Questions and answers – six energy sources
Here you will find queations and answers about our six energy sources
What is the Energy Triangle?
Are there solutions that benefit all corners of the triangle without tradeoffs?
Is any corner of the triangle more important than the others?
Why does Vattenfall’s energy mix look the way it does?
Coal power
Why is coal power continuing to represent an important part of Vattenfall’s energy portfolio?
What is Vattenfall’s strategy for handling CO2 emissions?
Is CCS (carbon capture and storage) a realistic technology?
Will CCS become commercial?
How is Vattenfall handling the negative effects from lignite mining activities in Germany?
Nuclear power
Does Vattenfall plan to build new nuclear power?
How can you ensure that nuclear plants are safe?
How is spent nuclear fuel managed?
How is nuclear technology developing?
Hydro power
Why doesn’t Vattenfall build more hydro power to replace coal and nuclear?
Why is the share of hydro power in Vattenfall’s energy mix expected to fall?
Which investments in hydro power is Vattenfall planning?
How does hydro power impact the environment?
How far away from becoming a commercially viable energy source is wave power?
Wind power
Why doesn’t Vattenfall build more wind power to replace coal and nuclear?
What growth opportunities does Vattenfall see for wind power?
Which are the main challenges for wind power?
Biomass
Which are the main advantages of biomass?
Is biomass sustainable?
How can biomass be used to reduce CO2 emissions when CO2 is emitted during combustion?
Which opportunities does Vattenfall see for biomass?
Which are the main challenges for biomass?
Natural gas
Why is natural gas a priority area for investment for Vattenfall when it is a fossil fuel?
Which are the main challenges for natural gas?
How can natural gas be competitive when it is more expensive than other fossil fuels such as coal and oil?
What is the Energy Triangle?
The energy triangle is an illustration of the balance between the three key dimensions needed to supply society with its energy needs: competitiveness, security of supply, and environment and climate. The energy triangle illustrates the pros and cons of each energy source and the need for a mix of complementary energy sources in power production. Currently, no single energy source is optimal from all dimensions; all energy sources are needed.
Are there solutions that benefit all corners of the triangle without tradeoffs?
Improving one dimension of the triangle often entails making sacrifices along another dimension: Sourcing cost-competitive energy may sometimes increase a country’s dependence on unstable imports. Delivering reliable electricity has often required the use of fossil fuel sources, with their associated environmental impacts. And managing environmental impacts frequently means higher costs.
"Win-win-win" solutions exist, notably improved energy efficiency. Technology development and better-designed electricity networks can deliver more. But today, creating a balance between the three corners of the triangle still requires a mix of complementary energy sources.
Is any corner of the triangle more important than the others?
Where the balance between these three dimensions should be is in the end a societal and political decision. For Vattenfall, it is important to find a balance within that framework and deliver as expected on all three dimensions.
Why does Vattenfall’s energy mix look the way it does?
Vattenfall’s energy mix reflects the energy mix in the countries in which Vattenfall operate. Within this framework, Vattenfall continuously strive to improve its operations by making them cleaner, safer and more efficient. To supply society with its energy needs, all energy sources in the energy mix are needed. Vattenfall’s approach is based on the inherent strengths and weaknesses found in each particular form of energy and on existing political and societal expectations.
Coal power:
Why is coal power continuing to represent an important part of Vattenfall’s energy portfolio?
Coal is and will continue to be a cornerstone of the European energy system for the foreseeable future due to its economic attractiveness and characteristics that allow stable, secure large-scale electricity production. Countries such as Germany and Poland, are dependent on coal power to secure a stable energy supply for its citizens. As long as Vattenfall is active on such markets, coal will continue to constitute an important part of its energy mix.
However, Vattenfall is optimising its existing production portfolio and investing to improve efficiency and reduce the CO2 emissions of existing plants. Vattenfall will not build any new lignite- or hard coal-fired plants, either condensing plants or combined heat and power plants, until Carbon Capture and Storage (CCS) is a viable technology. The construction of the German Boxberg and Moorburg plants will be finalised. Vattenfall’s long-term target is to be climate-neutral by 2050.
