Activities and sustainable development report - 2011 Electrabel, GDF SUEZ group

2011
Activities and
Sustainable
Development
Report

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SUMMARY

2011 OVERVIEW ANCHORED IN BELGIUM

PAGE
ELECTRABEL PAGE
CORE ACTIVITY
06 AT A GLANCE 14 DEVELOPMENTS
PAGE
NOTABLE FACTS PAGE
MAJOR ECONOMIC
08 AND FIGURES 2011 19 AND SOCIAL PLAYER
PAGE
PAGE
TOGETHER FOR UNSTABLE ENERGY POLICY
10 LESS CO2 21 CREATES UNCERTAINTY

SUSTAINABLE DEVELOPMENT
AND CORPORATE SOCIAL
RESPONSIBILITY RESULTS

SUSTAINABLE DEVELOPMENT PAGE
ASSURANCE
PAGE

24 AT THE HEART OF THE 48 REPORT
MANAGERIAL STRATEGY
PAGE SCOPE AND
PAGE
PREPARING
50 METHODOLOGY
27 THE FUTURE
PAGE GENERATING
PAGE ACCEPTANCE OF THE
51 FACILITIES
29 GENERATING FACILITIES PAGE ENVIRONMENTAL
53 INDICATORS
PAGE
MEETING CUSTOMER
36 EXPECTATIONS PAGE FINANCIAL
55 INDICATORS
PAGE
BEING AN ATTRACTIVE
40 EMPLOYER PAGE SOCIAL
56 INDICATORS
PAGE
PUTTING SOCIAL ENGAGEMENT
44 INTO PRACTICE

Activities and Sustainable Development Report 2011 | Electrabel | 1

2| Electrabel | Activities and Sustainable Development Report 2011

ACTIVITIES AND
SUSTAINABLE 3 The third part (p. 22-45) is framed around the priority
issues in the field of sustainable development and corporate

DEVELOPMENT social responsibility and the way Electrabel responds to
them based upon a responsible attitude.
Here the company focuses on the themes that it
REPORT 2011 established in 2008 in its “Together for less CO2” plan for
sustainable development and in particular on the accents
that have been brought to the fore by its Advisory Council
for Sustainable Development that was set up as part of this
plan. This high level body groups members of society and is
the company’s key advisory body in the field of sustainable
development. In addition, issues belonging to the priorities
This Activities and Sustainable of the GDF SUEZ Group and which are common to all Group
entities are highlighted.
Development Report 2011 describes The various challenges have been grouped into five themes:
the activities and the most important preparing for the future, the acceptance of the generating
facilities, fulfilling the customers’ expectations, being an
key figures and results for Electrabel attractive employer and accepting social responsibility.
in Belgium between 1 January and
31 December 2011. It also mentions
some significant events from early
4 The fourth part of the report (p. 46-64) gives a
detailed overview of the composition of the generating
facilities at the end of 2011, as well as an extensive list
2012. The information in the report of environmental, social and financial indicators and their
is supplemented and updated on the changes since 2007.

website www.electrabel.com.
Ernst & Young Réviseurs d’Entreprise SCCRL produced an
This report consists of four parts. assurance report to ensure the credibility of the report (p.
48). In the Ernst & Young audit the focus was on analyzing
the qualitative data according to the recommendations
1 The first part (p. 4-11) is intended to give the reader a
concise, unified way of navigating through the year 2011. It
of the Global Reporting Initiative (GRI), as well as the
verification of ten performance indicators for the year 2011,
gives a brief presentation of Electrabel and an overview of which are identified in the tables of indicators (p. 53-56)
the key facts and figures for 2011. Then it summarizes the with the symbol .
most important results of the company’s “Together for less Compared with last year there were no significant changes
CO2” plan for sustainable development. This information is in the scope.
discussed in detail in other parts of the report.
The previous report for the year 2010, dates from July 2011.
The intention is to produce a report each year. The company

2 The second part (p. 12-21) gives a general overview
of the position of the company in Belgium in terms of
published its first environmental report in 1996.

generation, sales and personnel. This section also explains
the socio-economic importance of Electrabel for the
country. Finally, a number of energy issues that have an
impact on its activities are discussed.


2011
OVERVIEW
PAGE
ELECTRABEL
06 AT A GLANCE

PAGE
NOTABLE FACTS
08 AND FIGURES 2011

PAGE
TOGETHER FOR
10 LESS CO2

10,262 MW
OF GENERATING CAPACITY

3.31 7,063 5.0% 58.0%
million EMPLOYEES SHARE OF
RENEWABLE ENERGY
SHARE EXEMPT
FROM CO2 EMISSIONS

CUSTOMERS


ELECTRABEL
AT A GLANCE

Electrabel is part of GDF SUEZ, a world leader in energy and the environment,
which develops its businesses around a model based on responsible growth to
take up today’s major energy and environmental challenges: meeting energy needs,
ensuring security of supply, fighting against climate change and maximizing the use
of resources.

The company adheres to the Group policy of sustainable Electrabel operates in Belgium, its historic home market,
development which aims to develop sustainable operational where it produces electricity and sells electricity and natural
and commercial activities and manage extra-financial risks gas and provides energy services to retail and business
(more information at www.gdfsuez.com). customers. Through its subsidiary Twinerg it also produces
electricity in Luxembourg.
The activities of GDF SUEZ are organized into five
operational business lines in energy and into one in These activities are supported by Energy Management
environment. Electrabel is situated in the Energy Europe (ensuring the supply of the power stations with fuels and
business line, responsible for activities related to energy optimal use of the generating facilities) and the trading
management, the distribution of natural gas, electricity operations of GDF SUEZ in all markets in Europe (buying
generation and energy sales in continental Europe. and selling electricity, fuels and CO2 credits).

