Building a sustainable future

In march of last year, ESB made a groundbreaking commitment to a sustainable future with the announcement of the strategic framework and the accompanying targets to reduce carbon emissions by 30% by 2012, 50% by 2020 and to be net-carbon-neutral by 2035. Tony Carroll examines what ESB is doing to achieve its vision. (This article is based on his presentation to an international conference on Enterprise Asset Management in Barcelona in March this year.)

The challenge for the Electricity Industry
The traditional model for the electricity industry is that of large centralised power stations (predominantly fossil fuel); electricity moved over long distances by high-powered grids; and delivered to customers who are mainly passive in their interaction with the electrical system.
The problems introduced by climate change and the consequent need for massive reductions in carbon emissions, together with concerns over future fuel supplies, have fundamentally challenged this model. The future, sustainable model is more likely to be based on a combination of central and distributed power production, smart networks and customers who interact pro-actively with the system and are an integral part of both the supply and demand side of the equation. ESB is moving early to meet this challenge in all its aspects, including a major programme to engage the staff of the company in support of the strategy.

Sustainable Generation
ESB Generation, at its inception, was a model of sustainability, being based on Hydro Power. The demands of economic development soon led to the familiar dominance of fossil fuel thermal stations (peat, oil and coal). Currently ESB Generation is in transition: we are divesting much of our older inefficient thermal plant and replacing it with high-efficiency, combined cycle gas turbine and making rapid progress in building our renewables portfolio based on wind. The future sustainable generation platform will be based on greatly expanded wind (> 30%) combined with clean coal and carbon capture and storage (CCS).

Sustainable Networks
The national target for Wind Power for 2020 is in excess of 6,000 MW. To accommodate this we need considerable investment in our infrastructure both at distribution and transmission levels. ESB Networks has committed to this and has planned a major capital programme. We have also made great strides in making our networks smarter through initiatives such as SCADA, predictive fault location and intelligent re-closers. Smart Metering is central to smart networks. We will install over 10,000 meters this year as part of our smart metering trial. This trial will determine the best technology option for ESB and includes the installation of in-home displays as part of a customer behaviour study. The target is to roll out smart meters to all domestic customers by 2014.

Empowering Customer Sustainability
ESB, through our Customer Supply wing, has a long history of quality advice and communications on all matters relating to energy efficiency. This places us in a very strong position to continue to influence customers towards a more sustainable lifestyle. The work we are doing on smart metering, electric vehicles, microgeneration and the forthcoming Home Energy Improvement Programme, facilitate customers in playing an active role in meeting electricity requirements and managing demand.

Engaging and empowering our Staff
The final element of ESB's sustainability drive is through the engagement of our staff in support of the strategic framework. This is being done through a focussed change programme, led by Executive Director for Sustainability, John Campion. The aim is that ESB will be exemplary in the area of sustainability. To drive that commitment we have adopted a target of a 30% reduction in the internal carbon footprint of ESB by 2012. This is in addition to the target ESB has set for reduction in power station emissions. The programme has 12 projects including building efficiency, sustainable procurement, electric vehicles, workplace travel planning etc. Change and Communications are vital parts of the engagement and many people will have visited the sustainability road show during Sustainability Week. Active work continues on advancing sustainability throughout the company through business unit managers, our 150 Sustainability Champions and the local partnership process.

Sustainability – the Heart of our Strategy
ESB has boldly and publically proclaimed its future strategy and direction. We have stepped up to the challenge of climate change and adopted the most challenging of targets for carbon reduction. We have committed the resources and expertise to support Ireland's 'smart economy' drive. We are supporting our customers to embrace sustainability and to become active players in the energy economy. We are ensuring the strength and viability of the company through an international growth strategy. We have engaged with each other to develop sustainability as a core value of ESB and thereby build a sustainable future for the company.