Sustainability Report 2009 - BKW Energie · Business customers 23,016 20,600 19,400 Sales partners...

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BKW GroupSustainability Report 2009

BKW FMB Energy Ltd.Viktoriaplatz 2CH–3000 Berne 25Tel +41 31 330 51 11

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With revenue of CHF 3,593 million reported in 2009, the BKW Group is one of Switzerland’s leading energy pro-viders. The company employs more than 2,800 staff and covers all aspects of energy supply, from electricity pro duction and transport to trading and sales. BKW delivers electricity to more than a million people, both directly as well as indirectly through its sales partners.The BKW production portfolio covers hydroelectric power plants, a nuclear power plant, a gas-fired combined-cycle power plant (CCGT), and new renewable energy plants. Today BKW is the leading producer of electricity from photo-voltaics, wind power, small hydroelectric power plants and biomass.

BK

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[email protected]

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With revenue of CHF 3,593 million reported in 2009, the BKW Group is one of Switzerland’s leading energy pro-viders. The company employs more than 2,800 staff and covers all aspects of energy supply, from electricity pro d- uction and transport to trading and sales. BKW delivers electricity to more than a million people, both directly as well as indirectly through its sales partners.The BKW production portfolio covers hydroelectric power plants, a nuclear power plant, a gas-fired combined-cycle power plant (CCGT), and new renewable energy plants. Today BKW is the leading producer of electricity from photo-voltaics, wind power, small hydroelectric power plants and biomass.

Financials

CHF million 2009 2008 2007

Total operating revenue 3,592 3,496 2,814

Balance sheet total 6,519 5,989 5,868

Net profit for the year 299 139 227

Salaries and operational services 316 322 328

Payments to investors 128 149 145

Taxes, charges, levies to public authorities (expense) 157 90 105 g Details are provided in the 2009 Annual Report and 2009 Financial Report.

Electricity production

GWh 2009 2008 2007

Switzerland Water 3,914.1 3,872.8 3,784.7

Wind 8.1 9.0 9.7

Solar 2.0 1.9 1.7

Biomass (solid and wet) 11.0 13.5 2.3

Natural gas (heat/power cogeneration) 1 2.1 2.3 2.2

Nuclear 4,339.9 4,323.8 4,267.9

France Nuclear 1,444.0 1,560.1 1,531.0

Germany Wind 17.4 4.2

Italy Water 137.9 139.0 89.8

Wind 2 34.9

Natural gas 3 648.2 375.1

Total 10,559.6 10,301.7 9,689.4

Share of renewables 39.1% 39.2% 40.1% 1 sol-E Suisse AG: Heat from the heating system is used to generate electricity. 2 Fortore Energia Spa. (Italy) BKW stake 33%. Disclosed in Annual Report as a financial interest, since < 50% 3 Credited energy volume (control energy)

Number of customers

In customer numbers 2009 2008 2007

Switzerland Private customers 313,586 319,000 307,800

Business customers 23,016 20,600 19,400

Sales partners 124 126 119

Germany Private customers 90 62 46

Business customers 60 54 74


Italy Private customers 0 0 0



Primary energy consumption

GJ 2009 2008 2007

Switzerland Natural gas Property BKW FMB Energy Ltd. 2,453 2,004 220

Heat production Consolidated Group companies 1 9,117

Heating oil Property BKW FMB Energy Ltd. 0 1,959 3,327

Consolidated Group companies 2 1,645


Fuels Vehicle fleet BKW FMB Energy Ltd. 4 15,537 16,392 16,074


Emergency power generator 2,067

Germany

Italy Natural gas Electricity production Purchased 3,780,000 3,503,098 0

Total purchased 4 3,862,070 3,523,389 19,621

Total resold 3 3,822,391 3,503,098 0

Consumption 4 39,679 20,291 19,621

Consumption excluding consolidated Group companies 17,990 20,291 19,621

1 sol-E Suisse AG 2 Arnold AG 3 According to energy balancing rules, all primary energy generated during production processes is passed on 4 Corrected prior-year figures

Secondary energy consumption

kWh el. energy 2009 2008 2007

Electrical energy Real estate, head office 3,278,753 2,766,765 2,432,430

Regional offices 2,597,545 2,892,469 2,809,727

Substations and control centres 7,153,764 8,242,144 8,318,932

Production facilities 1 12,499,256 797,877 860,757

Group companies 2 513,310

Heat pumps 3 1,772,419

Heating 3 Heat pump (resold) 5,210,701

Total purchased 27,815,047 14,699,255 14,421,846

Total resold 5,210,701 0 0

Total own consumption kWh 26,042,628 14,699,255 14,421,846

GJ 93,753 52,917 51,919 1 Change in recording method due to installation of additional meters to measure own consumption at Mühleberg nuclear power plant. Change in accounting methods for Trading/Sales 2 Arnold AG 3 Passed on to customers, consolidated Group company sol-E Suisse AG

BKW Group Sustainability Report 2009

Publishing Details

ConceptBKW Group CommunicationBKW Corporate Development

Texts, editorial teamBKW Corporate Communications

LayoutEclat AG, Erlenbach ZH

PhotographyBKW archive pictures

PrinterJost Druck AG

This sustainability report is printed in German and French and is available online in German, French and English. The printed German version is authoritative.

Facts & Figures 2009BKW Group

Jost Druck AG uses 100% 1to1 energy water star green energy generated by Aarberg hydroelectric power plant.

937–53460–0510–1065Climate neutral print by www.jostdruckag.ch

02 Foreword 04 About this report 05 Sustainability for the BKW Group 08 Energy supplies 18 Resources 26 Forward-looking solutions 28 Partnerships and dialogue 34 Employees 38 Compliance and risk management 42 Summary and outlook 43 GRI Index 47 The BKW Group

This report complies with the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), the aim of which is to create conditions for the transparent and reliable exchange of sustainability information worldwide. GRI has checked this report and has qualified it as Application Level C. For more information, visit www.globalreporting.org

ContentsSustainability Report 2009


02 Foreword

The BKW Group1 is aiming for carbon-free production in the long-term. To this end, in addition to promoting energy efficiency, the company intends primarily to pur-sue further expansion of new renewable energies in Switzerland and abroad, renovate and expand hydroelectric power plants, and build a replacement for Mühleberg nuclear power plant.

g 1 The BKW Group comprises BKW FMB Energy Ltd. and its Group companies. For better legibility, these are all referred to in the report as “BKW”. Where the text relates specifically to BKW FMB Energy Ltd., this is expressly mentioned.

Foreword


03Foreword

Dear Customer, Partner, Employee and Interested Member of the PublicWe want to contribute to the further development of sustainability: an issue that is gradually gaining in importance. In our second Sustainability Report, we have summarised the key activities undertaken over the past year. Both internal and external stake-holder groups have influenced this report, which provides a bal-anced insight into the sustainability dimensions of economy, ecology and society. We are committed to stepping up dialogue in the future, and investing in a form of stakeholder management built on mutual respect.

Internal and external stakeholder groups expect us to act in the interests of sustainability. And we expect no less from ourselves. Through our strategy we endeavour to accord equal considera-tion to all three aspects of sustainability – ecology, economy and society. In so doing, the BKW Group ensures that it is capable of supplying electricity to its customers reliably, cost-effectively and ecologically while retaining the company’s profitability. In the long term we are aiming for a carbon-free production park. To this end, in addition to promoting energy efficiency, we intend prima-rily to pursue further expansion of new renewable energies in Switzerland and abroad, renovate and expand hydroelectric power plants, and build a replacement for Mühleberg nuclear power plant, so as to ensure a balanced, secure, long-term mix of different sources of energy.

Kurt Rohrbach CEO


04 About this report

Topics and prioritiesThe publication of the first Sustainability Report in June 2009 entailed a wide range of preliminary work, even before the sus-tainability concept had been comprehensively defined and estab-lished. Moreover, since the basis for the data was less than opti-mal, a corresponding definition of targets and measures was not yet possible. The 2008 Sustainability Report was the first step in our company’s bid to acknowledge its responsibility and demon-strate its commitment to further efforts in this area.

In contrast to the 2008 report, which set out our activities, the 2009 Sustainability Report is more strongly focused on specific sustainability projects and measures which were launched or completed in the reporting year. The relevant sustainability topics within the BKW Group were identified in a series of discussions and interviews, and an internal dialogue on sustainability was launched within the Group.

While this report also lacks certain targets which have not yet been statistically defined, we are confident that we will be able to communicate the sustainability management initiative launched in January 2010 in our next Sustainability Report. This will include concrete objectives and implementation measures focusing on the areas which are key to our activities.

Scope of the report and basis for dataWhile this report primarily covers the activities of BKW FMB Energy Ltd. and its Group companies (BKW Group), it also includes relevant information from our minority interests. For example, minority interests and purchase agreements account for around 90 percent of our carbon emissions and more than 50 percent of our electricity production figures. To enable a com-parison with the BKW Group’s annual and financial report, con-solidated financial and energy production data are presented for the entire BKW Group.

This sustainability report covers the 2009 calendar year, which coincides with the financial year. From now on, BKW will publish an annual report on its progress in the area of sustainability.

About this report


05Sustainability for the BKW Group

Sustainability is an important issue – one to which BKW has long been committed. The 2008 Sustainability Report has strength-ened our resolve to continue providing regular updates on our activities and to invest in the systematic promotion of sustainabil-ity. Because we take this matter seriously and want to report responsibly, we laid down the groundwork in 2009 and aim to intensify efforts in this area in the course of 2010 so that in future we will be able to report in accordance with sustainability man-agement criteria. Nevertheless, this report still contains a descrip-tion of activities without the respective strategic targets and to some extent without the corresponding data. For us, sustainabil-ity is primarily a question of creating a transparent data base which will enable us to define concrete targets, implement meas-ures and measure progress. All our efforts must consistently accord equal consideration to the three key pillars: economy,

ecology and society. Wherever we identify deficiencies, we will take every effort to rectify them. We formulate all measures in close cooperation with internal and external stakeholder groups with whom we intend to increasingly engage in dialogue. Need-less to say, these projects are in keeping with our corporate strat-egy. This consistent approach towards sustainability will help us to continue delivering energy to individual households and busi-nesses reliably, cost-effectively and ecologically.

Together we aim to show that sustainability is not an empty word at BKW, but a genuine reality and an opportunity.

gThe three classical sustainability dimensions (grey) and their particular relevance for BKW (orange).

Ecology

Econom

y Socie

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Sustainable resource management

Economic viability of decisions and projects

Energy security

Sustainability for the BKW Group

The 10-kilometer-long banks of the Aare backwater offer a natural habitat for a wide range of fauna and make for an attractive recreational area. BKW supports the conservation of this region and maintains the banks along the retarding section.

