The Environment: Climate Change

Climate change is increasingly being recognised as one of the most significant challenges facing the planet in the 21^st century. Climate change is caused by an increased concentration of greenhouse gases in the Earth’s atmosphere. The most significant of these gases is carbon dioxide (CO₂), which is emitted through the combustion of fossil fuels.

In the UK, around 28% of CO₂ is emitted from power stations generating the electricity that powers homes, businesses and services across the country, with road transport accounting for another 21%.

The amount of CO₂ that EDF Energy produces is dominated by emissions associated with electricity generation. We have three large power stations, two coal-fired and one gas-fired, which emit different levels of CO₂ per unit of electricity generated. The total CO₂ we produce in a year is therefore dependent upon:

• how much electricity we generate
• the generation mix.

In 2004, we produced 25.7TWh of electricity, resulting in the emission of 791kilotonnes of CO₂ per TWh of electricity produced. Higher gas prices in 2004 increased our reliance upon coal and thus increased CO₂ emissions. The table shows our generation mix and CO₂ emissions resulting from generation.

The introduction of FGD plant at our coal-fired power stations will remove more than 90% of the sulphur dioxide emissions from the flue gases. This process does, however, result in an increase in CO₂ emissions by between 1.5 and 2%. Roughly half of this increase is due to the increased power consumption in operating the auxiliary plant associated with the FGD process, and the remainder comes from the chemical reaction that captures the sulphur dioxide emissions releasing CO₂ from the limestone used in the process. The table below shows our 2008 generation CO₂ emissions targets for our power stations.

We have one other significant greenhouse gas emission from our operations: SF₆, which is a gas used as an insulant in switchgear. 1kg of SF₆ is equivalent to 23,900kg of CO₂, so we only need to lose a small amount for a big impact on climate change. When purchasing new equipment, we now specify higher levels of resistance to gas leakage. We have also secured a contractor who will de-gas old equipment, the gas then being cleaned and re-used.

There are a number of clear approaches to reducing carbon emissions, the most widely supported being energy efficiency and the development of renewable generating capacity. Our approach to renewables is described in the next section, while our energy efficiency programme is described in the context of serving our customers.

During 2005, we will develop a Carbon Policy that will provide a comprehensive assessment of the issue and will outline how we aim to tackle it.

We have also developed targets to reduce our emissions fromour own energy use and from transport use.