RWE s 150 Mio. Energy Efficiency Program

Transcription

1 RWE s 150 Mio. Energy Efficiency Program - Strategy, Implementation and Evaluation - Portoroz, April 8 th 2008 Dr. Wolfram Herppich RWE Energy Corporate Development / Strategy Agenda RWE at a Glance A B Strategic Aspects RWE's Program and it's Implementation C Evaluation of the Program D 2 1

2 A RWE Energy at a Glance RWE Group structure and key figures Revenues 42,500 Mio. Cash flow 6,085 Mio. Net income 2,659 Mio. Employees 70,000 Shareholders 260,000 Electricity generation Electricity sales Electricity customers Gas sales Gas customers 224 TWh 312 TWh 20 million 361 TWh 10 million 3 A RWE Energy at a Glance RWE is one of the leading utility companies in Continental Europe Market shares electricity sales Helmond Netherlands Dortmund Poland Warsaw % Prague Czech Republic Kosice Slovakia Vienna Bratislava Miskolc Austria Budapest Klagenfurt Hungary Germany Hungary Slovakia* Austria* Market shares gas sales* % 83 Poland Market position Electricity sales Gas sales Water: Population (supply and sanitation) Germany Europe No. 2 No. 2 No. 3 No. 6 No. 1 No. 8 6 Germany Czech Republic 46 Hungary 5 Netherlands * 2005 values, incl. minority shares 20%, sales to end customers 4 2

3 A RWE Energy at a Glance Group strength RWE matches within centralised and regional know how Regional Know how Customer orientation: Knowledge of customer needs Strong customer loyalty Energy supply: Portfolio- & Risk Management, access to Wholesale Market, Sales: Know-how for product development, marketing, Grids: Regulation Management on European level, unbundling approaches, know-how for operation, maintenance and standardisation, Processes: Call centre, billing solutions, IT, Preserving the own identity and culture is an competitive advantage High flexibility to react on customer's wishes Autonomous concerning the economic success Clear structures in the regional utility, esp. short decisions Motivated Management and employees identify with the company Exchange of experiences: Mutual successful approaches within the group Internationality Centralised Know how 5 B Strategy: Policy Perspective Developing energy efficiency services as one of the main instruments of climate protection policy Directive: Energy end-use efficiency and energy services Mai 17 th 2006: Adoption of the Directive Transformation into national law within 2 years Overall national indicative energy saving target of 1 % p.a., up to 9% within the next 9 years Public Sector as role model: energy saving target of at least 1,5 % p.a. First Energy Efficiency Action Plan (EEAP) to be submitted to the Commission by latest June 30 th June 2007 Each Member State is to draw up programmes and measures to improve energy efficiency Utilities are the main actors Implementation of the Directive by energy distributors, distribution system operators and/or retail energy sales companies of providing measures like promotion of energy services or energy efficiency improvement measures ensure the promotion of competitively-priced and independently conducted energy audits contribute to funds and funding mechanisms for energy efficiency improvement measures 6 3

4 B Strategy: Customer Perspective The customers are expecting solutions from their utility on the currently urgent issues? Alternative to increasing energy prices? Service orientation / energy solutions? Sustainable and futureoriented entrepreneurship? Corporate Responsibility? Local engagement? Product variety? Service quality? Reliability? Contribution to climate and environment protection Customers are interested in low energy bills, not in low energy price, energy efficiency services make the difference 7 B Strategy: Capital Markets Perspective The capital market expects sustainable actions by the utilities There are many good reasons for a sustainable corporate management Access to long term oriented investors Incorporation in principle guided investmentfonds Capital markets and customer infer from sustainable management to the quality of management Special expectations on companies in environmental sensitive businesses Increase of reputation on capital markets and with the customers Expectation that sustainability will be of increasing overall relevance Elements of sustainable management Social sponsoring (Culture, Sport, ) Protection of resources / climate protection (esp. in production) Energy efficiency (at the customer) Corporate Governance (observe law and fairness) Definition: Sustainable development is an development to satisfy the needs of the presence without risking that future generations are not able to satisfy their needs 8 4

5 B Strategy: RWE s Perspective RWE is convinced that the chances of supplying energy services will outweigh their risks Chances + Meet customer needs for energy services + Customer retention + Basis of a premium and quality strategy + Growth potential into energy services + Sustainable company strategy / Corporate Responsibility + Fulfilling the political expectations + Improvement of image Risks - Increasing specific costs - Additional sales costs - Margin reductions 9 C RWE s Program RWE Energy decided to embark on an 150 Mio Energy Efficiency Program Three types of projects: Research and Technology Implementation and Consulting Clarification and Information 10 5

