EnBW elaborates further strategy for climate protection and growth

• Expansion of business activities in the areas of renewable energies, local power generation and energy efficiency
• Growth potential for gas/“Yello Gas” launched
• Aims for integrated position in the market of the future Turkey

Karlsruhe. Having completed its economic turnaround and the internal TOP FIT cost-cutting programme with sustainable effect within a short space of time and with great success and having achieved record results for the third straight year in 2006, EnBW Energie Baden-Württemberg AG has now created the basis to actively shape further key issues of the future. “Based on our operational earnings power and our established strategic priorities that continue to apply unchanged – Baden-Württemberg - Germany - International - EnBW has now refined its strategy for climate protection and growth. It has defined the five new growth areas renewable energies, local energy supply, energy efficiency, gas and Turkey and also taken the first steps to develop these growth areas. `Climate protection and growth´ are the cornerstones that should open up sustainable opportunities for the future for EnBW and for Baden-Württemberg as an energy stronghold,” says Prof. Dr. Utz Claassen, CEO of EnBW.

Claassen continues: “For us, the objectives climate protection and growth are not a contradiction in terms – on the contrary: CO2-free and highly efficient generation and use of energy are the key issues for a sustainable energy supply of the future. We want to be involved in these issues more than in the past, and we will make sure we get involved. This is how we see ourselves: an innovative company that assumes social responsibility. We want to create values sustainably and create sustainable values.”

In order to further develop the strategic growth areas, the Board of Management of EnBW adopted the following resolutions:

• Formation of Renewables, a company in the form of a German limited liability company for the purpose of establishing and expanding the renewable energies business segment. The company will be domiciled in Stuttgart. Its purpose is uphold EnBW’s successful position in this area – in addition to EnBW’s other activities. The objective of the company will be to ensure that the group reaches the aim proclaimed by the EU of generating at least 20 percent of energy from renewable energy sources by 2020. Renewables will be a company of the EnBW group’s holding company.
• Formation of EnBW Dezentrale Energien GmbH with registered office in Biberach. EnBW Dezentrale Energien GmbH will bundle all EnBW activities relating to the local generation of energy and related services for household customers and promote the further development of this business model. This includes, for example, cogeneration plants, the combination of electricity and heat products, local storage technologies and fuel cell heating devices. The company will be held by EnBW Energie Vertriebs- und Service GmbH.
• Creation of a competence centre for energy efficiency domiciled in Obrigheim as part of EnBW Energie Vertriebs- und Service GmbH. The new competence centre which will assume corporate functions for the group will also be in charge of the implementation of the new pilot project “The Energy-Efficient University” that has been initiated in cooperation with the state of Baden-Württemberg. This project, which has been designed as a cooperation model, will include modernising the University of Applied Sciences in Offenburg and the University of Tübingen from an energy perspective. The “Energy-Efficient University” project is a continuation of the EnBW project “The Energy-Efficient School” which has already been successfully launched.
• Introduction of the Yello Gas product in selected market areas as of October 1, 2007. The launch of the Yello Gas product marks EnBW’s first steps on the German gas market for retail and commercial customers outside its gas grid territory.

These strategic resolutions are intended to supplement EnBW’s traditional activities. By expanding its business activities, EnBW has responded to customer expectations as well as changes in the energy industry and has created the basis which will allow the company as an energy business to continue to offer an integrated supply concept to all relevant customer groups and along the entire value added chain. In their entirety, the resolutions serve the purpose of climate protection while at the same time creating growth opportunities for the group.

In addition, beyond participating in the invitation to tender for the three electricity distributors which may be up for sale Ayedas, Baskent and Sakarya, the Board of Management wants to establish an integrated position in Turkey along the entire value added chain in the area of electricity supply. “I consider Turkey to be one of the strategically and economically most promising growth regions of all. And we also have close ties of friendship and cultural connections with Turkey. It is therefore obvious that Turkey will play an important role within our European growth strategy,” explains Claassen.