Green group fires up energy firms in row over renewables

By Tim King

Date: 09/12/04

THE electricity industry has hit back at the environmental campaign group the World Wide Fund for Nature (WWF) for its latest efforts to persuade power-generating companies to switch to renewable sources.

Last week WWF published its ranking of 72 electric power companies in 18 industrialized countries. The rankings are a belligerent attempt firstly to get power companies to disclose more information about how they source their power and, secondly, to get them to switch to more environmentally friendly forms of generation.

The Spanish company Iberdrola emerges top of the list, chiefly because of its present and future commitment to use renewable energy. Ranked second is an American company, FPL Group. Third is the UK's Scottish Power.

But Eurelectric, which represents the major generating companies in Brussels, criticized WWF's working assumptions as "simply unfair".

The trade organization for the electricity industry is a federation of national organizations.

Their members include firms which come out of WWF's analysis with varying results.

The World Wide Fund for Nature criticizes RWE, the number one in the German electricity market, because of its investments in new coal-fired power stations. WWF argues that these investments are supporting the most carbon-intensive form of fossil fuel that is most damaging to the climate.

Among the European companies scrutinized, the lowest ranked is another Spanish company, Union Fenosa.

Vasco de Janeiro, an advisor at Eurelectric, said: "Our impression is that the report is focusing on investment made by companies on new renewables and combined heat and power. The report is ignoring that almost 50% of electricity produces in the EU is carbon dioxide-free. 30% is nuclear and 20% from renewables."

WWF does not regard nuclear as a solution to climate change and it favours new renewables (principally wind energy and biomass) over hydro-electric schemes. Hydro accounts for 90% of the EU's current renewable energy generation.

Eurelectric also criticizes the report because of gaps in the information. WWF admits that its ranking efforts were hampered by power companies' reluctance to answer questions about their sources.

The study looks at companies from Russia and from 17 of 30 countries from the Organization for Economic Cooperation and Development. The EU countries included are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Portugal, Spain, Sweden and the UK.

WWF justifies its specific campaign because "the power sector is the biggest single polluter of greenhouse gases, responsible for 37% of carbon dioxide emissions from the burning of fossil fuels".

In Germany, WWF is focusing particularly on RWE, arguing against the evils of coal-fired power plants. In Canada, WWF is concentrating on the province of Ontario, where there is a heavy reliance on coal-fired power generation.

In Italy, the campaign will concentrate on opposing the construction of new coal-fired power plants. In Poland, the plan is for an education campaign focused on high school students. In 18 months the Polish market will be opened up to permit the purchase of 'green' electricity. In the Netherlands, the challenge is to maintain market share.

More than 40% of Dutch households currently purchase 'green' electricity but prices are rising.

WWF view of energy choices for production of electricity

• Coal: the most carbon-intensive fossil fuel. Produces 70% more carbon dioxide emissions compared to natural gas for the same energy output.

Still worse than coal is brown coal or lignite. This is found in sizeable quantities in east Germany and Poland;

• natural gas - combined heat and power. Not a renewable fuel but relatively efficient compared to coal. Should be "a bridging technology" for the next decades until renewable energy can meet energy needs;
• oil: not a major source of power-generation. Inefficient and not renewable;
• nuclear: high risks and high costs. Nuclear power is not an alternative to fossil fuel nor a solution to climate change.

Eurelectric, the Union of the Electricity Industry, criticized the environmental group WWF's ranking of power companies which was aimed at persuading power-generating companies to switch to renewable sources.