- 7.6 billion euros to be invested by 2010
- Development of gas business segment in the midstream area
- Expansion of the generation position in electricity segment
- Access to the planned offshore wind parks with more than 1000 megawatts secured
Karlsruhe. At EnBW’s annual general meeting, Hans-Peter Villis, CEO of EnBW Energie Baden-Württemberg AG, announced a rigorous growth policy and capital expenditures totalling 7.6 billion euros by 2010. The good results of 2007, the good balance sheet structure and the positive evaluation of the company by the capital market would form the basis for the forthcoming growth phase. “Our aim is to strengthen our generation position by using energy efficiently and lengthen our value added chain in the gas segment. In effect, these investments will strengthen the position of EnBW on the procurement market and provide it with more flexibility. In this way, we want to create the prerequisites for further customer-centric growth,” says Villis.
EnBW will invest some 70 percent of the total 7.6 billion euro investment volume in growth areas and thus in the future of the company. This also includes the logical enlargement of the generation portfolio. EnBW has its sights set equally on highly efficient conventional power stations and renewable energy.
Access to the planned offshore wind parks with more than 1000 megawatts secured – three billion euros for the expansion of renewable energies
“In the last few weeks, EnBW secured access to several planned offshore wind parks,” says Villis. With these wind farms, EnBW has the possibility of gradually creating an installed capacity in excess of 1,000 MW. This is a first, important step towards exploiting renewable energies more extensively. At present, 11.4 percent of the electricity generated by EnBW stems from renewable energies. “We take renewable energies seriously. In the next few years, we therefore plan to invest more than three billion euros in expanding renewable energies,” said Villis. This is part of an investment programme on a previously unprecedented scale. Conventional power stations and nuclear power will continue to have a firm place in the generating strategy of EnBW. “Our generation strategy is not driven by the logic “either – or”, i.e. either coal or renewable energies; either investments in Baden-Württemberg or elsewhere. We prefer to use a mix, i.e. conventional power stations and renewable energies, investments in Baden-Württemberg and elsewhere,” said Villis. That is why EnBW has invested more than a billion in a state-of-the-art and highly efficient hard coal power station in Karlsruhe. The power station, for which preliminary building permission has already been obtained, will have an installed capacity of around 900 MW. The power station is also highly efficient as a co-generation plant. Contracts have already been signed to extract 220 MW for the Karlsruhe district heat grid. EnBW is investigating other potential locations for new power stations throughout Germany. EnBW also plans to actively develop foreign target markets such as Turkey or the Balkan states, in a first step via hydroelectric power projects.
Development of gas business segment in the midstream area
“We aim to expand the generation position of EnBW and get closer to our marketing and sales strength. This will make us less dependent on the wholesale market in future,” said Villis. It is also the second investment focus. By investing in gas storage capacities and securing capacity rights for LNG terminals, the value added chain will be extended in the gas segment by expanding the midstream area. With the future gas business model and the greater flexibility it affords on the procurement market, the prerequisites are to be created so that EnBW can continue to offer its gas customers attractive and structured gas offerings in future. “We must become as competitive in the gas segment as we are in the electricity segment today. The EBITDA share of the gas segment of 12 percent at present can be improved, and we intend to do so in the mid- and long-term,” said Villis.
Energy efficiency offers growth potential
In the end customer market, EnBW wants to grow via service quality, innovations and new products. Energy efficiency plays a key role here. EnBW is the first energy supplier to pick up on the technology of electricity management, for instance, and has put the first intelligent electricity meter into practice throughout Germany. After 2000 pioneering customers successfully tried out the first prototypes of the intelligent meter for several months, EnBW plans to expand its meter programme. From summer 2008, more EnBW customers will be able to use the meters and become their own energy manager.