KEY FIGURES 2011 – ELECTRABEL IN BELGIUM
Share of renewable Share without CO2 Renewable energy CO2emissions
Total energy emissions capacity

Generating
capacity 10.3 GW 5.0% 58.0% 512 MW 158 g/kWh
Generation 52.7 TWh 3.1% 67.7%
Electricity +
Total Electricity Natural gas Employees
Natural gas

Sales 119.3 TWh 66.6 TWh 52.7 TWh 7,063
Customers 3.31 M 1.55 M 0.10 M 1.67 M

The generating capacity and generation figures concern the Electrabel share of the power stations
Employees: subsidiaries included


In Belgium, where the company and its subsidiaries have
7,063 employees, it has acquired more than a century of
experience in its métiers. It is the largest producer and
seller of electricity and the largest supplier of natural gas.
Electrabel operates future-oriented, diversiﬁed 10,262 MW
generating facilities with a reduced carbon footprint. It
consists of installations that use renewable energy sources,
power stations that use fossil fuels and nuclear power
plants.
The company offers its 3.3 million customers sustainable
energy solutions with added value and customized services,
getting the most out of the synergies between electricity
and natural gas.
In Belgium, Electrabel makes a major social and economic
contribution. It invests in local power stations that ensure
the energy supply, creates employment and contributes to
the preservation of knowledge and experience concerning
energy. The company also supports associations and
organizations working for societal and social goals.

VALUES


NOTABLE
FACTS
AND FIGURES
2011
22.1
of the managerial staff
%
functions are held by women

CarPlug
512
offers customers a solution
for charging electric vehicles

MW
renewable energy. Electrabel passed the
milestone of 500 MW generating capacity
with renewable energy sources

Stress Tests
conﬁrm the robustness of the nuclear power
stations in extreme conditions

1,300
questions answered on the
LeDialogue.be platform


5
stars 11 %
less CO2
The VREG gives Electrabel a
maximum score for customer emitted for each
friendliness kWh produced

Max Green
648,000
retail customers opt for a Power2Act
produces green power. In the
Rodenhuize power station a
green power contract 100% biomass power station
rewards employees for their with a capacity of 180 MW is
voluntary social engagement coming into service

450 MW offshore
The Otary consortium in which
Electrabel participates is given
a domain concession for the
construction of the Mermaid
offshore wind park

82
Agreement with
Blue Sky
offers electro-intensive
customers security
%
concerning their energy of customer calls are
supply responded to within
a minute


TOGETHER FOR
LESS CO2
In 2008, Electrabel gave its policy to combat global warming concrete
form in the “Together for less CO2” plan. It consists of ten commitments
that aim at a reduction in CO2 emissions relating to generation, customer
services and support activities in Belgium by 2015. In 2011 the company
achieved significant progress in all areas.

1
To have renewable energy-based
generating facilities making it
possible to cover the total consumption
of a million households by 2015.
2
The renewable energy-based production
amounted to 1.65 TWh, equivalent to the
consumption of 471,000 families.
To invest 500 million euro by 2015 to
improve the energy efficiency
of fossil-fuelled power stations
and reduce their CO2 footprint.
In four years, the specific CO2 emissions from
A MORE SUSTAINABLE the fossil-fuelled generating facilities decreased
by 6.2% (for the total generating facilities they
PRODUCTION decreased by 32%) and the energy efficiency
increased relatively by 8.2%.
Reducing greenhouse gas emissions
and the global environmental impact
of generating facilities 3
To continue to limit the environmental
footprint of its production activities.
The emission of NOx , SO2 and fine particles
per kWh decreased by 59%, 90% and 87%
respectively in comparison with 2007.

10 | Electrabel | Activities and Sustainable Development Report 2011

To support customers to enable
them to reduce their energy
consumption.
4 65,000 retail customers and 3,800 businesses
5
took advantage of the products and online
tools to manage and reduce their energy
consumption. To act with customers so that they
can produce energy in an
environmentally friendly way
themselves while at the same time
COMBINING FORCES reducing their energy expenditure.
Work with the customer to reduce energy The installation of 58 MW of sustainable
consumption and the carbon footprint capacity at industrial customers’ sites was
agreed.

6 36,000 additional retail customers chose
natural gas as their heating source.
To supply customers with
certiﬁed 100% green energy,
produced with renewable energy
sources.
7
At the end of 2011, 648,000 retail
customers had signed a GreenPlus or To stimulate mobility
Professional Green contract (100% green based on natural gas and
electricity produced in Belgium). electricity.
Development of the CarPlug,
a modern charging system for
electric vehicles.

8 To reduce the CO2 emissions
from daily activities by 21% by 2011.
In the period 2007-2010, the CO2 emissions
To maintain a dialogue with the
stakeholders with full transparency. 9 from buildings, mobility and paper consumption
decreased by 23.1%.
Launch of the LeDialogue.be dialogue platform.
An ambitious target of -25% was set for the
period 2010-2015. In 2011, emissions decreased
by 14%.