Sustainable energy supplies: for us this means producing and delivering power reliably, cost- effectively and ecologically.


08 Energy supplies

Wind 92.9%

Solar 2.7%

Biomass 4.5%

Our long-term objective is to supply our customers with carbon-free electricity. To this end, besides stepping up energy efficiency, we intend to pursue further expansion of new renewable energies in Switzerland and abroad, renovate and increase the number of hydroelectric power plants, and build a replacement for Mühle-berg nuclear power plant.

Safe, climate-friendly nuclear energy Nuclear power is an important pillar of our electricity production mix. Our position on nuclear power is in keeping with the Swiss government’s energy strategy. Electricity generated from nuclear power is low-carbon and cost-effective. Around 60 percent of the

electricity we produce comes from our nuclear power plant in Mühleberg as well as from interests in nuclear power plants in Leibstadt (CH), Fessenheim (F) and Cattenom (F). In 2009, Mühle berg nuclear power plant produced a record 3,092 GWh of electricity – the highest output since going into operation – thanks to continual modernisation of plant components and to the plant’s exceptionally high availability. The plant’s excellent condition also prompted the Federal Department for the Environ-ment, Transport, Energy and Communication (DETEC) to lift the time limit on the operating licence in December 2009. g Photo

Energy supplies: reliable, cost-effective and ecological

Installed capacity of production facilities

State Installed capacity (MW) BKW share 2009 2008 2007

Switzerland 3 Water 1,408.6 1,405.0 1,382.7

Wind 4.1 4.1 4.1

Solar 1.9 1.9 1.9

Biomass 3.1 3.2 0.5

Natural gas (heat/power cogeneration) 1 0.5

Nuclear 544.0 526.0 526.0

France Nuclear 245.0 245.0 245.0


Italy Water 42.8 43.0 41.8

Natural gas 200.0 200.0

Wind 2 46.0

Total MW 3 2,511.0 2,443.2 2,202.0

Share of renewables 60.6% 60.3% 65.0% 1 sol-E Suisse AG: Heat from the heating system is used to generate electricity. 2 Fortore Energia Spa. (Italy) BKW stake 33%. Disclosed in Annual Report as a financial interest, since < 50% 3 Corrected prior-year figures

Installed capacity in Switzerland and abroad

Water 57.8%

Wind 2.6%

Solar 0.1%

Biomass 0.1%

Natural Gas 8.0%

Nuclear 31.4%


09Energy supplies

In addition to the scheduled shutdown for annual revision work in August 2009, an unscheduled rapid shutdown had to be car-ried out on 14 September 2009 due to the failed switchover of two alternating feedwater pumps when the plant was restarted after revision work. The Swiss Federal Nuclear Inspectorate (ENSI) rated this rapid shutdown at 0 below the INES scale, which corresponds to “no safety significance”. Nevertheless, the

Key figures, Mühleberg nuclear power plant

2009 2008 2007

Electricity production net MWh 2,976,114 2,955,800 2,880,900

Unit capability1 % 91.6 91.2 90.6

Unplanned capability loss2 % 0.33 0.43 0.54

Average gross efficiency level3 % 35.5 35.1 34.5

Reportable incidents INES 1 0 0 0

INES 0 4 1 1

Low and intermediate-level radioactive waste from operations m3 42.8 51.7 40.2

1 Ratio of electricity actually produced to the reference energy generation, i.e. the energy that could be produced if the unit were operated continuously at full power under reference ambient conditions. 2 Energy that was not produced during the period due to unplanned shutdowns or uscheduled load reductions due to causes under plant management control e.g. maintenance work. 3 Ratio of electrical energy actually produced by the plant (before deducting the plant’s own consumption) to the thermal energy produced by the nuclear fission process.

CORE SHROUD CRACKS The task of the core shroud of a nuclear power plant is to transport the water in the reactor such that it flows through the fuel elements from bottom to top. Since the core mantle is open above and below, there is virtu-ally no difference in pressure between its external and internal walls. Cracks were first identified in the core shroud of Mühleberg nuclear power plant in 1990, since which time the welded joints have been regularly examined under the oversight of the Swiss Federal Nuclear Inspectorate (ENSI). International and Swiss expert analyses have concluded that the cracks in the core shroud do not affect the plant’s operational safety and that it meets all the criteria for continued operation. The 2009 revision of Mühleberg nuclear power plant showed that the preventive measures implemented ten years ago, which set an international standard, have resulted in a marked slowdown in the growth of cracks on the welded joints affected. Projections show that the core shroud is safe even for highly improbable events such as earthquake, as long as the crack does not spread above a defined limit. And the crack at Mühle-berg is well within this limit. The ENSI has examined and con-firmed the projections. The same result was arrived at by an independent expert opinion (TÜV Energie Consult).

gRevision work at Mühleberg nuclear power plant.


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10 Energy supplies

incident showed how sensitively the system reacts to even the most minor malfunction, highlighting the reliability of the safety precautions in place. Based on the findings of its systematic safety analysis, ENSI certified the operating safety of Mühleberg nuclear power plant as good. In its overall assessment scale, ENSI categorises plants as “high”, “good”, “sufficient” and “insuf-ficient”.

A technical solution has been found for the safe sequestration of radioactive waste. In June 2006 the Federal Council and author-ities concluded that the legally required demonstration of the feasibility of disposing of all radioactive waste was in place, thus

supporting the feasibility of deep geological repositories in Swit-zerland. Nevertheless, the concerns voiced by many people about accidents or safety risks are entirely understandable.

In operating terms, 2009 was a quiet year for Mühleberg nuclear power plant. At the political level, however, it was a busier year dominated by efforts to extend the operating permit and find a replacement plant. In October, the Executive Council of the Can-ton of Berne expressed support for plans to build a replacement nuclear power plant on the existing site in Mühleberg. And in November, the centre-right party of the Canton of Berne called on the Bernese government to lobby support from the federal

Major accident

Serious accident

Accident with wider consequences

Accident with local consequences

Serious incident

Incident

Anomaly

gThe official 7-step International Nuclear Event Scale (INES) is used throughout the world. To enable the type and severity of a nuclear power plant incident to be described in universally understandable terms, the International Atomic Energy Organisation (IAEO) and the Organisation for Economic Cooperation and Development (OECD) drew up an international scale.


11Energy supplies

authorities for a replacement plant in Mühleberg. In a consultative referendum in November, voters in the canton of Vaud rejected the abolition of the time limit on the operating permit for Mühle-berg nuclear power plant. Finally, in December DETEC lifted the time limit. In early 2010, residents in the vicinity of Mühleberg nuclear power plant, as well as the “Grüne Bündnis” of Berne, the city of Geneva and various environmental groups and organ-isations announced their intention to contest DETEC’s ruling.

According to the findings of a study commissioned by the Canton of Berne Trade and Industry Association in March 2009, the majority of the population in the cantons of Berne, Fribourg and Neuchatel favour plans to build a new nuclear power plant to replace Mühleberg. Two thirds believe that the new plant should be built on the existing site in Mühleberg. The Mühleberg region also supports construction of a replacement plant on the present site: a survey conducted in June 2009 showed that 65 percent of respondents in the municipality of Mühleberg were for building the replacement plant in the existing location, and 55 percent of respondents in the eight surrounding communities were also in favour.

Such events are always accompanied by heated discussions. We saw this for ourselves at our many information sessions held in the municipalities surrounding the Mühleberg plant. We are aware that these discussions are an important part of the political proc-ess. Wherever we can reasonably advocate our position and where our views are sought, we take part in these debates. 2010 is an important year for us, as we engaged in dialogue with the targeted region, drive forward the general licence application for

a replacement nuclear power plant for Mühleberg, and prepare for cantonal statements of position on the application.

Home-grown, ecological hydro power Hydroelectricity production has been an important cornerstone of our activities from the outset: around 40 percent of the elec-tricity we produce comes from hydroelectric power plants. And we are convinced that its importance is set to grow even more, since the welcome growth in new renewable energies – wind, solar, biomass, small hydro power plants and geothermal – is directly related to hydro power production. Wind and solar power plants generate electricity only intermittently, when the wind blows and the sun shines. So pumped storage power plants have an important task to perform, by regulating the fluctuating output of intermittent wind and solar power sources and storing electricity in the form of water. Pumped storage power plants that stabilise the grid are the only way to substantially expand the production of wind and solar power.

KWOplus enlargementThe KWOplus investment programme is a key element of our expansion strategy. In the spring of 2009, the Federal Court examined and rejected an appeal lodged by power plant opera-tor Kraftwerke Oberhasli AG (KWO), in which BKW holds a 50 percent stake, against the negative decision on plans to expand the Grimsel reservoir. KWO is nevertheless determined to enlarge the reservoir and gradually upgrade its large power plant facilities on the Grimsel and Susten. This is in keeping with the require-ments of Swiss energy policy, which aims to promote Swiss hydro power.

KWO is committed to seeking dialogue with stakeholder groups and involving them in the project. It has shown that it takes dif-ferences of opinions seriously, seeks dialogue with critics and endeavours to achieve consensus on solutions. Surveys show that there is widespread support for the Grimsel 3 enlargement and capacity increase, but that plans to enlarge the reservoir are still encountering opposition.

Discussions fuelled by fears and concerns about nuclear power will occupy us over the next few years. We communicate openly and encourage dialogue to advocate our position.


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Forward-looking new renewable energiesUnder the Swiss Energy Act (EnG), wind, sun, biomass, geother-mal power as well as small hydroelectric plants with a capacity of up to 10 MW are defined as new renewable energies. The federal legislator is targeting an increase in the share of electricity generated from renewable energies to 5400 GWh or 10% of cur-rent Swiss electricity consumption by 2030. We aim to contribute more than our market share to this objective and, through our wholly-owned Group company sol-E Suisse AG, to generate at least 1000 GWh of electricity from renewable energies in Swit-zerland by 2030.

Major investments in wind farmsWe are committed to involving our stakeholder groups in our plans from the outset. In line with this, our plans to expand the wind farm in the Jura mountains operated by Juvent SA, in which we have a 60 percent stake, have consistently involved all inter-est groups as well as the Swiss Foundation for Landscape Pro-tection. In close collaboration with municipal and cantonal authorities, Switzerland’s first regional wind direction plan was drawn up. Thanks to widespread support for this procedure, vot-ers in the four involved municipalities came out virtually unani-mously in favour of adjustments to their zoning plans in the sum-mer of 2009.