What is Vattenfall’s strategy for handling CO2 emissions?
Vattenfall’s goal is to reduce its CO2 exposure from today’s 90 Mt/year to 65 Mt/year by 2020.
This will be achieved by:
- Divestments. The divestments are driven not only by Vattenfall’s intention to reduce its CO2 exposure, but are also focused on businesses where Vattenfall is not the most suitable owner. Divestments are expected to reduce exposure by 12 to 14 million tonnes per year.
- Replacing hard coal with biomass to achieve a reduction of 8-10 million tonnes. An xtensive biomass programme is underway and has already produced good results.
- Lower utilization rates of older coal fired plants and replacements of non-commercial plants with gas, biomass or CCS when commercially viable, can lead to a reduction of 12-14 million tonnes per year.
Due to the completion of the new power plants Moorburg and Boxberg, emissions will increase slightly the next few years, after which emissions will be gradually reduced through 2020.
Is CCS (carbon capture and storage) a realistic technology?
CCS technology is based on separating carbon dioxide from combustion gases and storing it in deep geological formations. The separation technology already works and Vattenfall is working to improve its effectiveness and cost. Focus for storage is on two specific types of formations: geological formations in which gas and oil have been safely stored for millions of years and, secondarily, saline aquifers. Naturally occurring accumulations of CO2 can be found in many places around the world.
The storage technology is nothing new; CO2 injection has long been used within the oil industry, where CO2 is pumped down into bedrock to extract oil from dwindling reservoirs. However, the technology for CO2 storage is only a few decades old. Therefore, much research is focused on verifying the security of storage sites.
Will CCS become commercial?
Opinions differ among researchers as to the potential of the technology. Still, it represents the only technological option to reduce CO2 emissions in countries that are expected to remain dependent on fossil fuels for the foreseeable future. Within EU, the development of CCS is considered a prerequisite to achieve the EU climate goals. The development of CCS also constitutes an important part of Vattenfall’s CO2 reduction plan. In our new strategic direction it is stated that Vattenfall will not build any new coal-fired plants until CCS is a viable technology.
While there is still some way to go before CCS can be commercially used, the number of demonstration plants is growing. Vattenfall inaugurated its first CCS pilot plant at Schwarze Pumpe, Germany, in September 2008, which was the first of its kind.
However, a number of social, legal, and financial issues must be solved along the way both on a national and European level. One key challenge is social acceptance. Vattenfall is collaborating with various stakeholders to develop the requisite social, legal and financial conditions.
How is Vattenfall handling the negative effects from lignite mining activities in Germany?
In addition to coal power plants, Vattenfall owns and operates lignite mines in Lausitz, eastern Germany. In that region, Vattenfall is an important employer and lignite plays a central role in the region’s industries and economic development. Since surface extraction from opencast mining, a technique used when the coal lies close to the surface, has large effect on the landscape and environment, re-cultivation is required for former mining areas. Read more about re-cultivation in Vattenfall’s CSR report 2006.
Nuclear power:
Does Vattenfall plan to build new nuclear power?
Nuclear power produces a secure supply of energy, is economically competitive and has low CO2 emissions. Vattenfall therefore considers nuclear power to be a crucial part of the energy system both today and for the future. Nuclear power is an important component in Vattenfall’s efforts towards a carbon-neutral operation as well as the EU’s 2020 goals to reduce climate impact. Vattenfall aims to maintain its current nuclear power operations in Sweden and Germany and to keep its growth options open for the future.
How can you ensure that nuclear plants are safe?
Safety is an important element of nuclear-power development and today’s safety systems are the result of long, intense research. This includes developed safety routines for nuclear power plants employees, the development of new, more durable, materials that encapsulate the fuel pellets in the reactor and improvements of the systems that prevent or mitigate accidents.
Both national authorities and international co-operations, such as IAEA, have been created to secure safety and safety provisions for nuclear plants. Read more about how Vattenfall works with safety in the CSR report 2009.
