CSR priorities for the Group are to:

• minimise the Group’s impact on the environment through environmentally responsible management and adherence to relevant statutory and regulatory standards; and
• contribute to a reduction of the impact of energy-related activities on the environment through the promotion and provision of renewable energy options and energy efficiency measures.

The Group’s environmental policy commits the Group to protecting the environment and is designed to ensure compliance with all relevant legislative and regulatory requirements. Where practical and economically viable, the Group seeks to develop standards in excess of such requirements. Areas of particular focus include the responsible management of emissions, waste and recycling, measures to protect against oil pollution and the promotion of energy efficiency.

NIE

NIE is working with Department of Enterprise, Trade and Investment (DETI) and Northern Ireland Authority for Utility Regulation (NIAUR) on a long-term strategy for the development of the transmission and distribution network to support the connection of additional renewable generation.

NIE and Powerteam are certified to ISO 14001:2004 for their environmental management system. During the year, the British Standards Institute confirmed full compliance with the standard. In the 2008 environmental management survey conducted by ARENA Network in Northern Ireland, NIE’s results were above both the Northern Ireland and utilities sector averages. NIE has a full time environmental compliance officer and designated auditors in its relevant operations.

During the year NIE introduced further waste management initiatives to increase the level of recycling throughout its operations and reduce the burden on landfill.

The NIE Sustainable Management of Assets and Renewable Technologies (SMART) programme is part of the regulatory framework agreed with NIAUR. The programme supports emerging renewable energy technologies and encourages a sustainable approach to the provision of network infrastructure to meet customer demand in Northern Ireland. During the year NIE committed over £0.26m under the SMART programme to support photovoltaics, biomass and wind and hydro-electric power projects. In addition NIE contributed £0.5m to the 1.2MW tidal turbine project, ‘Seagen’, in Strangford Lough.

The Group is committed to a programme of research and development appropriate to its businesses. As part of its price control arrangements under RP4, NIE has committed to a £1m Sustainable Networks Programme to fund research focused on identifying the best long-term options for development of the NIE network to accommodate Government objectives on sustainability. Over the last two years £0.4m has been provided to progress a number of projects aimed at facilitating the connection of increased levels of distributed renewable generation to the network.

NIE Energy Supply

An ESCo project team within NIE Energy Supply oversees sustainable energy activities and considers business opportunities in this emerging field.

During the year NIE Energy Supply managed a £5.9m energy efficiency programme aimed at reducing CO2 emissions and alleviating fuel poverty in Northern Ireland. A total of 18 energy efficiency schemes was implemented with estimated lifetime reductions of 550GWh in energy demand. This represents an estimated 400,000 tonnes of CO2 savings and customer benefits in excess of £40m over the lifetime of these measures. Many of these schemes provide whole house energy efficiency solutions and are focused on the most vulnerable customers.

In addition, through commitments in NIE Energy Supply’s price control, a further £9m of lifetime savings to customers has been delivered via investment in energy efficiency measures during the last two years. NIE Energy Supply has also continued to offer EcoEnergy, its ‘green’ electricity tariff, which is currently used by over 21,000 customers.

In conjunction with the Department for Social Development, NIE Energy Supply has developed and funded a ‘Hard to Treat’ homes pilot initiative The £0.5m programme (of which £0.2m was committed by NIE Energy Supply) aims to provide non-standard energy efficiency and micro generation options for solid wall homes which are not on the gas network.

Under the SMART programme, NIE Energy Supply completed the ‘Switched on Schools’ programme to install solar photovoltaics in 43 rural schools across Northern Ireland. The programme received two awards during the year: the UK Nemex ‘Renewables Innovation Award’ and the Sustainable Ireland ‘Best Use of Renewable Energy Sources’ Award.

During the year over 12,000 domestic customers received a free home energy check and tailored advice on energy efficiency, offered in partnership with the Energy Saving Trust Advice Centre.

NIE Energy Supply’s website www.nie-yourenergy.co.uk provides a wide range of information and advice on energy efficiency and renewable energy.

VP&E

Huntstown 1 and 2 operate in compliance with their Integrated Pollution Prevention and Control (IPPC) licences, with reporting on emissions based on calendar years. For calendar year 2008, Huntstown 1’s emissions of NOx, SO2 and CO2 were 537 tonnes, 1.8 tonnes and 896,294 tonnes respectively. Huntstown 2’s emissions were 580 tonnes, 7.63 tonnes and 1,077,095 tonnes respectively. Through the operation of their respective IPPC licences, Huntstown 1 and 2 comply with the emission limits for NOx, SO2 and dust under the Large Combustion Plant Directive. The emissions from these highly efficient gas-fired plants are displacing much greater emissions from coal and/or oil fired generating stations.

Huntstown 1 and 2 have both achieved excellent availability levels during the year successfully meeting a flexible despatch profile arising from the needs of intermittent renewable generating sources and all-island system reserve requirements.

Huntstown 1 and 2 have ISO 14001:2004 certification for their environmental systems and management processes.

Energia is a significant contributor to the sustainable energy agenda in both Northern Ireland and the RoI. Its renewable portfolio currently offsets the emission of over 150,000 tonnes of CO2 per annum.

Energia continues to provide energy efficiency products and services to its large energy customers in Northern Ireland through the Customer Energy Efficiency Levy approved by NIAUR. During the year a total of 28 schemes were implemented with estimated lifetime reductions of c120GWh in energy demand. This represents an estimated 48,000 tonnes of CO2 savings and customer benefits of over £11m over the lifetime of these measures.