Protagonists on the climate front line

Works in:

Milan

Job title:

Safety and Environmental Manager

Education:

Degree in environmental science, master’s degree in environmental economics and management

“I have been working in the environmental field for almost two decades. But the environmental issue has only come into focus over the past few years”, says Elena Bruschi, visibly pleased that the appreciation for her work is increasing. “Most people used to see us as rule enforcers who ensured that the legal requirements are adhered to. Now the environmental issue and our mission have a completely different meaning. As a risk – just think of extreme weather events – and as an opportunity. The recognition that our planet cannot sustain our current resource consumption has led to research into new, environmentally friendly technologies, creating more and more know-how and new fields of activity.”

Together with two colleagues, Elena is responsible for the HSE management of our thermal power plants in Italy. In particular, she ensures compliance with the applicable regulations, maintains relations with the authorities, such as the Ministry of the Environment, and handles certifications. “As a company certified in accordance with ISO 14001 and EMAS, our aim is to not only comply with the minimum legal requirements, but to continually improve our environmental footprint”, Elena explains. To achieve this, she works closely with her colleagues in operations and maintenance at the power plants to explore new technical and procedural solutions. Most recently, for example, a CO catalyst was installed in San Severo, achieving a considerable reduction of carbon monoxide emissions, and in Novara, a new combustion system was installed to decrease NOx emissions. “Our emissions are always far below the legal limits. The real beast, however, is CO2,” says Elena, pointing out her most difficult challenge. Our plants are already state-of-the-art and operating as efficiently as possible. As long as no new technologies are developed, it is virtually impossible to reduce carbon emission any further. However, the plants can contribute towards reducing the overall carbon footprint by fulfilling additional functions, such as the Novara cogeneration plant, which supplies process steam to surrounding chemical plants, thus reducing their CO2 output.

“It is clear that our planet cannot sustain our current emissions and resource consumption. The Paris Climate Agreement has set very ambitious targets, and large companies like Alpiq have to do their part. This also includes raising the awareness of the people around us. We all need to change our lifestyle and become more environmentally conscious. Sustainability is not just a goal, it is a mindset that we need to embrace.”

Works in:

Olten

Job title:

Senior Options Trader

Education:

Economist

“CO2 is an incredibly powerful value driver for electricity across Europe. For Alpiq’s portfolio, this is great. Currently, the prices simply keep rising, and at a higher rate than our costs,” says Björn Fritz. In his role as Senior Options Trader, whose duties also include emissions trading, he views the climate from an economic standpoint. For him, the carbon price has a very strong signalling effect. It drives sustainable technologies because nobody wants to pay high CO2 prices. Over the past three years, the price has increased from 5 to 50 euro per tonne. “The companies, which expect a further increase, are trying to hedge their bets now before it’s too late. The market is incredibly resourceful,” Björn emphasizes. He unmistakably enjoys this fast pace. “Currently, there is a great deal of price uncertainty, and the energy market will remain volatile over the longer term.”

In reality, Björn is a sort of risk manager. As a derivative trader, he manages a part of Alpiq’s risk positions. When asked what criteria he uses to assess risks, he says: “You simply need to form an opinion on which risks you are prepared to consciously take. You have to weigh up whether the factors are good or only just bearable.” Strategy also plays a big role, he says, but given the current dynamics, what counts most is a sense for the right moment. “CO2 prices are about as consistent as the weather. This also has a lot to do with the climate.”

“CO2 is a key price driver. Driven by climate change, environmental policymakers and associations currently have the arguments on their side. It will be interesting to see when this really starts to hit the people’s wallets and to what degree they will accept this. Putting a price tag on the climate is a very exciting field right now.”

Works in:

Lausanne

Job title:

Shareholders & Swiss Market Development Director, Co-President of the Energy Certificate System Association (ECS Schweiz)

Education:

Economist

“I have always been interested in the guarantee of origin. It is a key tool that allows us to document that both the producers and the consumers are participating in the energy transition and making their contribution,” says Ralph Baumann, Shareholders & Swiss Market Development Director. He has been following the development of guarantees of origin since the very beginning. The fact that they emerged as a result of demand from private consumers is a source of particular pride to him. “Switzerland was a major pioneer in this respect. The utilities have always offered green products because people in Switzerland are simply interested in where their electricity comes from,” Ralph says. To date, Switzerland is the only country in Europe besides Austria where all power plants are registered and the origin of the electricity can be fully accounted for. In the noughties, a private trading system for green certificates was established, which now enjoys official status throughout Europe with the guarantee of origin. It functions completely electronically.

