,887 MgCO2/MWh = 1.716.522 MgCO2 Emission without project: Calculation is based on CO2 emission factor for the old units for the same production level. Example for 2011: CO2 emission factor = 1,095 MgCO2/MWh I power generation = 1.935.200 MWh

Project Appraisal and Estimation Methods:

Emissions with project are calculated multiplying total power generation by CO2 emission factor: = 1,095 MgCO2/MWh x 1.935.200 MWh = 2.119.044 MgCO2 Emission reduction in 2011: 2.119.044 1.716.522 = 402.522 MgCO2 Forecasted CO2 emission reductions: Based on 4 month of operation and 402.522 MgCO2 avoided emission in 2011, the new unit will save about 1.100.000 MgCO2 each year of operation. Fuel savings: Calculation is based on factor of chemical energy consumption per generation unit for new and old units. Fuel savings in 2011: 1.935.200 MWh x (9,500 8,145 GJ/MWh) / 7,798 GJ/Mg = 336.265 Mg

As the biggest lignite, heat and power producer in Poland, we feel responsible both for the countrys energy security and natural environment protection. PGE GiEK SA is committed to conducting its above-mentioned business activities in a sustainable manner and in compliance with high ecological standards and the principles of corporate social responsibility. Power generation companies and CHPs of PGE Group have long followed an emissions reduction programme. Significant power generation efficiency improvement has been achieved on existing units and considerable amount of biomass co-burning and biomass dedicated units have been implemented. CHPs best results are related to replacement of old-fashioned coal-fired units by high efficient combined cycle units. Our generation assets modernisation programme has been running step by step since 2004. It results in reduced CO2 emissions and efficiency improvement. Our units efficiency is among the highest in Polish power companies based on lignite. Our projects submitted to the EWP Report are only examples of PGEs involvement in GHG emissions reduction.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

27

project reported by

Contact Person: Mr. Bert Heerbaart Programme Manager Smart Grid Tel: + 31 6 11034291 bert.heerbaart@alliander.com

Smart Grid Implementation in Amsterdam


Project description
Within Amsterdam New West, an urban area of about 3 by 6 kilometres was selected for this first iNet implementation in the Netherlands. It contains approximately 9,000 households and requires 9 MVA power supply. In this area the existing 10 kV radially operated mid-voltage grid has been transformed into a 20/10kV ring-shaped bidirectional grid (see picture). To achieve this, a 20 km long 20 kV backbone cable was twined into the existing grid, with both ends connected to the primary substation. Existing 10 kV cables were transformed into 10 kV secondary rings, with both ends connected to the backbone. Both the 20 kV backbone and the 10 kV secondary rings are fully bidirectional. All substations within this grid are equipped with advanced substation automation technology. Furthermore a fibre optic/GPRS network was implemented to connect all substations within this grid to the central control department. The resulting intelligent grid provides: complete transparency of the grid (current, voltage, power quality, etc. in all stations involved are visible in the central control dpt.); full remote control (all substations can be controlled from the central control dpt.); automatic fault localisation and self-healing functions. The uniqueness of this smart grid concept lies in the large percentage of reuse of existing assets (>90%) which makes this concept financially feasible. Furthermore, this leads to the least cumbersome outcome for the public domain: less cable to roll out or renew, and few substations to build or replace.

In order to facilitate the demand for a sustainable energy supply, Liander has an ambitious smart grid agenda. Part of this agenda is the roll-out of iNet, Lianders concept for a smart electricity distribution grid. iNet encompasses 1. the deployment of advanced substation automation technology; 2. the roll out of a telecom grid to all substations; and 3. the transformation of the existing distribution grid into a flexible bidirectional grid. iNet provides full remote visibility and controllability of the grid as well as new functions such as automatic fault localisation, selfhealing functions and the real time collection of dynamic operational data. The first iNet was implemented in Amsterdam and went live early this year. It is one of the first smart grid implementations in the world on this scale and in such a challenging urban environment, encompassing all aspects of a truly intelligent electricity grid.

Project Reasons
In the Amsterdam New - West Area a lot of solar energy is generated. Many houses in this area are equipped with solar panels on the roof. Furthermore, the City of Amsterdam is planning to install even more solar panels and also wind turbines in the next years. To be able to integrate these renewable energy resources an in efficient way an intelligent flexible grid is required. As a result of the complexity and age of Lianders grid in Amsterdam the number of outage minutes per year is substantially higher then in the rest of the area serviced by Liander. Therefore Alliander wants to reduce the number and length of outages in this area by implementing an intelligent self healing grid. Amsterdam is promoting the use of electrical vehicles. To enable a massive penetration of electrical vehicles and provide required recharging facilities the underlying electricity grid needs to be intelligent and flexible. iNet results in a far better use of existing assets thereby avoiding massive investments in new and expensive cables and components, while facilitating both the Citys and Lianders ambitions to reach sustainability goals.

Project appraisal and estimation methods


The implementation of iNet within the Amsterdam area is above all an enabler facilitating other projects with a direct positive impact on the reduction of CO2/NOx. For example, the iNet enables the integration of solar and wind energy in the traditional grid, and has created opportunities for enlarging the amount of electrical vehicles. These initiatives contribute directly to Amsterdams 20-20 objectives. The reduction of outage minutes on the other hand is a clear direct objective: the initial 35 yearly outage minutes within this area should be reduced by at least 50% as a result of the implementation of iNet.

28

Innovative Projects

project reported by

Star Project: Smart Metering and Network Automation Programme


Project Description:
STAR project is an ambitious initiative for technological transformation in the field of Smart-grids. Castelln, Spain, has been the first location chosen for the implantation of this project. The Smart Grid is a technological evolution of the energy distribution system which combines traditional installations with modern monitoring technologies and information and telecommunications systems. The Company has just installed the first 90,000 smart metres and adapted 520 sub-stations as stage one of project STAR. This initiative encompasses the replacement of 100,000 metres supplying the citys population of 175,000 and the adaptation of its 600 sub-stations to include new electronic equipment that provides information on and improves their operation.

Contact Person: Mr. Javier Arriola Project Manager Tel: +34 94 415 14 11 fjarriola@iberdrola.es

Project Reason:
Smart grids will afford myriad advantages, which can be grouped together as the integration of distributed generation, the integration of the electrical vehicle and the improvement in the efficiency of electricity usage. It will offer a wider range of client services, improve supply quality, respond to the demand for electric power required of the society in the future and achieve an optimal power distribution management. IBERDROLA will renovate more than 100,000 meters which provide services to their customers. In addition, an adaptation of the transformation centers of the city will be made to allow the provision of remote services, the reading of the metering equipment, the performance of subscriptions and unsubscriptions or the modification of the contracted power. The STAR project unites compliance with the legal obligation of remote management development with an additional, major investment for improving the service rendered and for integrating numerous innovations to the power grid.

Project Appraisal and Estimation Methods:


Emission with project: tCO2 emissions avoided: calculated with the estimation of energy consumption savings. Estimates show that smart electricity grids should reduce CO2 emissions in the EU by 9% and the annual household energy consumption by 10% (http://ec.europa.eu/commission_2010-2014/oettinger/headlines/ news/2011/04/20110412_en.htm) 2011 calculation methodology: Spanish emission factor for the final consumption in tCO2/GWh in 2009 ( CO2 EMISSIONS FROM FUEL COMBUSTION 2011 Edition International Energy Agency) = 299 2011 distributed energy (GWh) = 96 ,380 GWh Savings: 10% distributed energy 9,638 GWh * 299 g/kWh = 2, 881,746 tCO2/year Emission without project: No energy consumption savings. Emission reduction: Emissions reductions = emissions avoided with project emissions without project e.g: CO2 emission reductions (2011) = 2,881,746 tCO2 - 0 ktCO2 =2,881,746 tCO2

The Star Project is a key driver to enable the technological evolution of our distribution grid, with important impacts on customer services, quality of supply, loss reduction and operational improvement. This initiative will allow for a number of services to be provided remotely, such as real-time meter reading, registration and deletion of contracts, and modification of contracted capacity. The installed meters will also foster the future participation of customers in the electricity market assuming suitable future regulations because they will have the necessary information to benefit from flexible rates. This will enable customers to adjust their energy consumption and help enhance energy efficiency, saving energy while reducing the size of bills and curbing CO2 emissions.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

29

project reported by

Contact Person: Mr. Daglan Dnaill Project Manager Tel: + 353 1 893 4459 deaglan.odonaill@esb.ie

Area-based Retrofit Energy Efficiency


Company
Electric Ireland is the energy supply business of ESB. It is the largest electricity supplier in Ireland and is now a dual fuel supplier, having entered the residential gas market at the end of 2011. In the last year, Electric Ireland has commenced an energy services business to complement its energy supply business and to develop the capability to deliver on national energy efficiency targets.

Ireland is working to deliver on its 2020 energy efficiency commitments and has a National Energy Efficiency Action Plan in place. The residential sector is a key area of potential for delivering energy efficiency: in 2010 its share of primary energy use was 28% (CO2 emissions = 29% of total energy-related). It is estimated that in 2009, 20.5% of households are fuel poor (defined as household expenditure on energy is greater than 10% of household disposable income). While there are successful national programmes to retrofit energy-efficient measures to homes in Ireland, these have so far focused on individual houses. Irelands recently published Strategy for Affordable Energy in Ireland (November 2011) emphasises area-based retrofitting, and this project has helped gain experience in this field.

Project
The project retrofitted energy-efficient measures in a 126 housing mixed housing estate (68 private homes, 58 local authority homes) in Dundalk (Aisling Park & Patrick Tierney Crescent) in 2011. The project was a partnership between Electric Ireland, Dundalk Town Council and the Sustainable Energy Authority of Ireland (SEAI). A survey carried out by SEAI in advance of the project indicated that 77.5% of the residents qualified as fuel poor by the expenditure method (see below).

Technical Description
The homes in the area were mainly built in the period 1970-1980 when building standards in Ireland were poor. There are a number of different designs, including both bungalows and two-storey houses. Typical construction is timber frame with 2 wall cavity wall construction. Typical Building Energy Ratings (BER) for the homes were D2 - E2 (equivalent to 250-380 kWh/m2/year) although some homes had a BER of F, G. with a >450 kWh/m2/year). Following a detailed survey and technical evaluation of a sample of 20 homes, an optimum package of retrofit measures was identified and the take-up was forecast based on a detailed sample survey. Two information evenings were held to communicate the objectives of the work to the residents. The upgrade package typically consisted of attic insulation, cavity wall insulation, draught-proofing, condensing boiler and full heating controls.

Key Conclusions
Area-based retrofits can be delivered quickly and efficiently. Technical assessments for all houses rather than a sample should be carried out before work begins (i.e. no surprises). Clear criteria for success, e.g. a minimum home BER for all homes or a minimum improvement in each homes BER, should be agreed in advance. Good communications with local residents are important for the project to run smoothly. This is a cost-effective approach for local authorities. Provide the option to residents to switch from kerosene to natural gas. This is an effective way to deliver energy efficiency improvements to fuel-poor residents. There is enormous potential for replication of this project around Ireland.
Key Results Total Project Energy Savings Expenditure per House (average) Average Saving Level per House Average Saving per House Average Energy Saving per Home Overall Reduction in CO2 Results Calculations (Rounded) 1.4 GWh PEE (124 homes) 4,000 140 kWh/m2 11,500 kWh PEE /year (50% reduction) 690/year 262 tonnes CO2 per year

30

Innovative Projects

project reported by

Energy Efficiency Lightening Systems in Storage Buildings and Production Halls


Project Idea
At first sight, projects that simultaneously attempt to benefit the environment and the economy seem to try to square the circle. However, this Wien Energie project manages to arrive at energy efficiency improvements thereby abating CO2-emissions and creating environmental advantages while ensuring economic benefits for its customers at the same time. The project energy-efficient lightening in storage buildings and production halls owes its existence to Wien Energies own curiosity to embark on new energy-saving pathways combined with the EUs political commitment to improve energy efficiency as an important part of its climate and energy package. In the past, Wien Energie had already dealt with the installation and maintenance of outdoor lightening appliances for communities. From 2009 onwards, it began to look into new indoor lightening solutions for industrial and commercial consumers, such as for storage buildings and production halls.

Contact Person: Mr. Bernhard Gstel Sales Department / Division of Energy Efficient Solutions Tel: +43 (1) 4004 38085 bernhard.goestel @wienenergie.at
In times of rising energy prices, a protracted economic crisis and high environmental challenges all-encompassing solutions are needed. Our energy-efficient indoor lightening project offers a comprehensive feel-good package for our customers. By encompassing the whole chain of services, ranging from the first counseling interview over the assessment of the building to the implementation and maintenance, the project benefits both the economy and the environment. In doing so, our service enables customers to contribute to the abatement of greenhouse gas emissions, reach the Kyoto targets and simultaneously save money. The project shows that an approach that benefits both the environment and the economy is not doomed to fail, but is feasible and viable.

Project description
The idea behind the project was to improve indoor lightening conditions in the most cost- and energyefficient way. Further, the customers should be allowed as much choice as possible regarding the selection of a specific lightening equipment supplier or electrician and as little outlay as possible regarding the processing. Hence, the concepts originality lies in its all-inclusiveness and consumer-friendliness, with the highly standardised audit including all stages from assessing the existing lightening system and proposing an improvement plan to implementation and maintenance. In order to supply the customer with the latest high-quality products, Wien Energie does not cooperate with one specific manufacturer but always selects the best available technology on the market. To ensure the financial optimum for the consumer, Wien Energie itself applies for grants at the Kommunalkredit Austria AG and additionally offers advantageous financing models, such as pre-financing. Further, fixed energy efficiency savings, i.e. guaranteed financial savings for the consumer, are stipulated beforehand. Customers can just lean back and relax while their new lightening system is developed and managed in the most cost- and energyefficient way.

