Alliander is a Dutch grid operator that builds and maintains the gas and electricity grid for energy used by households and businesses. CSR manager Koen Eising considers himself and his department as the social conscience of the company. In conversation with Julija Luzan, Director at Corporate & Institutional Banking at BNP Paribas the Netherlands, he explains what that means.
A network operator is a company responsible for the construction and maintenance of the gas and electricity network: Alliander does just that, but it strives to be more. It wants to be an integral part of society and look beyond its core tasks.
“We call it broad prosperity. Our goal is to provide everyone with access to affordable energy, now and in the future. Our stance is that our current prosperity must not come at the expense of future generations or other places in the world,” says CSR manager Koen Eising.
Period of congestion
Increased use of electric cars and heat pumps leads directly to increased demand for electricity. At the same time, increased use of renewable energy from solar and wind sources leads to increased fluctuation in energy supply.
Koen Eising notes “We are in a period of congestion. If we don’t solve this, it will have consequences for everyone, because it will mean that homes and businesses can’t be connected to the grid.”
Matching supply and demand by adapting behaviours
“What we are doing more and more, is to enter into discussions with those large customers of ours. This way we can match supply and demand at local level and reduce pressure on the energy grid.”
Expanding the infrastructure – putting more cables into the ground – is a first requirement, but there are two other important directions for solutions: making better use of existing infrastructure and changing energy-usage behaviours. As humans, we have grown used to having energy available at any given time of the day. The natural world, on the other hand, simply works with the energy that is available. The problem can be partly solved with technology, but to a large extent it requires a change in behaviour: according to Koen Eising, Alliander plays a role in stimulating this.
Cooperation with governments and contractors
Alliander works together with municipalities, provinces and the national government. Not only “to raise energy awareness to a higher level,” but also on what Koen Eising calls energy planology’. For example, when a municipality or province is dealing with the arrival of a company with a large energy need. In these cases, Alliander and the municipality or province now collaborate to determine the best location for such a company. Additionally, Alliander has introduced new kinds of contracts to create space on the grid.
Climate-neutral and social business operations
Alliander has had a broad programme for corporate social responsibility since 2010 and is working towards a climate-neutral business operation. “We want to deal efficiently with our raw materials. We are working on a biodiversity plan. And we are already doing a great deal in greening our outdoor spaces.” In addition, the company is focused on its social impact.
Joined forces for cleaner energy
The societal and infrastructural objectives of Alliander require the necessary financial capital. For Alliander, BNP Paribas came directly to mind.
Julija Luzan, Director Corporate & Institutional Banking at BNP Paribas: “We can play a crucial role here by using our network and connecting the right parties with each other. Our goal is to invest 90% of our loans in the energy sector into clean energy.”
The first challenge for Alliander regarding the expansion of its infrastructure, is a matter of financing. The Bank offers the full spectrum of financing solutions including green loans, green bonds and other green financing instruments that fit Alliander’s needs. BNP Paribas also provides solutions for the other two challenges mentioned by Koen Eising – better use of the grid network and changing energy-usage behaviours – supporting Alliander’s electrification of its own vehicle fleet with Arval, and offering ideas on the set-up of a comprehensive mobility plan aimed at fewer cars and more public transport and cycling in Netherlands.