“Guarantees of origin allow us to add value to Alpiq’s existing plants. And what is more: They make it possible to certify additional criteria such as regionality, the operating life of the plants or supply granularity. People are taking an interest in ever more precise details of their consumption.” This is also reflected in the numbers over recent years, which have doubled since 2016. In 2020, Switzerland as a whole exported guarantees of origin for around 6 TWh and imported upward of 14 TWh. “The market is very dynamic. In 2017, the prices were around 4 Swiss francs per MWh. In the meantime, they have realigned with European prices and are currently below one franc. It is a regrettable fact that from mid-year, we will no longer be able to participate in this market with our approximately 4 TWh of guarantees of origin from large-scale hydropower due to the lack of an electricity agreement,” says Ralph with a sense of remorse regarding the project that is close to his heart, but he adds that the Swiss market, at least, will remain.

“What concerns me is the following question: Who is entitled to claim that they are making a positive contribution to the climate? The electricity producer, the consumer or the investor in a power plant? All three claim this, but only the party in possession of the guarantee of origin can prove it. Unfortunately, Alpiq has always been somewhat on the defensive when it comes to large-scale hydropower. But the guarantee of origin has enabled us to assign a corresponding value to our hydropower. Even if many only consider the value of additionality, for example renewable energy from new plants, it is ultimately hydropower that guarantees that consumers are climate-neutral throughout the year because it balances out the production fluctuations of other renewables.”

Works in:

Olten

Job title:

Meteorologist with the Market & Quantitative Analysis unit

Education:

MSc in Geography, University of Basel, PhD with a doctoral thesis on heavy precipitation events

Being a meteorologist at Alpiq is exciting. Martin Bolliger has been working for the energy traders in asset, prop and forward trading for twelve years. He analyses weather forecasts, extracts market-relevant information and presents it to the traders. Temperature, wind, precipitation and solar radiation are the key factors.

Martin provides answers to the question as to how the weather is most likely to develop and assesses the associated uncertainties and risks. The traders need estimates for the coming days, weeks and even months. Or they expect feedback on rumours: Will the summer really be so hot?

His goal: To supply traders with customised and unbiased weather information. “I enjoy observing how the weather directly affects the price of energy.” In the end, the decision is made by the traders. The weather development is only one of several factors that decide which deals are made. But it is an important factor.

Weather is chaos, as Martin puts it. Minor changes in the atmosphere can call for major adjustments to the forecast. “It is just something you have to deal with and try to learn as much as possible from weather developments; but sometimes a dose of humility is quite helpful.” Martin’s work invariably throws up new challenges. Like last winter, when a disturbance in the upper atmosphere disrupted the weather system. And thus caused a major scramble among meteorologist. Another example is the constant increase of weather data due to the expansion of renewable energies. Here, the challenge is to find the datasets that are most relevant to trading and to include them in the analysis.

“Already today, climate change is affecting energy production and our trading. Its impact on our revenues is likely to become more pronounced in the future. This makes raising awareness for this development and assessing the risks all the more important.”

Works in:

Budapest

Job title:

Chemist/Environmental Manager

Education:

Teacher training college, Budapest University of Technology and Economics

“We believe it is possible to ensure the security of supply and be environmentally responsible at the same time,” says Beáta Leveles. In her role as Environmental Manager, she ensures that the Csepel gas-fired combined cycle power plant complies with all the environmental regulations. Since its commissioning in 2000, a sophisticated monitoring system has been in place, which Beáta uses to monitor the key environmental factors and minimise emissions. “Since the raw material utilisation depends almost directly on the production volume, this is very difficult,” Beáta says. Nevertheless, she is constantly on the lookout for ways to improve.