A COMMITTED
APPROACH Transparent, concerned and forward looking

10 To stimulate research and innovation
to foster technologies that contribute to the ﬁght
against climate change.
Portfolio of 30 research and innovation projects.

Start up of a new Smart Home Energy Lab.


ANCHORED
IN BELGIUM
Due to the nature of its activities, Electrabel occupies a central position in Belgium and
lectrabel s Belgium
is anchored in society. The company produces and supplies energy to households,
supplies
p households,
e
professionals, SMEs, public institutions and industry. These activities are essential for
These
e essential
n
economic and social prosperity. It also accepts its social responsibilities towards the
epts responsibilities
s the
communities in which it operates.

373 52.4% 605
million euro SHARE IN GENERATING RECRUITMENTS
INVESTMENTS CAPACITY


CORE ACTIVITY
DEVELOPMENTS

Decommissionings cause the Generating capacity of Electrabel in Belgium
in GW
generating capacity to decrease
At the end of 2011, Electrabel had a generating capacity 13.3 -678 MW
of 10,262 MW (*) in Belgium (for a detailed overview of 11.5 10.9 10.3
the generating facilities see page 51). The decrease of
almost 1,300 MW since 2009 is a result of the transfer
of capacity to the energy companies EDF and E.ON and
the decommissioning of older power stations (Kallo, Mol,
Rodenhuize). The power stations together produced 2008 2009 2010 2011
52,700 GWh of electricity (*).
The drop starting in 2009 results from the transfer of
*Electrabel share
capacity to EDF and E.ON and the closure of old power
plants.

Electrabel generating facilities in Belgium Electrabel renewable energy-based
at the end of 2011 generating facilities in Belgium
at the end of 2011

Doel Hoogstraten
Zandvliet Power Zeebrugge
Knippegroen R d
Rodenhuize
BASF
Herdersbrug
Pathoekeweg Kasterlee
Rodenhuize Wondelge
Wondelgem
delgem Volvo Trucks Ford Genk
Schelle
Volvo Cars
DS Textile
T
Izegem

Drogenbos Lanaken
Ruien Perwez
Awirs Ruien
Leuze-Europe Dour Bütgenbach
Gembloux
Saint-Ghislain Tihange
Awirs
Amercoeur Coo
Quévy Büllingen
Plate Taille

Nuclear power plant
Conventional power station Biomass (co-)combustion
Cogeneration Photovoltaic panel (> 0.2 MW)
Pumped storage power station Wind farm
CCGT Hydroelectric power station


Electrabel-shop in Namur

Economic crisis leads to
declining sales
In Belgium, Electrabel sells electricity and natural gas to
3.21 million and 1.76 million customers respectively.
In 2011 the company sales volumes totalled 66.6 TWh
of electricity and 52.7 TWh of natural gas. In comparison
with 2010 that is a decrease of 6.5% for electricity and
20.1% for natural gas. This drop is mainly explained by the
economic crisis and the milder weather conditions (in 2011,
the number of degree days was 1,928 compared with 2,703
in 2010).

Saint-Ghislain power plant

Electrabel electricity sales in Belgium Electrabel natural gas sales in Belgium
in TWh – wholesale included in TWh – wholesale included

-6.5%
71.2 -20.1%
68.9
66.6 66.0

55.8
52.7

40.4

30.2

Total 18.5
15.4
4 Business
10.8 Retail
Wholesale 4.0
2009 2010 2011 2009 2010 2011


Prices depend on many factors
Price increases for all categories of customers

Electricity prices for large industrial Electrabel customers
rose by an average of 3.6% in 2011 compared to the
previous year. These prices are based on futures prices
(forwards) on the wholesale markets in the Central Western
European Region (Benelux, Germany and France).
More expensive oil and the resurgence of gas prices on
international markets pushed the price of gas to Electrabel’s
industrial customers in 2011 by an average of 16.8%.
Residential customers saw the total price of electricity
increase by about 15.7% in Flanders and 9% in Wallonia
and Brussels. The larger increase in Flanders is explained
by the greatly increased funding costs for photovoltaic
production, at the expense of the distribution system
operators. Distribution costs increased by nearly 30% here, Electrabel lowers energy prices
while the increase of the energy component was 13%.
The natural gas bill for this type of customer increased In the context of rising electricity and natural gas
by 21.6% due to the price effect of more expensive fuel prices, in April 2012 Electrabel made a number of
and a slight increase in network charges. To anticipate decisions in the interests of its customers. Firstly, a
higher gas prices and higher consumption resulting from a reduction in the fixed prices (energy component) for
severe winter at the end of 2010, at the beginning of 2011 electricity and natural gas from May 1. The average
Electrabel offered its customers to adjust interim accounts decrease was 11% for electricity – and can for certain
upwards. customers even increase up to 16% – and more than
10% for natural gas (fixed price May 2012 compared
with April 2012). Furthermore, the elimination of a
penalty for early termination of the contract. And,
thirdly, the company did not charge for the announced
upward indexation of gas prices from April 1.

