Page 65 - agl036_D9

Basic HTML Version

Climate
change
Sustainability Performance Report 2012 63
Introduction
AGL’s goal is to invest in cleaner energy forms to reduce the greenhouse
gas intensity of energy across the supply chain.
Both major Australian political parties support reducing greenhouse
gas emissions by 5% relative to 2000 levels by 2020. While there
is currently disagreement about the policy mechanism for reducing
emissions, it is clear that investment in new infrastructure needs
to be considered within the context of broad political support for
reducing greenhouse gas emissions. That said, existing infrastructure
is likely to be used well into the future and our investment in
incumbent efficient generation such as the Loy Yang A Power
Station is necessary to ensure security of supply while continuing to
invest in new renewable and low emission generation for the future.
The two key focus areas for the Climate change chapter of this
report are carbon exposure and sustainable generation sources.
Carbon exposure:
Risks to AGL presented by climate change
mitigation policies (for example, carbon pricing) could become
significant over time. To pre-emptively manage these risks and
work towards minimising exposure, the emissions intensity of
new electricity generation plant built by AGL is included as a key
performance indicator. Underpinning this indicator is a range of
strategies, including responding to the introduction of a carbon
price. AGL’s greenhouse footprint is also included in this section
of the report.
Sustainable generation sources:
The opportunities for AGL
in cementing a leadership position in low greenhouse gas emitting
energy generation and supply are significant. AGL continues to
be Australia’s leading investor in renewable energy, leveraging
off existing policies and positioning the company for future value
realisation as the costs of carbon become accounted for in the
energy supply chain.
Climate change
Carbon exposure
Operational
Footprint
Equity
Footprint
Energy Supply
Footprint
Renewable
energy
Carbon price
Research,
development and
deployment
Sustainable generation sources
Performance Summary
Vision
Target FY2012
Performance FY2012
Target FY2013
Carbon exposure
Continuing to lower
the emissions intensity
of AGL.
Intensity compared to
Australian electricity average*:
>50%
below
Intensity compared to
Australian electricity average*:
>60%
below
Emissions intensity of
investments in new
generation capacity lower
than 0.7 tonnes per MWh
2
.
Sustainable generation sources
Australia’s largest
renewable energy
company.
Renewable proportion
of operated generation
capacity**:
48%
Renewable proportion
of operated generation
capacity**:
48%
Increase renewable investment
capacity to 1,740 MW
1
.
Notes
1 As at 30 June 2012, AGL had 1,320 MW of renewable capacity.
2 Refer to page 74 of the report for further information regarding this target.
* Figures refer to the sent out greenhouse gas emissions intensity of generation (scopes 1 and 2) from electricity generation assets over which AGL had operational control
during FY2012. Generation from AGL Loy Yang is not included in these figures for either the period prior to, or following the AGL acquisition (generation from AGL Loy Yang
will be included from FY2013 onwards). Generation assets that are not operated by AGL are not included (for example, where AGL has a right to electricity output or power
purchase agreements with power stations operated by other organisations).
** Figures refer to the capacity of electricity generation assets over which AGL had operational control, as at 28 June 2012 prior to the Loy Yang acquisition. The renewable
component includes the installed capacity of hydro, wind, solar, biomass, biogas and landfill gas generation assets operated by AGL. Generation assets that are not operated
by AGL are not included (for example, where AGL has a right to electricity output or power purchase agreements with power stations operated by other organisations).