For example, thanks to research, it was possible to significantly reduce Csepel’s intake of cooling water from the Danube while still complying with the legal limit of an 8-degree temperature difference between intake and outlet water. “We even conduct our own studies on the impact of wastewater on the river’s wildlife,” Beáta says. Without question, especially the emitted nitrogen oxides are a major burden on the climate. But Csepel’s levels are lower than legally required. And with the renewal of the IPPC (Integrated Pollution Prevention and Control) permit, measures have been taken to ensure that the power plant continues to comply with EU environmental directives.

“We all know that gas-fired power plants are not the most modern and environmentally friendly way to generate electricity, compared to, for example, new renewables,” Beáta emphasizes. “However, among fossil fuels, natural gas is the cleanest.” As a chemist, she should know, and she also explains that the power plant’s sulphur emissions are almost zero, and that Csepel’s modern technology ensures that its carbon monoxide emissions are kept to a minimum by burning the gas almost perfectly. In addition, the gas-fired combined cycle power plant almost fully utilises the waste heat from the flue gas, supplying district heating to two of Budapest’s districts.

”We should try to reduce our ecological footprint wherever possible, because it is our duty to leave a liveable environment for future generations. We absolutely have to reduce our resource consumption and waste. Education is still an important task. That’s why, as a former teacher, I’m delighted that for many years, Csepel has been regularly offering guided tours to school classes and showing them how electricity is actually generated and how it impacts the climate.”

Works in:

Sion

Job title:

Project Manager Generation Expansion

Education:

Structural draughtsman, civil engineer (FH) and qualification in hydraulic systems from EPF Lausanne

“I understand my role as a project manager as offering input to lend the necessary impetus to the projects and move them forward,” explains Carlo, who is responsible for the further development of hydropower plants in the canton of Valais. Currently, he is primarily involved in the modernisation of Gougra and the installation of a turbine at the Martigny-Bourg run-of-river power plant. Thanks to his experience, he is able to manage the projects from A to Z – from the feasibility study and technical design right through to the tendering process and implementation.

In his day-to-day work, Carlo deals with the consequences of climate change. At Lac de Salanfe, for example, the permafrost is thawing. As a result, storms carry more debris into the lake, reducing the reservoir volume and clogging the intake structures. “My responsibilities as an engineer are still the same. After all, the changes do not affect the technology of the machines or the buildings. Rather, we are confronted with new problems,” Carlo explains, referring – among other things – to the increasing meltwater volume from the glaciers: “Now, our analyses also have to take account of glacier development predictions.”

For Carlo, climate change is also linked to new projects. Above Zermatt, for example, a new lake formed as a result of the glacier melting. This water could be used to generate electricity. But Carlo also sees indirect opportunities arising from the Energy Strategy 2050: “In 2013, when I joined Alpiq, the low electricity prices meant that there were hardly any new projects. With the Energy Promotion Ordinance (EnFV), we benefit from financial contributions and can now develop new projects,” Carlo explains. Among other things, he was able to initiate preliminary studies to increase the height of the Moiry dam, which would not have been possible ten years ago.

“Nowadays, it is important to develop projects in such a way that they fulfil the environmental requirements. In the past, the technical aspects were the main focus; the environment came second. Now we have to rethink our approach.”

Works in:

Lausanne

Job title:

Senior Expert Regulatory

Education:

European and economic law and business administration

“Strong regulation can help solve the climate problem. On the operator side, it reduces investment risks and on the demand side, it shapes green behavioural patterns. It is certainly a crucial tool for a successful energy transition”, says Renaud van der Elst with conviction. Outside Alpiq, he represents our interests in energy associations that lobby the European Commission. Within Alpiq, his role is that of an advisor: His understanding of the intricacies of the EU legislative framework allows him to identify how key regulatory reforms could impact electricity and CO2 prices. Being able to anticipate these trends is a decisive advantage for our traders, in particular for long-term hedging, but also for investment and divestment decisions.