How is spent nuclear fuel managed?
Spent nuclear fuel accounts for 99 per cent of the radiation from nuclear waste, but only around five per cent of the total volume produced nuclear waste. Since the half-life of high-active waste is very long, the spent fuel must be isolated for at least 100 000 years. The internationally preferred option for final storage is a geological repository located several hundred meters underground. Sweden, Finland and France are leading the way and licensing processes for such final repositories.
How is nuclear technology developing?
The development of nuclear technology is divided into generations: generation III represents the current reactors, which is unable to use more than a small portion of the available fuel. Generation III+, which connects modern technology with the technology of tomorrow is under construction. The next step of technology development will be generation IV, which represents the technology of the future and is expected to be put into operation in twenty to thirty years. The primary objectives of the generation IV technology are to increase fuel efficiency, reduce long-lived nuclear waste and facilitate the reprocessing of high-level waste from existing reactors. This will minimize the burden on future generations.
Hydro power:
Why doesn’t Vattenfall build more hydro power to replace coal and nuclear?
Hydro power is a renewable energy source that is economically attractive, provides security of supply and produces very few emissions. Unfortunately, there are few opportunities to build more or to expand existing hydro power plants. In countries with large differences in altitude and suitable watercourses, such as Sweden and France, hydro power is already well developed. However, Vattenfall is exploring growth options through acquisitions in central and Western Europe. One interesting market is France, which is currently opening up to competition. Expanded use of small-scale hydro power and new hydro power technologies represents other growth opportunities.
Why is the share of hydro power in Vattenfall’s energy mix expected to fall?
The share of hydro power in Vattenfall’s electricity production is expected to fall to just over half of its current level by 2030. This is not due to a reduction in hydro power production, but to the fact that hydro power is already well developed. Increases in electricity production will therefore come primarily from other types of energy while the produced volume for hydro power will be stable at current level. The result is a decreasing share of hydro power even though the produced volume is the same.
Which investments in hydro power is Vattenfall planning?
Vattenfall is mainly investing in modernising and upgrading existing hydro power plants, we are also conducting a comprehensive dam safety programme. Safety aspects are primarily aimed at preventing dam leakage and rupture. Vattenfall is committed to hydro power and intends to explore growth options through acquisitions in Central and Western Europe. One example is France, which is currently opening up to competition.
How does hydro power impact the environment?
Hydro power has very little impact on the climate in the wider perspective. But on the surrounding natural environment close to the plant and watercourse, it has major impact. When constructing dams, it impacts the water flow and animal and plant life in the river. Power companies, such as Vattenfall, make great efforts to minimise this impact and conduct intense research focused on ways to protect the ecosystems. As a result from such efforts, Vattenfall is Sweden’s largest fish farmer, releasing almost two million salmon, whitefish and sea trout into rivers each year.
The local environmental impact can cause local conflicts and the preservation of unspoiled watercourses has often been the strongest argument against the expansion of hydro power.
How far away from becoming a commercially viable energy source is wave power?
Wave power is considered to have a great potential. Vattenfall is involved in several research projects on wave power in the seas off Ireland, Norway and Sweden, and is following developments in many other countries. Vattenfall expects wave power to be commercially viable within ten to fifteen years and that it will account for approximately eight per cent of Vattenfall’s electricity production by 2030.
Wind power:
Why doesn’t Vattenfall build more wind power to replace coal and nuclear?
Though wind power has no fuel costs, total cost per produced kilowatt hour is high due to significant investments costs and the need for network capacity investments for new wind farms. Therefore, wind power is largely dependent on support systems. Another aspect is that electricity generation from wind power is dependent on available wind: excessively high or low wind speeds causes temporary stops in generation. This makes good wind position crucial in order for a wind farm to be profitable and reliable. Wind variability also means that today’s electricity networks can only accomodate a certain amount of wind and still provide reliable electricity.
What growth opportunities does Vattenfall see for wind power?