Project appraisal
Wien Energies latest project the improvement of the lightening in the production halls of an established delicatessen factory amounts to energy savings of 101.151 kWh/a (-37 tCO2) and a 41% reduction of the operational costs for lightening. Altogether 232 luminares (2x52 W with electric control gear (ECG)) were installed, equaling 2 x 72.5 W or 33.54 kW total connection. The measures included the replacement of T8 to T5 lamps, an improved wiring and a more effective positioning of the luminaries. The project not only contributed to energy and financial savings but also improved the working conditions and safety of the employees. Given its merits and innovative character, the project was awarded with the klima:aktiv price of the Austrian Environmental Ministry. A similar project, implemented in a large shopping mall, delivered 105 t CO2 emission reductions in the year 2011, equating to an almost 50% reduction of CO2 emissions. So far, Wien Energy has realised 15 similar energy efficiency indoor lightening projects and the number is growing constantly.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

31

project reported by

Contact Person: Mr. Kostantinos Tsiroulis Project Manager Tel: +30210 3673411 k.tsiroulis@dei.com.gr

Green Building Energy Efficiency


Project description
"Green Building" is an EU initiative to promote cost-effective energy efficiency improvements in non-residential buildings. Any company or organisation that is committed to improving energy efficiency in buildings is "rewarded" with the membership programme "Green Building" issued by the European Commission, certifying that the company or organisation has shown its concern for the future in one of the more sustainable ways, namely by improving the energy efficiency of buildings. Participation in the programme is voluntary (voluntary agreement), without legal commitment and does not come with any form of subsidy from the EU side. Project partners have direct benefits by saving money and in most cases by improving working conditions. They achieve technically and economically feasible energy savings, thereby increasing their competitiveness and the value of their buildings.

PPCs participation in the Green building project is a first step to promote energy efficiency in our daily business operation, and to create an energy saving culture within our personnel working in the buildings that have joined the programme. The selected buildings in the Pagrati and Kallithea districts are commercial buildings serving daily a significant number of our customers in those districts. Since they were constructed in the early 70s, general renovations, apart from energy efficiency improvements, are also needed. Prior to participating in the project, energy audits were performed for both buildings under the supervision of the Centre for Renewable Energy Sources (CRES), which is the national contact point for Greece. The energy savings potential, as estimated after the energy audits, is considered to be very high in both buildings. The planned energy improvements are as follows: renovation of the lighting system, reconstruction of the heating, cooling and ventilation systems, insulation of external walls, installation of BEMS and probably installation of a roof photovoltaic system of 9.7 kWp. Six months after the end of the energy efficiency improvements and the relevant renovation works, a final energy audit will be performed and CRES will certify the energy savings to the EU.
32

Project reasons
Responding to national and EU legislation for the promotion of energy efficiency services to end users, PPC has launched this voluntary programme of energy efficiency improvement, with the submittal of an action plan defining the scope and nature of the companys commitment to undertake energy efficiency actions in two corporately owned commercial buildings. Both of the buildings are used as customer service points. By participating in the programme, PPC intends to underline its environmental awareness and to enhance its corporate image and public recognition.

Project appraisal and estimation methods


emissions with project (2013) The Kallithea buildings annual energy consumption will be 84,927 kWh and the Pagrati buildings consumption will be 53,203 kWh. Total annual energy consumption will be 138,130 kWh. With an average CO2 coefficient for the Companys Interconnected System of 1.057 kg/ kWh (year 2010), expected CO2 emissions are estimated at 146,003 kg. Emissions without project (2010) The Kallithea buildings annual energy consumption was 222,700 kWh & the Pagrati buildings consumption was 204,000 kWh. Total annual energy consumption was 426,700 kWh. Emissions were 451,022 kg CO2. Emissions reductions Emissions reductions = emissions without project - emissions with project CO2 emission reductions = 451,022 kg CO2 -146,003 kg CO2= 305,019 kg CO2 Energy saving The project is estimated to reduce annual energy consumption by 426,700 kWh - 138,130 kWh = 288,570 kWh or energy savings of approximately 68%.

Innovative Projects

project reported by

3e-houses Project Energy Efficiency


Project Description
Residential and commercial buildings account for nearly 40% of total EU energy consumption. Electricity is the main source of energy used for buildings; therefore the building sector is one of the key areas on which actions in energy efficiency and renewable energy integration must focus to achieve a 20% reduction in energy consumption by 2020. Against this background, Gas Natural Fenosa is involved in the European Commissions Action Plan for Energy Efficiency through the 3e-Houses Project. The 3e-HOUSES Project integrates the most established information and communication technologies (ICT) in social housing, providing an innovative service for energy efficiency. The project will allow the integration of renewable energy and other sources of distributed energy by helping homes to lower their energy consumption and to move their electricity use from peak to off-peak hours. The projects overall objectives focus on improving energy use from four different angles: Energy consumption information for the operator: the continuous monitoring of the energy use allows control systems to optimise energy performance. The use of embedded power production based on clean, locally distributed and renewable resources without causing local instabilities to the electricity infrastructure. Energy feedback to the tenant: with the goal of encouraging behavioural changes among the users of energy in social housing. Demand response strategies for peak shavings. The project runs for a three-year period, ending in December 2012. It consists of different pilots in social housing complexes in four different European cities: Bristol (UK), Leipzig (Germany), Sofia (Bulgaria) and Sant Cugat (Spain). Gas Natural Fenosa is leading the consortium, assuming the project coordination and the responsibility for the Spanish pilot development. The Spanish pilot consists of three social houses in Sant Cugat del Valls and is divided into two constructions containing 64 and 56 flats respectively. The pilot began in 2010 when a number of significant set-up actions were carried out: Energetic analysis of the buildings and flats Design of the software allowing consumers to manage the different inputs of the system Dissemination and communication of the project in order to achieve more participation. During the second year, the Spanish and the German pilots were implemented. Several interactional activities among the smart devices and the users were carried out to create awareness of users energy consumption and therefore foster a change in their energy use patterns. Previous studies have shown savings of up to 15% in total energy consumption among the most concerned users.

Contact Person: Mrs. Milagros Rey Porto 3e-Houses GNF Project Manager Tel: +34 934025217 mreyp@gasnatural.com

In this Project technical solutions are developed to monitor: water consumption, climate control, sanitary hot water and electricity in single-family detached and semi-detached homes, apartments, flats, etc. The technical solutions implemented in the Pilots are modified and improved into replicas, this process will allow to come up with an optimal final solution suitable for every home in a cost-effective way, being this one of the projects goals. On the other hand, we will get valuable information about the users behaviour, in how they receive their information and what is their interest concerning energy efficiency. This information is crucial to know what impact these actions will have in the residential building sector.

Project Appraisal and Estimation Methods


The Results shown below comprise a period of time from May 2011 to November 2011 in 120 flats in the Spanish Pilot.
Spanish Pilot from May to Nov 2011 DHW Heating* Electricity Total Total ABL (KWh) 60.880,87 6.358,95 74.966,08 142.205,90 Total Consumption (KWh) 41.768,97 10.153,50 50.739,63 102.662,10 Total Savings (KWh) 19.111,90 -3.794,55 24.226,45 39.543,80 CO2 avoided (kg) 5.669,50 -1.125,65 6.541,14 11.084,99

*Savings in Heating are negative due to a very warm autumn, compared the historical data used in the project (from 01/2009 to 03/2011)
ENERGY WISDOM PROGRAMME 2012-2013 Edition

33

project reported by

Contact Person: Mr. Bertram Weiss Innovation manager (Energy management) Tel: +43 (0) 50313-53921 bertram.weiss@verbund.com

Verbund Smarthome
Project Description

Our project successfully questions the possible role of an energy supplier in the future energy market. Since 1990, the liberalization of the energy market in Austria allows different players to participate, now new international players enter the market through new European legislation (e.g. smart metering brings new chances for utilities which have never dealt with energy like telecommunication utilities). Transportation of data, the role of the end-customer (household, industries) and the responsible parties for bringing new services to those end-customers are still open issues. We are now challenged to position ourselves and define a clear agenda. Within our project we are confronted with the missing legal regulatory framework, questions dealing with data interfaces and lacking or double datainfrastructure resulting in possible new roles concerning end customers data handling.

VERBUND has launched its first pilot-project in the field of smart metering and home visualisation of total and specific energy use in 2010. Metering and visualisation equipment has been successfully installed and tested at 250 probands' homes in Austria till early 2012. Main features for VERBUNDs private test-users were: The integration of smart meters and collection of smart meter data: Total consumption of the household has been collected on a 15-minute-basis as well as of single technical devices in real-time, enabling the adaption of consumption and the use of flexible electricity tariffs in future. The installation of a home automation via web: Various technical devices and lighting, heating and shadowing systems have been integrated. The energy use has been monitored online via computer, tablet or smartphone in a very user-friendly way. The integration if available of private electricity generation, primarily out of PV: Easy online monitoring of the plants generation compared to the households total electricity consumption enabled the use of technical devices in peak production times. Besides the feeding-in the grid as well as the plants technical condition has been controlled online. The offering of a customer-friendly, single-interface tool for demand-side-management. The active energy management of devices should increase the awareness among VERBUNDs end-users about their energy generation, consumption and possible optimisation potentials in their households. Regular, self-provided reports have helped realizing electricity as a product and changing consumption patterns. A consumption review and anonymous-made ranking with comparable households as well as data about saved carbon emissions combined with background information have been provided on request. Data privacy protection has been of significant value in this project. In April 2012 the projects test data as well as the test-users behaviour and feedback has been evaluated. A possible project roll-out in Austria in the near future might include business customers as well.

Project Reasons

The development of the energy market till 2020 needs a change in utilities service portfolio. Utilities only supplying energy on demand but not creating services as an energy supplier with real future potential and customer benefits will lose impact. In general, energy consumers (prosumers) should be more informed about and involved into the process of energy generation, its monitoring, controlling and optimization. Studies say that ones knowledge of the households consumption pattern can lead to energy savings between 6 and 13%. Consequently, demand side participation is an important future market and of significant added-value for customers. Their understanding about connecting and regulating technical devices via web without comfort-loss enables various new utility market models. Flexible electricity tariffs will optimize the regulation of electricity use in future. The use of technical devices can be delayed or disconnected from the grid enabling the more efficient operation of the grid, e. g. for the charging of electric vehicles.

Project Appraisal

Calculation was based on the assumption that saved electricity would otherwise be produced by VERBUNDs largest coal fired power plant, Drnrohr, with specific CO2-emissions of 705 t CO2/GWh in 2011. Specific emissions are multiplied by the amount of electricity saved with the scope of the project yielding the avoided emissions. Electricity saving calculation was based on the national bottom-up method for evaluation of energy efficiency activities and energy services published by the Austrian Energy Agency (http://www.energyagency.at/) in Sept. 2010. Smart meters, installed PV or energy consulting led to electricity reductions of appr. 75 MWh and to fictitious greenhouse gas reductions of appr. 53 t CO2 in 2011 (larger reductions with growing number of users). Saved energy (hard coal) amounted to 23 t.

34

Innovative Projects

project reported by

Worlds Most Energy-efficient Cloud Computing


Project Description
Our innovative solution utilises the waste heat of computers in the heating of buildings and hot tap water in the City of Helsinki. Heat can be directed for utility purposes in a controlled way, and the carbon dioxide emissions from cooling are reduced by up to 80%. We can deliver an outsourced green solution which enables customers to focus on their core IT business operations.

Contact Person: Mr. Juha Sipil Project Manager Tel: +358 40 3346663 juha.sipila@helen.fi

Project Reason
As a result of the consolidation of data centres and the sharp increases in their size, they have become attractive customers for energy companies. We have set as our target to have carbon-neutral production by 2050 and are actively involved in the development of new technology. This industrial sector has a huge development potential as data centres consume globally about 1-2% of all electricity. Our solution is maintenance-free and has favourable start-up and acceleration costs. District cooling is totally silent and inconspicuous and its carbon footprint is only a fraction of the alternative system. Our system will not take up any of the customers electricity as in the worst case scenario half of the capacity of the electricity supply may be used for the operation of the conventional cooling.

Project Appraisal and Estimation Methods


District cooling is eco-efficient urban energy at its best, and 80% of its production is based on resources that would otherwise be wasted or remain unutilised. The production methods are as follows: Heat pump; one unit of electric energy produces 5 units of heat and cooling energy a very high efficiency rate. The waste heat of the servers is recovered with a heat pump. The heat is transmitted to the district heating network to heat buildings and hot tap water. Absorption technology is used to create district cooling in the production of electric energy using heat energy that would otherwise not be used. The absorption machines are operated in the summer when the sea water is too warm for free cooling. Free cooling; district cooling can be produced from cold sea water in November-May when the sea water temperature is below 8C. The emissions of a 1-MW data centre introducing district cooling will be diminished in one year: 3,000 MWh of primary energy compared with the alternative cooling solution, representing 600,000 kg of carbon dioxide emissions or 6 million kilometres driven in a passenger car. Source: EN 15603, Energy performance of buildings Overall energy use and definition of energy ratings; Ecoheatcool WP 3, Guidelines for assessing the efficiency of district heating and district cooling systems. No refrigerants compounds are used in data centres using district cooling. The heat recovery technology developed by us can be utilised anywhere. When conventional cooling is replaced with district cooling, the consumption of electric energy will diminish permanently.

The most efficient way to reduce environmental impact is to save energy because all energy production has environmental impacts. The cooling of data centres with district cooling is a significant energy-saving measure. It does not consume the customers electricity at all, and 80% of the production of cooling is based on resources that would otherwise remain unutilised or be wasted. We plan to expand data centre operations. We have the district cooling and heating network in place in Helsinki, as well as spaces adjoining the network that could be used. This project demonstrates the most optimal manner of utilising our district cooling and heating network. The first solution has been implemented in cooperation with ICT service provider Academica.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

35

project reported by

Contact Person: Mr. Bruno Bbi Energy Saving Fund Head of Energy Tel: + 4144 412 26 24 bruno.bebie@zuerich.ch

Energy Saving Fund and Efficiency Bonus


Project Description
The energy saving fund was introduced in 1991 and is funded by one tenth of ewz's projected profit each year. The fund finances energy efficiency programmes for small customers, subsidises the use of renewable energy and promotes consulting and research and development in the fields of energy efficiency and renewable energy. Efficiency programmes target the use of highly efficient refrigerators and freezers, heat pumps for tumble-dryers and coffee machines. Over the last twenty years, subsidies have been awarded for 30,000 appliances (there are 180,000 households in the City of Zurich).

Contact Person: Mr. Florian Hug Effiency Bonus Head of Energy Counseling Tel: +4158 319 49 04 florian.hug@ewz.ch
Our strategy for the efficient, rational and sustainable use of energy is based on three pillars: avoiding energy waste, using energy-efficient equipment that works properly and committing to the use of renewable resources. The energy saving fund promotes the rational use of renewable energies with a focus on small customers. It is funded with 10% of ewzs projected profit. The efficiency bonus is an incentive scheme for large customers. If the customer meets efficiency targets agreed in a contract with a public authority, it is rewarded with a 10% reduction in its electricity bill. The energy saving fund and the efficiency bonus illustrate the importance of tailoring energy efficiency measures to the customer segments in question.

