Energy transition means rethinking. Thinking differently. Fresh thinking. We have taken up the challenge and set the course for the future. We have successfully implemented the Strategy 2020, creating the basis for further development with the Strategy 2025.
In the future, we will focus on the infrastructure aspect in our existing business fields and open up growth areas beyond energy. Join us as we look forward and back on our journey from a traditional energy company to a sustainable, innovative infrastructure partner for customers and other stakeholders.
Strategy 2025
Following the completion of Strategy 2020, we are breaking new ground with Strategy 2025.
The first phase of the German energy transition was mainly driven by energy policy and regulation. In this phase, we were able to take important steps towards becoming the energy company of the future by restructuring our portfolio. Now a second phase is taking shape, which will have its full impact after 2020.
In the future, more than ever before, customers, the market and technologies will set the direction. It is against this backdrop that we have developed our Strategy 2025, which takes our divisions beyond the energy market.
Under the keyword decarbonisation, many countries are committing themselves to reducing CO₂ emissions and bidding farewell to coal and other fossil fuels. Renewable energies and smart grids are important pillars of the new, increasingly decentralised energy system. Technological leaps and new competitors ensure that the cards for economic success are constantly being reshuffled.
The digitalisation and networking of energy generation allow and require cross-sector concepts for electricity, heat and mobility. In addition, the need for intelligent and reliable infrastructure is increasing. The energy world is thus becoming more complex, customer behaviour more dynamic, more individual - and ultimately more difficult to predict.
We know what we can do well and better than many others: The safe and reliable construction, operation and management of a critical energy infrastructure. Building on this, we will continue to grow beyond our core business field. Our Strategy 2025 thus focuses on business areas to which we can transfer our competencies beyond energy.
The driver and integral component here is digitalization. In addition, sectors that have often been considered separately - for example, mobility with energy - are now overlapping.
We offer solutions for a fast-charging infrastructure for e-mobility, decentralised energy solutions, services in the field of telecommunications infrastructure, urban infrastructure and public safety.
In order to be able to continue growing after 2020, we want to make greater use of our expertise as a project developer and operator of wind power and photovoltaic plants in the future. We will expand our already well-positioned onshore wind power as well as our offshore wind farms. By cooperating with selected international partners, we are systematically opening up new growth opportunities abroad. Initial successes in France, Sweden and the UK confirm our strategy of selective internationalization.
As a further mainstay, we will strengthen the development of large-scale photovoltaic projects. Due to its cost degression, solar energy is developing into the world's fastest-growing form of renewable generation. With the Weesow-Willmersdorf solar park, we are playing a pioneering role.by building the first subsidy-free ground-mounted photovoltaic plant in Germany At the beginning of 2021, the next two large-scale projects will start in parallel, also in Brandenburg: the Gottesgabe solar park and the Alttrebbin solar park.
Switching over to growth
After a phase of reorientation and restructuring, we are now primarily on course for growth. For 2025, we have set ourselves the goal of generating an operating profit of 3.2 billion euros adjusted EBITDA.
We are transforming ourselves into a sustainable and innovative infrastructure partner for our customer and other stakeholders: In doing so, we are bundling our business portfolio into three strategic business areas from 2021.
Our interactive chart shows the distribution across the four segments of Strategy 2020 and the breakdown into Strategy 2025’s three new business segments.
Further information:
Economically ambitious, good for the climate and socially balanced: EnBW consolidates its sustainable corporate strategy in the three dimensions of economy, ecology and social affairs. It is guided by the requirements and target values of the Paris Climate Agreement. The ambitious goal of being climate-neutral by 2035 is the focus of the programme, which consists of 25 measures.
Strategy 2020
With the expansion of renewables, investments in network infrastructure and the expansion of our services, our strategy up to 2020 kept the transformation of our company in mind.
In 2013, we had already defined our steps for the energy transition up to 2020. We set a new course and consistently developed our portfolio into the future. To compensate for the gradual decline in coal and nuclear energy, we have increased the share of renewables to around 40% of our generation capacity by 2020.
At the same time, we are investing extensively in the expansion of our network to ensure that electricity generated from renewable sources reliably reaches the point of use. Innovative products and services for our customers form our third major pillar.
Milestone reached - earnings target exceeded
We have successfully transformed our company, increased our operating profit to €2.8 billion, over the target of €2.3 to €2.5 billion and above the level prior to the Energy Transition, and achieved or exceeded the other targets contained in the EnBW 2020 Strategy almost completely and in many cases ahead of schedule. Our interactive graphic shows the change in the portfolio and thus the far-reaching transformation since 2012.
As part of our realignment, we are focusing even more closely on our customers and providing new impetus. To this end, we are constantly seeking direct dialogue to address the wishes and needs of our customers in a timely manner. Innovation management supports rapid and forward-looking product development. Examples of this can be found in the fields of electromobility, security infrastructure, broadband expansion, and intelligent urban and district development. This is where we are already introducing our core competence today: The safe and reliable operation of a critical infrastructure.
Better networked
Our system-relevant infrastructure forms the backbone of a reliable energy supply, the performance of which must remain guaranteed, especially during the transformation of the energy landscape. To this end, we are investing extensively in networks and facilities - with a focus on expanding the transport and distribution networks up to so-called intelligent networks, the smart grids. At the municipal level, we are participating in municipal utilities and communities through partnership cooperation models.