August saw the start of work to build eight more wind turbines. As with all new wind farm constructions, we incorporated the latest technology. From autumn 2010 the annual electricity pro-duction by Juvent SA wind farm will be quadrupled. To make sure the work is carried out safely and ecologically, our Group com-pany sol-e Suisse AG is advising JUVENT SA on new environ-mentally-friendly construction methods which will significantly reduce the construction and assembly zones (equivalent to the area of two football pitches) and the number of truck journeys required, thereby cutting CO2 emissions by around 1,000 tonnes. Including necessary measures to strengthen the electricity grid, the expansion costs are in the region of CHF 52 million.

Our Group company sol-E Suisse AG acquired a state-of-the-art LIDAR device which it used for the first time for the planned wind farm site in La Givrine (VD). Using an invisible and safe laser beam, the device reliably measures wind speed and direction without requiring any structural measures (wind measuring mast).

It has no impact on the natural environment. Detailed measure-ments requiring structural measures are made only when a site is determined to be suitable.

In 2009 we substantially expanded our wind production activities abroad. In Germany we entered into a strategic partnership with the juwi Group, a leading specialist in wind power, with a view to building and operating several wind farms with a total installed capacity of around 200 Megawatts (MW) over the next few years. Each partner brings its own strengths to the partnership in Ger-many: juwi provides its know-how in building and operating wind farms in Germany, while we contribute our expertise in electricity sales, trading and marketing. The first project, for the Landkern wind farm in Rheinland-Pfalz, was completed in 2009. The municipality of Landkern is benefiting from the project, since it collects the bulk of tax revenues from the wind farm.

Energy supplies

Electricity production by the wind farm on Mont Crosin is set to quadruple. Stakeholder groups were closely involved in the project.


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Another strategic partnership was entered into with Fortore Ener-gia S.p.A. of Italy, a leading expert in wind power generation. We hold a 33 percent interest in the new joint venture Fortore Wind, which is planning to build and operate wind farms in Apulia by 2016, with a total capacity of around 600 Megawatts (MW). Around 140 Megawatts (MW) are currently connected to the grid. At the end of 2009 we acquired Volturino Wind Srl, a project company for wind farms. With 14 wind turbines and a total capacity of more than 25 Megawatts (MW), we aim to produce around 70 Gigawatt hours (GWh) of carbon-neutral electricity per year in Volturina (Apulia) by 2011.

Noise reduction measures at Otelfingen biomass power plantIn 2007 we acquired a 50 percent share in a waste wood fired biomass power plant in Otelfingen. Some of the waste heat gen-erated by the power plant is now used to heat greenhouses. Working with the local population, in 2009 we defined solutions to incorporate noise emission measures in the renovation project. While these measures will improve conditions for local residents, they entail extra costs that do not generate any direct operating

benefits. Nevertheless, we aim to make this investment in noise protection in the interests of the local population.

The grate ash left over from the power plant’s incineration proc-ess is correctly disposed of on a bioreactor landfill and the fly ash in an underground repository.

Fossil-thermal power plant as transitional solutionIn December 2009, the project company STKW Energie Dörpen GmbH & Co. discontinued planning work due to lack of an option for heat-power cogeneration, as a result of which the plant was deemed no longer economically viable since the waste heat could not be commercially used.

We have been consistently aware of the CO2 problems associ-ated with fossil-thermal power plants. We are not seeking any new fossil-thermal power plants, but will implement existing projects which have already been re-dimensioned. In view of the uncertain future for domestic nuclear power, we are keeping open the option of expanding gas-fired production capacity in Switzerland within defined limits, as a transitional solution. Here, too, we would only deploy state-of-the-art technologies that guarantee minimal CO2 emissions.

Energy supplies

In keeping with our strategy, we are committed to strong expan-sion of new renewable energies abroad.

Length of transmission and distribution networks

km 2009 2008 2007

Transmission network (220, 380 kV) 763 711 711

Interregional distribution network 1 (50, 132 kV) 1,186 934 979

Regional distribution network 2 (0.4, 16 kV) 19,946 19,285 19,084 1 Source: Swiss Assets Database 2 Change from manual to digital recording (GIS) Network length: No existing calculation standards


14 Energy supplies

High-performance grids for energy securityPower plants generate electricity, which is then transported to consumers via the grid. A stable, reliable grid is needed to ensure that electricity can be transported at all times, even to remote regions. From ultra high voltage “highways” to low voltage “streets”, everything is connected and reliant on none of the components failing.

Expanding the number of power plants often entails a corre-sponding expansion of the grid infrastructure. In other words, every power-generating plant, no matter how small, must be connected to the grid. This is a challenging task, not only in the case of complementary plants such biomass plants outside res-

idential areas, but also in the case of high-performance plants for renewable energies, for example wind farms. New lines must be installed to connect complementary power plants to the grid. To feed in the high capacities generated – even if only intermittently –

g 1 Large industrial purchasers g 2 Industrial purchasers g 3 Municipal network g 4 Local network g 5 Individual household Producer Consumer

Each new power plant must be connected to the grid to enable the electricity it generates to be used.

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Ultra-high voltage

Biogas

Wind power

Hydro power Nuclear power

Solar power

Hydro power

High voltage

Medium voltage

Low voltage


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by power plants such as wind farms, the grid must be expanded. This means equipping the grid for peak loads that rarely, if ever, occur.

After weighing up all the pros and cons, we have come to the conclusion that a better balance of the economic, environmental and energy security factors can be achieved by overhead lines than cabling for the ultra high voltage grid. On the other hand, we lay our lines largely underground in built-up areas where there is a large population concentrated in a relatively small area. In the case of medium and low voltage lines, the choice of technology depends on the local conditions. Here the choice of cabling or overhead lines is made on an individual basis.

The production and transmission of electricity is accorded a high priority at BKW. This is where even small measures are able to make a major contribution to sustainability.

Energy supplies

Underground cables or overhead lines?

OvErHEAD LINE CABLINg

Lower cost Alters the appearance of the landscape

High costs, high space requirement during construction due to the need to keep corridors free

Fast localisation of faults, therefore shorter electricity outages

Vulnerable to environmental factors (storms, snow etc.)

No impact on landscape but major ecological impact on soil

Vulnerable to environmental factors (earthquake/landslide),difficult localisation and expensive, time-consuming fault rectification, hence longer outages

Low loss of capacity due to thin cables

High loss of capacity due to thick cables

Electromagnetic radiation in line with the Ordinance on Non-Ionising Radiation (ONIR)

Electromagnetic radiation in line with the Ordinance on Non-Ionising Radiation (ONIR)

g Positive and negative aspects of cabling and overhead lines.

On the Wyss family’s farm in Ittigen (BE) the slurry produced by around 200 cows and their calves as well as steers is fermented with other waste to produce biogas, and converted to heat and electricity in a unit heating power station. The plant was planned and built in conjunction with BKW subsidiary sol-E Suisse AG.

We are committed to the efficient use of electricity: our contribution to responsible resource management.

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Resources

We manage resources responsibly in a variety of ways. For exam-ple, when building new power plants or upgrading existing ones, we take ecological issues into account at the planning stage. And we actively engage in certificate trading: a commercial instrument for climate protection.

Landscape protection and nature conservation plays a key role in building new power plants or upgrading existing ones. In addi-tion to the BKW Eco-Fund, in 2009 we also voluntarily founded the Regio-Fund.

BKW Eco-Fund for renaturationThe BKW Eco-Fund contributes 1.0 cent of the surcharge of 3.5 cents on certified 1to1 energy water star electricity to reha-bilitation projects in the region of our certified Aarberg and Nieder ried-Radelfingen hydroelectric power plants as well as along the River Aare as far as the cantonal boundary. We actively con-tribute to the success of these rehabilitation projects by imple-menting such projects in our role as site manager, financially sup-porting them or contributing the land we own free of charge. In 2009 we successfully completed two major projects – AARbiente II and the upgrading of the small Lake Barraud.

g Completed Implementation ongoing Planned

g 1 Kallnach canal Bank flattening / wetlands, gravel embankments as grayling spawning ground, upgrading of agricultural land and forest perimeter, shallow water bays and embankment shaping g 2 Niederried-Radelfingen dam Removal of hiking obstacles Fauna /amphibians, beaver transit, uncovering of Vrenebach g 3 Mühleberg Renaturation of Marfeldingenbach g 4 Radelfingen Redesign of Salzbach estuary, construction of boulder spurs, upgrading of Radelfingen alluvial zone, opening of Büünebächli, revitalisation of Gauchertbächli, Gauchert water landscape, upgrading of NSG forest Mülau, Radelfingen alluvial zone g 5 Aarberg weir Beaver-friendly fish ladder, relandscaping of Mülibach estuary along shoreline, construction of gravel spurs, construction of boulder spurs, promotion of reed stocks

g 6 Grossaffoltern Renaturation of Schmiedenbach g 7 Old Aare Renaturation of Gummenbach, Variable, higher dosage, widening of Old Aare (Aarbiente II), flood zone Kappelen, pioneer location Föhrenwald, dismantling of pump platform in alluvial zone, Relandscaping of Eichibach estuary, revitalisation of Büünegiesse, dismantling of pump platform in wetland area g 8 Büren a. A. Renaturation of Siechenbach g 9 Rüti bei Büren Renaturation of Dorfbach g 10 Büren zum Hof Renaturation of Dorfbach g 11 Stau Bannwil Renaturation of Stutzacher, revitalisation of pike spawning ground, Bännliboden bays, renaturation of Seebach, renaturation of Steibächli g 12 Münchringen Renaturation of Urtenen

BIEL

SOLOThuRN

BERNE

BuRGDORF

Responsible resource management

BKW Eco-Fund – renaturation measures


19Resources

For all these renaturation projects along the River Aare, we work closely with the local municipalities and environmental organisa-tions as equal partners. In principle, the municipalities are in favour of renaturation projects and actively seek collaboration with BKW experts. Costs that exceed the municipal budget are borne by the BKW Eco-Fund in order to guarantee project reali-sation.

Regio-Fund for regional projectsA new Regio-Fund has been introduced for 1to1 energy water star green electricity from Niederried-Radelfingen and Aarberg hydroelectric power plants. Like the Eco-Fund, the Regio-Fund is financed via the surcharge on green electricity. The fund was voluntarily set up by BKW and is the only one of its type in Swit-zerland.

Thanks to the Regio-Fund, we can support regional renaturation projects outside the region covered by certified power plants. The first projects are due to be launched in the Bernese Oberland in the course of 2010.

Energy efficiency for the wallet and for climate protectionEnergy efficiency is an important pillar of the Swiss government’s energy strategy, to which we as a company are committed. Energy efficiency is therefore a key priority with us.

