Communicating Our Strategy A Challenging Task · Sustainability Reporting 29 Oct 2008 FINAL.ppt..... 1

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Communicating Our Strategy

October 29th, 2008

A Challenging Task

Sustainability Reporting 29 Oct 2008 FINAL.ppt

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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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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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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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1.8

5.0

14.0

5.0

7.0

12.0

12.0

0.2

2007 2010 2012 2020

Eneco's Energy Company is increasing its power generation capacity …

Development of power generation(TWh per year)

Development of power generation(TWh per year)

Gas fired generation

Sustainable generation 1

1. Approximately 30% through PPAs

Minimal amount of

sustainable generation

based on EU policies

2008 electricity supply

of 22,5 TWh


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Sustainability propositions

Sustainability propositions

Energy efficient services for

customers

ExamplesExamples

Accelerating the development of sustainability propositions in every part of the energy value chain

Large-scale Sustainable Production

Distribution

Supply

Local Sustainable Production

Energy saving

Trading

Biofuels, wind,solar, etc.

Micro CHP, micro wind, heat-

cold, PV installations

Green electricity and gas

Installation and management

of CO2 capture, distribution

and storage

Trading services to

developers of renewable

energy

Sustainable electricity

generation (wind, biomass,

solar)

Enabling energy savings for buildings (combinations of high efficiency boilers,

micro CHP, insulation, district heating)

Installing smart meters to increase energy consciousness of customers

Developing EcoEnergy (collective sustainable heat 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

Using green image to attract and retain customers

Providing long term contracts for local generation (for instance solar boilers)

Building and management of CO2 transportation networks in Rotterdam

Preparing electricity network for local generation

Facilitating PPAs for small scale developers without trading capacity

Developing and operating wind farms (on shore and off shore)

Building and operating biomass plants for generation of electricity and heat

Pursuing backward integration in the biomass value chain

Purchasing renewable energy (PPAs)


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New customers and players in value chain…

End-user

Local energyProduction/-service

Energy supply

Distribution

Trading

Clean fossil and sustainable energy

production

Bio-fuels

New customers and suppliers in the project development of sustainability and CO2 trade..

New customers and suppliers to develop new housing estates and utility buildings with building and real estate firms

New customers and suppliers in upstream biomass value chain

New customers and suppliers in field of energy innovation with research institutes (e.g. KEMA, ECN, TNO) and universities


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Reporting Dilemma’s stemming from abstract nature of energy and (un)clarity of reporting metrics

• 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?

Sender Receivers


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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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Two examples

Project NieuwlandProject Nieuwland

• Approx 12,000 m2 on 500 houses• 50% of houses don’t “own roof”• 20% of the energy production is

for house owner

Project WindvogelProject 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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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, …

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, ...

….would this be a credible and sustainable way forward?


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How to build a credible reporting to end customers (and other stakeholders)?

EnergyCo's (in general) still struggle with reputation from the past?

Are EnergyCo's the natural partner for credible energy reporting?

Do EnergyCo's need certification agencies and reporting standards?

CO2 bookkeeping per household/company reporting — make it tangible?

1

2

3

4


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Sustainability, we have no choice

Insurance - Banking - Asset Management 13

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

Documents

Communicating Our Strategy A Challenging Task · Sustainability Reporting 29 Oct 2008 FINAL.ppt..... 1