October 29th, 2008
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Communicating Our Strategy A Challenging Task
Sustainability reporting to end customers and other stakeholders is a challenge for EnergyCo’s .........................................................................................................
1. Credible reporting starts with a credible strategy
2. Dilemma’s stemming from abstract nature of energy and (un)clarity of reporting metrics
3. Eneco’s way forward given these challenges
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Vision Eneco
......................................................................................................... Eneco wish to play a leading role in the transition towards a sustainable supply of energy in the Netherlands. By speeding up the development of activities over the entire sustainable energy value chain —from source to end-user— we will increase the structural value for our shareholders at lower social costs than in our current, more traditional business model. ……
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
How do we differentiate from others?
......................................................................................................... • Target is to have 70% of our power supply based on sustainable production (which is significantly higher than EC target of 20%)
• Sustainability throughout the energy value chain
• Active investments in decentralised energy solutions in close cooperation with end customers
• A very large investment program in sustainable energy solutions
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Eneco's Energy Company is increasing its power generation capacity …
......................................................................................................... Development of power generation (TWh per year) Gas fired generation Sustainable generation
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2008 electricity supply
12.0
of 22,5 TWh
12.0 Minimal amount of
14.0
sustainable generation
7.0
based on EU policies
5.0
5.0 0.2
2007
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1.8 2010
2012
2020
........................................................................... 1. Approximately 30% through PPAs
Sustainability Reporting 29 Oct 2008 FINAL.ppt
Accelerating the development of sustainability propositions in every part of the energy value chain
......................................................................................................... Sustainability propositions
Examples Enabling energy savings for buildings (combinations of high efficiency boilers,
Energy saving
Energy efficient services for
micro CHP, insulation, district heating)
customers
Installing smart meters to increase energy consciousness of customers Developing EcoEnergy (collective sustainable heat installations)
Local Sustainable Production
Micro CHP, micro wind, heatcold, PV installations
Introducing micro CHP, including EnaTec (patents for Europe and Asia) Developing bio CHP energy island and PV installations on customer’s location Developing geothermal solutions for local heat network
Supply
Using green image to attract and retain customers Green electricity and gas Providing long term contracts for local generation (for instance solar boilers) Installation and management
Distribution
of CO2 capture, distribution and storage
Building and management of CO2 transportation networks in Rotterdam Preparing electricity network for local generation
Trading services to Trading
developers of renewable
Facilitating PPAs for small scale developers without trading capacity
energy Large-scale Sustainable Production Biofuels, wind, solar, etc.
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Developing and operating wind farms (on shore and off shore) Sustainable electricity
Building and operating biomass plants for generation of electricity and heat
generation (wind, biomass,
Pursuing backward integration in the biomass value chain
solar)
Purchasing renewable energy (PPAs)
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
New customers and players in value chain…
......................................................................................................... New customers and suppliers in field of energy innovation with research institutes (e.g. KEMA, ECN, TNO) and universities
End-user
Local energy Production/-service
New customers and suppliers to develop new housing estates and utility buildings with building and real estate firms
Energy supply
Distribution
New customers and suppliers in upstream biomass value chain
Trading
Clean fossil and sustainable energy production
........................................................................... Bio-fuels
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New customers and suppliers in the project development of sustainability and CO2 trade..
Sustainability Reporting 29 Oct 2008 FINAL.ppt
Reporting Dilemma’s stemming from abstract nature of energy and (un)clarity of reporting metrics
......................................................................................................... Sender
• Should we measure sustainability at end-of-pipe or over entire life cycle? • Changing interpretations and new insights on laws on renewables (e.g. are we allowed to import Certificates of origins? • How green is small or large scale biomass? • Is it only climate metrics or sustainability in a broader sense? • Or is GRI reporting solve all our issues?
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Receivers
Eneco's way forward given these challenges
......................................................................................................... Some examples of execution and reporting • Talk the way we walk (execution and reporting) • Closer to our customers. 'Stroometiket' is a far to abstract to make it a credible instrument. • CO2/energy equivalent for EnergyCo's could be a proper metrics although a lot of definitions have to be solved • Average energy usage per customer and average CO2/energy equivalent from a Client perspective could be starting point
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Two examples
......................................................................................................... Project Nieuwland
• Approx 12,000 m2 on 500 houses • 50% of houses don’t “own roof” • 20% of the energy production is for house owner
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Project Windvogel
• Wind cooperative De Windvogel and energy company Eneco start a joint pilot project • Project allows citizens who are the co-owners of a wind turbine, to use the sustainably generated energy themselves
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Some strategic dilemmas to share
......................................................................................................... If EnergyCo would buy CO2 certificates for a low price to make its entire customer portfolio greener, ... If EnergyCo would stop importing nuclear energy it means no GHGs and relative low price but not sustainable, …
….would this be a credible and sustainable way forward?
If EnergyCo would use gas fired plants to improve flexibility for wind parks, … If EnergyCo would replace inefficient coals plants with new more efficient ones, ...
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
How to build a credible reporting to end customers (and other stakeholders)?
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EnergyCo's (in general) still struggle with reputation from the past?
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Are EnergyCo's the natural partner for credible energy reporting?
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Do EnergyCo's need certification agencies and reporting standards?
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CO2 bookkeeping per household/company reporting — make it tangible?
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
......................................................................................................... Sustainability, we have no choice
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Sustainability Reporting 29 Oct 2008 FINAL.ppt
Panel discussion: Green Wash versus Clean Green
Elsemieke Havenga
CHAIR
Guiseppe van der Helm
VBDO, Director
Gijsbert Siertsema
Heineken, Senior Communications Officer
Johan Verburg
Oxfam Novib, policy advisor
Rob van Rees
Greenchoice, CEO
Insurance - Banking - Asset Management
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