The installation of a photovoltaic plant or thermal solar collectors is also subsidised as are heat pumps that meet the required coefficient of performance (COP). These subsidies have resulted in the production of 23 GWh of renewable energy, energy savings of 62 GWh and the production of 757 GWh of heat using thermal solar collectors and heat pumps. Nearly 100 energy saving analyses have been performed in minute detail. SMEs and industrial customers have requested some 300 in-depth consultations, which have given rise to energy saving projects. In 2006, ewz launched the efficiency bonus, an energy efficiency incentive scheme for large customers. Customers can voluntarily pledge to reduce their power consumption to the Canton of Zurich and the Swiss Energy Agency of Economy (SEAE). They submit plans to reduce their power consumption by 20% within ten years measured against a baseline figure. Their compliance is verified annually by the canton or the SEAE. If customers meet the annual target, they are rewarded with a 10% reduction in their electricity bill in the following year. In 2010, 9% of eligible companies, which together consumed 58% of the energy sold by ewz, benefited from the efficiency bonus. 74% of participants have also signed up for green electricity. A mere eight customers have failed to reached their targets over the last three years and have been suspended from the scheme.

Project reasons
Making progress in energy efficiency requires the adoption of a long-term perspective. Households and companies need to be provided with continuous information and incentives if they are to change their energy consumption mindset. The lack of knowledge of sustainable energy use remains an important subject, which is why ewz is providing funding of CHF 10 million to conduct research in this field over the next ten years.

Project appraisal and estimation methods


The power conservation fund and efficiency bonus have proved to be highly successful and viable for all the parties involved. Since their introduction, a total of 558 GWh have been saved or replaced by renewable sources and nearly 100 analyses have been performed that aim to improve the energy efficiency of our industrial customers. The City of Zurich has paid out CHF 13.4 million to customers as a reward for their voluntary efforts to reduce their power consumption. This has resulted in savings of 0.07 EUR/kWh.

36

Innovative Projects

project reported by

E-car in Ireland: Electric Vehicle Charging Infrastructure


Project Background
Ireland is an island, off an island, off the mainland of Europe. It has no motor industry and is not particularly wealthymaybe not the most obvious location to start an electric vehicle industry! However Ireland has many natural advantages: A single network company (ESB is the single DSO) A smart grid Massive wind penetration (target of 42% of energy from renewables by 2020) Limited range between cities (intercity driving is possible by fast charging en route) Home ownership >80% (most people have a dedicated private parking spot) Moderate climate (ideal for batteries) In 2010 ESB, the Irish Government and Renault/Nissan signed an agreement to enable the introduction of electric vehicles to the Irish market.

Contact Person: Mr. Paul Mulvaney MD ESB e-car Tel: +35317027385 paul.mulvaney@esb.ie

For a successful national programme it is necessary to take a holistic approach. It cannot just be about the cars or the infrastructure or the electricity or the systems. It must be about the entire user experience and value proposition that is on offer. The e-car Ireland Programme is really about sustainable transportation. It is about generating, transmitting and distributing sustainable electricity and using this to power transportation. It is critical that this new technology is understood and deployed in an interoperable and standardised manner. We are working on all aspects of the technology: the electricity infrastructure, the cars, the connectors and the communications and IT systems. For the first time the electricity and automotive industries are merging in a very real manner.

Project Rationale
The Irish Government has set a target for 10% of all transportation to be electric by 2020, which would equate to approx 250,000 vehicles. It is estimated that this level of adoption would deliver emissions reductions over the period to 2020 of up to 2.5m tonnes of CO2 and a reduction in fuel import requirements of approx 800m litres. An additional spin-off benefit will be employment and enterprise opportunities. ESB has been tasked with making this a reality through the e-car Ireland Programme and rolling out a nationwide charging infrastructure across the country including the supporting IT systems.

Project Details
The initial roll-out will see 1,500 publicly accessible AC charge points installed nationally. These chargers will be primarily located on-street, and at retail parks, shopping centres, car parks, and transport hubs. An additional 30 DC rapid chargers will be located in major urban centres and at motorway service stations along interurban routes. In addition to the public roll-out ESB has also committed to install home charge points for the first 2,000 purchasers of electric vehicles in Ireland. IT systems are also being developed to support the payment for energy and settlement of real-time charge events with the electricity wholesale market. These will allow any supply company to supply electricity to any driver through any public charge point at any time. To successfully implement a programme of this nature numerous stakeholders must be brought together: the automotive sector to supply cars, technology companies to develop IT and communications, research institutions to understand user behaviour and Government to provide incentives. ESB is participating in a number of international R&D projects to help with this interaction. The introduction of sustainable transportation through e-cars will provide many benefits for the environment, economies, utilities, businesses and of course drivers. Electric vehicles are a very real manifestation of where the smart economy meets the green economy for the benefit of all.

Estimation methods
The tail-pipe emissions are zero for electric cars. The tail-pipe emissions of the typical small car sold in Ireland is 120 gCO2 per km. Multiplying this figure by the number of cars gives the total carbon emissions. As this is a transfer of emissions from the non-ETS to the ETS sector, there are no net carbon emissions associated with the electricity generation for electric transport.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

37

Participating Companies

ENERGY WISDOM PROGRAMME 2012-2013 Edition

39

Peter Molengraaf Chairman of Allianders Management Board

Flexible and smart energy infrastructures are indispensable for achieving our overall climate objectives as well as new business development. New smart technologies will enable us to fit large volumes of renewable energy into our energy infrastructure, provide our customers with more energy saving opportunities and encourage large-scale adoption of electric transportation. For our services in the Netherlands this means that we have just started installing smart meters to provide customers better insight into their energy consumption. Traditional customers like companies and increasingly consumers will supply electricity back to the grid, green gas will be fed back into the gas distribution network, the deployment of heat pumps in newly built residential areas and the transition to electric transportation will be facilitated. Our ambition is to assist these initiatives as far as possible through partnerships managing energy transition and the energy infrastructure together with customers and local authorities, and also in close cooperation with other grid managers and market players. In our contribution to this edition of the EWP report we present the launch of Amsterdam I-net, as an example of smart grid developments. We are grateful to EURELECTRIC for enabling us to show this and some of the other projects Alliander is working on.

Alliander n.v. www.alliander.com Contact Person: Hans Nooter Tel: +31629587514 E-mail: hans.nooter@alliander.com

Alliander, based in Arnhem in the Netherlands, is an independent energy networks company. It serves more than 3 million consumers and organisations. The business units of Endinet, Liander and Liandon make up the network company Alliander whose staff of around 6,660 employees is responsible for energy transportation and distribution in large areas of the Netherlands. In addition, we at Alliander are the specialists when it comes to complex private energy grids and installations. Alliander AG runs several local grids in Germany. With a turnover of approximately EUR 1.6 billion, Alliander occupies a prominent position as the first energy networks company within the Netherlands. The shares are held by local and regional authorities. As energy is essential for society as a whole Alliander is working to achieve balanced growth for all its stakeholders: customers, shareholders, staff, the environment and society. Our operations are focused on the important role that energy plays for the millions of households and organisations we serve. The mission of the network company Alliander is to contribute towards a better society in the regions in which we operate. We do this by managing the energy networks, guaranteeing a reliable energy supply and facilitating energy-related developments. In this way Alliander helps to promote social and economic growth. We accomplish this mission by being reliable in our provision of services, being engaged with our stakeholders and being the best in the sector. On the basis of our vision, Alliander has the ambition to promote sustainable development in terms of serving the energy transition. We aim at innovative and sustainable solutions by preparing our gas and electricity networks for future demands. We believe that innovation and knowledge are best served by working together. Many of our projects therefore involve other partners. We are working closely with other Dutch grid operators / network companies in the sector organisation Netbeheer Nederland; within Netbeheer Nederland; for instance on electric car vehicles, smart grid projects and biogas feed-in. Furthermore we work with local communities and other third parties, for instance at Amsterdam Smart City projects. We also participate in initiatives and organisations promoting clean and innovative solutions. Besides serving the energy transition our strategy draws on responsible operations and a high social responsability.

Alliander is committed to continuous and reliable energy provision, customer-focused services, while simultaneously contributing to energy saving and reduction of CO2 and other emissions. We are investing in our energy networks, ensuring feed-in of sustainable energy production by an increasing number of customers. Knowledge and experience are key requirements. We are constantly building these assets through research and pilot projects. A selection of these is presented in this report. Since 2010, Alliander publishes an annual integrated financial and corporate responsibility report according to the Global Reporting Initiative (GRI) guidelines. The reporting scope covers the full spectrum of financial and sustainability issues. Alliander intends to give its stakeholders a more detailed insight into its continuous efforts to make its business more sustainable. Alliander has joined the Energy Wisdom Programme because it believes in reducing greenhouse gas emissions through business-to business experience exchange and a joint action agenda. The longterm working process of the EWP provides a transparent platform to implement and support innovative energy (saving) alternatives.
KEY FIGURES as per 31 december
Number of electricity customers Number of gas customers Transported gas volumes million Transported gas volumes million Size of electricity transport network Size of gas transport network Average power outage per customer Employees, total number Employee satisfaction Revenue CO2 emission

unit
Thousands Thousands GWh m
3

2011
3,057 2,630 30,576 7,0390 87,483 42,460 20.0 6.647 8.3 1,58 836

2010
3,020 2,607 30,940 8,746 88,679 42,563 31.2 6.044 8.1 1,43 801

Kilometres Kilometres Min./year Number Rating ktonnes

latest information at: www.alliander.com

40

Participating Companies

Dr. Arthouros Zervos Chairman and CEO of PPC S.A

PPC is committed to acting towards a sustainable energy future and to achieving a very

low-carbon power supply by mid-century. The companys environmental strategy is aligned with the national and European energy policies for the increased use of renewable energy sources in the electricity industry, the improvement of energy efficiency, and the reduction of greenhouse gas emissions. PPC participates in the efforts of the global scientific community to find solutions to climate change. PPCs business plan includes replacing old power plants with new ones, improving energy efficiency in existing power plants, and major investments in renewable energy sources which Greece has in abundance. The company has participated voluntarily in the Energy Wisdom Programme from its beginning to demonstrate PPCs vision of greening the electricity sector and to highlight actions that improve energy efficiency and reduce greenhouse gas emissions. DEI Dimossia Epichirissi Ilectrismou (Public Power Corporation SA, PPC SA) www.dei.com.gr Contact person: Labrini Patmanidou Tel: +302105218630 E-mail: m.patmanidou@dei.gr

PPC S.A. is Greeces largest electricity generator, providing electricity to approximately 7.5 million customers. PPC holds significant assets in lignite mines, power generation, transmission and distribution. PPC is the largest industrial group in Greece, with total assets of 16.6 bn as of 31.12.2011, revenues of 5.5bn and 20,821 employees in 2011. It has a very strong brand name, concrete knowhow and specialised personnel. PPCs power portfolio in 2011 consists of conventional thermal and hydroelectric power plants, as well as RES units, accounting for approximately 71.3% of the total installed capacity in the country. PPC is active in the RES sector through its subsidiary company PPC Renewables S.A., with a portfolio of 22 wind farms, 12 smallscale hydroelectric plants and 12 photovoltaic units with a total installed capacity of 101 MW. Most of the countrys electricity is generated at power plants in northern Greece, in close proximity to the majority of the lignite mines, which is the primary fuel source. Some of the islands near the mainland are connected to the mainland transmission system through submarine cables (the Interconnected System). The remaining islands, which are referred to as the non-interconnected islands, are served by autonomous (oil-fired) generating power plants. In some of the islands, demand is also covered by wind-powered facilities. In 2011, PPCs net production was 41.5 TWh and the electricity generation including electricity imports covered 70.1% of total demand. PPC has set the protection of the environment as a basic parameter of its development policy, studying and taking the appropriate measures so that the environmental impact from PPC activities is the smallest possible. In order to reduce greenhouse gas emissions, PPC has implemented in recent years a series of measures with very good results. Projects presented in this edition are an example of these measures which contribute to the reduction of CO2 emissions by 7 million tons. The average CO2 emission coefficient of PPCs overall generation system decreased from 1.30 kg/kWh in 1990 to 1.021 kg/kWh in 2010, which is equal to a 21.5% reduction. Liberalisation, environmental legislation, pressure from governments, public and other stakeholders, and the need for excellent environmental performance are bringing about profound changes in the electricity industry.

To respond in the best possible way to the above changes and the EU requirements for legally binding greenhouse gas emissions reductions, PPC has planned several actions such as: new investments for the replacement of old power plants with new ones, equipped with the Best Available Technology and a high degree of efficiency, new investments in electricity generation from renewable energy sources, further development of the countrys hydro potential, investments to improve the environmental performance of the existing thermal plants followed by: - monitoring and reporting of CO2 emissions - upgrading and modernisation of the existing facilities and operation on the basis of the Best Available Techniques - implementation of efficient lignite combustion technologies and participation in innovative research programmes for CO2 reduction - promotion of further energy saving and rational energy use both in power generation and demand (urban district heating, improvement of thermal plant efficiency as Ag. Dimitrios and Kardia by improving the quality of the supplied lignite mixture etc.) - development of innovative technologies like hybrid energy plants and bio-fuels.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

41

Dr. Stelios Stylianou CEO of EAC

Fully aware of the rapid changes that are taking place in the electricity sector at a global

scale, promoting energy efficiency and conservation by accelerating the introduction of new clean technologies and reducing greenhouse gas emissions is among the primary long-term targets of the Electricity Authority of Cyprus. Capitalising on the potential of introducing new clean technologies can inevitably lead us to the enhancement of low carbon electricity generation in line with the strategy of our company. The EWP provides a key platform for electricity companies to present their pioneering commitment to adopting new technologies. I therefore welcome the new focus of the EWP in demonstrating EACs sustainable energy actions and showcasing our innovative project for the introduction of a new CCGT unit for a wide European audience. Electricity Authority of Cyprus www.eac.com.cy Contact Person: Charalambos Menelaou Tel: +35722201513 E-mail: cmenelao@eac.com.cy

The Electricity Authority of Cyprus (EAC) was established on 30 October 1952, under the Electricity Development Law. In the first two years the EAC was busy with the expropriation of the small companies in towns. Further to the construction of the Dhekelia A Power Station, the main transmission lines were constructed, linking the station with the main towns. From there on, the development of EAC and the electrification of Cyprus in general proceeded more quickly and growth continued very rapidly, especially after the establishment of the Cyprus Republic in 1960. In 1952 only 20,000 consumers were connected to the electric network. By the time of the establishment of the Cyprus Republic in 1960 this figure stood at about 80,000. The pace of the island's electrification scheme was thereafter impressive. The number of consumers had risen to 535,050 by 2010. With the rapid development of all sectors of the Cyprus economy industry, trade, and agriculture it soon became apparent that one power station could no longer meet the growing demands for electricity supply. A suitable location was found on the south coast near Moni village, and the Authority proceeded with the construction of a second power station. The first phase of the new station became operational in 1966, and when the station was completed by 1976 it had an output of 180 MW. Today Moni Power Station comprises five steam-turbine units of 30 MW each and four gas turbine units of 37.5 MW each with a total output of 300 MW. In the late 70s it became evident that there was a need to build a new power station to replace the ageing Dhekelia A Power Station, which was by then becoming uneconomic. Work commenced in February 1980, on a site next to the old station, for the construction of the Dhekelia B Power Station. The first unit of 60 MW was completed and commissioned in 1982. Additional units were commissioned in 1983, 1992 and 1993. Dhekelia B Power Station was finally completed in 1993, with a total capacity of 360 MW. Following its completion, Dhekelia A Power Station, which had operated for more than 30 years, was decommissioned in June 2002 and then dismantled. In 1997 work began for the construction of a new power station in the Vasilikos area. Vasilikos Power Station is situated 28 km east of Lemesos, in the vicinity of Governors Beach and Zygi. Phase I of the development, which was completed in 2000, comprises two 130 MW conventional heavy fuel oil fired steam turbine units (Units 1 and 2).