Our understanding of energy efficiency covers the following aspects: we aim to improve the efficiency of our own power plants wherever possible. For example, by replacing the old hag-neck hydroelectric plant with a new power plant, we can increase capacity from 11.3 MW to 21 MW (+86 percent) and electricity production from 80 GWh a year to around 112 GWh (+40 per-cent).

CERTIFIED GREEN ENERGy FOR DISCERNING CONSuMERS The independent quality label naturemade issued by the Asso-ciation for Environmental Energy (Verein für umweltgerechte Energie/VuE) certifies electricity produced from 100 percent renewable energy sources such as water, sun, biomass and wind. The label is available in two quality classes, star for green electricity and basic for electricity from renewable sources with-out supplementary green electricity criteria. According to the findings of a global survey of more than 19 electricity labels conducted in 2009 by PriceWaterhouseCoop-ers (PWC), naturemade was awarded top marks. For hydroe-lectricity in particular, naturemade star is regarded as a first-class label that combines the advantages of climate protection with local ecology. Around 46 percent of all electricity products generated from renewable energies in Switzerland are nature-made-certified, of which 37 percent are naturemade basic and 9 percent naturemade star. The green electricity produced and sold by BKW is exclusively naturemade star.

Increasing energy efficiency helps to cut costs.

uPGRADING OF ThE SMALL LAKE BARRAuD A mosaic of ecologically valuable habitats was created on an area covering a good two hectares. In the region where formerly the Aare ran its course, artificially incorporated soil was removed so that the Büüne stream could be exposed and wetlands set up along a 300-meter stretch. A field track was raised to flatten the south-ern slope of the Aare weir and pave the way for a dry habitat for various species. An extensively used meadow, rich in biodiver-sity, was re-laid on one section without altering the terrain. These areas were sown with high-quality seed mixes in April 2009, and planted with small hedgerows.AARBIENTE II The AARbiente II project was implemented in conjunction with the municipality of Aarberg between Septem-ber 2008 and March 2009. unattractive disused buildings were removed from the waterside area near the open-air swimming pool, and the course of the Old Aare was upgraded with a variety of bank structures and shallows zones. This additional renatura-tion stage has completed the ecologically important connecting corridor between the fish and beaver transit at Aarberg power plant and the nationally important alluvial zone of the Old Aare.

20


Moreover, energy efficiency is an important part of the advice we give to customers – be they tenants, home-owners, SMEs, large companies or municipalities. From telephone enquires on energy consumption to advice on the cost-benefit ratio of installing a heat pump and comprehensive energy checks for industrial con-cerns, hotels and hospitals: our energy efficiency competence centre and its 11-strong staff as well as our Group companies provide support to all our customers on how to use energy effi-ciently and sustainably. Two certified BKW experts issue the building energy certificate (Gebäudeenergieausweis/GEAK). In 2009, 55 applications were received for these state-subsidised certificates. More than 400 residential customers received advice,

and more than 200 ordered a detailed consultation. Close to 100 business customers received comprehensive advice on energy consumption.

Resources

g Value chain

Con

sulti

ng s

ervi

ces

Priv

ate

cust

omer

s

Analysis Implementation

E-HELP

E-HELP

SMARTTOWN

E-COACHINg

Compensation Sustainability

Bus

ines

s cu

stom

ers

g MODuLE › Basic online advice› Building shell › GEAK › GEAK plus› Feasibility study› Energy concept

› Online lighting advisor

OPTIONAL› Implementation support

g BASIC ADVICE Focus on electricity

› Basic consulting› Load analysis› Detailed consulting

SuPPLEMENTARy MODuLE› hARS/hSRL› Engine check› Lighting (From October 2010)

g Services for directly supplied municipalities, based on existing and future e-help and coaching services

› CO2 balancing› CO2 compensation

platform (From mid-2010)

› Sustainability advice and reporting (BKW as data provider)


21

Sustainable resource management starts with small stepsWe are on the right track: since as far back as the 1990s, we have been pursuing a heating strategy that has enabled us to gradually replace oil heating systems in our buildings with more environmentally-friendly heating systems. New builds and exten-sions must be certified to the Swiss Minergie standard for energy-efficient buildings. In 2009, work was started on conversion of a building on the grounds of the regional office in Nidau. The work complies with the Minergie standard and is scheduled for com-pletion in 2010.

We have replaced the conventional neon lighting used for sig-nage with LED lamps. Depending on the size of the sign, we were able to save between 42.9 and 67.8 percent on electricity.

In a small way, we are also setting precedents inside our own buildings as well as those we rent. For cleaning purposes, we are increasingly using ecological cleaning agents, and we often use efficient floor lamps instead of the conventional ceiling lights; and in 2009 we replaced our old IT servers with new, energy-saving servers. But we are aware that we can still do a lot more, and in 2011 we aim to define concrete measures as part of our sustain-ability management efforts.

ISO certification for clear targetsSeveral of our business units and Group companies are certified to the ISO 1400 environmental management standard, including the Networks Division, the hydroelectric Power Plants business unit, Mühleberg nuclear power plant and the Group companies Arnold AG and Société des forces électriques de la Goule. This certification is our way of ensuring compliance with the proc-esses and services of our environmental management system, and enables clear targets to be set and regularly monitored. One example among the many: as part of its ISO certification, Arnold AG has drawn up a concept for the ecological disposal of mate-rials on construction sites.

Resources

We want to do even more with our own buildings.

SPECIAL OFFERS FOR PRIVATE CuSTOMERS AND EM -PLOyEES IN 2009 In conjunction with Thömus Veloshop, we have launched the Stromer electric bike under the 1to1 energy electricity brand. Purchase of a Stromer entitles the buyer to 500 kWh of green electricity (naturemade water star) free of charge. As part of a pilot offer, we purchased 50 Stromer bikes and made them available to employees for business and private travel for three months. During this pilot phase, around 22,500 kilometers were travelled using the Stromer instead of a small car. This resulted in CO2 savings of 2.3 tonnes. The bikes are now a firm fixture in the vehicle fleet of BKW FMB Energy Ltd. Following our success in 2008, in November 2009 we again sold LED light strings for energy-efficient Christmas lighting at a special price, and also launched a lighting advice line. LED light strings consume around 75 percent less electricity than conven-tional light strings and have a longer life. By enabling consumers to replace conventional light strings with these energy-efficient lights, this campaign saved around 500 kWh of electricity. We disposed of the old light strings ecologically.

22


Certificate trading for climate protection how does certificate trading work, and how does it benefit cli-mate protection? The principle is as follows: fewer certificates (allowances) are available than would be required to cover CO2 emissions in Europe. So companies are obliged either to reduce their emissions themselves or to purchase certificates from other companies who have reduced their CO2 emissions. They can also acquire international credits within the framework of climate protection projects.

CO2 allowances (EU) Each year, a power plant operator is required to report its CO2 emissions. At the beginning of the year its account is credited with a defined number of CO2 allowances (certificates). These can be traded on the market in the same way as equity markets. At the beginning of the next year, when the volume of CO2 emit-ted over the past year is known, the operator must have the corresponding number of allowances. If not, he must pay a high fine (EuR 100 per tonne of CO2) and obtain the allowances at a later stage. All certificates for the prior year are transferred to a cancellation account by the end of April, and the cycle begins again. At present, allowances are still free of charge for opera-tors, but from 2013 they will need to buy some or all of them.

Since September 2008 we have been engaging in this market – on the one hand due to our share in the Livorno Ferraris gas-fired combined-cycle power plant in Italy, and on the other hand due to our involvement in international electricity and gas markets.

CO2 credits (international)In addition to allowances, companies can also obtain credits in the context of climate protection projects. If a company in devel-oping or newly industrialised countries invests in more efficient technologies that help to reduce CO2 emissions, it receives cred-its once the project has been successfully completed. No credits are granted for projects which would in any case have been car-ried out for economic reasons.

In 2009 BKW engaged in the international CO2 credit market for the first time with a fermentation gas project in China.

Resources

Companies that take steps to reduce their emissions can save money and even generate additional revenue.

CO2 CREDITS IN ChINA We are involved in a fermentation gas project in China, which entails covering a rubbish pit in order to draw off methane and using a gas turbine to convert it for elec-tricity production. Methane is a very powerful greenhouse gas: 1 tonne of methane corresponds to 21 tonnes of CO2. Convert-ing methane to electricity will save the equivalent of around 200,000 tonnes of CO2, all of which will be factored into BKW’s sustainability statistics once the project is implemented. We are following three main goals through this engagement: to improve the environment, add value for the local population (reduction in odour emissions, lower air pollution, additional jobs, improved electricity supplies), and to make the project more cost-effective thanks to CO2 credits.

CO2 emissions and allowances

tCO2e 2009 Emissions

2009 Certificates

2008 Emissions

2008 Certificates

2007 Emissions

2007 Certificates

Switzerland 0 0 0 0 0 0

Germany 0 0 0 0 0 0

Italy 215,531 353,140 174,039 201,072 0 0


23

Responsible resource management is carried out both on a small scale and a large scale: through advice to our customers and through the measures we apply in our own properties. But the main focus is on our production plants, where we can help to make a huge difference. We are well aware that our long-term goal of producing carbon-free electricity is an ambitious one.

Resources

Greenhouse gas emissions

tCO2e 2009 2008 2007

Switzerland Natural gas Property 138 112 12

heat production 1 503

heating oil Property 0 145 247

heat production 1 1,935

Real estate 2 122

Fuels Vehicle fleet 4 1,104 1,173 1,154

Vehicle fleet 2 1,312

SF6 (insulating gas) Network construction 1,114 578 760

Germany 0 0 0

Italy Natural gas Electricity production 3 215,531 174,039 0 1 sol-E Suisse AG: heat production as a service 2 Arnold AG 3 Based on effective production 4 Corrected prior-year figures

Thermal efficiency level – electricity production

% 2009 2008 2007

Switzerland Nuclear power Property 34 n.a n.a

Wood heat production 1 20 20 20

uhPS Property 85

Biogas heat production 1 38 38 38

Germany Real estate 2

Italy CCGT Vehicle fleet 53.1 n.a n.a

Thermal efficiency level – heat production

% 2009 2008 2007

Switzerland Oil 86.0

Gas 90.8

heat pump 294.0

With 4,500 square meters of silicon solar cells, Mont-Soleil solar power plant is one of the largest of its kind in Europe. The largest research and demonstration plant in Switzerland focuses on researching and testing innovative cells and design technologies. The results are attracting international attention and are already part of tomorrow’s energy solutions.

Thinking about tomorrow today: innovation is the driving force behind sustainable energy supplies.