Market price of electricity and fuels Distribution costs weigh on the price
January 2008=100%
The share of the energy component – the value of this is
determined by Electrabel – in the total final invoice to the
customer at the end of 2011 for electricity is on average
Coal (API#2) about 32% in Flanders and 40% in Wallonia and Brussels.
Oil (Brent IPE)
The balance consists of contributions for renewables and
Electricity(baseload, Y+1)
cogeneration, transmission and distribution costs, as well as
Natural gas (HUBDGZ)
taxes and VAT. For natural gas, the proportion of the energy
component, which does include the transmission costs,
170%
was approximately 60%.
In 2011, Electrabel repeatedly pointed out that the
150%
price increases in Belgium are greatly influenced by the
130% components that are independent of the energy suppliers
(transmission, distribution, taxes, VAT). This was confirmed
110% by comparative studies by the regulators.
90% A report by the Commission for the Regulation of Electricity
and Gas (CREG), for example, showed that between
70%
January 2007 and July 2011 the price of the energy
50% component had increased to a much lesser degree than the
distribution costs. The total electricity bill for an average
30% residential customer in Flanders increased in that period by
2008 2009 2010 2011 47%, while the price of energy increased by 15%, and for
distribution by as much as 96.1%.


Composition of electricity price 2011 Composition of natural gas price 2011
Electrabel EnergyPlus – Imewo 3,500 kWh/year Electrabel EnergyPlus – Imewo 23,250 kWh/year

18% VAT 17%
32% 3% Taxes 2%
4% Distribution
Energy
60% 21%
Transmission
4% Contribution RES/CHP
39%

RES: renewable energy source
CHP: combined heat and power

More expensive than in the neighbouring
countries
More competition on
the energy market
The electricity prices in Belgium are above the price level of
In light of the liberalization of the energy market, Electrabel
most of the neighbouring countries. Besides the differences
has actively contributed to measures that promote
in price of the energy itself, it’s the higher distribution costs,
competition and improve the functioning of the Belgian
taxes and charges that weaken the position of Belgian
energy market.
prices compared with the foreign countries.
In recent years the company has exchanged generating
capacity with the EDF Group and the E.ON Group so
that these companies gained access to more production
Comparison of the price of electricity with capacity in Belgium.
the neighbouring countries Through these agreements, the Electrabel share of the
in ct€/kWh; November 2010; total generating capacity in Belgium at the end of 2011
3,500 kWh/year; single VAT and taxes decreased to 52.4%
source: Frontier Economics ODV*
Transmission
In 2011, Electrabel signed an agreement with six electro-
Distribution intensive companies united in the Blue Sky consortium
Energy which provides for:
22.82
21.61 • joint investment in a new CCGT power station which will
give Blue Sky a capacity of 200 MW;
• the granting to Blue Sky, as from 1 January 2012, of
5.32 17.33 200 MW nuclear drawing rights from the Doel and
13.37 Tihange power stations – consequently the share of
1.00 14.42 Electrabel in the Belgian nuclear capacity will amount to
0.84 9.69 4.80
around 66%;
2.14
5.88 3.59 0.57 • joint investment in the possible construction of new
5.47 4.86 2.73 nuclear capacity of up to 200 MW.

4.55

8.57 5.23 7.66 7.67 8.98

Belgium France Germany Netherlands United
Kingdom

* ODV: public service obligations


In addition, Electrabel has reduced its share in the
distribution system operators further in both Flanders
and Wallonia. In Flanders, it reduced its total capital in the
intermunicipal companies by 400 million euro. In Wallonia,
the company has transferred 5% of its shareholding in the
intermunicipal companies to the public sector, reducing its
voting rights in the Walloon distribution system operators to
25% + 1 vote.
Moreover, the company decided to apply to withdraw from
the Board of Directors of the unique grid operator Eandis
with effect from 30 June 2011 and to drastically reduce its
representation and voting rights within the Flemish mixed
intermunicipal companies that act as distribution system
operators. Through this, Electrabel wanted to lay extra
emphasis on the independence of the distribution system
operators as well as the impossibility for it to exercise a
significant influence on the intermunicipal companies.
The liberalisation of the energy markets has also created
increased competition in terms of sales. That has led to a
decrease in the market share of the company that at the
end of 2011 was down to 62%.

In 2011 the company and its subsidiaries hired 605 new
employees, of whom 71% on a permanent basis. Nearly
half of all new employees (43%) were able to start in
the N-Allo Contact Center, which plays a central role in
customer service. The recruitment policy of Electrabel also
focuses in particular on the preservation and transfer of
knowledge and experience (p. 28).

Staff continues to renew
At the end of 2011, Electrabel had 7,063 employees
Staff of Electrabel and its subsidiaries
in active employment at the end of 2011
including its subsidiaries Laborelec, N-Allo… in Belgium.
30.8% of staff held a managerial position, 32.2% were
female and 23.9% were younger than 30. Without
26
its subsidiaries, the number of personnel totalled
5,635 employees, 53% engaged in generation, 26% in 250
Electrabel
sales, 5% in trading and energy management and 16% in 1,152 N-Allo/Brucall
support services.
Laborelec
Due to retirements, internal changes within the GDF SUEZ Other
5,635
Group, for example the transfer of staff to GDF SUEZ
Trading, and the non-renewal of fixed term contracts, at the
end of 2011 there were 150 employees less than at the end
of 2010.


MAJOR ECONOMIC
AND SOCIAL PLAYER

One of the ten largest employers The investment in local power plants makes Belgium less
dependent on foreign countries for its energy supply.
in the country
Electrabel is one of the ten largest direct employers in
Belgium. At the end of 2011 the company had, including its
subsidiaries, more than 7,000 employees. It also provides
important indirect employment, with, for example, almost
7,000 jobs in its nuclear power stations.
The company recruits hundreds of new employees
each year. In the period 2009-2011 this totalled 1,968,
subsidiaries included.