A black start gas turbine generator set of 38 MW nominal capacity was also installed under Phase I. Phase II comprises a further 130 MW steam turbine unit (Unit 3). Phase III comprises one CCGT unit of 220 MW (Unit 4) which was commissioned in November 2009. In the next years, three additional units of 220 MW each will come into the grid. These units will be of the combined cycle type, dual firing, using natural gas or diesel oil. On 11 July 2011, due to an explosion at the adjacent Mari Naval Military Base, Vasilikos Power Station suffered extensive damage which caused the complete interruption of its operation. As the Cyprus electricity network is isolated and not connected to any other network interconnected system, inevitable power cuts were initiated. Immediately after the incident a series of decisions and actions were taken to install and operate temporary generating units in order to ensure that the electricity system had enough capacity to meet the electricity demand. Because of these measures the rotating power cuts effectively stopped in mid-August 2011. EAC is proceeding with the restoration of the Vasilikos Power Station. The goal is the speedy, safe and cost-effective return of the station to full operation as soon as possible.

42

Participating Companies

Antnio Mexia CEO of EDP


EDP is firmly committed towards contributing to the 6th Energy Wisdom Programme, which envisages reaching carbon-neutrality by 2050. In recent years, we have been able to successfully anticipate and correctly execute efficiency, asset allocation, and risk management policies, not only adapted to the recent developments in the energy sector but, more importantly, that enabled the company to be in a unique position to face the upcoming challenges. Today, and for the second consecutive year, EDP has been appointed as the world leading company in the electric sector, according to the Dow Jones Sustainability Index. This is the corollary of a strategic framework that encompasses a vision composed by a tripartite approach, covering our economic, environmental and the social concerns. Our focus on clean energy generation, mainly through hydro and wind, alongside our energy efficiency programmes and our smart-grid development, keeps us on track towards achieving a target of 70% reduction of CO2 emissions intensity in 2020, when compared to 2008. Emissions reduction is a global effort that has to be jointly undertaken. Fortunately, EURELECTRIC and its members keep setting the necessary standards, and the results achieved show we are on the right track.

EDP Energias de Portugal www.edp.pt Contact Person: Pedro Paes Tel: +351210021563 E-mail: pedro.paes@edp.pt

EDP is the largest generator, distributor and supplier of electricity in Portugal, the third largest electricity generation company in the Iberian Peninsula, one of the largest gas distributors in the Iberian Peninsula and the third largest wind power operator worldwide. It also has electricity distribution and generation activities in Brazil. For the second year running, Dow Jones Sustainability Indexes have considered EDP the world leader in the electric sector. In the context of the eighth reprivatisation phase of EDP, the Portuguese State announced that China Three Gorges has been selected to purchase a 21.35% stake in EDP. Accordingly, the establishment of a strategic partnership with CTG was approved, which strengthens EDPs credit profile through the increase of EDPs financial liquidity position. Historically, EDPs core business has been electricity generation, distribution and supply in Portugal. Given Spains geographical proximity and its regulatory framework, the Iberian Peninsulas electricity market has become EDPs natural home market, and EDP has made this market the primary focus of its energy business. In Spain, EDPs main subsidiary is HC, which operates electricity generation plants and distributes and supplies electricity and gas, mainly in the Asturias region. In the gas market, EDP holds significant interests both in Portugal and Spain through EDP Gs in Portugal and Naturgs in Spain, one of the largest gas distribution companies in the Spanish market, mainly in the Asturias and Basque regions. EDP, through its subsidiary EDP Renewables (EDPR), currently operates about 7 GW of wind generation assets in 10 countries (Portugal, Spain, France, Belgium, Poland, Romania, Italy, UK, USA and Brazil). EDPR has a huge pipeline of wind projects in different stages of construction and development in these countries. In Brazil, EDP has significant electricity generation (large and minihydro power) and distribution businesses in the states of So Paulo, Espirito Santo, Tocantins, Cear and Mato Grosso do Sul through EDP Energias do Brasil, S.A, a company listed on the So Paulo stock exchange. EDP Brasil is the holding company for the majority of EDPs investments in the Brazilian electricity industry, including its distribution companies Bandeirante and Escelsa; its generation subsidiaries Energest, EDP Lajeado, Enerpeixe and Pecm; and its supply subsidiary Enertrade.

EDPs business strategy is based on three central pillars: Controlled Risk: EDP aims to limit risk by actively managing the major risks that affect its operations, in particular regulatory, commodity, market and financial risk. To minimise its regulatory risks, EDP actively manages the regulatory agenda in the markets in which it operates, and EDP has invested in reducedCO2 generation technologies to mitigate the risk of increasing restrictions on CO2 emissions. Superior Efficiency: EDP continually seeks to improve its operating efficiencies to preserve its competitiveness. EDP also strives to take advantage of operational efficiencies throughout its international network by promoting an integrated culture across all of its subsidiaries. Targeted Growth: Expansion projects in wind power generation, hydroelectric power in Portugal and new power generation in Brazil. These three pillars reflect the EDP Groups committed vision towards sustainability. The EDP Group recognises the social responsibilities which result from a company of our size, and its duty to help build a fairer society. With our passion for living and our respect for nature, we want to restore the environmental balance and ensure its sustainability, bearing in mind the challenge of climate change. By promoting energy end-use efficiency, helping our customers to pursue a rational use of energy, we believe to be on the right path to improving the planets sustainability.

Key Figures 2011


Turnover: 15,121 million euros Total generation capacity: 23 GW (14.5 GW renewables) Total electricity generated: 57.2 TWh (36.2 TWh from renewables) Total number of employees: 12,119 Total number of customers: 11 million

ENERGY WISDOM PROGRAMME 2012-2013 Edition

43

Andrea Brentan CEO of Endesa

ENDESA is an international power company firmly committed to the principles of responsible and sustainable growth. To achieve this objective, the company has included environmental and social opportunities in its strategy and management model. Therefore, in parallel with meeting economic objectives, the company is developing plans and projects in order to achieve key sustainability targets that are expressed in the ENDESA's Sustainability Plan, which includes among other things, the priority challenge of combating climate change. ENDESAs involvement in the fight against climate change has gained us global recognition: it is one of the utility leaders in the last CDP Index, the international benchmark for corporate data releases on emissions of greenhouse gases. We firmly believe that working in this direction will not only contribute to sustainability but will also be the key for the development and leadership of our company. The Energy Wisdom Programme is a great platform to illustrate our improvements in energy efficiency and our greenhouse gas emission reductions.

ENDESA www.endesa.es Contact Person: David Corregidor Sanz Tel: +34912131483 E-mail: david.corregidor@endesa.es

ENDESA is the leading operator in the Spanish electricity sector and the largest private multinational electricity company in Latin America, with operations in nine countries (Spain, Portugal, Chile, Argentina, Colombia, Peru, Brazil, Ireland and Morocco). The company has a workforce of 24,732, a total of 25 million clients and installed power of 40,141 MW. In 2010, ENDESA increased its net income by 20.4% to 4.129bn and revenues by 20.3% to 31.177bn. Despite the drop in electricity generation, an increase in energy sold and the companys margins saw EBITDA in 2010 reach 7.474bn, 3.4% more than in 2009. EBIT was 5.031bn, down 0.4% against 2009. ENDESAs core businesses are electricity generation, distribution and sales, although it also operates in the natural gas business (supply, distribution and sales), as well as in cogeneration and renewable energies. In these two latter areas, the company mainly focuses on wind farms, mini-hydro plants, waste-fuelled power and biomass. ENDESA works hard to combat climate change both in the company itself and society in general. These efforts are primarily channelled through ENDESAs 2008-2012 Sustainability Plan and its Climate Change Programme, focusing on five priority areas: 1. Active participation in the development of renewable energies. 2. Spearheading new developments in technology that lead to reduced CO2 emissions and a change to the energy model. 3. Unlocking opportunities related to energy efficiency and cogeneration in all business areas. 4. Leading the development of a sustainable transport model based on electric vehicles. 5. Development of a portfolio of Clean Development Mechanisms (CMD) and Joint Action projects (JA).

ENDESA has a 2010-2014 Global Energy Efficiency Plan (PGE3). This plan is included in ENDESAs Sustainability Plan (PES 2008-2012) and is intended to position ENDESA as a leader in this field and help it meet its commitment to cut CO2. ENDESA has cut CO2 emissions from its power facilities by 12.5 million tonnes over the last five years, thanks to a range of initiatives the company has implemented in its generation plants and distribution networks. This implies an annual reduction of approximately 2.5 million tonnes, equivalent to 5.5% of the companys total annual emissions.

44

Participating Companies

Johannes Teyssen Chairman on the Board of Management and CEO of E.ON

Our energy system is changing. To meet our climate goals and ensure energy remains affordable and secure, we will need to transform how we use, produce, distribute and store energy. To make this change happen, we need significant investments and a robust European internal energy market. New power generation, grids and smart efficient technologies will need to be delivered within a long-term framework that secures investment and meets EU and country targets. Policies such as the EUs 2050 Energy Roadmap or Horizon 2020 will be crucial in setting these guidelines. At E.ON, were already preparing for the future. Through its partnerships, E.ON supports research facilities and R&D projects all across Europe. Our projects are developing energy efficiency measures, energy storage, E-mobility and much more. And were also busy transforming our energy system by delivering investments today. A key focus of our growth in Europe is renewables, particularly offshore wind. Over the next five years, we plan to spend 7 billion in expanding our renewables capacity and hope to commission a new offshore wind farm every 18 months.

E-ON www.eon.com Contact Person: Nicole Henkel Tel: +4921145795332 E-mail: nicole.henkel@eon.com

E.ON is one of the world's largest investor-owned energy companies. At facilities across Europe, Russia, and North America, our round 79,000 employees worldwide generated just under EUR 113 billion in sales in 2011. The groups diversified businesses consists of power generation, natural gas, energy trading, retail and distribution they are located in over 30 countries. E.ON is one of the worlds top ten renewables players, and its balanced generation portfolio of more than 69 GW is already almost one third zero carbon. It also operates large power and gas distribution systems and supplies 26 million customers with energy.

Thirteen E.ON Innovation Centers, which are embedded in our businesses, coordinate activities in their respective technology area across our entire company. Two technology areas, Energy Storage and Smart Home, were identified as having significant potential for changes to the competitive landscape, business-model innovation, and disruptive technologies. Energy Storage We pooled our international expertise for all energy storage technologies. In Falkenhagen, Germany, we set up of our first powerto-gas pilot project. In this procedure, electricity powers a chemical process that transforms water into hydrogen, which can be stored in the natural gas pipeline system. Smart Home In collaboration with technology partners, E.ON established seven customer test beds in Sweden, the United Kingdom, and Germany with the aim of entering the smart-home market in early 2013. In 2012, several hundred E.ON customers across Europe will test the mass-market potential of smart-home products and services by companies such as Deutsche Telekom, Telefunken, GreenwaveReality, and VS Safety. Retail A field test of residential fuel cells, our micro CHP units achieved 90 percent availability under realistic daily operating conditions and a reduction in carbon emissions. The EU helps fund the development of this technology. The project involves the installation of 100 units in the United Kingdom and Germany using equipment manufactured by CFCL and Ideal Boilers. Renewables Together with partners, we tested methods to reduce underwater noise during the construction of offshore wind farms. In Sicily, we set up arrays of high-concentration photovoltaic (HCPV) modules to gain firsthand experience with the installation and performance of different HCPV concepts. Our wave-power demonstration project in the Orkney Islands reached 1,000 hours of operation and expects to reach 5,000 hours in 2012. E-Mobility We launched a range of comprehensive, custom-tailored e-mobility solutions for business, municipal, and residential costumers. To give inter-city e-mobility users easy access to charging stations, we set up Germanys first public direct current fast-charge station. We are convinced that this state of the-art station is a real alternative to at-home charging using alternating current.

Strategy
Cleaner & better energy in and outside Europe is the guiding theme of the new strategic course we announced in November 2010. E.ON will transform itself from a primarily European energy utility to a global, specialized provider of energy solutions. Our new course states a clear commitment on our part and provides answers not only to current challenges but also to long-term megatrends in the European and global energy world. By making cleaner & better energy our guiding theme, we are not setting targets for E.ON or for policymakers but rather stating our commitment to improving the world of energy wherever we operate.

Corporate Structure and Operations


Led by Group Management in Dsseldorf, the E.ON Group is segmented into global units (by function) and regional units (by country). Five global units are responsible for our generation portfolio, renewables business, new-build projects and innovative technology, global gas business and trading activities. Twelve regional units manage our operating business in Europe. Russia is a special focus country. With E.ON International Energy we created a new unit to expand our business outside Europe. It will leverage our expertise in conventional and renewable power generation to regions where energy demand is growing rapidly. After a thorough analysis phase in 2011 E.ON selected three countries as potential target markets: Brazil, Turkey, and India.