Today, wind power is the fastest growing form of energy in the EU; during 2009 installed capacity increased with 32 per cent and accounted for 39 per cent of total newly-installed electricity production capacity. Wind power has a key role in the achievement of the EU’s 20-20-20 targets. Vattenfall sees significant growth opportunities within wind power, though profitability is dependent on support systems. Vattenfall will nearly double its wind power generation to 4 TWh by 2011.
Which are the main challenges for wind power?
Wind power has a bright future but faces some challenges:
- Simplifying the process for obtaining permissions without sacrificing dialogue with interested parties.
- Operational security, a wind turbine must produce electricity during most of its lifetime.
- Availability, the amount of time a wind farm generates electricity
- Minimising generation disturbances
- Developing future electricity grids, such as smart grids
Biomass:
Which are the main advantages of biomass?
Biomass can help significantly reduce CO2 emissions from coal power plants. It is also a strong energy source from a security of supply aspect since it can be converted into stable, reliable electricity and heat supply. However, supply security for large-scale use of biomass is still uncertain.
Is biomass sustainable?
Biomass is a young and undeveloped energy source for large scale electricity production, which means that long-term effects from large-scale production are not yet known. What we know is that large-scale production cultivation will require large land areas; this might force down food production and endanger natural forests and biodiversity. Another critical aspect is securing climate-neutrality. The challenge lies in ensuring a sustainable value chain that does not negatively impact environmental and social conditions. This requires laws, regulations and legal frameworks on an international level.
How can biomass be used to reduce CO2 emissions when CO2 is emitted during combustion?
CO2 is emitted into the atmosphere when biomass is burned, but when the biomass grows it binds CO2 through photosynthesis. Properly managed biomass is therefore carbon-neutral over time. However, biomass production methods and transport are other factors that impact CO2 emissions. Therefore, it is important to take the entire value chain into consideration.
Which opportunities does Vattenfall see for biomass?
Biomass plays a central role in Vattenfall’s efforts to reduce its CO2 exposure. Vattenfall will make significant biomass investments during 2009-2013. These investments will be made in new power plants and in increasing the amount of coal co-firing in existing plants. Coal co-firing refers to replacing coal with biomass in coal-fired power plants.
Today it is more expensive to use biomass than other energy sources such as coal and gas. However, the global biomass supply chain is developing and technological and logistical improvements will bring down prices at the same time as increased CO2 price will improve its economic competiveness.
Which are the main challenges for biomass?
If biomass is to increase its share in the energy mix, today’s use of waste and residues will not be enough. It will be necessary to find suppliers that can provide large amounts of biomass, which at the same time meets sustainability and affordability requirements. This highlights the need for establishing a standardised global system for trade and certification. Since increases in biomass trade will most likely mean that fuel is produced far from where it is consumed, production chain quality assurance will be extremely important going forward.
Natural gas
Why is natural gas a priority area for investment for Vattenfall when it is a fossil fuel?
Natural gas is economically attractive, it provides flexibility and security of supply. It has lower specific CO2 emissions and heavy metals than other fossils fuels. Therefore, increased use of natural gas is one way to reduce CO2 emissions while maintaining a stable energy supply at a reasonable price as a transitional solution.
Which are the main challenges for natural gas?
Domestic European gas extraction is steadily declining. To maintain current consumption levels, the EU will have to increase its import of natural gas. Today, several countries in Eastern Europe are dependent on imports from Russia. However, new options will emerge, most likely from countries in Asia, Northern Africa and Middle East. There is a political will to diversify natural gas imports, but it is difficult for individual countries to achieve diversification on their own. This is one of the driving forces behind a common energy policy within the EU.
How can natural gas be competitive when it is more expensive than other fossil fuels such as coal and oil?
Natural gas power plants have relatively low capital and maintenance costs, but the gas itself is expensive if you compare to other fuels. However, it is becoming more expensive to emit CO2 due to taxes, fees or quotas on CO2 emissions. These systems can make natural gas more expensive than renewable energy sources, but less expensive than other fossil fuels.
Jump directly to:Top of text , Search , Main navigation , sub navigation , meta navigation , Top of page