In 2011, the social security contributions that Electrabel had
to pay to the Belgian National Social Security Ofﬁce for its
staff totalled 142 million euro.

1.3 billion euro investment in
three years
The uncertain economic climate and the unclear legal
framework acted as a brake on major investment decisions.
Nevertheless, in 2011 Electrabel invested 339 million euro
in its generating facilities in Belgium and 34 million euro in
improving its business software. The bulk for production
went to the maintenance of nuclear power stations
(187 million) and the construction of new power stations
with renewable energy (wind farms (28 million) and the Max
Green biomass plant in Rodenhuize (30 million – the total
Max Green biomass plant in Rodenhuize
investment for this project was 128 million over 3 years)).


360 million euro taxes Full accounts of the Electrabel company with a detailed
overview of its financial results are available on the website
of the National Bank of Belgium (www.nbb.be).
In 2011, the limited company Electrabel realized a turnover
of 14.5 billion euro. The result before tax amounted to
1,198 million euro. Of this amount, after application of the
Belgian tax law, 148 million euro was effectively subject
Retaining knowledge
to corporation tax. That was 51 million euro. Electrabel Research and innovation are fundamental for an energy
also paid a nuclear contribution of 212 million euro and company to respond to the energy challenges and to enable
98 million euro in other taxes and levies, inter alia, motive it to play a leading role in the field of the energy transition.
power, water pollution, water intake, ionizing radiation and Electrabel has been working with Belgian universities and
environmental taxes. with its internationally recognized Laborelec technical
and scientific competence centre based in Linkebeek. In
this way the company promotes scientific research and
contributes to ensuring that knowledge about energy
issues, which is of crucial importance for a country at the
strategic, political and social level, remains in Belgium
(p. 26-27).

Support for social projects
In addition to an economic one, the company also performs
a social role. The numerous projects and initiatives
it supports voluntarily, sets up itself or with which it
cooperates, help people in difficult circumstances in their
integration into society and contribute to preservation of the
environment and our heritage (p. 44).

Tihange nuclear power plant


UNSTABLE ENERGY POLICY
CREATES UNCERTAINTY

The nuclear future Elia fees and charges
Electrabel defended its standpoint before the Economy At the end of 2011, the CREG approved new tariffs for
Commission of the House of Representatives concerning injecting power into the Elia high voltage grid. These rates
the calculation of the nuclear revenue. It calculated this for are effective for the period 2012-2015 and for the electricity
2007 as 750 million euro, an amount that was a long way producers mean an extra cost of more than 100 million
from the estimates of the energy regulator CREG (1.75 to euro/year. This decision by the energy regulator affects
1.95 billion euro or even up to 2 to 2.3 billion euro). At the the competitiveness of Electrabel with respect to foreign
request of the government, the National Bank of Belgium energy producers. The company has therefore joined forces
also calculated the profit from nuclear power. It came to with other producers to challenge the CREG in the court of
a figure of between 808 and 950 million euro and largely appeal.
confirmed the Electrabel methodology and numerical
In addition, there is a dispute with the competent authorities
conclusions.
about the amount that Elia must pay to electricity producers
The new government confirmed the intention to close the for the reserve capacity they make available. That payment
nuclear power stations as from 2015 as envisaged in the is not sufficient to cover the costs of the producers.
2003 law on nuclear exit. The exact timing of the closure of
Doel 1 and 2 and Tihange 1 will depend on the conclusions
of an equipment plan to be established in 2012. Third energy package
The government not only refused to extend the operating
The transposition of the third European energy package into
lifetime of the three oldest nuclear units by ten years, it also
Belgian legislation will also affect operation of the energy
imposed a contribution of 550 million euro for 2012 on the
companies. The CREG will have more clout and will be
operators of nuclear power stations. These decisions imply
authorised to control and approve the energy prices and
that the Belgian State has not fulfilled the commitment
tariff formulas. The regulator will also examine in advance
made in 2009 with GDF SUEZ concerning the development
the price rises proposed by the suppliers and compare
of the activities of Electrabel in Belgium. The Group
them with the tariffs in the neighbouring countries. A price
therefore reserves the right to protect its interests around
adjustment is only possible with the approval of the
these commitments.
regulator.
At the end of 2011, Electrabel submitted its reports on the
In addition, the use of a standard invoice, the customer’s
stress tests of its nuclear plants to the Federal Agency for
ability to terminate their contract free of charge and without
Nuclear Control (FANC). After a first analysis, the FANC
notice, and the abolition of the double severance payment
confirmed that the power stations can withstand extreme
strengthen consumer protection.
conditions and that they can guarantee the critical safety
functions. The reports will be reviewed in 2012 by the
European nuclear authority (p. 34).
Freezing the prices
Because of all these developments the GDF SUEZ Group
considers itself obliged to reconsider its entire nuclear Based on a comparative study of energy prices in Belgium
strategy in Belgium as a whole in the course of 2012. It will and the neighbouring countries conducted by the CREG and
take into account the decisions of the Belgian government the Prices Observatory, the federal government decided in
regarding the future of the nuclear power plants and the early 2012 to freeze the electricity and natural gas prices
planned equipment plan, as well as an overall economic for nine months from April 2012. During that period, the
evaluation of the investments. CREG will study the energy suppliers’ tariff formulas.
The government intends to use these measure to adapt
the indexation mechanism. The European Commission
questioned such a price freeze, which contradicts the
principles of a liberalised energy market.


