Investment highlights
- EnBW is the only German utility active in the entire energy value chain
- EnBW is driving the energy transition in its entirety
- Highly robust business model based on balanced portfolio
- Low-risk business profile from regulated grids and renewable energies
- Stable cash flows
- Attractive risk-return profile
- Natural hedge between EnBW’s competitive business areas sales and generation
- Supply contracts closed on a back-to-back basis
- Generation margins locked in for up to 3 years in advance for cash flow predictability
- Long-term PPAs for high cash flow visibility
- Net-zero targets (NZ-2 in Moody's Net Zero Assessment) with SBTi-approved interim targets
- Coal exit brought forward to 2028
- Net-zero emissions by 2040 for scopes 1 and 2, and by no later than 2050 for scope 3
- Financial policy geared towards credit investors' needs and protecting solid credit ratings
- Dedicated asset liability management for long-term provisions
- Diversified funding and prudent liquidity management using state-of-the-art systems and tools
- State of Baden-Württemberg and OEW (an association of counties) holding more than 94% of share capital
- Most of the remaining shares are held by other municipal shareholders’ associations in Baden-Wuerttemberg
- Shareholder structure reflects EnBW’s roots in Baden-Wuerttemberg, one of the economically strongest regions in Europe
Financial management
Foundations
- Management of financial transactions within the Group finance department in order to minimise risk, optimise costs and increase transparency
- Deployment of derivates in the operating business generally for hedging purposes only: for example, for forward contracts for electricity and primary energy source trading
- Interest rate risk management for managing and monitoring interest-sensitive assets and liabilities / Interest rate risk strategy to limit the risk of interest rate changes for the Group
- Currency management system to monitor foreign exchange risks
Objectives
- Payment obligations can be fulfilled without restriction
- Balanced financing structure
- Solid balance sheet ratios
- Solid investment grade ratings
Key performance indicator for creditworthiness management
The key performance indicator debt repayment potential describes the retained cash flow in relation to net debt. The debt repayment potential measures the ability of EnBW to repay its debts from its current earnings potential.
Debt repayment potential¹
Controlled revenue growth accompanied by solid investment grade ratings
¹ We regularly check whether our target value for the debt repayment potential complies with the current requirements of Moody’s and S&P.
Positive creditworthiness of high importance
To maintain the future viability of the company, EnBW aims to hold solid investment grade ratings, in order to
- ensure unrestricted access to capital markets
- offer reliable opportunities for financing partners
- be regarded as a dependable business partner in our trading activities
- achieve the lowest possible capital costs
- implement an appropriate number of investment projects
Financing strategy
Management of financing needs of operating activities separately from the Group’s pension and nuclear obligations
- Managing financing needs of operating activities
- Constant assessment of capital market trends with regard to
- current interest rate environment
- any potentially favourable refinancing costs
- Constant assessment of capital market trends with regard to
- Coverage of pension and nuclear obligations using asset liability management model
Green transformation of our integrated portfolio
Sustainable Generation Infrastructure
- Wind
- Solar
- Hydropower
- Thermal (gas, hard coal)
- District heating
- Biogas
- Hydrogen
- Pump and battery storage
- Trading
System Critical Infrastructure
- Transmission grids electricity/gas
- Distribution grids electricity/gas
- Water supply
Smart Infrastructure for Customers
- B2C/B2B sales electricity/gas
- E-Mobility
- Energy solutions
- Broadband
By 2030
To successfully drive forward the green transformation of our entire portfolio, we have planned total gross investments of up to €50 billion for the period from 2024 to 2030. The taxonomy-compliant expanded capex is expected to be more than 85%.
See our main shareholdings in our EnBW Annual Report 2025 as well as the full list of Shareholdings.