Communicating Our Strategy A Challenging Task

October 29th, 2008 ................................................................................................. Communicating Our Strategy A Ch...
Author: Isaac Lester
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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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