Our 12 Impacts / Procurement / Performance 2007
Procurement spend during 2007 was approximately £1 billion (excluding fuel) with around 63% of total spent with 50 key suppliers
First tier suppliers included major engineering and construction companies in the EnergyNetworks, Energy Wholesale and Renewable Energy businesses, along with telecoms and IT providers
Energy Retail’s key suppliers included manufacturers of low energy lightbulbs and home insulation providers, to support customer energy efficiency programmes, along with IT services for data management and billing and Royal Mail for customer communications
During the year we formed a consortium with EdF and Scottish and Southern Energy to explore the issues around the procurement of coal from global sources
Our Coal and Biofuels Trading Manager undertook a fact-finding visit to a mine in Indonesia that we identified as a potential supplier, to carry out checks on its operations
ScottishPower Renewables specified Trojan cement from ScotAsh for the turbine bases at Whitelee and Greenknowes windfarms – reducing the carbon burden of the cement by at least one third
ScottishPower Renewables examined the feasibility of procuring a hydrogen powered bus to transport visitors on site tours of Whitelee Windfarm
EnergyNetworks was involved in pioneering a new wooden pole for use in 132 kV overhead transmission lines as a sustainable alternative to steel towers. The pole is manufactured from Forestry Stewardship Council accredited timber
We conducted over 300 supplier and contractor audits covering areas such as operations, safety and compliance and site visits
Two UK suppliers were recognised in our parent company IBERDROLA’S annual supplier awards in Madrid – Office Integrations, an independent Glasgow-based office supplies company and Clydesdale, which supplies gloves for live line working
| Performance Targets 2007 | Outcome |
|---|---|
| Make Verify membership a mandatory requirement for all high risk suppliers | Ongoing. In talks with Achilles to ensure all high risk suppliers are members of Verify |
| Strengthen our relationships with suppliers by introducing a category management strategy | EnergyNetworks have a category management approach and have implemented a category management strategy, for high value, high risk areas like cable and transformers |
| Extend the safety and environmental auditing of suppliers currently taking place in Energy Wholesale to other businesses | Ongoing. Procedures being implemented to ensure supplier audits in all businesses include health, safety and environmental requirements |
- To produce a publicly available Responsible Procurement Policy
Ethical Fuel Procurement Consortium
During the year we worked with Human Rights Consultancy “twentyfifty” and other UK generators to examine the key issues relating to ethical coal procurement.
The consortium, which included EdF and Scottish and Southern Energy, examined the material human rights and environmental issues in the coal supply chain and supplier policies/practices and industry actions to manage these issues in the key coal exporting countries – Colombia, Russia, Australia and South Africa.
An initial report was produced following a data gathering exercise, involving feedback from mine operators and traders. We are now seeking to develop the consortium into an enlarged group, including other UK and European utilities, to move the project forward.
The next stage will be raising awareness of the issues with other generators and persuade a critical mass of companies to sign up to a framework of ethical coal procurement principles. The consortium would then communicate with key suppliers to highlight requirements that must be met as a condition of doing business with consortium members.
The World Coal Conference, to be held in Prague, in October 2008, may serve as a platform to raise the issue with suppliers, traders and other utilities.
Visit to Gudang Hitam Coal Mine, Indonesia
Indonesia has been identified as a potential new source of coal for our power stations.
During the year our Coal and Biofuels Trading Manager visited the Gudang Hitam Coal Mine near Samarinda, capital of East Kalimantan, to see if the mine operated to acceptable standards, in terms of employee welfare, health and safety, terms and conditions and environmental stewardship.
This initial visit found that the mine was well-run with an on-site medical centre and canteen. Employee terms and conditions included health insurance, a pension plan and a range of welfare provisions that included family members.
Environmental stewardship, including transportation of the coal was also scrutinised. Coal is taken a short distance by lorry and then shipped on barges 50 km down the Sanga Sanga River to the coast, where it is placed onto bulk carriers for delivery to customers around the world.
PFA-based Cement in Wind Turbine Bases
ScottishPower Renewable Energy specified cement containing Pulverised Fuel Ash (PFA) for the turbine bases of Whitelee and Greenknowes windfarms. The PFA-based cement, manufactured by ScotAsh, our joint venture with Lafarge Cement, reduces the carbon burden of the cement by about one third.
The use of PFA in cement also helps to conserve natural aggregates and avoids the need to dispose of ash to landfill. In addition, PFA-based cement provides important long-term strength and durability benefits and because it reduces the amount of heat given off when concrete is mixed, it reduces the risk of early age thermal cracking, which can occur occasionally when conventional cement is used.
Sustainable Wood Poles for 132 kV Transmission Lines
EnergyNetworks pioneered the use of a new wooden pole specification for use in the construction of 132 kV transmission lines associated with renewable energy projects.
The location of windfarms usually means that new lines need to be built, often in remote and scenic areas, to carry the power to the grid. Traditional steel towers raise concerns over visual impact, so ScottishPower decided to research a viable alternative.
Following many months of design work in collaboration with LS Transmission Consultancy, a trial line was built on Forestry Commission land, south of Wrexham in north Wales.
In addition to being more aesthetically acceptable than steel towers, the new pole design is more sustainable. Steel is energy intensive to produce and has a high carbon burden. The timber for this trial was sourced from sustainable forests in Nordic countries, which are accredited by the Forestry Stewardship Council. The use of Nordic timber is largely because growing conditions provide it with the strength that is necessary for the pole to meet the resilience requirement of standard EN 50431.
The new construction can carry a higher capacity than traditional wooden poles or steel towers and it includes an earth wire, with embedded optical fibre to enable communications. Like steel towers, the new poles can be used at altitudes of up to 400 metres – but they are approximately 12 metres lower in height.
Hydrogen Powered Bus
ScottishPower Renewable Energy is investigating the feasibility of using a hydrogen powered bus to take visitors to Whitelee Windfarm on site tours. The new Visitor Centre planned for Whitelee will be a model of sustainable development – and the company is keen to ensure that site transport is environmentally friendly too.
The bus would use hydrogen produced by NEL, whose site at Mersehill is adjacent to Whitelee. The hydrogen would be produced by electrolysis – passing an electric current through water to create hydrogen and oxygen.