26


Forward-looking solutions

Thinking and acting with the future in mind, driving forward research and development and translating the findings into eve-ryday applications: these challenges are not likely to change in the near term; because new technologies cannot be launched on the market from one day to the next. This is why we must start investing today. Joint research in the electricity sectorswisselectric research, the research organisation of Switzerland’s electricity industry association swisselectric, acts as the interface between research and implementation. BKW makes a sizeable contribution to the annual budget of ChF 10 million. In 2009, 27 ongoing research projects were pursued by 40 talented young people, mainly postgraduates and assistants. swisselectric also financially supports the long-term tenure and expansion of pro-fessorships at the Federal Institute of Technology (ETh), Zurich.

From theory to practiceOne example of the work performed by swisselectric research shows how collaboration between electricity producers can add value for customers and the general public. A project is examin-ing ways of reducing the noise emitted by high-voltage lines. This happens on modern lines during bad weather and can be annoy-ing for local residents. Research scientists found that a special coating on the lines successfully reduced this noise. The research project was completed in 2009 with recommendations by the research team on the practical application of various coating methods.

Integrating individual research aspectsThe municipality of Ittigen (BE), Swiss Post, IBM and BKW have joined forces to create the Inergie Association with the aim of putting individual research aspects into practice and developing forward-looking solutions. In 2009 the association launched a pilot project in the municipality of Ittigen: 300 customers were issued with smart meters and a user-friendly display unit that keeps them informed about their electricity consumption and current electricity offerings. Customers use this information to decide when to switch their devices on, or to programme on/off times. The main benefit for customers is an increased awareness of their consumption behaviour. Moreover, customers can iden-tify “electricity-guzzlers” and reduce their electricity consumption, thereby achieving greater energy efficiency.

At the same time, existing equipment for controlling consump-tion, for instance mechanisms for switching boilers on and off at predefined times, can be replaced with a smart solution. The aim of the project is to allow customers to switch on boilers and electric heating systems at times when electricity demand is low or wind and solar power are available, without compromising on comfort. If supply is poor or demand high, the equipment is switched off.

E-mobility for everyday applicationsIn January 2009 we took advantage of a unique opportunity when Japanese car manufacturer Mitsubishi invited us to be the first European energy company to take part in scientific tests on an innovative electric car, the i-MiEV, which is ready for mass production. Working with experts from the universities of Applied Sciences of Bienne and Lucerne, our engineers tested the elec-tric car on the test track as well as in city traffic and over longer distances under prevailing weather and road conditions. The experts came to the conclusion that the technology is ready for the market, while the car meets the most important criteria for use in urban/suburban traffic and complies with the requirements for driving comfort. however, the tests also show that various further technical developments are needed, particularly in terms of charging times, range and battery life, before electric cars can become widely used. Moreover, the spread of e-mobility is dependent on the availability of appropriate products and a cus-tomer-friendly charging infrastructure. In 2010 the “E-Mobility” project will examine practical solutions to these challenges. Photo

Customers who use smart tech-nology to control their electricity consumption save elec tricity and money.

Forward-looking solutions


27Forward-looking solutions

Solar-powered high-altitude flightGood progress was made in 2009 on development work for Ber-trand Piccard’s Solar Impulse project to circumnavigate the world in a solar-powered plane without fuel and hazardous emissions. Based on our contractual cooperation dating back to 2006, we tested solar cells on the Jungfraujoch at an altitude of 3580 meters. The cells will subsequently be used to power Bertrand Piccard’s plane. The same solar cells in our R&D centre on Mont-Soleil as well as on the roof of the hanger in Payerne, from where the solar-powered plane will make its first test flights, generate around 110,000 kilowatt hours per year, at a capacity of 122 kilowatts. The solar power is fed into the regional electricity grid to which the hanger is also connected. Photo

Roof tiles with integrated solar cellsIn December 2009 we acquired a 26 percent stake in Panotron AG, a company that builds solar thermal and photovoltaic sys-tems. Panotron AG is developing a roof tile with integrated solar cells, which will enable a tiled roof to be used to generate hot water or electricity without compromising its heritage status or negatively affecting its aesthetic appearance. By supporting this innovative enterprise, we are helping to promote new renewable energies.

Research into photovoltaicsFounded in 1990, the Mont-Soleil company managed by BKW conducts research into new renewable energies, with the empha-sis on photovoltaics, since this technology promises to make the most effective contribution in terms of sustainable energy sup-plies.

Of the many research programmes carried out on Mont-Soleil over the past 20 years at a total cost of around ChF 4 million, the thermographical methods developed by the Mont-Soleil company to monitor large photovoltaic plants deserve special mention. Monitoring such plants is extremely cost-intensive due to the large number of modules and lines. Thermographic or infrared photog-raphy now enables large modular surface areas to be swiftly monitored. Thermographics allows irregularities due to the char-acteristic differences in a module’s surface temperature (such as power cuts, hot spots in defective cells and the like) to be identi-fied.

Research and development geared for the long term. It is not always easy to decide on a project or a collaboration, since rapid success is the preferred outcome. Rather than embracing every attractive idea without further ado, we carefully weigh up the pros and cons and look for a good ratio between investment and potential success.

g Engineers and experts have tested the i-MiEV and are convinced of the potential of electric cars.

g BKW has acted as Official National Supporter of the Solar Impulse project since the beginning of 2003.

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Partnerships and dialogue

When it comes to rebuilding power plants, renovating weirs or rehabilitating rivers, we are committed to dialogue, particularly on controversial issues. One topical issue in the reporting year – and likely to remain so over the next few years – was the plan to build a replacement plant for Mühleberg nuclear power station.

Partnership is a key element within the electricity industry. In Axpo, we have a strong partner at our side for the planned replacement of Beznau and Mühleberg nuclear power plants. Our shared goal is to replace Switzerland’s two oldest nuclear power plants at their existing locations. To this end we co-founded the planning company Resun AG, which is tasked with driving the two replacement plant projects forward. This way, we will be able to continue generating virtually zero-carbon electric-ity from nuclear power in the future.

Dialogue results in a joint solutionTo find an access solution for the Mühleberg replacement plant that caters to the interests of all stakeholders, we engaged in intensive dialogue with the relevant municipality from the outset. The main issues are access roads, the logistics zone and tempo-rary accommodation for construction workers. Local residents disagreed mainly with the access road proposed by BKW, which would have proved very noisy for the Buttenried district and given rise to through-traffic.

In 2009 we therefore stepped up our dialogue with the municipal-ity in which the replacement is planned. In a series of joint work-shops, the municipality, parties directly affected and representa-tives of interest groups worked with Mühleberg Municipal

Council to draw up an alternative access solution. This intensive dialogue has resulted in an access variant that most broadly caters to the interests of Mühleberg municipality at present. We and the municipality communicated this variant to Mühleberg residents and presented it at an information evening.

Our Group company Arnold AG, which is obliged to use heavy equipment when building grid installations, has had similar expe-riences. Early discussions with land owners long before the start of construction work helps to instil an understanding of the rationale behind the structural measures. Many farmers are will-ing to help with transport to and from the site, so as to minimise the impact on land and soil.

Raising awareness in schoolsWhere does electricity come from? For schoolchildren, this ques-tion can be answered in relatively simple terms. But when it comes to illustrating the ecological and industrial relationships and the complex interplay between production technologies, potential capacities and consumer needs, things get a little trick-ier.

Energy is a fixture in the school curriculum of many cantons. Several thousand teachers use our free service to help them instruct their charges on this subject. Our service to impart basic knowledge has been approved by cantonal offices of education. It is offered under the name “watt’s up” and not in BKW’s name. Photo

Our shared goal with Axpo: to build replacements for Beznau and Mühleberg nuclear power plants on the existing sites. For low-carbon electricity pro-duction.

We have learned that we can only arrive at a joint and there-fore mutually acceptable solution through dialogue.



29Partnerships and dialogue

Our aim is to instruct schoolchildren in an entertaining way on the basics of electricity, and elucidate the complex relationships. To this end we provide more than a dozen part-time positions for students as members of the “watt’s up” team to provide instruc-tive lessons on electricity to 3rd-to-9th graders. In 2009 we were able to respond to the many questions put to us by more than 10,000 schoolchildren in the cantons of Berne, Jura and Basel-land. BKW invests more than ChF 500,000 a year in this engage-ment.

Pilot project with further education institutesIn autumn 2009, in conjunction with “Jugend debattiert”, we launched a pilot project to enable students to learn and practice debating skills. Students had to take different positions on the issue of “Should a wind farm be built on the Chasseral?”, and in a heated discussion defend “their” opinion, backed by sound arguments prepared in advance.

Students learned from this pilot event just how difficult it can be to formulate an informed opinion and defend it against the argu-ments of the opposing party. In 2010 these trial debates will be held again in high schools.

In dialogue with the teaching communityInterested teachers attended six further education courses in 2009. Participants pay the cost of travel and lunch, while all other costs are paid by BKW. Teachers attending the further education courses visit different types of power plants and are provided with supplementary information. We show them class excursion options in the areas where our plants operate, and offer back-ground knowledge to make their lessons stimulating and lively. Thanks to these further education courses, teachers can take their class on an interesting excursion without any additional expense. For us, these courses offer a good opportunity to forge contacts with an interested, critical stakeholder group and opti-mally tailor our services for schools.

Information on opinion-buildingThere are various ways in which the general public can come into contact with us and obtain information. As part of the dialogue tour in 2009, we held two-day meetings with the public in five shopping centres. At each venue, lively and interesting discus-sions were held on the subjects of energy efficiency, new renew-able energies, energy security and large power plants.

For those who would rather listen while others discuss such issues, the panel discussions held in November 2009 were right up their street. During these discussions, prominent representa-tives from business, politics and environmental organisations set out their position in the electricity debate. We offered these events as a platform for stimulating discussions but were not represented on the podium ourselves.

Forming an opinion is a skill that needs to be learned. We help students to hone this skill.

g Schoolchildren are fascinated by the “watt’s up” teaching material.

30



however, at the political podium organised by WWF Switzerland during the World Kayak Championships in Thun, a BKW repre-sentative discussed BKW’s position in the tug of war between environment and heritage protection, tourism and sport, and hydroelectricity production.

Our power plants are open to allOur production facilities are open to interested visitors. At no cost or for a small administrative fee, visitor centres at our power plants give school classes, groups and individual visitors an inter-esting and instructive presentation on the power plant and pro-duction technologies and answer their questions professionally and candidly.

In 2009 our visitor centres welcomed some 100,000 interested individuals.

On 29 August 2009, the first Swiss “hydro Power Day” was organised by the Swiss hydroelectric Industry Association. We took part by holding an Open Day at hagneck, Kandergrund, Mühleberg and Spiez hydroelectric power plants. Visitor feed-back showed that the public is extremely interested in hydroelec-tric power plants.