SUSTAINABLE
DEVELOPMENT
AND CORPORATE
SOCIAL
RESPONSIBILITY
An energy company is faced with numerous challenges. They require speciﬁc
management to promote its harmonious and balanced development within society.
Electrabel manages the impacts of its activities on all stakeholders to optimum effect,
but also aims to transform them into opportunities for the company’s development.
Fighting climate change, the preservation of resources and responding to essential
needs are among the main challenges to which it aims to provide responsible and
innovative solutions.

5.3 1.1 30
million tons million euro RESEARCH AND
LESS CO2 SUPPORT FOR INNOVATION PROJECTS
PROJECTS


SUSTAINABLE DEVELOPMENT
AT THE HEART OF THE
MANAGERIAL STRATEGY

Policy in line with the value for the company and its customers in the short and
long term by working on various pillars:
GDF SUEZ Group • identify what are the most pressing social issues
according to the stakeholders and for the development
Sustainable development is central to Electrabel’s business of the company and formulate an answer for them;
strategy. The company endorses the ambitions of the
GDF SUEZ Group to develop responsible growth by • develop new market opportunities;
anticipating the economic, ecological and social transition. • control the risks by anticipating external changes and
Its strategy for sustainable development aims to create regulation;
• retain customers and employees with a strong, durable,
attractive brand;
• reduce costs through increased efficiency in production
and reduced energy consumption in the daily activities;
GDF SUEZ Group
Sustainable development in three directions • accept the responsibility that society expects of an
More information: GDF SUEZ
energy leader.
Sustainable Development Report 2011 (www.gdfsuez.com)
Together for less CO2

MARKET
MARKETS
KE Environment and sustainable development have always
occupied an important place in Electrabel. In 1995 –
Innovating. Anticipating
market changes.
two years before the adoption of the Kyoto Protocol –
the company had concrete action plans ready to produce
electricity by using less primary energy and gradually
1 developing renewable energy. In 2008, efforts were
stepped up to elaborate a “Together for less CO2” plan with
the horizon of 2015 that includes ten specific commitments
(p. 10). The launch of this plan was preceded by contact
with various stakeholders, including representatives of
associations and academia.

Sustainable development integrated into
the organisation

In 2007, Electrabel set up the Department for Sustainable
Development within the Strategy, Regulatory Affairs and
3 2 Sustainable Development Directorate. In collaboration with
the operational entities, support services and local managers,
EM LO ES
EMPLOYEES EXTERN STAKEH
EX ERNAL ST KEHOLDERS
EXTERNAL STAKEHOLDERS it is responsible for the implementation of the strategy
Develop the Group’s Ensuring the longevity and
adopted by the company’s Executive Committee. It also
appeal, professionalism and social acceptability of our provides the dialogue and consultation with the stakeholders
cultural consistency. activities in the territories. and encourages the internal commitment and the
development of a sustainable development reflex throughout
the company. At the end of 2011 the department had six full-
time employees who are also liaising with the Directorate of
Sustainable Development of the GDF SUEZ Group.


Sustainable Development The Board evaluates the results and the strategic direction
of the company and identifies the priority challenges.
Advisory Board During its last meetings the Advisory Board discussed the
items electric vehicles and renewable energy.
In 2010, Electrabel set up a Sustainable Development In 2011, Electrabel organised a survey amongst the individual
Advisory Board comprising representatives from academia members of the Advisory Board and one thousand other
(universities), employer organisations, unions, consumer representatives of society into their expectations about the
organizations, NGOs… Due to its high level of expertise and key issues and indicators of sustainable development they
its broad social field, the Board is the corner stone of the think Electrabel should report on.
company’s stakeholder consultation approach in the area of
sustainable development.

Materiality exercise

Electrabel develops its policy in particular concerning priority themes formulated by its Advisory Board. In
the issues that it has established in its sustainable addition, it focuses on themes that are part of the
development plan “Together for less CO2” and the transversal priorities of the GDF SUEZ Group.

CO2 plan
p Adviso y Board
Advisory Board
isory a
s GD SUEZ
GDF SUEZ

CO2 emissions from power stations (p. 29-31)
Energy efficiency of power stations (p. 30)
Energy solutions for the customer (p. 36-38) Access to work (p. 44)
Green mobility (p. 38) Competence management (p. 28)
Renewable energy (p. 29-30) Diversity (p. 43)
Research & Innovation (p. 27) Ethics (p. 44)
Health & Safety (p. 40)
Meaningful company (p. 41)
Nuclear safety (p. 34-35)
Employees mobilisation (p. 42) Energy poverty (p. 44)
Solidarity (p. 45)
Environmental impact Energy supply (p. 36)
of the power stations (p.32-33) Governance (p. 24-25)
Stakeholders dialogue (p. 26) Service (p. 39)


Research and innovation are essential for making the right
strategic choices and anticipating developments in the
energy system – Smart Home Energy Lab.

