Electricity has a key role in sustainable development: it powers economic and social progress but also impacts the environment.

From an economic perspective, electricity utilities are part of the commercial matrix that comprises a modern economy. The industry creates economic value through the technical and commercial processes involved in the generation and distribution of electricity, and its subsequent application in end uses. Electricity utilities redistribute this value at the community level and at the broader societal level; for example through remuneration to employees, dividends to owners and taxation to the state. As a relatively large sector in a country's economy, the electricity industry creates a significant number of jobs, both directly in its own operations and indirectly through the procurement of goods and services from other businesses.

From an environmental perspective, different power generation technologies have different implications. For example, fossil-fuelled generation results in emissions to the air; nuclear power raises issues regarding the handling and storage of radioactive waste, and hydropower can have environmental consequences, such as impacts on river systems, wetlands and biodiversity. The transmission and distribution of power also has environmental impacts.

From a social perspective, in addition to conventional economic value, electric utilities are providers of a commodity that is different from any other, yet has come to be regarded as an essential service to the public. Electricity supply is even a factor in maintaining national and global stability and peace. While electricity cannot be stored for later use, a consistent, reliable supply of electricity is a prerequisite for economic development, social security and public welfare. In many developing countries, where access to electricity remains low, social services such as health and education are constrained. Those electricity utilities that are engaged in extending electrification are making an important contribution to alleviating poverty, both in the individual household and at the societal level, as well as having a positive effect on the environment.

Sustainable development applied to electricity includes maximising its contribution to economic and social development, whilst minimising its environmental impact. This can be achieved through:

• promotion of available, accessible and affordable electricity to benefit the economy, the environment and society;

• using electricity wisely;

• making economical end-use of energy sources;

• maximising economic use of low-and zero-carbon emitting electricity generation options;

• maximising the efficiency and minimising the environmental impacts of the generation, transmission, distribution and use of electricity in a cost-effective manner.
  

In 2002, the World Business Council for Sustainable Development (WBCSD), of which Powergen is a member, published the report of a recent project to determine how electricity needs might be met in a sustainable manner, and how socially responsible corporate practices can co-exist and flourish alongside economic growth.

Eleven power companies from around the world participated in the project, including Powergen. The report outlined strategies within each of the three dimensions of sustainable development for moving the electric utility industry closer to sustainable development objectives.