Moving to a low carbon economy

As a significant emitter of CO₂, we are committed to developing strategies and plans to ensure we play a leading role in minimising emissions in the future. Our strategies are focussed on reducing CO₂ emissions, developing innovative products and services for our customers, raising awareness of climate change and the need for greater energy efficiency.

Reducing the carbon intensity of electricity generated

We operate one of the largest and most diverse portfolios of power generating plant in the UK, including gas, coal and oil-fired power stations, Combined Heat & Power (CHP) plant and renewables facilities. Our challenge is to move to low carbon generation, whilst maintaining affordable and secure sources of energy.

In the short term, our strategies involve increasing generation efficiency, co-firing biomass, and, through RWE npower renewables, the UK subsidiary of RWE Innogy, investing in new renewable capacity.

In the medium term, our strategy is to invest in lower carbon generating plant. In 2007, we committed to reduce the carbon emitted per unit of electricity by 50% by 2015 compared to 1990. This will be delivered primarily through our new gas-fired power stations at Staythorpe (due to be commissioned 2010) and Pembroke (due to be commissioned 2012), and new renewable capacity.

Our strategy after 2015 is to be at the forefront of new nuclear power station investments, and to invest in Research and Development into low carbon generation. Early in 2009 we announced our joint venture with E.ON UK to develop at least 6GW of new nuclear capacity.

By 2011 we will complete construction of a carbon dioxide capture pilot plant at Aberthaw Power Station.

To encourage all this to happen, the Government needs to establish a clear policy and planning framework which will encourage serious investment in lower-carbon technologies and new generating capacity.

Society as a whole will also need to change the way it uses energy too. Consumers will need to become more energy-efficient at home and at work, and embrace new technology – for example using small-scale renewables for electricity and heating. Again, Government needs to drive this change in behaviour through the right mix of regulation and incentives.

The part we play

In this section, we’ll explain the important part we are playing in the move to a low carbon economy and the work we’re doing with our business and residential customers to encourage energy efficiency.