Universities, key partners Transparency towards
The structural reinforcement of links between industry and
all stakeholders
academia is one of the cornerstones of Electrabel’s policy
on sustainable development. The company has therefore Electrabel faces the energy challenges together with its
signed long-term framework agreements with the eight customers and the communities in which it operates. It
major Belgian universities. They intend to optimize the wants its stakeholders to also be informed of its results and
research in areas of strategic importance for the company, promote dialogue. The company has set up special organs
to improve its positioning in the energy markets and and created communication tools for this purpose.
respond to the challenges of the energy transition. In 2011, Electrabel took several new initiatives in this
Besides promoting research (p. 27), which contributes to area. In June, the company launched the Internet
maintaining the high level of the university centres that communications platform LeDialogue.be (www.ledialogue.
educate the employees and partners of tomorrow, the be) where it answers questions from its stakeholders and
collaboration with the universities plays an important role in explains its position. In the ﬁrst twelve months the forum
the company’s competence management (p. 28). handled some 1,300 questions, most about nuclear power
and energy prices. Electrabel also reinforced its presence
on the social media. It opened a YouTube channel, four
accounts on Twitter and an Electrabel Backstage wall on
Facebook.


PREPARING
THE FUTURE

Future-oriented research and the company ﬁnanced about thirty projects spread across
several themes (renewable energy, CO2, energy efﬁciency,
innovation sustainable mobility, sustainable energy mix, intelligent
systems, energy poverty…). Two of the studies were
Electrabel has set up a future-oriented research and directly related to the market launch at the beginning of
innovation programme to offer a pragmatic response to the 2012 of solutions for consumers (CarPlug and Smart energy
energy needs and challenges that the market must face in box, p. 37-38).
terms of both energy consumption and production. For its
In early 2012 the company issued a call to the universities to
implementation it relies upon the Belgian academic world
submit research projects for 2013.
and the research centres of the GDF SUEZ Group. In 2011,


actually at work and assess their potential. A contract
was even offered to several trainees. The company also
Scientific Advisory Committee presents an Electrabel Stage-Award each year to the best
theses by interns in production.
In 2009, Electrabel set up a Scientific Advisory
Committee for the purpose of monitoring and As part of its 6th Sense project designed to find structural
enriching its main lines in the area of prospective solutions for the recruitment challenges, in 2011 school
research and innovation. The committee, consisting teachers were allowed to explore the Doel power station
of Group managers and representatives of the Belgian for three days. The intention is that they pass on this
and international academic world, identifies the experience to their students and that the gap between
medium and long-term promising developments in education and industry closes.
the area of energy technologies and stimulates the In addition, in conjunction with the VDAB, the Technicians
company’s R&I programme. in Progress programme consists of a 6-month vocational
training course for skilled technicians, after which they were
offered a permanent job within the company. In 2011 it
concerned 5 candidates.
Besides the universities, the research experience gained
throughout the GDF SUEZ Group is important. In 2011, The company has also donated materials from its closed
the nine research centres of the Group had around Mol power station to the VDAB, which are used for training.
1,100 employees, including 250 at Laborelec, the Electrabel Furthermore, students and job seekers can exchange
technical and scientific competence centre. In the new e-mails with Electrabel employees – via its website – and
Smart Home Energy Lab (SHEL), which was opened in thus discover the actual job content. In 2011 this channel
2011 on the Laborelec site, subjects that experts can produced 443 concrete contacts.
learn about include the integration of energy management
systems, heat pumps and electric vehicles in a residential And through the Talent2Talent project the company
environment. The SHEL will thus make an important encourages its employees to recommend new talents for a
contribution to the company’s R&I programme. position. In 2011, this initiative produced 265 applications.
Candidates can also browse the online vacancies and apply
directly through the website www.electrabel.com/career.
Competence Management
13% of Electrabel employees are 55 or older and will leave
the company in the near future. It is essential to arrange Age structure of staff
their succession in time in order to transfer the knowledge in active service end 2011
and experience they have accumulated. It is a challenge for
the company to attract, train and retain the right profiles. > 55
It therefore establishes direct contact with the educational
and employment organizations and mobilizes its employees. 55

The cooperation that Electrabel has established with the 50
Belgian universities (p. 26) offers the possibility not only to
promote itself as an attractive and committed employer, but 45
also to encourage and attract the best talents.
40
For example, it stimulates the reception of internship
35
students into the company, supporting theses and
doctorates, as well as the cooperation of staff in courses, 30
lectures and case studies.
25
In 2011, Electrabel gave 125 students the opportunity to
follow training within the company. The internships are 0 250 500 750 1,000
an opportunity for to see future prospective employees


ACCEPTANCE OF THE
GENERATING FACILITIES

Low carbon production The wind farms in Leuze-en-Hainaut, Zeebrugge and
Dendermonde (total 23 MW), and the Max Green 100%
biomass unit in Rodenhuize (180 MW), a joint Electrabel and
Ackermans & van Haaren project, came into service.
Committing to renewable energy sources
The construction of another three wind farms (16 MW)
Electrabel aims to have a renewable energy-based has also started, while Electrabel obtained permits for the
generating capacity by 2015 with which it is able to supply generation of about a 100 additional megawatts, including
a million families entirely with green electricity. Its target is in the port of Ghent (8 MW) and along the E40 motorway
therefore mainly biomass and wind energy projects. (50 MW).
In 2011, the company exceeded the threshold of 500 MW Together with the eight industrial and financial partners of
generating capacity with wind, biomass, hydro and solar the Otary consortium, Electrabel also submitted a dossier
energy. for obtaining a domain concession for the construction
of an offshore wind farm of 450 MW in the Belgian part
of the North Sea. The partners have set up the Mermaid
temporary joint venture for this, in which Electrabel has an
Renewable energy generating capacity interest of 35%. In June 2012 the concession was awarded
in MW to Otary. The first wind turbines should be able to supply
power in 2016.

