Nuon and a Sustainable Energy Supply
Security of supply and the environment seem to be conflicting priorities. To us, CO2 reduction is an imperative need and a key determinant of our strategy that aims to promote energy transition towards renewable sources and methods.
The drive towards energy sustainability is inextricably linked with the other objectives in our corporate strategy: safeguarding a reliable and affordable energy supply to our customers. The responsibility for the development of our corporate strategy rests with the Management Board, who is advised and supported in this respect by Corporate Development & Strategy. Every year the divisions make business plans outlining the strategy for their specific sub-markets. These plans are then translated into performance indicators which are linked to targets in consultation with the Management Board.
Regarding the theme of sustainability, each division has its own key responsibilities. Nuon Business and Nuon Retail, for instance, focus mainly on energy efficiency at customers, while Energy Sourcing pursues investments in renewable generation and the development of ‘clean fossil’. The direction of our policy on sustainability is entirely clear, as is also evident from the ambition table in chapter 1. However, Nuon has yet to put in place a coherent and concrete sustainability strategy at corporate level. For this reason, the divisions formulate their sustainability objectives in annual business plans, naturally in consultation with the Management Board.
Traditional fuels such as oil, coal and gas are becoming more expensive due to scarcity and accelerating demand. At the same time, the dependence on a small number of countries where these fuels are produced is growing. This is leading to global tensions and uncertainties over long-term energy access. The Netherlands must use less fossil fuels and switch over to new sources in order to continue guaranteeing the reliability of its energy supply. Nuon’s transition policy crystallised in 2007 and we played an active role in determining the energy mix of the future on all fronts. We have deliberately opted not to rely on a single or limited selection of sources, but to go for the broadest possible diversity. This means that no sources are ruled out in advance, while new sources are explored to see whether they can play a role in our portfolio of products and services of today, tomorrow or 10 years hence.
We devote little or no time to technologies which, in our opinion, make no real contribution to energy transition or merely lead from one problem to the next. One example of this is biomass, which some energy providers and the government have embraced as a potential climate saver. Meanwhile, however, the adverse effects of large-scale biomass usage, notably on the food chain, have become all too clear. At Nuon large-scale biomass co-burning exclusively takes place at the coal gasification installation in Buggenum. Our biomass purchasing policy focuses on sustainable residual waste. The power station in Lelystad, for instance, relies entirely on clean wood cuttings. We are currently having a discussion with industry, research institutions and the government to guarantee the sustainability of biomass both today and tomorrow. In this way we are seeking to fulfil the sustainability criteria defined by a committee under the direction of the current Minister of Housing, Spatial Planning and the Environment Minister, Jacqueline Cramer.
We are proud of our knowledge leadership in CO2 capture, solar foil, coal gasification and offshore wind. Innovation – both on our own and in partnership – is playing an increasingly prominent role within our strategy for energy transition towards renewable energy sources and sustainable generation methods. This varies from an experimental installation for CO2 capture and the funding of PhD candidates to the signing of an Energy Agreement with our industry peers and the government. These are examples from a range of activities that are being pursued at all levels within the organisation. An impression of these activities is included in this report in the Innovation section.