Technology and Innovation & Project examples from 2011


In 2011, we reconfigured the organizational setup for our Technology and Innovation activities. A new department at Group Management steers our portfolio of activities, monitors potentially disruptive technologies, and evaluates ideas for new business models. One of its key tasks is to develop and manage new businesses until they are handed over to existing business units or newly created business units.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

45

Pat ODoherty CEO of ESB

Despite current difficult economic circumstances, the need to address the environmental

and energy objectives of Ireland and the wider EU remains. ESB is fully committed to its sustainability goals and to contribute to the Government responses in these areas. We continue to deliver on our strategic plan and to engage with the communities we serve. There is no real alternative if we wish to meet the challenges to reduce fuel import dependency, create secure long-term energy supplies, and limit the risks from climate change and from habitat loss. The Energy Wisdom Programme remains an important demonstration of the commitment of the energy sector to deliver the 2050 targets on decarbonisation of electricity. owever, conflicting policy instruments at EU level between RES, energy efficiency and CO2 reduction ESB - Electricity Supply Board www.esb.ie Contact Person: Tony Carroll Tel: +35317026645 E-mail: tony.carroll@esb.ie

remain a challenge.

ESB was established under statute in 1927 and, with the exception of transmission system operations which are the responsibility of the independent operator Eirgrid, our activities include the generation, trading, distribution and supply of electricity and the provision of energy services to final customers. ESB also provides engineering services internationally through our consultancy arm, ESBI. The Irish State holds 95% of the shareholding of the company, with the remainder held by staff. In 2010 we employed just over 6,900 staff, supplied some 1.2 million customers with electricity and achieved over 2.7 billion in revenue. The total assets of the company amount to 12.1 billion. We have generation operations in Ireland, Spain and the UK. The company also made some 2 billion of investments of which 1.2 billion related to the acquisition of Northern Ireland Electricity (NIE). Our main businesses are structured as follows: ESB Energy International encompasses ESB Groups generating and energy trading operations and the consultancy, asset management and investment businesses of ESB International. ESB Networks owns the transmission and distribution assets in the Republic of Ireland and operates the distribution system and our telecoms business. ESB Electric Ireland is the supply arm of our business and includes the provision of energy efficiency services. Our 2008 Corporate Strategy places sustainability and carbon emissions reductions at the core of our business and sets short-, medium- and long-term goals in this respect. Our vision is for ESB to be a world-leading, commercially successful and environmentally responsible utility capable of adapting to the changing markets in which we operate. ESBs legacy coal, peat and gas-fired plant mean that we face a challenge in delivering the stretching carbon emissions targets contained in our Corporate Strategy. However significant progress has been made in recent times with the closure of some older plant and the construction of a new, high-efficiency CCGT plant, and we are on track to achieve our first interim target of a 30% reduction in CO2 emissions by 2012. These goals apply not just to our generation activities but also our networks business, which will provide the infrastructure to support the deployment and integration of renewable technologies and delivery of energy efficiency improvements. At the end of 2010 we had 5.6 GW of generation of which 4.5 GW were located
46
Participating Companies

in the SEM (Single Electricity Market of the Republic of Ireland and Northern Ireland). We have expanded our wind portfolio and at end 2010 had 235 MW of capacity installed and a further 95 MW under construction. This adds to our 217 MW of hydro and 292 MW of pumped storage capacity. During 2010 ESB made a 1.2 billion investment acquiring the distribution company in Northern Ireland (NIE). Our aim is to continue to invest on average about 0.9 billion p.a. over the next decade in the SEM on network development, the deployment of smart meters and the creation of a national charging system for electric vehicles. ESB has sought to be an exemplar in sustainability by setting improvement targets in respect of resource use, including energy. A wide range of programmes to save energy and other resources are in place and we have made significant savings to date against our targets. A challenge in this regard is the way electricity is treated when determining building energy efficiency usually calculated in terms of primary energy-equivalent savings. The current EU default value (2.5) discriminates against electricity use for heating and cooling despite the emissions savings delivered and, in the case of heat pumps, the renewable energy contribution made. ESB is working at national and EU level to correct this anomaly. Notwithstanding the financial challenges facing Ireland and ESB, the company continues to innovate. A more structured approach to Research and Development decision-making and reporting was adopted in 2010. The company continued its investment in new areas of activity including the electrification of transport, the development of ocean energy and, through our venture capital fund Novus Modus, a number of exciting new technologies derived from research undertaken within the national university system. ESB is proud of its pedigree as a responsible, ethical and prudent utility which now serves nearly two million customers and has strong bonds in every local community in Ireland. ESB is building on the commitments it made as a founder member of Business- in-theCommunity-Ireland, a group of companies committed to continually improving their positive impact on society.

Marcel Frei CEO of ewz


The City of Zurich is a firm advocate of sustainable development (2000 Watt Society), and to this end takes commensurate action in areas such as traffic policy, urban planning and energy policy. ewz, as the municipal power utility, actively contributes to improving energy efficiency and to substituting conventional fossil and nuclear fuels with renewable energy. Since 1991, one tenth of projected net earnings have been earmarked for efficiency programmes and the promotion of renewable energy within the energy saving fund (see 3.2). ewz has shown innovation leadership through a range of initiatives: the introduction of a solar power exchange in 1996 and the establishment of energy contracting services in 1997. The launch of green electricity products and an efficiency incentive scheme for large customers in 2006 have extended our services to promote the sustainable use of energy. The Energy Wisdom Programme offers ewz a unique opportunity to illustrate the efforts we have made towards promoting the sustainable use of resources and the reduction of greenhouse gases. ewz is the municipal power utility of the City of Zurich and has been supplying Zurich and parts of the Grisons with electricity since 1892. It is ewz's top priority to supply power that is reliable, cost-efficient and environmentally friendly.

ewz - Elektrizittswerk der Stadt Zrich www.ewz.ch Contact Person: Dr. Gian Carle Tel: +41 583 194 205 E-mail: gian.carle@ewz.ch

ewz is the municipal power utility of the City of Zurich and has been supplying Zurich and parts of the Grisons with electricity since 1892. It is ewz's top priority to supply power that is reliable, cost-efficient and environmentally friendly. Our core business is the production, distribution and supply of electricity to our 220,000 customers. In recent years, ewz has been offering products and services that go beyond its core business such as energy (efficiency) consulting and heat and cooling contracting. ewz currently produces 4.4 TWh of electricity from hydro, nuclear, waste, biomass, wind and solar power from a portfolio that spans Europe (Switzerland, Norway, Germany, Austria and Spain). Its current focus is to secure viable locations for the generation of power from renewable sources of energy to replace those that are non-renewable. ewz employs approximately 1,000 people and generates annual revenues of CHF 730 million (2010). Since 2008, the principle of sustainable development has been anchored firmly in the energy vision of the City of Zurich. This vision is committed to achieving per capita emissions of one tonne of CO2 by 2050 and a per capita 2,000 watt society over the long term, i.e. to reducing primary energy demand by a factor of three to four. For twenty years ewz has been proactively supporting this vision and since 1991 has spent CHF 20 million on energy efficiency consulting and CHF 65 million on energy efficiency programmes and the promotion of renewable energy. Each year the energy efficiency incentive scheme for large customers, introduced in 2006, awards CHF 12 million to customers that have reached their energy efficiency targets. In 1996, ewz introduced a solar power exchange to facilitate trading between solar electricity producers and solar power consumers at fair prices. Some 16% of Swiss solar power is currently traded on the ewz solar power exchange. The launch of green electricity products in 2006 has further raised demand for new renewable power.

ewz has also entered the fast-growing market of energy contracting, operating over 170 facilities and supplying 160 GWh for heating and cooling purposes, mainly by means of large-scale heat pumps and cooling machines. One of ewz's areas of specialisation is the use of lake water as a heat source, with the famous Badrutt's Palace Hotel in St. Moritz a case in point: a central heat pump using water from the nearby lake (output 4,000 MWh/a), accompanied by a smallscale garbage incineration plant (550 MWh/a) and two small backup oil boilers (750 MWh/a), serves all of this famous hotel's heating and cooling needs. Similar to the St. Moritz project, a number of district heating networks in Zurich are fed from heat pumps that use water from Lake Zurich as an energy resource. ewz also aims to use environmental effluents R134a and NH3 (ammonia) in heat pumps. 19,700 tonnes of CO2 emissions are currently being reduced each year in energy contracting projects. ewz can present best practice examples to other municipalities and is committed to the further reduction in energy consumption and to the enhancement of efficiency. Over the long term, only energy from renewable sources will be able to provide the crucial environmental targets of annual per capita emissions of 1 tonne of CO2 equivalent and per capita consumption of 2,000 watts.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

47

Tapio Kuula President and CEO of Fortum Corporation

Mitigation of climate change is and will remain one of the biggest global challenges.

Fortum is therefore highlighting the role of CO2-free hydro and nuclear power and energy-

efficient combined heat and power in moving towards the future energy system Solar Economy. Inexhaustible, renewable and emissions-free solar energy will be the solution in tomorrows world, where energy will be both produced and consumed in a smarter way. Fortum's long-term aspiration is to be a CO2-free energy company. We are already moving from Solar Economy research to commercial development. The EWP provides us with a platform to communicate our commitment and voluntary efforts in developing a sustainable energy future. Through the EWP leading companies can disseminate best practices and project experiences. The programme demonstrates the prominent achievements on our road to the low-carbon economy the goal to which we are jointly committed. Fortum Corporation www.fortum.com Contact Person: Kari Kankaanp Tel: +358104532330 E-mail: kari.t.kankaanpaa@fortum.com

Fortum is a leading energy company in the Nordic countries, Russia and the Baltic rim. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services. In 2011, Fortum net sales were 6.2bn. Fortum's shares are quoted on the Helsinki Stock Exchange. The average number of employees is 10,800. Fortum's electricity generation portfolio (14.8 GW in 2011) is flexible and diversified, ranging from natural gas, coal and peat to waste and wind power, with its cornerstones being hydro and nuclear power. In 2011 our heat production capacity was 24.7 GW. We sell electricity to a total of 1.2 million customers in Sweden, Finland and Norway. The number of distribution customers is 1.6 million. Fortums mission is to create energy that improves the life of present and future generations. This mission embodies Fortums responsibility for the environment, society and its financial performance. We provide sustainable solutions that fulfil the needs for low emissions, resource-efficiency and energy security, and deliver excellent value to our shareholders. Fortum's long-term aspiration is to be a CO2-free power and heat company. Our strategy is based on strong know-how in CO2-free hydro and nuclear power production and energy-efficient combined heat and power (CHP) production, and in sustainable electricity and heat solutions. Fortum believes that it is possible to make a transition from traditional energy production and utilisation of finite energy sources towards the future energy system Solar Economy. In Fortum's view, Solar Economy is based on infinite and zero-emissions energy production and high resource and system efficiency. In Solar Economy, energy from the sun will be used either directly as solar electricity or heat, or indirectly as hydro, ocean, wind and bioenergy, and geothermal energy. Fortum has taken a proactive approach to climate change mitigation. Our aim is to turn the threats posed by the climate issue into business opportunities. We also emphasise the role of market-based climate instruments and the need for broad international participation in the global climate efforts. The major part of Fortums greenhouse gas emissions in Europe is included in the EU emissions trading scheme. The use of Kyoto mechanisms is also an important part of Fortums climate action. We are continuously aiming at better climate performance, for example by paying special attention to the climate issues in our investments and acquisitions as well as in our research and
48
Participating Companies

development. In 2011 85% of our electricity production in Europe was free of CO2 emissions. The specific CO2 emission of our European electricity production was 88 g/kWh among the lowest in the sector. To our customers in Finland and Sweden, we sell only environmentally labelled electricity. In the utilisation of renewable energy sources, we focus on increasing the use of biomass and developing hydropower, for instance by refurbishing hydropower plants and increasing their efficiency. We collaborate with research institutes and partners to study various energy production technologies, such as solar technology, wave power and integrated CHP concepts. We are also developing heat generation based on recycled fuels. In 2011, the share of renewable energy sources in Fortums total power generation was 30% and in heat generation 16%. For Fortum, the responsible use of natural resources also means efficient energy production: producing more useful energy with the same volume of natural resources. Our climate-benign products, for example district heating and district cooling, replace in many cases our customers own and often less efficient energy generation. This leads to improved energy efficiency in society as a whole. In 2011 Fortum was ranked the best utility company globally in the Carbon Disclosure Leadership Index. Fortum was also included in the Dow Jones Sustainability World Index and in STOXX Global ESG Leaders Indices. We were awarded SAM Bronze Class in the Sustainability Yearbook 2011 and a Prime Status (B-) rating by oekom research AG. Fortum has been involved in the Energy Wisdom Programme since the very beginning. The EWP has been an important tool in our communication activities on sustainable development. We consider the EWP as a useful platform and discussion forum to disseminate best practices and project experiences among the leading companies in sustainable energy production, delivery and use.

Rafael Villaseca CEO of Gas Natural

We are aware of the fact that the new energy framework which has arisen due to global

warming represents a value-creating opportunity for our company. Consequently, we want to take advantage of new market opportunities by developing low-carbon technologies, applying energy efficiency, setting up sustainable mobility, using natural gas as a transition fuel in the move towards a low-carbon economy, investing in mature renewable energy. Gas Natural Fenosa is strongly involved in the challenge of satisfying societys demand for energy in a safe, efficient and environmentally-friendly way. In this context, natural gas will play a decisive role, both in the transition to a less carbon-intensive economy and through its prominence in the international energy balance in coming years. This low-carbon business model is our main contribution to sustainable development and the well-being of people. Gas Natural www.gasnatural.com Contact Person: Amado Gil Martinez Tel: +34915676506 E-mail: agilm@unionfenosa.es

Gas Natural Fenosa is one of the worlds leading multinationals in the gas and electricity sectors with more than 17,700 employees around the world. Operating in 24 countries, it has about 20 million customers and nearly 16,000 MW of installed power. It is the largest integrated gas and electricity company in Spain and Latin America, the largest natural gas distribution company in Latin America and leads the natural gas commercialisation market in the Iberian Peninsula. It is one of the largest liquefied natural gas operators in the world and, with a fleet of 10 methane tankers, the most important in the Mediterranean and Atlantic basins. Gas Natural Fenosa operates throughout the gas value chain through its participation in exploration, production, liquefaction, transport and distribution projects. In the electricity industry, the company is the third largest Spanish operator with nearly 36 TWh. It is also a significant player in Latin America where it sells energy produced at its thermal power stations and renewable energy facilities. The company's generating mix is rich and diversified both in Spain and in other countries, and includes combined cycle gas turbines, hydro, nuclear, coal-fired and renewable energies. This diversification, along with the companys long history in the energy industry, enables it to compete with maximum efficiency within increasingly competitive and globalised markets. The use of natural gas involves high-performance technologies. This factor, together with natural gass inherent characteristics, means that it can offer a better energy balance than other fossil fuels. Accordingly, the greater efficiency of natural gas combined-cycle power plants, which reach efficiency levels of almost 60%, mean that natural gas is the ideal fuel for producing electricity. These efficiency advantages of natural gas produce positive environmental effects by reducing emissions: in order to achieve the same amount of energy, less natural gas has to be burned than other fossil fuels. One of the pillars of the new company is the boost of sustainable power generation technologies with high security and supply. Another pillar is to improve internal efficiency through the sharing of best practices across the business and geographic areas. Continuous improvement in efficiency has always been a hallmark of the group.