Total Renewable energy sources produced 1.65 TWh. This
Biomass volume corresponds to the electricity consumption of
Photovoltaic 471,000 families. Electrabel thus confirmed its position
+53 MW

Wind as the largest producer of green electricity in Belgium.
Hydroelectric The growth in capacity (+53 MW) did not lead to a higher
512
annual production of green energy because biomass
341
464 459 incineration at the Rodenhuize power station was shut
340 down during the conversion of group 4 to 100% biomass
419 312
(Max Green project) and only came back into service in the
403 284 summer. Considering the last three months of the year,
314 production reached the equivalent power consumption of
730,000 families.

Biomass combustion
constitutes one of
the pillars to be able
5
140 5 144
to supply 1 million
76 1 4 households with
109 121 green energy –
101
biomass delivery
67 GDF SUEZ Ghent.
42
22 22 22 22 22 22
2004 2007 2008 2009 2010 2011

In 2009 the capacity decreased due to the transfer of
the Langerlo power station (56 MW biomass) to E.ON.


Electricity production from wind energy was more than
twice as much in 2011 as in 2007, and it will increase
even more in the future – Leuze-Europe wind farm.

In 2011, Electrabel used 0.98 million tons of biomass, of Due to these investments and closures, the average
which 0.72 million tons of wood pellets. To ensure the efficiency of power stations that use fossil fuels, which
supply of pellets, the company signed an agreement with amounted to 40.9% in 2000, increased to 45.0%.
the Canadian company Pacific BioEnergy for importing
225,000 tons per year. The first cargo destined for the
Rodenhuize power station arrived in the port of Ghent
in May. Efficiency of the generating facilities
supplied with fossil fuels
Producing power with less fossil fuels in %

The construction of new units and the conversion or closure +0.7%
of old plants, has significantly reduced the fuel consumption
per kWh produced by the generating facilities. Since 2008 44.7
44.7 45.0
45.0
the company has invested 436 million euro in improving 40.9
40.9 41.6
41.6
energy efficiency of its power stations, especially for the
new Knippegroen power station.
In 2011, Electrabel took unit 1 of the Kallo gas power station
(261 MW) and units 2 and 3 of the Rodenhuize power
station (258 MW) out of service. During 2012, units 3 and
4 of the Ruien power station (252 MW) will also stop their
production activities. These older coal power stations using
biomass co-firing which have a lower output can no longer
be operated profitably after, amongst other things, the 2000 2007 2010 2011
reduction of the number of green certificates granted for
the production of green electricity from co-firing biomass.


Specific CO2 emissions by the generating
facilities
Thanks to the nuclear power stations CO2 emissions in grams of CO2 / kWh
of the generating facilities belong to the lowest in
Europe – Doel nuclear power station.
Conventional, CCGT, Total generating
cogeneration facilities

719
-6%
692
649
Nuclear power plants, leading in the reduction 604 600
of greenhouse gases

Besides the efforts in the area of renewable energy and
improving the efficiency of power stations using fossil
fuels, nuclear power stations are playing a decisive role in
reducing CO2 emissions.
27
76 -32%
At the end of 2011, 58% of the generating facilities consisted 23
32
20
02
of CO2-free power stations (nuclear, pumped storage 17
77 15
58
power stations, renewable energy) – which accounted for
nearly 68% of the total electricity production – and 24.7%
of CO2-poor power stations (natural gas-fired CCGT power
2000 2007 2009 2010 2011
stations and CHP) (see the energy mix on p. 36).
The specific CO2 emissions from this low-carbon energy
mix were 158 g/kWh, one of the lowest in Europe. The
emissions were also 11% lower than in 2010, mainly
because the nuclear power stations had a larger share
in the production. They also avoided 32,000 kilotons of
CO2 emissions
CO2 emissions (compared with a fossil fuel mix). in grams of CO2 /kWh – year 2010
(Electrabel, year 2011)
In contrast to this is the fact that the emissions from power source: PwC
stations that are not CO2 free increased from 600 to
649 g CO2 /kWh. This is due to the increased importance
of the combustion of blast furnace gas – this gas causes
higher CO2 emissions – in the Knippegroen power station.
715

568
494
444
403 384 Europe: 337
330 325
Five million tons less CO2 emissions 255
158 133
Electrabel has already achieved its target of 104 84
reducing the CO2 emissions from its generating
facilities by 1.7 million tons in the period 2008-
ern

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2014. Over the last four years (2008-2011), total
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emissions decreased by 5.3 million tons of CO2
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(calculated at constant production – reference
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year 2007). In 2011, the CO2 savings totalled
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Continuously reducing the
environmental impact of the
power stations
Global environment plan

In addition to limiting greenhouse gas emissions from its
generating facilities, Electrabel is implementing a centralized
policy to also reduce the environmental impact of its power
stations concerning the air, water, soil, noise, waste and
dangerous products. The policy is embodied in a global
environment plan 2008-2012, which is supplemented with
speciﬁc action plans for waste, water and energy efﬁciency.
In 2011, the company has continued the implementation
Environmental management systems are a driving
of these plans. The environmental management systems
force to improve the environmental performance of
that it has implemented in its power stations as part of this the power stations – Knippegroen power station.
play a central role in the continuous improvement of the
environmental performance.


Activities and sustainable development report - 2011 Electrabel, GDF SUEZ group

Activities and sustainable development report - 2011 Electrabel, GDF SUEZ group

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