Visitors’ questions are answered by our trained guides. If a ques-tion cannot be answered on the spot, it is passed on to the rel-evant technical unit and visitors receives the answer shortly after their visit to the power plant. g Photo

Customer satisfaction: a key objectiveOur relations with customers are extremely important to us: are they satisfied with us and our offerings? Can we improve any-thing? Where are things not working well? We offer customers a variety of contact options: telephone, post, Internet or e-mail. All queries are directed to cc energie SA, our customer service cen-tre. We keep a record of these queries in order to serve our customers professionally and promptly. In 2009 the customer service centre fielded 121,635 customer enquiries, of which 66,026 were made by telephone. 84 percent of all calls were answered within 20 seconds.

Our power plants are open to all visitors. And we answer every question – professionally and honestly.

VISITOR CENTRES AT BKW POWER PLANTS› Mühleberg nuclear power plant and hydroelectric plant › Aarberg hydroelectric plant› Mont-Crosin wind farm and Mont-Soleil solar power plant› Pavillon Soleil in the Stade de Suisse› Frutigen Tropical house gInformation on guided tours and contact addresses is available at

www.bkw-fmb.ch/besucher


31Partnerships and dialogue

In 2009 a survey of our industrial customers was conducted under the 1to1 energy brand. The aim was to find out whether our customers were satisfied with our price-performance ratio, with our telephone advice and with their power supply. This annual customer satisfaction survey is being consistently improved so that we always know where we need to make improvements.

Innovative ideas inspire usA practical use for warm water from the Lötschberg Tunnel? Solar lighting for the paths in Berne’s new Bear Park? A Climate Guide for the Jungfrau region? These are compelling ideas. After years of planning and construction, the Frutigen Tropical house was opened in November 2009. As a project partner, we were responsible for the energy concept. The energy park illustrates the way in which geothermal energy, sun, wind, biomass and water can be used to generate electricity and heat. And the Trop-ical house takes advantage of these options: geothermal energy provides the ideal water temperature for sturgeon breeding, solar collectors are used to heat water for the restaurants, a drinking water power plant produces electricity, and the entire building is heated by a heat pump. Photo

In June 2009 the JuNGFRAu KLIMA-CO2OPERATION opened the “Jungfrau Climate Guide”. Equipped with GPS-enabled iPhones, visitors can walk the seven climate trails while obtaining interesting information and learning all about the latest findings on climate change in this region. We supported this project by the university of Berne to provide concrete evidence of the con-sequences of climate change. Partnership with local municipali-ties and organisations was important for us, and we aim to work with them on further measures in 2010. One example is the Eiger-Climate-Schools initiative, an entertaining and instructive way of educating schoolchildren about climate change.

In conjunction with Energie Wasser Bern, we acted as a partner for the new Bear Park in Berne, which was opened in October 2009, and were responsible for installing solar lighting instead of conventional lamps.

To foster and enhance dialogue and involve affected stakeholder groups more closely in our activities – these are our sustainability management objectives for the forthcoming year. Our commit-ment is reinforced by the success we achieved in 2009 thanks to effective dialogue.

g On “hydro Power Day”, visitors could follow the hydroelectricity produc-tion process up close and personal.

g The exhibition in the Frutigen Tropical house provides information about renewable energies such as solar, wind, hydro power, biomass and geo-thermal energy.

A peep into the future: The planned replacement facility for Mühleberg nuclear power plant blends ideally into the natural depression in the Aare loop. Because the hybrid cooling tower is only 60 meters high, the power plant does not tower over the surrounding hills.

Dialogue with the public is high on our list of priorities. For example, on the subject of nuclear power.

34


Employees

Professional, healthy and motivated employees are key to our company’s success. In addition to being named as Top Employer in 2009 and our successful programmes for personal develop-ment, we also faced unusual and difficult situations.

Our company was named Top Employer 2009 by the CRF Insti-tute. The award is based on international standards and objective evaluation standards on pay, social benefits, further training and education, personal development, career opportunities, working conditions and corporate culture.

g BKW was again named Top Employer in 2009.

Successful continuing education and further trainingTraining young people is an important priority at BKW: every year we provide around 160 young men and women with training in seven different professions. In 2009 we introduced an appren-ticeship in geomatics. In addition, since the summer of 2009 we have offered two trainees who are talented athletes the opportu-nity to attend our “Apprenticeship and Sport” module. A flexible training course allows these talented young athletes to train in their sporting disciplines during their commercial training.

The further training courses for employees were revised in 2009 to provide a transparent, well-coordinated Group-wide range of courses which are proving highly popular among staff. In 2009, around 2.2 days per employee were used for further training.

Every year our Group company Arnold AG, in which we have a 86 percent stake, holds instruction days on accident prevention and workplace safety. These are open not only to BKW employ-ees but to all interested individuals in the electricity sector.

Staff co-determinationOur Personnel Commissions play an important role in ensuring that our employees have a say in our activities. In 2009 the BKW FMB Energy Ltd. Personnel Commission was re-elected for a four-year term of office. Four new members have rejuvenated the committee.

Virtually all trainees are engaged by us after completing their apprenticeship.

The BKW Group’s employee co-determination scheme is functioning well.

g Safety is a key issue for staff at Arnold AG.

Employees: the cornerstone of our success


35Employees

Employees

Number of persons 2009 2008 2007

BKW Group Employees (incl. trainees) 2,923 2,819 2,689

Switzerland 2,677 2,574 2,465

Germany 29 24 22

Italy 50 53 44

BKW Group trainees 167 168 158

BKW FMB Energy Ltd. employees (incl. trainees) 1,927 1,860 1,873

Switzerland 1,879 1,809 1,824

Germany 0 0 0

Italy 0 1 1

BKW FMB Energy Ltd. trainees 48 50 48

Group company employees (incl. trainees) 996 959 816

Switzerland 798 765 641

Germany 29 24 22

Italy 50 52 43

Group company trainees 119 118 110

Fluctuation

All employment terminations, incl. retirees and deaths 2009 2008 2007

Total, BKW Group 293 274 272

% of total BKW Group workforce 10.6 10.34 10.75

BKW FMB Energy Ltd. 174.0 166 151

Group Companies 119.0 108 121

36


Increase in sick days difficult to analyseIn 2008 we identified a sharp rise in sick days. In 2009 sick days remained at a consistently high level. We identified a trend towards longer absences due to sickness. We responded to this by asking an expert in Human Resources – a so-called case manager – to monitor intensive long-term sicknesses in order to successfully re-integrate affected employees.

Expansion of workplace health managementIn June 2009 a pilot project for workplace health management was launched in the “Hydroelectric Power Plants” business unit. The aim was to introduce health management initially in a busi-ness unit with a view to implementing it subsequently throughout BKW FMB Energy Ltd. Information events were held for employ-ees, at which they were able to ask questions about health man-agement. Around 70 percent of the 160 respondents took part in the follow-up survey. Detailed discussions and tours of the various sites completed the event.

The business unit covers a wide range of jobs: people who work in offices on computers, as well as people who work outdoors or in power plant machine rooms. Consequently, the findings revealed a wide range of health-related problems and required an individual assessment of the varying needs. In a dialogue with site personnel, measures were defined by November 2009 and are being implemented in the course of 2010.

Employees

Absences

Days 2009 2008 2007

Work-related accident 1,899 2,158 1,473

BKW FMB Energy Ltd. 526 430 513

Group Companies 1,373 1,728 960

Non-work-related accident 3,056 2,535 2,866

BKW FMB Energy Ltd. 1,884 1,606 1,949

Group Companies 1,172 929 917

Illness 14,826 13,698 10,962

BKW FMB Energy Ltd. 9,816 10,311 7,942

Group Companies 5,010 3,387 3,020

Employees 2009 2008 2007

Work-related deaths 0 0 1

BKW FMB Energy Ltd. 0 0 1

Group Companies 0 0 0


37

Reorganisation of Networks DivisionIn 2009 the Networks Division was reorganised and aligned more closely with the market and regulatory requirements. In the proc-ess, BKW had to tackle a major, hitherto unidentified challenge: because tasks – particularly in the administrative area – can be performed more efficiently, the headcount must be reduced in 2010 by around 30. Those affected are either given early retire-ment or their employment is terminated if no other job can be found for them within the Group. The reorganisation resulted in a change of workplace for around 50 employees. For all those affected, socially acceptable solutions are being sought. Internal and external experts provide assistance during the process or are in touch with the affected individuals.

In 2009 we saw for ourselves how great a challenge social responsibility can be. For us this is ultimately a matter of guaran-teeing our company’s economic success while providing a good working climate and health-promoting measures to motivate our employees and retaining their commitment to performance.

Employees

38


Compliance and risk management

At times of financial and economic crisis, it is particularly impor-tant for a company like BKW to convey stability to our customers and partners and retain their trust. We aim to achieve this through a transparent, consistent system of compliance management and balanced risk management.

At the end of January 2008 the Competition Commission (COMCO) launched an investigation into possible cartel agree-ments between large electrical installation companies. This also affected the Group company BKW ISP AG based in Ostermun-digen.

BKW regrets this and distances itself from any form of anti-com-petitive practices such as price agreements. In addition to the directive on competitive conduct, BKW’s code of conduct expressly prohibits price agreements and declares that any viola-tions against this directive clearly contravene the interests of BKW.

The investigation ended in mid-2009 with a regulatory agreement between BKW ISP AG and COMCOM.

Compliance managementOn 1 January 2009 the code of conduct, which apples through-out BKW, came into force. It contains guidelines and binding rules governing the conduct of BKW employees and members of its supervisory organs. The code of conduct was posted on our website in the interests of transparency. In addition, a compliance reporting system (whistle blowing) was introduced in December 2009, which enables all employees to report violations of the code of conduct and play an active role in its compliance. In December 2009 we also issued binding rules on offering and accepting gifts. The compliance management scheme shows employees the boundaries within which they must operate and creates security. Additional guidelines on various issues are planned for 2010.

Identifying problems thanks to risk managementProfessional risk management is an important element in ensur-ing our company’s long-term survival. Risk management allows us to systematically consider corrective action before a problem actually occurs. At BKW we have been continually building up a professional risk management system: the risk management processes are integrated in our management processes. A pro-fessional risk organisation ensures that risk management is largely standardised throughout the Group.

Risk management is not about predicting the future but about preparing for the future.

Compliance and risk management


39Compliance and risk management

For many companies, the global economic and financial crisis has once more thrown the spotlight on their credit risk manage-ment. Thanks to proactive credit management measures, BKW has come through the crisis year unscathed.

