Energy-efficient and renewable energy-based products (EN5–7)

Energy efficiency and increased generation from renewable energy sources are fundamental components of Vattenfall’s environmental strategy. Declaration of origin for electricity sales is being implemented across the Group.

Initiatives to improve efficiency

Initiatives and activities to increase efficiency are performed across Vattenfall’s operations, and efficiency measures in power plants target both direct and indirect energy use. Continuous improvement work is long-term, and data on energy savings is not currently gathered at the Group level, since measurements are very complex. Each unit strives to increase energy efficiency, since this has a direct impact on financial and environmental performance, which is measured. Examples of specific energy efficiency projects in the Group:

• Upgrading programmes, capacity increases and improved environmental performance of hydro power plants and nuclear power plants in the Nordic countries are ongoing.
• The new coal-fired power plant in Moorburg-Hamburg, Germany (see Coal-based power – new and improved) will increase the energy efficiency ratio of the German portfolio thanks to the combination of heat and power generation
• In Germany, continuous improvements are being made in generation efficiency. Examples of measures in 2008 include the start of a test plant for pre-drying lignite, efficiency improvements at several pumped storage plants, and improvements of heat exchangers at the Boxberg power plant.
• In Warsaw, Poland, generation has been concentrated to the biggest and most efficient plants, CHP Siekierki and CHP Żerań. This is a result of co-operation with the local heat distributor, which is owned by the local government. The central generation dispatch centre plays a key role in optimising the generation process as well as enabling the selection of the most efficient generation devices. The solution is based on the Scandinavian model of heat market management. As a result, two peak-load plants (HP Wola and HP Kawęczyn) remain inactive even in wintertime, which means that the combustion of 80,000 tonnes of heavy oil has been replaced by high-efficiency cogeneration combustion instead.
• The second step of Polish emission reduction involves a large-scale project to exchange and modernise power generation, which is currently being planned. The new units will have the highest technical generation efficiency and will be CCS-ready.
• In January 2009, the heat accumulator at CHP Siekierki was commissioned. It is the first large-scale Polish implementation of this solution, which is taken from Scandinavia. It enables the accumulation of heat during the day for distribution during the evening and night. This leads to improved efficiency from co-generation while at the same time meeting daytime demand for electricity. Also, there is less need to start-up peak water boilers at nighttime, when heat demand increases. It is estimated that the use of peak load units will be reduced by nearly 30%.
• In Poland, where improvement potential remains high, investments are being made in the electricity distribution grid to reduce distribution losses, thereby improving energy efficiency and reliability.
• A number of research and development efforts are targeted at energy efficiency, see EU7.

Vattenfall’s energy consumption related to other operations than energy generation is minute compared to the generation operations. Work targeting this consumption includes:

• Monitoring business travel and improved travel policies. In 2008, the decision was made to offset CO2 emissions from all business travel in the Group. This is co-ordinated centrally at the Group level based on reported travel data and will be implemented in 2009.
• Improved energy efficiency in administrative office facilities.
• In 2008 a Green IT initiative was established at the Group level to ensure that IT use is efficient and contributes to reduced CO₂ emissions, for example through improved energy efficiency and increased videoconferencing capacity.

Promoting renewable electricity and heat production

Renewable energy is sold directly to consumers in all of Vattenfall’s main markets.

• In Sweden, customers can choose to purchase electricity with Environmental Product Declaration (EPD) from wind power and hydro power. Electricity from nuclear power with EPD is also available.
• In Germany, electricity with declaration of origin is offered to industrial and private customers.
• In Poland, electricity with environmental declaration is offered to industrial and private customers.

Vattenfall has significant investment programmes to increase renewable energy generation across the Group. See Economic performance management approach, page 73. For additional information on the future generation portfolio, see The challenges of investing in new energy.

Promoting customer energy savings

Vattenfall actively supports industrial and retail customers in energy efficiency improvements. (See also Product responsibility management approach and PR5.) Examples across the Group are:

• Customers can get advise on energy savings at customer centres in all countries.
• An energy efficiency programme launched in 2007 by Vattenfall BG Nordic continued providing customers advice in 2008 on how to improve their energy efficiency. The programme also included participation by Vattenfall experts on nationwide TV.
• An energy advisory service is provided to industrial customers in Poland in co-operation with Silesia technical university.
• The continued launch of Cobra, an innovative street lighting product developed by Vattenfall in Sweden.
• Vattenfall engineering consultants offer energy advisory services to industrial customers, including consultation, data acquisition, analysis and solution design.
• 1,000 households in Hamburg, Germany have been given the opportunity to apply for “energy checks”, which entitle them to a visit by Vattenfall experts to give advice on how to save energy.
• Vattenfall offers energy advisory services at the new Vattenfall customer centres in Berlin and Hamburg, Germany. Vouchers where distributed from October until December in the city centres and via newspapers. Every visitor also received a low-energy light bulb.

Vattenfall also supports research and development on future use of electricity to improve energy efficiency in society. Examples are:

• Development of plug-in hybrids in co-operation with Volvo
• Vattenfall Germany is taking part in a project to test and develop hydrogen busses.
• Testing of MINI E electric cars together with the BMW Group in Berlin. The first ever test drives on the streets of Germany’s capital Berlin are now a reality. The cars are being charged up at Vattenfall’s first charging station in Berlin-Treptow.