Energy value chain

Vattenfall works in all parts of the energy value chain, from extraction of natural resources and production of electricity and heat, via electricity trading and distribution, to sales both to resellers and end customers. 

In its operations Vattenfall creates economic value for its customers, employees and society at large.

Vattenfall produces electricity and heat from the following types of energy:

This energy mix reflects the conditions in the countries in which Vattenfall has its production. In Sweden Vattenfall’s electricity generation is dominated by hydro and nuclear power; in Germany and the Netherlands it is dominated by fossil-based power; and in the UK it is dominated by wind power.

Sustainable energy production

Vattenfall is working to reduce its CO2 emissions and is striving to be among the leaders in the development towards environmentally sustainable energy production. The majority of growth investments are in wind power.

One of the company’s sustainability targets is to grow faster than the market in renewable energy capacity. Vattenfall strives to operate its production plants as efficiently and responsibly as possible.

Energy trading

In addition to production of electricity and heat, Vattenfall conducts energy trading and sells electricity via electricity exchanges to resellers and to other energy companies. Through sales in the forward and futures markets, Vattenfall hedges future electricity production. In a corresponding way, Vattenfall also hedges future purchases of fuel and CO2 emission allowances. The company also conducts proprietary trading within strictly defined risk mandates.

Electricity and heat distribution

To ensure stable supply of energy to customers, a well working distribution network is needed. In contrast to production, energy trading and sales to end customers, which are operations exposed to competition, electricity distribution is a price-regulated monopoly business. It is monitored by national regulators and has a slightly different value chain.

Distribution of district heating is not a price-regulated business, but bears certain similarities to electricity distribution. Vattenfall conducts electricity and heat distribution activities in Sweden and Germany, and heat distribution in the Netherlands.

Business and private customers

In sales, Vattenfall provides electricity, heat, gas and cooling to end customers in the Nordic region and Western Europe – both business customers and private customers. In addition, Vattenfall offers energy services such as charging solutions for electric vehicles, sales and installation of solar panels, and energy advisory services.

Vattenfall can also offer access to marketplaces for customers that have the ability to be so-called “prosumers���, i.e., customers who are both producers and consumers of electricity or heat.

Competitive and stable energy supply is a key prerequisite for successful industrial activity, and thus also for sustainable economic development of society. Vattenfall has a strong heritage of maintaining constructive, long-term business relationships with electricity-intensive industries.

Limiting impacts on our surroundings

In all parts of its operations Vattenfall strives to ensure that any negative impacts on the surroundings will be as limited as possible. Vattenfall aspires to act responsibly and also wants the company’s business partners do the same, through compliance with Vattenfall’s Code of Conduct for Suppliers.

Vattenfall creates value for its customers, its employees and the communities in which the company works. The company does this by producing and distributing electricity and heat to customers and by providing jobs for employees and suppliers. Vattenfall is a significant taxpayer and also supports economic growth indirectly, such as through close cooperation with industry. 

Last updated: 2016-10-07 15:24