It is also important to highlight our participation in projects related to new energies, such as applications of natural gas as fuel for transport, electric vehicles and the development of carbon capture and storage. 2011 turned out to be an important year for the strengthening of the companys strategic position in the energy industry. Moreover, it was an excellent year in which Gas Natural Fenosa gained several recognitions in prestigious indexes such as the Dow Jones Sustainability Index, the Carbon Disclosure Project and the Green Ranking, consolidating the companys top class environmental performance all over the world. Today, Gas Natural Fenosa is a well-positioned company: it ranks 7th in the list of IBEX35 industrial companies; it is the worlds leading company in the gas sector according to Platts; it is listed as the 372nd company in the world according to Fortune Global 500, and at 88th place in Europe according to German newspaper Handelsblatt.
Gas Natural Fenosa's Main Data
Installed Capacity Net Production Gas supply Electricity distribution Gas & Electricity distribution supply points Gas distribution network Electricity distribution network Employees

unit
MW GWh GWh GWh N km km N

2011
15,443 56,616 395,840 54,067
19.505.000

2010
17,328 58,389 411,556 54,833
20.797.000

117,711 244,818 17,769

115,271 186,094 18,778

ENERGY WISDOM PROGRAMME 2012-2013 Edition

49

Seppo Ruohonen CEO of Helsingin Energia

A diverse production structure will remain necessary in the future to ensure the secure

supply of energy in the capital and throughout Finland. Helsingin Energias development programme towards a carbon-neutral future and the related studies played a substantial role in 2011. We succeeded in drawing up a development programme that combines the needs of the city and the Helen Group and we succeeded in gaining wide political approval for it. The development of smart energy systems is inescapably important in order to fare well in the future energy market. To this end, we are guided by the consumers needs and the possibilities provided by smart electricity grids. Helsingin Energia wants to be a forerunner in the development and introduction of new energy-efficient technology. Helsingin Energia www.helen.fi Contact Person: Rauno Tolonen Tel: +35896172830 E-mail: rauno.tolonen@helen.fi

As one of the largest energy companies in Finland, Helsingin Energia supplies electric energy to approx. 400,000 customers in Finland and covers more than 90% of the capital citys heat demand with its supply of district heat. Helsingin Energia produces and sells district cooling, which is expanding considerably in Helsinki. Helsingin Energias 2050 carbon-neutrality target is based on broad-minded development of cogeneration processes and energy efficiency and a sizeable development programme.

The efficiency of energy use was improved in energy production and distribution, as well as in our own operations. At Vuosaari, the turbine modernisation of the B power plant was completed, gaining annual energy savings equal to the energy use of some 10,000 detached houses. A new eco-efficient data centre was opened in Suvilahti. District cooling is used for the cooling of data centres, and surplus heat from the computers is utilised in district heating to keep homes warm in Helsinki. The data centre is operated by Academica Oy. Active work to promote energy saving by customers continued. Advice on energy use was given by telephone to more than 40,000 customers, online to over 30,000 customers, and in person at Shktalo to over 10,000 customers. Helsingin Energias Svel Plus reporting service gained active new users. With the service, our customers can compare their energy consumption with previous consumption and that of a similar consumer group, facilitating even more target-oriented management of energy consumption.

Energy year 2011


During the year, we studied various alternatives for forest-based biomass as a source of energy: woodchips, pellets, biocoal and biogas. Helsingin Energia took part in the Hme forest energy study, which highlighted the great challenges regarding the availability and logistics of bioenergy in the Helsinki region. Gasification of forest-based biomass into synthesis gas suitable for a natural gas network progressed close to the testing phase with companies in the forest industry. Biocoal is also a promising and energy-dense fuel, which was studied in terms of technology, as a life-cycle analysis and with respect to its impact on climate and economy. Helsingin Energia and EPV Energia Oy are developing two offshore wind farms of a significant size outside Inkoo-Raasepori in the Gulf of Finland and outside Kristiinankaupunki in the Gulf of Bothnia. After completing the environmental impact assessments of offshore wind power, we stepped up co-operation with the municipalities where the wind farms would be located in order to launch planning procedures. Carbon dioxide emission levels continue to fall as a result of ecoefficient generation of electricity, heat and cooling in interconnected processes. Carbon dioxide emissions from energy generation in Helsinki fell by about 11% in 2011. Specific emissions totalled 250g CO2/kWh, compared to 400g CO2/kWh in the international reference year 1990.

50

Participating Companies

Ignacio S. Galn Chairman of the Board & CEO of IBERDROLA

projects designed to upgrade and modernise the power grid based on remote control technology. The new smart grids are paving the way for defining new customer products and services and will ultimately raise service standards. The grid transformation work being promoted by the company will contribute to delivering on the European Unions environmental targets: promoting energy efficiency, facilitating grid integration of renewable energy and the mass market roll-out of electric vehicles. Iberdrola has driven several initiatives in this field in Spain (Vizcaya and Castelln), the United Kingdom (Glasgow) and the United States (Maine). Notable among them is the culmination of the final phase of the Star Project in the city of Castelln, where 90,000 meters have been installed and 520 transformer stations have been adapted. We are very proud to have participated in the EWP since its first edition and we fully believe in initiatives focused on greenhouse gas reduction projects and improved energy efficiency disclosure. IBERDROLA www.iberdrola.es Contact Person: Monica Oviedo Cespedes Tel: +34618777429 E-mail: moviedo@iberdrola.es

IBERDROLA is tracing the roadmap for the development of smart grids with a number of

IBERDROLA has undergone a major transformation in the past decade that has seen it become Spains leading energy group, the fifth largest Spanish company in the Ibex 35 stock index, the global wind power leader and one of the worlds five largest electricity groups. This has been possible thanks to a solid, long-term industrial project that has created value, founded on a sustainable growth strategy and the efforts of a multicultural workforce of 30,000 professionals in 40 countries. With 30 million customers, we are working towards providing the cleanest energy on the planet. After more than 150 years of progress, the Company has a sound base for future growth. We can play a leading role in the evolving international energy panorama, in which secure, competitive and sustainable supply is paramount and in which clean technology will be decisive in combating climate change and reducing dependence on fossil fuels. IBERDROLA works to be an energy Company committed to ethics and respect for the environment as the foundation for a sense of belonging and for the trust of all persons and its various stakeholders. This is reflected in the Company's vision, which applies in full to the IBERDROLA Group: We aspire to be the preferred Company because of our commitment to the creation of value, peoples quality of life and the protection of the environment. IBERDROLAs vision, which brings together the economic, social and environmental aspects of sustainability, is based on six values representing firm commitments of the Company: Corporate ethics and responsibility: IBERDROLA is committed to the best corporate governance practices, to principles of business ethics, and to transparency in all of the Companys fields of endeavor. Economic results: IBERDROLAs commitment to achieve the growth and profitability objectives spelled out in the Companys Strategic Plan is the method to ensure the success of the corporate plan and to meet the demands and expectations of all groups involved in the present and the future of IBERDROLA; Respect for the environment: The focus on the development of clean energy and respect for the environment are some of the pillars of IBERDROLAs company model and the factors that distinguish our Group as one of the worlds leading energy companies in the 21st century. Sense of belonging and trust: IBERDROLA strives to establish firm and permanent ties with its stakeholders, thus building a sense of belonging to an excellent Company, of which such stakeholders feel an integral part and in whose plan they feel involved. Safety and reliability: IBERDROLA strives to offer its energy supply and to carry out the other activities undertaken by the Group within

a safe and reliable environment. Peoples safety at the Groups facilities, in surrounding areas and among customers, as well as the development and dissemination across the entire Group of the best practices in the area of safety and prevention, are essential components of its processes. Customer focus: IBERDROLA strives to know the needs and expectations of its customers, and seeks a continuous improvement of their level of satisfaction and their attachment to the Company. IBERDROLAs objective is to provide the highest service quality while complying with its regulatory obligations.
Operating Data
Net prodution Hydro Nuclear Coal Fuel-Oil Gas Combined Cycle Cogeneration Renewables Installed capacity Hydro Nuclear Coal Fuel-Oil Gas Combined Cycle Cogeneration Renewables Energy power distributed Electricity customers Gas customers Gas supplies Gas storage Employees
(supply points managed) (supply points managed)

12 M 2011
GWh GWh GWh GWh GWh GWh GWh GWh MW MW MW MW MW MW MW MW GWh N(mil) N(mil) GWh bmc N 145,126 17,732 24,290 12,947
0

12 M 2010
153,587 21,634 26,111 14,961
39

%
-5.5 -18.0 -7.0 -13.5
-100.0

56,174 5,262 28,721 46,026 9,731 3,373 4,709 157 13,189 1,177 13,690 204,887 27.4 3.3 108,387 2.55 32,809

58,894 6,542 25,405 44,814 9,643 3,373 4,709 157 13,172 1,229 12,532 200,329 25.8 3.5 141,115 2.25 29,643

-4.6 -19.6 13.1 2.7 0.9

0.1 -4.2 9.2 2.3 6.2 -6.3 -23.2 18.7 10.6

ENERGY WISDOM PROGRAMME 2012-2013 Edition

51

Pawe Skowronski CEO of PGE S.A.

Actions speak louder than words. Our latest projects confirming that PGE is focused on energy-efficient and climate-friendly solutions include: i) a highly efficient CCS-ready 858 MW unit in the Belchatow power plant; ii) modernisation of 10 existing units in the Belchatow power plant, aimed at improvement of generation efficiency and lower sulphur dioxide as well as nitrogen oxides emissions; iii) the commissioning of a new 183 MWt biomass-fired CHP boiler. As the biggest power company in Poland a country strongly dependent on domestic coal and lignite reserves we feel responsible for diminishing the power sectors negative impact on the environment by promoting the most efficient generation technologies. Moreover, we are diversifying our energy mix through initiatives in a large number of areas, such as development of renewable energy sources and cogeneration, improvement of generation efficiency, and reduction of the companys own power consumption. We expect our policies to reduce PGEs carbon intensity of power generation by as much as 75% up to 2035. We are happy to once again take part in the Energy Wisdom Programme which provides a reputable forum for implementation of best practices for energy companies across Europe.

PGE Polska Grupa Energetyczna S.A. www.pgesa.pl Contact Person: Miroslaw Niewiadomski Tel: +48447372564 miroslaw.niewiadomski@gkpge.pl

PGE Polska Grupa Energetyczna S.A. is the largest power producer and supplier in Poland and one of the biggest heat and power sector companies in Central and Eastern Europe. Due to a combination of its own fuel (lignite) resources, power generation and final distribution networks, PGE guarantees safe and stable power supply to approximately five million households, businesses and institutions. Sustainable development is one of the major principles of PGE Capital Group. PGE is a trustworthy company, whose operations are based on the highest corporate standards. In order to establish itself as the Polish market leader and join the European top companies, PGE is following a comprehensive development strategy. The main goals of PGE for the coming years include: Consolidation of PGE Capital Group, which will significantly improve the organisations operational efficiency and management through the establishment of six main companies responsible for individual operating segments, i.e.: conventional power generation (fuel mining and power generation), nuclear power generation, renewable power generation, wholesale, distribution and retail. Local and foreign expansion involving the development of new and modernisation of the existing power generation capabilities. PGE might also acquire other companies. Development of nuclear power generation in Poland. In January 2009, the Polish government placed an order with PGE for the construction of two nuclear power plants with a planned capacity of 3,000 MW each. The first unit is expected to be opened in 2020. After its stock market debut, PGE is undergoing a consolidation process. The companys vertical integration and presence in almost the entire value chain of the sector are the greatest competitive advantages of PGE. Polska Grupa Energetyczna focuses its business activities in the following areas: Conventional Power Generation, Wholesale, Distribution, Retail, and Renewable Power Generation. PGE is a trustworthy company, whose operations are based on the highest corporate standards.

PGE Capital Group key facts and figures for 2010


40%: PGE Groups share in the countrys power generation (the leading position in the market); 25%: PGE Groups share in electricity distribution in Poland; 12.2 GW: installed capacity of PGE-owned power plants and cogeneration plants (12th place in Europe among the sectors companies); Approx. 53 TWh of power generation; Approx. 23 million GJ of heat generation; 45 million tonnes: lignite production in PGEs mines.

52

Participating Companies

Dr. Kurt Mhlhuser CEO of SWM GmbH

Combating climate change is a huge challenge. Only if we protect our climate and use natural resource in a sustainable way can we protect our environment and keep it worth living. SWM is committed to its Renewable Energies Expansion Offensive. However we are also committed to delivering reliable energy at a competitive price to our customers. An energy policy which will consist of nearly 100% renewables must be a European energy policy. Only with these preconditions can we build our plants where the best locations are in economic and energetic terms. Currently, wind energy has the biggest potential among renewables. Wind-onshore is the most cost-efficient and will be cheaper than fossil fuels in the next decade. However this will not happen without further work and without taking new approaches. With our sustainable joint venture we have joined forces in a strategic partnership combining the knowledge of our local energy company and the knowledge of the leading planning and production engineers and windmill operators wpd.

