Procurement of energy and primary energy carriers
The electricity requirements of EVN’s Austrian customers are covered by the company’s own plants as well as through domestic green energy allocated in accordance with the Green Electricity Act and through medium-term supply contracts and purchases over the wholesale market. Wholesale purchases are handled by EnergieAllianz, which utilises the European Energy Exchange (EEX) and bilateral transactions with various trading partners on over- the- counter (OTC) platforms.
- For information on the composition of electricity, see Product responsibility
- For information on the development of the EEX exchange prices, see Energy sector environment
EVN’s electricity subsidiaries in Bulgaria and Macedonia are required by law to purchase most of their electricity requirements from state-owned producers, i.e. NEK and ELEM respectively. Since these countries have not yet implemented electricity labelling requirements, EVN cannot determine the source of this energy and has no influence over its origin. The remainder of the required energy is purchased over wholesale markets.
A large part of the natural gas purchases are still handled by EconGas GmbH on the basis of long-term supply contracts, even though EVN sold its 16.5% investment in this company during the reporting year. The remaining supplies are purchased on wholesale markets over national and international OTC trading centres and exchanges, for example in Austria (CEGH), Germany (NCG) and Holland (TTF). Most of the wholesale purchases are handled by EnergieAllianz. The majority of imports – from the European point of view – come from Russia and the North Sea.
EVN has a three-tiered coal supply chain for the hard coal-fired plant in Dürnrohr, Lower Austria: purchases are made directly by EVN via coal wholesalers or trading and forwarding agents (Tier 1) which, in turn, buy the coal from processing companies or exclusive exporters (coal wholesalers) (Tier 2). These firms purchase their coal supplies directly from the mining companies (Tier 3).
Hard coal was purchased from two Tier 1 suppliers in 2015/16. Roughly 70% of hard coal deliveries come from Europe, while the remaining 30% come from America. In 2015/16, EVN also took over coal stocks from a power plant block in Dürnrohr that was decommissioned by Verbund AG.
Coal purchases for the Duisburg-Walsum power plant, in which EVN holds an investment of 49% – and the operations of this plant – are managed by the joint venture partner Steag and are therefore outside EVN’s sphere of influence.
- GRI indicator: Description of the supply chain (G4-12)