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Environmental Sustainability in Energy Delivery
Steve Wallace
Head of Climate Change and Environment
Energy Sustainability
Security of
supply
Environment
Affordability
(fuel poverty)
Where does National Grid fit?
The environmental challenge
Our role in decarbonising
the economy
Leadership in
energy policy
Reducing
society’s
emissions
Providing the
infrastructure to
decarbonise society
Impact from our services
and how we and our supply
chain operate
Environmental
impact from
the goods and
services we
provide
Environmental
impact from goods
and services that
are provided to us
Sustainable,
low carbon
business
Emissions and resource
efficiency
Where will our energy come
from in 2050?
~50% from electricity
at ~15g CO2(e) / kWh
Generation capacity mix
 Wind, nuclear & CCS dominant at
~25GW – 30GW each
 ~20GW other renewables
 ~15GW interconnection
 ~20GW embedded generation
~115GW
~35% from gas
at ~185g CO2(e) / kWh
 LNG & continental imports
 Bio-methane
~15% from oil
at ~245g CO2(e) / kWh
Gas CCGT
Coal
CCS
Nuclear
Interconnector
Wind
CHP
Renewable
Other
5
Why do we need gas?
Electricity demand
Gas demand
~1,000 GWh / day
~4,000 GWh / day
(avg. November day)
Energy use is ‘peaky’…
GWh
4,000
Peak 30 days
4,000
3,000
3,800
(avg. November day)
Full electrification of heat:
what you have to believe…
~150 GW of heat electrified =
Nuclear?
~45 sites at 3.3GW / site
Renewables?
~30,000 wind turbines at
5MW / turbine
3,600
2,000
3,400
1,000
0
1
62
122
182
242
303
363
Days
2050 electricity (inc. electrified transport) 2050 heat
CCS?
~75 sites at 2GW / site
Solar PV?
~40m homes at 17m2 / home
Interconnectors?
~150 BritNed’s at 1GW each
…even after significant energy efficiency
6
The transmission delivery
challenge (2020)
existing electricity network
interconnectors
potential wind farm sites
potential nuclear
sites
Norway
Ireland
Netherlands
Belgium
France
France
7
Infrastructure challenge
10’s km of new cable tunnels
100’s km new HV cable
10’s new Substations
100’s new transformers
100’s km of new OHL circuits
1000’s km full refurbishment
Nearly 1000km of new transmission pipe
new compressor stations
new compressor units
2000 km gas distribution mains
replacement per year
Biogas connections….
Right Footprint – The environmental
sustainability challenge
 Not exceeding the ability of the planet
to deal with our emissions without
reducing its capacity to do so in the
future
 Only using replaceable (organic)
resources at less than the rate that
they can be replaced and without
damaging biodiversity
 Only using irreplaceable resources in
a way that retains their value and
ensures that they remain available to
future generations
 Super sustainability: Put more back
than we take out – add to natural
capital and repair the damage done
by previous generations
Guiding Principles
 Operating as far as possible within closed loops, conserving and
enhancing natural resources
 Assigning a proper value to external impacts
 Integrating the concepts and tools for environmental sustainability into
decision making in an organisation-wide culture of sustainability
 Assessing aspects and impacts to focus on those of greatest importance
to business and stakeholders.
 Openly reporting performance and being held accountable
 Working with Government and civil society to create a regulatory and legal
environment that rewards sustainable decisions
Priority – Greenhouse Gas Emissions
Climate Change
Strategy
Reshaping energy
markets
Ensure National Grid
is a sustainable, low
carbon business
Agents for change
•Supporting Renewables
•Promoting decoupling
•Expanding energy
efficiency
Adaptation
•US and UK task forces
•EE programs and
educating customers
2020 and
2050 targets
•Carbon Budgets
•Executive Comp
•Carbon price
‘greening’
the business
•Fleet procurement, etc
•Employee engagement
Valuing External Impacts (GHG)
Carbon price
Price need to deliver
80% reduction across
society
£52/$83 per tonne
CO2(e)
Investment appraisal
assessment
Leadership information
to inform debate based
on lost opportunities
Investment appraisal
assessment and fund
Regulator supported
price and incentives
Linear to Circular Assets
Consumption of resource
Raw Materials
Manufacture
Into
products
Procure
Loss of
valuable
resource
Disposal
(to be avoided)
Stores
inventory
Issue to site
Project
delivery
Asset life
£/$ value
Recycle
Refurbish
Value
preservation
Commodity
availability
risk
s
Reuse
Grey
spares
Refurbishment
centres
a
a
collect
Removal from
service
Example – Meter Recycling
Community
 Investment in local industry / community
 Employment and development opportunities
via REMPLOY and young offender programme
 Localised sub contracted activities
Resources
 Expanded scope of reclaimed materials
Salvaged components reintroduced into supply
chain
Asset lifecycle optimised
Reduction in supply side resources
Increased yield via meter refurbishment
Efficient use of existing National Grid estate
Development of employees
Performance
Reputation
 Elimination of hazardous materials to landfill
 Reduction in carbon emissions
 £k100’s PA Increased revenue from
recycled material
 £m PA savings from meter refurbishment
 Savings of circa £k10’s PA from reuse of
salvaged components
 Best practice shared with industry players, energy
suppliers and internal stakeholders
 Visible Environmental investment in support of
National Grid Policies
Realisation of commercial opportunities for
National Grid
 Visible support of I&D agenda
 Internal recognition as centre of environmental
best practice
Example - Closing the loop in spoil
Landfill
Virgin Aggregate
Residual waste
Excavation
Approved Recycled
Aggregate
Recycling process
Reducing volume of excavation
by no dig or low dig options
Ideal case is to stop doing the red and
minimise the green per unit of main replaced
Current performance: 90% recycling road
spoil, saving Ca. £6m in landfill tax
Recycled
aggregate to
approved
specifications
Striving for Better Regulation
 Successful collaboration
between Environment Agency
and industry
 Better regulation initiative
 Delivered a solution not a
problem
 Delivered approximately £1m
in savings
Runcorn
Partington
(Hub)
 Environmental liability
managed
 Materials re-use of 66%
Prescot
Warrington
Employee Engagement