Annual Report - EDP

: performance :3.4.1. managementsystemsIn its environmental policy EDP is committedto the constant improvement of its environmentalperformance, particularly the prevention ofpollution and minimisation of its impacts, meetingthe requirements of environmental legislationapplying to the different activities of the company,as well as other voluntary commitments it hasundertaken.A corporate environmental policy system(SIGAC) has been in place and certified, since2008, according to ISO 14001:2004, the scopeof which covers “the corporate management ofenvironmental policies and strategic environmentalplans, environmental information and theenvironmental performance of the EDP Grouporganisations”. The system establishes and fostersalignment within the group and the objective of themaintenance and extension of the environmentalcertifications for installations and activities, onthe basis of the ISO 14001:2004 standard and theEuropean Commission’s Eco-Management andAudit Scheme (EMAS).Thus, in addition to maintaining the alreadyexisting ISO 14001 and EMAS certifications, thecertification and registration plans of the variousgroup companies were complied with, overall.The effort invested in environmentally certifyingthe Group installations and activities is focusedon activities in operation, with design andconstruction and decommissioning being managedin accordance with their different specificities andcontrolled in accordance with the SIGAC.Operational objectives and targets with respectto the environmental certification systems areset annually and incorporated into the Group’sSustainability and Environment Operational Plan.These objectives and targets for all generationplants with EMAS registration can be foundat www.edp.pt> sustainability> environment>environmental management, in the respectiveenvironmental statements.3.4.2. climate changeEDP maintains its strong commitment tocombating climate change on two different fronts:mitigation and adaptation. In the area of mitigationone can highlight for 2012, on the supply side, theincrease in the installed capacity in hydroelectricand wind energy power stations (~700 MW) andthe decommissioning of fuel oil power stationsin Portugal. EDP has likewise been promotingenergy efficiency improvement initiatives andstrengthening the provision of energy services onthe demand side (see page 77).As far as adaptation is concerned, EDPconsolidated the Group’s climate risk managementstrategy and was also an active participant, inPortugal, in the National Adaptation to ClimateChange Strategy developed by the PortugueseEnvironmental Agency, which drew up the“Report of the Energy Sub-Group for a NationalAdaptation to Climate Change Strategy” underthe coordination of the Directorate General forEnergy and Geology.The year under review was characterised bya number of exogenous and marketcircumstances that had a significant impact onthe energy sector and a decisive influence on theenergy/environmental performance of the EDPGroup’s supply. These circumstances were:º º low rainfall in Portugal and Spain (witha Hydroelectric Production Index [HPI] of lessthan 50%), which affected the generation mixand called for the more intensive operationof other thermal power stationsEDP - Annual Report 2012º º the lack of an effective CO 2market, with pricesfalling heavily in 2011 and 2012 (up to €6/tonin 2012) due to a strong divergence betweensupply and demand, and affecting the order ofmerit for the entrance of power stations intothe electricity systemº º the low price of CO 2and coal in comparisonto natural gas, which has naturally beenreflected in the operation of the Iberian marketand the increase of atmospheric emissionsº º the economic and financial crisis in Europe,as well as the presence of the Troika (EC/ECB/IMF) in Portugal, leading to a contraction in theconsumption of electricity in the country (-3.6%).CO 2emission licensesIn the final year of what is known as the Kyotoperiod, a total of some 18 Mton (millions oftonnes) of CO 2emission licenses were allocatedto the EDP thermal power stations covered by theEuropean Union Emissions Trading Scheme (EU-ETS). Given the conditioning factors mentionedabove, EDP used up all its credits. Between 2013and 2020 the allocation of emission license willbe partially organised on an auction basis inaccordance with Directive 2009/29/EC, whichregulates the third phase of the EU-ETS.CO 2ALLOWANCES AWARDED TO THE GROUPIN 2012 (kt)PortugalspainPowerPlantsLicences RealAllocated Emissions PowerPlants63Licences RealAllocated EmissionsSines 5,833.3 7,785.6 Aboño 4,681.9 6,208.6Setúbal 1,119.0 17.0 Soto de Ribera 1,408.3 1,515.8Carregado 377.2 0.0Tunes 4.5 0.2 Soto 4 e 5 658.0 308.0Ribatejo 1,423.1 95.5 Castejón 627.4 322.3Lares 731.1 521.8H, CentralOviedo27.7 24.8Energin 226.0 260.7 EITOCogeneración20.3 19.8Soporgen 239.3 201.5 Tercia 52.9 66.1Fisigen 170.4 127.4 Intever 29.8 60.4Ródão 2.0 0.5 Sinova 52.9 66,1Mortágua 0.6 0.1Biogas yEnergía28.4 36.0Figueirada Foz4.8 0.5 SidergásEnergía314.1 314.1Constância 2.0 0.2 Tudela 28.4 17.3Total 10,133.2 9,010.6 Total 7,930.1 8,959.31 - Emissions from the Biomass power stations (Ródão, Mortágua, Figueira da Fozand Constância) are reported at 50%.2- Includes CO 2 emissions by the Sidergás and Aboño plants, which are fired by waste gases.(emission rights given by Arcelor, corresponding to real consumption).3- The values concerning the “CO 2 licences” ​differ slightly from the ones in note 48 (financialstatements) because the presented figures represent the best estimates at the date ofaccounts closing.In comparison to 2011, in which 16.9 Mton ofCO 2were emitted, there was a 6% increase inemissions in the context of the EU-ETS, whichcan essentially be put down to greater use ofcoal-fired power stations to meet consumptiondemand.For this very reason, the overall specificemissions for the EDP Group rose from 0.285tCO 2/MWh in 2011 to 0.323 tCO 2/MWh in 2012,thus distancing the company from the targetof 0.27 tCO 2/MWh set for the yearOne should notice that this target, which was setin 2005, was based on generation mix projectsthat took into consideration mean water years(HPI=1). Therefore, if 2012 had been an averageyear, hydroelectric generation in Portugal wouldhave increased by approximately 100% (-5,6 TWh)and we would have avoided the same amountof generation by thermal power stations, inparticular coal-fired power stations that featurein the base line of the load diagram. If onetakes into consideration an equal distributionof that drop in generation by the power stationsbelonging to EDP and the other companiesoperating in Portugal, one arrives at an overallCarregado thermalpower plant:decommissioning planCarregado Thermal Power Plant (710MW net installed capacity), equippedwith a conventional steam turbinetechnology, used, during its lifespan,fuel oil and natural gas. The Plantceased operation in March 2012.The undergoing DecommissioningPlan includes actions that aim atminimizing possible environmentalimpacts related with the closureof the Plant. These actions complywith applicable legislation, apply thebest practices and guarantee thefulfilment of every established safetyprocedures.Presently, there is no decisionregarding future use of both theterrain and the existing premises,which poses constraints tosubsequent works.As a consequence, the currentaction plan only addresses thedecommissioning phase, in order tolower associated risks, specificallyregarding environmental aspects.This phase is expected to beconcluded by the end of the firstquarter of 2013.Once decided future use of thePlant’s grounds and buildings,following stages, for environmentalrequalification, will be preceded byan asbestos presence and soil andunderground water contaminationassessment studies.