The European Climate Law that was recently agreed under the Green Deal is set to trigger a major regulatory overhaul impacting some 25 pieces of legislation. Renaud is relaxed about these developments. “The Green Deal will be an enormous value driver for Alpiq’s portfolio. Actually, the situation looks so good that I can primarily focus on curbing the regulatory favours granted to our competitors”, Renaud jokes. At the moment, he is working on what is known as the “Fit for 55 Package", which aims to achieve a net CO2 reduction of 55 percent by 2030 and revise various directives – for example on renewable energy, energy efficiency, energy taxation or CO2 pricing. The main difficulty for Renaud is the fact that he represents a Swiss company. In the absence of a Framework Agreement and an Electricity Agreement with the EU, he cannot vote on every issue and his influence remain indirect. “Because Switzerland is considered a third country, we have to focus on the potential negative impacts on Switzerland and try to neutralise them based on arguments revolving around security of supply and international trade law.”

“We have reached levels of industrialisation and consumerism that are simply not sustainable. From this point of view, reforms are urgently needed. The current developments greatly benefit Alpiq. Higher CO2 prices, for example, are a blessing for us. While we do not have to purchase carbon allowances for our hydro and nuclear assets, higher CO2 prices increase the variable costs of gas and coal-fired power plants, which set the prices on the market. This in turn boosts the revenues from our assets.

We must not forget that the European countries are at different stages of economic and social development. Therefore, the Green Deal must not be allowed to punish less developed countries that still rely on coal and lignite assets.”

Works in:

Olten

Job title:

Senior Energy Meteorologist/Data Scientist

Education:

MSc in Atmospheric and Climate Sciences, ETH Zurich

The atmospheric and climate scientist wrote his master’s thesis on future changes in snowfall in the European Alpine region, but for the past two years, Prisco Frei has been working as a meteorologist in intraday trading here at Alpiq. He assesses whether the wind is blowing stronger or weaker, the temperatures are higher or lower, or the sun is shining more or less than forecast. Since the bulk of the electricity is already marketed the day before, changes in the short-term weather forecast can have a major impact on the actual quantities of energy generated at the time of delivery. This is where Prisco’s instinctive talent is called for. Using satellite images, air pressure maps and live readings, he attempts to obtain a detailed picture of the current weather situation, possible changes and the associated risks. He relays this information to the traders and thus offers them a basis for decision-making in order to optimally sell possible surplus energy or to procure additional electricity if required. Perfect timing is the be-all and end-all in this business. By interpreting the current weather situation quickly and correctly, Prisco gives us a competitive edge.

“The climate debate has been going on for many years now. So we ought to have thought about the “why” a long time ago and should now be focusing on the “how” instead. Green image campaigns simply do not solve the problem. It is time to follow up with action. My former professor once said: “Climate protection is costly – but a lack of climate protection is even more costly.” Sooner or later, even a company such as Alpiq will feel the impact of this.”

Works in:

Lausanne

Job title:

Environmental Officer

Education:

Bachelor of Arts in Geography and Geology

In order to protect rivers and lakes, Xavière works closely with partner power plants, engineering consultants and various Alpiq departments, as well as with the legislative authorities. Climate change has a direct impact on her projects. One of Xavière’s most important responsibilities is sediment management: “The melting of glaciers is causing an increasing amount of sediment to be deposited in our reservoirs. This makes sediment management essential,” she explains. Xavière and her team draw on studies by glaciologists at ETH Zurich. Their water inflow forecasts help Xavière to identify risks and opportunities in connection with global warming and to take the necessary measures.

Both the glacial melt and reduced snowfall are transforming water inflows and the way we store water. Regarding the future management of water resources, Xavière says: “We also need to think about other ways water can be utilised and offer services that complement energy generation. For example, for irrigation or processes that use industrial water.” She is convinced that we will succeed in proactively adapting and expanding our activities to take account of the effects of climate change.

Another impact of global warming that Xavière is dealing with is the formation of new glacial lakes. “To tap into these additional resources, we are planning to expand hydropower plants and raise dams in order to increase our winter storage capacities and autonomy. However, such construction projects should only be implemented with the utmost consideration for the environment and the landscape,” Xavière emphasises.

“Climate change will impact us much more than we can possibly affect it. To face its effects, our energy generation must become more efficient and we have to continue to further develop our activities.”