While we are unable to prevent violations of corporate guidelines or unjustifiable risks being entered into in every case, thanks to clear guidelines and effective processes we can enhance security and ensure that similar cases can be avoided and better man-aged in future.

Thanks to proactive credit management measures, BKW came through the crisis year unscathed.

g The risk management process helps us to achieve long-term objectives rapidly and reliably.

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Monitoring

Niederried-Radelfingen is now surrounded by a nature reserve of national importance. The BKW Eco-Fund has funded targeted structural measures to optimise the conservation area for flora and fauna.

Sustainable electricity production means treating Nature with respect.

42


Summary and outlook

Sustainability is high on our company’s list of priorities. Many projects make an important contribution to generating added value in the three sustainability categories of economy, ecology and society. Often this tends to happen implicitly. We are aware that there is still room for improvement: BKW employees are keen to make an even greater contribution to sustainability in future: this is not just a promise but a matter close to our hearts.

Translating our thoughts on sustainability into deeds necessitates a clear strategy with measurable targets and a concrete action plan. We are currently drawing up this strategy in conjunction with internal and external stakeholder groups. Because one thing is for sure: we must know the needs of our stakeholders in order to develop balanced and sustainable guidelines in the truest sense of the word. To this end we rely on dialogue on a partnership basis – one of our core values. In the process we take time to do the right things and accord the right status to sustainability. For BKW, sustainability is not a “nice to have”, but rather an integrated part in the implementation of our strategy.

Summary and outlook


43GRI Index

Profile

GRI indicator Page

Strategy and analysis Comments

1.1 03 Statement from the most senior decision-maker of the organisation (e.g. CEO, Chair or equivalent senior position) about the relevance of sustainability to the organisation and its strategy.

GRI indicator Page

Organisational profile Comments

2.1 47 Name of the organisation.

2.2 47 Primary brands, products and/or services.

2.3 47 Operational structure of the organisation.

2.4 50 Location of organisation’s headquarters.

2.5 47 Number of countries where the organisation operates.

2.6 48 Nature of ownership and legal form.

2.7 47 Markets served.

2.8 Cover, 35 Scale of the reporting organisation, including: number of employees, net sales, total capitalisation and quantity of products or services provided.

2.9 37 Significant changes during the reporting period in terms of size, structure or ownership.

2.10 34 Awards received during the reporting period.

GRI indicator Page

Report parameters Comments

3.1 04 Reporting period. Jan.-Dec., unless otherwise indicated.Hydrological year

(Oct.-Sept. Switzerland, Nov.-Oct. DIN 4049)

3.2 – Date of most recent previous report. July 2009

3.3 – Reporting cycle. Annually

3.4 50 Contact point for questions regarding the report or its contents.

3.5 43 Process for defining report content, including: prioritising topics within the report and identifying stakeholders the organisation expects to use the report.

3.6 04 Boundary of the report. BKW Group, unless the scope of consolidation is explicitly indicated.

3.7 04 Specific limitations on the scope or boundary of the report.

3.8 04 Basis for reporting on joint ventures, subsidiaries, outsourced operations and other entities that significantly affect comparability from period to period and/or between organisations.

According to consolidation guidelines for financial reporting. Minority interests with a

substantive influence on reporting are disclosed.

3.10 – Explanation of the effect of any restatements of information provided in earlier reports, and the reasons for such restatement.

The general presentation remains unchanged but content has been extended where

necessary.

3.11 – Significant changes from the previous reporting period in the scope, boundary or measurement methods applied in the report.

The scope of reporting has been extended. New indicators have been applied.

The procedure for reporting statistics already disclosed has not been changed.

3.12 43 Table identifying the location of the Standard Disclosures in the report.

GRI Index

44


GRI Index

GRI indicator Page

Governance, Commitments and Engagement Comments

4.1 47 Description of the mandate and composition of committees.

4.2 47 Indicate whether the Chair of the highest governance body is also an executive officer. If so, indicate their function within the organisation’s management and reasons for this arrangement.

4.3 – For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

See BKW Group Annual Report/Financial Report (www.bkw.ch g Investor Relations)

4.4 48 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

4.14 – List of stakeholder groups engaged by the organisation. BKW seeks open dialogue with its stakeholders and, depending on the situation, decides on which stakeholders

should be addressed when and in which form, and taken into consideration in the company’s operating business.

4.15 – Basis for identification and selection of stakeholders with whom to engage. BKW seeks open dialogue with its stakeholders and, depending on the situation, decides on which stakeholders

should be addressed when and in which form, and taken into consideration in the company’s operating business

Economic performance indicators

GRI indicator Page

Economic performance indicators / Scope of consolidation Comments

EC1 Cover, 48 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments (taxes).

EC3 – Coverage of defined benefit plan obligations The BKW Group complies with the legal requirements for social security contributions and pension fund

contributions. The BKW pension fund is an independent, autonomous foundation. Depending on the Group

company, various pension funds are incorporated and disclosed in the respective annual reports.

EC8 15, 26, 29 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro bono engagement. / BKW FMB Energy Ltd.

Environmental performance indicators

GRI indicator Page

Environmental performance indicators / Scope of consolidation Comments

EN3 Cover Direct energy consumption by primary energy source. / BKW FMB Energy Ltd.

EN4 Cover Indirect energy consumption by primary energy source. / BKW FMB Energy Ltd., Arnold AG, ISP AG, sol-E Suisse AG, E.ON Produzione Centrale Livorno Ferraris S.p.A.

Registration/measurement of own consumption was changed or extended in the case of various power plants.

This results in substantial changes versus the prior year.

EN5 21 Energy saved due to conservation and efficiency improvements. / BKW FMB Energy Ltd., Arnold AG, BKW ISP AG, sol-E Suisse AG, in BKW FMB Energy Ltd. buildings leased to Group companies.


45GRI Index

EN6 19–21, 26 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. / BKW FMB Energy Ltd., sol-E Suisse AG

EN8 – Total water withdrawal by source Mühleberg nuclear power plant (Kernkraftwerk Mühleberg/KKM) is the only water-cooled power plant within the BKW

Group. Approximately 330 million cubic meters of water was drawn from the River Aare to cool the KKM in 2009.

EN9 – Water sources significantly affected by withdrawal of water / BKW FMB Energy Ltd., Kraftwerke Oberhasli AG, Simmentaler Kraftwerke AG, Kraftwerke Sanetsch AG, BKW Italia S.p.A.

The above-mentioned companies operate hydroelectric power plants on the following rivers:

Aare (CH), Kander (CH), Saane (CH), Simme (CH), Oglio (It), Tufere / Trobiolo (It), Borlezza (It)

EN13 18–19 Habitats protected or restored. / BKW FMB Energy Ltd.

EN14 18–19 Strategies, current actions and future plans for managing impacts on biodiversity / BKW FMB Energy Ltd.

EN16 22–23 Total direct and indirect greenhouse gas emissions by weight. / BKW FMB Energy Ltd., Arnold AG, BKW ISP AG , E.ON Produzione Centrale Livorno Ferraris S.p.A., in BKW FMB Energy Ltd. buildings leased by Group companies.

EN18 12, 22 Initiatives to reduce greenhouse gas emissions and reductions achieved. / BKW FMB Energy Ltd.

EN26 12, 15,

18–20, 26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. / BKW FMB Energy Ltd.

See www.bkw.ch

Labour Practices and Decent Work

GRI indicator Page

Social performance indicators / Scope of consolidation Comments

LA1 35 Total workforce by employment type, employment contract and region.

LA2 36 Total number and rate of employee turnover by age group, gender and region.

LA6 34 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes.

LA7 36 Rates of injury, occupational diseases, lost days and absenteeism, and number of work-related fatalities by region.

LA10 34 Average hours of further training per year per employee, by employee category.

PR3 – Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

BKW FMB Energy Ltd. and the Swiss Group companies comply with electricity labelling regulations.

PR5 30 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. / BKW FMB Energy Ltd.

46


GRI Index

Electric Utility Sector Supplement

GRI indicator Page

Electricity utility sector supplement / Scope of consolidation Comments

EU1 08 Installed capacity, broken down by primary energy source and by regulatory regime.

EU2 Cover Net energy output broken down by primary energy source and by regulatory regime.

EU3 Cover Number of residential, industrial, institutional and commercial customer accounts. Energy deliveries (excluding services)

EU4 13 Length of above and underground transmission and distribution lines by regulatory regime.

EU5 22 Allocation of CO2e emissions allowances or equivalent, broken down by carbon trading framework. / E.ON Produzione Centrale Livorno Ferraris S.p.A.

With the exception of fossil-thermal energy production, the BKW Group is not subject to any compensation

obligations. The price of fuels purchased includes control taxes in accordance with the legal requirements

EU7 26 Demand-side management programmes including residential, commercial, institutional and industrial programmes. / BKW FMB Energy Ltd.

EU8 26 Research and development activity and expenditure aimed at providing reliable electricity and promoting sustainable development. / BKW FMB Energy Ltd.

EU9 – Provisions for decommissioning of nuclear power sites / BKW FMB Energy Ltd. Disclosed in the 2009 Financial Report of the BKW Group. p.40 (www.bkw.ch g Investor Relations).

EU11 09 Average generation efficiency of thermal plants by energy source and by regulatory regime. Mühleberg nuclear power plant (KKM) 35.55% (gross, including own consumption), Livorno Ferraris GuD 53.1%

EU14 34 Programmes and processes to ensure the availability of a skilled workforce.

EU28 – Power outage frequency. / BKW FMB Energy Ltd. SAIFI: 0.26 [number per customer], Bestätigung durch ElCom ausstehend

EU29 – Average power outage duration / BKW FMB Energy Ltd. SAIDI: 21 [min. per customer], Bestätigung durch ElCom ausstehend

EU30 – Average plant availability factor by energy source and by regulatory regime. / BKW FMB Energy Ltd.

Economic availability of hydro power: 99.09% Availability of Mühleberg nuclear power plant: 90.6 %


47The BKW Group

BKW FMB Energy Ltd., headquartered in Berne, was founded in 1898. Together with its Group companies, it operates as the BKW Group in Switzerland, Germany and Italy. It covers the entire energy supply chain, from production and transmission to trading, sales and distribution.

BKW delivers electricity to more than a million people, both directly as well as indirectly through its sales partners. In conjunc-tion with its sales partners, the company sells electricity products tailored to customers’ needs under the “1to1 energy” brand. In the reporting year, the BKW Group consisted of BKW FMB Energy Ltd. and more than 40 Group companies.

The organisational and management structure of BKW is designed to ensure the clear assignment of responsibilities, so as to avoid any unilateral concentration of powers and prevent con-flicts of interest. In line with this, the functions of Chairman of the Board of Directors and President of the Executive Board are separated. All members of the board are independent, i.e. no member of the BKW Board of Directors exercises an executive function.