Stadtwerke Mnchen GmbH (SWM) www.swm.de Contact Person: Beatrix Widmer Tel: +498923615068 E-mail: widmer.beatrix@swm.de

Stadtwerke Mnchen (SWM) is one of the largest energy and infrastructure companies in Germany. Over one million private households, SMEs and business clients benefit from the services provided by SWM on a daily basis. For decades, SWM has provided energy (electricity, natural gas, district heating) for the Bavarian capital in a safe and environmentally friendly way. Among other things, SWM development push for renewable energy and push for eco-friendly district heating are an example to other districts. Furthermore, SWM supplies the megacity with fresh drinking water from the Bavarian Voralpenland one of the best in Europe and with 18 indoor and outdoor swimming pools they operate one of the most modern bathing environments in Germany. The MVG transport subsidiary is responsible for the underground, bus and tram systems and therefore a significant pillar in Munichs public transport network. SWM employs around 7,500 staff and in the 2010 fiscal year turnover reached around 3.7 billion euros. Among the biggest challenges nowadays there are climate protection and dealing with natural resources on a sustainable basis. With the help of SWM, its communal company, Munich is running and placing itself in the lead with respect to protection of the climate and the environment. The target set is extremely ambitious: By 2025 SWM should produce so much green electricity in their own plants that they would be able to meet the consumption of the whole of Munich that is at least about 7.5 billion kilowatt hours per year. As a result Munich will be the first city worldwide with over a million inhabitants to reach this goal! To achieve this SWM have started the renewable energies development offensive. They have done this with tremendous success: SWM will have production capacities of around 2.4 billion kWh in green electricity from its own plants taking account of those projects under development (after completion) or already implemented. This is enough power for SWM to supply all 800,000 Munich households as well as meeting the demands of the underground and tram systems. Thanks to cooperation with wpd AG, the generation potential will increase to a total of 3.6 billion kWh by 2020 without taking other possible projects into consideration. This represents a ten-fold increase compared to the original SWM green electricity production capacity prior to the expansion campaign of 350 million kWh/year.

With its development offensive SWM is working on a wide spectrum of renewable energies such as the wind, water, sun, organic substances or the earths natural heat. In addition, they are investing exclusively in economic plans which are financially selfsupporting. By 2025 SWM is reckoning with a total investment volume of approximately 9 billion Euro. Projects in Munich and the region have a clear priority for SWM. But SWM cannot produce as much renewable electricity here as the city with a million inhabitants requires. They have therefore also committed themselves in Germany and Europe. The wind blows more powerfully and regularly at sea, in southern Europe the sun shines more intensely and more frequently than here. As part of the expansion campaign, the following plants have already been acquired or constructed, are under development or are being modernized: 17 in Munich and its region (12 hydropower plants, 1 share in a hydropower plant, 2 biomass power plants, 1 geothermal cogeneration power plant, 1 wind power plant) 6 in Germany (2 photovoltaic plants, 2 onshore wind parks and 2 offshore wind parks) 1 plant in both Spain (solar power plant) and the UK (offshore wind park) In addition to the plants listed, we also have a share in wpd europe, Europes leading project developer in the wind power industry. This enables SWM to sustainably and continuously construct new regenerative power plants with a greater degree of independence from market availability and price trends for wind parks. Looking at the CO2 reduction from SWM power plants the following examples illustrate the contribution and promising way to combat climate change. Small and big contributions sum up to an encouraging result:
Prater-water power plant
(Munich/Germany)

9,000 t/a 370,000 t/a 4,000,000 t/a 28,800 t/a 150,000 t/a 35,000 t/a ~3,000,000 t/a

Onshore-wind parks in Germany Offshore- wind parks in Europe Solar plants in Germany Parabolic troughs power plant in Andasol (Spain) Geothermal energy power plant in Sauerlach (Germany) wpd-Cooperation Wind Onshore (2020)

ENERGY WISDOM PROGRAMME 2012-2013 Edition

53

Wolfgang Anzengruber CEO of VERBUND AG

In terms of energy policy, the world is probably facing mankinds greatest challenge: a number of policies which until recently were considered as productive need to be left behind and new approaches need to be taken. Yet not only governments are required to review their policies. Corporate groups are called upon to develop new ideas focusing on how to reduce CO2 emissions and how to strengthen renewable energy sources. Although VERBUND is well-positioned thanks to its high share of hydropower, we too are determined to be even better prepared for the new challenges we now face in the energy industry. We are the leading electricity company in Austria and supply innovative energy solutions for responsible people. We generate more than four fifths of our electricity from renewable hydropower. We are therefore one of Europe's largest hydropower producers and we aim to further strengthen this position. To this we are committed, and we show this commitment in everything we do. The Energy Wisdom Programme is a major step towards a good common energy future at a European level.

VERBUND AG www.verbund.com Contact Person: Jan Cupal Tel.: +43 (0) 50313-53921 E-mail: jan.cupal@verbund.com

VERBUND Austrias leading electricity company


VERBUND is Austrias leading electricity company and one of the largest producers of electricity from hydropower in Europe. More than four fifths of our electricity are produced by hydropower, supplemented by thermal and wind power. Including its equity interests, VERBUND has more than 4 million electricity customers and trades in electricity in 20 countries. In Austria, VERBUND operates in the sectors of generation, transmission, trade and retail. In 2011, VERBUND achieved an annual turnover of 3.8 bn with around 3,000 employees. Besides the Austrian market, VERBUNDs core markets include Germany as well as France, Italy and Turkey. Austrias electricity consumption amounts to approximately 70,000 million kWh of electricity. Around 40% of this originates from the VERBUND group power plants. VERBUND places great value on sustainability in electricity generation: in Austria and Germany the company operates 123 hydropower plants as well as three thermal power plants and three wind farms. New hydropower projects are in different stages of planning and realisation in Austria. The CCGT power plant Mellach in Styria (800 MW) is under construction and will operate from 2012. VERBUNDs transmission activities take place via the independent transmission system operator Austrian Power Grid AG (APG). Austrian Power Grid AG operates Austrias most powerful highvoltage grid, with voltage levels of 380, 220 and 110 kV, and handles grid management, maintenance, planning and expansion. VERBUNDs electricity trade is the interface between generation, distribution and the wholesale market and plays a pivotal role for the company. Since July 2005, VERBUND has also been active in the area of direct electricity sales on the Austrian market and has more than 255,000 clients in Austria as well as a 25% market share in the business customer segment.

VERBUND AG latest key figures


Ratios
Sales revenue EBITDA Operating result (EBIT) Group result Gearing* Operating cashflow (Proposed) dividend per share

Unit
million million million million % million

2010
3,307.9 1,059.2 828.5 400.8
96.8

2011
3,865.4 1,041.1 1,001.6 352.6
81.9

Change
+16.9% -1.7% +20.9% -12.0%
n.a.

778.2 0.55

829.9 0.55

+6.6% 0.0%

*The key figure has been revised. Previous year figures have been adjusted.

Press Contact Ines Schurin VERBUND Corporate Communication Am Hof 6a, A-1010 Wien Tel.: +43 (0) 53113-53748 Fax: +43 (0) 53113-53848 Mobil: +43 (0) 664-828 59 83 E-Mail: ines.schurin@verbund.com

Internationally successful
Austrias leading electricity company is actively involved in generation and trade in more than 15 countries and is expanding its role as an international player in hydropower. Germany, France, Italy and Turkey count among the core markets.

54

Participating Companies

Robert Grneis and Susanna Zapreva General Managers of Wien Energie

followed a sustainable philosophy embodied in the so-called Vienna Model. As Austrian largest energy provider for electricity, natural gas and district heating as well as energy-based services, Wien Energie is eager to reduce harmful greenhouse gas emissions and improve energy efficiency on the whole value added chain. By using highly efficient combined heat and power plants parallel to investing in renewable energies in Austria and abroad, the company is actively greening its energy mix. Additionally, Wien Energie has long endeavored to inform its customers about an efficient use of energy at home. Since 1997 the Wien Energy advice centre (Wien Energie Haus) has provided free advice on how to save energy. We highly appreciate EURELECTRICs Energy Wisdom Programme as an opportunity to show our willingness and commitment to embarking on a journey towards a sustainable energy system. Wien Energie www.wienenergie.at Contact Person: Elisa Schenner Tel: +43 (0)1 4004-31602 E-mail: elisa.schenner@wienenergie.at

Wien Energie has always been committed to an efficient use of natural resources and

Our Power for you!


Wien Energie is Austrias largest energy service provider, safeguarding the uninterrupted supply of electricity, natural gas and heating to the city of Vienna and the surrounding area, i.e. to approximately 2 million people, 230,000 businesses and industries, as well as 4,500 farms. Its range of services extends well beyond merely supplying energy. Wien Energie is also involved in waste recycling, facility management, telecommunications, energy advice and energy services notably in the area of energy efficiency. Moreover, Wien Energie is active in a number of successful projects at a European level where the focus in on expanding the use of renewable energy sources. At present, it is active in several countries aside from Austria such as Macedonia, Monenegro, Bosnia-Herzegovina, Germany, Romania, Poland and Hungary.

City of Vienna. The close-knit network infrastructure, including Wien Energies advice and service points, lays the foundations for a high quality of service and an uninterrupted supply of electricity, heating and telecommunication services. These services are crucial to Viennas economic and social development. A high degree of operational readiness coupled with expertise and a human touch are the hallmarks of Wien Energie.

The Vienna Model traditionally sustainable

Wien Energie at a glance


In the business year 2010/2011 Wien Energie had a turnover of EUR 2,040.1 million. Its workforce of 2,738 is responsible for ensuring an uninterrupted supply of energy and for performing the associated services on offer. This makes Wien Energie one of the largest employers in the capital. It is also a company investing into the future generation with 74 apprentices and trainees (30/09/2011). For the business year 2010/11 electricity generation was 6,772.2 GWh and heat production 5,449.6 GWh what sums up to 12 221.7 GWh. Electricity sales amounted to 9,338.9 GWh, natural gas to 8,434.0 GWh and district heating to 5,706.0 GWh. Wien Energie GmbH is a wholly owned subsidiary of Wiener Stadtwerke Holding AG, and is therefore indirectly owned by the

The specific challenges in ensuring the supply of energy to the Greater Vienna metropolitan area require specific solutions. Jointly producing electricity and heat (cogeneration), energy from waste incineration, using renewable sources of energy as well as providing comprehensive energy advice this is what the Vienna Model is all about. In this way, Wien Energie is able to produce environmentally friendly electricity and heat using modern techniques at fair prices. The cogeneration technology used by Wien Energie in its thermal power plants increases the utilization ratio of the fuels used from around 50%, which is the case for electricity produced in conventional plants, to as much as 86%. Thanks to this resourceconserving technology, 68% of the entire district heating supplied today is generated using waste heat from the production of electricity. Aside from cogeneration technology, the Vienna Model also involves recycling waste to produce energy. Around 900,000 tones of waste are used to generate energy in the thermal waste treatment plants every year. Following the Vienna Model, green electricity was provided for 400 000 households in 2010/12.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

55

Project Features

ENERGY WISDOM PROGRAMME 2012-2013 Edition

57

4.1. Overview
The Energy Wisdom Programme is clearly a project-oriented initiative. In this sixth reporting cycle, the 16 participating companies reported 155 projects in total: 101 projects in Europe and 31 abroad, plus 23 future investments projects. These projects cover the whole value chain Electricity Generation, Electricity Transmission & Distribution, EndUse Energy Efficiency, Carbon Capture and Storage + Carbon Sequestration and Other Projects. Although projects reported may have started as far as 1990, only greenhouse gas emissions (GHG) reductions and energy savings delivered between 2010 and 2011 were considered in this edition. Participating companies were given possibility to choose one or more of the following reasons for implementation of their projects: investment made for commercial reasons; required by law; investments influenced by EU/national legislation; negotiated agreement with regulator or other public authorities without mandatory force; voluntary action by the company; joint implementation / clean development mechanism and other reasons. Figure 4 below shows the distribution of reasons for implementation of reported projects.

4.2. Project Methodology


The main concept of the programme is to compare the real levels of GHG emissions from a scenario With Project against a scenario Without Project, which represents what the emissions would have been if the project would not have been implemented. Companies decided on what should be the most reasonable baseline Without Project scenario for each project reported. Companies were asked to allocate their project to a category and sub-category from a List of Project Categories and were asked to report projects data in a standard reporting format, so as to facilitate its evaluation. Project eligibility, reported data and calculation procedures used by companies were then reviewed by EURELECTRICs Environment and Sustainable Development Policy Unit. Projects were reported using as a basis the 2008 EWP Guidelines for the Estimation of GHG Emissions, which provided standardised procedures on how to report and suggested a methodology to account for GHG emissions reductions and fuel/energy savings, the appropriate units of measure, conversion factors, global warming potentials, carbon emissions factors, chemical formulae and other standard data. Companies were also allowed to use their own data, provided the sources were clearly documented. The default methodology suggested by the 2008 EWP Guidelines follows the IPCC Guidelines the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. In those guidelines, the IPPC provides methodologies for estimating national inventories of anthropogenic emissions by sources and removals by sinks of greenhouse gases. Although the quality of data for estimating GHGs within the IPCC methodology is unquestionably variable, the 2006 IPCC Guidelines offer an internationally accepted methodology for estimating national GHG emissions. The 2008 EWP Guidelines, in the same way that the 2006 IPPC methodology does, provide the possibility for companies to report on emissions of these gases at various levels of detail, through a system of tiers. This system of tiers, although seemingly new to the EWP, simply formalises the previous approach, in which companies were encouraged to use their own detailed data when possible. In any case, detailed guidance on the appropriate use of tiers is provided in following sections for the facility of reporting companies.

