Diversification of the energy mix

Every electricity generation technology has both positive and negative aspects. We acknowledge that there is no “silver bullet” and that we need access to all available options to make significant cuts in greenhouse gas emissions in the longer term.

Although the amount of CO₂ that we emit will increase in the short to medium term, we are committed to assessing options to retard that rate of increase and, ultimately, begin to decrease it. Our intent, therefore, is to reduce our relative CO₂ (Mt CO₂/MWh), footprint until 2025 and, thereafter, to continually reduce absolute emissions in support of national and global targets. This will be done by investing in lower carbonemitting technologies as these technologies become available and meet the feasibility requirements.

Our capital expansion plan provides a significant opportunity to change our energy mix and this can be achieved by increasing the nuclear, gas, renewables and clean coal components. Plans include increasing the renewables component to at least 1 600MW by 2025. Clean coal technologies are already being applied to the coal-fired power stations under construction.

In the longer term, our existing power stations will reach the end of their lives and be replaced with more advanced and less carbon-emitting technologies, further changing our energy mix and carbon intensity.

We have modelled the potential contribution of demand- and supply-side initiatives to the future reduction of CO₂ emissions. A possible future scenario up to 2025 is illustrated in the figure below. With electricity supply growing at a potential 4,4% per annum and traditional coal-fired technologies remaining at a high percentage of the electricity generation mix (approximately 90%), CO₂ emissions from electricity generation would more than double over the next 20 years. Through the implementation of several energy efficiency and diversification options, this increase can be limited. The potential contribution of the energy efficiency and diversification options, considered in this scenario, is indicated by the different coloured “wedges” in the graph below. These options show how we would retard the rate of emissions growth from the “business as usual” line to the new emissions base line should we realise all the wedges.

Note that the technical and financial viability of these options is continually being re-assessed.

We continue to model scenarios based on technology choices to determine the most optimal way of reducing emissions. This work will continue in the next year and will continue to inform our diversification strategy.

Click here for detail CO2 emissions scenarios from 2025 to 2050.

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