6 C RWE s Program Create public attention on energy efficiency by Clarification & Information - projects Information programs for private/business customers Guiding principle: Only customers who are aware of their potentials for energy savings can cut their energy costs 1. Nation-wide media campaign with TV/radio ads on Energy efficiency at home to draw customer's attention on energy efficiency to give strong advice to our customers 2. Energy check campaign in cooperation with the magazine stern 3. Heat pump promotion 4. Award for energy efficient commercial buildings 5. Energy-savings projects for schools 11 C RWE s Program RWE offers support for its customers Implementation & Consulting projects Increase energy efficiency in municipal buildings Guiding principle: Supporting the public sector helps to clear the refurbishment backlog 1. Energy-savings concepts for public buildings 5,000 Town Halls Program (promote Energy Performance Certificates) Street lighting efficiency program 2. Energy-savings concepts for hospitals and SMEs e.g. Energy data management, technical service, record energy costs according to consumption 12 6

7 C RWE s Program The marketability of new technologies are put to trail within projects on Research & Technology New methods in marketing and controlling energy Guiding principle: Innovative processes and new technologies give cost control to the customers 1. Smart metering : Intelligent meters for homes and businesses Transparency regarding power consumption and own patterns of use Exemplary trial with all 100,000 customers in the city of Mülheim/Ruhr 2. Virtual power plant : Optimize decentralized power generation plants Pilot project in cooperation with Siemens Bundled marketing of regionally generated power = increase in economic value of individual plants 13 C and it's Implementation Regional implementation in tight dialog with RWE s Regional Energy Companies (RECs) Clear responsibilities Energy Responsible for the concept Steering of the program as a whole (Co-)funding of new business opportunities in the energy services market Definition of goals Draw up main elements Feedback Regional Implementation Reporting of data Controlling, monitoring and evaluation of the program Germany wide communication (targets: politicians, general public, employees and capital markets) Regional RWE-Companies in Germany Regional Implementation Offer energy efficiency services Regional communication campaign Incorporate individual regional situation 14 7

8 C and it's Implementation Clearly defined budgets are controlled by RWE Energy and the RECs Nation-wide informational campaign Energy check campaign in cooperation with the magazine stern Heat pump promotion Award for energy efficient commercial buildings Energy-savings packages for schools Energy-savings concepts for public buildings ( 5,000 Town Halls Program ) Street lighting efficiency program Energy-savings concepts for hospitals and SMEs Smart metering: (Transparency regarding power consumption) Virtual power plant: Optimize decentralized power generation plants Sum Sum 150 Mio. REC 2 REC 1 REC 5 REC 4 REC 3 Regional Partners REC 6 15 C and it's Implementation Example 1: Energy performance analysis for municipal buildings Within the 5,000 Town Halls Program an Energy Performance Certificate was made for the town hall of Bedburg-Kaster, a small community west of Cologne. The analysis gives strong advice to enhance the energy efficiency of the building 100 CO2-emissions in t/a Current situation Gas fired Roof insulation Efficient windows Wall insulation condensing boiler Our contribution for more energy efficiency: The building is analysed by RWE or its Partner RWE covers 85% of the costs for the analysis RWE submits an offer to realise the identified energy efficiency potentials 16 8

9 C and it's Implementation Example 2: Sponsoring of heat pumps in residential buildings CO2-emissions in t/a % RWE s support of heat pump technology: Comprehensive information (flyers, brochures, etc) Co-operation with suppliers of hardware Information events for plumbers Individual consulting Financial support Arranging of financing Financial support for pilot projects 1 0 Oil fired condensing Gas fired condensing Heat Pump Pellets boiler boiler 17 D Evaluation of the Program Monitoring and evaluation as key success factors for customer oriented energy efficiency services What is evaluation? Quantification of the energy efficiency effects (cost-benefit-analysis) Estimation of costs for saved energy and reduction costs of CO 2 Why evaluation? Calculating saved energy and CO 2 -emissions plus costs of avoided energy consumption and CO 2 -emissions Get starting-points to improve the program design and to increase the efficiency effects How to evaluate? Compare the actual energy consumption with the hypothetical consumption without the measures, two different approaches: Top down: Estimation of energy saved (and CO2-emissions) on the basis of aggregated data as well as use of empirical economic approaches Bottom up: Technical calculation of each single energy conservation measure and recording of implemented measures 18 9

10 D Evaluation of the Program RWE's program is continuously evaluated in detail with support of external expertise Nation-wide informational campaign Energy check campaign in cooperation with the magazine stern Heat pump promotion Award for energy efficient commercial buildings Energy-savings packages for schools Energy-savings concepts for public buildings ( 5,000 Town Halls Program ) Street lighting efficiency program Energy-savings concepts for hospitals and SMEs Top down evaluation Bottom up evaluation Evaluation with support of external experts Step 1: Determine different methodologies for different measures (2008) Step 2: Calculate energy savings for each single year (2008, 2009 & 2010) and Step3: Calculate overall savings ( ) Smart metering: (Transparency regarding power consumption) Virtual power plant: Optimize decentralized power generation plants Evaluation is part of the projects because of its R&Dcharacteristics 19 Lessons learned Energy efficiency services are a substantial and easy to communicate approach to tackle the present challenges of the utility sector However, running an energy efficiency program is challenging, so Create public attention by starting an overall communication-campaign Design customer oriented services Install the internal processes to run the program Record the key data of every type of measure Evaluation is a key success factor, gives you an indication of the program performance and the need for program adjustments 20 10