Over the next 30 years, this increase will likely be four times higher – adding 2,000 TWh of demand or about two-thirds of all the EU’s electricity demand today. This will raise the bar for distribution system operators to deliver more and more reliable power to more and more consumers, while lowering their carbon footprint in their daily operations.
The Corporate Sustainability Reporting Directive (CSRD) will become applicable for many companies in the next sustainability reporting of 2025. A directive which has mandated new transparency standards on company reporting, particularly concerning carbon footprints – including direct and indirect emissions. How are DSOs performing, what does a typical footprint look like, and how are DSOs working on decreasing it?
A new Eurelectric report – released last week at the Decarbonising Distribution event – shows that indirect emissions in scopes 2 and 3 constitute the largest share of European DSOs’ emissions, mainly linked to grid components and electrical losses. The report showed that for the average DSO, the relative scope 1 emissions are 4%, scope 2 are 43% and scope 3 are 54% of total GHG emissions.
“DSOs are the backbone of the transition towards a more electrified and decarbonised society. But ageing infrastructure will need massive modernisation efforts across the EU – as we undertake these efforts that will push decarbonisation forward, we also need to do our part to cut our own emissions. That’s why, alongside electrification-enabling grid modernisation, it’s encouraging to see DSOs across Europe are also finding ways to tackle their Scope 2 and 3 emissions by improving procurement practices, taking steps to make construction more sustainable and powering buildings with renewable energy. This is an important step towards decarbonising DSOs, whose carbon footprints are overwhelmingly derived from up- and downstream emissions.”
- Scope 1
DSOs direct emissions mostly come from the combustion of fuels from fleet vehicles used in the business, such as cars and helicopters. Also, the grid component switchgear usually contain SF6 gas which can leak into the atmosphere. As a third emitting source, DSOs have emergency generators in place, which are usually fossil fuel based.
To reduce direct emissions, DSOs are decarbonising their vehicle fleet needed to operate by using EVs and replacing some helicopter-tasks with drones. SF6 emissions can be reduced by targeting gas leakage in certain components and finding SF6-free switchgear where possible. - Scope 2
DSOs indirect emissions from the generation of purchased energy are almost exclusively related to electricity losses experienced during the transmission of power through distribution lines. A much smaller share is represented by the electricity, heat and cooling consumption of office buildings and network facilities owned by DSOs.
Lowering these emissions can be done through procuring efficient grid assets or by increasing the voltage levels up to the physical limit. A second way to reduce the impact of losses is by procuring clean electricity. - Scope 3
These are all indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions. Most DSOs emissions are emitted upstream, during the production and delivery of goods and services purchases and used in operations. These include the manufacturing, transportation and installation of network infrastructure components, any subcontracted service for construction and maintenance, waste generated from obsolete assets, and business travelling.
To mitigate this type of emissions operators can opt for sustainable assets when expanding infrastructure and proactively planning to reduce long-term emissions. Anticipatory grid investments, for instance, can mitigate future environmental impacts and operational costs, improving grid sustainability by considering future energy demands and technological advancements. Moreover, by retrofitting, reusing and recycling to the greatest extent possible, the sourcing of additional raw material is avoided.
Based on our members best practices, Eurelectric came up with policy recommendations to further bring down DSOs emissions:
- The climate targets set for 2030, 2040 and 2050 should remain a priority. Regulation should incentivise sustainable asset acquisition where feasible, prioritising long-term environmental and social benefits alongside cost efficiency for the customer.
- Any sustainability initiative should encompass a life cycle approach involving the entire value chain, minimising the demand for raw materials, promoting the optimal use of existing assets, instead of premature decommissioning, and contributing to a circular economy.
- For reporting emissions on electricity, DSOs should have the possibility to opt for the most appropriate methodology between market-based and location-based footprint. By allowing for both methods, it supports the private investments needed to boost renewable energy production and reach the EU objectives.