EnBW to sell contracting business to RheinEnergie
Karlsruhe/Cologne. EnBW Energie Baden-Württemberg AG (EnBW) and Cologne-based RheinEnergie AG (RheinEnergie) have reached agreement on the sale of EnBW’s contracting business. With the planned transaction, EnBW is sharpening its strategic focus as part of its major investment program to transform the energy system. Meanwhile, RheinEnergie is systematically growing its energy services business as a key growth driver for the company.
EnBW’s contracting portfolio spans some 200 facilities across Germany. The planned acquisition enables RheinEnergie to expand its capabilities, particularly in complex industrial projects and business with the public sector. At the same time, it will increase the company’s portfolio to around 800 facilities and 1,100 MW of installed capacity, making it then one of Germany’s leading providers of complex energy services. The agreement also includes the transfer of EnBW’s approximately 150 contracting employees to RheinEnergie.
EnBW sharpens focus on key growth areas
While EnBW’s contracting business benefits from longstanding customer relationships and has good growth prospects, it is not part of the company’s immediate strategic core business. EnBW plans to invest up to €50 billion by 2030, primarily in the further development of electricity and gas grids, renewable energy, hydrogen-ready gas-fired power plants and electric mobility. Against this backdrop, continuous review of the portfolio for profitability and alignment with the strategic direction is a routine part of the company’s business processes.
“I am delighted that, in RheinEnergie, we have found a partner for the continued successful development of the contracting business, with a clear outlook for the project pipeline and hence for both our customers and our employees,” said Peter Heydecker, Chief Operating Officer for Sustainable Generation Infrastructure at EnBW. “With this divestment, we are strengthening our strategic focus in generation and maintain our strong competitive position in the market. This stronger focus supports the implementation of our ambitious growth program, ensuring that EnBW can continue to play its central role in the transformation of the energy system.”
Energy services as a strategic growth area at RheinEnergie
“The energy transition is happening not only in power grids and generation facilities, but also directly at our customers’ locations – in industrial facilities, neighborhoods, hospitals, municipal communities and the housing sector. This is why we have been systematically developing our energy services business nationally for many years,” said Andreas Feicht, Chief Executive Officer of RheinEnergie AG. “By acquiring the EnBW portfolio, we are accelerating this process and positioning RheinEnergie as one of Germany’s leading providers of complex energy and heating solutions. Combining our portfolios takes us to a new level, from 600 facilities and 550 megawatts to some 800 facilities and 1,100 megawatts. This will put us among the top three energy services providers in Germany.”
Strong addition to both portfolios
“Our customers today face the challenge of further developing their energy supply in a way that is cost-effective, reliable and sustainable. To this end, they need partners who offer planning, finance, construction and operation all under one roof, and who have experience in a wide variety of application areas,” adds Stephan Segbers, Chief Sales Officer at RheinEnergie AG. “This is exactly where the strengths of RheinEnergie and EnBW perfectly complement each other. While to date we have primarily leveraged our expertise in the residential and commercial sectors, we are now strategically expanding our portfolio to include large-scale industrial projects and business with the public sector. This will allow us to provide more comprehensive support to all relevant customer groups, including with tailored energy and heating solutions.”
Continuity for customers and secure outlook for employees
For EnBW’s contracting customers, business operations will continue without interruption. Existing contracts and terms and conditions remain in effect unaltered and will transfer in their entirety.
A secure outlook has also been agreed for the employees. RheinEnergie will retain the Stuttgart location with its entire workforce. Redundancies are ruled out through to the end of 2029.
Closing of transaction subject to regulatory approval
The parties have agreed not to disclose the purchase price. The closing of the transaction remains subject to regulatory approval by the relevant competition authorities and the competent local government supervisory authority and is expected for early 2027. EnBW will continue to operate the business until that time.
About EnBW
With a workforce of some 31,500 employees, EnBW is one of the largest energy supply companies in Germany and Europe. Providing energy to some 5.5 million customers, EnBW serves all stages of the value chain, from generation and trading to grid operation and the sale of electricity, heat energy and gas. In the company’s transformation from a traditional energy provider to a sustainable infrastructure group, the expansion of the distribution and transportation grids for electricity, natural gas and hydrogen and the expansion of renewable energy sources are cornerstones of EnBW’s growth strategy and the focus of its investment spending. EnBW plans to invest up to €50 billion by 2030, around 85% of which will be in Germany. By then, renewables are planned to account for around 80% of the EnBW generation portfolio. These are key milestones on the way to the net zero target for the company’s own greenhouse gas emissions by 2040.
About RheinEnergie
With over 150 years of market presence, RheinEnergie is one of Germany’s leading regional energy service providers. The municipally owned company is in charge of supplying electricity, natural gas, heating and drinking water to a region of 2.4 million people. It also supplies natural gas and electricity throughout Germany. RheinEnergie is among Germany’s largest providers of energy services and invests in innovative startups. Through its Next Energy Solutions business division, RheinEnergie offers sustainable energy solutions for the industry and property sectors nationwide. Under tailored contracting models, RheinEnergie manages the entire value chain – from consultancy and conceptual design to planning and finance, and from plant construction to operation and maintenance.