The BKW Group

Operational Group structure

Corporate Steering Kurt Rohrbach

Finance and ServicesBeat Grossenbacher

BKW Deutschland GmbH

BKW FMB Beteiligungen AG

NetworksPatrick Braun

Arnold AG› NetLeit AG

BKW ISP AG› Elektro Feuz AG › inelectro sa

BKW Übertragungsnetz AG

Energy SwitzerlandHermann Ineichen

Biomassekraftwerk Otelfingen AG

Elektrizitätswerk Grindelwald AG

Energie Utzenstorf AG

Erdgas Thunersee AG

EWR Energie AG

Kraftwerk Kander Alp AG

Kraftwerk Milibach AG

Onyx Energie Mittelland AG› Elektrizitätswerke Wynau AG › Faltinek AG› Onyx Energie Dienste AG› Onyx Energie Netze AG› Onyx Energie Produktion AG

Simmentaler Kraftwerke AG

Société des forces électriques de la Goule SA

sol-E Suisse AG › Holzwärme Grindelwald AG› Regionaler Wärmeverbund AG Heimberg-Steffisburg › TW Energie AG

Energy Int. and TradingSamuel Leupold

BKW Balance GmbH

BKW Energie GmbH Deutschland

BKW Energie Dörpen Beteiligungs-GmbH

BKW FMB Energie Österreich GmbH

BKW Energie Wilhelmshaven Beteiligungs-GmbH

BKW erneuerbare Energien GmbH

BKW Handel AG› BKW Enex AG

BKW Italia S.p.A.› Bradano Energia S.r.l.› Electra Italia S.p.A.› Idroelettrica Lombarda S.r.l.› Luminosa S.r.l.› Termoelettrica Veneta S.r.l.› Volturino Wind S.r.l.

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The BKW Group

Shareholders’ and employees codetermination rightsEvery shareholder with voting rights can attend the General Shareholders’ Meeting in person or be represented by another shareholder, a representative of a company organ or an inde-pendent representative designated by the company in the invita-tion to the General Shareholders’ Meeting. Every share listed in the shareholder register with voting rights is entitled to one vote at the BKW General Shareholders’ Meeting.

Employee co-determination fosters cooperation between the company and its employees in the mutual interests of both. Indi-vidual employees exercise their right of co-determination within their personal sphere of responsibility. In addition, the Personnel Commission advocates the interests of employees by reviewing their recommendations and wishes and submitting them to the Executive Board. The Personnel Commission briefs employees regularly on its activities.

Capital structureBKW FMB Energy Ltd. is a joint-stock company. The canton of Berne is the principal shareholder with a share of 52.5 percent, while energy providers E.ON Energie AG and Groupe E AG col-lectively hold another 26 percent, and around 7,000 additional shareholders the remaining 21.5 percent. The share capital of BKW amounts to CHF 132 million, divided into 52,800,000 fully paid up registered shares with a par value of CHF 2.50 each. The shares are listed on the SIX Swiss Exchange and the BX Berne eXchange.

Shareholders

Canton of Berne 52.5%

E.ON Energie AG 21.0%

Groupe E 5.0%

Other 21.5%

Share capital CHF 132 million

Financials

CHF millions 2009 2008 2007 restated

2006 2005

Total operating revenue 3,592.6 3,496.2 2,813.9 2,373.1 1,989.1

Operating profit before depreciation, amortisation and impairment 501.6 471.3 412.6 604.1 431.0

Net profit 298.5 138.7 226.9 332.6 306.7

Cash flow from operating activities 602.7 242.5 362.1 267.8 308.0

Purchase of property, plant and equipment 289.7 270.3 211.5 129.4 129.5

Balance sheet total 6,519.0 5,989.3 5,868.3 5,597.9 5,508.9

Shareholders’ equity 3,244.3 3,069.8 3,104.9 2,966.5 2,742.8

› as % of balance sheet total 49.8 51.3 52.9 53.0 49.8gDetails are provided in the 2009 Annual Report and 2009 Financial Report.


49The BKW Group

BKW recorded yet another slight increase in revenue in the 2009 financial year. The energy business performed well in a difficult economic and regulatory environment. Revenue from sales in Switzerland increased due to higher electricity prices and a rise in electricity sales outside the supply region. Electricity trading also grew revenue due to volume and price-related factors. In terms of international sales, the decline in demand in Italy due to the economic downturn was not fully offset by volume-related growth in revenue in Germany. Positive developments in the energy business contributed to the higher operating profit. The recovery on international financial markets had a positive impact on the financial result and accordingly on net profit.

In 2009 BKW increased consolidated operating revenue year-on-year by 2.8 percent to CHF 3,592.6 million. Operating profit before depreciation, amortisation and impairment (EBITDA) ended the year 6.4 percent higher at CHF 501.6 million, thanks to the sustained strength of the Group’s operating earning power and a change in pension plan assets of CHF 28.6 million booked to income. At CHF 298.5 million, profit for the year was 115.2 per-cent higher. Due to the recovery on equity markets, and in par-ticular the related positive impact on the state funds for decom-missioning and disposal, the financial result ended the year in profit, with a corresponding increase in net profit.

Starting with the 2009 financial year, BKW also provides segment reporting by business division, in accordance with the IFRS 8 accounting standard “Operating Segments”. Information on the segments is provided in Note 5 to the financial statements. BKW is organised into business divisions and has three business seg-ments: Energy Switzerland, Energy International and Trading, and Networks. Introduction of segment reporting has further enhanced transparency.

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Addresses

Head Office

BKW FMB Energy Ltd.Viktoriaplatz 23000 Berne 25Tel +41 31,330 51 11Fax +41 31 330 56 [email protected]

Investor Relations

BKW FMB Energy Ltd.Investor RelationsViktoriaplatz 23000 Berne 25Tel +41 31 330 57 97Fax +41 31 330 58 [email protected]

Media Communications

BKW FMB Energy Ltd.Media CommunicationsViktoriaplatz 23000 Berne 25Tel +41 31 330 51 07Fax +41 31 330 57 [email protected]

Addresses

Financials

CHF million 2009 2008 2007

Total operating revenue 3,592 3,496 2,814

Balance sheet total 6,519 5,989 5,868

Net profit for the year 299 139 227

Salaries and operational services 316 322 328

Payments to investors 128 149 145

Taxes, charges, levies to public authorities (expense) 157 90 105 g Details are provided in the 2009 Annual Report and 2009 Financial Report.

Electricity production

GWh 2009 2008 2007

Switzerland Water 3,914.1 3,872.8 3,784.7

Wind 8.1 9.0 9.7

Solar 2.0 1.9 1.7

Biomass (solid and wet) 11.0 13.5 2.3

Natural gas (heat/power cogeneration) 1 2.1 2.3 2.2

Nuclear 4,339.9 4,323.8 4,267.9

France Nuclear 1,444.0 1,560.1 1,531.0


Italy Water 137.9 139.0 89.8

Wind 2 34.9

Natural gas 3 648.2 375.1

Total 10,559.6 10,301.7 9,689.4

Share of renewables 39.1% 39.2% 40.1% 1 sol-E Suisse AG: Heat from the heating system is used to generate electricity. 2 Fortore Energia Spa. (Italy) BKW stake 33%. Disclosed in Annual Report as a financial interest, since < 50% 3 Credited energy volume (control energy)

Number of customers

In customer numbers 2009 2008 2007

Switzerland Private customers 313,586 319,000 307,800

Business customers 23,016 20,600 19,400


Germany Private customers 90 62 46



Italy Private customers 0 0 0



Primary energy consumption

GJ 2009 2008 2007

Switzerland Natural gas Property BKW FMB Energy Ltd. 2,453 2,004 220


Heating oil Property BKW FMB Energy Ltd. 0 1,959 3,327



Fuels Vehicle fleet BKW FMB Energy Ltd. 4 15,537 16,392 16,074


Emergency power generator 2,067

Germany

Italy Natural gas Electricity production Purchased 3,780,000 3,503,098 0

Total purchased 4 3,862,070 3,523,389 19,621

Total resold 3 3,822,391 3,503,098 0

Consumption 4 39,679 20,291 19,621

Consumption excluding consolidated Group companies 17,990 20,291 19,621

1 sol-E Suisse AG 2 Arnold AG 3 According to energy balancing rules, all primary energy generated during production processes is passed on 4 Corrected prior-year figures

Secondary energy consumption

kWh el. energy 2009 2008 2007

Electrical energy Real estate, head office 3,278,753 2,766,765 2,432,430

Regional offices 2,597,545 2,892,469 2,809,727

Substations and control centres 7,153,764 8,242,144 8,318,932

Production facilities 1 12,499,256 797,877 860,757

Group companies 2 513,310

Heat pumps 3 1,772,419

Heating 3 Heat pump (resold) 5,210,701

Total purchased 27,815,047 14,699,255 14,421,846

Total resold 5,210,701 0 0

Total own consumption kWh 26,042,628 14,699,255 14,421,846

GJ 93,753 52,917 51,919 1 Change in recording method due to installation of additional meters to measure own consumption at Mühleberg nuclear power plant. Change in accounting methods for Trading/Sales 2 Arnold AG 3 Passed on to customers, consolidated Group company sol-E Suisse AG


Publishing Details

ConceptBKW Group CommunicationBKW Corporate Development

Texts, editorial teamBKW Corporate Communications

LayoutEclat AG, Erlenbach ZH

PhotographyBKW archive pictures

PrinterJost Druck AG

This sustainability report is printed in German and French and is available online in German, French and English. The printed German version is authoritative.

Facts & Figures 2009BKW Group

Jost Druck AG uses 100% 1to1 energy water star green energy generated by Aarberg hydroelectric power plant.

937–53460–0510–1065Climate neutral print by www.jostdruckag.ch

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With revenue of CHF 3,593 million reported in 2009, the BKW Group is one of Switzerland’s leading energy pro-viders. The company employs more than 2,800 staff and covers all aspects of energy supply, from electricity pro duction and transport to trading and sales. BKW delivers electricity to more than a million people, both directly as well as indirectly through its sales partners.The BKW production portfolio covers hydroelectric power plants, a nuclear power plant, a gas-fired combined-cycle power plant (CCGT), and new renewable energy plants. Today BKW is the leading producer of electricity from photo-voltaics, wind power, small hydroelectric power plants and biomass.

Sustainability Report 2009 - BKW Energie · Business customers 23,016 20,600 19,400 Sales partners...

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Transcript of Sustainability Report 2009 - BKW Energie · Business customers 23,016 20,600 19,400 Sales partners...