Helpful studies, policy documents and reports.
EnBW 2020 (2014) – in German
EnBW is one of the four German energy giants with 5,5 million customers. It is based in Baden-Württemberg, Germany’s south-westernmost federal state and is the only energy company that is almost fully owned by the state, with both municipalities and the regional government owning almost half of the company. In the most recent issue of its strategy paper EnBW 2020, the company outlines how profits from conventional power stations will dwindle over the next years and how EnBW will direct investment towards renewable energy and energy services.
Empowering Customers. Shaping Markets. Capital Market Story, E.ON (2015) – in English
E.ON even took energy experts by surprise when it announced in November 2014 that the management had decided to split the company in two separate entities in 2016. The “New Company” will be endowed with the power plants, energy trading and exploration, whilst the main E.ON will retain distribution, energy services and renewable energy. In the paper which E.ON prepared for investors, the company explains the strategic direction of both future companies.
Focus on Financial Strength, RWE (2015) – in English
Likewise, RWE, Germany’s number two, is keen to present itself as a valuable investment in its capital market presentation. Management expects that in the mid-term, revenue from power stations and gas trading will almost evaporate but maintains that income from regulated businesses such as its distribution network will remain stable. From 2014 to 2016, only less than two billion euros will be invested in new large-scale projects, including green energy. Overall, investment shrinks by two thirds over five years. RWE also explains how it plans to grow in smart energy services.
Sustainability Strategy, Vattenfall (2014) – in English
The green agenda of Vattenfall is an interesting read, because it shows that the company has in fact a very green agenda, promising to cut greenhouse gas emissions by a third between 2010 and 2020. This is, however, at odds with its German power generation, which is based mostly on lignite. Hence, Vattenfall seeks to sell its German assets.
The Crisis of the European Electricity System, French Prime Ministry (2014) – in English
This report, commissioned by the French government, provides an economic overview of the European power market and the fundamental forces that are at work, such as investment in renewable energy, and links this to the historical legacies. Even though the focus is not specifically on the large utilities, the paper explains the background of their crisis well. Also, it makes clear the situation in Germany has to be seen in a wider European context.
Monitoringbericht 2014, Bundesnetzagentur and Bundeskartellamt – in German
In their yearly report on the German energy markets, the federal competition authority Bundeskartellamt and the electricity grid regulator Bundesnetzagentur take a close look at the state of competition. Last year, they reported falling market shares for the Big Four and argue that their oligopoly has been weakened and that competition is getting ever stronger.
Electricity regulation in Germany: Overview, Thomson Reuters Practical Law (2014) – in English
The study shows that the contribution of German citizens to the country’s energy transformation is almost four times as big as the energy providers’. Residents operate almost half of the installed bio and solar energy plants and even more than half of the installed wind energy. Hence, citizens’ energy makes a significant contribution to market diversity
Neuausrichtung der Energieversorgungsunternehmen in der Energiewende, KfW Economic Research (2014) – in German
The government-owned development bank KfW argues in this research paper that the Big Four energy companies in Germany are under severe stress due to the energy transition in Germany and other developments, but also have the chance to find new business opportunities. Interesting graphs are included.