Project Reasons
Joint Implementation/Clean development Mechanisms/ Activities implemented jointly 3% Other 3%

Investment made for commercial reasons 37% Voluntary action by the company 42%

Negociated agreement with regulator or other public authorities without mandatory force 10%

Investment influenced by EU/national legislation 2% Required by law 3%

Figure 4: Project reasons for projects reported in Europe and abroad for the period 2010-2011

58

Project Features

4.3. Project Eligibility


Projects were eligible to be reported if they met the following conditions: Projects had begun in or after 1990. Projects had produced quantifiable GHG emissions reductions and/or fuel/energy savings in the period 2010-2011. The baseline for each project had been defined on a case-bycase basis with reference conditions that were appropriate to the kind of projects and the context in which they were implemented. Projects had been reported in accordance with the List of Project Categories, Reporting Forms and Instructions provided. Companies could also have reported projects not included in the list (in which case a brief description of the project should be provided). Projects may have offered other sustainable benefits (e.g. environmental, economic, social, potential for technology transfer and others). Projects were reported under the following reasons: Investment made for commercial reasons. Required by law. Negotiated agreement with regulator or other public authorities without mandatory force. Voluntary action by the company. Influenced by EU/national legislation Joint implementation, clean development mechanism, activities implemented jointly. Others

Total Company Figures (2011)


Number of Companies Number of Employees Number of Customers Turnover Total Generation Capacity Total Electricity Generated Total Electricity Transmitted and Distributed Total Circuit length 16 companies from 11 European countries 249,081 108,370,312 133.25 bn Euros 258.57 GW 473.41 TWh 458.35 TWh 1,218,763 km

Table 1: Total company figures for 2011 These sixteen companies reported a total of 155 projects, of which 101 were implemented in Europe, 31 were implemented abroad and 23 refer to future investments. Out of the projects implemented in Europe, 61 of them were reported under the category Electricity Generation; 19 in End-use Energy Efficiency; 11 in Electricity Transmission and Distribution; 8 (9%) in CCS and Carbon Sequestration and 2 in Other Projects. Figure 5 below shows the distribution of reported projects in Europe:

Number of Projects per Category


Carbon Capture and Storage + Carbon Sequestration 8% Other Projects 2%

4.4. Project Results


16 companies from 11 European countries participated in the sixth reporting cycle of the EWP. In the year 2011, these companies totalled over 108 million customers and 249,081 employees, a turnover of 133.25 billion euros. They accounted for 258.57 GW of installed generated capacity and 473.41 TWh of generated electricity. They also owned almost 1.2 million km of transmission and distribution lines. Table 1 succinctly exposes those figures:
End-Use Energy Efficiency 19%

Electricity Generation 60% Electricity Transmission and Distribution 11%

Figure 5: Project categories reported in each category for the period 2010-2011 (Europe)

ENERGY WISDOM PROGRAMME 2012-2013 Edition

59

Within the category Electricity Generation, projects were reported mostly under the following sub-categories: 19 (30%) in Efficiency improvements. For the other sub-categories: 9 (15%) in Fuel Switching; 8 (13%) in New Generating Capacity: RES; 7 (12%) in New Generating Capacity: CHP; 7 (12%) in New Generating Capacity: Fossil Fuels; 5 (8%) in Others; 2 (3%) in Capacity Closure; 2 (3%) in New Generating Capacity: Nuclear and 2 (4%) in Availability Improvements. The complete distribution of projects reported under Electricity Generation is displayed in Figure 6:

Within End-use Energy Efficiency, 19 projects have been reported. It is worth mentioning this figure because it shows that electricity companies are convinced that a paradigm shift on demand-side is needed in order to move towards a carbonneutral Europe. Indeed, 7 projects (37%) were reported in Energy Saving Programmes; 5 (27%) both in Lighting appliances & Equipments and Others. For subcategories Electric Technologies and Fuel Switching, 1 (5%) project was reported in each of them. The shares of different sub-categories under End-use Energy Efficiency are displayed in Figure 8:

Type and Number of Electricity Generation Project


Other Electricity Generation Projects 8% Availibility Improvement 3% Generating Capacity Closure 3% New Generating Capacity: Fossil Fuel 12%

Type and Number of End-Use Energy Efficiency Projects


Other End-Use Energy Efficiency Projects 26% Energy Saving Programmes 37%

Efficiency Improvement 31% Fuel Switching 5%

New Generating Capacity: CHP 12% New Generating Capacity: Nuclear 3%

Electric Technologies 5% Lighting Appliances & Equipments 27% Fuel Switching 15%

New Generating Capacity: Renewables 13%

Figure 8: Type and share of projects reported in End-use Energy Efficiency for the period 2010-2011 (Europe) Within CCS & Carbon Sequestration, 8 projects have been reported showing the progressive but important investment electricity companies are making to develop CCS technologies. These category covers covered multiple activities: afforestation, forest management & conservation, CCS among others. 4 (projects have been reported in Reforestation (50%), 1 in CO2 Capture and Storage (12%); 1 in Forest Management (12%), 1 in Forest Conservation (13%) and 1 in Other CCS Projects(13%).

Figure 6: Type and share of projects reported in Electricity Generation for the period 2010-2011 (Europe) Within Electricity Transmission and Distribution, 4 projects were reported in the sub-category Other Transmission and Distribution Projects (37%), 2 in High-Efficiency Transformer (18%), 2 in Reconductoring (18%), 2 in Upgrade Transmission and/or Distribution Line Voltage (18%), and 1 in Construction of New Transmission and/or Distribution Lines (9%). The distribution of projects reported under Electricity Transmission & Distribution is displayed in Figure 7:

Type and Number of CCS Carbon Sequestration Projects


Other CCS Projects 13% CO2 Capture and Storage 12%

Type and Number of Electricity and Transmission Project


Construction of New Transmission and/or Distribution Lines 9%

Forest Conservation 13%

Other Transmission and Distribution Projects 37%

High-Efficiency Transformers 18%

Forest Management 12% Reforestation 50%

Reconductoring 18% Upgrade Transmission and/or Distribution Line Voltage 18%

Figure 9: Type and share of projects reported in CCS & Carbon Sequestration for the period 2010-2011 (Europe). In the period from 2010 to 2011, participating companies reduced or avoided exactly 98.57 MtCO2 eq as a result of implementing projects that delivered GHG emission reductions or that displaced higher-GHG-emitting energy generation sources.

Figure 7: Type and share of projects reported in Electricity Transmission & Distribution for the period 2010-2011 (Europe)

60

Project Features

Figure 10 exhibits the real GHG emissions (with project) as opposed to what they would have been had the projects not been implemented (without project):

GHG Emissions With Project and Without Project


Mt CO2 eq 250 200 150 100 50 0 2010 2011 2010/2011

Most of the 8 projects reported under the category New Generating Capacity: RES refer to wind and hydro projects. The other project covers biomass and solar projects. A complete picture of the type of RES projects reported is given below (Figure 12):

Type of Renewable Projects


Solar 11%

Hydro 33% Wind 45%

Biomass 11%

With project

Without project

Figure 12: Type and share of RES projects (Europe, 2010-2011) From the 19 projects reported on Efficiency Improvements, the majority of them were implemented in thermal, lignite-fired and coal power plants. Other projects were implemented in hydro and nuclear power plants. See Figure 13 for more details:

Figure 10: GHG emissions without project and with project (Europe, 2010-2011) Companies overwhelmingly reported as major drivers for project implementation Investments made for commercial reasons and Voluntary action by the company. Figure 4 on page 58 gives a more detailed insight into the reasons for project implementation. Between 2010 and 2011, the projects that reduced or avoided most GHG emissions were the following: New Generating Capacity Fossil Fuel (42% of total GHG emissions reductions); New Generating Capacity RES (26%). Figure 11 exhibits the distribution of GHG emissions reductions per project type:

Type of Efficiency Improvements Projects


Coal 13% Gas 31% Hydro 9%

Reduction in GHG Emissions per Project Type


Upgrade Transmission and/or Distribution Line Voltage 6% Construction of New Transmission and/or Distribution Lines 7% Other Electricity Generation Projects 5% Efficiency Improvement 6% Fuel Switching 2% Thermal 30% Lignite 13% Nuclear 4%

New Generating Capacity: Renewables 26%

Figure 13: Type and share of Efficiency Improvements projects (Europe, 2010-2011)

New Generating Capacity: Fossil Fuel 42%

New Generating Capacity: Nuclear 3% New Generating Capacity: CHP 3%

Figure 11: GHG emissions reductions per project type (Europe, 2010-2011) The great reductions from New Generating Capacity: Fossil Fuels occurred despite the relatively low number of projects reported in this category, namely 7 out of 155 (roughly 5%). These projects, all of which represent combined-cycle gas turbine power plants, have proven a great capacity to reduce GHG emissions when compared with other fossil-fuel-fired power plants.

ENERGY WISDOM PROGRAMME 2012-2013 Edition

61

The projects on Fuel Switching proved a wide range of possibilities. Most of them had in common, however, that they entailed a switch to renewable sources of energy (Biomass, Biofuels) Figure 14 below shows the types of fuel switch that companies implemented:

The projects that saved most primary were reported under the following project types: New Generation Capacity Fossil Fuel (45%) and New Generating Capacity: RES (31%). Figure 16 exhibits the distribution of primary energy savings per project type:

Energy Savings per project Type


End-Use Energy 5% New Generating Capacity: Nuclear 6% New Generating Capacity: CHP 9% New Generating Capacity: Renewables 31%

Type of Fuel Switching Projects


Coal + Peat + Oil + Paper + Wood + REF * 11% Biomass + Recycled Solid Fuel 11% Natural Gas 45%

Bio Oils 11%

Biofuel 11% Peat + Biomass 11%

Efficiency Improvement 4%

New Generating Capacity: Fossil Fuel 45%

Figure 16: Primary energy savings per project type (Europe, 2010-2011)

Figure 14: Type and share of Fuel Switching projects (Europe, 2010-2011) The projects on New Generation Capacity: CHP also exhibited a wide range of fuels. Figure 15 below shows the types of fuel that companies used in their CHP projects:

4.5 Projects Abroad


Three out of the sixteen participating companies reported 31 projects outside Europe. A lot of these projects fell under the category New Generating Capacity: Renewable Energy Sources. Other numerous projects were reported in Oil and Natural Gas Systems, Other CCS projects. Figure 17 exhibits in details the type and percentage of Projects Abroad:

Type of CHP Projects


Natural Gas, Gasoil, Oil, Bark, REF 14%

Projects Abroad by Category


Alternative Fuel Vehicles 3% Oil & Natural Gas Systems 13% Other CCS Projects 3% Upgrade Transmission and/or Distribution Line Voltage 7% Other Transmission & Distribution Projects 7%

Peat, Oil, Wood 14%

Natural Gas 43%

Municipal/Industrial Wastes 14% Peat, Soda, Process team, Wood, Sludge 15%

Reforestation 6% Fuel Switching 3% Efficiency Improvement 3% Other Electricity Generation Projects 3% Forest Conservation 6% New Generating Capacity: Fossil Fuel 10% New Generating Capacity: Renewables 36%

Figure 15: Type and share of New Generating Capacity: CHP projects (Europe, 2010-2011)

Figure 17: Type and share of projects implemented outside Europe (2010-2012)

* REF: Recycled Solid Fuels

62

Project Features

4.6 Project Benefits


Although the focus of the report was on quantifying companies energy efficiency improvements and GHG emissions reductions, companies also reported other co-benefits that emerged from project implementation. These were: Environmental benefits: Improvement of air quality: lower SO2, NOX , dust emissions and Particulate Matter (PM). Lower use of resources: not only fossil fuels, but also water, paper and other raw materials. Increased use of biofuels and RES Reduction of waste and residues generation. Economic benefits: Reduction of costs as a consequence of lower fuel consumption. Reduction of operation and maintenance costs. Lower energy bill for customers as a consequence of reduced electricity consumption. Direct and indirect economic benefits to local/rural areas. Social benefits: Local job creation and local development. Improved quality of supply (energy autonomy) in rural areas. Investments by electricity in projects for local communities. Greener image of the company. Potential for technology transfer: Possibility of applying technology, techniques, know-how and business experience in similar projects in a specific country and abroad.

Economic barriers: Although some sustainable energy projects are still less economical than traditional energy, only a small percentage of end-users is prepared to pay a premium for cleaner energy. Carbon capture projects are in a developing stage. Investments in CCS still rely on subsidies. The low import electricity prices from border countries cause delay in project implementation. Social barriers: Lack of public (as well as some NGOs) awareness and acceptance of hydro power plants and wind farms. Social acceptability problems of carbon storage might hamper the large scale deployment of CCS Citizens and local authorities speak of landscape pollution and regularly resist the arrival of a wind farm in their area. (Not In My BackYard syndrome).

4.8 Future Investments


Seven companies reported also on their future investments. The 23 projects were reported mostly on Electricity Generation; in particular, 12 projects fell under the category New Generating Capacity: Renewable Energy Sources" (52%). Other projects were reported in New Generating Capacity: Fossil Fuels, New Generating Capacity: CHP, Efficiency Improvements. Figure 18 shows the type of future investments reported by companies:

Category and Number of Projects (Future Investments)


Energy Saving Programmes 4% Fuel Switching 9% Other Transmission & Distribution Projects 4% Construction of New Transmission and/or Distribution Lines 4% Efficiency Improvement 5% New Generating Capacity: Fossil Fuel 9% New Generating Capacity: Renewables 52%

4.7 Project barriers


Participating companies found obstacles that delayed or cancelled the development of projects that reduce GHG emissions or fuel consumption. These obstacles were: Legal and institutional barriers: Lack of an stable and/or appropriate regulatory framework. The case of CCS is notorious and was pointed out by several EWP participants. Lack of appropriate market signals through the Emissions Trading System (ETS). A low carbon price does not encourage low-carbon solutions. Barriers to trading of green certificates across borders, or even domestically. Biomass is viewed, in some cases, as waste and as a result more stringent emission restrictions are imposed. Lengthy procedures for obtaining permits for traditional power plants, wind parks and biomass - Environmental Impact Studies are usually too extensive and time-consuming. Opposition from municipalities in issuing licenses for renewable projects.

New Generating Capacity: CHP 13%

Figure 18: Type and share of future investments (2010-2011)

ENERGY WISDOM PROGRAMME 2012-2013 Edition

63

Notes

64

Notes

The Union of the Electricity Industry EURELECTRIC is the sector association representing the common interests of the electricity industry at pan-European level, plus its affiliates and associates on several other continents. In line with its mission, EURELECTRIC seeks to contribute to the competitiveness of the electricity industry, to provide effective representation for the industry in public affairs, and to promote the role of electricity both in the advancement of society and in helping provide solutions to the challenges of sustainable development. EURELECTRICs formal opinions, policy positions and reports are formulated in Working Groups, composed of experts from the electricity industry, supervised by five Committees. This structure of expertise ensures that EURELECTRICs published documents are based on high-quality input with up-to-date information. For further information on EURELECTRIC activities, visit our website, which provides general information on the association and on policy issues relevant to the electricity industry; latest news of our activities; EURELECTRIC positions and statements; a publications catalogue listing EURELECTRIC reports; and information on our events and conferences.

EURELECTRIC pursues in all its activities the application of the following sustainable development values: Economic Development Growth, added-value, efficiency Environmental Leadership Commitment, innovation, pro-activeness Social Responsibility Transparency, ethics, accountability

May 2012

Union of the Electricity Industry - EURELECTRIC


Boulevard de l'impratrice, 66 bote 2 1000 Brussels Belgium
66
Innovative Projects

tel: +32 (0)2 515 10 00 fax: +32 (0)2 515 10 10 website: www.eurelectric.org

photos: Istockphoto (pages 8-9,12-13,38-39,56-57). All other photos are provided by EURELECTRIC or the members - design : www.generis.be

You might also like